/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/060830.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 Wednesday, August 30, 2006, Vol. 9, No. 172 Headlines A U S T R A L I A & N E W Z E A L A N D 123 ENTERPRISE: Liquidation Bid Hearing Set on Sept. 4 ANCON CHEMICALS: To Declare First and Final Dividend on Sept. 26 ARRAN PASTORAL: Members Resolve to Voluntarily Wind Up Firm BAIAMA PTY: Members and Creditors to Convene on Sept. 25 BURT BROS: Members to Receive Liquidator's Wind-Up Report CARPE OMNES: Receiver and Manager Steps Aside CPS (NSW) PTY: To Pay Dividend to Ordinary Unsecured Creditors DEMACO INTERNATIONAL: Liquidator McLellan to Give Wind-Up Report DRYANDER PTY: Faces Creditors' Voluntary Wind-Up DVR DEVELOPMENTS: Faces Liquidation Proceedings FORESHORE ROAD: Placed Under Voluntary Liquidation JAVA JOHNS: Court to Hear CIR's Liquidation Bid JUST MANOLIOS: Enters Wind-Up Proceedings K&J WHITE: Members and Creditors to Receive Wind-Up Report LOGEC SYSTEMS: To Declare First and Final Dividend on Sept. 24 M.S.D. SPORTS: Names Handberg and Morgan as Joint Liquidators MAYPOLE MANUFACTURING: Receiver and Manager Named NEILSON PRODUCTIONS: Faces Wind-Up Proceedings NEOTEX AUSTRALIA: Members and Creditors to Meet on Sept. 21 NJH TRANSPORT: Undergoes Liquidation Proceedings NORTH SHORE: Names Johnstone and Hill as Liquidators NZ GREEN: Shareholders Opt for Voluntary Liquidation OAMARU AIRSPREAD: Commences Liquidation Proceedings ORIGIN PACIFIC: Seeks Creditors' Extension to Consider Options OZ PLANTS: To Declare First Dividend on September 7 P & R MOTORS: Court Sets Date to Hear Liquidation Bid PLANTATION FRESH: Creditors' Proofs of Debt Due on September 12 PLUMBMASTERS (N.S.W.): Creditors Decide to Shut Down Firm PROFESSIONAL GIFTS: Members Decide to Close Business PROVINCIAL FINANCE: NZ$31-Million Accounts Anomaly Not Flagged R M GROUP: To Declare Dividend on September 15 RED RESTAURANT: Court Set to Hear CIR's Liquidation Bid REDICHEM TRANSPORT: Creditors' Proofs of Debt Due on August 31 RESOURCE DEVELOPMENTS: Appoints Joint and Several Liquidators SKY-SKAN AUSTRALIA: Creditors' Proofs of Claim Due on Sept. 7 TAMNAMORE PTY: Members' Final Meeting Scheduled on Sept. 20 TERAWHITI LICENSING: Creditors Must Prove Debts by September 8 VAJEVU PTY: To Declare First and Final Dividend on September 26 VILLAGE ROADSHOW: Stake in Austereo May Increase to 70.8% VIP VENDING: Placed Under Members' Voluntary Liquidation WAIHEKE CHARTERS: Creditors' Proofs of Claim Due on Sept. 22 WARBROOK EQUIPMENT: Members and Creditors Resolve to Close Firm WESTPOINT GROUP: Banks Unwilling to Open Accounts for N. Carey XERIUM TECHNOLOGIES: Earns US$11.1 Million for 2Q2006 XERIUM TECHNOLOGIES: Sells Huyck Dewatering Equipment Business XIRO CONSULTING: Members to Receive Wind-Up Report C H I N A & H O N G K O N G ASIA PREMIUM: Balance Sheet Upside-Down by US$2.7 Mil at June 30 BANK SINOPAC: S&P Affirms Bank Financial Strength Rating at C+ BROWNHILL TRADING: Final Members Meeting Set on September 20 CERADYNE INC: 2006 2nd Quarter Net Income Climbs to US$30 Mil. CHAMP EMPIRE: Faces Wind-Up Proceedings CHINA STEP: Creditors Must Prove Debts by September 22 CHINA TRADE: Appoints Official Liquidator CHINTUNG FUTURES: Annual Meeting Fixed on Sept. 19 DU WIN GARMENTS: Court to Hear Wind-Up Bid on September 27 GLOBAL CROSSING: Mexican Customer Base Grew 64% HEAPS LIMITED: Joint Liquidators to Present Wind-Up Report HOWELL ENGINEERING: Wind-Up Bid Hearing Fixed on Sept. 27 FOREMOST CITY: Liquidator to Present Wind-Up Report ID INNOVATION: Members and Creditors to Meet on Sept. 5 KWAN FONG: Members' Final Meeting Set on September 19 MEDARTS MEDICAL: Auditor Raises Going Concern Doubt on Operation ORIENT EXPRESS: Commences Wind-Up Proceedings OTTO CONTAINER: Members Opt for Voluntary Wind-Up SKY GREAT: Sole Member to Receive Wind-Up Report SKYLINE VIEW: Creditors' Proofs of Claim Due on September 20 TRELOCK HONG KONG: Member Resolve to Wind Up Operations I N D I A FEDDERS CORP: Equity Deficit Widens to US$17.04M in Six Months SILICON GRAPHICS: Judge Lifland Approves Disclosure Statement SILICON GRAPHICS: Court OKs Solicitation and Tabulation Protocol SILICON GRAPHICS: Gets Final Nod to Use Cash Management System SILICON GRAPHICS: Modified Employee Incentive Plan Approved SILICON GRAPHICS: Hires Bear Stearns as Financial Advisor I N D O N E S I A ARMSTRONG WORLD: Parent Loses Ownership Under Chapter 11 Plan COMVERSE TECH: Subsidiary to Acquire Netonomy(R) for US$19M LAPINDO BRANTAS: IDR33.27T Toxic Mud Bill May Cause Bankruptcy NORTEL NETWORKS: Sets Aside US$28M Reserve to Clean up Sites NORTEL NETWORKS: Forms Strategic Alliance with Microsoft Corp. NORTEL NETWORKS: Declares Dividends for Class A Pref. Shares PERUSAHAAN GAS: Gets ADB Support in Getting Loans POLYSINDO EKA: Posts Turnaround of IDR128B on FOREX Gains TELKOMSEL INDONESIA: Fitch Upgrades Long-Term Rating to BB TELKOMSEL INDONESIA: Posts 41% Increase in First-Half Net Income J A P A N BLOUNT INT: Equity Deficit Narrows to US$122.81 Mil. at June 30 JAPAN AIRLINES: Will Keep Hotel Nikko Saipan K O R E A ACTUANT CORP: Buys Actown-Electrocoil Stock for US$24 Million ARROW ELECTRONICS: Earns US$92.8 Million in 2006 Second Quarter AVANI INTERNATIONAL: June 30 Capital Deficit Widens to $128,775 BURGER KING: Names Peter Robinson President of EMEA Operations MERIDIAN CO: Auditors Raise Substantial Going Concern Doubt QUANTUM CORP: S&P Ups Sr. Secured First-Lien Debt's Rating to B+ QUANTUM CORP: Completes Acquisition of ADIC for US$770 Million M A L A Y S I A FURQAN BUSINESS: Proceeds of Austral Amal's Sale Received MALAYSIA AIRLINES: Violated Immigration Laws, NZ Officials Say MALAYSIA AIRLINES: Forges Partnership with Virgin MITHRIL BERHAD: To Seek Shareholders' Mandate at AGM MYCOM BERHAD: Enters Into Additional Restructuring Pacts OLYMPIA INDUSTRIES: Inks More Restructuring Deals RENTOKIL INITIAL: Posts GBP562.8-Mln Equity Deficit at June 30 SEAINS PTE: Enters Dissolution Proceedings TENAGA NASIONAL: Lists and Quotes 4,859,464 New Shares P H I L I P P I N E S ARANETA PROPERTIES: To Hold ASM on October 6, 2006 EXPORT INDUSTRY BANK: Board Appoints Three Senior Officers APEX MINING: Resets ASM to November 8 & Defers Annual Meeting METRO PACIFIC: Requests Nine-Day Shares Trading Suspension MIRANT CORP: Quezon Province Demands Payment of PHP4.12Bln RPT MIRANT CORP: Gregorys Want Sugar Creek's $42-Mil. Claims Allowed MIRANT CORP: Lovett Unit Gets Court Approval on NY DEC Order PHIL. NATIONAL CONSTRUCTION: Submits Turnaround Plan to the SC * BSP Considers Policy Rate Cut for 2007 S I N G A P O R E ADVANCED SYSTEMS: Director Steps Aside ANANDA TRAVEL: Faces Wind-Up Proceedings GETRONICS NV: Concludes Sale of Units to Kapsch INTERNATIONAL DRILLING: Creditors' Proofs of Debt Due on Sept. 8 JIN-WEN INVESTMENT: Creditors' Meeting Slated for September 8 REFCO INC: Chapter 7 Trustee Authorized to Wind Down Subsidiary REFCO INC: Court Approval on Document Sharing Pact Sought T H A I L A N D BANGKOK BANK: Moody's Lifts Financial Strength Rating to D+ KASIKORNBANK PCL: Moody's Raises Financial Strength Rating to D+ * Second Quarter Reflects Increase in NPL's * Upcoming Meetings, Conferences and Seminars - - - - - - - - ============================================ A U S T R A L I A & N E W Z E A L A N D ============================================ 123 ENTERPRISE: Liquidation Bid Hearing Set on Sept. 4 ------------------------------------------------------ A petition to liquidate 123 Enterprise Ltd will be heard before the High Court of Hamilton on September 4, 2006, at 10:45 a.m. The Commissioner of Inland Revenue filed the petition with the Court on July 25, 2006. The Solicitor for the Petitioner can be reached at: P.L.Windsor Knaap Inland Revenue Department 1 Bryce Street, Hamilton New Zealand Telephone: (07) 959 0432 ANCON CHEMICALS: To Declare First and Final Dividend on Sept. 26 ---------------------------------------------------------------- Ancon Chemicals Pty Ltd will declare its first and final dividend for priority unsecured creditors on September 26, 2006. Creditors are required to file their proofs of debt by September 12, 2006, for them to share in the dividend distribution. The liquidator can be reached at: G. J. Keith Grant Thornton Rialto Towers, Level 35 South Tower, 525 Collins Street Melbourne, Victoria 3000 Australia ARRAN PASTORAL: Members Resolve to Voluntarily Wind Up Firm ----------------------------------------------------------- The members of Arran Pastoral Co Pty Ltd met on August 8, 2006, and resolved to voluntarily wind up the company's operations. In this regard, Stan Traianedes was appointed as liquidator. The Liquidator can be reached at: Stan Traianedes Hall Chadwick Chartered Accountants Level 12, 459 Collins Street Melbourne, Victoria 3000 Australia BAIAMA PTY: Members and Creditors to Convene on Sept. 25 -------------------------------------------------------- Members and creditors of Baiama Pty Limited will meet on September 25, 2006, at 9:00 a.m., to receive Liquidator Marc Peskett's final account on the company's wind-up proceedings and property disposal exercises. The Liquidator can be reached at: Marc Peskett MPR Group Pty Ltd Level 11, 499 St Kilda Road Melbourne, Victoria 3004 Australia BURT BROS: Members to Receive Liquidator's Wind-Up Report --------------------------------------------------------- The members of Burt Bros Brake Service Pty Ltd will hold a final meeting on September 15, 2006, at 9:00 a.m. At the meeting, Liquidator Stan Knysh will give his final account of the company's wind-up proceedings and property disposal exercises. The Liquidator can be reached at: Stan Knysh Knysh & Associates Accountants Level 2, 20 Smith Street Parramatta, Australia CARPE OMNES: Receiver and Manager Steps Aside --------------------------------------------- Justin Denis Walsh ceased to act on August 7, 2006, as receiver and manager of all the assets and undertakings of Carpe Omnes Diem Pty Ltd. The former Receiver and Manager can be reached at: Justin Denis Walsh Ernst & Young Level 5, Waterfront Place 1 Eagle Street Brisbane, Queensland 4000 Australia CPS (NSW) PTY: To Pay Dividend to Ordinary Unsecured Creditors -------------------------------------------------------------- CPS (NSW) Pty Limited will declare on October 19, 2006, its first and final dividend for ordinary unsecured creditors. Creditors must submit their proofs of claim by September 12, 2006, for them to share in the company's dividend distribution. The liquidator can be reached at: Peter W. Marsden RSM Bird Cameron Partners Level 12, 60 Castlereagh Street Sydney, New South Wales 2000 Australia Telephone:(02) 9233 8933 Facsimile:(02) 9233 8521 DEMACO INTERNATIONAL: Liquidator McLellan to Give Wind-Up Report ---------------------------------------------------------------- Members and creditors of Demaco International Trading Company Pty Ltd will convene on September 20, 2006, at 11:00 a.m., to receive Liquidator Andrew McLellan's report on the company's wind-up proceedings and property disposal exercises. The Liquidator can be reached at: Andrew McLellan PPB Chartered Accountants Level 10, 90 Collins Street Melbourne, Victoria 3000 Australia DRYANDER PTY: Faces Creditors' Voluntary Wind-Up ------------------------------------------------ Creditors of Dryander Pty Ltd passed a special resolution on August 10, 2006, to voluntarily wind-up the company's operations. Subsequently, K. L. Sutherland and H. A. MacKinnon were named joint and several liquidators. The Joint and Several Liquidators can be reached at: H. A. Mackinnon K. L. Sutherland Bent & Cougle Pty Ltd Chartered Accountants 332 St Kilda Road Melbourne, Victoria 3004 Australia DVR DEVELOPMENTS: Faces Liquidation Proceedings ----------------------------------------------- A petition to liquidate DVR Developments Ltd will be heard before the High Court of Christchurch on September 4, 2006, at 10:00 a.m. Larnach Private Ledger No.1 Ltd filed the petition with the Court on August 4, 2006. The Solicitor for the Petitioner can be reached at: Grant William Smith Cousins & Associates, Level Two 148 Victoria Street, Christchurch New Zealand P.O. Box 25249, Christchurch Facsimile: (03) 377 079 FORESHORE ROAD: Placed Under Voluntary Liquidation -------------------------------------------------- At a general meeting of the members of Foreshore Road Pty Ltd held on August 9, 2006, it was resolved that a voluntary wind-up of the company's operations is appropriate and necessary. In this regard, Garth D. Olling and Paul Andrew Billingham were appointed as joint and several liquidators. The Joint and Several Liquidators can be reached at: Garth D. Olling Paul Andrew Billingham Chartered Accountants Grant Thornton Level 17, 383 Kent Street Sydney, New South Wales 2000 Australia JAVA JOHNS: Court to Hear CIR's Liquidation Bid ----------------------------------------------- A petition to liquidate Java Johns 2001 Ltd will be heard before the High Court of Auckland on September 7, 2006. The Commissioner of Inland Revenue filed the petition with the Court on June 16, 2006. The Solicitor for the Petitioner can be reached at: Geraldine Ann Ryan Auckland South Service Centre 17 Putney Way (P.O. Box 76-198) Manukau City, New Zealand Telephone: (09) 984 2002 JUST MANOLIOS: Enters Wind-Up Proceedings ----------------------------------------- The members of Just Manolios Pty Ltd met on August 14, 2006, and agreed by way of a special resolution to wind up the company's operations. The liquidator can be reached at: Tim Norman Deloitte Touche Tohmatsu 180 Lonsdale Street Melbourne, Victoria 3000 Australia Telephone:(03) 9208 7000 K&J WHITE: Members and Creditors to Receive Wind-Up Report ---------------------------------------------------------- A final meeting of the members and creditors of K&J White Pty Limited will be held on September 19, 2006, at 11:00 a.m. During the meeting, Liquidator Michael G. Jones will report om the company's wind-up and property disposal exercises. The Liquidator can be reached at: Michael G. Jones Jones Condon Chartered Accountants Level 13, 189 Kent Street Sydney, New South Wales Australia Telephone:(02) 9251 5222 LOGEC SYSTEMS: To Declare First and Final Dividend on Sept. 24 -------------------------------------------------------------- Logec Systems Pty Ltd will declare its first and final dividend to creditors on September 24, 2006, to the exclusion of those who were not able to prove their claims by September 21, 2006. As reported by the Troubled Company Reporter - Asia Pacific, the company commenced a wind-up of its operations on May 23, 2005. The liquidator can be reached at: Glenn A. Crisp RSM Bird Cameron Partners Chartered Accountants Level 8, 525 Collins Street Melbourne, Victoria 3000 Australia Telephone:(03) 9286 1800 Facsimile:(03) 9286 1899 M.S.D. SPORTS: Names Handberg and Morgan as Joint Liquidators ------------------------------------------------------------- On August 4, 2006, a special resolution was passed to voluntarily wind up M.S.D. Sports Pty Ltd and appoint Geoffrey Handberg and Brent Morgan as joint liquidators. The Joint Liquidators can be reached at: Geoffrey Handberg Brent Morgan D'Aloia Handberg Chartered Accountants Level 10, 200 Queen Street Melbourne, Victoria 3000 Australia MAYPOLE MANUFACTURING: Receiver and Manager Named ------------------------------------------------- On August 9, 2006, Steven Davies was appointed as receiver and manager of all the assets and undertakings of Maypole Manufacturing Pty Limited. The Receiver and Manager can be reached at: Neil Robert Cussen Geoffrey Trent Hancock Horwath Sydney Partnership Level 10, 1 Market Street Sydney, New South Wales 2000 Australia NEILSON PRODUCTIONS: Faces Wind-Up Proceedings ---------------------------------------------- The members of Neilson Productions Pty Ltd convened on August 11, 2006, and resolved to voluntarily wind up the company's operations. In this regard, Anthony Robert Cant was appointed as liquidator. The Liquidator can be reached at: Anthony Robert Cant Romanis Cant Chartered Accountants 106 Hardware Street Melbourne, Australia NEOTEX AUSTRALIA: Members and Creditors to Meet on Sept. 21 ----------------------------------------------------------- Members and creditors of Neotex Australia Pty Ltd will hold a meeting on September 21, 2006, at 10:30 a.m., to receive Liquidator Glenn A. Crisp's accounts of the company's wind-up proceedings and property disposal exercises. The Troubled Company Reporter - Asia Pacific reported on May 5, 2005, that the company commenced a wind-up of its operations on March 23, 2005. The Liquidator can be reached at: Glenn A. Crisp RSM Bird Cameron Partners Level 8, 525 Collins Street Melbourne, Victoria 3000 Australia Telephone:(03) 9286 1800 Facsimile:(03) 9286 1899 NJH TRANSPORT: Undergoes Liquidation Proceedings ------------------------------------------------ At a general meeting held on August 9, 2006, the members and creditors of NJH Transport Pty Ltd agreed to liquidate the company's business and appoint R. A. Sutcliffe as liquidator. The Liquidator can be reached at: R. A. Sutcliffe Ground Floor, 192-198 High Street Northcote, Victoria 3070 Australia Telephone:(03) 9482 6277 NORTH SHORE: Names Johnstone and Hill as Liquidators ---------------------------------------------------- Shareholders of North Shore Waterproofing Ltd appointed on August 16, 2006, Warren Johnstone and Andrew Hill as joint and several liquidators. The Joint Liquidators require the company's creditors to submit their proofs of claim by September 30, 2006. Failure to prove claims will exclude a creditor from sharing in any distribution the company will make. The Joint and Several Liquidators can be reached at: Warren Johnstone c/o Barbara King or Colin Gower BDO Spicers, Level Six, Spicer House 148 Victoria Street, Christchurch New Zealand P.O. Box 246, Christchurch Telephone: (03) 379 5155 Facsimile: (03) 353 5526 e-mail: barbara.king@chc.bdospicers.com colin.gower@chc.bdospicers.com NZ GREEN: Shareholders Opt for Voluntary Liquidation ---------------------------------------------------- Shareholders of NZ Green Pine Ltd resolved on August 4, 2006, to voluntary liquidate the company and appoint Joon Youl Seo as liquidator to oversee the liquidation proceedings. Mr. Joon can be reached at: Joon Youl Seo P.O. Box 8722, Symonds Street Auckland, New Zealand Telephone: (09) 303 2200 Facsimile: (09) 307 2074 OAMARU AIRSPREAD: Commences Liquidation Proceedings --------------------------------------------------- The The liquidation of Oamaru Airspread Ltd commenced on August 18, 2006, following the appointment of Stephen James Higgs and Stephen Alan Dunbar as joint and several liquidators of the Company. In this regard, creditors of the Company are required to submit their proofs of claim by September 21, 2006. Failure to comply with the requirement will exclude a creditor from sharing in any distribution the company will make. The Joint and Several Liquidators can be reached at: Stephen James Higgs c/o Nicola Hassan 139 Moray Place, Dunedin New Zealand Telephone: (03) 477 9923 ORIGIN PACIFIC: Seeks Creditors' Extension to Consider Options -------------------------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on August 18, 2006, Origin Pacific Airways asked its creditors not to place it in receivership or liquidation while it considers its options. The TCR-AP noted that a number of positive opportunities for restructuring or selling the airline's freight and passenger businesses were being evaluated. The process was expected to take about two weeks, and creditors were expected to receive an update by August 28, 2006. A follow-up report from the New Zealand Herald relates that Origin Pacific has asked its creditors to allow more time for possible buyers to look at the company's books. ShareChat News relates that Origin Pacific Managing Director Robert Inglis told creditors that, during the past two weeks, Origin's freight operations had continued successfully, while the company determined the full extent of its creditor liabilities. "This process is ongoing and we anticipate that our options will be better clarified in another two weeks when the parties may have made firm offers," Mr. Inglis added. ShareChat notes that interested parties had formally entered into due diligence of both the freight and passenger businesses. Mr. Inglis maintains that the appointment of a receiver or liquidator may not be in the creditors' best interests. As reported in the TCR-AP, Origin Pacific was "seeking the indulgence from creditors" to not take action that could jeopardize restructuring. A further progress announcement would be made on September 11, 2006, NZPA notes. About Origin Pacific Origin Pacific Airways -- http://www.originpacific.co.nz/-- was initially launched in 1997 as an air charter service and continues to offer charters tailored to the specific needs of business and groups. Origin Pacific Airways operates from its own purpose-built facilities at Nelson Airport. The Company is 100% New Zealand owned and managed and run by people with extensive knowledge of air travel and proven success in running airline businesses. * * * The Troubled Company Reporter - Asia Pacific reported on Aug. 11, 2006, that Origin Pacific Airways was urgently seeking fresh capital to help reduce debt. The report noted that a capital injection was necessary to ensure that the airline could continue to "provide the competition so sorely needed in regional aviation services." However, a subsequent TCR-AP report noted that Origin Pacific halted its passenger services on August 10, 2006, saying that it has been unable to secure the capital urgently needed to reduce its debt. The action put most of its 260 staff out of work immediately. OZ PLANTS: To Declare First Dividend on September 7 --------------------------------------------------- Oz Plants Pty Ltd will declare its first dividend to creditors on September 7, 2006, to the exclusion of those who were not able to submit their proofs of debt August 31, 2006. The deed administrator can be reached at: B. J. Marchesi Bent & Cougle Pty Ltd Chartered Accountants 332 St Kilda Road Melbourne, Victoria 3004 Australia P & R MOTORS: Court Sets Date to Hear Liquidation Bid ----------------------------------------------------- The High Court of Palmerston North will hear a liquidation petition filed against P & R Motors Ltd on September 4, 2006, at 10:00 a.m. Brake & Transmission NZ Ltd filed the petition with the Court on August 3, 2006. The Solicitor for the Petitioner can be reached at: Dianne S. Lester Credit Consultants Debt Services NZ Limited Level Three, 3-9 Church Street (P.O. Box 213 or D.X. S.X. 10?069) Wellington, New Zealand Telephone: (04) 470 5972 PLANTATION FRESH: Creditors' Proofs of Debt Due on September 12 --------------------------------------------------------------- Plantation Fresh Pty Limited will declare dividend on September 18, 2006. Creditors are required to submit their proofs of debt by September 12, 2006, for them to share in the company's dividend distribution. The deed administrator 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 PLUMBMASTERS (N.S.W.): Creditors Decide to Shut Down Firm --------------------------------------------------------- Plumbmasters (New South Wales) Pty Limited commenced a wind-up of its operations on August 11, 2006. The company's wind-up was in accordance to the special resolution under Section 491 that was passed by the creditors. The joint liquidator can be reached at: David Watson Telephone:(02) 8221 8449 e-mail: dwatson@corcordis.com.au PROFESSIONAL GIFTS: Members Decide to Close Business ---------------------------------------------------- At an extraordinary general meeting held on August 14, 2006, the members of Professional Gifts Pty Ltd agreed to close the company's business. Creditors appointed Philip Newman and Clyde Peter White as joint and several liquidators at a separate meeting held on even date. The Joint and Several Liquidators can be reached at: Philip Newman Clyde Peter White HLB Mann Judd Chartered Accountants Level 1, 160 Queen Street Melbourne 3000 Australia PROVINCIAL FINANCE: NZ$31-Million Accounts Anomaly Not Flagged -------------------------------------------------------------- There was a NZ$31-million anomaly in Provincial Finance Limited's accounts last year, which was not flagged to investors or spotted by industry watchers, David King of The Dominion Post relates. An investigation by BusinessDay and the University of Canterbury senior accountancy lecturer, Alan Robb, shows that the company may have been in worse financial shape a lot earlier, but no one, including the Securities Commission, queried it, the paper reports. The Securities Commission is having a second look at the accounts after being alerted of the potential problem by BusinessDay, Stuff.co.nz notes. According to The Dominion, in Provincial's January 2006 prospectus, based on its accounts to September 30, 2005, the figure for past due assets, which was listed as NZ$7.2 million in the previous prospectus, has suddenly jumped to NZ$38 million, without explanation. Past due assets are loans that are 90 days or more in arrears, the paper adds. Furthermore, the total for impaired assets had gone from zero in the company's previous prospectus, to NZ$42 million as the it tried to claw back bad loans. This number was flagged to investors and the company said it had set up a dedicated team to recover the loans, Stuff.co.nz relates. Despite these problems in the prospectus, financial advisers continued to pour money into the company until May this year, The Dominion notes. Stuff.co.nz cites Provincial Chairman David Lyall as telling BusinessDay that the jump from NZ$7 million to NZ$38 million was because the auditors had changed the way they presented the accounts. "They said we were NZ$7 million in arrears with loans, they changed it to report the principal outstanding. There was no change in the number of loans we were talking about. It was an accountancy-driven thing," Mr. Lyall explains. Mr. Lyall says that Provincial Finance had been conservative in reporting its debts and other finance companies had changed later, noting that the Companies Office had cleared the accounts. Mr. Robb noted that in the company's statement of accounting policies, Provincial said there had been no changes in the accounting policies, The Dominion says. About Provincial Finance Provincial Finance Limited -- http://www.provincialfinance.co.nz/-- is a New Zealand finance company that provides consumer and commercial finance to individuals and businesses across New Zealand, and promote a range of investment opportunities. As reported in the Troubled Company Reporter - Asia Pacific, Provincial Finance was put into receivership on June 2, 2006, due to breach of covenants and ratios in its Trust Deed, as well as a multi-million write-down for bad debts. The Company owes NZ$300 million to 14,000 small investors. R M GROUP: To Declare Dividend on September 15 ---------------------------------------------- R M Group Productions Pty Ltd will declare dividend on September 15, 2006 for its creditors, to the exclusion of those who will not be able to submit their proofs of claim. The liquidator can be reached at: Richard Herbert Judson Judson & Co Chartered Accountants Suite 4, Level 1 10 Park Road Cheltenham, Victoria 3192 Australia Telephone: 9585 4155 RED RESTAURANT: Court Set to Hear CIR's Liquidation Bid ------------------------------------------------------- The High Court of Auckland will hear a liquidation petition against Red Restaurant Ltd on September 7, 2006, at 10:45 a.m. A petition to liquidate the company was filed by the Commissioner of Inland Revenue on June 29, 2006. The Solicitor for the Petitioner can be reached at: Geraldine Ann Ryan Auckland South Service Centre Putney Way (P.O. Box 76-198) Manukau City, New Zealand Telephone: (09) 984 2002 REDICHEM TRANSPORT: Creditors' Proofs of Debt Due on August 31 -------------------------------------------------------------- Redichem Transport Pty Limited will declare its first and final dividend on August 31, 2006. Creditors are required to submit their proofs of debt by August 31, 2006, for them to share in the dividend distribution. The liquidator can be reached at: Mark Roufeil Level 9, 31 Market Street Sydney, New South Wales 2000 Australia RESOURCE DEVELOPMENTS: Appoints Joint and Several Liquidators ------------------------------------------------------------- Members of Resource Developments International Pty held a general meeting on August 9, 2006, and resolved to voluntarily wind up the company's operations. Accordingly, Garth D. Olling and Paul Andrew Billingham were appointed as liquidators. The Liquidators can be reached at: Garth D. Olling Paul Andrew Billingham Chartered Accountants Grant Thornton Level 17, 383 Kent Street Sydney, New South Wales 2000 Australia SKY-SKAN AUSTRALIA: Creditors' Proofs of Claim Due on Sept. 7 ------------------------------------------------------------- Sky-Skan Australia Pty Ltd will declare its first and final dividend to creditors on September 21, 2006, to the exclusion of those who were not able to prove their debts by September 7, 2006. The liquidator can be reached at: Leonard A. Milner Venn Milner & Co Suite 1, 43 Railway Road Blackburn, Victoria 3130 Australia TAMNAMORE PTY: Members' Final Meeting Scheduled on Sept. 20 ----------------------------------------------------------- Members of Tamnamore Pty Ltd will convene on September 20, 2006, at 11:00 a.m., to receive Liquidator R. R. S. Mathews' accounts on the company's wind-up proceedings and property disposal exercises. As reported by the Troubled Company Reporter - Asia Pacific on July 26, 2006, the company commenced a wind-up of its operations on June 20, 2006. The liquidator can be reached at: R. R. S. Mathews Evans & Ayers Chartered Accountants Level 11, 101 Grenfell Street Adelaide, South Australia 5000 Australia TERAWHITI LICENSING: Creditors Must Prove Debts by September 8 -------------------------------------------------------------- Creditors of Terawhiti Licensing Trust are required to submit their proofs of claim to Liquidator Terence Charles Webb Bastion by September 8, 2006. Failure to prove debts will exclude a creditor from sharing in any distribution the company will make. The Liquidator can be reached at: T.C.W. Bastion KBC House, 272 Karori Road Karori, Wellington New Zealand P.O. Box 17-344, Karori, Wellington Telephone: (04) 476 5775 Facsimile: (04) 476 5778 VAJEVU PTY: To Declare First and Final Dividend on September 26 --------------------------------------------------------------- Vajevu Pty Limited will declare its first and final dividend on September 26, 2006. Creditors who were not able to submit their proofs of debt by August 22, 2006, will be excluded from sharing in the dividend distribution. The liquidator can be reached at: Robert Moodie c/o Rodgers Reidy Chartered Accountants Level 8, 333 George Street Sydney, New South Wales 2000 Australia VILLAGE ROADSHOW: Stake in Austereo May Increase to 70.8% --------------------------------------------------------- Austereo, owner of the Triple M and Fox FM duopolies and 67.3% owned by Village Roadshow Limited, reveals that it would spend AU$34 million buying 18.9 million shares or 5% of the company this year, The Australian reports. The plan will potentially lift Village Roadshow's stake to 70.8%, the paper says. Village Roadshow finance director Peter Foo tells The Australian that Village Roadshow has yet to decide whether to participate or refrain from voting on the proposal. Austereo executive chairman Peter Harvie said that the buyback is "about making good use of shareholders' funds," the paper says. According to The Australian, the buyback could further cement Village's position in Austereo ahead of likely changes to cross- media ownership laws. Austereo is considered a prime takeover target if Village agrees to sell, but Mr. Harvie downplayed talk of prospective deals, The Australian notes. "I think everything is of interest to everyone, but the legislation hasn't gone through and you don't know what the Nationals will do, so I can't really speculate," Mr. Harvie said, noting that the buyback would not preclude future acquisitions. "We still have the capacity to do that, we have access to funds, so it's not a prohibition to any course of action the board may decide to take," The Australian cites Mr. Harvie as saying. According to the Sydney Morning Herald, Austereo said the proposed buyback might increase gearing to about 32.4% from the current level of 27.4%. About Village Roadshow Headquartered in Melbourne, Australia, Village Roadshow Limited -- http://www.villageroadshow.com.au/-- is an international media and entertainment company that operates core businesses in cinema, movie production, film distribution, radio, and theme parks. The Company's troubles began in 2003 when it offered to buy back its preference shares to head off a litigation threat by some preference shareholders who were angered at the Company's suspension of dividend payments. Village Roadshow's reported and budgeted profitability would not allow it to comfortably fund about AU$42 million worth of ordinary and preference share dividends out of annual earnings. For the past years, the Company has been facing major litigation brought by former business partners, who had invested in its film investment scheme. In December 2005, the Film Production division undertook a substantial restructure. As part of this restructure, a US$115 million Promissory Note was issued to Crescent Film Holdings and options to acquire a 50% shareholding in the Hollywood film production and related film exploitation business, Village Roadshow Pictures Group, were granted to Crescent and its affiliates. This initiative, together with the release of a US$70 million security deposit (replaced by a Letter of Credit), returned significant cash reserves to Village Roadshow. By January 2006, Village Roadshow had advised that VRPG had reached agreement with its financiers to increase its film production facility from US$900 million to US$1.4 billion. VRPG will continue to co-produce and co-finance films with its principal production partner, Warner Bros. The revolving period of the facility has also been extended for a further three years. As a result, drawdowns will now be available under the facility until January 2011 (previously February 2008) with the debt now scheduled to be fully repaid by January 2015 (previously January 2012). * * * The Troubled Company Reporter - Asia Pacific reported on March 1, 2006, that Village Roadshow posted a AU$2.21-million loss for the half-year ended December 31, 2006, compared to a net profit of AU$29.99 million in the previous corresponding half. The result is contrary to a profit downgrade in January, which already suggested a break-even figure. The entertainment group blames its poor financial result on lower cinema ticket sales, compounding losses from the restructuring of its movie production business and legal battles. VIP VENDING: Placed Under Members' Voluntary Liquidation -------------------------------------------------------- The members of VIP Vending (Victoria) Pty Limited met on August 11, 2006, and agreed to voluntarily wind up the company's operations. Accordingly, 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 WAIHEKE CHARTERS: Creditors' Proofs of Claim Due on Sept. 22 ------------------------------------------------------------ Shareholders of Waiheke Charters Ltd appointed on August 21, 2006, Paul Graham Sargison and Gerald Stanley Rea as joint and several liquidators. The Joint Liquidators require creditors to submit their proofs of claim by September 22, 2006, for them to share in any distribution the company will make. The Joint and Several Liquidator can be reached at: P.G. Sargison Gerry Rea Associates P.O. Box 3015, Auckland New Zealand Telephone: (09) 377 3099 Facsimile: (09) 377 3098 WARBROOK EQUIPMENT: Members and Creditors Resolve to Close Firm --------------------------------------------------------------- At a general meeting held on August 8, 2006, the members and creditors of Warbrook Equipment Pty Ltd resolved to close the company's business and appoint Gregory Stuart Andrews as liquidator. The Liquidator can be reached at: Gregory Stuart Andrews G. S. Andrews & Associates 22 Drummond Street Carlton 3053 Australia Telephone:(03) 9662 2666 Facsimile:(03) 9662 9544 WESTPOINT GROUP: Banks Unwilling to Open Accounts for N. Carey -------------------------------------------------------------- Westpoint Group's founder, Norman Phillip Carey has not received any living expenses since the end of July 2006 because no major bank is willing to open a bank account for him, The Courier-Mail reports. According to The West Australian, Mr. Carey tried to open accounts with Westpac, Commonwealth, ANZ Bank, and Bank-West, but was refused because of the Federal Court orders against him. National Australia Bank and Bendigo Bank also refused Mr. Carey, the paper notes. Westpoint's receiver, Brian McMaster of KordaMentha, also applied to the National Australia Bank for a bank account on Mr. Carey's behalf, but was unsuccessful, The Courier-Mail notes. Thus, Mr. Carey's lawyer Terrence Clavey indicated that he would seek from the Federal Court in Perth for a variation of orders that would allow Mr. Carey to open a bank account, The Courier- Mail relates. According to The West Australian, Mr. Clavey said his client had struck a deal to be paid by court-appointed receivers KordaMentha but was unable to cash his pay cheques because he had no bank account. Mr. Carey has been allowed an undisclosed living expense from Westpoint's receivers, paid from Westpoint companies Richstar Enterprises and Westpoint Realty, The Courier-Mail says. The West Australian relates that Mr. Carey's private financial affairs are under the control of receivers appointed by the Federal Court to secure control of Carey-linked assets that seemed to have escaped the Westpoint collapse late last year. As reported in the Troubled Company Reporter - Asia Pacific on July 7, 2006, Mr. Carey requested AU$4,000 in weekly living expenses, saying that before Wespoint's failure, the Company paid for all his needs. Mr. Carey prepared an affidavit outlining his financial situation, The West reveals. Mr. Clavey notes that he will apply to keep it confidential. The West Australian says the affidavit also details the finances of Mr. Carey's former wife. The paper recounts that Mr. Carey's split with Diane Carey saw litigation launched in the Supreme Court in April 2003 over an allegedly flawed pre-nuptial agreement. In the court action against Ms. Carey and a Perth law firm, Mr. Carey claimed the alleged flaws had disrupted his business activities and cut the value of his companies, The West Australian relates. Justice Robert French adjourned the matter, including Mr. Clavey's request to keep the affidavit confidential to a later date. About Westpoint Group Headquartered in Perth, Western Australia, the Westpoint Group - - http://westpoint.com.au/-- is engaged in property development and owns or manages retail and commercial properties with a total value of over AU$300 million. The Group's troubles began in 2005 when the Australian Securities and Investments Commission commenced investigations on 160 companies within the Westpoint Group. The ASIC's investigation led to ASIC initiating action in late 2005 in the Federal Court of Australia against a number of mezzanine companies in the Westpoint Group, including winding up proceedings. The ASIC contends that Westpoint projects are suffering from significant shortfall of assets over liabilities so that hundreds of investors are at serious risk of not receiving repayment of their investments. The ASIC also sought wind-up orders after the Westpoint companies failed to comply with its requirement to lodge accounts for certain financial years. These wind-up actions are still continuing. In February 2006, the Federal Court in Perth issued a wind-up order against Westpoint Corporation Pty Ltd. The ASIC had applied to wind up the company on grounds of insolvency. The ASIC believes that Westpoint Corporation is responsible for arranging, managing and coordinating Westpoint Group's property projects as well as holding money for other group companies. The ASIC was concerned that Westpoint Corporation was unable to pay its debts, including its obligations under the guarantees given to the mezzanine companies to make good expected shortfalls in the repayment of amounts owed to investors. The Westpoint Group's collapse is considered by many as the largest of its type in recent years, with small investors being the biggest group affected. Investors are currently joining forces to commence a class action against Westpoint and its advisors. XERIUM TECHNOLOGIES: Earns US$11.1 Million for 2Q2006 ----------------------------------------------------- Xerium Technologies, Inc.'s net income was US$11.1 million for the second quarter of 2006 compared to a net loss of US$12.3 million for the second quarter of 2005. The Company's net sales for the second quarter of 2006 were US$154.6 million, a 6% increase from US$145.9 million for the second quarter of 2005. The Company disclosed net cash generated by operating activities was US$18.3 million for the second quarter of 2006, compared to a negative US$11.1 million in the same quarter last year. The Company also disclosed capital expenditures for the second quarter of 2006 were US$9.5 million, compared to US$8.7 million for the second quarter of 2005. Approximately US$6.2 million of capital expenditures in this year's second quarter were directed toward projects designed to support the Company's growth objectives, with the remaining US$3.3 million used to sustain the Company's existing operations and facilities. Net income of the Company was US$20.7 million, for the first six months of 2006, compared to a net loss of US$4.1 million, for the same period of 2005. The Company's net sales for the first half of 2006 were US$301.3 million, a 1.2% increase from US$297.8 million for the first six months of 2005. The total impact of currency fluctuations on net sales for the first six months of 2006, as compared to the first half of 2005, was a decrease of US$5 million, including US$1.6 million from currency translation and US$3.4 million from the effect of currency on pricing. Net cash generated by operating activities was US$22 million for the first six months of 2006, compared to US$6.6 million in the same period last year. Declaration of Cash Dividend The Company also disclosed that its Board of Directors has declared a cash dividend of US$0.225 per share of common stock payable on September 15, 2006. About Xerium Technologies Headquartered in Wesborough, Massachusetts, Xerium Technologies, Inc. (NYSE: XRM) -- http://xerium.com/-- is a leading global manufacturer and supplier of two types of products used primarily in the production of paper: clothing and roll covers. The company, which operates around the world under a variety of brand names, owns a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products integral to production, all designed to optimize performance and reduce operational costs. With 36 manufacturing facilities in 15 countries -- including, Japan and Australia -- Xerium Technologies has approximately 3,900 employees. * * * As reported in the Troubled Company Reporter on January 24, 2006, Moody's Investors Service changed the outlook on Xerium Technologies, Inc.'s ratings to negative from stable, and affirmed the company's corporate family rating at B1. The change in outlook to negative reflects Xerium's weaker than expected operating performance primarily due to production inefficiencies in North America and delays in achieving benefits from cost reduction initiatives. Moody's believes the impact of these issues, coupled with a difficult pricing environment for roll covers and to a lesser extent clothing products, will continue to negatively affect operating performance over the intermediate term. Affirmed ratings are: * Corporate family rating; B1 * Guaranteed senior secured term loan B; B1 * Guaranteed senior secured revolving credit facility; B1 XERIUM TECHNOLOGIES: Sells Huyck Dewatering Equipment Business -------------------------------------------------------------- Xerium Technologies, Inc., has completed the sale of its Huyck Dewatering Equipment Business, based in Whitstable, United Kingdom, to subsidiaries of Groupe Laperriere & Verreault Inc. The Huyck Dewatering Equipment Business is engaged primarily in the business of the manufacture and sale of equipment utilized in the wet end of paper-producing machines for the purpose of enhancing the removal of water from the paper manufacturing process. Net sales of the Huyck Dewatering Equipment business for the first half of 2006 were approximately US$2.0 million. Financial terms of the transaction were not disclosed. Tom Gutierrez, Xerium's President and Chief Executive Officer, says, "We are pleased to complete the sale of the Huyck Dewatering Equipment Business. This business had been operated in connection with our European clothing operation, and we believe that the divestment of this non-core business represents an opportunity to enhance the focus of our European clothing management team on its core business." About Xerium Technologies Headquartered in Wesborough, Massachusetts, Xerium Technologies, Inc. (NYSE: XRM) -- http://xerium.com/-- is a leading global manufacturer and supplier of two types of products used primarily in the production of paper: clothing and roll covers. The company, which operates around the world under a variety of brand names, owns a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products integral to production, all designed to optimize performance and reduce operational costs. With 36 manufacturing facilities in 15 countries -- including, Japan and Australia -- Xerium Technologies has approximately 3,900 employees. * * * As reported in the Troubled Company Reporter on January 24, 2006, Moody's Investors Service changed the outlook on Xerium Technologies, Inc.'s ratings to negative from stable, and affirmed the company's corporate family rating at B1. The change in outlook to negative reflects Xerium's weaker than expected operating performance primarily due to production inefficiencies in North America and delays in achieving benefits from cost reduction initiatives. Moody's believes the impact of these issues, coupled with a difficult pricing environment for roll covers and to a lesser extent clothing products, will continue to negatively affect operating performance over the intermediate term. Affirmed ratings are: * Corporate family rating; B1 * Guaranteed senior secured term loan B; B1 * Guaranteed senior secured revolving credit facility; B1 XIRO CONSULTING: Members to Receive Wind-Up Report -------------------------------------------------- Members of Xiro Consulting Pty Ltd will hold a final meeting on September 15, 2006, at 11:00 a.m., to receive the liquidator's accounts of the company's wind-up proceedings and property disposal exercises. The Troubled Company Reporter - Asia Pacific reported on March 1, 2006, that the company commenced a wind-up of its operations on February 6, 2006. The joint and several liquidators can be reached at: Antony de Vries Riad Tayeh Level 3, 95 Macquarie Street Parramatta, New South Wales 2150 Australia ================================ C H I N A & H O N G K O N G ================================ ASIA PREMIUM: Balance Sheet Upside-Down by US$2.7 Mil at June 30 ---------------------------------------------------------------- Asia Premium Television Group, Inc., earned US$580,654 of net income on US$20,491,876 of revenues on the second quarter ending June 30, 2006, the Company disclosed on a Form 10-Q filing delivered to the Securities and Exchange Commission on Aug. 11, 2006. As of June 30, 2006, the Asia Premium's balance sheet showed US$21,467,223 in assets and US$23,585,978 in liabilities. The Company's equity deficit narrowed to US$2,118,755 as of June 30, 2006, from a US$2,702,824 equity deficit at Dec. 31, 2005. The Company had US$20,507,372 in current assets at June 30, 2006, available to pay off US$23,518,441 of debts due in the next 12 months. The Company's net cash provided by operating activities increased to US$3.4 million for the three months ended June 30, 2006, compared to US$1.6 million for the three months ended June 30, 2005. This increase was primarily due to an increase in accounts payable and other payables. Net cash used by investing activities increased to US$200,000 for the three months ended June 30, 2006, compared to net cash used by investing activities of US$100,000 for the three months ended June 30, 2005, due primarily to increases in payments for property and equipment and a note receivable. Net cash used by financing activities was US$50,000 in the three months ended June 30, 2006, as compared to US$10,000 during the three months ended June 30, 2005. This change was primarily due to a decrease in advances payable to related parties in the three months ended June 30, 2006, as compared to the same period in 2005. Going Concern Doubt The Company's management expressed substantial doubt about the Company's ability to continue as a going concern due to liquidity problems. However, management believes the going concern is mitigated because of these factors: a) convertible notes payable in the amount of US$4,000,000 is included in current liabilities but the note is held by a significant shareholder and will be repaid by conversion into common stock; b) the Company has shown a net profit in each of the two most recent fiscal years and expects the trend to continue; and c) the Company has generated positive cash flows in each of the two most recent fiscal years and expects the trend to continue. A full-text copy of the regulatory filing is available for free at http://ResearchArchives.com/t/s?106a About Asia Premium Television Asia Premium Television Group, Inc., provides marketing, brand management, advertising, media planning, public relations and direct marketing services to clients in the People's Republic of China. The Company's primary operating activities are Publishing advertisements as agents for clients; Media consulting services; and Advertising production. BANK SINOPAC: S&P Affirms Bank Financial Strength Rating at C+ -------------------------------------------------------------- Standard & Poor's Ratings Services affirmed on August 28, 2006, its 'BBB-' long-term and 'A-3' short-term counterparty credit ratings on SinoPac Holdings. The outlook is stable. The ratings reflect the SinoPac group's satisfactory asset quality and capitalization, as well as its prudent risk controls. Counterbalancing factors include the group's size, which is small by international standards. Standard & Poor's also affirmed its 'BBB' long-term and 'A-2' short term counterparty credit ratings on Bank SinoPac. The outlook is also stable. At the same time, the 'C+' bank fundamental strength rating on the bank was affirmed. The ratings reflect the bank's above-average asset quality, adequate capitalization, and prudent risk controls. Counterbalancing factors include the bank's size, which is also small by international standards. With total equity of TWD92.4 billion and consolidated assets of TWD1.1 trillion at the end of March 2006, SinoPac is a midsize financial holding company. In addition to Bank SinoPac, its major subsidiaries are International Bank of Taipei and SinoPac Securities Corp. The SinoPac group's profitability is below average by international standards but its asset quality and capitalization are satisfactory. * * * Bank Sinopac -- http://www.banksinopac.com.tw-- is a Taiwan- based banking holding company. The bank was founded by Samuel Yin and Paul Lo in 1992 as Taiwan liberalized its banking regulations. In late 2005, SinoPac merged with the International Bank of Taiwan. BROWNHILL TRADING: Final Members Meeting Set on September 20 ------------------------------------------------------------- Members of Brownhill Trading Co Ltd will convene for their final meeting at 7th Floor, Alexandra House, 18 Chater Road, Central, Hong Kong on September 20, 2006, 3:30 p.m. At the meeting, Liquidator David J. Lawrence will report on the company's wind-up and property disposal exercises. The Troubled Company Reporter - Asia Pacific reported on April 10, 2006, that the Company commenced a wind-up of its operations on March 15, 2006. CERADYNE INC: 2006 2nd Quarter Net Income Climbs to US$30 Mil. -------------------------------------------------------------- Ceradyn, Inc. registered increased sales for the second quarter 2006 of US$162 million, up from US$89.9 million in second quarter 2005. Net income increased to a record US$30 million, compared to a net income of US$11.4 million in second quarter 2005. Sales for the six months ended June 30, 2006 were US$298.4 million, up from US$159.7 million in the comparable period last year. Net income for the first six months of 2006 increased to US$54.6 million from US$17.4 million for the first six-month period in 2005. Total backlog as of June 30, 2006 rose to a record US$256.6 million compared to total backlog at June 30, 2005 of US$215.6 million. "We are very pleased with the significant increase in our second quarter 2006 financial performance," Joel P. Moskowitz, chief executive officer, commented. "The expansion of production capacity at our Lexington, Kentucky technical ceramic manufacturing facility this year allowed us to ramp up in order to meet the U.S. government's continuing requirements for lightweight ceramic body armor. The award to Ceradyne for ESBI (side plates) in early July of a US$59.8 million, 2006 delivery order, as part of a new 5-year indefinite delivery/indefinite quantity contract with a maximum value of US$611.7 million, indicates the continued demand for our lightweight ceramic body armor. "The exclusive agreement with Alcan, the establishing of a manufacturing facility in Chicoutimi, Quebec, Canada, and the acquisition of the nuclear radiation shielding business which were announced in July 2006 will put Ceradyne in the aluminum/boron carbide metal matrix composite business in order to produce structural elements for the fabrication of nuclear waste containment vessels. Ceradyne intends to develop ballistic grade aluminum compositions for armored vehicles and use its new Canadian facility as a base for working with the aluminum smelting industry regarding advanced technical ceramic applications. "Additionally, the Company intends to break ground this quarter on a technical ceramic manufacturing plant in Tianjin, China. This 117,000 square foot factory will be Ceradyne's first manufacturing facility in China. Although its initial ceramic product will be related to the Chinese manufacture of silicon solar energy cells, we anticipate it will expand our presence in China and complement our Beijing sales office." Mr. Moskowitz further stated: "We recently commenced a voluntary review of our historical stock option grants and related accounting treatment. This review was initiated by Ceradyne in response to concerns raised by several non-regulatory parties about our stock option granting policies and wide public media coverage of stock option grant issues involving other companies. This review is being conducted by a Special Committee of our Board of Directors, comprised solely of independent directors, with the assistance of independent legal counsel. The review is focusing on stock option grants made during the period of 1997 to the present. "Although the Special Committee's review has not been completed, management has concluded that the measurement dates for accounting purposes differ from recorded dates for certain stock option grants made during 1997 through 2003. As a result of these findings, in the 2006 second quarter, the Company recorded an estimated after-tax, non-cash charge of approximately US$1.5 million pertaining to the years ended December 31, 1997 to 2005 and the first six months of 2006. However, because the review has not been completed, the charge we have recorded in the 2006 second quarter may be modified or significantly changed." About Ceradyne Ceradyne, Inc. (Nasdaq: CRDN) -- http://www.ceradyne.com/-- develops, manufactures and markets advanced technical ceramic products and components for defense, industrial, automotive/dieseland consumer applications. The company operates a technical ceramic plant in Tianjin, China. * * * As reported in the Troubled Company Reporter on July 24, 2006, Ceradyne's $50 million revolving credit facility due 2009 carries Standard & Poor's BB- rating. Standard & Poor's also rates the Company's credit rating at BB-. CHAMP EMPIRE: Faces Wind-Up Proceedings --------------------------------------- A wind-up petition filed against Champ Empire Ltd will be heard before the High Court of Hong Kong on September 20, 2006, at 9:30 a.m. Wong Tak Lok filed the petition with the Court on July 24, 2006. The Plaintiff's Solicitor can be reached at: Joe Poon For Director of Legal Aid 34/F., Hopewell Centre 183 Queen's Road East Wanchai, Hong Kong CHINA STEP: Creditors Must Prove Debts by September 22 ------------------------------------------------------ Liquidator Chan Sek Kwan, Rays require the creditors of China Step Holdings Ltd to prove their debts by September 22, 2006. Failure to show proofs of claim will exclude a creditor from sharing in any distribution the company will make. The Liquidator can be reached at: Chan Sek Kwan, Rays Unit G, 12/F., Seabright Plaza 9-23 Shell Street, North Point Hong Kong CHINA TRADE: Appoints Official Liquidator ----------------------------------------- Members of China Trade International (HK) Limited appointed on August 11, 2006, Chan Bing Chung, Jones as the company's official Liquidator. The appointment came after members passed a resolution to voluntarily wind-up its operations. CHINTUNG FUTURES: Annual Meeting Fixed on Sept. 19 -------------------------------------------------- Members and creditors of Chintung Futures Ltd will convene for their annual meeting on September 19, 2006, 11:00 a.m. at 18th Floor, Two International Finance Centre, 8 Finance Street Central, Hong Kong. At the meeting, Liquidator Ian Grant Robinson will report on the Company's wind-up and property disposal activities. DU WIN GARMENTS: Court to Hear Wind-Up Bid on September 27 ---------------------------------------------------------- The High Court of Hong Kong will hear a wind-up petition filed against Du Win Garments Ltd on September 27, 2006, at 9:30 a.m. Chan Lai Yee filed the petition with the Court on July 28, 2006. The Plaintiff's Solicitor can be reached at: Joe Poon For Director of Legal Aid 34/F., Hopewell Centre 183 Queen's Road East Wanchai, Hong Kong GLOBAL CROSSING: Mexican Customer Base Grew 64% ----------------------------------------------- Global Crossing disclosed that the number of its enterprise and carrier customers increased 64% year over year in the second quarter of 2006 due to the accelerated adoption of its services in the "invest and grow" segment, which provides IP services to enterprises via direct and indirect distribution channels. Global Crossing, which began operations in Mexico in October 2000, has ramped up its service offerings to enterprises in the local market and as a result, the number of enterprise customers in Mexico increased by 50 percent in the second quarter of 2006 compared to the previous year. Global Crossing's state-of-the- art Internet Protocol solutions also have been key to the company's success in Mexico. Overall IP traffic more than doubled in the country during the same time period, outpacing the company's global IP growth. "As one of Latin America's most dynamic economies, Mexico is a strategic market for Global Crossing," said Jose Antonio R�os, international president and CAO of Global Crossing. "Seeing this type of growth in our customer base further reinforces our reputation as an IP solutions provider of choice for both enterprises and the carriers in all of the markets we serve. We look forward to working and growing together with national and multinational firms as they expand into the Mexican market." Global Crossing also has seen remarkable Internet growth in Mexico -- the number of customers with Internet services increased by 144 percent during the 12-month period ending June 2006. In addition, the number of enterprise and carrier customers who use IP and data services delivered over Global Crossing's private network - services such as Multiprotocol Label Switching (MPLS)-based IP VPNs and legacy services like Frame Relay and ATM -- has doubled. As a leading enabler of IP convergence - that is the combination of voice, video and data over a single connection and a secure network -- Global Crossing supports fully interoperable legacy and IP-based services, offering customers the ability to transition to IP at their own pace. "Global Crossing has been a valuable strategic partner," said Kent Brailovsky, director of the Computer Center for Instituto Tecnologico Autonomo de Mexico or ITAM. "They have provided the flexibility and high-quality solutions that meet the exacting performance and reliability we require. As a result, our productivity has increased, and our global connectivity has been simplified, enabling us to collaborate with international research and academic institutions. We look forward to Global Crossing's continued support as we strengthen our position as one of the leading universities in Mexico." "In only six years, Global Crossing has established a significant foothold among key enterprise and carrier customers in Mexico, including nine of the 10 major carriers in the country," added Adrian Gonzalez, managing director of Global Crossing in Mexico. "The demand we've seen for Global Crossing's IP solutions among leading companies in Mexico has been exceptional, and our global IP platform enables us to continue to respond to its ever-accelerating demand. We will continue to serve our customers with the best solutions, services and networking in the marketplace." Global Crossing's Mexican operations are headquartered in Mexico City, with a terrestrial network connecting Mexico City, Monterrey, Guadalajara and Mazatlan. Through its subsea system, Global Crossing connects facilities in Tijuana and the rest of its global network, delivering services to 600 cities in 60 countries on six continents. The Federal Telecommunications Commission or Cofetel granted Global Crossing its telecommunications license in October 2000, allowing the company to connect Mexico with the major cities of the world. In Latin America and the Caribbean, the company's presence extends to 12 of the region's major cities, seamlessly connecting South America, Mexico, Central America and the Caribbean to the rest of its global network. With its regional network officially completed in 2001, Global Crossing now serves virtually all of Latin America's major carriers, as well as many prestigious Latin American companies, including Odebrecht, Brazil's largest multinational construction company; Arcor, the world's largest confectionary; Mexicana de Aviacion and Banco Santander. Global Crossing continues to make important investments in its IP network to meet the increasing demand of customers around the world, including new landing point in Costa Rica and a recent upgrade of the Mid-Atlantic Crossing (MAC) to add wavelengths on this undersea link connecting the company's North and South America networks. About Global Crossing Headquartered in Florham Park, New Jersey, Global Crossing Ltd. -- http://www.globalcrossing.com/-- provides telecommunication services over the world's first integrated global IP-based network, which reaches 27 countries and more than 200 major cities around the globe including Hong Kong. Global Crossing serves many of the world's largest corporations, providing a full range of managed data and voice products and services. The company filed for chapter 11 protection on Jan. 28, 2002 (Bankr. S.D.N.Y. Case No. 02-40188). When the Debtors filed for protection from their creditors, they listed US$25,511,000,000 in total assets and US$15,467,000,000 in total debts. Global Crossing emerged from chapter 11 on Dec. 9, 2003. As of Dec. 31, 2005, Global Crossing's balance sheet reflected a US$173 million equity deficit compared to US$51 million of positive equity at Dec. 31, 2004. HEAPS LIMITED: Joint Liquidators to Present Wind-Up Report ---------------------------------------------------------- Joint and Several Liquidators Sie Ki and Au Yeung Tin Wah will present to the members of Heaps Ltd accounts of the company's wind-up and property disposal activities. The presentation will be made at 2701, 27/F., Wing On House, 71 Des Voeux Road Central, Hong Kong on September 19, 2006, at 10:00 a.m. HOWELL ENGINEERING: Wind-Up Bid Hearing Fixed on Sept. 27 --------------------------------------------------------- A wind-up petition filed against Howell Engineering Ltd will be heard before the High Court of Hong Kong on September 27, 2006, at 9:30 a.m. Ho Kwok Hung filed the petition with the Court on July 26, 2006. The Plaintiff's Solicitor can be reached at: Joe Poon For Director of Legal Aid 34/F., Hopewell Centre 183 Queen's Road East Wanchai, Hong Kong FOREMOST CITY: Liquidator to Present Wind-Up Report --------------------------------------------------- Liquidator Francis Young will present on September 19, 2006, at 11:30 a.m. accounts of Foremost City Ltd's wind-up and the manner its properties were disposed of. The presentation will be made at the final members meeting to be held at 20th Floor, Tung Wai Commercial Bldg., 109-111 Gloucester Road, Wanchai, Hong Kong. ID INNOVATION: Members and Creditors to Meet on Sept. 5 ------------------------------------------------------- Members and creditors of iD Innovation Ltd will convene on September 5, 2006, at 3:00 p.m. and 3:30 p.m. respectively. The meetings will be held at 32/F., One Pacific Place, 88 Queensway, Hong Kong. During the meeting, Liquidators Lai Kar Yan, Derek and Darach Haughey will present their report on the company's wind-up and property disposal exercises. KWAN FONG: Members' Final Meeting Set on September 19 ----------------------------------------------------- Members of Kwan Fong Charitable Foundation Ltd will meet for their final meeting at Room 2803A, 28/F Wu Chung House, 213 Queen's Road East, Wan Chai on September 19, 2006, at 10:00 a.m. During the meeting, Liquidator Fred Lee will present a report regarding the company's wind-up and the manner its properties were disposed of. MEDARTS MEDICAL: Auditor Raises Going Concern Doubt on Operation ---------------------------------------------------------------- Medarts Medical System Inc. submitted before the United States Securities and Exchange Commission its 10-Q filing for the first quarter period ending April 30, 2006. The company's balance sheet as of April 30 showed US$0 current assets compared with current liabilities at US$3,615. Total shareholders deficit as April 30 amounted to US$3, 615. Gately & Associates, the company's auditors, expressed a going concern doubt on the company's operation. "At April 30, 2006, the Company had negative working capital and a stockholder's deficiency of US$3,715. For the period August 19, 2004 to April 30, 2006, the Company incurred net losses of $3,715. These factors create uncertainty as to the Company's ability to continue as a going concern," the auditor's report said. The auditors added that the Company is making efforts to acquire a business with assets and operations. However, there is no assurance that the Company will be successful in accomplishing this objective. * * * Medarts Medical System, Inc. -- formerly, Unise Investment Holding of China, Inc. -- was incorporated in the State of Delaware on August 19, 2004 under the name Edmonds 3, Inc. On June 29, 2005, the sole officer, director, and stockholder of the Company sold all 100,000 issued and outstanding shares of the Company's Common Stock to Shaanxi Jialong Hi-Tech Industries Inc., a corporation organized in China, for US$76,000 cash. Also on June 29, 2005, the Company's name was changed from Edmonds 3, Inc. to Along Mobile Technology Inc. On June 29, 2005, the Company's intention was to merge with Shaanxi Jialong High-tech Industries, Inc., a development stage company planning to engage in the business of publishing wireless entertainment applications. Subsequently, the Company decided to seek other business entities to combine with. The combination will likely take the form of a merger, stock for stock exchange, or stock for assets exchange. On June 28, 2006, the Company changed its name to Medarts Medical System, Inc. The Company has no products or services; the Company is seeking a business to merge with or acquire. ORIENT EXPRESS: Commences Wind-Up Proceedings --------------------------------------------- Members of Orient Express Container Air (Hong Kong) Co Ltd resolved on August 14, 2006, to voluntary wind-up the Company's operations and appoint Chui Chi Hung as Liquidator. The Liquidator can be reached at: Chui Chi Hung 13/F., Chun Hoi Commercial Bldg 688-690 Shanghai Street Mongkok, Kowloon Hong Kong OTTO CONTAINER: Members Opt for Voluntary Wind-Up ------------------------------------------------- Members of Otto Container Line Ltd resolved on August 4, 2006, to wind-up the Company's operation. In this regard, Natalia KM Seng and Susan YH Lo were appointed as joint and several Liquidators. The Joint and Several Liquidators can be reached at: Susan Y H Lo Level 28, Three Pacific Place 1 Queen's Road East, Wanchai Hong Kong SKY GREAT: Sole Member to Receive Wind-Up Report ------------------------------------------------ The sole member of Sky Great Shipping Ltd will be receiving Liquidator Lam Ying Sui's report regarding the Company's wind-up and property disposal activities. The report will be presented on September 18, 2006, 3:00 p.m. at Room 1005, Allied Kajima Bldg, 138 Gloucester Road, Wanchai. Hong Kong. SKYLINE VIEW: Creditors' Proofs of Claim Due on September 20 ------------------------------------------------------------ Creditors of Skyline View Ltd are required to submit their proofs of claim to Liquidator Lin Lai Har, Wendy by September 20, 2006. Failure to prove debts will exclude a creditor from sharing in any distribution the company will make. According to the Troubled Company Reporter - Asia Pacific, members resolved to wind up the company's operations on August 8, 2006. The Liquidator can be reached at: Lin Lai Har, Wendy 1301 Elton Tower 8 Hysan Ave., Causeway Bay Hong Kong TRELOCK HONG KONG: Member Resolve to Wind Up Operations ------------------------------------------------------- The sole member of Trelock Hong Kong Ltd resolved on August 11, 2006, to wind-up the Company's operations. Subsequently, Chan Bing Chung, Jones, was appointed as Liquidator to oversee the company's liquidation activities. ========= I N D I A ========= FEDDERS CORP: Equity Deficit Widens to US$17.04M in Six Months -------------------------------------------------------------- Fedders Corp. incurred a US$10.04-million net loss on US$95.57 million of net sales for the second quarter ending June 30, 2006, the Company disclosed on a Form 10-Q filing delivered to the Securities and Exchange Commission on Aug. 9, 2006. As of June 30, 2006, the Company's balance sheet showed US$330.07 million in assets and US$347.11 million in liabilities. The Company's equity deficit widened to US$17.04 million at June 30, 2006, from a US$62,000 deficit at Dec. 31, 2005. Liquidity and Capital Resources The Company's working capital requirements are seasonal, with cash balances peaking in the third quarter of each calendar year and the greatest utilization of its lines of credit occurring early in the calendar year. Cash on hand amounted to US$11.8 million at June 30, 2006 compared with US$17.8 million a year earlier. Short-term borrowings under the Company's working capital credit facilities amounted to US$45.8 million at June 30, 2006, compared with US$90.5 million a year earlier. Current portion of long-term debt amounted to US$2.3 million at June 30, 2006, compared with US$1.5 million a year earlier. Net cash provided by operating activities for the six-month period ended June 30, 2006, amounted to US$9.2 million, compared with cash used of US$17.7 million in the prior-year period. Cash was provided by operations primarily as a result of increased accounts receivable as the Company was in a more active selling season, partly offset by increased accounts payable. Accounts receivable increased US$15 million versus an increase of US$58.0 million in the prior year. Net inventories at June 30, 2006, were US$61.7 million compared with US$74.3 million at Dec. 31, 2005, and US$103.7 million at June 30, 2005. The reduced inventory levels reflect the Company's decision to discontinue room air conditioner and dehumidifier sales to The Home Depot United States retail stores and management's focus on reducing inventory. Accounts payable at June 30, 2006, were US$65.7 million compared with US$44.0 million at Dec. 31, 2005, and $55.5 million at June 30, 2005, and reflect increased production compared with prior year. Net cash used in investing activities in the six-month period ended June 30, 2006, of US$0.7 million compared with cash used of US$12.6 million in the prior-year period. Investing activities included US$1.6 million for additions to property, plant, and equipment, compared with US$3.3 million for the prior-year period. This was partly offset by US$0.9 million proceeds from asset sales in the first quarter. Net cash used by financing activities for the six-month period ended June 30, 2006, amounted to US$11.5 million, primarily for repaying debt. Net cash provided by financing activities in the prior-year period was US$26.3 million, comprised primarily of US$31.2 million in short-term borrowings that were used to support operating needs, and US$4.0 million of cash dividends. The Company did not declare quarterly dividends in the three months ended June 30, 2006. The First Supplemental Indenture limits, among other things, the Company from making any dividend payments without sufficient consolidated net income beginning January 1, 2006. The Company declared quarterly dividends of US$0.03 on each share of outstanding common and Class B stock and US$0.5375 on each share of outstanding preferred stock in the three months ended June 30, 2005 and US$0.06 on each share of outstanding common and Class B stock and US$1.076 on each share of outstanding preferred stock in the six months ended June 30, 2005. A full-text copy of the regulatory filing is available for free at http://ResearchArchives.com/t/s?fff About Fedders Headquartered in Liberty Corner, New Jersey, Fedders Corporation, -- http://www.fedders.com/-- is a leading global manufacturer and marketer of air treatment products, including air conditioners, air cleaners, dehumidifiers, and humidifiers. The company has production facilities in the United States in Illinois, North Carolina, New Mexico, and Texas and international production facilities in the Philippines, China and India. All products are manufactured to Fedders' one worldwide standard of quality. The Company's balance sheet at Dec. 31, 2005, showed US$331,050,000 in total assets and US$331,110,000 in total liabilities, resulting in a de minimis stockholders' deficit. * * * As reported in the Troubled Company Reporter on July 5, 2005, Standard & Poor's Ratings Services lowered its corporate credit ratings on air treatment products manufacturer Fedders Corp. and Fedders North America Inc. to 'CC' from 'CCC'. At the same time, Fedders North America's senior unsecured debt rating was lowered to 'C' from 'CC'. S&P said the outlook remains negative. SILICON GRAPHICS: Judge Lifland Approves Disclosure Statement ------------------------------------------------------------- The Disclosure Statement of Silicon Graphics has been approved by the United States Bankruptcy Court for the Southern District of New York, on July 27, 2006, thereby enabling the Company to continue on its path toward emerging from chapter 11 by the end of September. At a hearing in New York, the Honorable Burton R. Lifland ruled that SGI's Disclosure Statement contained adequate information for the purpose of soliciting creditor approval of SGI's Plan of Reorganization. The Plan is supported by the Official Creditors' Committee, the Ad Hoc Committee of Senior Secured Noteholders and the largest holder of Silicon Graphics' Unsecured Debentures. SGI commenced mailing of the Plan and Disclosure Statement on Aug. 3, 2006. A hearing for the court to consider confirmation of the Plan has been scheduled for Sept. 19, 2006. Certain other motions related to employees and financing were also approved. A full-text copy of the Approved Disclosure Statement is available for free at http://ResearchArchives.com/t/s?e81 A full-text copy of the First Amended Plan is available for free at http://ResearchArchives.com/t/s?e82 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 OKs Solicitation and Tabulation Protocol ---------------------------------------------------------------- The United States Bankruptcy Court for the Southern District of New York approved Silicon Graphics, Inc., and its debtor- affiliates' proposed solicitation and tabulation procedures, and established: * Aug. 3, 2006, as the Solicitation Date and the Subscription Commencement Date; * Aug. 31, 2006, as the Confirmation Objections Deadline; * Sept. 6, 2006, as the Voting Deadline; and * Sept. 19, 2006, as the Confirmation Hearing Date. The Official Committee of Unsecured Creditors and the Ad Hoc Committee had written letters supporting the approval of the Disclosure Statement. The Support Letters will be included as part of the Solicitation Packages distributed to the holders of claims in classes entitled to vote to accept or reject the Plan. 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: Gets Final Nod to Use Cash Management System -------------------------------------------------------------- The Hon. Allan L. Gropper of the United States Bankruptcy Court for the Southern District of New York authorizes Silicon Graphics, Inc., and its debtor-affiliates to continue utilizing their current integrated cash management system in a manner consistent with their prepetition practices on a final basis. As reported in the Troubled Company Reporter on May 17, 2006, the Office of the United States Trustee has established certain operating guidelines for debtors-in-possession to supervise the administration of chapter 11 cases, including changes to the debtor's cash management system. A flow chart summarizing the Debtors' Cash Management System is available for free at http://ResearchArchives.com/t/s?e97 Gary T. Holtzer, Esq., at Weil, Gotshal & Manges LLP, in New York, informs the Court that the Debtors' Cash Management System constitutes an ordinary course and essential business practice providing significant benefits to the Debtors, including, the ability to: -- control corporate funds; -- ensure the maximum availability of funds when and where necessary; and -- reduce administrative expenses by facilitating the movement of funds and the development of more timely and accurate account balance information. 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: Modified Employee Incentive Plan Approved ----------------------------------------------------------- The United States Bankruptcy Court for the Southern District of New York approves Silicon Graphics, Inc., and its debtor- affiliates' Employee Incentive Plan, as modified, and authorizes them to pay their obligations under their Other Bonus Programs. The Debtors have modified their Employee Incentive Plan. Specifically, the number of eligible employees in Group 1 is increased from 23 to 27. Accordingly, the pool of funds available is increased to US$1,362,909. Each employee will receive a bonus of 29% of their annual base salary. The number of eligible engineers in Group 3 is increased from seven to nine. Group 3's funds is decreased to US$303,225. Thus, each engineer will receive a bonus of 25% of their annual salary. Gary T. Holtzer, Esq., at Weil, Gotshal & Manges LLP, in New York, relates that as a result of the modifications, US$25,000 was made available to increase the discretionary bonus pool from which individual bonus payments will be awarded. The Debtors have and will continue to identify non-insider employees eligible to receive bonus payments from the Discretionary Pool. Mr. Holtzer says that if an employee selected to receive a bonus payment under the EIP resigns or is terminated for cause prior to payment of all or part of their bonus, the unpaid portions will be forfeited and returned to the Discretionary Pool. Clarifications to Other Bonus Programs A. Referral Program: After the Debtors filed for bankruptcy, they inadvertently paid four Referral Bonuses totaling US$8,000 that were earned prepetition. The Debtors seek Retroactive approval of the payments. B. Lead Program: As of the Petition Date, approximately US$32,000 in prepetition bonuses were owed to 100 employees In connection with the program. The Debtors seek the Court's authority to pay all outstanding amounts under the program and to continue it in the ordinary course of business. C. Special Incentive Program: As of the Petition Date, US$4,500 In prepetition bonuses were owed to eight employees under the program which the Debtors inadvertently paid postpetition. The Debtors seek retroactive approval of the prepetition Bonus payments under the program and authority to continue The program in the ordinary course of business. D. Discretionary Bonus Program: The actual and correct amount of the bonus payment to a manager in the Debtors' engineering department is US$15,000. E. Retention Bonuses: The Debtors seek the Court's authority to pay five retention bonuses totaling US$30,400. F. Relocation Program: The Debtors learned that there are two employees awaiting reimbursement for their relocation expenses. The Debtors seek the Court's authority to make payments and to continue to pay newly hired employees for their relocation expenses on a case-by-case basis. G. Sign-On Bonus Program: The Debtors tell the Court that two employee candidates did not accept the offers of employment; thus, only three employees are awaiting payment of sign-on bonuses. H. Benchmarking Bonuses: The Debtors disclosed that they committed to pay a team of six employees a group bonus totaling US$12,000, or US$2,000 per 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: Hires Bear Stearns as Financial Advisor --------------------------------------------------------- The United States Bankruptcy Court for the Southern District of New York authorized Silicon Graphics, Inc., and its debtor- affiliates to employ Bear Stearns as their financial advisor, on a final basis. Bear Stearns will receive a cash fee equal to 1.00% of the aggregate consideration involved in a sale, only to the extent that aggregate Sale Fees exceed US$1,000,000. As reported in the Troubled Company Reporter on May 19, 2006, Bear Stearns will: (a) review and analyze the business, financial condition and prospects of the Debtors; (b) review and consider the potential combination benefits and other implications of effecting a sale with any acquiror; (c) review and consider the Debtors' available sale, restructuring and financing alternatives; (d) develop a valuation of the Debtors and any securities that the Debtors offer or propose to offer in connection with a transaction; (e) review and consider from a financial point of view proposed Transaction structures and terms; (f) develop and implement a strategy to effectuate a Transaction or a Financing, including in the case of a Sale: -- preparation and distribution of marketing materials; -- screening of prospective Acquirors; -- coordination of data room and Acquiror due diligence; and -- solicitation and review of proposals from prospective Acquirors; (g) develop presentations made to any official committee appointed in the bankruptcy cases, and other interested parties regarding the Transaction; (h) negotiate the Transaction with the Debtors' creditors, any Acquiror or any other interested parties; and (i) meet with the Debtors' Board of Directors to discuss any Transaction and Financing alternatives and their Financial implications. The Debtors agreed to pay Bear Stearns: (1) A US$100,000 monthly cash fee, payable on June 1, 2006, and on the first business day of each calendar month during the period of Bear Stearns's engagement; (2) If the Debtors consummate a Restructuring, a cash fee equal to US$1,500,000, which Restructuring Fee will be reduced by 50% of any Sale Fee, or by 100% of any Sale Fee associated with a Sale of substantially all of the Assets or equity securities of the Debtors; (3) If the Company consummates a Sale or enters into an agreement pursuant to which a Sale is subsequently consummated, a cash fee equal to 1% of the aggregate consideration involved in the Sale; (4) Upon mutual consent and under terms to be mutually agreed upon, Bear Stearns will assist the Debtors in consummating a Financing. 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 ================= ARMSTRONG WORLD: Parent Loses Ownership Under Chapter 11 Plan ------------------------------------------------------------- Armstrong Holdings, Inc., the parent company of Armstrong World Industries, Inc., provided additional information regarding the anticipated effect on Armstrong Holdings of the expected consummation of the Chapter 11 reorganization of AWI. As reported in the Troubled Company Reporter on Aug. 16, 2006, AWI's "Fourth Amended Plan of Reorganization, as Modified" was confirmed by the United States District Court and AWI currently expects to emerge from Chapter 11 in the fourth quarter of 2006. Pursuant to AWI's Chapter 11 Plan, Armstrong Holdings' ownership of AWI will end. All current AWI stock will be cancelled and no payment or other distribution will be made to Armstrong Holdings on account of its ownership interest. AWI will distribute to certain of its creditors under the Chapter 11 Plan cash and new common stock of reorganized AWI, and in certain circumstances may also distribute notes of reorganized AWI. These creditors include a trust that will be established to satisfy current and future asbestos personal injury claimants, and allowed unsecured creditors. Although AWI's Chapter 11 Plan has been confirmed, Armstrong Holdings has filed a claim against AWI in an unspecified amount in respect of intercompany accounts and, to the extent such claims are allowed by the Bankruptcy Court, Armstrong Holdings will participate on a pro rata basis in the distributions that are to be made under the Chapter 11 Plan to unsecured creditors. The cash and stock in AWI that Armstrong Holdings may receive as a result of such claims is not expected to have a value in excess of a few million dollars and there is no assurance that any claim will be allowed. Upon AWI's cancellation of Armstrong Holdings' ownership of AWI pursuant to the Chapter 11 Plan, Armstrong Holdings also will have a substantial ordinary income loss. This loss will be in addition to the substantial net operating loss, which AWI will incur in connection with consummation of its Chapter 11 Plan. As a result, the Armstrong consolidated group may be entitled to receive a tax refund based upon a carry back of a portion of the group's tax loss to prior years, in an amount estimated to be approximately US$37 million. It is not possible for Armstrong Holdings to estimate at this time the amount, if any, of such tax refund to which it may be entitled. Armstrong Holdings may also be entitled to additional benefits from carrying forward the balance of its tax loss. Following AWI's emergence from Chapter 11, Armstrong Holdings and AWI will cease reporting together as members of a consolidated group for U.S. federal income tax reporting purposes. A final federal income tax return for the companies on a consolidated basis is expected to be filed by September 2007. After considering the result of its intercompany account claims and the tax consequences to Armstrong Holdings of AWI's emergence from Chapter 11, Armstrong Holdings is expected to decide whether or not to dissolve. A full-text copy of the Fourth Amended Plan of Reorganization is available for free at http://ResearchArchives.com/t/s?fb4 About Armstrong World Based in Lancaster, Pennsylvania, Armstrong World Industries, Inc. -- http://www.armstrong.com/-- the major operating subsidiary of Armstrong Holdings, Inc., designs, manufactures and sells interior floor coverings and ceiling systems, around the world, including these Asia Pacific countries: China, Hong Kong, Japan, Philippines, Singapore and Indonesia. The Company and its debtor-affiliates filed for chapter 11 protection on December 6, 2000 (Bankr. Del. Case No. 00-04469). Stephen Karotkin, Esq., at Weil, Gotshal & Manges LLP, and Russell C. Silberglied, Esq., at Richards, Layton & Finger, P.A., represent the Debtors in their restructuring efforts. The Debtors tapped the Feinberg Group for analysis, evaluation, and treatment of personal injury asbestos claims. Mark Felger, Esq. and David Carickhoff, Esq., at Cozen and O'Connor, and Robert Drain, Esq., Andrew Rosenberg, Esq., and Alexander Rohan, Esq., at Paul, Weiss, Rifkind, Wharton & Garrison, represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Houlihan Lokey for financial and investment advice. The Official Committee of Asbestos Personal Injury Claimant hired Ashby & Geddes as counsel. When the Debtors filed for protection from their creditors, they listed US$4,032,200,000 in total assets and US$3,296,900,000 in liabilities. COMVERSE TECH: Subsidiary to Acquire Netonomy(R) for US$19M ----------------------------------------------------------- Comverse, a subsidiary of Comverse Technology, Inc., has signed a definitive agreement to acquire privately held Netonomy for approximately US$19 million in cash. "This acquisition is in line with our strategic efforts to continually enhance Comverse's Total Communication Product Portfolio's ability to generate revenues, strengthen customer loyalty and improve operational efficiency for communication service providers," Raz Alon, interim CEO of Comverse Technology, said. "Joining Comverse was a natural move," said John Ball, CEO of Netonomy. "Service providers need to accelerate the adoption of direct self-service quicker than ever to lower their cost of acquisition and service, regardless of market segment. Web access to select and change plans and features also improves customer satisfaction and loyalty, while reducing operational costs." About Comverse Technology Comverse Technology, Inc. (NASDAQ: CMVT) -- http://www.comverse.com/-- provides software and systems that enable network-based multimedia enhanced communication and billing services. Over 450 communication and content service providers in more than 120 countries use Comverse products to generate revenues, strengthen customer loyalty and improve operational efficiency. Comverse has offices all over the world, including Indonesia, Malaysia and the Philippines. * * * As reported in the Troubled Company Reporter on May 4, 2006, Standard & Poor's Ratings Services held its ratings on Comverse Technology Inc. on CreditWatch with negative implications, where they were placed on March 15, 2006, on the disclosure that the board of directors at Comverse had created a special committee to review matters relating to the company's stock option grants and the likely need to restate prior-period financial results. As reported in the Troubled Company Reporter on March 17, 2006, Standard & Poor's placed its corporate credit and senior unsecured debt ratings on Comverse Technology on CreditWatch with negative implications. The company has S&P's 'BB-' corporate credit and senior unsecured debt ratings. LAPINDO BRANTAS: IDR33.27T Toxic Mud Bill May Cause Bankruptcy -------------------------------------------------------------- Lapindo Brantas may go bankrupt if it is held responsible for cleaning up toxic mud its drilling operations brought forth in May 2006, Antara News reports. The mud has been spurting from under the ground since late May, and has inundated at least 160 hectares (395 acres) of land, including four villages, ricefields and sugar cane plantations. In some areas the sludge is six meters (20 feet) deep. Officials from BP Migas, Indonesia's upstream oil and gas regulating body, asked the environment ministry for permission to channel the mudflow in East Java province into the ocean. However, Environmental Minister Rachmat Witoelar has refused the proposal. Lapindo, the company operating the well, is linked to a business group owned by Welfare Minister Aburizal Bakrie's family. It has agreed to compensate the more than 7,600 people displaced by the sludge. Elfian Effendi, executive director of environmental group Greenomics Indonesia, said that Lapindo could go bankrupt if it is held responsible for the losses, the Jakarta Post reported earlier this week. "According to our economic calculations, Lapindo should prepare IDR33.27 trillion in compensations funds," Mr. Effendi was quoted as saying. That amount took into account costs such as restoring the affected area, repairing ecological damage and compensating businesses for losses. Police have named three company executives as suspects for the incident, which they have classified as a crime. * * * Lapindo Brantas, Inc. -- http://www.lapindo-brantas.com/-- is a subsidairy of PT Energi Mega Persada Tbk, where PT Medco Energi Internasional Tbk has 30% shares and Australia's Santos has 20% shares in the Brantas production sharing contract. NORTEL NETWORKS: Sets Aside US$28M Reserve to Clean up Sites ------------------------------------------------------------ Nortel Networks Ltd. has reserved US$28 million, as of March 31, 2006, for environmental matters. The company has remedial activities under way at 14 sites, which are either currently or previously owned or occupied facilities. The company is also listed as a potentially responsible party under the United States Comprehensive Environmental Response, Compensation and Liability Act at four Superfund sites in the United States, at two of which, the company is considered a de minimis potentially responsible party. About Nortel Networks Headquartered in Ontario, Canada, Nortel Networks Corporation (NYSE/TSX: NT) -- http://www.nortel.com/-- is a recognized leader in delivering communications capabilities that enhance the human experience, ignite and power global commerce, and secure and protect the world's most critical information. Serving both service provider and enterprise customers, Nortel delivers innovative technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. Nortel does business in more than 150 countries including Indonesia, Australia, China, Hong Kong, India, Philippines, Singapore, Taiwan and Thailand. * * * Dominion Bond Rating Service confirmed the long-term ratings of Nortel Networks Capital Corporation, Nortel Networks Corporation, and Nortel Networks Limited at B (low) along with the preferred share ratings of Nortel Networks Limited at Pfd-5 (low). All trends are Stable. DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt; Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5 (low) Stb Class A, Non-Cumulative Redeemable Preferred Shares. Additionally, Moody's Investors Service affirmed the B3 corporate family rating of Nortel; assigned a B3 rating to the proposed USUS$2billion senior note issue; downgraded the USUS$200 million 6.875% Senior Notes due 2023 and revised the outlook to stable from negative. Standard & Poor's also affirmed its 'B-' long-term and 'B-2' short-term corporate credit ratings on the company, and assigned its 'B-' senior unsecured debt rating to the company's proposed USUS$2 billion notes. The outlook is stable. NORTEL NETWORKS: Forms Strategic Alliance with Microsoft Corp. -------------------------------------------------------------- The convergence of the communications and IT industries took a significant step forward as Microsoft Corp. and Nortel Networks Corp. reported a strategic alliance based on a shared vision for unified communications. By engaging the companies at the technology, marketing and business levels, the alliance will allow both companies to drive new growth opportunities and has the potential to ultimately transform businesses communications, reducing costs and complexity and improving productivity for customers. By combining Nortel's network quality and reliability with Microsoft(R) software's ease of use, the alliance will accelerate the availability of unified communications -- an industry concept that uses advanced technologies to break down today's device- and network-centric silos of communication (such as e-mail, instant messaging, telephony and multimedia conferencing) and makes it easy and efficient for workers to reach colleagues, partners and customers with the devices and applications they use most. Taking a decisive step further, Nortel and Microsoft will transition traditional business phone systems into software, with a Microsoft unified communications software platform and Nortel software products to provide further advanced telephony functionality. This software-centric approach will provide the easiest transition path for businesses, helping enable them to reduce the total cost of ownership and better protect current and future investments. It will also more quickly enable the creation of new, innovative applications. "Nortel and Microsoft have each led fundamental transformations in their own market -- Nortel's digital innovation and Microsoft's software on every desktop," said Mike Zafirovski, president and CEO of Nortel. "By combining our unique strengths, Microsoft and Nortel will accelerate the delivery of unified communications -- delivering to our customers a higher-quality user experience, with greater reliability and lower total cost of ownership. That's where we can make a real difference." "We are investing together because the communications industry is at an inflection point," said Steve Ballmer, CEO of Microsoft. "We will have deep collaboration in product development with Nortel, allowing us to rapidly deliver high- quality, highly reliable solutions that will support mission- critical communications. The opportunity for our customers is fantastic. We will enable them to realize tremendous economic and business benefits from unified communications." "This is a gutsy play for Nortel -- accelerating the move of our voice technology into software and working with the world's software leader as part of our broader business strategy to transform the company into a software and services leader," Mr. Zafirovski said. "From this transaction, we believe we can capture well beyond US$1 billion in new revenue, ramping up with increased momentum through 2009 via professional services, voice products and applications, as well as data pull-through in the enterprise." "Unified communications will drive the next major advance in individual, team and organizational productivity in today's 24x7, always-connected and increasingly mobile work environment," said Jeff Raikes, president of the Business Division at Microsoft. "Our software-based approach puts people at the center of communications through a single identity across e-mail, voice mail, voice over Internet protocol call processing, instant messaging and video, and intuitively embeds communications capabilities into people's everyday work processes, including the Microsoft Office system and third-party software applications." Components of the Agreement 1) Strategic alliance * The companies will enter into a four-year alliance agreement, with provisions for its extension. * Nortel will be Microsoft's strategic partner for advanced unified communications solutions and systems integration. * The two companies will form the Innovative Communications Alliance -- http://www.innovativecommunicationsalliance.com/ -- as a go-to-market vehicle. * Microsoft and Nortel will deploy the other's technologies in their enterprise networks. 2) Solutions and systems integration * Nortel becomes a strategic systems integration partner for the advanced unified communications solution. * Nortel believes it can capture substantial new revenue through service offerings such as convergence planning, integration, optimization, monitoring and managed services. 3) Joint product development * Nortel and Microsoft will form joint teams to collaborate on product development that spans enterprise, mobile and wireline carrier solutions. * The two companies will cross-license intellectual property. * Nortel and Microsoft will engage in early-stage integration and testing. * Nortel will deliver solutions that complement Microsoft's unified communications platform, including enterprise contact center applications, mission-critical telephony functions, advanced mobility capabilities and data networking infrastructure. 4) Go-to-market initiatives * Microsoft and Nortel will jointly sell the advanced unified communications solution and integration services. The plan is to develop a training and incentive program for the companies' sales teams. * Both companies will invest substantial resources in marketing, business development and delivery. * Microsoft and Nortel will build a joint channel ecosystem using both companies' systems integrator, reseller, and service provider relationships. * The two companies will develop a series of compelling solutions for a range of customers, including small and medium-sized business, large corporations and service providers. About Microsoft Headquartered in Redmond, Washington, Microsoft Corp. (Nasdaq: MSFT) provides software, services and solutions that help people and businesses realize their full potential. About Nortel Networks Headquartered in Ontario, Canada, Nortel Networks Corporation (NYSE/TSX: NT) -- http://www.nortel.com/-- is a recognized leader in delivering communications capabilities that enhance the human experience, ignite and power global commerce, and secure and protect the world's most critical information. Serving both service provider and enterprise customers, Nortel delivers innovative technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. Nortel does business in more than 150 countries including Indonesia, Australia, China, Hong Kong, India, Philippines, Singapore, Taiwan and Thailand. * * * Dominion Bond Rating Service confirmed the long-term ratings of Nortel Networks Capital Corporation, Nortel Networks Corporation, and Nortel Networks Limited at B (low) along with the preferred share ratings of Nortel Networks Limited at Pfd-5 (low). All trends are Stable. DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt; Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5 (low) Stb Class A, Non-Cumulative Redeemable Preferred Shares. Additionally, Moody's Investors Service affirmed the B3 corporate family rating of Nortel; assigned a B3 rating to the proposed USUS$2billion senior note issue; downgraded the USUS$200 million 6.875% Senior Notes due 2023 and revised the outlook to stable from negative. Standard & Poor's also affirmed its 'B-' long-term and 'B-2' short-term corporate credit ratings on the company, and assigned its 'B-' senior unsecured debt rating to the company's proposed USUS$2 billion notes. The outlook is stable. NORTEL NETWORKS: Declares Dividends for Class A Pref. Shares ------------------------------------------------------------ The board of directors of Nortel Networks Limited declared a dividend for the months of August and September on each of the outstanding Cumulative Redeemable Class A Preferred Shares Series 5 and the outstanding Non-cumulative Redeemable Class A Preferred Shares Series 7. The dividend amount for each series is calculated in accordance with the terms and conditions applicable to each respective series, as set out in the company's articles. The annual dividend rate for each series floats in relation to changes in the average of the prime rate of Royal Bank of Canada and The Toronto-Dominion Bank during the preceding month and is adjusted upwards or downwards on a monthly basis by an adjustment factor which is based on the weighted average daily trading price of each of the series for the preceding month, respectively. The maximum monthly adjustment for changes in the weighted average daily trading price of each of the series will be plus or minus 4.0% of Prime. The annual floating dividend rate applicable for a month will in no event be less than 50% of Prime or greater than Prime. The dividend on each series in respect of the month of August is payable on Sept. 12, 2006, to shareholders of record of such series at the close of business on Aug. 31, 2006. The dividend on each series in respect of the month of September is payable on Oct. 12, 2006, to shareholders of record of such series at the close of business on Sept. 29, 2006. About Nortel Networks Headquartered in Ontario, Canada, Nortel Networks Corporation (NYSE/TSX: NT) -- http://www.nortel.com/-- is a recognized leader in delivering communications capabilities that enhance the human experience, ignite and power global commerce, and secure and protect the world's most critical information. Serving both service provider and enterprise customers, Nortel delivers innovative technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. Nortel does business in more than 150 countries including Indonesia, Australia, China, Hong Kong, India, Philippines, Singapore, Taiwan and Thailand. * * * Dominion Bond Rating Service confirmed the long-term ratings of Nortel Networks Capital Corporation, Nortel Networks Corporation, and Nortel Networks Limited at B (low) along with the preferred share ratings of Nortel Networks Limited at Pfd-5 (low). All trends are Stable. DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt; Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5 (low) Stb Class A, Non-Cumulative Redeemable Preferred Shares. Additionally, Moody's Investors Service affirmed the B3 corporate family rating of Nortel; assigned a B3 rating to the proposed USUS$2billion senior note issue; downgraded the USUS$200 million 6.875% Senior Notes due 2023 and revised the outlook to stable from negative. Standard & Poor's also affirmed its 'B-' long-term and 'B-2' short-term corporate credit ratings on the company, and assigned its 'B-' senior unsecured debt rating to the company's proposed USUS$2 billion notes. The outlook is stable. PERUSAHAAN GAS: Gets ADB Support in Getting Loans ------------------------------------------------- PT Perusahaan Gas Negara will get backing from the Asian Development Bank, Easy Bourse reports. The ADB has said that it will support loans to Perusahaan Gas provided by other international financial institutions and commercial bank. ADB further said that it will provide Indonesia a US$75 million loan to aid the construction of a natural gas pipeline from South Sumatra province to West Java province. The planned 661-kilometer pipeline is one of two that state- owned Perusahaan Gas Negara is building to alleviate a natural gas shortage in West Java province, said the statement, without elaborating on the timetable for its construction. The ADB is part of a consortium led by BP PLC that signed an agreement earlier in August 2006 with international lenders including Japan Bank for International Cooperation, BNP Paribas S.A. and Standard Chartered for 15-year loans totaling US$2.61 billion for the Tangguh liquefied natural gas facility. The ADB loans reflect the multilateral lender's mandate to support Indonesia's economic growth through the development of environmentally friendly energy projects. 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. The above 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, 2006: POLYSINDO EKA: Posts Turnaround of IDR128B on FOREX Gains --------------------------------------------------------- PT Polysindo Eka Perkasa Tbk posted a net income of IDR127.98 billion for the first half of 2006, a turnaround from a net loss of IDR832.78 billion a year ago, according to the company's financials. Net revenues fell slightly from IDR1.46 trillion for the half- year period ended June 30, 2005, to IDR1.43 trillion for the same period ended June 30, 2006. The company reported a gross loss of IDR201.52 billion after recording a cost of sales amounting to IDR1.63 trillion for the first half of 2006. The company, however, recognized a gain from foreign exchange of IDR421.74 billion in the 2006 first half against the previous corresponding period's loss of IDR576.36 billion, bringing the total other income account to IDR421.74 billion. The company, however, still maintains a IDR5.90-trillion equity deficit, with total assets amounting to IDR6.02-billion as of June 30, 2006. The company's financials submitted to the Surubaya Stock Exchange includes these financial highlights: For the half year ended 06/30/2006 06/30/2005 ---------- ---------- Revenues IDR1,431,684,872,708 IDR1,486,878,590,006 Cost of Sales 1,633,205,789,850 1,639,397,447,456 Gross Loss 201,520,917,142 152,518,857,450 Operating Expenses 111,673,601,495 119,708,184,754 Loss from Operations 313,194,518,637 272,227,042,204 Other Income/(Exp.) 421,741,862,172 (576,360,655,538) Net Income 127,978,377,459 (832,776,734,423) As of As of 06/30/2006 06/30/2005 ---------- ---------- Current Assets IDR1,181,879,272,497 IDR874,138,874,302 Total Assets 6,017,597,126,949 6,238,730,634,964 Current Liabilities 11,105,630,599,239 17,452,988,743,068 Non-Current Liabilities 811,332,603,133 461,909,742,208 Total Equity (5,899,366,075,423) (11,676,167,850,312) About Polysindo Eka Headquartered in Jakarta, Indonesia, PT Polysindo Eka Perkasa Tbk -- http://www.polysindo.com/-- is a manufacturing company engaged in the production of chemical products, including manufacturing of synthetic fibers and other textile products. The company markets the products to both domestic and international markets such as Europe, North America, the Middle East and others in Asia. Its subsidiaries, which are engaged in the production and trading of textile products and financial services, include PT Texmaco Jaya Tbk, Polysindo International Finance Company B.V. and Polysindo (Mauritius) Ltd. * * * A Troubled Company Reporter - Asia Pacific report on June 26, 2006, stated that stakeholders of Polysindo Eka approved on June 21, 2006, the company's proposal to convert a IDR14.07-trillion debt into shares. Creditors would now own 60% of Polysindo after the debt-to-equity swap, 30% of which would go to creditor Damiano Investment BV, which had just injected IDR375.11 billion into the Company to maintain operations. TELKOMSEL INDONESIA: Fitch Upgrades Long-Term Rating to BB ---------------------------------------------------------- Fitch Ratings, on August 18, 2006, upgraded PT Telekomunikasi Selular's long-term foreign currency issuer default rating to 'BB' from 'BB-'. The outlook is stable. At the same time, Fitch has affirmed Telkomsel's Long-term local currency IDR of 'BBB-' with a stable outlook. These rating actions follow the announcement by Fitch that it has upgraded the country ceiling on the Republic of Indonesia to 'BB' from 'BB-'. Telkomsel's foreign currency IDR rating remains constrained by the sovereign country ceiling. On the other hand, Telkomsel's Long-term local currency IDR is not constrained, with the IDR already exceeding the Republic of Indonesia's local currency IDR of 'BB-' with a stable outlook. 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. TELKOMSEL INDONESIA: Posts 41% Increase in First-Half Net Income ---------------------------------------------------------------- PT Telekomunikasi Selular Indonesia posted a net income of IDR5.33 billion for the six months ending June 30, 2006, a 41% increase from the figure reported a year ago, according to the company's earnings release. For the first half of 2006, Telkomsel was able to sustain the high growth momentum. The gross operating revenues grew by 38% YoY from IDR11.53 trillion in the first half of 2005 to IDR15.93 trillion in first half of this year, while net operating revenues increased by 43% YoY from IDR9.32 trillion to IDR13.31 trillion. Telkomsel generated a net income of IDR5.33 trillion in the 2006 first-half, an increase of 41% compared to the first half 2005. EBITDA for the 2006 first-half reached IDR9.62 trillion, a 43% increase compared to IDR6.71 trillion in the 2005 first-half. EBITDA margin over gross revenues increased from 58% to 60% and EBITDA margin over net revenues stood at 72%. The growth in operating revenues was driven by prepaid products, which contributed 88% of total gross revenues growth. Prepaid revenues accounted for 72% of total gross revenues. * Gross Postpaid revenues grew 9% to IDR2.40 trillion due to the 10% postpaid customer base growth. * Gross Prepaid revenues rose by 51% to IDR11.39 trillion due to the 38% prepaid customer growth and increase in prepaid ARPU. * Gross International roaming revenues increased slightly to IDR0.40 trillion, due to increase in revenues from Telkomsel's roamers combined with decrease in revenues from foreign visitors. * Gross Interconnection revenues increase of 25% to IDR1.74 trillion was mainly from interconnection with Telkom, which contributed 72% of interconnection revenues. * Discounts increased 9% to IDR1.03 trillion. * Interconnection/International roaming/Data provider charges increased 26% to IDR1.59 trillion mainly because of increase in interconnect payment, which accounted for 75% of these charges. Operating Expenses (including depreciation) increased 45% YoY from IDR3.90 trillion in the first half of 2005 to IDR5.67 trillion in the first half of 2006, mainly because of increase in operation & maintenance and depreciation expenses. * Personnel expenses grew 67% YoY to IDR0.48 trillion, due to a salary adjustment in 4Q05, growth in number of employees (by 11%) and higher employee incentives due to strong sales and financial performance in 1H06. * Operation & maintenance expenses rose 48% to IDR1.90 trillion mainly resulting from the network infrastructure growth (overall network capacity increased by 36%) that affected transmission costs and repair & maintenance costs of network equipments. Increase in gasoline and power prices since the second half last year also contributed to the growth in operation & maintenance expenses. * General & administration expenses increased 28% YoY to IDR0.36 trillion on all G&A expense components, mainly on rental and travel & transportation expenses. * Marketing & selling expenses grew 49% YoY to IDR0.30 trillion, which was mainly because of higher advertising and sales support costs. * Revenue dependent and other operating costs increased 18% to IDR0.67 trillion, mainly from concession and USO fees. * Depreciation expenses increased 52% to IDR1.97 trillion due to network infrastructures growth. Other income/(expenses) increased from net expenses of IDR6 billion to a net income of IDR9 billion, mainly because of increase in foreign exchange gain due to the appreciation of the rupiah combined with tax late payment/penalty. In the second quarter 2006 a tax expense of IDR83 billion was booked resulting from a tax audit, however, Telkomsel will file an objection letter. Non-voice/data revenues (gross) in 1H06 increased 44% to IDR3.74 trillion. It contributed 24% of gross revenues or 26% of net revenues in 1H06. Although, still dominated by SMS revenues, the revenues from other mobile data services are constantly growing, particularly on value added services such as content download and ring-back tone, now contributing around 5% of gross revenues. Customer Base Telkomsel added five million customers in 1H06. At the end of 1H06, Telkomsel customer base reached 29.27 million, consisting of 1.57 million postpaid customers representing 5% of total customers and 27.70 million prepaid customers representing 95% of total customers. It grew 7.72 million or 36% compared to 1H05, mainly driven by the prepaid products. Average Revenue Per User ARPU is derived from monthly recurring customer usage. ARPU of postpaid customers decreased 6% YoY from IDR294,000 to IDR277,000. However, ARPU of prepaid customers increased both for simPATI and Kartu As, which was attributable to the introduction of new tariff-schemes for on-net traffic and network quality improvements. ARPU for simPATI increased 4% YoY, from IDR80K to IDR83K and Kartu As increased 19% YoY from IDR42K to IDR50K. As a result, blended ARPU only slightly declined (2%) to IDR85,000. As of June 30, 2006, Telkomsel's total assets were at IDR31.04 trillion, whereas total liabilities were at IDR13.82 trillion, and total equities amount to IDR17.22 trillion. As of June 30, 2006, Telkomsel's current assets increased 14% from last year to IDR5.13 trillion, mainly attributable to higher cash balance and higher prepayments for network space rental. Property, plant and equipment increased 41% to IDR24.69 trillion as a result of significant growth in network capacity and coverage enhancement. Other assets increased more than four times to IDR1.21 trillion due to recognition of intangible assets (for 3G license) and equipment taken out from operation (previously recognized as part of fixed assets). Current liabilities grew 87% to IDR11.78 trillion as of June 30, 2006, because of an increase in accrued liabilities and dividend payable. Non-current liabilities increased 35% to IDR2.04 trillion, mainly because of new loan facilities signed in March 2006. The outstanding amount of these loan facilities as of the end of June 2006 was IDR700 billion. As of June 30, 2006 the outstanding balance of the ECA loan facilities totaled IDR653 billion (IDR336 billion was recorded under long-term liabilities and IDR317 billion recorded as current liabilities). 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 states that Standard & Poor's Ratings Services had on December 12, 2005 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 says that Fitch Ratings gives Telekomunikasi Selular a BB long term issuer default rating, effective on August 18, 2006. The outlook is stable. Additionally Fitch Ratings gave the company a BB+ local currency rating and a BB- foreign currency rating. Both ratings carry a positive outlook. ========= J A P A N ========= BLOUNT INT: Equity Deficit Narrows to US$122.81 Mil. at June 30 --------------------------------------------------------------- Blount International, Inc., disclosed financial results for the second quarter ended June 30, 2006. Sales from continuing operations for the quarter were US$165.1 million compared to US$177.6 million in last year's second quarter. Operating income from continuing operations was US$24.0 million compared to US$29.0 million in the second quarter of 2005. Sales and operating income from continuing operations exclude the results of the Lawnmower segment, which is now classified as a discontinued operation. Income from continuing operations in this year's second quarter was US$10.3 million, compared to US$15.7 million in the comparable period last year. The results of the second quarter as compared to last year's were adversely impacted by foreign currency exchange rates and an increase in the Company's effective book income tax rate from 18.3% in 2005 to 34.7% in 2006. Lower shipments of timber harvesting equipment affected the financial results as compared to last year's second quarter. This year's second quarter net income was positively impacted by US$1.0 million from an insurance claim. Commenting on the second quarter, James S. Osterman, Chairman and Chief Executive Officer, stated: "Our sales performance for the second quarter was mixed. Our largest business, the OutdoorProducts segment, continued to post sales in line with therecord levels achieved in 2005, but sales of the Industrial and Power Equipment segment were impacted by softer market conditions as compared to last year's second quarter. Although logging activity in North America remained stable, logging contractors postponed equipment purchases, in part due to their rising operating costs. Looking ahead to the second half of 2006, we are anticipating similar market conditions to those experienced in the first half. Sales of the Outdoor Products segment should continue to be equal to or slightly higher than last year's second half sales. Sales for the Industrial and Power Equipment segment are expected to be below last year's for the remainder of 2006 given the current North American market conditions. We expect the softness in North America will be somewhat offset by continued expansion into international markets through our agreements with Caterpillar. In the second quarter, we purchased the technology for the design and manufacture of a line of harvester heads for the international markets to broaden cutting capability on our timber harvesting equipment. For the full year, we expect sales from continuing operations to range between US$670 million and US$690 million. Operating income from continuing operations is estimated to range between US$97 million and US$101 million. The operating income range includes a non-recurring second half expense of approximately US$3.7 million in conjunction with the redesign of the Company's pension plans to reduce future costs. The operating income range also includes US$3.0 million in stock- based compensation expense." Segment Results The Outdoor Products segment reported second quarter sales of US$114.7 million compared to US$114.1 million in last year's second quarter. Sales order backlog increased to US$75.7 million in the second quarter from US$70.3 million in this year's first quarter and compares to US$82.6 million in last year's second quarter. Geographically, sales were strongest in the domestic markets, with year-over-year sales growth of 7% achieved in the second quarter. Sales to original equipment manufacturers increased 5% from last year's second quarter. Segment contribution to operating income was US$23.1 million in this year's second quarter compared to US$26.8 million in last year's second quarter. The year-over-year decrease in segment contribution to operating income includes a US$2.4 million negative impact from movement in foreign currency exchange rates. The Industrial and Power Equipment segment's second quarter sales were US$50.6 million, up slightly from the first quarter of this year, but below last year's second quarter amount of US$63.7 million. Segment contribution to operating income was US$4.7 million compared to US$6.4 million in last year's second quarter. A decline in shipments of timber-harvesting equipment was the primary reason for both the sales and contribution declines from last year's second quarter. Sales of Caterpillar branded product increased 25% from this year's first quarter but were below last year's second quarter, consistent with the sales trends of Blount branded products. The weaker demand and associated orders for our timber-harvesting equipment within North America reflect customers' concerns about the near term outlook for logging activity and higher operating costs. Backlog for this segment as of June 30 was US$37.0 million compared to US$38.0 million in this year's first quarter and US$74.4 million in last year's second quarter. Discontinued Operations On July 27, 2006, the Company completed the sale of certain assets and liabilities of its Lawnmower segment to Husqvarna. The sale resulted in preliminary gross proceeds of US$33.9 million, which the Company utilized to reduce long term debt to US$374 million as of July 27, 2006. As a result of this sale, the Lawnmower segment has been reclassified as a discontinued operation for all periods presented. In the second quarter, net loss from discontinued operations was US$0.9 million compared to net income of US$1.4 million last year. This year's net loss includes US$1.5 million of after-tax expense for employee termination costs. In the third quarter of this year, the Company estimates that it will record net income from discontinued operations to reflect the gain on the sale of assets and operating activity for the period of ownership. Pension Plan Revisions The Company has announced a pension plan redesign for existing employees effective Jan. 1, 2007. Upon implementation, the redesign will freeze benefits earned under the Company's defined benefit plan and increase contributions paid to the Company's 401(k) defined contribution plan. This redesign will result in an estimated reduction to the Company's pension expense between US$16 million and US$23 million over the next five years. In the second half of 2006, the Company will record a non-recurring expense of approximately US$3.7 million in conjunction with the redesign. A full-text copy of the Quarterly Report in Form 10-Q filed with the US Securities and Exchange Commission is available for free at http://ResearchArchives.com/t/s?fdb About Blount International Blount International Inc. (NYSE:BLT) -- http://www.blount.com/ -- is a diversified international company operating in three principal business segments: Outdoor Products, Industrial and Power Equipment and Lawnmower. Blount sells its products in more than 100 countries around the world. Blount has one of its manufacturing locations in Fuzhou, China, as well as, distribution center in Yokohama, Japan. As of June 30, 2006, Blount International's equity deficit narrowed to US$122.81 million from a US$145.18 million deficit at Dec. 31, 2005. JAPAN AIRLINES: Will Keep Hotel Nikko Saipan -------------------------------------------- Despite its decision to abandon the Saipan route, Japan Airlines is not selling its 18-year-old hotel in Saipan, Marianas Variety reports. Hotel Nikko Saipan's general manager and executive vice president Hideo Nishigori dismissed rumors that Japan Airlines is selling the hotel after it scrapped Saipan from its list of destinations, Marianas Variety relates. Mr. Nishigori said that like other hotels, Nikko is struggling with low occupancy rates due to the downturn in tourist arrivals in the Northern Marianas but he added that Japan Airlines is keeping the hotel, according to Saipan Tribune. Hotel Nikko Saipan has 313 rooms but only about 55% are occupied. Mr. Nishigori said the Northern Marianas remains attractive to Japanese tourists mainly due to its pristine environment. But he added that tourists still want to see more shopping malls, entertainment centers and sports arenas, which is currently lacking in Saipan, Marianas Variety relates. Japan Airlines withdrew its Saipan route in October 2005 mainly due to the declining volume of passenger traffic, Saipan Tribune reveals. About Japan Airlines Tokyo-based Japan Airlines International Company, Limited -- http://www.jal.com/en/-- was created as a result of the merger of Japan Airlines and Japan Air Systems to boost domestic coverage. As of March 31, 2006, JAL's debt amounted to JPY1.93 trillion, whereas shareholders' equity stood at JPY148.1 billion. The Troubled Company Reporter - Asia Pacific stated on May 12, 2006, that JAL posted a consolidated net loss of JPY47.24 billion for the business year 2005 ended March 31, 2006, due to safety-related incidents in 2005 that caused passengers to shift to its rival All Nippon Airways, and an increase in aviation fuel costs. * * * Fitch Ratings Tokyo analyst Satoru Aoyama said that the Company's debt obligations and expenses for new aircraft have placed it in an unfavorable financial position. Fitch assigned a BB- rating on the Company, which is three notches lower than investment grade. Moody's Investors Service gave Ba3 senior unsecured and issuer ratings for Japan Airlines International Co., Ltd., as well as its Ba3 issuer rating for Japan Airlines Domestic Co., Ltd. On July 20, 2006, Standard & Poor's Ratings Services had affirmed its B+ long-term corporate credit and senior unsecured debt rating on the Company. ========= K O R E A ========= ACTUANT CORP: Buys Actown-Electrocoil Stock for US$24 Million ------------------------------------------------------------- Actuant Corporation completed the purchase of all of the outstanding stock of Actown-Electrocoil, Inc., for approximately US$24 million in cash. Funding was provided from borrowings under Actuant's revolving credit facility. Actown will be a part of Actuant's Tools & Supplies Segment. "Actown is a great addition to our Professional Electric product line, which also includes Amveco and Acme Transformer," Mark Goldstein, Executive Vice President of Actuant and Tools & Supplies Leader, stated. "Actown's focus on the OEM customer base within the magnetics and sign markets is an excellent complement to our existing businesses. Its engineering expertise, long-standing customer relationships and global footprint allow us to offer the market a broader range of products and services. We are excited that Dave Weisberg, Steve Duffy and the rest of the current Actown management team will continue to play an important role in the Company's future." About Actuant Corp Headquartered in Glendale, Wisconsin, Actuant Corp. (NYSE:ATU) -- http://www.actuant.com/-- is a diversified industrial company with operations in more than 30 countries, including Australia, China, Hong Kong, India, Japan, Taiwan and South Korea. The Actuant businesses are market leaders in highly engineered position and motion control systems and branded hydraulic and electrical tools and supplies. Since its creation through a spin-off in 2000, Actuant has grown its sales from US$482 million to over US$1 billion and its market capitalization from US$113 million to over US$1.5 billion. The company employs a workforce of approximately 6,000 worldwide. Actuant Corporation trades on the NYSE under the symbol ATU. Actuant Corp.'s 2% Convertible Senior Subordinated Debentures due 2023 carry Standard & Poor's B+ rating. ARROW ELECTRONICS: Earns US$92.8 Million in 2006 Second Quarter --------------------------------------------------------------- Arrow Electronics, Inc., reported second quarter 2006 net income of US$92.8 million on sales of US$3.44 billion, compared with net income of US$58.4 million on sales of US$2.77 billion in the second quarter of 2005. The 24% increase in sales year-over- year included 14% organic growth and 10% growth as a result of acquisitions. Operating income in the second quarter of 2006 and 2005 was US$163.1 million and US$118.8 million, respectively. Arrow's net income for the first six months of 2006 was US$174.3 million on sales of US$6.63 billion, compared with net income of US$115.6 million on sales of US$5.49 billion in the first six months of 2005. "We once again had an excellent quarter as our ongoing initiatives, coupled with favorable conditions in the marketplace, led to record second quarter sales and earnings in excess of our expectations. We also delivered our highest second quarter return on invested capital in ten years," said William E. Mitchell, Chairman, President and Chief Executive Officer. "We continue on our path of consistent execution with 14 consecutive quarters of year-over-year sales growth, and we are very proud of our progress in driving operational excellence into all parts of our business." Worldwide components sales of US$2.76 billion increased 6% sequentially and 27% over last year, while operating income increased 11% sequentially and 42% over last year. Sales on a pro forma basis, including Ultra Source Technology Corp. in the second quarter of 2005, increased 20% year-over-year. "Each of our components businesses around the world achieved sequential growth and impressive year-over-year increases in sales and operating income," stated Mr. Mitchell. "In North America, sales reached their highest level since the first quarter of 2001, while we drove operating expenses as a percentage of sales down 150 basis points year-over-year. Sales in Europe reached all-time highs while improving operating income almost 60% year- over-year, and Asia/Pacific sales broke records again with significant improvements in profitability," added Mr. Mitchell. Worldwide computer products sales increased 17% sequentially in this seasonally strong quarter, and increased 14% year-over- year. Sales for the Enterprise Computing Solutions business on a pro forma basis, including DNSint.com AG in the second quarter of 2005, decreased 2% year-over-year. "Our enterprise computing business continued to demonstrate solid profitability and returns. Growth was driven by strong performance in storage, industry standard servers, and our European enterprise business, offset by weakness in the broad proprietary server market and software in North America," said Mr. Mitchell. The company's results for the second quarter of 2006 and 2005 include these items that impact their comparability: -- During the second quarter of 2006, the company recorded US$3.1 million of restructuring charges. Included in the restructuring charges is approximately US$2.4 million related to previously announced actions the company has committed to take in an ongoing effort to improve its operating efficiencies. These previously announced actions are expected to generate annual cost savings of approximately US$6 million beginning in 2007. The estimated restructuring charges to be recorded over the next several quarters associated with these actions total approximately US$1 million. -- During the second quarter of 2005, the company recorded restructuring charges related to additional actions to better optimize the use of its mainframe, reduce real estate costs, be more efficient in its distribution centers, and to be more productive in the amount of US$4.8 million. -- During the second quarter of 2005, the company repurchased, through a series of transactions, US$80.8 million accreted value of its zero coupon convertible debentures due in 2021, which could have been put to the company in February 2006. The related loss on the repurchase, including the premium paid and the write-off of related deferred financing costs, aggregated US$1.7 million. -- At July 1, 2005, the company determined that an other- than-temporary decline in the fair value of an investment occurred, and, accordingly, during the second quarter of 2005, the company recorded a loss on the write-down of an investment of US$3 million. "We expect the components market to return to more normal, steady conditions in the third quarter after having experienced an uptick in demand over the last few quarters. Based upon the information known to us today, we anticipate traditional seasonality for our businesses next quarter, as markets remain rational and disciplined in all of the regions in which we operate. In Asia/Pacific, we expect to see an uptick in demand in preparation for the typical holiday build. Both Europe, because of its extended holiday period, and Enterprise Computing Solutions, due to typical third quarter seasonality, are expected to see a drop off in activity levels. In North American components, fewer shipping days may cause a corresponding drop in sales," said Paul J. Reilly, Senior Vice President and Chief Financial Officer. "We believe this will result in sales between US$3.275 and US$3.425 billion for the upcoming quarter. We anticipate worldwide components sales between US$2.67 and US$ 2.77 billion and sales for worldwide computer products to be between US$605 and US$655 million. Earnings per share on a diluted basis, including the impact of expensing stock options in accordance with FASB Statement No. 123(R) estimated at approximately US$.02 per share, are expected to be in the range of US$.68 to US$.72, excluding any charges. Excluding the impact of restructuring and other charges, and the expensing of stock options, diluted earnings per share for the third quarter are expected to increase 35% to 42% from last year's third quarter," added Mr. Reilly. Headquartered in Melville, New York, Arrow Electronics -- http://www.arrow.com/-- is a global provider of products, services and solutions to industrial and commercial users of electronic components and computer products. Arrow serves as a supply channel partner for nearly 600 suppliers and more than 130,000 original equipment manufacturers, contract manufacturers and commercial customers through a global network of over 270 locations in 53 countries and territories. In Asia Pacific, the company operates in Australia, China, Hong Kong, India, Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand and Korea. * * * Arrow Electronics carries Fitch's 'BB+' issuer default rating. The Company's senior unsecured notes and senior unsecured bank credit facility also carry Fitch's 'BB+' rating. The rating outlook is positive AVANI INTERNATIONAL: June 30 Capital Deficit Widens to $128,775 --------------------------------------------------------------- Avani International Group Inc. filed its second quarter financial statements for the three months ended June 30, 2006, with the United States Securities and Exchange Commission on Aug. 11, 2006. At June 30, 2006, the Company's balance sheet showed US$1,140,878 in total assets and US$1,269,653 in total liabilities, resulting in a US$128,775 capital deficit. The Company reported a US$32,167 deficit at Dec. 31, 2005. Avani reported a US$19,026 net loss on US$84,827 of total revenues for the three months ended June 30, 2006, compared with a US$103,785 net loss on US$474,224 of total revenues for the same period in 2005. Revenues for the six months ended June 30, 2006, were US$101,093 representing a decrease of US$761,552 or 88.28% from revenues of US$853,319 for the same period in 2005. The significant decrease in revenues reflects the deterioration and ultimately the termination of the business relationship with Avani O2, as well as the de-consolidation of Avani O2 as a VIE, all of which occurred during the 2005 period. Revenues for the 2005 period also included US$9,326 in cooler rentals and sales. The Company sold its cooler rental and sales business in July 2005, and thus had no corresponding revenue for the 2006 period. Cost of revenue, which includes depreciation for the six-month period in 2006 totaled US$191,163, a decrease of US$328,740 or 63.2% from US$519,903 for the same period in 2005. Cost of revenue for the six-month period ended June 30, 2006, consisted of costs of goods sold consisting of US$142,950 in bottled water, supplies, coolers, and related equipment, and delivery costs (a decrease of US$288,587 or 66.9% from US$431,537 for the prior period) and US$48,366 in depreciation (a decrease of US$40,153 or 45.4% from US$88,366 for the same period in prior year). The decrease in cost of goods sold for the 2006 period compared with the prior period is due mainly to lower material and labor costs associated with the reduced production levels. The reduction in depreciation for the 2006 period is due to the write off of the Malaysian equipment held by Avani O2 in July 2005. Gross loss for the six-month period ended June 30, 2006, was US$90,070, a decrease of US$252,672 or 126% from gross profit of US$342,742 for the same period in 2005. Operating expenses, which includes marketing expenses, and general and administrative expenses for the six-month period ended June 30, 2006, totaled US$24,750, a decrease of US$1,535 or 5.8% from US$26,285 for the same period in 2005. General and administrative costs were US$284,172 in 2006, a decrease of US$91,650 or 24.45% from US$375,822 in the prior period. The decrease is due principally to reduced employees and payroll, which resulted from sale of 5-gallon business. Marketing expenses totaled US$26,285 for the six-month period in 2006 representing a decrease of US$1,535 or 5.8% from US$26,285 for the prior period. The relatively constant marketing expenses reflect the Company's decision in the fourth quarter of 2004 to reduce overall international marketing expenses, particularly in Malaysia. During 2005, the Company wrote off a receivable from Avani O2 in the amount of US$1,240,811. There was no write off for the 2006 period. The Company experienced a foreign exchange loss of US$32,386 in 2006 compared with a gain of US$7,202 in 2005 due to a reduction in the volume of currency exchange transactions and limited fluctuation of the exchange rates between U.S. currency and Canadian currency compared to the same period of prior year. For the 2006 period, the Company experienced a gain in the amount of US$252,230 on the sale of its real estate assets. Loss from operations for the 2006 period is US$179,148 compared with a loss of US$1,292,974 for the comparable period 2005. During the 2006 period, the Company recorded interest on debts payable of US$3,514 compared with US$3,238 for the 2005 period. Miscellaneous income was $0 in 2006 compared with US$2,278 in 2005, which principally represents taxes paid by Avani O2. Comprehensive loss for the 2006 period was US$121,608 compared with a loss of US$311,139 for the same period in 2005. Liquidity and Capital Resources As of June 30, 2006, the Company had working capital of US$78,882. Working capital deficit as of Dec. 31, 2005, was US$689,799. The increase in working capital is principally a result of the gain experienced on the sale of the Company's real estate, partially offset by the consolidated loss of the Company for the first fiscal quarter of 2006. Property, plant and equipment, net of accumulated depreciation, totaled US$52,878 on June 30, 2006. Property, plant and equipment, net of accumulated depreciation, totaled US$916,246 on Dec. 31, 2005. The Company has entered into an agreement to sell its real estate located in Canada and intend to re-locate is water manufacturing business to Malaysia. The Company intends to use the proceeds from the sale of its real estate to fund re- location efforts, and to fund in initial operating capital. Sale of Assets On June 15, 2006, the Company sold its real property including land, building and building improvements, for proceeds of approximately US$1,018,895. The net book value of its real property was approximately US$766,665 on June 15, 2006, and the sale generated a gain of US$252,230. After the sale of its real property, its production of water was discontinued. Full-text copies of the Company's second quarter financials are available for free at http://ResearchArchives.com/t/s?1071 Going Concern Doubt As reported in the Troubled Company Reporter on April 26, 2006, Jeffrey Tsang & Co. in Hong Kong raised substantial doubt about Avani International Group Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2005. The auditors pointed to the company's recurring losses from operations. About Avani International Group Avani International Group Inc. -- http://www.avaniwater.com/-- produces, markets, and sells purified, oxygen enriched water under the brand name Avani Water. The Company utilizes a technology, which injects oxygen into purified water. The Company sells its product in the greater Vancouver metropolitan area and internationally in the United States, Taiwan, Hong Kong, Malaysia, Japan, Australia and Korea. The company has two wholly owned subsidiaries: Avani Oxygen Water Corporation fka Avani Water Corporation, and Avani International Marketing Corporation. BURGER KING: Names Peter Robinson President of EMEA Operations -------------------------------------------------------------- Peter Robinson, previously the president of Pillsbury USA and senior vice president of General Mills Inc., has joined Burger King Corp. as president of Burger King EMEA, effective immediately. Mr. Robinson will be based in the company's EMEA headquarters in Zug, Switzerland, and will report to Burger King Corporation CEO John W. Chidsey. In this role, Robinson will be responsible for all of Burger King Corporation's business in the region, including operations, marketing and franchisee development. He will be part of the company's executive leadership team. Mr. Robinson's career spans more than 30 years in the consumer foods industry in the United States, Europe, the Middle East and Africa. "Peter is results driven and action oriented with exactly the right mix of multinational experience to lead Burger King in the region," Mr. Chidsey said. "During the past two years in EMEA, we've concentrated on improving operations and marketing and on new franchisee development. These accomplishments have set the stage for us to focus intently on improving comparable sales growth and further accelerating restaurant growth." Mr. Robinson was appointed president of Pillsbury USA following the acquisition of Pillsbury by General Mills in 2001 where he was instrumental in the successful integration of Pillsbury businesses and employees into the new General Mills. Before joining Pillsbury in 1999, Robinson was president of Frito-Lay International, responsible for Eastern Europe, the Middle East and Africa. He has also held leadership positions at Kraft General Foods. Mr. Robinson said, "Burger King has made significant strides in the past few years in Europe and the Middle East, and I'm confident we can accelerate the momentum. I am pleased to have the opportunity to work with John and the leadership team at Burger King at this exciting time in the company's history and to return to the region." Mr. Robinson replaces Steve DeSutter, who resigned from his position as president of Burger King EMEA earlier this month. Robinson is a native of the United Kingdom. He holds a degree in economics from Newcastle University in the United Kingdom. EMEA is the largest geographic area in the Burger King system outside the United States with more than 2,100 restaurants in 26 countries and territories, including the United Kingdom, Germany, Spain and the Netherlands. About Burger King The Burger King(R) system (NYSE: BKC) -- http://www.bk.com/-- operates more than 11,100 restaurants in all 50 states and in more than 65 countries and U.S. territories worldwide, including Australia, China, Hong Kong, Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand and Korea. Approximately 90% of BURGER KING restaurants are owned and operated by independent franchisees, many of them family-owned operations that have been in business for decades. Burger King Corp. operates restaurants in the Latin American, Caribbean and Mexican Region. The company's first international restaurant opened in 1963 in Puerto Rico. Since 1994, Burger King has opened more than 300 restaurants in the Latin American region, producing some of the strongest comparable store sales growth for the brand around the world. Burger King(R) restaurants in Latin America serve approximately 1,600 customers per day each, making them some of the highest volume restaurants in the system. * * * As reported in the Troubled Company Reporter on June 23, 2006, Fitch assigned initial ratings for Burger King Corp., the world's second largest fast food hamburger restaurant chain. Fitch assigned the Company its 'B+' Issuer Default Rating. Fitch also rated the Company's US$150 million revolving credit facility maturing June 2011; and US$967 million aggregate remaining term loan A and B outstandings maturing June 2011 and June 2012, respectively, at 'BB/RR2'. Fitch said that the Outlook on all Ratings is Positive. MERIDIAN CO: Auditors Raise Substantial Going Concern Doubt ----------------------------------------------------------- After auditing Meridian Co., Ltd's financial statements for the year ended December 31, 2005, Choi, Kim & Park LLP, notes that the Company's significant operating losses and working capital deficit raise substantial doubt about its ability to continue as a going concern. For the year ended December 31, 2005, Meridian, through a regulatory filing with the United States Securities and Exchange Commission, reveals that it recorded a net loss of KRW3,349,407,134 (US$3,316,245) and an accumulated deficit of KRW15,125,695,937 (US$14,975,937). For the year ended December 31, 2005, the Company achieved sales revenues of KRW1,434,519,243 (US$1,420,316), resulting in a gross margin of KRW335,324,414 (US$ 332,004), compared with sales revenues of KRW2,204,234,179 that resulted in a gross margin of KRW989,431,030 for the year ended December 31, 2004, and sales revenues of KRW3,441,119,294 that resulted in a gross margin of KRW1,950,281,610 for the year ended December 31, 2003. The Company recognizes the possibility of incurring losses for the foreseeable future. The extent of future losses will depend, in part, on the amount of growth in revenues from the Company's products. The Company expects that operating costs increase during the next several years, especially in the areas of sales and marketing, product development and general and administrative expenses as it pursues its business strategy. Thus, the Company will need to generate increased revenues faster than the rate of growth in costs to achieve profitability. To the extent that increases in its operating expenses precede or are not subsequently followed by corresponding increases in revenues, or if it is unable to adjust operating expense levels accordingly, the Company's business, results of operations and financial condition would be materially and adversely affected. There can be no assurance that the Company will sustain profitability or that its operating losses will not increase in the future. Meridian's balance sheet as of June 30, 2006, showed KRW881,400,865 of total current assets available to pay KRW3,669,846,158 of total current liabilities coming due within the next 12-month period. Moreover, the Company's June 30 balance sheet also reflected KRW955,842,216 of total assets, versus KRW8,742,288,782 of total liabilities, resulting in KRW7,786,446,566 shareholders equity deficit. Meridian relates that it has limited financial resources and will require additional cash to implement its business strategies, including cash for: (i) payment of long-term and short-term borrowings; (ii) payment of operating expenses; (iii) costs associated with bringing new products to market; (iv) continued research and development; and (v) further implementation of those business strategies. The Company anticipates raising additional capital through public or private financings, as well as through loans and other resources. There is no assurance that the necessary funds would be available to the Company on terms acceptable to it. Failure to obtain additional funding could result in a delay or an indefinite postponement in providing some or all of the Company's products to the market place, or the ability to supply sufficient product to the market place on a continual and profitable basis. Additional funds raised by the Company through the issuance of equity or convertible debt securities will cause the Company's current stockholders to experience dilution. These securities may grant rights, preferences or privileges senior to those of the Company's common stockholders. The Company does not have any contractual restrictions on the Company's ability to incur debt and, accordingly, the Company could incur significant amounts of indebtedness to finance its operations. Any indebtedness could contain covenants which would restrict the Company's operations. In February 2004, the Company received approval for a debt rescheduling plan for a total of KRW4,697,927,000 (US$4,651,413) from the Chooncheon District Court, Korea, wherein a group of creditors of the Company and a representative of the Company agreed to reschedule the payments on KRW4,697,927,000 of the Company's debt. Meridian's 2005 annual financial report is available at the U.S. SEC site at: http://www.sec.gov/Archives/edgar/data/1135174/000106299306002523/form20f.htm Headquartered at Songpa-gu, in Seoul, Korea, Meridian Co., Ltd., is engaged the research, development, manufacturing, and marketing of integrative medical devices in the healthcare industry. Integrative medicine combines both Western and Eastern expertise in order to obtain the highest quality and standard. The Company has grown substantially and has established subsidiaries in China and Los Angeles and in 2004 signed an exclusive distribution agreement with a corporation in Vancouver, B.C., Canada. The Company currently sells four different products to healthcare practitioners throughout the domestic and overseas market. These include the LipoLaser, DPA (Digital Pulse Analyzer), the Lapex-2000, the ABR-2000, and the Meridian II. QUANTUM CORP: S&P Ups Sr. Secured First-Lien Debt's Rating to B+ ---------------------------------------------------------------- Standard & Poor's Ratings Services revised its rating and recovery rating on Quantum Corp.'s proposed first-lien bank facility to 'B+' and '1' from 'B' and '3', respectively, following a recent amendment to the terms of the proposed financing of Quantum's acquisition of Advanced Digital Information Corporation. The bank loan rating, along with the '1' recovery rating, reflect Standard & Poor's expectation of full recovery of principal by first-lien creditors in the event of a payment default. The newly proposed first-lien senior secured bank facility will consist of: * a US$150 million revolving credit facility (due 2009); and * a US$225 million term loan (due 2012). Additionally, Quantum will now issue a US$125 million second- lien senior secured term loan (due 2013), which will not be rated. Furthermore, an accelerated maturity clause has been added to the terms of the credit facilities, such that the failure to either refinance or convert existing 4.375% convertible subordinated notes prior to January 1, 2010, would accelerate maturities of the first- and second-lien facilities to April 2, 2010, and May 2, 2010, respectively. Scheduled amortization also was amended such that Quantum will be required to repay US$50 million of the first-lien term loan by September 2008 in equal quarterly installments beginning in December 2006. Thereafter, annual amortization will be US$2.25 million, paid quarterly, until maturity, at which point the remaining balance is due. Quantum's corporate credit rating is 'B' with a stable outlook. The corporate credit rating reflects increased financial leverage and debt servicing burdens resulting from the ADIC acquisition financing and relatively weak operating profitability stemming from mixed industry fundamentals and competition. These factors are partially offset by the potential for an improved business position, and incremental improvements in profitability and cash flow generation, resulting from cost cuts and synergies from the acquisition of ADIC. Ratings List: Quantum Corp. * Sr. secured first-lien debt's rating revised to B+ (Recovery Rating 1) from B (Recovery Rating 3) Based in San Jose, California, Quantum Corp., (NYSE: DSS) -- http://www.quantum.com/-- formerly a maker of hard disk drive for desktop computers, now produces digital linear tape technology, such as DLT devices, automated tape library systems, and the tape cartridges used in these systems. The company has offices in these Asia-Pacific countries: Korea, Australia, China, Hong Kong, India, Japan, Malaysia, Singapore. QUANTUM CORP: Completes Acquisition of ADIC for US$770 Million ------------------------------------------------------------- Quantum Corp. completed its acquisition of Advanced Digital Information Corp. Under the terms of the definitive agreement the Company acquired all of ADIC and its outstanding shares for US$770 million, primarily in cash. The Company is funding the transaction through a combination of cash on hand and approximately US$500 million in financing from a group of banks and other lending institutions. The annual interest expense resulting from the financing is expected to be approximately US$50 million. As a result of intensive integration planning over the last few months, the Company has identified annualized cost synergies of approximately US$75 million to US$80 million, compared to the US$45 million it had initially estimated. The Company expects to begin realizing the benefit of a significant portion of the synergies by the end of the calendar year, the majority of the synergy savings by the end of its fiscal year, and the remaining synergy benefits in the following two quarters. The synergies will reduce both cost of goods sold and operating expenses and primarily be generated by eliminating redundancies in internal programs, processes and employee positions, rationalizing facilities, leveraging higher manufacturing volumes to reduce supply chain costs, and streamlining procurement processes. With the acquisition of ADIC, the Company offers a comprehensive portfolio of platform-independent systems, software, devices and media. In addition, with combined revenues exceeding US$1.2 billion over the last four quarters and a significantly larger sales and service infrastructure, the Company now has the scale to engage with customers at a more strategic level. The Company further disclosed that, it will continue to sell and support all current Quantum and ADIC products; sell all products through the companies' respective partners and distribution channels; and maintain existing service contracts and product warranties. The Company will have nearly a thousand Sales, Marketing and Service employees providing informed expertise, advice and support to customers around the world. Based in San Jose, California, Quantum Corp., (NYSE: DSS) -- http://www.quantum.com-- formerly a maker of hard disk drive for desktop computers, now produces digital linear tape technology, such as DLT devices, automated tape library systems, and the tape cartridges used in these systems. The company has offices in these Asia-Pacific countries: Korea, Australia, China, Hong Kong, India, Japan, Malaysia, and Singapore. * * * Standard & Poor's Ratings Services revised its rating and recovery rating on Quantum Corp.'s proposed first-lien bank facility to 'B+' and '1' from 'B' and '3', respectively, following a recent amendment to the terms of the proposed financing of Quantum's acquisition of Advanced Digital Information Corporation. =============== M A L A Y S I A =============== FURQAN BUSINESS: Proceeds of Austral Amal's Sale Received --------------------------------------------------------- Furqan Business Organisation Berhad disclosed on August 25, 2006, that it received a letter from Prokhas Sdn Bhd informing that all proceeds for the disposal of Austral Amal Properties Sdn Bhd's property has been received towards full and final settlement of a loan under the Modified Workout Proposal. As reported by the Troubled Company Reporter - Asia Pacific on April 11, 2006, Furqan Business Organisation's subsidiary, Austral Amal, had, on April 6, 2006, entered into a Sale and Purchase Agreement with Scanart Data System (M) Sdn Bhd. Under the Agreement, Austral Amal will sell a piece of land, a four-storey office and a warehouse complex in Bandar Petaling Jaya, Daerah Petaling, Negeri Selangor Darul Ehsan measuring in area approximately 8978.9484 square meters for MYR15,100,000. The disposal is part of the Proposed Disposal of Non-Core Assets of Austral Amalgamated Berhad Group pursuant to the Workout Proposal of AAB Group, which was approved and implemented under the Pengurusan Danaharta Nasional Berhad Act, 1998. Austral Amal has obtained the approval from Pengurusan Danaharta Nasional Berhad to sell the Property and Danaharta has agreed to accept MYR15,100,000 only as full and final redemption of the Property subject to the sum being paid to Danaharta. About Austral Amal Austral Amal is a wholly owned subsidiary of Furqan Business and was incorporated in Malaysia under the Companies Act, 1965, on June 5, 1995. The authorized and issued and paid up capital of Austral Amal is MYR100,000 divided into 100,000 ordinary shares of MYR1.00 each and MYR2.00 divided into two ordinary shares of MYE1.00 each, respectively. About Furqan Business Organization Headquartered in Kuala Lumpur, Malaysia, Furqan Business Organization Berhad formerly known as Austral Amalgamated Berhad is engaged in property development and investment, tour and travel services, and financial services. Other activities include contractor, leasing and hire purchase financing facilities. The Group's operations are substantially carried out in Malaysia. Rating Agency Malaysia has downgraded the rating of the Company's MYR37.66 million Redeemable Convertible Loan Stocks, from BB3 to B1, with a negative outlook. At the same time, the rating agency is maintaining the Rating Watch on the Company. The downgrade is premised on the deterioration in Furqan's business profile, especially in its leasing business, which is currently the main revenue contributor to the Group. MALAYSIA AIRLINES: Violated Immigration Laws, NZ Officials Say -------------------------------------------------------------- Immigration officials are prosecuting Malaysia Airlines for carrying illegal immigrants to New Zealand, the Bangkok Post reports. The New Zealand Immigration Department is taking legal action due to demonstrate that failure to screen passengers would not be tolerated, the report says. Immigration officials claim that Malaysia Airlines habitually breached the Immigration Act, in which airlines are obliged to ensure that passengers comply with all regulations and are legally entitled to enter New Zealand before boarding flights bound for the country. Board of Airlines Representatives member, Stuart Milne, told the Post he was disappointed with the prosecution and added that the Immigration Act was out of date and should be changed. He said airlines wanted to cooperate with officials and by and large they had a good working relationship, which could be jeopardized by legal action. Officials said an advanced passenger screening system introduced last year saw 680 people denied permission to board aircraft heading for New Zealand in the 12 months to June 30, 2006, the Post relates. About Malaysia Airlines Headquartered in Selangor, Malaysia, Malaysia Airlines -- http://www.malaysiaairlines.com/-- services domestic and international flights. Its global network comprised 32 domestic and 86 international destinations. Of the 86 international destinations, 17 were operated in collaboration with our airline partners. The carrier made a loss after tax of MYR1.3 billion for fiscal year 2005, due to high fuel and operating costs, and unprofitable routes. In late February 2006, it unveiled a radical rescue plan to raise MYR4 billion to stay afloat and return to profitability by 2007. Under the restructuring plan, the airline pledged to cut its budget by 20% across the board, terminate many unprofitable routes, freeze recruitment except for front-line staff, crack down on corruption by encouraging Whistle-blowing and stop corporate sponsorship. MALAYSIA AIRLINES: Forges Partnership with Virgin ------------------------------------------------- Malaysia Airlines and Australia's Virgin Blue inked on August 29, 2006, a partnership agreement aimed at boosting revenues for both carriers, The Australian reports. Under the agreement, passengers will be funneled by airlines into each other's networks. Virgin will be given access to 47 Malaysia Airlines flights a week into five Australian cities, the report states. According to e-travel Blackboard, the tie-up is expected to involve electronic ticketing as well as inter-lining of baggage from the three biggest cities and reciprocity between loyalty schemes. Malaysia Airlines has been forming partnerships with foreign airlines as part of its business turnaround plan that was unveiled in February this year. The Troubled Company Reporter - Asia Pacific reported on August 7, 2006, that the Malaysian carrier has signed a code- sharing agreement with Gulf Air. The agreement -- which will come into effect on September 8, 2006 -- will allow Malaysia Airlines to market seats under its code on the Gulf Air operated flights between Kuala Lumpur to the Middle East countries of Bahrain and Oman. The TCR-AP further reported on August 11, 2006, that Malaysia Airlines is looking to enter at least five more code sharing deals by the end of this year, a move that is expected to increase its passenger load. The carrier would first sign with Australia by the end of this month and with South Africa, China, Europe as well as the United States before Christmas. About Malaysia Airlines Headquartered in Selangor, Malaysia, Malaysia Airlines -- http://www.malaysiaairlines.com/-- services domestic and international flights. Its global network comprised 32 domestic and 86 international destinations. Of the 86 international destinations, 17 were operated in collaboration with our airline partners. The carrier made a loss after tax of MYR1.3 billion for fiscal year 2005, due to high fuel and operating costs, and unprofitable routes. In late February 2006, it unveiled a radical rescue plan to raise MYR4 billion to stay afloat and return to profitability by 2007. Under the restructuring plan, the airline pledged to cut its budget by 20% across the board, terminate many unprofitable routes, freeze recruitment except for front-line staff, crack down on corruption by encouraging Whistle-blowing and stop corporate sponsorship. MITHRIL BERHAD: To Seek Shareholders' Mandate at AGM ---------------------------------------------------- Mithril Berhad's board of directors has, at its meeting held on August 24, 2006, agreed that the Company will seek approval from its shareholders at the forthcoming Annual General Meeting for these proposals: * renewal of the shareholders' mandate to enter into recurrent related party transactions of a revenue and trading nature; and * proposed Amendments to the company's Articles of Incorporation. In this regard, a Circular to Shareholders containing the information on the said Proposals will be issued and dispatched to the shareholders of the Company in due course. About Mithril Berhad Headquartered in Kota Kinabalu, Malaysia, Mithril Berhad -- http://www.mithril.com.my/-- manufactures bricks and polyurethane products. Its other activities include dealing and distribution of bricks and building materials, development of properties, property management and investment holding. Mithril started to incur consecutive losses since its listing in 2002 and has so far failed to turn the business around. For the quarter ended March 31, 2006, the Company registered a net loss of MYR1.5 million. As of March 31, 2006, the Company registered accumulated losses of MYR182 million. As reported by the Troubled Company Reporter - Asia Pacific on July 27, 2006, The Malaysia Rating Corporation Berhad affirmed the BBB rating on Mithril Berhad's MYR59-million redeemable Convertible secured loan stocks. Furthermore, the rating agency warned that the rating will be placed on MARCWatch with a negative outlook. MYCOM BERHAD: Enters Into Additional Restructuring Pacts -------------------------------------------------------- Mycom Berhad has entered into further agreements with parties involving part of the total debts to be restructured under the Company's restructuring scheme. On August 25, 2006, Mycom, Olympia Industries Berhad and Affin Recoveries Berhad entered into a novation agreement wherein Olympia will novate and transfer all its rights and obligations under a letter of offer dated October 3, 1996, issued by Affin Recoveries to Olympia granting the latter a revolving credit facility of up to MYR5,000,000. On even date, Mycom and Affin Recoveries entered into a supplemental agreement to vary the terms of the Letter of Offer. The principal amount together with any interest payable under the facility to be restructured based on the cut-off date of September 30, 1998, amounted to MYR5,331,337. The amount will be settled by Mycom through: -- the issuance of MYR5,331,337 nominal amount of 2006/2012 Irredeemable Convertible Unsecured Loan Stocks to Affin Recoveries; and -- the issuance of 286,468 ordinary shares of MYR1 each in Mycom to Affin Recoveries as compensation for the low/zero interest/coupon rate in respect of the 2006/2012 ICULS. In addition, the accrued interest from October 1, 1998, onwards will be waived by Affin Recoveries. Furthermore, a novation agreement dated August 25, 2006, was entered into between pacific Forest Industries Sdn Bhd, Mycom and AmMerchant Bank Berhad wherein Pacific Forest will novate and transfer all its rights and obligations under a letter of offer dated September 24, 1996, issued by AmMerchant to Pacific Forest granting the latter a revolving credit/bankers acceptance facility of up to the maximum aggregate principal sum of MYR5,000,000 to Mycom. On even date, Mycom and AmMerchant entered into a supplemental agreement to vary the terms of the Letter of Offer. The principal amount together with any interest payable under the said facility to be restructured based on the cut-off date of September 30, 1998, amounted to MYR3,094,501 and shall be settled in full by Mycom through: * the issuance of MYR3,094,501 nominal amount of 2006/2012 ICULS to AmMerchant; and * the issuance of 166,276 Mycom Shares to AmMerchant as compensation for the low/zero interest/coupon rate in respect of the 2006/2012 ICULS. The accrued interest from October 1, 1998, onwards shall be waived by AmMerchant. Moreover, a supplemental agreement dated August 25, 2006, was signed by Mycom and AmMerchant to vary the terms of a letter of offer dated July 24, 1997, issued by AmMerchant to Mycom granting Mycom a bank guarantee facility of up to the maximum aggregate principal sum of MYR3,000,000. The principal amount together with any interest payable under the facility to be restructured based on the September 30, 1998 cut-off date amounted to MYR1,775,560 and shall be settled in full by Mycom through: -- the issuance of MYRM1,775,560 nominal amount of 2006/2012 ICULS to AmMerchant; and -- the issuance of 95,406 Mycom Shares to AmMerchant as compensation for the low/zero interest/coupon rate in respect of the 2006/2012 ICULS. The accrued interest from October 1, 1998, onwards will be waived by AmMerchant. In addition to the novation and supplemental agreements, Mycom also entered into: 1) Trust Deed with Malaysian Trustees Berhad wherein Malaysia Trustees agreed to act as trustee for the benefit of the holders of the six years Redeemable Unsecured Loan Stocks amounting up to MYR60,315,280; 2) Agency Agreement with Symphony Share Registrars Sdn Bhd and Malaysia Trustees whereby Symphony agreed to act as an issuing agent and paying agent in relation to the issue of the 2006/2012 RULS and payments under the 2006/2012 RULS Trust Deed; 3) Trust Deed wherein Malaysia Trsutees agreed to act as trustee for the benefit of the holders of the six years Irredeemable Convertible Bonds amounting up to MYR108,527,879; 4) Agency Agreement with Symphony and Malaysia Trustees whereby Symphony agreed to act as an issuing agent and paying agent in relation to the issue of the 2006/2012 ICB and payments under the 2006/2012 ICB Trust Deed; 5) Trust Deed wherein Malaysia Trustees agreed to act as trustee for the benefit of the holders of the six years ICULS amounting up to MYR361,552,465; 6) Agency Agreement with Symphony and Malaysia Trsutees whereby Symphony agreed to act as an issuing agent and paying agent in relation to the issue of the 2006/2012 ICULS and payments under the 2006/2012 ICULS Trust Deed; and 7) Deed Poll made by Mycom constituting 168,536,415 warrants for an exercise period of 60 months. About Mycom Berhad Headquartered in Kuala Lumpur, Malaysia, Mycom Berhad is engaged in the provisions of granite quarry services, manufactures and sells latex rubber thread, tape, plywood, laminated board and sawn timber, cultivates oil palm fruits, and develops property. The Company is also involved in hotel operation, provision of management and financial services and investment holding. Operations of the Group are carried out in Malaysia and South Africa. Mycom is in the advanced stage of negotiations to settle its foreign debts. The proposed capital reduction and consolidation by Mycom, as well as the proposed share premium account reduction will reduce the Company's accumulated losses. As of March 31, 2006, the Company registered accumulated losses of MYR1,155,517,000. The Company's June 30, 2006, balance sheet revealed total assets of MYR817,965,000 and total liabilities of MYR1,351,772,000, resulting into a stockholders' deficit of MYR521,083,000. OLYMPIA INDUSTRIES: Inks More Restructuring Deals ------------------------------------------------- On August 25, 2006, Olympia Industries Berhad signed further agreements in respect of its restructuring scheme. Olympia Industries entered into a novation agreement with Mycom Berhad and Affin Recoveries Berhad wherein Olympia will novate an transfer all its rights and obligations under a letter of offer dated October 3, 1996, issued by Affin Recoveries to Olympia Industries granting the latter a revolving credit facility of up to the maximum aggregate principal sum of MYR5,000,000 to Mycom. The Company also inked a supplemental agreement with RHB Bank Berhad to vary the terns of the letters of offer dated November 19, 1992, and December 2, 1993, both issued by RHB to Olympia granting the latter credit facilities of up to the maximum aggregate principal sum of MYR5,100,000 comprising of: -- an overdraft I facility of up to the maximum aggregate principal sum of MYR1,400,000; -- a letter of guarantee facility of up to the maximum aggregate principal sum of MYR100,000; and -- an overdraft II facility of up to the maximum aggregate principal sum of MYR3,600,000. As of August 25, 2006, the letter of guarantee facility had been withdrawn and cancelled by RHB. The principal amount together with any interest payable under the said facility to be restructured based on the cut-off date of September 30, 1998, amounted to MYR4,317,157 and shall be settled in full by Olympia through: -- the issuance of MYR4,317,157 nominal amount of 2006/2012 Irredeemable Convertible Unsecured Loan Stocks to RHB; and -- the issuance of 231,972 ordinary shares of MYR1 each in Olympia to RHB as compensation for the low/zero interest/coupon rate in respect of the 2006/2012 ICULS. The accrued interest from October 1, 1998, onwards will be waived by RHB. In addition, Olympia also entered into: -- a Trust Deed with Malaysian Trustees Berhad wherein the latter agreed to act as trustee for the benefit of the holders of the six years Redeemable Unsecured Loan Stocks amounting up to MYR137,124,246; -- an Agency Agreement with Symphony Share Registrars Sdn Bhd and Malaysia Trustees whereby Symphony agreed to act as an issuing agent and paying agent in relation to the issue of the 2006/2012 RULS and payments under the 2006/2012 RULS Trust Deed; -- a Supplemental 2006/2012 Irredeemable Convertible Bonds Trust Deed dawith Malaysia Trsutees to vary, amend and supplement the terms and conditions of the 2006/2012 ICB Trust Deed dated May 24, 2006; -- a Supplemental 2006/2012 ICULS Trust Deed with Malaysia Trustees to vary, amend and supplement the terms and conditions of the 2006/2012 ICULS Trust Deed dated May 24, 2006; and -- a Deed Poll made by Olympia constituting 101,676,239 warrants for an exercise period of 60 months. About Olympia Industries Headquartered in Kuala Lumpur, Malaysia, Olympia Industries Berhad organizing and managing numbers forecast pools and public lotteries, operation of recreation clubs, investment holding and property development. Other activities include trading in securities, paint spraying of aluminium, other metal products and architectural products, letting of properties, maintaining and operating internet based transaction facilities and services, food and beverage business, events organizer and project management, travel and tours agency, servicing of oil and gas pipeline, asset management, money lending and stockbroking. Operations are carried out in Malaysia, Papua New Guinea and Singapore. The Company has incurred continuous losses in the past and has also been fined many times by Bursa Malaysia Securities for failing to maintain appropriate standards of corporate responsibility and accountability to the investing public. The company's June 30, 2006, balance sheet revealed a stockholders' deficit of MYR1,041,766,000 resulting from total liabilities of MYR2,035,268,000 exceeding total assets of MYR1,001,289,000. RENTOKIL INITIAL: Posts GBP562.8-Mln Equity Deficit at June 30 -------------------------------------------------------------- Rentokil Initial plc released its unaudited interim financial results for the six months ended June 30, 2006. Rentokil reported net profit of GBP134.7 million in the first half of 2006 compared with net profit of GBP64 million in the first of half of 2005. In the first half of 2006, revenue from continuing businesses grew by 10.5%, 3.5% of which was organic. Revenue was higher across all divisions other than textiles and washroom services where it was flat. Despite this, operating profit was down in all divisions other than pest control and City Link, resulting in group operating profit falling by 9.7%. In the first half of 2006, adjusted operating profit fell by 9.6% at constant rates. Profit before tax and amortization of customer lists fell by 6.7%, benefiting from a lower interest charge. Statutory revenue (at actual exchange rates) increased by 11.1% in the half to GBP1,018.6 million. Statutory operating profit fell by 10.0% to GBP121.9 million and statutory profit before income tax of GBP102.1 million was 6.8% lower than last year. Contract portfolio in the first half was up 5.4%, 1.2% of which was organic. Interim dividend for 2006 maintained at 2.13 pence per share. At June 30, 2006, the Company's balance sheet showed GBP562.8 million in stockholders' deficit, compared with a GBP844.5 million stockholders' deficit at June 30, 2005. Doug Flynn, Chief Executive Officer of Rentokil Initial, said "The financial results for the first half are in line with our expectations. We have made progress against our priorities to drive top line growth and improve customer retention. We continue to improve our strategic position in a number of markets. "In addition, we are giving much greater attention to productivity and process improvement. This will take us further to achieving our sequential goals of firstly restarting revenue growth, then stabilizing and increasing profits and finally working towards margin expansion. "As a result of current market and trading conditions in the textiles and washroom services division, we have reduced our full year profit expectations for that business. We expect the second half performance for textiles and washroom services to be broadly flat with the first half. We still expect our other divisions to demonstrate improving profit trends during the second half (before one-off items). As a result of the initiatives taken in 2005 and 2006, we anticipate that the group will return to modest profit growth in 2007." Operating Highlights In the first half of the year, significant progress has been made against these goals in some areas; customer retention in continental European pest control has improved considerably and similar improvements were achieved by European washroom and some parts of Asia Pacific, particularly Malaysia. Strategic Highlights In the first half, the Company continued to provide clear strategic focus and investment priorities within the group and to build stronger strategic positions within our businesses. The transformation of City Link progressed well during the half and is now ahead of schedule. This program involves the buy- back and integration of franchisee-owned businesses and the introduction of a new business model as we change from primarily a franchisor to a fully integrated parcels business. The Company has created a platform for growth in pest control in the U.S. following the acquisition of JC Ehrlich on March 1. A further eighteen companies and businesses were also acquired during the first half. In Asia Pacific, a strong core management team is now in place, which is allowing us to play a bigger and more dynamic role in this high growth region. Pink Healthcare was acquired at the end of June, consolidating our position in the Australian washroom market. Other first half acquisitions include Lease-a- plant, Akarana and Pest Free Service in New Zealand and Oki Dust Mat in China. The Company entered an agreement to acquire the CWS branded washroom and dust mat businesses in Australia, Hong Kong, South Korea, Malaysia, the Philippines and Singapore. The U.K. linen and workwear business has been treated as discontinued along with the U.K., Canadian, Belgian and the United States manned guarding businesses. U.K. linen and workwear was closed on April 30. The sales of the U.K., Canadian and Belgian manned guarding businesses were completed during the first half for a gross consideration of GBP105 million. About Rentokil Initial Headquartered in England, United Kingdom, Rentokil Initial PLC - - http://www.rentokil-initial.com/-- is one of the largest business services companies in the world, operating in all the major economies of Europe, North America, Asia Pacific and Africa. The company has some 90,000 employees providing a range of support services in over 40 countries. In the Asia Pacific, Rentokil operates in Australia, Hong Kong, South Korea, the Philippines, Singapore and Malaysia. SEAINS PTE: Enters Dissolution Proceedings ------------------------------------------ Seains Pte Limited was dissolved on August 26, 2006, pursuant to Section 308 95) of the Companies Act. The company was incorporated on May 15, 1980, as a private company limited by shares. Its principal activity was general insurance agent. The company became dormant since 2002 after it ceased business operations. TENAGA NASIONAL: Lists and Quotes 4,859,464 New Shares ------------------------------------------------------ Tenaga Nasional Berhad's additional 4,859,464 new ordinary shares of MYR1 each was granted listing and quotation on August 29, 2006. The new shared were issued pursuant to the company's employee's share option scheme. 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. ===================== P H I L I P P I N E S ===================== ARANETA PROPERTIES: To Hold ASM on October 6, 2006 -------------------------------------------------- In a filing with the Philippine Stock Exchange Commission, Araneta Properties, Inc., advises that its Annual Stockholders' Meeting for 2006 has been set by the Board of Directors on October 6, 2006, and the record date of the stockholders entitled to vote on the meeting will be September 12, 2006. About Araneta Properties Araneta Properties, Inc., formerly known as Integrated Chrome Corporation, was originally organized to mine chrome ore and produce ferros metal or commonly known as ferrochrome. It changed its name to its present one and changed its primary purpose to that of land and property development in 1997 with the entry of the Araneta Group. With its diversification to the property development business, it relegated its original primary purpose to that of a secondary concern. ARA is now engaged in the fine-tuning of a master plan for the development of 1,500 hectares of land located in the municipality of San Jose del Monte, Bulacan, and Caloocan City. J. Carlitos G. Cruz, of Sycip Gorres Velayo & Company raised significant doubt on Araneta Properties' ability to continue as a going concern, noting that the Company has incurred a net loss of PHP22.9 million in 2005 and PHP55.9 million in 2004, and has a deficit of PHP651.3 million as of December 31, 2005, and PHP626.6 million as of December 31, 2004. According to Mr. Cruz, the Company's ability to continue as a going concern depends on the successful development and completion of its real estate for sale and development asset and their subsequent sale at reasonable margins. The Troubled Company Reporter - Asia Pacific reported on June 9, 2006, that the company posted a PHP15.91-million net loss for the first quarter ending March 31, 2006, an 8.75% increase from the previous corresponding period's net loss of PHP14.63 million. EXPORT INDUSTRY BANK: Board Appoints Three Senior Officers ---------------------------------------------------------- At a meeting on August 25, 2006, the Board of Export and Industry Bank noted the termination of then First Vice President Amelia Z. Isaac, effective July 31, 2006. The Board likewise approved the appointment of three senior officers: Officer Position ------- -------- Juan Victor S. Tanjuatco Head, Sales & Customer Relationship Management Sector Edna Daguinsin-Reyes Chief Compliance Officer Joseph Gerard D. Tiamson Head, Business Center Management Group, Service Delivery & Management Sector About ExportBank Headquartered in Makati City, Manila, Export and Industry Bank -- http://exportbank.com.ph/-- has 50 branches and has revived former Urban Bank unit under new names. Its principal activity is the provision of commercial banking services such as deposit taking, loans and trade finance, domestic and foreign fund transfers, treasury, foreign exchange and trust services. The Bank is saddled with the PHP10 billion non-performing assets it inherited from Urban Bank when the two banks merged in 2002. The TCR-AP reported on May 10, 2006, that Exportbank is scheduled to complete a rehabilitation program, which was proposed in order to reverse a 2005 net loss of PHP1.66 million, by 2007. In an agreement dated December 29, 2005, the Philippine Deposit Insurance Corp. will extend annual financial aid of PHP600 million to the Bank. APEX MINING: Resets ASM to November 8 & Defers Annual Meeting ------------------------------------------------------------- Apex Mining Company, Inc.'s Annual Stockholders' Meeting, which was earlier postponed from June 28, 2006, as per By-Laws to September 27, 2006, is further reset to November 8, 2006, at 9:00 a.m., at the Valle Verde Country Club in Pasig City. In addition to the reasons cited in the first postponement, the company is deferring the Annual Meeting because there are still shares of the Puyat Group that are not yet transferred as of this date to the new owners, Mapula Creek Gold Corporation and Crew Gold Corporation and are still pending issuance of Certificate of Registration from the BIR. As reported in the Troubled Company Reporter - Asia Pacific on May 11, 2006, Apex Mining moved its annual stockholders' meeting, initially scheduled on June 28, 2006, to September 27, to: * enable the company to complete its ongoing reorganization, pursuant to the acquisition of a major stake by Crew Gold Corporation and Mapula Creek Gold Corporation last year; * give the Company enough time to prepare and distribute the necessary printed material relating to the meeting. About Apex Mining Apex Mining Company, Inc., is majority-owned by Norwegian firm Crew Gold Corporation, which is based in the United Kingdom. It owns the Masara gold mine in Compostela Valley on the island of Mindanao. Apex Mining is a corporation that is principally engaged in the business of mining gold, silver, copper, lead, and other precious metals. The Company was initially involved in copper mining and shifted to gold mining in the late 70s when copper prices started to plummet. The Company's Operations were suspended on March 16, 2000, up to the present. However, a mine rehabilitation program was implemented starting July 2000 to re-access the measured ore blocks located at level 850 and level 930. There is a pending negotiation for a joint venture with Argonuat Mining Co., Inc., at 3780 Kilroy Airport Way, Suite 200, in Long Beach, California. However, the current peace and order situation in Mindanao has delayed the transaction. METRO PACIFIC: Requests Nine-Day Shares Trading Suspension ---------------------------------------------------------- In connection with the approval by the Board of Directors and stockholders of Metro Pacific Corporation of the decrease in its authorized capital stock from: -- PHP30,000,000,000 divided into 29,000,000,000 common shares, 997,500,000 Preferred-"Series 1" and 2,500,000 Preferred-"Series 2" shares all with a par value of PHP1 per share, to: -- PHP1,500,000,000 divided into 1,450,000,000 common shares, 49,875,000 Preferred-"Series 1" and 125,000 Preferred- "Series 2" shares all with the par value of PHP1 per share, the company advises that on August 23, 2006, the Securities and Exchange Commission also approved it. Accordingly, the Certificate of a Decrease of Capital Stock, as well as the Certificate of Filing of the Amended Articles of Incorporation were issued. In this regard, Metro Pacific requests for a voluntary nine-day suspension in the trading of its shares, from August 29, 2006, through September 8, 2006, so that the investing public may sufficiently absorb this information and to enable them to complete the process for updating their stock certificates. * * * Metro Pacific Corporation -- http://www.metropacific.com/-- is the flagship publicly listed investment and management company of the First Pacific Group in the Philippines. The Company, which was formerly known as Metro Drug, Inc., has since then evolved from a pharmaceutical and consumer products distribution company into one of the country's leading corporations. Metro Pacific has these significant subsidiaries: * Landco, Inc. * Metro Tagaytay Land Co. Inc. * Negros Navigation Co. Inc. * Lucena Commercial Land Corporation * First Pacific Realty Partners Corporation * Landco Pacific Centers, Inc. As reported in the Troubled Company Reporter - Asia Pacific on June 28, 2006, Marydith C. Miguel, of Sycip Gorres Velayo & Co., raised significant doubts on MPC's ability to continue as a going concern after auditing the Company's annual report for the period ended December 31, 2005. Ms. Miguel noted in the auditors report that MPC suffered significant losses in prior years leading to its inability to meet its maturing obligations, on principal and interest, to certain third-party lenders and to a related company. Although the Company has generated a PHP194.26-million net income attributable to equity holders for the year ended December 31, 2005, it continues to reflect a deficit of PHP27.5 billion as of December 31, 2005, due to prior year's accumulated losses. In response, the company continues to implement measures geared towards generating liquidity to meet maturing obligations and profitability, including debt rehabilitation activities and a capital restructuring plan. MIRANT CORP: Quezon Province Demands Payment of PHP4.12Bln RPT -------------------------------------------------------------- In a warrant of levy issued by the Quezon municipal and provincial treasurers' offices, the local governments of Quezon want Mirant Philippines to pay PHP4.12 billion in unpaid real property taxes for its usage of the 735-megawatt Pagbilao coal- fired plant, Niel V. Mugas of The Manila Times reports. Mirant Philippines, as reflected in the warrant of levy, has been "delinquent" in paying its RPT since 1997 up to the present, leading to the PHP4.12 billion in unpaid tax obligation, the report says, noting that failure to pay may lead to a levy of Mirant's assets -- the Pagbilao coal plant. According to The Manila Times, local governments have the power to levy capital equipments of a plant in case its operator fails to settle tax obligations. Independent power producers supplying power to the National Power Corp. are required to pay RPT under Section 258 of the local government code, the paper relates. The paper discloses that host provinces collect about 40% of the RPT while 35% goes to the municipality in which the plant is located. The remaining 25% goes to the host barangay. The Manila Times recounts that a previous ruling of the Court of Tax Appeals asserted that since Napocor IPPs currently operate the plant, they are party-in-interest to be levied the RPTs due to their host LGUs. By invoking the rulings, local government units could collect previous taxes since the start of the commercial operation of a plant, the paper adds. The Manila Times cites a 2005 report in which the Philippine IPP Association claimed that the issue on real property taxes will affect 35 Napocor IPPs and the estimated taxes to be collected would amount to at least PHP7 billion based on initial computations. The pending issue of RPT on Mirant's Pagbilao facility may serve as an additional factor to the delay in the sale of its Philippine assets, The Manila Times notes. 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. MIRANT CORP: Gregorys Want Sugar Creek's $42-Mil. Claims Allowed ---------------------------------------------------------------- Vernon J. Gregory and Sandra Jolene Gregory filed in 2004 four proofs of claim against Mirant Corp. and its debtor-affiliates for US$21,000,000 each: Debtor Claim No. ------ --------- Mirant Corporation 7994 Mirant Sugar Creek, L.L.C. 7991 Mirant Sugar Creek Ventures, Inc. 7992 Mirant Sugar Creek Holdings, Inc. 7993 The Debtors objected to the Gregorys' Claims, but later withdrew their Objection. On October 26, 2005, Mirant sought and obtained a Court order lifting the automatic stay to allow liquidation of the Gregorys' Claims in a court of appropriate jurisdiction. For the purpose of voting to accept or reject the Debtors' Plan and for objecting to the Plan's confirmation, Judge Lynn temporarily allowed Claim No. 7994 as a general unsecured claim for US$21,000,000. Pursuant to the Bankruptcy Court's Order, the Gregorys filed a civil lawsuit against the four Mirant Debtors in the U.S. District Court of the Southern District of Indiana. While preparing service of process, the Gregorys were informed by Jay Wilson, Mirant's registered agent, that service was not permitted for Mirant Sugar Creek Ventures and Mirant Sugar Creek Holdings because the two entities were merged into Mirant Americas, Inc., and no longer exist. Mr. Wilson, instead, advised the Gregorys to amend the complaint against Mirant Americas. The Gregorys responded that they do not have a claim against Mirant Americas, and they cannot simply amend their complaint. Paul J. Castronovo, Esq., in Hoffman Estates, Illinois, explains that a motion to amend the Gregorys' civil complaint naming Mirant Americas as a defendant, in its capacity as a successor- in-interest to Mirant Sugar Creek Ventures and Mirant Sugar Creek Holdings, must: * be based on a Bankruptcy Court order; and * not violate the Plan's discharge injunctions and Section 524(a)(2) of the Bankruptcy Code. Mr. Castronovo asserts that the Debtors committed a fraudulent act by not disclosing the mergers, and breached the Confirmation Order. As a result, the Gregorys cannot liquidate their claims against entities that no longer existed. The Gregorys ask Judge Lynn to: (a) allow Claim No. 7992 against Mirant Sugar Creek Ventures and Claim No. 7993 against Mirant Sugar Creek Holdings for US$21,000,000 each; and (b) direct the Reorganized Debtors' disbursing agent to make the distributions. Mr. Castronovo says the Gregorys have obtained prima facie status for the validity of their Claims and amount of each Claim. 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. MIRANT CORP: Lovett Unit Gets Court Approval on NY DEC Order ------------------------------------------------------------ Mirant Lovett, LLC, a Mirant Corporation debtor-affiliate, owns and operates the Lovett Coal Ash Management Facility located in the town of Stony Point, New York. Mirant Lovett purchased the Lovett Coal Ash Facility from Orange and Rockland Utilities, Inc. In May 2005, the New York Department of Environmental Conservation served an administrative Notice of Hearing and Complaint on Mirant Lovett and Mirant New York, Inc., regarding the Lovett Coal Ash Facility. The DEC has the authority to enforce New York's environmental laws, and has jurisdiction over the operation and closure of solid waste management facilities. The DEC Complaint alleged, among other things, that Mirant Lovett failed to perform certain investigation and remediation or restoration measures at the Lovett Coal Ash Facility in compliance with New York's Department of Environmental Conservation Rules and Regulations. Based on the allegations in the DEC Complaint, Mirant Lovett estimated that the cost of compliance with Title 6 Part 360 of the New York Conservation Rules and Regulations will be more than US$1,000,000. Additionally, the DEC may impose certain penalties for violation of the NYCRR of up to US$7,500 plus US$1,500 per day, for each violation of any rule or regulation promulgated or order issued. The DEC Complaint sought a US$100,000 penalty against Mirant Lovett. New York and the DEC filed administrative claims against the New York Debtors, including claims against Mirant Lovett in connection with the Lovett Coal Ash Facility under Section 503(b) of the Bankruptcy Code. In late May 2006, Mirant Lovett and the DEC entered into a preliminary Consent Order resolving the administrative expense claims asserted against the Lovett Coal Ash Facility. The Honorable Michael D. Lynn of the approved the Order on Consent and Compliance Schedule entered into with the Department of Environmental Conservation dated June 2, 2006. A full-text copy of the Consent Order between Mirant Lovett and the New York DEC is available for free at http://ResearchArchives.com/t/s?d27 The salient terms of the Consent Order and Compliance Schedule are: (a) Mirant Lovett will pay a US$20,000 penalty to the DEC. Upon payment of US$5,000 of the US$20,000, the requirement to pay the remaining US$15,000 will be suspended if Mirant Lovett meets the terms of the Consent Order; (b) The Consent Order will not constitute an admission of any violation alleged in the DEC Complaint or Consent Order; (c) Mirant Lovett's compliance with the Consent Order releases and satisfies its obligations to the DEC under the Complaint and Consent Order. However, that compliance does not satisfy Mirant Lovett's prospective obligations to the DEC; (d) In accordance with a DEC-approved schedule, Mirant Lovett will complete the construction or repair requirements of the "Cap Stabilization Plan" in accordance with the DEC's reasonable satisfaction; and (e) The Compliance Schedule requires Mirant Lovett to, among others: i. continue to hold US$4,200,000 in an escrow account with Deutsche Bank Trust Company; and ii. install certain flow meters and submit a revised Cap Stabilization Plan. 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. PHIL. NATIONAL CONSTRUCTION: Submits Turnaround Plan to the SC -------------------------------------------------------------- Philippine National Construction Corporation informs the Philippine Stock Exchange that it has submitted a Joint Motion for Judgment Based On Compromise to the Supreme Court as part of the company's total restructuring plan where it projects a net income of about PHP200 million in 2007 after suffering income losses for the past 30 years of its franchise period. The projected financial turnaround will be achieved by a combination of measures in total corporate restructuring, particularly reduction of debt, resolution of long standing legal cases, drastic right sizing of the organization, and reduction in corporate expenses. The plan covers: 1. Debt Settlement (a) Philippine National Bank -- PNCC owes PNB PHP2.4 billion, the interest of which have resulted in audited net income losses. The PNCC is now in an advanced state of negotiations with PNB to finally resolve six years of arrearages. The settlement will result in substantial reduction in debt and interest charges; (b) Radstock Securities -- The PNCC has also asked the Supreme Court for an approval of its settlement with Radstock stemming from the Regional Trial Court of Mandaluyong decision to award Radstock PHP13 billion in 2002 plus interest; (c) Bureau of Treasury -- The PNCC has proposed a long term restructuring of its PHP5.6 billion obligation to the Bureau of Treasury; 2. Organizational right-sizing This is in line with PNCC's program to phase out unprofitable divisions and service lines and stick to the core business of developing tollways. 3. Franchise extension The PNCC is currently requesting Congress for a 25-year extension of its Franchise to develop more tollroads and arterial linkages from Carmen, Pangasinan to Lucena, Quezon. This financial turnaround will benefit not only the National Government and the government corporations, which own approximately 90% of the company, but likewise with an estimated 5,000 public shareholders. About Phil. National Construction Headquartered in Mandaluyong City, Philippine National Construction Corporation -- http://www.pnccweb.net/-- is a government-owned and controlled corporation whose principal business activities include construction, real estate development, and operation and maintenance of the North and South Luzon Tollways. It is the government's main partner in infrastructure development and construction projects. Also, it is the sole operator and franchise-holder of the North and South Luzon Tollways and has entered into several joint venture agreements to upgrade and expand said expressways. Among the construction projects that are in its pipeline are the Rizal Avenue Bridge, the DENR Environment Center, the Central Business Park Package 1 (SM Project), and SLT Rehab (Nichols-Alabang). The Company's revenues are derived mostly from construction projects and the collection of tollway fees. The Troubled Company Reporter - Asia Pacific reported on May 31, 2006, that the company posted a net loss for the three months ended March 31, 2006, equal to PHP508.26 million -- PHP136.73 million or 21.20% lower than the PHP644.99 million loss recorded in the corresponding period in 2005. The TCR-AP also noted that the company is involved in continuing litigations relating to labor and civil cases. Both the management and its legal counsels believe that the final resolutions of these claims will have a material effect on the company's financial position, the TCR-AP said. * BSP Considers Policy Rate Cut for 2007 ---------------------------------------- The Bangko Sentral ng Pilipinas may consider cutting the overnight borrowing rate if inflation comes within the 4%-5% target, Malaya News reports. According to the report, BSP Governor Amando Tetangco Jr. said that if that trend is "well established" and "risks have clearly subsided," BSP may consider cutting the policy rate, which would lower the cost of borrowing funds. The paper notes that the BSP is ruling out any downward adjustment in the rate this year -- on which banks' prime lending rates are based -- because inflation still hovers above target. Malaya cites another BSP official as saying that it is premature to think of reducing the rate this year because policy changes have 15-21 months lag. Thus, the decision must consider what may take place when the rate cut takes effect. Other variables to be considered include oil prices and demand pressures, which impact on prices as well as the peso-dollar exchange rate, Malaya says. "You can't cut the rate if the exchange rate is at 56 for instance, which is inflationary," the paper cites the official, as saying. Malaya recounts that the BSP raised its overnight borrowing rate by three quarter-percentage points in April, September, and October last year to contain rising inflation. The rate now stands at 7.5%, the paper notes. Malaya says that though domestic policy rates have decoupled from the Fed rate, easing inflationary pressures in the U.S. will keep the rate unchanged in the near term and provide less trigger for interest rate hikes. The BSP expects 6.9%-7% rise in consumer prices this year breaching the target but sees inflation falling within 4%-5% in 2007, Malaya notes. ================= S I N G A P O R E ================= ADVANCED SYSTEMS: Director Steps Aside -------------------------------------- Joseph Au Sai Chuen eased to act as director of Advanced Systems Automation Limited on August 28, 2006. About Advanced Systems Advanced Systems Automation Limited -- http://www.asa.com.sg- is a Singapore-based company that is engaged in the design and manufacture of automatic molding machines and other back-ended assembly equipment for the semiconductor industry. The company's subsidiaries include Avalon Technology Pte. Ltd.; Microfits Pte. Ltd.; Beijing Microfits Precision Electronics Engineering Co., Ltd. and Beijing Advanced Precision Electronics Engineering Co., Ltd., both of which are engaged in the manufacture of precision tools, dies and moulds; Acetech Solutions Ltd.; Advanced Systems Automation, Inc., and Advanced Systems Automation (Europe) Limited, which is engaged in the sale and provision of services to the European semiconductor manufacturing market. * * * As reported in the Troubled Company Reporter - Asia Pacific on August 8, 2006, auditors Ernst & Young reported in the company's Annual Report that, "The group has incurred significant losses and has been experiencing severe cash shortage in the past four financial years. The group incurred a net loss of SGD3.4 million for the financial year ended March 31, 2006, and the group's and the company's current liabilities exceeded current assets by SGD20.9 million and SGD22.9 million respectively. As of March 31, 2006, the group and the company were in net shareholders' deficit positions of SGD13.8 million and SGD11.2 million respectively. These matters described above indicate the existence of a material uncertainty, which may cast significant doubt about the group and company's ability to continue as going concerns. "Ernst and Young adds that the ability of the group and the company to continue as going concern is dependent on the completion of the proposed renounceable rights issue, disposal of non-core assets and business restructuring. ANANDA TRAVEL: Faces Wind-Up Proceedings ---------------------------------------- Ananda Travel (Singapore) Pte Limited is facing a wind-up petition filed by Asatsu-Dk Singapore Pte on August 18, 2006. The liquidator can be reached at: Don Ho Mun-Tuke Don Ho & Associates 20 Cecil Street #12-02/03 Equity Plaza Singapore 049705 GETRONICS NV: Concludes Sale of Units to Kapsch ----------------------------------------------- Getronics announces that the sale of its operations in Austria, the Czech Republic, Slovakia and Poland to the Kapsch Group has been successfully concluded following all due regulatory checks. The sale will result in Kapsch becoming a strategic business partner for Getronics in the region, through which Getronics will continue to ensure the continued high level of service to its international clients in those countries. Getronics and Kapsch Group -- a family-owned specialist Austrian Communications and Information Technology company -- signed an agreement in June 2006 under which Kapsch will acquire the business activities of Getronics in Austria, the Czech Republic, Slovakia and Poland. Getronics will continue to maintain a strong presence in the region through its Global Service Centre in Budapest. Furthermore, the business assets and liabilities of Getronics Austria, and all shares in Getronics Czech Republic, Slovakia and Poland will be transferred to Kapsch. The agreement, conditional upon regulatory (anti-trust) procedures, is expected to close by mid-September 2006. The deal is proceeding in full accordance with all relevant laws and regulations. The decision to sell Getronics' operations in Austria, the Czech Republic, Slovakia and Poland was the result of a thorough strategic review of the company's operations in late 2005. Early in 2006, Getronics, assisted by KPMG Corporate Finance, began looking for a suitable strategic business partner in the region. Kapsch was selected because of its excellent reputation and the considerable potential synergies arising from the deal. By acquiring Getronics' Austrian, Czech, Slovak and Polish operations, Kapsch will be able to expand its presence in the ICT market, leveraging the high quality ICT services delivery capabilities and the skilled personnel of the Getronics operation and its coverage in the region. This deal enables Getronics to focus on strengthening and expanding its core businesses worldwide while continuing to provide the same high levels of service to its international clients in the Austrian, Czech, Slovak and Polish markets through its strategic business partner and its Global Service Centres. Getronics' Hungarian operations and, in particular, its Global Service Center in Budapest will continue to play an important role in Getronics' global operations and will remain a key hub for servicing its clients in Eastern Europe and the rest of the world. Getronics' Austrian, Czech and Polish operations employ approximately 270 people and had a turnover in 2005 of approximately EUR45million. About Getronics Headquartered in Amsterdam, Netherlands, Getronics N.V. -- http://www.getronics.com/-- designs, integrates and manages ICT infrastructures and business solutions for many of the world's largest global and local companies and organizations, helping them maximize the value of their information technology investments. Getronics has some 27,000 employees in over 30 countries and approximate revenues of EUR3 billion. The company has regional offices in Boston, Madrid and Singapore. Its shares are traded on Euronext Amsterdam. * * * As reported in Troubled Company Reporter - Asia Pacific Getronics N.V.'s 'B' long-term corporate credit rating, along with the 'CCC+' senior unsecured debt, 'B' bank loan, and '3' recovery ratings on CreditWatch with negative implications, where they had originally been placed on Jan. 19. The '3' recovery rating indicates Standard & Poor's expectation of meaningful (50%-80%) recovery of principal for secured lenders in the event of a payment default. As reported in TCR-AP, Moody's Investors Service downgraded Getronics' corporate family rating to B2 from B1 and placed the ratings on review for possible downgrade following the company's announcement of half year results showing a widening of net losses and fall in margins below the company's expectations. Concurrently the rating on the EUR100 million senior unsecured convertible Dutch bonds due 2008 has been downgraded to Caa1 from B3. INTERNATIONAL DRILLING: Creditors' Proofs of Debt Due on Sept. 8 ---------------------------------------------------------------- International Drilling Supply Pte Ltd notifies parties-in- interest of its intention to declare dividend to creditors. In order to share in the company's dividend distribution, creditors are required to submit their proofs of debt by September 8, 2006, to Official Receiver. The Official Receiver can be reached at: The Official Receiver's Office The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118 JIN-WEN INVESTMENT: Creditors' Meeting Slated for September 8 ------------------------------------------------------------- The creditors of Jin-Wen Investment Ltd will hold a meeting on September 8, 2006, at 10:00 a.m. At the meeting, creditors will be asked to: -- consider the appointment of a Committee of Inspection; -- nominate and authorize a member of the COI and the liquidator to open or close and operate one or more bank accounts or close any existing bank accounts. All bank accounts will be jointly operated by the nominated COI member and the Liquidator; and -- appoint a solicitor to assist the liquidator in his duties. The liquidator can be reached at: Lau Chin Huat c/o Blk 150A Mei Chin Road #02-00 Singapore 140150 REFCO INC: Chapter 7 Trustee Authorized to Wind Down Subsidiary --------------------------------------------------------------- The United States Bankruptcy Court for the Southern District of New York gave Albert Togut, the Chapter 7 trustee for Refco, LLC's estate, authority to complete a wind-down and dissolution of Refco Trading Services, LLC's business operations in accordance with Delaware laws. As reported in the Troubled Company Reporter on Aug. 4, 2006, Refco Trading was formed in 2003 when Refco, Inc., acquired United Kingdom-based MacFutures, a day-trading business engaging in commodity futures and options. Refco Trading followed a similar model to MacFutures and became Refco LLC's proprietary trading subsidiary. Most Refco Trading employees traded using accounts funded by Refco LLC, and only a few workers had any customer accounts. Like the Refco Trading proprietary accounts, any third-party customer accounts were settled on a daily basis to the extent that the business day would rarely, if ever, end with Refco Trading having any open trade positions, Scott E. Ratner, Esq., at Togut, Segal & Segal LLP, in New York, relates. Before the Petition Date, Refco Trading had over 100 employees and business operations in Montreal, Canada; Chicago, Illinois; and Miami, Florida. Refco Trading hired employees, trained them using a proprietary training system, and provided an account with which to trade. Most of the employees were paid a flat salary and traded on an account that was settled on a daily basis. The traders also received profit percentages of successful trades as additional remuneration. Consistent with their Acquisition Agreement, Man Financial, Inc., has hired most or all of Refco Trading's former employees. Refco Trading ceased all trading operations after the Petition Date. Refco Trading currently holds approximately US$1,600,000 in cash. The company's liabilities are uncertain, but Mr. Togut believes that there may be intercompany obligations. Refco Trading participated in an intercompany cash management system that paid the company's obligations to outside sources and repaid the obligations with intercompany receivables. Mr. Togut also believes that there may be liabilities to Canadian taxing authorities. Specifically, Mr. Togut proposes to direct certain actions as are necessary and appropriate to Refco Trading's dissolution and wind-down, including: (a) preparation of accounting reports, statements of receipts and disbursements and income statements; (b) preparation, signing, and filing of any tax returns in the United States or Canada; (c) appearances before any governmental authority as may be necessary to effectuate a legal wind-down; (d) adjudication and resolution of any claims asserted against Refco Trading and authorization for payment of any allowed claims from Refco Trading's assets to the extent required by law; and (e) performing any other related tasks as may be necessary to effectuate a proper and legal wind-down and dissolution. Mr. Togut also seeks to pay, without further Court order, all necessary costs and expenses incurred in connection with the wind-down, provided that any payments will be made from Refco Trading's assets, and not those of Refco LLC's estate. Furthermore, Mr. Togut asks Judge Drain for qualified immunity from personal liability for his actions in furtherance of Refco Trading's wind-down. According to Mr. Togut, Refco LLC's ownership interest in Refco Trading is an asset of its Chapter 7 estate. To the extent that Refco Trading is solvent, its remaining assets will inure to dissolution pursuant to Delaware laws is consistent with Mr. Togut's duty to "collect and reduce to money the property of the estate" under Section 704(a)(1) of the Bankruptcy Code. Considering that the scope of Refco Trading's assets and liabilities are unknown, Mr. Togut insists that he must wind down Refco Trading to determine whether there are any residual assets that will flow to Refco LLC's estate. 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). REFCO INC: Court Approval on Document Sharing Pact Sought --------------------------------------------------------- Refco, Inc., and its debtor-affiliates and Man Financial Inc. entered into an acquisition agreement, dated as of November 13, 2005, and related buyer transition services agreement and seller transition services agreement, in connection with the sale of Refco, LLC's futures commission merchant business to Man. The Court's orders authorizing the Debtors to enter into the Acquisition Agreement and the Transition Services Agreements establish obligations and procedures relating to Man and Albert Togut, the Chapter 7 trustee overseeing the liquidation of Refco LLC's estate, to obtain access to data, information and documents held by the other party relating to Refco LLC's business purchased by Man. Since the closing of the Sale, both the Refco LLC Trustee and Man have followed the protocol established by the Transition Services Agreements, and have reached other informal protocols, to obtain access to data, information and documents held by the other party, and both parties anticipate that they will continue to need access for the foreseeable future. The Transition Services Agreements are due to expire by their terms on Aug. 22, 2006 -- 270 days after the closing of the Sale on Nov. 25, 2005. Mr. Togut and Man have negotiated a more permanent arrangement for the parties to gain access to data, information and documents in the possession of the other party after the expiration of the Transition Services Agreements, and to formalize the protocols under which the parties have been operating. Mr. Togut seeks the Court's authority to enter into a facilities management agreement with Man. The salient terms of the Facilities Management Agreement are: (a) The Trustee will maintain documents and other information relating to Refco LLC's business prior to the Sale closing that were not part of the Acquired Assets and are in the possession or control of the Trustee, through the earlier of: (i) the date the Court enters an order or final decree closing Refco LLC's case; (ii) the date an Other Termination Event occurs; or (iii) the date the Court enters an order otherwise terminating the parties' obligations under the Facilities Management Agreement; (b) The Trustee will provide Man access to the Refco Records for: (i) the purpose of Man responding to any Information Request directed to Man; (ii) any other purpose reasonably related to Man's operation of the business and assets acquired from Refco LLC and its affiliates. The Trustee will retrieve and provide to Man electronically copies of Refco e-mail upon written request from Man. (c) Man will maintain documents and other information relating to Refco LLC's business that were part of the Acquired Assets and are in the possession or control of Man through the Termination Date; (d) Man will provide the Trustee access to the Man Records for purposes of the Trustee: (i) responding to any Information Request directed to the Trustee or Refco LLC; or (ii) otherwise accessing, reviewing, retrieving or photocopying Man Records as the Trustee determines is necessary; and (e) Man will provide "Information Retrieval Services" to the Trustee to enable him to: (i) respond to any Information Request directed to the Trustee or Refco LLC; or (ii) otherwise access, review, retrieve or photocopy Records as the Trustee determines is necessary. Each party will bear its own costs in obtaining access to the party's Records. However, Refco LLC will reimburse Man for the costs arising from Man's employees or independent contractors performing Information Retrieval Services at the effective hourly rates of the employees or contractors performing those services. Man will reimburse Refco LLC for costs arising from the Chapter 7 Debtor's employees retrieving and providing electronic copies to Man of Refco E-mail at the effective hourly rates of the employees performing those services. Jerry L. Switzer, Esq., at Jenner & Block LLP, in Chicago, Illinois, explains that the Refco LLC Trustee will require access to the Records for purposes of responding to Information Requests served on the Trustee or Refco LLC, and otherwise administering the Chapter 7 Debtor's estate for the foreseeable future. Mr. Switzer notes that Mr. Togut needs Man to perform the Information Retrieval Services because Refco LLC no longer has any employees, except to the limited extent that employees of the Chapter 11 Debtors are allocated on a part time basis to the Chapter 7 Debtor. 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). =============== T H A I L A N D =============== BANGKOK BANK: Moody's Lifts Financial Strength Rating to D+ ----------------------------------------------------------- Moody's Investors Service has upgraded on August 29, 2006, Bangkok Bank's bank financial strength rating to D+ from D. The bank's debt and deposit ratings are unaffected. The outlook for all ratings is stable. The upgrade concludes the revision in the outlook for BBL to positive from stable. "The upgrade of the BFSR reflects BBL's healthy capital base, improvements in credit quality, and increases in profitability," says Leo Wah, a Moody's Assistant Vice President/Analyst. Moody's considers both BBL's regulatory and economic capital base as satisfactory. Thanks to the reduction in non-performing loans -- from 25.8% at end-2002 to the current level 11.3% -- and the recovery in profitability, the bank has built up its capital base, leading to more than a tripling of its capital since 2001. As such, BBL's regulatory capital level, including the core Tier-1 portion, remains acceptable despite the moderate increase in loans in recent years. Based on Moody's estimates, it also possesses satisfactory economic capital -- adjusted for possible additional loan losses --, and which would support not only the expansion in its loan book but also provide a cushion against any rapid rise in NPL. But the latter is unlikely under Moody's current assessment of the Thai economy. "BBL's profitability, defined as risk-adjusted pre-provision profit, has risen gradually over the past few years due to the widening in net interest margins and continued increases in recurring non-interest income," says Wah. At the same time, further improvements in profitability would likely hinge on the bank's strategy and ability to make use of its under utilized balance sheet. Its current gross loan-to- deposit ratio of 77% is significantly below the average of 93% for the other three large Thai banks, providing room for high volumes and interest margins. The upgrade also recognizes that BBL has taken appropriate steps to rectify the control problem in its New York branch that caused the US Office of the Comptroller of the Currency to issue a cease-and-desist order against certain branch activities. The impact on business is believed to have been insignificant. Moody's will monitor its internal controls going forward, although the incident is considered as an isolated one. For future rating actions, Moody's will focus on: 1) resolution of its lingering NPLs; 2) how it enhances profitability by taking advantage of its under-utilized balance sheet; and 3) its internal control standards. But as the rating agency does not expect such performances to change drastically over the next few years it has therefore considered the stable as outlook. * * * Headquartered in Bangkok -- http://www.bangkokbank.com/-- BBL is Thailand's largest bank, with total assets of THBB1.498 trillion (US$39 billion) at end-June 2006. KASIKORNBANK PCL: Moody's Raises Financial Strength Rating to D+ ---------------------------------------------------------------- Moody's Investors Service has upgraded on augusut 29, 2006, Kasikornbank Public Company Limited's bank financial strength rating to D+ from D. The bank's debt and deposit ratings are unaffected by this action. The outlook for all ratings is stable. The upgrade concludes the revision in the outlook for KBank to positive from stable. "The upgrade of the BFSR reflects KBank's healthy capital base, improvements in its credit quality, and increases in its profitability," says Leo Wah, a Moody's Assistant Vice President/Analyst. Moody's consider both its regulatory and economic capital base as satisfactory. Thanks to the reduction in its non-performing loans and the recovery in its profitability, the bank has built up its capital base, leading to more than a tripling in its capital since 2001. Furthermore, despite solid lending growth in recent years, its regulatory capital level, including the core Tier-1 portion, remains acceptable. Based on Moody's estimates, the bank also possesses satisfactory economic capital -- adjusted for possible additional loan losses --, and which would support not only the expansion of its loan book, but also provide a cushion against any rapid increase in NPL. But the latter is unlikely under Moody's current assessment of the Thai economy. "KBank's profitability, defined as risk-adjusted pre-provision profit, rose rapidly over the past few years due to the widening of net interest margins, management's efforts to boost its fee income, and a controlled cost base," says Wah. "Further improvements in profitability would likely hinge on KBank's growing exposure to small- and medium-sized enterprises, which could however be sensitive to economic development, and its ability to enhance credit quality," adds Wah. For future rating actions, Moody's will focus on: 1) possible further improvement in KBank's economic solvency through NPL resolution; and 2) its ability to remain one of the leaders in risk management in the Thai banking sector, which has seen continual improvements in this area. But as the rating agency does not expect such performances to change drastically over the next few years, it has therefore considered the stable as outlook. * * * Kasikorn Bank Public Company Limited -- http://www.kasikornbank.com/-- otherwise known as the Thai Farmers Bank, was established in 1945 with registered capital of THB5 million and has been listed on the Stock Exchange of Thailand since 1976. It is Thailand's fourth largest bank, with total assets of THB844 billion (US$22 billion) as at end June 2006. * Second Quarter Reflects Increase in NPL's ------------------------------------------- New and relapsed non-performing loans in the banking sector picked up in the second quarter of the year, the Bangkok Post reports, quoting Tumnong Dasri, director for the Bank of Thailand's corporate debt restructuring advisory department. Based on BOT's data, non-performing loans at the end of June 2006 totaled THB484.27 billion, or 8.22% of total loans, compared with THB469.2 billion or 7.9% at the end of March. Moreover, of the total, new bad-debt cases totaled THB42.2 billion, compared with THB33.6 billion in the first quarter. Relapsed cases, representing previously restructured debt that was in default again, totaled THB22.8 billion, compared with THB13.4 billion in the previous quarter. Mr. Tumnong told The Nation that the increase in NPLs stemmed partly from debtors' inability to repay their loans due to the current economic conditions. Of the total NPLs in the second quarter, cases worth THB113.3 billion had completed debt restructuring, compared with THb109.6 billion in the first quarter, BOT data shows. In addition, accounts totaling THB166 billion were under debt restructuring in the second quarter, compared with THB156 billion in the previous quarter. Loans totaling THB87.18 billion were in the court process in the second quarter, compared with THB83.1 billion in the previous quarter. Another THB117 billion in loans were in the foreclosure process, up from THB120.3 billion in the first quarter. Meanwhile, Mr. Tumnong said the Corporate Debt Restructuring Committee, set up in 1998 to facilitate restructuring of multi- creditor loans, would be dissolved on Oct 1, 2006. The Post relates that over the past eight years, CDRAC has facilitated the restructuring of THB1.5 trillion worth of loans, or 80% of its target. Of the total amount, THB1.4 trillion belonged to the 1998-2002 period, THB6.4 billion were "walk-in" cases starting from 2003, THB10.74 billion were restructured under debtor-creditor/inter- creditor agreements and THB422 million forwarded by related agencies. BOT governor MR Pridiya-thorn Devakula previously said NPLs would be reduced to 2% by the end of next year after Bangkok Commercial Asset Management Co was allowed to buy out non- performing assets from commercial banks. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- September 8-9, 2006 American Bankruptcy Institute International Insolvency Symposium London, England Web site: http://www.turnaround.org/ September 13, 2006 Turnaround Management Association - Australia Networking Function Australia Parramatta, Australia Telephone: 0438-653-179 e-mail: tma_aust@bigpond.net.au September 21, 2006 Insolvency Practitioners Association Of Australia Study Group Meetings Chartered Accountants House, Sydney, Australia Telephone: 9416-2395 e-mail: amanda_taylor@aapt.net.au September 26-27, 2006 American Bankruptcy Institute Airline Restructuring Helmsley Park Lane Hotel, New York, NY Telephone: 1-703-739-0800 Web site: http://www.abiworld.org/ October 5, 2006 Turnaround Management Association - Australia UTS Fundamentals of Turnaround Management Australia Mecure Hotel - Haymarket Telephone: 0438-653-179 e-mail: tma_aust@bigpond.net.au October 11, 2006 INSOL INSOL Lenders, Australia Technical Day Brisbane, Australia Web site: http://www.insol.org/ October 11-14, 2006 Turnaround Management Association - Australia 2006 Annual Convention JW Marriott Grande Lakes, Orlando, FL, USA e-mail: livaldi@turnaround.org October 11, 2006 Turnaround Management Association - Australia Professional Development Meeting Australia TBA Telephone: 0438-653-179 e-mail: tma_aust@bigpond.net.au October 12, 2006 Insolvency Practitioners Association Of Australia IPAA National Conference 2006 Stamford Plaza, Brisbane City, Queensland, Australia Telephone: 07-3367-0500 e-mail: corinne.templeton@invigorate.com.au October 12, 2006 Turnaround Management Association - Australia UTS Fundamentals of Turnaround Managment Australia Melbourne, Australia Telephone: 0438-653-179 e-mail: tma_aust@bigpond.net.au October 19, 2006 Insolvency Practitioners Association Of Australia Study Group Meetings Chartered Accountants House, Sydney, Australia Telephone: 9416-2395 e-mail: amanda_taylor@aapt.net.au October 31 - November 1, 2006 International Women's Insolvency & Restructuring Confederation IWIRC Annual Conference San Francisco, CA, USA Web site: http://www.iwirc.com/ November 7-8, 2006 International Monetary Fund and the Financial Supervisory Service Macroprudential Supervision: Challenges for Financial Supervisors Seoul, South Korea Telephone: 82-2-3771-5114 Web site: http://www.fss.or.kr/ November 9-10, 2006 Turnaround Management Association - Australia TMA Australia National Conference Australia TBA Telephone: 0438-653-179 e-mail: tma_aust@bigpond.net.au November 15, 2006 LI TMA Formal Event TMA Australia National Conference Long Island, New York, USA Web site: http://www.turnaround.org/ November 16, 2006 Insolvency Practitioners Association of Australia Study Group Meetings Chartered Accountants House, Sydney, Australia Telephone: 9416-2395 e-mail: amanda_taylor@aapt.net.au December 13, 2006 Turnaround Management Association - Australia Christmas Function Australia GE Commercial Finance, George Street, Sydney, Australia Telephone: 0438-653-179 e-mail: tma_aust@bigpond.net.au February 2007 American Bankruptcy Institute International Insolvency Symposium San Juan, Puerto Rico Telephone: 1-703-739-0800 Web site: http://www.abiworld.org March 27-31, 2007 Turnaround Management Association - Australia 2007 TMA Spring Conference Four Seasons Las Colinas, Dallas, TX, USA e-mail: livaldi@turnaround.org April 11-15, 2007 American Bankruptcy Institute ABI Annual Spring Meeting J.W. Marriott, Washington, DC, USA Telephone: 1-703-739-0800 Web site: http://www.abiworld.org/ October 16-19, 2007 Turnaround Management Association - Australia TMA 2007 Annual Convention Boston Marriott Copley Place, Boston, MA, USA e-mail: livaldi@turnaround.org March 25-29, 2008 Turnaround Management Association - Australia TMA Spring Conference Ritz Carlton Grande Lakes, Orlando, FL, USA e-mail: livaldi@turnaround.org October 28-31, 2008 Turnaround Management Association - Australia TMA 2008 Annual Convention New Orleans Marriott, New Orleans, LA, USA e-mail: livaldi@turnaround.org October 5-9, 2009 Turnaround Management Association - Australia TMA 2009 Annual Convention JW Marriott Desert Ridge, Phoenix, AZ, USA e-mail: livaldi@turnaround.org October 4-8, 2010 Turnaround Management Association - Australia TMA 2010 Annual Convention JW Marriot Grande Lakes, Orlando, FL, USA e-mail: livaldi@turnaround.org Beard Audio Conferences Coming Changes in Small Business Bankruptcy Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Audio Conferences CD Beard Audio Conferences Distressed Real Estate under BAPCPA Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Changes to Cross-Border Insolvencies Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Healthcare Bankruptcy Reforms Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Calpine's Chapter 11 Filing Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Changing Roles & Responsibilities of Creditors' Committees Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Employee Benefits and Executive Compensation under the New Code Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Dana's Chapter 11 Filing Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Reverse Mergers-the New IPO? Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Fundamentals of Corporate Bankruptcy and Restructuring Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences High-Yield Opportunities in Distressed Investing Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Privacy Rights, Protections & Pitfalls in Bankruptcy Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences When Tenants File -- A Landlord's BAPCPA Survival Guide Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Clash of the Titans -- Bankruptcy vs. IP Rights Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ ********* 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 ***