/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/060721.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, July 21, 2006, Vol. 9, No. 144 Headlines A U S T R A L I A & N E W Z E A L A N D A&L SUSSMAN: Bank Appoints Receiver and Manager ALKENT DEVELOPMENTS: Members Appoint Official Liquidator ART LOUNGE: Appoints Peter Ngan as Liquidator AWB LIMITED: AU Government Supports Single Desk, NZPA Says DAIKYO REAL ESTATE: Enters Voluntary Wind-Up EKGEKO PTY: Members and Creditors to Receive Wind-Up Report FIVOVUS PTY: Members Agree on Voluntary Wind-Up GONZO FORMWORK: To Declare Second Dividend on August 2 HARBORD DIGGER'S: Members Decide to Close Operations HUON CORPORATION: Worker Strikes Start to Affect Customers HYLAND DEVELOPMENTS: Names Ross Vile as Liquidator I.G. & F.M. COLE: Placed Under Voluntary Liquidation IWATANI INTERNATIONAL: Members to Receive Liquidators' Report JORDAN TRANSPORT: Appoints Receivers and Managers KINGS CREEK: Set to Declare Second Dividend on July 31 M1 MIDDLE CRESCENT: Liquidator Lindholm to Give Wind-Up Report MANNE PTY: Wind-Up Process Commenced MN ADMIN: Winds Up Business Operations MORRISON ENGINEERING: Liquidator Reidy to Present Wind-Up Report NIXDEN PTY: Inability to Pay Debt Prompts Wind-Up PANASONIC AVC: Members Resolve to Wind Up Operations PAVEMENT CONSTRUCTIONS: Enters Wind-Up Proceedings ROTHO ENTERPRISES: Court to Hear Wind-Up Petition on July 31 SAEN OPTIONS: Members Opt to Shut Down Business Operations STARBOC PTY: Members and Creditors to Hear the Wind-Up Report STEWEN PTY: To Declare Dividend on August 13 TELSTRA CORPORATION: S. Trujillo Sacks Exec for "Misconduct" WESTERN AUSTRALIA SUPERIOR: Names Official Liquidator C H I N A & H O N G K O N G ASIA FINANCIAL: Creditors' Proofs of Claim Due on August 7 BANK OF CHINA (H.K.): Takes Lead in Mortgage Rate War BRILLIANT DAY: Court Orders Wind-Up CHINA SOUTHERN: Mulla Cargo Venture With Korean Air EVERY LUCK: Wind-Up Process Commenced GREEN APPLE: Court Issues Wind-Up Order HODEX DEVELOPMENT: Enters Wind-Up Proceedings JINXI ENTERPRISES: Court Issues Wind-Up Order KARLFORD INDUSTRIAL: To Wind Up Business KINGSWIN CONSULTANTS: Shuts Down Business Operations SQUARE FUND: Appoints Joint Liquidators YAU CHEUNG: Wind-Up Process Commenced YUNNAN & H.K.: High Court Orders Wind-Up * Chinese Airlines Lose CNY2.5 Billion to Fuel Hike I N D I A FORD MOTOR: Moody's Lowers Senior Unsecured Ratings to B2 FORD MOTOR: S&P Shaves Corporate Credit Rating to B+ from BB- NATIONAL TEXTILE: Government Shortlists Three Rehab Advisors SHIVA CEMENT: IFCI Offers INR9-Million Equity Participation I N D O N E S I A PERUSAHAAN LISTRIK: Loses IDR300 Million to Power Theft J A P A N JAPAN AIRLINES: Share Price Falls on Planned Stock Offering SAPPORO HOLDINGS: Current Liabilities Outweigh Current Assets SEIBU HOLDINGS: Trust Banks Sue Railway Unit Over Delisting K O R E A CHONG KUN DANG: Inks Drug Agreement With Scottish Biomedical HANAROTELECOM: Five Months Add 21% More Subscribers M A L A Y S I A ANTAH HOLDINGS: Former Employee Files Lawsuit Against Unit AVANGARDE RESOURCES: Public Shareholding Level Stands at 82.11% KRETAM HOLDINGS: List and Quotes New Shares Today LANKHORST BERHAD: Unveils 46.44% Public Shareholding Level LANKHORST BERHAD: Notes Variance in Audited & Unaudited Results MALAYSIA AIRLINES: Foreign Carriers Urged to Fly Dropped Routes MBF HOLDINGS: Unit Strikes Deal to Buy PNG Assets METROPLEX BERHAD: Court to Hear Judgment Appeal on Sept. 15 PARK MAY: Complies with Public Spread Requirement TENCO BERHAD: Complies with Public Spread Requirement TRU-TECH HOLDINGS: Defaults on Monthly Sinking Fund Deposit P H I L I P P I N E S BANCO DE ORO: First Quarter Income Hikes Up 25% EQUITABLE PCI: Posts 25% Increase in First Quarter Net Income MAYNILAD WATER: CA Orders to Reinstate Employees' Status METROPOLITAN BANK: First Quarter Net Income Increases 12.7% METROPOLITAN BANK: Wants Stronger Remittance Business in Europe METROPOLITAN BANK: Reorganizes Management Structure METROPOLITAN BANK: Signs PHP3B Notes Facility Deal with SM Prime S I N G A P O R E AMAZON TIMBER: Court to Hear Wind-Up Petition on July 28 APAC TECH: Enters Wind-Up Proceedings ASIA-PACIFIC BULK: Pays Dividend to Creditors CIVIL GEO: Wind-Up Petition Hearing Slated for July 28 LIANG HUAT: Appoints Independent Financial Adviser T H A I L A N D CIRCUIT ELECTRONICS: SEC Files Fraud Action Against Five Execs TOTAL ACCESS: Fitch Affirms BB+ LT Foreign Issuer Default Rating * Exporters Told to Prepare for Volatile Financial Markets * Large Companies With Insolvent Balance Sheets - - - - - - - - ============================================ A U S T R A L I A & N E W Z E A L A N D ============================================ A&L SUSSMAN: Bank Appoints Receiver and Manager ----------------------------------------------- On June 16, 2006, the Bank of Western Australia Limited appointed Brian Raymond Silvia as receiver and manager for A&L Sussman Pty Limited. The Receiver and Manager can be reached at: Brian Raymond Silvia Ferrier Hodgson Level 17, 2 Market Street Sydney Australia ALKENT DEVELOPMENTS: Members Appoint Official Liquidator -------------------------------------------------------- The members of Alkent Developments Pty Limited convened on June 9, 2006, and passed a special resolution to wind up the Company's business operations. Subsequently, Nicholas Orfanos was appointed as liquidator. The Liquidator can be reached at: Nicholas Orfanos Level 1, 147 Frome Street Adelaide, South Australia 5000 Australia Telephone:(08) 8224 0440 Facsimile:(08) 8224 0470 e-mail: Nick.orfanos@adelaide.on.net ART LOUNGE: Appoints Peter Ngan as Liquidator --------------------------------------------- Members of The Art Lounge Gallery Pty Limited held a general meeting on June 9, 2006, and agreed to shut down the Company's business operations. Peter Ngan was subsequently appointed as liquidator. The Liquidator can be reached at: Peter Ngan Ngan & Co Chartered Accountants Level 5, 49 Market Street Sydney, New South Wales 2000 Australia AWB LIMITED: AU Government Supports Single Desk, NZPA Says ---------------------------------------------------------- The Australian Government supports the country's wheat export monopoly and would take into account farmer support for its continued operation by AWB Ltd., Stuff.co reports, citing Agriculture Minister Peter McGauran. Minister McGauran, however, said that the Government would not make any decisions on possible industry changes until an inquiry into AWB's payment of alleged kickbacks to former Iraqi President Saddam Hussein's regime would be completed, Stuff.co relates. As reported in the Troubled Company Reporter - Asia Pacific on July 20, 2006, the deadline for Commissioner Terence Cole -- who heads the inquiry into the AWB Kickback Scandal -- to submit a report relating to the Inquiry has been extended until the end of September. Moreover, on July 5, 2006, the TCR-AP stated that the Western Australian Farmers Federation and the Victorian Farmers Federation have joined growing calls to keep the single desk wheat marketing system. The New Zealand Press Association relates that Australia's biggest farmers group, the New South Wales Farmers Association, also voted to support the single desk, and its operation by AWB International, a subsidiary of AWB Limited. According to NZPA, the Government's decision on whether to reorganize wheat exports is expected after Commissioner Cole's report is handed down. Minister McGauran said that the Government would back the single desk so long as it remains in the interests of growers and also in the national interest. Stuff.co recounts that the Australian system has long been opposed by the United States, the world's largest wheat exporter, which has been pressing the Australian Government in trade negotiations and in the World Trade Organization to dismantle the export monopoly, which it says is anti- competitive. The Australian Government has said that the monopoly is needed to balance un-subsidized Australian wheat's competitive position on export markets with heavily-subsidized U.S. wheat, NZPA notes. In addition to its support for the single desk, NSWFA urged improved corporate governance within AWB, and called for more transparency, Stuff.co says. About AWB AWB Limited -- http://www.awb.com.au/-- is Australia's leading agribusiness and one of the world's largest wheat marketing companies. It is also one of Australia's top 100 publicly listed companies. The Company is the exclusive manager and marketer of all Australian bulk wheat exports through what is known as the Single Desk. The Company markets wheat, and a range of other grains, into more than 50 countries, with Australian wheat exports worth up to AU$5 billion per year. AWB's footprint includes more than 430 outlets through its subsidiary landmark and has offices across the world. The company employs more than 2,700 staff reaching over 100,000 customers. AWB is also one of the nation's largest suppliers of rural merchandise, distributors of fertilizer, marketers of livestock, brokers of rural real estate and handlers of wool. Previously a low profile organization, AWB made headlines in late 2005 when it was accused of knowingly paying AU$290 million in kickbacks to the Government of Iraq, under Saddam Hussein's administration, through the United Nation's oil-for-food program. A UN report then found out that AWB paid the kickbacks to a Jordanian trucking company linked to Hussein's deposed regime. The Australian Government then appointed a commission, headed by retired judge Terence Cole, to investigate into the Company's role in and the Government's alleged "knowledge" of the scandal. The "Cole Inquiry" is currently underway. The scandal is anticipated to create great political repercussions to the Australian Government, given the country's contribution to military action against President Hussein in the 2003 invasion of Iraq. DAIKYO REAL ESTATE: Enters Voluntary Wind-Up -------------------------------------------- After an extraordinary general meeting on June 21, 2006, the members of Daikyo Real Estate Pty Limited decided to voluntarily wind up the Company's operations. In this regard, Robert Hutson and John Park were appointed as liquidators. The Liquidators can be reached at: Robert Hutson John Park KordaMentha (Qld) Level 2, Corporate Centre One 2 Corporate Court Bundall, Queensland 4217 Australia Telephone:(07) 5574 1322 Facsimile:(07) 5574 1433 EKGEKO PTY: Members and Creditors to Receive Wind-Up Report ----------------------------------------------------------- A final meeting of the members and creditors of Ekgeko Pty Limited will be held on July 28, 2006, at 10:00 a.m. During the meeting, they will receive Liquidator Reidy's final account showing how the Company was wound up and how its property was disposed of. As reported by the Troubled Company Reporter - Asia Pacific on Sept. 8, 2005, the Company wound up its operations on August 4, 2006, due to its inability to pay its debts. The Liquidator can be reached at: Geoffrey Reidy c/o Rodgers Reidy Level 8, 333 George Street Sydney, New South Wales 2000 Australia FIVOVUS PTY: Members Agree on Voluntary Wind-Up ----------------------------------------------- At a general meeting on June 22, 2006, the members of Fivovus Pty Limited resolved to close the Company's business operations and distribute the proceeds of its assets disposal. Subsequently, Frank Anthony Mason was appointed as liquidator. The Liquidator can be reached at: Frank Anthony Mason Capricorn Business Services Suite 4 Level 5 56 Station Street Parramatta, New South Wales 2150 Australia GONZO FORMWORK: To Declare Second Dividend on August 2 ------------------------------------------------------ Gonzo Formwork Pty Limited will declare its second dividend on August 2, 2006, to the exclusion of creditors who were not able to prove their claims. The Troubled Company Reporter - Asia Pacific recounts that the Company declared its first dividend on May 3, 2006. The liquidator can be reached at: Ross Duus Duus & Co Level 4, 31 Sherwood Road Toowong, Queensland 4066 Australia Telephone:(07) 3870 7388 Facsimile:(07) 3870 4844 HARBORD DIGGER'S: Members Decide to Close Operations ---------------------------------------------------- Members of The Harbord Digger's Memorial Club Limited held a general meeting on June 18, 2006, and resolved to wind up the Company's business operations. Subsequently, Gregory Alexander Russell was appointed as liquidator. The Liquidator can be reached at: Gregory Alexander Russell Russell Corporate Advisory Suite 304, Level 3, 97 Pacific Highway North Sydney New South Wales 2060 Australia HUON CORPORATION: Worker Strikes Start to Affect Customers ---------------------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on July 18, 2006, around 600 workers went on strike at Huon Corp.'s three factories -- Empire Rubber, FRN, and Mills Elastomers -- after 122 job losses were announced. The TCR-AP report cited administrator Ken Sellars, of SimsPartners, as saying that there will be a degree of pressure applied to the car companies while the strikes are in place. In an update, The Age relates that workers at Ford Motors -- one of Huon Corp.'s customers -- could soon be stood down as the strikes start to affect the car industry. Citing Ford spokeswoman Sinead McAlary, Meaghan Shaw of The Age says that about 2,000 workers at Ford's Broadmeadows plant and another 2,000 at its Geelong plant will be stood down starting July 21, 2006, if the strikes at Huon Corp. are not resolved. The warning comes as Huon's administrators take Supreme Court action against Huon's directors to try to recover more than AU$30 million in entitlements owed to its workers. The TCR-AP earlier reported that there was AU$30 million owing to the workers at the three factories and redundancies were offered without the promise of any entitlements being paid out. The report said that it was understood that Huon's managing director John Schulz diverted Empire Rubber's property holdings into personally linked interests shortly after buying the firm from Nylex Limited in December 2005. The TCR-AP also noted that Mr. Sellars has confirmed that Mr. Schulz's transactions were being investigated. The Age notes that Ford is not seeking orders from the Australian Industrial Relations Commission to stop the industrial action, which it can do as an affected third party, but has said that it will wait and let the administrator handle the matter. The other Huon clients -- Toyota, Holden, and Bosch -- said that there was no immediate impact on their supplies, The Age says. However, another customer, PBR, believes that the strikes will start to affect supplies next week. * * * Based in Victoria, Australia, Huon Corp. manufactures car parts. It has factories that supply parts including air intake hoses, steering column covers, rubber seals, and fuel filler shields to major car companies like Toyota, Holden, Ford, and PBR. Huon Corp. went into voluntary administration after concerns about its financial situation, saying the failure to perform occurred after it purchased Empire Rubber, and Melbourne-based firms FRN and Mills Elastomers from Nylex Ltd., in December 2005. HYLAND DEVELOPMENTS: Names Ross Vile as Liquidator -------------------------------------------------- Members of Hyland Developments Pty Limited convened on June 20, 2006,and decided to liquidate the Company's business operations. In this regard, Ross Vile was appointed as liquidator. The Liquidator can be reached at: Ross Vile R. A. Vile Chartered Accountant 21st Floor, 300 Queen Street Brisbane, Queensland 4000 Australia Telephone:(07) 3228 4000 I.G. & F.M. COLE: Placed Under Voluntary Liquidation ---------------------------------------------------- At a general meeting of I.G. & F.M. Cole Pty Limited on June 23, 2006, members passed a special resolution to voluntarily wind up the Company's business operations and distribute its assets. The liquidator can be reached at: James Joseph Murphy JJ Murphy & Associates 9 Ashgrove Avenue Ashgrove, Queensland 4060 Australia IWATANI INTERNATIONAL: Members to Receive Liquidators' Report ------------------------------------------------------------- Members of Iwatani International Corporation (Australia) Pty Limited will convene on July 27, 2006, at 10:00 a.m., to receive Liquidators David Clement Pratt and Timothy James Cuming's accounts of the Company's wind-up and property disposal exercises. As reported by the Troubled Company Reporter - Asia Pacific on May 8, 2006, the Company was placed under members' voluntary wind-up on March 21, 2006. The Liquidators can be reached at: David Clement Pratt Timothy James Cuming PricewaterhouseCoopers Level 15, 201 Sussex Street Sydney, New South Wales 1171 Australia JORDAN TRANSPORT: Appoints Receivers and Managers ------------------------------------------------- On June 8, 2006, Bibby Financial Services Australia Pty Limited appointed Ginette Muller and Lachlan McIntosh as joint and several receivers and managers for Jordan Transport Pty Limited. The Receivers and Managers can be reached at: Bibby Financial Services Australia Pty Ltd Level 3, 69 Regent Street Clippendale, New South Wales Australia Telephone:(07) 3004 3404 Facsimile:(02) 3211 8955 KINGS CREEK: Set to Declare Second Dividend on July 31 ------------------------------------------------------ Kings Creek Winery Pty Limited will declare its second dividend on July 31, 2006, to the exclusion of creditors who were not able to prove their claims by July 17, 2006. As reported by the Troubled Company Reporter - Asia Pacific, the Company declared its first dividend on August 2, 2006. The Liquidator can be reached at: C. P. White HLB Mann Judd Chartered Accountants Level 1, 160 Queen Street Melbourne, Victoria 3000 Australia M1 MIDDLE CRESCENT: Liquidator Lindholm to Give Wind-Up Report -------------------------------------------------------------- Members and creditors of M1 Middle Crescent Pty Limited will hold a meeting on July 31, 2006, at 10:30 a.m. for them to receive Liquidator John Lindholm 's final account showing how the Company was wound up and how its property was disposed of. The Company was placed into voluntary wind-up on June 15, 2005, the Troubled Company Reporter - Asia Pacific recounts. The Liquidator can be reached at: John Lindholm Ferrier Hodgson Level 29, 600 Bourke Street Melbourne, Victoria 3000 Australia MANNE PTY: Wind-Up Process Commenced ------------------------------------ At a general meeting of the members of Manne Pty Limited on June 21, 2006, it was agreed that a voluntary wind-up of the Company's operations is appropriate and necessary. Salman Haq was subsequently appointed as liquidator. The Liquidator can be reached at: Salman Haq Level 8, 65 York Street Sydney, New South Wales 2000 Australia MN ADMIN: Winds Up Business Operations -------------------------------------- After an extraordinary general meeting on June 22, 2006, the members of MN Admin Pty Limited decided to voluntarily wind up the Company's operations. Ezio Marco Senatore and Stephen Brennan were subsequently named liquidators at a creditors' meeting held later that day. The Liquidators can be reached at: Ezio Marco Senatore Stephen Brennan Senatore Brennan Rashid Level 7 28 University Avenue Canberra Australian Capital Territory 2601 Australia Telephone:(02) 6214 6700 Facsimile:(02) 6214 6799 MORRISON ENGINEERING: Liquidator Reidy to Present Wind-Up Report ---------------------------------------------------------------- A final meeting of the members and creditors of Morrison Engineering Services Pty Limited will be conducted on July 27, 2006, at 10:00 a.m. During the meeting, Liquidator Geoffrey Reidy will present the accounts of the Company's wind-up operations. According to the Troubled Company Reporter - Asia Pacific, the Company wound up its business operations on October 26, 2005, due to its inability to pay its debts. The Liquidator can be reached at: Geoffrey Reidy Rodgers Reidy Level 8, 333 George Street Sydney, New South Wales 2000 Australia NIXDEN PTY: Inability to Pay Debt Prompts Wind-Up ------------------------------------------------- The members and creditors of Nixden Pty Limited met on June 23, 2006, and resolved to wind up the Company's business operations due to its inability to pay debts. The liquidator can be reached at: Richard Albarran c/o Hall Chadwick Level 29, 31 Market Street Sydney, New South Wales 2000 Australia PANASONIC AVC: Members Resolve to Wind Up Operations ---------------------------------------------------- The members of Panasonic AVC Networks Australia Pty Limited held a meeting on June 23, 2006, and passed a special resolution to wind up the Company's business operations. The liquidators can be reached at: David Clement Pratt Timothy James Cuming Level 15, 201 Sussex Street Sydney, New South Wales 1171 Australia PAVEMENT CONSTRUCTIONS: Enters Wind-Up Proceedings -------------------------------------------------- The members of Pavement Constructions (NSW) Pty Limited held a meeting on June 23, 2006, and resolved to wind up the Company's business operations. Subsequently, Martin J. Green was appointed as liquidator. The Liquidator can be reached at: Martin J. Green GHK Green Krejci Level 13, 1 Castlereagh Street Sydney, New South Wales 2000 Australia ROTHO ENTERPRISES: Court to Hear Wind-Up Petition on July 31 ------------------------------------------------------------ A wind-up petition against Rotho Enterprises Pty Limited will be heard before the Supreme Court of Queensland on July 31, 2006, at 9:30 a.m. Tunnel Boring Australia Pty Limited filed the wind-up petition on June 9, 2006. The Petitioner's solicitors can be reached at: c/o Hynes Lawyers Level 6, 50 Appel Street Surfers Paradise, Queensland 4217 Australia Telephone:(07) 5592 6698 Facsimile:(07) 5592 6643 e-mail: Ian.Bisson@hyneslawyers.com.au SAEN OPTIONS: Members Opt to Shut Down Business Operations ---------------------------------------------------------- The members of Saen Options Australia Pty Limited convened on June 19, 2006, and decided that the Company should wind up its operations voluntarily. The liquidator can be reached at: Adrian Raftery ARW Chartered Accountants 1202, 92 Pitt Street Sydney, New South Wales 2000 Australia STARBOC PTY: Members and Creditors to Hear the Wind-Up Report ------------------------------------------------------------- A final meeting of the members and creditors of Starboc Pty Limited will be held on July 31, 2006, at 10:00 a.m. During the meeting, Liquidator Andrew Mclellan will report on the Company's wind-up activities. As reported by the Troubled Company Reporter - Asia Pacific, the Company wound up its business operations on October 26, 2005. The liquidator can be reached at: Andrew Mclellan PPB Chartered Accountants Level 10, 90 Collins Street Melbourne, Victoria 3000 Australia STEWEN PTY: To Declare Dividend on August 13 -------------------------------------------- Stewen Pty Limited notifies parties-in-interest of its intention to declare its first and final dividend. Creditors who were not able to file their proofs of claim on July 5, 2006, will be excluded from sharing in the dividend distribution. The Company commenced a wind-up of its operations on June 1, 2006, The Troubled Company Reporter - Asia Pacific recounts. The liquidator can be reached at: Mark Pearce c/o Pearce & Heers Insolvency Accountants Level 8, 410 Queen Street Brisbane, Queensland 4000 Australia TELSTRA CORPORATION: S. Trujillo Sacks Exec for "Misconduct" ------------------------------------------------------------ Telstra Chief Executive Officer Sol Trujillo sacked a senior Telstra executive for allegedly leaking confidential information, Fleur Leyden of the Herald Sun reports. A Telstra spokesman told BusinessDaily that "[l]ike many companies, Telstra retains information including emails as part of our overall records management and to support our legal compliance obligations. Staff are aware of this." After a report in the industry publication Communications Day about the sudden departure of Andrew Johnson, Telstra's managing director for Strategic Initiatives Lead, Mr. Trujillo wrote to Telstra staff saying that a senior executive had been dismissed for "serious misconduct," the Herald Sun relates. "It was found that he had breached his contract of employment in relation to confidentiality obligations and Telstra policies about unauthorized contact with the media," the paper cites Mr. Trujillo as saying. Mr. Johnson, who was not named in Mr. Trujillo's memo, has worked in various roles at Telstra since 2001, the Herald Sun notes, adding that he is the third senior executive to leave the Network and Technology group in less than six months. In his letter to staff, Mr. Trujillo said that he was particularly concerned that the employee had "disregarded longstanding, effective, and easily accessible company processes" for airing his grievances. "His decision to bypass proper channels for expressing dissenting views was incompatible with his obligations as an employee -- obligations that apply to each of us -- so he was dismissed," Mr. Trujillo added. According to the Herald Sun, Mr. Trujillo said that the dismissal followed an investigation that was reviewed by senior management. He stated that staff had avenues to voice concerns about Telstra's operations or business direction, and the company also operated a confidential whisteblower service. The Herald Sun recounts that the group's managing director network engineering, Ken Benson, left in February 2006 and another executive Bill Felix, left in May 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. WESTERN AUSTRALIA SUPERIOR: Names Official Liquidator ----------------------------------------------------- The members and creditors of Western Australia Superior Salads Pty Limited convened on June 26, 2006, and decided to wind up the Company's business operations. Subsequently, Roger Roy Nicholas was appointed as liquidator. The Liquidator can be reached at: Roger Roy Nicholas MSI Marsdens Certified Practicing Accountants 565 Hay Street Daglish, Western Australia 6008 Australia ================================ C H I N A & H O N G K O N G ================================ ASIA FINANCIAL: Creditors' Proofs of Claim Due on August 7 ---------------------------------------------------------- Creditors of Asia Financial (Assets Management) Ltd are required to submit their proofs of claim by August 7, 2006. Failure to comply with the requirement will exclude a creditor from sharing in any distribution the Company will make. Proofs of claim must be forwarded to the joint liquidators at: Cosimo Borrelli 5th Floor, Allied Kajima Bldg 138 Gloucester Road, Wanchai Hong Kong BANK OF CHINA (H.K.): Takes Lead in Mortgage Rate War ----------------------------------------------------- Bank of China (Hong Kong) is making headway in cutting its mortgage discount rate ahead among lenders, The Standard reports. The move was expected to generate cash from renewed residential property and to recover lost market share. According to The Standard, BOC has issued an internal notice instructing staff to offer mortgages at prime minus 3.1 percentage points to customers. With its prime rate at 8.25, its mortgage rate now stands at 5.15. However, The Standard notes that the new rate would be effective for the first two years of the loan, after which a slightly higher rate would apply. Despite BOC's latest move, rival HSBC said it would hold its mortgage rate at prime minus 2.75. A spokeswoman for HSBC told The Standard that they are on the review of the market and there are still no plans to alter mortgage rate. Established on October 1, 2001, Bank of China (Hong Kong) Limited - http://www.bochk.com/- is a locally incorporated licensed bank. It has combined the businesses of ten of the twelve banks in Hong Kong originally belonging to the Bank of China Group. In addition, it holds shares in Nanyang Commercial Bank Limited and Chiyu Banking Corporation Limited, both of which are incorporated in Hong Kong, as well as BOC Credit Card (International) Limited. Fitch Ratings on June 18, 2006, upgraded the individual rating of Bank of China Hong Kong Limited to "B", from "B/C". At the same time, the agency affirmed the bank's Long-term foreign currency Issuer Default Rating of "A", its Short-term foreign currency rating of "F1", and its Support rating of "2". The Outlook on the ratings is Stable. BRILLIANT DAY: Court Orders Wind-Up ----------------------------------- The High Court of Hong Kong on June 16, 2006, ordered the wind- up of Brilliant Day Ltd's operations. The wind-up petition was filed before the Court on November 7, 2005. CHINA SOUTHERN: Mulla Cargo Venture With Korean Air --------------------------------------------------- China Southern Airlines plans to set up an air cargo venture with Korean Air to take advantage of the export industry in the Pearl River Region, The Standard reports. According to The Standard, China Southern confirmed that it is keen on forging a cargo venture with one or more foreign companies and that negotiations are under way. "We are still discussing with a number of foreign companies, including a member of Skyteam, but no agreement has been reached," China Southern director Xu Jie-bo told The Standard. The Standard recounts that China Southern last month signed an agreement that will ultimately lead to membership of Skyteam -- an airline grouping that competes with Star Alliance and "oneworld" and whose 10 members include Korean Air, Air France- KLM, US-based Continental and Northwest Airlines, and Aeroflot. According to The Standard, Chinese carriers like China Southern, which earns most of its revenue from passenger operations, are motivated to set up cargo operations along the Pearl Delta regions because of its surging exports economy. The Pearl Delta Region accounts for about 30% of mainland's export industry, The Standard relates. The Standard says that Air China, and China Eastern Airlines are also planning to set up cargo operation with in the region. Moreover, China Southern will also have to compete with Jade Cargo -- a joint venture between Shenzhen Airlines and Lufthansa Cargo -- which would start operation next month. * * * Headquartered in Guangzhou, China, China Southern Airlines Co Ltd. -- http://www.cs-air.com-- engages in the operation of airlines, as well as in aircraft maintenance and air catering operations in the People's Republic of China and internationally. It provides commercial airlines, cargo services, logistics operations, air catering, utility service, hotel operation, travel services, aircraft leasing, and Internet services. On May 1, 2006, Fitch Ratings has downgraded China Southern Airlines Company Limited's Foreign Currency and Local Currency Issuer Default Ratings to B+ from BB-. The Troubled Company Reporter - Asia Pacific reported in April 2006, that the carrier posted a net loss of CNY1.85 billion for 2005 versus a net loss of CNY48 million a year earlier. EVERY LUCK: Wind-Up Process Commenced ------------------------------------- Every Luck Development Ltd commenced a wind-up of its business operations on July 5, 2006, as ordered by the High Court of Hong Kong. The Court received the wind-up bid on May 9, 2006. GREEN APPLE: Court Issues Wind-Up Order --------------------------------------- The High Court of Hong Kong on July 5, 2006, ordered that the business operations of Green Apple Foods Ltd be wound up. The wind-up petition was filed before the Court on May 8, 2006. HODEX DEVELOPMENT: Enters Wind-Up Proceedings --------------------------------------------- Hodex Development Ltd received a wind-up order from the High Court of Hong Kong on July 5, 2006. The wind-up petition was presented before the Court in November 2005. JINXI ENTERPRISES: Court Issues Wind-Up Order --------------------------------------------- A wind-up petition against Jinxi Enterprises was presented before the High Court of Hong Kong on April 12, 2006. On July 5, 2006, the Court issued an order in favor of the wind- up petition. KARLFORD INDUSTRIAL: To Wind Up Business ---------------------------------------- On July 5, 2006, the High Court of Hong Kong ordered the wind-up of Karlford Industrial Ltd. The wind-up petition was filed with the Court on May 8, 2006. KINGSWIN CONSULTANTS: Shuts Down Business Operations ---------------------------------------------------- The High Court of Hong Kong on July 5, 2006, ordered the wind-up of Kingswin Consultants Ltd's operations. The Court received the wind-up petition on May 9, 2006. SQUARE FUND: Appoints Joint Liquidators --------------------------------------- Kenny King Ching Tam and Mat Ng were appointed joint and several liquidators for Square Fund Industrial Ltd on May 17, 2006. The joint liquidators can be reached at: Mat Ng 17th Floor, Chun Wo Commercial Centre 23 Wing Wo Street Central, Hong Kong YAU CHEUNG: Wind-Up Process Commenced ------------------------------------- Yau Cheung Transportation Co Ltd commenced a wind-up of its operations on July 5, 2006, as ordered by the High Court of Hong Kong. The Court received the wind-up bid on May 10, 2006. YUNNAN & H.K.: High Court Orders Wind-Up ---------------------------------------- The High Court of Hong Kong on July 5, 2006, ordered the wind-up of Yunnan & Hong Kong Company Ltd. The Court received the wind-up petition on May 9, 2006. * Chinese Airlines Lose CNY2.5 Billion to Fuel Hike --------------------------------------------------- Chinese carriers continue to suffer around CNY2.5 billion in losses due to rising fuel prices, Xinhuanet News reports, citing an aviation analyst. Li Shurong of Shanghai Shenyin Wanguo Research & Consulting Co Ltd blamed the losses to worldwide increases in fuel prices. Mr. Shurong, however, did not disclose which airline Company is the biggest loser. According to Xinhuanet, China's top economic planning body -- National Development and Reform Commission -- raised the fuel price for aviation twice this year, up from CNY5,290 to the present CNY6,020 per ton or about a 12% increase. Xinhuanet also notes that operating costs of China's air carriers reached CNY34.98 billion in the first quarter, rising 23.5% from the same period last year, while core business revenues totaled CNY33.3 billion, up 17.7%. General Administration of Civil Aviation of China head Yang Yuanyuan told Xinhuanet that rising costs have put heavy pressures on Chinese airlines. Thus, Mr. Yang urged air companies to take advantage of peak transport seasons and to cut expenditures. Another aviation analyst, Sun Liping from the TX Investment Consulting Co Ltd, said she expects good earnings for airports but airlines will continue to suffer in the second half of the year. "If the oil price remains high, airlines will continue to lose in the second half of the year," Mr. Sun said. ========= I N D I A ========= FORD MOTOR: Moody's Lowers Senior Unsecured Ratings to B2 --------------------------------------------------------- Moody's Investors Service lowered the Corporate Family and senior unsecured ratings of Ford Motor Company to B2 from Ba3 and the senior unsecured rating of Ford Motor Credit Company to Ba3 from Ba2. The Speculative Grade Liquidity rating of Ford has been affirmed at SGL-1, indicating very good liquidity over the coming 12-month period. The outlook for the ratings is negative. The downgrade of the Ford ratings reflects Moody's expectation that the company's performance in North America will face considerable additional stress due to high fuel prices and the resulting shift in consumer preference away from the very profitable sports utility vehicle segment. During the six months through June 2006 Ford's sales of mid-size SUVs fell by 24.7% and sales of large SUVs declined by 32.1%. Despite the fact that solid market acceptance of Ford's new mid- size and full-size cars has helped maintain the United States market share above 18%, the dramatic shift away from the SUV segment undermines prospects that Ford's Way Forward restructuring program will materially strengthen its weak credit metrics before 2008. Bruce Clark, a senior vice president with Moody's, said "The strong performance of Ford's new cars is certainly a positive. But the profitability of these vehicles doesn't come close to what the company had been earning on Explorers and Expeditions. This market shift is really hurting Ford and is pushing out the time frame during which the restructuring plan might contribute to any meaningful improvement in its credit ratios." In addition to the market shift from SUVs, Ford faces considerable challenges in other areas. These include implementing its extensive Way Forward restructuring initiative, reversing the chronically poor performance of Jaguar, contending with the ongoing erosion of its domestic supplier base, addressing the growing competitiveness and share gains of Asian manufacturers, and preparing for the renegotiation of its UAW contract in late 2007. As part of these contract negotiations it will be critical for Ford to achieve a material degree of relief in the areas of health care costs for active workers and the JOBs bank program. The decision by Ford's board of directors to cut both the company's dividend and director fees by half will have minimal impact on Ford's cash flow, but may contribute the constructive character of the dialogue with the UAW. Ford's negative outlook reflects the fact that the company is weakly positioned within the B2 rating category, and any shortfall in contending with the array of challenges that it faces could result in further pressure on the rating. Ford's liquidity position remains strong with US$24 billion in cash and short-term VEBA balances, and the company's Speculative Grade Liquidity Rating has been affirmed at SGL-1. Nevertheless, the company's weak operating and competitive position limits its capacity to absorb additional stress. For the LTM through March, Ford's automotive business had an operating margin of negative 2.8%, interest coverage well below 1x, and free cash flow of negative US$2.8 billion. The downgrade of Ford Credit's long-term rating to Ba3, with a negative outlook, considers the firm's ownership by, and concentrated operating relationship with, Ford Motor. This connection results in a ratings linkage between the two firms. Ford Credit's rating already incorporated expectations that declining portfolio balances, higher borrowing costs, and a leveling of credit quality improvements are likely to constrain the company's profitability in coming periods. However, in Moody's view, Ford's deeper operating challenges and longer turnaround horizon could have further negative implications for Ford Credit's results and financial condition, including its origination volumes, asset quality, profits and liquidity, thus negatively affecting its stand-alone credit profile. The one notch downgrade of Ford Credit's long-term rating widens the differential from Ford's rating to two notches from one. This notching differential continues to reflect Moody's view that loss severity in the event of default for Ford Credit would be meaningfully lower than for Ford. At the lower extremity of Moody's rating scale, the same difference in expected loss results in a greater differential between the two firms' ratings. While Moody's also believes Ford Credit's probability of default is lower than its parent's, there remains uncertainty by virtue of Ford's ownership and control that limits the potential ratings differential between the two firms. "Moody's believes Ford is economically motivated to maintain Ford Credit's operating strengths and enterprise value, but it could direct the company to take actions that, while seen by Ford's board to be beneficial for the consolidated Ford enterprise, are nevertheless adverse to Ford Credit's profile," said Mark Wasden, a Moody's Senior Credit Officer. Ford Motor Company, headquartered in Dearborn, Michigan, U.S.A., is the world's third largest automobile manufacturer. It has operations all over the world including India. Ford Motor Credit Company, also headquartered in Dearborn, Michigan, is the world's largest auto finance company. FORD MOTOR: S&P Shaves Corporate Credit Rating to B+ from BB- ------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Ford Motor Co. and related units to 'B+' from 'BB-' and affirmed its 'B-2' short-term rating. The ratings were removed from CreditWatch, where they were placed on May 25, 2006, with negative implications. The outlook is negative. Ford's consolidated debt outstanding totaled $151 billion at March 31, 2006. FCE Bank PLC's 'BB-' rating was not lowered and remains on CreditWatch, pending completion of Standard & Poor's evaluation of the potential for FCE to be rated slightly higher than its parent, Ford Motor Credit Co. However, FCE's CreditWatch implications are revised to negative from developing because if the rating agency concludes that FCE warrants a higher rating than that on Ford Credit, that differential is likely to be limited to one notch. FCE's 'B-2' short-term rating was affirmed and removed from CreditWatch. "The downgrade reflects our view that 2006 will be a more difficult year for Ford than previously anticipated," said Standard & Poor's credit analyst Robert Schulz. Notwithstanding its multiyear plan to turn around the performance of its North American automotive operations, Standard & Poor's expects the company's financial profile to weaken further during 2006 -- a period when the Unisted States economy and light-vehicle sales are robust. Standard & Poor's is concerned about the degree of weakness in its midsize SUV segment. Explorer sales, which represent about 9% of Ford-brand sales, were down 27.1% for the first five months of 2006. The rating agency also remains concerned about the very important full-size pickup market, which accounts for about 33% of Ford-brand sales and, we believe, far more in profitability. F-Series sales were down 0.3% for the first five months of 2006, versus 5.6% for the full-size pickup segment. But the evolving competitive dynamics of the full- size pickup market -- including upcoming new models from General Motors Corp. and Toyota Motor Corp. -- and the resiliency of demand for full-size pickups in the face of persistently high gas prices are its chief concerns for this segment. The expected erosion in Ford's financial profile during 2006 will reduce Ford's cash balances and leave the company more exposed to potential adverse market developments during the next two years, such as a decline in currently robust industry sales. Even so, Standard & Poor's does not believe that worsening financial performance in 2006 will push the company near a point where it could ultimately need to restructure its obligations (including its debt and contractual obligations) in the near term, given its substantial liquidity. In fact, Ford has so far suffered less meaningful market share erosion in the U.S. than in 2005 -- its U.S. light-vehicle share was 18.3% for the first five months of 2006, the same as at the end of 2005, partly due to high levels of fleet sales. Still, despite concerted efforts to improve the appeal of its product offerings and minimize the use of incentives, the company has experienced marked deterioration of its product mix, given precipitous weakening of sales of its midsize and large SUVs, products that had been highly disproportionate contributors to Ford's earnings. This product mix deterioration has occurred despite the launch of some refreshed SUV models such as the Explorer. The rating outlook on Ford is negative. Prospects for Ford's use of cash in North American automotive operations remains Standard & Poor's primary concern. The ratings could be lowered further if the rating agency came to expect that Ford's cash use was to worsen significantly due to further setbacks, whether Ford-specific or stemming from market conditions. Ford would need to reverse its current financial and operational trends, and sustain such a reversal, before Standard & Poor's would revise its outlook to stable. Ford Motor Company, headquartered in Dearborn, Michigan, U.S.A., is the world's third largest automobile manufacturer. It has operations all over the world including India. NATIONAL TEXTILE: Government Shortlists Three Rehab Advisors ------------------------------------------------------------ Three of four firms have been shortlisted to advise state-owned National Textile Corporation regarding the revival of its 29 mills through private participation, Bharat Textile.com reports. According to the report, after a technical evaluation, National Textile chose Ernst and Young, CRISIL, and Dhir and Dhir to advance to the next selection phase, the report says. The three firms have already submitted their financial bids. The Government invited the advisors to bid for the structuring of a joint venture for National Textile's 29 mills after its earlier conditions for private partners failed to elicit any response, BharatTextile reveals. The Troubled Company Reporter - Asia Pacific earlier reported that National Textile had attempted to tie up with private players to rejuvenate the mills. However, the efforts failed because the leasing-out strategy that was used discouraged potential bidders due to the high annual rent that was set at 5% of the value of the total land. A lack of technical advice was also cited as one of the reasons for the failure of the leasing effort, prompting the Company to hire experts to help it formulate new models for the joint venture revival scheme. The Company is looking at adopting different joint venture models to suit different mills. BharatTextile says that the name of he advisors would be finalized and announced in the coming weeks. The chosen firm will be given around two to three months to complete their work. Apart from reviving 29 mills through joint ventures, National Textile will modernize 22 mills on its own for INR534 crore as part of its restructuring, BharatTextile adds. About National Textile Corporation Headquartered in New Delhi, India, National Textile Corporation Ltd -- http://texmin.nic.in/-- is the single largest textile central public sector enterprise under Ministry of Textiles managing 52 textile mills through its nine subsidiary companies spread all over India. The strength of the group is around 22000 employees. The annual turnover of the Company in the year 2004-05 was approximately INR638 crores. In 2002, the Board for Industrial and Financial Reconstruction approved the revival of 53 viable mills and closure of 66 unviable mills. National Textile is in the process of a major restructuring. A new corporate plan is under formulation for repositioning of the organization by merging all its nine subsidiaries into one holding company. SHIVA CEMENT: IFCI Offers INR9-Million Equity Participation ----------------------------------------------------------- On July 17, 2006, IFCI Limited agreed to dole out INR9 million as its equity participation in Shiva Cement Limited's restructuring. IFCI and other lenders, including ICICI Bank, Bank of India, Bank of Baroda, and Allahabad Bank, endorsed Shiva Cement's debt restructuring plan in September 2005. The debt revamp exercise is expected to reduce Shiva Cement's debt burden while increasing the bottom line and earnings per share of the Company. * * * Headquartered in Orisa, India, Shiva Cement Limited manufactures cement for domestic and local supply. In September 2005, the Company secured in-principle approval for its debt restructuring proposal after its restructuring plan was approved by a consortium of lenders. ================= I N D O N E S I A ================= PERUSAHAAN LISTRIK: Loses IDR300 Million to Power Theft ------------------------------------------------------- PT Perusahaan Listrik Negara's East Jakarta office in Kampung Melayu disclosed on July 19, 2006, that power theft in the past quarter has led to a loss of about IDR300 million, the Jakarta Post says. According to the Company's office assistant manager Priyono, 97 clients stole electricity from PLN's power grid from mid-April 2006 to the end of June. Antara News quoted Mr. Priyono as saying that most of the 97 customers who stole electricity consumed over 2,200 watts of power. However, the Company has decided not to press charges. Instead, the Company intend to warn customers not to repeat any illegal actions and order them to pay for the stolen power. In major cases of power theft, where the perpetrator seems ignorant of the case, PLN will be more harsh. The Troubled Company Reporter - Asia Pacific reported on July 14, 2006, that PLN found that certain consumers are illegally taking power supply by tampering with their electric line or meter using a "power-saving" equipment. According to the report, PLN said that an unidentified company is selling the equipment, which disrupts the flow of energy to consumers or reduces the speed of their meters. This equipment also damages household power installations. * * * Indonesian state utility firm PT Perusahaan Listrik Negara -- http://www.pln.co.id/-- transmits and distributes electricity to around 30 million customers, roughly 60% of Indonesia's population. The Indonesian Government decided to end PLN's power supply monopoly to attract independents to build more capacity for sale directly to consumers, as many areas of the country are experiencing power shortages. PLN posted an IDR4.92-trillion net loss in 2005, against a net loss of IDR2.02 trillion in 2004. As reported in the Troubled Company Reporter - Asia Pacific on June 30, 2006, the Indonesian Government had offered to settle PLN's debt to state oil and gas firm PT Pertamina, which Pertamina claimed has totaled IDR23.9 trillion. However, PLN acting president Djuanda Nugraha Ibrahim said that the Company owes PHP17 trillion to Pertamina. ========= J A P A N ========= JAPAN AIRLINES: Share Price Falls on Planned Stock Offering ----------------------------------------------------------- Japan Airlines Corp. decided to issue 700 million shares to the public at JPY211 per share, 4.09% lower than its stock closing price of JPY220 per share as of July 19, 2006, Crisscross News reports. Dow Jones relates that the Company expects to raise around JPY145 billion from the share sale, instead of the initial JPY200 billion. Retela Crea Securities Co. equity research head Yoku Ihara said that the drop in share price may be caused by hedge funds that may be selling shares they do not own in order to make the price drop, and investors are not confident about the Company's future, according to Bloomberg News. The Troubled Company Reporter - Asia Pacific stated on July 3, 2006, that the Company planned to sell around 750 million shares or some 26.4% of its outstanding issued shares in order to raise funds to buy new airplanes. The shares would be offered in August. Another reason for the share sale is that JAL might need to redeem a bond issue worth JPY100 billion by next year, on seven-year convertible bonds it had sold in 2004 that permit investors to seek early redemption by March 2007, which they may be inclined to do after the slump in share prices. The Company had ordered new airplanes from Boeing for JPY609.24 billion, and the first delivery is slated for this year. JAL had decided to increase its sale of new shares overseas to 405 million shares from the initially planned 350 million due to stronger demand abroad, whereas it would sell 295 million shares in Japan. * * * Tokyo-based Japan Airlines International Company, Limited -- http://www.jal.com/en/-- was created as a result of the merger of Japan Airlines and Japan Air Systems to boost domestic coverage. As of March 31, 2006, JAL's debt amounted to JPY1.93 trillion, whereas shareholders' equity stood at JPY148.1 billion. The Troubled Company Reporter - Asia Pacific stated on May 12, 2006, that JAL posted a consolidated net loss of JPY47.24 billion for the business year 2005 ended March 31, 2006, due to safety-related incidents in 2005 that caused passengers to shift to its rival All Nippon Airways, and an increase in aviation fuel costs. Fitch Ratings Tokyo analyst Satoru Aoyama said that the Company's debt obligations and expenses for new aircraft have placed it in an unfavorable financial position. Fitch assigned a BB- rating on the Company, which is three notches lower than investment grade, whereas Moody's Investors Service gave Ba3 senior unsecured and issuer ratings for Japan Airlines International Co., Ltd., as well as its Ba3 issuer rating for Japan Airlines Domestic Co., Ltd. SAPPORO HOLDINGS: Current Liabilities Outweigh Current Assets ------------------------------------------------------------- Sapporo Holdings, Ltd., posted a decrease in its net income for fiscal year 2005 to JPY3.63 billion, compared with a net income of JPY4.64 billion in the previous fiscal year. The Company's balance sheet as of December 31, 2005, reflected strained liquidity with JPY140.09 billion in total current assets available to pay JPY220.20 billion in total current liabilities coming due within the next 12 months. Moreover, the December 2005 balance sheet showed total assets of JPY563.85 billion and total liabilities of JPY452.44 billion. These results are lower compared with the JPY602.11 billion total assets and JPY509.85 billion total liabilities reported as of December 31, 2004. Sapporo Holdings, Ltd., and its consolidated subsidiaries underwent a reorganization in 2003. On July 1, 2003, Sapporo Lion Ltd. became a wholly owned subsidiary of the Company through a share exchange. Effective the same date, the Company separated its alcoholic beverages, soft drinks and real estate business, and became a holding company. Standard & Poor's Rating Service gave Sapporo Holdings 'BB' Long-Term Foreign Issuer Credit and Long-Term Local Issuer Credit Ratings. SEIBU HOLDINGS: Trust Banks Sue Railway Unit Over Delisting ----------------------------------------------------------- Five trust banks jointly filed a damages lawsuit against two of Seibu Holdings Inc.'s subsidiaries -- Seibu Railway Co. and Prince Hotels Inc. -- over the railway firm's delisting from the Tokyo Stock Exchange in 2004, Crisscross News relates. According to the Japan Times, through their action, filed on June 30, 2006, Barclays Global Investors Japan Trust & Banking Co., Japan Trustee Services Bank, Master Trust Bank of Japan, Mitsubishi UFJ Trust & Banking Corp., and Trust & Custody Services Bank, are seeking an aggregate of JPY12.1 billion for losses they incurred when Seibu Railway was delisted from the Stock Exchange. Seibu Holdings received the formal complaint on July 17, 2006. The Troubled Company Reporter - Asia Pacific stated on June 29, 2006, that the Company plans to reduce its interest-bearing debts from JPY1.35 trillion as of March 3, 2005, to less than JPY1 trillion by March 2008. The Company also plans to generate JPY33 billion in pre-tax profit next year by selling off 34 loss-making resorts and facilities as part of its restructuring efforts, and hopes to complete the sales of the unprofitable facilities by March 2007. ========= K O R E A ========= CHONG KUN DANG: Inks Drug Agreement With Scottish Biomedical ------------------------------------------------------------ Chong Kun Dang Pharmaceutical Corporation has signed a new agreement with Scottish Biomedical and Pharmaceutical Co. to develop new diabetes drugs, a company press release states. The deal is being funded through the Korean Health Industry Development Institute's International Collaborative Research Programme for Drug Development and has been made possible with the support from Scottish Development International. Chong Kun Dang Pharmaceutical Corporation -- http://www.ckdpharm.com/-- manufactures and distributes pharmaceutical products. The Company produces medical drugs in the fields of systemic anti-infective, cardiovascular system, alimentary tract, metabolism, and sensory organs. Chong Kun Dang Pharmaceutical also constructs apartments and factories. Korea Investors Service gave Chong Kun Dang's senior unsecured debt a BB+ rating, while its commercial paper merited a B rating. HANAROTELECOM: Five Months Add 21% More Subscribers --------------------------------------------------- hanarotelecom Inc. gained 897,415 new subscribers for its various services from the start of the year until May 31, 2006, the Troubled Company Reporter - Asia Pacific learns from the company's regulatory filing with the United States Securities and Exchange Commission. The highest increase comes from hanarotelecom's broadband Internet segment which recorded a 30% increase to 3,591,982 subscribers as of May 31, 2006, from the subscriber count of 2,773,159 in December 31, 2006. The company's voice line segment adds 78,350 new subscribers to total 1,599,467 subscribers. In its full year 2005 results, hanarotelecom got around 91.2% of its revenues from its broadband and voice services. hanarotelecom's total subscriber count as of May 31, 2006, reached 5,199,649, compared with the 4,302,234 total subscribers as of December 31, 2005. About hanarotelecom hanarotelecom Inc. -- http://www.hanaro.com/-- is the second largest player in the Korean local telephone market. It provides high-speed Internet services in Korea. It provides high-speed Internet services in Korea. In June 2001, the company integrated broadband Internet access services which included ADSL, Hybrid Fiber Coaxial cables and Broadband Wireless Local Loop into a single brand called HanaFOS. hanarotelecom offers VoIP services to its broadband business customers as a bundled service and also as a stand alone service. * * * Moody's Investor Service has given hanarotelecom's long-term corporate family and its senior unsecured debt a Ba2 rating. Standard and Poor's gave both hanarotelecom's long-term foreign issuer credit and long-term local foreign issuer credit BB ratings. =============== M A L A Y S I A =============== ANTAH HOLDINGS: Former Employee Files Lawsuit Against Unit ---------------------------------------------------------- On June 17, 2006, Antah Holdings Berhad's wholly owned subsidiary, Kaseh Lebuhraya Sdn Bhd, was served with a Writ of Summons dated June 30, 2006, by Dato' Haji Razaly Bin Wahi. Mr. Bin Wahi alleges that his termination as Kaseh's Employer's Representative on September 3, 2003, for the Kajang-Seremban Highway Project was unlawful. In this regard, Mr. Bin Wahi wants: -- a declaration that his termination was unlawful; -- payment of MYR2,196,100 in damages; -- payment of MYR600,000 in lieu of notice of termination; -- Kaseh's contribution to the Employee Provident Fund for the period between January 2002 until September 2003; -- interests at 8% per annum from September 20, 2003; -- legal costs and other relief as the Kuala Lumpur High Court deems fit. Kaseh strenuously disputed Mr. Bin Wahi's claims and is currently liaising with its Solicitors to take the appropriate actions to protect its legal rights. About Antah Holdings Berhad Headquartered in Petaling Jaya, Selangor Darul Ehsan, Malaysia, Antah Holdings Berhad -- http://www.antah.com.my/-- manufactures and trades pharmaceutical products and fluid engineering and manufacturing. The Company's other activities include retailing of houseware and kitchenware, property development, insurance broking, provision of management services and investment holding. The Group discontinued its beverage and security services operations. The Group operates in Malaysia, Australia, United Kingdom and Singapore. On February 6 and May 8, 2006, the Company entered into several agreements with certain parties to undertake a proposed restructuring scheme with the intention of restoring the Company onto stronger financial footing via an injection of new viable businesses. The Company's March 31, 2006, balance sheet showed total assets of MYR698,224,000 and total liabilities of MYR1,051,307,000 resulting into a shareholders' deficit of MYR353,083,000. The Company's default on its credit facilities totaled MYR286,442,000, as of April 30, 2006. AVANGARDE RESOURCES: Public Shareholding Level Stands at 82.11% --------------------------------------------------------------- Avangarde Resources Berhad's public shareholding spread as of June 30, 2006, is 82.11% comprising 4,452 shareholders holding not less than 100 shares each. Accordingly, Avangarde has complied with the public shareholding spread requirement of Bursa Malaysia Securities Berhad. The Bourse requires a listed issuer to have at least 25% of its listed shares in the hands of a minimum of 1,000 public shareholders holding not less than 100 shares each. About Avangarde Resources Headquartered in Kuala Lumpur, Malaysia, Avangarde Resources Berhad is involved in the construction and development of housing projects. The Group has incurred huge losses due to provision of doubtful debts and writing off of bad debts. It was delisted from the Official List of Bursa Malaysia Securities Berhad due to its inadequate financial condition and its failure to meet with the requirements of the Bourse. The Company is now preparing the Proposed Scheme of Arrangement pursuant to the Section 176 of the Companies Act to regularize its financial condition. The Company will unveil its Proposed Scheme once it is finalized. As of March 31, 2006, the Company's balance sheet showed total assets of MYR20,344,000 and total liabilities of MYR147,506,000 resulting into a shareholders' deficit of MYR127,162,000. KRETAM HOLDINGS: List and Quotes New Shares Today ------------------------------------------------- Kretam Holdings Berhad's additional 10,982,839 new ordinary shares of MYR1 each will be listed and quoted today, July 21, 2006, at the Bursa Malaysia Securities Berhad. The new shares were derived from the conversion of MYR10,982,839 Redeemable Convertible Secured Loan Stocks-C 2003/2006. About Kretam Holdings Kretam Holdings Berhad is a Malaysian company engaged in the operation of an oil palm plantation and investment holding. Through its subsidiaries, it is also involved in the cultivation of oil palm; the milling and sale of oil palm products; plantation and palm oil mill management; general contracting for construction, civil engineering and mechanical works; the provision of project management, administrative and related services, and property rental, development and management. In addition, Kretam Holdings specializes in the provision of data processing services; stock and share broking and futures broking; the provision of services as a nominee and agent; the provision and maintenance of stock market information dissemination systems, and the operation of hydroelectric power stations. The Company has a large number of directly or indirectly held subsidiaries, as well as an associated company, Pantai Dalam Development Sdn. Bhd., a 49%-owned property developer. The Company had incurred recurring losses in the past. As of March 31, 2006, the Company's balance sheet revealed total assets of MYR161,427,000 and total liabilities of MYR268,350,000, resulting into a stockholders' deficit of MYR106,923,000. LANKHORST BERHAD: Unveils 46.44% Public Shareholding Level ---------------------------------------------------------- Lankhorst Berhad disclosed that its public shareholding spread as of June 30, 2006, is 46.44% comprising 1,826 public shareholders holding not less than 100 shares each. Thus, the Company complied with the public shareholding spread requirement pursuant to the Listing Requirements of Bursa Malaysia Securities Berhad. The Bourse requires a listed issuer to have at least 25% of its listed shares in the hands of a minimum of 1,000 public shareholders holding not less than 100 shares each. 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. 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. The Company's March 31, 2006, balance sheet revealed total assets of MYR105,613,000 and total liabilities of MYR203,251,000 resulting into a stockholders' deficit of MYR97,638,000. LANKHORST BERHAD: Notes Variance in Audited & Unaudited Results --------------------------------------------------------------- The auditors of Lankhorst Berhad have qualified the Company's Audited Accounts for the financial year ended December 31, 2005, in respect of the Company's going concern. Moreover, the Company disclosed that there was a deviation exceeding 10% between the profit after tax and minority interest stated in the announced unaudited and audited accounts for the financial year ended December 31, 2005. Financial Results For The Year Ended December 31, 2005 Deviations Of Audited Accounts Unaudited Audited Variance MYR'000 MYR'000 MYR'000 Revenue 41,695 38,774 (2,921) Less: Cost of Sales 35,297 50,062 14,765 Gross Profit/(Loss) 6,398 (11,288) (17,686) Other Income 295 311 16 Administrative & Other Expenses 6,068 82,257 76,189 Profit/(Loss) from Ops 625 (93,234) (93,859) Finance Cost (1,031) (10,557) (9,526) Share of Profits from Association Company - (267) (267) Profit/(Loss) Before Tax (406) (104,058) (103,652) Taxation (6) (6) - Profit/(Loss) After Tax (412) (104,064) (103,652) Minority Interest 101 - (101) Net Profit/(Loss) for the Period (311) (104,064) (103,753) The cost of sales increased mainly due to foreseeable losses provided for projects pending issuance of the final certificates. On the other hand, administrative and other expenses increased mainly due to provisions for doubtful debts and provisions for impairment of fixed assets. Meanwhile, finance costs increased due to the accruals of interest on borrowings. The Company's Original Financial Report for the year ended December 31, 2005, is available for free at: http://bankrupt.com/misc/tcrap_lankhorstbhd051706.doc About Lankhorst Berhad Headquartered in Selangor, Malaysia, Lankhorst Berhad engages in civil and geotechnical engineering services, building construction, trading and application of geosynthetic materials. Other activities include property development and investment, water and wastewater treatment, oil and gas contracting and supply, quarry operations, railway track construction, mechanical and electrical construction, soil improvement services and trading of construction supply. The Company has been incurring a string of losses due to high operating costs and its units are facing winding up actions. It also defaulted on several loan facilities. 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. The Company's March 31, 2006, balance sheet revealed total assets of MYR105,613,000 and total liabilities of MYR203,251,000 resulting into a stockholders' deficit of MYR97,638,000. MALAYSIA AIRLINES: Foreign Carriers Urged to Fly Dropped Routes --------------------------------------------------------------- The Tourism Ministry wants foreign airlines to take over several routes to China, which will be abandoned by Malaysia Airlines starting August 1, 2006, Bernama says. Deputy Tourism Minister Datuk Donald Lim Sinag Chai told Bernama that he will present the proposal to the Ministry of Transport as soon as possible. He added that the issue on the direct flights must be resolved immediately as there were many tourists from China who were thinking of coming to Malaysia. In addition, the ministry would also propose that foreign airlines be given the opportunity to operate new routes between the two countries, Bernama cites the Transport Minister. As reported by the Troubled Company Reporter - Asia Pacific on July 18, 2006, Malaysia Airlines is dropping some flights to China, Indonesia and Japan, in line with its business turnaround plan. According to the TCR-AP, the national carrier will cancel within the next three months twice-weekly return flights from Kota Kinabalu in eastern Sabah state to Shanghai, and twice-weekly services from Tawau in Sabah to Tarakan in Indonesia. Its thrice-weekly Airbus A330-300 return service from Kuala Lumpur to Fukuoka, Japan will be cut, as will the twice-weekly Airbus A330-300 direct service between Kuala Lumpur and Chengdu in China. In a separate report, Malaysia's proposal to start a Kuala Lumpur-Hangzhou direct flight received the nod from the Zhejiang provincial government on July 18, 2006. Moreover, both the Malaysian and Chinese provincial governments also agreed to provide assistance to the airline company that will operate the flight, according to Bernama. Malaysia would have no problem promoting the route as Hangzhou, China, was already a favorite tourist destination for thousands of Malaysians, Bernama says. Last year, more than 200,000 Malaysians visited the province. 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, due to high fuel and operating costs, and unprofitable routes. In late February 2006, it unveiled a radical rescue plan to raise MYR4 billion in order to stay afloat and return to profitability by 2007. Under the restructuring plan, the airline pledged to cut its budget by 20% across the board, terminate many unprofitable routes, freeze recruitment except for front-line staff, crack down on corruption by encouraging Whistle-blowing and stop corporate sponsorship. MBF HOLDINGS: Unit Strikes Deal to Buy PNG Assets ------------------------------------------------- MBf Holdings Berhad's Papua New Guinea subsidiary -- WR Carpenter (PNG) Limited -- had entered into a Sale and Purchase Agreement with relevant parties for the purchase of 100% equity interest in Courts PNG Limited. The cash consideration for the equity interest comprising 400,000 ordinary shares in Courts ONG was US$1per share, while the cash consideration for other assets comprising intellectual property rights and an inter-company loan due from Courts PNG was US$1 each. Courts PNG -- which engaged in the retailing of electronic appliances and household furnishings -- was insolvent and went into administration on November 30, 2004. The MBf Group is currently operating the same retail business in Fiji and believes that this acquisition will augment well for the expansion of the business in Papua New Guinea. In addition, Courts PNG owns some buildings that can be used for WR Carpenter's existing operations. Based on the fair value assessment, the acquisition increased the net tangible assets of MBf Holdings by approximately MYR11.4 million. Courts PNG is expected to contribute towards the future earnings of the Group. About MBf Holdings Headquartered in Selangor Darul Ehsan, Malaysia, MBf Holdings Berhad is involved in retailing and wholesaling of merchandise, shipping, automotive and heavy earthmoving equipment and printing of packaging boxes. Its other activities include copra, cocoa, coffee and tea production, issuing of credit cards, acquiring merchants and other related services, provision of financial services, provision of property management, investment in properties, property development including dealing in land and estate management, club management, development and sale of membership of a recreational club, education and investment holding. The Group's operations are carried out in Malaysia, other Asean countries including Singapore, Thailand and Philippines, Hong Kong, South Pacific Islands, Australia and United States of America. Over the years of 1997 and 1998, the ravages of the Asian economic crisis adversely affected the operations of the MBf Group. Given the substantial debt and accumulated losses suffered, MBf Holdings sought protection under Section 176(1) of the Companies Act 1965. MBf Holdings obtained court orders to propose a scheme of arrangement to restructure its borrowings with its lenders and selected creditors and to restrain its creditors from commencing recovery action. The Scheme was completed on June 30, 2003. Included in the Scheme was a debt- restructuring scheme, which excluded the lease, hire-purchase liabilities, general unsecured liabilities and amounts owing to subsidiary and associated companies. The lease, hire-purchase and general liabilities were to be addressed in the ordinary course of business. However, the Scheme made no provision for the settlement of the Inter-company Loans, which the Group is now having problems with. METROPLEX BERHAD: Court to Hear Judgment Appeal on Sept. 15 ----------------------------------------------------------- The Kuala Lumpur High Court adjourned to September 15, 2006, the hearing of Metroplex Project Management Sdn Bhd's application to set aside a default judgment. The Judgment relates to a wind-up petition filed before the Kuala Lumpur High Court on March 23, 2006, by solicitors of petitioner Lau Ah Kow and Choong Bee Yok against Metroplex Berhad's wholly owned subsidiary. The Petitioners assert a MYR56,437 claim covering arrears of rental of Parcel No. A13/C5, Chancellor Condominium, which was leased by Metroplex Projects. Aside from the Judgment Sum, the Petitioners had asserted an 8% annual interest accrued from the date of default judgment on July 14, 2005, until the date of full and final settlement. The Petitioners also claim MYR1,182 as payment for other costs. The wind-up petition against Metroplex Project was fixed for mention before the Court on October 20, 2006. 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 against the Company with 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 Metroplex is currently working out a debt-restructuring scheme. In the event the wind-up petition succeeds, the Company will be put into liquidation. Metroplex Berhad's April 30, 2006, balance sheet revealed total liabilities of MYR1,417,778,000 exceeding total assets of MYR1,214,518,000, resulting into a shareholders' equity deficit of MYR203,260,000. PARK MAY: Complies with Public Spread Requirement ------------------------------------------------- Park May Berhad's public shareholding spread as of June 30, 2006, was 50.63%, comprising 2,769 public shareholders holding not less than 100 shares each. Therefore, Park May has complied with the public shareholding spread requirement pursuant to the Listing Requirements of Bursa Malaysia Securities Berhad. 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 MYR38.9 million and total liabilities of MYR92.1 million. TENCO BERHAD: Complies with Public Spread Requirement ----------------------------------------------------- Tenco Berhad's public shareholding spread as of June 30, 2006, stands at 66.58% of the total shareholding in the hands of 3,810 public shareholders. Accordingly, Tenco has complied with the level of public shareholding spread as prescribed under the Listing Requirements of Bursa Malaysia Securities Berhad wherein a listed issuer must have at least 25% of its listed shares in the hands of a minimum of 1,000 public shareholders holding not less than 100 shares each. About Tenco Berhad Headquartered in Selangor, Malaysia, Tenco Berhad's principal activities are manufacturing and selling of polymer, chemicals, adhesive, decorative coatings and related products, building materials, equipment and consumer products. Other activities include investment holding and provision of management services. The Group operates in Malaysia, Singapore and Canada. Tenco is classified as a Practice Note 17 company and was ordered by the Bursa Malaysia Securities Berhad to formulate a plan to regularize the Company's financial condition. The Company fell into the PN17 classification because its current shareholders' equity on a consolidated basis is less than 25% of its issued and paid up capital, and it defaulted on various loan facilities and is unable to provide a solvency declaration. Tenco is required to submit its regularization plan to relevant authorities not later than January 8, 2007. TRU-TECH HOLDINGS: Defaults on Monthly Sinking Fund Deposit ----------------------------------------------------------- Tru-Tech Holdings Berhad will not be able to make the monthly deposit of MYR1,500,000 due on June 17, 2006, into the sinking fund account maintained for the purposes of redemption of the MYR55,000,000 redeemable unsecured loan stock, due to Tru-Tech's current tight cash flow position. There has been no material development in respect of the Company's default pursuant to Practice Note 1/2001. The principal outstanding of all other credit facilities granted to Tru-Tech and its subsidiaries as of June 30, 2006, is MYR61,459,529. About Tru-Tech Holdings Headquartered in Ulu Tiram Johor, Malaysia, Tru-Tech Holdings Berhad's principal activity is the manufacturing of electronic components and products. Its other activities include development and distribution of switch-mode power supplies and investment holding. The Group operates in Malaysia, Singapore, United States and United Kingdom. On May 27, 2004, Tru-Tech announced a series of proposed corporate exercises to address its losses. These include the incorporation of a new entity as Tru-Tech's holding company, and the disposal of its existing contract-assembly business to a third party. Much of Tru-Tech's future performance will hinge on its ability to restructure its debts and resolve its poor liquidity. Bursa Malaysia Securities Berhad, on May 26, 2006, decided to suspend trading in the securities of Tru-Tech Holdings Berhad from June 5, 2006, as the Company has failed to regularize its financial condition pursuant to the Bourse's Listing Requirements. The Company's March 31, 2006, balance sheet showed total assets of MYR43,930,000 and total liabilities of MYR131,614,000, resulting into a stockholders' deficit of MYR87,684,000. ===================== P H I L I P P I N E S ===================== BANCO DE ORO: First Quarter Income Hikes Up 25% ----------------------------------------------- Banco de Oro Universal Bank posted an unaudited net income of PHP706.5 million for the first quarter of 2006, an increase of 25% from the PHP566.2 million net income posted for the same period last year, the Company said in a press release. Net interest income for the three months ended March 31, 2006, rose 12% to PHP1.8 billion from the PHP1.6 billion in the first three months of 2005, due to a 16% expansion in the Bank's balance sheet. Non-interest income grew by 51% to PHP1.2 billion due to higher securities trading and strong service fees derived from trust, loan underwriting, cash management and insurance services. Pre-tax Operating Profit for the quarter amounted to PHP716.4 billion, representing a 24% growth year-on-year. Operating expenses for the first quarter of 2006 stood at PHP2 billion, higher by 44% compared to year-ago levels. The increase in operating expenses is primarily due to higher manpower and occupancy costs supporting both product and branch expansion. The Bank's NPL ratio of 4.4% is among the best in the industry. Loan coverage ratio, on the other hand, is now at 102% of non-performing loans. Total resources as of March 31, 2006, stood at PHP237.7 billion, an increase of 16% compared to the same period last year. Deposits expanded by 17% to PHP165.2 billion. The Bank's net loans and other receivables grew by 10% to PHP108.1 billion primarily from the expansion in receivables from customers. Capital Funds posted PHP22.03 billion improvement during the first quarter while Capital Adequacy Ratio remains strong at 19.1%. Banco de Oro's financial report for the quarter ended March 31, 2006, is available for free at: http://bankrupt.com/misc/BDO_17Q_Mar2006.pdf About Banco de Oro Banco de Oro Universal Bank -- http://www.bdo.com.ph/-- provides a wide range of corporate, commercial and retail banking services in the Philippines, which include traditional loan and deposit products, as well as treasury, trust banking, investment banking, cash management, insurance, remittance, retail cash cards and credit card services. Banco de Oro is a member of the SM Group of Companies, one of the Philippines' largest conglomerates, and is currently ranked among the top 10 banks in the Philippines in terms of assets, capital, deposits and loans. Its asset quality indicators (non- performing loans & non-performing assets) are among the lowest in the industry. The Company's affiliated undertakings are BDO Capital & Investment Corporation, BDO Financial Services, Inc., BDO Insurance Brokers, Inc., BDO Card Corporation, BDO Realty Corporation, BDO Private Bank, Inc., BDO Securities Corporation, BDO Remittance Ltd., Generali Pilipinas Holding Company, Inc., and SM Keppel Land, Inc. * * * Moody's Investors Service gave Banco de Oro's Senior Unsecured Debt a Ba3 rating effective May 25, 2006. EQUITABLE PCI: Posts 25% Increase in First Quarter Net Income ------------------------------------------------------------- Equitable PCI Bank reported a total net income of PHP711 million for the quarter ended March 31, 2006, 25% higher than the PHP567-million income reported for the same quarter in 2005, according to the Bank's regulatory filing with the Philippine Stock Exchange. Net income attributable to equity holders of Equitable Bank amounted to PHP710 million, also 25% more than the PHP567- million figure for the first quarter of 2005. Interest income grew 2% to PHP4.7 billion in the first quarter this yeas, as interest on loans and receivables remained at PHP2.9 billion. Interest on trading and investment securities, interbank loans and deposits with other banks grew 5% to PHP1.8 billion. Other income rose to PHP2.2 billion in the first quarter of 2006, or 24% more than the figure reported in the same period last year. The increase was mainly due to a PHP255-million hike in trading gains and foreign exchange profits to PHP637 million. Service charges, fees and commissions increased by PHP121 million to PHP1.2 billion. Growth in other expenses was contained at 9% to PHP3.3 billion. Compensation and fringe benefits grew 6% to PHP978 million, largely due to merit increases and promotions, and additional contributions to the retirement fund in compliance with new accounting standards. The Bank also revealed these ratios, which measure its financial performance: 03/31/2006 12/31/2005 Return on Equity (%) 14.46% 10.57% Return on Assets (%) 0.97% 0.88% Net Interest Margin (%) 4.30% 4.35% Efficiency Ratio (%) 67.63% 61.24% NPL Ratio 4.71% 4.50% Equitable PCI Bank's total resources at the end of March 2006 stood at PHP317 billion, PHP645 million more than the end-2005 level of PHP316.4 billion. Capital funds stood at PHP38.3 billion at the end of March 2006, up by 2% as earnings were mainly retained in the bank. Equitable PCI Bank's financial report for the quarter ended March 31, 2006, is available for free at: http://bankrupt.com/misc/EPCI_17Q_Mar2006.pdf About Equitable PCI Equitable PCI Bank, Inc. -- http://www.equitablepci.com/-- is a universal bank formed from the consolidation of Equitable Banking Corporation and PCI Bank on September 2, 1999. EBC and its subsidiaries provide a wide range of commercial, corporate, and retail banking and financial services, including lending and deposit taking, branch banking, international banking, electronic banking, trade finance, cash management, and trust and treasury services. Aside from commercial banking, the Bank also capitalizes in credit card, investment banking, leasing, trust banking, and remittance business. * * * Moody's Investors Service gave Equitable PCI Bank's Subordinated Debt and Long Term Bank Deposits 'Ba3' ratings effective May 25, 2006. Standard & Poor's Rating Service gave Equitable PCI Bank's senior unsecured debt a 'B' rating and its subordinated debt a CCC+ rating. MAYNILAD WATER: CA Orders to Reinstate Employees' Status -------------------------------------------------------- The Court of Appeals issued a ruling on July 18, 2006, ordering Maynilad Water Services Inc. to reinstate five employees who were illegally demoted from their supervisory status in 2001, Manila Standard Today writes. The five employees are: 1. Armando Buco, 2. Oscar Leonor, 3. Edna Leyno, 4. Serafin Obrero, and 5. Anicia Trinidad. They were hired by Maynilad on a probationary basis effective Aug. 1, 1997, the same day it took control of the Metropolitan Water Works & Sewerage System's West Zone Service Area. On August 3, 2004, the National Conciliation & Mediation Board's voluntary arbitrator ordered the Company to acknowledge their supervisory status prior to being absorbed from MWSS. The Standard reports that Associate Justice Mariflor Punzalan Castillo issued a 16-page decision affirming the arbitration ruling, and rejected the Company's claim that the five employees were considered as rank-and-file employees and were therefore not entitled to benefits to supervisors under a collective bargaining agreement between the Company and labor union Maynilad Water Supervisors' Association. * * * Maynilad Water Services Inc., formerly known as Benpres- Lyonnaise Waterworks, Inc., was incorporated on January 22, 1997 as a joint venture between the Parent Company and Suez-Lyonnaise Des Eaux (now known as Suez Environnement), primarily to bid for the operation of the privatized system of waterworks and sewerage services of the Metropolitan Waterworks and Sewerage System for Metropolitan Manila. According to a report by the TCR-AP on Nov. 19, 2003, the Company filed for corporate rehabilitation with the Quezon City Regional Trial Court, saying it could not pay its debts after an international arbitration panel's decision regarding the early termination of Maynilad's water concession agreement with Metropolitan Waterworks & Sewerage System. On Aug. 6, 2004, the Rehabilitation Court directed Maynilad Water to submit a revised rehabilitation plan based on a full draw of a US$120-million performance bond within a non- extendable 30-day period or until September 6, 2004. On Sept. 9, 2004, Maynilad Water, its shareholders, MWSS, and the Department of Finance set out their intents in a Memorandum of Understanding relating to the restructuring of: -- the financial obligation of Maynilad Water with various banks; and -- the unpaid Concession Fees of Maynilad Water under the Concession Agreement. Debt Capital and Restructuring Agreement On April 29, 2005, Maynilad Water, its shareholders, bank creditors, and MWSS executed a debt capital and restructuring agreement to set out the terms and conditions of their understanding and to govern their respective rights and obligations in connection with the restructuring of the debt and capital of Maynilad Water. The DCRA provides, among others, the capital restructuring and restructuring of debt and concession fees of Maynilad Water, and will take effect upon the satisfaction of precedent conditions set forth in the DCRA, including Court approval. The Rehabilitation Court approved the DCRA on June 1, 2005, and the DCRA was effected on July 20, 2005. METROPOLITAN BANK: First Quarter Net Income Increases 12.7% ----------------------------------------------------------- Metropolitan Bank & Trust Company posted a consolidated unaudited net income of PHP1.8 billion for the quarter ended March 31, 2006, up 12.7% from the PHP1.6 billion net income posted for the same quarter in 2005, according to the bank's first quarter report filed with the Philippine Stock Exchange. Net interest income, which represents 51.44% of the Metrobank Group's net interest income and other income, improved by PHP192.54 million or 4.28%, as interest income rose by PHP554.90 million or 6.30% while interest expense increased by PHP362.37 million or 8.42%. Provision for impairment losses booked for the first quarter of 2006 amounted to PHP1.75 billion, while PHP651.75 million was provided for the same period in 2005, or an increase of PHP1.10 billion. Other income represented 48.56% of the Group's total net interest income and other income. Other income improved by PHP1.43 billion or 47.50% from PHP3.00 billion for the first quarter of 2005 to PHP4.43 billion for the first quarter of 2006. The improvement in other income is mainly due to the trading gains realized by Metrobank, as the parent company, and its savings bank subsidiary from trading of government securities. Other expenses increased by PHP328.14 million or 6.46% to PHP5.41 billion in the 2006 first quarter from PHP5.08 billion in the 2005 first quarter. Metrobank closed the first quarter of 2006 with unaudited consolidated total resources of PHP570.47 billion, PHP15 billion or 2.56% lower than the audited consolidated total resources of PHP585.47 billion at the end of 2005. About 75.76% of the Metrobank Group's total resources consist of amounts due from the Philippine Central Bank, interbank loans receivable and securities purchased under resale agreements-net, available-for- sale investments, loans and receivables-net, and investment properties, which represent 5.04%, 9.94%, 13.07%, 45.60% and 5.61% of the Group's total resources, respectively. Total liabilities dropped by 4.27%. Deposit liabilities account for about 82.94% of the Group's total liabilities. Metrobank's financial report for the quarter ended March 31, 2006, is available for free at: http://bankrupt.com/misc/MBT_17Q_Mar2006.pdf About Metrobank Metropolitan Bank and Trust Company -- http://www.metrobank.com.ph/-- is the flagship company of the Metrobank Group. Metrobank provides a host of deposit, savings, and loan products as well as electronic banking services like internet banking, mobile banking, and phone banking, as well as its huge ATM network. Metrobank is also the leading provider of trade finance in the country, and its overseas branch network has enabled it to service the fund remittances of Filipino overseas contract workers. The bank has 583 local branches and 35 international branches and offices located in Taiwan, China, Japan, Korea, Guam, United States, Hong Kong, Singapore, Bahamas, and in Europe. * * * On March 3, 2006, Troubled Company Reporter - Asia Pacific reported that Standard and Poor's Rating Service assigned a CCC+ rating on its US$125-million non-cumulative capital securities, whereas Moody's Investors Service Rating Agency issued a B- rating on the same capital instruments. Moreover, Moody's gave Metrobank a Ba3 Foreign Long Term Bank Deposits and Subordinated Debt Rating effective May 25, 2006. Fitch Ratings gave Metrobank a B- Subordinated Debt Rating. METROPOLITAN BANK: Wants Stronger Remittance Business in Europe --------------------------------------------------------------- As part of its efforts to strengthen its position as a lead player in the international remittance market, Metropolitan Bank & Trust Company recently consolidated its operations in Europe handled by its remittance subsidiaries. Metrobank's remittance companies include: -- Metro Remittance Center, S.A., in Spain, with another office in Barcelona; -- Metro Remittance Center (Italia) S.p.A. in Italy with offices in the key cities of Rome, Milan and Bologna; -- Metro Remittance UK in London; and -- MBTC Exchange Service GmbH in Vienna, Austria. The bank believes that the set-up will further strengthen its remittance business in Europe and allow it to tap new markets for its other products and services. Carmelita R. Araneta, head of Metrobank's International Offices and Subsidiaries Group, stated that the move enabled Metrobank to offer prompt and enhanced services to Filipino and Chinese markets in the European region. Ms. Araneta said that the bank also expects more business as a result of increased marketing efforts in the region. In Spain, for example, Metrobank embarked on aggressive marketing activities within the Chinese and Filipino communities. "This involves regular visits to far-flung areas where Filipino and Chinese nationals are established and the Bank's active participation in Filipino community sponsored events," explained Ms. Araneta. Metrobank currently enjoys market leadership in cities where it has presence and aggressively continues to develop remittance markets across the globe. About Metrobank Metropolitan Bank and Trust Company -- http://www.metrobank.com.ph/-- is the flagship company of the Metrobank Group. Metrobank provides a host of deposit, savings, and loan products as well as electronic banking services like internet banking, mobile banking, and phone banking, as well as its huge ATM network. Metrobank is also the leading provider of trade finance in the country, and its overseas branch network has enabled it to service the fund remittances of Filipino overseas contract workers. The bank has 583 local branches and 35 international branches and offices located in Taiwan, China, Japan, Korea, Guam, United States, Hong Kong, Singapore, Bahamas, and in Europe. * * * On March 3, 2006, Troubled Company Reporter - Asia Pacific reported that Standard and Poor's Rating Service assigned a CCC+ rating on its US$125-million non-cumulative capital securities, whereas Moody's Investors Service Rating Agency issued a B- rating on the same capital instruments. Moreover, Moody's gave Metrobank a Ba3 Foreign Long Term Bank Deposits and Subordinated Debt Rating effective May 25, 2006. Fitch Ratings gave Metrobank a B- Subordinated Debt Rating. METROPOLITAN BANK: Reorganizes Management Structure --------------------------------------------------- Metropolitan Bank & Trust Company has unveiled major changes in its management team, with founder George S. K. Ty taking the helm as chairman of the Metrobank Group of Companies. Antonio S. Abacan, Jr., was elected as the bank's chairman and Arthur Ty was named as its president at an organizational meeting of the Board of Directors. Mr. Abacan has been Metrobank's president for 14 years before being named chairman. Together with George Ty, he has overseen its growth as the country's largest financial institution with over PHP585 billion in resources. Mr. Ty has worked for the bank in various capacities for over 15 years -- from account officer at corporate banking to executive vice-president as head of the consumer lending group. He is concurrently vice-chairman of Philippine Savings Bank and director of Metrobank Card Corporation. According to Metrobank, the change in leadership signals what analysts say could lead to a more aggressive strategy for the bank. Industry pundits view this development to be positive for Metrobank and its clients as it ensures a smooth transition and continuity in the group's plans. Rounding out the changes at the Board, Francis C. Sebastian and Henry M. Sun were elected as Metrobank's vice-chairmen. Mr. Sebastian is the president of First Metro Investment Corporation while Mr. Sun is the senior executive vice-president and head of the Metrobank's National Branch Banking Sector. Former vice-chairman Placido L. Mapa, Jr., will take on a new role as chairman of the Metrobank Board of Advisers. Senior executive vice-president Angelito M. Villanueva was also elected as Director of the Board. About Metrobank Metropolitan Bank and Trust Company -- http://www.metrobank.com.ph/-- is the flagship company of the Metrobank Group. Metrobank provides a host of deposit, savings, and loan products as well as electronic banking services like internet banking, mobile banking, and phone banking, as well as its huge ATM network. Metrobank is also the leading provider of trade finance in the country, and its overseas branch network has enabled it to service the fund remittances of Filipino overseas contract workers. The bank has 583 local branches and 35 international branches and offices located in Taiwan, China, Japan, Korea, Guam, United States, Hong Kong, Singapore, Bahamas, and in Europe. * * * On March 3, 2006, Troubled Company Reporter - Asia Pacific reported that Standard and Poor's Rating Service assigned a CCC+ rating on its US$125-million non-cumulative capital securities, whereas Moody's Investors Service Rating Agency issued a B- rating on the same capital instruments. Moreover, Moody's gave Metrobank a Ba3 Foreign Long Term Bank Deposits and Subordinated Debt Rating effective May 25, 2006. Fitch Ratings gave Metrobank a B- Subordinated Debt Rating. METROPOLITAN BANK: Signs PHP3B Notes Facility Deal with SM Prime ---------------------------------------------------------------- Metropolitan Bank & Trust Company and SM Prime Holdings, Inc., have signed a facility agreement wherein SM Prime will issue PHP3-billion floating rate notes due 2011. The FRN, arranged as a private placement, was funded solely by Metrobank. First Metro Investment Corporation acted as the Arranger. The FRN is the largest fund raising of this nature in the local debt market in recent years, the bank said. Proceeds from the issue will be used by SM Prime for general corporate requirements. The SM Prime FRN is among the major contracts signed recently by the Metrobank Group. Metrobank is seen to do more sizeable and important deals with top-tier companies as part of its growth strategy. Recently, it reorganized its Account Management Group to cater to different market segments including top tier corporates, multinationals, middle markets, and entrepreneurial entities. About SM Prime SM Prime Holdings, Inc., a part of the SM Group of Companies, is the largest mall operator in the Philippines. It was incorporated on January 6, 1994, to develop, conduct, operate and maintain the SM commercial shopping centers and all related businesses, such as the lease of commercial spaces within the compound of shopping centers. The Company's main sources of revenues include rental income from mall and food courts, cinema ticket sales and amusement income from bowling and ice-skating. SM Prime currently has 25 SM Supermalls strategically located nationwide with a total gross floor area of 3.4 million square meters. About Metrobank Metropolitan Bank and Trust Company -- http://www.metrobank.com.ph/-- is the flagship company of the Metrobank Group. Metrobank provides a host of deposit, savings, and loan products as well as electronic banking services like internet banking, mobile banking, and phone banking, as well as its huge ATM network. Metrobank is also the leading provider of trade finance in the country, and its overseas branch network has enabled it to service the fund remittances of Filipino overseas contract workers. The bank has 583 local branches and 35 international branches and offices located in Taiwan, China, Japan, Korea, Guam, United States, Hong Kong, Singapore, Bahamas, and in Europe. * * * On March 3, 2006, Troubled Company Reporter - Asia Pacific reported that Standard and Poor's Rating Service assigned a CCC+ rating on its US$125-million non-cumulative capital securities, whereas Moody's Investors Service Rating Agency issued a B- rating on the same capital instruments. Moreover, Moody's gave Metrobank a Ba3 Foreign Long Term Bank Deposits and Subordinated Debt Rating effective May 25, 2006. Fitch Ratings gave Metrobank a B- Subordinated Debt Rating. ================= S I N G A P O R E ================= AMAZON TIMBER: Court to Hear Wind-Up Petition on July 28 -------------------------------------------------------- The Management Corporation Strata Tile Plan No. 446 on July 4, 2006, filed before the High Court of the Republic of Singapore an application to wind up Amazon Timber Agency (Pte) Limited. The High Court will hear the wind-up petition on July 28, 2006, at 10:00 a.m. The Petitioner's solicitor can be reached at: M/s David Ong & Co. 151 Chin Swee Road #08-14, Manhattan House Singapore 169876 APAC TECH: Enters Wind-Up Proceedings ------------------------------------- On June 30, 2006, Evosys Technology Private Limited filed with the High Court of Singapore a petition to wind up Apac Tech Systems Private Limited. The solicitors for the Plaintiff can be reached at: Ang & Partners 150 Beach Road #32-00 The Gateway West Singapore 189720 ASIA-PACIFIC BULK: Pays Dividend to Creditors --------------------------------------------- Asia-Pacific Bulk Terminal Services Pte Limited has paid its first and final dividend to creditors on July 14, 2006. The creditors received 2.48 cents to a dollar on all their admitted claims. The liquidators can be reached at: Ramasamy Subramaniam Iyer Goh Thien Phong Chan Kheng Tek Liquidators c/o PricewaterhouseCoopers 8 Cross Street #17-00 PWC Building Singapore 048424 CIVIL GEO: Wind-Up Petition Hearing Slated for July 28 ------------------------------------------------------ Nan Guan Metal Industrial Pte Limited, on June 30, 2006, filed before the High Court of Singapore a petition to wind up Civil Geo Pte Limited. The High Court will hear the wind-up petition on July 28, 2006, at 10:00 a.m. The Plaintiff's solicitors can be reached at: Messrs Asialegal Llc 20 Cecil Street #18-01, Equity Plaza Singapore 049705 LIANG HUAT: Appoints Independent Financial Adviser -------------------------------------------------- Liang Huat Aluminium Limited appointed MS Corporate Finance Pte Ltd as its independent financial adviser on July 18, 2006. MS Corporate will advise independent shareholders on the proposed whitewash resolutions, which were obtained by new investor Ho Lee Group Pte Limited and associates from the Securities Industry Council on June 2006. As such, Ho Lee and its partners will not be required to make a mandatory general offer for all the remaining shares in Liangu Huat, which they do not already own, following the allotment and issuance of new Shares by the Company to Ho Lee. The Troubled Company Reporter - Asia Pacific recounts that the Ho Lee Group Pte Limited, and parties acting in concert with it, have obtained a whitewash waiver from the Securities Industry Council on June 2006. As such, Ho Lee and its partners will not be required to make a mandatory general offer for all the remaining shares in Liang Huat, which they do not already own, following the allotment and issuance of new Shares by the Company to Ho Lee. The Whitewash Resolution is subject to these conditions: * a majority of the Company's independent shareholders being present and voting at a general meeting held before the allotment of shares, approving a resolution to waive their rights to receive a general offer from the Ho Lee Group to acquire all the issued shares in the Company; * the Ho Lee Group abstaining from voting on the Whitewash Resolution; and * the Company appointing an independent financial adviser to advise the Independent Shareholders on the Whitewash Resolution. On April 13, 2006, entered into a conditional investment agreement with Ho Lee Group for a subscription of new shares in the Company representing a controlling stake by Ho Lee. Under the Investment Agreement, the cash consideration in respect of the Investment is SGD3,000,000 and is to be satisfied in full by the allotment and issuance of 70% of all issued ordinary shares of the Company on Completion credited as fully paid up. Upon completion of the Investment Agreement, Ho Lee will own 70% of all issued ordinary shares of the Company after taking into account the number of shares that will be issued pursuant to the modified restructuring scheme and Investment Agreement. The completion of the Investment will take place five business days after the fulfillment of the conditions precedent in the Investment Agreement or such other date as the Investor and the Company may agree in writing. The Investment will be subject to the Company and the Purchaser obtaining the necessary requisite regulatory and other approvals, consents and waivers, which are set out in their entirety in the Investment Agreement, which include: -- the Modified Schemes having been duly approved by the relevant Scheme Creditors and approved and sanctioned by the High Court and the respective Orders of Court relating to the approval of the respective Modified Scheme be lodged with the relevant authorities; -- the Company having obtained approval from the High Court to sanction the capital reduction of the Company; -- all necessary approvals by the Shareholders of the respective Modified Schemes, capital reduction, capital amalgamation, and the issuance of shares to the Investor; and -- the Investor not being obliged to make a takeover offer to the remaining shareholders of the Company in respect of all the remaining shares not already owned by the Investor or his concert party or parties, and if applicable, the grant of waiver by the Securities Industry Council from the requirements to make a general takeover offer to the remaining shareholders of the Company. In the event that any of the conditions precedent in the Investment Agreement cannot be fulfilled and are not waived by the Investor or if the completion does not occur for any reason by December 31, 2006, or such other date as the Investor and the Company may mutually agree other than by reason of a breach by the Investor of its obligation to complete, the Investor will be entitled to such number of conversion shares constituting 29.0% of all the allotted and issued shares of the Company. The Company will make prompt and timely announcements of further developments concerning the Modified Schemes and Investment Agreement. About Liang Huat Aluminium Limited Liang Huat Aluminium -- http://www.lianghuatgroup.com.sg/-- is a vertically integrated, professionally run group of companies focusing on producing high quality aluminum products and processed glass for both the industrial and construction industries. It also supplies and installs aluminum and processed glass for major commercial and residential projects mainly in Singapore. Liang Huat was the subject of a wind-up petition filed by Lim Ah Siong trading as Lian Siong Aluminium & Trading on August 26, 2004. Presently, the Company is undergoing a financial restructuring exercise. It is also working a Scheme of Arrangement with its major creditor banks. =============== T H A I L A N D =============== CIRCUIT ELECTRONICS: SEC Files Fraud Action Against Five Execs -------------------------------------------------------------- Five executives of Circuit Electronics are facing criminal complaints from the Securities and Exchange Commission for their alleged involvement of a fraud case worth THB3.44 billion, The Nation reports. According to the SEC Complaint, the five top executives were suspected of criminal violations of the SEC Act, including embezzlement, falsifying documents and accounting fraud. The five Circuit Electronics executives who are facing the SEC Action are: 1. Siva Nganthawee, Chairman and Chief Executive Officer; 2. Watjana Bhukaswan, Vice-Chairman; 3. Sukit Nganthawee, Director; 4. Lee Wolff, Managing Director; and 5. Somboon Krishchanchai, Company Executive. The Nation relates that the SEC found that the Company's supposed foreign debtor, whom Circuit claimed had failed to settle THB3.44 billion in debts between 2003 and 2005, did not exist. In addition, The Nation notes that there is evidence that the five executives took part in irregularities, as they were associated with the establishment of a company set up to collect money from Circuit's customers. Meanwhile, The Bangkok Post said that the SEC had already forwarded the information to the Department of Special Investigation for legal action and had blacklisted all five executives from holding positions in any listed company. * * * Headquartered in Amphoe Uthai Ayutthya, Thailand, Circuit Electronics Public Co. Limited -- http://www.cei.co.th/-- manufactures and exports various integrated circuit and chip on board for many kinds of electronic equipment such as mobile phone, computer, automobile assembly, household electronic equipment and others. The Group operates in the United States of America, Europe and Asia. Circuit Electronics Industries Plc reported a net loss of THB1.65 billion in fiscal year 2005, compared with the THB1.55-billion net loss in 2004. TOTAL ACCESS: Fitch Affirms BB+ LT Foreign Issuer Default Rating ---------------------------------------------------------------- Fitch Ratings has assigned on July 18, 2006, a National Long- term debt rating of A(tha) to Thailand-based Total Access Communication Plc's up to THB6 billion in new senior unsecured debentures. At the same time, the agency affirmed DTAC's Long- term foreign currency Issuer Default Rating at BB+ and National Long-term rating at A(tha). The company's National Short-term rating was also affirmed at F1(tha). The Outlook on the ratings is Stable. The new debentures will be used to fund DTAC's working capital and investment requirements as well as to refinance its maturing debt. The ratings reflect DTAC's: * strong market position * relatively solid financial position; and * the high level of commitment from Telenor ASA of Norway. Telenor ASA is expected to result in an improvement in DTAC's financial flexibility and maintenance of a more conservative financial profile. As a result of an aggressive marketing campaign, DTAC was able to report record high net new subscribers of 1.15 million in Q106 (representing 60% market share of total net new subscribers). Although the largest operator, Advanced Info Service Plc, has stepped up its promotional activities since March 2006, Fitch views that DTAC should be able to defend its 30% market share in cumulative subscriber base thanks to its continued active marketing drive and expansion in network coverage. The ratings also take into account that the competition in Thailand's cellular market will remain intense with operators fighting for new subscribers in order to be prepared for the introduction of an interconnection regime, expected in early 2007. This is likely to result in a continued high network investments by operators. Other credit concerns include DTAC's higher regulatory cost structure and uncertainties over the regulatory environment of Thailand's telecoms industry, particularly the recent draft regulation on foreign domination. DTAC reported a relatively flat EBITDA of THB4.3 billion in Q106 as compared to the previous quarter. While its service revenues increased by 6% quarter on quarter to THB11.8 billion, this was offset by higher sales and marketing expenses resulting from stepped-up marketing activity as well as an increase in regulatory costs. The strong cash flow from operating activities plus moderate capex during the quarter led to a quarter on quarter decline in its net debt level to THB35.9 billion at end-March 2006, translating into net debt to last-12-month EBITDA of 2.2x. Although DTAC's debt level is likely to increase for the remaining of the year as the company keeps investing to improve its network, DTAC's continued strong operating performance should keep its net debt to EBITDA ratio at a moderate level of around 2.0x to 2.5x during 2006/2007. * * * DTAC is the second-largest cellular operator in Thailand with an approximately 30% market share and strong brand recognition. With Telenor's recent purchase of a 39.9% interest in United Communication Industry Plc and its subsequent tender offers for UCOM and DTAC shares, Telenor lifted its aggregate economic interest in DTAC to 70.2% from 40.3%. DTAC is Telenor's largest acquisition in Asia and it ranks second in terms of EBITDA contribution outside Norway. Standard and Poor's gave the Company a BB+ Long-term local and foreign issuer credit ratings. DTAC's local and foreign issuer credit were both given a Ba1 rating by Moody's Investor Service. * Exporters Told to Prepare for Volatile Financial Markets ---------------------------------------------------------- Virabongsa Ramangkura, chairman of the Export-Import Bank of Thailand, warned Thai exporters to brace themselves for rising volatility in the world financial markets and consumer markets on a recent seminar on export trends, The Nation reports. According to Dr. Virabongsa, export is the main growth engine of the Thai economy but rapid changes in the global economy will increase the pressure on exporters over the next several months. "All of our previous assumptions that oil prices would ease and US interest rates would flatten have proved wrong," The Nation cites Dr. Virabongsa as saying. "Today, oil is trading near US$80 per barrel, inflation in the US is picking up, and the US current-account deficit is at record highs." Dr. Virabongsa added that even though Thailand's production capacity was now running as high as 80%, new investment had stalled due to market volatility. He said the Exim Bank is seeking to assist exporters and support efforts to develop regional bond markets as a funding source for local companies. The Nation relates that the Asian bond initiative -- a region- wide program to strengthen Asian bond markets -- would assist Thai companies with expanding abroad and penetrating overseas capital markets, particularly in neighboring countries, like Laos and Cambodia. Benjawan Ratanaprayul, the deputy director-general of the Export Promotion Department, told The Nation that Thailand is the 24th largest exporter in the world, with a market share of 1.17% of global trade. Mr. Ratanaprayul said that high oil prices, baht appreciation and delays in finalizing negotiations for free-trade agreements with the U.S., Japan and other countries would all affect export performance this year. * Large Companies With Insolvent Balance Sheets ----------------------------------------------- Total Total Shareholders Assets Equity Company Ticker ($MM) ($MM) ------ ------ ------------ ------ AUSTRALIA Acma Engineering & Const. Group Limited ACX 21.39 -2.24 Allstate Explorations NL ALX 12.65 -51.62 Austar United Communications Ltd. AUN 231.54 -52.58 Global Wine Ventures Limited GWV 22.04 -0.84 Hutchison Telecommunications (Aust) Ltd. HTA 1696.65 -786.31 Indophil Resources NL IRN 37.79 -69.96 Intellect Holdings Limited IHG 23.98 -11.13 Namberry Limited NMB 15.12 -4.26 Orbital Corporation Limited OEC 14.01 -4.86 RMG Limited RMG 22.33 -2.16 Stadium Australia Group SAX 132.81 -45.03 Tooth & Company Limited TTH 99.25 -74.39 Tourism, Hotels & Leisure Ltd. TLC 15.76 -0.66 CHINA AND HONG KONG Artel Solutions Group Holdings Limited 931 29.19 -18.65 Asia Telemedia Limited 376 10.89 -5.50 Anhui Feicai Vehicle Co. Ltd. 887 129.80 -7.00 Bestway International 718 25.00 -0.67 Chang Ling Group 561 77.48 -76.83 Chengdu Book - A 600083 21.50 -3.07 China Liaoning International Cooperation Holdings Ltd. 638 25.79 -43.45 China Kejian Co. Ltd. 35 54.71 -179.23 Datasys Technology Holdings 8057 14.10 -2.07 Eforce Holdings Limited 943 10.31 -0.51 Everpride Biopharmaceutical Company Limited 8019 10.16 -2.16 Fujian Changyuan Investment Holdings Limited 592 31.36 -54.04 Gold-Face Holdings Limited 396 193.41 -28.41 Guangdong Meiya Group Company Ltd. 529 107.16 -49.54 Guangdong Sunrise Group Company Ltd-A 30 35.98 -182.94 Guangdong Sunrise Group Co. Ltd-B 200030 35.98 -182.94 Guangxi Wuzhou Zhongheng Group Co Ltd. 557 62.19 -115.50 Hainan Dadonghai Tourism 613 19.74 -5.81 Hainan Dadongh-B 200613 19.74 -5.81 Hainan Overseas Chinese Investment Co. Ltd. 600759 32.70 -15.28 Hans Energy Company Limited 554 94.75 -10.76 Heilong Jiang Long Di Co. Ltd. 832 134.62 -61.22 Heilongjiang Sun & Field Science & Tech. 620 29.96 -49.18 Heilongjiang Black Dragon Co. Ltd. 600187 121.30 -74.45 Hualing Holdings Limited 382 242.26 -28.15 Huda Technology & Education Development Co. Ltd. 600892 17.29 -0.19 Hunan Anplas Co., Ltd. 156 94.17 -65.04 Hunan GuoGuang Ceramic Co., Ltd. 600286 87.44 -68.55 Innovo Leisure Recreation Holdings Ltd. 703 13.68 -2.01 Jiangsu Chinese.com Co. Ltd. 805 15.86 -34.56 Jiangxi Paper Industry Co. Ltd 600053 19.58 -12.80 Loulan Holdings Limited 8039 13.01 -1.04 Magnum International Holdings Limited 305 10.35 -5.83 Mindong Electric Group Co., Ltd. 536 21.63 -1.50 New City (Beijing) Development Limited 456 151.61 -19.15 New World Mobile Holdings Ltd 862 215.47 -126.57 Orient Power Holdings Ltd. 615 176.86 -64.20 Plus Holdings Ltd 1013 24.00 -3.15 Prosperity International Holdings (HK) Limited 8139 10.73 -2.45 Shandong Jintai Group Co. Ltd. 600385 19.58 -12.18 Shanghai Xingye Housing Company Ltd 600603 14.90 -72.98 Shenyang Hejin Holding Company Ltd. 633 83.18 -20.87 Shenz China Bi-A 17 39.13 -224.64 Shenz China Bi-B 200017 39.13 -224.64 Shenzhen Dawncom Business Tech And Service Co., Ltd 863 79.84 -37.30 Shenzhen Shenxin Taifeng Group Co. Ltd. 34 95.27 -44.65 Shenzen Techo Telecom Co., Ltd. 555 14.84 -6.25 Sichuan Changjiang Packaging Holding Co. Ltd. 600137 13.11 -72.76 Sichuan Topsoft Investment Company Limited 583 113.12 -148.61 SMI Publishing Group Ltd. 8010 10.48 -7.83 Songliao Automobile Co. Ltd. 600715 49.56 -3.76 Sun's Group Manufacturing Company Limited 988 103.02 -72.80 Taiyuan Tianlong Group Co. Ltd 600234 13.47 -87.63 Theme International Holdings Limited 990 22.46 -0.77 UDL Holdings Limited 620 12.48 -7.15 Wealthmark International (Holdings) Limited 39 11.32 -2.43 Winowner Group Co. Ltd. 600681 38.03 -62.88 Xinjiang Hops Co. Ltd 600090 101.34 -135.99 Yantai Hualian Development Group Co. Ltd. 600766 59.99 -7.66 Yueyang Hengli Air-Cooling Equipment Inc. 622 49.89 -17.71 Zarva Technology Co. Ltd. 688 101.76 -102.01 INDIA PT Dharmala Intiland DILD 197.91 -6.62 INDONESIA Ades Waters Indonesia Tbk ADES 21.35 -8.93 Bukaka Teknik Utama Tbk BUKK 44.45 -107.00 Hotel Sahid Jaya SHID 71.05 -4.26 Jakarta Kyoei Ste JKSW 44.72 -38.57 Mulialand Tbk MLND 160.45 -19.82 Multibreeder Adirama Indonesia MBAI 64.54 -2.31 Pakuwon Jati Tbk PWON 188.41 -50.78 Panca Wiratama Sakti Tbk PWSI 39.72 -18.82 PT Steady Safe SAFE 19.65 -2.43 PT Toba Pulp Lestrari Tbk INRU 403.58 -198.86 PT Unitex Tbk UNTX 29.08 -5.87 PT Voksel Electric Tbk VOKS 44.01 -11.74 PT Wicaksana Overseas International Tbk WICO 84.36 -32.88 Sekar Bumi Tbk SKBM 23.07 -41.95 Steady Safe Tbk SAFE 19.65 -2.43 Suba Indah Tbk SUBA 85.17 -9.18 Surya Dumai Industri Tbk SUDI 105.06 -30.49 Unitex Tbk UNTX 29.08 -5.87 JAPAN Hanaten Co., Ltd. 9870 167.79 -1.63 Mamiya-OP Co., Ltd. 7991 152.37 -67.11 Montecarlo Co. Ltd. 7569 66.29 -3.05 Nihon Seimitsu Sokki Co., Ltd. 7771 23.82 -1.10 Sumiya Co., Ltd. 9939 89.32 -11.57 Tenryu Lumber Co., Ltd. 7904 187.75 -44.48 Tokai Aluminum Foil Co., Ltd. 5756 106.49 -12.55 Yakinikuya Sakai Co., Ltd. 7622 79.44 -11.14 MALAYSIA CHG Industries Bhd CHG 25.95 -41.38 Cygal Bhd CYG 57.63 -61.56 Comsa Farms Bhd CFB 63.60 -5.00 Consolidated Farms Berhad CFARM 38.50 -11.55 Emico Holdings Bhd EMI 42.56 -1.92 Jin Lin Wood Industries Berhad JLW 21.68 -1.74 Mentiga Corporation Berhad MENT 21.59 -13.41 Metroplex Bhd MEX 323.51 -49.28 Mycom Bhd MYC 227.68 -114.64 Lityan Holdings Bhd LIT 28.86 -8.43 Olympia Industries Bhd OLYM 255.84 -227.85 Panglobal Bhd PGL 189.92 -50.36 Park May Bhd PMY 11.04 -13.58 PSC Industries Bhd PSC 62.80 -116.18 Setegap Berhad STG 34.44 -12.54 Tru-Tech Holdings Berhad TRU 15.86 -16.71 Wembley Industries Holdings Bhd WMY 118.32 -176.02 PHILIPPINES APC Group Inc. APC 67.04 -163.14 Atlas Consolidated Mining and Development Corp. AT 32.94 -35.77 Cyber Bay Corporation CYBR 11.54 -58.06 East Asia Power Resources Corp. PWR 92.55 -64.61 Fil-Estate Corporation FC 33.30 -5.80 Filsyn Corporation FYN 19.20 -8.83 Filsyn Corporation FYNB 19.20 -8.83 Global Equities Inc. GEI 24.18 -1.81 Gotesco Land, Inc. GO 17.34 -9.59 Gotesco Land, Inc. GOB 17.34 -9.59 Prime Media Holdings Inc. PRIM 11.12 -15.52 Prime Orion Philippines Inc. POPI 98.36 -74.34 Swift Foods Inc. SFI 26.95 -8.23 Unioil Resources & Holdings Company Inc. UNI 10.64 -9.86 United Paragon Mining Corp. UPM 21.19 -21.52 Universal Rightfield Property Holdings Inc. UP 45.12 -13.48 Uniwide Holdings Inc. UW 61.45 -30.31 Victorias Milling Company Inc. VMC 127.83 -32.21 Vitarich Corporation VITA 75.04 -4.27 SINGAPORE ADV Systems Auto ASA 14.32 -8.54 China Aviation Oil (Singapore) Corporation CAO 211.96 -390.07 Compact Metal Industries Ltd. CMI 54.36 -25.64 Falmac Limited FAL 10.90 -0.73 Gul Technologies Singapore Limited GUL 152.80 -27.74 Informatics Holdings Ltd INFO 22.30 -9.14 L&M Group of Companies LNM 56.91 -10.59 Liang Huat Aluminium Ltd. LHA 19.30 -76.43 Lindeteves-Jacoberg Limited LJ 225.52 -53.23 LKN-Primefield Limited LKN 150.70 -12.72 Mae Engineering Ltd MAE 11.42 -7.79 PDC Corporation Limited PDC 11.63 -7.88 Pacific Century Regional PAC 1381.26 -107.11 See Hup Seng Ltd. SHS 17.36 -0.09 SOUTH KOREA C & C Enterprise Co. Ltd. 38420 28.05 -14.50 Cenicone Co. Ltd. 56060 36.82 -1.46 Everex Inc. 47600 23.15 -5.10 EG Greentech Co. 55250 186.00 -1.50 EG Semicon Co. Ltd. 38720 166.70 -12.34 Inno Metal Inc. 70080 28.56 -0.33 KP&L Company Limited 9810 15.03 -3.81 Radix Co. Ltd. 16160 53.78 -17.69 Quality & Tech 15260 32.33 -1.14 Shinil Industrial Co., Ltd. 2700 41.51 -3.44 Tong Yang Major 1520 2332.81 -86.95 THAILAND Bangkok Rubber PCL BRC 70.19 -56.98 Bangkok Rubber PCL BRC/F 70.19 -56.98 Central Paper Industry PCL CPICO 40.41 -37.02 Central Paper Industry PCL CPICO/F 40.41 -37.02 Circuit Electronic Industries PCL CIRKIT 20.37 -64.80 Circuit Electronic Industries PCL CIRKIT/F 20.37 -64.80 Daidomon Group Pcl DAIDO 12.92 -8.51 Daidomon Group Pcl DAIDO/F 12.92 -8.51 Datamat PCL DTM 17.55 -1.72 Datamat PCL DTM/F 17.55 -1.72 Diana Department Store Pcl DIANA 12.71 -1.71 Diana Department Store Pcl DIANA/F 12.71 -1.71 Everland Public Company Ltd EVER 56.71 -311.47 Everland Public Company Ltd EVER/F 39.12 -12.05 Hantex PCl HTX 7.51 -7.88 Hantex PCl HTX/F 7.51 -7.88 Kuang Pei San Food Products Public Co. POMPUI 12.51 -9.87 Sahamitr Pressure Container Public Co. Ltd. SMPC 20.77 -28.13 Sri Thai Food & Beverage Public Company Ltd SRI 18.29 -43.37 Sri Thai Food -F SRI/F 18.29 -43.37 Tanayong PCL TYONG 178.27 -734.30 Tanayong PCL -F TYONG/F 178.27 -734.30 Thai-Denmark PCL DMARK 21.37 -18.88 Thai-Denmark -F DMARK/F 21.37 -18.88 Thai-Wah PCL TWC 91.56 -41.24 Thai-Wah PCL -F TWC/F 91.56 -41.24 ********* 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 ***