/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/060821.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 Monday, August 21, 2006, Vol. 9, No. 165 Headlines A U S T R A L I A & N E W Z E A L A N D ABN EXCAVATIONS: Court Orders Wind Up ABPACK FISH: Members Pass Resolution to Wind Up Firm ADMIRAL PLANNING: Appoints Andrew Fielding as Liquidator AIR NEW ZEALAND: Plans to Outsource Finance Jobs, SFWU Says AN YING INTERNATIONAL: Court to Hear Liquidation Bid on Aug. 24 ARAB BANK AUSTRALIA: Fitch Affirms Individual Rating at C/D AUSTRALIAN HYPERBARIC: Appoints Receiver and Manager BPJP NOMINEES: Placed Under Members' Voluntary Liquidation BRADLEY HOLDINGS: Creditors Appoint Travaglini as Liquidator BROUWER PTY: Members' Final Meeting Slated for September 11 CJR AND ASSOCIATES: Enters Wind-Up Proceedings COX COMPANY: Members to Receive Wind-Up Report on September 6 DOWNTOWN DIRECTIONS: Creditors and Members to Meet on Sept. 12 ELGIN PARK: Members Opt to Shut Down Business GLOBAL ENGINEERED: Talks on Customers' Rescue Package Fail HERITAGE FINANCE: Court Hears CIR's Liquidation Bid Today JNIEDI ENTERPRISES: Receivers and Managers Cease to Act KARAGOLD PTY: Undergoes Voluntary Wind-Up MACCOE LOGISTICS: Creditors' Proofs of Claim Due on August 29 MANLY APARTMENT: Courts Issues Wind-Up Order MERRINDALE AUTOMOTIVE: Liquidator Cant to Present Wind-Up Report MSC GUARDS: Names Oren Zohar and Brian McMaster as Liquidators MULTIPLEX GROUP: Worries on Wembley Losses if it Loses in Court NYLETTLE PTY: Receivers and Managers Step Aside PETER HACKWORTHY: To Declare Dividend on September 8 QUEENSTOWN TAHITI: Faces Liquidation Proceedings RETREAT FRANCHISING: Appoints Vartelas as Receiver and Manager ROLLE ASSET: Creditors Resolve to Wind Up Operations RONALD EDWARDS: Members Decide to Close Operations ROTHSCHILD AUSTRALIA: Members Pass Resolution to Shut Down Firm SANDOW TRANSPORT: Members to Hear Liquidator's Report on Sept. 8 SKYSEARCH PTY: Enters Liquidation Proceedings TACTICAL EDGE: Creditors Appoint Official Liquidator WARE NOMINEES: Enters Wind-Up Proceedings WESTERN BAY: Receivers to Pay 10c in the Dollar by End-September WESTERN BAY: Finance Now Still Interested to Buy Part of Assets YTM PROPRIETARY: Receivers and Managers Cease to Act C H I N A & H O N G K O N G ACTIVE GAINER: to Hear Wind-Up Bid on August 30 BENQ CORP: Taiwan Ratings Pares LT Credit Rating to twBB+ CHINA MERCHANTS: Gets Nod to Launch US$2-Billion IPO CHINA SOUTHERN: Posts CNY825-Mil. Net Loss in First Half of 2006 CHINA SOUTHERN (SECURITIES): Court Formally Declares Bankruptcy CNG LIMITED: Faces Wind-Up Proceedings CORPSHINE INDUSTRIAL: Wind-Up Bid Hearing Set on September 13 DRAGON LINK: To Wind-Up Business Operations EFFECT LEATHER: Court Orders Wind-Up HI-SPEED TRANSPORTATION: Court Favors Wind-Up Bid HOSHING TELECOM: Final Members Meeting Set on September 11 JOY RISE: Court to Hear Wind-Up Bid on September 27 SHEENSTAR LIMITED: Members Final Meeting Slated for September 11 SHENZHEN DEVELOPMENT: Posts CNY463-Mil Net Profit in First Half WEALTHY DEVELOPMENT: High Court Issues Wind-Up Order I N D I A FORD MOTOR: Plans to Expand and Expedite Restructuring Plan ORIENTAL BANK: Fitch Assigns BB+ LT Foreign Currency Rating * India Halves FTA Exclusion List with ASEAN I N D O N E S I A ADARO INDONESIA: Annual Production Forecast at 33M Tons ADARO INDONESIA: Plans to buy Malaysia's TNB Coal ANEKA TAMBANG: Nickel Exploration Costs 32% More ANEKA TAMBANG: Sales Double in Second Quarter INCO LTD: Teck Cominco Withdraws Proposed Equity Offering INCO LTD: Board Says CVRD Offer Could Be a Superior Proposal MEDCO ENERGI: Posts US$55.1-Million Net Income in First Half J A P A N FALCONBRIDGE LTD: Xstrata Acquires 67.8% of the Company's Shares FUJI HEAVY: Toyota May Provide Cars to Sell in Europe JAPAN AIRLINES: To Hike Fuel Surcharges on Overseas Routes LIVEDOOR: Court to Begin Former President's Trial Next Month SOFTBANK CORPORATION: Inks Joint Venture Pact with SBI K O R E A DAEWOO ELECTRONICS: Five Firms Submit Final Offer M A L A Y S I A AYER HITAM: Unit Inks Joint Venture Deal to Develop Land BIMB HOLDINGS: Bourse Grants More Time to Release 4Q Results LIEN HOE: Pre-tax Loss Widens to MYR8.45 Mil. in 2nd Quarter LIEN HOE: Lists and Quotes 1 Million New Shares NAKAMICHI CORPORATION: Books MYR2.17-M Net Loss in 2nd Quarter POLYMATE HOLDINGS: Given Until November to Submit Rehab Plan PROTON HOLDINGS: To Declare Final Dividend P H I L I P P I N E S BANCO DE ORO: Philippines' Best for 2005, Asiamoney Says GLOBE TELECOM: Fitch Upgrades Foreign Currency IDR To 'BB+' PHILIPPINE LONG DISTANCE: Fitch Ups Issuer Default Rating to BB+ SAN MIGUEL: Shares Still Expensive, Analysts Say SAN MIGUEL: Posts PHP121.6-Billion Net Sales Revenue for 1H2006 * The Philippines' PHP17 Billion July Budget Deficit is on Track S I N G A P O R E CELATO PTE: Enters Liquidation Proceedings PDC Corp: June 30 Balance Sheet Reveals Stockholders' Deficit PDC CORP: Notes Changes to Board VAN HIN FURNITURE: Court to Hear Wind-Up Petition on September 1 T H A I L A N D SRITHAI FOOD: SET Place Securities in Non-Performing Group * Fitch Revises Country Ceilings for 40 Countries - - - - - - - - ============================================ A U S T R A L I A & N E W Z E A L A N D ============================================ ABN EXCAVATIONS: Court Orders Wind Up ------------------------------------- The Federal Court of Australia made an order on July 21, 2006, to wind up ABN Excavations Pty Ltd and appoint Steven Nicols as liquidator. The Liquidator can be reached at: Steven Nicols Level 2, 350 Kent Street Sydney, New South Wales 2000 Australia ABPACK FISH: Members Pass Resolution to Wind Up Firm ---------------------------------------------------- The members of Abpack Fish Exports Pty Ltd held a general meeting on July 27, 2006, and passed a special resolution to wind up the Company's operations. In this regard, Bruce N. Mulvaney was appointed as liquidator. The Liquidator can be reached at: Bruce N. Mulvaney Bruce Mulvaney & Co 1st Floor, 613 Canterbury Road Surrey Hills, Victoria 3127 Australia ADMIRAL PLANNING: Appoints Andrew Fielding as Liquidator -------------------------------------------------------- At a general meeting held on July 27, 2006, the members of Admiral Planning & Construction Management Consultants Pty Ltd resolved to close the Company's business and appoint Andrew Fielding as liquidator. The Liquidator can be reached at: Andrew Fielding PPB Chartered Accountants Level 4, Toowong Terraces 31 Sherwood Road Toowong, Queensland 4066 Australia AIR NEW ZEALAND: Plans to Outsource Finance Jobs, SFWU Says ----------------------------------------------------------- The Service and Food Workers Union states that Air New Zealand is preparing to outsource more than half its Finance Department to take advantage of cheaper labor overseas. Air New Zealand confirmed that at least 160 engineering services and finance staff would be affected by the plan and that some finance functions would now be outsourced, probably to Fiji, The Dominion Post reports. Air New Zealand said that 16 other major carriers outsource similar jobs, Radio NZ relates. Air New Zealand is also engaged in consultation with the SFWU Nga Ringa Tota and the Engineering, Printing and Manufacturing Union to find a "competitive in-house solution" to avoid tendering out all its ground-staff employees at the airports. SFWU Northern Region Secretary Jill Ovens says that the two processes follow hot on the heels of attempts to outsource the Company's heavy engineering services -- avoided only by unions agreeing to cuts in staff numbers and reductions in conditions. Ms. Ovens asserts that the latest moves by Air New Zealand appear to be part of a general plan to divest itself of its employees and operations, possibly to make the 80% publicly owned Air NZ shares more attractive to private buyers. "The airline is making a profit and recently announced that it is on target with its profit estimate for the 2006 financial year," Ms. Ovens recounts. "There is no crisis in Air NZ. This is simply a drive for bigger profits for a minority of private shareholders in order that the Company can convince the Government to relinquish the Kiwi share," Ms. Ovens asserts. Air New Zealand plans to shed more than half of its finance department -- 53% of the employees -- over one year. The remaining employees would be training the staff of the outsource provider who will be based off-shore, most likely in Fiji where clerical workers are paid as little as NZ$6000 a year. Other possibilities include India or the Philippines. Once they are trained, the New Zealand workforce would be made redundant, SFWU says. According to Radio New Zealand, the airline is proposing 26 positions in its financial services sector to be disestablished and that the remaining 71 be outsourced. "If Air NZ follows through on its plans, the finance operation will be performed by staff off-shore, and ground staff wearing the Air NZ uniform will be employed by contractors," Ms. Ovens says. Air New Zealand communications manager David Jamieson said that 62 engineering services workers, including 28 in Christchurch, are being "redeployed" with servicing of Air New Zealand aircraft to take place in Auckland, The Dominion Post says. The paper relates that when asked if there would be an option for voluntary redundancies, Mr. Jamieson said that there will be equivalent roles available for all affected, but noted that each individual case will be closely looked at. "The proposal reflects this reduction on a phased basis between January 2007 and April 2008," The Dominion Post cites Mr. Jamieson, as saying. A decision on the outsourcing is due to be made on August 24, 2006, tvnz.co.nz notes. The SFWU is planning a public campaign, including picketing Air New Zealand Chief Executive Officer Rob Fyfe's offices, in opposition to outsourcing its members in Air New Zealand Finance. 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. AN YING INTERNATIONAL: Court to Hear Liquidation Bid on Aug. 24 --------------------------------------------------------------- The High Court of Auckland will hear a liquidation petition against An Ying International Financial Ltd on August 24, 2006, 10:00 a.m. The plaintiff's solicitor, J.M.T. Wells, filed the petition with the Court on June 1, 2006. Mr. Wells can be reached at: J.M.T. Wells Wells & Company 419 Remuera Road, Remuera Auckland, New Zealand P.O. Box 28-390, Remuera, Auckland Facsimile: (09) 522 1035 ARAB BANK AUSTRALIA: Fitch Affirms Individual Rating at C/D ----------------------------------------------------------- Fitch Ratings affirms Arab Bank Australia Limited's ratings: * Long-term Issuer Default Rating 'A-' (A minus); * Short-term 'F2'; * Individual 'C/D'; and * Support '1' The ratings have a Stable Outlook. Arab Bank Australia is a wholly owned subsidiary of Arab Bank plc, a Jordanian bank with operations in 35 countries around the world. ABAL's ratings are underpinned by an extremely high probability of support from Arab Bank plc., given the latter's size, history of sound profitability and liquidity as well as prudent balance sheet management. Arab Bank plc is rated by Fitch at Long-term IDR 'A-' with a Stable Outlook and Short-term 'F2'. Arab Bank Australia's Individual rating reflects the bank's small size and modest franchise. That said, Fitch notes that ABAL maintains conservative risk management practices, an adequate financial profile and satisfactory capitalization. Arab Bank Australia shows a prudent approach to risk management consistent with the low risk culture that is fostered by Arab Bank plc. Arab Bank Australia mainly undertakes secured property lending and as a result, its financial performance is closely linked to conditions in the Australian property market. Lower loan fees and commissions from a cooling property market and substantial investment in internal business infrastructure contributed to a 36% decline in profits in the financial year ended 31 December 2005. However, during the same period, Arab Bank Australia's net interest margin increased by 20 basis points, suggesting the bank has not followed a price-driven strategy. Asset quality remains sound with the bank reporting a loan loss (provision) impairment charge of AU$432,000 which equates to a low 4.9% of pre-tax, pre-provision profit. Arab Bank Australia is well capitalized -- its equity to assets ratio of more than 7% is high by Australian bank standards, as is its Tier 1 ratio of 12.2% as at March 31, 2006. AUSTRALIAN HYPERBARIC: Appoints Receiver and Manager ---------------------------------------------------- Glen Bottriell of Prestige Holdings appointed Neil Robert Cussen as receiver and manager of all the assets and undertakings of Australian Hyperbaric Therapy Pty Ltd on July 26, 2006. The Receiver and Manager can be reached at: Neil Robert Cussen Horwath Sydney Partnership Level 10, 1 Market Street Sydney, New South Wales 2000 Australia BPJP NOMINEES: Placed Under Members' Voluntary Liquidation ---------------------------------------------------------- At a general meeting held on July 31, 2006, the members of BPJP Nominees Pty Ltd agreed to voluntarily liquidate the Company's business and distribute the proceeds of its assets disposal. In this regard, Mark Costigan was appointed as liquidator. The Liquidator can be reached at: Mark Costigan Mark Costigan & Associates Suite 1, 329 Main Street Lilydale Victoria 3140 Australia BRADLEY HOLDINGS: Creditors Appoint Travaglini as Liquidator ------------------------------------------------------------ The members of Bradley Holdings Pty Ltd convened on July 31, 2006, and resolved to close the Company's business. Creditors appointed Dino Travaglini as liquidator at a separate meeting held later that day. The Liquidator can be reached at: Dino Travaglini c/o Moore Stephens Chartered Accountants Level 3, 12 St Georges Terrace Perth, Western Australia 6000 Australia Telephone:(08) 9225 5355 BROUWER PTY: Members' Final Meeting Slated for September 11 ----------------------------------------------------------- Members of Brouwer Pty Ltd will convene on September 11, 2006, to receive Liquidator G. J. Waterland's report on the Company's wind-up proceedings and the property disposal exercises. The Troubled Company Reporter - Asia Pacific reported on April 6, 2006, that the Company commenced liquidation proceedings on March 1, 2006 The Liquidator can be reached at: G. J. Waterland JCW Consulting Pty Limited Level 1, 405 Nepean Highway Frankston, Victoria 3199 Australia CJR AND ASSOCIATES: Enters Wind-Up Proceedings ---------------------------------------------- Members of CJR and Associates Pty Ltd met on July 27, 2006, and agreed to voluntarily wind up the Company's operations. Subsequently, Derrick Craig Vickers was named official liquidator. The Liquidator can be reached at: Derrick Craig Vickers PricewaterhouseCoopers Level 19, 250 St George's Terrace Perth, Australia COX COMPANY: Members to Receive Wind-Up Report on September 6 ------------------------------------------------------------- The members of The Cox Company Pty Ltd will hold a final meeting on September 6, 2006, at 1:00 p.m., to receive Liquidator Peter Graham Cox's report on the Company's wind-up and the property disposal exercises. The Troubled Company Reporter - Asia Pacific reported on August 11, 2006, that the Company commenced a wind-up of its operations on July 28, 2006. The Liquidator can be reached at: Peter Graham Cox 40 St Elmo Road Ivanhoe, Victoria Australia DOWNTOWN DIRECTIONS: Creditors and Members to Meet on Sept. 12 -------------------------------------------------------------- A final meeting of the members and creditors of Downtown Directions Pty Ltd will be held on September 12, 2006. During the meeting, members and creditors will hear accounts of the Company's wind-up and property disposal exercises from Liquidator O'Keeffe Walton Richwol. As reported by the Troubled Company Reporter - Asia Pacific on March 27, 2006, the Company commenced a wind-up of its operations on February 15, 2006. The Liquidator can be reached at: O'Keeffe Walton Richwol Suite 3, 431 Burke Road Glen Iris 3146 Australia ELGIN PARK: Members Opt to Shut Down Business --------------------------------------------- After an extraordinary general meeting on July 31, 2006, the members of Elgin Park Pty Ltd decided to shut down the Company's business and appoint Bryan Hughes as liquidator. The Liquidator can be reached at: Bryan Hughes c/o Pitcher Partners Chartered Accountants 17th Level, AMP Building 140 St Georges Terrace Perth, Western Australia 6000 Australia Telephone:(08) 9322 2022 Facsimile:(08) 9322 1262 GLOBAL ENGINEERED: Talks on Customers' Rescue Package Fail ---------------------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on August 16, 2006, industry players were deciding on whether to sign up to a rescue package for Ajax Engineered Fasteners, a division of Global Engineered Fasteners. Moreover, according to the TCR-AP, workers unions have threatened to stop production at the factory if administrators do not agree to underwrite workers' entitlements. A subsequent TCR-AP report stated that a group of four car companies, including Holden, which buy parts from Ajax, have offered a package to keep the Company open and cover a shortfall in entitlements. In an update, the Australian Associated Press relates that on August 18, 2006, the administrators gave almost 200 Ajax workers marching orders when negotiations with Ajax customers for a multi-million rescue package disintegrated. Ford spokeswoman Sinead McAlary disclosed that negotiations broke down when one of the customers couldn't sign off on a deal to cover Ajax's trading losses. Workers, however, refused to leave the Braeside factory, saying that it represents their "assets" as offsite negotiations between company administrators and the Australian Manufacturing Workers Union continue, the AAP notes. The Age cites AMWU state secretary Steve Dargavel as saying that the ball was in the car companies' court, adding that further stand-downs across the industry are expected "if this doesn't get resolved." Administrator Stephen Longley said that there was no cash to keep the business running, The Age reveals. "We've spent the last of it this week in paying the payroll and received some non-refundable contributions from their customers to be able to pay the payroll and keep the doors open to date," the paper quotes Mr. Longley as telling ABC Radio. "We can't keep trading the business for the benefit of the customers without their longer term commitment over the next month to fund the operations," Mr. Longley contended. The Age notes that Holden, Ford, and Toyota run the risk of running out of parts. The Age further relates that Ms. McAlary said that Ford would have to stand workers down next week if Ajax remained shut. Ford buys components through supplier, Textron, the paper notes. Holden spokesman Jason Laird said that the failed deal was "extremely disappointing," but he would not speculate on Holden workers being stood down, The Age relates. The paper also cites Toyota spokesman Peter Griffin as saying that the company had enough parts -- supplied through PBR Australia -- to continue until next week. "At the moment [it's having] no impact but that's something we're going to have to watch on a day-to-day basis," Mr. Griffin said. About GEF Based at the Ajax plant in Braeside, Victoria, Global Engineered Fasteners -- http://www.ajaxfast.com.au/-- wholly owns Ajax Engineered Fasteners. GEF also owns the full-service automotive supplier Global Automotive Logistics. Allen Capital Private Equity and a team of company directors jointly own GEF. GEF was established in 2004 to acquire the assets of Ajax EF and GAL from the Nylex Group. GEF supplies customers, including GM Holden, Pacifica Group, and Textron, with nuts and bolts for engines and suspension parts as well as fasteners for other vehicle parts. The Troubled Company Reporter - Asia Pacific reported on August 9, 2006, that Allen Capital, the private equity owner of Global Engineered Fasteners, called in administrators to try to engineer a turnaround after the Company's battle with rising costs and falling volumes failed. The report noted that the action was due to the Company's more than AU$5 million in debt and the inability to convince Holden and brakes-maker Pacifica to agree to price rises. The directors of GEF appointed Stephen Longley and David McEvoy, of PricewaterhouseCoopers, as the Company's voluntary administrators. HERITAGE FINANCE: Court Hears CIR's Liquidation Bid Today --------------------------------------------------------- A liquidation petition filed against Heritage Finance Ltd will be heard before the High Court of Wellington today, August 21, 2006, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition with the Court on June 23, 2006. The Plaintiff's Solicitor can be reached at: Kate Elizabeth Harder Technical and Legal Support Group Wellington Service Centre, First Floor New Zealand Post House 7-27 Waterloo Quay (P.O. Box 1462) Wellington, New Zealand Telephone: (04) 890 1162 Facsimile: (04) 890 0009 JNIEDI ENTERPRISES: Receivers and Managers Cease to Act ------------------------------------------------------- On August 1, 2006, P. Vrsecky and S. L. Horne ceased to act as receivers and managers of Jniedi Enterprises Pty Ltd. The former Receivers and Managers can be reached at: P. Vrsecky Draper Dillon 499 St Kilda Road Melbourne 3004 Australia KARAGOLD PTY: Undergoes Voluntary Wind-Up ----------------------------------------- The members of Karagold Pty Ltd passed a special resolution to wind up the Company's operations on July 31, 2006. In this regard, Mark Pearce was appointed as liquidator. The Liquidator can be reached at: Mark Pearce c/o Pearce & Heers Insolvency Accountants Level 8, 410 Queen Street Brisbane, Queensland 4000 Australia MACCOE LOGISTICS: Creditors' Proofs of Claim Due on August 29 ------------------------------------------------------------- Maccoe Logistics Pty Limited notifies parties-in-interest of its intention to declare a first and final dividend to creditors. Creditors are required to prove their debts by August 29, 2006, for them to share in the dividend distribution. The liquidator can be reached at: Jamieson Louttit Chartered Accountant Jamieson Louttit & Associates Suite 73, Level 15 88 Pitt Street Sydney, New South Wales 2000 Australia Telephone:(02) 9231 0505 Facsimile:(02) 9231 0303 MANLY APARTMENT: Courts Issues Wind-Up Order -------------------------------------------- The Federal Court of Australia and the Supreme Court of New South Wales issued wind-up orders against Manly Apartment Leasing Pty Ltd on July 21, 2006, and July 27, 2006, respectively. In this regard, Steven Nicols was appointed as Liquidator. The Liquidator can be reached at: Steven Nicols Level 2, 350 Kent Street Sydney, New South Wales 2000 Australia MERRINDALE AUTOMOTIVE: Liquidator Cant to Present Wind-Up Report ---------------------------------------------------------------- The members and creditors of Merrindale Automotive Developments Pty Ltd will convene on September 11, 2006, at 10:15 a.m. to hear Liquidator Anthony Cant's report on the Company's wind-up and the property disposal exercises. According to the Troubled Company Reporter - Asia Pacific, the Company commenced a wind-up of its operations on June 20, 2006. The Liquidator can be reached at: Anthony R. Cant 2nd Floor 106 Hardware Street Melbourne, Australia MSC GUARDS: Names Oren Zohar and Brian McMaster as Liquidators -------------------------------------------------------------- At a general meeting held on July 28, 2006, the members of MSC Guards & Patrols Pty Ltd decided to close the Company's operations and appoint Oren Zohar and Brian McMaster as official liquidators. The Liquidators can be reached at: Oren Zohar Brian McMaster KordaMentha Level 11, 37 St Georges Terrace Perth, Australia MULTIPLEX GROUP: Worries on Wembley Losses if it Loses in Court --------------------------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on August 8, 2006, Multiplex Group has taken seven separate disputes, including payments, changes of specification, and time schedules, with Wembley National Stadium Ltd., to adjudication over the past month. The report said that the disputes process allows 28 days for resolution and the first adjudications are due this month, noting that if either party disagrees with the finding, it can take the matter to court. Wembley said it will go to court if needed but indicated it has no desire for public spats. A report from the Australian Associated Press relates that Multiplex disclosed that its attempts to recoup its Wembley losses through legal avenues could result in bigger booked losses if it loses in court. The TCR-AP recently reported that Multiplex's Wembley project incurred a pretax loss of AU$364.3 million or AU$255 million after-tax loss. The project loss position has remained unchanged since December 31, 2005. However, Multiplex Chief Executive Officer Andrew Roberts says that the Company is looking to reclaim some of those losses from Wembley, The Age notes. Mr. Roberts reveals that they have also allowed for the anticipated legal costs of pursuing claims, noting that "[i]f we lose our claims, then it is possible the loss could increase on Wembley." "Inversely, if we do better on our claims than booked we believe that our losses could reduce -- both of those outcomes are possible," Mr. Roberts adds. 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. NYLETTLE PTY: Receivers and Managers Step Aside ----------------------------------------------- Martin Russell Brown and David Laurence McEvoy ceased to act as receivers and managers of Nylettle Pty Ltd on July 27, 2006. The former Receivers and Managers can be reached at: David Laurence Mcevoy PricewaterhouseCoopers Level 23, Freshwater Place 2 Southbank Blvd Southbank, Victoria 3006 Australia PETER HACKWORTHY: To Declare Dividend on September 8 ---------------------------------------------------- Peter Hackworthy Real Estate Pty Ltd will distribute its first and final dividend to creditors on September 8, 2006, to the exclusion of those who cannot prove their claims by September 6, 2006. The Troubled Company Reporter - Asia Pacific reported on July 19, 2006, that the Company commenced a wind up of its operations on June 8, 2006. The liquidator can be reached at: K. L. Sutherland Bent & Cougle Pty Ltd Chartered Accountants 332 St Kilda Road Melbourne, Victoria 3004 Australia QUEENSTOWN TAHITI: Faces Liquidation Proceedings ------------------------------------------------ The Commissioner of Inland Revenue on June 23, 2006, filed before the High Court of Invercargill a petition to liquidate The Queenstown Tahiti Pearl Co Ltd. The Court will hear the petition on September 7, 2006. The Plaintiff's Solicitor can be reached at: Julia Dykema Inland Revenue Department Technical and Legal Support Group South Island Service Centre Ground Floor Reception 518 Colombo Street (P.O. Box 1782) Christchurch 8140, New Zealand Telephone: (03) 968 0809 Facsimile: (03) 977 9853 RETREAT FRANCHISING: Appoints Vartelas as Receiver and Manager -------------------------------------------------------------- Paul Vartelas was appointed on August 2, 2006, as receiver and manager of all the assets and undertakings of Retreat Franchising Pty Ltd. The Receiver and Manager can be reached at: Paul Vartelas B. K. Taylor & Co. 8th Floor 608 St Kilda Road Melbourne, Victoria 3004 Australia ROLLE ASSET: Creditors Resolve to Wind Up Operations ---------------------------------------------------- The creditors of Rolle Asset Inspections Pty Ltd convened on August 1, 2006, and resolved to wind up the Company's operations. Accordingly, Colin R. McDonald was appointed as liquidator. The Liquidator can be reached at: Colin R. McDonald Chartered Accountant PO Box 56 Mooroolbark, Victoria 3138 Australia Telephone:(03) 9726 4988 Facsimile:(03) 9726 9338 RONALD EDWARDS: Members Decide to Close Operations -------------------------------------------------- The members of Ronald Edwards Holdings Pty Ltd at a general meeting on July 27, 2006, agreed to close the Company's operations. In this regard, Colin McIntosh Nicol and R. B. McKern were appointed as liquidators. The Liquidators can be reached at: Colin McIntosh Nicol R. B. McKern c/o McGrathNicol+Partners Level 8, IBM Centre 60 City Road Southbank, Victoria 3006 Australia Telephone:(03) 9038 3100 Web site: http://www.mcgrathnicol.com/ ROTHSCHILD AUSTRALIA: Members Pass Resolution to Shut Down Firm --------------------------------------------------------------- On July 28, 2006, the members of Rothschild Australia E-Fund passed a special resolution to wind up the Company's operations and appoint Timothy James Cuming and David Clement Pratt as liquidators. The Liquidators can be reached at: Timothy James Cuming David Clement Pratt Level 15, 201 Sussex Street Sydney, New South Wales 1171 Australia SANDOW TRANSPORT: Members to Hear Liquidator's Report on Sept. 8 ---------------------------------------------------------------- A final meeting of the members of Sandow Transport Pty Ltd will be held on September 8, 2006, at 2:30 a.m., to hear Liquidator Peter J. Carnell's report on the Company's wind-up and the manner of property disposal. As reported by the Troubled Company Reporter - Asia Pacific on August 31, 2005, the Company commenced a wind-up of its operations on July 25, 2005. The Liquidator can be reached at: Peter J. Carnell Darcy Kennedy Accountants and Advisors 157 Brisbane Street Dubbo, New South Wales 2830 Australia SKYSEARCH PTY: Enters Liquidation Proceedings --------------------------------------------- The members of Skysearch Pty Ltd held a general meeting on July 28, 2006, and decided that it is in the Company's best interest to wind up its operations. Accordingly, Timothy James Cuming and David Clement Pratt were appointed as liquidators. The Liquidators can be reached at: Timothy James Cuming David Clement Pratt Level 15, 201 Sussex Street Sydney, New South Wales 1171 Australia TACTICAL EDGE: Creditors Appoint Official Liquidator ---------------------------------------------------- At an extraordinary general meeting held on July 31, 2006, the members of Tactical Edge International Pty Ltd resolved to liquidate the Company's business. Creditors appointed Craig Crosbie as liquidator at a separate meeting held later that day. The Liquidator can be reached at: Craig Crosbie PPB Chartered Accountants Level 10, 90 Collins Street Melbourne, Victoria 3000 Australia WARE NOMINEES: Enters Wind-Up Proceedings ----------------------------------------- At an extraordinary general meeting held on July 31, 2006, the members of Ware Nominees Pty Ltd resolved to wind up the Company's operations. John Lindholm was appointed as liquidator at a creditors' meeting held that same day. The Liquidator can be reached at: John Lindholm Ferrier Hodgson Level 29, 600 Bourke Street Melbourne, Victoria 3000 Australia WESTERN BAY: Receivers to Pay 10c in the Dollar by End-September ---------------------------------------------------------------- In an update to debenture holders, Grant Graham and Brendon Gibson, receivers for Western Bay Finance Ltd, disclose that they expect debenture holders to receive the majority of their investment back. The update addresses: 1. the estimated recovery for debenture holders from the receivership; 2. initial steps toward realization of the Company's greatest asset, the loan book; and 3. the projected date of a first dividend to debenture holders. At least NZ$10 million owed to Western Bay's 3,000 debenture stock investors has disappeared down the drain, the New Zealand Herald cites the Receivers as telling the investors. The paper says that the Receivers' early analysis showed debenture investors who are owed a total of NZ$48 million could expect to see 75c to 80c in the dollar of their outstanding principal. The Receivers also note that there remain some risks to this estimate, given the profile of the book. However, they are mindful of the concerns of debenture holders and wished to give an early estimate to debenture holders. The Receivers relate that they have taken immediate steps to bolster the collection function in-house and are examining a range of options like external agencies, and outright sale of tranches of the book. In the interim, they project to be able to pay a first dividend to debenture holders of 10 cents in the dollar, before the end of September. Mr. Graham also reveals that Western Bay's Web site -- http://www.wbf.co.nz/-- has been reinstated and will be used as a primary channel of updating debenture holders on progress. * * * The Troubled Company Reporter - Asia Pacific reported on August 4, 2006, that Western Bay Finance has been put into receivership, leaving more than 3,000 investors in limbo. Receivers Ferrier Hodgson were called to assess the quality of Western Bay's loan book, which has about 10,000 loans totaling NZ$53 million. An earlier TCR-AP report stated that Standard & Poor's Ratings Services downgraded its insurer financial strength rating on New Zealand general insurer Linsa Insurance Ltd. -- previously named Premium Insurance Ltd. -- to 'CC' from 'B-'. At the same time, Linsa was placed on CreditWatch with negative implications. The report stated that the rating actions follow heightened financial difficulties facing sister company Western Bay Finance Ltd. S&P noted that Western Bay Finance is not rated. Jim Smylie established Western Bay Finance 17 years ago. WESTERN BAY: Finance Now Still Interested to Buy Part of Assets --------------------------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on August 4, 2006, Finance Now, a subsidiary of Southland Building Society, has been undertaking due diligence in Western Bay Finance's loan book. The TCR-AP noted that the receivers for Western Bay would be evaluating whether a deal could still be worked out. A subsequent TCR-AP report on August 14, 2006, however, noted that Finance Now has called off the deal because the quality of Western Bay's portfolio was not satisfactory. Yet, Finance Now is still believed to have an offer on the table for about NZ$30 million to buy over half of Western Bay's assets, The Dominion Post reports. According to the report, Finance Now business development director Wayne Evans did not discuss figures but confirmed that his company had talked to the receivers and remained interested in parts of Western Bay. "Our view is that a trade sale would be in the best interests of debenture holders," the paper cites Mr. Evans, as saying. * * * The Troubled Company Reporter - Asia Pacific reported on August 4, 2006, that Western Bay Finance has been put into receivership, leaving more than 3,000 investors in limbo. Receivers Ferrier Hodgson were called to assess the quality of Western Bay's loan book, which has about 10,000 loans totaling NZ$53 million. An earlier TCR-AP report stated that Standard & Poor's Ratings Services downgraded its insurer financial strength rating on New Zealand general insurer Linsa Insurance Ltd. -- previously named Premium Insurance Ltd. -- to 'CC' from 'B-'. At the same time, Linsa was placed on CreditWatch with negative implications. The report stated that the rating actions follow heightened financial difficulties facing sister company Western Bay Finance Ltd. S&P noted that Western Bay Finance is not rated. Jim Smylie established Western Bay Finance 17 years ago. YTM PROPRIETARY: Receivers and Managers Cease to Act ---------------------------------------------------- Martin Russell Brown and David Laurence McEvoy ceased to act as receivers and managers of YTM Proprietary Limited on July 27, 2006. The former Receivers and Managers can be reached at: David Laurence McEvoy PricewaterhouseCoopers Level 23, Freshwater Place 2 Southbank Blvd Southbank, Victoria 3006 Australia ================================ C H I N A & H O N G K O N G ================================ ACTIVE GAINER: to Hear Wind-Up Bid on August 30 ----------------------------------------------- A wind-up petition filed against Active Gainer Ltd will be heard before the High Court of Hong Kong on August 30, 2006, at 9:30 a.m. Shek Chi Wai filed the petition with the Court on July 3, 2006. The Solicitor for the Petitioner can be reached at: Joe Poon For Director of Legal Aid 34/F., Hopewell Centre 183 Queen's Road East Wanchai, Hong Kong BENQ CORP: Taiwan Ratings Pares LT Credit Rating to twBB+ --------------------------------------------------------- Taiwan Ratings Corp on August 17, 2006, lowered its long-term corporate credit rating and unsecured corporate bond rating on BenQ Corporation to twBB+ from twBBB. At the same time, the short-term corporate rating on the Company was lowered to twB from twA-3. All ratings remain on CreditWatch with negative implications, where they were placed on March 14, 2006. The downgrade reflects the diminishing prospects of a rapid turnaround of BenQ's handset business and the negative impact of heavy operating losses on BenQ's financial profile after the company reported much weaker-than-expected sales in the four months ended July 31, 2006. The ratings remain on CreditWatch with negative implications because BenQ's financial profile is likely to deteriorate further unless the company improves its operating performance over the next few quarters. BenQ partly attributes the poor sales result in the quarter ended June 30, 2006, to seasonal demand softness for PC related products, as well as slower-than-expected handset sales due to the delayed launches of new handset models. BenQ's consolidated revenue declined 4.5% quarter-on-quarter to NT$55 billion in contrast to its guidance (given in April 2006) of more than 10% sequential growth. * * * Based Taiwan, Republic of China, BenQ Corporation, Inc. -- http://www.benq.com/-- is principally engaged in manufacturing, developing and selling of computer peripherals and telecommunication products. It is also a major provider of 3G handset, 3G handset, Camera phones, and other products. CHINA MERCHANTS: Gets Nod to Launch US$2-Billion IPO ---------------------------------------------------- China Merchants Bank received an approval in principle from Hong Kong's regulator to launch its US$2 billion initial public offering next month, The Standard reports. Sources told The Standard that the mainland lender received the green light from the Hong Kong stock exchange on August 17, 2006, to proceed with its first overseas share sale by the end of September. Bloomberg recounts that Merchants Bank announced in April that stockholders of the bank approved its plan to sell 2.2 billion shares, or a 15% stake to investors in Hong Kong and use the proceeds to expand its branch network and boost capital. The China Securities Regulatory Commission approved the plan last week, Bloomberg adds. Three investment banks -- China International Capital, UBS and JPMorgan -- are helping to arrange the share sale, while BNP Paribas, Credit Suisse and Morgan Stanley are co-lead managers, The Standard relates. According to Bloomberg, the Chinese government is encouraging its biggest banks to sell shares overseas to improve their finances and enhance corporate governance in line with international standards. Domestic banks will face unprecedented competition from overseas competitors including Citigroup Inc. and HSBC Holdings Plc when China fully opens its banking market at the end of this year. China Knowledge notes that China Merchants joined seven other banks that receive the approval from CSRC to launch IPO's overseas: the Industrial and Commercial Bank of China, China Construction Bank Corp., Bank of China Ltd., Bank of Communications Co. Ltd., Hong Kong and Shanghai Banking Corp., and Bank of East Asia Ltd. and Citibank. * * * China Merchants Bank -- http://www.cmbchina.com/-- is the second-largest bank among China's 12 nationwide shareholding commercial banks. It was established in 1987 and listed on the Shanghai Stock Exchange in 2002. The Ministry of Communications-owned China Merchants Group is the bank's main shareholder with a 26 percent stake (through various companies). The bank had 410 banking outlets nationwide and 17,829 employees at end-2004. On August 3, 2006, The Troubled Company Reporter - Asia Pacific reported that Fitch Ratings has upgraded its Individual rating on China Merchants Bank to 'D' from 'D/E'. At the same time, the bank's Support rating was affirmed at '3'. CHINA SOUTHERN: Posts CNY825-Mil. Net Loss in First Half of 2006 ---------------------------------------------------------------- China Southern Airlines Co Ltd registered a net loss of CNY825 million for the first half of 2006 due to soaring fuel prices and rapid expansion, China Daily reports. Based on the Company's interim report, the airline's costs surged 17% year-on-year to reach CNY20 billion in the first six months. The Daily, however, notes that the carrier's net loss dropped only slightly by 9% compared with that of the same period last year. XFN - Asia relates that the carrier announced an operating profit of CNY149 million for the first half against a loss of CNY271 million in the same period last year, while revenue rose 15% to CNY20.60 billion from CNY17.84 billion a year earlier. In addition, China Southern's net loss per share stood at CNY0.19 narrowing from the CNY0.21 loss in the first six months of 2005. The Company did not declare any interim dividend. * * * Headquartered in Guangzhou, China, China Southern Airlines Co Ltd. -- http://www.cs-air.com-- engages in the operation of airlines, as well as in aircraft maintenance and air catering operations in the People's Republic of China and internationally. It provides commercial airlines, cargo services, logistics operations, air catering, utility service, hotel operation, travel services, aircraft leasing, and Internet services. On May 1, 2006, Fitch Ratings has downgraded China Southern Airlines Company Limited's Foreign Currency and Local Currency Issuer Default Ratings to B+ from BB-. The Troubled Company Reporter - Asia Pacific reported in April 2006, that the carrier posted a net loss of CNY1.85 billion for 2005 versus a net loss of CNY48 million a year earlier. CHINA SOUTHERN (SECURITIES): Court Formally Declares Bankruptcy --------------------------------------------------------------- The Shenzhen Intermediate People's Court on August 9, 2006, formally declared China Southern Securities bankrupt, the China Knowledge reports. According to a liquidation report from Deloitte, the securities firm was found to have negative net assets of CNY12.18 billion. At the end of 2005 the total assets of Southern Securities amounted to CNY10.63 billion and the total liability was CNY22.81 billion, with a liability-asset ratio of 214.55%. The Troubled Company Reporter - Asia Pacific earlier reported that once bankruptcy proceedings are commenced, the local courthouse will auction the remaining assets of the Company, the proceeds of which will be used to pay off the Company's debts. The Company is expected to settle first its individual debts over its institutional debts. The TCR-AP notes that personal debts of the Company include the appropriation of the deposits of clients and compensation for staffs. Its institutional debts, on the other hand, are mostly loans from banks and entrusted financing reached a total of CNY12 billion. China Daily recounts that Shenzhen Lanbowan Investment Co took China Southern Securities to Court in July this year asking the brokerage to pay back its overdue CNY30 million debt. Guo Yimin, deputy dean of the Shenzhen Intermediate People's Court told the Daily "the bankruptcy and clearing helps to protect the interests of investors and creditors." This move also rings an alarm bell for securities firms to strengthen their corporate governance and risk management, Mr. Gou adds. * * * Established in 1992, China Southern Securities -- also known as Nanfang Securities -- used to be one of China's largest brokerage houses with a registered capital of CNY3.45 billion (US$416.9 million) and boasts 56 major shareholders including China's largest state-owned banks and insurance companies. The Troubled Company Reporter - Asia Pacific reported in January 2004 that The China Securities Regulatory Commission and the Shenzhen government have shut down securities brokerage China Southern Securities because of mismanagement and irregularities. In April 2005, the Commission ordered for the immediate closure and liquidation of the Company. However, the liquidation proceeding was halted when China Jianying Investment decided to bail out the Company in August last year in a hope to revive the Company. CNG LIMITED: Faces Wind-Up Proceedings -------------------------------------- Marc Dransene Conception on July 10, 2006, filed before the High Court of Hong Kong a petition to wind-up CNG Ltd's operation. The Court will hear the petition on September 6, 2006, at 9:30 a.m. The Solicitors for the Petitioner can be reached at: Sit Fung Kwong & Shum 18th Floor, Gloucester Tower The Landmark, 11 Pedder Street Central, Hong Kong CORPSHINE INDUSTRIAL: Wind-Up Bid Hearing Set on September 13 ------------------------------------------------------------- A wind-up petition filed against Corpshine Industrial Co Ltd. Will be heard before the High court of Hong Kong on September 13, 2006, at 9:30 a.m. Top Alliance Industries Ltd filed the petition with the Court on July 17, 2006. The Solicitors for the Petitioner can be reached at: Ford Kwan and Company Suites 1505-1508, 15th Floor Chinachem Golden Plaza 77 Mody Road, Tsimshatsui East Kowloon, Hong Kong Telephone: 2366 0688 Facsimile: 2722 0376 DRAGON LINK: To Wind-Up Business Operations ------------------------------------------- Dragon Link Maintenance on August 2, 2006, received a wind-up order issued by the High Court of Hong Kong. The Troubled Company Reporter - Asia Pacific reported that the Company was facing a wind-up petition filed before the Court by Leung Kam Wah. The petition was heard on August 2, 2006. EFFECT LEATHER: Court Orders Wind-Up ------------------------------------ The High Court of Hong Kong on August 2, 2006, issued a wind-up order against Effect Leather Shoes Factory Ltd. According to The Troubled Company Reporter - Asia Pacific, Chan Kam Fung on June 7, 2006, filed with the Court a petition to wind-up the Company's operation. The petition was heard before the Court on August 2, 2006. HI-SPEED TRANSPORTATION: Court Favors Wind-Up Bid ------------------------------------------------- The High Court of Hong Kong on August 2, 2006, issued a wind-up order against Hi Speed Transportation Co Ltd. On July 14, 2006, The Troubled Company Reporter - Asia Pacific reported that the company was facing a wind-up petition filed by Lok Yiu Fu. The Court heard the petition on August 2, 2006. HOSHING TELECOM: Final Members Meeting Set on September 11 ---------------------------------------------------------- Members of Hoshing Telecom Ltd will convene for their final meeting at Liquidator Desmond Chiong's office on September 11, 2006, at 11:00 a.m. At the meeting, Mr. Chiong will present a report regarding the Company's wind-up and the manner its properties were disposed of. Mr. Chiong can be reached at: Desmond Chiong 14/F., Hong Kong Club Bldg 3A Chater Road, Central Hong Kong JOY RISE: Court to Hear Wind-Up Bid on September 27 --------------------------------------------------- Ng Wing Hung on July 26, 2006, filed before the High Court of Hong Kong a petition to wind-up the operations of Joy Rise Holdings Ltd. The Court will hear the petition on September 27, 2006, at 9:30 a.m. The Solicitors for the Petitioner can be reached at: Yuen & Partners 10th Floor, Chiyu Bank Building 78 Des Voeux Road, Central Hong Kong Telephone: 2815 2688 Facsimile: 2541 2088 SHEENSTAR LIMITED: Members Final Meeting Slated for September 11 ---------------------------------------------------------------- Members of Sheenstar (Hong Kong) Ltd will hold a final meeting on September 11, 2006, at 11:00 a.m. At the meeting, Liquidators Lui Wan Ho and Lui Yee Lin will present accounts of the Company's wind-up and property disposal exercises. The Joint Liquidators can be reached at: Lui Wan Ho Room 1701, Olympia Plaza 255 King's Road, North Point Hong Kong SHENZHEN DEVELOPMENT: Posts CNY463-Mil Net Profit in First Half --------------------------------------------------------------- Shenzhen Development Bank's net profit nearly tripled in the first half of 2006, in line with the company's estimates, as revenue from fees and lending increased strongly, Reuters reports. The Bank booked a net profit of CNY463.62 million, or US$58.1 million, in the six months ended June 2006, up from a restated CNY167.88 million in the same period of last year. Turnover rose 24% to CNY5.54 billion for the first half ended June, from CNY4.47 billion. The Bank's non-performing loan ratio fell to 8.3% at the end of the period from 8.9% at the end of the first quarter. Outstanding loans reached CNY175.9 billion by the end of June, up 11% from the end of last year, while provisions for bad loans in the first half rose to CNY6.67 billion from CNY6.23 billion at the end of 2005. The Bank's capital adequacy ratio slipped to 3.58 percent at the end of June, from 3.70 percent at the end of December -- far below the minimum requirement of 8 percent. Regulators have agreed to give the bank time to bring the ratio up. Meanwhile, Reuters relates that General Electric's investment is key to the Bank's efforts to raise capital. Last October, GE said it would pay US$100 million for a 7.3% stake in the medium- sized bank. But the deal is still awaiting regulatory approval, and may be delayed further by shareholders' vote last month to reject the bank's plan to take part in a national share reform program. * * * Based in Shenzhen, Guangdong, People's Republic of China, Shenzhen Development Bank Company Ltd's -- http://www.sdb.com.cn/-- principal activities are the provision of local and foreign currency deposits and loan services. Other activities include foreign currencies exchanging, foreign currency deposit and remittances, acts as an agent for issuing foreign currency value-bearing securities, management of letters of credit and operation of both an international and a domestic discounting service. Fitch Ratings on August 14, 2006, affirmed Shenzhen Development Bank's Individual 'D/E' and Support '4' ratings. WEALTHY DEVELOPMENT: High Court Issues Wind-Up Order ---------------------------------------------------- Wealthy Development Ltd received a wind-up order from the High Court of Hong Kong on August 2, 2006. According to The Troubled Company Reporter - Asia Pacific, Grand Marseille Enterprises Ltd on June 6, 2006, filed a petition with the Court to wind-up the Company's operation. The petition was heard on August 2,2006. ========= I N D I A ========= FORD MOTOR: Plans to Expand and Expedite Restructuring Plan ----------------------------------------------------------- Ford Motor Company plans to expand and accelerate the implementation of its restructuring program named Way Forward, The Wall Street Journal reports, citing people familiar with the Company's plans. The Company is planning to close more factories, cut more management jobs by another 10% to 30% and reduce benefits as it reels from a US$254 million net loss for the second quarter of 2006. The original plan called for termination of 30,000 employees and shutting down of 14 plants by 2012. As reported in the Troubled Company Reporter on Aug. 4, 2006, the Company hired Kenneth H.M. Leet as a strategic advisor to Bill Ford, the Company's chairman and chief executive officer. The Company is trying to achieve its profitability and market share goals using a two-pronged approach: (a) cut costs; and (b) increase revenue. To increase its market share, the Company plans to introduce more products by investing up to US$1 billion in several of the company's Michigan facilities. Amendments to the restructuring plan will be deliberated by the Company's board of directors on Sept. 14, 2006. Formal announcements will come a week after that. About Ford Motor Ford Motor Company, headquartered in Dearborn, Michigan, U.S.A., is the world's third largest automobile manufacturer. It has operations all over the world, including India. The Troubled Company Reporter - Asia Pacific reported on July 3, 2006, that Moody's Investors Service lowered the Corporate Family and senior unsecured ratings of Ford Motor Company to B2 from Ba3. Standard & Poor's Ratings Services, on the other hand, lowered its corporate credit rating on Ford Motor Co. and its related units to 'B+' from 'BB-' and affirmed its 'B-2' short-term rating. On June 12, 2006, Fitch Ratings downgraded Ford Motor's issuer default rating to B+ from BB, and its senior unsecured ratings to BB- from BB. ORIENTAL BANK: Fitch Assigns BB+ LT Foreign Currency Rating ----------------------------------------------------------- Fitch Ratings has assigned, on August 18, 2006, a Long-term foreign currency Issuer Default Rating of 'BB+' to Oriental Bank of Commerce. The Individual and Support ratings have been affirmed at 'C/D' and '4', respectively. The Outlook on the ratings is Stable. Oriental Bank's ratings reflect its relatively strong standalone financials compared with most Indian banks, majority government ownership and moderately large size. The Bank's otherwise stable financial profile was affected by its merger with the troubled private sector Global Trust Bank in August 2004 under the guidance of the central bank. Oriental Bank issued equity in April 2005 and is effecting a clean up of the erstwhile Global Trust's loan portfolio through recoveries and write-offs. The merger increased Oriental Bank's assets by about 17% and enabled it to acquire a presence in south India to complement its own operations, which are predominantly based in north India. Prior to the merger, Oriental Bank became the first government bank to report a zero net non-performing loan ratio at March 2004; gross NPL ratios were also better than system averages. The addition of problem loans due to the merger with Global Trust increased the gross NPL ratio to 9.1% as at the financial year ending March 2005; however, this has since fallen to 6% at FY06 through Oriental Bank's recovery efforts and write-offs. The net NPL ratio remains well below the system median. While the merger led to a dip in Oriental Bank's historically healthy capital adequacy ratio (total: 9.2%, tier 1: 5.4% at FY05), the bank's equity issue in FY06 boosted the tier 1 ratio to 11.7%. Although the issue has diluted the government's stake to the statutory minimum of 51%, restricting the bank's ability to raise additional equity, the bank can comfortably issue subordinated debt and hybrid capital instruments to support growth in the next 12 to 24 months. Oriental Bank's profitability (return on assets: FY06: 1%; FY05: 1.5%; FY04: 1.8%) has been declining on account of falling net interest margins, mark-to-market losses on its government securities portfolio, as well as an annual INR2.5 billion write- off (recurring from FY05 to FY09) of Global Trust's accumulated losses, although FY06 profits were boosted by a net write-back of loan loss provisions on account of recoveries. The bank's profitability may remain under pressure in the next two years due to further mark-to-market losses at INR2 billion in 1Q/FY07 on its treasury portfolio and merger-related write-offs. Oriental Bank of Commerce was established in 1943 and functioned as a small private bank until it was nationalized in 1980. It has a network of over 1100 branches. Retail loans constitute around one-fifth of its loan portfolio. * India Halves FTA Exclusion List with ASEAN -------------------------------------------- Free-trade talks between India and the Association of South-East Asian Nations resumed on August 18, 2006, after India trimmed its exclusion list of products from tariff reduction from 850 to 560, Bernama reports. In addition, India disclosed that it was ready to offer tariff concessions for 94% of ASEAN exports. According to Bernama, India is willing to slash tariff on refine palm oil from 90% to 60%, crude oil from 80% to 50%, black tea from 100% to 50% and pepper from 70% to 50%. Despite the plum offer, India continues to withhold its agriculture sector, where millions of subsistence farmers depend for their livelihoods, Bernama says. India said it is not prepared to negotiate on agriculture with ASEAN at least for the next five years. India's Ministry of Commerce & Industry special secretary Gopal K. Pillai told Bernama that India had offered an extensive list and hopes ASEAN members would reciprocate accordingly but lamented the 10-member grouping is yet to respond. Mr. Pillai said ASEAN is yet to counter propose and urged the grouping to submit their list so that the FTA can be finalized quickly. As reported by the Troubled Company Reporter - Asia Pacific on July 27, 2006, talks between the ASEAN and India soured due to the haggling over India's exclusion list which some ASEAN experts described as too extreme as it included items from toilet bowls to naked dolls. According to the TCR-AP, the FTA discussions have become difficult following India's demand to exclude some 850 goods from the pact. Last year, the so-called exclusion list included nearly 1,400 goods, which account for some 30% of Southeast Asia's exports to India. The media had reported that the ASEAN had suspended talks with India over the controversial exclusion list. But Indian deputy minister of defense Rao Inderjit Singh refuted the reports, saying that the talks will continue as India is still very keen on a free-trade agreement, TCR-AP stated. ================= I N D O N E S I A ================= ADARO INDONESIA: Annual Production Forecast at 33M Tons ------------------------------------------------------- PT Adaro Indonesia projects annual production of 33 million tons for 2006, Bloomberg News reports. Adaro Indonesia Administration Manager Priyono told Bloomberg that this year's output may rise 23%, faster than expected, as good weather makes production easier and as demand increases. The company produced 8.6 million tons in the second quarter of 2006, a 6% increase from last year and the most since the mine started production in 1991. Annual production may total 33 million tons, he said. Adaro, together with PT Kaltim Prima Coal, Indonesia's two largest coal miners, are increasing capacity to meet demand from Asian utilities that have boosted coal use as oil has risen to records. The move comes after Indonesia, the world's largest exporter of coal used to generate electricity, planned to raise production at least 9% in 2007 as the country starts building a series of coal-fired power stations. Indonesia wants to add 20,000 megawatts of coal-fired stations by 2010. That may add as much as 70 million tons of domestic demand for the fuel, said Jeffrey Mulyono, chairman of the Indonesian Coal Mining Association. The Bloomberg report adds that Indonesia may export 125 million tons of coal this year, from 117.9 million tons last year, according to the association. Its main export markets are Japan, South Korea and Taiwan. China and India are emerging as new markets for Indonesian coal. About PT Adaro Indonesia Headquartered in Indonesia, PT Adaro Indonesia -- http://www.adaro-envirocoal.com-- operates one of the world's largest sub-bituminous coal mines in Kalimantan, Indonesia. The company operates under a Coal Cooperation Agreement with the Government of Indonesia which gives it the right to mine coal within its agreement area in the Tanjung district of South Kalimantan Province until the year 2022 with rights to extend by mutual agreement. There are four deposits within the Agreement Area which contain total coal resources of approximately 3.0 billion tones of open cut coal characterized by extremely thick seams of up to 50 meters with relatively low overburden. The coal is exceptionally clean with 0.1% sulphur, 1.2% ash and low nitrogen and has been trademarked internationally as Envirocool. Production commenced in 1991 and has increased steadily since that time with sales to both export and domestic markets reaching 25 million tonnes in 2004 making Indonesia's largest coal producer. * * * Moody's Investors Service, on May 19, 2006, affirmed the Ba3 local currency corporate family rating for PT Adaro Indonesia and the Ba3 foreign currency rating for Adaro Finance B.V. The outlook for the ratings remains stable. Moody's says that the upgrade of Indonesia's foreign currency sovereign rating to B1 from B2 does not have any impact on Adaro's ratings. Standard & Poor's Ratings Services gave Adaro Indonesia a 'B+' in both its Long-Term Foreign and Local Issuer Credit Ratings, effective on November 11, 2005. ADARO INDONESIA: Plans to buy Malaysia's TNB Coal ------------------------------------------------- PT Adaro Indonesia has submitted a proposal to buy Malaysia's Tenaga Nasional Berhad's controlling stake in TNB Coal International, Bernama News reveals. According to Bernama, Tenaga has received offers from PT Adaro and PT Pamapersada Nusantara to buy its 92.5% equity interest in TNB Coal. PT Adaro is proposing to purchase Tenaga's mining stake through Padang Karunia, which is valuing TNB Coal's mining asset at MYR87.16 million, or US$23.75 million. Under the proposal, Padang Karunia will make an upfront payment of MYR20.18 million (US$5.50 million) and a deferred payment of MYR66.98 million (US$18.25 million) on a staggered basis, Bernama says. On the other hand, Pamapersada Nusantara -- a mining contractor for PT Dasa Eka Jasatama -- is proposing to acquire TNB Coal by way of writing off Tenaga's investments and advances into Dasa Eka, totaling, MYR106.06 million, or US$28.9 million. TNB Coal's mining asset in Indonesia is centered around Dynamic Acres Sdn Bhd, which in turn holds a 99% stake in Dasa Eka, according to Bernama. Dasa Eka owns the exclusive mining rights to five concession areas in south Kalimantan, Indonesia, and supplies coal to TNB Fuel Services Sdn Bhd, Tenaga's wholly- owned subsidiary since last year. About Tenaga Nasional Headquartered in Kuala Lumpur, Malaysia, Tenaga Nasional Berhad -- http://www.tnb.com.my/-- is engaged in the generation, transmission, distribution and sale of electricity. The company also manufactures, sells and repairs transformers and switchgears. It is also involved in provision of project management, consultancy, engineering works, contracting, trading, risk management, risk surveys, insurance, research and development, property management, energy project development and investment holding services. It also undertakes repairs and maintenance of motor vehicles. The Group operates in Malaysia and Mauritius. The company is currently undertaking liability management exercises, which are expected to extend the company's debt maturity profile and reduce refinancing risk. Moody's gave the Company a 'Ba' rating due to the company's relatively high financial leverage and significant PPA obligations. About PT Adaro Indonesia Headquartered in Indonesia, PT Adaro Indonesia -- http://www.adaro-envirocoal.com-- operates one of the world's largest sub-bituminous coal mines in Kalimantan, Indonesia. The company operates under a Coal Cooperation Agreement with the Government of Indonesia which gives it the right to mine coal within its agreement area in the Tanjung district of South Kalimantan Province until the year 2022 with rights to extend by mutual agreement. There are four deposits within the Agreement Area which contain total coal resources of approximately 3.0 billion tones of open cut coal characterized by extremely thick seams of up to 50 meters with relatively low overburden. The coal is exceptionally clean with 0.1% sulphur, 1.2% ash and low nitrogen and has been trademarked internationally as Envirocool. Production commenced in 1991 and has increased steadily since that time with sales to both export and domestic markets reaching 25 million tonnes in 2004 making Indonesia's largest coal producer. * * * Moody's Investors Service, on May 19, 2006, affirmed the Ba3 local currency corporate family rating for PT Adaro Indonesia and the Ba3 foreign currency rating for Adaro Finance B.V. The outlook for the ratings remains stable. Moody's says that the upgrade of Indonesia's foreign currency sovereign rating to B1 from B2 does not have any impact on Adaro's ratings. Standard & Poor's Ratings Services gave Adaro Indonesia a 'B+' in both its Long-Term Foreign and Local Issuer Credit Ratings, effective on November 11, 2005. ANEKA TAMBANG: Nickel Exploration Costs 32% More ------------------------------------------------ PT Aneka Tambang spent 32% more in July to explore ore than in the previous month as nickel prices soared, Bloomberg News reports. Antam spent IDR10 billion (US$1.1 million) during the month, of which IDR7.6 billion was spent seeking nickel deposits on Halmahera, Sulawesi and Obi islands in east Indonesia, Bloomberg says, citing an e-mailed statement from the Company. Bloomberg adds that prices of nickel have risen to their highest level in at least 19 years on concerns that supply cannot meet demand. Inventories of the metal monitored by the London Metal Exchange have fallen 82% since the year started to 6,378 tons in August 10, 2006, the lowest since July 31, 2006. The Company also spent IDR1.8 billion exploring for gold and IDR642.4 million looking for bauxite deposits in July 2006. About Aneka Tambang PT Aneka Tambang Tbk -- http://www.antam.com/-- mines, processes, develops, and explores natural deposits. The company operates six mines. They are located in Riau (bauxite), Sulawesi and Maluku (nickel), Central Java (iron sand), and West Java (gold). The company also operates a precious metal refinery and a geology unit in Jakarta. * * * As the Troubled Company Reporter - Asia Pacific reported on December 19, 2005, Moody's Investors Service had, on Dec. 15, 2005, changed the outlook for Aneka Tambang's local currency B1 corporate family rating to positive from stable. The B2 foreign currency bond rating remains unchanged with a positive outlook, which is in line with the positive outlook for Indonesia's sovereign rating. Standard & Poor's Ratings Services gave Aneka Tambang 'B' long- term local and foreign issuer credit ratings, effective Aug. 26, 2003. ANEKA TAMBANG: Sales Double in Second Quarter --------------------------------------------- PT Aneka Tambang Tbk's consolidated second quarter 2006 sales revenues rose 108% to IDR1.49 trillion from IDR715 billion in the same quarter last year, resulting in first half consolidated sales revenues of IDR2.05 trillion, the company said in its quarterly report to shareholders for the three months ending June 30, 2006. The increase is largely due to higher sales volumes and prices of ferronickel, as the new smelter FeNi III began to produce nickel during commissioning, and high-grade nickel ore due to output from the new Mornopo mine. In the first half of 2006, the nickel segment which consists of ferronickel, high grade nickel ore, low grade saprolite ore and low grade nickel ore remained the biggest contributor, totaling IDR1,724 billion or 84% of Antam's consolidated net sales. Meanwhile, the gold segment, which includes sales from gold, silver and precious metals refinery services contributed 12% of net sales, at a value of IDR237 billion. Antam's ferronickel production increased 196% to 4,153 tonnes of nickel contained in ferronickel including production from the new FeNi III smelter, which had yet to reach commercial operations but was operating at or near full capacity from about the middle of May. Exploration costs in the second quarter of 2006 reached IDR21 billion, 15% higher than IDR18.2 billion spent in the same quarter last year, due to Antam's continued exploration on lateritic nickel (IDR17 billion), gold (IDR3 billion) and bauxite (IDR1 billion). Business Developments in the Second Quarter On May 2, 2006, Antam disclosed that it signed a joint venture agreement on March 31, 2006, to build a Chemical Grade Alumina plant at Tayan, West Kalimantan, Indonesia. Among other things, the agreement is for Antam and its partners to resolve outstanding issues by certain deadlines, to undertake further preparatory work, and to update a Bankable Feasibility Study completed in 2003. The joint venture agreement was signed in Tokyo by senior executives of Antam and its international partners, Showa Denko K.K. of Japan, Straits Trading Amalgamated Resources Private Limited of Singapore, and Marubeni Corporation of Japan. On May 30, 2006, Antam also announced the results of its Annual General Meeting of Shareholders. Among the resolutions of the AGM, it was resolved to pay a cash dividend in the amount of IDR286.3 billion, or 34% of Antam's net profits after tax for the year ended December 31, 2005, which is equivalent to IDR150.05 per share. First Quarter Results The company's profit statements and balance sheet are not yet available. In the first quarter of 2006, Antam reported an IDR131.03 billion net income on IDR563.24 billion in sales. As of March 31, 2006, the company reported a liquid position with current assets and current liabilities amounting to IDR1.84 trillion and 386.72 billion, respectively. Total assets as of end-March 2006 stood at IDR5.99 trillion while total liabilities were at IDR2.45 trillion. About Aneka Tambang PT Aneka Tambang Tbk -- http://www.antam.com/-- mines, processes, develops, and explores natural deposits. The company operates six mines. They are located in Riau (bauxite), Sulawesi and Maluku (nickel), Central Java (iron sand), and West Java (gold). The company also operates a precious metal refinery and a geology unit in Jakarta. * * * As the Troubled Company Reporter - Asia Pacific reported on December 19, 2005, Moody's Investors Service had, on Dec. 15, 2005, changed the outlook for Aneka Tambang's local currency B1 corporate family rating to positive from stable. The B2 foreign currency bond rating remains unchanged with a positive outlook, which is in line with the positive outlook for Indonesia's sovereign rating. Standard & Poor's Ratings Services gave Aneka Tambang 'B' long- term local and foreign issuer credit ratings, effective Aug. 26, 2003. INCO LTD: Teck Cominco Withdraws Proposed Equity Offering --------------------------------------------------------- Teck Cominco Limited will not be amending its outstanding offer to acquire all of the outstanding common shares of Inco Limited. Teck's offer for Inco expired at midnight (Toronto time) on August 16, 2006. "While we received strong support from a large number of institutional investors, in the end we could not complete the proposed equity offering on terms that made sense for Teck Cominco," Teck Cominco President and Chief Executive Officer Don Lindsay said. "Accordingly, we will not amend or extend our bid for Inco. We will now pursue some of the many other opportunities we see to grow Teck Cominco and to add value for our shareholders, both through enhancements to our existing assets and through acquisitions." About Teck Cominco Headquartered in Vancouver, Canada, Teck Cominco Limited (TSX:TCK.A; TCK.B; NYSE: TCK) -- http://www.teckcominco.com/-- is a diversified mining company. The Company focuses in the production of zinc and metallurgical coal and also produces copper, gold and specialty metals. About Inco Ltd. Headquartered in Sudbury, Ontario, Inco Limited (TSX, NYSE:N) -- http://www.inco.com/-- produces nickel, which is used primarily for manufacturing stainless steel and batteries. Inco also mines and processes copper, gold, cobalt, and platinum group metals. It makes nickel battery materials and nickel foams, flakes, and powders for use in catalysts, electronics, and paints. Sulphuric acid and liquid sulphur dioxide are produced as byproducts. The company's primary mining and processing operations are in Canada, the U.K., and Indonesia. * * * Inco Limited's 3-1/2% Subordinated Convertible Debentures due 2052 carry Moody's Investors Service's Ba1 rating. INCO LTD: Board Says CVRD Offer Could Be a Superior Proposal ------------------------------------------------------------ Inco Limited gave its response to the offer commenced by Companhia Vale do Rio Doce to purchase for cash all of the outstanding common shares of Inco. Inco's Board of Directors carefully reviewed and considered the CVRD Offer, in consultation with its financial and legal advisors and in the context of its legal obligations under its existing Combination Agreement with Phelps Dodge Corporation. Subject to certain exceptions, the Combination Agreement between Inco and Phelps Dodge requires that Inco's Board of Directors continue to recommend that Inco shareholders vote in favor of the arrangement between Inco and Phelps Dodge unless it determines that an acquisition proposal, in this case, the CVRD Offer, constitutes a "superior proposal" and certain other requirements are met. The Board did not make the determination that the CVRD Offer is a "superior proposal" for purposes of the Combination Agreement and accordingly continues to recommend that Inco shareholders vote in favor of the proposed combination between Inco and Phelps Dodge. However, the Board did determine, based on information then available and after consultation with its advisors, that the CVRD Offer could reasonably be expected to result in a "superior proposal" for purposes of the Combination Agreement. This determination allows Inco to engage in discussions and negotiations with CVRD pursuant to the terms of the Combination Agreement and, accordingly, the Board has authorized Inco's senior management and its advisors to engage in such discussions and negotiations. The CVRD Offer is open for acceptance until Sept. 28, 2006 and is subject to a number of conditions. Accordingly, there is no necessity for Inco shareholders to take any action with respect to the CVRD Offer at this time. At this time, the Inco Board of Directors has determined to remain neutral and to make no recommendation to Inco shareholders in respect of the CVRD Offer. About CVRD Headquartered in Rio de Janeiro, Brazil, Companhia Vale do Rio Doce -- http://www.cvrd.com.br/-- engages primarily in mining and logistics businesses. It engages in iron ore mining, pellet production, manganese ore mining, and ferroalloy production, as well as in the production of nonferrous minerals, such as kaolin, potash, copper, and gold. About Inco Ltd. Headquartered in Sudbury, Ontario, Inco Limited (TSX, NYSE:N) -- http://www.inco.com/-- produces nickel, which is used primarily for manufacturing stainless steel and batteries. Inco also mines and processes copper, gold, cobalt, and platinum group metals. It makes nickel battery materials and nickel foams, flakes, and powders for use in catalysts, electronics, and paints. Sulphuric acid and liquid sulphur dioxide are produced as byproducts. The company's primary mining and processing operations are in Canada, the U.K., and Indonesia. * * * Inco Limited's 3-1/2% Subordinated Convertible Debentures due 2052 carry Moody's Investors Service's Ba1 rating. MEDCO ENERGI: Posts US$55.1-Million Net Income in First Half ------------------------------------------------------------ PT Medco Energi Internasional Tbk posted a US$55.1-million net income for the first six months ended June 30, 2006, the company reveals in a press release. According to Medco Energi, the result translates to a 15.4% improvement over the same period in 2005, which recorded a US$47.7-million net income. The Company says that the increase was due to: * the increase of average oil and gas prices; * the 7.3% increase in the average oil lifting for the first six months of 2006; and * the gain in the swap transactions which resulted from the strengthening of the Indonesia currency at June 30, 2006, compared to a year ago. Revenues came in at US$372.0 million, a 26.4% increase from the previous corresponding period's US$294.4 million. Oil and gas revenues increased 35.2% to US$269.1 million, while drilling operation and related services contributed US$43.0 million. Subsidiaries' revenues contributed US$46.15 million, a 12.1% decreased compared to the US$52.4 million in 2005. Exploration expenses increased to US$22.5 million for the first half of 2006, while operating expenses increased US$59.5 million from US$45.2 million a year ago. Operating profit for the six months ending June 30, 2006, amounted to US$134.6 million, a 7.9% increase from the June 30, 2005 operating profit of US$124.78 million. Medco Energi's financial statements include these key figures: PT Medco Energi Internasional Tbk Financial Highlights (US$ in millions) 1H2006 1H2005 %Changes -------- -------- -------- Revenue 372.0 294.4 26.4 Gross Profit 194.0 169.9 14.2 Total Assets 1,757.6 1,402.2 25.3 Total Liabilities 1,203.5 885.5 35.9 Total Equity 554.1 516.6 7.3 Income from Operations 134.6 124.8 7.9 Net Income 55.1 47.7 15.4 Medco Energi's first half 2006 financial report is available for free at: http://bankrupt.com/misc/MEDCOENERGY_1h2006.pdf About PT Medco Energi Headquartered in Jakarta, Indonesia, PT Medco Energi Internasional Tbk -- http://www.medcoenergi.com-- is engaged in the exploration, production of and support services for oil and natural gas and other energy industries, including onshore and offshore drilling. Other activities include production of methanol and its derivatives and raising funds by issuing debt securities and marketable securities. Exploration and production of oil and gas accounted for 78% of 2001 revenues; drilling services, 15%; and methanol, 7%. Medco Energy also has operations in the United States and in Libya. * * * The Troubled Company Reporter - Asia Pacific stated on May 10, 2006 that Moody's Investors Service has affirmed the B1 local currency corporate family rating of PT Medco Energi Internasional. At the same time, Moody's affirmed the B2 the senior unsecured bond rating of MEI Euro Finance Ltd, which is guaranteed by Medco. The outlook was downgraded to negative in August 2006. Another TCR-AP report on May 10, 2006 said that Standard & Poor's Ratings Services has revised its outlook on Indonesia's PT Medco Energi Internasional Tbk. to negative from stable. Standard & Poor's also affirmed its "B+" corporate credit rating on Medco, an Indonesia-based oil and gas exploration and production company. ========= J A P A N ========= FALCONBRIDGE LTD: Xstrata Acquires 67.8% of the Company's Shares ---------------------------------------------------------------- Xstrata plc has disclosed that 257,700,100 common shares of Falconbridge Limited had been validly deposited to Xstrata's offer to acquire all Falconbridge common shares not already owned by the company. Xstrata has taken up and accepted for payment all shares tendered, which represent approximately 67.8% of the issued and outstanding Common Shares on a fully diluted basis. Xstrata now beneficially owns 349,922,526 Common Shares or approximately 92.1% of the issued and outstanding Common Shares on a fully diluted basis. Payment will be made to shareholders who have tendered their shares on or before Aug. 17, 2006. In line with Xstrata's intention to acquire 100% of Falconbridge as soon as possible, the company has also extended the expiry date of its all-cash offer to enable the remaining Falconbridge shareholders to receive prompt payment of the same CND$62.50 per share consideration under the offer. The offer will now expire at midnight (Vancouver time) on Aug. 25, 2006. All other terms and conditions of Xstrata's offer described in its offer and offering circular dated May 18, 2006, as varied, amended, and supplemented, remain unchanged. Xstrata intends to acquire all Common Shares not tendered to the offer following the expiry of the offer pursuant to a compulsory acquisition or subsequent acquisition transaction. Xstrata has now taken effective control of Falconbridge and both management teams are working closely together to facilitate a smooth and swift integration of the two businesses. Falconbridge shareholders with questions or requests for copies of the documents, may contact: Kingsdale Shareholder Services Inc. Tel: 1-866-639-7993 Banks and brokers should call at 416-867-2272. About Xstrata Xstrata plc -- http://www.xstrata.com/-- is a major global diversified mining group, listed on the London and Swiss stock exchanges. The Group is and has approximately 24,000 employees worldwide, including contractors. Xstrata does business in six major international commodities markets: copper, coking coal, thermal coal, ferrochrome, vanadium and zinc, with additional exposures to gold, lead and silver. The Group's operations and projects span four continents and nine countries: Australia, South Africa, Spain, Germany, Argentina, Peru, Colombia, the U.K. and Canada. About Falconbridge Headquartered in Toronto, Ontario, Falconbridge Limited (TSX:FAL) (NYSE:FAL) -- http://www.falconbridge.com/-- is a leading copper and nickel company with investments in fully integrated zinc and aluminum assets. Its primary focus is the identification and development of world-class copper and nickel orebodies. It employs 14,500 people at its operations and offices in 18 countries. The Company owns nickel mines in Canada and the Dominican Republic and operates a refinery and sulfuric acid plant in Norway. It is also a major producer of copper (38% of sales) through its Kidd mine in Canada and its stake in Chile's Collahuasi mine and Lomas Bayas mine. Its other products include cobalt, platinum group metals, and zinc. Falconbridge has sales offices in Beijing, China, and Tokyo, Japan, as well as a recycling plant in Penang, Malaysia. * * * Falconbridge's CDNUS$150 million 5% convertible and callable bonds due April 30, 2007, carries Standard & Poor's BB+ rating. FUJI HEAVY: Toyota May Provide Cars to Sell in Europe ----------------------------------------------------- Toyota Motor Corp. is keen on supplying small cars to Fuji Heavy Industries Ltd to sell in Europe, Reuters reports, citing the Daily Yomiuri. Toyota, which is Fuji Heavy's largest shareholder, is looking at providing cars based on its Yaris model and on another model sold only in Europe, Yomiuri relates. According to Reuters, the move would help Fuji Heavy, which lacks a strong small car model in a market where cars must meet new tighter emission standards. It would also help Toyota cut costs by boosting volume sales. Fuji Heavy, in which Toyota took an 8.7% stake from General Motors Corp. last year, is aiming to redefine itself as a premium carmaker but has failed to inspire sufficient sales. As reported by the Troubled Company Reporter - Asia Pacific on August 18, 2006, the Company's market share in Japan slipped to 4.2% in the first seven months of the year from 4.5% last year, as Japanese consumers are shifting to minicars. In a bid to curb plunging sales, Fuji Heavy has earmarked JPY60 billion, or US$515 million, to restructure its sales network in Japan, TCR-AP reported. Aside from refurbishing and modernizing its showrooms, the Company is also looking at introducing four new models in the next two years to regain its market share. About Fuji Heavy Industries Japan-based manufacturing company Fuji Heavy Industries Ltd is engaged in the production, sale, repair and leasing of automobile and transportation-related products. The Company distributes its products in both domestic and overseas markets. As of March 31, 2006, Fuji Heavy Industries has 115 subsidiaries and nine associated companies. The Company has a global network. Standard & Poor's Ratings Services lowered its long-term credit rating on Fuji Heavy Industries Ltd. to 'BB+' from 'BBB-' based on diminished prospects for a recovery in profitability and cash flow over the near term along with intensifying competition in the global auto industry. JAPAN AIRLINES: To Hike Fuel Surcharges on Overseas Routes ---------------------------------------------------------- In a bid to offset skyrocketing jet fuel costs, Japan Airlines Corporation has decided to raise fuel surcharges on international flights by JPY700 to JPY5,600 starting October 1, 2006, The Japan Times Online reports. According to The Japan Times, the carrier expects the increase in fuel surcharges to generate JPY13 billion in revenue for the six months to March 2007. Japan Airlines has been increasing surcharges on international flights since introducing them in January 2005, The Japan Times relates. After the hike, ticket prices will run from JPY2,000 to JPY17,100 per ticket from the current rates of between JPY1,300 and JPY11,500. As reported by the Troubled Company Reporter - Asia Pacific on August 9, 2006, Japan Airlines is increasing rates for of its international flights for the second time this year in order to cope with rising aviation fuel prices and garner a profit for the current fiscal year. The Company's Senior Vice-President Tetsuya Takenaka earlier explained that cost-cuts and efficient fuel use is not enough to offset losses, the TCR-AP disclosed. The Japan Times says that Japan Airlines has been trying to reduce fuel consumption and cut purchasing costs by hedging. It is also considering selling off assets to cover the higher fuel prices. In addition, the carrier has also decided to abandon loss-making routes and cut flight frequencies on certain destinations. The carrier will suspend flights between Nagoya and Manila and cut the number of flights between Tokyo and Chicago starting Oct. 29, 2006. Instead, it will add flights on its profitable routes to Southeast Asia and China, The Japan Times relates. About Japan Airlines Tokyo-based Japan Airlines International Company, Limited -- http://www.jal.com/en/-- was created as a result of the merger of Japan Airlines and Japan Air Systems to boost domestic coverage. As of March 31, 2006, JAL's debt amounted to JPY1.93 trillion, whereas shareholders' equity stood at JPY148.1 billion. The Troubled Company Reporter - Asia Pacific stated on May 12, 2006, that JAL posted a consolidated net loss of JPY47.24 billion for the business year 2005 ended March 31, 2006, due to safety-related incidents in 2005 that caused passengers to shift to its rival All Nippon Airways, and an increase in aviation fuel costs. * * * Fitch Ratings Tokyo analyst Satoru Aoyama said that the Company's debt obligations and expenses for new aircraft have placed it in an unfavorable financial position. Fitch assigned a BB- rating on the Company, which is three notches lower than investment grade. Moody's Investors Service gave Ba3 senior unsecured and issuer ratings for Japan Airlines International Co., Ltd., as well as its Ba3 issuer rating for Japan Airlines Domestic Co., Ltd. On July 20, 2006, Standard & Poor's Ratings Services had affirmed its B+ long-term corporate credit and senior unsecured debt rating on the Company. LIVEDOOR: Court to Begin Former President's Trial Next Month ------------------------------------------------------------ The Tokyo District Court has decided to open the trial of former Livedoor Company president Takufumi Horie over securities laws violation charges, Bloomberg News reports. The first hearing will be conducted on September 4, 2006, to be followed by 25 more hearings scheduled to be completed by November 28 this year, Bloomberg says. According to Crisscross News, the Court will hold one to three hearings a week to finish all 26 within a three-month period. The schedule was agreed upon on August 18, 2006, during the ninth session of conferences by Court officials, prosecutors and Mr. Horie's lawyers under the Court's pretrial proceeding. As reported by the Troubled Company Reporter - Asia Pacific on January 18, 2006, Mr. Horie and other Livedoor directors were found to have conspired to cover up the Company's JPY310-million pre-tax loss for the business year ended September 2004, by tampering financial accounts to instead show an inflated pre-tax profit of JPY5.03 billion. Moreover, Mr. Horie and the Company executives allegedly relayed false information on a merger, with the intent to boost the stock price of Livedoor's subsidiary, Livedoor Marketing Co. Livedoor's FY04 financial report included proceeds of JPY1.58 billion from fake deals with two firms that the Company was scheduled to acquire. Some JPY1.3 billion of the proceeds came from undue accounting procedures such as window-dressing, the TCR-AP said. The TCR-AP revealed on May 30, 2006, that four former Livedoor directors, two external accountants, and both the Company and its unit, Livedoor Marketing, pled guilty on May 26, to charges of accounting fraud and violating the Securities Exchange Law. However, Mr. Horie denied the charges against him, saying that he did not know everything his colleagues were doing. He was released in April from detention on bail of JPY300 million. The TCR-AP further reported on July 28, 2006, that Mr. Horie's defense lawyers admitted on July 26, 2006, that the Company was partially involved in accounting fraud, but claimed that Mr. Horie was not aware of the illegal activities. * * * Headquartered in Tokyo, Japan, Livedoor Company, Limited -- http://corp.livedoor.com/en/-- is involved in out portal site "livedoor," financial business, corporate web solutions, data center and IP telephony business. The Troubled Company Reporter - Asia Pacific reported that in January 2006, Livedoor ex-president and founder Takafumi Horie, and other Livedoor directors were investigated over allegations that they have conspired to cover up the Company's JPY310- million pre-tax loss for the financial year ended September 2004 by doctoring financial accounts to instead show an inflated pre- tax profit of JPY5.03 billion. Following the accounting scandal surrounding the Company in January 2006, Livedoor's stock price plunged to JPY94 per share from over JPY300 per share. Livedoor was delisted from the Tokyo Stock Exchange on April 14, 2006. SOFTBANK CORPORATION: Inks Joint Venture Pact with SBI ------------------------------------------------------ Softbank Corporation and SBI Holdings Incorporated have agreed to form a JPY200-million joint venture for the operations of a new financial data portal, The Japan Times reports. A Softbank official told The Japan Times that the two companies are looking to set up a portal that will cover all kinds of financial products and services by combining business know-how. Softbank presides over a wide array of telecom operations, including broadband, fixed-line and mobile telephone services. Its group firms also operate in the video and online game businesses. SBI Holdings, on the other hand, is known for its investment expertise in various financial products, including securities, insurance and commodity futures. According to The Japan Times, the 50-50 joint venture is primarily aimed at maintaining friendly ties between the two firms after they severed ties on August 3, 2006, when a Softbank subsidiary disposed of its entire shareholding in SBI. The joint venture, which has not yet been named, will put Softbank President Masayoshi Son and SBI Chief Executive Officer Yoshitaka Kitao on its board, the report says. About Softbank Corp. Based in Tokyo, Japan, Softbank Corporation -- https://www.softbank.co.jp/ -- is a leading Japanese telecommunications and media corporation, with operations in broadband, fixed-line telecommunications, e-Commerce, Internet, broadmedia, technology services, finance, media and marketing, and other businesses. SoftBank was established on September 3, 1981, and had a market capitalization of approximately US$32.8 billion at 28 February 2006. SoftBank's corporate profile includes various other companies such as Japanese broadband company Cable & Wireless IDC, cable company BB-Serve, and gaming company GungHo Online Entertainment. On March 17, 2006, SoftBank announced its agreement to buy Vodafone Japan, giving it a stake in Japan's US$78 billion mobile market. * * * According to a Troubled Company Reporter - Asia Pacific report on April 18, 2006, Standard & Poor's Rating Services agency affirmed its 'BB-' long-term corporate credit rating on the Company, with negative implications. Moody's Investors Service had, on August 9, 2006, upgraded Softbank Corp.'s stable long-term debt rating and issuer rating to Ba2 from Ba3, concluding a review initiated on March 17, 2006, when the Company announced that it would acquire a 97.7% stake in mobile phone giant Vodafone Group's Japanese unit, Vodafone K. K. ========= K O R E A ========= DAEWOO ELECTRONICS: Five Firms Submit Final Offer ------------------------------------------------- Five firms have submitted their final bids for the acquisition of home appliance and television maker Daewoo Electronics Co. Ltd, The Financial Express relates. A source privy to the matter disclosed that the bidders consist of one domestic investor and four foreign companies, including India's Videocon Industries Ltd, Financial Express says. Although the source would not name the four other bidders, local newspapers had named three candidates as top global insurer AIG, private equity firm Newbridge Capital and South Korean venture capital KTB Network Company Limited, DNA India relates. The Troubled Company Reporter - Asia Pacific reported on June 29, 2006, that Daewoo Electronics' creditors have short- listed five bidders to conduct due diligence on the Company. Daewoo Electronics is being sold by its domestic creditors, who own 97% of the unlisted firm. The deal value is not known but earlier media reports suggested the sale could fetch up to US$1 billion. Reuters says that Daewoo's creditors would name a preferred bidder, along with one or two reserve bidders, late this week. ABN AMRO, Woori Investment & Securities Co. and Samil PricewaterhouseCoopers are managing the sale. About Daewoo Electronics Headquartered in Chung-Gu, Seoul, Daewoo Electronics Corporation -- http://www.dwe.co.kr/-- is the third largest Korean consumer electronics company. It manufactures and sells a variety of products including televisions, DVD players, refrigerators, air conditioners, washing machines, microwaves, vacuum cleaners and car audio systems in over 105 countries. The Troubled Company Reporter - Asia Pacific reported on November 14, 2005, that creditors of Daewoo Electronics have placed the firm for sale for US$1 billion. ABN Amro, PricewaterhouseCoopers and Woori Bank were appointed to find a buyer for the business. According to the TCR-AP, Daewoo Electronics has been under a debt workout program since January 2000, months after its parent group -- the Daewoo Group -- collapsed under debts of nearly US$80 billion in 1999. Daewoo Electronics Corp. posted a KRW94-billion loss in 2005 after sales declined 6.4%. The net loss compares with the KRW30-billion profit the company posted in 2004. Sales fell to KRW2.2 trillion from KRW2.3 trillion in 2004. =============== M A L A Y S I A =============== AYER HITAM: Unit Inks Joint Venture Deal to Develop Land -------------------------------------------------------- On August 18, 2006, Ayer Hitam Tin Dredging Malaysia Berhad's wholly owned subsidiary, AHT Technology Sdn Bhd, entered into a joint venture agreement with Janlim Holdings (M) Sdn Bhd for the development of a land property into a residential project comprising of residential units together with the necessary facilities, infrastructure and amenities on a 50:50 joint venture basis. Janlim Holdings is the registered proprietor and owner of the land. The category land use of the land is agriculture, which has been approved and converted to development land with a leasehold tenure of 99 years, pending payment of the conversion premium by Janlim Holdings. The land is currently free from all encumbrances and charges. The JV Agreement is expected to complement Ayer Hitam Group's effort to continue to focus and expand on its core business activity in property development. It will allow the Ayer Hitam Group to participate in a property development project, which is expected to contribute to its future earnings without having to raise funds to acquire land. The Agreement will not have any effect on the share capital and substantial shareholdings of Ayer Hitam as it does not involve any issuance of new shares in the Company. However, Ayer Hitam's board of directors expects that it will contribute positively to the future long terms earnings of the Group. About Ayer Hitam Headquartered in Kuala Lumpur, Malaysia, Ayer Hitam Tin Dredging Malaysia Berhad -- http://www.ahtin.com.my/-- is involved in property development and the trading of promotional products and services in Malaysia. The Company is also engaged in the trading of uninterrupted power supply equipment and magnetic fuel treatment systems and the provision of investment holding, nominee services, hotel development and management and renovation services. The Company has been incurring losses in the past years and has defaulted on several loan facilities. As of May 31, 2006, Ayer Hitam's payment defaults have reached MYR40 million. The Company has presented a restructuring proposal, which was rejected by the Securities Commission after determining that the Scheme is not a comprehensive proposal capable of resolving all the financial issues faced by the Company. BIMB HOLDINGS: Bourse Grants More Time to Release 4Q Results ------------------------------------------------------------ Bursa Malaysia Securities Berhad, on August 17, 2006, granted five more market days immediately after receipt of the relevant authorities' approval for BIMB Holdings Berhad to release its fourth quarter results for the financial period ended June 30, 2006. The extension is subject to the finalization and submission of the draft audited accounts for the financial year ended June 30, 2006, of its wholly owned subsidiary, Bank Islam Malaysia Berhad to Bank Negara Malaysia by August 30, 2006. About BIMB Holdings Headquartered in Kuala Lumpur, Malaysia, BIMB Holdings Berhad -- http://www.bankislam.com.my/-- is an investment holding company, which operates along Islamic principles. The Company was incorporated in Malaysia on March 20, 1997, and was listed on the Main Board of the Kuala Lumpur Stock Exchange on September 16 in the same year. Core subsidiaries of the Group are involved in various Islamic financial service activities including banking, stock-broking, leasing and other related services. The firm has incurred substantial losses since 2000 due to huge financing costs and high provisions for loss-making offshore units. For the quarter ended March 31, 2006, the Group incurred a pre-tax loss of MYR67,494,000 on a revenue of MYR300,103,000, LIEN HOE: Pre-tax Loss Widens to MYR8.45 Mil. in 2nd Quarter ------------------------------------------------------------ Lien Hoe Corporation Berhad has submitted for public release its financial report for the second quarter ended June 30, 2006. For the quarter under review, the Group posted a higher revenue of MYR32,281,000, as compared with MYR23,517,000 revenue in the same quarter last year. The improvement is mainly due to higher earnings from the construction division. However, loss before tax has increased to MYR8,450,000 in the current quarter from MYR8,122,000 in the quarter ended June 30, 2005. The higher loss is mainly due to soaring finance cost. The Company has been operating at a loss since 1999. As of June 30, 2006, the Company has accumulated losses of MYR182,880,000. The Company's June 30, 2006, balance sheet revealed strained liquidity with current assets of MYR72,352,000 available to pay current liabilities of MYR342,761,000 coming due within the next 12 months. The balance sheet also showed total assets of MYR650,487,000, total liabilities of MYR457,551,000 and total shareholders' equity of MYR192,936,000. There was no dividend recommended or paid for the second quarter. The Group expects to continue to operate at a loss for this financial year because of high finance costs. To reduce its borrowings, the Group is looking at various avenues including the disposal of assets. The Company's Second Quarter Report is available for free at: http://bankrupt.com/misc/tcrap_lienhoe081906.xls About Lien Hoe Corporation Headquartered in Petaling Jaya, Selangor, Malaysia, Lien Hoe Corporation Berhad -- http://www.lienhoe.com.my/home.htm-- is engaged in building and civil works, property investment, operation of hotel operations and property development. The Company is also engaged in the management of food court, car park operations and property and investment holding. The Group principally operates in Malaysia. Lien Hoe Corporation Berhad and its lenders have successfully entered into a debt restructuring agreement on September 10, 1999. The proposed debt restructuring involves the restructuring of debts, totaling MYR212.062 million, owed by Lien Hoe and one of its subsidiaries, Lien Hoe Resort Sdn Bhd, to creditors. Lien Hoe also implemented a capital reduction exercise as part of its restructuring. The Company has been operating at a loss since 1999. As of June 30, 2006, the Company has accumulated losses of MYR182,880,000. LIEN HOE: Lists and Quotes 1 Million New Shares ----------------------------------------------- Lien Hoe Corporation Berhad's additional 1,000,000 new ordinary shares of MYR1 each were granted listing and quotation on August 11, 2006. The new shares were derived from the conversion of MYR1,000,000 nominal value of 2% 2002/2007 irredeemable convertible unsecured loan stocks into 1,000,000 new ordinary shares. About Lien Hoe Corporation Headquartered in Petaling Jaya, Selangor, Malaysia, Lien Hoe Corporation Berhad -- http://www.lienhoe.com.my/home.htm-- is engaged in building and civil works, property investment, operation of hotel operations and property development. The Company is also engaged in the management of food court, car park operations and property and investment holding. The Group principally operates in Malaysia. Lien Hoe Corporation Berhad and its lenders have successfully entered into a debt restructuring agreement on September 10, 1999. The proposed debt restructuring involves the restructuring of debts, totaling MYR212.062 million, owed by Lien Hoe and one of its subsidiaries, Lien Hoe Resort Sdn Bhd, to creditors. Lien Hoe also implemented a capital reduction exercise as part of its restructuring. The Company has been operating at a loss since 1999. As of June 30, 2006, the Company has accumulated losses of MYR182,880,000. NAKAMICHI CORPORATION: Books MYR2.17-M Net Loss in 2nd Quarter -------------------------------------------------------------- Nakamichi Corporation Berhad has submitted for public release its financial report for the second quarter ended June 30, 2006. For the quarter under review, the Group booked a MYR7,004,000 revenue, an improvement from the MYR,819,000 revenue in the same quarter last year. The Group registered a net loss of MYR2,169,000 in the quarter ended June 30, 2006, compared to a net loss of MYR1,315,000 in the same quarter ended June 30, 2005. For the half-year, the Group achieved a sales turnover of MYR11,899,000 as compared with MYR7,025,000 achieved last year. The half-year net loss was MYR4,775,000 compared with a net loss of MYR3,024,000 for the same period last year. The Company has been suffering continuous losses since the first quarter of fiscal 2004. As of June 30, 2006, the Company recorded an accumulated loss figure of MYR31,193,000. As of June 30, 2006, the Company's balance sheet showed current assets of MYR29,804,000 available to pay current liabilities of MYR24,291,000. The balance sheet also revealed total assets of MYR87,011,000 and total liabilities of MYR24,291 resulting into shareholders' equity of MYR62,720,000. There was no dividend recommended or declared for the period under review. The Company's Second Quarter Report is available for free at: http://bankrupt.com/misc/tcrap_nakamichicorp081806.pdf About Nakamichi Corp. Nakamichi Corporation Berhad -- http://www.nakamichi.com/-- is a Malaysia-based company that is principally engaged in the manufacture and marketing of audiovisual and multimedia equipment. The Company's products are marketed and sold worldwide through a distribution network spanning Asia, Europe, North America, South America, Africa, the Middle East, the Near East and Australia. The Company has been suffering continuous losses since the first quarter of fiscal 2004. As of June 30, 2006, the Company recorded an accumulated loss figure of MYR31,193,000. POLYMATE HOLDINGS: Given Until November to Submit Rehab Plan ------------------------------------------------------------ Bursa Malaysia Securities Berhad, on August 16, 2006, granted Polymate Holdings Berhad another three months until November 30, 2006, to submit its regularization plan pursuant to Bursa Malaysia Securities Berhad's Listing Requirements. The Troubled Company Reporter - Asia Pacific reported on July 27, 2006, that the Bourse, on July 24, rejected Polymate's request to extend the deadline for submission of its regularization plan until January 31, 2007. The Company immediately filed an appeal against the Bourse's rejection of the application. The TCR-AP further reported on August 9, 2006, that the Company's securities were suspended on August 7, due to its failure to submit its regularization plan within the stipulated timeframe. The Bourse warned that it may take delisting procedures against Polymate if the Company fails to comply with the Listing Requirements. About Polymate Holdings Headquartered in Selangor Malaysia, Polymate Holdings Berhad -- http://www.polymate.com.my/-- is engaged in the manufacturing and marketing of lead acid batteries for the automotive and related industries. It is also engaged in the manufacturing and dealing of plastic articles and products, corrugated carton boxes and related products, manufacturing and trading of door closers and trading of building materials, investment holding, and provision of corporate and financial support services. The Group operates in Malaysia, Australia, New Zealand, and Europe. Polymate is negotiating with its lenders to restructure the Group's credit facilities and is working on various schemes to regulate its financial position. PROTON HOLDINGS: To Declare Final Dividend ------------------------------------------ Proton Holdings Berhad intends to pay a final dividend of 5% per share tax exempt on October 13, 2006. Parties-in-interest are required to submit their proofs of claim by September 14, 2006. About Proton Holdings Headquartered in Selangor Darul Ehsan, Malaysia, Perusahaan Otomobil Nasional Berhad or Proton Holdings Berhad -- http://www.proton-edar.com.my/-- is engaged in manufacturing, assembling, trading and provision of engineering and other services in respect of motor vehicles and related products. Its other activities include property development, trading of steel and related products, engine and technologies research, development of automotive related technologies, investment holding, importation and distribution of motor vehicles, related spare parts and accessories, holds intellectual property, provides engineering consultancy, operates single make race series and carries out specific engineering contracts. The Group's operations are carried out in Malaysia, England, Australia, Socialist Republic of Vietnam and the United States of America. Proton was reported to be among Malaysia's worst-performing companies in 2005, after competition from foreign carmakers and a lack of new models lost the firm local market share and subsequently led it into a loss. It has since brought in a new chief, sold its loss-making MV Agusta motorbike firm and pledged to find a new technology partner. The Company has been under increasing pressure, with its share of domestic sales falling to 44% from 75% over the past decade. The Troubled Company Reporter - Asia Pacific reported on May 4, 2006, that Proton was expected to finalize a recovery plan and seal an alliance with a strategic partner by the end of this year. ===================== P H I L I P P I N E S ===================== BANCO DE ORO: Philippines' Best for 2005, Asiamoney Says -------------------------------------------------------- Banco de Oro Universal Bank and its wholly owned investment banking subsidiary BDO Capital & Investment Corp. were recently cited by Asiamoney magazine as the best in their respective fields for 2005. BDO Universal Bank was adjudged "Best Domestic Bank", while BCIC received the "Best Equity House" and "Best Debt House" awards. This was a first-ever sweep of all country awards by a single banking group. To come up with the best domestic bank, best equity house and best debt house in each country, Asiamoney's editorial team conducts a period of intensive market research, discussions with market experts, investors, business advisors and top-ranked research analysts. Asiamoney's editorial team conducts an extensive assessment of each institution using these criteria before deciding the winners, including: (a) strength of an institution's financial performance, (b) financial and expansion strategy, (c) market penetration, (d) product innovation, and (e) customer satisfaction As of March 31, 2006, Banco de Oro was the Philippines' 5th largest bank with total assets of PHP239 billion, and net loans of PHP87 billion. In terms of liquid assets, BDO ranked 4th largest with PHP120 billion. BDO Capital is the Philippines' 5th largest investment house, with total assets of PHP1.3 billion as of March 31, 2006. BCIC has led and participated in the major capital markets transactions for both the government and private corporations in 2005. Total combined debt issue and total equity issue was PHP132.5 billion in 2005. Asiamoney is a renowned regional publication providing leading coverage and analysis of the financial and investment markets in the Asia Pacific countries. About Banco de Oro Banco de Oro Universal Bank -- http://www.bdo.com.ph/-- provides a wide range of corporate, commercial and retail banking services in the Philippines, which include traditional loan and deposit products, as well as treasury, trust banking, investment banking, cash management, insurance, remittance, retail cash cards and credit card services. Banco de Oro is a member of the SM Group of Companies, one of the Philippines' largest conglomerates, and is currently ranked among the top 10 banks in the Philippines in terms of assets, capital, deposits and loans. Its asset quality indicators (non- performing loans & non-performing assets) are among the lowest in the industry. * * * Fitch Ratings Ltd. had on July 27, 2006, upgraded Banco de Oro Universal Bank's Support rating to '3' from '4', and affirmed its Individual rating at 'C/D', following a review of the Bank. GLOBE TELECOM: Fitch Upgrades Foreign Currency IDR To 'BB+' ----------------------------------------------------------- Fitch Ratings upgrades Globe Telecom Inc.'s Long-term foreign currency Issuer Default Rating to 'BB+' from 'BB'. The Outlook is Stable. At the same time, Fitch upgrades Globe's senior unsecured debt instruments to 'BB+' from 'BB' while it also affirmed Globe's Long-term local currency IDR of 'BB+' with a Positive Outlook and National Long-term rating of 'AAA(phl)' with a Stable Outlook. The ratings action follows the announcement by Fitch that it has upgraded the Country Ceiling on the Republic of the Philippines to 'BB+' from 'BB'. Globe's foreign currency IDR and senior unsecured debt instrument ratings remain constrained by the sovereign Country Ceiling. On the other hand, Globe's Long-term local currency IDR is not constrained with the IDR effectively already exceeding the Republic of the Philippines' local currency IDR of 'BB+' with a Stable Outlook. PHILIPPINE LONG DISTANCE: Fitch Ups Issuer Default Rating to BB+ ---------------------------------------------------------------- Fitch Ratings upgrades Philippine Long Distance Telephone Company's Long-term foreign currency Issuer Default Rating to 'BB+' from 'BB'. The Outlook is Stable. At the same time, Fitch upgrades PLDT's global bonds and senior notes to 'BB+' from 'BB' while it also affirmed PLDT's Long-term local currency IDR of 'BBB-' with a Positive Outlook and National Long-term rating of 'AAA(phl)' with a Stable Outlook. The ratings action follows the announcement by Fitch that it has upgraded the Country Ceiling on the Republic of the Philippines to 'BB+' from 'BB'. PLDT's foreign currency IDR and senior debt instrument ratings remain constrained by the sovereign Country Ceiling. On the other hand, PLDT's Long-term local currency IDR is not constrained with the IDR already exceeding the Republic of the Philippines' local currency IDR of 'BB+' with a Stable Outlook. SAN MIGUEL: Shares Still Expensive, Analysts Say ------------------------------------------------ Even as San Miguel Corp. starts to harvest the fruits of its overseas expansion, many analysts still prefer other food companies by sales in the Philippines, Micheline R. Millar of Dow Jones reports. The report cites analysts as saying that San Miguel has a demanding valuation even as it underperformed in the overall market. The Company is more expensive on a price/earnings basis than other local or regional food manufacturers, the report adds. "We're still neutral on the stock, partly because of the price," says Macquarie Securities analyst Nadine Javellana, who notes the more widely traded Class B shares are already near her price target of PHP75 (US$1.46). "We may adjust our price target, but nothing's final yet. This is still a plan." Dow Jones notes that the median price target of five brokerage houses polled by Thomson Financial for San Miguel's Class B shares is PHP74.50. The paper also cites ATR Kim Eng Securities analyst Leo Venezuela, who has a "hold" on San Miguel, saying that compared with other Southeast Asian food-and-beverage makers, San Miguel looks pricey even after taking into account its historical premium as one of Asia's largest food companies. Mr. Venezuela explains, "San Miguel, being a regional food-and- beverage company, should be compared to counterparts in the region. He discloses that his estimate is regional food-and- beverage companies are trading at a P/E ratio of 14 times to 19 times. About San Miguel Corp. Headquartered in Manila, Philippines, San Miguel Corporation -- http://www.sanmiguel.com.ph/-- through its subsidiaries, operates food, beverage and packaging businesses. The Company's products include beer, wine and spirits, soft drinks, mineral water, chicken and pork products. San Miguel markets its products both in the domestic and overseas markets. The Company also manufactures glass, metal, plastic, paper and composites packaging products. A Troubled Company Reporter - Asia Pacific report on April 20, 2006, stated that Moody's Investors Service put a (P)Ba3 foreign currency rating on the proposed preferred stock issuance of San Miguel Corp. subsidiary San Miguel Capital Funding Limited. Moody's also placed a Ba1 local currency corporate family and indicative foreign currency senior unsecured rating on the Company. Standard & Poor's Ratings Services gave San Miguel Corp. a 'BB' foreign currency corporate credit rating and a 'B' rating to its proposed five-year benchmark non-callable, non-cumulative, non- voting, perpetual preferred shares to be issued by San Miguel Capital Funding. SAN MIGUEL: Posts PHP121.6-Billion Net Sales Revenue for 1H2006 --------------------------------------------------------------- San Miguel Corporation sustained its double-digit growth with consolidated net sales revenue for the first semester of 2006 reaching PHP121.6 billion, 21% higher than last year with the Food Group contributing a hefty 13% volume growth. San Miguel's consolidated operating income for the first-half amounted to PHP11.1 billion, 48% higher than last year. The consolidation of National Foods Limited contributed much to the increase, coupled with benefits from improved raw material costs and more rigorous cost containment measures. "Yet we reckon there are still costs to be managed related to National Foods, despite its significantly growing impact to the San Miguel Group," Micheline R. Millar of Dow Jones cites SMB Chief Financial Officer Ferdinand Constantino as saying. Consolidated net income for the first-half of the year totaled PHP43.6 billion, 15% higher than the 2005 level, primarily due to financing costs of PHP4.464 billion related also to National Foods' acquisition. For the first-half of 2006, the Company's total assets were at PHP328.737 billion and total liabilities were at PHP204.776 billion. The Company also posted total stockholders' equity of PHP143.961 billion. A full-text copy of the Company's Consolidated Financial Statements for the period ending June 30, 2006, is available for free at: http://www.pse.org.ph/html/ListedCompanies/pdf/2006/SMC_17Q_Aug2006.pdf About San Miguel Corp. Headquartered in Manila, Philippines, San Miguel Corporation -- http://www.sanmiguel.com.ph/-- through its subsidiaries, operates food, beverage and packaging businesses. The Company's products include beer, wine and spirits, soft drinks, mineral water, chicken and pork products. San Miguel markets its products both in the domestic and overseas markets. The Company also manufactures glass, metal, plastic, paper and composites packaging products. A Troubled Company Reporter - Asia Pacific report on April 20, 2006, stated that Moody's Investors Service put a (P)Ba3 foreign currency rating on the proposed preferred stock issuance of San Miguel Corp. subsidiary San Miguel Capital Funding Limited. Moody's also placed a Ba1 local currency corporate family and indicative foreign currency senior unsecured rating on the Company. Standard & Poor's Ratings Services gave San Miguel Corp. a 'BB' foreign currency corporate credit rating and a 'B' rating to its proposed five-year benchmark non-callable, non-cumulative, non- voting, perpetual preferred shares to be issued by San Miguel Capital Funding. * The Philippines' PHP17 Billion July Budget Deficit is on Track ---------------------------------------------------------------- The Philippines posted a budget deficit of PHP17 billion (US$331.7 million) in July 2006, ending a run of three consecutive monthly surpluses as the Government increased spending for infrastructure projects, Cecilia Yap of Bloomberg News reports. However, officials said that they are sticking with their targeted cap on the full-year budget deficit of PHP125 billion, the report says. "We should finish all infrastructure projects within the coming three months," Bloomberg cites budget secretary Rolando Andaya as saying. Bloomberg relates that for the first seven months of 2006, the budget deficit totaled PHP48.5 billion, narrower than a deficit of PHP82.6 billion in the year-earlier period and just 39% of the full-year cap. For the same period of 2005, the deficit was 46% of the full-year ceiling, Bloomberg recounts. Finance Secretary Margarito Teves asserts that the Country is on track with its revenue program and fiscal target. According to Mr. Teves, Congress's failure to pass the proposed 2006 budget partly contributed to the narrower deficit in the first seven months. That could change in coming months as Congress tackles President Gloria Macapagal Arroyo's request for a supplemental budget of PHP46 billion pesos for public-works and social-services projects, Bloomberg relates. Standard & Poor's Ratings Services had, on July 25, 2006, affirmed its 'BB-' senior unsecured rating on the Philippines' -- foreign currency BB-/Stable/B, local currency BB+/Stable/B -- bonds due in 2016 and 2031. ================= S I N G A P O R E ================= CELATO PTE: Enters Liquidation Proceedings ------------------------------------------ On August 15, 2006, Cultural Day Limited filed an application to wind up Celato (Singapore) Pte Ltd. The High Court of Singapore will hear wind-up petition on September 8, 2006, at 10:00 a.m. The Plaintiff's solicitors can be reached at: Rodyk & Davidson 80 Raffles Place #33-00 UOB Plaza 1 Singapore 048624 PDC Corp: June 30 Balance Sheet Reveals Stockholders' Deficit ------------------------------------------------------------- PDC Corporation has submitted to Singapore Stock Exchange its unaudited financial statement for the second quarter ended June 30, 2006. The financial report showed that the Group incurred a loss of SGD8,000 for the second quarter ended June 30, 2006, a significant decrease from a SGD152,000 loss in the corresponding period last year. For the quarter under review, the Group booked a net loss before tax and loss attributable to shareholders of approximately SGD0.37 million. The Group's June 30, 2006, balance sheet showed SGD833,000 in current assets available to pay SGD21,176,000 current liabilities coming due within the next 12 months. The Company has a net current deficit of SGD20,343,000. As of June 30, 2006, the Company's balance sheet revealed current assets of SGD48,000 and current liabilities of SGD4,082,000, resulting into a net current deficit of SGD4,034,000. The Group's total assets as of June 30, 2006, stands at SGD894,000 and total liabilities of SGD31,325,000, resulting into a stockholders' deficit of SGD20,431,000. Meanwhile, the Company's June 30, 2006, balance sheet revealed total assets of SGD110,000 and total liabilities of SGD4,183,000, resulting into a shareholders' deficit of SGD4,073,000. There was no dividend declared or recommended for the quarter under review. The Company's financial report is available for free at: http://bankrupt.com/misc/tcrap_pdccorp082106.pdf * * * Headquartered in Singapore, PDC Corporation Limited is principally involved in the provision of general construction, property development, real estate and investment. Its other activities are the provision of renovation work of any kind and for the demolition of any structure, trading, rental and servicing of industrial machinery and equipment and the distribution of multimedia products, home automation system, other high technology products and investment holding. Auditors Ernst & Young has expressed significant doubt on the Company's ability to continue as a going concern citing its liabilities and default in repayments. PDC CORP: Notes Changes to Board -------------------------------- PDC Corporation Ltd. has disclosed changes to its board of directors in a filing to the Singapore Exchange. Dr. Wang Kai Yuen, a non-executive and independent director, has been appointed Chairman of the Board of Directors of the Company from August 11, 2006. Gan Wui Koh is its new chief operation officer and an executive director, while John Chen Seow Phun as a non-executive and independent director. PDC Corp.'s new board now comprises of: 1. Dr. Wang Kai Yuen 2. Ms. Mah Peek Sze 3. Ms. Gan Wui Koh 4. Mr. Chang Mak Chow 5. Mr. See Tow Siew Chuan 6. Mr. Chua Teck Leong 7. Mr. Luar Eng Hwa 8. Mr. Chen Seow Phun * * * Headquartered in Singapore, PDC Corporation Limited is principally involved in the provision of general construction, property development, real estate and investment. Its other activities are the provision of renovation work of any kind and for the demolition of any structure, trading, rental and servicing of industrial machinery and equipment and the distribution of multimedia products, home automation system, other high technology products and investment holding. Auditors Ernst & Young has expressed significant doubt on the Company's ability to continue as a going concern citing its liabilities and default in repayments. VAN HIN FURNITURE: Court to Hear Wind-Up Petition on September 1 ---------------------------------------------------------------- An application to wind up Van Hin Furniture Company Pte Limited was filed by JTC Corporation on August 10, 2006. The High Court of Singapore is set to hear the wind-up petition on September 1, 2006, at 10:00 a.m. The Solicitors' Plaintiffs can be reached at: Tan Kok Quan Partnership No. 5 Shenton Way Level 29, UIC Building Singapore 068808 =============== T H A I L A N D =============== SRITHAI FOOD: SET Place Securities in Non-Performing Group ---------------------------------------------------------- The securities of Srithai Food & Beverages Public Co Ltd will be placed in the "Non-Performing Group" sector of the Stock Exchange of Thailand starting August 29, 2006. According to the SET, when the Company's shareholder equity is less than zero, the firm is given two years from the announcement of a possible delisting to rehabilitate itself. If a company is unable to resolve the causes of possible delisting within two years, the SET will remove its securities from the trading board and transfer them into the Non-Performing Group. If the company then resolves its problems in line with the SET's criteria, the SET will consider moving the securities back to be traded in its normal sector. Since June 9, 2004, the SET announced that SRI is subjected to rehabilitation plan under the REHABCO sector. The SET, after considering the latest financial statements of the Company submitted on August 15, 2006, said that SRI did not resolve its problems in line with the SET criteria. Thus, the SET will follow its resolutions by removing the securities of SRI from the trading board and transfer it into the Non-Performing Group from August 29 onward until the company has resolved its causes of possible delisting. * * * Headquartered in Amphoe Bang Phli Samut Prakarn, Thailand, Srithai Food & Beverage Public Co Ltd -- http://www.srithaifood.thailand.com/-- markets and manufactures seasoning, sauce, beverages, and personal care products. The Company had been under rehabilitation since 2005 and was placed under the REHABCO sector of the Stock Exchange of Thailand. On July 3, 2006, the Troubled Company Reporter - Asia Pacific reported that the SET reclassified the sector. Based on the reclassification, all 34 companies in the Rehabco Sector, had their securities reclassified. Srithai's securities were placed back to their original sector as they have been in the Rehabco Sector for less than two years. However, non-compliance -- NC -- and suspension -- SP -- signs was be posted on their shares until they meet the rehabilitation requirements. * Fitch Revises Country Ceilings for 40 Countries ------------------------------------------------- Fitch Ratings has, on August 17, 2006, revised upwards the Country Ceilings for 40 countries. The Country Ceilings are an effective cap on all foreign currency ratings of entities and transactions originating within each country. Fitch first publicly assigned Country Ceilings to countries with Fitch-rated sovereign issuers in June 2004. Country Ceilings capture the risk of exchange controls being imposed that would prevent or materially impede the private sector's ability to convert local into foreign currency and transfer to non-resident creditors transfer and convertibility risk. Country Ceilings are not ratings but rather a key analytical input and constraint on the foreign currency ratings of entities and transactions originating in the sovereign's jurisdiction. Increased integration of national economies into global production, trade and financial networks has reduced T&C risk, as evidenced by the experience of sovereign crises over the last decade. However, T&C and country risk more generally remain strongly correlated with sovereign risk and hence Country Ceilings are "notched" from the foreign currency rating of the sovereign. The ratings of transactions and non-sovereign entities that are above the sovereign and capped at the Country Ceiling may consequently exhibit more volatility at a given rating level than would normally be expected. The methodology for assigning Country Ceilings was recently updated as part of Fitch's regular and on-going review of its criteria and methodologies. As a result of the review of the Country Ceiling methodology, the Country Ceilings on 40 countries have been revised upwards -- out of a total of 99. The average "notch" uplift has been increased by around 50 basis points to a little over one notch above the sovereign foreign currency issuer rating. The upward revision to Country Ceilings since they were first assigned more than two years ago reflects greater liberalization of capital and exchange controls in many "emerging market" economies, such as Russia and Brazil, the strengthening of monetary and exchange rate regimes and the deepening integration of emerging markets in the global economy. Corporations, financial institutions and structured transactions can only be rated above the sovereign foreign currency issuer rating and up to the Country Ceiling if their stand-alone credit quality is judged to be sufficiently strong to withstand a sovereign debt crisis. The ratings of financial institutions and corporations are affected by the revision to the Country Ceilings and will be detailed in subsequent announcements. The revised Country Ceilings for Asia-Pacific countries are: * Hong Kong -- Country Ceiling revised to 'AAA' from 'AA' * Indonesia -- Country Ceiling revised to 'BB' from 'BB-' * Korea -- Country Ceiling revised to 'AA' from 'AA-' * Malaysia -- Country Ceiling revised to 'A' from 'A-' * Philippines -- Country Ceiling revised to 'BB+' from 'BB' * Taiwan -- Country Ceiling revised to 'AA' from 'AA-' ********* 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, 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 ***