/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/060727.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, July 27, 2006, Vol. 9, No. 148 Headlines A U S T R A L I A & N E W Z E A L A N D ABON PTY: Shuts Down Business Operations ARUBA PROPERTIES: Members to Hear the Wind-Up Report BARRORESH NO.1: Members Opt for Voluntary Wind-Up CARRAMAR TRANSPORT: To Declare Dividend for Priority Creditors CARTER HOLT: Commences Tender Offer of $300 Million Debentures CATHERINE CLEANING: Appoints Peter Ngan as Liquidator CHROME STILL: Enters Voluntary Liquidation CLIPSAL CONTROLGEAR: Liquidator to Present Wind-Up Report DALMATIAN PTY: Wind-Up Process Commenced D. & L. CLANCY: Members Resolve to Wind Up Firm ETNA PROPERTIES: Members and Creditors to Receive Wind-Up Report GDC COMMUNICATIONS: To Delist from the Sharemarket GLOVERS PRINTING: Members Opt to Shut Down Operations HUON CORPORATION: J. Schulz Still Absent from Court Hearing HUON CORPORATION: Workers Accept Rescue Package ILLALANGI INVESTMENTS: Anthony D'Aloia Ceases to Act for Firm J & P EMPLOYMENT: Enters Voluntary Wind-Up Process K & K INVESTMENT: Appoints Official Liquidator KNOWIT PTY: Federal Court Issues Wind-Up Order LINGFORD AUSTRALIA: Members to Receive Wind-Up Report MACBAR TRANSPORT: Supreme Court Orders Wind-Up MABUDMAC MANAGEMENT: Members Opt for Voluntary Wind-Up MACKENZIE STREET: Undergoes Voluntary Liquidation MAIDSTONE VINEYARD: Bank Appoints Receiver and Manager MAXWELL CORNISH: Names D. R. Vasudevan as Liquidator MIDDLECROSS PTY: Liquidator to Present Wind-Up Report NATIONAL FINANCE 2000: Loan Book in Arrears, Receiver Says PARMAR HOLDINGS: Prepares to Close Operations PEARS RITCHIE: Members to Hear Wind-Up Report on August 15 POWERFULL PTY: Members Pass Resolution to Wind Up Firm RICO ENGINEERING: To Declare Dividend for Unsecured Creditors RRA ENTERPRISES: Faces Liquidation Proceedings SERIMEX PTY: Initiates Wind-Up Operations SHERRING HOLDINGS: Members Agree to Voluntary Wind-Up Operations ST MARYS MOTOR: Names Ashton Brailey as Liquidator SUPERBANK: Set for Sale or Closure Due to NZ$40-Million Loss TECHRACK PTY: Members to Receive Wind-Up Report on August 11 WINAMEA PTY: Appoints Official Liquidator * Challenges Continue for Qld Electricity Companies, S&P Says C H I N A & H O N G K O N G ASIA PREMIUM: Current Deficit Falls by 21% ASSOCIATE MARBLE: Liquidator Ceases to Act for Company CHAODA MODERN: Moody's Affirms CF and FCD Ratings at Ba3 CLOROX FAR EAST: Joint Liquidators Step Aside COMPANION MARBLE: Liquidator Ceases to Act for Company FRANKLIN TEMPLETON: Shareholders' Final Meeting Set on Aug. 22 GOLDTRON M G: Creditors' Opt for Voluntary Wind-Up H.K. ZHEJIANG: Final Members Meeting Slated for Aug. 25 HAYES LIMITED: Joint Liquidators to Present Wind-Up Report HUTCHISON ENTERPRISES FOUR: Liquidators Step Aside HUTCHISON ENTERPRISES TWO: Liquidators Cease to Act for Company LANBO INDUSTRIAL: Shareholders Opt for Voluntary Wind-Up LEADING TOP: Creditors' Must Prove Debts by Aug. 21 LUCKY ASSET: Names Chow as Liquidator OCEAN GRAND: Authorities Confirm Fraud After Probe POLYWATER ASIA: Liquidator to Present Wind-Up Report on Aug. 22 SOUNDTEX INTERNATIONAL: Appoints Official Liquidator WINFUL CREDIT: Creditors' Proofs of Claim Due on Aug. 21 YASKAWA ELECTRIC: Bradley Ceases to Act as Liquidator * S&P Revises China's Insurance Sector Outlook to Positive I N D I A FORD MOTOR: Books US$123-Million Net Loss for 2nd Quarter 2006 HINDUSTAN PETROLEUM: Earmarks INR918 Crore for Expansion Plan GENERAL MOTORS: Secures New US$4.63-Billion Debt Facility * ASEAN Halts Free-Trade Talks with India I N D O N E S I A * S&P Raises Foreign Currency Rating to BB- K O R E A HANA BANK: Wants Higher Lending Rates For Higher Risk Homeowners HYNIX SEMICONDUCTOR: Sued by Spitzer for Price-Fixing SK CORP: Shutdowns Offset Record Sales; 2Q Profit Declines 22% M A L A Y S I A KRAMAT TIN: Scheme of Arrangement Wins Shareholders' Favor KRAMAT TIN: Prudent to Assume Kramat Tin Listing Status in 2007 KRETAM HOLDINGS: To List and Quote More Shares on July 28 MALAYSIA AIRLINES: Former PM Didn't Force Chairman to Buy Shares MALAYSIA AIRLINES: To Fly Dubai-Damascus Route Temporarily MBF CORPORATION: Public Spread Meets Listing Requirement MITHRIL BERHAD: MARC Puts Rating on Watch with Negative Outlook POLYMATE HOLDINGS: Bourse Denies Deadline Extension Request SETEGAP BERHAD: Court Extends Restraining Order Until October 23 * MIER Releases Report on Malaysian Economic Outlook P H I L I P P I N E S BANK OF PHILIPPINE ISLANDS: Reports 26.6% Rise in Q1 Net Income EXPORT & INDUSTRY BANK: Board OKs Supplement to MOA with PDIC GOTESCO LAND: SEC Orders Payment of Penalty for Late Filing MANILA ELECTRIC: 2Q Net Income Falls 31% to PHP1.12 Billion * Philippines Issues US$750 Million in Sovereign Bonds * S&P Affirms BB- Senior Unsecured Rating on Bonds S I N G A P O R E COMSERV PTE: Intends to Pay Dividend on August 4 DIGILAND INTERNATIONAL: Notes Changes in Shareholders' Interests KOREA LEASING: Accepting Proofs of Debt Until August 4 LEGACY HOLDINGS: Enters Wind-Up Proceedings QNITY NETWORKS: Creditors' Proofs of Debt Due on August 4 SEE HUP SENG: Inks Deal with Speedo Corrosion SUN-AEM PLATING: Creditors' Meeting Scheduled on July 31 VINARICH PTE: Creditors' Proofs of Claims Due by August 21 T H A I L A N D THAI NAM: Earns THB82.3-Million Net Profit in Ended Dec.31 - - - - - - - - ============================================ A U S T R A L I A & N E W Z E A L A N D ============================================ ABON PTY: Shuts Down Business Operations ---------------------------------------- At a general meeting of the members and creditors of Abon Pty Limited on June 29, 2006, it was resolved that a wind-up of the Company's business operations is appropriate and necessary. In this regard, Russell Heywood-Smith was appointed as liquidator. The Liquidator can be reached at: Russell Heywood-Smith BDO Chartered Accountants & Advisers 248 Flinders Street Adelaide, South Australia 5000 Australia ARUBA PROPERTIES: Members to Hear the Wind-Up Report ---------------------------------------------------- Members of Aruba Properties Pty Limited will hold a final meeting on August 11, 2006, at 9:00 a.m. to receive Liquidator David Paul Robinson's final account of the Company's wind-up operations. As reported by the Troubled Company Reporter - Asia Pacific, the Company commenced a wind-up of its operations on September 27, 2005. The Liquidator can be reached at: David Paul Robinson c/o Harveys Chartered Accountants Level 3, 2 Bulletin Place Circular Quay, Sydney New South Wales 2000 Australia BARRORESH NO.1: Members Opt for Voluntary Wind-Up ------------------------------------------------- The members of Barroresh No. 1 Pty Ltd passed a special resolution on July 6, 2006, to voluntary wind up the Company's operations. Accordingly, Frank Lo Pilato was named liquidator. The Liquidator can be reached at: Frank Lo Pilato RSM Bird Cameron Partners Level 1, 103-105 Northbourne Ave Turner ACT2612 Australia Telephone: (02) 2647 5988 CARRAMAR TRANSPORT: To Declare Dividend for Priority Creditors -------------------------------------------------------------- Carramar Transport Pty Ltd will declare a first and final dividend for priority creditors on August 22, 2006. Creditors are required to prove their debts or claims by August 1, 2006, for them to share in the dividend distribution. The Troubled Company Reporter - Asia Pacific reported that the Company commenced wind-up of its operations on April 15, 2005. The joint liquidators can be reached at: Andrew Reginald Yeo Gess Michael Rambaldi Pitcher Partners Level 19, 15 William Street Melbourne, Victoria 3000 Australia CARTER HOLT: Commences Tender Offer of $300 Million Debentures -------------------------------------------------------------- Carter Holt Harvey Limited commenced a cash tender offer for any and all of its outstanding US$150 million aggregate principal amount of 8-3/8% Debentures due 2015 (CUSIP No. 146230AD9) and US$150 million aggregate principal amount of 9-1/2% Debentures due 2024 (CUSIP No. 146230AB3) on the terms and subject to the conditions stated in its Offer to Purchase and Consent Solicitation Statement dated July 21, 2006, and a related Letter of Transmittal and Consent. Carter Holt Harvey is also soliciting consents to certain proposed amendments to the indentures governing the Debentures. The purpose of the tender offer and consent solicitation is to acquire all of the issued and outstanding Debentures and to amend or eliminate the principal restrictive covenants, certain events of default and other provisions contained in the indentures governing the Debentures. If all conditions to the tender offer and consent solicitation are satisfied, holders who validly tender their Debentures pursuant to the offer and validly deliver their consents pursuant to the solicitation by 5:00 p.m., New York City time, on August 8, 2006, will be paid the total consideration of US$1,000 for each US$1,000 principal amount of the Debentures. Tendered Debentures may be withdrawn and consents may be revoked at any time prior to, but not after, the Consent Date. In connection with the solicitation of consents, Carter Holt Harvey is offering to make a consent payment of US$30 per US$1,000 principal amount of the Debentures (which is included in the total consideration described) to holders who validly tender their Debentures prior to the Consent Date. Holders who tender their Debentures after the Consent Date will not receive the consent payment. Holders may not tender their Debentures without delivering consents and may not deliver consents without tendering their Debentures. The tender offer is scheduled to expire at 5:00 p.m., New York City time, on August 18, 2006, unless otherwise extended or earlier terminated. Holders who validly tender and do not validly withdraw their Debentures in the tender offer and consent solicitation will also receive accrued and unpaid interest from the last interest payment date up to, but not including, the date of payment. The tender offer and consent solicitation is conditioned upon, among other things, receipt of valid tenders and consents from at least a majority of the aggregate outstanding principal amount of each series of Debentures and receipt of sufficient financing. The tender offer and consent solicitation is intended to be financed with the proceeds of a credit facility. Credit Suisse Securities (USA) LLC is serving as the exclusive Dealer Manager and Solicitation Agent for the tender offer and consent solicitation. Questions regarding the terms of the tender offer or consent solicitation should be directed to: Credit Suisse Securities (USA) LLC Attn: Liability Management Group Telephone: (212) 325-7596 or (800) 820-1653 Any questions or requests for assistance or additional copies of documents may be directed to the Tender Agent at: D.F. King & Co., Inc. Telephone: (212) 269-5550 (bankers and brokers call collect) Toll Free: (800) 714-3312 Headquartered in Auckland, New Zealand, Carter Holt Harvey is a forest products company, with significant interests in wood products, pulp, paper and packaging, and forests. Carter Holt Harvey is a wholly owned subsidiary of Rank Group Investments Limited. * * * On April 6, 2006, Moody's Investors Service withdrew the Ba1 senior unsecured ratings of Carter Holt Harvey Limited. The ratings have been withdrawn due to Moody's expectation that adequate information will not be available to maintain the ratings. The ratings withdrawn were: * Carter Holt Harvey Limited US$150 million 9.50% senior debentures, due 2024 -- Ba1 * Carter Holt Harvey Limited US$150 million 8.375% senior debentures, due 2015 -- Ba1 On March 23, 2006, Standard & Poor's Ratings Services lowered its corporate credit and debt issue ratings on New Zealand's Carter Holt Harvey Ltd. to 'B/Developing' from 'BB/Watch Neg', and later withdrew the ratings following the Rank Group's acquisition of more than 90% of CHH's ordinary shares. CATHERINE CLEANING: Appoints Peter Ngan as Liquidator ----------------------------------------------------- The members of Catherine Cleaning Services Australia Pty Limited held a general meeting on June 29, 2006, and passed a special resolution to voluntarily wind up the Company's operations. Subsequently, Peter Ngan was 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 CHROME STILL: Enters Voluntary Liquidation ------------------------------------------ At a general meeting on June 27, 2006, the members of Chrome Still and Motion Image Creators Pty Limited resolved to voluntarily wind up the Company's business operations. Accordingly, Antony de Vries and Riad Tayeh were appointed as official liquidators. The Liquidators can be reached at: Antony de Vries Riad Tayeh de Vries Tayeh Level 3, 95 Macquarie Street Parramatta, New South Wales 2150 Australia CLIPSAL CONTROLGEAR: Liquidator to Present Wind-Up Report --------------------------------------------------------- Members of Clipsal Controlgear Pty Limited will hold a final meeting on August 11, 2006, at 11:00 a.m., to receive accounts of the Company's wind-up and property disposal exercises from Liquidator S. C. Davies. The Troubled Company Reporter - Asia Pacific reported that on February 6, 2006, the members agreed to wind up voluntarily the Company's operations. The Liquidator can be reached at: S. C. Davies c/o McGrathNicol+Partners Level 11, 115 Grenfell Street Adelaide, South Australia 5000 Australia Telephone:(08) 8468 3700 Web site: www.mcgrathncol.com.au/ DALMATIAN PTY: Wind-Up Process Commenced ---------------------------------------- Members of Dalmatian Pty Ltd, at an extraordinary general meeting held on June 28, 2006, resolved to wind up the Company's operation voluntarily. The liquidator can be reached at: Barry Cook 54 Beachwood Ave., Greystanes New South Wales 2145, Australia Telephone/Facsimile: (02) 9636 2845 D. & L. CLANCY: Members Resolve to Wind Up Firm ----------------------------------------------- Members of D. & L. Clancy Stores Pty Limited held a meeting on June 30, 2006, and resolved to wind up voluntarily the Company's business operations. The liquidator can be reached at: Neil James Puddy 3/302 Canterbury Road Heathmont, Victoria 3135 Australia ETNA PROPERTIES: Members and Creditors to Receive Wind-Up Report ---------------------------------------------------------------- The members and creditors of Etna Properties Pty Limited will hold a final meeting on August 18, 2006, at 10:00 a.m. During the meeting, Liquidators T. J. Clifton and M. C. Hall will report on the Company's wind-up and property disposal activities. The Troubled Company Reporter - Asia Pacific cited that on April 19, 2006, the members agreed to wind up the Company's business operations. The Liquidators can be reached at: T. J. Clifton M. C. Hall c/o PPB Chartered Accountants 10th Floor, 26 Flinders Street Adelaide, South Australia 5000 Australia GDC COMMUNICATIONS: To Delist from the Sharemarket -------------------------------------------------- GDC Communications Limited will delist from the sharemarket on August 4, 2006, the New Zealand Herald reports. As reported in the Troubled Company Reporter - Asia Pacific on March 24, 2006, GDC Communications has been placed into receivership at the request of its directors. Consequently, all directors have resigned from their positions. Grant Robert Graham and Brendon James Gibson, of Ferrier Hodgson & Company, were then appointed as GDC Communications' receivers and managers. According to the TCR-AP, GDC attributed its "rapid demise," which occurred through the second half of 2005, to a multitude of factors including: (a) the significant loss of contracting services revenue from May 2005 as it moved from contractor to subcontractor; (b) a substantial reduction in its Voice business revenues in an environment of aggressive competition; (c) a lack of growth in its iVASP business revenues; and (d) levels of corporate costs and funding costs that proved to be unsustainable for the reduced revenue levels. The NZ Herald recounts that last year, GDC Communications ran into trouble when a lack of interest forced it to scrap a planned share offer aimed at raising NZ$3.5 million. The Company's receivers can be reached at: Grant Robert Graham Brendon James Gibson Joint Receivers and Managers Ferrier Hodgson & Company Level Sixteen, Tower Centre 45 Queen Street, Auckland New Zealand GLOVERS PRINTING: Members Opt to Shut Down Operations ----------------------------------------------------- At a general meeting on June 30, 2006, the members of Glovers Printing Works Pty Limited resolved to close the Company's business operations and distribute the proceeds of its assets disposal. Subsequently, Bradley V. Grogan was appointed as liquidator. The Liquidator can be reached at: Bradley V. Grogan DGZ Chartered Accountants 24 Barolin Street Bundaberg, Queensland 4670 Australia HUON CORPORATION: J. Schulz Still Absent from Court Hearing ----------------------------------------------------------- The Troubled Company Reporter - Asia Pacific reported on July 26, 2006, that Huon Corporation's managing director, John Schulz, failed to appear at a hearing before the Supreme Court in Melbourne pertaining to certain allegations against him. As a result, the hearing was adjourned to July 25, 2006. However, according to a follow-up report from The Bendigo Advertiser, Mr. Schulz was again absent from the Melbourne Supreme Court when the hearing continued. An earlier TCR-AP report had stated that Mr. Schulz allegedly diverted Empire Rubber's property holdings into personally linked interests shortly after Huon acquired the factory from Nylex Limited in December 2005. Subsequently, Huon Corp.'s administrators took Supreme Court action against Mr. Schulz and the other directors, seeking to recover more than AU$30 million in entitlements owed to workers at the Company's three factories -- Empire Rubber, FRN and Mills Elastomers. Mr. Schulz's legal adviser, Jeffrey Appel, told The Bendigo Advertiser that redundant workers at Empire Rubber will be denied entitlements because of the legal action against his client. Mr. Appel accused SimsPartners, Huon's administrator, of "burning money at enormous rates" on the legal action, Rural Press Ltd., relates. Yet, SimsPartners' Ken Sellars said that his firm's lawyers would prove that Mr. Schulz breached his duty as a director of Huon, Rural Press notes. "We are still very confident of recovering the assets and that is what this process is about," Mr. Sellars contended. National Union of Workers state secretary Antony Thow confirmed the workers' support for the legal action, Bendigo Advertiser says. According to Mr. Thow, "[t]he land component of Huon is vital to considering the entitlements for the workers, adding that the only reason this matter is being dragged through the courts is because of [Mr. Schulz's] unwillingness to cooperate." Mr. Appel countered that Mr. Schulz had done "nothing that is unusual in the commercial world," Bendigo Advertiser relates. The paper further relates that when asked why his client had not surrendered the properties, Mr. Appel answered, "[t]he properties are owned by companies that purchased them, and if you owned a property you'd want to hang onto to it, too". * * * 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. Tony Sims and Ken Sellars of SimsPartners were appointed as administrators. HUON CORPORATION: Workers Accept Rescue Package ----------------------------------------------- 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. Thus, a rescue package for Huon Corp. and its redundant staff was proposed on July 21, 2006, during a conference at the Australian Industrial Relations Commission. Under the rescue plan, Huon's major customers had agreed to pay more for components, and had committed orders until the end of October, while some had agreed to increase production levels. Price rise options were also offered to the customers. In an update, the ABC News Online relates that Huon has accepted the rescue package. Accordingly, most of the workers ended their 11-day strike on July 25 after Huon customers Ford and Toyota agreed to help prop up the Company, ABC News relates. The Australian Associated Press relates that the three-month rescue package will result in a AU$10-million cash injection into Huon, which the National Union of Workers hopes will allow the Company to be sold and continue to operate. Ford workers, who were stood down because of the Huon workers' strike action, returned to work on July 26, ABC News notes. FRN Workers Wait for Holden to Sign Deal However, ABC News relates, workers at FRN in Frankston are waiting to clarify the details of the rescue deal. ABC News notes that the FRN workers are still on strike because another customer, General Motors Holden, is yet to sign a rescue deal for the car parts manufacturer. According to the report, the FRN workers refuse to make Holden parts, thus, the FRN plant is still off-line. According to The Daily Telegraph, Holden has avoided standing down more than 4,000 workers at its assembly plant in Adelaide after crucial parts arrived overnight through another supplier. However, the Australian Manufacturing Workers Union asserts that Holden's employees in South Australia may still be stood down despite the delivery, ABC Central Victoria relates. ABC News cites a spokesman for Holden as saying that the carmaker has forwarded a further proposal to Huon's administrators and hopes that it ends the dispute. Redundant Workers Urged to Attend Seminar Almost 90 redundant Empire Rubber workers were urged to attend a Centrelink seminar on July 26, ABC Central Victoria says. ABC Victoria cites Centrelink's Leah Brown as saying that the seminar aims to give sacked employees information about the redundant employees' options. The paper notes that the redundant employees will get short-term payments, but unions are continuing negotiations to get 100% of their entitlements. Ms. Brown says that an officer of the firm will discuss support on low-income cards and family payments. Centrelink can also put families in touch with social worker support to "help them through what can be a very difficult time," Ms. Brown adds. * * * 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. Tony Sims and Ken Sellars of SimsPartners were appointed as administrators. ILLALANGI INVESTMENTS: Anthony D'Aloia Ceases to Act for Firm ------------------------------------------------------------- Anthony D'Aloia ceased to act as receiver and manager for Illalangi Investments Pty Limited on June 28, 2006. J & P EMPLOYMENT: Enters Voluntary Wind-Up Process -------------------------------------------------- At an extraordinary general meeting of J & P Employment and Training Services Pty Limited Group of Companies on June 29, 2006, members resolved to wind up the Group's operations. In this regard, James Alexander Shaw was appointed as official liquidator. The Liquidator can be reached at: James Alexander Shaw Ferrier Hodgson Chartered Accountants PO Box 840 Newcastle, New South Wales 230 Australia K & K INVESTMENT: Appoints Official Liquidator ---------------------------------------------- The members of K & K Investments Co Ltd resolved on June 26, 2006, to voluntary liquidate the Company and appoint Ole Michael Madsen as liquidator. The Liquidator can be reached at: Ole Michael Madsen PO Box 328, Belconnen Australian Capital Territory 2616 Australia KNOWIT PTY: Federal Court Issues Wind-Up Order ---------------------------------------------- The Federal Court of New South Wales issued a wind-up order against Knowit Pty Limited on June 23, 2006. Accordingly, Steven Nicols was named liquidator. The Liquidator can be reached at: Steven Nicols Level 2, 350 Kent Street Sydney, New South Wales 2000 Australia LINGFORD AUSTRALIA: Members to Receive Wind-Up Report ----------------------------------------------------- A final meeting of the members of Lingford Australia Pty Limited will be held on August 14, 2006, at 10:00 a.m. During the meeting, members will receive the liquidator's accounts of the Company's wind-up and property disposal exercises. The Troubled Company Reporter - Asia Pacific reported that on February 9, 2006, members resolved to wind up the Company's operations. The liquidator can be reached at: M. C. Smith McGrathNicol+Partners Level 9, 10 Shelley Street Sydney, New South Wales 2000 Australia Telephone:(61) 2 9338 2666 Web site: http://www.mcgrathnicol.com.aus/ MACBAR TRANSPORT: Supreme Court Orders Wind-Up ---------------------------------------------- On June 27, 2006, the Supreme Court of New South Wales ordered the wind-up of Macbar Transport Pty Limited. The Court also directed the appointment of Steven Nicols as liquidator. The Liquidator can be reached at: Steven Nicols Level 2, 350 Kent Street Sydney, New South Wales 2000 Australia MABUDMAC MANAGEMENT: Members Opt for Voluntary Wind-Up ------------------------------------------------------ On June 28, 2006, members of Mabudmac Management Pty Ltd passed a special resolution to voluntary wind up the Company's operations. In this regard, Frank Lo Pilato was appointed as liquidator. The Liquidator can be reached at: Frank Lo Pilato RSM Bird Cameron Partners Level 1, 103-105 Northbourne Ave Turner, Australian Capital Territory 2612 Australia Telephone: (02) 2647 5988 MACKENZIE STREET: Undergoes Voluntary Liquidation ------------------------------------------------- At a general meeting on June 30, 2006, the members of Mackenzie Street Developments Pty Limited passed a special resolution to voluntarily wind up the Company's business operations. Subsequently, Alan Douglas Charles Pears was appointed as liquidator. Creditors who were not able to furnish their claims by June 21, 2006, will be excluded from sharing in the dividend distribution. The Liquidator can be reached at: Alan Douglas Charles Pears Chartered Accountant 24 Ross Street, North Parramatta Australia MAIDSTONE VINEYARD: Bank Appoints Receiver and Manager ------------------------------------------------------ The Commonwealth Bank of Australia appointed Michael Gerard McCann as receiver and manager of all the assets and property of Maidstone Vineyard Contracting Pty Ltd. Mr. McCann can be reached at: Michael Gerard McCann, Chartered Accountant c/o Grant Thornton of Level 4 102 Adelaide Street Brisbane, Queensland Australia MAXWELL CORNISH: Names D. R. Vasudevan as Liquidator ---------------------------------------------------- At a general meeting on June 28, 2006, members of Maxwell Cornish Pty Ltd passed a special resolution to wind up the Company's operations. In this regard, D. R. Vasudevan was appointed as liquidator. The Liquidator can be reached at: D. R. Vasudevan Pitcher Partners Level 19, 15 William Street Melbourne, Victoria 3000 Australia MIDDLECROSS PTY: Liquidator to Present Wind-Up Report ----------------------------------------------------- The members of Middlecross Pty Ltd will hold a final meeting on August 10, 2006, at 10:00 a.m. During the meeting, Liquidator McKern will report accounts of the Company's wind-up and property disposal activities. The Troubled Company Reporter - Asia Pacific reported that on December 15, 2006, members passed a special resolution to wind up the Company's operations. The Liquidator can be reached at: Robyn Beverley McKern McGrathNicol+Partners Level 8, 60 City Road Southbank, Victoria 3006 Australia Telephone:(03) 9038 3137 Web site: http://www.mcgrathnicol.com/ NATIONAL FINANCE 2000: Loan Book in Arrears, Receiver Says ---------------------------------------------------------- Colin McCloy, the receiver for National Finance 2000, reveals that 45% of the company's loan book was in arrears, ShareChat News reports. In his report to the Registrar of Companies, Mr. McCloy said that the arrears totaled NZ$12.4 million of the loan book, which had a total balance of NZ$27.4 million, or NZ$20.1 million when unearned interest and write-offs and provisions were excluded. Of the NZ$12.4 million in arrears: -- NZ$9.3 million had payments, which were more than 150 days overdue; -- NZ$1.3 million were categorized as "Gone No Address;" and -- NZ$1.6 million of loans had been written off. On May 9, 2006, the day National Finance receivers were appointed, the unaudited financial position of the Company showed positive shareholders' funds of NZ$56,000, the New Zealand Press Association relates. "However, on review of the quality of the assets, including the loan book and dealer advances, our view is that the loan book and dealer advances are materially overstated and therefore the financial statements should properly show a substantial negative equity position," Mr. McCloy's report says. The receivers' view remained that secured debenture investors could receive between 30% and 50% of their original investment, while subordinated investors would receive nothing, ShareChat says. As reported in the Troubled Company Reporter - Asia Pacific on June 8, 2006, citing initial estimates from Mr. McCloy, secured investors in National Finance may get as little as 30% of their money back, though some investors will get nothing. ShareChat says that in light of the investors' poor recoveries, the receivers had referred the events leading up to receivership to various authorities for investigation. However, Mr. McCloy would not say what those authorities were to avoid prejudice on investigations, ShareChat relates. The NZPA relates that according to the Report, on May 9, 2006, secured debenture investors totaled NZ$21.8 million, with subordinated investors totaling NZ$3 million. On that day, the book value of assets classed as dealer advances totaled NZ$5.1 million, mostly to associated car business Payless Cars Companies, NZPA says. Furthermore, the Report said that all Payless Cars Companies were either in receivership or in liquidation, and recoveries of advances were likely to be at a substantial discount to the NZ$3.2 million book value, NZPA relates. The Report explained that "[t]he Payless Cars Companies had suffered significant losses in the year prior to the appointment of receivers, had liabilities in excess of assets, therefore, determined that continued trading was not a viable option." The report also revealed that some: (a) other dealer advances were to companies that had either been struck off the Companies Register, or were in liquidation; and (b) loans had been made to parties associated with National Finance 2000 and Payless Cars managing director Allan Ludlow. The Report concluded that based on the age of loans, documentation and the borrowing parties, recoveries will be at a substantial discount to book value as of May 9, 2006. The receivers expect to be able to set out a likely timeframe for distributions to investors by the end of September, NZPA notes. The Official Receiver's Report is available for free at: http://www.pwc.com/nz/nf2000/NFReceivers_s23Report_Final.pdf * * * A report by the TCR-AP on May 12, 2006, said that National Finance 2000 is the first major finance company to collapse in recent years and has re-ignited fears of a wider rout in a sector weighed down by debt after several years of strong economic growth. National Finance's managing director, Allan Ludlow, shouldered the blame for the Company's collapse, but assured that he will work closely with the receivers appointed by Covenant Trustee Company -- John Waller and Colin McCloy of PricewaterhouseCoopers -- to get the maximum amount of money back for investors. Business Review previously said that National Finance's troubles escalated when Nichibo Motor Company of Japan, the supplier of Mr. Ludlow's Payless Car, lost patience over debts of up to NZ$3 million. Those debts prompted Mr. Ludlow to launch a prime-time ad campaign to seduce potential National Finance investors with an offer of 10% debenture stock. PARMAR HOLDINGS: Prepares to Close Operations --------------------------------------------- At a general meeting of Parmar Holdings Pty Ltd on June 29, 2006, members resolved to wind up voluntarily the Company's operations. Russell Heywood-Smith was consequently appointed as liquidator. The Liquidator can be reached at: Russell Heywood-Smith BDO Chartered Accountants & Advisers 248 Flinders Street Adelaide, South Australia 5000 Australia PEARS RITCHIE: Members to Hear Wind-Up Report on August 15 ---------------------------------------------------------- The members of Pears Ritchie Pty Ltd will convene on August 15, 2006, at 10:00 a.m., to receive the wind-up report from Liquidator Gerald T. Collins. The Liquidator can be reached at: Gerald T. Collins c/o Horwath BRI Brisbane Level 4, 370 Queen Street Brisbane, Queensland 4000 Australia POWERFULL PTY: Members Pass Resolution to Wind Up Firm ------------------------------------------------------ The members of Powerfull Pty Limited met on June 28, 2006, and passed a special resolution to wind up the Company's business operations. In this regard, David Bryan Gurney was named official liquidator. The Liquidator can be reached at: D. B. Gurney c/o PF Fisher & Co Pty Ltd Level 8, 111 Phillip Street Parramatta, New South Wales 2150 Australia RICO ENGINEERING: To Declare Dividend for Unsecured Creditors ------------------------------------------------------------- Rico Engineering Pty Ltd will declare a first and final dividend for its unsecured creditors on September 1, 2006, to the exclusion of those who were not able to file their claims by July 26, 2006. As reported by the Troubled Company Reporter - Asia Pacific, the Company declared a final dividend for priority creditors on June 9, 2006. The liquidator can be reached at: Ray Richards SimsPartners Level 11, 145 Eagle Street Brisbane, Queensland 4000 Australia RRA ENTERPRISES: Faces Liquidation Proceedings ---------------------------------------------- At an extraordinary general meeting on June 29, 2006, the members of RRA Enterprises Limited decided to voluntarily wind up the Company's operations. Kim Wallman was subsequently appointed as liquidator. The Liquidator can be reached at: Kim Wallman K. S. Wallman PO Box 263, West Perth Western Australia Australia SERIMEX PTY: Initiates Wind-Up Operations ----------------------------------------- The members of Serimex Pty Limited held a general meeting on June 27, 2006, and passed a resolution to wind up voluntarily the Company's business operations. In this regard, Schon G. Condon and Bruce Gleeson were appointed as liquidators. Creditors are required to prove their debts by July 30, 2006, for them to share in any distribution the Company will make. The Liquidators can be reached at: Schon G. Condon Rfd Bruce Gleeson Jones Condon Chartered Accountants Australia Telephone:(02) 9893 9499 SHERRING HOLDINGS: Members Agree to Voluntary Wind-Up Operations ---------------------------------------------------------------- The members of Sherring Holdings Pty Ltd passed a special resolution on June 23, 2006, to voluntarily wind up the Company's operations. In this regard, Jacqueline Johnson was appointed as liquidator. The Liquidator can be reached at: Jacqueline Johnson 138 Nicholson Parade Cronulla, New South Wales 2230 Australia ST MARYS MOTOR: Names Ashton Brailey as Liquidator -------------------------------------------------- Members of St Marys Motor World Pty Ltd held a general meeting on June 27, 2006, and resolved to wind up the Company's operations. Accordingly, Ashton Brailey was appointed as liquidator. The Liquidator can be reached at: Ashton Brailey Ashton Brailey & Co. Suite 8, 14 Frenchs Forest Road Frenchs Forest, New South Wales Australia SUPERBANK: Set for Sale or Closure Due to NZ$40-Million Loss ------------------------------------------------------------ Superbank is due to be sold or closed due to losses, Stuff.co.nz reports, citing The Independent Financial Review. The New Zealand Press Association notes that the bank's liquidity is not in question but it has chalked up losses of NZ$40 million in the three years since it opened. According to the NZPA, Superbank Chief Executive Officer James Munro has been on "gardening leave" for two weeks. The bank is a joint venture between Australia's fifth-largest retail bank, St. George Bank, and supermarket cooperative Foodstuffs, the NZPA relates. St. George managing director Gail Kelly said in December 2005 that Superbank was under review for sale because of tightening economic conditions and competition that had squeezed margins, Stuff.co recounts. Stuff.co further notes that two months ago, buyers were reported in the Australian media to be queuing up for Superbank. Potential buyers included: * GE, * Westpac Bank, and * the Commonwealth Bank of Australia-owned -- ASB. At the end of March, Superbank's retail deposits stood at NZ$523 million, with residential loans at NZ$504 million, the NZPA notes. About Superbank Based in New Zealand with staff in Auckland, Wellington, and Christchurch, Superbank -- http://www.superbank.co.nz/-- is a phone and Internet bank, with cheque, EFTPOS, and ATM access. It uses supermarkets as a handy place to advertise its services. The Company's home loans are also available through selected mortgage brokers. Superbank was launched in 2003 and promoted, through Foodstuff's New World and Pak 'N Save chains, the idea of customers doing banking online. TECHRACK PTY: Members to Receive Wind-Up Report on August 11 ------------------------------------------------------------ The members of Techrack Pty Ltd will hold a final meeting on August 11, 2006, at 11:00 a.m., to receive the liquidator's report regarding the Company's wind-up and property disposal exercises. The Troubled Company Reporter - Asia Pacific reported that on February 6, 2006, members had agreed to close the Company's operations. The liquidator can be reached at: S. C. Davies c/o McGrathNicol+Partners Level 11,115 Grenfell Street Adelaide South Australia 5000 Australia Telephone:(08) 8468 3700 Web site: http://www.mcgrathncol.com.au/ WINAMEA PTY: Appoints Official Liquidator ----------------------------------------- At a general meeting on June 30, 2006, the members of Winamea Pty Limited resolved to wind up voluntarily the Company's operations. David H. Scott was consequently appointed as liquidator. The Liquidator can be reached at: David H. Scott Chartered Accountant Jones Condon Chartered Accountants Ground Floor, 77 Station Street Malvern, Victoria 3144 Australia * Challenges Continue for Qld Electricity Companies, S&P Says ------------------------------------------------------------- According to an article published by Standard & Poor's Ratings Services, expectations for a continuation of generation overcapacity in Queensland's electricity sector means there will be little respite from low pool and contract prices for the state's generators over the next few years, even though demand is likely to remain robust. The article, titled "Challenges Mount for Electricity Companies Operating in Queensland", assesses the wholesale pricing environment and discusses other risks facing the state's electricity generation, retail, and distribution sectors. "Soft prices are hurting Queensland's electricity-generation sector, and with more capacity scheduled to come on stream, the challenges facing the state's generators are not expected to get any easier," Standard & Poor's credit analyst Mark Legge says. "Moreover, if vertically integrated power companies enter the market as a result of the state government's impending sale of energy retail assets, there is a prospect that these players will attempt to, at times, dampen price spikes to protect their retail customer bases." Elsewhere, fierce competition among energy retailers is expected in southeast Queensland after the introduction of full retail contestability on July 1, 2007, as a result of the region's strong growth profile and urban density. While price is important, the back-office performance of energy retailers will be a critical element in determining customer loyalty. "In addition, the government-owned distributors, Ergon and Energex, will continue to be challenged by their massive capital-expenditure programs, with risks related to execution, cost, and timing magnified by the current shortage of skilled labor and rising construction costs," Mr. Legge added. "The impending transition to a new national network regulator adds to the uncertainty facing the state's network companies." ================================ C H I N A & H O N G K O N G ================================ ASIA PREMIUM: Current Deficit Falls by 21% ------------------------------------------ Asia Premium Television Group's liquidity position improved by 21%, representing a US$911,000 decrease in its working capital deficit, from US$4.45 million at March 31, 2005 to US$3.53 million at March 31, 2006. The Company had US$15.23 million in current assets and US$18.77 million in current liabilities at March 31, 2006, compared with US$10.30 million in current assets and US$14.75 million in current liabilities at March 31, 2005. Net cash provided by operating activities increased to US$2.1 million for the fiscal year ended March 31, 2006, compared with US$600,000 for the same period in 2005. This increase was primarily due to a significant increase in accounts payable and other payables. Net cash used by investing activities increased to US$480,000 for the fiscal year ended March 31, 2006, compared with US$330,000 for the same period in 2005, due primarily to increases in payments for property and equipment. Net cash provided by financing activities was US$200,000 in the fiscal year ended March 31, 2006, compared with US$190,000 for the same period in 2005, which is consisted primarily of proceeds from related parties. As of March 31, 2006, Asia Premium's total assets stood at US$16.18 million while its total liabilities stood at US$18.881 million, resulting to a stockholders' equity deficit of US$2.70 million. Headquartered in Nevada, Asia Premium Television Group provides advertising, media and marketing services to product manufacturers, service providers and other clients located in China. ASSOCIATE MARBLE: Liquidator Ceases to Act for Company ------------------------------------------------------ Ho Wai Ip ceased to act as liquidator for Associate Marble Maintenance and Service Co. Ltd on July 17, 2006. CHAODA MODERN: Moody's Affirms CF and FCD Ratings at Ba3 -------------------------------------------------------- Moody's Investors Service on July 26, 2006, affirmed the Ba3 corporate family rating and Ba3 foreign currency debt rating of Chaoda Modern Agriculture Holdings Ltd. The ratings outlook remains positive. This rating action follows Chaoda's announcement that it will purchase 300 million shares worth HKD120 million in Innomaxx Biotechnology Group Limited, or 8.6% of Innomaxx's enlarged issued share capital. Chaoda will make the purchase via a share placement by Innomaxx, whose final approval is also required for the investment. Innomaxx will in turn use the proceeds to acquire 57% in Lead Sun Investments, which is engaged in the rutile business. Rutile is a raw material used for the manufacture of titanium chloride and titanium sponge. "For Chaoda, the investment amount of HKD120M is not considered as substantial relative to its cash-on-hand of over HKD2 billion and total assets of HKD8 billion, while the impact on its financial profile will be limited," says Jeffrey Lam, Moody's lead analyst for the company. "At the same time, the investment is outside Chaoda's existing core businesses in agriculture and related operations. The investment raises Moody's concern over the degree of discipline the company is exercising over its approach to cash management and investments," Mr. Lam adds. Management has, however, advised that the purchase is a one-off and passive investment, aimed only at maximizing returns in the short-to-medium term. Accordingly, additional investments of a similar nature are unlikely and Chaoda will not involve itself in Innomax's management or daily operations. The affirmation reflects Moody's expectation that Chaoda will stay focused on its core agricultural business in China and future capex will stay in line with its existing plans. The company is projected to generate negative free cash flow over the next few years due to heavy investments in acquiring farmland and establishing related infrastructure. But its healthy financial profile and operating margins will continue to position it soundly at its current rating level. The Ba3 rating continues to reflect Chaoda's credit strengths, which include: 1) its sound business model, including large-scale diversified production bases and strong distribution network, which together support its high profit margins; 2) its experienced management team and ongoing R&D investments, both of which enhance its competitive position; 3) the presence of a supportive government policy, given the agricultural sector's importance to China's economy; 4) favorable industry trends with good growth potential evident in green/organic agricultural produce; and 5) its sound financial profile. At the same time, the rating reflects the key credit challenges facing Chaoda such as: a) its overall small scale against the backdrop of a highly fragmented industry and earnings volatility due, in turn, to adverse weather and natural disasters; b) concerns over corporate governance, given the company's short track record as a listed company and the presence of material related-party transactions; c) ongoing concerns about the implications of the resignation of PricewaterhouseCoopers as its joint auditor in June 2003, an event which raised uncertainty over the quality of the company's financial reporting, but has been partially mitigated by the engagement of Baker Tilly HK as joint auditor; d) projected negative free cash flow position due to an aggressive growth strategy; and e) expansions into the more volatile livestock business in Inner Mongolia. The rating would be upgraded if the Company continues to receive unqualified opinions from its joint auditors and, at the same time, maintains its current profitability and sound financial profile. Although the rating outlook remains positive, downward rating pressure would emerge with a qualified opinion on material accounting and operational issues for FY2006; or evidence emerges of cash leakage for the purposes of funding related companies, or significant margin erosion as the business expands. In addition, a downgrade rating action could be triggered if there is evidence of further changes in the company's business focus, further investments in non-core businesses, or deviations in the company's financial or investment discipline. * * * Headquartered in Hong Kong and listed on the Hong Kong Stock Exchange, Chaoda Modern Agriculture (Holdings) Ltd is principally engaged in the cultivation and sale of agricultural produce in China. It is also engaged in livestock breeding and sales as well as supermarket operations. CLOROX FAR EAST: Joint Liquidators Step Aside --------------------------------------------- Lai Kar Yan and Darach E. Haughey ceased to act as joint liquidators for The Clorox Far East Co Ltd on July 11, 2006. COMPANION MARBLE: Liquidator Ceases to Act for Company ------------------------------------------------------ Ho Wai Ip ceased to act as liquidator of Companion Marble Engineering Ltd on July 17, 2006. FRANKLIN TEMPLETON: Shareholders' Final Meeting Set on Aug. 22 -------------------------------------------------------------- The final shareholders' meeting of Franklin Templeton Institutional Asia Ltd will be held at 17/F., Chater House, 8 Connaught Road Central, Hong Kong on August 22, 2006, at 10:00 in the morning. At the meeting, Joint Liquidators Chan Wah Tip and Ho Man Kei will present their reports on the Company's wind-up and property disposal exercises. GOLDTRON M G: Creditors' Opt for Voluntary Wind-Up -------------------------------------------------- Goldtron M G Engineering Co Ltd commenced a creditors' voluntary wind-up of its operations on July 12, 2006. Accordingly, Liquidator Huen Ho Yin was appointed to oversee the wind-up process. Meanwhile, creditors will meet on August 4, 2006, at 9:00 in the morning to discuss wind-up matters. The Liquidator can be reached at: Huen Ho Yin Units 3307-3312, 33/F West Tower, Shun Tak Centre 168-200, Connaught Road Centre Sheung Wan, Hong Kong H.K. ZHEJIANG: Final Members Meeting Slated for Aug. 25 ------------------------------------------------------- Members of Hong Kong Zhejiang Wuyi Clansmen Association Ltd will convene for their final meeting on August 25, 2006, at 10:00 a.m. At the meeting, Liquidator Mok Wai Yee will report on the Company's wind-up and property disposal exercises. The Liquidator can be reached at: Mok Wai Yee Liquidator 19/F., 367-375 Queen's Road Central, Hong Kong HAYES LIMITED: Joint Liquidators to Present Wind-Up Report ---------------------------------------------------------- Joint liquidators Lo Kin Cheng and Dermot Agnew will present to the members and creditors of Hayes (Asia Pacific) Ltd their report on the Company's wind-up and property disposal activities. The Liquidators will present the report to members and creditors at 35th Floor, One Pacific Place, 88 Queensway, Hong Kong on August 25, 2006, at 11:00 a.m. and 11:15 a.m. respectively. HUTCHISON ENTERPRISES FOUR: Liquidators Step Aside -------------------------------------------------- Ying Hing Chiu and Chung Miu Yin ceased to act as joint and several liquidators of Hutchison Enterprises Two Ltd on July 17, 2006. HUTCHISON ENTERPRISES TWO: Liquidators Cease to Act for Company --------------------------------------------------------------- Ying Hing Chiu and Chung Miu Yin ceased to act as joint and several liquidators of Hutchison Enterprises Two Ltd on July 17, 2006. LANBO INDUSTRIAL: Shareholders Opt for Voluntary Wind-Up -------------------------------------------------------- Shareholders of Lanbo Industrial Ltd on July 11, 2006, resolved to voluntary wind-up the Company and appoint Sze Sau Wan as liquidator. The Liquidator can be reached at: Sze Sau Wan Room 602, 447 Lockhart Road Hong Kong LEADING TOP: Creditors' Must Prove Debts by Aug. 21 --------------------------------------------------- Creditors of Leading Top Development Ltd are required to submit their proofs of claim to Liquidator Chan Sun Kwong by August 21, 2006. Failure to comply with the requirement will exclude a creditor from sharing in any distribution the Company will make. The Liquidator for can be reached at: Chan Sun Kwong Room 102, Oriental Centre 67-71 Chatham Road Tsimshatsui, Kowloon Hong Kong LUCKY ASSET: Names Chow as Liquidator ------------------------------------- On July 13, 2006, members of Lucky Asset Development Ltd appointed Chow Cheuk Lap as official liquidator to oversee the Company's wind-up. OCEAN GRAND: Authorities Confirm Fraud After Probe -------------------------------------------------- The Hong Kong police and securities investigators had confirmed the alleged accounting irregularities involving Ocean Grand Holdings and its subsidiaries after conducting an internal investigation on the Company's accounts, The Standard reports. According to The Standard, the investigators discovered that a total of CNY842 million were found missing from the bank accounts of Ocean Grand's subsidiaries and that the group was unable to pay immediate debts exceeding HKD261 million. Deloitte -- the appointed investigator for the Company -- found that the bank balances of three of Ocean Grand's other mainland subsidiaries, Kenlap Zhuhai, OG Foshan and OG Aluminum Foshan, totaled to only about CNY38 million as at July 20, 2006, The Standard relates. As of March 31, 2006, an aggregate balance of CNY880 million was reported, thus a discrepancy of CNY842 million was noted after the investigation. Meanwhile, the South China Morning Post says that the Company had already appointed Deloitte Touche Tohmatsu deputy national managing partner Derek Lai Kar-yan as provisional liquidator. Sources close to the Morning Post said that Mr. Lai is expected to identify the problems at the firms and discuss potential debt restructuring with bondholders, bankers and other creditors. In addition, the paper also said that the liquidator is looking for a strong Company to take over Ocean Grand Holdings. "Whether the creditors could get their money back would depend on whether there is a strong white knight to buy out the two companies," a source familiar with the situation told the Morning Post. * * * Ocean Grand Holding's -- http://www.ogholdings.com/-- principal activities are the manufacture and sale of aluminum extrusion products and chemicals for use in electroplating and refining of gold material produced at facilities located in Nanhai of Guangdong Province and the Hong Kong Special Administrative Region of The People's Republic of China. The Troubled Company Reporter - Asia Pacific reported on July 14, 2006, that the Hong Kong Stock Exchange discovered a potential accounting irregularity amounting to CNY6 million involving the group's wholly owned subsidiary, OG Foshan, and its financial controller. After a few days, Ocean Grand appointed Deloitte & Touche Forensic Services Limited to conduct an internal investigation on the alleged accounting irregularities involving several subsidiaries of the company. Meanwhile, Standard & Poor's Ratings Services lowered its long- term corporate credit rating on Ocean Grand Holdings Ltd to B from BB-. It also lowered its issue rating on US$160 million senior unsecured notes due 2010 to B from BB-. S&P said that the downgrade reflects their heightened concerns on Ocean Grand's corporate governance and internal control systems. Recently, S&P had again lowered its long-term corporate credit rating on Ocean Grand Holdings Ltd. to 'D' from 'B'. In addition, it lowered its issue rating on US$160-million senior unsecured notes due 2010 to 'D' from 'B'. POLYWATER ASIA: Liquidator to Present Wind-Up Report on Aug. 22 --------------------------------------------------------------- The final meeting of the members and creditors of Polywater Asia Ltd is set on August 22, 2006, 11:00 in the morning at 18/F., Two International Finance Centre, 8 Finance Street, Central, Hong Kong. During the meeting, Liquidator Robert Armor Morris will present a report on the Company's wind-up proceedings and how its properties have been disposed of. SOUNDTEX INTERNATIONAL: Appoints Official Liquidator ---------------------------------------------------- Members of Soundtex International Ltd passed a special resolution on July 4, 2006, appointing Tse Wai Hing as the Company's official liquidator. The appointment was confirmed by the Company's creditors ofn July 11, 2006. The Liquidator can be reached at: Tse Wai Hing Suites 143-4, Nan Fung Tower 173 Des Voeux Road Central Hong Kong WINFUL CREDIT: Creditors' Proofs of Claim Due on Aug. 21 -------------------------------------------------------- On July 14, 2006, members of Winful Credit Management Ltd appointed Liquidator Au Ping Yun to oversee the Company's liquidation. Mr. Au requires the creditors of the Company to submit their proofs of claim by August 21, 2006, for them to share in any distribution the Company will make. The Liquidator can be reached at: Au Ping Yun Unit 3, 20th Floor Golden Centre, 188 Des Voeux Road Central Hong Kong YASKAWA ELECTRIC: Bradley Ceases to Act as Liquidator ----------------------------------------------------- Mark Bradley ceased to act as liquidator for the Company on July 11, 2006. The Troubled Company Reporter - Asia Pacific reported that on July 10, 2006, Liquidator Bradley presented a final wind-up report to the members of Yaskawa Electric (H.K.) Co Ltd. * S&P Revises China's Insurance Sector Outlook to Positive ---------------------------------------------------------- Standard & Poor's Ratings Services on July 26, 2006, revised its outlook on China's insurance sector to positive from developing to reflect expectations that the financial strength of the overall industry will improve over the medium term. In a new publication titled "China Insurance Outlook 2006-2007", Standard & Poor's says factors such as improving operational fundamentals, strong potential growth, and regulatory commitment to policyholder interests are likely to offset challenges such as tough competition, a lack of talent, and weak capitalization. "We found the outlook for the industry encouraging and expect premium growth to remain strong," said Standard & Poor's analyst Connie Wong. Ms. Wong warned, however, that rapid expansion goes hand in hand with challenges and that weak capitalization or poor reserving practices could trigger instances of corporate failure, despite improvements across the wider industry. ========= I N D I A ========= FORD MOTOR: Books US$123-Million Net Loss for 2nd Quarter 2006 -------------------------------------------------------------- Ford Motor Company reported a net loss of US$123 million, for the second quarter of 2006 compared with net income of US$946 million, in the second quarter of 2005. The Company disclosed that second quarter loss from continuing operations was US$48 million, compared to a profit of US$936 million, in the same period a year ago. Its second-quarter total sales and revenue was US$42 billion, down Us$2.5 billion from a year ago. "We've seen an improvement in North America results in the second quarter, but the external factors we face aren't going to get any easier," said Chairman and Chief Executive Officer Bill Ford. "Mark Fields (executive vice president and president - The Americas) and his team have been working on plans to accelerate their efforts. Within the next 60 days, we'll be in a position to discuss the additional actions we will be taking." The Company also disclosed that special items reduced earnings in the second quarter and its pre-tax effect included: -- a favorable adjustment of US$146 million to the first- quarter US$1.7 billion special charge pertaining to expected layoff and jobs bank benefits and voluntary termination packages based on agreements at its Atlanta Assembly Plant and St. Louis Assembly Plant for buyouts and employee relocation; -- a charge of US$171 million relative to additional personnel reduction programs, as well as a related charge of US$315 million relative to earlier retirements, enhanced benefits, and the accelerated recognition of future service costs associated with its U.S. hourly pension plan; and -- other gains of US$148 million associated with its equity interest in a non-recurring gain that Mazda realized on the transfer of its pension liabilities back to the Japanese government. The Company further disclosed that it continues to have a strong year-to-date sales growth in major international markets, including a 100% increase in China, and a 75% increase in India. About Ford Motor 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. The Troubled Company Reporter - Asia Pacific reported on July 3, 2006, that Moody's Investors Service lowered the Corporate Family and senior unsecured ratings of Ford Motor Company to B2 from Ba3. Standard & Poor's Ratings Services, on the other hand, lowered its corporate credit rating on Ford Motor Co. and its related units to 'B+' from 'BB-' and affirmed its 'B-2' short-term rating. On June 12, 2006, Fitch Ratings downgraded Ford Motor's issuer default rating to B+ from BB, and its senior unsecured ratings to BB- from BB. HINDUSTAN PETROLEUM: Earmarks INR918 Crore for Expansion Plan ------------------------------------------------------------- Hindustan Petroleum Corporation Limited allots around INR918 crore for the expansion and modernization of its retail network next fiscal year, Zee News reports. Petroleum Minister Murli Deora told Zee News that the state oil refiner will set up 800 new petrol outlets by 2006-2007. According to Mr. Deora, Hindustan Petroleum will invest INR155 crore in setting up new petrol pumps and INR174 crore in upgrade of existing outlets. Another INR217 crore would be utilized on automation of retail outlets, INR175 crore on procurement of equipment and INR197 crore on auto liquefied petroleum gas and vapor recovery units. In line with its expansion efforts, Hindustan Petroleum recently tied up with Reliance Infrastructure for the construction of a 10-acre state-of-the-art gas station at NH1 near Rajpura, the Troubled Company Reporter - Asia Pacific reported on July 3, 2006. According to TCR-AP, the project will cost INR25 crore, of which Hindustan Petroleum will invest around INR6 crore. The gas station will have a capacity of filling 40 vehicles simultaneously. The first phase of the project will be operational by year-end. About Hindustan Petroleum Mumbai-based Hindustan Petroleum Corporation Ltd -- http://www.hindustanpetroleum.com/-- was formed in 1974 on nationalization of ESSO India operations. The operations of Caltex were merged in 1976. With two refineries at Mumbai and Vizag, Hindustan Petroleum is currently is the second largest player in both the Indian oil sector as well as the highly competitive lubricants market. However, the Company has lately been incurring losses due to a government mandate to sell fuel at subsidized prices. The Company is counting on a Government bailout to save it from bankruptcy. GENERAL MOTORS: Secures New US$4.63-Billion Debt Facility --------------------------------------------------------- General Motors Corporation executed a US$4.63 billion amended and restated credit agreement with a syndicate of banks on July 20, 2006. The Agreement provides for both an extended facility of US$4.48 billion that will terminate on July 20, 2011 and for a non-extended facility of US$152 million that expires on June 16, 2008. Only the extended facility, which consists of 97% of the combined facility, is secured. The collateral for the secured facility consists of certain North American accounts receivable and inventory of General Motors Corporation, Saturn Corporation, and General Motors of Canada, Limited, certain plants, property and equipment of General Motors of Canada and a pledge of 65% of the stock of the holding company for the General Motors indirect subsidiary, GM de Mexico. In addition to securing the extended secured facility, the collateral will also secure certain lines of credit, Auto Clearing House and overdraft arrangements and letters of credit provided by the extending secured lenders totaling US$1.5 billion. At GM's current secured credit rating, all-in cost of borrowings from extending lenders will be LIBOR plus 225 basis points, while all-in costs of borrowings from non-extending lenders will be LIBOR plus 160 basis points. In addition, extending lenders received a consent fee of 40 basis points. In the event of certain work stoppages, the facility will be temporarily reduced to US$3.5 billion. The Agreement removes any existing uncertainty as to whether the lenders would be required to honor a borrowing request by General Motors. The Agreement will be filed with the Form 10-Q for the quarter ended June 30, 2006. About General Motors General Motors Corp. -- http://www.gm.com/-- the world's largest automaker, has been the global industry sales leader for 75 years. Founded in 1908, GM today employs about 327,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 33 countries, including India. In 2005, 9.17 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM operates one of the world's leading finance companies, GMAC Financial Services, which offers automotive, residential and commercial financing and insurance. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. On June 30, 2006, Standard & Poor's Ratings Services held all its ratings on General Motors Corp. -- including the 'B' corporate credit rating and the 'B+' bank loan rating, but excluding the '1' recovery rating -- on CreditWatch with negative implications, where they were placed March 29, 2006. On June 22, 2006, Fitch assigned a rating of 'BB' and a Recovery Rating of 'RR1' to General Motor's new US$4.48 billion senior secured bank facility. The 'RR1' (recovery of 90%-100%) is based on the collateral package and other protections that are expected to provide full recovery in the event of a bankruptcy filing. On June 21, 2006, Moody's Investors Service assigned a B2 rating to the secured tranches of the amended and extended secured credit facility of up to US$4.5 billion being proposed by General Motors Corporation, affirmed the company's B3 corporate family and SGL-3 speculative grade liquidity ratings, and lowered its senior unsecured rating to Caa1 from B3. Moody's said the rating outlook is negative. * ASEAN Halts Free-Trade Talks with India ----------------------------------------- The Association of Southeast Asian Nations has suspended free- trade agreement negotiations with India because of New Delhi's reluctance to open its markets, The Financial Express reports. The FTA discussions have become difficult following India's demand to exclude some 850 goods from the pact, The Express says. Last year, the so-called exclusion list included nearly 1,400 goods, which account for some 30% of Southeast Asia's exports to India. According to The Express, India -- which adopted a free market economy in the early 1990s -- is keen to expand trade ties with the 10 ASEAN member nations, but wants to shelter its own sensitive sectors, such as agriculture, textile and other industries, which provide livelihoods to millions of Indians. Last month, India's state minister for commerce and industry Jairam Ramesh said New Delhi expected a deal "in a few months," The Express relates. "India was serious about extending trade ties with the region and was ready for negotiations," Bernama News quoted Indian high commissioner RL Narayan as saying. "We remain eager for talks," Mr. Narayan said. "We have revised substantially the exclusion list and met our obligation. We gave the list to ASEAN and ASEAN has to look at that. India is fully prepared to negotiate, we invite ASEAN to discuss with India," Mr. Narayan added ================= I N D O N E S I A ================= * S&P Raises Foreign Currency Rating to BB- ------------------------------------------- Standard & Poor's Ratings Service had, on July 26, 2006, raised its long-term foreign currency rating for Indonesia to 'BB-' from 'B+', and the long-term local currency rating to 'BB+' from 'BB'. S&P also affirmed the country's 'B' short-term rating. The upgrades reflect Indonesia's improving fiscal and external performance, which led to declining debt burdens. Small but persistent, central government primary surpluses and a falling interest burden, coupled with the rupiah's appreciation, are projected to lower central government debt to just under 50% of 2006 GDP, down from over 100% in 2000. The central government continues to prudently manage its fiscal position, and although the budget deficit target for 2006 has been upwardly revised, the country's progress toward an eventual balanced budget in the medium term remains on track. Similarly, current account surpluses, in conjunction with recent foreign direct investment inflows, have halved the country's net external debt (of liquid assets) to an estimated 94% of current account receipts in 2006. Supporting these positive trends is an improvement in Indonesia's political environment resulting from a more robust democracy, and from the government's commitment to infrastructure development, tax, and subsidy rationalization, and financial sector reforms. S&P credit analyst Sami Hamid said, "While implementation remains a challenge, an encouraging development has been the speed at which difficult, but much-needed, reforms have been undertaken, especially since the new economic team was put in place in December 2005. Going forward, the relationship between the executive and the legislature will continue to evolve, with the key challenges being the administration's ability to build support for its reforms and secure timely parliamentary approval." Indonesia's ratings continue to be constrained by a high external debt and a government debt burden that, while not out of line with peers, proved unmanageable in the past and contributed to the need for sovereign debt rescheduling in 1999- 2002. In addition, the lack of transparency in the finances of public sector-related entities, and in coordinating policies between the fiscal and monetary authorities, still need to be resolved. Indonesia could also bear the cleaning-up cost associated with removing non-performing loans from state-owned banks, estimated at 3% of GDP. Mr. Sani explained that other factors constraining Indonesia's creditworthiness are institutional and structural impediments, both of which restrict growth to levels that are insufficient to generate jobs at the pace needed to reduce poverty significantly. Competitiveness is hindered by infrastructure shortfalls, legal uncertainties, corruption, and labor market rigidities. The rate of economic expansion remains below potential, with a higher level of growth hinging largely on the success of the reform measures set out. The stable outlook balances Indonesia's improved economic management and falling debt burdens against continuing vulnerability to adverse exchange rate movements, higher interest rates, and inflationary pressures. The outlook is also based on expectations that Indonesia's external liquidity will continue to strengthen through a combination of current account surpluses and improved investment flows, as investors take heart from ongoing economic reform under the new administration. "A faster implementation of reforms on taxes, labor, infrastructure development, and the legal structure, coupled with improved public sector transparency, would favorably influence the rating outlook on Indonesia," Mr. Sani noted. "Conversely, the ratings could be downgraded if institutional weaknesses hinder policy coordination and impede timely response to political and external shocks, if reform efforts stall either at the legislative or implementation stage, or if the government draws back from its present fiscal consolidation path," he concluded. ========= K O R E A ========= HANA BANK: Wants Higher Lending Rates For Higher Risk Homeowners ---------------------------------------------------------------- Hana Bank plans to apply different borrowing rates for housing loans depending on certain housing conditions, The Korea Times reports. According to The Times, Hana will consider various conditions like the location, age and size of houses, and owner's credibility, to set the borrowing rates for loans. Hana Bank President Kim Jong-ryul said that the bank is considering revamping the standard interest rates for mortgage loans to reduce mortgage loan risks amid rising concerns about real estate bubble. Under the plan, homeowners in areas designated by the Government as speculative zones may face higher borrowing rates. Hana currently offers 5.65-6.75% interest rates to mortgage loan borrowers. If the plan is carried out, owners in the so-called speculative zones may face interest rates of at least 6.65%. Mr. Kim added that more ordinary homebuyers will be offered at least a percentage point lower rates. Hana is the first bank to apply higher interest rates to homeowners in speculative areas, but other banks are expected to follow suit. Hana Bank -- http://www.hanabank.com/-- provides financial services to individuals and corporate clients such as international banking, trust business and security investment business through 298 domestic branches and one head office. Fitch Ratings gave Hana Bank an Individual Rating of B/C. Moody's Investors Service gave the bank a D+ Bank Financial Strength Rating. HYNIX SEMICONDUCTOR: Sued by Spitzer for Price-Fixing ----------------------------------------------------- Hynix Semiconductor Inc. is one of the eight memory chip makers being sued by New York Attorney General Eliot Spitzer for price fixing, Bloomberg News reports. Attorney General Spitzer claims that the conspiracy to fix prices added US$1 billion to chip costs while driving up retail prices for personal computers and other electronics. Bloomberg says that the lawsuit, filed on July 13, 2006, with the federal court in Manhattan followed an announcement by California Attorney General Bill Lockyer that 34 states plan to seek "hundreds of millions of dollars" from seven of the same companies, including Infineon Technologies AG and Hynix Semiconductor, in a separate price fixing suit to be filed tomorrow with a federal court in San Francisco. All 35 states claim that consumers and state governments overpaid for products containing memory chips from 1998 to 2002 because the companies inflated prices. The California Complaint will name Infineon, Hynix and Boise, Elpida Memory Inc., Nanya Technology Corp., NEC Electronics America Inc. and Mosel Vitelic Inc. Mr. Spitzer's lawsuit names the same seven companies, and Samsung. According to Bloomberg, the cases open a new chapter of antitrust claims against memory chip makers, which have been fined US$731 million in a four-year-old investigation on global price fixing conspiracy by the U.S. Justice Department. Bloomberg recounts that Samsung, Hynix, Neubiberg, Infineon, Elpida and 12 individuals have plead guilty. Bloomberg cites the attorneys general as saying that the companies conspired to limit chip supplies and agreed on what to charge customers in an effort to artificially drive up prices. Attorney General Spitzer claimed that the companies went to great lengths to keep their conspiracy secret. The New York suit is part of a coordinated effort with the other attorneys general, and seeks reimbursement for the overcharges, which Mr. Lockyer estimated at "hundreds of millions of dollars" nationwide, Bloomberg notes. Antitrust law allows plaintiffs to seek triple-damages. Maryland Attorney General Joseph Curran and Texas Attorney General Greg Abbott indicated that their states will join the California lawsuit. About Hynix Semiconductor Headquartered in Ichon, South Korea, Hynix Semiconductor Inc. -- http://www.hynix.com/-- is a semiconductor manufacturer. Through a merger with LG Semiconductor in 1999, Hynix Semiconductor now has the world's largest dynamic random access memory chip production capacity as well as the industry's best technical development capacity by fully exploiting synergies resulting from the historical integration of both companies. Standard & Poor's Ratings Services gave Hynix, and its U.S. subsidiary, Hynix Semiconductor Manufacturing America Inc., a 'B+' long-term corporate credit rating. SK CORP: Shutdowns Offset Record Sales; 2Q Profit Declines 22% -------------------------------------------------------------- SK Corporation's net profit for the second quarter of 2006 fell 22.4% to KRW305.2 billion from the recorded net profit of KRW393.5 billion in the second quarter of 2005, according to a company release. The 2006 second quarter result is 49.7% lower than the recorded profit of KRW607.2 billion for 2006 first quarter. According to Bloomberg News, SK Corp. shut plants accounting for 425,000 barrels a day of production capacity for as long as 28 days during the quarter, cutting earnings from fuel sales. Yet, SK states that refining margins, the profit from processing each barrel of crude oil, will increase in the second half when demand in Asia's third-largest economy peaks and on "strong" product prices. The company reported a second quarter sales revenue of KRW5.75 trillion, up 8.9% QoQ from KRW5.28 trillion and 10% YoY from KRW5.18 trillion. The increased sales revenue was driven by high crude oil prices and the continued rise in petroleum and petrochemical product prices. Operating profit increased 29.4% YoY and decreased 6.9% QoQ to KRW307.1 billion. Non-operating profit in the three months ended June 30, 2006, was KRW105.8 billion, down 63.6% from the result in the same period of 2005 and down 75.2% from the previous quarter, because of smaller contributions from affiliates including SK Networks Co. and SK Incheon Oil. Half-Year Accounts SK Corp. says that its half-year results paint a rosier picture, due to a stronger first quarter performance, resulting in a record profit of KRW607.2 billion. Sales in the first half of 2006 increased 11% to KRW11.03 trillion and net profit soared 17.3% to KRW912.4 billion. For the first half of 2006, SK Corp.'s Petroleum products contributed 72% of total sales at KRW7.90 trillion, or 12% higher than the KRW7.07 trillion recorded in the previous year. This segment also showed a 71% improvement in operating profits to KRW269.4 billion. These increases were spurred by higher refining margins and rising product prices which proved strong enough to offset the effects of regular maintenance shut-downs in the company's refining facilities. Petrochemical sales, which accounts for 22% of total sales, increased 9% to KRW2.46 trillion in the first six months of this year due to higher prices. The company adds that increased profits in the aromatics segment contributed significantly to the improved quarterly comparison for petrochemical operating profits. High oil prices and strong market conditions for gasoline in the U.S. pushed up the prices of aromatics base products, increasing the aromatics profits, in spite of the rise in feedstock prices linked to high crude oil prices. Lubricant products got 23% more sales in the first half of 2006 to KRW366.1 billion, which paved the way for a 39% increase in operating profit to KRW61.8 billion from KRW44.6 billion a year before. The company explains that the improved operating profit is attributed to many factors, including the emergency shut- downs at several Lube Base Oil plants in North America and Europe, which tightened up the supply-demand balance. Other factors include effective pricing management -- successfully reflecting the rising raw material costs to the product prices - and improved operational efficiency -- from reinforced marketing activities overseas in Europe and the United States. According to the company release, SK Corp President & Chief Executive Officer Heon Cheol Shin said, "We are satisfied with these solid first half operating profits -- results which were improved by higher refining margins. The recoveries of margins, including the average Dubai simple refining margin and the cracking margin, have allowed us to gain encouraging momentum in the second quarter of 2006." Mr. Shin added that SK Corp's solid financial performance will continue into the second half of 2006, stating "[i]mproved refining margins, coupled with the increase in additional petrochemical products from operation of the New Reformer, will help SK Corporation achieve our 2006 operating guidance of KRW 1.41 trillion." The company's financial report for the 2006 first half is available for free at: http://bankrupt.com/misc/SKCORP1H.pdf About SK Corporation Headquartered in Seoul, South Korea, SK Corporation -- http://eng.skcorp.com/-- is an energy and petrochemical company with 4,916 employees and 22 offices around the world in 2005. The company is strategically positioned as Korea's largest and Asia's leading refiner next to Sinopec and PetroChina. SK Corp. currently explores, develops and produces oil in 13 nations that span Africa, Asia and the Americas, including Russia, Vietnam, Indonesia, Australia, Brazil, Cote d'Ivoire, United States, and Peru. Moody's Investors Service gave SK Corp. a 'Ba1' Foreign Currency Long-Term Debt Rating effective February 17, 2006. =============== M A L A Y S I A =============== KRAMAT TIN: Scheme of Arrangement Wins Shareholders' Favor ---------------------------------------------------------- On July 26, 2006, Kramat Tin Dredging Berhad's shareholders approved the Company's Scheme of Arrangement. The Scheme is part of the Company's restructuring plan, which was unveiled on April 24, 2004, and approved by the Securities Commission on June 9, 2005. Meanwhile, the shareholders also passed all resolutions tabled at the Company's Extraordinary General Meeting held on July 25, 2006. About Kramat Tin Dredging Headquartered in Kuala Lumpur, Malaysia, Kramat Tin Dredging Berhad is currently in the process of identifying suitable business opportunities. The Company ceased its mining operations in 1988. In 2001, Bursa Malaysia Securities Berhad classified Kramat Tin as a Practice Note 10 company, given its inadequate level of operations. To avoid being de-listed, Kramat Tin, in 2004, entered into an arrangement to restructure its operational and financial position. On April 24, 2004, the Company's restructuring plan was unveiled and subsequently approved by the Securities Commission on June 9, 2005. For the financial year ended December 31, 2005, Kramat Tin registered a smaller loss of MYR524,000 compared with the MYR1.3-million net loss in 2004. KRAMAT TIN: Prudent to Assume Kramat Tin Listing Status in 2007 --------------------------------------------------------------- Prudent Location Sdn Bhd is expected to assume the listing status of MMC Corporation's subsidiary, Kramat Tin Dredging Bhd, early next year under a restructuring exercise that will turn the Company into a property development group, The Edge Daily says. MMC's acting chief executive officer Feizal Ali tells The Edge that the restructuring exercise is expected to be completed by year-end. Mr. Ali is confident that Kramat Tin will bounce back to black immediately in the first quarter of 2007. Kramat Tin, which will become a subsidiary of Prudent, has had no core business since it ceased mining after its only dredge was shut down in 1988, The Edge reveals. The Company has also been classified as a Practice Note 10 firm given its inadequate level of operations. The Edge relates that under the restructuring: * S P Setia Bhd will hold 25.21%, * Kelana Ventures Sdn Bhd will hold 25.21%, * Putrajaya Holdings Sdn Bhd will hold 18.78%, and * Abad Kilat Sdn Bhd will hold 5.79%, of Prudent, with the remaining 25.01% under the public spread. According to The Edge, Tan Sri Syed Mokhtar Albukhary, who now holds 52.89% of Kramat Tin, will have a 25.21% stake in Prudent via his 99.99% interest in Kelana Ventures. MMC will cease to be a shareholder of Kramat Tin, The Edge says. Mr. Feizal says Kramat Tin's shareholders would receive shares in Prudent as well as Prudent's irredeemable convertible preference shares in exchange for Kramat Tin shares, The Edge relates. About Kramat Tin Dredging Headquartered in Kuala Lumpur, Malaysia, Kramat Tin Dredging Berhad is currently in the process of identifying suitable business opportunities. The Company ceased its mining operations in 1988. In 2001, Bursa Malaysia Securities Berhad classified Kramat Tin as a Practice Note 10 company, given its inadequate level of operations. To avoid being de-listed, Kramat Tin, in 2004, entered into an arrangement to restructure its operational and financial position. On April 24, 2004, the Company's restructuring plan was unveiled and subsequently approved by the Securities Commission on June 9, 2005. For the financial year ended December 31, 2005, Kramat Tin registered a smaller loss of MYR524,000 compared with the MYR1.3-million net loss in 2004. KRETAM HOLDINGS: To List and Quote More Shares on July 28 --------------------------------------------------------- Kretam Holdings Berhad's additional 220,774 new ordinary shares of MYR1 each, will be granted listing and quotation on July 28, 2006. The new shares were derived from the conversion of MYR220,774 redeemable convertible secured loan stocks-C 200/2006 into 220,774 new ordinary shares. The Troubled Company Reporter - Asia Pacific reported on July 21, 2006, that the Company's additional 10,982,839 new ordinary shares derived from the conversion of MYR10,982,839 Redeemable Convertible Secured Loan Stocks-C 2003/2006 were listed and quoted on July 21, 2006. About Kretam Holdings Kretam Holdings Berhad is a Malaysian company engaged in the operation of an oil palm plantation and investment holding. 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. 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. 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. MALAYSIA AIRLINES: Former PM Didn't Force Chairman to Buy Shares ---------------------------------------------------------------- Former Malaysian Prime Minister Tun Dr. Mahathir Mohamad denies accusations that he forced former Malaysia Airlines Chairman Tan Sri Tajuddin Ramli to buy shares in the national carrier to bail out the central bank, The Star Online reports. Mr. Tajudin had alleged that he was asked by Dr. Mahathir to buy a 32% stake in Malaysia Airlines from Bank Negara in 1994, Antara News relates. According to The Star, Mr. Tajuddin had made this claim in a counter suit filed on June 29, 2006, against the Government and 24 other parties over his purchase of Malaysia Airlines shares. The New Straits Times relates that the counter claim followed a complaint filed on May 11, 2006, by Pengurusan Danaharta Nasional Bhd and its subsidiaries against Mr. Tajuddin, seeking MYR589 million as payment for the balance of a MYR1.79-billion loan granted to him in 1994 to buy Malaysia Airlines shares. Mr. Tajuddin insisted that the shares were sold to him for twice the market price in the midst of Bank Negara's losses in foreign exchange as a result of speculation in the international currency market. He added that he had to keep these backroom negotiations secret because the market would have been spooked if details were leaked out, The New Straits Times says. However, Dr. Mahathir refuted Mr. Tajudin's allegations, saying that he never persuaded the former Malaysia Airlines chair to buy the carrier's shares or do any form of national service, The Star reports. Dr. Mahathir tells The Straits Times that he remembered former Finance Minister Tun Daim Zainuddin informing him of Mr. Tajudin's intention to acquire the airline's shares. Dr. Mahathir further says that the Government had rejected an initial proposal by Mr. Tajudin, who was then also Celcom chairman, to exchange the telecommunication firm's shares for Malaysia Airlines'. Mr. Tajudin explains that he is taking legal action because the Government allegedly reneged on an agreement to protect him from losses and liabilities, Antara News relates. 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. MALAYSIA AIRLINES: To Fly Dubai-Damascus Route Temporarily ---------------------------------------------------------- Malaysian Airline System Berhad will service the Dubai-Damascus route between July 28 and August 29, 2006, to replace the temporarily suspended Dubai-Beirut flights, Forbes News reports, citing AFX News Limited. The new service will operate three times a week to assist passengers whose travel to and from Beirut, Lebanon on Malaysia Airlines was disrupted after the closure of the Beirut International Airport, AFX says. The Troubled Company Reporter - Asia Pacific reported on July 18, 2006, Malaysia Airlines has suspended its thrice-weekly Airbus A330 services to and from Beirut effective July 17, 2006, as the airport serving the city has been temporarily closed. Malaysia Airlines will resume its flights to the Lebanese capital once the airport is opened. 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 CORPORATION: Public Spread Meets Listing Requirement -------------------------------------------------------- MBf Corporation Berhad's public shareholding spread as of June 30, 2006 is 54.69% comprising of 24,757 public shareholders holding not less than 100 shares each. Accordingly, 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 MBf Corporation Headquartered in Kuala Lumpur, Malaysia, MBf Corporation Berhad is principally involved in promoting and selling property, club and timeshare memberships; leasing factoring facilities, credit cards, consumer financing and related products and property development. Other activity include investment holding. The Group operates in three main areas, namely, Malaysia, Indonesia and Hong Kong and Taiwan collectively. The Group's principal activities are mainly operated in Malaysia except for the credit card business, which is carried out in Indonesia. The Group has no significant operations in Hong Kong and Taiwan other than certain residual assets from a subsidiary that has since been liquidated in Taiwan. The Company is classified under Bursa Malaysia Securities Berhad's Practice Note 17 category and is required to formulate a plan to raise its shareholders' equity to aviod getting delisted. MITHRIL BERHAD: MARC Puts Rating on Watch with Negative Outlook --------------------------------------------------------------- The Malaysia Rating Corporation Berhad has affirmed the BBB rating on Mithril Berhad's MYR59-million redeemable Convertible secured loan stocks. Furthermore, the rating agency warned that the rating will be placed on MARCWatch with a negative outlook. About Mithril Berhad Headquartered in Kota Kinabalu, Malaysia, Mithril Berhad -- http://www.mithril.com.my/-- manufactures bricks and polyurethane products. Its other activities include dealing and distribution of bricks and building materials, development of properties, property management and investment holding. Mithril was incorporated as a shell company in April 2002 to facilitate the proposed restructuring exercise of Tajo Berhad, which was an affected listed issuer pursuant to the Kuala Lumpur Stock Exchange's Practice Note 4/2001. The restructuring exercise involved the proposed capital reconstruction and cancellation of share premium account of Tajo, a scheme of arrangement, fund raising exercise, acquisition of Saferay (M) Sdn Bhd (Saferay) & Menara MAA in Kota Kinabalu and Kuching, and debt settlement of Tajo's secured and unsecured creditors. Upon the completion of the restructuring exercise, Mithril held a 100% stake in Tajo and assumed the latter's listing status. Mithril, however, started to incur consecutive losses since its listing and has so far failed to turn the business around. For the quarter ended March 31, 2006, the Company registered a net loss of MYR1.5 million. As of March 31, 2006, the Company registered accumulated losses of MYR182 million. POLYMATE HOLDINGS: Bourse Denies Deadline Extension Request ----------------------------------------------------------- On July 24, 2006, Bursa Malaysia Securities Berhad rejected Polymate Holdings Berhad's application to extend the deadline for the submission of its regularization plan. However, Polymate Holdings notes that it will appeal Bursa Securities' rejection of the application. The Company previously applied to Bursa Malaysia Securities Berhad for an extension of time from August 1, 2006, to January 31, 2007, to submit its regularization proposal to relevant authorities for approval. The Bourse warned that it may suspend trading of the Company's listed securities on August 7, 2006, if the Company fails to submit the Plan by July 31. About Polymate Holdings Headquartered in Selangor Malaysia, Polymate Holdings Berhad -- http://www.polymate.com.my/-- is engaged in the manufacturing and marketing of lead acid batteries for the automotive and related industries. It is also engaged in the manufacturing and dealing of plastic articles and products, corrugated carton boxes and related products, manufacturing and trading of door closers and trading of building materials, investment holding and provision of corporate and financial support services. The Group operates in Malaysia, Australia, New Zealand and Europe. Polymate Holdings is in the process of working out possible plans to regularize its condition. Operations in its subsidiaries will be revived when a workable restructuring scheme is formalized with its lenders and when fresh working capital can be injected into the operations. On April 28, 2006, Bursa Malaysia Securities Berhad publicly reprimanded and imposed a total fine of MYR84,000 on Polymate Holdings Berhad for breach of the Bourse's Listing Requirements. This was followed by another public reprimanded on May 26, 2006. Meanwhile, Polymate says that it is still negotiating with its lenders to restructure the Group's credit facilities and is working on various schemes to regulate its financial position. SETEGAP BERHAD: Court Extends Restraining Order Until October 23 ---------------------------------------------------------------- On July 25, 2006, the High Court of Malaya - Kuala Lumpur granted Setegap Berhad a restraining order until October 23, 2006. As reported in the Troubled Company Reporter - Asia Pacific on June 21, 2006, the High Court had extended an Interim Restraining Order granted to the Company on April 27, 2006, to July 25, 2006. The Restraining Order allows the Company to implement its debt restructuring plan, which was announced on January 11, 2006. The Plan consists of a proposed: -- debt settlement of all outstanding debt owed by the Company to its secured lenders and trade creditors for a total of MYR87.6 million; -- exchange of Setegap shareholders' ordinary shares of MYR1.00 each with Newco, or new company, shares on the basis of one Newco share for every five existing Setegap shares; -- transfer of listing status to Newco; and -- disposal by the Newco of the entire issued and paid-up capital of Setegap for a nominal consideration of MYR1.00. About Setegap Berhad Headquartered in Petaling Jaya, Malaysia, Setegap Berhad's principal activities consist of the construction and maintenance of roads, railways and building, including services rendered on quarrying. The Company's other activities include manufacturing and selling offroad construction equipment, asphalt plants, mixing plants, asphalt emulsions and premix. The Group also provides mechanical and electrical services, leases machinery and investment holding. Setegap's cash flow and profitability were adversely affected by the Asian financial crisis in 1997/98. In August 1999, Setegap had sought the assistance of the Corporate Debt Restructuring Committee on the restructuring of its MYR95.29-million debt. The Company entered into a debt restructuring agreement with its creditors in October 2000. However, the October 2000 debt restructuring agreement was technically in default in 2003 due to the Company's unsuccessful attempts to raise funds to regularize its debt problems. Setegap and its subsidiaries suffered losses for the past four consecutive financial years, since the financial year ended December 31, 2002, leading to a negative unaudited shareholders' fund of MYR98.25 million as of Dec. 31, 2005. On November 11, 2005, Bursa Securities had served the Company with a notice to show cause on the delisting of the securities of the Company. Without a scheme to regularize its financial position, Setegap will risk being delisted. On February 24, 2006, Bursa Malaysia required the Company to submit its proposed regularization plan to relevant authorities to avoid de-listing procedures. As of March 31, 2006, the Company's balance sheet showed MYR71,401,000 in total assets and MYR176,007,000 in total liabilities, resulting in a stockholders' deficit of MYR104,606,000. * MIER Releases Report on Malaysian Economic Outlook ---------------------------------------------------- A recent study released by the Malaysian Institute of Economic Research revealed that although the global economy continues to remain steady, there are increasing concerns over downside risks. According to MIER, escalating tensions in the Middle East are making matters worst, as oil prices jump to US$78 per barrel. Persistently high oil prices have fuelled inflationary pressures in developed countries. To contain the inflationary threat, many central banks have raised interest rates. The United States Fed raised interest rates again in late June 2006, at the expense of slower economic growth in late 2006 and 2007. This will have a dampening effect on the global economy, and Malaysia will not be insulated. Export demand could possibly be affected, leading to a moderation in the growth pace. Growth forecasts of many developed countries have been revised downwards in view of higher energy prices and tighter monetary policy, MIER said. In the report, MIER noted that the Malaysian economy remains stable with a growth of 5.3% in the first quarter of 2006. After the reduction in oil subsidy in February 2006, the inflation rate had jumped from 3.2% in January 2006 to 4.6% in April 2006. With the 12% hike in electricity tariff in June 2006, the inflation rate may edge up further, notwithstanding a moderation in May 2006. Bank Negara had already increased the Overnight Policy Rate in February 2006 and April 2006 to 3.5%, from 3% in December 2005. The real interest rate has become more negative with the higher inflation rate. Major economic indicators like manufacturing output and exports, were growing moderately in May 2006. The leading index, however, has remained somewhat flat. Private consumption growth had eased to 7.5% in 1Q/FY06, from 9.0% in 4Q/FY05. MIER's surveys find that consumer sentiments have improved in 2Q/FY06, while business confidence is sustained, despite higher oil prices and electricity tariffs. Indicating a warm but cautious business climate, the Business Conditions Index was stable at 102.4 points in 2Q/FY06, from 102.5 points in 1Q/FY06. Better domestic and export orders have been able to partly offset the rise in production costs. Meanwhile, the Consumer Sentiments Index rebounded to 104.2 points in 2Q/FY06, from a low reading of 90.1 points in 1Q/FY06. The two macro surveys suggest that the economy could remain steady in the near term, amidst expectations that conditions may cool down later in the year. The rise in the cost of living, due to higher oil and electricity prices, will have a dampening effect on private consumption, MIER disclosed. This is made worse by the rise in interest rates, which had taken place twice already this year. If inflationary pressures persist, Bank Negara could possibly raise the interest rate further, since it is still below the "neutral" level. Higher interest rate is also needed to address the negative real interest rate gap and to narrow the interest rate differential against the US rate. The more encouraging prospect is for investment to become more active with the commencement of the 9th Malaysia Plan, with the impact starting to kick-in in the second half of 2006. The construction sector will get a boost from spending on infrastructure projects, and this could offset some of the emerging weaknesses in external demand, which could become more evident in 4Q/FY06. The greater concern is over export performance, if the external environment slows down markedly in late 2006. This has not been reflected in Malaysia's export data till May 2006. Although the U.S. economy grew strongly in 1Q/FY06, signs of slowing down are appearing, as the housing market calms and cautious consumers are faced with higher interest rates and rising energy bills. MIER surveys show that business and consumer confidence is still holding up in 2Q/FY06. But, the economic climate could cool down later in the year as consumers become more cautious in spending. It will take awhile before plans from the 9MP translate into actual investment activities. Private investment might also moderate due to rising costs and higher interest rates. The fear is that as Malaysia's main export markets decelerate, external demand would slacken, and this would also impact on domestic activity. Taking into account the impending easing in the second-half of 2006, MIER is revising its GDP estimates for this year marginally lower, to 5.2% from 5.5% previously. Significant revisions made on growth prospects of OECD countries for 2007 have compelled MIER to markedly lower Malaysia's GDP growth forecast for 2007. As the slowdown becomes more pronounced in developed countries in 2007, with limited counterbalance from domestic demand, Malaysia's GDP growth could ease to 4.8% next year. ===================== P H I L I P P I N E S ===================== BANK OF PHILIPPINE ISLANDS: Reports 26.6% Rise in Q1 Net Income --------------------------------------------------------------- The Bank of the Philippine Islands posted a net income of PHP2.5 billion for the quarter ended March 31, 2006, according to the Bank's quarterly report submitted to the Philippine Stock Exchange. The first quarter 2006 figure is 26.6% higher than the PHP2-billion net income posted for the same quarter in 2005. Net interest income for the 2006 first quarter increased by PHP112 million or 2.5%, whereas interest expenses rose PHP695 million or 26.6% due to higher volumes from both the Prudential Bank merger and organic growth. Interest expense on deposits largely accounted for the interest expense increase with PHP675 million or 27% increase on higher deposit base. Interest on borrowings grew PHP19 million or 16.8% as the share of deposit substitutes to total borrowings increased. Other income rose to PHP2.7 billion, which is 21.6% higher than last year, mainly from the PHP539-million increase in income from foreign exchange and securities trading as the Bank seized opportunities to unload its securities inventory. Service charges and commissions were also up by PHP55 million due to higher transaction volume. Other Expenses' increase of PHP160 million was attributed to higher compensation and fringe benefits cost (up by PHP242 million) and occupancy and equipment related expenses (up by PHP180 million) on account of additional expenses from the ex- Prudential Bank operations and computer equipment depreciation. Key Performance Indicators These ratios, applied on a consolidated basis, are used to assess the performance of the Bank and its majority-owned subsidiaries: March 31, March 31, 2006 2005 --------- --------- Return on Equity 17.7% 14.9% Return on Assets 2.0% 1.8% Net Interest Margin 4.4% 4.7% Operating Efficiency Ratio 52.0% 54.1% Capital Adequacy Ratio 16.3% 21.0% Total resources as of March 31, 2006, stood at PHP503.8 billion, 4.8% lower than the PHP529.3-billion total resources as of the previous quarter. The drop was due to the PHP21.7-billion decrease in deposits and PHP6.1-billion decrease in bills payable. Decreases were noted on all types of deposits with time deposit showing the biggest drop of PHP15.1 billion. Time deposit placements were shifted to other products. During the 2006 first quarter accrued taxes, interest and other expenses payable decreased by 17.4% on lower volume of interest bearing liabilities and actual payments of accrued expenses. Due to BSP and other banks and deferred credits and other liabilities likewise dropped by 15.3% and 7.6%, respectively. Capital funds were up by PHP3.9 billion or 6.5% largely due to the 2006 first quarter net income and marked-to-market gains on available for sale securities. Paid-in surplus increased by 21.6% on payment of stock subscriptions. The Bank's financial report for the quarter ended March 31, 2006, is available for free at: http://bankrupt.com/misc/BPI_17Q_Mar2006.pdf Bank of the Philippine Islands -- http://www.bpi.com.ph/-- is the oldest bank in South East Asia and is the second largest commercial bank in the Philippines in terms of assets, deposits, loans and capital base in the year 2003. The Bank has two major products and services categories: the first covers its deposit taking and lending/investment activities, while the second covers income derived from all services other than deposit taking, lending and investing, which are generally in the form of commissions, service charges and fees. Moody's Investors Service gave BPI a 'B1' Long-Term Bank Deposits Rating effective February 16, 2005. Fitch Ratings gave the bank an individual rating of 'C' effective October 26, 2000. EXPORT & INDUSTRY BANK: Board OKs Supplement to MOA with PDIC ------------------------------------------------------------- Export & Industry Bank disclosed to the Philippine Stock Exchange that, at its special Board of Directors' meeting on July 14, 2006, the Board approved, confirmed and ratified the Bank's execution of the Supplement to a Memorandum of Agreement dated Dec. 29, 2005, between the Bank and the Philippine Deposit Insurance Corp., among other parties. The Supplement to the MoA was executed on April 28, 2006. The Supplement to the MoA embodies additional terms and conditions of the rehabilitation package to be granted by PDIC to the Bank, which include: -- the withdrawal of AO Capita Partners Ltd, Outperform Holdings Inc., and Safeharbor Holdings, Inc. as parties to the MOA; and -- the accession of LeadBancfund Holdings, Inc., Apex Bancrights Holdings Inc., Hilltop Pacific Inc., Medco Asia Investment Corp., Bountiful Bancresources Holdings, Inc., Solid Payback Holdings Inc., Excalibur Holdings Inc. and Jaime C. Gonzalez, to the MoA. They agree to be bound by the terms and conditions of the MoA as if they were original parties. Headquartered in Makati City, Manila, Export and Industry Bank -- http://exportbank.com.ph/-- has 50 branches and has revived former Urban Bank unit under new names. Its principal activity is the provision of commercial banking services such as deposit taking, loans and trade finance, domestic and foreign fund transfers, treasury, foreign exchange and trust services. The Bank is saddled with the PHP10 billion non-performing assets it inherited from Urban Bank when the two banks merged in 2002. The TCR-AP reported on May 10, 2006, that Exportbank is scheduled to complete a rehabilitation program, which was proposed in order to reverse a 2005 net loss of PHP1.66 million, by 2007. In an agreement dated December 29, 2005, the Philippine Deposit Insurance Corp. will extend annual financial aid of PHP600 million to the Bank. GOTESCO LAND: SEC Orders Payment of Penalty for Late Filing ----------------------------------------------------------- In a disclosure to the Philippine Stock Exchange, Gotesco Land Inc. reveals that the Company received a letter from the Securities & Exchange Commission on July 25, 2006, ordering the payment of PHP107,500 for the late filing of its 2005 Annual Report on SEC Form-17A, as a result of the SEC's mandated adoption of new accounting standards. The Company will seek SEC approval to pay the penalty in 12 equal monthly installments. About Gotesco Land Inc. Gotesco Land, Inc., is the holding company of the Ever-Gotesco Group of Companies for its property development projects. The Company was originally registered with the Securities and Exchange Commission on August 28, 1935, as Surigao Consolidated Mining Co. Inc. The Company engaged in the exploration and mining of gold, silver, copper and iron ores in Surigao del Norte and Zamboanga del Sur. It was later renamed as Gotesco Land Inc. in May 1996 and converted into a holding firm by the Ever-Gotesco Group. Gotesco Land is currently engaged in several legal proceedings with former employees, the Bureau of Internal Revenue, Siana Gold Corp., and the Philippine Tourism Authority. The Company has not declared any dividends for the last three fiscal years. In 2005, the Company's debt-to-equity ratio stood at -280.83%, compared to -448.73% in 2004. The Troubled Company Reporter - Asia Pacific reported on June 7, 2006, that after auditing Gotesco Land's financial report for the year ended December 31, 2005, Laya Mananghaya & Co. raised significant doubt on the Company's ability to continue operating as a going concern due to its financial difficulties in generating enough cash flow to meet obligations on time and maintain operations. MANILA ELECTRIC: 2Q Net Income Falls 31% to PHP1.12 Billion ----------------------------------------------------------- Manila Electric Co. posted a 31.2% decline in its net income for the second quarter 2006 at PHP1.12 billion against a PHP1.62- billion net income for the same period last year, ABS-CBN News states. Meralco disclosed to the Philippine Stock Exchange, however, that its second-quarter income was a significant turnaround from its first-quarter net loss of PHP748 million, due to higher sales. The drop in net income was due to provisions for probable losses on a rate restructuring case pending with the Supreme Court, the Philippine Inquirer relates, citing XFN-Asia. The Company's net profit for the first half of 2006 is pegged at PHP367 million on revenues of PHP89.51 billion, compared to a PHP583-million net loss for the same period last year. Second- quarter revenues grew 2.7% to PHP47.89 billion, while expenses also increased 4.7% to PHP46.23 billion. ABS-CBN reports that capital expenditures also grew in the second quarter to PHP1.09 billion, and stood at PHP2.15 billion as of June 30, 2006. The Inquirer adds that Meralco set aside PHP1.6 billion in provisions for the second quarter, as it awaits an SC decision on a rate unbundling case. It had appealed a lower court decision to suspend a PHP0.17 per kilowatt-hour tariff increase, but the Court of Appeals denied the appeal, and the Company brought the case to the SC. Meralco reported a 2.13% increase in sales to commercial clients and industrial sales grew 1.23%, while residential sales dropped 4.21% on consumers' falling consumption due to rising electricity prices. The Company was able to reduce its power leakages to 11.35% in the second quarter from 12.37% in 2005. About Manila Electric Headquartered in Ortigas, Pasig City, the Manila Electric Company -- http://www.meralco.com.ph/-- is the largest utility in the Philippines, providing power to 4.1 million customers in metropolitan Manila and more than 100 surrounding communities. As deregulation takes effect, Meralco is reducing its dependence on state-owned National Power Corp. by increasing the amount of power it purchases from independent power producers. Meralco is also preparing for competition by moving into non-regulated activities, including energy consulting, independent power production, engineering, fiber optics, e-commerce, and real estate. * * * A March 31, 2006 report by the Troubled Company Reporter - Asia Pacific stated that the Company posted a 79.7% decrease in its 2005 net losses to PHP411 million from PHP2.03 billion in 2004, due to provisions for probable losses while awaiting a Supreme Court final decision on a pending unbundling rate case, and the adoption of new accounting standards. The TCR-AP further stated on April 27, 2006, that the Company filed a report with the Philippine Stock Exchange, indicating a 66.1% decline in its net loss from January to March 2006 to PHP748 million, against a PHP2.2 billion loss for the same period in 2005. According to a subsequent TCR-AP report on April 24, 2006, Manila Electric cannot seek a loan to expand its facilities unless it repays outstanding short-term debts amounting to around PHP4.7 billion. * Philippines Issues US$750 Million in Sovereign Bonds ------------------------------------------------------ The Philippines sold a two-part sovereign bond worth PHP39.11 billion with the reopening of its existing 2016 and 2031 dollar-denominated securities to finance its budget deficit, ABS-CBN News reports, citing Reuters News. The bonds, which were almost 17 times subscribed, had an initial yield guidance of 7.56 to 7.62% for the bonds due in 2016, while the 2031 bonds had a yield guidance 7.86 to 7.91%, however when they attracted up to PHP646.83 billion in orders, the 10-year bonds' yield guidance was lowered to 7.53 to 7.57% and the yield guidance for the 25-year bonds was lowered to 7.82-7.84%, Malaya News says. Citigroup, Deutsche Bank and JP Morgan were appointed as underwriters for the bond. The Philippine Star, citing National Treasurer Omar Cruz, states that the bond sale was the last for this year. The Monetary Board of the Bangko Sentral ng Pilipinas had approved the bond sale in the second quarter this year, giving a PHP51.73-billion ceiling for the global bond float. Malaya relates that HSBC fixed income research chief Dilip Shahani said that the timing of the bond offer was perfect, as it was offered one day after President Gloria Macapagal Arroyo's state of the nation address, which had proceeded smoothly. Manila Standard Today reveals that the Philippines is largely dependent on domestic and foreign borrowings to fund an expected PHP125-billion budget deficit, and the Government was slated to raise PHP160.36 billion from foreign commercial sources and PHP46.56 billion in official development aid from multilateral lending firms this year. The Government floated PHP108.63 in sovereign bonds last January 2006 to raise 70% of its commercial borrowing needs, but did not raise the full amount since the budget deficit was lowered in the first half of the year with increased sales tax collections and controlled spending, the Standard adds. ABS-CBN states that the Philippines' 2005 budget deficit stood at PHP14.5 billion, or 2.7% of gross domestic product. * S&P Affirms BB- Senior Unsecured Rating on Bonds -------------------------------------------------- Standard & Poor's Ratings Services had, on July 25, 2006, affirmed its 'BB-' senior unsecured rating on the Philippines' -- foreign currency BB-/Stable/B, local currency BB+/Stable/B -- bonds due in 2016 and 2031. The Philippine government is reopening the republic's 8% bond due in January 2016, and its 7.75% bond due in January 2031, and increasing the issue size by a total of PHP38.88 billion. S&P revised its outlook on the Philippine sovereign ratings for to stable from negative in February 2006, reflecting improved expectations on the prospects of policy continuity and adherence to fiscal consolidation, following the full implementation of the expanded VAT law, and an ameliorating political backdrop. "These developments point to an increased likelihood that overall deficit reduction and fiscal rationalization will continue and deepen, even as risks such as a resurgent political instability, implementation, and administrative weaknesses could persist," said S&P credit analyst Agost Benard. The principal factor constraining the ratings on the Philippines is its high public and external debt levels and the accompanying impairment of fiscal flexibility. The net general government debt is estimated at about 70% of GDP, compared with the median 48.5% for similarly rated sovereigns. This debt level significantly restricts discretionary spending, not least owing to the large proportion of expensive commercial borrowings. Thus, while decreasing from a peak of 38.4% in 2004, interest payments as a share of government revenue are still among the highest at over 30%. The creditworthiness of the Philippines is also constrained by a narrow tax base, which is a main contributing factor to its weak public finances. Notwithstanding recent improvements, tax revenues are a low 13.5% of GDP, compared with 17% in 1997. The Philippines' fiscal outcomes for the first half of 2006 were better than expected, however, on improved revenue collection and a decision not to lower VAT on oil, but to reduce the import duty on oil instead. The 2006 deficit target of 2.1% of GDP should be easily met and even outperformed, given that expenditure is constrained to 2005's level owing to Congress's failure to pass the 2006 budget. Even as revenues gradually rise, the fiscal outlook could be vulnerable due to politicking in the lead-up to the 2007 congressional elections, and the need to substantially increase spending--in particular capital expenditure--to boost future growth prospects. The outlook and ratings on the Philippines could benefit if fiscal and public sector reforms, including privatization of the electricity sector, become sufficiently entrenched to effect a material decline in government debt. That would ease external vulnerability, given that almost one-half its debt is denominated in foreign currency. If, however, the process lapses or becomes derailed by political imperatives, the outlook could again come under downward pressure. ================= S I N G A P O R E ================= COMSERV PTE: Intends to Pay Dividend on August 4 ------------------------------------------------ Comserv Pte Limited notifies parties-in-interest of its intention to distribute dividend to creditors on August 4, 2006 at the office of the Assistant Official Receiver. The Assistant Official Receiver can be reached at: Chan Wang Ho The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118 DIGILAND INTERNATIONAL: Notes Changes in Shareholders' Interests ---------------------------------------------------------------- Digiland International noted a series of changes to the percentage level of interest of its substantial shareholders as of July 25, 2006. DBS Bank Limited and DBS Group Holdings Ltd have decreased their holdings from 12.37 % to 11.25%. The decrease was due to Digiland's allotment and issuance of Rights Shares and Warrants that increased the Company's issued and paid-up capital from 6,962,960,130 to 7,659,256,143. DBS Holdings is deemed to have an interest in the 11.25% stake in Digiland through its wholly owned subsidiary, DBS Bank Ltd. The number of shares held by DBS Bank remains unchanged at 861,577,255. DBS Holdings held 861,577,255 deemed shares before the change with 12.37 % of issued share capital. After the change, it holds 861,577,255 shares with 11.25 % of issued share capital. Vincent Tan Kim Yong, also a substantial shareholder has increased his holdings from 5,068,310,000 to 5,575,140,250 shares. The percentage level remains the same with 72.79%. Dr. Vincent also holds 2,027,321,000 Warrants after the Rights Issue. Meanwhile, Temasek Holdings (Private) Limited has also decreased its percentage level from 12.37 % to 11.25 %. This was due to Digiland's listing and quotation of 696,296,013 Rights Shares on July 18, 2006. As reported by the Troubled Company Reporter- Asia Pacific, on July 19, 2006, Digiland allotted and issued 696,296,013 rights shares and 2,785,184,052 warrants pursuant to its rights issue. Temasek Holdings held 861,577,255 deemed shares before the change with 12.37 % issued share capital. After the change, it holds 861,577,255 shares with 11.25 % issued share capital. About Digiland International Limited Digiland International Limited -- http://www.digiland.com.sg/-- is a major distributor of IT products and provider of IT services in the Asia-Pacific. The Digiland International group of Companies was set up initially as the distribution arm of GES International Limited to handle sales, marketing and distribution of GES products, specifically the Datamini brand of Personal Computer, designed and manufactured by GES International Limited. It was renamed Digiland International Private Ltd in 1998 and has since expanded geographically to cover most countries in Asia-Pacific. The Company has been reporting a string of losses in the recent years due to the negative impact of the highly cyclical nature of the computer industry. Sales were adversely affected by the shortening product cycles of IT products and downward pressure on selling prices as newer and more technologically advanced products enter mass production. Aside from recurring losses, the Company's subsidiaries have also been bombarded by wind-up petitions filed by creditors. KOREA LEASING: Accepting Proofs of Debt Until August 4 ------------------------------------------------------ Liquidators of Korea Leasing (Singapore) Private Limited will be receiving proofs of debt from the Company's creditors until August 4, 2006. Failure to file proofs of debt by the deadline will exclude any creditor from sharing in any distribution the Company will make. The liquidators can be reached at: Wee Aik Guan Chaly Mah Chee Kheong c/o Deloitte & Touche 6 Shenton Way, #32-00 DBS Building Tower Two Singapore 068809 LEGACY HOLDINGS: Enters Wind-Up Proceedings ------------------------------------------- On July 19, 2006, the members of Legacy Holdings (Indonesia) Pte Ltd held a general meeting and agreed to: -- wind up voluntarily the Company's operations; -- appoint Mdm Chia Lay Beng as liquidator; and -- indemnify the liquidator against all costs, charges, losses, expenses and liabilities incurred or sustained by her in the execution and discharge of her duties in relation thereto. Creditors are required to prove their debts by August 22, 2006, to Liquidator Chia Lay Beng, for them to share in any distribution the Company will make. The Liquidator can be reached at: Chia Lay Beng 1 Scotts Road #21-07/08/09 Shaw Centre Singapore 228208 QNITY NETWORKS: Creditors' Proofs of Debt Due on August 4 --------------------------------------------------------- Qnity Networks Pte Ltd notifies creditors of its intention to pay dividend as ordered by the High Court of Singapore. Creditors are requested to file their proofs of claim by August 4, 2006, for them to share in the Company's dividend distribution The liquidators can be reached at: Chee Yoh Chuang Lim Lee Meng c/o 18 Cross Street #08-01 Marsh & McLennan Centre Singapore 048423 SEE HUP SENG: Inks Deal with Speedo Corrosion ---------------------------------------- See Hup Seng Limited has on July 25, 2006, entered into a sale and purchase agreement to acquire all the issued ordinary shares of Speedo Corrosion Control Pte Ltd from the latter's sole shareholder, CT Holdings Pte Limited. The purchase consideration for the proposed Acquisition is S$3,500,000, which was arrived at on a willing seller willing buyer basis. The acquisition of Speedo Corrosion would allow See Hup Seng to: -- enlarge the Group's operating capacities to take advantage of the thriving marine and offshore industries; -- maximize the synergies from the combined strength of the Company and Speedo Corrosion in the area of corrosion prevention; -- take over the contract rights of Speedo Corrosion for immediate contribution to the Company's business in the current financial year; -- acquire an experienced and skillful workforce in addition to the existing team of the Company; and -- take over a profitable operation that will contribute significantly to the Group's business after acquisition. About Speedo Corrosion Speedo Corrosion is a company incorporated in Singapore. It specializes in the business of contractors and consultants of corrosion control services principally for the marine and offshore industries. The unaudited net profit after tax for the six months ending June 30, 2006, of Speedo Corrosion is SGD0.9 million. About See Hup Seng Limited See Hup Seng Limited -- http://www.seehupseng.com.sg/-- is engaged in the provision of corrosion prevention services through a range of marine and industrial blasting and coating methods. Its other activities are the provision of tank cleaning, painting and coating, ship repair, shipbuilding and scaffolding services, trading and manufacturing of blasting and painting equipment and investment holding. The Group is domiciled in Singapore and markets its products and services domestically and in the People's Republic of China, Hong Kong and Cayman Islands. The Group's balance sheet as of December 31, 2005, revealed strained liquidity, with SGD12.8 million in current assets available to pay SGD28.5 million of current liabilities coming due within the next 12 months. As of December 31, 2005, the Group incurred accumulated losses of SGD28 million. As reported in the Troubled Company Reporter - Asia Pacific on May 24, 2006, See Hup Seng Limited's auditors, Messrs Moore Stephens, highlighted a going concern issue for the Company after auditing its financial statements for the year ended December 31, 2005. According to the Auditor, the ability of the Group and the Company to continue as going concerns is dependent on these factors: * successful completion of the proposed debt restructuring exercise; * reduction of discretionary operating costs and disposal of non-core assets; and * the generation of significant positive cash flows. SUN-AEM PLATING: Creditors' Meeting Scheduled on July 31 -------------------------------------------------------- The creditors of Sun-Aem Plating Services Pte Ltd will hold a meeting on July 31, 2006, at 4:00 p.m., at 138 Cecil Street #18-00 Cecil Court in Singapore. During the meeting, creditors will be asked to: -- receive the liquidator's report on the Company's assets and liabilities to-date; -- propose and approve the rate of first and final distribution to unsecured creditors; and -- resolve that the books and records of the Company and of the liquidator be destroyed immediately after the date of dissolution of the Company. Creditors are asked to lodge a proxy form by July 28, 2006, at 5:00 p.m., in order to vote at the said meeting. The liquidator can be reached at: Tow Juan Dean c/o PlanAssure PAC 138 Cecil Street #18-00 Cecil Court Singapore 069538 VINARICH PTE: Creditors' Proofs of Claims Due by August 21 ---------------------------------------------------------- Creditors of Vinarich Private Limited are required to prove their debts or claims not later than August 21, 2006, for them to share in any distribution the Company will make. The liquidators can be reached at: Chia Soo Hien Ng Geok Mui c/o BDO Raffles 5 Shenton Way #07-01 UIC Building Singapore 068808 =============== T H A I L A N D =============== THAI NAM: Earns THB82.3-Million Net Profit in Ended Dec.31 -------------------------------------------------------------- Thai Nam Plastics Public Company Limited submitted to the Stock Exchange of Thailand its financial report for the fiscal year ending December 31, 2005. The Company's 2005 consolidated income statement shows a net profit totaling THB82.334 million, which is a turnaround compared with the THB44.305-million net loss in 2004. Thai Nam's consolidated balance sheet shows improvements in its liquidity position. As of December 31, 2004, Thai Nam's and its subsidiaries' current liabilities total THB817.320 million, compared with their total current assets of THB629.292 million. As of December 31, 2005, consolidated total current liabilities were down to THB672.35 million, while current assets increased to THB681.433 million. As of December 31, 2005, Thai Nam recorded THB1,493,654,346 in total assets and THB1,332,984,812 of total liabilities, resulting to total equity of THB160,669,534. The Company's auditor, Praphasri Leelasupha of Sam Nak-Ngan A.M.C. Co., Ltd, said that a debt restructuring agreement amended on Dec. 19, 2005, relieved Thai Nam of most of its long- term liabilities. A full-text copy of the Company's financial report for the year ending December 31, 2005, is available for free at: http://bankrupt.com/misc/TNPCE2.xls * * * Headquartered in Samutsakorn Province, Thailand, Thai Nam Plastics Public Company Limited -- http://www.thainam.com/-- manufactures and distributes plastic coated products in Thailand. Products include PVC flexible film/sheet with printing and embossing, PVC flexible film/sheet for pool lining, artificial and sponge leather, floor covering mats and car mats. The company is in the process of paying debt following a revised rehabilitation plan which was approved during the Company's shareholders meeting on January 17, 2006. ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* 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 ***