/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/060908.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 Friday, September 8, 2006, Vol. 9, No. 179 Headlines A U S T R A L I A & N E W Z E A L A N D A1 SPECIAL TRANSPORT: Commences Wind-Up of Operations ABORIGINAL AIR: Gov't Accuses Administrator of Alarmist Comments AICKIN STORAGE: To Declare First and Final Dividend on Sept. 27 ALFA HOMES: Court to Hear Liquidation Bid on September 11 AN YING: Court Appoints Joint Liquidators BECKER ENGINEERING: Faces Liquidation Proceedings BEDROCK BAR: Creditors' Proofs of Claim Due on September 14 BLAZER HOSPITALITY: Members and Creditors to Convene on Sept. 22 BURRABOI PASTORAL: Placed Under Members' Voluntary Liquidation BUSINESS EVOLUTION: Liquidator to Present Wind-Up Report C.O.S. ENTERPRISE: Inability to Pay Debt Prompts Wind-Up CONVICTION DEVELOPMENTS: Appoints Receivers and Managers DANCEY & DONOHOE: Enters Wind-Up Proceedings E-GISTICS.COM: Members and Creditors Meeting Set on Sept. 25 FABRICARE INTERNATIONAL: Liquidation Bid Hearing Set on Nov. 2 FARROW JAMIESON: Court to Hear Liquidation Petition on Sept. 14 FELTEX CARPETS: No Further Drawdown Against Facilities, ANZ Says FOYER CATERING: Members Resolve to Close Business GITCO PTY: Undergoes Liquidation Proceedings GRIMES KENT: Creditors' Proofs of Debt Due on September 27 HIH INSURANCE: Former Secretary Faces Four Charges for Fraud INGESTRE CORPORATE: Appoints Official Liquidator INSTANT HAIR: Final Meeting Slated for September 22 MACQUARIE FILM: Members Agree to Wind Up Operations MRRG LIMITED: Court Appoints Crichton Horne as Joint Liquidators MWM MANAGEMENT: Liquidator to Present Wind-Up Report NORTHSTAR DEVELOPMENT: Supreme Court Orders Wind Up PA & TASH: Court to Hear CIR's Liquidation Bid on Nov. 9 PANDORA PASTORAL: Members Opt to Shut Down Business PARWAY INVESTMENTS: Placed Under Voluntary Liquidation PIXEL-FX PTY: Liquidator Whitton to Present Wind-Up Report PRIMELIFE CORPORATION: PrimeLiving Trust Still Expanding in NSW RODTRISAN PTY: Creditors Must Prove Debts by September 27 S-TECH ENGINEERING: Members Resolve to Wind Up Business SIMPLY FRENCH: Final Meeting Set on September 25 SKY HIRE: Creditors Must Prove Debts by September 12 SOUTHERN TRACTORS: Shareholders Opt for Voluntary Liquidation THE NEW MANAGEMENT: Creditors Appoint Joint Liquidators TINDERLEY PTY: To Declare First and Final Dividend on Sept. 27 TOP GUN FLIGHTS: Names Worrell and Lane as Joint Liquidators VICALU PTY: Members Agreed to Close Operations ZENAS SHARETRADING: Liquidator Duncan to Give Wind-Up Report ZOLMARI PTY: Members and Creditors to Convene on September 12 C H I N A & H O N G K O N G ACW CONSULTING: Members Resolve to Wind-Up Operations ART VISION: Joint Liquidators Cease to Act for Company ASIAN SERVICES: Members' Final Meeting Slated for September 28 BESTWIN TEXTILE: Creditors Must Prove Debts by September 24 DAISYFIELD LTD: Members Pass Resolution to Wind Up Operations DRACCO INTERNATIONAL: Members' Final Meeting Slated for Sept. 29 FORTUNE MIND: Joint and Several Liquidators Named FUSION DESIGN: Joint Liquidators Cease to Act for Company GOLDEN TOP: Creditors Meeting Scheduled on September 18 GREAT CHINA: Posts US$2.5-Million Net Loss in First Half IPCO CONSTRUCTORS: Members Pass Resolution to Wind Up Operations KIN TAI: Creditors Must Prove Debts by September 30 LEAD SUPPLY: Shareholders Appoint Chiu Chi Kin as Liquidator LINK GARMENT: Final Members' Meeting Set on September 29 MIZUHO CORPORATE: Final Members Meeting Set on September 28 MULTI-POINT: Lawrence Ceases to Act for the Company NUCLEAR CONSTRUCTION: Appoints Joint and Several Liquidators OUTMATCHING TELECOM: Creditors First Meeting Fixed on Sept. 8 PARK MANAGEMENT: Liquidator Steps Aside RIGHTLINK SHIPPING: Members' Final Meeting Scheduled for Sept.25 SHERECON PROPERTIES: Members' Final Meeting On October 6 SKYCITY UNIVERSAL: Appoints Official Liquidator SKY RAINBOW: Members Final Meeting Set for September 26 SOUNDTEX INTERNATIONAL: Creditors Must Prove Debts by Sept. 30 VICLAND LIMITED: Liquidator Ceases to Act for the Company I N D I A FORD MOTOR: Names Alan Mulally as President and CEO FORD MOTOR: Looks at New Business Models to Ensure Recovery FORD MOTOR: S&P Ratings Remain on Watch Neg with New CEO GENERAL MOTORS: Renault Taps BNP Paribas for Three-Way Tie-Up ICICI BANK: Unveils 12th AGM Results READER'S DIGEST: Moody's Places Ratings on Review for Downgrade I N D O N E S I A BANK MANDIRI: Takes Errant Debtors to Court BANK PERMATA: Consortium Buys Additional 26% Stake INCO LTD: CVRD Gets Canadian & U.S. Antitrust OK for Inco Offer INCO LTD: Terminates Merger Agreement with Phelps Dodge NORTEL NETWORKS: Selling UMTS Business to Alcatel for US$320MM PAKUWON JATI: Raylight Investment Gets 323 Million Shares PAKUWON JATI: UBS Hired As Bookrunner for High-Yield Bond VERITAS DGC: S&P Places 'BB' Credit Rating on Negative Watch VERITAS DGC: Inks Definitive Merger Agreement with CGG J A P A N BANCO BRADESCO: Fitch Ups Foreign Currency Rating to BB from BB- BANCO BRADESCO: Fitch Ups Local Currency Rating to F3 from B DAIEI INCORPORATED: Aims to Cut Outstanding Debts by 50% METALDYNE CORP: Moody's Cuts B3 Corporate Family Rating to Caa1 METALDYNE COMPANY: S&P Puts B Rating on US$574M Debt Facilities XM SATELLITE: SEC Wants a Peek Into Subscriber Targets and Costs K O R E A LYONDELL CHEMICAL: Citgo Buy Cues Fitch to Affirm Ratings LYONDELL CHEMICAL: Tenders Offer for 9.625% Ser. A Secured Notes NOVELIS INC: Spin-Off Prompts Moody's to Downgrade Ratings M A L A Y S I A ANTAH HOLDINGS: Court Grants Restraining Order ELBA HOLDINGS: Seeks to Regularize Financial Condition ELBA HOLDINGS: June 30 Balance Sheet Reveals Insolvency ELBA HOLDINGS: June 30 Public Spread Level Pegged at 62.89% ELBA HOLDINGS: Defaults on Loan Facilities METROPLEX BERHAD: Needs to Submit Revamp Plan by December 8 NORTH BORNEO: Auditors Still Working on 2005 Annual Accounts PAXELENT CORPORATION: Has Four Months to Submit Rehab Plan TALAM CORPORATION: Securities Resume Trading TENAGA NASIONAL: Fully Redeems MYR600M IRUF WEMBLEY INDUSTRIES: SC Denies Time Extension Request P H I L I P P I N E S BACNOTAN CONSOLIDATED: Subscribes to 791,871,100 Phinma Shares BANCO FILIPINO: Shares Trading Still Suspended BAYAN TELECOMMUNICATIONS: To Conduct Educational IPTV Trials * S&P Rates New Global Bonds Offered for Exchange 'BB-' * End-August Forex Reserves Hit Record US$21.427 Billion S I N G A P O R E ADVANCED SYSTEMS: Welcomes New CEO and CFO GETRONICS N.V.: Banks Cancel EUR30-Mln Cut on Credit Facility ISOFT GROUP: FY2006 Net Losses Widen to GBP382.2 Million COLLINS & AIKMAN: 10-3/4% Bonds' Price Plummets to All-Time Low REFCO INC: Panel Inks Deal with E&Y on Document Production T H A I L A N D PAE THAILAND: Spins with THB7 Mil. Net Profit in 2nd Quarter '06 * Large Companies With Insolvent Balance Sheets - - - - - - - - ============================================ A U S T R A L I A & N E W Z E A L A N D ============================================ A1 SPECIAL TRANSPORT: Commences Wind-Up of Operations ----------------------------------------------------- At a general meeting held on August 24, 2006, the members of A1 Special Transport Pty Limited resolved to voluntarily wind up the company's operations and appoint Bruce Gleeson and Schon G. Condon as joint liquidators. The Joint Liquidators can be reached at: Bruce Gleeson Schon G. Condon RFD Jones Condon Chartered Accountants Level 1, 34 Charles Street Parramatta, New South Wales Australia Telephone:(02) 9893 9499 ABORIGINAL AIR: Gov't Accuses Administrator of Alarmist Comments ---------------------------------------------------------------- The South Australian Government has accused the administrator of Aboriginal Air Services -- Austin Taylor -- of making "alarmist" comments, ABC News Online reports. The report relates that the airline operates patient transfers from remote communities and its administrator says people could die as a direct result of the company's liquidation. ABC News says that Mr. Taylor has accused the South Australian Government of ignoring an unfolding medical crisis. According to Mr. Taylor, negotiations have begun with the Northern Territory Government for assistance in insuring that flights to the communities continue. However, Mr. Taylor noted that he has not received a response from the South Australian Government, ABC News relates. The report cites South Australia's Indigenous Affairs Minister Jay Weatherill as saying that the Government is working with the Commonwealth and one of the airlines involved to minimize disruption to communities. ABC News further relates that the Federal Government will look at alternative plans if any of the Commonwealth subsidized services stop. About Aboriginal Air Aboriginal Air Services -- http://www.aboriginalair.com.au/-- is a corporation, which runs four air companies: 1. Ngaanyatjarra Air servicing the Western communities through to Kalgoorlie; 2. Ngurratjuta Air operating North and West of Alice Springs; 3. PY Air is supplying communities in the northern part of South Australia; and 4. Janami Air, the RPT route to Katherine Via communities Aboriginal Air Services also has its own maintenance arm, Aboriginal Aircraft Maintenance Services. The Air and Maintenance companies are owned and controlled by Aboriginal Corporations. The Troubled Company Reporter - Asia Pacific reported on September 6, 2006, that the board of directors of Aboriginal Air Services voted to bring in an administrator. Aboriginal Air has never made a profit in its 20-year history and has been propped up by its shareholders -- four Aboriginal groups from central Australia -- with large management fees, the TCR-AP said citing a report from The Australian. AICKIN STORAGE: To Declare First and Final Dividend on Sept. 27 --------------------------------------------------------------- Aickin Storage Pty Ltd will declare the first and final dividend for its creditors on September 27, 2006, to the exclusion of those who cannot prove their claims on that day. The liquidator can be reached at: Richard Judson Members Voluntarys Pty Ltd 1st Floor, 10 Park Road Cheltenham 3192 Australia ALFA HOMES: Court to Hear Liquidation Bid on September 11 --------------------------------------------------------- The High Court of Rotorua will hear a liquidation petition filed against Alfa Homes 2003 Ltd on September 11, 2006, at 10:00 a.m. Carters -- a division of Carter Holt Harvey Ltd -- filed the petition with the Court on July 25, 2006. The Plaintiff's Solicitor can be reached at: Karl Robinson Edmund Lawler & Associates P.O. Box 25-931, St Heliers Auckland, New Zealand AN YING: Court Appoints Joint Liquidators ----------------------------------------- The High Court of Auckland ordered the appointment of Stephen Mark Lawrence and Anthony John McCullagh to act as joint and several liquidators for An Ying International Financial Ltd on August 24, 2006. The company's creditors are, therefore, required to prove their debts by September 26, 2006, to the appointed Liquidators. Failure to show proofs of debt will exclude a creditor from participating in any distribution the company will make. On August 21, 2006, the Troubled Company Reporter - Asia Pacific reported that the company was facing a liquidation petition filed by J.M.T. Wells on June 1, 2006. The petition was heard on August 24, 2006. The Joint Liquidators can be reached at: Stephen Mark Lawrence Horwath Corporate (Auckland) Ltd P.O. Box 3678, Shortland Street Auckland 1015 New Zealand Telephone: (09) 306 3440 Facsimile: (09) 302 0536 BECKER ENGINEERING: Faces Liquidation Proceedings ------------------------------------------------- A liquidation petition filed against Becker Engineering Ltd -- formerly Becker and Lyall Engineering Ltd -- will be heard before the High Court of Auckland on November 9, 2006, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition with the Court on August 11, 2006. The Solicitor for the Plaintiff can be reached at: E. M. Duncan-Sittlington Inland Revenue Department 1 Bryce Street, Hamilton New Zealand Telephone: (07) 959 0471 BEDROCK BAR: Creditors' Proofs of Claim Due on September 14 ----------------------------------------------------------- Creditors of Bedrock Bar and Casino Ltd are required to file their proofs of claim to Joint Liquidators Richard Brian Burge and Edward Christian Jansen by September 14, 2006. Failure to prove their debts will exclude a creditor from sharing in any distribution the company will make. The Joint Liquidators can be reached at: Richard Burge Sherwin Chan & Walshe Chartered Accountants & Business Advisers P.O. Box 30-568, Lower Hutt New Zealand Telephone: (04) 569 9069 BLAZER HOSPITALITY: Members and Creditors to Convene on Sept. 22 ---------------------------------------------------------------- The members and creditors of Blazer Hospitality International Pty Limited will convene on September 22, 2006, at 10:00 a.m., to: -- receive the liquidator's accounts on the company's wind-up proceedings and property disposal exercises; -- approve the early destruction of all books and records of the company; and -- discuss other business that may be lawfully brought about on the meeting. The liquidator can be reached at: S. J. Sherman Ferrier Hodgson Chartered Accountants Level 13, 225 George Street Sydney, New South Wales 2000 Australia BURRABOI PASTORAL: Placed Under Members' Voluntary Liquidation -------------------------------------------------------------- At a general meeting held on August 22, 2006, the members of Burraboi Pastoral Company agreed to voluntarily liquidate the company's business and distribute the proceeds of its assets disposal. Subsequently, Brian McCleary was appointed as liquidator. The Liquidator can be reached at: Brian McCleary Brian McCleary & Co Accountants 126 End Street Deniliquin, New South Wales 2710 Australia BUSINESS EVOLUTION: Liquidator to Present Wind-Up Report -------------------------------------------------------- Members and creditors of Business Evolution Pty Limited will convene on September 25, 2006, at 10:00 a.m. During the meeting, Liquidator McDonald will present the report on the company's wind-up proceedings and will ask the members and creditors to empower him to destroy the company's books and records. The Liquidator can be reached at: Geoffrey McDonald c/o Hall Chadwick Level 29, 31 Market Street Sydney, New South Wales 2000 Australia C.O.S. ENTERPRISE: Inability to Pay Debt Prompts Wind-Up -------------------------------------------------------- The members and creditors of C.O.S. Enterprise Pty Limited held a general meeting on August 25, 2006, and passed a special resolution to wind up the company's operations due to its inability to pay outstanding debts. The liquidator can be reached at: Richard Albarran c/-o Hall Chadwick Level 29, 31 Market Street Sydney, New South Wales 2000 Australia CONVICTION DEVELOPMENTS: Appoints Receivers and Managers -------------------------------------------------------- First Capital Services Limited appointed Ginette Muller and John Park on August 9, 2006, as joint and several receivers and managers of Conviction Developments Pty Ltd. The Joint and Several Receivers and Managers can be reached at: Ginette Muller KordaMentha (Queensland) 22 Market Street Brisbane, Queensland 4000 Australia Telephone:(07) 3225 4900 Facsimile:(07) 3225 4999 DANCEY & DONOHOE: Enters Wind-Up Proceedings -------------------------------------------- On August 22, 2006, the members of Dancey & Donohoe Company convened and passed a special resolution to voluntarily wind up the company's operations and distribute the proceeds of its assets disposal. Subsequently, Brian McCleary was appointed as liquidator. The Liquidator can be reached at: Brian McCleary Brian McCleary & Co Accountants 126 End Street Deniliquin, New South Wales 2710 Australia E-GISTICS.COM: Members and Creditors Meeting Set on Sept. 25 ------------------------------------------------------------ The members and creditors of E-Gistics.com Pty Limited will hold a final meeting on September 25, 2006, at 12:00 p.m., to receive accounts of the company's wind-up proceedings and property disposal exercises from Liquidator Adrian Stewart Duncan. The Liquidator can be reached at: Adrian Stewart Duncan c/o Hall Chadwick Level 29, 31 Market Street Sydney, New South Wales 2000 Australia FABRICARE INTERNATIONAL: Liquidation Bid Hearing Set on Nov. 2 -------------------------------------------------------------- On July 27, 2006, the Commissioner of Inland Revenue filed before the High Court of Auckland a petition to liquidate Fabricare International (NZ) Ltd. The petition will be heard on November 2, 2006, at 10:00 a.m. The Plaintiff's Solicitor can be reached at: P. L. Windsor-Knaap Inland Revenue Department 1 Bryce Street, Hamilton New Zealand Telephone: (07) 959 0471 FARROW JAMIESON: Court to Hear Liquidation Petition on Sept. 14 --------------------------------------------------------------- A petition to liquidate Farrow Jamieson Ltd will be heard before the High Court of Auckland on September 14, 2006, at 10:45 a.m. The Commissioner of Inland Revenue filed the petition with the Court on June 28, 2006. The Plaintiff's Solicitor 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 FELTEX CARPETS: No Further Drawdown Against Facilities, ANZ Says ---------------------------------------------------------------- The ANZ Bank advised Feltex Carpets Limited that it will not permit any further drawdown against the company's facilities this week. The position is to be reviewed by the ANZ Bank today. Feltex notes that it is able to make payments from its cash balances but this means that payments to some suppliers may be deferred. As previously advised by Directors, the pressure the Company is experiencing relates to resolving the debt levels of the company and does not reflect on the current trading performance which is strong. August sales exceeded budget and the forward sales order book remains healthy. Godfrey Hirst will not Submit Offer As reported in the Troubled Company Reported - Asia Pacific on September 6, 2006, Godfrey Hirst said that is not interested in getting involved in a bidding war for the assets of Feltex, accordingly Godfrey Hirst will not be signing formal documentation with Feltex on the current terms of the draft Sale and Purchase Agreement. A recent statement from Feltex disclosed that Godfrey Hirst has confirmed that it will not be submitting an offer. Craig and Graeme Turner have advised that they will make their offer by the stipulated deadline. About Feltex Established over 50 years ago, Feltex Carpets Limited -- http://www.feltex.com/-- has built a reputation for being one of the world's leading manufacturers of superior-quality carpet. The Feltex operation includes a wool scouring plant, six spinning mills, three tufted carpet mills, a woven carpet mill and offices in New Zealand, Australia and the United States. The Company also leads the way in exports, with customers throughout South East Asia, Japan, the United States, the Middle East and other key world markets. Feltex listed on the local stock exchange in mid-2004 in a NZ$254-million initial public offering -- the year's largest in New Zealand. However, the Company fell short of its prospectus earnings projections, reporting a net profit of NZ$11.8 million in the fiscal year to June 30, 2005, about half the forecast NZ$23.9 million. The Company has struggled with losses and earnings downgrades, flogging sales, and a dipping share price. The Company closed plants and in October 2005, axed 235 jobs, mostly in Australia, and by 2006, abandoned merger talks with Australian competitor Godfrey Hirst after it suggested that the apparent "white knight" investor was more interested in a reverse takeover. Godfrey Hirst later sold out its nearly 9% stake in the Company. In February 2006, Feltex reported a first-half after tax loss of NZ$11.83 million, down almost 200% compared with the net loss in the previous year. The Company is currently undergoing negotiations for a capital raising exercise, proceeds of which will be used to ease its NZ$128-million debt to ANZ Bank. FOYER CATERING: Members Resolve to Close Business ------------------------------------------------- Members of Foyer Catering Pty Limited resolved on August 17, 2006, to close the company's business. Creditors subsequently appointed Neil Robert Cussen and Gavin Charles Morton as joint liquidators at a separate meeting held later that day. The Joint Liquidators can be reached at: Neil Robert Cussen Gavin C. Morton Horwath Sydney Partnership Level 10, 1 Market Street Sydney, New South Wales 2000 Australia GITCO PTY: Undergoes Liquidation Proceedings -------------------------------------------- On August 23, 2006, the members of Gitco Pty Limited held a general meeting and agreed to voluntarily liquidate the company's business. In this regard, Michael Edward Slaven was appointed as liquidator. The Liquidator can be reached at: Michael Edward Slaven Rangott Slaven Hundy Level 3, Engineering House 11 National Circuit Barton, Australian Capital Territory 2600 Australia GRIMES KENT: Creditors' Proofs of Debt Due on September 27 ---------------------------------------------------------- Grimes Kent St. Garage Pty Ltd will declare its first and final dividend to creditors on September 27, 2006, to the exclusion of those who cannot prove their claims on that day. The liquidator can be reached at: Richard Judson Members Voluntarys Pty Ltd 1st Floor, 10 Park Road Cheltenham 3192 Australia HIH INSURANCE: Former Secretary Faces Four Charges for Fraud ------------------------------------------------------------ On September 6, 2006, the former secretary of HIH Insurance Limited, Frederick Lo, appeared in the Downing Centre Local Court in Sydney, New South Wales, on four charges arising from an investigation by the Australian Securities and Investments Commission. Mr. Lo is charged with: 1) making a materially false or misleading statement to officers of Westpac Banking Corporation with the intention of obtaining a financial advantage for FAI Insurance Limited on May 26, 2000. This false statement related to the availability of consolidated accounts of the FAI Group for the financial period ending June 20, 1999. These accounts were required to comply with a covenant under AU$150 million Medium Term Note Program between FAI Insurances Ltd and certain note holders. ASIC alleges that in making the false statement, Mr. Lo assisted FAI in avoiding the risk of the note holders calling in amounts owing under FAI Notes; 2) failing to properly exercise his powers and discharge his duties for a proper purpose as an officer of HIH by signing a letter on 19 October 2000 on behalf of HIH to Note Holders under the AU$150 million FAI Medium Term Note Program. This letter misleadingly stated HIH managed FAI so that it complied with its obligations under the Note Program, despite being in breach of certain fundamental obligations; 3) acting with reckless disregard in making false or misleading statements to the Australian Prudential Regulation Authority by not disclosing, contrary to the Insurance Act, that assets of CIC Insurances Ltd were pledged to secure the liabilities of entities other than CIC between May 12, 1999, and May 24, 2000; and 4) acting with reckless disregard in the making of a false or misleading statement on November 22, 1999, to APRA that CIC had exceeded the minimum solvency requirements of the Insurance Act by AU$17 million, even when there was a deficiency of AU$111 million. The matter was transferred to the Supreme Court for mention on October 6, 2006. The Commonwealth Director of Public Prosecutions is prosecuting the matter. About HIH Insurance HIH Insurance Limited -- the holding company of the HIH Group -- was a publicly listed company in Australia. Prior to its collapse, the HIH Group was known as the second largest general insurer in Australia, and had operations in many other countries. On March 15, 2001, the HIH Group failed, with a deficiency now believed to be between AU$3.6 billion and AU$5.3 billion. Provisional liquidators were appointed to HIH Insurance Limited and many of its subsidiaries. Other insolvency practitioners were appointed to various group companies incorporated in other parts of the world. In August 2001, the major Australian companies in the HIH Group were placed into liquidation. On March 29, 2006, meetings of the creditors of the eight companies in the HIH Insurance Group approved the Australian Schemes of Arrangement for those companies. Moreover, separate meetings of creditors of four HIH Insurance Group companies with branches in the United Kingdom approved English Schemes for those companies. HIH's collapse is known to be the nation's biggest corporate failure. INGESTRE CORPORATE: Appoints Official Liquidator ------------------------------------------------ Shareholders of Ingestre Corporate Trustees Ltd appointed Derek Farrely on August 23, 2006, as liquidator. The Liquidator can be reached at: Derek Farrely P.O. Box 32-389, Devonport Auckland, New Zealand Telephone/Facsimile: (07) 892 2801 e-mail: dfarrelly@xtra.co.nz INSTANT HAIR: Final Meeting Slated for September 22 --------------------------------------------------- The members and creditors of Instant Hair Pty Ltd will hold a final meeting on September 22, 2006, at 10:00 a.m., to receive Liquidator G. J. Keith's accounts of the company's wind-up proceedings and property disposal exercises. The liquidator can be reached at: G. J. Keith Grant Thornton, Rialto Towers Level 35, South Tower 525 Collins Street Melbourne, Victoria Australia MACQUARIE FILM: Members Agree to Wind Up Operations --------------------------------------------------- The members of Macquarie Film Corporation Limited held a general meeting on August 22, 2006, and agreed to voluntarily wind up the company's operations. In this regard, M. C. Smith was appointed as liquidator. The Liquidator can be reached at: M. C. Smith c/o McGrathNicol+Partners Level 9, 10 Shelley Street Sydney, New South Wales 2000 Australia Telephone:(02) 9338 2666 Web site: http://www.mcgrathnicol.com.au MRRG LIMITED: Court Appoints Crichton Horne as Joint Liquidators ---------------------------------------------------------------- On August 24, 2006, the High Court of Dunedin appointed David Donald Crichton and Kieran Ann Horne of Crichton Horne & Associates Limited as Joint and Several Liquidators for MRRG Ltd. Accordingly, the Joint Liquidators required the creditors of the company to submit their proofs of claim by September 21, 2006. Failure to prove debts will exclude a creditor from sharing in any distribution the company will make. The Troubled Company Reporter - Asia Pacific reported on August 16, 2006, that the company was facing a liquidation petition from the Accident Compensation Commission. The petition was heard before the Court on August 24, 2006. The Joint Liquidators can be reached at: K. A. Horne c/o Marie Inch Crichton Horne & Associates Limited Old Library Chambers 109 Cambridge Terrace (P.O. Box 3978), Christchurch New Zealand Telephone: (03) 379 7929 MWM MANAGEMENT: Liquidator to Present Wind-Up Report ---------------------------------------------------- Members and creditors of MWM Management Group Pty Ltd will hold a final meeting on September 25, 2006, at 9:00 a.m., to hear Liquidator Marc Peskett's report on the company's wind-up proceedings and the property disposal exercises. The Troubled Company Reporter - Asia Pacific, reported on August 8, 2006, that the company commenced a wind up of operations on July 18, 2006. The Liquidator can be reached at: Marc Peskett MPR Group Pty Ltd Level 11, 499 St Kilda Road Melbourne, Victoria 3004 Australia NORTHSTAR DEVELOPMENT: Supreme Court Orders Wind Up --------------------------------------------------- On August 22, 2006, the Supreme Court of New South Wales has ordered Northstar Development Holdings Pty Limited to wind up its operations and appoint D. I. Mansfield as liquidator. The Liquidator can be reached at: D. I. Mansfield Moore Stephens Chartered Accountants Level 6, 460 Church Street Parramatta, New South Wales 2150 Australia PA & TASH: Court to Hear CIR's Liquidation Bid on Nov. 9 -------------------------------------------------------- A petition to liquidate PA & Tash Ltd will be heard before the High Court of Auckland on November 9, 2006, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition with the court on August 2, 2006. The Plaintiff's Solicitor can be reached at: P. L. Windsor-Knaap Inland Revenue Department 1 Bryce Street, Hamilton New Zealand Telephone: (07) 959 0471 PANDORA PASTORAL: Members Opt to Shut Down Business --------------------------------------------------- At a general meeting held on August 22, 2006, the members of Pandora Pastoral Company passed a special resolution to voluntarily liquidate the company's business and distribute the proceeds of its assets. Accordingly, Brian McCleary was appointed as liquidator. The Liquidator can be reached at: Brian McCleary Brian McCleary & Co Accountants 126 End Street Deniliquin, New South Wales 2710 Australia PARWAY INVESTMENTS: Placed Under Voluntary Liquidation ------------------------------------------------------ On August 11, 2006, the members of Parway Investments Pty Limited held a general meeting and agreed to voluntarily liquidate the company's business. In this regard, Douglas John Farram was appointed as liquidator. The Liquidator can be reached at: Douglas J. Farram c/o Carruthers Farram & Co Services Pty Ltd Suite 4, Level 4 105 Pitt Street Sydney, New South Wales 2000 Australia PIXEL-FX PTY: Liquidator Whitton to Present Wind-Up Report ---------------------------------------------------------- A joint meeting will be held for the members and creditors of Pixel-FX Pty Ltd on September 25, 2006, at 10:00 a.m. At the meeting, Liquidator Whitton will present the company's wind-up report and the manner of property disposal exercises. The Liquidator can be reached at: R. W. Whitton Lawler Partners Chartered Accountants Level 7, 1 Margaret Street Sydney, New South Wales 2000 Australia PRIMELIFE CORPORATION: PrimeLiving Trust Still Expanding in NSW --------------------------------------------------------------- Primelife Corporation Limited discloses that the PrimeLiving Trust, an unlisted acquisition trust jointly owned and managed by Primelife, Babcock & Brown Limited, and MFS Limited has completed the acquisition of the Annesley Bowral and the approved Gibraltar Park retirement development assets in the Southern Highlands of New South Wales. Jim Hazel, Primelife Managing Director says "Primelife is very proud to have Annesley and Gibraltar Park as part of the PrimeLiving Trust portfolio. Annesley is considered to be the premier retirement community in the Southern Highlands, providing a high standard of accommodation and facilities, and will become the premium brand in the Primelife portfolio. This acquisition takes total units owned by PrimeLiving Trust to 2,350, and total units under development to 575." "This acquisition will further enable Primelife to expand its footprint in this important growth corridor south west of Sydney and compliments the Trust's Henry Kendall portfolio with its large and established villages on the Central Coast of New South Wales and its new development, Coastal Waters, at St. George's Basin on the South Coast," Jim Hazel adds. Primelife, in conjunction with John Uliana, Chairman of the Annesley Group, will be responsible for the operational management of Annesley and the development management of Gibraltar Park. Primelife will have an option to acquire the retirement villages from the Trust at appropriate market prices. About the Villages Annesley Bowral is located within the Southern Highlands region of NSW at Bowral 110 km south-west of the Sydney CBD. Annesley Bowral originally began in 1924 as 'Annesley Methodist Girls College' but was purchased in 1998 for conversion into a retirement community. Annesley comprises 72 independent living units, being a mixture of villa and apartment style accommodation. Gibraltar Park is an approved retirement development located in the township of Mittagong, within the Southern Highland Region of NSW, about 108kms south-west of the Sydney CBD. Notable amenities in the area include Gib Gate Primary School, Bowral Country Club and Golf Course and Bowral RSL Club, all located within close proximity. The proposed village will comprise 66 detached single level independent living units, a central community centre and associated facilities, set in fully landscaped grounds. Construction is expected to commence this year. About Primelife Headquartered in Melbourne, Australia, Primelife Corporation -- http://www.primelife.com.au-- develops and manages properties catering to a wide range of senior living needs, including independent retirement living, serviced apartments, aged care or low care hostels and high care nursing homes, and in-home care. Primelife almost skidded into insolvency when, on September 23, 2004, the Australian Securities and Investments Commission filed 37 proceedings in the Federal Court of Australia seeking, among other things, orders that an investigating accountant be appointed over managed investment schemes under Primelife to report to the Federal Court to ascertain the position of each of the schemes. ASIC also applied for the schemes to be wound up. ASIC alleged that the schemes are not registered, as required under the Corporations Act. ASIC brought the Federal Court proceedings against Primelife and a number of other defendants including parties who, ASIC alleges, have been involved in promoting and managing the schemes to a large number of investors since 1997. The unregistered schemes are undergoing or were completely wound up starting October 2005. The Company had currently resolved most of the legal issues and was turning the corner after a couple of years. RODTRISAN PTY: Creditors Must Prove Debts by September 27 --------------------------------------------------------- Liquidator Judson will declare the first and final dividend for the creditors of Rodtrisan Pty Ltd on September 27, 2006, to the exclusion of creditors who cannot prove their debts on that day. The Liquidator can be reached at: Richard Judson Members Voluntarys Pty Ltd 1st Floor, 10 Park Road Cheltenham 3192 Australia S-TECH ENGINEERING: Members Resolve to Wind Up Business ------------------------------------------------------- Members of S-Tech Engineering Pty Limited met on August 17, 2006, and resolved to voluntarily wind up the company's operations and appoint Schon Condon and Bruce Gleeson as liquidators. The Liquidators can be reached at: Schon G. Condon RFD Bruce Gleeson c/o Jones Condon Chartered Accountants Australia Telephone: (02) 9893 9499 SIMPLY FRENCH: Final Meeting Set on September 25 ------------------------------------------------ The members and creditors of Simply French Armadale Pty Limited will convene on September 25, 2006, at 11:30 a.m., to receive Liquidator Duncan's report on the company's wind-up proceedings. The Liquidator can be reached at: Adrian Stewart Duncan c/o Hall Chadwick Level 29, 31 Market Street Sydney, New South Wales 2000 Australia SKY HIRE: Creditors Must Prove Debts by September 12 ---------------------------------------------------- Liquidator Aaron Armstrong requires the creditors of Sky Hire (N.Z.) Holdings Ltd to submit their proofs of claim on September 12, 2006. Failure to prove their debts will exclude a creditor from sharing in any distribution the company will make. The Liquidator can be reached at: Aaron Armstrong Armstrong Henderson Limited P.O. Box 109-696, Newmarket Auckland, New Zealand Telephone: (09) 917 7357 Facsimile: (09) 917 7379 SOUTHERN TRACTORS: Shareholders Opt for Voluntary Liquidation ------------------------------------------------------------- On August 24, 2006, shareholders of Southern Tractors Ltd resolved to voluntary liquidate the company's operations and appoint Richard George Hughes as official Liquidator. The Liquidator can be reached at: Richard Hughes 291 Madras Street (P.O. Box 13-170) Christchurch, New Zealand Telephone: (03) 366 0169 Facsimile: (03) 366 6319 THE NEW MANAGEMENT: Creditors Appoint Joint Liquidators ------------------------------------------------------- At an extraordinary general meeting held on August 17, 2006, the members of The New Management Company Pty Ltd decided to liquidate the company's business. Creditors appointed Gavin Charles Morton and Neil Robert Cussen as liquidator at their meeting held on that day. The Liquidator can be reached at: Gavin C. Morton Neil Robert Cussen Horwath Sydney Partnership Level 10, 1 Market Street Sydney, New South Wales 2000 Australia TINDERLEY PTY: To Declare First and Final Dividend on Sept. 27 -------------------------------------------------------------- Tinderley Pty Ltd will declare the first and final dividend on September 27, 2006. Failure to submit proofs of debts on that day will exclude the creditor from sharing in the company's distribution of dividend. The liquidator can be reached at: Richard Judson Members Voluntarys Pty Ltd 1st Floor, 10 Park Road Cheltenham 3192 Australia TOP GUN FLIGHTS: Names Worrell and Lane as Joint Liquidators ------------------------------------------------------------ Members of Top Gun Flights Pty Limited held a meeting on August 16, 2006, and appointed Ivor Worrell and Morgan Lane as joint liquidators. The Joint Liquidators can be reached at: Ivor Worrell Morgan Lane Worrells Solvency & Forensic Accountants Level 3, 333 George Street Sydney, New South Wales 2000 Australia Telephone:(02) 9249 1208 Facsimile:(02) 9249 1211 Web site: http://www.worrells.net.au VICALU PTY: Members Agreed to Close Operations ---------------------------------------------- At a general meeting held on August 15, 2006, the members of Vicalu Pty Ltd agreed to close the company's operations and appoint Peter G. Yates and David J. F. Lombe as joint and several liquidators. The Joint and Several Liquidators can be reached at: Peter G. Yates David J. F. Lombe Deloitte Touche Tohmatsu Grosvenor Place, 225 George Street Sydney, New South Wales 2000 Australia Telephone:(02) 9322 7000 ZENAS SHARETRADING: Liquidator Duncan to Give Wind-Up Report ------------------------------------------------------------ The members of Zenas Sharetrading Pty Limited will convene on September 25, 2006, at 10:30 a.m., receive the Liquidator's report on the company's wind-up proceedings and property disposal exercises. The Liquidator can be reached at: Adrian Stewart Duncan c/o Hall Chadwick Level 29 31 Market Street Sydney, New South Wales 2000 Australia ZOLMARI PTY: Members and Creditors to Convene on September 12 ------------------------------------------------------------- Members and creditors of Zolmari Pty Limited will hold a meeting on September 12, 2006, at 11:00 a.m., to: -- receive the final receipts and payments from the liquidator; -- receive formal notice of the end of the administration; -- resolve that the company be dissolved; and -- resolve that the books and records of the company be destroyed. The Liquidator can be reached at: Anthony Warner Conference Room CRS Warner Sanderson Level 5, 30 Clarence Street Sydney, New South Wales 2000 Australia ================================ C H I N A & H O N G K O N G ================================ ACW CONSULTING: Members Resolve to Wind-Up Operations ----------------------------------------------------- Members of ACW Consulting (H.K.) Ltd resolved on August 14, 2006, to voluntarily wind up its operations and appoint Young Chun Man Kenneth and Chan Yuen Bik Jane as liquidators. The Liquidators can be reached at: Young Chun Man Kenneth Chan Yuen Bik Jane 31/F, Gloucester Tower The Landmark 11 Pedder Street, Central Hong Kong ART VISION: Joint Liquidators Cease to Act for Company ------------------------------------------------------ Lai Kar Yan, Derek and Darach E. Haughey ceased to act as joint and several liquidators of Art Vision Hong Kong Co. Ltd on August 16, 2006. On April 10, 2006, the Troubled Company Reporter - Asia Pacific reported that sole shareholder, Kaoru Horikawa, resolved on March 24, 2006, to voluntarily wind up the company's operations. Mr. Lai and Mr. Haughey received creditors' proofs of claims on May 2, 2006, in preparation for the distribution of the company's assets. Mr. Lai and Mr. Haughey can be reached at: Lai Kar Yan, Derek Darach E. Haughey 35/F, One Pacific Place 88 Queensway Hong Kong ASIAN SERVICES: Members' Final Meeting Slated for September 28 -------------------------------------------------------------- Members of Asian Services Fashion & Garments Co. Ltd will convene for their final meeting at the Casella Postale 34, Corso San Gottardo 32, CH-6830 Chiasso, Switzerland on September 28, 2006 at 11:00 a.m. During the meeting, Liquidator Alessandra Maria Emilia Bullani will present a report regarding the Company's wind-up and the manner its properties were disposed of. According to the Troubled Company Reporter - Asia Pacific, creditors were required by the Liquidator to submit their proofs of claim on August 4, 2006, for them to share in any distribution the company will make. BESTWIN TEXTILE: Creditors Must Prove Debts by September 24 ----------------------------------------------------------- Creditors of Bestwin Textile Co. Ltd are required to submit their proofs of debt by September 24, 2006, to Liquidator Fung Tat Man, for them to share in the company's dividend distribution. According to the Troubled Company Reporter - Asia Pacific, the company commenced a wind-up of its operations on August 21, 2006. The Liquidator can be reached at: Fung Tat Man Suites 2205-6 Island Place Tower 510 King's Road North Point Hong Kong DAISYFIELD LTD: Members Pass Resolution to Wind Up Operations ------------------------------------------------------------- On August 16, 2006, members of Daisyfield Ltd passed a special resolution to wind up the Company's operations. Accordingly, Lau Kwok Hung and Chang Lai Ying were appointed as joint and several liquidators. The Joint Liquidators can be reached at: Lau Kwok Hung Chang Lai Ying Suites 2205-06 Island Place Tower 510 King's Road North Point Hong Kong DRACCO INTERNATIONAL: Members' Final Meeting Slated for Sept. 29 ---------------------------------------------------------------- Members of Dracco International Ltd will convene for their final meeting on September 29, 2006, at Unit 808, 8/F., Star House, 3 Salisbury Road, Tsimshatsui, Kowloon, Hong Kong. At the meeting, Chua Tin Chor, will present a report regarding the Company's wind-up and property disposal activities. According to the Troubled Company Reporter - Asia Pacific, the company commenced a member's voluntary wind-up of its operations on April 4, 2006. FORTUNE MIND: Joint and Several Liquidators Named ------------------------------------------------- Shareholders of Fortune Mind Enterprise Ltd appointed Stephen Liu Yiu Keung and Robert Armor Morris as joint and several liquidators for the company on August 16, 2006. Mr. Liu and Mr. Morris can be reached at: Stephen Liu Yiu Keung Robert Armor Morris 18/F, Two International Finance Centre 8 Finance Street, Central Hong Kong FUSION DESIGN: Joint Liquidators Cease to Act for Company --------------------------------------------------------- Lui Wan Ho and Lui Yee Lin ceased to act as joint and several liquidators for Fusion Design Asia Limited on August 21, 2006. According to the Troubled Company Reporter - Asia Pacific, members received the Joint Liquidators' wind-up report on August 21, 2006. The Joint Liquidators can be reached at: Lui Wan Ho Lui Yee Lin Rm 1701, Olympia Plaza 255 King's Road North Point Hong Kong GOLDEN TOP: Creditors Meeting Scheduled on September 18 ------------------------------------------------------- Creditors of Golden Top Industries Ltd will convene for their first meeting on September 18, 2006, at Room 1206, 12/F, New Victory House, 93 Wing Lok Street, Central, Hong Kong. The meeting was called for the creditors to discuss various matters provided under different sections of the Companies Ordinance of Hong Kong. GREAT CHINA: Posts US$2.5-Million Net Loss in First Half -------------------------------------------------------- Great China International Holdings, Inc. posted US$2.498 million consolidated net loss in the first half period ending June 30, 2006, compared with US$176,608,000 net loss recorded in the same period the previous year. The company's consolidated balance sheet for the first half period in 2006, showed strained liquidity with total current assets at US$15.915-million available to pay US$130.74 million in total current liabilities coming due within the next 12 months. Great China's consolidated total assets as of June 30 amounted to US$133.95 million while total liabilities is at US$132.95 million. Total stockholders equity of the company amounted to US$133,952,595 million. Going Concern Doubt The Company was in default on US$35,642,750 of bank loans and US$20,000,000 of additional current bank loans as of June 30, 2006. Moreover, the Company also had a working capital deficit of US$114,827,084 as of June 30, 2006. Murrell, Hall, McIntosh & Co., PLLP expressed a substantial doubt on the Company's ability to continue as a going concern after it audited the company's second quarter and first half report for the period ended June 30, 2006. A full-text copy of the company's financial statements for the year ended Dec. 31, 2005, is available for free at: http://www.sec.gov/Archives/edgar/data/828878/000102048806000192 /gchina-10qsb_063006.htm About Great China Founded in 1989, Great China International Holdings' wholly owned subsidiary, Shenyang Maryland International Industry Co., Ltd., is one of the largest non-state-owned real estate developers in Northeast China. The company's core business is premium residential and commercial development and management. It currently owns and manages the President Building, which was completed in April 2002, with 25 tenants comprised of Fortune 500 companies, including General Electric (China) Co., Ltd., Johnson & Johnson, Kodak and Philip Morris. The company's prior developments included the Maryland Building, Roma Resort Garden, Qiyun New Village, Peacock Garden, University Campus of Shenyang Teacher's University, and Chenglong Garden, mostly located in Shenyang. IPCO CONSTRUCTORS: Members Pass Resolution to Wind Up Operations ---------------------------------------------------------------- On August 15, 2006, members of IPCO Constructors International Ltd passed a special resolution to wind up the company's operations. Accordingly, Andrew David Ross and Robin Frederick Keppel Radcliffe were appointed as liquidators. The liquidators can be reached at: Andrew David Ross Robin Frederick Keppel Radcliffe 12/F, China Merchants Tower Shun Tak Centre 168-200 Connaught Road Central Hong Kong KIN TAI: Creditors Must Prove Debts by September 30 --------------------------------------------------- On August 17, 2006, Kin Tai Bonding Technology (F.E.) Ltd appointed Cheuk Yee Man as liquidator. The company's creditors are, therefore, required to submit their proofs of debt by September 30, 2006 to Mr. Cheuk. Failure to comply with the requirement will exclude a creditor from sharing in any distribution the company will make. The Liquidator can be reached at: Cheuk Yee Man Rm 2810, 28/F 113 Argyle Street Kowloon Hong Kong LEAD SUPPLY: Shareholders Appoint Chiu Chi Kin as Liquidator ------------------------------------------------------------ Shareholders of Lead Supply Industrial Ltd appointed Chiu Chi Kin as official liquidator on August 12, 2006. The Liquidator can be reached at: Chiu Chi Kin Block E, 3rd Floor Wang Cheong Building 251 Reclamation Street Kowloon Hong Kong LINK GARMENT: Final Members' Meeting Set on September 29 -------------------------------------------------------- Members of Link Garment Manufacturing Company Ltd will convene for their final meeting at Room 1003, Park Tower, 15 Austin Road, Tsim Sha Tsui, Kowloon, Hong Kong on September 29, 2006, at 10:00 a.m. At the meeting, Liquidator Cheung Yuk Cheung will present a report regarding the Company's wind-up and the manner its properties were disposed of. MIZUHO CORPORATE: Final Members Meeting Set on September 28 ----------------------------------------------------------- Members of Mizuho Corporate Asia (HK) Ltd will convene for their final meeting on September 28, 2006, at 3:00 p.m., at 27/F, Alexandra House, 16-20 Chater Road, Central, Hong Kong. During the meeting, Joint Liquidators Jacky CW Muk will present a report regarding the Company's wind-up and the manner its properties were disposed of. MULTI-POINT: Lawrence Ceases to Act for the Company --------------------------------------------------- David J. Lawrence ceased to act as Liquidator for Multi-point Investment Ltd on August 15, 2006. According to the Troubled Company Reporter - Asia Pacific, the final members meeting of the company and the presentation of the Liquidators' wind-up report were conducted on August 14, 2006. NUCLEAR CONSTRUCTION: Appoints Joint and Several Liquidators ------------------------------------------------------------ On August 15, 2006, director Lu Xiu Jie of Nuclear Construction and Engineering Company Ltd appointed Stephen Briscoe and Cosimo Borrelli as Joint and Several Liquidators. The Joint and Several Liquidators can be reached at: Stephen Briscoe Cosimo Borrelli 5/F Allied Kajima Building 138 Gloucester Road Wanchai Hong Kong OUTMATCHING TELECOM: Creditors First Meeting Fixed on Sept. 8 ------------------------------------------------------------- Creditors of Outmatching Telecommunications Ltd, which is in liquidation, convened for their first meeting on September 8, 2006, at Room 1903, 19/F., World-Wide House, 19 Des Voeux Road Central, Hong Kong. The meeting was called for the creditors to discuss various matters provided under different sections of the Companies Ordinance of Hong Kong. PARK MANAGEMENT: Liquidator Steps Aside --------------------------------------- Hui Yiu Yat Kwan, Dennis ceased to act as Liquidator for Park Management Ltd Park Finance (HK) Ltd on August 18, 2006. The former Liquidator can be reached at: Hui Yiu Yat Kwan, Dennis 1 Osmanthus Road Yau Yat Chuen Kowloon Hong Kong RIGHTLINK SHIPPING: Members' Final Meeting Scheduled for Sept.25 ---------------------------------------------------------------- Members of Rightlink Shipping Ltd will convene for their final meeting on September 25, 2006, 10 a.m. at Rm. 2506, 25/F., China Insurance Group Bldg., 141 Des Voeux Road Central, Hong Kong. During the meeting, Lee Angel will present a report regarding the Company's wind-up and the manner its properties were disposed of. The Liquidator can be reached at: Lee Angel Liquidator Room 2506, 25th Floor China Insurance Group Building 141 Des Voeux Road Central Hong Kong SHERECON PROPERTIES: Members' Final Meeting On October 6 -------------------------------------------------------- On October 6, 2006, at 10:00 a.m., members of Sherecon Properties Ltd will convene for their final meeting at Room 1301, 13/F., Great Eagle Centre, 23 Harbour Road, Wanchai, Hong Kong. During the meeting, Tse Chiang Kwok, Nassar and Tam Chun Wan will present a report regarding the Company's wind-up and the manner its properties were disposed of. SKYCITY UNIVERSAL: Appoints Official Liquidator ----------------------------------------------- On August 11, 2006, SkyCity Universal Ltd appointed Bernie Fuk Yuen Suen as Liquidator. The Liquidator can be reached at: Bernie Fuk Yuen Suen 10/F, Hong Kong Trade Centre 161 Des Voeux Road, Central Hong Kong SKY RAINBOW: Members Final Meeting Set for September 26 ------------------------------------------------------- On September 26, 2006, members of Sky Rainbow Ltd will convene for their final meeting at Rm1307-8 Dominion Centre, 43-59 Queen's Road East, Wanchai, Hong Kong. During the meeting, the Liquidator will present a report regarding the Company's wind-up and the manner its properties were disposed of. The Joint and Several Liquidator can be reached at: Chan Chung Wai 1307-8 Dominion Centre 43-59 Queen's Road East Wanchai Hong Kong SOUNDTEX INTERNATIONAL: Creditors Must Prove Debts by Sept. 30 --------------------------------------------------------------- Creditors of Soundtex International Ltd are required to prove their debts by September 30, 2006. Proofs of claim are to be submitted to Liquidator Tse Wai Hing. The Liquidator can be reached at: Tse Wai Hing Suites 1403-4 Nan Fung Tower 173 Dex Voeux Road, Central Hong Kong VICLAND LIMITED: Liquidator Ceases to Act for the Company --------------------------------------------------------- Yuen Wai Ho ceased to act as Liquidator for Vicland Limited on August 10, 2006. According to the Troubled Company Reporter - Asia Pacific, the presentation of Liquidators' wind-up report were conducted on August 8, 2006. The Liquidator can be reached at: Yuen Wai Ho Rm. 03, 16/F Seaview Commercial Building 21-24 Connaught, Road West Hong Kong ========= I N D I A ========= FORD MOTOR: Names Alan Mulally as President and CEO --------------------------------------------------- Ford Motor Company has elected Alan Mulally as president and chief executive officer. He has also been elected to the Board of Directors. Bill Ford will continue his duties as executive chairman of the company. "One of the three strategic priorities that I've focused on this year is company leadership. While I knew that we were fortunate to have outstanding leaders driving our operations around the world, I also determined that our turnaround effort required the additional skills of an executive who has led a major manufacturing enterprise through such challenges before," Bill Ford wrote in an e-mail message to Ford employees. "That's why I'm very pleased to announce that Alan Mulally, who turned around the Commercial Airplanes division of The Boeing Company, will become our president and CEO, effective immediately. Alan has deep experience in customer satisfaction, manufacturing, supplier relations and labor relations, all of which have applications to the challenges of Ford. He also has the personality and team-building skills that will help guide our Company in the right direction." Bill Ford, who said he would remain "extremely active" in the business, praised Mr. Mulally as "an outstanding leader and a man of great character." He noted that Mr. Mulally had applied many of the lessons from Ford's success in developing the Taurus to Boeing's creation of the revolutionary Boeing 777 airliner. That experience, chronicled in the book, "Working Together," by James P. Lewis, tells how the leadership principles Mr. Mulally learned from Ford and developed at Boeing may be applied to other businesses. "Clearly, the challenges Boeing faced in recent years have many parallels to our own," Bill Ford said. Mr. Mulally, 61, has spent 37 years at The Boeing Company, most recently as executive vice president. In addition, he has also been president and chief executive officer of Boeing Commercial Airplanes since 2001. In that position he was responsible for all of the company's commercial airplane programs and related services, which in 2005 generated record orders for new business and sales of more than US$22.6 billion. Mr. Mulally was named president of Commercial Airplanes in September 1998. The responsibility of chief executive officer for the business unit was added in March 2001. "I think the opportunity to work with Bill Ford and Ford Motor Company is the only thing that could have attracted me to a job other than Boeing, where I have so many great friends and memories," Mr. Mulally said. "I'm looking forward to working closely with Bill in the ongoing turnaround of this great Company. I'm also eager to begin engagement with the leadership team. I believe strongly in teamwork and I fully expect that our efforts will be a productive collaboration." Mr. Mulally noted that many of the challenges he encountered in commercial airplane manufacturing are analogous to the issues at Ford. "Just as I thought it was appropriate to apply lessons learned from Ford to Boeing, I believe the reverse is true as well," Mr. Mulally said. "I also recognize that Ford has a strong foundation upon which we can build. The Company's long tradition of innovation, developing new markets, and creating iconic vehicles that represent customer values is a great advantage that we can leverage for our future." Bill Ford said he expected Mr. Mulally would assist Mark Fields and the Way Forward team as they accelerate their business plan. "After dealing with the troubles at Boeing in the post-9/11 world, Alan knows what it's like to have your back to the wall - - and fight your way out with a well-conceived plan and great execution," Bill Ford said in his note to employees. "He also knows how to deal with long product cycles, changing fuel prices and difficult decisions in a turnaround." Prior to his current position, Mr. Mulally served as president of Boeing Information, Space & Defense Systems, and senior vice president of The Boeing Company. Appointed to that role in February 1997, he was responsible for Boeing's defense, space and government business. Beginning in 1994, he was senior vice president of Airplane Development for Boeing Commercial Airplanes Group, responsible for all airplane development activities, flight test operations, certification and government technical liaison. Mr. Mulally serves as co-chair of the Washington Competitiveness Council, and sits on the advisory boards of NASA, the University of Washington, the University of Kansas, Massachusetts Institute of Technology, and the U.S. Air Force Scientific Advisory Board. He is a member of the United States National Academy of Engineering and a fellow of England's Royal Academy of Engineering. Mr. Mulally holds bachelor's and master's of science degrees in aeronautical and astronautical engineering from the University of Kansas, and earned a master's in management from the Massachusetts Institute of Technology as a 1982 Alfred P. Sloan fellow. A member of the board since 1988, Bill Ford, 49, was elected chairman in September 1998, and took office on Jan. 1, 1999. He also serves as chairman of the board's Environmental and Public Policy Committee and as a member of the Finance Committee. He was named Chief Executive Officer on Oct. 30, 2001. Bill Ford, who led the Company to three straight years of profitability through 2005, told employees in his e-mail message that he looked forward to an excellent working partnership with Mr. Mulally on global strategic issues. "Let me assure you: I'm not going anywhere," Bill Ford wrote to Ford workers. "As executive chairman, I intend to remain extremely active in the direction of this Company. I'll be here every day and I will not rest until a prosperous future for this Company is secured." About Ford Motor Ford Motor Company, headquartered in Dearborn, Michigan, U.S.A., is the world's third largest automobile manufacturer. It has operations all over the world, including India. Fitch Ratings downgraded on August 18, 2006, the Issuer Default Rating of Ford Motor Company and Ford Motor Credit Company to 'B' from 'B+'. Fitch also lowered Ford's senior unsecured rating to 'B+/RR3' from 'BB-/RR3' and Ford Credit's senior unsecured rating to 'BB-/RR2' from 'BB/RR2'. The Rating Outlook remains Negative. Standard & Poor's Ratings Services on August 18, 2006, placed its 'B+' long-term and 'B-2' short-term ratings on Ford Motor Co., Ford Motor Credit Co., and related entities on CreditWatch with negative implications. The 'BB-' long-term rating and 'B- 2' short-term ratings on FCE Bank PLC, Ford Motor Credit's European bank, were also placed on CreditWatch with negative implications, reflecting its linkage to the Ford rating. FORD MOTOR: Looks at New Business Models to Ensure Recovery ----------------------------------------------------------- Ford Motor Co.'s executive chairman, Bill Ford, informed employees in a memo last week that "the business model that sustained [the Company] for decades is no longer sufficient to sustain profitability," the Associated Press reports. Mr. Ford plans to revitalize the ailing automaker by locking in on three key areas of change -- accelerating the "Way Forward" plan, leveraging global assets and strengthening leadership, AP adds. The admission came as Ford gears up for an aggressive reduction of North American production as part of broader efforts to accelerate the pace of its "Way Forward" turnaround. The North American restructuring calls for, among other things: -- material cost reductions of at least US$6 billion by 2010; -- a 26% capacity reduction by 2008; and -- a reduction of plant-related employment by 25,000 - 30,000 in 2006 to 2012. As reported in the Troubled Company Reporter on Aug. 21, 2006, the revised plan will cut fourth-quarter production by 21% -- or 168,000 units -- compared with the fourth quarter a year ago, and reduce third-quarter production by approximately 20,000 units. Recently, Ford disclosed that it has started exploring strategic options for the Aston Martin sports-car unit, including a potential sale of the brand. Mr. Ford had stated that Aston Martin may be an attractive opportunity to raise capital and generate value for the Company. Last month, talks also surfaced about the possible sale of the Company's Jaguar unit to Sir Anthony Bamford, JC Bamford Excavators Ltd.'s Chairman. Along with Volvo, Land Rover, and Aston Martin, Jaguar forms Ford's Premier Automotive Group. The PAG segment incurred a $180 million net loss in the second quarter of 2006. About Ford Motor Ford Motor Company, headquartered in Dearborn, Michigan, U.S.A., is the world's third largest automobile manufacturer. It has operations all over the world, including India. Fitch Ratings downgraded on August 18, 2006, the Issuer Default Rating of Ford Motor Company and Ford Motor Credit Company to 'B' from 'B+'. Fitch also lowered Ford's senior unsecured rating to 'B+/RR3' from 'BB-/RR3' and Ford Credit's senior unsecured rating to 'BB-/RR2' from 'BB/RR2'. The Rating Outlook remains Negative. Standard & Poor's Ratings Services on August 18, 2006, placed its 'B+' long-term and 'B-2' short-term ratings on Ford Motor Co., Ford Motor Credit Co., and related entities on CreditWatch with negative implications. The 'BB-' long-term rating and 'B- 2' short-term ratings on FCE Bank PLC, Ford Motor Credit's European bank, were also placed on CreditWatch with negative implications, reflecting its linkage to the Ford rating. FORD MOTOR: S&P Ratings Remain on Watch Neg with New CEO -------------------------------------------------------- Standard & Poor's Ratings Services said on September 6, 2006, that its 'B+' long-term and 'B-2' short-term ratings on Ford Motor Co., Ford Motor Credit Co., and related entities remain on CreditWatch with negative implications where they were placed August 18. The 'BB-' long-term and 'B-2' short-term ratings on FCE Bank PLC, Ford Motor Credit's European bank, also remain on CreditWatch with negative implications, reflecting its linkage to the Ford rating. "Ford's announcement that it has hired a senior executive from Boeing Co. as the new Ford CEO broadens Ford's senior management team and so we consider it a modest positive," said Standard & Poor's credit analyst Robert Schulz. The Ford CreditWatch reflects S&P's decision to review the ratings in light of the sharply lower production schedule announced for light trucks in the fourth quarter (down 155,000 units, or 28%, versus fourth-quarter production in 2005). These cuts, along with the very likely significant cost reductions to be announced later in September, reveal the magnitude of turnaround efforts needed to deal with Ford's deteriorating product mix, lower market share, and excess production capacity in North America. The lower production will have a significant negative effect on Ford's cash flow in the fourth quarter. Although Ford's North American automotive operations are cash- flow negative, Ford's liquidity should still be sufficient relative to near-term requirements, as the company has a large liquidity position composed of these: * Cash, marketable securities, and short-term assets in its VEBA trust (which it could use to meet certain near-term benefits costs, thereby freeing up other cash) totaled US$23.6 billion at June 30, 2006 (excluding Ford Credit). At June 30, Ford's cash position exceeded debt by about US$6 billion, and Ford expects to end 2006 with a cash balance of at least US$20 billion (excluding Ford Credit); * As of June 30, 2006, Ford had US$6.3 billion of committed credit facilities with various banks, most of which are committed through June 30, 2010; parent-level debt maturities are moderate for the near term (US$1.3 billion for the 12 months from June 30, 2006), and long-term debt has an exceptionally high average maturity of about 25 years; and * Even under the new pension legislation, we do not currently believe Ford faces any significant ERISA-mandated pension fund contributions for the next few years or the need to make contributions to avoid Pension Benefit Guaranty Corp. variable-rate premiums. About Ford Motor Ford Motor Company, headquartered in Dearborn, Michigan, U.S.A., is the world's third largest automobile manufacturer. It has operations all over the world, including India. Fitch Ratings downgraded on August 18, 2006, the Issuer Default Rating of Ford Motor Company and Ford Motor Credit Company to 'B' from 'B+'. Fitch also lowered Ford's senior unsecured rating to 'B+/RR3' from 'BB-/RR3' and Ford Credit's senior unsecured rating to 'BB-/RR2' from 'BB/RR2'. The Rating Outlook remains Negative. Standard & Poor's Ratings Services on August 18, 2006, placed its 'B+' long-term and 'B-2' short-term ratings on Ford Motor Co., Ford Motor Credit Co., and related entities on CreditWatch with negative implications. The 'BB-' long-term rating and 'B- 2' short-term ratings on FCE Bank PLC, Ford Motor Credit's European bank, were also placed on CreditWatch with negative implications, reflecting its linkage to the Ford rating. GENERAL MOTORS: Renault Taps BNP Paribas for Three-Way Tie-Up ------------------------------------------------------------- Renault SA has named BNP Paribas to advise on a possible three- way alliance with General Motors Corp. and Nissan Motor Co., AFX News Limited reports, citing a source privy to the matter. According to AFX, the French carmaker has also drawn up a shortlist of around eight British and US banks from which it will choose a second adviser. The selection process is likely to take several weeks to finalize, the report says. Anne-Sylvaine Chassany and David Pearson of The Wall Street Journal cited a source saying that Renault is "now seriously considering a potential alliance." Carlos Ghosn, chief executive of Renault and Nissan, refused to make public statements until internal feasibility studies are completed in mid-October and Renault decides whether to proceed, the Wall Street Journal relates. Renault-Nissan is a collaboration between Nissan Motor Co., Ltd., and Renault S.A. A GM shareholder, Kirk Kerkorian, broached the idea of pulling in GM into the two-way tie-up. Mr. Kerkorian owns 9.9% equity stake in GM through his investment firm Tracinda Corp. The WSJ reported last week that Ford Motor Co. Chairman Bill Ford Jr. has approached Mr. Ghosn about a possible alliance with Ford if the proposed tie-up with GM fails. According to GM CEO Rick Wagoner, the company is considering an alliance but is focusing on its turnaround efforts, which don't hinge on the outcome of the talks, WSJ adds. About General Motors General Motors Corp. -- http://www.gm.com/-- the world's largest automaker, has been the global industry sales leader for 75 years. With global headquarters in Detroit, GM manufactures its cars and trucks in 33 countries, including India. In 2005, 9.17 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM operates one of the world's leading finance companies, GMAC Financial Services, which offers automotive, residential and commercial financing and insurance. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. On June 30, 2006, Standard & Poor's Ratings Services held all its ratings on General Motors Corp. -- including the 'B' corporate credit rating and the 'B+' bank loan rating, but excluding the '1' recovery rating -- on CreditWatch with negative implications, where they were placed March 29, 2006. On June 22, 2006, Fitch assigned a rating of 'BB' and a Recovery Rating of 'RR1' to General Motor's new US$4.48 billion senior secured bank facility. The 'RR1' (recovery of 90%-100%) is based on the collateral package and other protections that are expected to provide full recovery in the event of a bankruptcy filing. On June 21, 2006, Moody's Investors Service assigned a B2 rating to the secured tranches of the amended and extended secured credit facility of up to US$4.5 billion being proposed by General Motors Corporation, affirmed the company's B3 corporate family and SGL-3 speculative grade liquidity ratings, and lowered its senior unsecured rating to Caa1 from B3. Moody's said the rating outlook is negative. ICICI BANK: Unveils 12th AGM Results ------------------------------------ Members of ICICI Bank Ltd at the 12th Annual General Meeting held on July 22, 2006, have accorded the: -- adoption of the audited Profit and Loss Account for the financial year ended March 31, 2006, the Balance Sheet as of that date and the Reports of the Directors and Auditors; -- declaration of dividend on preference shares at the rate of 0.001% for the year ended March 31, 2006; -- declaration of dividend on equity shares at the rate of INR8.50 per equity share of INR10 each for the year ended March 31, 2006; -- reappointment of L N Mittal, P M Sinha, V Prem Watsa and Lalita D Gupte as directors of the bank, liable to retire by rotation; -- appointment of S R Batliboi & Co. Chartered Accountants as Statutory Auditors of the bank to hold office until the conclusion of the next Annual General Meeting; -- authorization of the Board to appoint branch auditors, as and when required, in consultation with the statutory auditors, to audit the accounts in respect of the company's branches or offices in India and abroad, on remuneration, terms and conditions; and -- appointment of R K Joshi and Narendra Murkumbi as directors of the bank, liable to retire by rotation. About ICICI Bank Headquartered in Mumbai, India, ICICI Bank Limited -- http://www.icicibank.com/-- is a financial services group providing a variety of banking and financial services, including project and corporate finance, working capital finance, venture capital finance, investment banking, treasury products and services, retail banking, broking and insurance. It also has interests in the software development, software services and business process outsourcing businesses. The Company's operations have been classified into three segments: Commercial Banking, Investment Banking and Others. It has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain, and representative offices in the United States, China, United Arab Emirates, Bangladesh and South Africa. * * * Fitch Ratings gave ICICI a 'C' Individual Rating. On Aug. 15, 2006, Standard & Poor's assigned its 'BB-' rating to the hybrid Tier-1 securities to be issued by ICICI Bank Ltd. READER'S DIGEST: Moody's Places Ratings on Review for Downgrade --------------------------------------------------------------- Moody's Investors Service placed The Reader's Digest Association, Inc.'s Ba1 Corporate Family Rating and Ba2 senior unsecured note rating on review for possible downgrade. The review is prompted by increasing debt to fund acquisitions and return of capital to shareholders, deterioration in cash generation, and Moody's concern regarding the company's weakened liquidity position. Moody's will evaluate the company's plans to stabilize and reverse the significant operating performance decline in the consumer business segment, and improve working capital management in support of new product introductions and the international expansion strategy. The agency will also assess the company's financial policies and priorities for the use of debt and cash generated to fund acquisitions and capital returns to shareholders. In addition, Moody's will review the liquidity position as Reader's Digest enters its peak seasonal borrowing period, including the company's ability to maintain compliance with restrictive financial covenants in the credit facility at September 30, 2006 and beyond. * * * Headquartered in Pleasantville, New York, The Reader's Digest Association Inc -- http://www.rd.com/-- is a global publisher and direct marketer of products including magazines, books, recorded music collections and home videos. Products include Readers Digest magazine, which is published in 50 editions and 21 languages. The company has operations in the North and South America, Europe and Asia. Reader's Digest has offices in Korea, Malaysia, Singapore, Philippines, Thailand and India. ================= I N D O N E S I A ================= BANK MANDIRI: Takes Errant Debtors to Court ------------------------------------------- PT Bank Mandiri (Persero) Tbk, increasingly burdened by mounting non-performing loans from large companies, has received a nod from the Government to take legal action against recalcitrant debtors, the Jakarta Post reports. State Minister for State Enterprises Sugiharto has confirmed that Mandiri's management has been directed to look into legal action if debtors remain defiant, but didn't name debtor companies. Mandiri president Agus D. Martowardojo has mentioned planning to sue 30 borrowers with NPLs of more than IDR1 trillion each (US$110 million), if they do not show good faith and settle their debts. According to the report, among the debtors with more than IDR1 trillion NPL are: Garuda Mas Group, PT Kiani Kertas, Domba Mas Group, PT Garuda Indonesia, A Latief Group and Bosowa Group. The Post further explains that Mandiri's NPLs as of July 27, 2006, aggregated IDR26.4 trillion, or 26.4% of its total loans, although the figure is already down from its IDR27.1-trillion, or 27.7%, position as of May 30, 2006. The 30 large debtors make up 56% of the NPLs, at IDR14.8 trillion, down from 75%. Mandiri director for special assets management Riswinandi said that Mandiri expects to be able to collect another IDR4 trillion in debts by the end of the year, from Domba Mas Group, Argo Pantes, Flora Sawita and Pasific Andes. Besides Mandiri, Bank Negara Indonesia has also been wrestling with rising NPLs. This comes at a time when both state banks are bidding to become an "anchor bank", trying to fulfill by 2007 the central bank's 5% maximum net NPL requirement, the Post relates. Headquartered in Jakarta, Indonesia, PT Bank Mandiri (Persero) Tbk's -- http://www.bankmandiri.co.id/-- services include: Internet banking, consumer banking, commercial banking and corporate banking. The bank's subsidiaries consist of: Bank Mandiri (Europe) Limited, which is the bank's representative in Europe; PT Bank Syariah Mandiri, which is a bank within the syariah banking system; PT Usaha Gedung Bank Dagang Negara, which is a property management company; PT Mandiri Sekuritas, which is an investment management company, and PT Bumi Daya Plaza, which is a property management company. The bank is supported by 10 regional offices, 54 hub offices, 98 community offices, 334 spoke offices, 423 cash offices, four international offices and one representative office. The bank has overseas operations in the Cayman Islands, China, Hong Kong, London, and Singapore. * * * The Troubled Company Reporter - Asia Pacific reported on May 22, 2006, that Moody's Investors Service upgraded Bank Mandiri's long-term deposit rating to B2 from B3, with a stable outlook. Bank Mandiri's short-term deposit rating of Not-Prime, and bank financial strength rating of E+ are unaffected. A subsequent TCR-AP report on May 29, 2006, stated that Moody's upgraded these ratings for Bank Mandiri Persero (P.T.), Cayman Islands, under the revised foreign currency ceilings: -- Subordinated debt rating: to Ba3 from B1 with stable outlook; and -- Senior debt rating: to Ba3 from B1 with stable outlook. A TCR-AP report on May 24, 2006, said that Fitch Ratings affirmed Bank Mandiri's: * Long-term Foreign and Local Currency Issuer Default Ratings at 'BB-'; * Short-term rating at 'B'; * Individual rating at 'D'; and * Support rating at '4'.The outlook for the ratings is stable. BANK PERMATA: Consortium Buys Additional 26% Stake -------------------------------------------------- A consortium led by Standard Chartered Plc and PT Astra International Tbk acquired an additional 25.9% stake in PT Bank Permata Tbk from PT Perusahaan Pengelola Aset, a company owned by the Indonesian Government, Baystreet reports. The Jakarta Post reports that the Indonesian Government got IDR1.75 trillion (US$193 million) from the sale. Pengelola Aset sold a total of 2,005,671,898 shares at the price of IDR875 a share, which represents an 11% premium. The shares were sold through a market placement mechanism on the stock market, as ordered by Indonesian Finance Minister Sri Mulyani Indrawati. The Post relates that Standard Chartered and Astra International already owned a 63% stake in Bank Permata, with equal ownership of 31.5%. Headquartered in Jakarta, Indonesia, PT Bank Permata Tbk's -- http://www.permatabank.com/-- products and services include liabilities, asset, credit card and bancassurance, PermataFOREX, commercial banking, e-channels and preferred banking. The bank has approximately 318 domestic branches, sub branches and cash offices throughout the country. The bank's subsidiaries, which are engaged in the securities industry, the consumer finance and leasing sector, the general insurance business and the banking sector, include PT Bali Securities, PT Bali Tunas Finance, PT Asuransi Permata Nipponkoa Indonesia and Bank Perkreditan Rakyat. * * * The Troubled Company Reporter -- Asia Pacific reported on July 5, 2006, that Moody's Investors Service gave Bank Permata an 'E+' bank financial strength rating, with a positive outlook. These ratings were unaffected: * Long-term/short-term deposit ratings of B2/Not Prime. Outlook stable. INCO LTD: CVRD Gets Canadian & U.S. Antitrust OK for Inco Offer --------------------------------------------------------------- Companhia Vale do Rio Doce has obtained antitrust clearances from the Canadian Competition Bureau and the United States competition authorities with respect to its offer to acquire all the outstanding shares of Inco Limited if the Brazil mining company can win shareholder support for its US$17-billion cash bid, reports Associate Press Business Writer Alan Clendenning. Inco's Board of Directors had continued to recommend that shareholders vote in favor of the proposed combination between Inco and Phelps Dodge Corp. at the special meeting of Inco shareholders on Sept. 7, 2006. The Board had also recommended that Inco shareholders reject CVRD's offer to purchase for cash all of the outstanding common shares of Inco. Inco has been negotiating with CVRD to increase the bid, but CVRD has no plans on improving the offer. Phelps Dodge hasn't increased its offer either after an initial raise. Phelps Dodge's shareholders are concerned over the level of debt the Company would incur to complete the merger, Mr. Clendenning relates. Analysts have said that investors might support the CVRD offer after Teck Cominco Limited withdrew from the bidding, and Inco's stock settled at about US$77 -- the value of CVRD's bid -- because it is all cash, writes Mr. Clendenning. About Phelps Dodge Headquartered in Phoenix, Arizona, Phelps Dodge Corp. (NYSE: PD) -- http://www.phelpsdodge.com/-- produces copper and molybdenum and is the largest producer of molybdenum-based chemicals and continuous-cast copper rod. The company and its two divisions, Phelps Dodge Mining Co. and Phelps Dodge Industries, employ approximately 13,500 people worldwide. About CVRD Headquartered in Rio de Janeiro, Brazil, Companhia Vale do Rio Doce -- http://www.cvrd.com.br/-- engages primarily in mining and logistics businesses. It engages in iron ore mining, pellet production, manganese ore mining, and ferroalloy production, as well as in the production of nonferrous minerals, such as kaolin, potash, copper, and gold. About Inco Ltd. Headquartered in Sudbury, Ontario, Inco Limited (TSX, NYSE:N) -- http://www.inco.com/-- produces nickel, which is used primarily for manufacturing stainless steel and batteries. Inco also mines and processes copper, gold, cobalt, and platinum group metals. It makes nickel battery materials and nickel foams, flakes, and powders for use in catalysts, electronics, and paints. Sulphuric acid and liquid sulphur dioxide are produced as byproducts. The company's primary mining and processing operations are in Canada, the U.K., and Indonesia. * * * Inco Limited's 3-1/2% Subordinated Convertible Debentures due 2052 carry Moody's Investors Service's Ba1 rating. INCO LTD: Terminates Merger Agreement with Phelps Dodge ------------------------------------------------------- Inco Limited agreed with Phelps Dodge Corporation to terminate the Combination Agreement the parties entered into on June 25, 2006. Inco also cancelled the special meeting of Inco shareholders called for Sept. 7, 2006. Consistent with the terms of the agreement entered into between the parties, Inco will pay Phelps Dodge a termination fee of US$125 million and a further US$350 million if Inco consummates an alternative take-over bid or similar transaction on or prior to Sept. 7, 2007. Inco would have paid these same amounts had the agreement been terminated after Inco shareholders failed to approve the Phelps Dodge transaction at the special meeting. "It was very clear from the proxies we received that Inco shareholders were not going to support the Phelps Dodge transaction, so the two companies agreed that it was in our respective best interests to move on," Scott Hand, Chairman and Chief Executive Officer of Inco, stated. "We have enjoyed working with the Phelps Dodge team," Mr. Hand said. "It is a great company and we wish them all the best in the future." Following the termination of the Combination Agreement, Inco is no longer restricted in its ability to solicit acquisition proposals from, provide confidential information to or enter into negotiations or agreements with interested parties concerning potential value enhancing alternatives. The Board has authorized Inco's senior management and its advisors to explore these alternatives consistent with the company's commitment to maximize value to Inco shareholders. Inco also continues to be open to entering into discussions or negotiations with Companhia do Vale Rio Doce with regard to its offer of Aug. 14, 2006. Inco cautions that there can be no assurance that such actions will lead to Inco entering into discussions or negotiations resulting in a binding agreement with respect to any transaction with any party. About Phelps Dodge Headquartered in Phoenix, Arizona, Phelps Dodge Corp. (NYSE: PD) -- http://www.phelpsdodge.com/-- produces copper and molybdenum and is the largest producer of molybdenum-based chemicals and continuous-cast copper rod. The company and its two divisions, Phelps Dodge Mining Co. and Phelps Dodge Industries, employ approximately 13,500 people worldwide. About CVRD Headquartered in Rio de Janeiro, Brazil, Companhia Vale do Rio Doce -- http://www.cvrd.com.br/-- engages primarily in mining and logistics businesses. It engages in iron ore mining, pellet production, manganese ore mining, and ferroalloy production, as well as in the production of nonferrous minerals, such as kaolin, potash, copper, and gold. About Inco Ltd. Headquartered in Sudbury, Ontario, Inco Limited (TSX, NYSE:N) -- http://www.inco.com/-- produces nickel, which is used primarily for manufacturing stainless steel and batteries. Inco also mines and processes copper, gold, cobalt, and platinum group metals. It makes nickel battery materials and nickel foams, flakes, and powders for use in catalysts, electronics, and paints. Sulphuric acid and liquid sulphur dioxide are produced as byproducts. The company's primary mining and processing operations are in Canada, the U.K., and Indonesia. * * * Inco Limited's 3-1/2% Subordinated Convertible Debentures due 2052 carry Moody's Investors Service's Ba1 rating. NORTEL NETWORKS: Selling UMTS Business to Alcatel for US$320MM -------------------------------------------------------------- Nortel Networks has signed a non-binding Memorandum of Understanding for the sale of its UMTS access business to Alcatel for US$320 million. The move will enable Nortel to simplify its business and strategically focus its investments for leadership in key markets while ensuring its customers' UMTS access requirements will continue to be met. Nortel disclosed that as part of its business strategy, it is executing on plans to increase investment in key areas, partner in others, and divest where there is no path for it to lead or realize attractive returns. Mike Zafirovski, president and chief executive officer, said, "Nortel is sharpening its focus on the markets in which we intend to lead. Our UMTS access business lacks the scale and momentum needed to become profitable." "With next-generation mobility, we see an opportunity to change the game by applying our networking expertise and technology innovation to significantly alter the economic paradigm of mobility solutions in the future," Mr. Zafirovski said. "We are absolutely committed to mobility and plan to lead the 4G evolution and play a key role in the mass market adoption of mobile video and multimedia services." Richard Lowe, president, Mobility and Converged Core Networks, said. "With a strong position in GSM and CDMA, an established service provider customer base, and technology leadership in key areas like OFDM- MIMO, we have a solid foundation for success going forward." The proposed sale includes the Company's UMTS access product portfolio made up of the Radio Network Controller and Node B products and OAM solutions, related services and associated assets. Completion of the transaction is subject to the negotiation and execution of a definitive agreement between the Company and Alcatel, completion of consultations with work councils and other employee representatives, and customary closing conditions including regulatory approvals. The transaction is targeted for completion in the fourth quarter of 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. PAKUWON JATI: Raylight Investment Gets 323 Million Shares --------------------------------------------------------- Raylight Investments Ltd. acquired 322.55 million shares in PT Pakuwon Jati Tbk, Antara News reports. Raylight bought out the whole stake of Burgami Investments Ltd in Pakuwon Jati for US$18.13 million, of IDR167.73 billion. Pakuwon Jati director Koh Kian Tee said in a letter to the Jakarta Stock Exchange that the shares are currently subject to a lock-up period and cannot be transferred until the period expires on August 23, 2007. Headquartered in Surabaya, Indonesia, PT Pakuwon Jati Tbk is a property management company. The company operates the Tunjungan Plaza shopping center, the Mandiri Tower office center, the Sheraton Surabaya Hotel and Towers and the Laguna Indah housing and industrial estate. The Troubled Company Reporter - Asia Pacific reported on September 7, 2006, that Moody's Investors Service assigned its Provisional (P)B2 corporate family rating to PT Pakuwon Jati, Tbk. At the same time, Moody's has assigned its (P)B2 senior unsecured rating to Pakuwon Jati Finance BV's proposed US$120 million bond issuance, which will be guaranteed by Pakuwon and PT Artisan Wahyu. AW will become Pakuwon's subsidiary subsequent to the acquisition of newly issued shares from AW. The outlook for both ratings is stable. An earlier TCR-AP report on September 5, 2006, stated that Fitch Ratings has assigned long-term foreign currency and local currency Issuer Default Ratings of 'B' to Pakuwon Jati. In addition, Fitch has assigned a National Long-term rating of 'BBB-(idn)' to Pakuwon. The Outlook for the ratings is Stable. Fitch has also assigned an expected rating of 'B' with a Recovery Rating of 'RR4' to the US$120-million senior unsecured notes due 2011 to be issued by Pakuwon Jati Finance B.V. and guaranteed by Pakuwon. The final rating is contingent upon receipt of documents conforming to information already received. PAKUWON JATI: UBS Hired As Bookrunner for High-Yield Bond --------------------------------------------------------- UBS has been hired as sole bookrunner for a dollar-denominated high-yield bond offering for PT Pakuwon Jati Tbk. It will be the debut offshore issuance for the Indonesian property company, Finance Asia relates. The deal has a B-/B2/B rating and began roadshows on Sept. 7, 2006, in Singapore, before heading to Hong Kong and London. The deal is expected to be in the US$100 million to US$120 million range. UBS will have its work cut out for itself with the deal since - on the whole - the market is generally unfamiliar with the company. Pakuwon Jati is a small company with a market capitalisation of around IDR700 billion and reported revenues of IDR357 billion in 2005. Headquartered in Surabaya, Indonesia, PT Pakuwon Jati Tbk is a property management company. The company operates the Tunjungan Plaza shopping center, the Mandiri Tower office center, the Sheraton Surabaya Hotel and Towers and the Laguna Indah housing and industrial estate. The Troubled Company Reporter - Asia Pacific reported on September 7, 2006, that Moody's Investors Service assigned its Provisional (P)B2 corporate family rating to PT Pakuwon Jati, Tbk. At the same time, Moody's has assigned its (P)B2 senior unsecured rating to Pakuwon Jati Finance BV's proposed US$120 million bond issuance, which will be guaranteed by Pakuwon and PT Artisan Wahyu. AW will become Pakuwon's subsidiary subsequent to the acquisition of newly issued shares from AW. The outlook for both ratings is stable. An earlier TCR-AP report on September 5, 2006, stated that Fitch Ratings has assigned long-term foreign currency and local currency Issuer Default Ratings of 'B' to Pakuwon Jati. In addition, Fitch has assigned a National Long-term rating of 'BBB-(idn)' to Pakuwon. The Outlook for the ratings is Stable. Fitch has also assigned an expected rating of 'B' with a Recovery Rating of 'RR4' to the US$120-million senior unsecured notes due 2011 to be issued by Pakuwon Jati Finance B.V. and guaranteed by Pakuwon. The final rating is contingent upon receipt of documents conforming to information already received. VERITAS DGC: S&P Places 'BB' Credit Rating on Negative Watch ------------------------------------------------------------ Standard & Poor's Ratings Services placed its 'BB' corporate credit rating on Houston, Texas-based seismic provider Veritas DGC Inc. on CreditWatch with negative implications. "The rating action follows the announcement that Veritas and Compagnie Generale de Geophysique (CGG; BB-/Watch Neg/--) have entered into a definitive merger agreement," said Standard & Poor's credit analyst Jeffrey Morrison. According to terms of the agreement, CGG will acquire Veritas in a part cash, part stock transaction. The transaction is valued at US$3.1 billion. The ratings on Paris-based seismic provider CGG were also placed on CreditWatch with negative implications following the announcement. If the acquisition goes ahead under the current terms, close to 50% or US$1.5 billion of it will be paid in cash, resulting in a substantial increase in CGG's consolidated net financial debt to an estimated EUR1.4 billion. CGG's unadjusted net financial debt stood at a low EUR240 million at the end of June 2006. The very expensive price (with a premium of 35% above Veritas' 30-day average share price as of Aug. 29, 2006) is Standard & Poor's other key concern. These factors could be offset by the good geographic fit of the two entities' operations and the strengthened leading global position of the combined entity that would be one of two global leaders. Finalization of the acquisition is likely to take several months, as regulatory and shareholder approvals will need to be obtained. Standard & Poor's intends to indicate future ratings most likely before finalization of the acquisition, once the rating agency has studied the group's updated strategic and financing plan and are confident that the acquisition terms will not change. Headquartered in Houston, Texas, Veritas DGC, Inc. -- http://www.veritasdgc.com/-- is a leading provider of integrated geophysical information and services to the petroleum industry worldwide. Veritas is listed on New York Stock Exchange under the ticker VTS, and has offices in Malaysia and Indonesia. VERITAS DGC: Inks Definitive Merger Agreement with CGG ------------------------------------------------------ Compagnie Generale de Geophysique and Veritas DGC Inc. have entered into a definitive merger agreement wherein CGG will acquire Veritas in a part cash, part stock transaction. Boards of Directors of both companies have unanimously approved the transaction and following shareholder and regulatory approvals, the combined group will operate under the name "CGG- Veritas". The transaction is expected to be completed around year end 2006, subject to receipt of shareholder and regulatory approvals, as well as the satisfaction of other customary closing conditions. The combination of CGG and Veritas will create a strong global pure play seismic company, offering a broad range of seismic services, and geophysical equipment, through Sercel, to the industry across all markets. The combined seismic services will operate the world's leading seismic fleet with 20 vessels, including 14 high capacity 3D vessels, and land crews operating with equivalent capacity in both the Western and Eastern hemispheres. The multi-client services will benefit from two complementary, recent vintage, well-positioned seismic data libraries. In data processing and imaging, CGG's and Veritas' respective positions will combine to create the industry reference. With a combined workforce of approximately 7,000 staff operating worldwide, including Sercel, the future group will provide, through continued innovation, the industry benchmark for seismic technology and services to a broad base of customers including independent, international and national oil companies. CGG's Chairman and CEO, Robert Brunck commented: "We are very enthusiastic about the business potential of CGG and Veritas being combined. CGG-Veritas will be a leading global seismic company and the only pure play listed investment opportunity of this scale in the seismic sector. Because of our many complementarities, with all its multidisciplinary and talented personnel, and the strongest asset base in the sector, the future group will constitute an excellent platform to maximize the value of our respective businesses and technologies. In the context of the seismic sector benefiting from solid fundamentals, as illustrated by our excellent first half financial performance, and with the current growth cycle expected to remain strong and lasting, this transaction will create value to the shareholders of both CGG and Veritas." Veritas' Chairman and CEO, Thierry Pilenko commented: "This transaction presents our combined companies with a tremendous opportunity. Together, the talent of our people, the strength of our technology and technique, our leading edge acquisition capabilities, state-of-the-art proprietary imaging technology and high quality data library assets will enable CGG-Veritas to better serve our customers and deliver superior returns to our investors. Our operations and strategy are very well aligned and I am very excited about the combination of our companies. I look forward to working with Robert Brunck to facilitate the integration of these two outstanding companies". The total consideration for the shares of Veritas is fixed at approximately US$1.5 billion in cash and approximately 47 million CGG ADSs, not including cash paid in respect of employee stock options in the transaction. Veritas shareholders will have the right to elect cash or CGG ADSs, subject to proration if either cash or stock is oversubscribed. The cash consideration will be financed through debt financing fully committed by Credit Suisse. While the per-share consideration is initially set in the merger agreement at US$75 in cash or 2.2501 CGG ADSs, the per-share consideration is subject to adjustment upwards or downwards so that each Veritas share receives consideration representing equal value. This adjustment will, however, not increase or decrease the total amount of cash or the total number of ADSs to be issued in the transaction. The current value of the transaction to Veritas shareholders, based on August 29, 2006 closing price of the CGG's ADSs on the NYSE (US$33.33), is approximately US$3.1 billion. This represents a 33.5% premium over Veritas' closing stock price on the NYSE of US$56.16 on August 29, 2006, and a 34.7% premium over Veritas' 30-trading day average closing price of US$55.69 for the period ending on the NYSE on August 29, 2006. The resulting shareholding of CGG-Veritas should be held approximately 65% by CGG's shareholders and 35% by Veritas' shareholders. Based on the two companies' strong businesses, geographic and client fit, expected pre-tax run rate synergies are estimated by CGG at approximately US$65 million per annum. Based on CGG's estimates, the transaction is expected to be accretive to earnings per share in CY2008 and approximately neutral to cash earnings per share in CY2007. In terms of gearing, CGG is confident the combined group's anticipated cash flows characteristics will provide significant debt amortization capacity that should allow it to maintain its current credit profile. The new Board of Directors is expected to reflect the combined shareholder base with Robert Brunck as Chairman and CEO. Thierry Pilenko, currently Chairman and CEO of Veritas, will be proposed for appointment as one of the combined company's new Board Directors. After the merger, Geophysical Services will be headed by CGG's Christophe Pettenati-Auziere, President Geophysical Services, reporting to him will be Timothy L. Wells, President Western Hemisphere and Luc Benoit-Cattin, President Eastern Hemisphere. Mr. Pettenati-Auziere is currently President, Geophysical Services of CGG, Mr. Benoit-Cattin is currently Executive Vice President, Offshore of CGG and Mr. Wells is currently President and COO of Veritas. The conduct of Sercel's business will be unchanged in the context of this transaction. Credit Suisse and Rothschild are acting as financial advisors to CGG. Skadden, Arps, Slate, Meagher & Flom LLP, Willkie Farr & Gallagher LLP, Linklaters and Goodmans LLP are acting as legal advisors to CGG. Goldman Sachs is acting as financial advisor to Veritas. Vinson & Elkins LLP and Paul, Hastings, Janofsky & Walker (Europe) LLP are acting as legal advisors to Veritas. About CGG Compagnie Generale de Geophysique -- http://www.cgg.com/-- is a global participant in the oilfield services industry, providing a wide range of seismic data acquisition, processing and reservoir services to clients in the oil and gas exploration and production business. It is also a global manufacturer of geophysical equipment through its subsidiary Sercel. About Veritas Headquartered in Houston, Texas, Veritas DGC, Inc. -- http://www.veritasdgc.com/-- is a leading provider of integrated geophysical information and services to the petroleum industry worldwide. Veritas is listed on New York Stock Exchange under the ticker VTS, and has offices in Malaysia and Indonesia. Standard & Poor's Ratings Services gave Veritas a 'BB' corporate credit rating. ========= J A P A N ========= BANCO BRADESCO: Fitch Ups Foreign Currency Rating to BB from BB- ---------------------------------------------------------------- Fitch Ratings upgrades these ratings of Banco Bradesco S.A., in the wake of the upgrade of the country's foreign and local currency Issuer Default Ratings to 'BB'. -- Foreign currency long-term IDR: to BB from BB-; -- Local currency long-term IDR: to BBB- from BB+; and -- National long-term rating: to 'AA+(bra)' from 'AA(bra)'. The long-term Outlook is Stable. Fitch Ratings disclosed the several rating upgrades affecting Brazilian banks, in the wake of the upgrade of the country's foreign and local currency Issuer Default Ratings to 'BB'. The upgrade of the Local currency long-term IDR and national ratings of: -- Banco Bradesco, -- Bradesco Leasing Arrendamento Mercantil, -- Banco Itau Holding Financeira, -- Banco Itau, -- Banco Itau BBA, -- Banco ItauLeasing, -- Unibanco, -- Banco Safra and -- Safra Leasing reflect the banks' intrinsic financial strength, evident in the Individual ratings of the banks. Fitch's upgrade of Brazil's ratings is a result of the country's on-going improvement in public and private external finances and a macroeconomic policy framework that has proved robust in the face of political and financial market pressures. The rating upgrades also reflect Brazil's enhanced external balance sheet and the fact that the country has weathered the latest storm affecting the capital markets in emerging countries. Fitch believes that Brazil's next administration will continue to maintain prudent fiscal and monetary policies but that it is unlikely to implement deep structural reforms. Fitch recognizes the impact of a improving external accounts of the sovereign, the benefits of economic stabilization, decreasing interest rates and inflation on the operating environment for the Brazilian banking system, which will enable the strongest institutions to further expand operations and diversify earnings stream. About Bradesco Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. Banco -- http://www.bradesco.com.br/-- prides itself on serving low- and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, and Japan. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer-mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * As reported in the Troubled Company Reporter on Feb. 23, 2006, Moody's Investors Service shifted Banco Bradesco S.A.'s 'C-' bank financial strength rating to positive from stable. BANCO BRADESCO: Fitch Ups Local Currency Rating to F3 from B ------------------------------------------------------------ Fitch Ratings upgraded Banco Bradesco S.A.'s short-term local currency rating to 'F3' from 'B.' Fitch upgraded select Brazilian banks' short-term local currency ratings to 'F3' from 'B'. This follows the recent upgrade of these banks' local currency Issuer Default ratings to 'BBB-' from 'BB+'. About Bradesco Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. Banco -- http://www.bradesco.com.br/-- prides itself on serving low- and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, and Japan. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer-mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * As reported in the Troubled Company Reporter on Feb. 23, 2006, Moody's Investors Service shifted Banco Bradesco S.A.'s 'C-' bank financial strength rating to positive from stable. * * * Fitch Ratings upgraded on June 30, 2006, these ratings of Banco Bradesco S.A., in the wake of the upgrade of the country's foreign and local currency Issuer Default Ratings to 'BB': -- Foreign currency long-term IDR: to BB from BB-; -- Local currency long-term IDR: to BBB- from BB+; and -- National long-term rating: to 'AA+(bra)' from 'AA(bra)'. Fitch said the long-term Outlook is Stable. DAIEI INCORPORATED: Aims to Cut Outstanding Debts by 50% -------------------------------------------------------- Daiei Incorporated, currently rehabilitating under the umbrella of Marubeni Corporation, is looking to halve its outstanding interest-bearing debt from JPY410 billion to JPY200 billion by the end of fiscal 2006, The Yomiuri Shimbun reports. As of the end of February this year, Daiei's debts -- not including liabilities of consumer credit service subsidiary OMC Card Inc. -- stood at JPY413 billion on the basis of a consolidated settlement of accounts, the report says. According to the Yomiuri, Daiei plans to expedite its debt repayments using proceeds from the sale of the retailer's Pachinko parlor chain operator Pandora Inc. and other outlets. This is on top of a plan to sell Daiei's equity stake in OMC. As reported by the Troubled Company Reporter - Asia Pacific on September 6, 2006, Marubeni is urging Daiei to sell around 20% of its stake in OMC, worth JPY60 billion. Daiei currently holds about 52% of OMC Card. The TCR-AP further reported that Daiei expects to generate JPY100 billion through the sale of 39 properties, including some core branches. The proceeds of the disposal will be used to repay debts. Daiei hopes that its latest plan will successfully shrink its mounting debts, which peaked at JPY2 trillion at the end of February 2001, Fresh Plaza News relates. The planned debt reduction is aimed at strengthening Daiei's finances in order to bolster its negotiating position for a possible business tie-up with either Aeon Co. or United States- based Wal-Mart Stores Inc., both of which reportedly submitted merger proposals to Daiei on September 4, 2006, Fresh Plaza adds. About Daiei Inc. Headquartered in Hyogo, Tokyo, Daiei Incorporated -- http://www.daiei.co.jp/-- operates about 3,000 stores through its subsidiaries and franchisees. Its retail businesses include supermarkets, discount stores, department stores, and specialty shops. Other businesses include restaurants, hotels, and real estate services. Domestic sales make up more than 90% of its revenues. Daiei diversified haphazardly during the 1980s loading up on debt and failing to keep up with new, more efficient competitors. Daiei, with the support of the Industrial Rehabilitation Corporation of Japan, has decided to close 54 stores nationwide, including subsidiaries, as part of its new business reconstruction plan. Daiei has been rehabilitated under the auspices of the Industrial Revitalization Corp. of Japan after accumulating huge debts during the bubble economy of the late 1980s. With the IRCJ's help since late 2004, Daiei's finances have started to show a recovery as it has shut down unprofitable stores and sold subsidiaries. As reported by the Troubled Company Reporter - Asia Pacific on August 18, 2006, Marubeni Corporation assumed the leading role in Daiei's turnaround efforts by acquiring the entire 33.67% stake held by the IRCJ in Daiei. Marubeni now holds a 44.6% stake in Daiei. A subsequent TCR-AP report on September 1, 2006, stated that Marubeni is keen on selling part of its 44.6% holding in Daiei to either Aeon Co or Wal-Mart Stores Inc. However, in order for the retail giants to accept Marubeni's proposal, Daiei's liabilities must be trimmed to an acceptable level. Although Daiei cut its group interest-bearing liabilities to aboutJPY400 billion as of the end of February 2006 from more than JPY1 trillion a year earlier, Marubeni views the debt level as still being too high. METALDYNE CORP: Moody's Cuts B3 Corporate Family Rating to Caa1 --------------------------------------------------------------- Moody's Investors Service lowered the ratings for Metaldyne Corporation -- Corporate Family, to Caa1 from B3; guaranteed senior unsecured notes, to Caa2 from Caa1; guaranteed senior subordinated notes, to Caa3 from Caa2. At the same time Moody's affirmed the B3 ratings of the guaranteed senior secured credit facility and assigned B3 ratings to the company's extended senior secured revolving credit facility and new synthetic letter of credit facility. The lowered ratings reflect the challenging industry conditions of rising commodity prices, and declining OEM production levels, which have resulted in Metaldyne's weak credit metrics. For the 12 months ending July 2, 2006, Debt was 7.2x and EBIT interest was 0.6x. The automotive supplier industry is expected to continue to experience pressures from announced production volume decreases from US OEMs for the second half of 2006, limiting the prospects for any meaningful near term improvement in financial metrics. Despite these challenging conditions, the outlook is stable for the Caa1 rating. The company maintains adequate liquidity of approximately US$126 million under its revolving credit and securitization facilities that provides a degree of financial flexibility until operating performance improves. The notching of the senior secured credit facilities favorably reflects the relative strength of the collateral coverage for the committed amount of the facilities. While the senior secured facilities exhibit some coverage deficiency under the domestic assets, conservative enterprise values for the consolidated company support full coverage of the senior secured credit facilities. The company continues make progress in addressing deficiencies in internal controls that were identified through independent investigation by the company's auditors. It is the company's goal to satisfy Section 404 requirements of the Sarbanes-Oxley Act for its fiscal year ending December 30, 2007. These ratings were lowered: Metaldyne Corporation: * Corporate Family Rating to Caa1 from B3; * US$150 million of 10% guaranteed senior unsecured notes due November 2013, to Caa2 from Caa1 * US$250 million of 11% guaranteed senior subordinated notes due June 2012, to Caa3 from Caa2; These ratings were affirmed: * B3 rating for Metaldyne LLC's guaranteed senior secured credit facilities, consisting of: * US$400 million guaranteed senior secured tranche D term loans due December 2009; These ratings were assigned: * B3 rating for the extended US$200 million guaranteed senior secured revolving credit facility due August 2011, * B3 rating for the new US$100 million Synthetic L/C Facility due August 2011. These rating will be withdrawn upon its refinancing: * B3 rating for the US$200 million guaranteed senior secured revolving credit facility due May 2007; About Metaldyne Headquartered in Plymouth, Mich., Metaldyne Corp -- http://www.metaldyne.com/-- is a leading global designer and supplier of metal-based components, assemblies and modules for transportation related powertrain and chassis applications including engine, transmission/transfer case, wheel end and suspension, axle and driveline, and noise and vibration control products to the motor vehicle industry. The company has operations in these Asian locations: Suzhou, China; Pyeongtaek, Korea; Jamshedpur, India; and Yokohama, Japan. METALDYNE COMPANY: S&P Puts B Rating on US$574M Debt Facilities --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' rating and '2' recovery rating to Metaldyne Company LLC's pending US$574.7 million amended and restated senior secured credit facilities, indicating the expectation for substantial (80%- 100%) recovery of principal in the event of a payment default. At the same time, Standard & Poor's affirmed its 'B' corporate credit rating on parent Metaldyne Corp. The outlook is negative. The ratings on the Plymouth, Michigan-based auto supply company reflect: * the company's limited liquidity; * its highly leveraged capital structure; and * the cyclical and competitive pricing pressures of the capital-intensive automotive metal component supply industry. Metaldyne is one of the largest independent manufacturers of engineered metal components for the global automotive market, with content on about 90% of the top 40 NAFTA light vehicles and revenues of around US$2 billion. About Metaldyne Headquartered in Plymouth, Mich., Metaldyne Corp -- http://www.metaldyne.com/-- is a leading global designer and supplier of metal-based components, assemblies and modules for transportation related powertrain and chassis applications including engine, transmission/transfer case, wheel end and suspension, axle and driveline, and noise and vibration control products to the motor vehicle industry. The company has operations in these Asian locations: Suzhou, China; Pyeongtaek, Korea; Jamshedpur, India; and Yokohama, Japan. XM SATELLITE: SEC Wants a Peek Into Subscriber Targets and Costs ---------------------------------------------------------------- The United States Securities and Exchange Commission has asked XM Satellite Radio Holdings Inc. to voluntarily provide documents regarding the Company's subscriber targets, costs associated with attempting to reach those targets, and related matters during the third and fourth quarters of 2005. Joseph M. Titlebaum, the Company's General Counsel and Secretary said in an SEC filing that the information request appears to pertain to matters similar to the issues underlying the previously disclosed securities litigation filed against XM Satellite earlier this year. Mr. Titlebaum said the Company will cooperate fully with the SEC's informal inquiry. Purported nationwide class of purchasers of XM's common stock between July 28, 2005, and May 24, 2006, have commenced actions in the United States District Court for the District of Columbia against the Company and Hugh Panero, its chief executive officer. The complaint seeks an unspecified amount of damages and claims for alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5. The shareholder suit alleges that various statements by the Company and its management failed to project accurately or disclose in a timely manner the amount of higher costs to obtain subscribers during the fourth quarter of 2005. About XM Satellite Headquartered in Washington, D.C., XM Satellite Radio Inc. (Nasdaq: XMSR) -- http://www.xmradio.com/-- is a wholly owned subsidiary of XM Satellite Radio Holdings Inc. XM has been publicly traded on the NASDAQ exchange since Oct. 5, 1999. XM's 2006 lineup includes more than 170 digital channels of choice from coast to coast: the most commercial-free music channels, plus premier sports, talk, comedy, children's and entertainment programming; and 21 channels of the most advanced traffic and weather information. XM has broadcast facilities in New York and Nashville, and additional offices in Boca Raton, Florida; Southfield, Michigan; and Yokohama, Japan. At June 30, 2006, XM Satellite Radio Inc.'s balance sheet showed a stockholders' deficit of US$358,079,000, compared to a deficit of US$362,713,000, at Dec. 31, 2005. * * * As reported in the Troubled Company Reporter on April 21, 2006, Standard & Poor's Ratings Services assigned its 'CCC' rating to XM Satellite Radio Inc.'s proposed US$600 million senior unsecured notes. The senior unsecured notes are rated one notch below the corporate credit rating because of the sizable amount of secured debt in the company's capital structure relative to its asset base. At the same time, Standard & Poor's assigned its 'B-' rating and recovery rating of '1' to XM's proposed US$250 million first- lien secured revolving credit facility, indicating an expectation of full recovery of principal in the event of a payment default. ========= K O R E A ========= LYONDELL CHEMICAL: Citgo Buy Cues Fitch to Affirm Ratings --------------------------------------------------------- Fitch Ratings affirmed and removed from Rating Watch Evolving the ratings for Lyondell Chemical Company and Equistar Chemicals L.P. following Lyondell's announcement to acquire the remaining 41.25% interest held by Citgo Petroleum Corporation in Lyondell- Citgo Refinery LP for US$2.1 billion. The affirmed ratings are: Lyondell: -- Issuer default rating 'BB-' -- Senior secured credit facility 'BB+' -- Senior secured notes and debentures 'BB+' Equistar: -- Issuer default rating 'B+' -- Senior secured credit facility 'BB+/RR1' -- Senior unsecured notes 'BB-/RR3' At the same time, Fitch downgraded Lyondell's senior subordinated notes rating to 'B' from 'B+' and prospectively assigns a 'BB+' rating to Lyondell's new US$800 million senior secured revolving credit facility and US$2.65 billion senior secured term loan. Fitch also affirmed these: Millennium Chemicals Inc.'s: -- Issuer Default Rating 'B+' -- Convertible senior unsecured debentures 'BB/RR2' Millennium America Inc.: --Issuer Default Rating 'B+' --Senior secured credit facility and term loan 'BB+/RR1' --Senior unsecured notes 'BB/RR2' The Rating Outlook for Lyondell, Equistar and Millennium is Stable. For Lyondell, approximately US$5.4 billion of debt is covered; for Equistar, approximately US$2.2 billion of debt is covered; and for Millennium Chemicals, approximately US$900 million of debt is covered by these actions. The rating actions resolve the Rating Watch Evolving status put in place on July 21, 2006, following Lyondell's and its partner, CITGO, announcement to discontinue the auction of LCR. The rating affirmations for Lyondell's IDR, senior secured credit facility, and senior secured notes and debentures are supported by the increased access to cash flow from LCR as a result of its acquisition of CITGO's remaining 41.25% in the refinery. Given the fact that the refinery will be operating under a new crude supply agreement between LCR and PDVSA (which is expected to be based fully on market prices) and Fitch's outlook for continued strength in refining margins, Fitch expects Lyondell's benefit as the sole owner of LCR will offset the initial increase in indebtedness to fund the purchase of CITGO's minority share. Additionally Lyondell is expected to benefit from LCR's unique operating capabilities, its advantaged location and recent capital investments made to the refinery. Lyondell's consolidated total debt decreased, by US$457 million, to US$5.84 billion at June 30, 2006, from Dec. 31, 2005. On a proforma basis, Fitch expects total consolidated debt subsequent to the acquisition to be US$8.49 billion and Lyondell's parent debt level to reach US$5.42 billion. Fitch also expects Lyondell credit metrics will rebound within less than 18 months due to higher EBITDA levels and moderate debt reduction. By 2007 year-end Fitch anticipates Lyondell's consolidated as well as Lyondell parent level credit metrics to improve and surpass 2005 levels. Total balance sheet debt is expected to return to near current levels by the end of 2008. The affirmation also considers debt reduction at Lyondell parent will be heavily dependent on cash flow received from LCR and Equistar. Even though Fitch perceives integration and operating risks to be low, event risk associated with potential hurricane activity in the US Gulf and future political actions taken by the Venezuelan government could have a material negative affect on the refinery operations. Fitch views political risk as it relates to refinery operations higher than before due to the exit of CITGO as a partner and the potential for Venezuelan heavy sour crude supplies to be diverted away from the U.S. to other geographies. The one notch downgrade of Lyondell's senior subordinated notes to 'B' reflects deep subordination with the increased amount of senior secured debt post acquisition. Lyondell's exposure to potential weakness in methyl tertiary butyl ether markets and the loss of profitability if alternative products are produced remains a rating concern, as does continued volatility of raw material prices and its impact on demand, dividends and debt levels. Operating results in 2006 and 2007 are likely to be unstable quarter to quarter, but overall tight supply demand fundamentals coupled with low inventories should prove favorable for Lyondell and its businesses in the short term. The Stable Outlook reflects favorable business conditions for the markets Lyondell participates in and the expectation that Lyondell and its subsidiaries will continue to use excess cash for debt repayment. Fitch also expects that energy and raw material prices will continue to be volatile and remain a headwind for the company. Potential weaknesses related to MTBE as well as Millennium's business are likely to be offset by strong operations from petrochemical and refining operations. The rating affirmations for Equistar are supported by Fitch's view that the credit profile at Equistar will not materially change as a result of the purchase of CITGO's remaining share of LCR. Lyondell's management has been consistent that the target debt level at Equistar is US$1.8 billion (approximately US$500 million lower than US$2.3 billion total debt level during the last cyclical trough). Fitch expects Lyondell will continue to be committed to previously stated debt reduction targets. Furthermore the rating affirmations incorporate Fitch's outlook for favorable market conditions for the chemical sector in the near-term; however in any one quarter margins may be under pressure from volatile raw materials (crude oil and natural gas). Margins are expected to remain well above a mid-cycle level for 2006 and 2007. Lastly, the ratings also include Equistar's product offerings of ethylene, ethylene derivatives and co-products, its significant earnings leverage, as well as strong cash generation. However, Equistar's ratings are limited by Lyondell's strong access to its cash flow, its focus on North American markets, and a narrower product portfolio compared to Lyondell. The rating affirmations for Millennium reflect Fitch's view that the credit profile at Millennium will also not materially change as a result of the purchase of CITGO's remaining share of LCR. The ratings consider the cyclical nature of Millenniun's commodity products, strong dividends through its 29.5% interest in Equistar, sizable debt reduction during the last 15-months and Lyondell's ownership of the company. Currently, Millennium cannot declare dividends to Lyondell due to certain restrictions in its existing bond indentures. Concerns include weaker than expected results for Millennium's core businesses and expectations for future cash outflows for distributions to Lyondell. Furthermore, Fitch continues to monitor any new developments regarding Millennium's ongoing lead paint litigation. Lyondell holds leading global positions in propylene oxide and derivatives, plus TiO2, as well as leading North American positions in ethylene, propylene, polyethylene, aromatics, acetic acid, and vinyl acetate monomer. With the recent acquisition of LCR, Lyondell also expands it refining operations. The company benefits from strong technology positions and barriers to entry in its major product lines. Lyondell owns 100% of Equistar; 70.5% directly and 29.5% indirectly through its wholly owned subsidiary Millennium. Post-acquisition, LCR is a wholly owned subsidiary of Lyondell as well. In 2005, Lyondell and subsidiaries generated US$2.22 billion of EBITDA on US$18.6 billion in sales. Headquartered in Houston, Texas, Lyondell Chemical Company (NYSE: LYO) -- http://www.lyondell.com/-- is North America's third-largest independent, publicly traded chemical company. Lyondell manufacturers basic chemicals and derivatives including ethylene, propylene, titanium dioxide, styrene, polyethylene, propylene oxide and acetyls. It also refines heavy, high-sulfur crude oil and produces gasoline-blending components. It operates on five continents and employs approximately 11,000 people worldwide. In the Asia-Pacific, the company has locations in Australia, China, Japan, New Zealand, Singapore, Taiwan and Korea. LYONDELL CHEMICAL: Tenders Offer for 9.625% Ser. A Secured Notes ---------------------------------------------------------------- Lyondell Chemical Company has commenced a cash tender offer for all of its outstanding US$849,160,000 aggregate principal amount of its 9.625%, Series A, Senior Secured Notes due 2007. Relative to the offer, the Company is soliciting consents from holders of Notes to effect certain proposed amendments to the indenture governing the Notes, including the elimination of substantially all the restrictive covenants, certain events of default, and certain other provisions. The Company intends to fund the Offer with proceeds from a financing transaction. The Offer will expire on Oct. 2, 2006 and the Consent Solicitation will expire on Sept. 18, 2006. Holders who validly tender Notes will be deemed to have validly delivered consents related to such Notes. The total consideration includes a consent payment of US$30 per US$1,000 principal amount of Notes to holders who validly tender and validly deliver consents, at or prior to the Consent Payment Deadline. In addition, accrued and unpaid interest from the last interest payment date to, but not including, the applicable payment date will be paid on all validly tendered and accepted Notes. J.P. Morgan Securities Inc. is the exclusive dealer manager for the Offer and solicitation agent for the Consent Solicitation. Questions regarding the Offer and the Consent Solicitation may be directed to J.P. Morgan Securities Inc., at (212) 270-7407 or (800) 245-8812 (U.S. toll-free). Copies of the Offer and Consent Statement and related materials may be obtained from the Information Agent, D.F. King & Co., Inc., at (800) 758-5378 (U.S. toll-free) and (212) 269-5550 (collect). Headquartered in Houston, Texas, Lyondell Chemical Company (NYSE: LYO) -- http://www.lyondell.com/-- is North America's third-largest independent, publicly traded chemical company. Lyondell manufacturers basic chemicals and derivatives including ethylene, propylene, titanium dioxide, styrene, polyethylene, propylene oxide and acetyls. It also refines heavy, high-sulfur crude oil and produces gasoline-blending components. It operates on five continents and employs approximately 11,000 people worldwide. In the Asia-Pacific, the company has locations in Australia, China, Japan, New Zealand, Singapore, Taiwan and Korea. * * * Fitch Ratings affirmed Lyondell Chemical Company's issuer default rating at 'BB-'; senior secured credit facility at 'BB+'; and senior secured notes and debentures at 'BB+'. At the same time, Fitch downgraded Lyondell's senior subordinated notes rating to 'B' from 'B+' and assigns a 'BB+' rating to Lyondell's US$800 million senior secured revolving credit facility and US$2.65 billion senior secured term loan. NOVELIS INC: Spin-Off Prompts Moody's to Downgrade Ratings ---------------------------------------------------------- Moody's Investors Service downgraded Novelis Inc.'s corporate family rating to B1 from Ba3, the bank revolver rating to Ba3 from Ba2, the bank term loan rating to Ba3 from Ba2 and its senior unsecured notes to B2 from B1. Moody's also downgraded Novelis Corp's bank term loan rating to Ba3 from Ba2. These ratings remain under review for further possible downgrade. At the same time, Moody's lowered Novelis' speculative grade liquidity rating to SGL-4 from SGL-3. Ratings downgraded are: Novelis Inc. * Corporate Family Rating, Downgraded to B1 from Ba3 * Speculative Grade Liquidity Rating, Downgraded to SGL-4 from SGL-3 * Senior Secured Bank Credit Facility, Downgraded to Ba3 from Ba2 * Senior Unsecured Regular Bond/Debenture, Downgraded to B2 from B1 Novelis Corporation * Senior Secured Bank Credit Facility, Downgraded to Ba3 from Ba2 The downgrades reflect the challenges Novelis faces in its 2006 performance due to its remaining exposure to certain contracts with price ceilings and the more negative than expected impact of the differential between used beverage can prices and primary aluminum prices. In addition, the downgrade acknowledges the increased costs associated with the review and restatement of Novelis' financial statements since its spin-off from Alcan, the increased interest costs due to waivers required under the bank agreements, and the step-up in the interest rates on the notes due to non-registration. While the rating considers the leading position of Novelis in the can sheet and conversion markets as well as its large geographic scope and global footprint, Moody's sees 2006 as a transition year for Novelis both operationally and from a management and reporting perspective. Therefore, Moody's expects the time frame for meaningful deleveraging to be more protracted than anticipated. The continuing review reflects the company's delay in filing financial statements for 2006 to date and the consequent default notices received from bondholders. The company filed its 2005 10K on August 25, 2006, within the required time frame. To the extent the company is able to file its 2006 10Q's within the time frame specified in the bank waivers and bondholders default notices, and obtain any covenant relief that might be required, Moody's expects the ratings will likely be confirmed. The change in the speculative grade liquidity rating to SGL-4 from SGL-3 reflects the potential for covenant shortfalls later in the year as reduced revenues and increased costs erase existing covenant cushions. In addition, step-ups in required ratios will further stress the company's ability to comply. As a consequence, the company remains vulnerable to the bank's willingness to waive and or adjust covenant levels. Based in Atlanta, Georgia, Novelis, Inc., (NYSE: NVL) (TSX: NVL) -- http://www.novelis.com/-- provides customers with a regional supply of technologically sophisticated rolled aluminum products throughout Asia, Europe, North America, and South America. The company operates in 11 countries and has approximately 13,000 employees. Through its advanced production capabilities, the company supplies aluminum sheet and foil to the automotive and transportation, beverage and food packaging, construction and industrial, and printing markets. In Asia, the company has operations in Malaysia and Korea. =============== M A L A Y S I A =============== ANTAH HOLDINGS: Court Grants Restraining Order ---------------------------------------------- On August 9, 2006, Antah Holdings Berhad obtained a restraining order from the Kuala Lumpur High Court. The order was secured to facilitate the implementation of the company's proposed restructuring scheme, which was submitted on May 9, 2006, to the Securities Commission and Foreign Investment Committee for approval. As reported by the Troubled Company Reporter - Asia Pacific on May 15, 2006, Antah proposed to implement a restructuring scheme to restore its strong financial footing through the injection of new viable businesses. About Antah Holdings Headquartered in Petaling Jaya, Selangor Darul Ehsan, Malaysia, Antah Holdings Berhad -- http://www.antah.com.my/-- manufactures and trades pharmaceutical products and fluid engineering and manufacturing. The Company's other activities include retailing of houseware and kitchenware, property development, insurance broking, provision of management services, and investment holding. The Group discontinued its beverage and security services operations. The Group operates in Malaysia, Australia, United Kingdom, and Singapore. The Company's balance sheet as of June 30, 2006, showed total assets of MYR678.492 million and total liabilities of MYR1.039 billion, resulting into a shareholders' deficit of MYR361.167 million. The Company's default on its credit facilities totaled MYR286,442,000, as of April 30, 2006. ELBA HOLDINGS: Seeks to Regularize Financial Condition ------------------------------------------------------ Elba Holdings Berhad is looking into formulating a plan to regularize its financial condition in accordance with the requirements of the Bursa Malaysia Securities Berhad's Amended Practice Note 17. The company disclosed on May 8, 2006, that it is an affected listed issuer of the Amended Practice Note 17 category of the Listing requirements. Based on the audited consolidated results for the year ended December 31, 2005, the company's shareholders' equity on consolidated basis was less than 25% of its issued and paid up capital and less than the minimum issued and paid up capital as required by the Listing Requirements. In addition, the company's auditors have expressed a debt with emphasis on the company's going concern for fiscal 2005. In this regard, Elba is required to formulate and implement a plan to regularize its financial condition. In the event the company fails to comply with the obligations to regularize its condition, Bursa Malaysia will commence delisting procedures against the company. About Elba Holdings Elba Holdings Berhad -- http://www.elbaholdings.com.my/-- is a Malaysia-based investment holding company engaged in the provision of management consultancy services to its subsidiaries. Through its subsidiaries, the Company manufactures, distributes and trades in apparels. ELBA HOLDINGS: June 30 Balance Sheet Reveals Insolvency ------------------------------------------------------- Elba Holdings Berhad has submitted for public release its unaudited financial report for the second quarter ended June 30, 2006. Revenue of the group for the quarter under review was lower at MYR3,789,000, compared with MYR5.556,000 revenue in the same quarter last year. For the six months to June 30, 2006, the group booked MYR11,098,000 revenue as against MYR22,524,000 in the same period last year. Loss before taxation for the quarter ended June 30, 2006, was MYR6,734,000, as against a pre-tax loss of MYR7,174,000 in the same quarter last year. For the six months to June 30, 2006, pre-tax loss was MYR11,992,000, higher than the MYR6,694,000 pre-tax loss in the same period last year. Elba Holdings' June 30, 2006 balance sheet revealed strained liquidity with current assets of MYR61,591,000 available to pay current liabilities of MYR87,460,000, coming due within the next 12 months. As of June 30, 2006, Elba has total assets of MYR85,230,000 and total liabilities of MYR90,799,000, resulting into a stockholders' deficit of MYR5,569,000. There was no dividend declared for the period under review. Elba Holdings' Second Quarter Report and its accompanying notes are available for free at: http://bankrupt.com/misc/tcrap_elbaholdings090706.xls http://bankrupt.com/misc/tcrap_elbaholdingsnotes090706.doc About Elba Holdings Elba Holdings Berhad -- http://www.elbaholdings.com.my/-- is a Malaysia-based investment holding company engaged in the provision of management consultancy services to its subsidiaries. Through its subsidiaries, the Company manufactures, distributes and trades in apparels. The company disclosed on May 8, 2006, that it is an affected listed issuer of the Amended Practice Note 17 category of the Listing requirements. Based on the audited consolidated results for the year ended December 31, 2005, the company's shareholders' equity on consolidated basis was less than 25% of its issued and paid up capital and less than the minimum issued and paid up capital as required by the Listing Requirements. In addition, the company's auditors have expressed a debt with emphasis on the company's going concern for fiscal 2005. As of June 30, 2006, Elba has total assets of MYR85,230,000 and total liabilities of MYR90,799,000, resulting into a stockholders' deficit of MYR5,569,000. ELBA HOLDINGS: June 30 Public Spread Level Pegged at 62.89% ----------------------------------------------------------- Elba Holdings Berhad has complied with the level of public shareholding spread as prescribed under Bursa Malaysia Securities Berhad's Listing Requirement. The Bourse requires a listed issuer to have at least 25% of its listed shares in the hands of a minimum of 1,000 public shareholders holding not less than 100 shares each. The public shareholding spread of the Company as of June 30, 2006, stands at 62.89% of the total shareholding in the hands of 2,568 public shareholders. About Elba Holdings Elba Holdings Berhad -- http://www.elbaholdings.com.my/-- is a Malaysia-based investment holding company engaged in the provision of management consultancy services to its subsidiaries. Through its subsidiaries, the Company manufactures, distributes and trades in apparels. The company disclosed on May 8, 2006, that it is an affected listed issuer of the Amended Practice Note 17 category of the Listing requirements. Based on the audited consolidated results for the year ended December 31, 2005, the company's shareholders' equity on consolidated basis was less than 25% of its issued and paid up capital and less than the minimum issued and paid up capital as required by the Listing Requirements. In addition, the company's auditors have expressed a debt with emphasis on the company's going concern for fiscal 2005. As of June 30, 2006, Elba has total assets of MYR85,230,000 and total liabilities of MYR90,799,000, resulting into a stockholders' deficit of MYR5,569,000. ELBA HOLDINGS: Defaults on Loan Facilities ------------------------------------------ Elba Holdings Berhad disclosed on September 1, 2006, that an event of default in payments by the company and its subsidiaries has occurred. On March 14, 2006, Elba Holdings received notice for the repayment of the MYR45-million term loan facility triggered by a downgrade in corporate credit rating assigned by an independent credit rating company. Subsequent to the notice, other financial institutions have indicated to the Company and its subsidiaries the wish to recall majority of the credit facilities. The credit facilities utilized by the Company and its subsidiaries amounted to MYR80.75 million as of June 30, 2006. Under the prevailing circumstances, the management is of the opinion that all payments to financial institutions be suspended until a restructuring scheme is put in place. Towards this endeavor, a reputable financial advisor has been appointed to assist the Company in drawing up plans in conjunction with the input of the major creditors. The Company is currently negotiating with the creditors, including financial institutions, to restructure the outstanding liabilities. The Company and the Group as a whole are in the process of exploring the possibility of undertaking a restructuring exercise as discussed above. With the default, the financial institutions could recall their respective banking facilities and demand for repayments. Wherein the Company and its subsidiaries are unable to meet obligations for immediate repayment, the said financial institutions have rights to institute winding up proceedings under the statutory regulations. The defaults in repayment of the Company's MYR45-million term loan facility could constitute a technical default for other credit facilities granted by other lenders to the Group as the Company had given corporate guarantees to certain credit facilities granted to subsidiaries. The Company's board of directors believes that the Company will not be able to settle all its debts in full when they fall due within a period of 12 months from the date of the announcement subject to the successful implementation of a restructuring scheme to be proposed. A list of the facilities in default is available for free at: http://bankrupt.com/misc/tcrap_elbaholdingsdefault090706.doc About Elba Holdings Elba Holdings Berhad -- http://www.elbaholdings.com.my/-- is a Malaysia-based investment holding company engaged in the provision of management consultancy services to its subsidiaries. Through its subsidiaries, the Company manufactures, distributes and trades in apparels. The company disclosed on May 8, 2006, that it is an affected listed issuer of the Amended Practice Note 17 category of the Listing requirements. Based on the audited consolidated results for the year ended December 31, 2005, the company's shareholders' equity on consolidated basis was less than 25% of its issued and paid up capital and less than the minimum issued and paid up capital as required by the Listing Requirements. In addition, the company's auditors have expressed a debt with emphasis on the company's going concern for fiscal 2005. As of June 30, 2006, Elba has total assets of MYR85,230,000 and total liabilities of MYR90,799,000, resulting into a stockholders' deficit of MYR5,569,000. METROPLEX BERHAD: Needs to Submit Revamp Plan by December 8 ----------------------------------------------------------- Metroplex Berhad has until December 8, 2006, to submit its proposed composite scheme of arrangement to regularize its financial condition to relevant authorities for approval. As reported by the Troubled Company Reporter - Asia Pacific on July 10, 2006, the Company is negotiating with its lenders on the Proposed Composite Scheme of Arrangement to regularize its financial condition. According to the TCR-AP, Metroplex's unaudited quarterly results for the financial year ended January 31, 2006, revealed that the Company has a deficit in the shareholders' equity on a consolidated basis amounting to MYR196.3 million. The deficit in the shareholders' equity is mainly attributable to the Metroplex Group's accumulated losses exceeding the Group's paid- up share capital and reserves. As such, Metroplex is an affected listed issuer pursuant the Listing Requirements of Bursa Securities. As an affected listed issuer, Metroplex is required to submit a regularization plan to relevant authorities for approval and implement the Plan within a timeframe stipulated by the approving parties. About Metroplex Berhad Headquartered in Kuala Lumpur, Malaysia, Metroplex Berhad's activities are hotel and casino operations. Other activities include property investment, property development, provision of administrative services, general and building construction, leasing and financing, trading of building materials and operation of hotel management training school. Operations are carried out in Malaysia, Hong Kong, and the Philippines. On April 28, 2005, Morgan Stanley Emerging Markets Inc. had filed a wind-up petition against the Company with the Kuala Lumpur High Court. In the event the wind-up petition succeeds, the Company will be put into liquidation. Metroplex Berhad's April 30, 2006 balance sheet revealed total liabilities of MYR1,417,778,000 exceeding total assets of MYR1,214,518,000, resulting into a shareholders' deficit of MYR203,260,000. NORTH BORNEO: Auditors Still Working on 2005 Annual Accounts ------------------------------------------------------------ The North Borneo Corporation Berhad disclosed that its auditor, Pannell Kerr Forster, has commenced audit on the company's annual accounts for the financial year ended December 31, 2005, after the firm's appointment was approved at the company's extraordinary general meeting on June 29, 2006. The company further said that the Auditor is still auditing the 2005 Accounts, hence the delay in submission. The 2005 Annual Audited Accounts was due on April 30, 2006. As a consequence of not submitting the 2005 AAA on time, which is non-compliance of the Listing Requirements, Bursa Malaysia Securities Berhad may take action against the company. The Troubled Company Reporter - Asia Pacific reported on August 2, 2006, that Bursa Malaysia publicly reprimanded and imposed a fine on The North Borneo Corporation for failing to issue for public release its annual audited accounts for the financial year ended December 31, 2005, by the April 30, 2006 deadline. The TCR-AP also reported that on December 16, 2005, the Company was publicly reprimanded by Bursa Securities for failing to submit to Bursa Securities for public release its annual audited accounts for the financial year ended December 31, 2004, by April 30, 2005. The Company only issued its 2004 AAA on June 16, 2005. About The North Borneo Headquartered in Sabah, Malaysia, The North Borneo Corporation Berhad engages in the management of forest management unit and investment holding. The Group operates in Malaysia and Bermuda. Due to its continuous losses, the Kuala Lumpur Stock Exchange placed the Company under the Practice Note 4/2001 category in April 2001 and was ordered to start regularizing its financial condition. On April 28, 2005, the Securities Commission has agreed to North Borneo's proposal to dispose of its business as part of the Company's efforts to regularize its finances and restructure its debts. The Plan, however, met objections from creditors. On March 6, 2006, two scheme creditors of North Borneo Corp. -- Sabah Development Bank and Prokhas Sdn Bhd -- withdrew their support of the Company's proposed debt restructuring, saying that they are no longer agreeable to the terms of the planned business disposal as part of the restructuring program. The Company's March 31, 2006, balance sheet showed total assets of MYR1,662,000 and total liabilities of MYR163,379,000 resulting into a MYR161,717,000 deficit in shareholders' funds. PAXELENT CORPORATION: Has Four Months to Submit Rehab Plan ---------------------------------------------------------- Paxelent Corporation Berhad is left with four months to submit its financial regularization plan to relevant parties for approval. As of September 1, 2006, the company said its is still negotiating with various creditors for the restructuring of its finances. As reported by the Troubled Company Reporter - Asia Pacific on June 12, 2006, the Company is formulating a scheme to regularize its financial condition pursuant to Practice Note 17/2005 of Bursa Malaysia Securities Berhad's Listing Requirements, of which it is an affected issuer. About Paxelent Corporation Paxelent Corporation is engaged in investment holding. The principal activities of the subsidiaries are property investment, provision of information technology solutions, investment holding, marketing and sale of hard disk drive components. The Company is a public limited liability company, incorporated and domiciled in Malaysia, and is listed on the Second Board of Bursa Malaysia Securities Berhad. The Company is actively pursuing various restructuring schemes to address its default issues. These schemes would involve raising funds through partial disposal of assets, potential debts waivers and rescheduling of the debts. TALAM CORPORATION: Securities Resume Trading -------------------------------------------- Trading in Talam Corporation Berhad's securities resumed on September 4, 2006, after the shares were suspended on Sept. 1, 2006. As reported by the Troubled Company Reporter - Asia Pacific, Talam Corporation's shares were suspended on Sept. 1 due to a wind-up petition served on the company's wholly owned subsidiary, Lestrai Puchong Sdn Bhd. According to the TCR-AP, Talam would file an appeal with the Court of Appeal against the High Court's wind-up order, and also an application for stay of the Official Receiver in exercising his powers as a liquidator. About Talam Corp. Headquartered in Kuala Lumpur, Malaysia, Talam Corporation Berhad is principally engaged in property development. Its other activities include trading building materials, manufacturing of ready mixed concrete, provision for higher educational programs, development and management of hotel, golf and country club horticulturists, agriculturists and landscaping designers and contractors and investment holding. Operations of the Group are carried out in Malaysia and China. The Company has accumulated losses and debt in the past few years. As of January 31, 2006, the Company registered accumulated losses of MYR253,898,000. In a bid to cut back on its liabilities, the firm has proposed a debt restructuring scheme, which is still pending approval of relevant authorities. TENAGA NASIONAL: Fully Redeems MYR600M IRUF ------------------------------------------- Tenaga Nasional Berhad's MYR600 million Murabahah Underwritten Notes Issuance Facility (1999/2006) expired on August 18, 2006, and its MYR600 million Islamic Revolving Underwritten Facility (1996/2006) was fully redeemed on its maturity date on August 27, 2006. In this regard, the P1 ratings of both the IRUF and MUNIF are no longer valid and Rating Agency Malaysia has no more rating obligations on the said instruments. That aside, RAM will continue to monitor Tenaga's other debt issues, the AA1/P1 ratings of which were reaffirmed in May 2006. 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. WEMBLEY INDUSTRIES: SC Denies Time Extension Request ---------------------------------------------------- The Securities Commission on August 29, 2006, rejected Wembley Industries Holdings Berhad's application to extend until January 31, 2007, the time for the company to execute the development agreement with Dewan Bandaraya, Kuala Lumpur. The Troubled Company Reporter - Asia Pacific reported on August 4, 2006, that Wembley Industries, on July 3, submitted to the Securities Commission an application to extend for another year the signing of a supplemental joint venture agreement and completion of the company's restructuring scheme. According to the TCR-AP, the SC granted Wembley Industries' wholly owned subsidiary, Plaza Rakyat Sdn Bhd, until July 31, 2006, to sign a supplemental agreement with Dewan Bandaraya in relation to a joint venture agreement, which is part of the Company's restructuring scheme. But the Company has instructed its adviser, Alliance Merchant Bank Berhad, to make a formal application for the extension from July 31, 2006, to July 7, 2007, or the period as advised by Alliance Merchant. The restructuring scheme involves a proposed: * capital reduction and consolidation; * debt-restructuring; and * rights issue. A subsequent TCR-AP report noted that Plaza Rakyat and Dewan Bandaraya are still negotiating on the terms and conditions of the supplemental agreement between them. Government ministries and departments are also involved in the discussions About Wembley Industries Headquartered in Sarawak Malaysia, Wembley Industries Holdings Berhad is a developer of commercial properties and investment holding. Its other activities are the development of the inter- state bus and taxi terminal, the retail podium and the budget hotel. The Company has been placed under the Practice Note 4 category due to its tight cash flow position. On January 7, 2003, Malaysia's Foreign Investment Committee approved the Company's regularization plan. Subsequently, on April 7, 2003, the FIC revised its approval to include the possible participation of Daewoo Corporation, the former turnkey contractor of Plaza Rakyat Project in the Company's Proposed Debt Restructuring. The Company's ability to continue as a going concern hinges on the successful implementation of the Scheme. As of June 30, 2006, the group has total assets of MYR422,526,000 and total liabilities of MYR1,229,086,000, resulting into a shareholders' deficit of MYR806,560,000. ===================== P H I L I P P I N E S ===================== BACNOTAN CONSOLIDATED: Subscribes to 791,871,100 Phinma Shares -------------------------------------------------------------- In a filing with the Philippine Stock Exchange, Bacnotan Consolidated Industries, Inc., disclosed that, as approved by its Board of Directors in a meeting on July 14, 2006, it participated in the rights offering of Phinma Property Holdings Corporation. The company subscribed to 791,871,100 shares of PPHC amounting to PHP79,187,110 which was paid last August 30, 2006. About BCI Makati-based Bacnotan Consolidated Industries, Incorporated, Phinma Group's flagship company, was founded by a group of industrialists led by the Escaler family in 1957. BCI is a holding company that, through its operating subsidiaries, is engaged primarily in the production, distribution and sale of clinker, cement and concrete products. It also has an interest in the paper and packaging industry and it has also ventured into property development and reinforced steel bars manufacturing. The Company's principal source of revenue is from the cement sales of its cement subsidiary. Historically, its cement subsidiary has been responsible for at least 80% of its sales revenues. It is primarily engaged in the quarrying, production, distribution and marketing of portland and pozzolan cement. On March 22, 2006, the Troubled Company Reporter - Asia Pacific cited a report from the Philippine Daily Inquirer saying that the Philippine Stock Exchange planned to remove Bacnotan Consolidated from its index due to insufficient tradability. BANCO FILIPINO: Shares Trading Still Suspended ---------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on August 29, 2006, the Philippine Stock Exchange advised that Banco Filipino Savings & Mortgage Bank, whose trading of shares was suspended, has not submitted its Quarterly Report for the period ended June 30, 2006. Accordingly, the trading of the bank's shares remained suspended pending compliance with the PSE's requirements. A recent Memo for Brokers from the PSE further advised that Banco Filipino's shares trading continues to be suspended. The TCR-AP previously reported that the bank has yet to submit its 2005 annual report to the Securities and Exchange Commission, after the deadline, set on May 31, 2006, expired. Therefore, the bank was ordered to pay a fee of PHP50,000 as punishment for non-compliance. The SEC said it would suspend Banco Filipino's securities registration unless it settled the fine, the report noted. About Banco Filipino Banco Filipino Savings & Mortgage Bank -- http://www.bancofilipino.com/-- was organized in 1964, principally to engage in the general business of savings and mortgage banking and of a trust company and to perform such acts as may be incidental thereto. It started operations on July 9, 1964. Banco Filipino offers to the public full domestic banking services, which are five main types, namely: cash services; commercial services; loans; money market services; and trust services. The Troubled Company Reporter - Asia Pacific reported on May 17, 2006, that the Bangko Sentral ng Pilipinas approved an emergency loan of PHP190 million to Banco Filipino in order for it to remain liquid, after certain branches experienced heavy withdrawals. The state central bank had ordered Banco Filipino's closure in 1985 due to insolvency. However, the Supreme Court overturned Bangko Sentral's decision and ordered the bank to reopen in 1994 and resume business as a full service savings bank with trust operations. BAYAN TELECOMMUNICATIONS: To Conduct Educational IPTV Trials ------------------------------------------------------------ BayanTel will conduct trials on Internet protocol TV service early next year, affirming its plans to eventually offer "triple-play" services in the country, Joel D. Pinaroc of The Manila Bulletin reports. However, the report notes that the trials will be used in providing educational programs to public high schools in the country. The paper cites Tunde Fafunwa, BayanTel chief executive consultant, as saying that the company will conduct trial IPTV services as part of its participation at the Gearing up Internet Literacy and Access for Students project. The paper explains that the project is a private sector-led master plan to provide broadband connection to Philippine high schools. According to The Manila Bulletin, it is estimated that some PHP1.7 billion will be needed for the project to cover the country's 5,433 public high schools by 2010. BayanTel however will still offer "triple play" services, which include voice, video and data, on a commercial basis, The Manila Bulletin notes. The company expects a spark in the broadband market for triple play services. * * * Bayan Telecommunications Holdings Corporation, which is 85.4% owned by Benpres Holdings Corp. and the Lopez Group, was incorporated on October 15, 1993. Bayan Telecommunications Inc. -- http://www.bayantel.com.ph/-- is the operating arm of BTHC and is formerly known as International Communications Corporation. BayanTel is a telecommunications company offering an extensive breadth of traditional links and circuitry as well as cutting edge data and voice applications. BayanTel's existing service areas in Metro Manila and Bicol, as well as its local exchange service areas in the Visayas and Mindanao regions combined, cover a population of over 25 million, nearly 33% of the population of the Philippines. In a report by the Troubled Company Reporter - Asia Pacific on July 4, 2006, the Company has paid over PHP900 million in principal and interest on its debts amounting to PHP25.39 billion in aggregate, of which creditors own PHP14.74 billion, while PHP10.65 billion is due to its bondholders. On June 28, 2004, the Pasig Regional Trial Court Branch 158 approved the Company's financial rehabilitation based on sustainable debt level of PHP17.13 billion, payable over 19 years. According to RTC Judge Rodolfo R. Bonifacio, the remainder of BayanTel's debt may be converted to another appropriate instrument that will not be a financial burden to parent Benpres Holdings Corp. It also mandated BayanTel to treat all creditors equally. Some of BayanTel's creditors have appealed the lower court decision. * S&P Rates New Global Bonds Offered for Exchange 'BB-' ------------------------------------------------------- Standard & Poor's Ratings Services assigns its 'BB-' senior unsecured rating to the Republic of Philippines' (foreign currency BB-/Stable/B, local currency BB+/Stable/B) proposed new bond issue that will mature in 2024, as well as the new debt under the series of 7.75% Global Bonds due in 2031. The government is offering these bonds in exchange for some of its existing debt. At the same time, Standard & Poor's also affirmed its 'BB-' ratings on the bonds that are eligible for exchange. However, the ratings on these issues will be withdrawn if they are successfully exchanged. Standard & Poor's revised its outlook on the sovereign ratings for the Philippines to stable from negative in February 2006. The stable outlook reflects revised expectations concerning the prospects of policy continuity and adherence to fiscal consolidation after the recent implementation of the expanded VAT law. These developments indicate an increased likelihood that overall deficit reduction and fiscal rationalization will continue and deepen, even as risks like political instability (albeit reduced), implementation, and administrative weaknesses could persist. The Philippines' fiscal outcomes for the first half of 2006 were better than expected, bolstered by improved revenue collection and constrained expenditure, given that a reenacted 2005 budget is still in effect. The deficit for the year should be met, but the fiscal outlook can be vulnerable. This stems from the need to increase spending, especially capital expenditure, to lift future growth prospects, even as revenue gradually rises. The political situation is relatively calm after the state of emergency in February, although any disruption from such a recurrence and general politicking could detract from economic reform. The principal factor constraining the ratings on the Philippines is its high debt and the accompanying impairment of fiscal flexibility. The net general government debt is projected at around 65% of GDP in 2006, compared with the median 38.1% projected for similarly-rated sovereigns. Furthermore, contingent liability posed by the accumulated debt and ongoing losses of government corporations, especially that of National Power Corp., amount to an estimated 12% of GDP. Despite higher revenues, interest payments still consume around 33% of central government revenue this year, well above the 22% in 1999, and are constraining discretionary spending. Also limiting the ratings is the government's continuing dependence on external funds, owing to its weak fiscal profile and shallow domestic capital markets. The resultant high portion of general government foreign currency debt (about 45% of total) raises both the vulnerability of its fiscal profile to adverse external developments and the risk to macroeconomic stability. The creditworthiness of the Philippines is also constrained by a narrow tax base, which is a main contributing factor to its weak public finances. Notwithstanding recent improvements, tax revenues are a low 13% of GDP, compared with 17% in 1997. Further fiscal consolidation and addressing of critical infrastructure spending needs will require substantial and lasting improvements to expand the revenue base and increase compliance. The ratings on the Philippines, however, are supported by adequate external liquidity. Prudent exchange-rate management and large and steadily rising remittance inflows generally ensure a safe level of external reserves. Short-term liquidity risk for the Philippines is moderate, compared with its similarly-rated peers. For 2006, the ratio of gross financing requirement to usable reserves (current account plus short-term debt plus amortization) is projected at 70%, similar to the median for sovereigns in the 'BB' rating category, although total external debt at a forecast 110% of current account receipts is slightly higher than the 'BB' median. The Philippines' record of steady economic growth also supports the ratings. The economy displayed considerable resilience in the face of external shocks and ongoing domestic political uncertainty, with real GDP growth averaging 4.7% over the past six years without significant fluctuation. This has moderated the country's debt dynamics, and would provide a solid basis for further debt reduction, if the appropriate fiscal framework is put in place. The outlook and ratings on the Philippines could benefit if fiscal and public sector reforms, including privatization of the electricity sector, become sufficiently entrenched to effect a material decline in government debt. That would ease external vulnerability, given that almost half its debt is foreign currency denominated. If, however, the process lapses, or becomes derailed by political imperatives, the outlook could again come under downward pressure. * End-August Forex Reserves Hit Record US$21.427 Billion -------------------------------------------------------- The country's gross international reserves were at a new record high of US$21.427 billion at the end of August 2006, compared to US$21.274 billion at the end of July, boosted by government borrowing, the Central Bank discloses. The GIR had already overshot the central bank's target of US$21 billion by the end of this year, and Governor Amando Tetangco Jr., of the central bank had said it would likely hit US$22 billion this year. The preliminary August GIR figure can cover about 4.3 months of imports of goods and payments for services and income. It is also 3.6 times the country's short-term debt, based on original maturity, or 1.9 times, based on residual maturity, the central bank said in a statement. "The GIR level was boosted mainly by the national government's deposit of the proceeds from the re-opening of its global bonds. Part of the inflows, however, was used to finance the national government's debt service payments on its foreign currency obligations," Mr. Tetangco relates. ================= S I N G A P O R E ================= ADVANCED SYSTEMS: Welcomes New CEO and CFO ------------------------------------------ Woo Kwek Kiong and Cher Lew Siang were appointed as Chief Financial Officer and Chief Executive Officer of Advanced Systems Automation respectively on September 6, 2006. * * * 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 GETRONICS N.V.: Banks Cancel EUR30-Mln Cut on Credit Facility ------------------------------------------------------------- Getronics N.V. has been able to reach an agreement with its banking syndicate on the following amendment to its 2005 Syndicated Revolving Credit Facilities: -- following the announced sale of HRS, the Company has regained full lending commitment from its banks, without any further stipulation on other transactions; and -- as a result of this the earlier announced decrease with EUR30 million of the Syndicated Revolving Credit Facilities on Sept. 30, has been cancelled. This means that Getronics keeps full access to the Syndicated Credit Facilities of EUR284 million in total until maturity in March 2008, consisting of EUR225 million Revolving Credit Facilities and a Term Loan Facility of EUR59 million for acquisition purposes. Its Banking Syndicate consists of: -- ABN AMRO, -- Rabobank, -- ING Bank, -- SNS Bank and -- NIBC. "I am very happy with this agreement as it is a clear vote of confidence from our banking syndicate, which allows us -- after the sale of Italy and HRS - to fund our normal working capital needs going forward," CEO Klaas Wagenaar commented. About Getronics N.V. 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, on Aug. 25, 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. The TCR-AP reported on Aug. 8, that 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. ISOFT GROUP: FY2006 Net Losses Widen to GBP382.2 Million -------------------------------------------------------- iSOFT Group plc disclosed its audited results for the year ended April 30, 2006. The Group's full year results are reported under IFRS regulations for the first time. The Group has also changed its accounting policy for revenue recognition, as disclosed on June 8, 2006. For the year ended April 30, 2006, the company posted a GBP382.2 million net loss on GBP201.7 million of revenues, compared with a GBP5.9 million net income on GBP186.1 million in revenues for the same period last year. "The second half of the financial year ended April 30, 2006 was a turbulent period for iSOFT and long-term shareholders will be feeling deeply disappointed by the events of recent months. I joined the Group as Chairman in October last year and share that disappointment, but I am determined to see through a series of actions and change that I believe are necessary to put this company back on a solid footing and enable it to capitalize on its underlying product strengths and experience," Chairman and acting Chief Executive Officer John Weston said. Borrowing facilities At April 30, 2006, the Group had bank facilities of GBP144 million, including a revolving credit facility of GBP105 million and a term loan facility of GBP39 million, both expiring in 2008. In the past, a significant proportion of cash flows were derived from customers willing to pay up-front for product and services or from the financing of customer receivables. In the main, these up-front payments fell into two categories; (1) payments supported by letters of credit and guarantees, which amounted to GBP88.2 million at April 30, 2006, provided under the GBP105 million revolving credit facility; and (2) payments via third-party contract financing arrangements which amounted to approximately GBP62 million at April 30, 2006. Following the adoption of IFRS and further detailed review of these contract financing arrangements have been brought on to the balance sheet. The Group's principal covenants under its bank facilities were that net financial indebtedness, including letters of credit issued in support of up front payments (but excluding non recourse financing), may not exceed three times earnings before tax, interest, depreciation and amortization, and net interest cover must be greater than five times earnings before interest and taxation. Due to the adoption of the new accounting policy and the expected future cash flow profile of the business, some aspects of the Group's banking facilities have had to be amended. The Group has therefore undertaken discussions with its banks with the objective of agreeing new terms. The outcome of those discussions is that the Group will retain the current facilities with no further amortization of the term loan and additional facilities of GBP25 million which will be available in certain circumstances until November 2007 on new terms. These terms include an up-front fee of GBP1.2 million and higher costs of borrowing including Payment In Kind (PIK) interest from Jan. 1, 2007, of 5% per annum, for the three months to March 31, 2007, 7.5% per annum for the three months to June 30, 2007, and 10% per annum thereafter. Within those terms, the Group will issue warrants amounting to 3.7% of iSOFT equity to the banks, with a strike price of 10 pence, when shareholder approval is obtained. An exit fee of GBP15 million is payable at the end of the facility, on refinancing or on change of control of the Company, and if the warrants are not issued prior to Oct. 31, 2006. If the warrants are issued prior to Oct. 31, 2006, then no exit fee is payable. Revenue Recognition Accounting Policy In June 2006, the Board said it had decided to change the Group's accounting policy for revenue recognition to an appropriate policy for today's commercial situation. In the past, iSOFT was primarily a software product company serving independent hospital and family doctor trusts. The Group is now engaged with larger, more complex and longer-term projects, in which it is increasingly difficult to distinguish between the supply of product licenses and their implementation. As a result, the current Board has decided that the use of the previous accounting policy has become inappropriate and have decided that license revenues will in future typically be recognized over the period of implementation, which may range from a few months to a number of years from contract signature, and over the full contract duration in the case of bundled services. The change in revenue recognition policy has been implemented by way of a prior year adjustment as mandated by International Financial Reporting Standard 1. This requires the Group to provide comparable figures prepared on a consistent basis for the financial year ended April 30, 2005. The accounting policy restatement has involved reversing revenues of GBP76 million, GBP54 million and GBP44 million (total: GBP174 million) which were recognized in the years ended April 30, 2005, 2004 and 2003 or earlier, respectively. Those revenues will now be recognized in future years in accordance with the provisions of the new accounting policy. In calculating the prior year adjustment, note 1 outlines the limitations in the historical data available to the Board. The Group believes that of the GBP174 million revenues reversed approximately GBP40-50 million will be recognized in each of the years ending April 30, 2007 and 2008, and the majority of the balance in the following three years. The main benefit of this change will be that revenues will reflect more closely the Group's trading activities and be more closely aligned with the Group's operational cash flows for the financial year 2009 and subsequently. Director Steve Graham Suspended As a result of work carried out by its auditors to review the adjustment to past revenues, possible accounting irregularities have come to light which have been the subject of an investigation by Deloitte & Touche LLP and Eversheds LLP. Deloitte & Touche LLP was appointed as the Group's auditor in July 2005 and was not therefore acting for the Group during the period covered by the investigation. After an initial review, the Board has deemed it appropriate to suspend Steve Graham, the Group's Commercial Director, pending the outcome of a more formal investigation. The investigation concerns several contracts where it would appear that revenues have been recognized earlier than they should have been in the financial years ended April 30, 2004 and 2005 in accordance with the accounting policy in force at that time. The irregularities uncovered to date do not appear to have affected the cash position of the Group. As reported in TCR-Europe on Aug. 28, the Financial Services Authority will be undertaking a more formal investigation into possible accounting irregularities at iSOFT Group plc, which could take months to complete. Streamlining the Cost Base The Group has been taking, and continues to take, action to re- align its operating costs with future revenue expectations. As part of this process, it is examining in detail the operating cost structure of each of its operations, both in the U.K. and internationally, to identify areas for cost reduction and improved organizational efficiency. The Group is targeting to reduce its total operating cost base from an annual run rate of just over GBP209 million at May 1, 2006, to below GBP185 million by the end of the current financial year. The current run-rate is higher than the total actual cost incurred for the year just ended because the Group has increased significantly its level of development resources to support both existing and future applications. As part of the plan to reduce costs, the Group entered into a consultation process with employees in the U.K. in early May 2006 and it is likely that at least 150 employees, representing approximately 15% of total headcount in the U.K., will be made redundant. The cost of this action will be about GBP3 million, but is expected to reduce the current annual cost base by approximately GBP6 million. The Group also intends to reduce staff levels in some of its international operations and has taken steps to reduce sub- contract and overhead costs as part of the financial year 2007 budget review process. The total cost of action already in hand to reduce the cost base, which will be taken as a one-time charge in the year ending April 30, 2007, is estimated to be at least GBP7 million. COLLINS & AIKMAN: 10-3/4% Bonds' Price Plummets to All-Time Low --------------------------------------------------------------- Prices at which the 10-3/4% Senior Notes due 2011 issued by Collins & Aikman Products Co. have fallen to all-time lows on Aug. 11, 2006 -- trading dipped to 10 cents-on-the dollar. Pricing data from Bloomberg shows trades occurred near these prices since Collins & Aikman filed for Chapter 11 protection: Week Ending Indicative Bond Pricing ----------- ----------------------- 11-Aug-2006 10.000 +++++ 04-Aug-2006 15.750 +++++++ 28-Jul-2006 21.000 ++++++++++ 14-Jul-2006 24.250 ++++++++++++ 07-Jul-2006 30.000 +++++++++++++++ 30-Jun-2006 30.688 +++++++++++++++ 23-Jun-2006 30.563 +++++++++++++++ 16-Jun-2006 30.500 +++++++++++++++ 09-Jun-2006 39.000 +++++++++++++++++++ 02-Jun-2006 45.000 ++++++++++++++++++++++ 26-May-2006 35.000 +++++++++++++++++ 19-May-2006 34.000 +++++++++++++++++ 12-May-2006 37.500 ++++++++++++++++++ 05-May-2006 35.500 +++++++++++++++++ 28-Apr-2006 33.000 ++++++++++++++++ 21-Apr-2006 33.000 ++++++++++++++++ 14-Apr-2006 31.250 +++++++++++++++ 07-Apr-2006 32.500 ++++++++++++++++ 31-Mar-2006 33.000 ++++++++++++++++ 24-Mar-2006 30.500 +++++++++++++++ 17-Mar-2006 32.500 ++++++++++++++++ 10-Mar-2006 30.500 +++++++++++++++ 03-Mar-2006 27.500 +++++++++++++ 24-Feb-2006 28.125 ++++++++++++++ 17-Feb-2006 30.000 +++++++++++++++ 10-Feb-2006 31.000 +++++++++++++++ 03-Feb-2006 29.500 ++++++++++++++ 27-Jan-2006 30.000 +++++++++++++++ 20-Jan-2006 33.500 ++++++++++++++++ 13-Jan-2006 39.000 +++++++++++++++++++ 06-Jan-2006 43.000 +++++++++++++++++++++ 30-Dec-2005 42.000 +++++++++++++++++++++ 23-Dec-2005 44.000 ++++++++++++++++++++++ 16-Dec-2005 42.250 +++++++++++++++++++++ 09-Dec-2005 42.000 +++++++++++++++++++++ 02-Dec-2005 43.500 +++++++++++++++++++++ 25-Nov-2005 44.330 ++++++++++++++++++++++ 18-Nov-2005 43.000 +++++++++++++++++++++ 11-Nov-2005 45.750 ++++++++++++++++++++++ 04-Nov-2005 49.038 ++++++++++++++++++++++++ 28-Oct-2005 47.000 +++++++++++++++++++++++ 21-Oct-2005 48.000 ++++++++++++++++++++++++ 14-Oct-2005 48.000 ++++++++++++++++++++++++ 07-Oct-2005 50.771 +++++++++++++++++++++++++ 30-Sep-2005 44.000 ++++++++++++++++++++++ 23-Sep-2005 42.375 +++++++++++++++++++++ 16-Sep-2005 41.500 ++++++++++++++++++++ 09-Sep-2005 40.000 ++++++++++++++++++++ 02-Sep-2005 36.000 ++++++++++++++++++ 26-Aug-2005 36.875 ++++++++++++++++++ 19-Aug-2005 36.250 ++++++++++++++++++ 12-Aug-2005 30.000 +++++++++++++++ 05-Aug-2005 29.688 ++++++++++++++ 29-Jul-2005 29.500 ++++++++++++++ 22-Jul-2005 27.000 +++++++++++++ 15-Jul-2005 29.500 ++++++++++++++ 08-Jul-2005 29.625 ++++++++++++++ 24-Jun-2005 28.875 ++++++++++++++ 17-Jun-2005 41.000 ++++++++++++++++++++ 10-Jun-2005 39.500 +++++++++++++++++++ 03-Jun-2005 43.500 +++++++++++++++++++++ 27-May-2005 41.000 ++++++++++++++++++++ 20-May-2005 40.000 ++++++++++++++++++++ 13-May-2005 47.250 +++++++++++++++++++++++ 06-May-2005 71.000 +++++++++++++++++++++++++++++++++++ At the close of trading on August 14, prices of the 10-3/4% Senior Notes slightly increased to 11 cents-on-the-dollar. The 10-3/4% Senior Notes were issued in an Exchange Offer in June 2002. A full-text copy of the Prospectus circulated in connection with the US$500 million Exchange Offer is available at no charge at: http://researcharchives.com/t/s?fd6 In his letter to shareholders for the fiscal quarter ending April 30, 2005, Martin J. Whitman, Co-Chief Investment Officer & Portfolio Manager of Third Avenue Value Fund, disclosed that the Fund started to aggressively acquire Collins and Aikman's 10- 3/4% Senior Notes following the company's chapter 11 filing. "At the time of this writing, Third Avenue holds US$250,750,000 Principal Amount of Collins and Aikman Seniors, or slightly over half of the outstanding issue," Mr. Whitman indicated, making Third Avenue the largest holder of the Senior Notes. For the five years and nine months through September 2004, Mr. Whitman told the Fund's shareholders, Collins and Aikman's annual operating income before non-recurring charges ranged from a low of US$61,500,000 in 2001 to a high of US$224,600,000 in 2002. Annual interest charges for the Collins and Aikman Seniors together with the Collins and Aikman Subordinates total US$107,000,000 per year. In Chapter 11, Mr. Whitman indicated, these US$107,000,000 of cash costs are eliminated, offset in part by professional costs in Chapter 11 should range from about US$4 million to US$6 million per month. Mr. Whitman was hopeful that Collins & Aikman could be reorganized in Chapter 11 relatively quickly, perhaps in as little as 180 days. Mr. Whitman envisioned a plan of reorganization that would reinstate secured debt, deliver 90% of the new common stock to holders of Senior Debt, give 10% of the new common stock to subordinated debtholders, wipe out the existing shareholders, and provide management with options for 5% of the new common stock. "If future annual operating income is to average, say, US$150,000,000 then the Fund would have acquired its position in the new Collins and Aikman Common Stock at probably less than five times earnings. If Collins and Aikman can get annual operating income up to $200,000,000, the PE ratio for TAVF would decline to around three times," Mr. Whitman told shareholders in early 2005. Mr. Whitman pointed out two "very real risks" in the Collins & Aikman investment to Third Avenue shareholders: (1) Reorganization Risk. If TAVF and other creditors can not relatively quickly reorganize Collins and Aikman along the lines outlined above, and a protracted Chapter 11 ensues, the bulk of the values in Collins and Aikman probably will belong to the professionals -- lawyers and investment bankers -- not to pre-petition creditors. Unknowns, such as a need to renegotiate labor contracts, could prolong the Chapter 11 proceeding, even if the Company, itself, is cooperating with TAVF and other holders of Collins and Aikman Seniors. Old Collins and Aikman Common would be wiped out in any event. (2) Business Risk. Maybe operating income for this automotive supplier will never again approach the average levels of the past six years. 75% of Collins and Aikman revenues come from the "Big Three" automobile manufacturers who have been losing market penetration. Also, much of the company's raw materials costs are in resins where prices are correlated to the price of oil. A persistent margin squeeze may be a fact of life. David Barse, as a TAVF representative, chairs the Official Committee of Unsecured Creditors in Collins & Aikman's chapter 11 cases. "Collins and Aikman is a considerably more troubled debtor than we had assumed based on Pre-Chapter 11 public filings," Mr. Whitman indicated in another letter to Third Avenue shareholders in 2005. "The situation may be difficult to work out, but I think the odds favor Third Avenue becoming the dominant common shareholder in a reorganized, and feasible, Collins and Aikman. There are, of course, no guaranties. In our long history of investing in distressed debt, our most successful investments were full of Collins and Aikman type unpleasant surprises that arose immediately subsequent to Chapter 11 filings. The eventual workouts, though, were spectacular for Nabors Industries, Danielson Holding Corporation and Kmart." About Collins & Aikman Headquartered in Troy, Michigan, Collins & Aikman Corporation -- http://www.collinsaikman.com/-- is a global leader in cockpit modules and automotive floor and acoustic systems and is a leading supplier of instrument panels, automotive fabric, plastic-based trim, and convertible top systems. The Company has a workforce of approximately 23,000 and a network of more than 100 technical centers, sales offices and manufacturing sites in 17 countries, including Singapore. The Company and its debtor-affiliates filed for chapter 11 protection on May 17, 2005 (Bankr. E.D. Mich. Case No. 05-55927). Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represents C&A in its restructuring. Lazard Freres & Co., LLC, provides the Debtor with investment banking services. Michael S. Stammer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors Committee. When the Debtors filed for protection from their creditors, they listed US$3,196,700,000 in total assets and US$2,856,600,000 in total debts. REFCO INC: Panel Inks Deal with E&Y on Document Production ---------------------------------------------------------- Section 7216(a) of the Internal Revenue Code entitled "Disclosure or Use of Information by Preparers of Returns" and 26 C.F.R. Section 301.726-1 prohibit the disclosure of "tax return information," particularly certain information furnished by a taxpayer in connection with preparation of tax returns. Under Section 301.7216-2(c), the provisions of Section 7216(a) and Section 301.726-1 do not apply to any disclosure of tax return information where that disclosure is made pursuant to an order of any court of record. The Official Committee of Unsecured Creditors of Refco Inc., and its debtor-affiliates tells the U.S. Bankruptcy Court for the Southern District of New York that compliance by Ernst & Young LLP, with a subpoena directing production of documents contemplates the production to the Creditors Committee of tax return information furnished by Refco, Inc. In a Court-approved stipulation, the Creditors Committee and Ernst & Young agree that consistent with Section 301.7216-2, Ernst & Young's production of and the Committee's use of the tax return information will be governed by the terms of a protective order governing production and use of confidential material entered on April 26, 2006. As reported in the Troubled Company Reporter on July 6, 2006, the Creditors Committee asked the Court to compel 22 respondents to produce documents on or before the date that is 30 days after a corresponding subpoena is served. The Court had previously authorized the Committee to serve subpoenas calling for production of documents on 16 individuals and entities regarding Refco, Inc.'s operations. The Committee has been pursuing discovery from the subpoena recipients. Based on the Debtors' public statements, the criminal complaint for securities fraud filed against Phillip R. Bennett, and the committee's preliminary investigation, the Committee has learned of additional persons and entities who likely have information relevant to: (i) the Debtors' property and its location; (ii) the assets, liabilities and financial condition of the Debtors; (iii) matters that may affect the administration of the Debtors' estates; and (iv) the identification and prosecution of certain potential claims against third parties by a representative of the Debtors' estates. Ernst & Young was listed as one of the 22 respondents. 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 =============== PAE THAILAND: Spins with THB7 Mil. Net Profit in 2nd Quarter '06 ---------------------------------------------------------------- PAE Thailand Public Co Ltd posted a THB7-million consolidated net profit for the second quarter ended June 30, 2006, a turnaround from the THB62.341-million net loss reported in the same period last year. The company's consolidated balance sheet as of June 30, 2006, showed current assets of THB423.017 million available to pay total current liabilities of THB411.615 million coming due within the next 12 months. Total assets as of June 30, 2006, was THB670.501 million while total liabilities was THB417.800 million. A full-text copy of the company's financial statements for the period ended June 30, 2006, is available for free at: http://bankrupt.com/misc/PAE_bs_0630.xls * * * Headquartered in Bangkok, Thailand, PAE (Thailand) Public Company Limited -- http://www.pae.co.th/-- provides construction services including building and drilling site constructions; industrial services including lasting and technical inspections, as well as communication and manpower supply services. The Company also distributes construction and agricultural equipment. The Company has been operation with a capital deficit for years, culminating in a THB3.05 billion deficit in 2003. That and a series of net losses set the stage for the Company's entry into Thailand's REHABCO, or Companies Under Rehabilitation sector. On July 3, 2006, the Stock Exchange of Thailand returned PAE Thailand to its original sector; however, the company's securities would be refrained from trading until the completion of its rehabilitation program. * Large Companies With Insolvent Balance Sheets ----------------------------------------------- Total Total Shareholders Assets Equity Company Ticker ($MM) ($MM) ------ ------ ------------ ------ AUSTRALIA Acma Engineering & Const. Group Limited ACX 21.39 -2.24 Allstate Explorations NL ALX 12.65 -51.62 Austar United Communications Ltd. AUN 231.54 -52.58 Global Wine Ventures Limited GWV 22.04 -0.84 Hutchison Telecommunications (Aust) Ltd. HTA 1696.65 -786.31 Indophil Resources NL IRN 37.79 -69.96 Intellect Holdings Limited IHG 23.98 -11.13 Namberry Limited NMB 15.12 -4.26 Orbital Corporation Limited OEC 14.01 -4.86 RMG Limited RMG 22.33 -2.16 Stadium Australia Group SAX 135.23 -41.84 Tooth & Company Limited TTH 99.25 -74.39 Tourism, Hotels & Leisure Ltd. TLC 15.76 -0.66 CHINA AND HONG KONG Artel Solutions Group Holdings Limited 931 29.19 -18.65 Asia Telemedia Limited 376 10.89 -5.50 Anhui Feicai Vehicle Co. Ltd. 887 129.80 -7.00 Bestway International 718 25.00 -0.67 Chang Ling Group 561 77.48 -76.83 Chengdu Book - A 600083 21.50 -3.07 China Liaoning International Cooperation Holdings Ltd. 638 25.79 -43.45 China Kejian Co. Ltd. 35 54.71 -179.23 Datasys Technology Holdings 8057 14.10 -2.07 Eforce Holdings Limited 943 10.31 -0.51 Everpride Biopharmaceutical Company Limited 8019 10.16 -2.16 Fujian Changyuan Investment Holdings Limited 592 31.36 -54.04 Gold-Face Holdings Limited 396 40.60 -63.11 Guangdong Meiya Group Company Ltd. 529 107.16 -49.54 Guangdong Sunrise Group Company Ltd-A 30 35.98 -182.94 Guangdong Sunrise Group Co. Ltd-B 200030 35.98 -182.94 Guangxi Wuzhou Zhongheng Group Co Ltd. 557 62.19 -115.50 Hainan Dadonghai Tourism 613 19.74 -5.81 Hainan Dadongh-A 200613 19.74 -5.81 Hainan Overseas Chinese Investment Co. Ltd. 600759 32.70 -15.28 Hans Energy Company Limited 554 94.75 -10.76 Heilong Jiang Long Di Co. Ltd. 832 134.62 -61.22 Heilongjiang Sun & Field Science & Tech. 620 29.96 -49.18 Heilongjiang Black Dragon Co. Ltd. 600187 121.30 -74.45 Hualing Holdings Limited 382 242.26 -28.15 Huda Technology & Education Development Co. Ltd. 600892 17.29 -0.19 Hunan Anplas Co., Ltd. 156 94.17 -65.04 Hunan GuoGuang Ceramic Co., Ltd. 600286 87.44 -68.55 Innovo Leisure Recreation Holdings Ltd. 703 13.68 -2.01 Jiangsu Chinese.com Co. Ltd. 805 15.86 -34.56 Jiangxi Paper Industry Co. Ltd 600053 19.58 -12.80 Loulan Holdings Limited 8039 13.01 -1.04 Magnum International Holdings Limited 305 10.35 -5.83 Mindong Electric Group Co., Ltd. 536 21.63 -1.50 New City (Beijing) Development Limited 456 151.61 -19.15 New World Mobile Holdings Ltd 862 215.47 -126.57 Orient Power Holdings Ltd. 615 176.86 -64.20 Plus Holdings Ltd 1013 24.00 -3.15 Prosperity International Holdings (HK) Limited 8139 10.73 -2.45 Shandong Jintai Group Co. Ltd. 600385 19.58 -12.18 Shanghai Xingye Housing Company Ltd 600603 14.90 -72.98 Shenyang Hejin Holding Company Ltd. 633 83.18 -20.87 Shenz China Bi-A 17 39.13 -224.64 Shenz China Bi-B 17 39.13 -224.64 Shenzhen Dawncom Business Tech And Service Co., Ltd 863 79.84 -37.30 Shenzhen Shenxin Taifeng Group Co. Ltd. 34 95.27 -44.65 Shenzen Techo Telecom Co., Ltd. 555 14.84 -6.25 Sichuan Changjiang Packaging Holding Co. Ltd. 600137 13.11 -72.76 Sichuan Topsoft Investment Company Limited 583 113.12 -148.61 SMI Publishing Group Ltd. 8010 10.48 -7.83 Songliao Automobile Co. Ltd. 600715 49.56 -3.76 Sun's Group Manufacturing Company Limited 988 103.02 -72.80 Taiyuan Tianlong Group Co. Ltd 600234 13.47 -87.63 Theme International Holdings Limited 990 22.46 -0.77 UDL Holdings Limited 620 12.48 -7.15 Wealthmark International (Holdings) Limited 39 11.32 -2.43 Winowner Group Co. Ltd. 600681 38.03 -62.88 Xinjiang Hops Co. Ltd 600090 101.34 -135.99 Yantai Hualian Development Group Co. Ltd. 600766 59.99 -7.66 Yueyang Hengli Air-Cooling Equipment Inc. 622 49.89 -17.71 Zarva Technology Co. Ltd. 688 101.76 -102.01 INDIA PT Dharmala Intiland DILD 197.91 -6.62 INDONESIA Ades Waters Indonesia Tbk ADES 21.35 -8.93 Bukaka Teknik Utama Tbk BUKK 44.45 -107.00 Hotel Sahid Jaya SHID 71.05 -4.26 Jakarta Kyoei Ste JKSW 44.72 -38.57 Mulialand Tbk MLND 160.45 -19.82 Multibreeder Adirama Indonesia MBAI 64.54 -2.31 Pakuwon Jati Tbk PWON 188.41 -50.78 Panca Wiratama Sakti Tbk PWSI 39.72 -18.82 PT Steady Safe SAFE 19.65 -2.43 PT Toba Pulp Lestrari Tbk INRU 403.58 -198.86 PT Unitex Tbk UNTX 29.08 -5.87 PT Voksel Electric Tbk VOKS 44.01 -11.74 PT Wicaksana Overseas International Tbk WICO 84.36 -32.88 Sekar Bumi Tbk SKBM 23.07 -41.95 Steady Safe Tbk SAFE 19.65 -2.43 Suba Indah Tbk SUBA 85.17 -9.18 Surya Dumai Industri Tbk SUDI 105.06 -30.49 Unitex Tbk UNTX 29.08 -5.87 JAPAN Hanaten Co., Ltd. 9870 167.79 -1.63 Mamiya-OP Co., Ltd. 7991 152.37 -67.11 Montecarlo Co. Ltd. 7569 66.29 -3.05 Nihon Seimitsu Sokki Co., Ltd. 7771 23.82 -1.10 Sumiya Co., Ltd. 9939 89.32 -11.57 Tenryu Lumber Co., Ltd. 7904 187.75 -44.48 Tokai Aluminum Foil Co., Ltd. 5756 106.49 -12.55 Yakinikuya Sakai Co., Ltd. 7622 79.44 -11.14 MALAYSIA Antah Holdings Bhd ANT 241.10 -39.36 Ark Resources Berhad ARK 25.91 -28.35 CHG Industries Bhd CHG 25.95 -41.38 Cygal Bhd CYG 58.47 -69.79 Comsa Farms Bhd CFB 63.60 -5.00 Consolidated Farms Berhad CFARM 36.32 -17.21 Emico Holdings Bhd EMI 42.56 -1.92 Jin Lin Wood Industries Berhad JLW 21.68 -1.74 Kig Glass Industrial Berhad KIG 15.76 -24.61 Lankhorst Bhd LKHT 25.91 -28.35 Mentiga Corporation Berhad MENT 22.13 -18.25 Metroplex Bhd MEX 323.51 -49.28 Mycom Bhd MYC 227.68 -114.64 Lityan Holdings Bhd LIT 22.22 -19.11 Olympia Industries Bhd OLYM 255.84 -227.85 Panglobal Bhd PGL 189.92 -50.36 Park May Bhd PMY 11.04 -13.58 PSC Industries Bhd PSC 62.80 -116.18 Polymate Holdings Bhd PYMT 64.73 -7.28 Setegap Berhad STG 19.92 -26.88 Tru-Tech Holdings Berhad TRU 15.86 -16.71 Wembley Industries Holdings Bhd WMY 111.72 -204.61 PHILIPPINES APC Group Inc. APC 67.04 -163.14 Atlas Consolidated Mining and Development Corp. AT 33.59 -57.17 Cyber Bay Corporation CYBR 11.54 -58.06 East Asia Power Resources Corp. PWR 92.55 -64.61 Fil-Estate Corporation FC 33.30 -5.80 Filsyn Corporation FYN 19.20 -8.83 Filsyn Corporation FYNB 19.20 -8.83 Global Equities Inc. GEI 24.18 -1.81 Gotesco Land, Inc. GO 17.34 -9.59 Gotesco Land, Inc. GOB 17.34 -9.59 Prime Media Holdings Inc. PRIM 11.12 -15.52 Prime Orion Philippines Inc. POPI 98.36 -74.34 Swift Foods Inc. SFI 26.95 -8.23 Unioil Resources & Holdings Company Inc. UNI 10.64 -9.86 United Paragon Mining Corp. UPM 21.19 -21.52 Universal Rightfield Property Holdings Inc. UP 45.12 -13.48 Uniwide Holdings Inc. UW 61.45 -30.31 Victorias Milling Company Inc. VMC 127.83 -32.21 Vitarich Corporation VITA 75.04 -4.27 SINGAPORE China Aviation Oil (Singapore) Corporation CAO 211.96 -390.07 Compact Metal Industries Ltd. CMI 54.36 -25.64 Digiland Intl. DIGI 31.32 -11.94 Falmac Limited FAL 10.90 -0.73 Gul Technologies Singapore Limited GUL 152.80 -27.74 Informatics Holdings Ltd INFO 22.30 -9.14 L&M Group of Companies LNM 56.91 -10.59 Liang Huat Aluminium Ltd. LHA 19.30 -76.43 Lindeteves-Jacoberg Limited LJ 225.52 -53.23 LKN-Primefield Limited LKN 150.70 -12.72 Mae Engineering Ltd MAE 11.42 -7.79 PDC Corporation Limited PDC 0.72 -12.07 Pacific Century Regional PAC 1381.26 -107.11 See Hup Seng Ltd. SHS 17.36 -0.09 SOUTH KOREA BHK Inc 3990 24.36 -17.38 C & C Enterprise Co. Ltd. 38420 28.05 -14.50 Cenicone Co. Ltd. 56060 36.82 -1.46 Cheil Entech Co. Ltd. 53330 37.25 -0.31 Dewell Elecom Inc. 32590 10.93 -6.92 Everex Inc. 47600 23.15 -5.10 EG Greentech Co. 55250 186.00 -1.50 EG Semicon Co. Ltd. 38720 166.70 -12.34 Inno Metal Inc. 70080 25.61 1.41 KP&L Company Limited 9810 15.03 -3.81 Radix Co. Ltd. 16160 53.78 -17.69 Quality & Tech 15260 32.33 -1.14 Shinil Industrial Co., Ltd. 2700 41.51 -3.44 SungKwang Co., Ltd. 41140 19.06 -1.60 Tong Yang Major 1520 2332.81 -86.95 TriGem Computer Inc 14900 629.32 -292.96 THAILAND Bangkok Rubber PCL BRC 70.19 -56.98 Bangkok Rubber PCL BRC/F 70.19 -56.98 Central Paper Industry PCL CPICO 40.41 -37.02 Central Paper Industry PCL CPICO/F 40.41 -37.02 Circuit Electronic Industries PCL CIRKIT 20.37 -64.80 Circuit Electronic Industries PCL CIRKIT/F 20.37 -64.80 Daidomon Group Pcl DAIDO 12.92 -8.51 Daidomon Group Pcl DAIDO/F 12.92 -8.51 Datamat PCL DTM 17.55 -1.72 Datamat PCL DTM/F 17.55 -1.72 Diana Department Store Pcl DIANA 12.71 -1.71 Diana Department Store Pcl DIANA/F 12.71 -1.71 Everland Public Company Ltd EVER 56.71 -311.47 Everland Public Company Ltd EVER/F 39.12 -12.05 Hantex PCl HTX 7.51 -7.88 Hantex PCl HTX/F 7.51 -7.88 Kuang Pei San Food Products Public Co. POMPUI 12.51 -9.87 Sahamitr Pressure Container Public Co. Ltd. SMPC 20.77 -28.13 Sri Thai Food & Beverage Public Company Ltd SRI 18.29 -43.37 Sri Thai Food -F SRI/F 18.29 -43.37 Tanayong PCL TYONG 178.27 -734.30 Tanayong PCL -F TYONG/F 178.27 -734.30 Thai-Denmark PCL DMARK 21.37 -18.88 Thai-Denmark -F DMARK/F 21.37 -18.88 Thai-Wah PCL TWC 91.56 -41.24 Thai-Wah PCL -F TWC/F 91.56 -41.24 ********* 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 ***