/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/060627.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 Tuesday, June 27, 2006, Vol. 9, No. 126 Headlines A U S T R A L I A & N E W Z E A L A N D BARLIND INVESTMENTS: Placed Under Voluntary Liquidation BELLIAM PTY: Prepares to Pay Dividend to Creditors BMJ INDUSTRIES: Winds Up Business Operations BRIGHT CIVIL: Members Decide to Close Operations CLEGGS PTY: Final General Meeting Set on June 28 CRONIN CONSTRUCTION: Initiates Wind-up Proceedings DELTA PETROLEUM: Liquidation Proceedings Commenced DORROUGH INVESTMENTS: To Distribute Dividend on June 30 EVODRIVE LIMITED: Court Sets Date to Hear Liquidation Bid EXTREME HELICOPTERS: Faces Liquidation Proceedings FOLEY REAL: Creditors Appoint Liquidator GARDAM CONTRACTING: To Declare Final Dividend on June 29 GARDENESQUE (QUEENSLAND): Liquidator to Present Wind-up Report GENERATE HOLDINGS: Court Orders Wind-up IDENTIC BOOKS: Liquidator to Receive Until Today INT RIG: Members Agree on Liquidation JMDJA PTY: Members Review Wind-up Report LINTON PARK: Official Assignee Named Liquidator MANSIONS & MANORS LIMITED: Picks Official Assignee as Liquidator MBS RESOURCE: Creditors Agree to Close Business Operations MIDCOAST ROOFING: Opts to Halt Operations MULTIPLEX GROUP: Sells Goldfields House for AU$274.1Mln to Valad NORTH CANTERBURY: Appoints Official Liquidator POOLS PLUS: Court to Hear Liquidation Bid on August 3 PROVINCIAL FINANCE: Shareholders Given Receivership Overview REACH INVESTMENT: Liquidation Petition Hearing Set on July 10 RIXON INVESTMENTS: Undergoes Voluntary Liquidation ROCLIN INVESTMENTS: Members to Convene on June 28 S.M. CHAN & PARTNERS: CIR Files Liquidation Petition SYDNEY PARQUETRY: Court Orders Wind Up TELSTRA CORPORATION: Senator Coonan Approves Separation Plan TELSTRA CORPORATION: Three Firms Win Planning & Buying Accounts TRANSFORMATIONS NZ: Creditors Must Prove Debts by Sept 15 VILLAGE ROADSHOW: Sold UK Cinema Interests for AU$33.5 Million C H I N A & H O N G K O N G AGRICULTURAL BANK: NAO Bares CNY51-Bln Accounting Irregularity BEST CHARM: Joint and Several Liquidators Step Aside CHUNG TUNG INVESTMENT: Faces Winding-up Proceedings CYBERWORKS AUDIO: Members' and Creditors' Meetings Set July 6 FELIX TSANG & PARTNERS: To Pay First Dividend on June 30 FORLUXE FINANCE: Court Names Joint Liquidator FORLUXE SECURITIES: Briscoe, to Act as Joint Liquidator GAINFUL MANAGEMENT: Joint Liquidators Cease to Act for Company GANDETEL TECHNOLOGIES: Creditors Must Prove Debts by July 14 HANIL HONG KONG: Creditors' Proofs of Debt Due on July 12 HIGHWELL DEVELOPMENT: Court to Hear Wind-up Petition on July 12 HOI SING CONSTRUCTION: Court Orders Appointment of Liquidator HTL GARMENTS COMPANY: Wind-up Petition Hearing Set on Aug 23 JUN CHENG GROUP: Appoints Joint and Several Liquidators TCL MULTIMEDIA: To Sell Non-Core Assets for HKD337 Million TECH SOURCE: Releases Joint Liquidators UNIVERSAL DOCKYARD: Creditors Meeting Set June 30 WEALTHY DEVELOPMENT: Court to Hear Winding-up Bid on August 2 I N D I A DUNLOP INDIA: 1,400 Workers Get First Installment for Bach Wages HINDUSTAN PETROLEUM: Bags ISO Certification for Vizag Refinery HINDUSTAN PETROLEUM: To Vend Catalytic Converters in 10 Outlets I N D O N E S I A * Indonesia to Repay 50% of IMF Debt In Advance on June 30 J A P A N KOBE STEEL: Six Key Officials Face Raps for False Reporting MITSUBISHI MOTORS: Prioritizes Restructuring Above All Else SANYO ELECTRIC: Shareholders Approve Restructuring Plan K O R E A DAEWOO ENGINEERING: Names Kumho-Asiana as Preferred Bidder HYUNDAI ENGINEERING: To Exit Debt Workout Program KOREA EXCHANGE: BAI Finds Lone Star Sale Had Bureau Approval KOREA EXCHANGE: FSC Defends Role in Lone Star Deal KOREA EXCHANGE: Prosecutors to Summon Former Company President SANG LIM LEATHER: Cuts 1st Quarter Net Loss by Almost 50% SHINHAN BANK: CEO Criticizes Post-Merger Operation Results SILVERSTAR CORP: Reports KRW612-Mil Net Income for 1st Quarter M A L A Y S I A FCW HOLDINGS: SPA Inked by Unit Contributes to Group's Earnings KRAMAT TIN: To Consider Scheme of Arrangement at Meeting LANKHORST BERHAD: Triggers Another Practice Note 17 Criteria MALAYSIA AIRLINES: To Decide on Buyer and Price of KL Building MALAYSIA PACKAGING: Posts 31st Annual General Meeting Results MENTIGA CORPORATION: Meets Securities Commission's Requirement MERCES HOLDINGS: Provides Solvency Declaration METROPLEX BERHAD: Board Endorses Proposed Property Disposal OLYMPIA INDUSTRIES: Wholly Owned Unit Strikes Tenancy Deal PARK MAY: Shareholders Pass All AGM Resolutions PILECON ENGINEERING: All AGM Resolutions Passed PROTON HOLDINGS: Targets Sale of 14,000 Satria Neos This Year SELANGOR DREDGING: Unveils Litigation Developments P H I L I P P I N E S NATIONAL POWER: PSALM Seeks Approval of Asset Transfer PHILODRILL CORP: To Concentrate on Oil Projects S I N G A P O R E LINDETEVES-JACOBERG: ATB Makes EUR5.6-Million Advance Payment MOLDRUP SYSTEMS: Court to Hear Wind-Up Petition on June 30 S LIEN: Creditors Must Prove Debts by July 24 SOH KIM: Court to Hear Wind-Up Petition on July 7 TUTHILL SINGAPORE: Creditors' Proofs of Claim Due on July 23 * Singapore's Manufacturing Growth Well Below Target T H A I L A N D DAIDOMON GROUP: Posts THB133.18-Million Net Loss in 1st Quarter MDX PUBLIC: Result of Shareholders Extraordinary Meeting * BOND PRICING: For the Week 26 June to 30 June 2006 - - - - - - - - ============================================ A U S T R A L I A & N E W Z E A L A N D ============================================ BARLIND INVESTMENTS: Placed Under Voluntary Liquidation ------------------------------------------------------- The members of Barlind Investments Pty Limited held a meeting on May 16, 2006, and agreed to shut down the Company's business operations. They also decided to appoint George Divitkos as liquidator. Contact: George Divitkos Liquidator BDO Chartered Accountants & Advisers 248 Flinders Street, Adelaide South Australia 5000 Australia BELLIAM PTY: Prepares to Pay Dividend to Creditors -------------------------------------------------- Belliam Pty Limited will declare its second dividend on June 28, 2006. Creditors who cannot file their claims on the said date will be excluded from sharing in any distribution the Company will make. Contact: A. M. Sims Liquidator SimsPartners Level 24, Australia Square 264 George Street, Sydney New South Wales 2000, Australia BMJ INDUSTRIES: Winds Up Business Operations -------------------------------------------- After their extraordinary general meeting on May 17, 2006, the creditors of BMJ Industries Pty Limited decided to wind up the Company's operations. Subsequently, Daniel I. Cvitanovic was appointed as liquidator. Contact: Daniel I. Cvitanovic Liquidator Shop 5 Old Potato Shed, 74-76 Hoddle Street Robertson, New South Wales 2577 Australia Telephone: (02) 4885 2500 Fax: (02) 4885 2995 BRIGHT CIVIL: Members Decide to Close Operations ------------------------------------------------ The members of Bright Civil Contractors Pty Limited convened on May 17, 2006, and decided to wind up the Company's operations due to its inability to pay its debts when they fall due. Timothy James Clifton and Mark Christopher Hall were consequently appointed as liquidators. Contact: Timothy J. Clifton Mark C. Hall Liquidators Level 10, 26 Flinders Street Adelaide, South Australia Australia CLEGGS PTY: Final General Meeting Set on June 28 ------------------------------------------------ A final meeting of the members and creditors of Cleggs Pty Limited will be held on June 28, 2006, at 11:00 a.m., for them to receive Liquidator W. J. Fletcher's final account showing how the Company was wound up and how its property was disposed of. Contact: W. J. Fletcher Liquidator Bentleys MRI Chartered Accountants Level 26, AMP Place, 10 Eagle Street Brisbane, Queensland 4000 Australia Telephone: (07) 3222 9777 CRONIN CONSTRUCTION: Initiates Wind-up Proceedings -------------------------------------------------- Members of Cronin Construction Management Pty Limited held a meeting on May 15, 2006, and decided to voluntarily wind up the Company's operations. Creditors consequently appointed Philip Newman and Clyde Peter White as liquidators to oversee the wind-up proceedings. Contact: Philip Newman Clyde P. White HLB Mann Judd Chartered Accountants Level 1, 160 Queen Street Melbourne 3000, Australia DELTA PETROLEUM: Liquidation Proceedings Commenced -------------------------------------------------- The liquidation of Delta Petroleum Ltd commenced on June 19, 2006. Subsequently, Robin Winston Hargrave was named liquidator. Mr. Hargrave requires the Company's creditors to submit their proofs of claim by July 19, 2006, for them to share in any distribution the Company will make. Contact: Robin Winston Hargrave O'Halloran HMT Ltd P.O. Box 6004, Wellesley Street Auckland, New Zealand Telephone: (09) 366 5065 Facsimile: (09) 366 5001 DORROUGH INVESTMENTS: To Distribute Dividend on June 30 ------------------------------------------------------- Dorrough Investments Pty Limited will declare its first and final dividend on June 30, 2006. In this regard, creditors are required to submit their proofs of claim by June 27, 2006. Those who fail to comply with this requirement will be excluded from sharing in the dividend distribution. Contact: I. A. Currie P. G. Biazos Liquidators c/o Currie Biazos Insolvency Accountants Level 3, 320 Adelaide Street Brisbane, Queensland 4000 Australia Telephone: (07) 3220 0994 DUFFUS SECURITY: Members Opt for Voluntary Liquidation ------------------------------------------------------ The members of Duffus Security Services Pty Limited convened on May 12, 2006, and agreed that the Company should wind up its operations voluntarily. Cindy Louise Duffus was subsequently appointed as liquidator. Contact: Cindy Louise Duffus Liquidator c/o RSM Bird Cameron Partners Chartered Accountants Level 1, 103-105 Northbourne Avenue Canberra, Australian Capital Territory 2601 Australia Telephone: (02) 6247 5988 Fax: (02) 6262 8633 EVODRIVE LIMITED: Court Sets Date to Hear Liquidation Bid --------------------------------------------------------- An application to liquidate Evodrive Ltd will be heard before the High Court of Wellington on July 3, 2006. The New Zealand Softball Association Inc filed the petition with the Court on May 26, 2006. Parties wishing to attend the hearing are required to file an appearance not later than June 30, 2006. Contact: P.R.W. Chisnall Gibson Sheat, Lawyers P.O. Box 2966, Wellington Level One, United Building 107 Customhouse Quay, Wellington New Zealand Facsimile: (04) 496 9991 EXTREME HELICOPTERS: Faces Liquidation Proceedings -------------------------------------------------- The Commissioner of Inland Revenue on May 2, 2006, filed before the High Court of Auckland an application to liquidate Extreme Helicopters NZ Ltd. The High Court will hear the said application on July 6, 2006, at 10:00 a.m. Parties interested to attend the hearing are required to submit an appearance not later than June 4, 2006. Contact: Jan Maree Chappel Auckland Service Centre 17 Putney Way, Manukau City New Zealand Telephone: (09) 985 7051 FOLEY REAL: Creditors Appoint Liquidator ---------------------------------------- At an extraordinary general meeting held on May 15, 2006, the sole member of Foley Real Pty Limited resolved to voluntarily wind up the Company's operations. Craig Crosbie was appointed as liquidator at a creditors meeting held on the same day. Contact: Craig Crosbie Liquidator PPB Chartered Accountants Level 10, 90 Collins Street Melbourne, Victoria 3000 Australia GARDAM CONTRACTING: To Declare Final Dividend on June 29 -------------------------------------------------------- Liquidator John William Woods will declare a final dividend on June 29, 2006, for creditors of Gardam Contracting Proprietary Limited. Creditors who were not able to prove their claims are excluded from sharing in the dividend distribution. Contact: John William Woods Liquidator Wilson Woods & Partners 30 Davey Street, Hobart Tasmania 7000, Australia Telephone: (03) 6223 4343 GARDENESQUE (QUEENSLAND): Liquidator to Present Wind-up Report -------------------------------------------------------------- Members and creditors of Gardenesque (Queensland) Pty Limited will convene for their final meeting on June 28, 2006, at 10:30 a.m. During the meeting, Liquidator W. J. Fletcher will report the activities that took place during the wind-up period as well as the manner by which the Company's property was disposed of. Contact: W. J. Fletcher Liquidator Bentleys MRI Chartered Accountants Level 26, AMP Place 10 Eagle Street, Brisbane Queensland 4000, Australia Telephone: (07) 3222 9777 GENERATE HOLDINGS: Court Orders Wind-up --------------------------------------- The Supreme Court of New South Wales issued a winding up order against Generate Holdings Pty Limited on May 18, 2006. The Court also appointed Steven Nicols as liquidator. Contact: Steven Nicols Liquidator Level 2, 350 Kent Street Sydney, New South Wales 2000 Australia IDENTIC BOOKS: Liquidator to Receive Until Today ------------------------------------------------ Identic Books Holdings Pty Limited will declare a dividend on July 28, 2006. Company employees and unsecured creditors are required to submit their proofs of claim by today, June 27, 2006, in order to share in the dividend distribution. Contact: S. W. Free Liquidator Lawler Partners Chartered Accountants 763 Hunter Street, Newcastle West New South Wales 2302, Australia INT RIG: Members Agree on Liquidation ------------------------------------- Members of INT Rig Pty Limited convened on May 12, 2006, and agreed to liquidate the Company's business operations. In this regard, Joseph Sleiman was appointed as liquidator. Contact: Joseph Sleiman Liquidator Sleiman & Co. Level 8, 65 York Street Sydney, Australia JMDJA PTY: Members Review Wind-up Report ---------------------------------------- Members of JMDJA Pty Limited will hold a final meeting on June 28, 2006, at 9:00 a.m., for them to receive Liquidator Mark Peter Barson's final account showing how the Company was wound up and how its property was disposed of. Contact: Mark Peter Barson Liquidator Charman Partners Suite 4, 10-12 Chapel Street Blackburn 3130, Australia LINTON PARK: Official Assignee Named Liquidator ----------------------------------------------- The Official Assignee was appointed as liquidator of Linton Park Ltd on June 15, 2006. Contact: Official Assignee Insolvency and Trustee Service Private Bag 4714, Christchurch New Zealand Telephone: 0508 467 658 Web site: www.insolvency.govt.nz MANSIONS & MANORS LIMITED: Picks Official Assignee as Liquidator ---------------------------------------------------------------- Mansions & Manors Ltd on June 15, 2006, appointed the Official Assignee to oversee the Company's liquidation. Contact: Official Assignee Insolvency and Trustee Service Private Bag 4714, Christchurch New Zealand Telephone: 0508 467 658 Web site: www.insolvency.govt.nz MBS RESOURCE: Creditors Agree to Close Business Operations ---------------------------------------------------------- At a meeting of MBS Resource Services Pty Limited on May 15, 2006, creditors agreed that it is in the Company's best interests to wind up its operations. In this regard, Martin Jones and Darren Weaver were named liquidators. Contact: Martin Jones Darren Weaver Liquidators Ferrier Hodgson Chartered Accountants Level 26, 108 St. George's Terrace Perth, Western Australia 6000 Australia MIDCOAST ROOFING: Opts to Halt Operations ----------------------------------------- Creditors of Midcoast Roofing Pty Limited convened on May 15, 2006, and resolved to close the Company's business operations. Roderick Mackay Sutherland was subsequently appointed as liquidator. Contact: Roderick Mackay Sutherland Liquidator Jirsch Sutherland Chartered Accountants Level 2, 84 Pitt Street Sydney, New South Wales 2000 Australia Telephone: (02) 9233 2111 Fax: (02) 9233 2144 MULTIPLEX GROUP: Sells Goldfields House for AU$274.1Mln to Valad ---------------------------------------------------------------- Multiplex Group has sold its Goldfields House in Sydney to Valad Property Group for AU$274.1 million, the Australian Associated Press reports. According to The Age, proceeds from the sale will be used to ease its senior debt and to fund the Multiplex Property Trust Commercial Mortgage Backed Securities program. Multiplex's director of investor relations and communications, Peter Murphy, said that the price represented approximately AU$11,300 per square meter of net lettable area, exceeding management's expectations. The sale reflects the strength and competitive dynamics of the investment market for Australian CBD office properties, Egoli News cites Mr. Murphy, as saying. According to the AAP, profit from the sale will be recognized in the 2006 financial year, which is expected to increase distribution in the second half of 2006 to 17.50 cents per security from 14.25 cents. Egoli says that after the Goldfields Sale and the establishment of Multiplex Acumen Prime Property Fund, Multiplex Property Trust's portfolio now comprises 25 direct and four indirect property investments with a gross investment value of approximately AU$2.8 billion. The Troubled Company Reporter -- Asia Pacific reported on May 24, 2006, that Multiplex Group has created a AU$650-million property trust as a new strategy to build its third-party funds management business, known as the Multiplex Acumen Prime Property Fund. About Multiplex Headquartered at Miller's Point, in New South Wales, Australia, Multiplex Group -- http://www.multiplex.biz/-- derives its revenue from property funds management, construction, property development, and facilities management. The Group employs over 2,000 people and has established operations and offices throughout Australia, New Zealand, the United Kingdom and the Middle East. In December 2003, Multiplex Limited listed on the Australian Stock Exchange as a part of the Multiplex Group, raising a total of AU$1.2 billion. Multiplex Group was formed by combining the various businesses of Multiplex Limited and the newly established portfolio of investments held by Multiplex Property Trust. Early in 2005, Multiplex began facing cost pressures on its reconstruction project for the Wembley Stadium in London, prompting it to conduct its own internal investigation into the Wembley difficulties. Its auditor, KPMG, later conducted its own thorough review of the problems, leading to an unpredicted write-down. In February 2005, stunned investors sold down Multiplex shares after the Company reversed its stance on two United Kingdom projects, writing off AU$68.3 million from its profits. This started a series of profit downgrades throughout 2005. The Company's troubles continue with plunging share prices, extortion attempts and threats of class action from disgruntled shareholders. The Roberts family, as founder and controlling shareholder of Multiplex, opted to offer AU$50 million indemnity in a bid to appease dissatisfied shareholders. In May 2005, Multiplex admitted its troubled Wembley Stadium construction project may end up with a multimillion loss. As of February 2006, the Company is faced with liquidity crisis after posting a massive AU$474 million loss on Wembley and is currently in talks to bring down possible delay fees, pegged at AU$138,000 per day beyond the scheduled March 31, 2006 completion date. NORTH CANTERBURY: Appoints Official Liquidator ---------------------------------------------- North Canterbury Distributors Ltd on June 15, 2006, appointed The Official Assignee as its liquidator. Contact: Official Assignee Insolvency and Trustee Service Private Bag 4714, Christchurch New Zealand Telephone: 0508 467 658 Web site: www.insolvency.govt.nz POOLS PLUS: Court to Hear Liquidation Bid on August 3 ----------------------------------------------------- An application to liquidate Pools Plus Ltd will be heard before the High Court of Auckland on August 3, 2006. Wendy Maree Van Loghem filed the petition on May 31, 2006. Parties wishing to attend the hearing are required to file appearance not later than August 1, 2006. Contact: D.J. Neutze Brookfields, Lawyers Eleventh Floor 19 Victoria Street West Auckland 1, New Zealand PROVINCIAL FINANCE: Shareholders Given Receivership Overview ------------------------------------------------------------ In a letter dated June 23, 2006, Provincial Finance Limited's receivers, John Waller and Maurice Noone, provided the Company's redeemable preference shareholders with an overview of the receivership, and details as to the ranking of redeemable preference shares within the receivership. In the Letter, the Receivers noted that a number of redeemable preference shareholders are also debenture holders. Messrs. Waller and Noone said that on June 9, 2006, they have written to debenture holders outlining their position in respect of debentures in the company. The Receivers also noted that at the time of their appointment, also placed into receivership were the Company's related entities, Consumer Credit Limited and South Auckland Cars Limited. Shareholders' Investment Shareholders were advised to notify Provincial Finance if their total investment differ from the amount and type of investment recorded by the Company. The Letter also noted that with the appointment of receivers, all dividend payments to redeemable preference shareholders have been suspended and the Company is not accepting any redemption. Security Position of Preference Shares Redeemable preference shares rank behind all debts of the Company but ahead of the ordinary shares, which entitles redeemable preference shareholders to a return of capital only after all debenture holders and other creditors, including unsecured creditors, have been repaid. However, unless a restructuring is successful, it is highly unlikely that redeemable preference shareholders will receive any return on their investment, the Receivers stated in the Letter. Restructuring Plans and Potential Outcomes The Receivers are currently in discussions with ordinary shareholders and a number of industry participants about a proposed restructuring plan for the Company. According to the Receivers, the plan will take time to develop. They also clarified that the final result is dependent on a number of factors, including the quality of the loan book and its ultimate recovery. The Receivers said that the likely level of recovery from the loan book, the likely returns to debenture holders, and redeemable preference shareholders will become clearer through further investigation. Future Communication The Receivers assure parties-in-interest of progress updates once they have fully assessed Provincial Finance' financial position. Communication with investors, shareholders, and other stakeholders as well as press releases, will be available at this Web site as they are released: http://www.pwc.com/nz/ProvincialFinance Parties-in-interest are also advised to send queries, if any, to the Receivers at this address: John Waller Maurice Noone PricewaterhouseCoopers P.O. Box 13 244 Christchurch, New Zealand Provincial Finance Limited -- http://www.provincialfinance.co.nz/-- is a New Zealand finance company that provides consumer and commercial finance to individuals and businesses across New Zealand, and promote a range of investment opportunities. As reported in the Troubled Company Reporter - Asia Pacific, Provincial Finance was put into receivership on June 2, 2006, due to breach of covenants and ratios in its Trust Deed, as well as a multi-million write-down for bad debts. The Company owes NZ$300 million to 14,000 small investors. REACH INVESTMENT: Liquidation Petition Hearing Set on July 10 ------------------------------------------------------------- Calder Stewart Industries Ltd on May 24, 2006, filed before the High Court of Christchurch a petition to liquidate Reach Investments Corporation Ltd. The High Court will hear the petition on July 10, 2006, at 10:00 in the morning. Contact: Andrew David G. Hitchcock AWS Legal, Solicitors P.O. Box 1207, Invercargill 151 Spey Street, Invercargill New Zealand Facsimile: (03) 214 4122 RIXON INVESTMENTS: Undergoes Voluntary Liquidation -------------------------------------------------- At a general meeting on May 15, 2006, the members of Rixon Investments No. 3 Pty Limited resolved to close the Company's business operations and distribute the proceeds of its assets disposal. In this regard, Martin Lord was appointed as liquidator. Contact: Martin Lord Liquidator Martin Lord & Co. Chartered Accountants 23A Station Street Hornsby, New South Wales 2077 Australia ROCLIN INVESTMENTS: Members to Convene on June 28 ------------------------------------------------- A final meeting of the members of Roclin Investments Pty Limited will be held on June 28, 2006, at 10:00 a.m. During the meeting, Liquidator M. C. Michaels will report on the Company's wind-up exercise and property disposal. Contact: M. C. Michaels Liquidator Sims Richmond Pty Limited 147 Frome Street, Adelaide South Australia 5000, Australia S.M. CHAN & PARTNERS: CIR Files Liquidation Petition ---------------------------------------------------- The Commissioner of Inland Revenue on May 12, 2006, filed before the High Court of Auckland a petition to liquidate S.M.Chan & Partners Ltd. The application will be heard before the High Court on July 20, 2006, at 10:45 a.m. Contact: Kristal Louise Gallagher Auckland Service Centre 17 Putney Way, Manukau City New Zealand Telephone: (09) 985 7148 SYDNEY PARQUETRY: Court Orders Wind Up -------------------------------------- The Supreme Court of New South Wales on May 15, 2006, ordered the winding up of Sydney Parquetry Flooring Pty Limited, and appointment of Steven Nicols as liquidator. Contact: Steven Nicols Liquidator Level 2, 350 Kent Street Sydney, New South Wales 2000 Australia TELSTRA CORPORATION: Senator Coonan Approves Separation Plan ------------------------------------------------------------ Communications Minister Helen Coonan has approved Telstra Corporation's plan for the operational separation of its retail and wholesale divisions, the Australian Associated Press reports. AAP says that under the Separation Plan: (a) Telstra would maintain separate wholesale, retail, and key network services business units; (b) Telstra would guarantee the independence of its wholesale business units; (c) retail business units would no longer have any influence, control, or responsibility for providing services to wholesale customers; and (d) Telstra would be required to have separate staff and premises for its wholesale and retail business units. As reported in the Troubled Company Reporter - Asia Pacific on February 2, 2006, the Separation Plan is intended to provide clear network access pricing and non-price terms and conditions for Telstra's rivals. The Plan is designed to ascertain that Telstra does not disadvantage its rivals compared to its own retail division. According to The Age, the approval of the Separation Plan clears another hurdle for T3 -- Telstra's full privatization -- which is expected later this year. The Government promised to put a framework in place before the sale of its 51% stake in Telstra proceeded to ensure that the telco did not unfairly compete against its wholesale customers. AAP cites Senator Coonan as saying that notional internal contracts and key performance indicators will be utilized to demonstrate equivalence in relation to the operational quality of designated services. Internal wholesale prices will be used as a key input in assessing whether Telstra is pricing fairly at the retail level compared with the prices it charges its wholesale customers. Senator Coonan noted that the Plan was one of three elements to the operational separation framework that include the detailed strategy documents -- which have also been released -- and price equivalence arrangements. The Age says that by the end of June 2006, price equivalence arrangements are expected to be finalized and released. Yet, according to the reports, Senator Coonan clarified that although she has approved the Plan, Telstra still has to fully implement operational separation. "There are strong enforcement powers available to remedy any deficiencies in Telstra's implementation of operation separation," she said. Telstra stated that it would immediately start implementing the Separation Plan. Telstra wholesale chief Kate McKenzie said that all employees will receive information on operational separation and be required to complete compulsory online training programs. FTTN Network Telstra is expected to release a consultation document within weeks for its proposed fibre-to-the-node network, which is the most critical regulatory issue hanging over the T3 Sale, The Age relates. According to the report, Telstra has promised to give rivals full access to the network, but questions still exist over the price at which they will get access and transition arrangements for rivals that are installing broadband infrastructure on Telstra's copper network. The Age notes that FTTN is expected to supersede most of this infrastructure. Government Stake Sale The Age also reports that the Government is expected to decide next month whether to proceed with the sale of its remaining 51% stake in Telstra. The sale, which is expected to take place in October or November, may net up to AU$25 billion. About Telstra Headquartered at Melbourne, in Victoria, Australia, Telstra Corporation -- http://www.telstra.com.au/-- is an Australian telecommunications and information services company. Telstra offers a full range of services and compete in all telecommunications markets throughout Australia, providing more than 10.3 million Australian fixed line and more than 6.5 million mobile services. In September 2005, Telstra suffered an earnings downgrade and share price fall. The Company announced that its earnings before interest and tax in 2005/06 are expected to decline by 7-10% compared to that of 2004/05 as a result of accelerating declines in public switched telephone network revenues and softening growth in the mobiles market due to aggressive pricing. Also, the political furor surrounding Telstra has strengthened the Government's resolve to dispose of its remaining 51% majority interest in the Company. The Australian Securities and Investment Commission then commenced an investigation into Telstra in connection with the Company's compliance with its disclosure obligations following the earnings downgrade. This led to a number of Telstra shareholders and class action claimants showing anger and dismay over the telco's behavior. In November 2005, after a four-month review, Telstra Chief Executive Officer Sol Trujillo announced a major restructure of the Company, one which involves the loss of thousands of jobs over the next five years and a massive investment in new networks which will help deliver bigger profit margins. TELSTRA CORPORATION: Three Firms Win Planning & Buying Accounts --------------------------------------------------------------- Three agencies will replace Optimedia, the agency that has held Telstra Corporation's media planning and buying accounts for seven years, The Age reports. These agencies are: 1) Naked Communications, which will be responsible for the media strategy for BigPond's content and youth segments; 2) OMD, which will handle all other segments as well as the BigPond and Sensis brands; and 3) The White Agency, which will be responsible for online planning for BigPond and Sensis. The Age cites Telstra media general manager Georgie Nichols as explaining that the agencies were chosen on how their areas of expertise matched Telstra's market segmentation strategy. The contracts will take effect on July 1, 2006. About Telstra Headquartered at Melbourne, in Victoria, Australia, Telstra Corporation -- http://www.telstra.com.au/-- is an Australian telecommunications and information services company. Telstra offers a full range of services and compete in all telecommunications markets throughout Australia, providing more than 10.3 million Australian fixed line and more than 6.5 million mobile services. In September 2005, Telstra suffered an earnings downgrade and share price fall. The Company announced that its earnings before interest and tax in 2005/06 are expected to decline by 7-10% compared to that of 2004/05 as a result of accelerating declines in public switched telephone network revenues and softening growth in the mobiles market due to aggressive pricing. Also, the political furor surrounding Telstra has strengthened the Government's resolve to dispose of its remaining 51% majority interest in the Company. The Australian Securities and Investment Commission then commenced an investigation into Telstra in connection with the Company's compliance with its disclosure obligations following the earnings downgrade. This led to a number of Telstra shareholders and class action claimants showing anger and dismay over the telco's behavior. In November 2005, after a four-month review, Telstra Chief Executive Officer Sol Trujillo announced a major restructure of the Company, one which involves the loss of thousands of jobs over the next five years and a massive investment in new networks which will help deliver bigger profit margins. TRANSFORMATIONS NZ: Creditors Must Prove Debts by Sept 15 ------------------------------------------------------------- Shareholder of Transformations NZ Ltd on June 15, 2006, appointed Vivian Judith Fatupaito and Richard Dale Agnew as joint and several liquidators of the Company. In this regard, the Liquidators require the Company's creditors to submit their proofs of debt by September 15, 2006, for them to share in any distribution the Company will make. Contact: Vivian Fatupaito PricewaterhouseCoopers, Level 8 PricewaterhouseCoopers Tower 188 Quay Street, Auckland New Zealand Telephone: (09) 355 8000 Facsimile: (09) 355 8013 VILLAGE ROADSHOW: Sold UK Cinema Interests for AU$33.5 Million -------------------------------------------------------------- Village Roadshow Ltd. has sold its United Kingdom cinema interests, which has resulted in a cash payment to the purchasers of approximately AU$33.5 million, the Company stated in a press release. As a result of the sale, Village Roadshow will have no ongoing commitments in respect of the long-term leases over the U.K. cinema sites. Village Roadshow further confirms that it is under ongoing discussions regarding the sale of its two remaining cinemas in Austria. As reported in the Troubled Company Reporter - Asia Pacific 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, which will be received in installments of: -- NZ$15 million in July 2006, -- NZ$15 million in January 2007, and -- NZ$19.5 million in July 2007. Village Roadshow has also acquired Warner Bros.' interests in their jointly owned Australian Theme Parks for a cash payment of AU$254 million. Directors confirm that this cash payment will be settled in the first week of July 2006 utilizing all of Village Group's remaining cash reserves and approximately AU$170 million of undrawn bank facilities. The Daily Telegraph adds that as part of its U.K. sell-off, Village Roadshow has already sold its cinema operations in Belfast to a local cinema operator. According to the Australasian Investment Review, the Company has forecast a AU$35-million net loss for the current financial year, if the deals are completed by the end of June. The Sydney Morning Herald cites a Fat Prophets analyst, Julian Morrison, as saying that Village Roadshow has resorted to paying someone else to take the U.K. cinemas off its hands because the costs of keeping them, such as the long-term site leases, were likely to be much greater. He further relates that although the payment was a surprise, it was better for the Company to take a hit on its books now than continue to hold the under-performing assets. Mr. Morrison doubted that the payment would result in Village Roadshow posting a loss greater than that previously flagged, the Sydney Herald says. 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. ================================ C H I N A & H O N G K O N G ================================ AGRICULTURAL BANK: NAO Bares CNY51-Bln Accounting Irregularity -------------------------------------------------------------- The National Audit Office found accounting irregularities involving CNY51.6 billion at Agricultural Bank of China for the year 2004, the Xinhuanet News reports. According to Xinhuanet, a report from the National Audit Office released on June 26, 2006, showed irregularities involving CNY14.27 billion in deposit business, CNY27.62 billion on loan grants, and CNY9.72 billion in fraudulent bill issuance. Xinhuanet relates that the auditors also alleged 157 people committed economic crimes in 57 fraud cases involving CNY8.68 billion. According to the report, auditors believe that "some of the cases were conspiracy set up by bank employees and outsiders". The report also cited "irregular operation" as a "prominent problem" for the bank, Xinhuanet adds. * * * The state-owned Agricultural Bank of China -- http://www.abocn.com/-- is the mainland's fourth largest bank. It has lagged behind other major Chinese commercial banks, which have received government injections of new capital and been allowed to link up with foreign partners in preparation for raising money on foreign stock exchanges. Despite posting operating profits of over CNY42.4 billion in 2005, the Bank is still carrying billions of dollars in unpaid loans to state companies, which it says accounted for 26% of its lending at the end of last year. BEST CHARM: Joint and Several Liquidators Step Aside ---------------------------------------------------- Lo Yip Tong and Lau Kwai Fun ceased to act as joint and several liquidators of Best Charm Enterprises Ltd on April 10, 2006. CHUNG TUNG INVESTMENT: Faces Winding-up Proceedings --------------------------------------------------- China Ease Investments on March 13, 2006, filed before the High Court of Hong Kong three petitions against Chung Tung Investment. The Petitioner is requesting the Court: -- to allow respondents Tokyo Holdings Limited and Yiu Yan Che to inspect and make copies of Chung Tung's books; -- to wind-up the Chung Tung's business operations; and -- to authorize Tokyo Holdings and Yiu Yan Che to purchase China Ease's shares in Chung Tung, or the Respondents to sell their shares to the Petitioner. The High Court will hear the petitions on July 5, 2006, at 9:30 in the morning. Contact: Solicitors for the Petitioner 8th Floor, EIB Centre 40-44 Bonham Stand, Sheung Wan Hong Kong Telephone: 3421 1999 Facsimile: 3421 0111 CYBERWORKS AUDIO: Members' and Creditors' Meetings Set July 6 ------------------------------------------------------------- Members and creditors of Cyberworks Audio Video Technology Ltd will convene at 5th Floor, Allied Kajima Bldg, 138 Gloucester Road, Wanchai, Hong Kong on July 26, 2006, at 11:00 a.m. and 11:30 a.m. respectively. FELIX TSANG & PARTNERS: To Pay First Dividend on June 30 -------------------------------------------------------- Felix Tsang & Partners Ltd will pay its first dividend of 12.44% starting June 30, 2006. The Company is in liquidation. FORLUXE FINANCE: Court Names Joint Liquidator --------------------------------------------- Stephen Briscoe was on May 4, 2006, appointed as liquidator to act jointly and severally with Nicolas Timothy Cornforth for Forluxe Finance Ltd. The High Court of Hong Kong ordered the appointment of Mr. Briscoe in place of Tot Yat Hung. Contact: Stephen Briscoe 5/F., Allied Kajima Bldg 138 Gloucester Road Wanchai, Hong Kong FORLUXE SECURITIES: Briscoe, to Act as Joint Liquidator ------------------------------------------------------- Stephen Briscoe was on May 4, 2006, appointed liquidator to act jointly and severally with Nicolas Timothy Cornforth for Forluxe Securities Ltd. The High Court of Hong Kong ordered the appointment of Mr. Briscoe in place of Tot Yat Hung. Contact: Stephen Briscoe 5/F., Allied Kajima Bldg 138 Gloucester Road Wanchai, Hong Kong GAINFUL MANAGEMENT: Joint Liquidators Cease to Act for Company -------------------------------------------------------------- Lo Yip Tong and Lau Kwai Fun ceased to act as joint and several liquidators of Gainful Management Ltd on April 7, 2006. GANDETEL TECHNOLOGIES: Creditors Must Prove Debts by July 14 ------------------------------------------------------------ Joint and Several Liquidator Wu Shek Chun requires the creditors of Gandetel Technologies Inc to submit their proofs of claim by July 14, 2006. Failure to prove debts by the due date will exclude any creditor from sharing in any distribution the Company will make. Contact: Wu Shek Chun 17/F., Punfet Bldg 701 Nathan Road, Kowloon Hong Kong HANIL HONG KONG: Creditors' Proofs of Debt Due on July 12 --------------------------------------------------------- Joint Liquidators Joseph Kin Ching Lo and Dermot Agnew will be receiving proofs of debt from creditors of Hanil Hong Kong Ltd until July 12, 2006. Failure to prove debts by the due date will exclude any creditor from sharing in any distribution the Company will make. Contact: Joseph Kin Ching Lo 32/F., One Pacific Place 88 Queensway Hong Kong HIGHWELL DEVELOPMENT: Court to Hear Wind-up Petition on July 12 --------------------------------------------------------------- The Motor Transport Company of Guangdong and Hong Kong Ltd on May 9, 2006, filed before the High Court of Hong Kong a petition to wind up Highwell Development Ltd. The Court will hear the petition on July 12, 2006, at 9:30 in the morning. Contact: Gallant Y.T. Ho & Co Solicitors for the Petitioner 5th Floor Jardine House No. 1 Connaught Place Central, Hong Kong HOI SING CONSTRUCTION: Court Orders Appointment of Liquidator ------------------------------------------------------------- The High Court of Hong Kong on May 9, 2006 ordered the appointment of Stephen Briscoe as liquidator of Hoi Sing Construction in place of Alan Rennie. Mr. Briscoe will act jointly and severally with Liquidator Nicolas Timothy Cornforth. Contact: Stephen Briscoe 5/F., Allied Kajima Bldg 138 Gloucester Road Wanchai, Hong Kong HTL GARMENTS COMPANY: Wind-up Petition Hearing Set on Aug 23 ------------------------------------------------------------ The High Court of Hong Kong will hear a petition to wind-up the business of HTL Garments Ltd on August 23, 2006, at 9:30 in the morning. South China Garments Company Ltd filed the petition before the Court on June 5, 2006. Contact: S.K. Wong & Co Solicitors for the Petitioner Rooms 2001-4, 20th Floor Hang Seng Building No. 77 Des Voeux Road Central Hong Kong JUN CHENG GROUP: Appoints Joint and Several Liquidators ------------------------------------------------------- Bruno Arboit and Simon Richard Blade were on May 29, 2006, appointed as liquidators to act jointly and severally for Jun Cheng Group Company Ltd. Contact: Bruno Arboit 12/F China Merchants Tower Shun Tak Centre 168-200 Connaught Road Central, Hong Kong TCL MULTIMEDIA: To Sell Non-Core Assets for HKD337 Million ---------------------------------------------------------- TCL Multimedia Technology is selling its personal computer business and other non-TV related assets to its parent firm TCL Corporation for HKD377 million, The Standard reports. The proposed disposal is part of the Company's strategy to focus on its troubled television business, which made up more than 87% of its revenue last year, the Standard says. The plan will also see the Company divesting most of its non-TV and non-audio visual businesses. Apart from the PC business, TCL Multimedia will also sell a 65% stake in TCL Tower -- a Shenzhen office building -- and its educational software unit to TCL Corp, the Standard relates. TCL Corp owns 38.8% interest in TCL Multimedia, whose PC business reported a decline in operating profit to HKD22.6- million last year. Still, the PC business fared well when compared to TCL Multimedia's core TV business, which made an operating loss of HKD236.6 million in the same period. According to the Standard, TCL Multimedia acquired its TV business from France's Thomson SA in 2004. However, the Company's TV business was adversely affected by problems at former Thomson operations in Europe and the United States. But TCL Multimedia is optimistic that its TV business in the U.S. should be profitable this year, though it did not make the same forecast for its European operations, The Standard adds. Despite the positive forecasts, the Company's difficulties are expected to worsen this year as it reported its net loss widened to HKD139 million in the first quarter, compared to HKD48 million in the same period last year. * * * Headquartered in New Territories, Hong Kong, TCL Multimedia Technology Holdings Limited -- http://www.tclcom.com/-- is formerly known as TCL International Holdings Limited. The Group's principal activities are designing, manufacturing and selling electronic products like colored TV, DVD players, VCD players, home cinema hi-fi systems, mobile handsets, internet related information technology products, refrigerators and washing machines. Its other activity includes trading electronic parts and components used in the production of color television sets. The Troubled Company Reporter - Asia Pacific reported on January 9, 2006, that China's TCL Multimedia Technology Holdings Ltd. expects its money-losing North American and European operations to break even this year, a half year behind previous targets, citing TCL Multimedia Chairman Li Dongsheng. The North American and European operations, which operate under the RCA and Thomson brands, respectively, posted losses of about HK$30 million in 2005. TECH SOURCE: Releases Joint Liquidators --------------------------------------- Tech Source Technology Ltd released Joint and Several Liquidators Lo Yip Tong and Lau Kwai Fun on April 11, 2006. UNIVERSAL DOCKYARD: Creditors Meeting Set June 30 ------------------------------------------------- Creditors of Universal Dockyard Ltd will convene on June 30, 2006, at 3:00 in the afternoon to discuss about the Company's wind-up. The meeting will be held at The Boardroom, Baker Tilly Hong Kong, 12th Floor China Merchants Tower, Shun Tak Centre, 168-200 Connaught Road Central Hong Kong. WEALTHY DEVELOPMENT: Court to Hear Winding-up Bid on August 2 ------------------------------------------------------------- A petition to wind up Wealthy Development will be heard before the High Court of Hong Kong on August 2, 2006. Grand Marseille Enterprises Ltd filed the petition with the Court on June 6, 2006. Parties wishing to attend the hearing are required to file an appearance not later than August 1, 2006. Contact: Ford, Kwan & Company Solicitors for the Petitioner Suites 1505-1508, 15th Floor Chinachem Golden Plaza No. 77 Mody Road, Tsimshatsui East Kowloon, Hong Kong Telephone: 2366 0688 Facsimile: 2722 0736 ========= I N D I A ========= DUNLOP INDIA: 1,400 Workers Get First Installment for Bach Wages ---------------------------------------------------------------- Dunlop India Limited's new promoter, Pawan Ruia, has finally granted around 1,400 Sahagunj plant workers INR5,000 each as initial payment for back wages, Kolkota Newsline reports. The remaining 3,000 employees will get their share in the next few days. The payment was made on June 20, 2006, five days after Mr. Ruia vowed before chief minister Buddhadeb Bhattacharjee to settle the dispute between the Dunlop's management and workers by paying off wage arrears within a year of reopening the factory in April this year. The initial installment was paid to workers for the periods November 1997-February 1998 and January-August 2001 when the Company was owned by the Manu Chhabria group, Kolkota Newsline relates. While 2,800 workers are in the rolls now, back wages would be paid to 4,400 workers who were on the rolls between 1997 and 2001. Each worker would get a total of INR30,000, with INR25,000 to be paid out over the next six months, the report says. As reported by the Troubled Company Reporter - Asia Pacific, the dispute between Dunlop India's new management and its workers has delayed commercial production at the Company. The clash was over payment of arrears to workers of the Sahagunj facility, which was closed in August 2001 and reopened in April this year. About Dunlop India Headquartered in Kolkota, India, Dunlop India Limited is involved principally in manufacturing and distributing automotive tires and tubes. The firm's other activities include manufacturing high-pressure hoses, steelcord belting and vibration isolators. The company had reported profit until March 1997. In January 1998, the Board of Directors decided that the Company had become sick due to the necessity of reversing the earlier decision for sale of some real estate property of the company through a subsidiary, Dunlop Investment Limited. This decision required a reversal of corresponding entry of INR1,700 million and its reflection in the accounts of the financial year 1997-98. After taking this into account, the Board of Directors decided to refer the Company to Board of Industrial and Financial Reconstruction and abruptly announced suspension of Dunlop's operations in both Sahagunj and Ambattur in February 1998. The Ministry for Law, Justice and Company Affairs had also come to the conclusion after inspection of the Books of Accounts of Dunlop India that there were serious irregularities and had moved the Company Law Board for appointment of Government Directors. In January 2006, the Ruia Group took over the Company and voted to reopen its plants. Both the Sahagunj and Ambattur plants were reopened in April 2006. HINDUSTAN PETROLEUM: Bags ISO Certification for Vizag Refinery -------------------------------------------------------------- Hindustan Petroleum Corporation Limited's Vizag facility has obtained the ISO 14001-2004 certification from SGS - U.K., with United Kingdom Accreditation Services, Business Line reports. In a press release on Saturday, Hindustan Petroleum disclosed that the audit was conducted by SGS and Environmental Management System. The certificate is valid till May 2009, Business Line says. 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. HINDUSTAN PETROLEUM: To Vend Catalytic Converters in 10 Outlets --------------------------------------------------------------- Ten Hindustan Petroleum Corporation Limited petrol bunks in Chennai will soon sell the patented electronic catalytic converters made by the city-based Hydrodrive Systems and Controls Private Limited, Domain News reports. Priced at INR6,600 per unit, a catalytic converter buyer at the specified Hindustan Petroleum bunks also gets INR200 worth Power brand petrol or Turbojet diesel free, The Domain says. Outwardly a simple cylindrical product with two wires dangling to be connected to the battery and a small nozzle for fitting it to the fuel line, Hydrodrive is an automobile emission controller as well as fuel economizer that works by microwave heating of the fuel (petrol, diesel), thereby altering the fuel's molecular structure for optimum burning. By retrofiting the Hydrodrive electronic catalytic converters each vehicle user traveling an average distance of 50 km per day would be able to offset the recent fuel price hike of INR4 per litre for the petrol and INR1.55 to INR2.00 on diesel, the Domain adds. Hindustan Petroleum expects that the sale of the Hydrodrive electronic catalytic converters will help boost its sales to offset daily losses it incurs through the sale of fuel products at government-mandated prices. 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. ================= I N D O N E S I A ================= * Indonesia to Repay 50% of IMF Debt In Advance on June 30 ---------------------------------------------------------- Indonesia said that it would repay US$3.7 billion, or 50% of its total debt, to the International Monetary Fund on June 30, 2006, Antara News says. In its original repayment schedule, Indonesia's final repayment was slated in December 2010 on a credit line worth US$11.1 billion extended in August 1998, after the Asian financial crisis, and was later extended in February 2000 on an extended fund facility. Antara relates that after its advance repayment, Indonesia would owe IMF US$3.7 billion. State central bank governor Burhanuddin Abdullah said that Indonesia hopes to repay all its outstanding debt to the IMF by December this year. ========= J A P A N ========= KOBE STEEL: Six Key Officials Face Raps for False Reporting ----------------------------------------------------------- Kobe Steel Limited, on June 22, 2006, punished six of its key executives who were involved in the falsification of smog data released by one of the Company's plants over a period of 30 years, Crisscross News reports. The Company will impose pay cuts for three months on Chairman Koshi Mizukoshi, President Yasuo Inubushi and two other officials. Mr. Mizukoshi and Mr. Inubushi also said they will waive half of their monthly stipend for the three-month period, while the two unnamed officials were demoted, according to the Company. The Japan Times writes that in an internal investigation, Kobe Steel discovered that factory workers at the Company's steel mill in Kakogawa, Hyogo Prefecture, which has been operating since 1970, falsified the funnel fumes data in its reports after a fifth boiler that started operations in 1977 released soot and smoke higher than the acceptable level set by Japan's anti- pollution law. When a sixth boiler was introduced into the plant in 1990, workers again faked reports for two years, according to the internal report. The manager-in-charge overlooked the misconduct, believing that there was no other choice but to allow it, the Japan Times relates. None of Kobe Steel's senior managers admitted knowing about the cover-up. Headquartered at Chuo-ku, Kobe, in Hyogo, Japan, Kobe Steel, Limited -- http://www.kobelco.co.jp/english/corp/index.html-- is one of Japan's leading steel makers, as well as the top supplier of aluminum and copper products. Other businesses include welding consumables, urban infrastructure and plant engineering services, and industrial machinery. The Company also has high-tech businesses in electronics and information systems. Kobe Steel has numerous consolidated and equity-valued companies in Japan, the Americas, Asia and Europe. KOBELCO is the corporate mark used by Kobe Steel on a variety of products and in the names of a number of group companies. On May 31, 2006, Fitch Ratings Agency upgraded the Company's long-term foreign and local currency Issuer Default Ratings to 'BB+' from 'BB', on the continued improvement of its credit metrics, with total adjusted debt/operating EBITDAR having improved to 2.6x at FYE06 from 9.3x at FYE02. MITSUBISHI MOTORS: Prioritizes Restructuring Above All Else ----------------------------------------------------------- Mitsubishi Motors Corp. said that it will focus on implementing its restructuring plans to be able to generate profits before it could start to pay dividends to shareholders, The Wall Street Journal reports. In Mitsubishi Motors' annual stockholders' meeting, shareholders asked President Osamu Masuko when they would be able to pay dividends. The Company said it would try to return to profitability first, before doling out dividends. Mitsubishi Motors has not distributed dividends to shareholders since FY97 ended March 31, 1998. Mitsubishi Motors underwent restructuring after its largest shareholder DaimlerChrysler AG opted to pull out of the Company, as well as a drop in its local sales when defective products were discovered. 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 the loss was attributed to special restructuring costs, including a re-evaluation of its property. Mitsubishi Motors aims to gain profit worth JPY8 billion for fiscal year 2006 ending March 31, 2007, the second year of its three-year restructuring. 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 three-year business plan covering fiscal 2005 through 2007, after DaimlerChrysler backed out from the Company. The main objectives of the plan are "Regaining Trust" and "Business Revitalization." SANYO ELECTRIC: Shareholders Approve Restructuring Plan ------------------------------------------------------- Shareholders of Sanyo Electric Co. accepted the Company's proposal to reduce its debts and upheld the reappointment of President Toshimasa Iue and Chairwoman Tomoyo Nonaka at a meeting held on June 23, 2006, the Japan Times reveals. Mr. Iue apologized to shareholders at the meeting, saying that the Company's efforts to hasten reforms led to a net loss, Japan Times adds. According to a Troubled Company Reporter - Asia Pacific report on May 22, 2006, the Company posted a JPY205.66-billion consolidated net loss for the business year 2005 ended March 31, 2006, against a JPY171.54-billion loss in 2004. According to Japan Times, shareholders also criticized the Company's management, asking if it would be better if another firm managed Sanyo. Mr. Iue, who became president of Sanyo last year together with Chairwoman Nonaka, will be judged according to his success in turning the Company around to post a profit this year. * * * Incorporated in Japan in 1947, Sanyo Electric Company, Limited -- http://www.global-sanyo.com/-- manufactures a broad range of electronic products grouped into six categories: video equipment, audio equipment, home appliances, industrial and commercial equipment, information systems and electronic devices, and batteries and other products. The Troubled Company Reporter - Asia Pacific stated on Feb. 27, 2006, that Sanyo Electric shareholders approved a JPY300-billion bailout plan that will give banks management control of the Company to help it recover its losses. In its business restructuring plan, Sanyo planned to downsize its global workforce of 96,000 by 15% to 14, 400 over a three- year period, and to concentrate on developing environment- friendly products and technologies and sell 20% of a 2-million square meter property occupied by its factories in Japan. The Company states that it had completed its downsizing last March 2006, two years ahead of schedule. The TCR-AP reported on Mar. 22, 2006, that Standard & Poor's Ratings Services said that its 'BB' long-term corporate credit and 'BB+' long-term senior unsecured debt ratings on Sanyo Electric remain on CreditWatch with negative implications, after the Company disclosed its plan to form a joint venture with Taiwan's Quanta Computer, Inc., in the flat panel TV business. Sanyo's ratings were first placed on CreditWatch with negative implications on Sept. 28, 2005, and remain on CreditWatch after ratings went down twice in November 2005. According to S&P, Sanyo's TV business suffered from poor performance due to its inefficient production and marketing system, as well as weak brand recognition. Although the details for the joint venture company have yet to be announced, S&P believes that the path to stable earnings in Sanyo's TV business remains uncertain. While the joint venture focuses solely on the flat panel business, the Company needs to make drastic improvements to its production and marketing system, including its core cathode-ray tube TV business, in order to turn around the overall TV business. ========= K O R E A ========= DAEWOO ENGINEERING: Names Kumho-Asiana as Preferred Bidder ---------------------------------------------------------- The Kumho-Asiana Group was named on June 22, 2006, as the preferred bidder for the takeover of Daewoo Engineering & Construction Co., Bloomberg News reports. The Kumho Group, led by Kumho Industrial Co., outbid four rivals -- Doosan Group, Eugene Group, Prime Group, and Samwhan Group -- for the control of Daewoo Engineering with a reported KRW6.6-trillion offer. The Chosun Ilbo reported on June 15, 2006, that Kumho-Asiana's KRW6.6-trillion offer was for a 72.1% stake in Daewoo Engineering. According to The Korea Herald, Prime Group -- composed of property developer Prime Industrial Co.; Daewoo Engineering's labor union, National Agricultural Cooperative Federation and Woori Bank -- was chosen as the second-preferred bidder. The Herald relates that state-run restructuring agency Korea Asset Management Corp., which holds a 44.4% stake in Daewoo Engineering, announced the results after a review by the Public Funds Oversight Committee of the Finance Ministry. The PFOC supervises the sales of state assets. Bloomberg says that the PFOC approved KAMCO's selection of Kumho-Asiana at a meeting last Thursday. Bloomberg notes that the takeover will add KRW5.9 trillion of assets to Kumho-Asiana, raising it to South Korea's 13th-largest industrial group from 18th. Kumho-Asiana's operations include airline service, land transportation, tires, chemicals, construction and insurance. The Herald says that with Daewoo Engineering and its existing construction affiliate, Kumho Industrial Co., Kumho-Asiana is expected to emerge as the strongest construction group in Korea. Bloomberg notes that Asiana's takeover of Daewoo Engineering, which is Korea's largest builder by market value, represents a bet that the nation's KRW100-trillion construction industry will continue to recover from a slowdown caused by the 1997 financial crisis. Daewoo Engineering, whose profit rose 65% last year, controls 8% of the industry. Kumho-Asiana will start exclusive talks with creditors to buy their 72% stake in Daewoo Engineering, KAMCO said. About Daewoo Engineering Headquartered in Seoul, South Korea, Daewoo Engineering & Construction Co. -- http://www.daewooenc.com-- has become a world leader in civil engineering, housing construction, power and industrial plant development, architectural services, and construction of liquid natural gas facilities. In addition to large-scale domestic projects, Daewoo has more recently built gas plants in Nigeria, a hospital in Libya, and the Trump World Tower in New York, to name a few. Daewoo Engineering was formed in 2000 by creditors after Daewoo Group, then South Korea's second-largest industrial consortium, collapsed under about KRW85 trillion in debt. In early 2004, Daewoo Engineering's largest shareholder, the Korea Asset Management Company, announced a proposed auction of the construction firm. Daewoo Engineering is the latest part of the bankrupt Daewoo business empire to be sold. The contractor turned around its finances and outlook, posting KRW409.8 billion in net income in 2005, and has a backlog of KRW18.47 trillion worth of orders from regions including Africa, the Middle East and South Korea. The company's market value rose 70% in 2005 to KRW4.5 trillion. Operating profit was KRW432.1 billion in 2005, equal to 8.5% of revenue. Debt accounted for 130% of shareholder equity as of Dec. 31, 2005. HYUNDAI ENGINEERING: To Exit Debt Workout Program ------------------------------------------------- Creditors of Hyundai Engineering & Construction Co. relinquished direct control of Korea's top builder in May 2006, more than five years after it lapsed into a liquidity crisis, JoongAng Daily reports. Korea Exchange Bank, Hyundai Engineering's main creditor, said that Hyundai Engineering had completed a debt workout program imposed in October 2001, when it was teetering under huge debts. The move was in line with creditors' decision in April 2006, based on Hyundai Engineering's improving performance, to terminate their supervision of the builder, JoongAng notes. A company disclosure posted on the Korean Stock Exchange site stated that when Hyundai Engineering entered the restructuring program at the end of 2000, it had a negative capital of KRW857.2 billion and debts exceeding KRW4.48 trillion. However, it has emerged as a financially sound construction company in five years with its capital reaching KRW1.32 trillion. Its net income and loans are currently estimated at KRW326.5 billion and KRW1.73 trillion, respectively. Hyundai Engineering's Restructuring The KSE disclosure outlined the Company's restructuring efforts: * The company's creditors converted a KRW1.4-trillion debt into equity and issued new shares to increase capital by KRW1.5 trillion. As a result, Hyundai Engineering was able to eliminate its financial and liquidity problems and focus on its operations. * The Company recognized its external growth-oriented management as one of the factors that caused its insolvency and established a new order review board to reform its business practices. It only carried out projects that guaranteed profitability and satisfactory cash flow. As a result, the Company was able to improve its profitability. * The Company had to give up 30% of orders received because of the review board's decisions. * The Company reduced costs by introducing a bidding method that triggered perfect competition. * Hyundai Engineering also eliminated insolvencies and secured a long-term growth engine. * Furthermore, the number of its employees has fallen to 3,504 from 7,090 in the beginning of 2001. The remaining employees had put up with reduced wages and benefits. Bright Outlook, Great New Start The Troubled Company Reporter - Asia Pacific reported on April 3, 2006, that Hyundai Engineering Vice-President Lee Jong- soo assumed the position of chief executive officer, replacing Lee Ji-song, who quit due to health reasons. According to the TCR-AP, Hyundai Engineering creditors -- led by Korea Exchange Bank with a 25.2% stake, Korea Development Bank with 22.7% and Woori Bank with 21.6% -- were also reportedly looking to sell their stake in the builder, estimated to be worth more than KRW3 trillion in aggregate. Hyundai Engineering posted a record profit of KRW323.8 billion in 2005, a sharp turnaround from a net loss of KRW3 trillion in 2001, JoongAng Daily adds. The company was capitalized at KRW1.3 trillion as of the end of last year, compared to a negative net worth of KRW857.2 billion at the end of 2000. Hyundai Engineering's market capitalization came to KRW5.5 trillion as of May 2006, more than 15 times the KRW352.5 billion in March 2001. The Company's debt fell to KRW1.7 trillion from KRW4.5 trillion six years ago. About Hyundai Engineering Headquartered in Seoul, South Korea, Hyundai Engineering & Construction Company Limited's -- http://www.hdec.co.kr/-- is involved in civil engineering, housing development projects and other contracted construction works in South Korea and internationally. Its operations fall into the following key areas: building, civil works, plant and power works. Within the building and housing section, HDEC is involved in construction and architecture, and has been involved in residential, commercial and institutional building projects. The Troubled Company Reporter - Asia Pacific reported on December 17, 2003, that the creditor banks of Hyundai Engineering agreed to roll over its debts, which amount to KRW6 trillion, starting 2004. The debt extension is valid until 2006 and applies to KRW1.72 trillion in loans that come due beginning 2004 and about KRW4 trillion in loan guarantees related to construction activities. The TCR-AP reported that Hyundai Engineering ran into a liquidity problem in 2000 after extending massive subsidies to prop up its weak subsidiaries and loss-making businesses. Huge outstanding debts in Iraq further strained the contractor's finances. KOREA EXCHANGE: BAI Finds Lone Star Sale Had Bureau Approval ------------------------------------------------------------ The Board of Audit and Inspection concluded that Lone Star Funds' acquisition of Korea Exchange Bank was led by management with the approval of the financial supervisory bureau, The Dong-A Ilbo reports. According to the BAI's final inspection results, KEB exaggerated its insolvency and falsely recorded the Bank for International Settlements' capital adequacy ratio at 6.16%. BAI's first deputy secretary general, Ha Bok-dong, said that "the bank supervisory bureau did not do its part and did not examine more closely and bended related rules to pave the way for the KEB sale to Lone Star, whose qualification was questioned according to regulations on bank." However, Mr. Ha explained, the approval cannot be called off as the BAI could not find any evidence that Lone Star was involved in the process. According to the report, the KEB management asked Samil PricewaterhouseCoopers to turn in its results of a property credit inspection based on an overestimate of the KEB's insolvency in 2003. Thus, KEB's stock price was fixed at minimum KRW1,718, lower than that when general accounting standards were applied. The BAI is going to hand over to the prosecutors' office its report of inspection results, which includes the charge of malfeasance in office and abuse of authority against: * Lee Kang-won, former president of KEB; * Lee Dal-yong, former vice president of KEB; * Cheon Yong-jun, former chief deputy of business strategy of KEB; and * Byeon Yang-ho, former deputy director general for financial policy of Ministry of Finance and Economy. The Troubled Company Reporter - Asia Pacific reported on April 12, 2006, that Lee Kang-won has admitted to the BAI that there was a mistake in calculating the Bank's capital adequacy ratio before it was sold to Lone Star. The state inspection agency had cited Mr. Lee as admitting that the BIS' capital adequacy ratio of KEB was lowered to 6.16%, which is below the minimum requirement of 8% for a sound bank. However, Mr. Lee denied that the financial data was fabricated. The BAI had sought to check whether the data was manipulated for the benefit of Lone Star. If prosecutors will find solid evidence that the data was cooked up, it might lead to the nullification of the KEB sale to Lone Star and the arrest of regulators, policymakers and former KEB executives. Dong-A recounts that the Supreme Public Prosecutors' Office began its investigation of the KEB scandal on June 19, 2006. Prosecutors will investigate whether there were any transgressions of law in the process of selling KEB and whether bribes were given to officials. About Korea Exchange Korea Exchange Bank -- http://www.keb.co.kr/english/index.htm-- was established in January 1967 by the Government originally as a specialist foreign exchange bank. It retains its strength in trade finance and foreign exchange. In terms of assets, it ranks sixth among Korea's nationwide commercial banks with 7% of system assets. It operates a branch network of 317 domestic and 28 overseas offices. During the economic crisis, significant exposures to troubled corporate borrowers led to a deterioration in the bank's financial health. However, since then, its operating performance stabilized, and the bank has reported eight consecutive quarterly profits since the end of 2003. As reported by the Troubled Company Reporter - Asia Pacific, South Korean politicians -- led by the main opposition Grand National Party -- have alleged that the Korea Exchange shares were sold cheap to United States-based Lone Star Funds after the Bank's financial status was incorrectly reported. Korea Exchange denied the allegations in March 2006. The Board of Audit and Inspections and the Supreme Public Prosecutors' Office initiated separate investigations into the matter. KOREA EXCHANGE: FSC Defends Role in Lone Star Deal -------------------------------------------------- Korea's Financial Supervisory Commission and the Finance Ministry defended their involvement in the fraught sale of Korea Exchange Bank to United States-based Lone Star Funds, the Chosun Ilbo reports. This after the Board of Audit and Inspection determined that KWB was sold to an unqualified buyer at below market price. The FSC denied that there were flaws in its approval of the sale, including the assessment of KEB's capital adequacy ratio, which the Board of Audit and Inspection claimed was manipulated, Chosun Ilbo relates. The Commission added that it was "inevitable at the time" to authorize the deal. The Finance Ministry, on the other hand, said that if KEB had failed to boost its capital at the time, the bank and its credit card unit would have faced bankruptcy. The Troubled Company Reporter - Asia Pacific reported on April 12, 2006, that KEB's former president, Lee Kang-won, admitted to the BAI that there was a mistake in calculating the Bank's capital adequacy ratio before it was sold to Lone Star. Mr. Lee admitted that the Bank for International Settlements' capital adequacy ratio of KEB was below the minimum requirement for a sound bank. The BIS ratio is a critical measurement of the viability of banks. Banks are regarded as healthy when the ratio is over 8%. At the time of its sale to Lone Star, KEB's BIS ratio was evaluated at 6.16%. However, Mr. Lee denied that the financial data was fabricated. * * * Korea Exchange Bank -- http://www.keb.co.kr/english/index.htm-- was established in January 1967 by the Government originally as a specialist foreign exchange bank. In terms of assets, it ranks sixth among Korea's nationwide commercial banks with 7% of system assets. It operates a branch network of 317 domestic and 28 overseas offices. During the economic crisis, significant exposures to troubled corporate borrowers led to a deterioration in the bank's financial health. However, since then, its operating performance stabilized, and the bank has reported eight consecutive quarterly profits since the end of 2003. South Korean politicians -- led by the main opposition Grand National Party -- alleged that the KEB shares were sold cheap to United States-based Lone Star Funds after the Bank's financial status was incorrectly reported. Korea Exchange denied the allegations in March 2006. The Board of Audit and Inspection and the Supreme Public Prosecutors' Office initiated separate investigations into the matter. On June 20, 2006, the BAI determined that Lone Star's acquisition of Korea Exchange was led by management with the approval of the financial supervisory bureau. BAI found that KEB exaggerated its insolvency and falsely recorded the Bank for International Settlements' capital adequacy ratio at 6.16%. The Supreme Public Prosecutors' Office began its own investigation of the KEB scandal on June 19, 2006. Prosecutors will investigate whether there were any transgressions of law in the process of selling KEB and whether bribes were given to officials. If prosecutors will find solid evidence that the data was cooked up, it might lead to the nullification of the KEB sale to Lone Star and the arrest of regulators, policymakers and former KEB executives. KOREA EXCHANGE: Prosecutors to Summon Former Company President -------------------------------------------------------------- Korea Exchange Bank's former president, Lee Kang-won, and other key figures allegedly involved in a scandal surrounding the 2003 KEB sale to American private equity fund, Lone Star, are to be summoned by prosecutors, The Korean Times reports. As reported in the Troubled Company Reporter - Asia Pacific on June 23, 2006, Korea's Supreme Public Prosecutor's Office began its investigation on the alleged irregularities in the sale of KEB to Lone Star Funds and indicated that the probe may include summoning key figures in the deal. An earlier report by the TCR-AP stated that KEB's former president admitted to the Board of Audit and Inspection that there was a mistake in calculating the bank's capital adequacy ratio before it was sold to Lone Star. Mr. Lee admitted that the Bank for International Settlements' capital adequacy ratio of KEB was below the minimum requirement for a sound bank. The BIS ratio is a critical measurement of the viability of banks. Banks are regarded as healthy when the ratio is over 8%. At the time of its sale to Lone Star, KEB's BIS ratio was evaluated at 6.16%. However, Mr. Lee denied that the financial data was fabricated. The BAI have uncovered circumstantial evidence implicating Mr. Lee as well as Bogo Fund chief executive officer and former director-general of the Finance Ministry's Financial Policy Bureau Byeon Yang-ho; and Deputy Finance Minister Kim Seok-dong. They and other former and current officials in the Finance Ministry will be questioned about the allegations that KEB's BIS capital adequacy ratio was manipulated to justify the Lone Stare sale and other charges. Other Figures to be Summoned The Korean Times says that prosecutors will also summon Mr. Kim, who was director-general of the Financial Supervisory Service's supervisory policy bureau at the time of Lone Star's KEB purchase. They will also call on former KEB vice-president Lee Dal-yong and former Deputy Prime Minister Lee Hun-jai to answer questions relating to allegations that they were involved in manipulating the records to make KEB's financial status look worse than it really was, allowing Lone Star to take over the bank at a discounted price in exchange for kickbacks. Chae Dong-wook, a senior prosecutor at the Supreme Prosecutors' Office, said that investigators are now looking into the bank account transactions of Mr. Lee, as well as those of other unnamed former and incumbent economic policymakers. Last week, the prosecutors issued an overseas travel ban on Mr. Lee and three others, including Mr. Lee Kang-won. According to the report, prosecutors are seeking answers regarding how Mr. Lee increased his wealth from KRW2.5 billion in August 2000 to KRW8.6 billion in February 2004, when he served as an advisor to local law firm Kim & Chang, who offered legal counsel to Lone Star at the time of the KEB takeover. Mr. Lee, who stepped down as Korea's top economic policymaker in March last year over suspicion of real estate speculation, had previously explained that the rise in his wealth was mainly due to KRW4.6 billion in capital gains from selling land in Kwangju, in Kyonggi Province, in late 2003. Prosecutors are also trying to confirm allegations that government officials pressured KEB executives to inflate the Company's bad loans to lower its BIS capital adequacy ratio. About Korea Exchange Korea Exchange Bank -- http://www.keb.co.kr/english/index.htm-- was established in January 1967 by the Government originally as a specialist foreign exchange bank. In terms of assets, it ranks sixth among Korea's nationwide commercial banks with 7% of system assets. It operates a branch network of 317 domestic and 28 overseas offices. During the economic crisis, significant exposures to troubled corporate borrowers led to a deterioration in the bank's financial health. However, since then, its operating performance stabilized, and the bank has reported eight consecutive quarterly profits since the end of 2003. South Korean politicians -- led by the main opposition Grand National Party -- alleged that the KEB shares were sold cheap to United States-based Lone Star Funds after the Bank's financial status was incorrectly reported. Korea Exchange denied the allegations in March 2006. The Board of Audit and Inspection and the Supreme Public Prosecutors' Office initiated separate investigations into the matter. On June 20, 2006, the BAI determined that Lone Star's acquisition of Korea Exchange was led by management with the approval of the financial supervisory bureau. BAI found that KEB exaggerated its insolvency and falsely recorded the Bank for International Settlements' capital adequacy ratio at 6.16%. The Supreme Public Prosecutors' Office began its own investigation of the KEB scandal on June 19, 2006. Prosecutors will investigate whether there were any transgressions of law in the process of selling KEB and whether bribes were given to officials. If prosecutors will find solid evidence that the data was cooked up, it might lead to the nullification of the KEB sale to Lone Star and the arrest of regulators, policymakers and former KEB executives. SANG LIM LEATHER: Cuts 1st Quarter Net Loss by Almost 50% --------------------------------------------------------- Sang Lim Leather Co., Ltd. posted a KRW857.65-million net loss for the first quarter of 2006, a 47.96% decrease from the KRW1.65-billion net loss it reported in the quarter ended March 31, 2005. This comes as sales for this year's first quarter rose 43.61% to KRW7.80 billion, from KRW5.43 billion in the first quarter of 2005. Sang Lim recorded a full-year net loss of KRW6.497 billion in 2005, from a full-year profit of KRW270.22 million in 2004. Sang Lim Leather co., Ltd. -- http://www.sanglimleather.com/-- manufactures grain leather materials used in the production of furniture, car seats, apparel, and shoes. The Company also produces leather apparel. It exports its products mainly to other Asian countries. In April 2005, Korea Investors Service rated Sang Lim's unsecured bond at B+ since Korean leather manufacturers have lost competitiveness against imports from China and East Asia and the Company is exposed to unfavorable business environment such as increase in the price of rawhide and fluctuations in global economy and exchange rate. The KIS report also noted that Sang Lim lacks operating cash flow generation ability due to decline in profitability and increase in working capital requirement. Moreover, the Company lacks financial flexibility due to an excessive amount of debts that is excessive compared with the scale of its business. SHINHAN BANK: CEO Criticizes Post-Merger Operation Results ---------------------------------------------------------- Shinhan Bank President Shin Sang-hoon is taking action to carry out organizational reforms, Maeil Business reports. According to the report, Mr. Shin has criticized a slump in the bank's business and idleness that spread among employees since the introduction of an "integrated" Shinhan after its merger with Chohung Bank. Mr. Shin had said that integration work are well underway, but the major index showing the bank's business operation has turned out to be below expectations. "The aforesaid result cannot be solely attributed to fierce competition in the market. Such a difference in productivity between business offices cannot be excused in the circumstances that the same number of personnel and the same amount of support are equally provided to all offices," Mr. Shin contended. Mr. Shin also asserted that there are some employees who indulge themselves in an outdated mind-set, even after the newly organized bank was launched. He pointed out that this behavior is detrimental to the organization's unification and will not be tolerated. Headquartered in Taepyeong-no, Seoul, Shinhan Bank -- http://www.shinhan.com-- was established in 1982 with capital from Korean residents in Japan. It is Korea's fourth largest bank by assets -- second largest after merging with Chohung Bank -- holding a 9% share of deposits and 11% of loans. The bank has developed a strong franchise in the consumer as well as small and medium-sized enterprise segments. In September 2001, it formed a holding company, SFG, under which it and five other affiliates became stable companies. Since then, the Shinhan Financial Group has expanded its organizational structure to include 11 subsidiaries and is now Korea's second largest financial group. Its merger with Chohung Bank was finalized in April 2006. The Troubled Company Reporter - Asia Pacific reported on March 16, 2006, that Moody's Investors Service has raised Shinhan Bank's bank financial strength rating to D+ from D. The revised rating carries a stable outlook. The higher BFSR reflects the bank's sustained financial fundamentals upon its merger with affiliate Chohung Bank. Despite Moody's initial concerns, Chohung Bank's credit- worthiness under its parent, Shinhan Financial Group, has improved substantially. Therefore, the absorption of Chohung Bank into Shinhan Bank will not dilute the financial health of the combined bank as greatly anticipated at the time of the acquisition. Nonetheless, the financial fundamentals place Shinhan Bank at the low end of the rating band. SILVERSTAR CORP: Reports KRW612-Mil Net Income for 1st Quarter -------------------------------------------------------------- Silverstar Corp. posted a KRW612.09-million net income for the three months ended March 31, 2006. The result is 2,659.71% better than the previous corresponding period's net income of KRW22.18 million. Silverstar also posted a 14.01% increase in sales from KRW8.19 billion in the first quarter of 2005 to KRW9.34 billion in the first quarter of 2006. Silverstar recorded a full-year net loss of KRW2.29 billion in 2005. Silver Star Corp. -- http://www.silverstar2000.com/-- processes micro fibers and manufactures cleaning and bath products. The Company's products include towels, cleaning cloths for floor, optical lenses, and electronic devices and semiconductor wipers. In September 2004 - Korea Investors Service rated Silverstar Corporation's unsecured convertible bond at B+. KIS noted that Silverstar lacks brand recognition and marketing capability, as export through OEM or ODM contracts accounts for a large portion of its businesses. Sales of bath products decreased due to the depressed domestic economy, and the Company registered operating loss in 2004. The company needed external financing in recent years due to increased working capital requirement resulting from revenue growth and investment in an office building in Kurodong. The amount of Silverstar's debts is a little excessive for the size of its operation and cash flows. And due to lack of unencumbered assets, the company lacks access to alternative sources of capital. =============== M A L A Y S I A =============== FCW HOLDINGS: SPA Inked by Unit Contributes to Group's Earnings --------------------------------------------------------------- FCW Holdings Berhad's wholly owned subsidiary -- FCW Industries Sdn Bhd -- entered into a conditional sale and purchase agreement on June 22, 2006, to dispose of two pieces of leasehold land together with office building and warehouse in the Town of Petaling Jaya, District of Petaling, Selangor Darul Ehsan, to Scenicmart (M) Sdn Bhd for a total cash consideration of MYR6.2 million. FCW Industries' original investment in the Property, which was purchase in April 1994, was MYR4.758 million. The disposal consideration of MYR6.2 million was determined on a willing buyer-willing seller basis after taking into consideration the MYR5.5-million market value of the Property, based on the valuation on July 18, 2005, by Messrs. Rahim & Co Chartered Surveyors Sdn Bhd -- an independent firm of professional valuers. The disposal consideration represents premium of MYR700,000 or approximately 12.7% over the market value of the Property as determined by the Valuer. Meanwhile, an initial payment of MYR620,000 was received upon execution of the SPA whilst the balance of MYR5,580,000 is receivable within four months from the date of execution of the SPA with an option for extension for one month at an interest rate of 8% per annum calculated on a pro-rate basis on the Balance Purchase Price. The disposal will be deemed completed upon full settlement of the Balance Purchase. The Proposed Disposal is in line with FCW Group's exercise to streamline and rationalize its operations. With the current operations and staff levels, the existing premise is too big and attracts high maintenance and operating costs. The Proposed Disposal will enable the Group to realize costs savings from operating out of a smaller premise that is currently being looked into. The proceeds from the Disposal will be used as working capital. The Proposed Disposal is not expected to have a material effect on the consolidated earnings of FCW Group for financial year ending June 30, 2006. However, ensuing from the Proposed Disposal, the anticipated cost savings are expected to contribute positively to FCW Group's future earnings. Based on the net book value of MYR3,935,846 of the land and building as of December 31, 2005, the expected gain on disposal will be MYR2,264,154 excluding all potential stamp duty, legal fees and other incidental costs incurred. About FCW Holdings Berhad Headquartered in Selangor Darul Ehsan, Malaysia, FCW Holdings Berhad is principally involved in investment holding, providing management services and trading of telecommunications equipment. Its other activities include renting of communication access, selling and hiring of telecommunications equipment and electronic goods, providing paging services and turnkey contracting. FCW Holdings was, on May 5, 2006, classified under Bursa Malaysia Securities Berhad's Practice Note 17 category since its shareholders' equity has fallen well below the minimum requirement of 25%. As an affected listed issuer, the Company is required to submit a plan to regularize its financial condition. Bursa Malaysia Securities may suspend or delist FCW's shares should the Company fail to formulate a regularization plan. KRAMAT TIN: To Consider Scheme of Arrangement at Meeting -------------------------------------------------------- A Court-Convened Meeting will be held at the conference Room, 5th Floor, Block B, HP Towers, 12 Jalan Gelenggang, in Damasara Heights, Kuala Lumpur, on July 25, 2006, at 9:30 a.m. to consider and, if thought fit, approve a scheme of arrangement proposal between Kramat Tin Dreding Berhad and its shareholders. Furthernmore, an Extraoridnary General Meeting of Kramat Tin Dredging will be held on the same date, at the same venue, at 10.00 a.m. or immediately following the conclusion or adjournment of the CCM, whichever is later. About Kramat Tin Dredging Berhad Headquartered in Kuala Lumpur, Malaysia, Kramat Tin Dredging Berhad is currently in the process of identifying suitable business opportunities. The Company ceased its mining operations in 1988. In 2001, Bursa Malaysia Securities Berhad classified Kramat Tin as a Practice Note 10 company, given its inadequate level of operations. To avoid being de-listed, Kramat Tin, in 2004, entered into an arrangement to restructure its operational and financial position. Currently, Kramat Tin is seeking the approval of the regulatory authorities for its Proposed Restructuring Scheme. For the financial year ended December 31, 2005, with the scheme still pending completion, Kramat Tin registered a smaller loss of MYR524,000 compared with the MYR1.3-million net loss in 2004. LANKHORST BERHAD: Triggers Another Practice Note 17 Criteria ------------------------------------------------------------ Lankhorst Berhad has triggered another criteria pursuant to Practice Note 17 of Bursa Malaysia Securities Berhad's Listing Requirements. Based on the unaudited consolidated quarterly results of the Company for the financial year ended March 31, 2006, the Company's adjusted shareholders' equity on a consolidated basis is in deficit by MYR57.922 million. Thus, the Company has fallen into the Practice Note 17 category for the second time. The Troubled Company Reporter - Asia Pacific recounts that on April 24, 2006, the auditors of Lankhorts Berhad have expressed a disclaimer opinion in respect on Lankhorst Berhad's going concern in its Annual Audited Accounts for the financial year ended December 31, 2004. As such, Lankhorst was classified as an affected listed issuer and required to comply with the provisions of Practice Note 17/2005. As an affected listed issuer, Lankhorst is required to formulate and implement a plan to regularize its financial condition within a timeframe stipulated by Bursa Securities or other relevant authorities. In the event Lankhorst fails to comply with all the provisions of PN 17, Bursa Securities may take any action including but not limited to delisting proceedings against the Company. About Lankhorst Berhad Headquartered in Selangor, Malaysia, Lankhorst Berhad engages in civil and geotechnical engineering services, building construction, trading and application of geosynthetic materials. Other activities include property development and investment, water and wastewater treatment, oil and gas contracting and supply, quarry operations, railway track construction, mechanical and electrical construction, soil improvement services and trading of construction supply. The Company has been incurring a string of losses due to high operating costs and its units are facing winding up actions. It also defaulted on several loan facilities. As of December 31, 2005, the Company's balance sheet showed MYR167,439,000 in total current assets, MYR171,454,000 in total current liabilities, and MYR1,781,000 in total stockholders' equity. The Company has a deficit of MYR4,015,000. On April 24, 2006, Lankhorst was classified as an affected listed issuer and is required to comply with the provisions of the Bourse's Practice Note 17/2005 category. In the event Lankhorst fails to comply with all the provisions of PN 17/2005, Bursa Securities may take any action against the Company including but not limited to delisting proceedings against Lankhorst. The Company is currently under the protection of a Restraining Order pursuant to Section 176 of the Companies Act, 1965 and currently formulating a debt and capital restructuring scheme to improve the Company's financial position to be announced in due course. MALAYSIA AIRLINES: To Decide on Buyer and Price of KL Building -------------------------------------------------------------- The sale of a Kuala Lumpur building owned by Malaysia Airlines has drawn the attention of several parties, The Business Times reveals. In fact, the carrier is now in the final stages of deciding the actual buyer, as well as the price of the property, The Times says. An official announcement will be made soon. According to Zee News, the sale of the building is part of Malaysia Airlines' business turnaround plan, which is aimed initially at boosting cashflow through the disposal of non-core assets. In this regard, CB Richard Ellis was chosen to assist Malaysia Airlines in a major restructure of the carrier's property portfolio, the Troubled Company Reporter - Asia Pacific recounts. Malaysia Airlines' non-core portfolio consists of mixed residential and office buildings in Australia, China, Hong Kong, Malaysia, the Philippines, Singapore, Thailand, the United Kingdom and Holland, totaling a gross floor area of 924,348 square feet in 26 buildings. Meanwhile, Malaysia Airlines clarified an earlier report by the Business Times that the government investment arm Khazanah Nasional Bhd is facilitating in the asset sale plan. In a press statement, Malaysia Airlines said that Khazanah Nasional is not involved in the carrier's non-core assets divestment exercise. 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. MALAYSIA PACKAGING: Posts 31st Annual General Meeting Results ------------------------------------------------------------- The 31st Annual General Meeting of Malaysia Packaging Industry Berhad was held on June 23, 2006, at 6 1/2 Mile, Simpang, Salak South Baru, LOt 3, in Jalan Kuchai Lama, Kuala Lumpur. During the meeting, the Company's shareholders: -- received and adopted the Report of Directors and the audited Financial Statements for the Financial Year Ended December 31, 2005, and the Report of the Auditors; -- approved the payment of directors' fees for the financial year ended December 31, 2005; -- re-elected as directors * Datuk Sulaiman Bin Daud; * Shunichi Komatsu; * Manabu Watanabe; * Ryuichi Ozaki; and * Ho Chee Siong. -- reappointed Ernst & Yound as auditors for the ensuing year and authorized the Directors to fix the auditors' remuneration; -- authorized the Company to renew the Shareholders' Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature, which are necessary in the ordinary course of business and for the Company's day to day operations. About Malaysia Packaging Industry Berhad Headquartered in Malaysia, Malaysia Packaging Industry Berhad -- http://www.maypak.com/-- is principally engaged in the manufacture of printed and laminated flexible light packaging materials such as vacuum packing, liquid packaging, sachets, snack foods, retort pouches, doypacks and capseals. The Company has been making net losses since 2003, as it is unable to increase revenue due to cutthroat competition in the market. For the first time since its listing in 1990, the Company was not able to declare a dividend from 2004 up to the present. For the first quarter ended March 31, 2006, the Company registered a pre-tax loss of MYR618,000 for the quarter under review as compared to a pre-tax loss of MYR2,132,000 in the immediate preceding quarter. High loss incurred in the last quarter was mainly due to provision for doubtful debts. MENTIGA CORPORATION: Meets Securities Commission's Requirement -------------------------------------------------------------- Mentiga Corporation Berhad, on June 16, 2006, received documents of title for plantations on Indonesia. As such, Mentiga has complied with the condition imposed by the Securities Commission, and will not be required to meet further requirements for approval of a waiver application. The Securities Commission, on June 16, 2006, approved Mentiga Corporation's application for a waiver from a condition imposed by the Commission in relation to the Company's implementation of its restructuring exercises. According to the Troubled Company Reporter - Asia Pacific, the Condition requires Mentiga to obtain a separate document of title Hak Guna Usaha for the oil palm plantations measuring approximately 1,947.12 hectares situation in Indonesia for which documents of the title have yet to be issued. This Condition is expected to be met prior to the implementation of the proposed disposal by Mentiga's subsidiary Selat Bersatu Sdn Bhd of 18,900 ordinary shares of IDR1,000,000 each in PT Rebinmas Jaya to Delloyd Plantation Sdn Bhd and Taipan Hectes Sdn Bhd for a cash consideration of MYR61,200,000. The Waiver the Securities Commission granted to Mentiga was initially subject to several conditions, which the Company can now bypass. About Mentiga Corporation Berhad Headquartered in Pahang Darul Makmur, Malaysia, Mentiga Corporation Berhad is engaged in the trading of timber products, construction and property development and management and advisory services to oil palm plantations. In 2003, the Company proposed to undertake a debt-restructuring program to settle its debt with creditors. The Company has been suffering losses in the past years and is currently working to avert a possible delisting from the Official List of Bursa Malaysia Securities. The Group has submitted a revised comprehensive proposal to the Securities Commission on March 16, 2005, to regularize its financial condition and to restore the Group's shareholders' fund from being in a deficit position in order to remove Mentiga from being classified as a Practice Note 4 company. As of March 31, 2006, the Company's balance sheet showed poor liquidity with MYR16,064,000 in total current assets available to pay MYR142,477,000 in total current liabilities coming due within the next 12 months. MERCES HOLDINGS: Provides Solvency Declaration ---------------------------------------------- Merces Holdings Berhad declared that it is solvent and is able to settle all its debts in full within a 12-month period. However, the Company disclosed that there is no change in the status of default payment of interests and principal sum due to Southern Bank Berhad since the date of its last announcement on May 23, 2006. Southern Bank had, on March 11, 2003, filed claims against Merces Holdings seeking payment of MYR3,684,441 and MYR5,168,496, being the recalled amounts due pursuant to a revolving credit of MYR3,500,000 and an overdraft of MYR5,000,000 granted to Merces on May 10, 2001. Southern Bank obtained summary judgment on December 3, 2003, ordering Merces to pay the amounts due to the lender. Merces, however, was unable to settle its financial obligation to Southern Bank because of its strained liquidity. About Merces Holdings Berhad Merces Holdings Berhad's principal activities are the provision of property development and building construction works. The Company's other activity include investment holding. Operations of the Group are predominantly carried out in Malaysia. Merces Holdings has defaulted on several loan facilities and had faced winding-up petitions due to unsettled financial obligations. As of March 31, 2006, the Company's balance sheet showed MYR106,755,000 in total assets and MYR81,088,000 in total liabilities. The March 31 balance sheet also showed strained liquidity with MYR79,550,000 in total current assets available to pay MYR81,088,000 in total current liabilities coming due within the next 12 months. METROPLEX BERHAD: Board Endorses Proposed Property Disposal ----------------------------------------------------------- Metroplex Berhad's board of directors, on June 22, 2006, approved the proposed disposal by Metroplex Holdings -- a wholly owned subsidiary of the Company -- of a shopping complex property. The Property refers to a shopping complex known as "The Mall" and an office building together with 1,323 car parking bays erected on part of the land held under No. Hakmilik 10012, No. Lot 38, Seksyen 51, Bandar Kuala Lumpur, in Daerah Kuala Lumpur, Negeri Wilayah Perkekutuan. The Troubled Company Reporter - Asia Pacific reported that on June 16, 2006, the Foreign Investment Committee authorized Lembaga Kumpulan Wand Simpanan Pekerja to acquire the Property for a total cash consideration of MYR438,330,000. The Proposed Disposal is now pending approval from the Kuala Lumpur High Court and Metroplex shareholders. 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. OLYMPIA INDUSTRIES: Wholly Owned Unit Strikes Tenancy Deal ---------------------------------------------------------- Olympia Industries Berhad's wholly owned subsidiary -- KL Landmark Sdn Bhd -- entered on June 23, 2006, into a Tenancy Agreement with City Properties Sdn Bhd. The Agreement is in relation to the tenancy of a retail unit measuring 6,530 square feet at Lot No. L3-1A, Level 3, situated within avenue K Project located at HSD 85904, PT 44 Seksyen 43, Town and District of Kuala Lumpur and State of Wilayah Persekutuan called "avenue K" for a period of three years subject to the prevailing market rate or such quantum to be determined by City Properties. The tenancy of the premises known as K Residence Sales Office and Showroom is necessary for KL Landmark to promote and market the sale of condominium and service apartments units of K Residence. The transaction is not subject to the approval of the shareholders of Olympia Industries. However, Olympia intends to include the transaction as one of the recurrent related party transactions and will obtain a shareholders' mandate for RRPT at the forthcoming annual general meeting scheduled in end November 2006 or early December 2006. Olympia's board of directors believes that the Agreement is in the best interests of the Company and is not to the detriment of its minority shareholders. About City Properties Sdn Bhd City Properties Sdn Bhd was incorporated in Malaysia on October 31, 1973. It has an authorized share capital of MYR300,000,000 comprising 300,000,000 ordinary shares of MYR1.00 each of which 110,000,000 ordinary shares of MYR1.00 each have been fully issued and paid-up. City Properties is an investment holding company principally engaged in property development. It is the registered proprietor of avenue K. About KL Landmark Sdn Bhd KL Landmark was incorporated in Malaysia on July 15, 2003. It has an authorized share capital of MYR500,000 divided into 500,000 ordinary shares of MYR1 each of which 250,000 ordinary shares of MYR1 have been fully issued and paid-up. KL Landmark is a property development company and has earlier been granted a development right by City Properties pursuant to a joint development agreement to construct twotower blocks known as K Residence, which is directly above avenue K Project in Jalan Ampang, Kuala Lumpur. The tenancy of the premises known as K Residence Sales Office and Showroom is necessary for KL Landmark to promote and market the sale of condominium and service apartments units of K Residence. About Olympia Industries Berhad Headquartered in Kuala Lumpur, Malaysia, Olympia Industries Berhad organizing and managing numbers forecast pools and public lotteries, operation of recreation clubs, investment holding and property development. Other activities include trading in securities, paint spraying of aluminium, other metal products and architectural products, letting of properties, maintaining and operating internet based transaction facilities and services, food and beverage business, events organizer and project management, travel and tours agency, servicing of oil and gas pipeline, asset management, money lending and stockbroking. Operations are carried out in Malaysia, Papua New Guinea and Singapore. The Company has incurred losses in the past and has also been fined many times by Bursa Malaysia Securities for failing to maintain appropriate standards of corporate responsibility and accountability to the investing public. The Company has unveiled a proposed restructuring scheme in July 2001, which include capital reductions, disposals, debt novation and debt restructuring. As of March 31, 2006, the Company's balance sheet showed MYR991,747,000 in total assets and MYR1,971,727,000 in total liabilities, resulting in a shareholders' equity deficit of MYR979,980,000. The balance sheet also showed strained liquidity with MYR353,224,000 in total current assets available to pay MYR1,897,098,000 in total current liabilities coming due within the next 12 months. PARK MAY: Shareholders Pass All AGM Resolutions ----------------------------------------------- Park May Berhad's shareholders had approved all resolutions of the Company's 33rd Annual General Meeting held on June 22, 2006. During the meeting, members: -- received and adopted the Audited Financial Statements for the year ended December 31, 2005, and the Reports of the directors and auditors; -- re-elected YBhg Dato' Mohd Nadzmi Mohd Salleh who retires in accordance with Article 80 of the Company's Article of Association; -- approved the Directors' fees of MYR226,000 for the year ended December 31, 2005; -- reappointed Messrs Ernst & Young as auditor and to authorize the Directors to fix its remuneration; and -- renewed the shareholders' mandate authorizing the Company and its subsidiaries to enter into recurrent related party transactions of a revenue or trading nature, which are necessary for the day-to-day operations of Park May Berhad Group. About Park May Berhad Headquartered in Kuala Lumpur, Malaysia, Park May Berhad -- http://www.parkmayberhad.com/-- provides public bus transportation in Peninsular Malaysia, categorized as stage bus and express bus. Its other activities include operation and construction of light rail transit system, trading and property holding, and investment holding and managing operation. The Company has defaulted in its payment of monthly interest of MYR1.1 million on its MYR135.6 million Combined and Converted Short Term Loan Facility due on April8, 1999. On December 30, 1999, the Corporate Debt Restructuring Committee successfully assisted Park May Berhad to finalize a debt restructuring scheme with its lenders and main suppliers involving debt outstanding as at even date of MYR146 million. On April 17, 2000, the Securities Commission approved Park May's Proposals. On February 28, 2003, Park May registered a deficit in shareholders' equity on a consolidated basis of MYR23.17 million, making it an affected listed issuer under Bursa Malaysia Securities' Practice Note 4 category. As an Affected Listed Issuer, the Company is required to regularize its financial condition. As of March 31, 2006, the Company's balance sheet showed total assets of MYR 38.9 million and total liabilities of MYR92.1 million. It also showed stained liquidity with MYR13,973,000 of total current assets available to pay total current liabilities of MYR87,038,000 in the next 12 months. PILECON ENGINEERING: All AGM Resolutions Passed ----------------------------------------------- At the 29th Annual General Meeting of Pilecon Engineering Berhad on June 23, 2006, shareholders duly approved all resolutions contained in the Notice of Meeting dated June 1, 2006. During the meeting, the Company's shareholders: -- received the Company's Audited Financial Statements for the year ended December 31, 2005, together with the reports of the Company's directors and auditors; -- approved the payment of directors' fees of MYR20,000 for the fiscal year ended December 31, 2005; -- re-elected Yoon Kwok Ching retiring by rotation pursuant to Article 101 of the Company's Articles of Association; -- considered and approved the re-appointment of retiring director, Dato Haji Ahmad bin Abdullah, to hold office until the conclusion of the next Annual General Meeting; -- re-appointed Peter I.M. Chiend & Company as the Company's auditors for the financial year ending December 31, 2006, and to authorize the directors to fix the Auditors' remuneration; and -- authorized the directors to issue and allot ordinary shares from the unissued capital of the Company provided always that the aggregate number of shares to be issued pursuant to the Resolution will not exceed 10% of the issued and paid-up capital of the Company for the time being. 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. 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. PROTON HOLDINGS: Targets Sale of 14,000 Satria Neos This Year ------------------------------------------------------------- Proton Holdings aims to dispose of 14,000 of its new Satria Neo cars before the year ends, Bernama News reports. Proton managing director Syed Zainal Abidin Mohamed Tahir is confident that the newly launched model will attract more customers since the car is "actually safer, stronger and handles a lot better than many other Asian cars currently available in this segment and on par with its European competitors." Furthermore, Mr. Mohamed Tahir told Bernama that the new model is expected to boost Proton's dwindling market share. The Malaysian carmaker has been losing its market share to stronger rivals like Toyota Motor Corporation, Business Times says. In order to keep pace with tough competitors, Proton needs an overseas partner to provide the technology and access to overseas market. The Troubled Company Reporter - Asia Pacific recounts that Proton lost 9% of its local market share in the three months ended March 31, 2006, from a year ago, as more buyers turned to overseas brands after the Government cut import taxes. According to the TCR-AP, the Government cut import taxes for vehicles assembled in South-East Asia to 5% from 15% in March, removing more than two decades of tariff protection for Proton. Although Proton was able to drop its prices by 7%, it could not compete with Toyota's 11% price cut. Proton's sales in the three months to March 31, 2006, slumped 25%. Available in five colors, the Satria Neo comes in 1.3-litre and 1.6-litre versions. Powered by the Proton Campro engine with manual or automatic transmission options, it is priced between MYR43,500 and MYR54,500, Bernama says. The Satria Neo is the latest hatchback from Proton, which has introduced a new model every year since 1993. Meanwhile, Deputy International Trade and Industry Minister Datuk Ahmad Husni Hanadzlah said that Proton will be competitive again when it starts producing more new models, The Star relates. According to the report, Proton's management planned to introduce more models and on a regular basis and only launch new models after doing a thorough survey of market needs. Mr. Husni added that Proton would be getting market feedback from surveys, especially those on customer preference, before introducing a model commercially. The challenge faced by Proton is actually in the overseas market, not domestically. Proton sells 200,000 cars a year against the industry average of between 400,000 and 500,000 units, The Star adds. About Proton Holdings Headquartered in Selangor Darul Ehsan, Malaysia, Perusahaan Otomobil Nasional Berhad or Proton Holdings Berhad -- http://www.proton-edar.com.my/-- is engaged in manufacturing, assembling, trading and provision of engineering and other services in respect of motor vehicles and related products. Its other activities include property development, trading of steel and related products, engine and technologies research, development of automotive related technologies, investment holding, importation and distribution of motor vehicles, related spare parts and accessories, holds intellectual property, provides engineering consultancy, operates single make race series and carries out specific engineering contracts. The Group's operations are carried out in Malaysia, England, Australia, Socialist Republic of Vietnam and the United States of America. Proton was reported to be among Malaysia's worst-performing companies in 2005, after competition from foreign carmakers and a lack of new models lost the firm local market share and subsequently led it into a loss. It has since brought in a new chief, sold its loss-making MV Agusta motorbike firm and pledged to find a new technology partner. The Company has been under increasing pressure, with its share of domestic sales falling to 44% from 75% over the past decade. The Troubled Company Reporter - Asia Pacific reported on May 4, 2006, that Proton was expected to finalize a recovery plan and seal an alliance with a strategic partner by the end of 2006. SELANGOR DREDGING: Unveils Litigation Developments -------------------------------------------------- Selangor Dredging Berhad has provided updates in relation to the suit against the Company by a former tenant, Mutiara Metropolis Sdn Bhd. On June 13, 1996, a writ of summons was filed against Selangor Dredging by a former tenant -- Mutiara Metropolis Sdn Bhd -- seeking damages totaling MYR10 million plus cost for alleged wrongful eviction and termination of tenancy. On July 19, 1996, the Company, through its solicitors, filed an application in the High Court to strike out the claim on the basis that the eviction was made in accordance with the law. On July 30, 2004, the Company was informed by its solicitors that the High Court had allowed the claim by MMSB against the Company. The Company had been advised by its solicitors that there is uncertainty as to the quantum of damages, if any, awarded to MMSB. The Company's solicitors, on July 29, 2004, wrote to the High Court for further clarification as to the issue of damages, which was awarded, if any. The High Court found that the Writ of Distress was not valid in light of the fact that winding-up proceedings had commenced against MMSB. The High Court therefore granted MMSB a declaration that the distress was wrongly carried out. As the distress was not valid, consequently the writ of possession granted by the Session Court was also not valid. No other orders were entered against Selangor Dredging. The judge has clarified that the ruling was not to the effect that Selangor should pay MMSB any sum of money by way of damages. It would be up to MMSB now to assess its damages, if any. Should MMSB elect to do so, the assessment proceedings would take place before the Registrar of the High Court. The judge also ordered that SDB would now have to proceed with the trial of its counterclaim. On October 6, 2005, the Registrar of High Court had awarded a total sum of MYR2,315,002 to the Plaintiff together with interest at 8% running from June 13, 1996, being the date when the writ was filed until the date Selangor pays the sum to the Plaintiff. The Registrar also awarded costs of the assessment proceedings to the Plaintiff. The Company has been advised by its solicitors and has on even date instructed its solicitors to apply for a stay of execution of the Registrar's decision and to appeal against the Registrar's decision to the judge of the High Court. On November 12, 2005, the Company deposited a total sum of MYR4,060,957 into an interest-bearing, fixed deposit account in the joint names of the solicitors for both the Plaintiff and the Company further to the Company's successful application for a stay of execution of the Registrar's award. The Judge High Court of Malaysia on June 22, 2006, upheld the Registrar of the High Court's October 6, 2005. The Judge also awarded costs of the Company's appeal to the Plaintiff. The Company has been advised by its solicitors to appeal the Judge's decision to the Court of Appeal. The Company has therefore applied on June 22, 2006, to the High Court for a stay of execution pending the hearing and decision of the Company's appeal. About Selangor Dredging Berhad Headquarted in Kuala Lumpur, Malaysia, Selangor Dredging Berhad -- http://www.sdb.com.my/-- is engaged in the distribution of hardware and building materials. Other activities include property investment and development, operation of hotel and car park and investment holding. The Company was hit hard by the 1997 Asian financial crisis. After the crisis, the Company began to implement exercises to curb losses and improve its bottom line. The Company became involved in many businesses, some unprofitable and others, such as its tin-mining concern with the high cost of extraction and low commodity price, sunset industries with no future. The Company began restructuring its business and decided its core business should be property development. The other businesses and subsidiaries were sold or wound down. ===================== P H I L I P P I N E S ===================== NATIONAL POWER: PSALM Seeks Approval of Asset Transfer ------------------------------------------------------ The Power Sector Assets & Liabilities Management Corp., which controls the assets of state-owned National Power Corp., has asked the World Bank to approve the transfer of the Company's assets to them, the Philippine Star relates. According to an ABS-CBN News report, PSALM President Nieves Osorio said that talks with the Bank are going smoothly than before, and they expect to secure universal consent for the transfer by year's end, which would facilitate the transfer of all of Napocor's assets and liabilities to PSALM. PSALM also has to seek approval for the asset transfer from another creditor, the Japan Bank for International Cooperation, the Star adds. Napocor creditor Asian Development Bank had already approved the transfer. The 2001 Electric Power Industry Reform Act gave PSALM the authority to manage Napocor's funds and privatize its assets, but it needed prior creditor approval before finalizing an asset sale. With the universal consent, PSALM can speed up the privatization of the Company's assets. The Manila Times relates that, according to industry sources, one concern is who would assume the liabilities and obligations of a power plant once it is sold -- whether the responsibility falls on the Government or on the plant buyer. PSALM must come up with a policy regarding this issue to secure universal consent from creditors. In the meantime, PSALM will continue the sale of these Napocor assets, which do not need a supply contract: -- 100-megawatt Pantabangan/12-MW Masiway hydro electric power plants; -- 360-MW Magat hydro plant; and -- 275-MW Tiwi/426-MW Makban geothermal power facilities. About National Power Headquartered in Quezon City, Philippines, National Power Corp. -- http://www.napocor.gov.ph/-- is a state-owned utility that builds and operates nuclear, hydroelectric, thermal, and alternative power generating facilities. It works with independent producers under a build-operate-transfer program. With a generating capacity of more than 11,500 megawatts, National Power sells electricity to distributors and industrial companies. National Power first incurred losses in 1998 after the Asian financial crisis and expensive contract terms from independent power producers, and reported a PHP29.9 billion loss in 2004, after a PHP117-billion net loss in 2003. The Troubled Company Reporter - Asia Pacific reported on April 5, 2006, that National Power posted a PHP16 million profit in 2005, the first time in seven years, on the Energy Regulation Commission's approval of a rate increase, the use of an improved fuel mix and better fuel prices. A subsequent report by the TCR-AP states that in the first review of National Power's portfolio, it was projected that the Philippine Government would have to absorb some PHP600 million worth of debt. The Government initially absorbed Napocor's PHP200-billion debt, which was incurred when the state firm adopted international accounting standards, forcing it to report its foreign exchange losses. The Department of Finance is studying the legality of the Government's absorption of the debt. To comply with the privatization bill approved by the Philippine Congress, the Company started selling off its generation assets to help pay for the utility's total estimated debt. It also separated its transmission operations into a new subsidiary, the National Transmission Corporation. Napocor's remaining debt could still be absorbed by the Government, but the Development Budget Coordinating Committee wants to see the Company improve operations and sell off non- profitable assets in order to reduce its debt, instead of relying on government aid to do so. PHILODRILL CORP: To Concentrate on Oil Projects ----------------------------------------------- The Philodrill Corp. is looking to dispose of its 40% stake in investment firm Penta Capital Investment Corp., so that it can focus its energies on its core oil development business, BusinessWorld states. Philodrill President Alfredo C. Ramos told reporters that due to the rise in global fuel prices, the Company has decided to concentrate on oil exploration, which is its main line. And since fuel is expensive, the Company is considering selling non- core assets in order to finance exploration projects. According to BusinessWorld, Philodrill had sold its 50 million shares in real estate development firm Edsa Properties Holdings, Inc., to property developer Anglo Philippine Holdings Corp. at PHP1 per share on June 15, 2006. The Company planned to sell its remaining 57.07 million shares in Edsa Properties to APH Corp. on June 23, 2006. Mr. Ramos said that if the Company would push through with the plan to sell its stake in Penta Capital, the proceeds would go to the exploration and oil production at its Octon field, in Northern Palawan. About The Philodrill Corp. The Philodrill Corporation was registered with the Philippine Securities and Exchange Commission on June 26, 1969, as an oil exploration and production company. In 1989, realizing the need to balance the risk associated with its petroleum activities, the Company changed its primary purpose to that of a diversified holding company while retaining petroleum and mineral exploration and development as one of its secondary purposes. The Company, which is operating in only one business segment, has three associates with one engaged in real estate and the others in financial services. The Company and its associates have no geographical segments as they were incorporated and are operating within the Philippines. Going Concern Doubt After auditing Philodrill's 2005 annual financial statements, Sycip, Gorres and Velayo & Co., raised doubt on the Company's ability to continue as a going concern, as its current liabilities exceed current assets by PHP419.2 million as of Dec. 31, 2005. The Company also had difficulty meeting its obligations to creditor banks. Debt Servicing In early 2006, Philodrill was able to redenominate its loans with Rizal Commercial Banking Corp. amounting to PHP28.25 million, from U.S. dollars to Philippine Pesos. On December 27, 2002, the Company and Metropolitan Bank and Trust Company entered into an agreement to refinance a maturing short-term loan amounting to PHP60 million. As approved by MBTC's Executive Committee, the short-term loan was converted into a five-year loan, inclusive of a six-month grace period on principal repayments. The principal will be paid in 18 equal quarterly installments of PHP3.3 million commencing at the end of the 9th month from the drawdown date. The term loan is fully secured by certain properties of a related company. Interest will be at the prevailing lending rate. MBTC waived the commitment fees and pre-payment penalties on the loan. In 2003, the Company was unable to pay the two principal installments due on September 26, 2003, and December 26, 2003, amounting to PHP6.6 million and has difficulty paying interests accruing on the principal loan balance. The Company is continuously negotiating with the other creditor bank for the restructuring of its loans. ================= S I N G A P O R E ================= LINDETEVES-JACOBERG: ATB Makes EUR5.6-Million Advance Payment ------------------------------------------------------------- ATB Austria Antriebstechnik AG has entered into a rights issue advance agreement on June 21, 2006, with Lindeteves-Jacoberg pursuant to the Company's renounceable rights issue undertaking. Under the Agreement, ATB will disburse up to EUR5,600,000 to the Company in respect of prepayment subscription amount payable by ATB for the subscription of its Rights Shares pursuant to the undertaking dated May 16, 2006. The Advance -- which will be utilized to boost Lindeteves' working capital -- is subject to the condition that the amount will be regarded as full payment of the Rights Shares subscribed by ATB. The Advance will be free of interest subject to the occurrence of these conditions, wherein interest will be payable: -- if the Rights Issue is not completed by September 30, 2006; and -- the Advance disbursed exceeds the Subscription Price payable by ATB which will result in any part of the Advance remaining outstanding on September 30, 2006. As reported by the Troubled Company Reporter - Asia Pacific, Lindeteves-Jacoberg proposed on May 16, 2006, to undertake a renounceable rights issue of up to 248,056,294 new ordinary shares in the capital of the Company at an issue price of SGD0.12 for each Rights Share, on the basis of one Rights Share for every two existing ordinary shares held as at a time and date to be determined by the Directors for the purposes of determining shareholders' entitlements under the Rights Issue, fractional entitlements to be disregarded. The Rights Issue is currently not underwritten and the Company is in discussions with potential underwriters for this purpose. ATB holds 253,017,421 Shares representing approximately 51.0 % of the total issued share capital of the Company as of the date of the announcement of the Rights Issue, had irrevocably undertaken to subscribe for all its Rights Shares entitlements under the Rights Issue. About Lindeteves-Jacoberg Limited Lindeteves-Jacoberg Limited - http://www.linjacob.com/-- was incorporated in Singapore on December 11, 1947 as part of a Dutch international trading group. Its principal activities consist of investment holding, provision of warehousing and rental services and acting as specialist mechanical and electrical contractor for environmental engineering projects. The Company is undergoing a debt restructuring exercise by way of a Scheme of Arrangement with its creditors. MOLDRUP SYSTEMS: Court to Hear Wind-Up Petition on June 30 ---------------------------------------------------------- Justice V K Rajah of the High Court of the Republic of Singapore will hear a wind-up application against Moldrup Systems Pte Limited on June 30, 2006, at 10:00 a.m. The petition was filed through solicitors CM Hoe Partnership. S LIEN: Creditors Must Prove Debts by July 24 --------------------------------------------- Liquidators Chia Soo Hien and Ng Geok Mui will be receiving proofs of claim from creditors of S Lien Hospitality (Consultancy) Services Pte Limited until July 24, 2006. Failure to comply with the requirement will exclude a creditor from sharing in the Company's dividend distribution. Contact: Chia Soo Hien Ng Geok Mui Liquidators C/O BDO Raffles 5 Shenton Way #07-01 UIC Buiding Singapore 068808 SOH KIM: Court to Hear Wind-Up Petition on July 7 ------------------------------------------------- Soh Eng Beng, on June 6, 2006, filed an application for the wind-up of Soh Kim Poo Trading & Transport Pte Limited. The Petition will be heard before the High Court of the Republic of Singapore on June 7, 2006, at 10:00 a.m. Contact: Wong Tan & Molly Lim LLC Solicitors for Soh Eng Beng 80 Robinson Road, #17-02 Singapore 068898 TUTHILL SINGAPORE: Creditors' Proofs of Claim Due on July 23 ------------------------------------------------------------ The creditors of Tuthill Singapore Pte Limited are required to file their proofs of claim by July 23, 2006. Failure to comply with the requirement will exclude a creditor from sharing in any distribution the Company will make. Contact: Lau Chin Huat Liquidators c/o 6 Shenton Way #32-00 DBS Building Tower Two Singapore 068809 * Singapore's Manufacturing Growth Well Below Target ---------------------------------------------------- Singapore's factory output rose 2.5% in May 2006 from April following a steep decline in the past three months, Reuters reports. The increase, however, was slower than the expected 7.5% rise in May, following a revised 11.6% decline in April, the report says. The volatile index, which has become increasingly difficult to predict due to big swings in drug production, has risen only one other time this year, when output rose by 18.2% in February, Reuters says. On an annual basis, factory output rose 10.6% in May from the previous year, below a market forecast of a 14.1% increase, Reuters relates citing the Economic Development Board Manufacturing accounts for about a quarter of Singapore's SGD118-billion trade-dependent economy. Excluding the biomedical sector, manufacturing output rose 12.7% from a year before, which many economists say gives a better indication of fundamentals, Reuters adds. =============== T H A I L A N D =============== DAIDOMON GROUP: Posts THB133.18-Million Net Loss in 1st Quarter --------------------------------------------------------------- Daidomon Group Public Company Ltd submitted to the Stock Exchange of Thailand its first quarter report ending March 31, 2005. The Company posted a net loss of THB133.18 million for the first quarter 2006, where THB26.31 million came from operational loss. The operational loss was largely due to the decline in revenue for the first quarter ending March 31, 2005. Net revenue reflected a decline of THB38.43 million, or 34.82% after comparing the figure from the same period in 2004. Moreover, Daidomon Group's balance sheet for the period ended March 31, 2005, showed THB378.73 million in total assets, compared with THB842.90 million in total liabilities, resulting in a capital deficit of THB464.17 million. The Company's balance sheet also showed strained liquidity with THB10.86 million in total current assets available to pay THB785.59 million in total current liabilities coming due within the next 12 months. * * * Headquartered in Bangkok, Thailand, Daidomon Group Public Co. Limited -- http://www.daidomon.co.th/-- operates barbecue and Japanese food restaurants under the brand name of Daidomon. The Group's products include barbecue, dessert and drinks, and bottled sauce. The Company is currently undergoing rehabilitation. The Central Bankruptcy Court of Thailand, on September 30, 2005, ordered for the rehabilitation of Daidomon Group's business and appointed the Company to act as planner. Daidomon Groups submitted a business rehabilitation plan to the official receiver on April 18, 2006, which includes a debt repayment scheme for creditors. The official receiver set June 9, 2006, as the date for the creditors' meeting on the Company's business rehabilitation plan. MDX PUBLIC: Result of Shareholders Extraordinary Meeting -------------------------------------------------------- Shareholders of MDX Public Company Limited convened for their extraordinary meeting on June 22, 2006, at 10:00 a.m. at Abdulrahim Room, Young Women's Christian Association, in Bangkok. During the meeting, shareholders: -- acknowledged the report on the Company's Operations. -- approved to fix the number of the Company's directors to a total number of eight persons. Also, during the meeting, shareholders unanimously approved to re-elect Pracha Hetrakul and ACM.Janya Sukontasap, directors who previously retired by rotation, to be the Company's directors for another term. Four new directors were also appointed during the meeting. 1. Swasd Puipunthavong (independent); 2. Kamolsak Phantusane (independent); 3. Pimchai Srisawadi (independent); and 4. Prapa Tienkasem. The Shareholders also approved to amend the Articles of Association of the Company in compliance with the Stock Exchange of Thailand's requirement. The Article states that: "Where the Company or any of its subsidiaries enters into a connected transaction, or any transaction relating to acquisition or disposition of material assets of the Company or its subsidiaries, as defined in the notifications of the Stock Exchange of Thailand governing the connected transactions of listed companies or the acquisition and disposition of material assets of listed companies, as the case may be, the Company shall also comply with such rules and procedures as stipulated by such notifications." * * * M.D.X. Public Company Limited and its subsidiaries develop industrial estates for plants and factories. The Group develops, provides and manages infrastructure as well as all necessary facilities and utilities such as power, water, wastewater treatment, telecommunications, and solid waste disposal systems. The Company is classified under the REHABCO, or Companies Under Rehabilitation, sector. The Company has been operating with a capital deficit for years, with a THB8.85 billion deficit in 2002 as the highest in the last five years. In that same year, the Company posted a THB1.59 billion net loss. * BOND PRICING: For the Week 26 June to 30 June 2006 ---------------------------------------------------- Issuer Coupon Maturity Price ------ ------ -------- ----- AUSTRALIA --------- Ainsworth Game 8.000% 12/31/09 1 Amcom Telecommunications Ltd 10.000% 10/28/07 2 APN News & Media Ltd 7.250% 10/31/08 5 Arrow Energy NL 10.000% 03/31/08 1 A&R Whitcoulls Group 9.500% 12/15/10 8 Babcock & Brown Pty Ltd 8.500% 12/31/49 9 Becton Property Group 9.500% 06/30/10 1 BIL Finance Ltd 9.250% 10/15/06 9 BIL Finance Ltd 8.000% 10/15/07 8 Capital Properties NZ Ltd 8.500% 04/15/07 8 Capital Properties NZ Ltd 8.500% 04/15/09 8 Capital Properties NZ Ltd 8.000% 04/15/10 8 Cardno Limited 9.000% 06/30/08 4 CBH Resources 9.500% 12/16/09 1 Chrome Corporation Ltd 10.000% 02/28/08 1 Clean Seas Tuna Ltd 9.000% 09/30/08 1 Djerriwarrh Investments Ltd 6.500% 09/30/09 4 EBet Limited 10.000% 11/29/06 23 Evans & Tate Ltd 8.250% 10/29/07 1 Fletcher Building Ltd 7.550% 03/15/11 7 Fletcher Building Ltd 7.800% 03/15/09 8 Fletcher Building Ltd 7.900% 10/31/06 8 Fletcher Building Ltd 8.300% 10/31/06 8 Fletcher Building Ltd 8.600% 03/15/08 8 Fletcher Building Ltd 8.850% 03/15/10 7 Fernz Corp Ltd 8.560% 10/15/06 9 Futuris Corporation Ltd 7.000% 12/31/07 2 Hy-Fi Securities Ltd 7.000% 08/15/08 8 Hy-Fi Securities Ltd 8.750% 08/15/08 10 Hutchison Telecoms Australia 5.500% 07/12/07 1 IMF Australia Ltd 11.500% 06/30/10 1 Infrastructure & Utilities NZ Ltd 8.500% 09/15/13 8 Infratil Ltd 8.500% 11/15/15 8 Kagara Zinc Ltd 9.750% 05/06/07 4 Kiwi Income Properties Ltd 8.000% 06/30/10 1 Minerals Corporation Ltd 10.500% 09/30/07 1 Nuplex Industries Ltd 9.300% 09/15/07 8 Pacific Print Group Ltd 10.250% 10/11/09 10 Primelife Corporation 9.500% 12/08/06 1 Primelife Corporation 10.000% 01/31/08 1 Salomon SB Australia 4.250% 02/01/09 8 Sapphire Securities Ltd 7.410% 09/20/35 7 Sapphire Securities Ltd 9.160% 09/20/35 9 Silver Chef Ltd 10.000% 08/31/08 1 Software of Excellence 7.000% 08/09/07 1 Tower Finance Ltd 8.750% 10/15/07 8 Tower Finance Ltd 8.650% 10/15/09 8 TrustPower Ltd 8.300% 09/15/07 8 TrustPower Ltd 8.300% 12/15/08 8 TrustPower Ltd 8.500% 09/15/12 8 TrustPower Ltd 8.500% 03/15/14 8 Vision Systems Ltd 9.000% 12/15/08 2 Westpac Banking Corporation 6.250% 08/30/11 6 MALAYSIA -------- Aliran Ihsan Resources Bhd 5.000% 11/29/11 1 Artwright Holdings Bhd 5.500% 03/06/07 1 Asian Pac Bhd 4.000% 12/21/07 1 Berjaya Land Bhd 5.000% 12/30/09 1 Camerlin Group Bhd 5.500% 07/15/07 2 Crescendo Corporation Bhd 3.000% 08/25/07 1 Dataprep Holdings Bhd 4.000% 08/06/07 1 Eden Enterprises (M) Bhd 2.500% 12/02/07 1 EG Industries Bhd 5.000% 06/16/10 1 Equine Capital Bhd 3.000% 08/26/08 1 Fountain View Development Sdn Bhd 3.500% 11/03/06 1 Greatpac Holdings Bhd 2.000% 12/11/08 1 Gula Perak Bhd 6.000% 04/23/08 1 Hong Leong Industries Bhd 4.000% 06/28/07 1 Huat Lai Resources Bhd 5.000% 03/28/10 1 I-Berhad 5.000% 04/30/07 1 Insas Bhd 8.000% 04/19/09 1 Kamdar Group Bhd 3.000% 11/09/09 1 Killinghall Bhd 5.000% 04/13/09 2 Kosmo Technology Industrial Bhd 2.000% 06/23/08 6 Kretam Holdings Bhd 1.000% 08/10/10 1 Kumpulan Jetson 5.000% 11/27/12 1 LBS Bina Group Bhd 4.000% 12/29/06 1 LBS Bina Group Bhd 4.000% 12/31/07 1 LBS Bina Group Bhd 4.000% 12/31/08 1 LBS Bina Group Bhd 4.000% 12/31/09 1 Lion Diversified Holdings Bhd 2.000% 06/01/09 3 Media Prima Bhd 2.000% 07/18/08 1 Mithril Bhd 8.000% 04/05/09 1 Mithril Bhd 3.000% 04/05/12 1 Mutiara Goodyear Development Bhd 2.500% 01/15/07 1 Naim Indah Corporation Bhd 0.500% 08/24/06 1 Nam Fatt Corporation Bhd 2.000% 06/24/11 1 Pantai Holdings Bhd 5.000% 03/28/07 2 Pantai Holdings Bhd 5.000% 07/31/07 2 Pelikan International Corp Bhd 3.000% 04/08/10 1 Poh Kong Holdings Bhd 3.000% 01/20/07 1 Prinsiptek Corporation Bhd 3.000% 11/20/06 1 Puncak Niaga Holdings Bhd 2.500% 11/18/16 1 Ramunia Holdings 1.000% 12/20/07 1 Rashid Hussain Bhd 0.500% 12/24/12 1 Rashid Hussain Bhd 3.000% 12/24/12 1 Rhythm Consolidated Bhd 5.000% 12/17/08 1 Senai-Desaru Expressway Bhd 3.500% 12/08/17 74 Silver Bird Group Bhd 1.000% 02/15/09 1 Southern Steel 5.500% 07/31/08 1 Tanah Emas Corporation Bhd 2.000% 12/09/06 1 Tap Resources Bhd 2.000% 06/29/06 1 Tenaga Nasional Bhd 3.050% 05/10/09 1 Titisan Modal Bhd 5.000% 04/28/20 73 Tradewinds Corporation Bhd 2.000% 02/08/12 1 Tradewinds Plantations Bhd 3.000% 02/28/16 1 VTI Vintage Bhd 4.000% 08/22/06 1 WCT Land Bhd 3.000% 08/02/09 1 Wah Seong Corp 3.000% 05/21/12 3 YTL Cement Bhd 4.000% 11/10/15 1 SINGAPORE --------- Rabobank Singapore 1.000% 01/15/12 75 Rabobank Singapore 1.000% 11/03/13 72 Sengkang Mall 8.000% 11/20/12 1 Structural System Singapore 11.000% 06/30/07 1 ********* 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. Catherine Gutib, Valerie Udtuhan, Francis Chicano, 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 ***