/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/060829.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, August 29, 2006, Vol. 9, No. 171 Headlines A U S T R A L I A & N E W Z E A L A N D A FURNITURE ARTISAN: Members Resolve to Wind Up Firm ADVANCED LUBE: Court Hears Liquidation Bid AIR NEW ZEALAND: May Cut Trans-Tasman Flights Absent Qantas Deal AIRLAY CARPET: Appoints Official Liquidators ARIA WINE: To Declare First and Final Dividend on September 29 AUSTRALIAN GOLD: To Declare Dividend on September 8 AUSTRALIAN LEGAL RESOURCES: Under Voluntary Liquidation B.THOMPSON SPRAYPAINTING: Court Hears CIR's Liquidation Bid BARE DIGITAL: Liquidator to Present Wind-Up Report on Sept. 11 BELMONT CORPORATE: Faces Liquidation Proceedings CAM-TRANZ CAMBRIDGE: Court Set to Hear ACC's Liquidation Bid CARLEN CO: Creditors' Proofs of Claim Due on September 5 CASBATA PTY: Enters Wind-Up Proceedings CENTRAL BAKING: Names Whittfield and Finnigan as Liquidators COOCH BEHAR: Creditors' Proofs of Debt Due on August 31 D C CONTRACTING: Liquidators to Receive Claims Until Sept. 5 DHB HOLDINGS: Creditors Must Prove Debts by September 5 DVG ROOFING: Court Hears Liquidation Petition EARTHWORKS CONSTRUCTION: Court Hears Liquidation Petition ENCHANTED HILL: Members to Hold Final Meeting on September 18 FOX MANUFACTURING: Appoints Joint and Several Liquidators IMAC SECURITY: Members and Creditors to Convene on September 14 IMPACT PLASTERING: Liquidation bid Hearing Slated for August 28 INGESTRE STREET: Court to Hear Liquidation Bid on Sept. 14 INTERTAX GROUP: Court Orders Wind Up of Group Members J K WILLIAMS: Placed Under Voluntary Liquidation JAMES HARDIE: D. Merkley Resigns as Exec VP-EDP Effective Sept 1 JEFFERIES TOURS: Court Hears CIR's Liquidation Bid LOVELL FENCING: Faces Liquidation Proceedings MARINESCAPE PROJECTS: Court to Hear Liquidation Petition Oct. 5 MATCHLESS FRAMES: To Declare Dividend on September 29 MAYPOLE GARDEN: Appoints Receivers and Managers MELJON CONSULTING: Members Resolve to Liquidate Business MERSTHAM BUILDERS: Creditors Decide to Shut Down Operations NICHIMEN AUSTRALIA: Members' Final Meeting Slated for Sept. 22 NYLON MEDIA: Appoints Daniel Jean Civil as Liquidator OBM (NO 2) COMPUTER: To Declare Final Dividend on September 14 PEARLREST PTY: Commences a Wind-Up Proceedings PRETTIFIT PTY: Members Decide to Close Operations PRG GROUP: Logan Passes 90% Threshold for Takeover Bid RANCO INTERNATIONAL: Liquidator Featherby to Give Wind-Up Report RETIRO HOLDINGS: Members Opt to Voluntarily Liquidate Business SEAT COVER: Creditors' Proofs of Claim Due on September 6 SHOCK-PROOF SOLUTIONS: Members and Creditors to Meet on Sept. 11 ST JOHNS PROJECTS: Members to Receive Wind-Up Report on Sept. 27 STORAGE HAVEN: Bank Appoints Receivers and Managers SUN AQUA: Members to Hold Final Meeting on September 13 TOM WOOD: Names Salman Haq as Liquidator VIP VENDING: Shuts Down Operations WINDOW REVIVAL: Members and Creditors to Convene on Sept. 13 WHITE DECORATORS: Hearing of CIR's Liquidation Bid on Sept.7 C H I N A & H O N G K O N G BILLION WIN: Creditors Meeting Set on September 5 BIS GARMENT: Commences Voluntary Wind-Up Proceedings DUNHUANG (CHINA): Members and Creditors Hold Annual Meetings EVERGREEN RESTAURANT: Members, Creditors Receive Wind-Up Report HANSONG (HONG KONG): Liquidator Lam to Present Wind-Up Report KOWLOON LAND AND INVESTMENTS: Members Set to Meet on Sept. 22 KOWLOON LAND HOLDINGS: Liquidator to Present Wind-Up Report PERSISTENCE LIMITED: Members to Receive Wind-Up Report SHA TIN TREASURE: Members and Creditors Receive Wind-Up Report SIMBURY COMPANY: Members Final Meeting Fixed on September 22 SUN TEXTILES: Members to Receive Wind-Up Report TAI PO TREASURE: Holds Annual Meetings TREASURE CONTINUATION: Members and Creditors Hear Wind-Up Report TREASURE FOOD: Liquidator Presents Wind-Up Details TREASURE MANAGEMENT: Members & Creditors Receive Wind-Up Report TWIN WORLD LIMITED: Creditors Set to Discuss Wind-Up Matters TWIN WORLD BUSINESS: Creditors Meeting Set on September 4 TWIN WORLD CORPORATE: Creditors to Convene on September 4 TWIN WORLD HOLDINGS: Creditors Meeting Slated for September 5 TWIN WORLD TEAM: Creditors to Discuss Wind-Up Matters * NPC Approves New Corporate Bankruptcy Law I N D I A SILICON GRAPHICS: Wants Employee Incentive Plan Implemented SILICON GRAPHICS: LSI Logic Group Demands Return of All Goods SILICON GRAPHICS: Court Approves Stipulation Modifying Stay SILICON GRAPHICS: Goodwin Procter Represents Ad Hoc Committee SILICON GRAPHICS: Wants to Issue Credit Memos to Customers SILICON GRAPHICS: Court Gives Nod on Compensation Procedures I N D O N E S I A BANK RAKYAT: Posts 3.41% Improvement in Net Profit GAJAH TUNGGAL: Higher Raw Material Prices Cut Net Profit KALTIM PRIMA: Parent Cancels US$3.2-Billion Divestiture MATAHARI PUTRA: First Quarter Net Income Grows 20.5% YoY NEWERA FOOTWEAR: Pefindo Affirms idCCC Rating PERUSAHAAN GAS: Stake Sale to Be Completed by November PUTRA SUMBER: Posts 61% Lower Net Loss TELKOM INDONESIA: Reports Robust Growth in Net Income TELKOM INDONESIA: Appoints PwC As Auditor For 2006 TELKOMSEL INDONESIA: Chooses Ericsson For WCDMA Network J A P A N HERBALIFE LTD: Completes US$165-Million Bond Redemption MITSUBISHI MOTORS: Posts July Production, Sales, Exports Figures K O R E A KOREA EXCHANGE BANK: Lone Star's Sale to Kookmin Faces Delay KRISPY KREME: Reaches US$4.75M Settlement in ERISA Suit STANDARD CHARTERED FIRST BANK: Fitch Affirms C Individual Rating M A L A Y S I A AKTIF LIFESTYLE: Members Pass All AGM Resolutions DATUK KERAMAT: Continues to Fail Submission of Financials JIN LIN: June 30 Balance Sheet Reveals Insolvency JIN LIN: Unveils Results of Meetings MALAYSIA PACKAGING: 2nd Quarter Pre-tax Loss Jumps to MYR509,000 MBF CORPORATION: Books MYR6.9-Mil. Pre-tax Loss in 2nd Quarter POLYMATE HOLDINGS: Unit Slapped With MYR1.6-Million Claim SUGAR BUN: Granted Listing of 1 Million New Shares SUREMAX GROUP: CMCM Slaps Over MYR62,940 Claim TENAGA NASIONAL: Favors Amendment and Novation of ECA Loan TRADEWINDS CORP: RAM Reaffirms BBB3(s) Rating; Outlook Negative P H I L I P P I N E S BANCO FILIPINO: PSE Continues Suspension of Shares Trading BENGUET CORP: Fails to Submit Quarterly Report; Shares Suspended JG SUMMIT: Net Income for 2nd Quarter '06 Declines to PHP953M MIRANT CORP: Asia-Pacific Unit Completes US$700-Mil Financing NATIONAL POWER: Inks MOU with Laos' EDL for Tech'l Cooperation PHILIPPINE LONG DISTANCE: Board Okays 3-Year Strategic Plan S I N G A P O R E ARMSTRONG INDUSTRIAL: Buys Back Own Shares FLEXTRONICS INTERNATIONAL: Sells Photonics Subsidiary to nLight GREAT OCEAN: Court to Hear Wind-Up Petition on September 1 INFORMATICS EDUCATION: Auditors Raise Significant Doubt LIANG HUAT: Creditors Approve Modified Schemes MIYAMA FOOD: Enters Liquidation Proceedings ODYSSEY RE: Declares Dividends for Common & Preferred Stock PDC CORP: Issues and Allots 211,000,000 Ordinary Shares REFCO INC: Files July 2006 Monthly Operating Report THOMAS PRODUCTS: Pays Dividend to Creditors T H A I L A N D TMB BANK: Share Offering Worth THB9.7-Billion Successful * BOND PRICING: For the Week 28 August to 1 September 2006 - - - - - - - - ============================================ A U S T R A L I A & N E W Z E A L A N D ============================================ A FURNITURE ARTISAN: Members Resolve to Wind Up Firm ---------------------------------------------------- At an extraordinary general meeting held on August 9, 2006, the members of A Furniture Artisan Pty Ltd resolved to voluntarily wind up the company's operations. Creditors appointed Christopher Wykes as liquidator at a separate meeting held later that day. The Liquidator can be reached at: Christopher Wykes Lawler Partners Chartered Accountants Level 7, 1 Margaret Street Sydney, New South Wales 2000 Australia ADVANCED LUBE: Court Hears Liquidation Bid ------------------------------------------ A petition to liquidate Advanced Lube Technology Ltd was heard before the High Court of Wellington on August 28, 2006. The Commissioner of Inland Revenue filed the petition with the Court on July 13, 2006. The Solicitor for the Petitioner can be reached at: Philip Hugh Brian Latimer 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 1028 Facsimile: (04) 890 0009 AIR NEW ZEALAND: May Cut Trans-Tasman Flights Absent Qantas Deal ---------------------------------------------------------------- Air New Zealand warns that it will start cutting trans-Tasman flights if it fails to get approval for its code-sharing deal with Qantas Airways Limited, The Australian reports. As reported in the Troubled Company Reporter - Asia Pacific on April 13, 2006, Air New Zealand and Qantas have signed a code- share agreement that will allow both airlines to reduce cost by removing some surplus or duplicated capacity and utilizing aircraft more efficiently, while increasing the number of flights available to their customers for the trans-Tasman routes. According to Air New Zealand Chief Executive Officer Rob Fyfe, the deal is essential to the routes' viability. Moreover, The Australian notes that the deal would give both airlines a combined market share of 75%. "We're making significant losses on the Tasman and, in a market where you have significant surplus capacity you can't address the problem by raising revenue, you have to reduce costs," the paper cites Mr. Fyfe as saying. "If we can't achieve our cost reductions through the code-share proposal with Qantas, then we'll have to look at pursuing cost reduction initiatives on our own account. And that is likely to result in some form of capacity reduction on the Tasman," Mr. Fyfe contends. The Australian recounts that executives warned that more "tough strategic, workplace and workforce decisions" are needed to improve productivity at the airline and said they would not hesitate to cut unprofitable routes. The TCR-AP reported on August 28, 2006, that Air New Zealand's net profit after tax for the year ended June 30, 2006, was NZ$96 million, 47% down compared with the figure for the previous period due to fuel price increases. 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 billion 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. AIRLAY CARPET: Appoints Official Liquidators -------------------------------------------- On August 7, 2006, Donald Crichton and Keira Ann Horne were appointed as joint and several liquidators for Airlay Carpet Services Ltd. Subsequently, Mr. Crichton and Ms. Horne require the company's creditors to submit their proofs of claim by September 5, 2006, for them to share in any distribution the Company will make. The Joint and Several Liquidators can be reached at: K. A. Horne c/o Marie Inch Crichton Horne & Associates Limited Old Library Chambers 109 Cambridge Terrace (P.O. Box 3978), Christchurch New Zealand Telephone: (03) 379 7929 ARIA WINE: To Declare First and Final Dividend on September 29 -------------------------------------------------------------- Aria Wine Company Pty Limited notifies parties-in-interests of its intention to declare dividend on September 29, 2006. Creditors who were not able to file their proofs of claim by August 22, 2006, will be excluded from sharing in the dividend distribution. The deed administrator can be reached at: Peter P. Krejci GHK Green Krejci Level 13, 1 Castlereagh Street Sydney, w South Wales 2000 Australia AUSTRALIAN GOLD: To Declare Dividend on September 8 --------------------------------------------------- Australian Gold Council will declare a first and final dividend for unsecured and priority creditors on September 8, 2006. Creditors must submit their proofs of claim by August 30, 2006, for them to share in the dividend distribution. The liquidator can be reached at: Richard J. Cauchi CJL Partners Level 3, 180 Flinders Lane Melbourne, Victoria 3000 Australia Telephone: 9639 4779 Facsimile: 9639 4773 AUSTRALIAN LEGAL RESOURCES: Under Voluntary Liquidation ------------------------------------------------------- Australian Legal Resources International, headed by former Federal Court judge Marcus Einfeld, has collapsed, leaving the Government's overseas aid program, AusAID, thousands of dollars out of pocket, the Sydney Morning Herald reports, adding that the non-profit organization is being wound up. The Australian relates that after losing a string of potential foreign aid projects, ALRI went into voluntary administration in April 2006. According to The Australian, ALRI went into liquidation in May 2006, owing the federal aid agency AU$120,780. In that same month, Mr. Einfeld was one of a number of voters at a creditors meeting to back a plan to destroy the company's records, the paper relates. The Sydney Herald reveals that ALRI's creditors include AusAID, the Taxation Office, St. George Bank, and Mr. Einfeld. The other directors were the former Victorian Supreme Court judge Howard Nathan; a prominent refugee lawyer, David Bitel; and a former NSW Labor MP, Janelle Saffin, the paper adds. The Australian notes that the minutes of the creditors meeting show that an AusAID representative was present. However, it does not show whether AusAID also wanted the books destroyed. The paper further notes that AusAID refuses to discuss its involvement with ALRI. The Sydney Herald cites a report by Neil Cussen -- the company's administrator -- to creditors, saying that Mr. Einfeld had "inaccurately" stated ALRI's debts when he reported to an employee that only AU$7,000 was owed to creditors. The Sydney Herald also relates that the company's former manager, Peter Walford, told Mr. Cussen that the total was closer to AU$32,000, and that AusAID's claim takes it much higher than that. Mr. Cussen notes that there was no evidence to suggest that the company had traded while insolvent, the paper says. AusAid Grant Helped Meet Shortfall According to The Australian, AusAID granted more than AU$1.2 million to ALRI. AusAID gave ALRI AU$730,172 in grants in 2003 to meet a shortfall of AU$913,265 between expenditure and the amount of money that had been raised by the company, the paper cites ALRI's last annual accounts. The Australian reveals that in 2005, AusAID grants amounted to AU$480,009 -- representing the entire shortfall between the company's expenditure and the amount it had raised. The paper relates that while AusAID is its major creditor, ALRI's accounts reveal that the government agency had been increasing its financial support as the company's position deteriorated. They also show that AusAID was helping to keep the company afloat for at least three years. The Australian relates that Mr. Einfeld played a key role in ALRI's aid projects, which required him to travel to the Caribbean, Indonesia, the Middle East, and other countries. In his 15 years as a judge, the Federal Court paid for just one of Mr. Einfeld's trips overseas, the paper cites a Federal Court spokesman as saying. According to ALRI Secretary David Bitel, the projects in the Caribbean meant that when Mr. Einfeld was still a judge, he and other Australian judges spent considerable time there helping clear backlogs of cases. The Australian notes that while ALRI's documents have not yet been destroyed, doing so will eliminate the official record of extensive foreign travel undertaken by Mr. Einfeld during his time as a Federal Court judge. It will also eliminate the official record of the federal Government's financial involvement with ALRI, the paper adds. About ALRI According to the Sydney Morning Herald, Australian Legal Resources International is a charitable company, which helped improve legal systems in developing countries. It was also chosen by the late Yasser Arafat to help reform the Palestinian Authority in 1997. ALRI has been providing pro bono legal advice and outdated law books to developing countries, The Australian relates. B.THOMPSON SPRAYPAINTING: Court Hears CIR's Liquidation Bid ----------------------------------------------------------- A petition to liquidate Bob Thompson Spraypainting Ltd was heard before the High Court of Wellington on August 28, 2006. The Commissioner of Inland Revenue filed the petition with the Court on July 4, 2006. The Solicitor for the Petitioner can be reached at: Julia Marie Snelson Technical and Legal Support Group Wellington Service Centre 1st Floor, New Zealand Post House 7-27 Waterloo Quay (P.O. Box 1462) Wellington, New Zealand Telephone: (04) 890 1127 Facsimile: (04) 890 0009 BARE DIGITAL: Liquidator to Present Wind-Up Report on Sept. 11 -------------------------------------------------------------- Members and creditors of Bare Digital Pty Limited will convene on September 11, 2006, at 9:00 a.m., to hear Liquidator Nima Yassini's report on the company's wind-up and property disposal exercises. The Liquidator can be reached at: Nima Yassini Level 8, 15 Blue Street North Sydney, New South Wales 2060 Australia BELMONT CORPORATE: Faces Liquidation Proceedings ------------------------------------------------ A liquidation petition filed against Belmont Corporate Trustees Ltd will be heard before the High court of Auckland on August 31, 2006. Bridgecorp Ltd filed the petition with the Court on June 20, 2006. The Solicitor for the Petitioner can be reached: R.J. Viskovich McVeagh Fleming, Lawyers Level Fourteen, HSBC House 1 Queen Street, Auckland New Zealand P.O. Box 4099, Shortland Street Auckland 1140 Telephone: (09) 377 9966 CAM-TRANZ CAMBRIDGE: Court Set to Hear ACC's Liquidation Bid ------------------------------------------------------------ A liquidation petition filed against Cam-Tranz Cambridge Ltd will be heard before the High Court of Hamilton on September 4, 2006, at 10:45 a.m. The Accident Compensation Commission filed the petition with the Court on July 6, 2006. The Solicitor for the Plaintiff can be reached at: Dianne S. Lester Maude & Miller, Second Floor McDonald's Building, Cobham Court (P.O. Box 50-555 or D.X. S.P. 32-505) Porirua City, New Zealand CARLEN CO: Creditors' Proofs of Claim Due on September 5 -------------------------------------------------------- Carlen Co Pty Ltd will declare its first and final dividend on October 11, 2006. Creditors are required to submit their proofs of claims by September 5, 2006, for them to share in the company's dividend distribution. The liquidator can be reached at: John Park KordaMentha (Queensland) 22 Market Street Brisbane Queensland 4000 Australia Telephone:(07) 3225 4000 Facsimile:(07) 3225 4999 CASBATA PTY: Enters Wind-Up Proceedings --------------------------------------- The members of Casbata Pty Ltd convened on August 9, 2006, and resolved to voluntarily wind up the company's operations. Clyde Peter White and David Charles Quin were appointed as liquidators at a creditors' meeting held later that day. The Liquidators can be reached at: Clyde Peter White David Charles Quin HLB Mann Judd Chartered Accountants Level 1, 160 Queen Street Melbourne 3000 Australia CENTRAL BAKING: Names Whittfield and Finnigan as Liquidators ------------------------------------------------------------ Shareholders of Central Baking Co Ltd named John Trevor Whittfield and Peri Micaela Finnigan as joint and several liquidators on August 2, 2006. The Joint Liquidators will be accepting proofs of claim from the company's creditors on September 8, 2006. The Joint and Several Liquidators can be reached at: John Whittfield McDonald Vague, P.O. Box 6092 Wellesley Street Post Office Auckland, New Zealand Telephone: (09) 303 0506 Facsimile: (09) 303 0508 COOCH BEHAR: Creditors' Proofs of Debt Due on August 31 ------------------------------------------------------- Cooch Behar Investments Pty Limited intends to declare dividend for its creditors. Creditors are required to file their proofs of claim by August 31, 2006, for them to share in the dividend distribution. The deed administrator can be reached at: Anthony Warner CRS Warner Sanderson Level 5, 30 Clarence Street Sydney New South Wales 2000 Australia D C CONTRACTING: Liquidators to Receive Claims Until Sept. 5 ------------------------------------------------------------ The High Court of Christchurch ordered on August 7, 2006, the appointment of David Donald Crichton and Keiran Ann Horne as joint and several liquidators for D C Contracting Ltd. The Joint Liquidators will be accepting proofs of claim from the company's creditors until September 5, 2006. Failure to prove claims by the due date will exclude a creditor from sharing in any distribution the Company will make. According to the Troubled Company Reporter - Asia Pacific, the Commissioner of Inland Revenue filed on May 30, 2006, a petition to liquidate the company. The Court heard the petition on August 7, 2006. The Joint and Several Liquidators can be reached at: K. A. Horne c/o Marie Inch Crichton Horne & Associates Limited Old Library Chambers 109 Cambridge Terrace (P.O. Box 3978), Christchurch New Zealand Telephone: (03) 379 7929 DHB HOLDINGS: Creditors Must Prove Debts by September 5 ------------------------------------------------------- On August 7, 2006, the High Court ordered for the appointment of David Donald Crichton and Keiran Ann Horne as joint and several liquidators of DHB Holdings Ltd. In this regard, the company's creditors are required to submit their proofs of claim to the official liquidators by September 5, 2006, for them to share in any distribution the Company will make. The Joint and Several Liquidators can be reached at: K. A. Horne c/o Marie Inch Crichton Horne & Associates Limited Old Library Chambers 109 Cambridge Terrace (P.O. Box 3978), Christchurch New Zealand Telephone: (03) 379 7929 DVG ROOFING: Court Hears Liquidation Petition --------------------------------------------- The High Court of Auckland on August 24, 2006, heard a petition to liquidation DVG Roofing Ltd. The petition was filed by Brownbuilt Metal Folding Ltd on May 17, 2006. The Solicitor for the Petitioner can be reached at: Ralph George Simpson Offices of Bell Gully Level Twenty-two, Vero Centre 48 Shortland Street Auckland, New Zealand EARTHWORKS CONSTRUCTION: Court Hears Liquidation Petition --------------------------------------------------------- A petition to liquidate Earthworks Construction Ltd was heard before the High court of Wellington on August 28, 2006. The Commissioner of Inland Revenue filed the petition with the Court on July 17, 2006. The Solicitor for the Plaintiff can be reached at: Andrew Hamer Instone 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 1133 Facsimile: (04) 890 0009 ENCHANTED HILL: Members to Hold Final Meeting on September 18 ------------------------------------------------------------- Members of Enchanted Hill Pty Ltd will hold a final and general meeting on September 18, 2006 at 10:00 a.m. At the meeting, Liquidator R. A. Dawson will report on the company's wind-up proceedings and property disposal exercises. As reported by the Troubled Company Reporter - Asia Pacific on July 19, 2006, the company commenced wind-up proceedings on June 14, 2006. The Liquidator can be reached at: R. A. Dawson R. A. Dawson & Associates GPO Box 443 Canberra ACT 2601 Australia FOX MANUFACTURING: Appoints Joint and Several Liquidators --------------------------------------------------------- The High Court of Auckland ordered on August 7, 2006, the appointment of Warren Michael Johnstone and Stephen John Tubbs as joint and several Liquidators of Fox Manufacturing Ltd. The Joint Liquidators require the creditors of the Company to submit their proofs of claim by August 31, 2006, for them to share in any distribution the Company will make. According to the Troubled Company Reporter - Asia Pacific, the Company was facing a liquidation petition filed by Mercer Stainless Ltd on June 6, 2006. The Court heard the petition on July 10, 2006. The Joint and Several Liquidators can be reached at: Warren Michael Johnstone c/o Barbara King, BDO Spicers Level Six, Spicer House, 148 Victoria Street Christchurch, New Zealand Postal Address: P.O. Box 246, Christchurch Telephone: (03) 379 5155 (extension 853) Facsimile: (03) 353 5526 e-mail: barbara.king@chc.bdospicers.com IMAC SECURITY: Members and Creditors to Convene on September 14 --------------------------------------------------------------- The members and creditors of IMAC Security Services Pty Ltd will hold an annual general meeting on September 14, 2006, at 10:00 a.m. At the meeting, the members and creditors will be asked to: -- receive the liquidator's report on his acts and dealings during the company's wind-up; -- propose a resolution to have the liquidator's renumeration cap increased; and -- discuss general business. The liquidator can be reached at: Nicholas Martin PPB Chartered Accountants Level 10, 90 Collins Street Melbourne, Victoria 3000 Australia IMPACT PLASTERING: Liquidation bid Hearing Slated for August 28 --------------------------------------------------------------- A petition to liquidate Impact Plastering Ltd was heard before the High court of Wellington on August 28, 2006. The Commissioner of Inland Revenue filed the petition with the Court on July 17, 2006. The Solicitor for the Petitioner can be reached at: Aaron Reynolds Lyne 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 1079 Facsimile: (04) 890 0009 INGESTRE STREET: Court to Hear Liquidation Bid on Sept. 14 ---------------------------------------------------------- The High Court of Auckland will hear a liquidation petition against Ingestre Street Corporate Trustees Ltd on September 14, 2006. Bridgecorp Ltd filed the petition with the Court on June 20, 2006. The Solicitor for the Petitioner can be reached at: R.J. Viskovich McVeagh Fleming, Lawyers Level Fourteen, HSBC House 1 Queen Street, Auckland New Zealand P.O. Box 4099, Shortland Street Auckland 1140 Telephone: (09) 377 9966 INTERTAX GROUP: Court Orders Wind Up of Group Members ----------------------------------------------------- After an application by the Australian Securities and Investments Commission, the Supreme Court of Queensland at Brisbane has made a declaration that David Jeremiah Palmer and companies related to him -- the Intertax Group -- operated an unregistered managed investments scheme in breach of the Corporations Act. The Honorable Justice Fryberg also ordered that Gerald Collins and Matthew Joiner, of Jefferson Collins Joiner Chartered Accountants, be appointed joint and several liquidators to wind up the members of the Intertax Group and the Scheme. The Court accepted the ASIC's submission that the several funds operated by the Intertax Group constituted one overall Scheme. Previously, Messrs. Collins and Joiner had been appointed as investigative accountants to prepare a report for the court in relation to certain matters concerning the affairs of the Intertax Group. In their report, Messrs. Collins and Joiner concluded that: * the Scheme was insolvent; * the investors in the Scheme are owed in the order of AU$14 million; * there are grounds to suspect that Mr. Palmer and the Intertax Group have contravened the Act and ASIC Act; and * the liabilities of the Scheme exceed its assets by approximately AU$9.7 million. At the hearing, the Court considered a proposal for the winding up of the Scheme put forward by Mr. Palmer and supported by investors. Justice Fryberg was of the view that the proposal was a continuation of the unregistered managed investment schemes and "seriously doubted whether the proposal could be lawfully carried out." The proceedings, relating to the application for declarations in relation to Max Collins and Philip Trudgeon, who are directors of two of the members of the Intertax Group, have been adjourned to a date to be fixed. Background On June 6, 2006, the ASIC filed an application with the Supreme Court of Queensland seeking orders against an unregistered investment scheme being operated by the Intertax Group. The proceedings were commenced as a result of information received by the ASIC during the conduct of an investigation into the affairs of Mr. Palmer and companies related to him. The information gave the ASIC reason to believe that members of the Intertax Group may have operated an unregistered managed investment scheme in breach of the Act. The ASIC's investigations have revealed that the Intertax Group has established at least four funds for managed investment projects. The projects were marketed to clients of Intertax, a Brisbane accounting firm. The ASIC understands that approximately 150 investors, located predominately in south-east Queensland, were offered returns between 12% to 50% per annum, depending on the financial position of the Intertax Group at the time. About Intertax Group Intertax Group -- http://www.intertax.com.au/-- headquartered in Springwood, Queensland, is a family of companies that offers a range of services for growth, pleasure, and profit in all areas of life. J K WILLIAMS: Placed Under Voluntary Liquidation ------------------------------------------------ Members of J K Williams Penrith Co Pty Ltd met on August 9, 2006, and agreed to voluntarily wind up the company's operations. In this regard, Anthony Wayne Elkerton was appointed as liquidator. The Liquidator can be reached at: Anthony Wayne Elkerton Chartered Accountant Pitcher Partners Level 3, 60 Castlereagh Street Sydney, New South Wales 2000 Australia JAMES HARDIE: D. Merkley Resigns as Exec VP-EDP Effective Sept 1 ---------------------------------------------------------------- James Hardie Industries NV advises that Dave Merkley has resigned from his role as Executive Vice President-Engineering and Process Development, effective September 1, 2006. However, James Hardie Chief Executive Officer Louis Gries notes that "under the terms of his contract, [Mr. Merkley] will be available to consult to us over the next few years so we will still have access to his knowledge and skills." Mr. Gries says that the company will be appointing a replacement head of Engineering and Process Development in due course. After Mr. Merkley's resignation, James Hardie's Senior Leadership Team now consists of: * Louis Gries, Chief Executive Officer; * Russell Chenu, Chief Financial Officer; * Ben Butterfield, General Counsel; * James Chilcoff, VP-International Business; * Nigel Rigby, VP-Emerging Markets; * Robert Russell, VP-Established Markets; * Cathy Wallace, VP-Global Human Resources; * Grant Gustafson, VP-Interiors & Business Development; * Mark Fisher, VP-Research and Development; * Peter Baker, Executive VP Australia; and * Steve Ashe, VP-Investor Relations About James Hardie James Hardie Industries Limited -- http://www.jameshardie.com/ -- manufactures, markets and distributes fiber cement and gypsum products, fiberglass reinforced plastic and PVC products, sanitary ware and bathroom products, insulating materials and fillers, strippers and adhesives. On July 2, 1998, the then public company announced a plan of reorganization and capital restructuring. James Hardie N.V. was incorporated in August 1998 as an intermediary holding company, with all of its common stock owned by indirect subsidiaries of JHIL. Effective as of November 1998, JHIL contributed its fibre cement businesses, its United States gypsum wallboard business, its Australian and New Zealand building systems businesses and its Australian windows business to JHNV and its subsidiaries. On July 24, 2001, JHIL announced a further plan of reorganization and capital restructuring, which reorganization was completed on October 19, 2001. In connection with the 2001 Reorganization, James Hardie Industries N.V., formerly RCI Netherlands Holdings B.V., issued common shares represented by CHESS Units of Foreign Securities on a one for one basis to existing JHIL shareholders in exchange for their shares such that JHINV became the new ultimate holding company for JHIL and JHNV. Following the 2001 Reorganization, JHINV controls the same assets and liabilities as JHIL controlled immediately prior to the 2001 Reorganization. The Company's troubles began with its "under-funded" allocation for asbestos claims, which were brought in by people who suffer or may have diseases caused by exposure to the asbestos-related products produced by JHIL. In 2001, James Hardie set up an independent entity, Medical Research and Compensation Foundation, to handle asbestos claims. The Foundation has warned that it could run out of money within five years. The Asbestos Diseases Foundation of Australia and workers unions called for all the Company's asbestos profits to be immediately placed in the fund. James Hardie was later accused of topping up the dwindling asbestos fund it established. By 2004, James Hardie's former asbestos manufacturing subsidiaries -- Amaca Pty Ltd, Amaba Pty Ltd, and ABN 60 Pty Ltd -- are three of around 150 defendants in asbestos litigation, and based on the Foundation's own figures, they account for US$1,000,000,000 of the predicted US$6,000,000,000 future asbestos liabilities in Australia. Although James Hardie stopped making asbestos products in 1987, the average 35-year latency of mesothelioma, an asbestos-related disease, means asbestos compensation funds will be needed until mid-century. In a 2005 report by a company-hired actuary from KPMG, it was predicted that 4,915 Australians would contract mesothelioma from exposure to Hardie products in the coming decades. When less serious forms of asbestos-related disease are included, James Hardie should expect to compensate 8,725 victims. On December 1, 2005, the Company announced that the NSW Government and a wholly owned Australian subsidiary of the Company -- LGTDD Pty Ltd -- had entered into a conditional agreement to provide long-term funding to a special purpose fund that will provide compensation for Australian asbestos-related personal injury claims against certain former James Hardie asbestos companies. The amount of the asbestos provision of AU$1 billion, at March 31, 2006, is the Company's best estimate of the probable outcome, which estimate includes an actuarial calculation prepared by KPMG Actuaries Pty Ltd of the projected future cash outflows, undiscounted and uninflated, and the anticipated tax deduction arising from Australian legislation which came into force on April 6, 2006. JEFFERIES TOURS: Court Hears CIR's Liquidation Bid -------------------------------------------------- On August 28, 2006, the High Court of Wellington heard the liquidation petition filed against Jefferies Tours & Charters Ltd. The Commissioner of Inland Revenue filed the petition on July 4, 2006. The Solicitor for the Petitioner can be reached at: Rachel Laura Roff 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 1116 Facsimile: (04) 890 0009 LOVELL FENCING: Faces Liquidation Proceedings --------------------------------------------- Members of Lovell Fencing Pty Ltd convened on August 8, 2006, and agreed to voluntarily liquidate the company's business. Subsequently, Gregory Stuart Andrews was appointed as liquidator. The Liquidator can be reached at: Gregory Stuart Andrews G. S. Andrews & Associates 22 Drummond Street Carlton 3053 Australia MARINESCAPE PROJECTS: Court to Hear Liquidation Petition Oct. 5 --------------------------------------------------------------- A petition to liquidate Marinescape Projects Ltd will be heard before the High Court of Auckland on October 5, 2006, at 10:00 a.m. Ivan Valentino Comuzzo filed the petition with the Court on July 24, 2006. The Solicitor for the Plaintiff can be reached at: Greg Dean Stringer Inder Lynch, Solicitors Corner of East and Wood Streets (P.O. Box 72-045 or D.X. E.P. 76 504) Papakura, Auckland New Zealand MATCHLESS FRAMES: To Declare Dividend on September 29 ----------------------------------------------------- Matchless Frames & Trusses Pty Limited will declare dividend to creditors on September 29, 2006, to the exclusion of those who cannot prove their claims by September 12, 2006. The liquidator can be reached at: Ozem Kassem Cor Cordis Chartered Accountants Level 8, 50 Carrington Street Sydney New South Wales Australia Telephone:(02) 8221 8433 Facsimile:(02) 8221 8422 MAYPOLE GARDEN: Appoints Receivers and Managers ----------------------------------------------- Steven Davies of Bibby Financial Services Australia Pty Limited appointed Neil Robert Cussen and Geoffrey Trent Hancock as receivers and managers of Maypole Garden Fresh Pty Limited on August 9, 2006. The Receivers and Managers can be reached at: Neil Robert Cussen Geoffrey Trent Hancock Horwath Sydney Partnership Level 10, 1 Market Street Sydney New South Wales 2000 Australia MELJON CONSULTING: Members Resolve to Liquidate Business -------------------------------------------------------- At a general meeting held on August 9, 2006, the members of Meljon Consulting Pty Ltd decided to liquidate the company's business and appoint Daniel J. Civil as liquidator. The Liquidator can be reached at: Daniel J. Civil Jirsch Sutherland Chartered Accountants Level 2, 84 Pitt Street Sydney New South Wales 2000 Australia Telephone:(02) 9233 2111 Facsimile:(02) 9233 2144 MERSTHAM BUILDERS: Creditors Decide to Shut Down Operations ----------------------------------------------------------- Creditors of Merstham Builders Pty Limited convened on August 7, 2006, and decided to shut down the company's operations. Subsequently, Geoffrey Trent Hancock was appointed as liquidator. The Liquidator can be reached at: Geoffrey Trent Hancock Horwath Sydney Partnership Level 10, 1 Market Street Sydney, New South Wales 2000 Australia NICHIMEN AUSTRALIA: Members' Final Meeting Slated for Sept. 22 -------------------------------------------------------------- Members of Nichimen Australia Ltd will hold a final meeting on September 22, 2006, at 10:00 a.m., to receive accounts of the company's wind-up and property disposal exercises form Liquidator David Joseph Levi. According to the Troubled Company Reporter - Asia Pacific, the company commenced a wind-up of its operations on October 26, 2005. The Liquidator can be reached at: David Joseph Levi Level 10, 1 Margaret Street Sydney, New South Wales 2000 Australia Telephone:(02) 9251 4100 NYLON MEDIA: Appoints Daniel Jean Civil as Liquidator ----------------------------------------------------- Members of Nylon Media Australia/New Zealand Pty Limited met on August 10, 2006, and resolved to voluntarily liquidate the company's operations. Accordingly, Daniel Jean Civil was appointed as liquidator. The Liquidator can be reached at: Daniel Jean Civil Jirsch Sutherland Level 2, 84 Pitt Street Sydney, New South Wales 2000 Australia Telephone:(02) 9233 2111 Facsimile:(02) 9233 2144 OBM (NO 2) COMPUTER: To Declare Final Dividend on September 14 -------------------------------------------------------------- OBM (NO 2) Computer Wholesales Pty Limited will declare final dividend on September 14, 2006. Creditors should submit their proofs of debt by September 13, 2006, for them to share in the company's dividend distribution. The liquidator can be reached at: A. H. J. Wily Armstrong Wily Chartered Accountants Level 5, 75 Castlereagh Street Sydney, New South Wales 2000 Australia PEARLREST PTY: Commences a Wind-Up Proceedings ---------------------------------------------- The members of Pearlrest Pty Limited met on August 11, 2006, and agreed to voluntarily wind-up the company's operations. In this regard, M. F. Cooper was appointed as liquidator. The Liquidator can be reached at: M. F. Cooper Frasers Insolvency Advisory Level 5, 99 Elizabeth Street Sydney New South Wales 2000 Australia PRETTIFIT PTY: Members Decide to Close Operations ------------------------------------------------- At an extraordinary general meeting held on August 14, 2006, the members of Prettifit Pty Limited resolved to close the company's operations and appoint Roderick Mackay Sutherland as liquidator. The Liquidator can be reached at: Roderick Mackay Sutherland Jirsch Sutherland Chartered Accountants Level 2, 84 Pitt Street Sydney New South Wales 2000 Australia Telephone:(02) 9233 2111 Facsimile:(02) 9233 2144 PRG GROUP: Logan Passes 90% Threshold for Takeover Bid ------------------------------------------------------ As reported in the Troubled Company Reporter - Asia Pacific on August 3, 2006, PRG Group's 81% owner, Eric Watson, bought another 12.3% of the Company, triggering a full takeover at NZ$1.22 per share. Logan Corp, a unit of Mr. Watson's private investment vehicle Cullen Investments, bought the 12.3% stake from AllianceBerstein on behalf of Axa Asia Pacific Holdings, the TCR-AP noted. A follow-up report from the New Zealand Press Association relates that Logan has passed the 90% threshold in its takeover bid for PRG. Accordingly, it now holds around 93% of PRG, triggering a compulsory takeover notice. The notice dated August 25, 2006, signaled the official purchase of a 12.3% stake from Axa Asia Pacific Holdings and others, Stuff.co.nz relates. Independent directors have judged Logan's NZ$1.22 per share offer reasonable, the report says. About PRG Group Formerly Pacific Retail Group, PRG Group Limited -- http://www.prg.co.nz/-- is an NZX-listed investment company focused on the consumer sector. It has a portfolio of operating companies in New Zealand and the United Kingdom, including leading lingerie designer and marketer, Bendon Limited. PRG Group's other businesses include PowerHouse, the UK's third largest specialist appliance retailer. PowerHouse operates 53 stores in the UK. PRG Group also owns New Zealand homeware retailer Living & Giving. Late January 2006, PRG Group completed the sale of its Finance Group to GE Finance and Insurance for NZ$145 million. The Finance Group comprised four companies - Pacific Retail Services Limited, Pacific Retail Finance Limited, Montreal Financial Services Limited and Simply Insurance New Zealand Limited. The structure of the sale meant the Finance Group's loan book and other assets were sold to GE, together with the shares in Simply Insurance New Zealand. Under the sale agreement, PRG has changed its name from Pacific Retail Group Limited to PRG Group Limited. The Company posted a NZ$75 million capital profit (net of costs) from the sale. PRG Group used part of the sale proceeds to repay NZ$62.7 million of outstanding Secured Capital Notes and to repay loans of NZ$20 million to principal banker, ANZ Bank. PRG Group hoped that the sale will allow it to retire all parent company debt, leaving it in a strong financial position to continue to fund growth in its major operating businesses. RANCO INTERNATIONAL: Liquidator Featherby to Give Wind-Up Report ---------------------------------------------------------------- Members and creditors of Ranco International Pty Ltd will convene on September 11, 2006, at 10:00 a.m., to hear Liquidator Featherby's report on the company's wind-up proceedings. The Liquidator can be reached at: G. R. Featherby Featherby Reilly Ground Floor 1121 Hay Street West Perth, Australia RETIRO HOLDINGS: Members Opt to Voluntarily Liquidate Business -------------------------------------------------------------- The members of Retiro Holdings Pty Ltd convened on August 14, 2006, and resolved to voluntarily liquidate the company's business. Subsequently, Roderick Mackay Sutherland was appointed as liquidator. The Liquidator can be reached at: Roderick Mackay Sutherland Jirsch Sutherland Chartered Accountants Level 2, 84 Pitt Street Sydney, New South Wales 2000 Australia Telephone:(02) 9233 2111 Facsimile:(02) 9233 2144 SEAT COVER: Creditors' Proofs of Claim Due on September 6 --------------------------------------------------------- Shareholders of Seat Cover Warehouse Ltd appointed on August 8, 2006, David Donald Crichton and Keiran Ann Horne as joint and several liquidators of the Company. The Joint Liquidators require the creditors of the Company to submit their proofs of claim by September 6, 2006, for them to share in any distribution the Company will make. The Joint and Several Liquidators can be reached at: K. A. Horne c/o Nelson Gardiner Crichton Horne & Associates Limited Old Library Chambers 109 Cambridge Terrace (P.O. Box 3978), Christchurch New Zealand Telephone: (03) 379 7929 SHOCK-PROOF SOLUTIONS: Members and Creditors to Meet on Sept. 11 ---------------------------------------------------------------- Members and creditors of Shock-Proof Solutions Pty Ltd will meet on September 11, 2006, at 11:00 a.m., to receive Liquidator Reilly's final report on the company's wind-up and property disposal exercises. The Liquidator can be reached at: M. D. Reilly Featherby Reilly Ground Floor 1121 Hay Street West Perth, Australia ST JOHNS PROJECTS: Members to Receive Wind-Up Report on Sept. 27 ---------------------------------------------------------------- Members of St Johns Projects Pty Ltd will hold a final meeting on September 27, 2006, at 10:00 a.m., to hear Liquidator Gaffney's report on the company's wind-up and property disposal exercises. The Liquidator can be reached at: A. A. Gaffney RSM Bird Cameron Chartered Accountants 8 St George's Terrace Perth, Western Australia 6000 Australia Telephone:(08) 9261 9100 STORAGE HAVEN: Bank Appoints Receivers and Managers --------------------------------------------------- On August 9, 2006, the National Australia Bank Limited appointed James Alexander Shaw and Stephen John Sherman as receivers and managers of the whole property comprised in Certificate of Folio Identifier 211/1070348 and known as Lot 211, Kalinya Close, Cameron Park in the State of New South Wales. The Receivers and Managers can be reached at: James Alexander Shaw Stephen John Sherman Ferrier Hodgman Chartered Accountants Sydney Australia SUN AQUA: Members to Hold Final Meeting on September 13 ------------------------------------------------------- The members of Sun Aqua Pty Ltd will hold a final meeting on September 13, 2006, at 10:00 a.m. Liquidator Robinson will present the company's wind-up report and the manner of property disposal during the meeting. As reported by the Troubled Company Reporter - Asia Pacific on April 3, 2006, the company distributed its final dividend on April 4, 2006. The Liquidator can be reached at: V. J. Robinson Deloitte Touche Tohmatsu Level 9, ANZ Centre 22 Elizabeth Street Hobart Tasmania 7000 Australia Telephone:(03) 6237 7000 Facsimile:(03) 6237 7001 TOM WOOD: Names Salman Haq as Liquidator ---------------------------------------- At a general meeting held on August 9, 2006, the members of Tom Wood (Consulting Engineers) Pty Ltd resolved to voluntarily wind up the company's operations and appoint Salman Haq as liquidator. The Liquidator can be reached at: Salman Haq Level 8, 65 York Street Sydney, New South Wales 2000 Australia VIP VENDING: Shuts Down Operations ---------------------------------- Members of VIP Vending (Sydney North) Pty Limited met on August 11, 2006, and agreed to shut down the company's operations. In this regard, Nicholas Crouch was appointed as liquidator. The Liquidator can be reached at: Nicholas Crouch Crouch Insolvency Chartered Accountants Level 28, 31 Market Street Sydney New South Wales 2000 Australia WINDOW REVIVAL: Members and Creditors to Convene on Sept. 13 ------------------------------------------------------------ The members and creditors of Window Revival Pty Ltd will hold a meeting on September 13, 2006, at 9:00 a.m. At the meeting, the members and creditors will be asked to: -- receive the final receipts and payments from the liquidator; -- receive formal notice of the end of the administration; and -- discuss other business that may be considered with the foregoing. The liquidator can be reached at: Michael Griffin Worrells Solvency & Forensic Accountants 8th Floor, 102 Adelaide Street Brisbane Queensland 4000 Australia Telephone:(07) 3225 4377 Facsimile:(07) 3225 4311 Web-site: http://www.worrells.net.au WHITE DECORATORS: Hearing of CIR's Liquidation Bid on Sept.7 ------------------------------------------------------------ The High Court of Napier will hear a petition to liquidate White Decorators Ltd on September 7, 2006, at 10:00 a.m. A petition was filed by the Commissioner of Inland Revenue on July 17, 2006. The Solicitor for the Petitioner can be reached at: R.J. Collins Elvidge & Partners, Solicitors Corner of Raffles and Bower Streets Napier, New Zealand ================================ C H I N A & H O N G K O N G ================================ BILLION WIN: Creditors Meeting Set on September 5 ------------------------------------------------- Creditors of Billion Win Enterprise Ltd will convene for a meeting at 8/F., Richmond Commercial Building, 109 Argyle Street, Kowloon in Hong Kong on September 5, 2006, at 4:00 p.m. During the meeting, creditors will discuss matters under different sections of the Companies Ordinance of Hong Kong. BIS GARMENT: Commences Voluntary Wind-Up Proceedings ---------------------------------------------------- BIS Garment Workshop Ltd commenced a voluntary wind-up of its operations on August 11, 2006. The company's board of directors had on August 10, 2006, appointed Wu Shek Chun as provisional liquidator. DUNHUANG (CHINA): Members and Creditors Hold Annual Meetings ------------------------------------------------------------ The annual meetings of members and creditors of Dunghuang (China) Co Ltd were held on August 24, 2006, at 11:40 a.m. and 3:15 p.m. respectively. At the meetings, Liquidator Kong Chi How presented a report on the Company's wind up and property disposal exercises. EVERGREEN RESTAURANT: Members, Creditors Receive Wind-Up Report --------------------------------------------------------------- Members and creditors of Evergreen Restaurant Ltd convened on August 24 and 25, 2006, respectively to hear Liquidator Kong Chi How's report regarding the Company's wind-up and property disposal exercises. HANSONG (HONG KONG): Liquidator Lam to Present Wind-Up Report ------------------------------------------------------------- Members of Hansong (Hong Kong) Co Ltd will convene on September 22, 2006, 3:00 p.m. at Room 1005 Allied Kajima Building, 138 Gloucester Road, in Wanchai, Hong Kong. During the meeting, Liquidator Lam Ying Sui will present accounts of the company's wind-up and property disposal activities. According to the Troubled Company Reporter - Asia Pacific, the Company commenced a voluntary wind-up of its operations on February 17, 2006. KOWLOON LAND AND INVESTMENTS: Members Set to Meet on Sept. 22 ------------------------------------------------------------- Members of Kowloon Land and Investments Ltd will convene for their final meeting on September 22, 2006, 3:00 p.m. at 23/F., Wheelock House, 20 Pedder Street, Hong Kong. At the meeting, Liquidator Kevin Chung Ying Hui will report on the Company's wind-up and property disposal exercises. KOWLOON LAND HOLDINGS: Liquidator to Present Wind-Up Report ----------------------------------------------------------- Members of Kowloon Land Holdings Ltd will meet on September 22, 2006, 4:00 p.m. to hear accounts of the company's wind-up proceedings from Liquidator Kevin Chung Ying Hui. The meeting will be held at 23/F., Wheelock House, 20 Pedder Street, Hong Kong. PERSISTENCE LIMITED: Members to Receive Wind-Up Report ------------------------------------------------------ Members of Persistence Ltd will receive Liquidator Kevin Chung Ying Hui's report regarding the Company's wind-up and property disposal exercises. The report will be presented on September 22, 2006, at 4:00 p.m. at 23/F., Wheelock House, 20 Pedder Street in Hong Kong. SHA TIN TREASURE: Members and Creditors Receive Wind-Up Report -------------------------------------------------------------- The annual meetings of the members and creditors of Sha Tin Treasure Restaurant Company Limited was held on August 24, 2006, at 11:00 a.m. and 2:20 p.m. respectively. At the meetings, Liquidator Kong Chi How presented a report regarding the Company's wind-up proceedings and property disposal exercises. SIMBURY COMPANY: Members Final Meeting Fixed on September 22 ------------------------------------------------------------ The final members meeting of Simbury Company Ltd will be held on September 22, 2006, 6:00 p.m. at 23/F., Wheelock House, 20 Pedder Street in Hong Kong. During the meeting, Liquidator Kevin Chung Ying Hui will present accounts of the Company's wind-up and property disposal activities. SUN TEXTILES: Members to Receive Wind-Up Report ----------------------------------------------- Members of Sun Textiles (H.K.) Ltd will hold a meeting on September 22, 2006, at 4:00 p.m. to hear Liquidator Lam Ying Sui's report regarding the Company's wind-up. The meeting will be held at Room 1005 Allied Kajima Building, 138 Gloucester Road, Wanchai, Hong Kong. TAI PO TREASURE: Holds Annual Meetings -------------------------------------- Members and creditors of Tai Po Treasure Restaurant Co Ltd convened for their annual meetings at Conference Room 304, 29/F., Wing On Centre, 111 Connaught Road Central, Hong Kong on August 24, 2006, 11:20 a.m. and 2:45 p.m. respectively. At the meetings, Liquidator Kong Chi How presented accounts of the Company's wind-up and property disposal exercises. TREASURE CONTINUATION: Members and Creditors Hear Wind-Up Report ---------------------------------------------------------------- Members and creditors of Treasure Continuation Company Ltd convened for their annual meetings on August 24, 2006, at 12:00 p.m. and 3:40 p.m. respectively. During the meeting, Liquidator Kong Chi How presented a report regarding the Company's wind-up proceedings. TREASURE FOOD: Liquidator Presents Wind-Up Details -------------------------------------------------- Members and creditors of Treasure Food Limited met on August 24, 2006, at Conference Room 304, 29/F., Wing On Centre, 111 Connaught Road in Central, Hong Kong, and received Liquidator Kong Chi How's report on the company's wind-up. TREASURE MANAGEMENT: Members & Creditors Receive Wind-Up Report --------------------------------------------------------------- Members and creditors of Treasure Management Co Ltd received reports on the company's wind-up from Liquidator Kong Chi How on August 24, and 25, 2006, respectively. TWIN WORLD LIMITED: Creditors Set to Discuss Wind-Up Matters ------------------------------------------------------------ Creditors of Twin World Ltd will convene on September 4, 2006, at 5:00 p.m. to discuss matters related to the different sections under the Companies Ordinance of Hong Kong. The meeting will be held at 8/F., Richmond Commercial Building, 109 Argyle Street, Kowloon in Hong Kong. TWIN WORLD BUSINESS: Creditors Meeting Set on September 4 --------------------------------------------------------- Creditors of Twin World Business Linkage Technologies Holdings Ltd will convene on September 4, 2006, 3:30 p.m. at 8/F., Richmond Commercial Building, 109 Argyle Street, Kowloon in Hong Kong. During the meeting, creditors will discuss matters under different sections of the Companies Ordinance of Hong Kong. TWIN WORLD CORPORATE: Creditors to Convene on September 4 --------------------------------------------------------- On September 4, 2006, at 4:00 p.m. creditors of Twin World Corporate Finance Management Services Ltd will convene for them to discuss matters under different sections of the Companies Ordinance of Hong Kong. The meeting will be held at 8/F., Richmond Commercial Building, 109 Argyle Street, Kowloon in Hong Kong. TWIN WORLD HOLDINGS: Creditors Meeting Slated for September 5 ------------------------------------------------------------- Creditors of Twin World Holdings Ltd will convene on September 5, 2006, 3:00 p.m. at 8/F., Richmond Commercial Building, 109 Argyle Street, Kowloon in Hong Kong. During the meeting, creditors will discuss matters related to different sections of the Companies Ordinance of Hong Kong. TWIN WORLD TEAM: Creditors to Discuss Wind-Up Matters ----------------------------------------------------- Creditors of Twin World Team Concept Ltd will meet on September 4, 2006, 4:30 p.m. at 8/F., Richmond Commercial Building, 109 Argyle Street, Kowloon in Hong Kong. At the meeting, creditors will be discussing the company's wind- up and other matters under the different sections of the Companies Ordinance of Hong Kong. * NPC Approves New Corporate Bankruptcy Law ------------------------------------------- The standing committee of the National People's Congress, China's legislative body, adopted a corporate bankruptcy law that aims to protect both creditors of bankrupt enterprises and the people who work in them, Xinhuanet reports. According to Xinhuanet, the Enterprise Bankruptcy Law was approved by the legislative body on August 27, 2006, and will take effect on June 1, 2007. The current bankruptcy law will be abolished at the same time. The current bankruptcy rules, promulgated in 1986 on a test basis, are widely regarded as outdated as they fail to give sufficient protection to creditors and only touch on State-owned enterprises, Xinhuanet relates. In addition the rules allow laid-off workers to be paid before creditors. Meanwhile, the new corporate bankruptcy law will apply to all kinds of enterprises and financial institutions. All the country's companies and enterprises, whether state owned or private, will have to follow a unified corporate bankruptcy law. Based on the new law, all insolvent enterprises will pay credit guarantees to creditors first and use other assets not earmarked as credit guarantees to pay laid-off workers. "The provision is a compromise that aims to protect both creditors and workers of insolvent enterprises," said Cheng Siwei, vice-chairman of the NPC Standing Committee. Jia Zhijie, member of the NPC Standing Committee adds "The new law embodies the notion of putting people first, as it fully considers worker's interests. At the same time it accords with standard international practice in better protecting lenders' interests." Meanwhile, Wang Xin, a law professor at Renmin University explains that paying creditors first in insolvency cases is common practice in market economies and will help boost foreign investors' confidence in investing in China. However, the new law makes an exception for around 2,000 State Owned Enterprises. The State Council stipulated that SOEs that announce bankruptcy before June 2007 can be closed down with the aid of government bailouts and could pay laid-off workers first. Xinhua recounts that from 1994 to 2005, China allowed 3,658 moribund state enterprises to close with government subsidy support. In 2006, the central government set aside CNY33.8 billion to help bankrupt SOEs settle with laid-off workers. Further, experts are also called for the establishment of an effective social insurance and wage payment system that would eradicate the phenomenon of workers remaining unpaid when a company goes bankrupt. The new law also provides a bankruptcy restructuring system complete with liquidators, as well as rules on the prevention of cheating during the bankruptcy process. The new law stipulated that financial supervision institutions could apply for bankruptcy for financial institutions. To make special regulation on the bankruptcy of financial institutions in China's Corporate Bankruptcy Law marks that China began to standardize the bankruptcy of financial institutions on the legal level, law experts said. According to the law, China's financial supervision institution under the State Council could apply to the people's courts for reshuffle and bankruptcy of financial institutions including commercial banks, insurance and securities companies when they cannot pay off debts due or meet solvency. ========= I N D I A ========= SILICON GRAPHICS: Wants Employee Incentive Plan Implemented ----------------------------------------------------------- Pursuant to Sections 105(a) and 363(b) of the United States Bankruptcy Code, Silicon Graphics, Inc., and its debtor- affiliates ask the U.S. Bankruptcy Court for the District of New York's authority to: (i) implement an employee incentive plan to encourage the retention of and performance by certain essential, non- insider, employees; (ii) pay approximately US$330,000 outstanding under various other employee bonus and compensation programs; and (iii) continue to honor and maintain the Other Bonus Programs. Employee Incentive Plan The Employee Incentive Plan pays employees based on whether they are in one of three groups: (1) Managers/Directors -- 23 employees who hold leadership positions in the Debtors' sales, engineering, marketing, finance and human resource divisions, and are critical to the Debtors' ability to generate revenue, develop products, ensure compliance and maintain their workforce through the Chapter 11 cases and beyond. (2) Key Employees of Below-Director Status, excluding Engineers -- 19 employees in various functions, including, sales, product development, manufacturing, procurement, legal and training and development. (3) Engineers -- seven engineers who are critical to the Debtors' ability to design and develop products and support solutions. The Key Employees are eligible to receive bonuses for their continued commitment and service from Aug. 1, 2006, through July 31, 2007. Retention bonuses are payable in three installments. The total cost of the EIP for Key Employees in Groups 1 to 3 is US$2,460,427. In addition to the retention bonuses for Groups 1 to 3, the EIP provides for the creation of a discretionary bonus pool for US$539,573 from which individual bonus payments may be awarded in the Debtors' sole discretion and after approval by the Chief Executive Officer and the Compensation Committee of the Board of Directors. No. of Bonus as % of Groups Employees Annual Salary Cost of Bonus ------- --------- ------------- ------------- Group 1 23 32% US$1,327,783 Group 2 19 32% 766,356 Group 3 7 35% 366,288 Discretionary Pool TBD TBD 539,573 ---------------------------------------------------------- TOTAL TBD TBD US$3,000,000 Other Bonus Programs Prior to the Petition Date, the Debtors maintained discretionary bonus and compensation programs: * Referral Program: If a referred employee is hired by the Debtors, the referring employee is entitled to receive a cash bonus of US$2,000. Only one Referral Bonus is pending payment. * Lead Program: The Debtors reward employees for providing their sales force with leads that develop into sales revenue for the Debtors. * Special Incentive Program: From time to time, the Debtors' sales force is eligible to participate in a promotional program or contest that provides for incentives, typically in the form of a non-cash prize or award. * Discretionary Bonus Program: The Debtors have awarded, but not paid, six discretionary bonuses totaling US$55,000, of which US$9,500 has been awarded to two vice presidents in their engineering department. The Debtors also seek to pay US$10,000, earned prepetition and inadvertently paid postpetition. * Retention Bonuses: The Debtors have awarded, but not paid, four retention payments for US$18,200. In addition, the Debtors seek to pay US$5,000, earned prepetition and inadvertently paid postpetition. * Relocation Program: In limited circumstances, the Debtors reimburse newly hired employees for costs associated with relocating to their geographic location. One employee's relocation expenses for US$48,000 is pending payment. * Sign-On Bonus Program: Five employees were offered sign-on bonuses for US$94,000, which bonuses have not yet been paid. Approximately US$40,000 will be paid to one of the Debtors' senior vice presidents. The Debtors also seek Retroactive approval of two sign-on bonuses for US$6,500, that were earned prepetition and inadvertently paid postpetition. Implementation is Necessary Gary T. Holtzer, Esq., at Weil, Gotshal & Manges LLP, in New York, asserts that the EIP should be approved because: (a) since the Petition Date, 83 employees have left Silicon Graphics, Inc., several of whom would have qualified as Key Employees under the EIP. The EIP is necessary to demonstrate the Debtors' commitment to their Key Employees and to avoid further losses associated with attrition; (b) its implementation will foster employee morale and provide motivation to Key Employees to focus on and remain loyal to the Debtors; (c) it will help eliminate the substantial out-of-pocket costs that would result if the Debtors were required to replace the Key Employees, including, recruiter or headhunter fees and signing bonuses and moving expenses for replacement employees; (d) it will help the Debtors retain: * access to important institutional knowledge which would be difficult to replace through the outside job market, due to the Key Employees' specialized skills; and * key contacts with customers and vendors, including those with the federal government; (e) it will facilitate the Debtors' ability to continue to realize value from the significant time and resources they incurred in recruiting, training and retaining their Key Employees and help them retain the Key Employees; and (f) it will help the Debtors mitigate the domino effect of additional employee departures that can accompany the loss of a particular Key Employee. About Silicon Graphics Headquartered in Mountain View, California, Silicon Graphics, Inc. (OTC: SGID) -- http://www.sgi.com/-- offers high- performance computing. SGI helps customers solve their computing challenges, whether it's sharing images to aid in brain surgery, finding oil more efficiently, studying global climate, providing technologies for homeland security and defense, enabling the transition from analog to digital broadcasting, or helping enterprises manage large data. Silicon Graphics has operations in India, Australia, China, Japan, New Zealand and sales offices in Hong Kong, Korea, Malaysia, Indonesia, the Philippines, Singapore, Thailand, and Vietnam. The Debtor and 13 of its affiliates filed for Chapter 11 protection on May 8, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10977 through 06-10990). Debtor affiliates filing separate chapter 11 petitions: * Silicon Graphics Federal, Inc. * Cray Research, LLC * Silicon Graphics Real Estate, Inc. * Silicon Graphics World Trade Corporation * Silicon Studio, Inc. * Cray Research America Latina Ltd. * Cray Research Eastern Europe Ltd. * Cray Research India Ltd. * Cray Research International, Inc. * Cray Financial Corporation * Cray Asia/Pacific, Inc. * ParaGraph International, Inc. * WTI-Development, Inc. Gary Holtzer, Esq., and Shai Y. Waisman, Esq., at Weil Gotshal & Manges LLP, represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed total assets of US$369,416,815 and total debts of US$664,268,602. SILICON GRAPHICS: LSI Logic Group Demands Return of All Goods ------------------------------------------------------------- LSI Logic Corporation, Engenio Information Technologies, Inc., Engenio Information Technologies Europe Limited, and their subsidiaries and affiliated entities, delivered goods to Silicon Graphics, Inc. In accordance with the Uniform Commercial Code and Section 546(c) of the Bankruptcy Code, LSI demands immediate return of all goods received by Silicon Graphics, Inc., and its debtor- affiliates within the 45 days preceding the bankruptcy filing. According to Thomas M. Gaa, Esq., at Balson, Bergen & Schwab, in Palo Alto, California, the Debtors are: -- instructed to immediately make an inventory of the Goods; -- keep the Goods segregated from all other inventory, machinery and equipment; and -- not permitted to use, sell, encumber or transfer the Goods to any other party. About Silicon Graphics Headquartered in Mountain View, California, Silicon Graphics, Inc. (OTC: SGID) -- http://www.sgi.com/-- offers high- performance computing. SGI helps customers solve their computing challenges, whether it's sharing images to aid in brain surgery, finding oil more efficiently, studying global climate, providing technologies for homeland security and defense, enabling the transition from analog to digital broadcasting, or helping enterprises manage large data. Silicon Graphics has operations in India, Australia, China, Japan, New Zealand and sales offices in Hong Kong, Korea, Malaysia, Indonesia, the Philippines, Singapore, Thailand, and Vietnam. The Debtor and 13 of its affiliates filed for Chapter 11 protection on May 8, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10977 through 06-10990). Debtor affiliates filing separate chapter 11 petitions: * Silicon Graphics Federal, Inc. * Cray Research, LLC * Silicon Graphics Real Estate, Inc. * Silicon Graphics World Trade Corporation * Silicon Studio, Inc. * Cray Research America Latina Ltd. * Cray Research Eastern Europe Ltd. * Cray Research India Ltd. * Cray Research International, Inc. * Cray Financial Corporation * Cray Asia/Pacific, Inc. * ParaGraph International, Inc. * WTI-Development, Inc. Gary Holtzer, Esq., and Shai Y. Waisman, Esq., at Weil Gotshal & Manges LLP, represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed total assets of US$369,416,815 and total debts of US$664,268,602. SILICON GRAPHICS: Court Approves Stipulation Modifying Stay ----------------------------------------------------------- The United States Bankruptcy Court for the Southern District of New York approves the stipulation between Silicon Graphics, Inc., its debtor-affiliates and Christie Digital Systems USA, Inc. As reported in the Troubled Company Reporter on July 13, 2006, the Parties stipulated that: -- the automatic stay was modified solely to permit Christie Digital to serve a notice of non-renewal of the Master Subcontract Agreement. The provisions prohibiting Christie Digital to collect, assess, or recover any Prepetition claim from the Debtors or the Debtors' estates will remain in full force and effect; -- the terms of the Subcontracts remained in full force and each party remains fully obligated to complete all of its obligations as and when due under the Subcontracts and obligations under the Master Agreement that survive its expiration; -- notwithstanding the date on which the stipulation became a final order: (a) Christie Digital's Motion will be deemed a timely, sufficient and proper notice to the Debtors of its intention not to extend the Master Agreement beyond the July 31, 2006 expiration date; and (b) the Master Agreement will not be, and is not, extended past the Expiration Date. As reported in the Troubled Company Reporter on June 26, 2006, Christie Digital asked the Court to lift the automatic stay to exercise its contractually protected right to confirm that it has elected not to renew the Master Agreement by providing a written notice required by the Master Agreement. In March 2005, Christie Digital and the Debtors entered into a Master Subcontract Agreement, which provides basic, general terms for future projects that the parties might, in the future, consider entering into together. Under the projects, the Debtors were the prime subcontractor and Christie Digital was a secondary subcontractor. Edward H. Tillinghast, III, Esq., at Sheppard, Mullin, Richter & Hampton LLP, in New York, related that the Master Agreement did not require Christie Digital or the Debtors to enter into any subcontracts with each other. The Master Agreement itself was not a contract for any specific project. About Silicon Graphics Headquartered in Mountain View, California, Silicon Graphics, Inc. (OTC: SGID) -- http://www.sgi.com/-- offers high- performance computing. SGI helps customers solve their computing challenges, whether it's sharing images to aid in brain surgery, finding oil more efficiently, studying global climate, providing technologies for homeland security and defense, enabling the transition from analog to digital broadcasting, or helping enterprises manage large data. Silicon Graphics has operations in India, Australia, China, Japan, New Zealand and sales offices in Hong Kong, Korea, Malaysia, Indonesia, the Philippines, Singapore, Thailand, and Vietnam. The Debtor and 13 of its affiliates filed for Chapter 11 protection on May 8, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10977 through 06-10990). Debtor affiliates filing separate chapter 11 petitions: * Silicon Graphics Federal, Inc. * Cray Research, LLC * Silicon Graphics Real Estate, Inc. * Silicon Graphics World Trade Corporation * Silicon Studio, Inc. * Cray Research America Latina Ltd. * Cray Research Eastern Europe Ltd. * Cray Research India Ltd. * Cray Research International, Inc. * Cray Financial Corporation * Cray Asia/Pacific, Inc. * ParaGraph International, Inc. * WTI-Development, Inc. Gary Holtzer, Esq., and Shai Y. Waisman, Esq., at Weil Gotshal & Manges LLP, represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed total assets of US$369,416,815 and total debts of US$664,268,602. SILICON GRAPHICS: Goodwin Procter Represents Ad Hoc Committee ------------------------------------------------------------- Allan S. Brilliant, a partner at Goodwin Procter LLP, informs the United States Bankruptcy Court for the Southern District of New York that his firm represents: -- the ad hoc committee of certain holders of 6.50% Senior Secured Convertible Notes, for themselves and on behalf of certain funds and managed accounts, under an Indenture dated December 24, 2003, by and between Silicon Graphics, Inc., and U.S. Bank National Association. The members of the Ad Hoc Committee are: (i) Castle Creek Partner 111 West Jackson Blvd, 20th Floor Chicago, IL 60614 (ii) Morgan Stanley & Co. Incorporated 750 Seventh Avenue New York, NY 10019 (iii) Quadrangle Group LLC 375 Park Avenue New York, NY 10152 (iv) Symphony Asset Management LLC 555 California Street, Suite 2975 San Francisco, CA 94104-1503 (v) Watershed Asset Management, LLC One Maritime Plaza, Suite 1525 San Francisco, CA 94111 -- the members of the Ad Hoc Committee in their capacity as DIP Lenders under the US$70,000,000 Post-Petition Loan and Security Agreement, dated as of May 8, 2006, and the US$130,000,000 Post-Petition Loan and Security Agreement. The lenders under the DIP Loan Agreement are: (i) Quadrangle Master Funding Ltd. c/o Quadrangle Group LLC 375 Park Avenue New York, NY 10152 (ii) Encore Fund, L.P. c/o Symphony Asset Management LLC 555 California Street, Suite 2975 San Francisco, CA 94104-1503 (iii) Watershed Technology Holdings, LLC c/o Watershed Asset Management, LLC One Maritime Plaza, Suite 1525 San Francisco, CA 94111 Mr. Brilliant relates that each member of the Ad Hoc Committee is a creditor in the Debtors' Chapter 11 cases and collectively hold, or manage or advise beneficial owners of, the notes issued under the 6.50% Senior Secured Note Indenture in the aggregate principal amount of at least US$104,028,000. All members of the Ad Hoc Committee have purchased notes issued under the 6.50% Senior Secured Note Indenture in the secondary market. The Debtors have agreed to pay Goodwin's fees and disbursements during the cases. To date, the Debtors have not paid certain ofGoodwin's outstanding fees and expenses, Mr. Brilliant says. About Silicon Graphics Headquartered in Mountain View, California, Silicon Graphics, Inc. (OTC: SGID) -- http://www.sgi.com/-- offers high- performance computing. SGI helps customers solve their computing challenges, whether it's sharing images to aid in brain surgery, finding oil more efficiently, studying global climate, providing technologies for homeland security and defense, enabling the transition from analog to digital broadcasting, or helping enterprises manage large data. Silicon Graphics has operations in India, Australia, China, Japan, New Zealand and sales offices in Hong Kong, Korea, Malaysia, Indonesia, the Philippines, Singapore, Thailand, and Vietnam. The Debtor and 13 of its affiliates filed for Chapter 11 protection on May 8, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10977 through 06-10990). Debtor affiliates filing separate chapter 11 petitions: * Silicon Graphics Federal, Inc. * Cray Research, LLC * Silicon Graphics Real Estate, Inc. * Silicon Graphics World Trade Corporation * Silicon Studio, Inc. * Cray Research America Latina Ltd. * Cray Research Eastern Europe Ltd. * Cray Research India Ltd. * Cray Research International, Inc. * Cray Financial Corporation * Cray Asia/Pacific, Inc. * ParaGraph International, Inc. * WTI-Development, Inc. Gary Holtzer, Esq., and Shai Y. Waisman, Esq., at Weil Gotshal & Manges LLP, represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed total assets of US$369,416,815 and total debts of US$664,268,602. SILICON GRAPHICS: Wants to Issue Credit Memos to Customers ---------------------------------------------------------- Shai Y. Waisman, Esq., at Weil, Gotshal & Manges LLP, in New York, relates that instead of receiving cash refunds, customers who have purchased products, warranties, or maintenance and support contracts from Silicon Graphics, Inc., and its debtor- affiliates have requested that credits be issued to their accounts with the Debtors. The Credit Memos may only be applied to the customers' future purchases of the Debtors' products or services. Historically, customers have requested Credit Memos for various reasons, including: 1. cancellation by the customer of a product order or a maintenance and service contract; and 2. overpayment by a customer. Generally, after a customer requests that a Credit Memo be issued, the Debtors work with the customer to gather information and analyze the validity of the customer's request. Once the Debtors validate the customer's Credit Memo request, the Debtors issue a Credit Memo in the appropriate amount to the customer's account. The customer may then apply the Credit Memo towards future purchases of the Debtors' products or services. According to Mr. Waisman, the Debtors want to continue their customer refund program and issue Credit Memos to customers to ensure customer satisfaction, effectively compete with their market, develop and sustain customer loyalty, improve profitability, and generate goodwill for the Debtors and their products. Mr. Waisman tells the U.S. Bankruptcy Court for the Southern District of New York that Credit Memos avoid the need to issue cash refunds to customers, which are less likely to yield future benefits to the Debtors, as customers are not obligated to use their cash refund to make additional purchases from the Debtors. On the other hand, Credit Memos incentivize customers to continue their business relationship with the Debtors as opposed to purchasing similar products and services from a competitor. At this time, the Debtors have reviewed and approved approximately US$100,000 worth of Credit Memo requests submitted prepetition, which are currently outstanding. By this motion, the Debtors seek the Court's authority to: -- continue their Refund Program, including the ordinary course practice of issuing Credit Memos to customers; and -- perform and honor their prepetition obligations under the Refund Program, including the issuance of approximately US$100,000 in Credit Memos relating to refund credit requests received prepetition. About Silicon Graphics Headquartered in Mountain View, California, Silicon Graphics, Inc. (OTC: SGID) -- http://www.sgi.com/-- offers high- performance computing. SGI helps customers solve their computing challenges, whether it's sharing images to aid in brain surgery, finding oil more efficiently, studying global climate, providing technologies for homeland security and defense, enabling the transition from analog to digital broadcasting, or helping enterprises manage large data. Silicon Graphics has operations in India, Australia, China, Japan, New Zealand and sales offices in Hong Kong, Korea, Malaysia, Indonesia, the Philippines, Singapore, Thailand, and Vietnam. The Debtor and 13 of its affiliates filed for Chapter 11 protection on May 8, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10977 through 06-10990). Debtor affiliates filing separate chapter 11 petitions: * Silicon Graphics Federal, Inc. * Cray Research, LLC * Silicon Graphics Real Estate, Inc. * Silicon Graphics World Trade Corporation * Silicon Studio, Inc. * Cray Research America Latina Ltd. * Cray Research Eastern Europe Ltd. * Cray Research India Ltd. * Cray Research International, Inc. * Cray Financial Corporation * Cray Asia/Pacific, Inc. * ParaGraph International, Inc. * WTI-Development, Inc. Gary Holtzer, Esq., and Shai Y. Waisman, Esq., at Weil Gotshal & Manges LLP, represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed total assets of US$369,416,815 and total debts of US$664,268,602. SILICON GRAPHICS: Court Gives Nod on Compensation Procedures ------------------------------------------------------------ At Silicon Graphics, Inc., and its debtor-affiliates' behest, Judge Allan L. Gropper of the United States Bankruptcy Court for the Southern District of New York established uniform procedures for the payment and reimbursement of various court-approved professionals on a monthly basis, on terms comparable to procedures established in other large Chapter 11 cases. The Court directed the Debtors to include all payments to professionals on their monthly operating reports, detailed so as to state the amount paid to each professional. As reported in the Troubled Company Reporter on May 31, 2006, the Debtors proposed that: (a) Each Professional seeking payment will serve a monthly statement, on or before the 30th day of each month after the month payment is sought, on: * Silicon Graphics, Inc., * Weil, Gotshal & Manges LLP, * the attorneys for the Official Committee of Unsecured Creditors; and * the Office of the United States Trustee. (b) The monthly statement does not need to be filed with the Court and a copy does not have to be delivered to the presiding bankruptcy judge's chambers. (c) For Professionals who bill based on time, each monthly fee statement must contain a list of the individuals who provided services during the statement period, their billing rates, the aggregate hours spent, a reasonably detailed breakdown of the disbursements incurred and contemporaneously maintained time entries. (d) The Notice Parties will have 15 days to review a statement. If a Party objects to the payment or reimbursement, it must, by no later than 35 days after the end of the month for which compensation is sought, serve a written notice of objection containing the nature of the objection, upon: * the Professional whose statement is objected to; and * the Notice Parties. (e) At the expiration of the 35-day period, and in the absence of objection, the Debtors will promptly pay 80% of the undisputed fees and 100% of the undisputed expenses in each monthly statement. (f) If the Debtors receive an objection to a fee statement, they will withhold payment on that objected portion of the fee statement and promptly pay the remainder of the fees and disbursements. (g) If the parties to an objection are able to resolve their dispute, then the Debtors will promptly pay that portion of the fee statement, which is no longer subject to an objection. (h) All unresolved objections will be preserved and presented to the Court at the next interim or final fee application hearing. (i) An objection will not prejudice the objecting party's right to object to any fee application made to the Court in accordance with the Bankruptcy Code on any ground. (j) Every 120 days, but no more than every 150 days, each of the Professionals will serve and file an application for interim or final Court approval and allowance of the compensation and reimbursement of expenses requested. (k) At least 30 days prior to the fee application hearing, the Debtors' attorneys will notify the Court, the U.S. Trustee and all retained professionals, of the time, Date and location of the fee hearing, the period covered by the fee applications, and the objection deadline. (l) Any Professional who fails to file an application seeking approval of compensation and expenses previously paid when due: * will be ineligible to receive further monthly payments of fees until further Court order; and * may be required to disgorge any fees paid since the retention or the last fee application, whichever is later. (m) The pendency of an application or a Court order that payment of compensation or reimbursement of expenses was improper as to a particular statement will not disqualify a Professional from the future payment of compensation or reimbursement of expenses. (n) Neither the payment of, nor the failure to pay, monthly compensation and reimbursement will have any effect on the Court's interim or final allowance of compensation and reimbursement of any Professional. (o) The attorneys for the Creditors Committee may collect and submit statements of expenses, with supporting evidence of payment, from members of the Committee the person represents. However, the Committee attorneys must ensure that the reimbursement requests comply with the Court's Administrative Orders dated June 24, 1991, and April 21, 1995. About Silicon Graphics Headquartered in Mountain View, California, Silicon Graphics, Inc. (OTC: SGID) -- http://www.sgi.com/-- offers high- performance computing. SGI helps customers solve their computing challenges, whether it's sharing images to aid in brain surgery, finding oil more efficiently, studying global climate, providing technologies for homeland security and defense, enabling the transition from analog to digital broadcasting, or helping enterprises manage large data. Silicon Graphics has operations in India, Australia, China, Japan, New Zealand and sales offices in Hong Kong, Korea, Malaysia, Indonesia, the Philippines, Singapore, Thailand, and Vietnam. The Debtor and 13 of its affiliates filed for Chapter 11 protection on May 8, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10977 through 06-10990). Debtor affiliates filing separate chapter 11 petitions: * Silicon Graphics Federal, Inc. * Cray Research, LLC * Silicon Graphics Real Estate, Inc. * Silicon Graphics World Trade Corporation * Silicon Studio, Inc. * Cray Research America Latina Ltd. * Cray Research Eastern Europe Ltd. * Cray Research India Ltd. * Cray Research International, Inc. * Cray Financial Corporation * Cray Asia/Pacific, Inc. * ParaGraph International, Inc. * WTI-Development, Inc. Gary Holtzer, Esq., and Shai Y. Waisman, Esq., at Weil Gotshal & Manges LLP, represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed total assets of US$369,416,815 and total debts of US$664,268,602. ================= I N D O N E S I A ================= BANK RAKYAT: Posts 3.41% Improvement in Net Profit -------------------------------------------------- PT Bank Rakyat Indonesia (Persero) Tbk booked a net profit of IDR2.008 trillion in the first semester of 2006, up by 3.41% from the IDR1.942-trillion net profit posted in the same period last year, Antara News reports. The bank's director for small and medium businesses, Sulaiman Arif Arianto, said that the hike in Bank Rakyat's net profit was attributed mostly to a 23.89% rise in income from interest, from IDR8.238 trillion to IDR10.206 trillion. Net income from interest in the first semester of this year reached IDR6.705 trillion, up by 9.61% from the IDR6.117 trillion in the same period last year. Funds from third parties in the 2006 half-year period rose by 20.55% to IDR107.87 trillion from IDR89.481 trillion in the 2005 first half. The bank's total assets also rose by 19.11%, to IDR135.155 trillion in the first half of 2006, from IDR113.474 trillion in the first half of 2005. Bank Rakyat's capital adequacy ratio was up from 15.64% in the first semester of 2005 to 19.06% in the first semester this year. Mr. Sulaiman said that until June 2006, the bank's total credits for small and medium business sector reached IDR72.119 trillion or 87.67% of total Bank Rakyat credits recorded at IDR68.725 trillion. The bank's total credits in general rose by 19.70%, compared with total credits in the first semester last year, reaching IDR68.725 trillion or up by around 8% compared to credits distributed in December 2005, which reached around IDR75.533 trillion. Mr. Sulaiman adds that the business segment that gave the biggest contribution to the growth was micro and retail sectors contributing IDR3.995 trillion and IDR6.096 trillion, consecutively. Bank Rakyat's lending to deposit ratio in the first semester was recorded at 76.26%. "Gross non-performing loans until June were recorded at 5.09% or better than the gross NPL by June 2005 which was recorded at 5.62%. The net NPL by June 2006 meanwhile is recorded at 2.19% or improving from 2.31% which was the net NPL by June 2005," Mr. Sulaiman said. The bank's financials submitted to the Surubaya Stock Exchange include these financial data: PT Bank Rakyat Indonesia (Persero) Tbk Balance Sheet Accounts (in IDR, millions) As of As of 06/30/2006 06/30/2005 ---------- ---------- Total assets 135,154,521 113,473,610 Cash 2,795,235 2,401,386 Marketable Securities 17,173,412 10,451,519 Loans 75,602,709 62,544,814 Total liabilities 121,330,210 101,663,045 Funds from third parties 107,870,051 89,480,639 Borrowings 1,869,634 1,734,696 Total equity 13,824,311 11,810,565 PT Bank Rakyat Indonesia (Persero) Tbk Income Statement Accounts (in IDR, millions) For the half year ended 06/30/2006 06/30/2005 ---------- ---------- Interest revenues 10,206,328 8,238,353 Interest expense 3,501,279 2,120,926 Net interest revenues 6,705,049 6,117,427 Other operating revenues 638,908 705,554 Other operating expenses 3,913,434 3,673,183 Income from operations 2,606,788 2,546,739 Net Income 2,008,175 1,941,867 About Bank Rakyat Indonesia Headquartered in Jakarta, Indonesia, PT Bank Rakyat Indonesia (Persero) Tbk's -- http://www.bri.co.id/-- clients services comprise Savings, Credits and Syariah. In addition, the bank divides its financial and business services into three groups: Business Services, consisting of bank guarantees, bank clearance, automatic teller machines and safe deposit boxes; Financial Services, consisting of bill payments, CEPEBRI, INKASO, deposit acceptance, online transactions and transfers, and Other Services, consisting of tax and fine payments, donations, Western Union and zakat contributions. During the year ended December 31, 2005, the bank had one branch office in Cayman Islands and two representative offices in New York and Hong Kong, respectively. * * * A Troubled Company Reporter - Asia Pacific report on May 24, 2006, stated that Fitch Ratings affirmed Bank Rakyat Indonesia's: -- Long-term Foreign Currency Issuer Default Rating 'BB-'; -- Short-term 'B'; -- Individual 'C/D'; -- Support '4'. The outlook for the ratings is stable. A subsequent TCR-AP report on July 6, 2006, indicated that Moody's Investors Service has placed Bank Rakyat Indonesia's D- bank financial strength rating on review for possible upgrade. BRI's other ratings were unaffected: -- Subordinated debt of Ba3; and -- Long-term/short-term deposit ratings of B2/Not Prime. Outlook stable. GAJAH TUNGGAL: Higher Raw Material Prices Cut Net Profit -------------------------------------------------------- PT Gajah Tunggal Tbk reports a 38.2% decline in its net profit in the first semester of 2006, from IDR204.36 billion in the same period last year to IDR126.10 billion, according to the company's financials submitted to the Surubaya Stock Exchange. Antara News reports that PT Gajah Tunggal Tbk Financial Director Catherina Wijaya told an Indonesian Investors' Forum in Jakarta that the decline is caused by increases in the prices of rubber and crude oil. The company's financial statement reveals a 14.01% rise in net sales to IDR2.65 billion in the first six months of 2006 to IDR2.33 billion a year ago. Cost of sales, however, increased 16.48% to IDR2.28 billion in 2006. The company's financials, in Indonesia, includes these financial data: PT Gajah Tunggal Tbk Financial Highlights (in IDR, millions) As of As of 06/30/2006 06/30/2005 ---------- ---------- Total current assets 2,507,327 2,267,923 Total assets 7,410,162 6,672,195 Total current liabilities 1,251,645 1,439,976 Total non-current liabilities 4,018,295 3,343,040 Total liabilities 5,269,940 4,783,016 Total equity 2,140,222 1,889,179 For the half-year ended 06/30/2006 06/30/2005 ---------- ---------- Net sales 2,653,739 2,327,637 Cost of sales 2,278,068 1,955,746 Gross profit 375,671 371,891 Operating expenses 164,263 134,487 Income from operations 211,408 237,404 Net Income 126,102 204,353 About PT Gajah Tunggal Tbk Headquartered in Jakarta, Indonesia, PT Gajah Tunggal Tbk -- http://www.gt-tires.com/-- is primarily engaged in the production and marketing of a range of tires and inner tubes for motorcycles, passenger cars, commercial cars, off the road vehicles and industrial and heavy equipment vehicles. Its products are marketed to both domestic and international markets, including Australia, the United States and other countries in Asia and Europe. These products can be purchased in approximately 5,000 retail outlets around the world. The company's subsidiaries, which are engaged in the general trading and financial services, the distribution sector and the chemical industry, include GTT Netherlands B.V., GT 2005 Bonds B.V., PT Prima Sentra Megah and PT Polychem Indonesia Tbk. The company operates a production facility in Tangerang. * * * The Troubled Company Reporter - Asia Pacific reported on June 23, 2006, that Moody's Investors Service had confirmed its B2 corporate family rating for PT Gajah Tunggal and its B2 senior unsecured rating for GT 2005 Bonds BV's US$325 million bonds guaranteed by GT, with a negative outlook. The ratings outlook is revised to negative. KALTIM PRIMA: Parent Cancels US$3.2-Billion Divestiture ------------------------------------------------------- PT Kaltim Prima Coal will stay with its parent, PT Bumi Resources, the Jakarta Post reports. Bumi Resources has canceled a US$3.2-billion deal to sell its two coal mining units to a consortium of local companies led by PT Renaissance Capital following a prolonged delay in the closing of the transaction. Bumi's finance director, Eddie Soebari, told the Jakarta Post that his company was forced to cancel the deal after seeing no clear sign as to when the consortium would be able to finalize the deal. The consortium had, however, been given the option to buy up to 25% of Bumi's shares in the two mining companies, despite the cancellation. The Post explains that Renaissance, run by former Deloitte Touche Tohmatsu partner Samin Tan, agreed on March 17, 2006, to buy Bumi's two coal mining units, PT Kaltim Prima Coal and PT Arutmin Indonesia, both of which operate in East Kalimantan. Renaissance agreed to pay Bumi US$3.2 billion for 95% of Kaltim Prima Coal and 100% of Arutmin. Bumi had already extended the deadline for the closing of the sales twice, The Post says. Bumi, which is controlled by the family of Coordinating Minister for the People's Welfare Aburizal Bakrie, said earlier that the company would merge with another company run by the family, Energy Mega Pesada, to create one of Indonesia's largest energy- based companies after the divestment of its coal units. The company said that a larger part of the proceeds from the divestment would be injected into the merged company, which would expand into biofuel production. The money would be used to pay dividends to the existing shareholders and to repay the company's debts. Mr. Soebari said that Bumi would go ahead with the merger plan but acknowledged that the company would have to raise at least US$800 million in loans to repay the debts due to the scrapping of the deal with Renaissance. Without the sale, Bumi will have less money to invest in a planned merger with Energi Mega Persada, Indonesia's second- largest publicly traded oil company. About Kaltim Prima Coal Headquartered in Jakarta Indonesia, PT Kaltim Prima Coal -- http://www.kaltimprimacoal.co.id/-- is a world class coal mine in the Kalimantan Timur region of Indonesia. KPC provides community development support to areas such as small business development, health programs, infrastructure programs, education and scholarships, and agricultural training. * * * The Troubled Company Reporter -- Asia Pacific reported on April 12, 2006, that Standard & Poor's Ratings Services, on April 11, affirmed its BB- corporate credit rating on Indonesia's PT Kaltim Prima Coal and revised its outlook to negative from stable. MATAHARI PUTRA: First Quarter Net Income Grows 20.5% YoY -------------------------------------------------------- Matahari Putra Prima Tbk has unveiled its financial results for the first quarter of 2006. The financials reveal positive growth in net sales and net income compared to the results a year ago despite a weak retail environment and difficult economic conditions following fuel price increases in 2005. Total net sales for the first quarter 2006 grew by 27%, reaching IDR1.68 trillion, from IDR1.33 trillion in first quarter of 2005, supported by growth in its two core retail businesses: 6.4% growth in the department store division with total net sales reaching IDR842.6 billion and 67.4% growth in the supermarket/hypermarket division with total net sales reaching IDR751.3 billion, mainly driven by the growth of hypermarkets. Operating profit grew by 253.8% from IDR16.5 billion in the first quarter of 2005 to IDR58.3 billion in first quarter of 2006. EBITDA grew 53.9% from IDR86.5 billion in the first quarter of 2005 to IDR133.1 billion in the first quarter of this year. Net income (after tax) reached IDR12 billion in this year's first quarter, up from IDR10 billion in first quarter of last year, which represents 20.5% YoY growth. The company's financials, submitted to the Surubaya Stock Exchange, include these financial highlights (in IDR, millions): For the half year ended June 30, 2006 June 30, 2005 ------------- ------------- Net Sales 1,683,886 1,326,281 Cost of Sales 1,224,425 929,678 Gross Profit 459,461 396,603 Operating Expenses 401,193 380,134 Operating Income 58,268 16,469 Other Charges (41,977) (10,062) Income Before Income Tax 16,528 8,878 Net Income 12,201 10,124 About Matahari Putra Headquartered in Tangerang, Indonesia, PT Matahari Putra Prima Tbk -- http://www.matahari.co.id/-- is a consumer goods company engaged in the retail business, providing clothes, jewelries, bags, shoes, cosmetics, electronics appliances, toys, stationeries, books, drugs and other everyday needs. It is also engaged in the family entertainment industry through the operation of Time Zone, a game center. The company operates Matahari Supermarket, Hypermart stores, Cut Price stores, Boston Drugs pharmacies, Baker's Delight bakeries, Deli Bon stores and Market Place grocery stores. During the year ended December 31, 2005, the company opened its first store in Shenzhen, China, 13 Hypermart stores, four Cut Price stores and one Matahari Supermarket. * * * The Troubled Company Reporter - Asia Pacific reported on May 23, 2006, that Moody's Investors Service assigned its (P)B1 local currency corporate family rating to PT Matahari Putra Prima Tbk. At the same time, Moody's has assigned its (P)B1 foreign currency senior unsecured rating to Matahari Finance BV's proposed bond of up to US$300 million, which is guaranteed by Matahari. The ratings outlook is stable. Earlier TCR-AP reports on May 15, and May 22, 2006, stated that Standard & Poor's Ratings Services has raised its corporate credit rating on Indonesia's PT Matahari Putra Prima Tbk to "B+" from "B-", with a stable outlook, while the company's proposed long-term senior unsecured bonds of up to US$300 million to be issued by Matahari Finance B.V., a special purpose financing vehicle wholly owned by Indonesia-based retailer PT Matahari Putra Prima Tbk, got a 'B+' rating. NEWERA FOOTWEAR: Pefindo Affirms idCCC Rating --------------------------------------------- Indonesia ratings company Pefindo affirmed its "idCCC" ratings for PT Newera Footwear Indonesia and the company's Bond I/2003 amounting to IDR31.5 billion and at the same time removed the ratings from Creditwatch, as the company finally transferred the fund for its 11th coupon payment to PT Kustodian Sentral Efek Indonesia on August 23, 2006. The payment realization was two days late, so the company should pay penalty. At the same time, PEFINDO assigned negative outlook to the above ratings in view of the likelihood that in the near term the company might not be able to fulfill its financial obligations such as providing sinking funds for Bond's principal and interest as well as paying its quarterly coupons due to the company's weak cash flow problem, triggered primarily by unfavorable business condition nowadays. Weaker consumer purchasing power and stricter competition within the industry have substantially reduced the company's sales. About Newera Footwear PT Newera Footwear Indonesia is a footwear distributor in Indonesia covering daily footwear products including sport and traveling shoes that are particularly offered to middle to low- income people, from children to adults. The Company is a license holder of Newera brand, while its footwear productions are subcontracted to several shoes manufacturers in East Java. * * * An earlier TCR-AP report on June 2, 2006, stated that Pefindo downgraded its ratings for PT Newera Footwear Indonesia and its IDR31.5-billion Bond I/2003 to "idCCC" from "idBB+," indicating the company's incapability to fulfill the required sinking fund of IDR3.15 billion after the 180-day grace period ended on May 21, 2006. A subsequent TCR-AP report on August 14, 2006, said that Indonesian rating agency Pefindo put the ratings of PT Newera and its Bond I/2003 amounting to IDR31.5 billion on Creditwatch, with negative implications, following the Company's incapability to provide the sinking fund for the payment of its 11th coupon due on July 20, 2006, although its Trustee, PT Bank Permata Tbk, had given the Company a 14-day grace period for the payment (up to August 10, 2006). The 11th coupon payment itself will be due on August 20, 2006. In addition, Newera has not fulfilled the required principal sinking fund of IDR3.15 billion (the grace period was ended on May 21, 2006). PERUSAHAAN GAS: Stake Sale to Be Completed by November ------------------------------------------------------ The Government plans to sell another chunk of state gas utility firm PT Perusahaan Gas Negara by November 2006 to help cover this year's budget deficit, the Jakarta Post reports. The Troubled Company Reporter - Asia Pacific had reported on August 11, 2006, regarding the Ministry of State Enterprises' plan to sell a portion of its controlling 61% stake in PGN via a global tender in order to meet a privatization target of IDR3 trillion. No time frame was specified, the TCR-AP noted. Now, the Jakarta Post says, Minister Sugiharto puts the stake sale within the next three months. Minister Sugiharto said that the stake would be sold at the same time as the company wrapped up the construction of a gas pipeline from Sumatra to West Java. The pipeline project, scheduled to be up and running by December, is expected to help lift PGN's value, with investors seeing even better earnings prospects for the company. Construction of the pipeline began in 2005. The Post explains that the Indonesian Government plans to sell 185 million of its shares in PGN -- or the equivalent of 5.3% of its shareholding -- valued at some IDR2.4 trillion (US$264 million). Besides PGN, the Government also plans by the end of the year to sell stakes in Indonesia Power, a subsidiary of state power utility PT Perusahaan Listrik Negara, and state turnpike operator PT Jasa Marga. It also has its remaining stakes in Bank Permata and Bank International Indonesia to put on the block, the report states. However, The Post adds, Minister Sugiharto said that further divestment could be put on hold if the proceeds from PGN this time around were enough on their own. About Gas Negara Headquartered in Jakarta, Indonesia, PT Perusahaan Gas Negara (Persero) Tbk -- http://www.pgn.co.id/-- is a gas and energy company that is comprised of two core businesses: distribution and transmission. For distribution, PGN signs long-term supply agreements with upstream operators, which give the company scheduled and reliable gas volumes and fixed gas prices. These volumes are subsequently sold to commercial and industrial customers under gas sales agreements. Under these agreements, sales volumes are take-or-pay and the gas pricing is fixed and in US dollar. On the transmission business, PGN ships gas on behalf of the upstream suppliers under a fixed US dollar tariff with ship-or-pay volumes agreements. The company is 59.4% owned by the Government of Indonesia * * * The Troubled Company Reporter - Asia Pacific reported on June 28, 2006, that Fitch Ratings Agency assigned these ratings to PT Perusahaan Gas Negara Tbk on June 27: -- Long-term foreign currency Issuer Default Rating 'BB-'; -- Long-term local currency IDR 'BB-'; and -- PGN Euro Finance 2003 Limited's IDR1.12-trillion notes due 2014 and IDR1.35-trillion notes due 2013 guaranteed by PGN and its subsidiaries 'BB-'. Additionally, the TCR-AP said on May 23, 2006, that Moody's Investors Service has upgraded the foreign currency debt rating of PGN Euro Finance 2003 Ltd. and guaranteed by PT Perusahaan Gas Negara to Ba3 from B1. This rating action follows Moody's decision to upgrade Indonesia's foreign currency sovereign rating for bonds from B2 to B1. At the same time, Moody's has affirmed the Ba2 corporate family rating of PGN. The rating outlook is stable. Standard & Poor's Rating Services had, on Nov. 24, 2005, affirmed its 'B+' rating on PGN. PUTRA SUMBER: Posts 61% Lower Net Loss -------------------------------------- Putra Sumber Utama Timber posted a 61.12% narrower net loss for the first-half of 2006, to IDR24.97 billion from IDR64.23 billion a year ago, according to the company's financial statement. The company's revenues improved 13.54% to IDR327.86 billion for the first-half period ending June 30, 2006, from IDR288.77 billion in the first-half period in 2005. Cost of sales, however, also went up to IDR287.99 billion, bringing a lower gross profit of IDR39.86 billion. Operating expenses amounted to IDR56.46 billion -- higher than the previous corresponding period's IDR48.16 billion -- gave the company a loss from operations of IDR16.60 billion. The company's submitted financials to the Surubaya Stock Exchange include these figures: As of As of 06/30/2006 06/30/2005 ---------- ---------- Current assets IDR208,662,557,177 IDR224,155,806,112 Total assets 891,919,372,108 888,723,335,280 Current liabilities 384,243,849,720 489,888,352,995 Shareholder's equity 205,646,597,675 122,306,986,972 For the period ending 06/30/2006 06/30/2005 ---------- ---------- Revenues IDR327,857,747,059 IDR288,767,064,504 Cost of sales 287,993,700,357 240,010,458,754 Gross Profit 39,864,046,701 48,756,605,750 Income from Operations (16,596,782,992) 592,761,863 Net loss 24,969,714,772 64,229,379,004 About Putra Sumber Putra Sumber Utama Timber -- http://www.hasko.co.id/-- is one of the leading manufacturing company in plywood and Laminated Veneer Lumber in Indonesia. It is a subsidiary of the HASKO Group, a group of companies focusing on timber related products. * * * The Troubled Company Reporter - Asia Pacific reported on May 16, 2006, that Indonesian rating agency, Pefindo, has affirmed its ratings of "idBB+" for PT Putra Sumber Utama Timber and the Company's Bond I/2003 of IDR200 billion. The ratings strongly reflect the Group commitment to repay the Company's Bond I/B of IDR100 billion due May 2006. As agreed on April 11, 2006, the Group is scheduled to transfer US$10 million into trustee account on May 1, 2006, at the latest to repay the maturing debt. The ratings also reflect lack of raw material (logs) availability and the Company's decreased profitability and limited cash flow protections. TELKOM INDONESIA: Reports Robust Growth in Net Income ----------------------------------------------------- Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk posts a IDR5.82-trillion net income in the first half of 2006, a 53% improvement against the IDR3.80 trillion net income it posted a year ago, according to the company's financials submitted to the Surubaya Stock Exchange. The increase was mainly due to the appreciation of the Indonesian rupiah against the United States dollar, with the company recording from a IDR357-billion loss on foreign exchange in 2005 to a IDR587-billion gain on foreign exchange in 2006. Consolidated operating income also increased by 33.66% from IDR8.09 trillion to IDR10.81 trillion. Operating revenues increased by 23.79% due to the increase in Cellular, Interconnection, and Data and Internet of 47.34%, 13.34% and 33.83%, respectively: * Cellular Revenues increased by IDR3.03 trillion or 47.3%, mainly due to the increase of 35.8% in Telkomsel's subscribers. * Data and Internet Revenues increased by IDR1.03 trillion or 33.8 %, mainly due to 25.8 % growth in TelkomNet Instan usage to 1,732 million minutes as well as an increase in SMS production from Telkomsel and TELKOMFlexi of 133.9% and 55.1%, respectively. * Interconnection Revenues increased by IDR484.4 billion or 13.3% compared to the same figure last year, mainly due to the growth in local and DLD interconnection traffic to cellular from fixed line. On the other hand, fixed line revenue slightly decreased by 2.49% due to the slight decrease in traffic for long distance calls. Operating expenses increased by 16.73% due to the increase in Depreciation Expense, General and Administrative Expenses and Operation and Maintenance Expenses of 30.37%, 22.35% and 20.78%, respectively. As of June 30, 2006, Telekom Indonesia's balance sheet showed strained liquidity with IDR14.88 trillion in total current assets available to pay IDR19.76 trillion in total current liabilities coming due within the next 12 months. Moreover, Telekom Indonesia's total assets as of June 30, 2006, reflected IDR67.66 trillion, against total liabilities of IDR37.21 trillion. Telekom Indonesia also announced its dividend payment for the year 2005 of IDR219,051 per share. Telkom Indonesia's financials also include these financial data (in IDR, billions): For the half year ended June 30, 2005 June 30, 2006 ------------- ------------- Operating Revenues 19,385 23,997 Operating Expenses 11,295 13,185 Operating Income 8,089 10,812 Net Income 3,803 5,819 As of As of June 30, 2005 June 30, 2006 ------------- ------------- Operating margin 41.73% 45.06% Profit Margin 19.62% 24.25% Current ratio 74.26% 75.31% Return on Assets 6.50% 8.60% Return on Equity 20.07% 23.95% Debt to Equity 78.75% 50.96% Debt to EBITDA 125.93% 79.50% CEO Expects 20% Growth in Revenue in 2006 Telkom Indonesia expects to get a total of 12 million new customers, which include mobile, fixed-line and fixed-wireless users, Chief Executive Officer Arwwin Rasyid told Don Jones Newswires on the sidelines of an international investment conference. Telkom owns 65% of Indonesia's largest mobile operator by assets and subscribers, Telkomsel. "For Telkomsel itself, we expect the company to get up to 8 million new cellular subscribers this year," Mr. Rasyid said. Analysts said that this target is realistic given the low level of penetration of mobile phones in Indonesia. Only around 19% of Indonesia's population of 220 million own mobile phones, providing considerable room for growth. Analysts expect penetration to increase to 25% in 2006 and 35% in 2007. Telkom had around 8.5 million fixed-line subscribers at end- December 2005, and expect an increase of up to 2% this year. For 2005, Mr. Rasyid expects Telkom's revenue to grow by up to 25% to around IDR 42.5 trillion (US$1=IDR 9,120) from around IDR34 trillion in 2004. About Telkom Indonesia Based in Bandung, Indonesia, Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk -- http://www.telkom-indonesia.com/ -- provides local and long-distance telephone service in Indonesia. Known as Telkom, the company also offers fixed- wireless service, leased lines, and data transport through affiliates. * * * As reported in the Troubled Company Reporter - Asia Pacific on May 22, 2006, Moody's Investors Service gave Telekomunikasi Indonesia a Ba1 local currency corporate family rating. Standard & Poor's Ratings Services gave the Company foreign and local currency corporate credit ratings of BB+. TELKOM INDONESIA: Appoints PwC As Auditor For 2006 -------------------------------------------------- PT Telekomunikasi Indonesia Tbk has selected KAP Drs. Haryanto Sahari & Rekan, affiliate of Pricewaterhouse Coopers, as its independent auditor to perform an integrated audit for the financial year 2006 consisting of auditing the Company's Consolidated Financial Statements and internal control on its financial reporting year 2006, according to a company press release. PwC was selected and appointed based on a limited bidding process, which was participated in by public accounting firms who have fulfilled its legal and independent requirements as stipulated by the capital markets authorities upon which the shares of the company are listed and determined by the Company's AGM Resolution, dated June 30, 2006. About Telkom Indonesia Based in Bandung, Indonesia, Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk -- http://www.telkom-indonesia.com/ -- provides local and long-distance telephone service in Indonesia. Known as Telkom, the company also offers fixed- wireless service, leased lines, and data transport through affiliates. * * * As reported in the Troubled Company Reporter - Asia Pacific on May 22, 2006, Moody's Investors Service gave Telekomunikasi Indonesia a Ba1 local currency corporate family rating. Standard & Poor's Ratings Services gave the Company foreign and local currency corporate credit ratings of BB+. TELKOMSEL INDONESIA: Chooses Ericsson For WCDMA Network ------------------------------------------------------- Ericsson has been selected by PT Telekomunikasi Selular Indonesia to provide its WCDMA network in Indonesia, according to media reports. Cellular News explains that Ericsson will, on a full turnkey basis, seamlessly upgrade Telkomsel's network with increased capacity, providing higher data rates and enhancing end-user experience through High-Speed Packet Access. In a three-year agreement, Ericsson will deliver 3G/WCDMA radio and core network, including HSPA, with deployment beginning immediately. The contract also includes three years of managed services, with Ericsson providing a comprehensive services offering including establishing, operating and managing the operations of Telkomsel's 3G network. The deal expands Ericsson's geographical footprint in Indonesia, which will cover 11 provinces: East Java, South Sumatra, North Sumatra, West Sumatra, Riau, Kalimantan, Sulawesi, Bali, Nusa Tenggara, Maluku and Irian Jaya. About Telkomsel PT Telekomunikasi Selular Indonesia -- http://www.telkomsel.com/ -- is the leading operator of cellular telecommunications services in Indonesia by market share. By the end of June 2006, Telkomsel had close to 29.3 million customers, which, based on industry statistics, represented a market share of more than 50%. Telkomsel provides GSM cellular services in Indonesia, through its own nationwide Dual band 900/1800 MHz GSM network, and internationally, through 259 international roaming partner in 153 countries as of June 2006. The company provides its subscribers with the choice between two prepaid cards-simPATI and kartuAs of a pre-paid simPATI service, or the post-paid kartuHALO service, as well as a variety of value-added services and programs. * * * A Troubled Company Reporter - Asia Pacific report on Dec. 20, 2005, stated that Standard & Poor's Ratings Services raised the foreign currency corporate credit ratings of PT Telekomunikasi Selular (Telkomsel) from BB- to BB+ with a stable outlook, and its local currency corporate rating from BB to BB+ with a stable outlook, following a review of the impact of risk factors such as economic structure, growth prospects, political stability, depth and liquidity of capital markets and transfer and convertibility risk. Another TCR-AP report said that Fitch Ratings gave Telekomunikasi Selular a BB long-term issuer default rating effective on August 18, 2006. The outlook is stable. Additionally, Fitch Ratings gave the company's local currency a BB+ rating, while its foreign currency got a BB- rating. Both ratings carry a positive outlook. ========= J A P A N ========= HERBALIFE LTD: Completes US$165-Million Bond Redemption ------------------------------------------------------- Herbalife Ltd -- formerly known as WH Holdings (Cayman Islands) Ltd. -- disclosed the completion of its previously announced election to redeem its outstanding US$165 million aggregate principal amount of 9-1/2% Notes due 2011. The Company used the proceeds from its new US$200 million term loan to fund the redemption at the mandatory price of approximately US$110.07 per US$100.00 aggregate principal amount of Notes and to pay closing costs. On July 21, 2006, the Company announced that it had advised the Bank of New York of its election to redeem the Notes in connection with the refinancing of its former senior secured credit facility. The Company also had announced that it expects to incur an after-tax one-time charge of approximately US$14.0 million related the refinancing, representing the call premium on the Notes and the write-off of unamortized deferred financing costs. The Company's new debt structure is comprised of a US$300.0 million senior secured credit facility, consisting of a US$200.0 million, seven-year term loan and a US$100.0 million, six-year revolving credit facility. "This recapitalization is just another step towards strengthening our overall capital structure, by improving our flexibility to repay debt and reducing our annual interest expense," said Rich Goudis, the Company's chief financial officer. The Company expects to realize the accretive benefit of this recapitalization beginning in the fourth quarter of 2006. About Herbalife Ltd. Herbalife Limited -- http://www.herbalife.com/-- is a global network marketing company that sells weight-management, nutritional supplements and personal care products intended to support a healthy lifestyle. Herbalife products are sold in 62 countries through a network of more than one million independent distributors. The company supports the Herbalife Family Foundation -- http://www.herbalifefamily.org/-- and its Casa Herbalife program to bring good nutrition to children. Herbalife of Japan K.K. is headquartered in Minato-ku, Tokyo. * * * Standard & Poor's Ratings Services rated Herbalife Ltd.'s long- term foreign and local issuer credit ratings at BB+. MITSUBISHI MOTORS: Posts July Production, Sales, Exports Figures ---------------------------------------------------------------- Mitsubishi Motors Corporation, on August 28, 2006, unveiled global production, as well as domestic sales and export results, for July 2006. Total global production totaled 107,192 units, 88.3% of the previous year's total. Japanese production reached 62,571 units, a decline of 2.1% from the year-ago period. Total vehicle sales in Japan came to 21,029 units, a 3.3% increase year-on-year, making July the 15th consecutive month of year-on-year sales growth in Japan. Total sales for passenger cars came to 14,329 units, up 7.8% over the July 2005 total on sales of new models, while commercial vehicle sales fell 5.2% over the previous year to 6,700 units. The decline in commercial vehicles stemmed from lower sales of the Pajero and Delica models, which will undergo model changes later this fiscal year. Overseas production for the month totaled 44,621 units, 77.6% of the total for July 2005. European production showed a 44.9% increase year-on-year to 6,495 units due to brisk sales of the new Colt CZC cabriolet model. Asian production totaled 27,106 units, 67% of the year-ago total due to unfavorable economic conditions in markets such as Indonesia, Malaysia, and Taiwan. Lastly, North American production fell slightly to 7,585 units, down 2.2% over the previous period total. Total exports from Japan grew strongly year-on-year to 36,068 units, up 13.6%. Exports to Europe increased a small 2.9% over July 2005 to 12,447 units and exports to Asia came to 2,819 units, 76.8% of the year ago total. Similar to Asian production, the decline in exports to Asia stemmed from poor economic conditions for the industry. Exports to North America remained stable at 5,055 units, 100.5% of total for July 2005. About Mitsubishi Motors Corp. Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation -- http://www.mitsubishi-motors.co.jp/-- is one of the few automobile companies in the world that produces a full line of automotive products ranging from 660-cc mini cars and passenger cars to commercial vehicles and heavy-duty trucks and buses. The Company also operates consumer-financing services and provides this to its customer base. MMC adopted the "Mitsubishi Motors Revitalization Plan" on January 28, 2005, as its three- year business plan covering fiscal 2005 through 2007, after investor DaimlerChrysler backed out from the Company. The main objectives of the plan are "Regaining Trust" and "Business Revitalization." * * * Japan Credit Rating Agency, Ltd., on July 18, 2006, upgraded the Company's senior debts rating to BB- from B- with a stable outlook, as its restructuring has been going well as planned, with Mitsubishi group firms increasing their stakes in MMC to 34.3% as of March 31, 2006. Rating & Investment Information Inc. had on July 31, 2006, upgraded its issuer rating on Mitsubishi Motors Corp. from CCC+ to B with a stable outlook and its commercial paper rating from c to b, and has removed the rating from its monitor at the same time. ========= K O R E A ========= KOREA EXCHANGE BANK: Lone Star's Sale to Kookmin Faces Delay ------------------------------------------------------------ The deadline for United States-based Lone Star Funds to complete its planned sale of Korea Exchange Bank to Kookmin Bank may be extended beyond Sept. 16, 2006, Dow Jones Newswire reports, citing a person familiar with the matter. Jeongjin Lim of Dow Jones notes that September 16 is the original deadline set for Lone Star to completed the KEB Sale. The Troubled Company Reporter - Asia Pacific reported on March 24, 2006, that Lone Star has agreed to sell its 64.62% stake in KEB to Kookmin Bank. According to the report, Kookmin, reportedly South Korea's largest retail bank by assets, will have to pay KRW6.4 trillion for the takeover. Dow Jones relates that Kookmin Bank and Lone Star agreed to put off the transaction until mid-September under the assumption that a probe by South Korean prosecutors into Lone Star would be completed by then. Dow Jones notes that if the Kookmin/Lone Star deal pushes through, it will be one of the largest corporate takeovers in South Korea in 2006. Ms. Lim says that Kookmin Bank and Lone Star declined to comment regarding the matter. About Korea Exchange Korea Exchange Bank -- http://www.keb.co.kr/english/index.htm-- was established in January 1967 by the Government originally as a specialist foreign exchange bank. It retains its strength in trade finance and foreign exchange. In terms of assets, it ranks sixth among Korea's nationwide commercial banks with 7% of system assets. It operates a branch network of 317 domestic and 28 overseas offices. During the economic crisis, significant exposures to troubled corporate borrowers led to a deterioration in the bank's financial health. However, since then, its operating performance stabilized, and the bank has reported consecutive quarterly profits since the end of 2003. Fitch Ratings gave Korea Exchange Bank a 'C' Individual Rating effective on June 17, 2005. Moody's Investors Service gave KEB a 'D' Bank Financial Strength Rating effective on May 9, 2006. * * * South Korean politicians -- led by the main opposition Grand National Party -- have alleged that the Korea Exchange shares were sold cheap to United States-based Lone Star Funds after the Bank's financial status was incorrectly reported. Korea Exchange denied the allegations in March 2006. The Board of Audit and Inspections and the Supreme Public Prosecutors' Office initiated separate investigations into the matter. On June 20, 2006, the BAI determined that Lone Star's acquisition of Korea Exchange was led by management with the approval of the financial supervisory bureau. BAI found that KEB exaggerated its insolvency and falsely recorded the Bank for International Settlements' capital adequacy ratio at 6.16%, which is below the 8% threshold for healthy banks. Prosecutors are investigating whether there were any transgressions of law in the process of selling KEB and whether bribes were given to officials. If prosecutors will find solid evidence that the data was cooked up, it might lead to the nullification of the KEB sale to Lone Star and the arrest of regulators, policymakers and former KEB executives. KRISPY KREME: Reaches US$4.75M Settlement in ERISA Suit ------------------------------------------------------- Keller Rohrback, L.L.P. lawyer T. David Copley asked the United States District Court for the Middle District of North Carolina to preliminarily approve a settlement in the class action "Smith v. Krispy Kreme Doughnut Corp., et al." In May 2006, the company reached an a agreement resolving an Employee Retirement Income Security Act class action filed against Krispy Kreme Doughnuts, Inc., and individual defendants including certain members of its board of directors, officers and employees, the Class Action Reporter reported on May 17, 2006. The settlement included a one-time cash payment to be made by the company's insurer in the amount of US$4,750,000. The company and the individual defendants denied wrongdoings. If the settlement is finalized, it will impact members of a settlement class consisting of participants in the company's retirement savings plan from Jan. 1, 2003, through May 12, 2006. In addition to the cash payment by the company's insurer, the company will amend the plans to cause the merger of the Krispy Kreme Profit Sharing Stock Ownership Plan into the 401(k) Plan. Case Background The company and certain of its current and former officers and employees were served with the complaint on Mar. 16, 2005, which asserts claims for breach of fiduciary duty under ERISA. Plaintiffs purport to represent a class of persons who were participants in or beneficiaries of the company's retirement savings plan or profit sharing stock ownership plan between Jan. 1, 2003, and the date of filing and whose accounts included investments in the company's common stock. Plaintiffs, who seek unspecified monetary damages and other relief, contend that: -- defendants failed to manage prudently and loyally the assets of the plans by continuing to offer the company's common stock as an investment option and to hold large percentages of the plans' assets in the company's common stock; -- failed to provide complete and accurate information about the risks of the company's common stock; -- failed to monitor the performance of fiduciary appointees; and -- breached duties and responsibilities as co-fiduciaries. The plaintiffs filed an amended complaint on Jul. 1, 2005, asserting the same claims they asserted in their original complaint. The defendants received an extension of time to respond to the amended complaint, and on Dec. 15, 2005, filed a motion to dismiss the amended complaint for failure to state a claim on which relief may be granted. A copy of the Motion for Preliminary Approval is available at: http://ResearchArchives.com/t/s?1073 The suit is "Smith v. Krispy Kreme Doughnut Corp., et al., Case No. 1:05-cv-00187-WLO," filed in the U.S. District Court for the Middle District of North Carolina under Judge William L. Osteen. Representing the plaintiffs are: (1) T. David Copley of Keller Rohrback, L.L.P., 1201 3rd. Ave., Seattle, WA 98101, Phone: 206-623-1900, Fax: 206- 623-3384, e-mail: dcopley@kellerrohrback.com and (2) Gary V. Mauney of Lewis & Roberts, 5960 Fairview Rd., Ste. 102, Charlotte, NC 28210-3102, US, Phone: 704-347- 8990, Fax: 704-347-8929, e-mail: garymauney@lewis-roberts.com Representing the defendants are: (1) Adam H. Charnes of Kilpatrick Stockton, L.L.P., 1001 W. Fourth St., Winston-Salem, NC 27101, Phone: 336-607- 7382, Fax: 336-734-2602, e-mail: acharnes@kilpatrickstockton.com (2) Stacey Cerrone of Proskauer Rose, LLP, 909 Poydras St., Ste. 1100, New Orleans, LA 70112, US, Phone: 504-310- 4089, Fax: 504-310-2022, e-mail: scerrone@proskauer.com and (3) Michael Scott Fox of Tuggle Duggins & Meschan, P.A., P.O.B. 2888, Greensboro, NC 27402, Phone: 336-271-5244, Fax: 336-274-6590, e-mail: mfox@tuggleduggins.com About Krispy Kreme Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme (NYSE: KKD) --http://www.krispykreme.com/-- is a leading branded specialty retailer of premium quality doughnuts, including the Company's signature Hot Original Glazed. There are currently approximately 300 Krispy Kreme stores and 90 satellites operating systemwide in the U.S., Australia, Canada, Mexico, the United Kingdom and the Republic of South Korea. Headquartered in Winston-Salem, North Carolina, Freedom Rings LLC is a majority-owned subsidiary and franchisee partner of Krispy Kreme Doughnuts, Inc., in the Philadelphia region. The Debtor operates six out of the approximately 360 Krispy Kreme stores and 50 satellites located worldwide. The Company filed for chapter 11 protection on Oct. 16, 2005 (Bankr. D. Del. Case No. 05-14268). M. Blake Cleary, Esq., Margaret B. Whiteman, Esq., and Matthew Barry Lunn, Esq., at Young Conaway Stargatt & Taylor, LLP, represent the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it estimated US$10 million to US$50 million in assets and debts. Headquartered in Oak Brook, Illinois, Glazed Investments, LLC, is a 97%-owned unit of Krispy Kreme. Glazed filed for chapter 11 protection on Feb. 3, 2006 (Bankr. N.D. Ill. Case No. 06- 00932). The bankruptcy filing will facilitate the sale of 12 Krispy Kreme stores, as well as the franchise development rights for Colorado, Minnesota and Wisconsin, for approximately US$10 million to Westward Dough, the Krispy Kreme area developer for Nevada, Utah, Idaho, Wyoming and Montana. Daniel A. Zazove, Esq., at Perkins Coie LLP represents Glazed in its restructuring efforts. When Glazed filed for protection from its creditors, it estimated assets and debts between US$10 million to US$50 million. KremeKo, Inc., Krispy Kreme's Canadian franchisee, is currently restructuring under the Companies' Creditors Arrangement Act. Pursuant to the Court's Initial Order, Ernst & Young Inc. was appointed as Monitor in KremeKo's CCAA proceedings. The Monitor is attempting to sell the KremeKo business. STANDARD CHARTERED FIRST BANK: Fitch Affirms C Individual Rating ---------------------------------------------------------------- Fitch Ratings has affirmed Standard Chartered First Bank's ratings as follows: * Long-term Issuer Default Rating 'A', * Short-term rating 'F1', * Individual rating 'C', and * Support rating '1'. The rating Outlook is Stable. SCFB's Long-term rating is underpinned by the strength of its parent, Standard Chartered Bank ("SCB", rated 'A+'/Stable/'F1'), which has a 100% ownership of SCFB. Its Individual rating, meanwhile, reflects the bank's limitations in terms of profitability and capitalization in South Korea. Following its acquisition by Newbridge Capital in 1999, SCFB's strategy was to achieve high quality loan book growth by focusing on mortgages and, to a lesser extent, loans to large blue-chip corporates and its treasury operations. This resulted in low credit costs, but with intensifying competition, it also led to low margins and low profitability. In 2005, net profitability was halved as margins fell sharply. Also, despite ongoing low credit costs, SCFB's returns on assets and equity were very poor, at just 0.13% and 3.3%, respectively. Also putting a drag on profitability was the KRW120 billion one-off cost relating to the integration with SCB. Going forward, the agency expects SCFB's profitability to improve as SCB, which acquired the bank from Newbridge in April 2005, redirects the bank towards higher yielding small- and medium-sized enterprises, credit cards and other unsecured personal loans. Though this will entail higher risk, Fitch understands that the move will be a gradual process and expects it to be well-managed as it is currently implementing the credit risk management systems of SCB. The agency also notes that SCFB's margins should improve faster due to more fee income, particularly from its treasury and trading services, as the bank leverages off SCB's global strength. That said, Fitch warns that the process will take time and over the coming years, profitability may continue to be constrained by a need for higher loan loss charges. To date, while the bank's low-risk strategy of mortgage and blue-chip lending has resulted in low credit costs, it has not be able to avoid problems arising from its small portfolio of SME loans. Delinquencies rose sharply over FY05 and Q106 to stand at 5.70% at May 31, 2006, compared to 4.39% at end-2005 and 1.39% at end- 2003. While overall non-performing loans have remained low, 1.58% at end-2005 compared to 1.50% at end-2004, reserves coverage was limited given a further 3.80% level of precautionary loans (1.29% at end-2003). The bank's capitalization was only just adequate with total and Tier I CARs of 10.7% and 7.1% at end-2005 due to the bank's limited profitability and loan quality problems. The Outlook on SCFB's ratings is Stable. Being just one notch below SCB's long-term rating, there is little scope of a higher Long-term rating on SCFB at this stage. The agency notes that as SCFB comprises 27% of SCB's total assets, any problems at SCFB would be negative for the group. However, over time, SCFB's profitability and balance sheet strength is expected to improve, which will lead to an improved Individual rating. Established in 1929, SCFB was nationalized in 1998, before being sold to Newbridge in 1999 and later, to SCB in April 2005. It is Korea's sixth-largest of seven nationwide commercial banks with 5.1% of system-wide assets. =============== M A L A Y S I A =============== AKTIF LIFESTYLE: Members Pass All AGM Resolutions ------------------------------------------------- All resolutions tabled at Aktif Lifestyle Corporation Berhad's 12th Annual General Meeting on August 24, 2006, have been duly passed. During the meeting, members: -- received and adopted the Company's Audited Financial Statements for the financial year ended February 28, 2006, together with the reports of the directors and auditors; -- approved the payment of directors' fees for the year ended February 28, 2006; -- re-elected as director Chan Teik Huat, who retired pursuant to the Company's Articles of Association; -- reappointed Deloitte KassimChan as auditors of the Company and authorized the directors to fix Deloitte's remuneration; -- authorized the directors to issue shares in the Company at any time until the conclusion of the next Annual General Meeting and on terms and conditions and for purposes deemed fit by the directors provided that the aggregate number of shares to be issued does not exceed 10% of the issue share capital of the Company for the time being; and -- transacted any other ordinary business for which due notice was given. About Aktif Lifestyle Headquartered in Kuala Lumpur, Malaysia, Aktif Lifestyle Corporation Berhad's principal activities is the operation of specialty retail stores. Other activities include investment holding. The Company has defaulted on several loan facilities and incurred continuous losses. It embarked on various corporate exercises aimed at regularizing its financial condition. In 2005, the Company presented a proposed restructuring scheme, hich did not win the Securities Commission's favor due to uncertainty in assets valuation and concerns on corporate governance issues. An appeal to the SC to review its decision on the Proposed Restructuring Scheme was already submitted. As reported by the Troubled Company Reporter - Asia Pacific, Bursa Malaysia Securities Berhad, on June 8, 2006, commenced delisting procedures against Aktif, which is a Practice Note 10 company. In a statement, Bursa Securities said that Aktif has failed to ensure that its level of operations is adequate in accordance to the listing requirements. DATUK KERAMAT: Continues to Fail Submission of Financials --------------------------------------------------------- Datuk Keramat Holdings Berhad said that it will not be able to submit its interim financial report for the first quarter ended March 31, 2006, by the end of the extended timeframe on August 31, 2006. The submission of the financial statement will be delayed, as the Company is still working on its proposed restructuring scheme. The Troubled Company Reporter - Asia Pacific reported on July 26, 2006, that the revamp plan has also prevented Datuk Keramat from issuing its Annual Audited Accounts for fiscal 2005, which was due in July 31, 2006. The expected date to submit the Report will depend on the outcome of the proposed restructuring scheme. The TCR-AP reported on May 29, 2006, that the Company's securities have already been suspended since August 1, 2005, because it has not issued the Annual Audited Accounts and Annual Report for the 15-month period ended December 31, 2004, Quarterly Reports for the periods ended March 31, 2005, June 30, 2005, and September 30, 2005, by the given due dates. The TCR-AP also noted that the Company has failed to submit its quarterly report for the period December 31, 2005, to the Bursa. The report was due on February 28, 2006. Furthermore, on June 6, 2006, the TCR-AP reported that Datuk Keramat has not issued its first quarterly report ended March 31, 2006, which was due on May 31, 2006. About Datuk Keramat Headquartered in Pulau Pinang, Malaysia, Datuk Keramat Holdings Berhad is engaged in investment and property holding. The Company is also involved in management services; property investment services; project management services and development; credit and financing activities; distribution and publication of magazines; media design and advertising; management of supermarket and departmental store; trading and distribution of pharmaceutical, management of car park, garment manufacturing and financial services. The Group is facing numerous suits filed by financiers and trade creditors who have alleged that outstanding debts are owed to them. On January 24, 2005, the Company was served with a wind- up petition by Affin Bank Bhd, who claimed a sum of MYR15.66 million in respect of revolving credit facilities granted to the Company. JIN LIN: June 30 Balance Sheet Reveals Insolvency ------------------------------------------------- Bursa Malaysia Securities Berhad, on August 24, 2006, received Jin Lin Wood Industries Berhad's financial report for the quarter ended June 30, 2006. For the quarter under review, the Group recorded a loss before taxation of MYR2,403,000 compared with a loss before taxation of MYR8,179,000 in the year preceding corresponding quarter. The Group's turnover increased by 12% to MYR2,635,000 from MYR2,352,000 recorded in the preceding year corresponding quarter. For the current quarter, the Group continued to record a low turnover of MYR2,635,000. The low turnover with the high operating fixed cost resulted in a loss before taxation of MYR9,348,000 for the 12 months financial period ended June 30, 2006. The losses for the financial period-to-date incurred by the Group consist of depreciation and finance cost amounting to MYR7.610 million and MYR1.880 million, respectively. The company's balance sheet as of June 30, 2006, revealed current assets of MYR3,884,000 available to pay current liabilities of MYR99,490,000 that fall due within the next 12 months. The company has a net current deficit of MYR32,641,000. The balance sheet also showed total assets of MYR66,849,000 and total liabilities of MYR100,292,000, resulting into a stockholders' deficit of MYR33,443,000. As of June 30, 2006, the Company accumulated losses of MYR114,660,000. No dividend has been declared in respect of the financial period under review. The Company's Fourth Quarter Report and its accompanying notes are available for free at: http://bankrupt.com/misc/tcrap_jinlin082806.pdf http://bankrupt.com/misc/tcrap_jinlinnotes082806.pdf About Jin Lin Headquartered in Kuala, Lumpur Malaysia, Jin Lin Wood Industries Berhad is engaged in the manufacture and trade of timber and related timber products. The Company is also involved in warehousing, chemical treatment, and investment holding. As of June 30, 2006, the Company's balance sheet showed total assets of MYR66,849,000 and total liabilities of MYR100,292,000, resulting into a stockholders' deficit of MYR33,443,000. JIN LIN: Unveils Results of Meetings ------------------------------------ Shareholders of Jin Lin Wood Industries Berhad approved at a Court Convened Meeting on August 25, 2006, the Proposed Scheme of Arrangement in respect of the Company's proposed restructuring scheme. Jin Lin's shareholders have also duly approved the special and ordinary resolutions tabled at the Extraordinary General Meeting pertaining to the Proposed Restructuring Scheme held on August 25, 2006. Both meetings will be held at Dewan Berjaya, Bukit Kiara Equestrian & Country Resort, Jalan Bukit Kiara, Off Jalan Damansara, 60000 Kuala Lumpur, Malaysia. About Jin Lin Wood Industries Headquartered in Kuala, Lumpur Malaysia, Jin Lin Wood Industries Berhad is engaged in the manufacture and trade of timber and related timber products. The Company is also involved in warehousing, chemical treatment, and investment holding. As of March 31, 2006, the Company's balance sheet showed total assets of MYR68,666,000 and total liabilities of MYR99,706,000 resulting into a shareholders deficit of MYR31,040,000. MALAYSIA PACKAGING: 2nd Quarter Pre-tax Loss Jumps to MYR509,000 ---------------------------------------------------------------- Malaysia Packaging Industrial Berhad submitted on August 24, 2006, its financial report for the second quarter ended June 30, 2006, to Bursa Malaysia Securities Berhad. For the quarter ended June 30, 2006, the company recorded a turnover of MYR16.7 million as against MYR18.7 million in the same quarter last year, representing a reduction of MYR2 million or 11%. The company registered a pre-tax loss of MYR509,000 in the quarter under review as against a pre-tax profit of MYR116,000 in the corresponding quarter. Higher loss incurred in current quarter was mainly due to sales mix and higher production cost. The turnover for the quarter under review was slightly higher at MYR16.7 million as against MYR15.9 million in the immediate preceding quarter. The Company registered a pre-tax loss of MYR509,000 for the quarter under review as compared to a pre-tax loss of MYR81,000 in the same quarter last year. Accumulated losses stands at MYR5,837,000 as of June 30, 2006. The increase in electricity tariff, surging crude oil price and potential inflationary effect have further increased the cost of production and intensified the competition. However, the company will remain committed to its long-term strategies to develop new markets and to introduce new technologies. The directors are of the opinion that the company's performance outlook for the year is envisaged to be the same as last financial year. Meanwhile, the company's June 30, 2006, balance sheet revealed total assets of MYR61,022,000, total liabilities of MYR24,751,000, and total stockholders' equity of MYR36,271,000. There was no dividend declared or recommended for the quarter under review. The Company's Second Quarter Report and its accompanying notes are available for free at: http://bankrupt.com/misc/tcrap_malaysiapackaging082806.pdf http://bankrupt.com/misc/tcrap_malaysiapackagingIS082806.pdf http://bankrupt.com/misc/tcrap_malaysiapackagingBS082806.pdf http://bankrupt.com/misc/tcrap_malaysiapackagingCFS082806.pdf http://bankrupt.com/misc/tcrap_malaysiapackagingnotes082806.pdf About Malaysia Packaging Headquartered in Malaysia, Malaysia Packaging Industry Berhad -- http://www.maypak.com/-- is principally engaged in the manufacture of printed and laminated flexible light packaging materials such as vacuum packing, liquid packaging, sachets, snack foods, retort pouches, doypacks and capseals. The Company has been making net losses since 2003, as it is unable to increase revenue due to cutthroat competition in the market. Accumulated losses stands at MYR5,837,000 as of June 30, 2006. For the first time since its listing in 1990, the Company was not able to declare a dividend from 2004 up to the present. MBF CORPORATION: Books MYR6.9-Mil. Pre-tax Loss in 2nd Quarter -------------------------------------------------------------- MBf Corporation Berhad has submitted for public release its financial report for the second quarter ended June 30, 2006. For the quarter under revenue, the Group registered revenue of MYR14.20 million as compared with a MYR6.72-million revenue in the same quarter last year. The favorable variance in revenue for the current financial quarter was mainly due to higher sales from leisure and timeshare, and property development division. The Group recorded a pre-tax loss of MYR6.9 million for the financial quarter ended June 30, 2006, as compared with the previous year's corresponding quarter profit of MYR4.11 million. The adverse variance was mainly attributed to loss on disposal of fixed asset in a subsidiary. The Group recorded a revenue of MYR20.71 million for the current six-month financial period ended June 30, 2006, compared with the previous year's MYR16.04 million, an increase of MYR4.67 million or 29.11%. The increase in revenue was mainly due to improved sales in leisure and timeshare, and property development. Meanwhile, the Group recorded a pre-tax loss of MYR7.01 million for the six months ended June 30, 2006, compared with the previous year's corresponding financial period loss of MYR2.58 million. The adverse variance was mainly attributed to loss on disposal of fixed asset in a subsidiary. As of June 30, 2006, the Group recorded an accumulated loss figure of MYR281.33 million. As of June 30, 2006, the company's balance sheet showed strained liquidity with current assets of MYR327.78 million available to pay current liabilities of MYR334.1 million coming due within the next 12 months. The company has a net current deficit of MYR6.34 million. The June 30, 2006, balance sheet also revealed total assets of MYR570.88 million total liabilities of MYR518.8 million and total stockholders' equity of MYR52 million. There was no interim ordinary dividend paid, proposed or declared for the quarter ended June 30, 2006. The Company's Second Quarter Report and its accompanying notes are available for free at: http://bankrupt.com/misc/tcrap_mbfcorp082806.xls http://bankrupt.com/misc/tcrap_mbfcorpnotes082806.doc About MBf Corporation Headquartered in Kuala Lumpur, Malaysia, MBf Corporation Berhad is principally involved in promoting and selling property, club and timeshare memberships; leasing factoring facilities, credit cards, consumer financing and related products and property development. Other activity include investment holding. The Group operates in three main areas, namely, Malaysia, Indonesia and Hong Kong and Taiwan collectively. The Group's principal activities are mainly operated in Malaysia except for the credit card business, which is carried out in Indonesia. The Group has no significant operations in Hong Kong and Taiwan other than certain residual assets from a subsidiary that has since been liquidated in Taiwan. The Company is classified under Bursa Malaysia Securities Berhad's Practice Note 17 category and is required to formulate a plan to raise its shareholders' equity to avoid getting delisted. POLYMATE HOLDINGS: Unit Slapped With MYR1.6-Million Claim --------------------------------------------------------- Polymate Holdings Berhad's wholly owned subsidiary, Polymate Industries Berhad, was served on August 9, 2006, with a Writ of Summons and Statement of Claim dated July 17, 2006, by Titan Petchem (M) Sdn Bhd -- formerly known as Titan PP Polymers (M) Sdn Bhd. Titan Petchem is claiming a principal amount of MYR1,592,725 plus a monthly interest of 1.5% on the amounts in each of the invoices to be calculated 60 days from the date each of the invoices was issued to the date of full settlement. The plaintiff is also seeking payment for other costs and further relief that the Kuala Lumpur High Court deems fit. A list of the invoices is available for free at: http://bankrupt.com/misc/tcrap_polymateholdings082806.pdf 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. SUGAR BUN: Granted Listing of 1 Million New Shares -------------------------------------------------- Sugar Bun Corporation Berhad's additional 1,000,000 new ordinary shares of MYR1 each will be granted listing and quotation today, August 29, 2006. The new shares were derived from the exercise of 1,000,000 warrants 2002/2012. The Troubled Company Reporter - Asia Pacific reported on August 23, 2006, that Sugar Bun's additional 1,000,000 new ordinary shares of MYR1 each were granted listing and quotation on August 24, 2006. The shares were derived from the exercise of 1,000,000 warrants 2002/2012. About Sugar Bun Corp. Sugar Bun Corporation Bhd -- http://www.sugarbun.com/-- is engaged in the operation and franchising of restaurants, bakeries, and confectioneries. Its other activities include general trading of machinery, spare parts and phone cards, investment holding and provision of administrative, management and marketing services. Operations of the Group are carried out mainly in Malaysia. The Company is currently undertaking a corporate and debt restructuring program to wipe out its accumulated losses. As of April 30, 2006, the Company has accumulated losses of MYR46,190,000. SUREMAX GROUP: CMCM Slaps Over MYR62,940 Claim ---------------------------------------------- Suremax Group Berhad and its subsidiary, Suremax Marketing Sdn Bhd, were on August 24, 2006, served with a Summons dated June 6, 2006, and Statement of Claim dated June 5, 2006, by CMCM Perniagaan Sdn Bhd. Under the suit, CMCM is asserting a MYR62,940 claim plus interest of MYR17,848 accrued as of November 30, 2005. CMCM is also asking payment for continued interest on the principal amount at a monthly rate of 1.50% calculated from December 1, 2005, until the date of full settlement. In addition, CMCM is also demanding payment for legal costs incurred and other relief that the Kuala Lumpur High Court deems fit. Suremax will seek legal advice from its solicitors on the next course of action. About Suremax Group Headquartered in Kuala Lumpur, Malaysia, Suremax Group Berhad is engaged in property development, construction, trading in construction materials and sub-contracting works. The firm's other activities include the provision of property management services and building construction. The Group is also involved in the manufacture and sale of ready mixed concrete. Suremax Group has suffered losses since 2004 due to sluggish market demand. For the second quarter of the financial year ended August 31, 2006, Suremax booked a pre-tax loss of MYR1.32 million. The Company is also trying to avert a series of winding up actions against its subsidiaries. On May 9, 2006, Suremax was identified as a Practice Note 17 company and was required to regularize its financial condition pursuant to the Bursa Malaysia Securities Berhad's Listing Requirements. TENAGA NASIONAL: Favors Amendment and Novation of ECA Loan ---------------------------------------------------------- On August 24, 2006, Tenaga Nasional entered into a Novation and Amendment Agreement with TNB Janamanjung Sdn Bhd, TNB Capital (L) Ltd. and Midland Bank plc -- currently known as HSBC Bank plc -- to effect the novation of the Export Credit AgencyLoan from TNB Janamanjung to TNB Capital. The novation forms part of the restructuring of the ECA Loan which entails a re-pricing of the interest rate and unification of the currencies into a single currency namely from US$, EUR and GBP into US$. Concurrently on the same date, Tenaga Nasional has issued a new Overseas Guarantee to replace the original Overseas Guarantee. As announced on June 29, 1999, Tenaga Nasional Berhad's subsidiary -- TNB Janamanjung Sdn Bhd signed a loan agreement and an engineering, procurement and construction contract for the development of Manjung 2100 MW coal Fired Power Plant project. The ECA Loan loan was signed between TNB Janamanjung and Midland Bank plc and supported by export Credit Guarantee Department Agreement of United Kingdom, Compagnie Francaise d'Assurance pour le Commerce Exterieur of France and the Garanti-Instituttet for Eksportkreditt of Norway. The ECA loan was also supported by guarantee issued by Tenaga Nasional Berhad in favor of Midland Bank plc. 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. TRADEWINDS CORP: RAM Reaffirms BBB3(s) Rating; Outlook Negative --------------------------------------------------------------- RAM has reaffirmed the long-term enhanced rating of BBB3(s) for Tradewinds Corporation MYR100 million Redeemable Secured Bonds (2000/2008). At the same time, the rating outlook on the Bonds has been revised from stable to negative. The change in the rating outlook is premised on the rescheduling of development-rights payments by its joint-venture partners, which is expected to weaken Tradewinds Corp's cashflow at company level. In view of the rescheduling of one of Tradewinds Corp's main sources of cashflow, the disposal of some of its non-core assets over the next three years will be critical towards supporting its financial obligations at company level. Slow progress of asset disposals, coupled with the reduced cashflow from the reorganization of development-rights payments, will affect its cashflow, more so due to heavy debt repayment over the next three years; this may exert downward pressure on the rating of the Bonds. Meanwhile, the Group's balance sheet remained weak, with more than MYR2 billion of debts as at end-December 2005; this translated into a gearing ratio of 0.92 times, albeit an improvement from 1.15 times a year earlier. Its gearing ratio had also eased at company level, from 1.00 time to 0.58 times over the same period, primarily due to the issuance of its MYR483 million 2% Irredeemable Convertible Unsecured Loan Stock (2005/2012) for the acquisition of Ambang Budi Sdn Bhd and land in Tebrau and Sedili, Johor. Despite this, Tradewinds Corp's financial position remained weak, with an operating cashflow debt coverage of just 0.06 times. On a more positive note, the Group's plantation division posted a 14.7% improvement in revenue to MYR382.3 million in FYE December 31, 2005, underscored by the increase in matured acreage and better yields of fresh fruit bunches. In addition, the completion of the merger of its plantations with those of Johore Tenggara Oil Palm Berhad boosted the Group's land bank to 145,675 hectares, making it one of the larger players within the local plantation industry. Elsewhere, the Group's sugar-refining operations -- which accounted for 42% of its revenue in FY Dec 2005 -- will remain a stable source of income and cashflow. Although the completion of its acquisition of Gula Padang Terap Sdn Bhd -- a sugar refinery in Kedah -- is expected to boost Tradewinds Corp's market share, the margins of its sugar-refining business will remain susceptible to movements in the price of raw sugar. In the meantime, the Group's hotel division registered a 2.5% improvement in revenue to MYYR291.3 million in FY Dec 2005, underpinned by healthier overall occupancy rates and room rates for the hotels under its umbrella. In this instance, the better operational performance of the Group's Crowne Plaza Mutiara Kuala Lumpur more than offset the weaker showing of Mutiara Beach Resort Penang, which had suffered reduced occupancy after the tsunami disaster in late 2004. About Tradewinds Corp. Tradewinds Corporation Berhad -- formerly known as Pernas International Holdings Berhad -- is focused on a diverse range of business activities, which include plantations, hotels, manufacturing, and properties, and aims to be the premier investment company. The Group has entered into a restructuring scheme to settle debts, curb losses and streamline its operations. In 2004, the Group's debt was significantly restructured with the reorganization of the hotel businesses. The Company also unveiled a new logo after its change of name in July 2004, in line with its corporate re-branding exercise. The Group divested some non-core assets in line with its objective to streamline its businesses. In February 2005, the acquisitions of property development land to diversify earnings and improve cash flow were completed. Tradewinds' 2005 accounts revealed a net loss of MYR48.4 million. The Troubled Company Reporter - Asia Pacific reported on April 10, 2006, that the Board of Directors of Tradewinds Corporation passed a resolution to voluntarily wind up the Company's subsidiaries: * TCB OUE Cruises Sdn Bhd; * Malaysia Timber Exports Sdn Bhd; * TCB Services Sdn Bhd; * TCB Engineering Sdn Bhd; and * TCB Komputer Sdn Bhd. ===================== P H I L I P P I N E S ===================== BANCO FILIPINO: PSE Continues Suspension of Shares Trading ---------------------------------------------------------- The Philippine Stock Exchange advised in a Memo for Brokers dated August 22, 2006, that Banco Filipino Savings & Mortgage Bank, whose trading of shares was suspended, has not submitted its Quarterly Report for period ended June 30, 2006. Accordingly, the trading of the shares of Banco Filipino will remain suspended pending compliance with the PSE's requirements. The Troubled Company Reporter - Asia Pacific reported on August 9, 2006, that Banco Filipino has yet to submit its 2005 annual report to the Securities and Exchange Commission, after the deadline, set on May 31, 2006. Therefore, the bank was ordered to pay a fee of PHP50,000 as punishment for non- compliance. The SEC said it would suspend Banco Filipino's securities registration unless it settled the fine, the report noted. The bank was given 15 days from receipt of the SEC letter to settle the penalty fee, the TCR-AP said. About Banco Filipino Banco Filipino Savings & Mortgage Bank -- http://www.bancofilipino.com/-- was organized in 1964, principally to engage in the general business of savings and mortgage banking and of a trust company and to perform such acts as may be incidental thereto. It started operations on July 9, 1964. Banco Filipino offers to the public full domestic banking services, which are five main types, namely: cash services; commercial services; loans; money market services; and trust services. The Troubled Company Reporter - Asia Pacific reported on May 17, 2006, that the Bangko Sentral ng Pilipinas approved an emergency loan of PHP190 million to Banco Filipino in order for it to remain liquid, after certain branches experienced heavy withdrawals. The state central bank had ordered Banco Filipino's closure in 1985 due to insolvency. However, the Supreme Court overturned Bangko Sentral's decision and ordered the bank to reopen in 1994 and resume business as a full service savings bank with trust operations. BENGUET CORP: Fails to Submit Quarterly Report; Shares Suspended --------------------------------------------------------------- In a Memo for Brokers dated August 22, 2006, the Philippine Stock Exchange advised that Benguet Corporation, whose trading of shares was suspended, has not submitted its Quarterly Report for the period ended June 30, 2006. Thus, the company's trading of its shares will remain suspended pending compliance with the PSE's requirements. As reported in the Troubled Company Reporter - Asia Pacific on August 11, 2006, the company has yet to submit its fiscal 2005 financial report to the Securities & Exchange Commission, due on May 31, 2006. Hence, it was ordered to pay a fine of PHP50,000 for its non-compliance. The company was given 15 days from receipt of the SEC letter to settle the penalty fee. The SEC said that it would suspend the securities registration of Benguet Corp. unless it settled the fine, the TCR-AP noted. About Benguet Corporation Benguet Corporation -- http://www.benguetcorp.com/-- was organized to primarily engage in gold mining. It expanded into chromite and copper production, and then into the fields of general engineering and industrial construction, agriculture, shipping, banking and finance, real estate and forestry-based ventures. As of March 31, 2006, Benguet Corp.'s liabilities to its creditor-banks amount to PHP1.7 billion. * * * In a financial report for the quarter ended March 31, 2006, the Company posted PHP310.66 million in current assets available to pay PHP3.865 billion in current liabilities due within the next 12 months. Benguet Corp.'s total assets for the period amount to PHP3.213 billion, compared with total liabilities of PHP4.909 billion, resulting to a PHP1.695-billion stockholder's equity deficit. JG SUMMIT: Net Income for 2nd Quarter '06 Declines to PHP953M ------------------------------------------------------------- JG Summit Holdings recorded a net income of PHP168.1 million for the 2nd quarter of 2006, a drop from the PHP953-million net income posted in the same period last year. The decline is caused mainly by foreign exchange losses arising out of its dollar-denominated liabilities and that of its subsidiaries, the company explains. Its half-year net income however, is still at PHP4.05 billion, compared to PHP1.7 billion in the same period last year, due to gains from the sale of some of its shares in Universal Robina Corporation in February 2006. The sale brought about the decrease in the Company's equity interest in URC from 86% last year to 59% this year. Consolidated revenues were up by 23.5%, from PHP32.64 billion last year to PHP40.31 billion for the same period this year. The substantial growth was driven by the continued improvement in sales and revenues of our core businesses, foods and real estate development, plus the revenue contribution of the company's petrochemicals business. JG Summit's interest income from various investment portfolios boosted its revenues, reflecting a 25.4% increase from PHP2.03 billion last year to PHP2.54 billion this year. Other income registered a significant 327.9% increase from PHP0.80 billion last year to PHP3.42 billion this year mainly due to the recognition of gain on sale from URC shares amounting to PHP3.21 billion. However, JG Summit notes that not all its business units registered a rosy picture as service revenues from its telecommunications business declined by 6%, while the textile business decreased by 11%. Gross profit for the six months ended June 30, 2006, amounted to PHP11.71 billion, higher by 14% from last year's PHP10.26 billion. Operating expenses went up 14.7% from PHP8.28 billion for the first half of last year to PHP9.50 billion this year. Financing costs and other charges incurred for the six months was up by 11%, from PHP3.47 billion last year to PHP3.85 billion this year. The increase in level of the Company's financial debt contributed to higher finance cost this year. EBITDA increased from PHP9.32 billion last year to PHP12.66 billion for the first half of this year. Excluding the non-recurring items, EBITDA would present a slight increase from last year's PHP9.15 billion to PHP9.45 billion this year. As of June 30, 2006, the Company's balance sheet remains solid, with consolidated assets of PHP215.86 billion from PHP201.23 billion as of December 31, 2005. Other current liabilities increased by 5% to PHP4.68 billion as of June 30, 2006 from PHP4.45 billion as of December 31, 2005, due to higher customer deposits and recognition of derivative liability from our capital markets business. Consolidated liabilities increased to PHP131.10 billion from PHP129,36 billion as of December 31, 2005. Stockholders' equity grew to PHP84.77 billion as of June 30, 2006, from PHP71.87 billion at the end of 2005. Book value per share improved from PHP9.43 per share as of December 31, 2005, to PHP9.99 per share as of June 30, 2006. JG Summit's financial report for the second quarter 2006 is available for free at: http://bankrupt.com/misc/JG_Summit_2Q2006.pdf About JG Summit Holdings JG Summit Holdings Inc. -- http://www.jgsummit.com.ph/-- is engaged in manufacturing and distributing food and agro- industrial products and commodities; development, leasing and management of real estate and hotels; manufacturing and exporting textiles; provision of voice and data telecommunication services; manufacturing of polypropylene, polyethylene and other industrial chemicals; operation of thrift bank and foreign exchange and securities dealing; provision of air transport services both domestic and international and other supplementary businesses like manufacturing of printed circuit boards; air charter services, power generation, printing services, Internet-related services, packaging materials, insurance brokering and securities investment. * * * As reported by the Troubled Company Reporter - Asia Pacific on April 12, 2006, Standard & Poor's Ratings Services assigned its B+ corporate credit rating to JG Summit, with a stable outlook. At the same time, Standard & Poor's assigned its B+ rating to the US$300 million 8% unsecured notes due 2013 issued in January 2006 by JGSH Philippines Limited, a special purpose vehicle wholly owned by JG Summit. The notes are irrevocably and unconditionally guaranteed by JG Summit. MIRANT CORP: Asia-Pacific Unit Completes US$700-Mil Financing ------------------------------------------------------------- As reported in the Troubled Company Reporter on July 13, 2006, Mirant Corporation offered to purchase up to 43,000,000 shares of its common stock, par value US$0.01 per share, at a price not greater than US$29 nor less than US$25.75 per share, net to the seller in cash. Thomas Legro, the Company's senior vice president and controller, discloses in an amended Schedule TO filed with the Securities and Exchange Commission that Mirant and its subsidiaries will pool in approximately US$1,250,000,000 to fund the Offer: Mirant Entity Distribution ------------- ------------ Mirant Corporation US$300,000,000 Mirant Americas Generation, LLC 175,000,000 Mirant Asia-Pacific Limited, LLC 740,000,000 Other subsidiaries 35,000,000 On July 31, 2006, Mirant Asia-Pacific Limited and Mirant Sweden International AB, as borrowers, and certain banks, as lenders, with Credit Suisse, Singapore Branch, as facility agent, entered into a six-year term loan facility. Bloomberg News says a consortium of 16 banks and financial institutions has stepped forward and agreed to lend up to US$700,000,000: (1) ABN Amro Holding NV (2) BNP Paribas SA (3) Bank of Tokyo-Mitsubishi UFJ (4) Bank of Philippine Islands (5) Banco De Oro Universal Bank (6) Bayerische Hypo-und Vereinsbank AG (7) Calyon (8) Credit Suisse Group (9) Fortis Bank A.S. (10) HSBC Holdings Plc (11) ING Groep NV (12) JPMorgan Chase & Co. (13) Natexis Banques Populaires (14) Royal Bank of Scotland Group Plc (15) Sumitomo Mitsui Banking Corp (16) WestLB AG A full-text copy of the US$700,000,000 Mirant Asia-Pacific Loan Facility is available for free at: http://ResearchArchives.com/t/s?1087 According to Timothy Cuff of FinanceAsia.com, a portion of the MAPFL will be used to refinance project loans by Mirant's Philippine subsidiaries, which are scheduled for sale for approximately US$3,000,000,000. Reuters says interested buyers plan to join together to bid for Mirant's Philippine assets, six of those groups are: (a) Marubeni Corp. and Tokyo Electric Power, Inc.; (b) Electric Power Development Co., Ltd. (J-Power) and Sumitomo Corp.; (c) International Power Plc and Mitsui & Co, Ltd.; (d) Korea Electric Power Corp. and Kansai Electric Power; (e) OneEnergy Ltd., which is a venture between CLP Holdings and Mitsubishi Corp., and American International Group, among other financial institutions; and (f) a partnership involving Sojitz Corporation. Reuters adds that AES Corp. will probably join with Sumitomo and J-Power, and Philippines' Aboitiz Equity Ventures, Inc., is in talks with some foreign investors. Mirant, according to radiojamaica.com, faces some problems in the Philippines -- property tax and contractual disputes and employee compensation demands -- which may derail the sale. Jose P. Leviste, Jr., Mirant Philippines' chairman and president, said in a statement to Manila Standard Today, that the company will pay its obligations due to the Philippine government before disposing its assets. About Mirant Headquartered in Atlanta, Georgia, Mirant Corporation (NYSE: MIR) -- http://www.mirant.com/-- is an energy company that produces and sells electricity in North America, the Caribbean, and the Philippines. Mirant owns or leases more than 18,000 megawatts of electric generating capacity globally. Mirant Corporation filed for chapter 11 protection on July 14, 2003 (Bankr. N.D. Tex. 03-46590), and emerged under the terms of a confirmed Second Amended Plan on Jan. 3, 2006. Thomas E. Lauria, Esq., at White & Case LLP, represented the Debtors in their successful restructuring. When the Debtors filed for protection from their creditors, they listed $20,574,000,000 in assets and $11,401,000,000 in debts. The Debtors emerged from bankruptcy on Jan. 3, 2006. * * * As reported in the Troubled Company Reporter on July 17, 2006, Moody's Investors Service downgraded the ratings of Mirant Corporation and its subsidiaries Mirant North America, LLC and Mirant Americas Generation, LLC. The Ba2 rating for Mirant Mid- Atlantic, LLC's secured pass through trust certificates was affirmed. Additionally, Mirant's Speculative Grade Liquidity rating was revised to SGL-2 from SGL-1. The rating outlook is stable for Mirant, MNA, MAG, and MIRMA. Moody's downgraded Mirant Americas Generation, LLC's Senior Unsecured Regular Bond/Debenture, to B3 from B2. Moody's also downgraded Mirant Corporation's Corporate Family Rating, to B2 from B1, and Speculative Grade Liquidity Rating, to SGL-2 from SGL-1. Mirant North America, LLC's Senior Secured Bank Credit Facility, was also downgraded to B1 from Ba3 and its Senior Unsecured Regular Bond/Debenture, to B2 from B1. As reported in the Troubled Company Reporter on July 13, 2006, Fitch Ratings placed the ratings of Mirant Corp., including the Issuer Default Rating of 'B+', and its subsidiaries on Rating Watch Negative following its announced plans to buy back stock and sell its Philippine and Caribbean assets. Ratings affected are Mirant Corp.'s 'B+' Issuer Default Rating and Mirant Mid-Atlantic LLC's 'B+' Issuer Default Rating and the Pass-through certificates' 'BB+/Recovery Rating RR1'. Fitch also placed Mirant North America, Inc.'s Issuer Default Rating of 'B+', Senior secured bank debt's 'BB/RR1' rating, Senior secured term loan's 'BB/RR1' rating, and Senior unsecured notes' 'BB-/RR1' rating on Rating Watch Negative. Mirant Americas Generation, LLC's Issuer Default Rating of 'B+' and Senior unsecured notes' 'B/RR5' rating was included as well. Standard & Poor's Ratings Services also placed the 'B+' corporate credit ratings on Mirant Corp. and its subsidiaries, Mirant North American LLC, Mirant Americas Generating LLC, and Mirant Mid-Atlantic LLC, on CreditWatch with negative implications. NATIONAL POWER: Inks MOU with Laos' EDL for Tech'l Cooperation -------------------------------------------------------------- National Power Corporation will soon be exporting its professional services and expertise in electric plant engineering, operations and maintenance services, and rural electrification, with the signing of a Memorandum of Understanding with Electricite Du Laos on July 28, 2006, during the 24th ASEAN Ministers on Energy Meeting held in Laos. National Power President Cyril C. Del Callar notes that the MOU with EDL is just the first. "We are confident that we will be able to sign similar agreements with other utilities in the ASEAN region, or even beyond such as those in Europe and the Americas. But significantly for ASEAN utilities, National Power has parallel experiences with them given the similarities in our geography, culture, society, and history. Exchanging expertise with them will strengthen our ties as a people and as economic partners," Mr. Del Callar says. The scope of services stipulated for cooperation in the MOU include: (a) technoeconomic analysis, feasibility studies, and general plant design; (b) environmental engineering services including environmental impact studies and environmental compliance for power plants; (c) construction of power plants including site engineering supervision and project management; (d) ISO Certification and surveillance procedures; (e) watershed and dams management. Both utilities will also undertake cooperation activities on the training of electric power plant operators by sharing facilities, as well as sharing information on rural electrification, including cost reduction and technical efficiency in management. The MOU also calls for the creation of direct channels of communications between the top management of both National Power and EDL to pursue the implementation of work plans that will be formulated based on the MOU. About National Power Headquartered in Quezon City, Philippines, National Power Corporation -- http://www.napocor.gov.ph/-- is a state-owned utility that builds and operates nuclear, hydroelectric, thermal, and alternative power generating facilities. It works with independent producers under a build-operate-transfer program. With a generating capacity of more than 11,500 megawatts, Napocor sells electricity to distributors and industrial companies. To comply with the privatization bill approved by the Philippine Congress, the Company has begun selling off its generation assets to help pay for its estimated debt of PHP600 billion. It also separated its transmission operations into a new subsidiary, the National Transmission Corporation. * * * National Power first incurred losses in 1998 after the Asian financial crisis and expensive contract terms from independent power producers. The Company posted a PHP29.9 billion loss in 2004, after a net loss of PHP117 billion in 2003. The Government absorbed National Power's PHP200 billion debt, which was incurred when the government-owned-and-controlled corporation adopted international accounting standards, forcing the Company to report its foreign exchange losses. The Troubled Company Reporter - Asia Pacific reported on April 5, 2006, that for 2005, National Power posted a PHP16-million profit for the first time in seven years, on the Energy Regulation Commission's approval of a rate increase, the use of improved fuel mix and better fuel prices. PHILIPPINE LONG DISTANCE: Board Okays 3-Year Strategic Plan ----------------------------------------------------------- On August 28, 2006, the Board of Directors of Philippine Long Distance Telephone Company approved in principle, the broad outline of the PLDT Group's strategic plans for 2007 to 2009. The Group's strategic plans will focus on the development of new revenue streams to drive future growth while protecting its existing core communications business, particularly its traditional voice service revenues in light of a shift towards more data and other converged services. PLDT Group has moved steadily towards a convergence business model/platform over the recent past. The Group intends to continue pursuing the development of next generation services on its wireless and fixed line infrastructures, expand broadband and other data services, exploit opportunities in the content side to complete the triple-play potential as well as increase its participation in the call center/business process outsourcing sector. To ensure the proper execution of the Group's three-year plans as presented -- particularly with respect to the manpower resources being committed to the plans -- a new Long-Term Incentive Plan, on the endorsement of the Executive Compensation Committee, was approved by the Board to cover the period 2007 to 2009. As a result of the establishment of the New LTIP, the Board also approved the early vesting of the current Long-Term Incentive Plan by the end of 2006. The establishment of the New LTIP for the next three years -- the award of which is contingent on the successful achievement of certain targets -- aligns the execution of the new business strategies of the Group over the same period. In addition, the New LTIP ensures the continuity of management and assists in succession planning for the Group. It also allows PLDT Group to cover new hires and key management in newly acquired businesses to participate in the New LTIP as well as support a more aggressive retention and pruning process. The strategic plans and the New LTIP intimately align the PLDT shareholders and management in achieving the profit targets and the resulting increase in shareholder value created from the successful execution of the strategic plans over the plan period. About PLDT Based in Makati City, Philippines, Philippine Long Distance Telephone Co. -- http://www.pldt.com.ph/-- is the leading national telecommunications service provider in the Philippines. Through three principal business groups -- wireless, fixed line, and information and communications technology -- the company offers a wide range of telecommunications services to over 22 million subscribers in the Philippines across the nation's most extensive fiber optic backbone and fixed line, cellular and satellite networks. * * * Moody's Investors Service placed a Ba1 local currency corporate family rating on PLDT. Moody's also affirmed the company's Ba2 foreign currency senior unsecured ratings, with a negative outlook. Standard & Poor's placed the company's long-term foreign issuer credit rating at BB+. ================= S I N G A P O R E ================= ARMSTRONG INDUSTRIAL: Buys Back Own Shares ------------------------------------------ Armstrong Industrial Corp Ltd on August 23, 2006, bought back 832,000 of its own shares for SGD$0.164999 per share. The latest share buyback has raised the number of shares purchased by the company to 7,691,000. About Armstrong Industrial Armstrong Industrial Corp. Ltd -- http://www.armstrong.com.sg-- manufactures and sells precision die-cut foam and rubber moulded components for a range of applications, including insulating, dampening, cushioning, and sealing. The company also provides architectural and engineering activities and related technical consultancy. The company has manufacturing presence in Singapore, Malaysia, Thailand, China, and Indonesia. * * * Moody's Investors Service gave Armstrong Industrial's senior unsecured debt a Ba2 rating effective on December 16, 1991 and its subordinated debt a B1 rating effective on October 23, 1986. FLEXTRONICS INTERNATIONAL: Sells Photonics Subsidiary to nLight --------------------------------------------------------------- Flextronics International Limited's subsidiary, Flextronics Photonics, was acquired by nlight Photonics, a Clark County company that makes lasers for the semiconductor industry. NLight President and Chief Executive Officer Scott Keeney, however, would not disclose financial details of his company's acquisition of Flextronics Photonics, according to the Columbian Business. "The Flextronics corporate strategy started to differ from what they were doing in Hillsboro and the Singapore-based company became open to selling its Pacific Northwest subsidiary. That's how negotiations started," Mr. Keeney told the Columbian Business. nLight expects the acquisition to expand its variety of new fiber-coupled and hybrid microelectronic products, as well strengthen nLight's position as a top supplier of high-power semiconductor laser solutions, EE Times says. Mr. Keeney explained that Flextronics Photonics' operations is complementary to what nLight does. "(Flextronics Photonics) has a strong focus on the defense market, where (nLight) already expanding. This is a nice expansion and it builds on our existing strategy." Mr. Keeney told EE Times. Flextronics Photonics employs 40 people in Hillsboro, increasing nLight's total workforce to 170. According to the Columbian Business, some Hillsboro workers will be moved to Vancouver and some Vancouver workers will transfer to Hillsboro. About nLight Founded in 2000 and privately held, nLight is headquartered in Vancouver, Washington. It develops and manufactures high-power semiconductor diode laser components and subsystems. About Flextronics International Headquartered in Singapore, Flextronics International Ltd. -- http://www.flextronics.com/-- provides electronics manufacturing services through a network of facilities in over 30 countries worldwide. Its global locations include operations in Brazil and Mexico. * * * Moody's Investors Service assigned a Ba2 rating to Flextronics International Ltd.'s new US$500 million 6.25% senior subordinated notes, due 2014. At the same time, the company was assigned a liquidity rating of SGL-1, reflecting Flextronics' significant on-hand liquidity, unfettered access to the sizeable US$1.1 billion revolver and the expectation for generating moderately positive free cash flow (pre-Nortel payments) over the next twelve months. Standard & Poor's Ratings Services assigned its 'BB-' rating to Flextronics' private offering of US$500 million, senior subordinated notes due 2014. The notes were offered under Rule 144A, with registration rights. Proceeds of the offering will be used to repay outstanding debt under its revolving credit facilities and for general corporate purposes. The company's 'BB+/Stable/--' corporate credit rating was affirmed. GREAT OCEAN: Court to Hear Wind-Up Petition on September 1 ---------------------------------------------------------- On August 4, 2006, Freight Links Express Pte Ltd filed an application to wind up Great Ocean Supply (S) Pte Ltd -- formerly known as Gos Investment Pte Ltd. The High Court of Singapore will hear the petition on September 1, 2006, at 10:00 a.m. The Applicant's solicitors can be reached at: Ari, Goh & Partners 10 Anson Road #21-08A International Plaza Singapore 079903 INFORMATICS EDUCATION: Auditors Raise Significant Doubt ------------------------------------------------------- Informatics Education Ltd's independent auditors, Ernst and Young, have expressed significant doubt on the company's ability to continue as a going concern, according to an announcement by the company's board of directors. The announcement was made by Informatics Executive Director Tong Chiu Fai on July 11, 2006, detailing Ernst and Young's opinion on the company's financial statements for the year ended March 31, 2006. The announcement includes the opinions: i. The consolidated financial statements of the group and the balance sheet and statement of changes in equity of the company are properly drawn up in accordance with the provisions of the Singapore Companies Act, Cap. 50 (the "Act") and the Singapore Financial Reporting Standards so as to give a true and fair view of the state of affairs of the group and of the company as at March 31, 2006 and the results, changes in equity and cash flows of the group and the changes in equity of the company for the financial year ended on that date, and ii. The accounting and other records required by the Act to be kept by the company and by those subsidiaries incorporated in Singapore of which we are the auditors have been properly kept in accordance with the provisions of the Act. iii. Without qualifying our opinion, we draw attention to the matters: (a) Ongoing investigations During the financial year ended March 31, 2004, the company restated profits in respect of its unaudited quarterly results for the nine months ended Dec. 31, 2003. The accounting restatements led to an Investigation by the Commercial Affairs Department. The outcome of the investigation might uncover other information, which might require adjustments to be made to the financial statements. (b) Going concern issues The financial statements have been prepared on a going concern basis, as set out under the fundamental accounting concept. The group incurred a net loss of $22,818,000 for the year ended March 31, 2006. As at March 31, 2006, the group was in a net shareholders' deficit position of $14,772,000. As at March 31, 2006, the ability of the group and company to meet its financial obligations and to continue as going concerns depend on the group's success in implementing its plans to streamline its business and generating sufficient positive cash flows from its operations. Ernst and Young adds: "If the group and the company were unable to continue in operational existence for the foreseeable future, the group and the company may be unable to discharge their liabilities in the normal course of business and adjustments may have to be made to reflect the situation that assets may need to be realized other than in the normal course of business and at amounts which could differ significantly from the amounts at which they are currently recorded in the balance sheet. In addition, the group and the company may have to reclassify long term assets and liabilities as current assets and liabilities. No adjustments have been made to the financial statements." Full Year Results A Troubled company Reporter - Asia Pacific report on June 01, 2006 reports that Informatics Holdings slashed its net losses by 68% or SGD48.4 million from SGD71.2 million in fiscal year ended March 31, 2005, to SGD22.8 million in fiscal year ended March 31, 2006, as it made great strides in restructuring its operations. The decisive measures taken by the group to restructure, rationalize and consolidate its operations has led to a SGD11.4 million or 27% saving in staff cost and a SGD37.8 million or 45% reduction in other operating expenses in fiscal year 2005. The group's balance sheet reflected an increase in the net liability position of SGD14.8 million as of March 31, 2006, against a net liability of SGD11.1 million as of March 31, 2005. However, excluding the deferred course fee revenue, the group's balance sheet would have shown a net asset position with an improvement of SGD2.4 million from SGD1.1 million as of March 31, 2005, to SGD3.5 million as of March 31, 2006. The improvement was mainly due to the increase in issued and paid up capital via a rights issue which raised SGD19.6 million gross proceeds during the year. Narrower Loss for First Quarter of FY07 Another TCR-AP report on August 04, 2006 states that Informatics Holdings slashed its net losses by 29% or SGD1.15 million in first quarter fiscal year ended 2007, to SGD2.8 million. With the latest quarter's improvement, the group has managed to cut its net losses in five out of the past six quarters. The group's loss from operations was down by 34% to SG$2.9 million from SGD4.3 million compared with the same period last year. The operating loss reduction was achieved by a 21.1% reduction in staff costs, fixed asset depreciation and other operating expenses to SGD14.6 million, in spite of a 17% decline in operating revenue to SGD11.7 million. During this period, fees received in advance (course fee revenue deferred to future periods) increased by SGD0.8 million to SGD19.0 million. The group's balance sheet reflected a net liability position of SGD17.1 million as at June 30, 2006. However, excluding the deferred course fee revenue, the group's balance sheet would have shown a net asset position of SGD1.9 million as of June 30, 2006. About Informatics Education Limited Formerly known as Informatics Holdings, Ltd., Informatics Education Ltd -- http://www.informatics.edu.sg/-- was established in 1983, in response to Asia's economic growth fostering tremendous demands for skilled information technology manpower and knowledge-based workers to build and sustain the rapid economic development in the region. Informatics' core business activities are training and education, IT-related services and franchise operations. * * * Informatics was at the center of a scandal that began in mid- April 2004 when it admitted that it has overstated profits and understated costs for the nine months ended December 2003 in its quarterly financial statement. The scandal started a string of losses for the education services provider. LIANG HUAT: Creditors Approve Modified Schemes ---------------------------------------------- The principal scheme creditors, LHAI scheme creditors and the Durabeau scheme creditors of Liang Huat Aluminium met on August 25, 2006, and approved the proposed modifications of the schemes relating to an investment agreement. Earlier, it was proposed that the Debt Restructuring Plan should be implemented first, by way of a scheme of arrangement pursuant to section 210 of the Companies Act (Chapter 50) to be made between the Company and its creditors. In an update made on August 10, 2006, the Company proposed to include key modifications to the schemes, but are not to be limited which are the following: On completion of the Investment Agreement: a) the allotment and issuance of such number of new ordinary shares in the Company to its scheme creditors on completion date to fully discharge each of their respective claims under the Scheme; b) the allotment and issuance of such number of new ordinary shares in the Company to the scheme creditors of LHAI on Completion Date, to fully discharge each of their respective claims under the LHAI Scheme; c) the payment to each of the scheme creditors of Durabeau save for Malayan Banking Berhad (Maybank), a cash equivalent of 15% of their respective claims under the Durabeau Scheme within 14 days from Completion Date, to fully discharge each of their claims under the Durabeau Scheme (as modified); and d) a capital reduction, a capital amalgamation or such other corporate measures to be undertaken by the Company and as permitted by law on terms reasonably acceptable to the Investor to achieve certain objectives as set out in the Investment Agreement. On non-completion of the Investment Agreement: a) the allotment and issuance of such number of new ordinary shares in the Company to the Scheme Creditors within two months from the Effective Date, to fully discharge each of their respective claims under the Scheme; b) the allotment and issuance of such number of new ordinary shares in the Company to the LHAI Scheme Creditors within two months from the Effective Date, to fully discharge each of their respective claims under the LHAI Scheme; c) payment to each of the Durabeau Scheme Creditors save for Maybank, a cash equivalent of 15% of their respective claims under the Durabeau Scheme (as modified) in two instalments being: (aa) 7.5% of their respective claims under the Durabeau Scheme within six months from the Effective Date as defined in the Durabeau Scheme; and (bb) 7.5% of their respective claims under the Durabeau Scheme within nine months from the Effective Date as defined in the Durabeau Scheme, to fully discharge each of their claims under the Durabeau Scheme (as modified); and d) a capital reduction, a capital amalgamation or such other corporate measures to be undertaken by the Company and as permitted by law on terms reasonably acceptable to the Investor to achieve certain objectives as set out in the Investment Agreement. Furthermore, at a separate creditors' meeting held on August 25, 2006, the creditors of Chairman and Group Managing Director Peter Tan Yong Kee have approved the individual voluntary arrangement proposed by Peter Tan, to restructure his debts owed to his creditors. The voluntary arrangement announced by the Company on April 7, 2005, is accordingly terminated. The Modified Schemes will take effect upon the completion of these remaining conditions: a) the necessary and appropriate approvals from shareholders and the SGX-ST for the listing and quotation of the new ordinary shares in the Company to be allotted and issued to the Scheme Creditors and the LHAI Scheme Creditors pursuant to the Scheme (as modified) and the LHAI Scheme (as modified); and b) the whitewash waiver in favor of any party -- other than the investor who has already obtained the relevant whitewash waiver from the SIC as previously announced by the company on June 6, 2006, from the requirements of the Singapore Code on Takeovers and Mergers from the SIC. In addition, the approvals are also conditions precedent set out in the Investment Agreement and have been accordingly fulfilled. The company will make prompt and timely announcements of further developments concerning the Modified Schemes and the Investment Agreement. About Liang Huat Aluminium Liang Huat Aluminium -- http://www.lianghuatgroup.com.sg/-- is a vertically integrated, professionally run group of companies focusing on producing high quality aluminum products and Processed glass for both the industrial and construction industries. It also supplies and installs aluminum and processed glass for major commercial and residential projects mainly in Singapore. Liang Huat was the subject of a wind-up petition filed by Lim Ah Siong trading as Lian Siong Aluminium & Trading on August 26, 2004. Presently, the Company is undergoing a financial restructuring exercise. It is also working a Scheme of Arrangement with its major creditor banks. MIYAMA FOOD: Enters Liquidation Proceedings ------------------------------------------- Miyama Food Pte Ltd has commenced a wind-up of its operations. Teo Keng Thwan filed the wind-up application on August 18, 2006. Creditors are required to submit their proofs of debt, for them to share in any distribution the Company will make. The liquidators can be reached at: Don Ho-Mun Tuke of Don Ho & Associates 20 Cecil Street #12-02/03 Equity Plaza Singapore 049705 ODYSSEY RE: Declares Dividends for Common & Preferred Stock ----------------------------------------------------------- Odyssey Re Holdings Corporation declared a quarterly cash dividend of US$0.03125 per common share, payable on Sept. 29, 2006, to shareholders of record at the close of business on Sept. 15, 2006. In addition, the Board of Directors declared a cash dividend of US$0.5078125 per share on Odyssey Re's 8.125% non-cumulative Series A preferred shares and US$0.546875 per share on OdysseyRe's floating rate non-cumulative Series B preferred shares. The dividends will be payable on Oct. 20, 2006, to Series A and Series B preferred shareholders of record at the close of business on Sept. 30, 2006. Odyssey Re Holdings Corp. is an underwriter of property and casualty treaty and facultative reinsurance, as well as specialty insurance. OdysseyRe operates through its subsidiaries, Odyssey America Reinsurance Corporation, Hudson Insurance Company, Hudson Specialty Insurance Company, Clearwater Insurance Company, Newline Underwriting Management Limited and Newline Insurance Company Limited. The Company underwrites through offices in the United States, London, Paris, Singapore, Toronto and Mexico City. Odyssey Re Holdings Corp. is listed on the New York Stock Exchange under the symbol ORH. * * * Odyssey Re Holdings Corp.'s preferred stock rating carries Ba2 from Moody's and BB from Fitch. The Company's senior unsecured debt and long-term issuer default ratings also carry BB+ from Fitch. Moody's placed its rating on Oct. 12, 2005 with a stable outlook. Fitch placed its ratings on March 23, 2006. PDC CORP: Issues and Allots 211,000,000 Ordinary Shares ------------------------------------------------------- On August 25, 2006, PDC Corp. entered into a conditional placement agreement with the various placees to subscribe in cash of 211,000,000 new ordinary shares in the company at an issue price of SGD$0.01. This was in connection with the share issue mandate to issue and allot up to maximum of 211,000,000 shares, which was approved at the shareholder's meeting held on July 28, 2006. Name of Placee Number of Placement Shares Ong Bee Huat 106,500,000 Tan Kah Chye 30,000,000 Woo Lai Kuen 15,000,000 Tay Leong Kwee 15,000,000 City Life Advertising Pte Ltd 15,000,000 Toh Tiam Hock 10,000,000 Chin Siow Peng 7,000,000 Peh Guan Keng 5,000,000 Ng Eng Hong 5,000,000 Tan Chwee Kee 2,500,000 The issue price of SGD$0.01 for each Mandate Placement Share represents neither discount nor premium per Share to the weighted average price of SGD$0.01 per Share based on the trades done on the company's Shares on the SGX-ST for August 25, 2006. * * * 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. REFCO INC: Files July 2006 Monthly Operating Report --------------------------------------------------- Refco, Inc., and its debtor-affiliates delivered to the Bankruptcy Court a statement of their cash receipts and disbursements for the period from July 1 to 31, 2006. Peter F. James, controller of Refco, reports that the company held a US$1,372,136,000 cash balance at the start of the reporting period. Refco then received US$160,610,000 and disbursed US$18,753,000 in cash. Refco's ending cash balance totals US$1,513,994,000. As paying agent for certain non-debtors and Refco, LLC, the Debtors disbursed approximately US$5,800,000. Refco Capital, LLC, also disbursed around US$3,300,000 representing return of proceeds to Refco Global Finance, Ltd., Refco Global Holdings, LLC, and Refco Canada Finance, Inc. Refco also paid US$1,998,000 in gross wages, of which US$1,695,022 was paid on behalf of and reimbursed by the Non- Debtors and Refco LLC. Mr. James discloses that Refco withheld US$670,000 in employee payroll taxes, of which US$74,000 was remitted to a third party vendor. Mr. James states that all taxes due and owing, as well as tax returns, have been paid and filed for the current period. Refco paid US$3,878,000 for professional fees for July, and US$21,951,000 since the Petition Date. The Debtors did not pay professional fees on Refco LLC's behalf. Mr. James says all insurance policies are fully paid for the current period, including amounts owed for workers' compensation and disability insurance. Refco has prepared the Monthly Statement in lieu of comprehensive financial statements. A full-text copy of Refco's July 2006 Monthly Statement is available at no charge at http://ResearchArchives.com/t/s?1062 About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported $16.5 billion in assets and $16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. Refco LLC, an affiliate, filed for chapter 7 protection on Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a regulated commodity futures company that has businesses in the United States, London, Asia and Canada. Refco, LLC, filed for bankruptcy protection in order to consummate the sale of substantially all of its assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc. Albert Togut, the chapter 7 trustee, is represented by Togut, Segal & Segal LLP. On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner is represented by Bingham McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda. Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through 06-11262). THOMAS PRODUCTS: Pays Dividend to Creditors ------------------------------------------- Thomas Products Pte Ltd has paid its first and final dividend to its creditors on August 22, 2006. The amount paid to creditors was 0.25% of all admitted claims. The liquidator can be reached at: c/o Don Ho & Associates Certified Public Accountants Corporate Advisory & Recoveries Equity Plaza 20 Cecil Street #12-02 & 03 Singapore 049705 Telephone: 6532 0320 =============== T H A I L A N D =============== TMB BANK: Share Offering Worth THB9.7-Billion Successful -------------------------------------------------------- TMB Bank revealed on August 25, 2006 -- the last day of subscription of its 3.22 billion shares worth THB9.7 billion -- that the shares are fully subscribed by shareholders, Reuters reports, citing the bank's president, Subhak Siwaraksa. The Troubled Company Reporter - Asia Pacific reported on August 3, 2006, that the issuance of the bank's shares were delayed after Vayupak Fund turned down the proposal of the Finance Ministry of Thailand to purchase shares in TMB. According to the TCR-AP, Vayupak was tapped by the ministry to subscribe to the 3.22 billion new shares offered by TMB to help the Government maintain its stake in the bank. However, the fund's board of directors asked for a sharp discount on TMB's THB3-per-share selling price, which the Bank declined. This prompted the ministry to exercise its rights to purchase up to one billion new shares in TMB Bank. A subsequent TCR-AP report on August 9, 2006, related that the Ministry would use a THB3-billion credit line from the Government Savings Bank to finance the TMB share purchase and will use its 77.28% stake in MCOT Plc, as collateral for the loan with the GSB. It was stipulated, however, that the ministry would be able to repurchase the MCOT shares within three years for the same sale price. The GSB in turn would receive dividend income from the MCOT shares equal to minimum lending rates plus a premium of 1.66%. * * * Headquartered in Bangkok, Thailand, TMB Bank Public Co. Ltd -- http://www.tmbbank.com/-- is a commercial bank that renders financial services to all groups of customers. TMB Bank had total assets of about THB717 billion as at December 31, 2005. * * * Fitch Ratings gave TMB Bank a 'BB+' Long-Term Foreign Currency Issuer Default Rating; 'B' Short-Term Foreign Currency Rating; 'BB' Foreign Currency Subordinated Debt Rating; 'D' Individual Rating; and Support rating at 3. Moody's Investor Service gave TMB Bank a 'Ba1' Junior Subordinated Debt Rating and an 'E+' Bank Financial Strength Rating. Standard & Poor's Ratings Services gave TMB Bank's US$200- million hybrid Tier 1 securities a 'BB' rating. * BOND PRICING: For the Week 28 August to 1 September 2006 ---------------------------------------------------------- Issuer Coupon Maturity Price ------ ------ -------- ----- AUSTRALIA --------- Ainsworth Game 8.000% 12/31/09 1 APN News & Media Ltd 7.250% 10/31/08 4 A&R Whitcoulls Group 9.500% 12/15/10 8 Arrow Energy NL 10.000% 03/31/08 1 Babcock & Brown Pty Ltd 8.500% 12/31/49 8 Becton Property Group 9.500% 06/30/10 1 BIL Finance Ltd 8.000% 10/15/07 8 Capital Properties NZ Ltd 8.500% 04/15/07 8 Capital Properties NZ Ltd 8.500% 04/15/09 7 Capital Properties NZ Ltd 8.000% 04/15/10 8 Cardno Limited 9.000% 06/30/08 4 CBH Resources 9.500% 12/16/09 1 Chrome Corporation Ltd 10.000% 02/28/08 1 Clean Seas Tuna Ltd 9.000% 09/30/08 1 Djerriwarrh Investments Ltd 6.500% 09/30/09 4 EBet Limited 10.000% 11/29/06 24 Evans & Tate Ltd 8.250% 10/29/07 1 Fletcher Building Ltd 7.900% 10/31/06 8 Fletcher Building Ltd 8.300% 10/31/06 8 Fletcher Building Ltd 8.600% 03/15/08 8 Fletcher Building Ltd 7.800% 03/15/09 8 Fletcher Building Ltd 8.850% 03/15/10 8 Fletcher Building Ltd 7.550% 03/15/11 7 Fernz Corp Ltd 8.560% 10/15/06 9 Futuris Corporation Ltd 7.000% 12/31/07 2 Hy-Fi Securities Ltd 7.000% 08/15/08 9 Hy-Fi Securities Ltd 8.750% 08/15/08 10 Hutchison Telecoms Australia 5.500% 07/12/07 1 IMF Australia Ltd 11.500% 06/30/10 1 Infrastructure & Utilities NZ Ltd 8.500% 09/15/13 8 Infratil Ltd 8.500% 11/15/15 8 Kagara Zinc Ltd 9.750% 05/06/07 5 Kiwi Income Properties Ltd 8.000% 06/30/10 1 Minerals Corporation Ltd 10.500% 09/30/07 1 Nuplex Industries Ltd 9.300% 09/15/07 7 Pacific Print Group Ltd 10.250% 10/15/09 10 Primelife Corporation 9.500% 12/08/06 1 Primelife Corporation 10.000% 01/31/08 1 Salomon SB Australia 4.250% 02/01/09 8 Sapphire Securities Ltd 7.410% 09/20/35 7 Sapphire Securities Ltd 9.160% 09/20/35 9 Silver Chef Ltd 10.000% 08/31/08 1 Software of Excellence 7.000% 08/09/07 1 Tower Finance Ltd 8.750% 10/15/07 9 Tower Finance Ltd 8.650% 10/15/09 8 TrustPower Ltd 8.300% 09/15/07 8 TrustPower Ltd 8.300% 12/15/08 7 TrustPower Ltd 8.500% 09/15/12 7 TrustPower Ltd 8.500% 03/15/14 8 Vision Systems Ltd 9.000% 12/15/08 2 Westpac Banking Corporation 6.250% 08/30/11 6 HONGKONG -------- City Telecom HK Ltd. 8.750% 02/01/15 73 KOREA ----- Korea Electric Power 7.950% 04/01/96 54 MALAYSIA -------- Aliran Ihsan Resources Bhd 5.000% 11/29/11 1 AHB Holdings Bhd 5.500% 03/06/07 1 Asian Pac Bhd 4.000% 12/21/07 1 Berjaya Land Bhd 5.000% 12/30/09 1 Bumiputra-Commerce 2.500% 07/17/08 1 Camerlin Group Bhd 5.500% 07/15/07 1 Crescendo Corporation Bhd 3.000% 08/25/07 1 Dataprep Holdings Bhd 4.000% 08/06/07 1 Eastern & Oriental Hotel 8.000% 07/25/11 1 Eden Enterprises (M) Bhd 2.500% 12/02/07 1 EG Industries Bhd 5.000% 06/16/10 1 Equine Capital Bhd 3.000% 08/26/08 1 Fountain View Development Sdn Bhd 3.500% 11/03/06 1 Greatpac Holdings Bhd 2.000% 12/11/08 1 Gula Perak Bhd 6.000% 04/23/08 1 Hong Leong Industries Bhd 4.000% 06/28/07 1 Huat Lai Resources Bhd 5.000% 03/28/10 1 I-Berhad 5.000% 04/30/07 1 Insas Bhd 8.000% 04/19/09 1 Kamdar Group Bhd 3.000% 11/09/09 1 Killinghall Bhd 5.000% 04/13/09 2 Kosmo Technology Industrial Bhd 2.000% 06/23/08 1 Kretam Holdings Bhd 1.000% 08/10/10 1 Kumpulan Jetson 5.000% 11/27/12 1 Lebar Daun Bhd 2.000% 01/06/07 3 LBS Bina Group Bhd 4.000% 12/29/06 1 LBS Bina Group Bhd 4.000% 12/31/07 1 LBS Bina Group Bhd 4.000% 12/31/08 1 LBS Bina Group Bhd 4.000% 12/31/09 1 Lion Diversified Holdings Bhd 2.000% 06/01/09 3 Media Prima Bhd 2.000% 07/18/08 1 Mithril Bhd 8.000% 04/05/09 1 Mithril Bhd 3.000% 04/05/12 1 Mutiara Goodyear Development Bhd 2.500% 01/15/07 1 Naim Indah Corporation Bhd 0.500% 08/24/06 1 Nam Fatt Corporation Bhd 2.000% 06/24/11 1 Pantai Holdings Bhd 5.000% 07/31/07 2 Pelikan International Corp Bhd 3.000% 04/08/10 1 Poh Kong Holdings Bhd 3.000% 01/20/07 1 Prinsiptek Corporation Bhd 3.000% 11/20/06 1 Puncak Niaga Holdings Bhd 2.500% 11/18/16 1 Ramunia Holdings 1.000% 12/20/07 1 Rashid Hussain Bhd 3.000% 12/23/12 1 Rashid Hussain Bhd 0.500% 12/24/12 1 Rhythm Consolidated Bhd 5.000% 12/17/08 1 Silver Bird Group Bhd 1.000% 02/15/09 1 Southern Steel 5.500% 07/31/08 1 Tanah Emas Corporation Bhd 2.000% 12/09/06 1 Tenaga Nasional Bhd 3.050% 05/10/09 1 Titisan Modal Sdn Bhd. 4.000% 04/28/14 73 Titisan Modal Sdn Bhd. 5.000% 04/28/20 74 Tradewinds Plantations Bhd 3.000% 02/28/16 1 WCT Land Bhd 3.000% 08/02/09 1 Wah Seong Corp 3.000% 05/21/12 3 YTL Cement Bhd 4.000% 11/10/15 1 SINGAPORE --------- Sengkang Mall 8.000% 11/20/12 1 Structural System Singapore 11.000% 06/30/07 1 Tincel Ltd 7.400% 06/13/11 1 ********* 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 ***