/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/060803.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, August 3, 2006, Vol. 9, No. 153 Headlines A U S T R A L I A & N E W Z E A L A N D AIR NEW ZEALAND: TAANZ Opposes Qantas Code-Share Proposal AMTECH AUSTRALIA: Creditors Opt to Shut Down Operations AUSTRALIAN FUTURES: Liquidator Flegg to Present Wind-Up Report BEENLEIGH AUTO: Members Decide to Close Firm CATERLEC PTY: Enters Voluntary Wind-Up CLINSIM PTY: Appoints Joint and Several Liquidators DENIS CRUTE: Placed Under Voluntary Liquidation DIAMOND CUTTERS: Appoints Receiver and Manager FAIRFAX PROPERTIES: Members Resolve to Wind Up Operations FAMCOR (WA) PTY: Members Opt for Voluntary Wind Up GALEMOUNT PTY: Appoints Official Liquidators H.R HOARE: Creditors' Proofs of Claim Due on August 16 HGF INVESTMENTS: Members Opt for Voluntary Wind-Up HUNSO PTY: Members Appoint Peter Ngan as Liquidator IDYLLIC HOLDINGS: Enters Wind-Up Proceedings IXCHANGE PTY: Creditors Decide to Close Operations K, R & G ANDERSONS: Enters Voluntary Liquidation KAM FOOK: Members and Creditors to Present Wind-Up Report LONEY INVESTMENTS: Members to Hear Wind-Up Report on August 29 LYMAUL PTY: Members Pass Resolution to Wind Up Operations M & H BRICKLAYING: Creditors Appoint Official Liquidator MI SERVICES: Placed Under Voluntary Liquidation MICROBITS: Creditors Resolve to Wind Up Firm MULTIPLEX GROUP: Unlikely to Finish Wembley Project by September N RAE PTY: Enters Voluntary Liquidation PREMIUM CONCRETE: Inability to Pay Debt Prompts Wind-Up PRG GROUP: Places PowerHouse Under Administration REXUNU PTY.: Members Opt to Liquidate Business SANSTAR PTY.: Members Agree to Close Operations STEEL AND STUFF: Creditors Vote for Wind-Up STEPHEN D. THOMAS: Placed Under Members' Voluntary Liquidation SURESLIM WELLNESS: 12 Local Clinics Under Administration TYRRELL PLACE: Winds Up Business Operations WJD INVESTMENTS: Winds Up Business Operations XER 2 PTY: Members Resolve to Wind Up Business ZAKMAN PTY: Appoints William Abeyratne as Liquidator C H I N A & H O N G K O N G BANK OF TAIWAN: Fitch Affirms Individual Rating at C BEYOND THIRD-WORLD: Liquidator to Present Wind-Up Report CENTON LIMITED: Appoints Seng and Lo as Joint Liquidators ESSERY ESTATES: Prepares to Pay Ordinary Dividend GT SPORT: Appoints Joint Liquidators GUANGDONG BAO: To Declare First and Final Dividend GUANGDONG KELON: Further Delays Submission of 2005 Accounts HAYWARD KNITTERS: Liquidator Ceases to Act for Company HOTEL FORTUNA: Final Members' Meeting Set on August 18 KOLINE LIMITED: Members' Final Meeting Slated for August 28 MEESPIERSON IPB: Members to Receive Liquidator's Report NEWFIELD EXPLORATION: June 30 Working Capital Deficit Tops US$7M ORANGE NASSAU: Voluntarily Ceases Operations SAM TAI STEVEDORE: Names Chan as Official Liquidator SUN ALLIANCE: Faces Wind-Up Proceedings WELRISE HOLDINGS: Members Opt for Voluntary Wind-Up I N D I A GENERAL MOTORS: Revises Second Quarter Earnings Over GMAC Sale GENERAL MOTORS: Global Sales Down 7% * Fitch Ups India's Ratings to Investment Grade; Outlook Stable I N D O N E S I A BANK MANDIRI: Moody's Reviews E+ BFSR for Possible Upgrade BANK NEGARA: Moody's Revises 'E' BSFR to Positive PERUSAHAAN LISTRIK: 43 Bidders Pre-Qualified to Bid on Projects J A P A N MITSUBISHI MOTORS: 1st Quarter Net Loss Pegged at JPY15.1 Bil PIONEER CORP: Shares Rise 12% on FY06 Profit Forecast SHINSEI BANK: Moody's Affirms D+ Bank Financial Strength Rating SHINSEI BANK: Fitch Ratings Affirms Individual 'C' Rating K O R E A AMKOR TECH: Turns Around with US$24M Net Profit in 2nd Quarter CITIBANK KOREA: Posts KRW81.5-Billion Net Income for 1st Quarter KRISPY KREME: Inks Pact with Great Circle to Settle Litigation LG TELECOM: Revocation & Fines Bring In KRW195-Billion Net Loss LG TELECOM: Adds 52,117 Subscribers in July 2006 STANDARD CHARTERED FIRST BANK: 1Q Net Profit Up KRW34.2 Billion WOORI BANK: Real Estate Service Picks Up KRW112 Billion M A L A Y S I A AKTIF LIFESTYLE: To Hold 12th Annual General Meeting on Aug. 24 ANTAH HOLDINGS: HSBC Asserts Over MYR30-Million Claim DATUK KERAMAT: Fined for Breaching Listing Requirements GEORGE TOWN: Bourse Halts Trading of Securities GEORGE TOWN: Bourse Gives Reprimand and Slaps Fines LANKHORST BERHAD: Fined MYR111,000 for Violating Listing Rules LITYAN HOLDINGS: Total Default Amount Hits Over MYR13.5 Million MALAYSIA AIRLINES: Sets no Deadlines for Airbus Delay Talks METROPLEX BERHAD: Court Adjourns Wind-Up Hearing to Sept. 7 SETEGAP BERHAD: Securities Commission Junks Revamp Proposals SETEGAP BERHAD: Bourse Orders Payment of MYR32,000-Fine SHOWKAT INDUSTRIES: House Buyers to Get Refund After 15 Years TENCO BHD: Unaudited & Audited Results Show MYR1-Mln Difference P H I L I P P I N E S METRO CEBU WATER DISTRICT: Garnished PHP19M May Drain Resources METRO CEBU WATER DISTRICT: Board to Probe Alleged Irregularities PHILIPPINE LONG DISTANCE: To Sell Stake in Cable TV Firm SECURITY BANK: First Half Net Income Rises 51% to PHP1 Billion S I N G A P O R E ACCURES TECHNOLOGIES: Creditors' Proofs of Debt Due on August 4 ANTEVORTE SHIPPING: Creditors Must Submit Claims by August 28 DAKA DESIGNS: Annual General Meeting Slated for October 8 LIANG HUAT: Posts Monthly Update on Financial Position REFCO INC: Chapter 11 Trustee Inks Settlement Pact with Rogers REFCO INC: Official Committee Wants Seat in Fee Panel REFCO: Meridian IT Wants Decision on Smartnet Maintenance Pact T H A I L A N D KRUNG THAI: Sees Tough Business in 2007 Due to Political Crisis TMB BANK: Vayupak Turns Down TMB's Offer - - - - - - - - ============================================ A U S T R A L I A & N E W Z E A L A N D ============================================ AIR NEW ZEALAND: TAANZ Opposes Qantas Code-Share Proposal --------------------------------------------------------- The Travel Agents Association of New Zealand opposes any authorization by the Minister of Transport to the code-share deal, or Tasman Network Agreement, entered into by Air New Zealand and Qantas Airways Ltd. As reported in the Troubled Company Reporter - Asia Pacific on April 13, 2006, Air NZ and Qantas have signed a code-share agreement that will allow both airlines to reduce cost by removing some surplus or duplicated capacity and utilizing aircraft more efficiently, while increasing the number of flights available to their customers for the trans-Tasman routes. TAANZ says that the Minister does not have jurisdiction to authorize arrangements of the kind and nature put forward by the airlines and that Section 88 of the Civil Aviation Act was never intended to provide airlines with a protection from the anti- competitive provision of the Commerce Act. It also argues that the TNA would, if approved, see an increase in the cost of trans-Tasman airfares and a dramatic reduction in competition Paul Yeo, chief executive of TAANZ says that given the potential impact on consumers and the New Zealand economy, TAANZ's preference is that the application be referred to the Commerce Commission. He says that determining the application under the provisions of the Commerce Act would enable proper weight to be given, by those expert in such matters, to all relevant factors and the public benefit. TAANZ submitted its position to the Ministry of Transport on August 1, 2006, which stated that that an inevitable consequence of the Minister approving the Code-Share Proposal would be that a significant number of New Zealanders would pay considerably more to travel to and from Australia. TAANZ contends that the Code-Share Proposal would reduce capacity across the Tasman and, as a consequence, the cost of travel would increase as the number of seats is reduced and the airlines seek to maximize yield in a market where they would not have any real competition. Mr. Yeo further says "[n]ot only will fares within each category or price band rise but also the number of fares in the lower price bands will reduce markedly, particularly over peak periods." TAANZ is also concerned that approval of the Code-Share Proposal would significantly reduce competition on Tasman routes and may result in no effective competition on the Tasman. "Qantas and Air New Zealand together account for around 80% of passengers flying across the Tasman and, on a number of routes have no competition. If approved, the TNA will mean that there will be no competition on flights between Wellington-Sydney, Wellington-Melbourne, Auckland-Adelaide, Christchurch- Coolangatta, and all flights from Queenstown," TAANZ contends. Mr. Yeo also says "[w]e also don't see any of the other airlines currently flying the Tasman being able to effectively compete with the TNA partnership because they don't have the capacity, or for new airlines entering the market to provide effective competition." TAANZ formulated its position after studying the airlines' proposal, reviewing submissions to the Australian Competition and Consumer Commission, and consulting its members. According to Mr. Yeo, "[t]he majority of members were against the proposal. The others raised some of the same concerns and while not supporting the [Code-Share Proposal] did not want to formally oppose it." Mr. Yeo explains that the TNA proposal is of significant interest to TAANZ members, their customers and to the wider New Zealand economy. Mr. Yeo contends that should the TNA be approved, the Minister needs to be satisfied that there were other benefits that outweigh the obvious and undoubted public detriments. About Qantas Airways Headquartered in Sydney, Australia, Qantas Airways -- http://www.qantas.com.au/-- is the world's second oldest airline and is also recognized as one of the leading long- distance airlines, having pioneered services from Australia to North America and Europe. The Qantas Group employs approximately 38,000 staff across a network that spans 145 destinations in Australia, Asia-Pacific, Americas, Europe and Africa. The Qantas Group also operates a diverse portfolio of airline-related businesses, including Engineering Technical Operations and Maintenance Services, Airports and Catering, Qantas Freight, Qantas Holidays, Qantas Defence Services and Qantas Consulting. About Air New Zealand Based in Auckland, New Zealand, Air New Zealand is the country's flag air carrier, with domestic and international passenger and freight operations, and an aviation engineering business. As reported in the Troubled Company Reporter - Asia Pacific on September 2, 2005, Moody's Investors Service affirmed its Ba1 issuer rating on Air New Zealand Limited after the airline announced its annual results for FY2005. Air NZ's rating reflected its dominant position in the New Zealand domestic market, with around 80% market share, and the profitability of domestic operations following their restructuring to a low-cost network model. Also supporting Air NZ's rating was its solid liquidity position, with cash balances of NZ$1,071 million held as at June 30, 2005. However, while Air NZ has a solid position in New Zealand and other parts of the international network are performing well, intense competition on trans-Tasman routes has resulted in it being unprofitable for Air NZ. International competition also limits Air NZ's ability to expand. Its management is also aware of the airline's vulnerability to external shocks and the actions of key competitors. AMTECH AUSTRALIA: Creditors Opt to Shut Down Operations ------------------------------------------------------- The creditors of Amtech Australia Pty Limited held a meeting on July 11, 2006, and resolved to wind up the Company's operations. Subsequently, Trevor Mark Pogroske and Paul Andrew Billingham were appointed as joint and several liquidators. The Joint and Several Liquidators can be reached at: Trevor Mark Pogroske Paul Andrew Billingham Grant Thornton, Level 17 383 Kent Street Sydney, New South Wales 2000 Australia AUSTRALIAN FUTURES: Liquidator Flegg to Present Wind-Up Report -------------------------------------------------------------- Members of Australian Futures & Securities Pty Ltd will hold a general meeting on August 31, 2006, at 10:00 a.m., to receive Liquidator Michael Laurence Flegg's report on the Company's wind-up and the property disposal exercises. As reported by the Troubled Company Reporter - Asia Pacific on December 26, 2005, the Company was placed under a members' voluntary wind up on December 1, 2005. The Liquidator can be reached at: Michael Laurence Flegg PJ Miller & Co Chartered Accountant Suite 605, 107 Walker Street North Sydney, New South Wales 2060 Australia Telephone:(02) 9955 3793 BEENLEIGH AUTO: Members Decide to Close Firm -------------------------------------------- At a meeting held on July 11, 2006, the members of Beenleigh Auto & Marine Pty Ltd resolved to close the Company's operations. In this regard, Matthew L. Joiner and Gerald T. Collins were named joint and several liquidators. The Joint and Several Liquidators can be reached at: Matthew L. Joiner Gerald T. Collins JCJ Partners Pty Ltd Chartered Accountants GPO Box 272 Brisbane, Queensland 4001 Australia CATERLEC PTY: Enters Voluntary Wind-Up -------------------------------------- At an extraordinary general meeting held on July 14, 2006, the members of Caterlec Pty Ltd agreed to voluntarily wind up the Company's operations. William Bernard Abeyratne and Loke Ching Wong were appointed as joint and several liquidators at a creditors' meeting held that same day. The Joint and Several Liquidators can be reached at: William Bernard Abeyratne Loke Ching Wong c/o Harrisons Insolvency Level 5, 150 Albert Road South Melbourne, Victoria 3205 Australia Telephone:(03) 9696 2885 CLINSIM PTY: Appoints Joint and Several Liquidators --------------------------------------------------- The members of Clinsim Pty Ltd convened on July 7, 2006, and resolved to voluntarily wind up the Company's operations. At a creditors' meeting held that same day, Laurence Andrew Fitzgerald and Michael James Humphris were appointed as joint and several liquidators. The Joint and Several Liquidators can be reached at: Laurence A. Fitzgerald Horwath BRI (Vic) Pty Ltd Chartered Accountants Level 30, The Rialto 525 Collins Street Melbourne, Victoria 3000 Australia DENIS CRUTE: Placed Under Voluntary Liquidation ----------------------------------------------- At a general meeting on July 13, 2006, the members of Denis Crute Pty Ltd resolved to voluntarily wind up the Company's operations. Accordingly, Robert Molesworth Hobill Cole was appointed as liquidator. The Liquidator can be reached at: Robert Molesworth Hobill Cole Cole Downey & Co Chartered Accountants Unit 2, 6 Moorabool Street Geelong, Victoria 3220 Australia DIAMOND CUTTERS: Appoints Receiver and Manager ---------------------------------------------- On July 12, 2006, Barry John Honey was appointed as receiver and manager of the property of Diamond Cutters Australia Pty Ltd. The Receiver and Manager can be reached at: Barry John Honey Suite 8, 38 Colin Street West Perth, Western Australia Australia FAIRFAX PROPERTIES: Members Resolve to Wind Up Operations --------------------------------------------------------- The members of Fairfax Properties Pty Ltd met on July 4, 2006, and passed a special resolution to voluntarily wind up the Company's operations. The liquidators can be reached at: David Clement Pratt Timothy James Cuming Level 15, 201 Sussex Street Sydney, New South Wales 1171 Australia FAMCOR (WA) PTY: Members Opt for Voluntary Wind Up -------------------------------------------------- After an extraordinary general meeting on July 13, 2006, the members of Famcor (WA) Pty Ltd resolved to wind up the Company's operations. Creditors subsequently appointed Gary John Anderson as official liquidator. The Liquidator can be reached at: Gary John Anderson PO Box 1661 West Perth, Western Australia 6872 Australia Telephone:(08) 9486 7822 Facsimile:(08) 9226 4250 e-mail: garya@iinet.net.au GALEMOUNT PTY: Appoints Official Liquidators -------------------------------------------- At a general meeting of Galemount Pty Limited held on July 10, 2006, Liquidators Jason Bettles and Susan Carter were appointed to oversee the Company's wind-up activities. The Liquidators can be reached at: Jason Bettles Susan Carter Worrells, Level 6 50 Cavill Avenue Surfers Paradise, Queensland 4217 Australia H.R HOARE: Creditors' Proofs of Claim Due on August 16 ------------------------------------------------------ Members of H.R Hoare Pty Limited decided to voluntarily wind up the Company's operations on July 12, 2006. In this regard, creditors are required to prove their claims by August 16, 2006, to share in any distribution the Company will make. The liquidator can be reached at: Sule Arnautovic Jirsch Sutherland Chartered Accountants Level 2, 84 Pitt Street Sydney, New South Wales 2000 Australia Telephone:(02) 9233 2111 Facsimile:(02) 9233 2144 HGF INVESTMENTS: Members Opt for Voluntary Wind-Up -------------------------------------------------- At an extraordinary general meeting on July 11, 2006, the members of HGF Investments Pty Limited resolved to wind up the Company's operations. Subsequently, Peter Ashley Robson was appointed as liquidator. The Liquidator can be reached at: Peter Ashley Robson, Chartered Accountant 12 Beta Road Lane Cove, New South Wales 2066 Australia HUNSO PTY: Members Appoint Peter Ngan as Liquidator --------------------------------------------------- Members of Hunco Pty Limited on July 11, 2006, passed a special resolution to wind up the Company's operations. Accordingly, 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 IDYLLIC HOLDINGS: Enters Wind-Up Proceedings -------------------------------------------- The members of Idyllic Holdings Pty Limited met on July 11, 2006, and decided to voluntarily wind up the Company's operations. In this regard, Bruce Neil Mulvaney was appointed as liquidator. The Liquidator can be reached at: Bruce Neil Mulvaney Bruce Mulvaney & Co Chartered Accountants 1st Floor, 613 Canterbury Road Surrey Hills, Victoria 3127 Australia IXCHANGE PTY: Creditors Decide to Close Operations -------------------------------------------------- The creditors of Ixchange Pty Ltd held a general meeting on July 12, 2006, and decided to close the Company's operations. Subsequently, John Sheahan and Ian Russell Lock were appointed as joint and several liquidators. The Joint and Several Liquidators can be reached at: John Sheahan Ian Russell Lock Sheahan Lock Partners Level 2, 32 Martin Place Sydney, New South Wales Australia K, R & G ANDERSONS: Enters Voluntary Liquidation ------------------------------------------------ Members of K, R & G Andersons Estate Agency Pty Ltd convened on July 7, 2006, and passed a special resolution to wind up the Company's operations. In this regard, Ian Stone was named official liquidator. The Liquidator can be reached at: Ian Stone 16 Phillip Street South Coogee, New South Wales Australia KAM FOOK: Members and Creditors to Present Wind-Up Report --------------------------------------------------------- A final meeting of the members and creditors of Kam Fook Shark Fin Seafood Restaurant Pty Limited will be held on August 29, 2006, at 11:00 a.m. At the meeting, Liquidator Adam Shepard will report on the Company's wind-up and property disposal exercises. As reported by Australian Securities and Exchange Commission on July 5, 2005, the Company went into liquidation in June 2004 with an estimated stockholders' deficit of US$380,000. The Liquidator can be reached at: Adam Shepard Star Dean-Willcocks Level 1, 32 Martin Place Sydney, New South Wales 2000 Australia Telephone: 9223 2944 LONEY INVESTMENTS: Members to Hear Wind-Up Report on August 29 -------------------------------------------------------------- A final meeting of the members of Loney Investments Pty Limited will be held on August 29, 2006, at 12:00 p.m. During the meeting, Liquidator John Woods will report on the Company's wind-up and property disposal activities. As reported by the Troubled Company Reporter - Asia Pacific, the Company commenced a wind-up of its operations on March 1, 2006. The Liquidator can be reached at: John W. Woods Wilson Woods & Partners Chartered Accountant 30 Davey Street Hobart, Tasmania 7000 Australia Telephone:(03) 6223 4343 LYMAUL PTY: Members Pass Resolution to Wind Up Operations --------------------------------------------------------- At an extraordinary general meeting on July 11, 2006, the members of Lymaul Pty Limited passed a special resolution to wind up the Company's operations. Subsequently, Peter Ashley Robson was appointed as official liquidator. The liquidator can be reached at: Peter Ashley Robson Chartered Accountant 12 Beta Road Lane Cove, New South Wales 2066 Australia M & H BRICKLAYING: Creditors Appoint Official Liquidator -------------------------------------------------------- Members of M & H Bricklaying Services Pty Limited held a general meeting on July 11, 2006, and decided to voluntarily wind up the Company's operations. Peter Paul Krejci was consequently appointed as liquidator. The Liquidator can be reached at: Peter Paul Krejci GHK Green Krejci Level 13, 1 Castlereagh Street Sydney, New South Wales 2000 Australia MI SERVICES: Placed Under Voluntary Liquidation ----------------------------------------------- The members of MI Services Group (Australia) Pty convened on July 11, 2006, and decided to voluntarily wind up the Company's operations. In this regard, Kenneth Michael Whittingham was appointed as liquidator. The Liquidator can be reached at: Kenneth Michael Whittingham BDO Chartered Accountants & Advisors Level 19, 2 Market Street Sydney, New South Wales 2000 Australia MICROBITS: Creditors Resolve to Wind Up Firm -------------------------------------------- Microbits has gone into liquidation after creditors, in a meeting on July 6, 2006, resolved to wind up the Company, Adelaidenow reports. Based in Adelaide, Australia, Microbits was founded more than 20 years ago specializing in equipment and support for South Australia's education sector, Adelaidenow relates. The paper says that, according to administrator Hugh McPharlin of accountants Edwards Marshall, Microbits had suffered from a "narrowing of margins" and "changing circumstances in the technology marketplace." Microbits went into voluntary administration on June 13, 2006, with about 50 creditors owed AU$1.4 million in aggregate, The Advertiser relates. MULTIPLEX GROUP: Unlikely to Finish Wembley Project by September ---------------------------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on June 5, 2006, Multiplex Group said that most of the contractors' works in its Wembley Stadium project in London would be completed by July 13 instead of June 2006. According to the TCR-AP report, Multiplex was targeting substantial completion in July -- originally June -- although did not expect to finish commissioning, cleaning and other works until its contract closes in September 2006. A follow-up report from The Australian relates that a stand-off between Multiplex and the owners of Wembley Stadium threatens to put the disastrous project even further behind schedule. The GBP750-million (AU$1.8 billion) stadium project is now unlikely to be finished by September, and Multiplex and the English Football Association's Wembley National Stadium are blaming each other, the report relates. The Australian relates that, according to WNS Chief Executive Officer Michael Cunnah, he does not believe that the September deadline would be met. Mr. Cunnah explains that "at the current rate of progress, particularly in light of the extensive testing and commissioning regime that will be required, this is not likely to be achieved until late 2006." Mr. Cunnah notes that Multiplex still has major items to complete, including: (a) the stadium's roof; (b) remedial works to the drainage network; (c) building management and life safety systems; and (d) the installation of some 10,000 seats. A spokesman for Multiplex says that structural roof works were finished, and minor guttering and flashing remained, noting that drainage works would be finished this week, The Australian relates. According to the spokesman, a seating subcontractor had gone into liquidation, and Multiplex had purchased and installed seats at the rate of up to 6,000 a week. Moreover, The Australian cites the spokesman as saying that none of the outstanding minor works impeded WNS' ability to begin its own works, which were necessary to get the stadium finished, including: (a) installation of communications and broadcast cabling, (b) closed-circuit televisions, and (c) ticketing systems. The spokesman relates that the bulk of WNS' work had not started and, while Multiplex would complete its own share of work by next month, the final completion date was "very much in the hands of the client." Yet, The Australian cites Mr. Cunnah as saying that, "It has always been our view that the stadium's delays are Multiplex's responsibility." About Multiplex Headquartered at Miller's Point, in New South Wales, Australia, Multiplex Group -- http://www.multiplex.biz/-- derives its revenue from property funds management, construction, property development, and facilities management. The Group employs over 2,000 people and has established operations and offices throughout Australia, New Zealand, the United Kingdom and the Middle East. In December 2003, Multiplex Limited listed on the Australian Stock Exchange as a part of the Multiplex Group, raising a total of AU$1.2 billion. Multiplex Group was formed by combining the various businesses of Multiplex Limited and the newly established portfolio of investments held by Multiplex Property Trust. Early in 2005, Multiplex began facing cost pressures on its reconstruction project for the Wembley Stadium in London, prompting it to conduct its own internal investigation into the Wembley difficulties. Its auditor, KPMG, later conducted its own thorough review of the problems, leading to an unpredicted write-down. In February 2005, stunned investors sold down Multiplex shares after the Company reversed its stance on two United Kingdom projects, writing off AU$68.3 million from its profits. This started a series of profit downgrades throughout 2005. The Company's troubles continue with plunging share prices, extortion attempts and threats of class action from disgruntled shareholders. The Roberts family, as founder and controlling shareholder of Multiplex, opted to offer AU$50 million indemnity in a bid to appease dissatisfied shareholders. In May 2005, Multiplex admitted that its troubled Wembley Stadium construction project may end up with a multimillion loss. As of February 2006, the Company is faced with liquidity crisis after posting a massive AU$474 million loss on Wembley and is currently in talks to bring down possible delay fees, pegged at AU$138,000 per day beyond the scheduled March 31, 2006 completion date. N RAE PTY: Enters Voluntary Liquidation --------------------------------------- After an extraordinary general meeting held on July 7, 2006, the members of N Rae Pty Limited resolved to voluntarily liquidate the Company's operations. Subsequently, G. A. Marx was appointed as liquidator. The Liquidator can be reached at: G. A. Marx Suite 601, 3 Waverley Street Bondi Junction, New South Wales 2022 Australia PREMIUM CONCRETE: Inability to Pay Debt Prompts Wind-Up ------------------------------------------------------- The members and creditors of Premium Concrete & Steel Pty Limited met on July 14, 2006, and passed a special resolution to wind up the Company's operations due to its inability to pay debts when they fall due. In this regard, Richard Albarran was appointed as liquidator. The Liquidator can be reached at: Richard Albarran c/o Hall Chadwick Level 29, 31 Market Street Sydney, New South Wales 2000 Australia PRG GROUP: Places PowerHouse Under Administration ------------------------------------------------- PRG Group Limited says that it had placed its under-performing British electrical group, PowerHouse, into administration, ShareChat News reports. PRG will sell PowerHouse's assets, and the firm will be delisted and privatized, Newswire.co.nz states. As reported in the Troubled Company Reporter - Asia Pacific on July 31, 2006, on unaudited figures, PRG lost NZ$13.1 million in the March year, mainly due to PowerHouse's continued poor performance. The report noted that even though PowerHouse is No. 3 in the British market, PRG warns that its sales growth is less than budgeted, and likely to result in a moderate loss for the financial year to March 31, 2007. According to Newswire.co.nz, PowerHouse had only 1% of the market. Newswire.co.nz relates that Chair Jock Irvine says he does not have the figures on what the Powerhouse venture has cost, except that it is a significant amount. Thus, the board decided it would not be good business sense to further invest in the struggling retailer. The NZPA relates that PRG bought PowerHouse, then also in administration, in 2003 for NZ$48 million. E. Watson Takes Over PRG Simultaneously, PRG's 81% owner, Eric Watson buys another 12.3% of the Company, triggering a full takeover at NZ$1.22 per share -- 33 cents below PRG's last traded price, the New Zealand Press Association says. The NZPA recounts that PRG shares have been suspended since July 10, 2006, after it failed to submit an audited annual result to March 31, 2006, to the stock exchange. The TCR-AP had noted that PRG shares were at NZ$1.54 -- their lowest level in over five years and half the value they reached in September 2002 -- when their trading was suspended and the Company has issued a profit warning. Logan Corp, a unit of Mr. Watson's private investment vehicle Cullen Investments, bought the 12.3% stake from AllianceBerstein on behalf of Axa Asia Pacific Holdings, ShareChat relates. The NZPA says that Logan intends to commence compulsory acquisition procedures as soon as practicable. According to ShareChat, PRG has established a special independent directors' committee comprising chairman Jock Irvine and director George Brooks. The Committee will be responsible for all actions to be taken by the Company in connection with the offer. ShareChat notes that the independent directors will obtain a report from an independent adviser on the merits of the offer and will prepare a target company statement. Privatization is a natural progression for PRG Group, News.co.nz cites Cullen Investments chief operating officer Liz Style, as saying. The TCR-AP noted that the Company's sale of its consumer finance arm, PRG Finance Group, to GE Finance and Insurance in January 2006 for a reported NZ$145 million, has been followed by problems, noting that a delay in getting an audit of the former finance group would in turn delay the group audit. About PRG Group Formerly Pacific Retail Group, PRG Group Limited -- http://www.prg.co.nz/-- is an NZX-listed investment company focused on the consumer sector. It has a portfolio of operating companies in New Zealand and the United Kingdom, including leading lingerie designer and marketer, Bendon Limited. PRG Group's other businesses include PowerHouse, the UK's third largest specialist appliance retailer. PowerHouse operates 53 stores in the UK. PRG Group also owns New Zealand homeware retailer Living & Giving. Late January 2006, PRG Group completed the sale of its Finance Group to GE Finance and Insurance for NZ$145 million. The Finance Group comprised four companies - Pacific Retail Services Limited, Pacific Retail Finance Limited, Montreal Financial Services Limited and Simply Insurance New Zealand Limited. The structure of the sale meant the Finance Group's loan book and other assets were sold to GE, together with the shares in Simply Insurance New Zealand. Under the sale agreement, PRG has changed its name from Pacific Retail Group Limited to PRG Group Limited. The Company posted a NZ$75 million capital profit (net of costs) from the sale. PRG Group used part of the sale proceeds to repay NZ$62.7 million of outstanding Secured Capital Notes and to repay loans of NZ$20 million to principal banker, ANZ Bank. PRG Group hoped that the sale will allow it to retire all parent company debt, leaving it in a strong financial position to continue to fund growth in its major operating businesses. REXUNU PTY.: Members Opt to Liquidate Business ---------------------------------------------- At a general meeting held on July 7, 2006, the members of Rexunu Pty Limited passed a special resolution to liquidate the Company's business and distribute the proceeds of the assets disposal. Creditors whose proofs of debt were not admitted by July 28, 2006, will be excluded from sharing in the dividend distribution. The liquidator can be reached at: Peter John Burgess McPherson, Burgess & Associates Chartered Accountants 7 Macquarie Street Taree, New South Wales 2430 Australia SANSTAR PTY.: Members Agree to Close Operations ----------------------------------------------- At a general meeting on June 28, 2006, the members of Sanstar Pty Ltd resolved to close the Company's operations. Gregory Stuart Andrews was subsequently named official liquidator. The Liquidator can be reached at: Gregory Stuart Andrews G S Andrews & Assocs 22 Drummond Street Carlton, Victoria 3053 Australia Telephone:(03) 9662 2666 Facsimile:(03) 9662 9544 STEEL AND STUFF: Creditors Vote for Wind-Up ------------------------------------------- A meeting of about 40 creditors of Albury's Steel and Stuff has voted to wind up the Company with debts estimated to be in excess of AU$3 million, The Border Mail relates. According to The Border Mail, the Company is now the subject of independent investigations by liquidators Nicholls and Co., the Australian Securities and Investments Commission, the NSW and Victorian police, and the NSW Department of Fair Trading. The paper says that during the meeting, administrator Stephen Jay of the Wagga-based Nicholls had said that the Company is seeking expressions of interest for its encumbered and unencumbered assets and would close on July 21, 2006. The report notes that if those expressions of interest do not succeed, an auction is scheduled for August 4, 2006. Mr. Jay relates that given there were more than 350 creditors who had been identified during the administration, it is merely an estimate that the Company owes AU$2.68 million to its unsecured creditors, alongside the AU$574,665 it owed to its four secured creditors and the AU$76,786 it owed to 17 employees. The level of inquiry received in the administration was unprecedented, Mr. Jay says. During the meeting it was discovered that Steel and Stuff had taken about AU$900,000 in deposits and full payment for sheds and other structures that have not been received by clients from throughout NSW and Victoria, The Border Mail relates. The paper relates that several clients asked director Rod Atkinson as to how the Company could have taken their money until as recently as mid-May this year when Steel and Stuff had gone into receivership in mid-June. According to the paper, Mr. Atkinson explains that he had been comfortable to continue trading despite a Federal Court action taken by Surdex Steel Pty Ltd at the end of May to wind up the Company. The Border Mail reports that Mr. Atkinson and his wife refinanced their home to put AU$180,000 into the business in March 2006. "I do apologize to the people who paid deposits and the full amount for their buildings," The Border Mail cites Mr. Atkinson as saying, adding that "[i]t was never our intention not to supply those buildings." Mr. Atkinson further explains that as a result of the action taken by Surdex, the Company had seen alternative suppliers unwilling to continue providing materials. Mr. Atkinson did not believe that the Company had been trading while insolvent, The Border Mail relates. Mr. Jay discloses that the Company had gone from a surplus of AU$440,000 in June 2004, to a small deficit of AU$20,000 in June 2005, but between then and early this year "something had gone terribly wrong," The Border Mail notes. A subsequent report from the Border Mail reveals that information sent to creditors discloses that the Company has 303 creditors comprising of: (a) a bank and finance company; (b) 12 employees, which include Rod and Lorraine Atkinson listed as each being owed AU$32,848 by the Company; (c) 289 "unsecured creditors" which are a mix of individuals and other companies. The Atkinsons are owed a further AU$250,000 by the Company. Two listed secured creditors are Bidgee Finance Limited, which is owed AU$268,128, and the Westpac Bank, although information from the administrators says Westpac is not owed any money, The Border Mail relates. The paper further notes that the creditors include a number of Border businesses and individuals, some owed tens of thousands of dollars, others less than AU$100. * * * Rod and Lorraine Atkinson started he Steel and Stuff seven years ago to give them access to markets in Victoria and southern NSW, The Border Mail relates, noting that the couple had previously run a construction company in China. The paper notes that as of June 29, 2006, the Company's Web site -- http://www.steelandstuff.com.au/-- which contains details of its history and products, was still operating. As of August 2, 2006, the TCR-AP cannot access the Web site. The Web site described Steel and Stuff as an Australian-owned company with its own sales, design, and production departments, The Border Mail says. STEPHEN D. THOMAS: Placed Under Members' Voluntary Liquidation -------------------------------------------------------------- The members of Stephen D. Thomas & Associates Pty Ltd met on June 30, 2006, and decided to voluntarily liquidate the Company's business. Accordingly, Richard Herbert Judson was appointed as liquidator. The Liquidator can be reached at: Richard Herbert Judson Members Voluntarys Pty. Ltd. PO Box 819 Moorabbin, Victoria 3189 Australia SURESLIM WELLNESS: 12 Local Clinics Under Administration -------------------------------------------------------- Twelve local clinics of the SureSlim chain of weight loss centers were placed in administration, with debts aggregating AU$2 million, The Australian Associated Press reports. The affected SureSlim clinics in SA are located in: * the metropolitan area: 1) Adelaide, 2) Prospect, 3) Modbury, 4) Salisbury, 5) Morphett Vale, 6) Hilton, 7) Brighton, 8) Glenelg * in Country SA: 9) Victor Harbor, 10) Mt. Barker, 11) Lameroo, and 12) Murray Bridge Administrator Nick Cooper, from insolvency firm SimsPartners, says that the operations of the affected businesses will be reviewed and offers to purchase the clinics would be considered, The AAP says. The AAP cites SureSlim managing director Geoff Adams as saying that the Company is confident of its future, noting that business goes on at its other locations. Other country clinics at Gawler, Berri, Loxton, Waikerie, Mt. Gambier and Naracoorte were not affected, The Age notes. Job Cuts According to Mr. Cooper, it is likely that the 12 clinics, which employed about 50 people, would close, The AAP relates. ABC News Online relates that the 12 clinics has been affected by a drop in client numbers. According to the report, the possibility of job cuts for the 50 employees was seen after the appointment of voluntary administrators. ABC notes that Mr. Cooper assures that the employees will be informed about redundancies. Mr. Cooper notes that re-opening rests on what can be done on a national basis. It is possible that something could be worked out to open the stores in the future, Mr. Cooper adds. The first creditors meeting was held on July 13, 2006, ABC relates. Operators Want to Expand SureSlim's national operators plan to expand their business in South Australia, after the voluntary administration was announced, The AAP notes. The Company hopes to have some of those clinics run by new operators within weeks and pledged to continue to service clients at alternative locations if necessary, The Age relates. About SureSlim SureSlim -- http://www.sureslim.com.au/-- was established in 1996 as a quick weight loss company, but has since developed a more holistic lifestyle approach with 65 clinics across Australia. It also has over 150 clinics worldwide. TYRRELL PLACE: Winds Up Business Operations ------------------------------------------- Members of Tyrrell Place Pty Ltd convened on July 10, 2006, and agreed to wind up the Company's operations. Richard Herbet Judson was consequently named official liquidator. The Liquidator can be reached at: Richard Herbert Judson Judson & Co Chartered Accountants Suite 4, Level 1 10 Park Road Cheltenham, Victoria 3192 Telephone: 9585 4155 Australia WJD INVESTMENTS: Winds Up Business Operations --------------------------------------------- The members of WJD Investments Pty Ltd convened on July 12, 2006, and decided to wind up the Company's operations and distribute the proceeds of its assets disposal. The liquidator can be reached at: Geoffrey B. Johnson Suite 12, 602 Whitehorse Road Mitcham Victoria 3132 Australia XER 2 PTY: Members Resolve to Wind Up Business ---------------------------------------------- On July 13, 2006, the members of Xer 2 Pty Ltd resolved to voluntarily wind up the Company's operations. At a creditor's meeting held that same day, Paul Vartelas was appointed as liquidator. The Liquidator can be reached at: Paul Vartelas B.K. Taylor & Co. 8th Floor, 608 St Kilda Road Melbourne, Australia ZAKMAN PTY: Appoints William Abeyratne as Liquidator ---------------------------------------------------- At an extraordinary general meeting on July 7, 2006, the members of Zakman Pty Ltd met and decided to wind up the Company's operations. Creditors subsequently appointed William Bernard Abeyratne as liquidators. The Liquidators can be reached at: William Bernard Abeyratne Loke Ching Wong Harrisons Insolvency Level 5, 150 Albert Road South Melbourne, Australia Telephone: 9696 2885 ================================ C H I N A & H O N G K O N G ================================ BANK OF TAIWAN: Fitch Affirms Individual Rating at C ---------------------------------------------------- Fitch Ratings on August 2, 2006, affirmed the ratings of Bank of Taiwan as; * National Long-term rating: AAA(twn) * National Short-term rating: F1+(twn) * Individual rating: C * Support rating: 1 The agency also assigned a Stable Outlook to the ratings. The ratings reflect Bank of Taiwan's strong capitalization, improved asset quality and strong support from the government. However, the agency notes that the Bank's Individual rating reflects the bank's poor core profitability and undiversified business profile. Net interest income has declined substantially since 2002 amid abundant liquidity in the banking system and intense industry competition. Additionally, Bank of Taiwan relied heavily on sales of long-term investments and real estate and buildings to sustain its profitability in 2004 and 2005. Following government directives, Bank of Taiwan is proceeding with preparations to merge with Central Trust of China by June 2007. Both are 100%-owned by Taiwan's Ministry of Finance. Fitch expects the combined entity to retain Bank of Taiwan's financial profile. Bank of Taiwan's problem loans have declined amid the general economic recovery and improved real estate market conditions since 2002. The Bank retains significant government policy roles. Lending to government agencies and entities accounted for 35% of total lending at end-2005. Established in 1946, Bank of Taiwan initially acted as an agency for the government, and, until 1961, it was effectively Taiwan's central bank. It has since moved into offering commercial banking services, although it continues to carry out administrative functions on behalf of the government in such areas as tax collection, public treasury for local municipalities and the administration of issuance of the local currency. Bank of Taiwan was incorporated in July 2003. At end-2005, it had 155 domestic and overseas branches. BEYOND THIRD-WORLD: Liquidator to Present Wind-Up Report -------------------------------------------------------- Members of Beyond Third-World Foundation Limited will meet on August 28, 2006, at 4:00 p.m. to hear accounts of the Company's wind-up and property disposal activities from Liquidator Chan Kin Man, Eddie. The Liquidator can be reached at: Chan Kin Man, Eddie Liquidator Suite 1201, Tower 2, The Gateway 25 Canton Road Tsimshatsui, Kowloon Hong Kong CENTON LIMITED: Appoints Seng and Lo as Joint Liquidators --------------------------------------------------------- Members of Centon Limited on July 14, 2006, resolved to voluntarily wind up the Company's operations. In this regard, Natalia KM Seng and Susan YH Lo were named official liquidators. ESSERY ESTATES: Prepares to Pay Ordinary Dividend ------------------------------------------------- Essery Estates Ltd notifies parties-in-interest of its intention to pay ordinary dividend to creditors. Creditors are required to file their proofs of claim by August 17, 2006, for them to share in the dividend distribution. The liquidator can be reached at: Kong Chi How 29th Floor, Wing On Centre 111 Connaught Road Central Hong Kong GT SPORT: Appoints Joint Liquidators ------------------------------------ On July 13, 2006, members of GT Sport Ltd appointed Jan Gerard Willemszoon Blaaw and Rainier Hok Chung Lam as joint liquidators for the Company. The Troubled Company Reporter - Asia Pacific reported that on February 1, 2006, the High Court of Hong Kong released an order approving a petition to wind up the Company's operations. The Joint Liquidators can be reached at: Rainier Hok Chung Lam 22/F., Prince's Bldg Central, Hong Kong GUANGDONG BAO: To Declare First and Final Dividend -------------------------------------------------- Guangdong Bao Shun Transportation Co Ltd intends to declare its first preferential dividend on August 1, 2006. Dividend payments will be made at: 32nd Floor, One Pacific Place 88 Queensway, Hong Kong GUANGDONG KELON: Further Delays Submission of 2005 Accounts ----------------------------------------------------------- Guangdong Kelon Electrical Holdings postponed a board meeting scheduled for August 11, 2006, to approve the Company's 2005 financial results, The Standard reports. According to The Standard, Kelon's board meeting was called to approve the 2005 financial results of the Company. In a statement to the Shenzhen Stock Exchange, the Company said "numerous extraordinary events occurred during 2005 which placed the company in a complex financial situation." Meanwhile, Kelon warned its shareholders of a potential suspension of its A shares on September 1, 2006, if it fails to publish its 2005 results by August 31, 2006. Moreover, if the Company is still unable to publish the results by October this year, the Stock Exchange will be forced to delist the Company from the Bourse's official list, The Standard says. The Standard recounts that for the first nine months of 2005, Kelon posted a loss of CNY1.32 billion, compared to a profit of CNY206.8 million for the corresponding period the previous year. The Troubled Company Reporter - Asia Pacific reported on March 3, 2006, that investors of the Company filed lawsuits against the Company following China Securities Regulation Commission's discovery of Kelon's falsification of its 2002 to 2004 annual reports. Kelon allegedly used false records, overstate revenue and omit substantial information from the annual reports, TCR-AP reported. CSRC ordered the Company to pay CNY600,000 fine. Former chairman Gu Chujun was also fined CNY300,000 while other directors were ordered to pay a total of CNY1.250 million in fines. * * * Headquartered in Wanchai, Hong Kong, Guangdong Kelon Elecrical Holdings Company Limited -- http://www.kelon.com/-- is one of the largest cooling domestic appliance manufacturers in China, mainly engaging in the development and manufacture, as well as domestic and overseas sales of refrigerators and air- conditioners. Before the latest scandal involving its former chairman, the refrigerator maker was saddled with net losses in 2004, after seeing a CNY197.3 million net profit in 2003 and a similar substantial profit in 2002. With the outbreak of the scandal, it suspended trading of some of its shares and had its assets frozen. The Company was taken over by China's Hisense Group in a CNY900 million acquisition in September 2005. HAYWARD KNITTERS: Liquidator Ceases to Act for Company ------------------------------------------------------ Stephen Liu Yiu Keung ceased to act as the appointed liquidator of Hayward Knitters Ltd on July 4, 2006. The former liquidator can be reached at: Stephen Liu Yiu Keung 18th Floor, Two International Finance Centre 8 Finance Street, Central Hong Kong HOTEL FORTUNA: Final Members' Meeting Set on August 18 ------------------------------------------------------ Members of Hotel Fortuna Ltd will convene for their final meeting at 12/F., No. 3 Lockhart Road, Wanchai, Hong Kong on August 18, 2006, at 10:00 a.m. At the meeting, Liquidator Billy Li Sze Kuen will report on the Company's wind-up and property disposal activities. KOLINE LIMITED: Members' Final Meeting Slated for August 28 ----------------------------------------------------------- The final meeting of the members of Koline Limited will be held at Flat A, 11th Floor, Kingsway Industrial Bldg, 167-171 Wo Yi Hop Road, Kwai Chung, New Territories, Hong Kong on August 28, 2006, at 10:30 a.m. At the meeting, Liquidator Au Lai Ping will report on the Company's wind-up and property disposal activities. MEESPIERSON IPB: Members to Receive Liquidator's Report ------------------------------------------------------- Liquidator Chiu Soo Ching will present accounts of the the wind- up of Meespierson IPB Asia Ltd before the Company's members on September 4, 2006. The Liquidator can be reached at: Chiu Soo Ching Liquidator 2001 Central Plaza 18 Harbour Road, Wanchai Hong Kong NEWFIELD EXPLORATION: June 30 Working Capital Deficit Tops US$7M ---------------------------------------------------------------- Newfield Exploration Company filed its financial results for the first quarter ended June 30, 2006, with the Securities and Exchange Commission on July 28, 2006. For the three months ended June 30, 2006, the Company earned US$94 million of net income on US$390 million of net revenues, compared to US$104 million of net income on US$446 million of net revenues in 2005. The Company's June 30 balance sheet showed strained liquidity with US$812 million in total current assets available to pay $819 million in total current liabilities coming due within the next 12 months. A full-text copy of the Company's Quarterly Report is available for free at http://researcharchives.com/t/s?ea9 Newfield Exploration Company -- http://www.newfield.com/-- is an independent crude oil and natural gas exploration and production company. The Company relies on a proven growth strategy that includes balancing acquisitions with drill bit opportunities. Newfield's areas of operation include the Gulf of Mexico, the U.S. onshore Gulf Coast, the Anadarko and Arkoma Basins of the Mid- Continent, the Uinta Basin of the Rocky Mountains and offshore Malaysia. The Company has international development projects underway in the U.K. North Sea and in Bohai Bay, China. * * * As reported in the Troubled Company Reporter on March 31, 2006, Moody's Investors Service assigned a Ba3 rating to Newfield Exploration's pending $500 million of 10-year senior subordinated notes and affirmed its existing Ba2 corporate family, Ba2 senior unsecured note, and Ba3 senior subordinated ratings. Moody's said the rating outlook remains stable. ORANGE NASSAU: Voluntarily Ceases Operations -------------------------------------------- At an extraordinary general meeting of the members of Orange Nassau Asia Ltd held on July 14, 2006, a special resolution was passed to voluntarily wind up the Company's operation. Subsequently, Joint Liquidators Natalia KM Seng and Susan YH Lo were appointed to manage the liquidation process. The Joint Liquidators can be reached at: Natalia KM Seng Level 28, Three Pacific Place 1 Queen's Road East Hong Kong SAM TAI STEVEDORE: Names Chan as Official Liquidator ---------------------------------------------------- Members of Sam Tai Stevedore Ltd on July 21, 2006, resolved to voluntarily wind-up the Company's operations. In this regard, Poon Chi Woo and Poon Chin Wung was appointed as official liquidator. SUN ALLIANCE: Faces Wind-Up Proceedings --------------------------------------- The High Court of Hong Kong will hear a wind-up petition against Sun Alliance International Ltd on September 20, 2006, at 9:30 a.m. Lee Mun Yee filed the petition on July 11, 2006. Solicitors for the petitioner can be reached at: Tang and Le Room 603, 6th Floor Li Po Chun Chambers 189 Des Vouex Road Central Hong Kong WELRISE HOLDINGS: Members Opt for Voluntary Wind-Up --------------------------------------------------- Members of Welrise Holdings Limited on July 28, 2006, resolved that a voluntary wind-up of the Company's operations is appropriate and necessary, Subsequently, Lee Chi Keung was appointed as liquidator. The liquidator can be reached at: Lee Chi Keung 21/F., Fee Tat Commercial Centre No.613 Nathan Road, Kowloon Hong Kong ========= I N D I A ========= GENERAL MOTORS: Revises Second Quarter Earnings Over GMAC Sale -------------------------------------------------------------- General Motors Corporation, on August 1, 2006, said that it is revising its previously reported results for the second quarter of 2006 because of a change in the estimated tax provision relating to an expected loss on the pending sale of 51% interest in GMAC. Its previously announced adjusted earnings are not affected by this change. GM also disclosed that the Company and GMAC are working with the purchasers of 51% of GMAC equity to try to avoid any delay in closing the GMAC transaction because of a recent moratorium by federal regulators on approval of certain bank transactions. On July 26, 2006, GM reported a net loss of US$3.2 billion or US$5.62 per share, and adjusted earnings, excluding special items, of US$1.2 billion or US$2.03 per share, a significant improvement from the year-ago adjusted loss of US$231 million or US$0.41 per share. GM's reported net loss for the quarter has been increased by US$200 million, or US$0.35 per share, to US$3.4 billion or US$5.97 per share. The increase in the reported net loss is attributable to the estimated tax provision related to the loss from the announced sale of 51% of GM's interest in GMAC to a consortium of investors. The previously estimated after-tax charge of US$490 million has been increased to US$690 million as the tax provision from the GMAC transaction was adjusted to reflect differences in book value and tax basis at several GMAC subsidiaries. The tax increase does not result in a current cash expense to either GM or GMAC. The Company may adjust the estimated loss on sale from the GMAC transaction each quarter until closing due to potential changes in the other comprehensive income adjustment, such as mark-to-market valuation, as well as other factors. Separately, on July 28, 2006, the Federal Deposit Insurance Corporation announced a six-month moratorium on the acceptance of, or final decisions on, notices filed under the Change in Bank Control Act with regard to industrial loan companies. In connection with the GMAC transaction, the consortium and its members have submitted such notices with respect to GMAC's ILC, GMAC Automotive Bank. GM and GMAC are currently evaluating the effect of the FDIC's action on these pending notices, but it appears that the timing of any approval of the notices is likely to be affected by the moratorium. Since FDIC approval of the Change in Bank Control Act notices with regard to GMAC Automotive Bank is a condition to closing the GMAC Transaction, GM and GMAC are now working with the consortium to consider ways to try to avoid delaying the targeted closing date until 2007. 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. GENERAL MOTORS: Global Sales Down 7% ------------------------------------ General Motors Corporation's global sales were more than 7% lower in the quarter ended June 30, 2006, compared to the same period last year, TechWhack News reports. According to TechWhack, GM continues to struggle in its home market in the United States and these losses are not completely filled up by growing sales in newer markets like China and India. GM's July U.S. auto sales fell as high gas prices drove consumers away from the automaker's trucks and sport utility vehicles, The Associated Press says. The automaker's sales dropped 22.6% to 410,332 vehicles, down from 530,027 in July 2005. GM also faced tough comparisons to July 2005, when it offered employee discounts to everyone on many of its models. Adjusted for one less selling day in this July than last, GM sales fell 19.5%, AP reveals. So far this year, GM sales are down 14.1% to about 2.48 million vehicles. Adjusted for sales days GM sales are down 13.6%, AP adds. 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. * Fitch Ups India's Ratings to Investment Grade; Outlook Stable --------------------------------------------------------------- Fitch Ratings, on August 1, 2006, upgraded the Republic of India's Long-term foreign and local currency Issuer Default Ratingsto 'BBB-' from 'BB+', both with Stable Outlooks. The Short-term foreign currency IDR is also raised to 'F3' from 'B' and the Country Ceiling is upgraded to 'BBB-' from 'BB+'. "This upgrade reflects Fitch's view that fiscal consolidation is at last taking hold in India, reinforced by the impressive growth story and India's strong external balance sheet. Public finances are still weak, but they are no longer an insuperable constraint on this rating," says Paul Rawkins, Senior Director in Fitch's Sovereign team in London. Fitch says that for the first time since it started rating India in March 2000, there appears to be near universal commitment mong the center and the states to fiscal consolidation. This sea change in policy intent, coupled with a more discernable path of fiscal consolidation than previously appeared to be the case, has reduced the risk that India's weak public finances could impair its strong external financial position. Although still high, revised data show the general government deficit declining to 7.5% in 2005/06 from 10.1% of GDP in fiscal year 2001/02. Higher growth and lower interest rates have played a part in this outcome but so, too, have much improved tax administration and some widening of the tax net. Modest tightening at the centre has been matched by parallel progress among India's 25 states and union territories, many of which have introduced value-added tax and enacted fiscal responsibility legislation over the past year. Fitch acknowledges that, at 84% of GDP, the public debt ratio remains far above the 'BBB' median (34%) and has been slow to respond to higher growth. However, the agency argues that India has long demonstrated an ability to sustain much higher debt levels than many of its rating peers. An established track record of macroeconomic stability, low inflation and a high domestic savings rate have been key, coupled with a deep domestic capital market and external capital controls, says Fitch. An important by-product of the government's heavy reliance on the domestic debt market to fund its borrowing requirement has been the build up of a net public external creditor position in contrast to many other 'BBB' rated sovereigns. The agency says this, plus an unblemished debt service record, in contrast to many of its rating peers, represent important sovereign rating attributes weighing strongly in the balance against India's weak public finance ratios. Fitch says India's structural reforms, gradual though they may appear, are starting to reap dividends: the economy has been growing at close to 8.5% per annum since 2003/04, notwithstanding the oil price shock, an earlier precursor of which brought the economy to its knees in the early 1990s. While noting that higher oil prices have taken their toll of inflation and the balance of payments, the agency says that neither are the constraints that they once were on growth. India is expected to encounter little difficulty in financing a larger current account deficit of 2.4% of GDP in 2006/07: the gross external financing requirement is estimated at just 18% of reserves, well below the 'BBB' median of 74%, underlining the fact that US$155 billion of international reserves buys significant insurance against external shocks. Despite its more upbeat assessment of the country's public finances, Fitch says that growing signs that private sector borrowers are being 'crowded out' indicate that the public sector borrowing requirement is still incompatible with India's growth aspirations. Credit growth is outstripping deposit growth, raising fears of a credit crunch, which, together with rising inflation expectations, have formed the backdrop to higher interest rates since 2004. "Henceforward, fiscal consolidation will remain the main focus of this rating, particularly in the context of such strong growth, as will the need for a renewed push on structural adjustment," said Fitch's Mr. Rawkins. ================= I N D O N E S I A ================= BANK MANDIRI: Moody's Reviews E+ BFSR for Possible Upgrade ---------------------------------------------------------- Moody's Investors Service had, on Aug. 1, 2006, placed Bank Mandiri's E+ bank financial strength rating on review for possible upgrade. "The review will consider the Bank's positive economic solvency, even after adjustments for additional provisions against its large balance of non-performing and restructured loans," says Beatrice Woo, a Moody's VP/Senior Credit Officer, adding, "The strength of its capital base may help to position it at the low end of the D rating range. Therefore, management's plans for its capital will be an important factor in the review." Ms. Woo added, "However, Moody's sees several credit risks which may constrain further upgrades of Bank Mandiri's BFSR in the longer term. The Bank has not successfully reduced the volatility in its earnings stream, which would have enabled it to generate capital internally on a predictable basis." Bank Mandiri's non-performing loans level is still high; a situation that diverts management's attention away from building the franchise. Bank Mandiri's market share in terms of system deposits eroded to 18%. Internal controls and corporate governance have also proven weak, and in Moody's opinion, the Bank may be vulnerable to government influence, since it is state-controlled. Bank Mandiri -- http://www.bankmandiri.co.id/-- is Indonesia's largest and best-capitalized bank in terms of assets, loans and deposits, and provides comprehensive financial services to more than six million corporate and individual consumers, as well as small and medium-sized enterprises in Indonesia. It was established in 1998 through the merger of four state-owned banks during the Asian economic crisis. Following an initial public offering in July 2003 and another sale in March 2004, the bank is now 68.9% government owned. According to a report by the Troubled Company Reporter - Asia Pacific on May 29, 2006, Moody's Investors Service had upgraded the Bank's subordinated debt rating to Ba3 from Ba1, and its senior debt rating to Ba3 from Ba1, on higher foreign currency bond ceilings. BANK NEGARA: Moody's Revises 'E' BSFR to Positive ------------------------------------------------- On Aug. 1, 2006, Moody's Investors Service revised the outlook for Bank Negara Indonesia's E bank financial strength rating to positive from stable. According to Moody's Senior Credit Officer Beatrice Woo, the positive rating outlook is the result of upward on the bank financial strength rating on its level of positive economic solvency after adjusting for problem loans on its balance sheet. The Bank's profitability ratios also put it at the high end of its rating band, although its earnings trend is erratic." Ms. Woo added, "However, in Moody's opinion, the improvements in Bank Negara's core operations are overshadowed by apparent weaknesses in its standards of corporate governance and internal controls." Bank Negara was involved in a huge letters of credit fraud case in 2003 and faces a high level of non-performing loans due to Bank Indonesia's revised rules. "Until evidence emerges that internal controls and corporate governance at the Bank have strengthened, its BFSR may be constrained in the long term," Ms. Woo said. * * * Established in 1946 as the central bank, Bank Negara Indonesia's -- http://www.bni.co.id/english/index.html/-- role changed in 1949 to that of a commercial bank promoting Indonesia's economic development, particularly the industrial sector. In line with this function, it was granted a foreign exchange license to support the export sector and subsequently built a network of overseas branches. In 1996, it became the first state owned bank to list. BNI is 99.11% government owned, after a recapitalization during the Asian economic crisis. However, despite privatization plans, Moody's believes the Government is likely to remain a substantial shareholder in the foreseeable future. Fitch Ratings Co. Ltd. had on May 24, 2006, affirmed the Bank's ratings: -- Long-term Foreign and Local Currency Issuer Default Ratings at 'BB-'; -- Short-term rating at 'B'; -- Individual rating at 'D'; and -- Support rating at '4'. PERUSAHAAN LISTRIK: 43 Bidders Pre-Qualified to Bid on Projects --------------------------------------------------------------- PT Perusahaan Listrik Negara revealed that 43 out of 59 interested investors had pre-qualified to be able to bid for the company's 10 upcoming coal-based power plant projects, Antara News relates. As reported by the Troubled Company Reporter - Asia Pacific on July 24, 2006, the Indonesian Government had earlier approved the construction of several power plants worth IDR73.09 trillion from 2006 to 2010, in order to produce a combined capacity of 10,000 megawatts to keep up with increasing local power demand. PLN aims to reduce its use of fuel-based power plants to 5% of total capacity from the current 30% level. Winning bidders will be announced on Oct. 20, 2006, according to PLN acting president Djuanda Nugraha Ibrahim. Investors would shoulder 80% of the construction costs, while the remaining 20% will be covered by PLN. Seven of the proposed power plants would yield 300-400 megawatts of electricity, while the rest would have a capacity of 600-700 megawatts. The bidders who had expressed interest in the power plant projects comprised largely of consortiums between local and foreign firms in China, Japan and South Korea. Indonesian state utility firm PT Perusahaan Listrik Negara -- http://www.pln.co.id/-- transmits and distributes electricity to around 30 million customers, roughly 60% of Indonesia's population. The Indonesian Government decided to end PLN's power supply monopoly to attract independents to build more capacity for sale directly to consumers, as many areas of the country are experiencing power shortages. PLN posted an IDR4.92-trillion net loss in 2005, against a net loss of IDR2.02 trillion in 2004. As reported in the Troubled Company Reporter - Asia Pacific on June 30, 2006, the Indonesian Government had offered to settle PLN's debt to state oil and gas firm PT Pertamina, which Pertamina claimed has totaled IDR23.9 trillion. However, PLN acting president Djuanda Nugraha Ibrahim said that the Company owes IDR17 trillion to Pertamina. ========= J A P A N ========= MITSUBISHI MOTORS: 1st Quarter Net Loss Pegged at JPY15.1 Bil ------------------------------------------------------------- Mitsubishi Motors Corporation had, on Aug. 2, 2006, disclosed its financial results for the first quarter of the fiscal year ending March 31, 2007. The Company's net sales for the first quarter FY06 amounted to JPY483.9 billion, slightly down from the JPY485.8 billion figure reported for the first quarter FY05. The slight decrease was mainly due to a drop in sales volume in MMC's Asia & Other Region markets, which was not completely offset by increases in Japan, North America and Europe. Mitsubishi Motors reported an operating loss of JPY6.8 billion for the first quarter, against a JPY7-billion loss for the same period last year. A weaker yen, reductions in advertising outlays in the United States, and improved profitability at Mitsubishi's U.S. financial services unit contributed to the lower net loss. The Company also reduced its ordinary and net losses: reporting an ordinary loss of JPY12.2 billion, a year- on-year improvement of JPY7.8 billion, and a net loss of JPY15.1 billion, an improvement of JPY6.5 billion. Mitsubishi Motors' global market sales for the first quarter of 2006 totaled 292,000 vehicles, against 362,000 vehicles sold in the first quarter of 2005. In Japan, the Company sold 52,000 vehicles, a year-on-year increase of 4,000, as sales grew year- on-year for the 15th consecutive month (through July 2006) since May 2005. This first-quarter increase reflected positive gains stemming from the new Outlander and i models the company launched in FY2005, as well as by the release of the Colt RALLIART Version-R, i Play Edition, and other special edition models in a domestic market where total demand fell over the period under review. In North America, Mitsubishi Motors halted the slide in sales volume selling 42,000 vehicles, an increase of 1,000 over the same period last year. This reflected sales-boosting measures introduced under the new management structure at Mitsubishi Motors North America, Inc. and strong sales of the new Eclipse Spyder that began full sales in April. In Europe, MMC sold 71,000 vehicles, a year-on-year increase of 5,000 driven mainly by a substantial increase in sales volume in Russia and the Ukraine, major growth markets in the region. In markets in its Asia & Other region, Mitsubishi Motors sold 127,000 vehicles, 44,000 fewer than in the same period last year. Markets in the Middle East and Africa posted solid growth but total regional sales volume was affected by slower sales in Taiwan and ASEAN-block countries where total demand fell due to higher oil prices and other factors, and by increased consumption tax in China. Mitsubishi Motors Corp. Key Accounts (in Millions JPY) As of As of 06/30/2006 06/30/2005 ---------- ---------- Current Assets JPY821,736 JPY785,500 Current Liabilities 877,860 842,965 Total Assets 1,536,611 1,538,060 Total Liabilities 1,276,912 1,225,905 Shareholders' equity 268,678 301,723 Apr-Jun 06 Apr-Jun 05 ---------- ---------- Net Loss 15,107 21,646 About Mitsubishi Motors Corp. Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation -- http://www.mitsubishi-motors.co.jp/-- is one of the few automobile companies in the world that produces a full line of automotive products ranging from 660-cc mini cars and passenger cars to commercial vehicles and heavy-duty trucks and buses. The Company also operates consumer-financing services and provides this to its customer base. MMC adopted the "Mitsubishi Motors Revitalization Plan" on January 28, 2005, as its three-year business plan covering fiscal 2005 through 2007, after investor DaimlerChrysler backed out from the Company. The main objectives of the plan are "Regaining Trust" and "Business Revitalization." * * * Japan Credit Rating Agency, Ltd. had on July 18, 2006, upgraded the Company's senior debts rating to BB- from B- with a stable outlook, as its restructuring has been going well as planned, with Mitsubishi group firms increasing their stakes in MMC to 34.3% as of March 31, 2006. PIONEER CORP: Shares Rise 12% on FY06 Profit Forecast ----------------------------------------------------- Shares of Pioneer Corp. rose 10% to JPY2,065 per share on its increased net income projection to JPY7.5 billion for the year ending March 2007, as well as a return to net profit in the first quarter this year, Bloomberg News relates. Goldman Sachs Tokyo analyst Yuji Fujimori raised Pioneer's rating to "neutral" from "sell" on the expectation that its outlook for its plasma display prices would be lower than expected, while UBS Tokyo-based analyst Fumio Osanai raised the Company's ratings to "neutral" from "reduce, since its earnings from its plasma display panels rose on cost reductions. Bloomberg states that in 2005, Pioneer announced that it would shut down 10 of 40 factories and lay off some 2,600 workers or 7% of its workforce in a massive JPY30-billion cost reduction plan. The Company forecasts annual sales to reach JPY845 billion from an initial JPY830 billion, and operating profit is expected to reach JPY18 billion compared to the previous JPY12- billion expectation. About Pioneer Corp. Headquartered in Tokyo, Japan, Pioneer Corporation -- http://www.pioneer.co.jp/-- manufactures consumer and commercial electronics, about 40% of its sales come from car electronics, which are sold to retailers and automobile manufacturers. Pioneer also makes video equipment and audio products. Through Disco Vision Associations, Pioneer also generates revenue from licensing optical disc technologies. Pioneer has more than 30 manufacturing facilities worldwide. * * * The Troubled Company Reporter - Asia Pacific stated on May 2, 2006, that Pioneer posted a tenfold increase in its net loss for 2005 to JPY84.9 billion, from a JPY8.8 billion net loss in 2004, due to an increase in restructuring efforts to combat price falls of its digital appliances. However, the Company turned around with a JPY5.66-billion net profit for the first quarter of 2006, on lower costs and increased sales of its plasma display panels, audio products and car navigation products, as well as a weaker currency. SHINSEI BANK: Moody's Affirms D+ Bank Financial Strength Rating --------------------------------------------------------------- Moody's Investors Service had, on July 31, 2006, affirmed Shinsei Bank, Limited's stable A3 long-term deposit and senior unsecured debt ratings, Prime-2 short-term deposit rating and D+ bank financial strength rating, following its announcement of its intention to repurchase its government-owned capital. According to the announcement on July 31, 2006, the Deposit Insurance Corporation of Japan accepted Shinsei's proposal to convert half of Shinsei's Class B preferred shares -- JPY120 billion on a par value basis -- into around 200 million common shares at a conversion price of JPY599.9, and dispose these common shares via a market transaction. Shinsei intends to repurchase these common shares on appropriate terms and conditions, for a maximum amount of JPY154 billion. Moody's thinks that Shinsei will maintain its targeted level of capitalization -- 7-8% Tier I capital ratio -- despite the negative impacts on its capital from this transaction, and notes that the proportion of hybrid securities to total Tier I capital will increase. The agency also considers that there could be challenges in the Company's capital strategy going forward, given: 1. the residual government-owned preferred shares will reach mandatory conversion dates in August 2007 and April 2008, and 2. Shinsei has an active growth strategy that may utilize further M&A. About Shinsei Bank Headquartered in Tokyo, Shinsei Bank Limited -- http://www.shinseibank.com/english/-- traditionally focused on financing Japan's large industrial firms, but it has been cultivating its retail and small business banking operations. The Bank offers standard services such as deposits, mortgages, and investments. Institutional activities include asset management, bond sales and underwriting, and trust services, as well as real estate finance and public sector finance, which each debuted in 2005. Shinsei Bank has about 30 branches. SHINSEI BANK: Fitch Ratings Affirms Individual 'C' Rating --------------------------------------------------------- Fitch Ratings Co. Ltd. had, on Aug. 1, 2006, affirmed Shinsei Bank's ratings, all with a stable outlook: -- Long-term foreign and local currency Issuer Default Ratings at 'BBB+'; -- Short-term foreign and local currency IDRs at 'F2'; -- Individual rating at 'C'; and -- Support 'rating at 3'. The rating affirmations follow the Bank's announcement that it would begin resolution of its public funds. The Japanese Government, acting through the Deposit Insurance Corporation of Japan, accepted Shinsei's application to the Resolution and Collection Corporation to convert a part of its public funds in the form of Shinsei preferred shares into common stock, to be sold in the market. The agency notes that this will improve the Bank's capital quality, but states that as Shinsei intends to repurchase a portion of these shares, this would effectively limit the bank's capital ratios somewhat. Once the transaction is completed, Shinsei will have repaid JPY120 billion in public funds and would have a balance of JPY250 billion owed to the Government. Fitch will continue to monitor the Bank's capital levels, its quality and its further sustainability. About Shinsei Bank Headquartered in Tokyo, Shinsei Bank Limited -- http://www.shinseibank.com/english/-- traditionally focused on financing Japan's large industrial firms, but it has been cultivating its retail and small business banking operations. The Bank offers standard services such as deposits, mortgages, and investments. Institutional activities include asset management, bond sales and underwriting, and trust services, as well as real estate finance and public sector finance, which each debuted in 2005. Shinsei Bank has about 30 branches. ========= K O R E A ========= AMKOR TECH: Turns Around with US$24M Net Profit in 2nd Quarter -------------------------------------------------------------- Amkor Technology Inc. turned to profit in the second quarter of 2006, Reuters reports. Net income is US$24 million in the second quarter of 2006, or 13 cents per share, compared with a net loss of US$52 million in last year's second quarter. Revenue was US$689.6 million, compared with US$489.3 million in the previous corresponding quarter. The company also reported record second quarter 2006 sales of US$687 million, up 40% from the second quarter of 2005 and up 6% from the first quarter of 2006. Its earnings and forecast, however, fell short of Wall Street expectations. Analysts, on average, expected net income of 27 cents per share and revenue of US$664.5 million, according to Reuters. Second quarter 2006 gross margin rose to 25% from 24% in the first quarter. Amkor Chief Financial Officer Ken Joyce explains that during the second quarter, the company commenced the build out of its new wafer bumping and test facility in Singapore and a new assembly and test factory in Shanghai. Depreciation expense and other costs associated with these factories will continue to influence gross margin until a critical mass of revenue is built in these operations. Capital expenditures totaled US$93 million in the second quarter and US$196 million for the first six months. The company also announced that its board of directors will undertake a voluntary review of the company's historical stock options practices, assisted by an independent counsel. The company's 2006 second quarter balance sheet revealed total current assets of US$753 million available to pay total current liabilities of US$697.43 million. Moreover, as of June 30, 2006, Amkor Tech's balance sheet showed total assets of US$3 billion and total liabilities of US$2.7 billion, resulting in total stockholders' equity of US$292.2 million -- an increase from the US$224.3 million total equity as of December 31, 2005. Business Outlook For the third quarter of 2006, the company expects: * Sales flat to up 2% from the second quarter of 2006; * Gross margin in the range of 24% to 25%; and * Net income in the range of US$0.23 to US$0.27 per diluted share Amkor's news release and financial report for the quarter ended June 30, 2006, can be viewed at the company's Web site at: http://www.amkor.com/news/pressreleases/ShowPR.cfm?ID=374 About Amkor Tech Based in West Chester, Pennsylvania, Amkor Technology Inc. -- http://www.amkor.com/-- is a leading provider of advanced semiconductor assembly and test services. The company offers semiconductor companies and electronics OEMs a complete set of microelectronic design and manufacturing services. It has sales and manufacturing offices in Japan, China, Taiwan, the Philippines and Korea. * * * Moody's Investors Service affirmed the B3 corporate family rating of Amkor Technology. Moody's also affirmed these ratings: * US$300 million Senior Secured Term Loan due October 2010 of B2; * Senior Unsecured Notes with various maturities totaling US$1.1 billion of Caa1; and * Subordinated Notes with various maturities totaling US$479.4 million of Caa3 In addition, Moody's upgraded the speculative grade liquidity rating to SGL-3 from SGL-4. Standard & Poor's Ratings Services on May 12, 2006, assigned its 'CCC+' rating to a new US$300 million senior unsecured note due 2016 and its 'CCC' rating to a new US$150 million subordinated convertible note due 2011 being issued by Chandler, Arizona- based Amkor Technology Inc. Proceeds of both notes will be used to partially refinance existing notes due 2008 and 2009. Total debt of about US$2.2 billion is expected to be unchanged. The S&P corporate credit rating on Amkor Technology is B- /Positive. CITIBANK KOREA: Posts KRW81.5-Billion Net Income for 1st Quarter ---------------------------------------------------------------- Citibank Korea Inc. reported a net income of KRW81.5 billion for the first quarter of 2006, which is 39.3% and 7.8% lower than the first quarter of 2005 and the fourth quarter of 2005, respectively, according to a company press release. The 2006 first quarter's results reflect the effects of a six- month labor action on CKI's revenues and expenses. The labor union action was settled on March 20, 2006. Net interest income for the 2006 first quarter decreased by KRW5.9 billion from the figure recorded for the first quarter of 2005, and by KRW14.8 billion compared with the 2005 fourth quarter result due to a decline in consumer assets. The volumes of consumer loans and credit cards for the first quarter this year decreased by 6.3% from the previous corresponding quarter and 5.8% versus the preceding quarter, primarily due to the labor action, which reduced new customer acquisition and increased attrition. Net interest margin improved to 2.73% for the 2006 first quarter. Net non-interest income decreased by KRW63.9 billion year-on- year, due primarily to a decrease in gains from foreign exchange and derivatives business, and lower fees from investment product and insurance product sales, and also due to the labor action. Compared to the fourth quarter of 2005, net non-interest income for the first quarter of 2006 increased by KRW44 billion, however due to a one time charge of KRW41 billion for loan loss reserves on unused commitments charged in the fourth quarter. Non-operating income decreased to KRW32 billion from KRW138.4 billion in the previous quarter, which included a one- time gain on the sale of Hynix equity securities. The non-performing loans ratio improved by two basis points to 1.38%, while the NPL coverage ratio improved from 96.2% in the previous quarter to 96.6% in first quarter of 2006. Total assets of KRW50 trillion are KRW4.6 trillion or 10.2% above the recorded total assets as of December 2005. Loans of KRW28 trillion are KRW0.1 trillion or 0.4% below December 2005, while deposits of KRW27.2 trillion decreased KRW1.2 trillion, or 4.1% from December 2005. ROA and ROE for the quarter are 0.67% and 10.68%, respectively. CKI's BIS capital ratio and Tier I ratio are estimated at 14.14% and 11.28%, which are among the strongest in the Korean banking system. About Citibank Korea Citibank Korea Inc. -- http://www.citibank.co.kr/-- provides a variety of commercial banking, trust, and investment services. The bank's services include consumer loans, deposits, trust accounts, credit cards, Internet banking, financial derivatives, foreign exchange, and securities dealing and brokeraging. Moody's Investors Service gave Citibank Korea a Bank Financial Strength Rating of 'D+' effective on June 28, 2005. Fitch Ratings gave the bank a 'B/C' Individual Rating on August 1, 2005. KRISPY KREME: Inks Pact with Great Circle to Settle Litigation -------------------------------------------------------------- Krispy Kreme Doughnuts, Inc., and its wholly-owned subsidiary, Krispy Kreme Doughnut Corporation, reached agreements with their Southern California franchisee, Great Circle Family Foods, LLC, on an integrated transaction involving the settlement of all pending litigation between the parties. As part of the transaction, Southern Doughnuts, LLC, a wholly owned subsidiary of Krispy Kreme Doughnut Corporation, will acquire at closing three of GCFF's stores located in Burbank, Ontario and Orange, California, together with the related franchise rights. Southern Doughnuts has agreed to pay GCFF US$2.9 million for the acquired stores and related assets, with US$400,000 having already been paid upon the signing of the agreements and US$2.5 million to be paid upon the parties' satisfaction of certain closing conditions. The parties anticipate closing the transaction in mid-to-late August. Under the agreements, Krispy Kreme, GCFF and related parties exchanged mutual releases and dismissals regarding the pending litigation and arbitration, which releases and dismissals will remain in effect unless Southern Doughnuts fails to remit the balance of the consideration owed. In addition, the parties contemplate negotiating and entering into an option agreement under which Krispy Kreme will have the option to acquire 100% of the equity of GCFF for nominal consideration, exercisable following a due diligence period to be agreed to by the parties. "This agreement is another step in the turnaround of Krispy Kreme," said Daryl Brewster, President and Chief Executive Officer of Krispy Kreme. "We look forward to gaining the rights to several profitable stores in the Southern California market and continuing to serve our customers there." About Krispy Kreme Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme (NYSE: KKD) --http://www.krispykreme.com/-- is a leading branded specialty retailer of premium quality doughnuts, including the Company's signature Hot Original Glazed. There are currently approximately 300 Krispy Kreme stores and 90 satellites operating systemwide in the U.S., Australia, Canada, Mexico, the United Kingdom and the Republic of South Korea. Headquartered in Winston-Salem, North Carolina, Freedom Rings LLC is a majority-owned subsidiary and franchisee partner of Krispy Kreme Doughnuts, Inc., in the Philadelphia region. The Debtor operates six out of the approximately 360 Krispy Kreme stores and 50 satellites located worldwide. The Company filed for chapter 11 protection on Oct. 16, 2005 (Bankr. D. Del. Case No. 05-14268). M. Blake Cleary, Esq., Margaret B. Whiteman, Esq., and Matthew Barry Lunn, Esq., at Young Conaway Stargatt & Taylor, LLP, represent the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it estimated US$10 million to US$50 million in assets and debts. Headquartered in Oak Brook, Illinois, Glazed Investments, LLC, is a 97%-owned unit of Krispy Kreme. Glazed filed for chapter 11 protection on Feb. 3, 2006 (Bankr. N.D. Ill. Case No. 06- 00932). The bankruptcy filing will facilitate the sale of 12 Krispy Kreme stores, as well as the franchise development rights for Colorado, Minnesota and Wisconsin, for approximately $10 million to Westward Dough, the Krispy Kreme area developer for Nevada, Utah, Idaho, Wyoming and Montana. Daniel A. Zazove, Esq., at Perkins Coie LLP represents Glazed in its restructuring efforts. When Glazed filed for protection from its creditors, it estimated assets and debts between US$10 million to US$50 million. KremeKo, Inc., Krispy Kreme's Canadian franchisee, is currently restructuring under the Companies' Creditors Arrangement Act. Pursuant to the Court's Initial Order, Ernst & Young Inc. was appointed as Monitor in KremeKo's CCAA proceedings. The Monitor is attempting to sell the KremeKo business. LG TELECOM: Revocation & Fines Bring In KRW195-Billion Net Loss --------------------------------------------------------------- LG Telecom Ltd. recorded a net loss of KRW195.4 billion in the quartered ended June 30, 2006, due to incurred deferred tax asset, license revocation, and fines by Korea's Fair Trade Commission and Korea Communications Commission, the company's earnings release revealed. Service revenue in the second quarter of 2006 increased by 2.9% to KRW743 billion quarter on quarter due to increased new subscriber and high ARPU customers. Operating cost is up by 6.7% QoQ due to increased acquisition cost and penalty levied by KCC and FTC, while operating profit decreased by 10.8% to KRW94.8 billion QoQ. AFX News Limited says that operating profit fell due to higher marketing costs and fines imposed by regulators. Recurring loss is recorded at KRW234.8 billion due to the cancellation of IMT 2000 license in the 2.1GHz spectrum, which resulted in one off non-operating expense as the impairment loss on intangible assets. Average revenue per user stood at KRW36,300 in the second quarter, up 2.4% from a year earlier. LG Telecom's financial report for the second quarter 2006 is available for free at: http://bankrupt.com/misc/LGT2Q06_English(060802).pdf LG Telecom Balance Sheet Summary (in KRW, billions) As of As of Change As of Change 6/30/06 3/31/06 QoQ 6/30/05 YoY ------- ------- ------ ------- ------ Total Assets 3,290.9 3,845.9 -14% 3,624.6 -9% Current assets 1,283.9 1,187.6 8% 976.3 32% Investment Assets 405.3 411.7 -2% 377.1 7% Fixed Assets 1,598.6 1,605.6 0% 1,656.3 -3% Intangible Assets 3.1 641.0 -100% 614.8 -99% Total Liabilities 2,138.7 2,495.6 -14% 2,547.7 -16% Current Liabilities 1,270.1 1,227.5 3% 1,510.7 -16% Non-current Liabilities 868.5 1,268.1 - 32% 1,037.0 -16% Total Shareholder's Equity 1,152.3 1,350.3 -15% 1,076.9 7% Liabilities to equity ratio 185.6% 184.8% 236.6% Net debt to equity ratio 86.6% 81.9% 114.5% As reported in the Troubled Company Reporter - Asia Pacific on June 30, 2006, LG Telecom faced fines amounting to KRW15.1 billion, part of the record KRW73.2 billion fines levied by the KCC on SK Telecom, KTF, LG Telecom and KT due to subsidy- related illegalities. Another TCR-AP report on July 31, 2006, stated that the FTC has slapped LG Telecom with a KRW2.03-billion fine for price fixing practices, after the FTC found that LG Telecom had colluded with KTF in early 2000 to cut voice telephony service fees by 3%, lower than the fees advised by the Ministry of Information and Communication. Moreover, on July 26, 2006, the TCR-AP reported that the South Korean Government has decided to cancel LG Telecom's business license for third-generation services in the country, after the Company abandoned plans to develop the 3G wireless communication technology. Subsequently, South Korea's Ministry of Information and Communication had said that it will demand KRW103.5 billion (US$108.8 million) in fees from LG Telecom for its exclusive use of the 2.0GHz bandwidth between May 2002 and July 2006, when its 3G license was revoked. About LG Telecom Headquartered in Kangnam-gu, Seoul, South Korea, LG Telecom Ltd. -- http://www.lgtelecom.com/-- is a telecommunications and mobile phone operator controlled by the LG Group, one of the country's largest chaebol. It is Korea's smallest wireless operator. LG Telecom became one of the first companies to launch a commercial 3G service using PCS technology. In 1997, this was followed up by launching the second PCS network, offering greatly increased data transmission speeds. LG Telecom also offers a variety of internet services. BankOn is one of the most popular mobile banking services in South Korea and MusicOn is a popular instant messenger. Moody's Investor Service gave LG Telecom a 'Ba2' Issuer Rating, a 'Ba2' Long-Term Corporate Family Rating and a 'Ba2' Senior Unsecured Rating. Standard & Poor's Ratings Services gave LG Telecom 'BB+' Long- Term Foreign Issuer Credit and Long-Term Local Issuer Credit Ratings. Fitch Ratings gave the Company 'BB' Long-Term Foreign Issuer Default and Foreign Currency Long-Term Default Ratings. LG TELECOM: Adds 52,117 Subscribers in July 2006 ------------------------------------------------ LG Telecom Ltd.'s subscribers grew by 52,117 to total 6,816,755 in July 2006, a marginal 1% growth, the company said in its latest fact sheet. The number represents a 10% improvement from July 2005's 6,220,585 listed subscribers. LG Telecom activated 252,290 lines in July 2006, 28% less than the 349,537 in June 2006. The number of deactivated lines also declined to 200,173 from 281,946 in June. Consequently, the Company's churn rate dropped to 2.9% from 4.2% in June 2006. Customer churn is a measure of the number of customers who stopped using LG Telecom's services. LG Telecom also says that in July 2006, its market share was up marginally to 17.3%, while rivals KTF and SK Telecom held 32.2% and 50.6% of the market, respectively. A year ago, LG Telecom had a market share of 16.5%, while KTF and SK Telecom had market shares of 32.5% and 51.0%, respectively. About 81.3% of South Korea's total population of 48,606,218 uses these telecommunication companies' services. About LG Telecom Headquartered in Kangnam-gu, Seoul, South Korea, LG Telecom Ltd. -- http://www.lgtelecom.com/-- is a telecommunications and mobile phone operator controlled by the LG Group, one of the country's largest chaebol. It is Korea's smallest wireless operator. LG Telecom became one of the first companies to launch a commercial 3G service using PCS technology. In 1997, this was followed up by launching the second PCS network, offering greatly increased data transmission speeds. LG Telecom also offers a variety of internet services. BankOn is one of the most popular mobile banking services in South Korea and Musicon is a popular instant messenger. Moody's Investor Service gave LG Telecom a 'Ba2' Issuer Rating, a 'Ba2' Long-Term Corporate Family Rating and a 'Ba2' Senior Unsecured Rating. Standard & Poor's Ratings Services gave LG Telecom 'BB+' Long- Term Foreign Issuer Credit and Long-Term Local Issuer Credit Ratings. Fitch Ratings gave the Company 'BB' Long-Term Foreign Issuer Default and Foreign Currency Long-Term Default Ratings. STANDARD CHARTERED FIRST BANK: 1Q Net Profit Up KRW34.2 Billion --------------------------------------------------------------- Standard Chartered First Bank Korea Limited recorded an operating profit after tax of KRW76.2 billion in the first quarter of 2006, up KRW34.2billion, or 81%, from the figure reported in the first quarter of 2005, a bank press release states. Total revenue for the quarter ended March 31, 2006, reached KRW309.4 billion, an increase of KRW57.2 billion, or 23%, year on year. Net interest income increased 13% YoY, fuelled by growth in mortgages, unsecured loans and SME loans. Non- interest income rose by 105% YoY resulting from dealing room activities and sales increases in foreign exchange, derivatives, bank assurance and beneficiary certificates. SC First Bank provided these selected financial data: SC First Bank Operating Results (Unit: KRW billion) Q1 2006 Q1 2005 Amt % ------- ------- ------- ------- Total Revenue 309.4 252.2 57.2 22.7 Operating expenses 186.8 154.7 32.1 20.7 Operating margin 122.7 97.5 25.2 25.8 Provision for credit losses 7.3 34.5 (27.2) (78.8) Operating income 115.4 63.0 52.4 83.2 Net non-operating revenue/(expense) (8.2) (9.5) 1.3 (13.7) Earnings before tax 107.2 53.4 53.8 100.7 Income tax (including deferred tax) 31.0 11.5 19.5 169.6 Net income 76.2 42.0 34.2 81.4 * Q1 06 includes SCB Seoul Branch which was incorporated into SC First Bank in November 2005. About SC First Bank Standard Chartered First Bank Korea Ltd. -- http://www.scfirstbank.com-- is a commercial bank that offers a wide range of financial services. The company's offerings include loans, deposits, credit card, trust accounts, financial derivative transactions, corporate banking, consumer banking, and investment banking services. SC First Bank is the sixth largest commercial bank in Korea with total assets of KRW60.2 trillion as of March 31, 2006. Through its nationwide network of 404 branch offices, SC First Bank serves some 3.5 million clients in Korea. Moody's Investors Service gave SC First Bank a Bank Financial Strength Rating of 'D+' effective on May 10, 2005. Fitch Ratings gave the bank a 'C' Individual Rating on May 7, 2001. WOORI BANK: Real Estate Service Picks Up KRW112 Billion ------------------------------------------------------- Woori Bank said that it has mediated 57 real estate transactions worth KRW112 billion (US$118 million) as of July 27, 2006, the Korea Times reports. The result means that 22.1% of the total 258 real estate items registered at the bank's real estate agent service were sold. According to the report, the lender launched the service in May 2005. Customers are very satisfied with the service, as most of them already had trouble searching for buyers for their properties, ranging from apartments and buildings to land and factory sites. Those who want the service have to fill out a request at a Woori Bank branch, and send the necessary documents to the Small & Medium Corporate Banking Business Unit of the lender. Then the item is registered on the bank's homepage and intranet, as well as at Real Estate 114 -- http://www.r114.co.kr/-- a leading online real estate information site. The Times notes that while it costs around KRW100,000 to register items with online real estate agencies, the whole process is free of charge. There is no brokerage fee, and the transaction is trustable as the bank checks out the property before putting it up for sale. Unlike other banks, which provide a part of their Web site to real estate agents wishing to register their offerings, Woori Bank is acting as a real estate agent. Banks recently have put more emphasis in services targeting wealthy customers with real estate, employing specialists at their private banking sectors, providing real estate information and also helping customers purchase real estate overseas, The Times says. About Woori Bank Woori Bank -- http://www.wooribank.com/-- is a government-owned bank headquartered in Seoul, Korea. The bank was established in 2002, and includes the former Hanbit Bank, Sangup Bank and Hanil Bank. It is a part of the Woori Financial Group. It has branches all over the world, including New York, Los Angeles, Beijing, Tokyo, Hong Kong, Indonesia, Bahrain, Singapore, Moscow, London, and Dhaka. * * * Fitch Ratings gave Woori Bank an individual rating of 'B/C' effective July 20, 2005. Moody's Investors Service gave Woori a 'D+' Bank Financial Strength Rating effective March 14, 2006. Standard & Poor's Ratings Services gave Woori Bank a 'C+' Bank Financial Strength Rating. =============== M A L A Y S I A =============== AKTIF LIFESTYLE: To Hold 12th Annual General Meeting on Aug. 24 --------------------------------------------------------------- Aktif Lifestyle Corporation Berhad will hold its 12th Annual General Meeting on August 24, 2006, at 2:30 p.m., at Level 2, Grans Seasons Hotel, No. 72 Jalan Pahang, in Kuala Lumpur, Malaysia. During the meeting, members will be asked to: -- receive and adopt the Company's Audited Financial Statements for the financial year ended February 28, 2006, together with the Reports of the Directors and Auditors; -- approve the payment of Directors' fees for the year ended February 28, 2006; -- re-elect Chan Teik Huat, who retires pursuant to the Company's Articles of Association; -- reappoint Deloitte KassimChan as auditors of the Company and authorize the Directors to fix their remuneration; -- authorize the Directors to issue shares in the Company at any time until the conclusion of the next Annual General Meeting and on terms and conditions and for purposes deemed fit by the Directors provided that the aggregate number of shares to be issued does not exceed 10% of the issue share capital of the Company for the time being; and -- transact any other ordinary business for which due notice will be given. About Aktif Lifestyle Headquartered in Kuala Lumpur, Malaysia, Aktif Lifestyle Corporation Berhad's principal activities is the operation of specialty retail stores. Other activity includes investment holding. The Company has defaulted on several loan facilities and incurred continuous losses. It embarked on various corporate exercises aimed at regularizing its financial condition. In 2005, the Company presented a proposed restructuring scheme, which did not win the Securities Commission's favor due to uncertainty in assets valuation and concerns on corporate governance issues. An appeal to the SC to review its decision on the Proposed Restructuring Scheme was already submitted. As reported by the Troubled Company Reporter - Asia Pacific, Bursa Malaysia Securities Berhad, on June 8, 2006, commenced delisting procedures against Aktif, which is a Practice Note 10 company. In a statement, Bursa Securities said that Aktif has failed to ensure that its level of operations is adequate in accordance to the listing requirements. ANTAH HOLDINGS: HSBC Asserts Over MYR30-Million Claim ----------------------------------------------------- On July 28, 2006, HSBC Bank Malaysia Berhad served a Writ of Summons dated July 19, 2006, on Antah Holdings Berhad's wholly owned subsidiary, Kaseh Lebuhraya Sdn Bhd. HSBC asserts a claim for MYR30,380,152. Antah is currently liaising with its solicitors to take the appropriate actions to protect its legal rights. The Company will also be negotiating with HSBC to resolve the matter amicably. The Troubled Company Reporter - Asia Pacific reported on Aug. 1, 2006, that Kaseh Lebuhraya had received a Writ of Summons dated July 20, 2006, from Azam Developer & Construction Sdn Bhd. Azam Developer asserts a MYR19.4-million compensation claim plus interests at a rate determined by the Kuala Lumpur High Court. About Antah Holdings Headquartered in Petaling Jaya, Selangor Darul Ehsan, Malaysia, Antah Holdings Berhad -- http://www.antah.com.my/-- manufactures and trades pharmaceutical products and fluid engineering and manufacturing. The Company's other activities include retailing of houseware and kitchenware, property development, insurance broking, provision of management services, and investment holding. The Group discontinued its beverage and security services operations. The Group operates in Malaysia, Australia, United Kingdom, and Singapore. The Company's March 31, 2006, balance sheet showed total assets of MYR698,224,000 and total liabilities of MYR1,051,307,000 resulting into a shareholders' deficit of MYR353,083,000. The Company's default on its credit facilities totaled MYR286,442,000, as of April 30, 2006. DATUK KERAMAT: Fined for Breaching Listing Requirements ------------------------------------------------------- On July 31, 2006, Bursa Malaysia Securities Berhad publicly reprimanded and fined Datuk Keramat Holdings Berhad for breaching the Bourse's Listing Requirements. The Bourse imposes a fine of MYR2,000 per market day calculated from May 1, 2006, until the date the Company submits its annual audited accounts for the financial year ending December 31, 2005. The Bourse further imposes a public reprimand and fine of MYR126,000 on the Company for failing to submit its financial report for the quarter ended December 31, 2005, by the Feb. 28, 2006, deadline. In addition, the Bourse orders Datuk Keramat to pay MYR2,000 per market day calculated from June 1, 2006, until the date the Company files its financial report for the quarter ended March 31, 2006. The public reprimand and fines were imposed after taking into consideration all the circumstances and the relevant factors of the matter including the fact that the Company had previously breached the Listing Requirements. As reported by the Troubled Company Reporter - Asia Pacific on May 29, 2006, the Company's securities have already been suspended since August 1, 2005, because it has not issued the Annual Audited Accounts and Annual Report for the 15-month period ended December 31, 2004, Quarterly Reports for the periods ended March 31, 2005, June 30, 2005, and September 30, 2005, by the given due dates. TCR-AP also reported on July 26, 2006, that the Company has not issued its Annual Audited Report for fiscal 2005, which was due on July 31, 2006. About Datuk Keramat Holdings Headquartered in Pulau Pinang, Malaysia, Datuk Keramat Holdings Berhad is engaged in investment and property holding. The Company is also involved in management services; property investment services; project management services and development; credit and financing activities; distribution and publication of magazines; media design and advertising; management of supermarket and departmental store; trading and distribution of pharmaceutical, management of car park, garment manufacturing and financial services. The Group faced numerous suits filed by financiers and trade creditors who have alleged that outstanding debts are owed to them. On January 24, 2005, the Company was served with a wind-up petition by Affin Bank Bhd, who claimed a sum of MYR15.66 million in respect of revolving credit facilities granted to the Company. GEORGE TOWN: Bourse Halts Trading of Securities ----------------------------------------------- On July 31, 2006, Bursa Malaysia Securities Berhad suspended the trading of the listed securities of George Town Holdings Berhad for failing to submit for public release the Company's annual audited accounts for the financial year ended December 31, 2005. However, as the Company's listed securities have already been suspended from trading since August 1, 2005, the suspension will continue regardless of the new suspension action. The Bourse also warned that the Company's securities may be delisted in addition to any enforcement action the Bourse may take. About George Town Holdings Headquartered at Petaling Jaya, in Selangor Darul Ehsan, Malaysia, George Town Holdings Berhad operates supermarkets, department stores and convenience stores. Its other activities include property development, trading in pharmaceutical products, media design and advertising, management services, goldsmith and jewelers, management of car parks, bakery, pastry and fast food center, financial services, hotel management and investment holding. The Group operates in Malaysia, Continental Europe/Offshore Islands and other countries. The Company has been suffering losses since 1999 and had closed over 10 outlets in the past four years. The Company is classified under the Bursa Malaysia Securities Berhad's Practice Note 17 category, where it is required to submit a plan to regularize its financial condition. GEORGE TOWN: Bourse Gives Reprimand and Slaps Fines --------------------------------------------------- On July 31, 2006, Bursa Malaysia Securities Berhad publicly reprimanded and imposed fines on George Town Holdings Berhad for breach of Listing Requirements. The Bourse reprimanded and imposed a fine of MYR126,000 on the Company for failing to submit its financial report for the quarter ended December 31, 2005, by February 28, 2006. The Company also received a public reprimand and fine of MYR2,000 per market day calculated for each of these instances: (a) from May 1, 2006, until the date the Company submits its annual audited accounts for fiscal year ended Dec. 31, 2005, by April 30, 2006; and (b) from June 1, 2006, until the date the Company submits its first quarter report ended March 31, 2006, by May 31, 2006. The public reprimands and fines were imposed after taking into consideration various relevant factors including the fact that the Company had previously breached the Bursa Securities Listing Requirements. Bursa Securities further directed the Company to furnish its outstanding financial reports to Bursa Securities for public release by August 31, 2006. Furthermore, Bursa Securities reminds the Company on its responsibility to maintain appropriate standards of corporate responsibility and accountability to achieve greater disclosure and transparency to its shareholders and the investing public. About George Town Holdings Headquartered at Petaling Jaya, in Selangor Darul Ehsan, Malaysia, George Town Holdings Berhad operates supermarkets, department stores and convenience stores. Its other activities include property development, trading in pharmaceutical products, media design and advertising, management services, goldsmith and jewelers, management of car parks, bakery, pastry and fast food center, financial services, hotel management and investment holding. The Group operates in Malaysia, Continental Europe/Offshore Islands and other countries. The Company has been suffering losses since 1999 and had closed over 10 outlets in the past four years. The Company is classified under the Bursa Malaysia Securities Berhad's Practice Note 17 category, where it is required to submit a plan to regularize its financial condition. LANKHORST BERHAD: Fined MYR111,000 for Violating Listing Rules -------------------------------------------------------------- On July 31, 2006, Bursa Malaysia Securities Berhad publicly reprimanded and imposed a fine of MYR111,000 on Lankhorst Berhad for breach of the Bursa Securities' Listing Requirements and Practice Note No. 1/2001. The fine comprises of: -- MYR86,000 for breach of Paragraph 9.23(b) of the Bursa Securities Listing Requirements; and -- MYR25,000 for breach of Paragraphs 9.04(f) and 9.04(l) of the Listing Requirements and paragraph 3.2 of PN1. Pursuant to the Listing Requirements: * Paragraph 9.23(b) states that: "a listed issuer must ensure that the annual audited accounts together with the auditors' and directors' report shall, in any case be given to Bursa Securities for public release, within a period not exceeding 4 months from the close of the financial year of the listed issuer unless the annual report is issued within a period of 4 months from the close of the financial year of the listed issuer." * Paragraph 9.04(f) says: "an event that may require immediate disclosure by the listed issuer is the commencement of or the involvement in litigation and any material development arising from it." * Paragraph 9.04(l) states that: "an event that may require immediate disclosure by the listed issuer is the occurrence of an event of default on interest and principal payments in respect of loans." Pursuant to Paragraph 3.2 of PN1, "the listed issuer shall be required to make periodic announcements on a monthly basis of the current status of the default and the steps taken by the listed issuer to address the default until it is remedied." The public reprimand and fine were imposed after taking into consideration various relevant factors including the fact that Lankhorst had previously breached listing rules. While Bursa Securities has not made a finding that any of the directors of the Company caused or permitted the breaches, the Bourse nevertheless highlights the responsibility of directors of listed companies to maintain appropriate standards of responsibility and accountability within the company and among its officers and employees including, an awareness of the importance of compliance with the Listing Requirements. About Lankhorst Berhad Headquartered in Selangor, Malaysia, Lankhorst Berhad engages in civil and geotechnical engineering services, building construction, trading and application of geosynthetic materials. Other activities include property development and investment, water and wastewater treatment, oil and gas contracting and supply, quarry operations, railway track construction, mechanical and electrical construction, soil improvement services and trading of construction supply. On April 24, 2006, Lankhorst was classified as an affected listed issuer and is required to comply with the provisions of the Bourse's Practice Note 17/2005 category or face delisting procedures. The Company's March 31, 2006, balance sheet revealed total assets of MYR105,613,000 and total liabilities of MYR203,251,000 resulting into a stockholders' deficit of MYR97,638,000. LITYAN HOLDINGS: Total Default Amount Hits Over MYR13.5 Million --------------------------------------------------------------- As of July 31, 2006, Lityan Holdings Berhad and its subsidiaries has defaulted on a total of MYR13,526,536 of its various credit facilities granted by these financial institutions: Principal & Lender Facility Interest (MYR) ------ -------- -------------- RHB Bank Berhad Overdraft Facility 273,845 of MYR225,000/- RHB Bank Berhad Overdraft Facility 543,701 of MYR450,000/- Bank Islam Malaysia LOC Facility/Murabaha 7,127,983 Berhad Labuan Working Capital Financing/ Offshore Branch Revolving Al-Bai-Bithaman- Ajil Facility of US$5 Mln (Secured) Bank Islam Malaysia Revolving Al-Bai-Bithaman- 4,378,797 Berhad Labuan Ajil Facility of US$5 Mln Offshore Branch (Secured) Ambank Berhad Overdraft Facility of 1,202,211 MYR1 million Based on its current financial position, Lityan Holdings is deemed insolvent. The Company had submitted its Proposed Restructuring Scheme to the Securities Commission, Foreign Investment Committee and Bank Negara Malaysia for approval on January 20, 2006. The Company has also commenced discussion and currently is in negotiations with the lenders on the Creditors Scheme of Arrangement. However, the Securities Commission rejected the Scheme on June 6, 2006. The Company, on July 6, 2006, submitted to the SC an application for a review of the decision. Meanwhile, Lityan is concurrently looking into other business opportunities within its core activities and also actively taking steps to dispose the Group's non-core investments and non-operating assets to address its current financial position. About Lityan Holdings Headquartered in Selangor Darul Ehsan, Malaysia, Lityan Holdings Berhad -- http://www.lityan.com.my/-- sells and provides maintenance services and rental of computer equipment, peripherals, telecommunication equipment and related services. The Company's other activities include provision of building maintenance and management services, developing and marketing of new client-server programming tools and application software, operation of public mobile data network, property investment and investment holding. The Group carries out its operations in Malaysia and the Philippines. On May 10, 2005, the Company was classified as an affected listed issuer pursuant to Practice Note 17 as issued by the Bursa Malaysia Securities Berhad. On January 16, 2006, the Company entered into a conditional Restructuring Agreement to undertake the Proposed Restructuring Scheme with the intention of restoring the Company onto stronger financial footing via an injection of new viable businesses. The total amount of debts defaulted by Lityan Holdings Berhad and its subsidiaries as of June 30, 2006, has reached MYR12,565,005. MALAYSIA AIRLINES: Sets no Deadlines for Airbus Delay Talks ----------------------------------------------------------- Malaysia Airlines is not setting an ultimatum for Airbus to respond to delays in the delivery of six A380s, AFX News reports, citing the carrier's managing director, Idris Jala. Mr. Jala told AFX that Malaysia Airlines is still in negotiations with Airbus about the six super jumbo jets that the airline ordered three years ago. Malaysia Airlines executives have in the past declined to say whether the carrier might switch to Boeing planes, AFX notes. As reported by the Troubled Company Reporter - Asia Pacific on June 28, 2006, Mr. Jala said that the delay of the A380s delivery would not affect the Company's business turnaround plan especially on its hub and spoke concept. Under the business turnaround plan, Malaysia Airlines would cut routes to Europe and develop a hub-and-spoke concept for which the A380s could be the right aircraft to carry more passengers at one go. The A380 can seat 555 passengers while the biggest Malaysia Airline aircraft now can seat only 386. Malaysia Airlines was hoping that the A380s will help lower operating cost and thus boost its revenues. 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. METROPLEX BERHAD: Court Adjourns Wind-Up Hearing to Sept. 7 ----------------------------------------------------------- On July 27, 2006, the Kuala Lumpur High Court heard matters in respect of the wind-up petition filed by Morgan Stanley Emerging Markets Incorporated against Metroplex Berhad. The Court adjourned to September 7, 2006, the hearing of the issue of costs of the provisional liquidator, which the Court had set aside on June 27, 2006. The Troubled Company Reporter - Asia Pacific reported on July 4, 2006, that the appointment of Kuan Mei Ling of RSM Nelson Wheeler Teo Corporate Advisory Services Sdn Bhd as provisional liquidator for Metroplex was discharged and the liquidator's remuneration deferred. Meanwhile, Metroplex was directed to update the Court on the progress of the appointment of a third independent expert for determination of foreign issues in relation to Metroplex's application to strike out Morgan Stanley's wind-up petition on September 7, 2006. The Troubled Company Reporter - Asia Pacific reported that on June 2, 2006, the Kuala Lumpur High Court heard Metroplex's application to strike out a wind-up petition filed by Morgan Stanley. Subsequently, the High Court ruled in favor of Metroplex, and did not issue a wind-up order against the Company. On June 15, 2006, the Kuala Lumpur High Court dismissed with costs, Morgan Stanley's application for stay of execution against a court order allowing Metroplex's validation order application. The TCR-AP reported on July 4, 2006, that Morgan Stanley Emerging Markets Inc., advised the Kuala Lumpur High Court of its intention to withdraw an injunction application against Metroplex Berhad and subsidiary Metroplex Holdings Sdn Bhd. Morgan Stanley told the Court that it does not object to the sale of the Putra Place Property to Lembaga Kumpulan Wang Simpanan Pekerja. At a hearing on June 27, 2006, the Court allowed Metroplex Holdings Berhad and Lembaga Kumpulan Wang Simpanan Pekerja to complete their Sale and Purchase Agreement for the disposal of the Putra Place Property after the Court struck off Morgan Stanley's application to restrain Metroplex Group from selling the Property. About Metroplex Berhad Headquartered in Kuala Lumpur, Malaysia, Metroplex Berhad's activities are hotel and casino operations. Other activities include property investment, property development, provision of administrative services, general and building construction, leasing and financing, trading of building materials and operation of hotel management training school. Operations are carried out in Malaysia, Hong Kong, and the Philippines. On April 28, 2005, Morgan Stanley Emerging Markets Inc., had filed a winding-up petition against the Company with the Kuala Lumpur High Court. Morgan Stanley also filed for a summons to appoint a provisional liquidator for the wind up. Until and unless a provisional liquidator is appointed pursuant to the application to the Court by the Petitioner to appoint provisional liquidator for Metroplex, the winding-up petition will not have significant impact on the Group's operations as Metroplex is currently working out a debt-restructuring scheme. In the event the wind-up petition succeeds, the Company will be put into liquidation. Metroplex Berhad's April 30, 2006, balance sheet revealed total liabilities of MYR1,417,778,000 exceeding total assets of MYR1,214,518,000, resulting into a shareholders' deficit of MYR203,260,000. SETEGAP BERHAD: Securities Commission Junks Revamp Proposals ------------------------------------------------------------ On July 27, 2006, the Securities Commission rejected Setegap Berhad's application in relation to its restructuring exercise, as the SC has determined that the proposals do not comply with its Policies and Guidelines on Issue/Offer of Securities. The Company's restructuring 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. Setegap's board of directors will deliberate on its next course of action. 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 affected by the Asian financial crisis in 1997/98. 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. SETEGAP BERHAD: Bourse Orders Payment of MYR32,000-Fine ------------------------------------------------------- On July 31, 2006, Bursa Malaysia Securities Berhad publicly reprimanded and imposed a MYR32,000-fine on Setegap Berhad for breach of Listing Requirements. The Company violated listing rules by failing to submit the annual audited accounts for the financial year ended December 31, 2005, by April 30, 2006. The Company only submitted the AAA 2005 to Bursa Securities for public release on May 24, 2006. The public reprimand and fine are imposed after taking into consideration all relevant factors, including the fact that Setegap has previously breached the Bursa Securities Listing Requirements. On September 17, 2004, Setegap was publicly reprimanded and fined MYR5,000 for failing to submit the annual audited accounts for the year December 31, 2003. The AAA 2003 was only submitted to Bursa Securities for public release on May 11, 2004. On June 24, 2005, Setegap was publicly reprimanded and fined MYR36,000 for failing to submit the annual audited accounts for the year ended December 31, 2004. The AAA 2004 was only submitted to Bursa Securities for public release on June 6, 2005. Bursa Securities cautions Setegap and its board of directors of their responsibility to maintain appropriate standards of corporate responsibility and accountability to achieve greater disclosure and transparency to its shareholders and the investing public. 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 affected by the Asian financial crisis in 1997/98. 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. SHOWKAT INDUSTRIES: House Buyers to Get Refund After 15 Years ------------------------------------------------------------- Some 34 buyers of a housing project abandoned by developer Showkat Industries & Realty Sdn Bhd will finally get their money back by September this year, New Straits Times reports. On July 20, 2006, senior federal counsel Jamhirah Ali ordered the Penang Insolvency Department to return within two months the MYR1.24 million, which Showkat deposited with the Official Assignee in 2002, to the affected house buyers, The Straits Times reveals. Sun2Surf News recounts that in 1991, the High Court ordered the wind-up of Showkat and subsequently appointed the Penang Insolvency Department as the receiver to refund the buyers. According to Sun2Surf, 61 individuals purchased houses in three projects in Gertak Sanggul developed by Showkat between 1979 and 1980. But after the buyers paid more than MYR1 million for the two-storey houses, Showkat abandoned the projects after only 33% of the work was completed. Thirty-four of the 61 buyers filed originating summons seeking the release of their money by the Insolvency Department only on February 2, 2006, The Star Online relates. They also sought a court order forcing the Department to pay them interest and other costs, which Mr. Jamhirah rejected since there were no provisions for the Court to demand payment of the costs from the Insolvency Department. Meanwhile, Judicial Commissioner John Louis O'Hara will hear the case on September 25, 2006, to ensure that payments have been made. Each house buyer is expected to receive between MYR20,000 and MYR30,000, The Straits Times says. TENCO BHD: Unaudited & Audited Results Show MYR1-Mln Difference --------------------------------------------------------------- Tenco Berhad's audited financial report for the fourth quarter ended March 31, 2006, revealed a more than 10% deviation from the unaudited report released on May 30, 2006. The Company reported an unaudited Group loss after taxation and minority interest of MYR8,102 for the quarter under review, whereas the audited Group loss after taxation is MYR1,185,647. The deviation of MYR1,193,479 between the unaudited and audited results was due to audit adjustments made by the Company: Accrual for restructured term loan interest MYR1,201,855 Taxation MYR 84,294 Reversal of deferred tax liabilities (MYR 92,400) ============= Total MYR1,193,749 About Tenco Berhad Headquartered in Selangor, Malaysia, Tenco Berhad's principal activities are manufacturing and selling of polymer, chemicals, adhesive, decorative coatings and related products, building materials, equipment and consumer products. Other activities include investment holding and provision of management services. The Group operates in Malaysia, Singapore and Canada. Tenco is classified as a Practice Note 17 company because its current shareholders' equity on a consolidated basis is less than 25% of its issued and paid up capital, and it defaulted on various loan facilities and is unable to provide a solvency declaration. Tenco is required to submit its financial regularization plan to relevant authorities not later than January 8, 2007. ===================== P H I L I P P I N E S ===================== METRO CEBU WATER DISTRICT: Garnished PHP19M May Drain Resources --------------------------------------------------------------- Metropolitan Cebu Water District officials said that their funds garnished by the court now amount to PHP19 million and could reach a point that even the utility firm's operational funds could be affected, Sun.Star Cebu relates. The garnished funds held in Land Bank of the Philippines amount to PHP14 million, while the remaining PHP5 million is in the hands of seven other collection agent-banks. Affecting Cash Flow According to the report, MCWD General Manager Armando Paredes has aired his concern that more MCWD funds will be tied up and it could reach a point when no more money can be used for day- to-day operations and payment of salaries and allowances may be stopped. Mr. Paredes adds that they have set aside requests for acquisition of supplies and have shelved some projects. Sunstar says that MCWD can still access its funds at Land Bank in excess of the garnished PHP14 million, but the water district's money in the seven collecting banks are all untouchable because the garnishment did not specify an amount. Mactan Rock Dispute Garnishment is a court order to a company or entity to withhold all or part of its money and send the garnished sum to the person or organization that won a lawsuit over the company, Sunstar explains. The newspaper recounts that MCWD's garnished funds arose from the writ of execution on the order of Construction Industry Arbitration Commission, which directed MCWD to pay Mactan Rock Industries, Inc., foreign exchange recovery costs, which reached PHP18 million. Mactan Rock had filed a complaint before the CIAC after MCWD's first attempt to collect penalties for delivery shortage from 1999 to 2001, which amounted to PHP2.8 million then. Mactan Rock has a 10-year water supply contract with MCWD, which will expire in 2008. It is required to supply MCWD 5,000 cubic meters per day in the fourth to 10th year. The supply contract stipulates that a penalty of PHP9.28 per cu.m. will be imposed on Mactan Rock in case of short delivery. Mactan Rock's supply was short since its first delivery in 1999 and, as of June 21, 2006, the total penalty ballooned to more than PHP14.40 million. After MCWD demanded the payment of short delivery penalties in June 2006, Mactan Rock President Antonio Tompar warned that he would shut down the firm's operations, which will result in loss of water in Cordova town and shortage in Lapu-Lapu City. The shutdown was averted after Mr. Paredes offered a compromise deal to Mactan Rock. Mr. Tompar, however, has also filed a complaint with the MCWD board against management practices in the utility firm. MCWD had filed a motion to dismiss the case, saying that CIAC has no jurisdiction over the dispute. However, CIAC ruled in Mactan Rock's favor, prompting MCWD to go to the Court of Appeals, which sustained CIAC's decision. Mr. Tompar, according to media reports, presented another aspect to the dispute, saying that that he sees indications that MCWD "is trying" to ease Mactan Rock out of it supply contract, Sunstar notes. Mr. Tompar further alleged that MCWD has plans to put up and operate its own desalination project and that certain MCWD officials had approached the owner of the property in Suba Panas in Lapu-Lapu City where Mactan Rock's desalination facility is located. According to the newspaper, MCWD general manager Armando Paredes has denied the allegations. About MCWD In 1974, the Metropolitan Cebu Water District took over in distributing potable water to the whole metropolis after the Osmena Waterworks System suffered financial losses. MCWD supplies potable water to the cities of Cebu, Mandaue, Lapu-lapu and Talisay and the municipalities of Consolacion, Lilo-an, Compostela and Cordova from their resevoirs in Talamban and Pardo in Cebu City, Casili in Consolacion and Mananga in Talisay City. METRO CEBU WATER DISTRICT: Board to Probe Alleged Irregularities ---------------------------------------------------------------- Metropolitan Cebu Water District's board of directors is set to investigate complaints of irregularities allegedly committed by the utility firm's top-level management group, Sun.Star Cebu reports. MCWD board chairman Juan Saul Montecillo said that in a special board meeting, it was agreed that the board, as an investigating body, will hold hearings starting next week and invite complainants, particularly engineer Antonio Tompar, president and chief executive officer of Mactan Rock Industries Inc. According to the newspaper, Mr. Tompar, among other allegations, said that MCWD clients are paying higher water rates because the MCWD management awarded the water supply contract to a favored firm with a selling price of PHP19 per cubic meter. Mactan Rock's offer was PHP13.85 per cubic meter. Mr. Tompar said that Mactan Rock did not anymore participate in the bidding in the supply of water from Talisay City because of MCWD management's insistence of the local government unit permit requirement. Moreover, Mr. Tompar accused MCWD top level managers of trying to terminate Mactan Rock's water supply contract this year because MCWD is planning to engage in the operations itself. Mactan Rock has a 10-year water supply contract with MCWD, which will expire in 2008. Lawyer Rico Tautho, a member of the MCWD board, said that although they have no disciplinary authority over the management, they can determine the veracity of the complaints and, if there is strong evidence, they can act as complainants against the managers in filing charges with the Office of the Ombudsman-Visayas. Mr. Tautho said that they welcome other complainants to present their evidence against the MCWD managers during the hearings. Mr. Tompar, for his part, said that he will cooperate with the investigation to show that what he said in his letter is true. About MCWD In 1974, the Metropolitan Cebu Water District took over in distributing potable water to the whole metropolis after the Osmena Waterworks System suffered financial losses. MCWD supplies potable water to the cities of Cebu, Mandaue, Lapu-lapu and Talisay and the municipalities of Consolacion, Lilo-an, Compostela and Cordova from their resevoirs in Talamban and Pardo in Cebu City, Casili in Consolacion and Mananga in Talisay City. MCWD is engaged in a dispute with supplier Mactan Rocks Industries Inc., which ended up in a court order directing the utility firm to garnish PHP19 million in banks. MCWD, according to a report by Sun.Star Cebu on August 2, 2006, admitted that if more MCWD funds will be tied up, it could reach a point when no more money can be used for its day-to-day operations and payment of salaries and allowances may be stopped. PHILIPPINE LONG DISTANCE: To Sell Stake in Cable TV Firm -------------------------------------------------------- Philippine Long Distance Telephone Co. plans to sell its minority stake in cable television firm Central CATV Inc., and is simply waiting for the right price, the Philippine Star says, citing PLDT Chairman Manuel Pangilinan. According to unnamed sources, the Company seeks to sell of its cable TV stake before entering in a direct-to-home satellite TV business with United States DTH firm Echostar Communications Corp. and local DTH licensee GV Broadcasting Systems Inc. Official sources added that PLDT's stake in Central CATV, pegged at 33.5%, was diluted to 7% on a debt-to-equity swap by ABS-CBN Broadcasting Corp. to Sky Cable, but that the conversion is delayed since the Company refuses to sign the documents. The Star states that Mr. Pangilinan was unaware that PLDT's stake in Central CATV was diluted, but if it were, it would not be lower than 10%. The Company had previously offered to swap its stake in Central CATV with the Lopez Group for ownership of Group-owned Bayan Telecommunications Inc., but the Lopezes rejected the offer. Mr. Pangilinan added that he had yet to receive an offer from the Lopez Group for the Company's stake in Central CATV. PLDT and GV Broadcasting, which it plans to acquire, will form a 60-40 joint venture with Echostar to put up a direct broadcast service worth PHP4.39 billion by December. About PLDT Based in Makati City, Philippines, Philippine Long Distance Telephone Co. -- http://www.pldt.com.ph/-- is the leading national telecommunications service provider in the Philippines. Through three principal business groups -- wireless, fixed line, and information and communications technology -- the company offers a wide range of telecommunications services to over 22 million subscribers in the Philippines across the nation's most extensive fiber optic backbone and fixed line, cellular and satellite networks. * * * Moody's Investors Service placed a Ba1 local currency corporate family rating on PLDT. Moody's also affirmed the company's Ba2 foreign currency senior unsecured ratings, with a negative outlook. Standard & Poor's placed the company's long-term foreign issuer credit rating at BB+. Fitch Ratings gave PLDT's long-term foreign currency issuer default and senior unsecured debt both a BB rating. SECURITY BANK: First Half Net Income Rises 51% to PHP1 Billion -------------------------------------------------------------- Security Bank Corp. posted a net income of PHP1.01 billion for the first half of 2006, 50.7% more than the PHP670-million earnings for the same period last year and is almost equal the net earnings achievement for the full year of 2005, which stood at PHP1.16 billion. Earnings per share increased from PHP2.03 to PHP3.07 per share this year. The Bank's average return on equity has shown considerable improvement over the years, increasing from the single digit levels reflected after the Asian financial crisis to the current annualized return on average equity of 19.5%, a 12.6% rise in the comparative period last year. The robust earnings performance is driven by a continued growth in revenues, increasing 12.5% over the same period last year to PHP3.08 billion from PHP2.74 billion. This accomplishment was achieved amidst a decreasing interest rate environment for the better part of the first semester that led to some pressure on net margins but provided opportunities for recognizing trading gains on its securities portfolio. Consequently, non-interest income increased point to point by PHP387.3 million or 45.4% spurred on by a PHP358.8-million or 86.4% increase in trading gains and a PHP48.9-million or 38.3% increase in other income. The Bank is on track with its commitment to address asset quality issues, having fully complied with the IAS/PAS requirements at year-end 2005. As a result, provisions for credit losses registered a significant decrease over the same period last year to PHP282.9 million, down by PHP224.4 million or 44.2%. In fact, for the first half of the year, Security Bank's NPL ratio stood at 4.2% with NPL cover at 142% versus the 5.0% and 76% respectively for the same period last year. The Bank's total resources remained relatively flat to the 2005 year-end level of PHP105 billion. Security Bank likewise continues to leverage on the efficiency of its distribution network further increasing its deposit base to PHP73.9 billion from the PHP66.2 billion recorded in the same period last year. This PHP7.7-billion (11.7%) increase resulted primarily from a growth in lower cost savings and current accounts. The Bank continues to exhibit a fundamentally sound capital base with its capital adequacy ratio at 24.2% versus year-end reported levels of 14.4%, which puts it in a healthy position to leverage on its balance sheet and further build its loan portfolio as opportunities arise in the market place. About Security Bank Security Bank Corporation -- http://www.securitybank.com.ph/-- offers a wide variety of financial products and services. The Bank's services include peso, dollar and third currency deposits, domestic and international fund transfers, deposit pick-up and payroll services, and ancillary services. Security Bank also provides working capital financing, term arrangements and loan syndication services. Fitch Ratings gave Security Bank a 'BB' Long-Term Foreign Currency Issuer Default Rating, a 'BB' Long-Term Local Currency Issuer Default Rating, a 'D' Individual Rating and a '4' Support Rating. ================= S I N G A P O R E ================= ACCURES TECHNOLOGIES: Creditors' Proofs of Debt Due on August 4 --------------------------------------------------------------- The creditors of Accures Technologies Private Limited are required to prove their debts by August 4, 2006, to share in the Company's dividend distribution. The Assistant Official Receiver can be reached at: Chan Wang Ho Assistant Official Receiver The URA Centre (EastWing) 45 Maxwell Road #06-11 Singapore 069118 ANTEVORTE SHIPPING: Creditors Must Submit Claims by August 28 ------------------------------------------------------------- Liquidator Mikishiro Ichimura will be receiving proofs of claim from the creditors of Antevorte Shipping Private Limited until August 28, 2006. Failure by the creditors to submit claims by the due date will exclude them from sharing in any distribution the Company will make. The Liquidator can be reached at: Mikishiro Ichimura c/o 6 Shenton Way #32-00 DBS Building Tower Two Singapore 068809 DAKA DESIGNS: Annual General Meeting Slated for October 8 --------------------------------------------------------- The Singapore Stock Exchange on July 31, 2006, approved Daka Designs Limited's application to hold its annual general meeting on October 8, 2006. As reported by the Troubled Company Reporter - Asia Pacific, on July 25, 2006, the Exchange granted the Company's request to release its financial results by August 31, 2006, at the Company's AGM. The additional time granted by the Exchange is subject to the Company: -- holding its AGM by October 8, 2006, at the latest; -- receiving approval from relevant authority of its country of incorporation for the extension of time to hold its AGM by October 8, 2006, if applicable. About Daka Designs Limited Daka Designs Limited is principally involved in designing, developing and marketing of innovative products for the consumer market. The Group operates in Hong Kong, the United States of America, Macau, and the United Kingdom. The Singapore Stock Exchange suspended trading in the shares of Daka Designs after Auditor KPMG observed certain irregularities in the operations and accounting records of the Company. The concerns and irregularities raised by KPMG in its report may amount to breaches under the Securities and Futures Act and other laws in Singapore. Consequently, the SGX has informed the Monetary Authority of Singapore and lodged a report with the Commercial Affairs Department to initiate investigations into the matter. LIANG HUAT: Posts Monthly Update on Financial Position ------------------------------------------------------ Liang Huat Aluminum Limited has updates on its financial position, debt restructuring plan and negotiations with its creditors as of July 31, 2006. As reported by the Troubled Company Reporter - Asia Pacific on June 2, 2006 the Company has requested Ho Lee Group Pte Limited to invest a sum of SGD3,000,000 as part of its intention to apply further modifications to the amended restructuring scheme. On 13 April 2006, the Company announced that it had, on the same day, entered into the Investment Agreement with Ho Lee Group Pte Ltd for a subscription of new shares in the Company representing a controlling stake by Ho Lee for a cash consideration of SGD3,000,000 Ho Lee is incorporated in Singapore on February 2, 1996, and has an issued share capital of SGD12,727,443 consisting of 12,727,443 shares, and whose principal activities involve of investment holding. Upon the completion of Investment Agreement, Ho Lee will own 70% of all issued ordinary shares of the Company after taking into account the number of shares that will be issued under the Modified Schemes and the Investment Agreement. Under the Investment Agreement, the cash consideration in respect of the Investment is SGD3,000,000 and is to be satisfied in full by the allotment and issuance of 70% of all issued ordinary shares of the Company on completion credited as fully paid up. The completion of the Investment shall take place five business days after the fulfillment of the conditions before, in the Investment Agreement or when Ho Lee and the Company will agree. The Investment will be subject to the Company and the Purchaser obtaining the necessary requisite regulatory and other approvals, consents and waivers, which are set out in their entirety in the Investment Agreement, which include: -- the Modified Schemes having been duly approved by the relevant Scheme Creditors and approved and sanctioned by the High Court and the respective Orders of Court relating to the approval of the respective Modified Scheme be lodged with the relevant authorities; -- the Company having obtained approval from the High Court to sanction the capital reduction of the Company; -- all necessary approvals by the Shareholders of the respective Modified Schemes, capital reduction, capital amalgamation, and the issuance of shares to the Investor; and -- the Investor not being obliged to make a takeover offer to the remaining shareholders of the Company in respect of all the remaining shares not already owned by the Investor or his concert party or parties, and if applicable, the grant of waiver by the Securities Industry Council from the requirements to make a general takeover offer to the remaining shareholders of the Company. In the event that any of the conditions precedent in the Investment Agreement cannot be fulfilled and are not waived by the Investor or if the completion does not occur for any reason by December 31, 2006, or such other date as the Investor and the Company may mutually agree other than by reason of a breach by the Investor of its obligation to complete, Ho Lee will be entitled to such number of conversion shares constituting 29.0% of all the allotted and issued shares of the Company. On June 6, 2006, the Company announced that Ho Lee and the parties acting in concert with it have obtained a whitewash waiver from the Securities Industry Council on the same day. Ho Lee and the parties acting in concert with it will not be required to make a mandatory general offer for all the remaining shares in the Company which they do not already own, following the allotment and issuance of new Shares by the Company to the Investor under the Investment Agreement subject to the conditions set out in the same announcement. On July 18, 2006, the Company announced the appointment of MS Corporate Finance Pte Ltd as the Independent Financial Advisor to advise the Independent Shareholders on the proposed whitewash resolutions. Upon the granting of the Whitewash Waiver by the SIC, one of the conditions as set out in the Investment Agreement has been fulfilled. The Company is in the process of fulfilling the remaining conditions precedent as set out in the Investment Agreement in order for Completion to take place. Accordingly, shareholders are advised to exercise caution in dealing with the shares of the Company. About Liang Huat Aluminium Liang Huat Aluminium -- http://www.lianghuatgroup.com.sg/-- is a vertically integrated, professionally run group of companies focusing on producing high quality aluminum products and processed glass for both the industrial and construction industries. It also supplies and installs aluminum and processed glass for major commercial and residential projects mainly in Singapore. Liang Huat was the subject of a wind-up petition filed by Lim Ah Siong trading as Lian Siong Aluminium & Trading on August 26, 2004. Presently, the Company is undergoing a financial restructuring exercise. It is also working a Scheme of Arrangement with its major creditor banks. REFCO INC: Chapter 11 Trustee Inks Settlement Pact with Rogers -------------------------------------------------------------- An agreement was reached between Marc S. Kirschner, as Chapter 11 trustee for Refco Capital Markets, Ltd., and representatives for Rogers International Raw Materials Fund, L.P. and Rogers Raw Materials Fund, L.P. that will bring the claims of the two funds into the settlement agreement reported by Mr. Kirschner on June 30, 2006. On Oct. 24, 2005, one week after the Refco chapter 11 filings, the Rogers Funds filed a complaint in the bankruptcy court seeking a constructive trust over $364 million in cash and securities that the funds claimed were wrongfully diverted from Refco, LLC, a once active commodity broker registered with the CFTC, to RCM, an unregulated Bermuda unit of Refco, Inc. The settlement, which involves RCM customers who hold securities accounts and foreign-exchange accounts, will provide that the Rogers Funds shall receive the same treatment as the claims of securities customers at RCM. Under the settlement, Mr. Kirschner has said that securities customers would initially recover 70% of the value of their claims and foreign-exchange customers would initially recover 26% of the value of their claims. Future recoveries would depend on Mr. Kirschner's success at pursuing claims against other Refco entities and third parties. Importantly for the Rogers funds, the settlement of the funds' claims against RCM would be without prejudice to the right of the funds to assert the full amount of their claims against any other party, including Refco, LLC, which is in a Chapter 7 liquidation proceeding. The settlement remains subject to bankruptcy court approval at a hearing scheduled for Aug. 16, 2006. "The settlement with RCM is in the best interests of the Rogers funds and their investors," said Walter T. Price, C.E.O. of Beeland Management Company, L.L.C., the operator of the two funds. "First, it should keep RCM in a chapter 11 proceeding under the expert guidance of Marc Kirschner, who we fully support as Chapter 11 trustee. Second, it provides for a return of at least 70%, possibly more, on our claims at RCM. Finally, it fully preserves our claims against Refco, LLC, which wrongfully diverted the funds' cash and securities on the eve of the Refco bankruptcy filing." With respect to the Rogers funds' claims against Refco, LLC, Mr. Price stated that the Rogers funds are willing to sit down with Albert Togut, the chapter 7 trustee for Refco, LLC, to work out a resolution of those claims, but are prepared to bring their claims to trial if no deal can be reached. On June 30, 2006, Mr. Kirschner announced that he had reached the settlement agreement between RCM securities and foreign- exchange customers. By the terms of the settlement agreement, if the Rogers funds did not agree to join the settlement within 14 days, Mr. Kirschner would have been required to promptly file papers with the bankruptcy court asking that the court convert the RCM chapter 11 case to a chapter 7 stockbroker liquidation case. Mr. Kirschner would still have been able to seek bankruptcy court approval of the settlement agreement, though there are doubts that such a settlement could have been approved in a stockbroker liquidation proceeding. About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal United States and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for Chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. Refco LLC, an affiliate, filed for chapter 7 protection on Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a regulated commodity futures company that has businesses in the United States, London, Asia and Canada. Refco, LLC, filed for bankruptcy protection in order to consummate the sale of substantially all of its assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc. Albert Togut, the Chapter 7 trustee, is represented by Togut, Segal & Segal LLP. On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital Markets Ltd.'s Chapter 11 trustee. Mr. Kirschner is represented by Bingham McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda. Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed for Chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through 06-11262). REFCO INC: Official Committee Wants Seat in Fee Panel ----------------------------------------------------- The Official Committee of Unsecured Creditors appointed in Refco, Inc., and its debtor-affiliates Chapter 11 cases, supports the fee containment goals the Fee Protocol seeks to promote. However, the Committee cannot support approval of the Fee Protocol in its current form for three reasons: (i) It places disproportionate voting power with respect to the fee review process in the hands of fee earners, not creditors; (ii) The Committee, and not the Fee Protocol, should decide which of the Committee's members should serve on the Fee Committee; and (iii) The Debtors' contentions notwithstanding, the Fee Committee should have standing to appear and object at fee application hearings. The Committee suggests that the Debtors amend the Fee Protocol by providing that: 1. at least two of the five voting seats on the Fee Committee -- and thus appropriate voting power with respect to important Fee Committee decisions -- will be granted to the Creditors Committee members; 2. the Creditors Committee alone will decide which of its members occupy seats on the Fee Committee; and 3. the Fee Committee will have the power to speak with the single voice, greater efficiency, and enhanced authority that standing to appear at fee hearings confers. The Creditors Committee can only support approval of the Fee Protocol to the extent it is amended to address the concerns raised, Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, tells the Honorable Robert Drain of the United States Bankruptcy Court for the Southern District of New York. VR Global Partners, L.P.; Paton Holdings Ltd.; VR Capital Group Ltd.; and VR Argentina Recovery Fund, Ltd.; and Premier Bank International N.V. support the Creditors Committee's arguments. VR Global is co-chairperson of the Creditors Committee. Premier Bank is a Committee member. About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for Chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its Chapter 11 cases. Refco LLC, an affiliate, filed for chapter 7 protection on Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a regulated commodity futures company that has businesses in the United States, London, Asia and Canada. Refco, LLC, filed for bankruptcy protection in order to consummate the sale of substantially all of its assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc. Albert Togut, the Chapter 7 trustee, is represented by Togut, Segal & Segal LLP. On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital Markets Ltd.'s Chapter 11 trustee. Mr. Kirschner is represented by Bingham McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda. Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through 06-11262). REFCO: Meridian IT Wants Decision on Smartnet Maintenance Pact -------------------------------------------------------------- Meridian IT Solutions asks the United States Bankruptcy Court for the Southern District of New York to compel Refco Inc. and its debtor-affiliates to assume or reject the Smartnet Maintenance Contract, pursuant to Section 365(d)(2) of the Bankruptcy Code. In the alternative, pursuant to Section 362(d), Meridian wants the automatic stay lifted so it may terminate the agreement and instruct its vendor to cease providing services to the Debtors. Meridian also asks the Court to require the Debtors to provide adequate protection of its property interests in the contract by requiring payments pursuant to Sections 363(e) and 361. Meridian IT and the Debtors are parties to a Smartnet Maintenance Contract -- a one-year, prepaid contract. Meridian, through its third-party vendor, performs ongoing repair and maintenance for various of the Debtors' IT equipment. The parties renewed the Maintenance Contract on Sept. 16, 2005. The Debtors' purchase order called for a total cost of US$328,325. In reliance upon the purchase order, Meridian pre- paid its vendor the entire sum of its contract, Michael T. Conway, Esq., at Lazare Potter Giacovas & Kranjac LLP, in New York, relates. When Refco filed for bankruptcy, Meridian received from the Debtors a check for US$304,447, representing payment in full of the revised contract price. However, the Debtors stopped payment on the check the next day. As a consequence, Mr. Conway says, Meridian's vendor has been paid in full for the one-year maintenance agreement and has been performing critical maintenance services for the Debtors. However, Meridian has never been paid for those services. Mr. Conway notes that the Debtors have made no current payments to Meridian since the Petition Date, despite Meridian's many requests. The Debtors have yet to assume or reject the Maintenance Contract. They have taken no steps to do so. Mr. Conway also argues that Meridian is entitled to an administrative claim under Section 503(b)(1)(A) in the full contractual amount for all post-petition services provided pursuant to the contract. About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for Chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its Chapter 11 cases. Refco LLC, an affiliate, filed for Chapter 7 protection on Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a regulated commodity futures company that has businesses in the United States, London, Asia and Canada. Refco, LLC, filed for bankruptcy protection in order to consummate the sale of substantially all of its assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc. Albert Togut, the Chapter 7 trustee, is represented by Togut, Segal & Segal LLP. On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner is represented by Bingham McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda. Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through 06-11262). =============== T H A I L A N D =============== KRUNG THAI: Sees Tough Business in 2007 Due to Political Crisis --------------------------------------------------------------- Krung Thai Bank says new loans and a bigger margin are expected to lift profits this year, but is expecting a tough 2007, when the economic impact of Thailand's political crisis will be felt more extensively, The Bangkok Post reports. Apisak Tantivorawong, president of KTB, told The Post that the bank's cost controls should help them maintain its 4% margin this year, but its 7% loan target is tough to achieve due to weak demand. "Our economy has long slowed down with few investments and the impact will be felt fully next year, it will be heavier if we don't have a smooth election," Mr. Apisak said. Mr. Apisak relates that the World Cup and the celebrations of the 60th anniversary of the King's accession to the throne this year helped boost the economy. "So this year our net profit will definitely be better than last year. We still have new loans and higher margins," he adds. Mr. Apisak gave no specific earnings forecasts, but the bank is expected to report a 10% rise in net profit this year to THB14.3 billion, according to 16 analysts polled by Reuters Estimates. Profit in 2007 is forecast at THB15.2 billion, The Post says. However, despite a good 2006, Mr. Apisak expects tough time ahead. The Post notes that nearly zero investments and sagging consumer confidence have affected demand for loans, but KTB still sees demand from the energy sector. The 1% growth in the demand for loans was partly due to debt repayments. With US$43 billion of state infrastructure projects delayed by the political crisis, analysts forecast 4% loan growth for KTB, which is 56%-owned by the government, The Post said. * * * Krung Thai Bank Public Company Limited -- http://www.ktb.co.th/ -- began its operation on March 14, 1966, through the merger of business between the Agricultural Bank Limited and the Provincial Bank Limited with the Ministry of Finance as its major shareholder. The Bank provides financial assistance to large and small business, it also renders financial assistance to other state enterprises, both business oriented and public utility types. Currently the bank is operating 511 domestic and 12 foreign branches and representative offices. * * * On May 30, 2006, The Troubled Company Reporter - Asia Pacific reported that Moody's Investors Service has upgraded KTB's bank financial strength rating to D- from E+. Moody's previously placed it at E+ on March 31, 2006. Meanwhile Fitch Ratings, on July 10, 2006, upgraded the individual rating of Krung Thai Bank Public Company Limited to C/D from D. Fitch assigned the previous rating on November last year. TMB BANK: Vayupak Turns Down TMB's Offer --------------------------------------- The Vayupak Fund declined a proposal by the Finance Ministry to buy up to one billion new shares in TMB Bank, The Bangkok Post reports. Bangkok Post confirmed from Chaiyos Sasomsap -- a caretaker deputy finance minister -- that the Vayupak Fund had formally declined to purchase the TMB shares. As reported by the Troubled Company Reporter - Asia Pacific on July 28, 2006, Vayupak was tapped to take up 3.22 billion new shares offered by TMB on behalf of the Finance Ministry. Authorities are considering having the state-controlled Vayupak Fund subscribe to the TMB share issue to help the Government maintain its stake in TMB Bank while minimizing the financial burden on the state budget, the TCR-AP said. Instead, a source close to the ministry said that it is now considering a plan to sell off its shares in the listed media broadcasting giant MCOT Plc to the Government Savings Bank to raise funds to subscribe to the TMB offering. The source told The Post that the ministry has the right to buy back the MCOT shares from the Government Savings Bank within three years. The Finance Ministry currently holds 20.88% of MCOT, The Post said. Headquartered in Bangkok, Thailand, TMB Bank Public Co. Ltd -- http://www.tmbbank.com/-- is a commercial bank that renders financial services to all groups of customers. TMB Bank had total assets of about THB717 billion as at December 31, 2005. * * * Fitch Ratings gave TMB Bank a 'BB+' Long-Term Foreign Currency Issuer Default Rating; 'B' Short-Term Foreign Currency Rating; 'BB' Foreign Currency Subordinated Debt Rating; 'D' Individual Rating; and Support rating at 3. Moody's Investor Service gave TMB Bank a 'Ba1' Junior Subordinated Debt Rating and an 'E+' Bank Financial Strength Rating. Standard & Poor's Ratings Services gave TMB Bank's US$200- million hybrid Tier 1 securities a 'BB' rating. ********* 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 ***