/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/060919.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, September 19, 2006, Vol. 9, No. 186 Headlines A U S T R A L I A & N E W Z E A L A N D AVISAM CONSTRUCTION: Liquidation Bid Hearing Set on Sept. 28 AWB LIMITED: Court Orders Surrender of Secret Documents AWCON PTY: Members and Creditors to Receive Wind-Up Report BURCHLEY PTY: Members Opt to Close Operations CASHMERE HEIGHTS: Court Orders Liquidation CRAIG CONBOY: Prepares to Declare Dividend to Creditors CRC FOR INTELLIGENT: Enters Voluntary Liquidation D PROUT PTY: Members Resolve to Wind Up Firm DANCEY & DONOHOE: Schedules Final Meeting for October 26 DRURY MANAGEMENT: Founder Sentenced for 8 Years in Jail DYNAMIC ENTERPRISES: Liquidator to Present Wind-Up Report JAS CONSTRUCTION: Members and Creditors to Convene on October 20 HIHI BEACH: Court to Hear CIR's Liquidation Bid on Sept. 28 JJ & CO: Wind-Up Process Commenced JOHNSTON MOTOR: Receives Court's Liquidation Order KERO AIR: Faces Liquidation Proceedings KIDDS SERVICES: To Declare First and Final Dividend on Oct. 20 MARPHIL ELECTRICAL: Enters Liquidation Proceedings M.Q.F. QUEENSLAND: Placed Under Voluntary Wind-Up MCCOMB TRANSPORT: Names Abeyratne and Wong as Liquidators MICHAEL STANLEY: Liquidator Peile to Present Wind Up Report MR FUNPLATES: To Declare Dividend on September 26 NETWORK EVENTS: Members and Creditors Set to Meet on October 20 NEWQUAY PROPERTIES: Shareholders Appoint Joint Liquidators OG AND JA: Appoints Joint and Several Liquidators PASMINCO INVESTMENTS: To Declare Dividend on September 28 PASMINCO LIMITED: Set to Declare Dividend on September 28 PIKITIA LTD: Creditors Must Prove Debts by Sept. 28 POLLARA PTY: Creditors Must Prove Debts by September 28 PROPERTY DEVELOPMENT: Court Orders Wind Up Operations R J BRADY: Members and Creditors to Receive Wind-Up Report R.M.J. MANAGEMENT: Final Meeting Scheduled for October 20 RAN HOLDINGS: Court Refuses Bail for Nicholai Dimitri Popov Bail SABA PERSIAN: Liquidation Commenced on August 18 SALINAS AIR: Members Opt to Shut Down Business SCHUTT PRODUCTIONS: Members Resolve to Wind Up Operations SINCLAIRS SELF: Enters Wind-Up Proceedings SMASH MUSIC: Court Appoints Official Liquidator SOUTH ALPS: Court Sets Date to Hear Liquidation Petition SPG PROPERTY: Members Decide to Liquidate Business STARPLAN VENTURES: Placed Under Members' Voluntary Liquidation SWITZER ENTERPRISES: To Declare Final Dividend on October 3 TP EXTENDED: Members Appoint Liquidator T.Y.D.S.E. LTD: Court Favors Liquidation Petition TWGG LTD: To Receive Creditors Proofs of Claim Until Oct.9 VILLAGE ROADSHOW: Completes AU$20 Million Sea World Nara Buyout WARRINGTON BUILDERS: High Court Issues Liquidation Order WATERSIDE HOLDINGS: Creditors' Proofs of Claim Due on Oct. 2 WESTPOINT GROUP: ASIC Seeks Warrant for N. Carey's Arrest WESTPOINT GROUP: Court Allows KordaMentha to Sell Warnbro Asset C H I N A & H O N G K O N G ACXIOM CORP: Unveils Preliminary Results of Dutch Auction AGRICULTURAL BANK: To Realize Reform Plans Soon, PBOC Head Says ADVANTAGE PLUS: Wind-Up Petition Hearing Slated for Oct. 4 BALLY TOTAL: Willows Becomes VP for Fitness, Nutrition & Retail BERRY PLASTICS: Discloses Pricing Terms on 10.75% Notes Offer CANADA INDUSTRIAL: Creditors' Proofs of Debt Due on September 29 CORGI INTL: Incurs US$6.63 Million Working Capital Deficit CYBERWORKS AUDIO: Appoints Joint and Several Liquidators FIAT SPA: Acquires Vehicle-Related Business of Yuejin Motor INDUSTRIAL AND COMMERCIAL: European Operations Show Growth GAIN CHANCE: Wind-Up Petition Hearing Slated for Oct. 18 GALAXY ADVANCE: Accepting Proofs of Debt Until September 22 GENESIS ENGINEERING: Court to Hear Wind-Up Petition GLOBAL MARCH: Creditors Must Prove Claims by September 25 GOOD CHOICE: Court to Hear Wind-Up Bid on October 4 KAM WAI: Liquidator Ceases to Act for Company LEADKEEN INDUSTRIAL: Creditors Must Prove Debt by September 29 LOONG WAH: Court Favors Wind-Up M.O. HOLDINGS: Court Issues Wind-Up Order MOULIN GLOBAL: Must Receive Proofs of Debt by September 29 MOULIN GLOBAL (Trading): To Declare Dividend on September 29 RIGHT SELECTION: Liquidators Steps Aside SELPRO LTD: Wind-Up Petition Hearing Set on September 27 SUNNY TOYS: Court Orders Wind-Up of Operations TAK WOO: Court Appoints Liquidators TERRELL LTD: Meeting of Members and Creditors Set for Sept. 29 WINKO LTD: Members Resolve to Wind Up Operations WINTEK TECHNOLOGY: Shareholders Opt to Shut Down Operations I N D I A BANK OF INDIA: Net Income Jumps 22% for Quarter Ended June 30 BANK OF INDIA: Completes Upsized Bank Capital Deal BANK OF INDIA: To Open More Overseas Branches BHARAT PETROLEUM: Appoints Data Software as Share Tranfer Agent BHARAT PETROLEUM: To Source Ethanol from Brazil BHARTI AIRTEL: To Observe Silent Period From October 1 BHARTI AIRTEL: Inks Network Expansion Contract With Ericsson BROADCOM CORP: Gets Securities Suit Filing BROADCOM CORP: Brower Piven Announces Calif. Stock Suit Filing BROADCOM CORP: Kahn Gauthier Files Calif. Securities Fraud Suit CATHOLIC SYRIAN BANK: To Re-Engineer Business Processes CATHOLIC SYRIAN BANK: Sees INR10,000 in Total Business By 2008 CATHOLIC SYRIAN BANK: Introduces Senior Citizens Savings Scheme CENTURION BANK: Sets EGM on September 30, 2006 CENTURION BANK: Posts 160% Leap in Profit for June Quarter CENTURION BANK: Merges with Lord Krishna Bank ICICI BANK: RBI Will Continue Branch Expansion Ban INDIAN OVERSEAS: Acquires Bharat Overseas Bank INDIAN OVERSEAS: Posts INR2-Bil Profit for Quarter Ended June 30 INDIAN OVERSEAS: Watchdog Continues Branch Expansion Ban INDUSTRIAL DEVELOPMENT: Will Hold Board Meeting for UWB ITI LTD: CARE Downgrades Long Term Ratings to CARE D UCO BANK: Plans to Get Into Insurance Business UCO BANK: Will Cut or Merge 40 Branches UTI BANK: Post INR120.55 Crores for First Quarter of FY2007 UTI BANK: Issues US$150-Million Tier-II Instruments I N D O N E S I A BANK MANDIRI: Fitch Affirms BB- Issuer Default Ratings CA INC: Reveals Preliminary Results of Tender Offer FOSTER WHEELER: Secures New US$350 Mil. Domestic Credit Facility MEDIA NUSANTARA: Moody's Affirms B1 Rating for Unsecured Bonds J A P A N BANCO BRADESCO: Joins Dow Jones Sustainability World Index List FORD MOTOR: Ratings Stay on Watch on Revised Way Forward Plan FORD MOTOR: Eyes US$5-Bil Savings in Accelerated Turnaround Plan JAPAN AIRLINES: Inks Long-Term Contract With TRX and TATA MITSUKOSHI DEPARTMENT STORE: Exits Hong Kong After 25 Years K O R E A KOREA EXCHANGE: Kookmin & Lone Star in Talks Even After Deadline NOVELIS INC: Files 1st Quarter 2006 Financials, Incurs $74M Loss M A L A Y S I A ABRIC PERINTIS: Faces Wind-Up Proceedings AFFIN BANK: Fitch Upgrades Individual Rating from E to D/E AYER MOLEK: Alliance Merchant Ceases Being Merchant Banker FALCONBRIDGE: Xstrata Acquires Company's Remaining Common Shares FALCONBRIDGE LTD: Xstrata Appoints Claude Ferron as COO FALCONBRIDGE LTD: Inks Option & Joint Venture Accord with Benton FOREMOST HOLDINGS: Unveils Incorporation of New Subsidiary INTAN UTILITIES: Holding Firm Suggests Voluntary Delisting MBF HOLDINGS: High Court Strikes Out Claims Payment Suit OLYMPIA INDUSTRIES: Wind-Up Petition Served on Sub-Unit PROTON HOLDINGS: Unaware of GM's Reported Stake Buy Plan PROTON HOLDINGS: Mulls Partnership with Europe's PSA Peugeot TENAGA NASIONAL: Says Noteholders May Redeem Bonds TRADEWINDS CORP: Strikes Off Dormant Unit P H I L I P P I N E S ATLAS CONSOLIDATED: In Talks with MRI, Financing Deal Likely GLOBAL EQUITIES: Shares Trading Suspended on September 18 GLOBAL EQUITIES: Changes Corporate Name and Primary Purpose CE CASECNAN: S&P Raises Rating on Notes to BB- from B+ VITARICH CORP.: Files Petition for Corporate Rehabilitation VITARICH CORP.: Posts PHP579.5 Mln Revenue for 2Q2006, 28% Down * RP Risks Downgrade if Power Energy Assets Sale Fails, S&P Says S I N G A P O R E CELATO (SINGAPORE): Commences Wind-Up Proceedings DREAMSCAPE CONSULTING: To Pay Dividend on September 25 EXABYTE CORPORATION: June 30 Balance Sheet Reveal Insolvency EXABYTE CORPORATION: Inks Asset Purchase Agreement with Tandberg FREESCALE SEMICON: Inks US$17.6 B Merger Deal with Equity Group FREESCALE SEMICON: Moody's Holds Ba1 Rating on US$850 Mil. Notes L&M GROUP: Enters into Sale and Purchase Agreement with CSC SPH MEDIAWORKS: Pays Dividend to Unsecured Creditors T H A I L A N D BANK OF AYUDHYA: Lowers Loan Goal for '06 Due to Econ. Slowdown PHELPS DODGE: Moody's Confirm Ratings After Inco Bid Termination * ALIXPARTNERS LLP: Moody's Rates US$435MM Credit Facility at B1 * ALIXPARTNERS LLP: S&P Assigns BB- Corporate Credit Rating * BOND PRICING: For the Week 18 September to 22 September 2006 - - - - - - - - ============================================ A U S T R A L I A & N E W Z E A L A N D ============================================ AVISAM CONSTRUCTION: Liquidation Bid Hearing Set on Sept. 28 ------------------------------------------------------------ The High court of Auckland will hear a liquidation petition filed against Avisam Construction Ltd on September 28, 2006, at 10:45 a.m. The Commissioner of Inland Revenue filed a petition on July 7, 2006. The Solicitor for the Plaintiff 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 AWB LIMITED: Court Orders Surrender of Secret Documents ------------------------------------------------------- The Federal Court has ordered AWB Limited to surrender nearly half the bundle of 900 documents it tried to keep secret from the oil-for-food inquiry, led by Commissioner Terence Cole, ABC Rural News relates. According to ABC Rural, the bitter argument over the documents has stalled the Cole Inquiry's investigations for the past three months. Justice Neil Young's decision was based on whether: 1) AWB had established its claim; 2) that claim had been waived by AWB's own internal inquiries; and 3) any fraud, sham, or trickery had taken place. ABC Rural cites Justice Young as saying that 25 of the documents before him are not legitimate communications between AWB and its lawyers. Justice Young also notes that a further 316 documents showed that AWB had waived its right to keep them secret when the company carried out two projects -- Project Rose and Project Water. Moreover, ABC Rural relates that Justice Young described six documents presented to him involving a certain transaction -- the Tigris Transaction -- as being brought into existence for an improper and dishonest purpose. AWB and the Commonwealth are given three days to work out the mechanics of how the documents will be handed to the Cole Inquiry, ABC News says. About AWB AWB Limited -- http://www.awb.com.au/-- is Australia's leading agribusiness and one of the world's largest wheat marketing companies. It is also one of Australia's top 100 publicly listed companies. The Company is the exclusive manager and marketer of all Australian bulk wheat exports through what is known as the Single Desk. The Company markets wheat, and a range of other grains, into more than 50 countries, with Australian wheat exports worth up to AU$5 billion per year. AWB's footprint includes more than 430 outlets through its subsidiary landmark and has offices across the world. The company employs more than 2,700 staff reaching over 100,000 customers. AWB is also one of the nation's largest suppliers of rural merchandise, distributors of fertilizer, marketers of livestock, brokers of rural real estate and handlers of wool. In late 2005, AWB was accused of knowingly paying AU$290 million in kickbacks to the Government of Iraq, under Saddam Hussein's administration, through the United Nation's oil-for-food program. A UN report then found out that AWB paid the kickbacks to a Jordanian trucking company linked to Hussein's deposed regime. The Australian Government then appointed a commission, headed by retired judge Terence Cole, to investigate into the Company's role in and the Government's alleged "knowledge" of the scandal. The "Cole Inquiry" is currently underway. The scandal is anticipated to create great political repercussions to the Australian Government, given the country's contribution to military action against President Hussein in the 2003 invasion of Iraq. In the Company's half-year report ended March 31, 2006, Brett Kallio, a partner at Ernst & Young, noted that there is inherent uncertainty surrounding the consolidated entity with regard to matters associated with the Cole Inquiry. As the findings of the Cole Inquiry have not yet been determined and reported, there is uncertainty as to the nature of these findings and the financial effect, if any, on the consolidated entity and its operations, Mr. Kallio stated. * * * The Troubled Company Reporter - Asia Pacific reported on July 12, 2006, that six American wheat farmers have launched a AU$1- billion class action against AWB in the United States, claiming its dealings in overseas markets damaged their own incomes. According to the TCR-AP report, more farmers are considering joining the class action. The TCR-AP also previously reported that Australian law firm Maurice Blackburn Cashman was considering a class action against AWB on behalf of shareholders who lost money in the wake of the Cole Inquiry. The Company's balance sheet as of March 31, 2006, reflected total assets of AU$5.7 billion and total liabilities of AU$4.54 billion, showing total equity of AU$1.16 billion. AWCON PTY: Members and Creditors to Receive Wind-Up Report ---------------------------------------------------------- The members and creditors of Awcon Pty Ltd will hold a final meeting on October 13, 2006, at 12:00 p.m., to hear a report on the company's wind-up and property disposal exercises from Liquidator Richard Albarran. The Troubled Company Reporter - Asia Pacific reported on April 25, 2006, that the company commenced a voluntary wind-up of its operations on March 10, 2006. The Liquidator can be reached at: Richard Albarran Hall Chadwick Level 29, 31 Market Street Sydney, New South Wales 2000 Australia BURCHLEY PTY: Members Opt to Close Operations --------------------------------------------- At a general meeting on August 18, 2006, the members of Burchley Pty Ltd resolved to shut down the Company's operations. Subsequently, Stephen Robert Dixon and Michael James Humphris were nominated as joint and several liquidators. The Joint and Several Liquidators can be reached at: Stephen Robert Dixon Michael James Humphris Chartered Accountants Level 30, The Rialto 525 Collins Street Melbourne, Victoria 3000 Australia CASHMERE HEIGHTS: Court Orders Liquidation ------------------------------------------ The High Court of Christchurch issued an order for the liquidation of Cashmere Heights Group Ltd on August 21, 2006. Subsequently, Iain Andrew Nellies and Wayne John Deuchrass were appointed as joint and several liquidators. The Troubled Company Reporter - Asia Pacific reported on August 4, 2006, that the Commissioner of Inland Revenue filed a liquidation petition against the company on June 29, 2006. The Joint Liquidators can be reached at: Iain Andrew Nellies Insolvency Management Limited Level Four, 728 Colombo Street (P.O. Box 13-401), Christchurch New Zealand CRAIG CONBOY: Prepares to Declare Dividend to Creditors ------------------------------------------------------- Craig Conboy Plastering Contractors Pty Ltd will declare its first and final dividend on October 2, 2006. Creditors who cannot prove their claims will be excluded from sharing in the company's dividend distribution. The Liquidator can be reached at: Dennis M. Foley & Associates Certified Practising Accountants 3/F, Lydiard House, 17 Lydiard Street North, Ballarat, Victoria 3350 Australia Telephone:(03) 5331 2600 Facsimile:(03) 5333 2713 e-mail: dmf@cooke-foley.com.au CRC FOR INTELLIGENT: Enters Voluntary Liquidation ------------------------------------------------- Members of CRC For Intelligent Manufacturing Systems and Technologies Ltd convened on August 22, 2006, and resolved to voluntarily wind up the company's operations on August 31, 2006. In this regard, Gregory John Keith was appointed as liquidator. The Liquidator can be reached at: G. J. Keith Grant Thornton Recovery (Vic) Pty Ltd Rialto Towers, Level 35 South Tower 525 Collins Street Melbourne, Victoria 3000 Australia D PROUT PTY: Members Resolve to Wind Up Firm -------------------------------------------- At an extraordinary general meeting on August 28, 2006, the members of D Prout Pty Ltd decided to wind up the Company's operations. Consequently at a creditors' meeting held that same day, Clyde Peter White and Philip Newman were appointed as joint and several liquidators. The Liquidator can be reached at: P. Newman HLB Mann Judd Chartered Accountants Level 1, 160 Queen Street Melbourne 3000 Australia DANCEY & DONOHOE: Schedules Final Meeting for October 26 -------------------------------------------------------- Members of Dancey & Donohoe Pty Ltd will hold a final meeting on October 26, 2006, at 11:00 a.m. During the meeting, Liquidator McCleary will give final accounts showing how the Company was wound up and its property was disposed of. According to the Troubled Company Reporter - Asia Pacific, the members of the Company resolved to voluntarily wind up the company's operations on August 22, 2006. The Liquidator can be reached at: Brian Mccleary Brian McCleary & Co Accountants 126 End Street Deniliquin, New South Wales 2710 Australia DRURY MANAGEMENT: Founder Sentenced for 8 Years in Jail ------------------------------------------------------- Jan Redfern, executive director of enforcement at the Australian Securities and Investments Commission, discloses the decision by the Cairns District Court to jail Piet Cornelius Walters for eight years after an ASIC-led investigation. After a three-week trial, on September 17, 2006, Mr. Walters was convicted and sentenced in relation to 14 charges of dishonesty involving over AU$972,000 in relation to the provision of financial services to 10 clients of Drury Management Pty Ltd. The Court was told that Mr. Walters operated a Cairns-based accounting practice, trading as Drury Management from 1999 to 2003. Mr. Walters obtained loans from private investors who were guaranteed returns from 8% to 15% per annum. Many investors entered into these unsecured loans by way of promissory notes and deeds. Mr. Walters then used the funds for his own purposes. Ms. Redfern says the jailing of Mr. Walters sent a strong message to the community that those who misuse investor funds would be punished. When people invest their funds with a professional, they do so in good faith and place a high degree of trust in that person. "Those who blatantly abuse the trust of their clients and act dishonestly will not be tolerated and will be pursued with the full force of the law," Ms Redfern notes. The Commonwealth Director of Public Prosecutions prosecuted the matter. Background The criminal action follows earlier civil action taken by the ASIC, and Mr. Walters' arrest in Hobart in April 2003. Mr. Walters and Mark Samuel Evans, a co-director of Drury Management, operated an accounting practice, which had offices in Malanda, Atherton and Cairns in Queensland. The ASIC alleged that Mr. Walters also carried on the Drury Management business of providing financial advice and dealing in securities, even though they did not hold a license to do so. Mr. Walters was a securities representative for ABN AMRO Morgans (Morgans) from August 30, 1999. He was terminated as a Proper Authority holder for Morgans on June 28, 2002. In September 2002, the ASIC obtained interim orders from the Supreme Court of Queensland in Cairns appointing an interim receiver to an unregistered, managed investment scheme, operating as Drury Management Pty Ltd, in Malanda, Queensland. Orders were also obtained against Mr. Walters and Mr. Evans, as well as Ransom House, a company associated with Mr. Walters. The Court ordered that Ian David Jessup of Jessup & Partners, Cairns be appointed as receiver of Drury Management Pty Ltd, Mr. Walters, Mr. Evans, and Ransom House Pty Ltd. The Court also ordered an interim injunction restraining the respondents from further operating the scheme, receiving or soliciting funds in connection with the scheme, removing any assets from Australia, or disposing of any assets. In September 2004, the ASIC permanently banned Mr. Walters from providing any financial services. In October 2004, the Supreme Court of Queensland in Cairns ordered for Jessup & Partners to be appointed as liquidator of the Drury Management scheme, as well as Drury Management Pty Ltd and Ransom House Pty Ltd. Declarations and orders were also obtained against Mr. Walters and Mr. Evans, as well as Ransom House Pty Ltd. The Court declared that all four respondents operated an unregistered investment scheme. The Court further declared that Messrs. Walters and Evans, and Drury Management carried on an investment advice business, securities business, and financial services business without a license or an exemption from being licensed. The Court also imposed a permanent injunction restraining all respondents from further operating the scheme, receiving or soliciting funds in connection with the scheme, dealing with any property held by them, and destroying or interfering with any of their books and records. Mr. Walters is a Dutch citizen, also known as Fred Siebolt Hofman who arrived in Australia in June 1991. Mr. Walters, under the name of Hofman, is also wanted on a Canada-wide arrest warrant relating to 31 counts of theft and 30 counts of fraud allegedly committed between 1986 and 1991, involving approximately CAD$9.7 million. DYNAMIC ENTERPRISES: Liquidator to Present Wind-Up Report --------------------------------------------------------- A final meeting of the members and creditors of Dynamic Enterprises (Aust) Pty Ltd will be held on October 13, 2006, at 11:00 a.m. During the meeting, Liquidator Richard Albarran will give his report on the Company's wind-up proceedings and property disposal exercises. The Liquidator can be reached at: Richard Albarran Hall Chadwick Level 29, 31 Market Street Sydney, New South Wales 2000 Australia JAS CONSTRUCTION: Members and Creditors to Convene on October 20 ---------------------------------------------------------------- A final meeting of the members and creditors of Jas Construction Services Pty Ltd will be held on October 20, 2006, at 11:00 a.m. During the meeting, the members and creditors will receive Liquidator Vouris' accounts showing how the Company was wound up and how its property was disposed of. The Liquidator can be reached at: John Vouris Lawler Partners Level 7, 1 Margaret Street Sydney, New South Wales 2000 Australia Telephone:(02) 9232 6800 HIHI BEACH: Court to Hear CIR's Liquidation Bid on Sept. 28 ----------------------------------------------------------- A petition to liquidate Hihi Beach Resort Ltd will be heard before the High Court of Auckland on September 28, 2006, at 10:45 a.m. The Commissioner of Inland Revenue filed the petition with the Court on July 6, 2006. The Solicitor for the Plaintiff can be reached at: Justin Berryman Technical and Legal Support Group Auckland North Service Centre Inland Revenue Department, 5-7 Byron Avenue (P.O. Box 33-150), Takapuna Auckland, New Zealand Telephone: (09) 984 1538 Facsimile: (09) 984 3116 JJ & CO: Wind-Up Process Commenced ---------------------------------- Members of JJ & Co Pty Ltd held a general meeting on August 25, 2006, and decided to wind-up the Company's business operations. Subsequently, Rod Slattery was appointed liquidator at a creditors' meeting held that same day. The Liquidator can be reached at: Rod Slattery PPB Chartered Accountants Level 10, 90 Collins Street Melbourne, Victoria 3000 Australia JOHNSTON MOTOR: Receives Court's Liquidation Order -------------------------------------------------- The High Court of Christchurch on August 21, 2006, released a liquidation order against Johnston Motor Co Ltd. Accordingly, Iain Andrew Nellies and Wayne John Deuchrass were appointed as joint and several liquidators. The Troubled Company Reporter - Asia Pacific reported that Fair City Finance Ltd filed a liquidation petition against the company on July 25, 2006. The petition was heard on August 21, 2006. The Joint Liquidators can be reached at: Iain Andrew Nellies Insolvency Management Limited Level Four, 728 Colombo Street (P.O. Box 13-401), Christchurch New Zealand KERO AIR: Faces Liquidation Proceedings --------------------------------------- On July 6, 2006, the Commissioner of Inland Revenue filed a petition to liquidate Kero Air Ltd before the High Court of Auckland. The petition will be heard on September 28, 2006, at 10:45 a.m. The Solicitor for the Plaintiff can be reached at: Justin Berryman Technical and Legal Support Group Auckland North Service Centre Inland Revenue Department, 5-7 Byron Avenue (P.O. Box 33-150), Takapuna Auckland, New Zealand Telephone: (09) 984 1538 Facsimile: (09) 984 3116 KIDDS SERVICES: To Declare First and Final Dividend on Oct. 20 -------------------------------------------------------------- Kidds Services Pty Ltd will declare its first and final dividend to creditors on October 20, 2006, to the exclusion of those who cannot prove their claims by October 4, 2006. The Liquidator can be reached at: Christopher J. Palmer O'Brien Palmer Level 4, Currency House 23 Hunter Street Sydney, New South Wales 2000 Australia MARPHIL ELECTRICAL: Enters Liquidation Proceedings -------------------------------------------------- The High Court of Timaru on August 31, 2006, ordered Marphil Electrical Ltd to liquidate its business and appoint Iain Andrew Nellies and Paul William Gerrard Jenkins as liquidators. According to the Troubled Company Reporter - Asia Pacific, the Commissioner of Inland Revenue filed a petition to liquidate the Company's business on June 21, 2006. The Liquidators can be reached at: Iain Andrew Nellies Paul William Gerrard Jenkins c/o Insolvency Management Limited Level Three, Burns House 10 George Street (P.O Box 1058) Dunedin, New Zealand M.Q.F. QUEENSLAND: Placed Under Voluntary Wind-Up ------------------------------------------------- The members of M.Q.F. Queensland Pty Ltd held a general meeting on August 18, 2006, and agreed to voluntarily wind up the Company's operations. Accordingly, Christopher R. Campbell and David J. F. Lombe were named liquidators. The Liquidator can be reached at: Christopher R. Campbell David J. F. Lombe Deloitte Touche Tohmatsu Grosvenor Place, 225 George Street Sydney, New South Wales 2000 Australia MCCOMB TRANSPORT: Names Abeyratne and Wong as Liquidators --------------------------------------------------------- The members of McComb Transport Services Pty Ltd convened on August 25, 2006, and resolved to voluntarily wind up the Company's operations. In this regard, William Bernard Abeyratne and Loke Ching Wong were appointed as joint and several liquidators at a creditors' meeting held that same day. The Joint and Several Liquidators can be reached at: William Bernard Abeyratne c/o Harrisons Insolvency Level 5, 150 Albert Road South Melbourne, Victoria 3205 Australia Telephone: 9696 2885 MICHAEL STANLEY: Liquidator Peile to Present Wind Up Report ----------------------------------------------------------- The members of Michael Stanley & Associates Pty Ltd will convene on October 20, 2006, at 10:00 a.m., to receive Liquidator R. Peile's accounts of the Company's wind-up. The Liquidator can be reached at: R. Peile 3 John Davey Avenue Cronulla, New South Wales Australia Telephone:(02) 9523 0637 MR FUNPLATES: To Declare Dividend on September 26 -------------------------------------------------- MR Funplates Pty Ltd will declare dividend on September 26, 2006. Creditors who were unable to prove their claims by September 19, 2006, are excluded from sharing in the dividend distribution. The Deed Administrator can be reached at: Michael Griffin Worrells Solvency & Forensic Accountants 8th Floor, 102 Adelaide Street Brisbane, Queensland 4000 Australia Telephone:(07) 3225 4373 Facsimile:(07) 3225 4311 Web site: http://www.worrells.net.au/ NETWORK EVENTS: Members and Creditors Set to Meet on October 20 --------------------------------------------------------------- A final meeting of the members and creditors of Network Events & Media Pty Ltd will be conducted on October 20, 2006, at 11:40 a.m. At the meeting, Liquidator John Vouris will present accounts of the Company's wind-up proceedings. The Deed Administrator can be reached at: John Vouris Lawler Partners Level 7, 1 Margaret Street Sydney, New South Wales 2000 Australia Telephone:(02) 9232 6800 NEWQUAY PROPERTIES: Shareholders Appoint Joint Liquidators ---------------------------------------------------------- On August 31, 2006, the shareholders of Newquay Properties Ltd appointed Ian Bruce Shephard and Christine Margaret Dunphy as Joint and Several Liquidators. The Liquidator can be reached at: Ian Bruce Shephard Christine Margaret Dunphy c/o Chris Dunphy Shephard Dunphy Limited Level Two, Zephyr House 82 Willis Street, Wellington New Zealand Telephone:(04) 473 6747 Facsimile:(04) 473 6748 Postal Address: Shephard Dunphy Limited P.O. Box 11-793, Wellington New Zealand OG AND JA: Appoints Joint and Several Liquidators ------------------------------------------------- On August 28, 2006, OG and JA Holdings Ltd resolved to liquidate its business. In this regard, Iain Andrew Nellies and Wayne John Deuchrass were appointed joint and several liquidators. The Joint Liquidators can be reached at: Iain Andrew Nellies Wayne John Deuchrass c/o Insolvency Management Limited Level Four, 728 Colombo Street (P.O. Box 13-401) Christchurch New Zealand PASMINCO INVESTMENTS: To Declare Dividend on September 28 --------------------------------------------------------- Pasminco Investments Holdings Pty Ltd will declare its third dividend on September 28, 2006. Creditors who cannot prove their claims by September 20, 2006, will be excluded from sharing in any distribution the Company will make. The Liquidator can be reached at: Peter Mccluskey Ferrier Hodgson Level 29, 600 Bourke Street Melbourne, Victoria 3000 Australia PASMINCO LIMITED: Set to Declare Dividend on September 28 --------------------------------------------------------- Pasminco Ltd will declare its third dividend to creditors on September 28, 2006. Those who cannot prove their claims by September 20, 2006, will be excluded from the distribution. The Deed Administrator can be reached at: Peter Mccluskey Ferrier Hodgson Level 29, 600 Bourke Street Melbourne, Victoria 3000 Australia PIKITIA LTD: Creditors Must Prove Debts by Sept. 28 --------------------------------------------------- On August 31, 2006, the High Court at Auckland ordered for the appointment of Henry David Levin and David Stuart Vance as Joint and Several Liquidators of Pikitia Ltd. In this regard, the company's creditors are required to submit their proofs of claim to the official liquidators by September 28, 2006, for them to share in any distribution the Company will make. The Liquidators can be reached at: Henry David Levin c/o Lisa Lee McCallum Petterson Level Eleven, Forsyth Barr Tower 55-65 Shortland Street, Auckland Postal Address: P.O. Box 6916, Wellesley Street Auckland, New Zealand Telephone:(09) 336 0000 Facsimile:(09) 336 0010 POLLARA PTY: Creditors Must Prove Debts by September 28 ------------------------------------------------------- Creditors of Pollara Pty Ltd are required to submit their proofs of debt to Liquidator Riad Tayeh by September 28, 2006. Failure to prove debts by the due date will exclude a creditor from sharing in any distribution the Company will make. The Joint and Several Liquidator can be reached at: Riad Tayeh de Vries Tayeh PO Box 218 Parramatta, New South Wales 2124 Australia PROPERTY DEVELOPMENT: Court Orders Wind Up Operations ----------------------------------------------------- On August 25, 2006, the Federal Court of Australia ordered Property Development Enterprises No. 5 Pty Ltd to wind up its operations. Subsequently, Antony De Vries was appointed as official liquidator. The Liquidator can be reached at: Antony De Vries de Vries Tayeh Level 3, 95 Macquarie Street Parramatta, New South Wales 2125 Australia R J BRADY: Members and Creditors to Receive Wind-Up Report ---------------------------------------------------------- A final meeting of the members and creditors of R J Brady Contracting Pty Ltd will be held on October 16, 2006, at 10:00 a.m. During the meeting, Liquidator Nick Malanos will present the accounts on the Company's wind-up and property disposal exercises. As reported by the Troubled Company Reporter - Asia Pacific, the company commenced a wind-up of its operations on July 5, 2006. The Liquidator can be reached at: Nicholas Malanos c/o Star, Dean-Willcocks Level 1, 32 Martin Place, Sydney, New South Wales 2000 Australia Telephone: 9223 2944 R.M.J. MANAGEMENT: Final Meeting Scheduled for October 20 --------------------------------------------------------- A final meeting of the members and creditors of R.M.J. Management Services Pty Ltd, which is in liquidation, will be held on October 20, 2006, at 11:20 a.m. During the meeting, Liquidator Vouris will present the final accounts on the Company's wind-up and property disposal exercises. The Liquidator can be reached at: John Vouris Lawler Partners Level 7, 1 Margaret Street Sydney, New South Wales 2000 Australia Telephone:(02) 9232 6800 RAN HOLDINGS: Court Refuses Bail for Nicholai Dimitri Popov Bail ---------------------------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on September 13, 2006, the Australian Federal Police at Brisbane Airport arrested Nicholai Dimitri Popov, a former director of RAN Holdings International Pty Ltd, on one count of 178 BB of contravening the NSW Crimes Act. The arrest was related to an alleged fraudulent property deal involving a young Sydney couple who had lost AU$245,000. Mr. Popov appeared in the Brisbane Magistrates Court and was remanded in custody and ordered to be extradited to Sydney and scheduled to appear in the Downing Centre Court on September 13, 2006, the TCR-AP said. In an update, a report from The Australian relates that Mr. Popov was refused bail, despite his elderly pensioner parents offering their life savings as surety for his release, because he is regarded as a flight risk, The Australian reports. Magistrate Allan Moore said the AU$10,000 savings of Mr. Popov's parents is too paltry to secure his release. "The sum is all the parents are able to come up with, but it is an extremely small amount," Mr. Popov's lawyer, Andrew Miller, says. The Australian relates that prosecutor Tanya Panico handed Mr. Moore evidence showing Mr. Popov had fled overseas after the collapse of his company, Radisson Maine, in November 2004, and had tried to leave again. The paper cites Mr. Miller as telling the court his client would be pleading not guilty, noting that his client is likely to remain on remand in jail for "a substantial time" as a committal hearing might not be held for months. Mr. Miller asserted that his client is willing to surrender his passport, live with his parents in their western Sydney home, and to report to police twice a day, noting that it was the first time Mr. Popov had "come to the notice of the police." Prosecutors would hand over a three-volume brief of evidence by month's end, The Australian says. * * * As reported in the Troubled Company Reporter - Asia Pacific on November 1, 2004, David Lombe, of Deloitte, was appointed as provisional liquidator of the Sydney-based property companies, RAN Holdings International Pty Ltd, and its main subsidiary company, Radisson Maine Property Group (Australia) Pty Ltd. The Australian Securities and Investments Commission commenced an investigation into the Radisson Maine Group of companies after information suggesting that the companies, and particularly its main trading firm, Radisson Maine Property, may be trading while insolvent. The Radisson Maine Group was primarily involved in the property market, with Robert Bassili as its chief executive officer and as sole director of Radisson Maine Property. Nicholai Dimitri Popov was the sole director of Ran Holdings. The Court found that the companies were insolvent and should be wound up based on the opinion expressed by the provisional liquidator's reports and as there was no proof that any further funding would be received. SABA PERSIAN: Liquidation Commenced on August 18 ------------------------------------------------ Shareholders of Saba Persian Caf� Ltd resolved on August 18, 2006, to voluntary liquidate the company. In this regard, Iain Andrew Nellies and Paul William Gerrard Jenkins were appointed as the company's Joint and Several Liquidators. The Joint Liquidators can be reached: Iain Andrew Nellies Insolvency Management Limited Level Three, Burns House 10 George Street (P.O Box 1058) Dunedin, New Zealand SALINAS AIR: Members Opt to Shut Down Business ---------------------------------------------- On August 24, 2006, members of Salinas Air Conditioner Installation Pty Ltd passed a special resolution to voluntarily wind up the Company's operations. The members also nominated Alan Hayes and Scott Darren Pascoe as joint and several liquidators. The Joint and Several Liquidators can be reached at: Alan Hayes Scott Darren Pascoe SimsPartners Level 24, 264 George Street Sydney, New South Wales 2000 Australia SCHUTT PRODUCTIONS: Members Resolve to Wind Up Operations --------------------------------------------------------- The members of Schutt Productions Pty Ltd held a general meeting on August 22, 2006, and resolved to voluntarily wind up the Company's operations. Consequently, Peter P. Krejci was appointed as liquidator at the creditors meeting held that same day. The Liquidator can be reached at: Peter P. Krejci GHK Green Krejci Level 13, 1 Castlereagh Street Sydney, New South Wales 2000 Australia SINCLAIRS SELF: Enters Wind-Up Proceedings ------------------------------------------ On August 24, 2006, the members of Sinclairs Self Service Stores Pty Ltd held a general meeting and resolved to wind up the Company's business operations. David H. Scott was consequently appointed as liquidator. The Liquidator can be reached at: David H. Scott Jones Condon Chartered Accountants Ground Floor, 77 Station Street Malvern, Victoria 3144 Australia SMASH MUSIC: Court Appoints Official Liquidator ----------------------------------------------- The Supreme Court of New South Wales, Equity Division appointed Christopher J. Palmer as official liquidator of Smash Music Pty Ltd on September 1, 2006. The Liquidator can be reached at: Christopher J. Palmer O'Brien Palmer Level 4, 23 Hunter Street Sydney, New South Wales 2000 Australia SOUTH ALPS: Court Sets Date to Hear Liquidation Petition -------------------------------------------------------- A petition to liquidate South Alps New Zealand Co Ltd will be heard before the High Court of Auckland on September 28, 2006, at 10:45 a.m. The Commissioner of Inland Revenue filed the petition on July 7, 2006. The Solicitor for the Plaintiff 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 SPG PROPERTY: Members Decide to Liquidate Business -------------------------------------------------- At a general meeting on August 29, 2006, the members of SPG Property Pty Ltd agreed to liquidate the Company's business. In this regard, Peter Charles Hicks was appointed as liquidator. The Liquidator can be reached at: Peter Charles Hicks Forsythes Chartered Accountants Level 5 175 Scott Street, Newcastle Australia STARPLAN VENTURES: Placed Under Members' Voluntary Liquidation -------------------------------------------------------------- At a general meeting on August 29, 2006, the members and creditors of Starplan Ventures Pty Ltd resolved to voluntarily wind up the Company's business operations. In this regard, Gideon Isaac Rathner and David John Coyne were appointed as joint and several liquidators. The Joint and Several Liquidators can be reached at: Gideon Isaac Rathner David John Coyne Lowe Lippmann 5 St Kilda Road, St Kilda Victoria, 3182 Australia SWITZER ENTERPRISES: To Declare Final Dividend on October 3 ----------------------------------------------------------- Switzer Enterprises Pty Ltd will declare its final dividend on October 3, 2006. Creditors who are unable to prove their claims by September 26, 2006, will be excluded from sharing in any distribution the Company will make. The Liquidator can be reached at: Salvatore Algeri Simon A. Wallace-Smith Deloitte Touche Tohmatsu 180 Lonsdale Street Melbourne, Victoria 3000 Telephone:(03) 9208 7000 TP EXTENDED: Members Appoint Liquidator --------------------------------------- Members of TP Extended Pty Ltd convened on August 25, 2006, and voluntarily resolved to wind-up the Company's operations. In this regard, Danny Vrkic was appointed as liquidator and confirmed at the meeting of creditors held later that day. The Liquidator can be reached at: Danny Vrkic Jirsch Sutherland & Co - Wollongong Chartered Accountants Level 3, 6-8 Regent Street Wollongong, New South Wales 2500 Australia Telephone:(02) 4225 2545 Facsimile:(02) 4225 2546 T.Y.D.S.E. LTD: Court Favors Liquidation Petition ------------------------------------------------- On August 31, 2006, the High Court of Nelson ordered for the liquidation of T.Y.D.S.E. Ltd. Accordingly, Iain Andrew Nellies and Paul William Gerrard Jenkins were appointed to act as Joint and Several Liquidators. According to the Troubled Company Reporter - Asia Pacific, the Commissioner of Inland Revenue filed a liquidation petition against the company on July 4, 2006. The petition was heard on August 31, 2006. The Joint Liquidators can be reached at: Iain Andrew Nellies Insolvency Management Limited Level Three, Burns House 10 George Street (P.O Box 1058) Dunedin, New Zealand TWGG LTD: To Receive Creditors Proofs of Claim Until Oct.9 ---------------------------------------------------------- On August 29, 2006, the shareholders of TWGG Ltd passed a special resolution appointing Leah Veronica Peacock as official liquidator of the company. Ms. Peacock requires creditors of the company to submit their proofs of claim by October 9, 2006. The Liquidator can be reached at: Leah Veronica Peacock Sudburys Limited, Chartered Accountants 1/F, Michael Hill Building 25 Rathbone Street (P.O. Box 154) Whangarei, New Zealand Telephone:(09) 438 1113 VILLAGE ROADSHOW: Completes AU$20 Million Sea World Nara Buyout --------------------------------------------------------------- On September 15, 2006, Village Roadshow Ltd bought the remaining 50% of Sea World Nara Resort -- its northern former joint holdings, Gold Coast Weekend Bulletin, reports. According to the report, the AU$20-million buyout of Nara Australia's interest in the resort will result in Village Roadshow owning 100% of all the Queensland based Village Roadshow Theme Park and Hotel assets. Village will also take responsibility for bank debt of about AU$5.5 million, Gold Coast Weekend says. Warner Bros. Buyout Also Completed Gold Coast recounts that earlier this year, Village Roadshow completed a AU$254 million buyout of its then Movie World partner Warner Bros., with the deal including an agreement to explore opportunities for Warner-branded parks in Asia. The Warner Bros. Buyout gave Village Roadshow 100% ownership of its theme park properties on the Gold Coast, including Movie World, Wet'n'Wild Water Park, Sea World, and Australian Outback Spectacular. Gold Coast further recounts that in August, the company was scouting Athens locations for its latest theme park attraction, with the its Greek park set to premiere alongside Asian additions. The media and entertainment group is set to base its European Movie World at one of Athens' former Olympic Games venues, where it has already been short-listed in the tender process, Gold Coast notes. About Village Roadshow Headquartered in Melbourne, Australia, Village Roadshow Limited -- http://www.villageroadshow.com.au/-- is an international media and entertainment company that operates core businesses in cinema, movie production, film distribution, radio, and theme parks. The Company's troubles began in 2003 when it offered to buy back its preference shares to head off a litigation threat by some preference shareholders who were angered at the Company's suspension of dividend payments. Village Roadshow's reported and budgeted profitability would not allow it to comfortably fund about AU$42 million worth of ordinary and preference share dividends out of annual earnings. For the past years, the Company has been facing major litigation brought by former business partners, who had invested in its film investment scheme. In December 2005, the Film Production division undertook a substantial restructure. As part of this restructure, a US$115 million Promissory Note was issued to Crescent Film Holdings and options to acquire a 50% shareholding in the Hollywood film production and related film exploitation business, Village Roadshow Pictures Group, were granted to Crescent and its affiliates. This initiative, together with the release of a US$70 million security deposit (replaced by a Letter of Credit), returned significant cash reserves to Village Roadshow. By January 2006, Village Roadshow had advised that VRPG had reached agreement with its financiers to increase its film production facility from US$900 million to US$1.4 billion. VRPG will continue to co-produce and co-finance films with its principal production partner, Warner Bros. The revolving period of the facility has also been extended for a further three years. As a result, drawdowns will now be available under the facility until January 2011 (previously February 2008) with the debt now scheduled to be fully repaid by January 2015 (previously January 2012). * * * The Troubled Company Reporter - Asia Pacific reported on March 1, 2006, that Village Roadshow posted a AU$2.21-million loss for the half-year ended December 31, 2006, compared to a net profit of AU$29.99 million in the previous corresponding half. The result is contrary to a profit downgrade in January, which already suggested a break-even figure. The entertainment group blames its poor financial result on lower cinema ticket sales, compounding losses from the restructuring of its movie production business and legal battles. WARRINGTON BUILDERS: High Court Issues Liquidation Order -------------------------------------------------------- On August 21, 2006, the High Court of Christchurch ordered for the liquidation of Warrington Builders (2004) Ltd. Subsequently, Iain Andrew Nellies and Wayne John Deuchrass were appointed to act as Joint and Several Liquidators. As reported by the Troubled Company Reporter - Asia Pacific, Williams Hickman Electrical Ltd filed a liquidation petition against the company on July 17, 2006. The petition was heard on August 21, 2006. The Joint Liquidators can be reached at: Iain Andrew Nellies Insolvency Management Limited Level Four, 728 Colombo Street (P.O. Box 13-401), Christchurch New Zealand WATERSIDE HOLDINGS: Creditors' Proofs of Claim Due on Oct. 2 ------------------------------------------------------------ On August 31, 2006, the High Court at Auckland appointed John Trevor Whittfield and Dennis John Wood as Joint and Several Liquidators of Waterside Holdings Ltd. Subsequently, the Joint Liquidators require creditors to prove their debts on October 2, 2006, or be excluded from sharing in any distribution the Company will make. According to the Troubled Company Reporter - Asia Pacific, the Commissioner of Inland Revenue filed a petition to liquidate Waterside Holdings Ltd on March 30, 2006. The Liquidator can be reached at: John Trevor Whittfield Dennis John Wood McDonald Vague, P.O. Box 6092 Wellesley Street Post Office Auckland, New Zealand Telephone:(09) 303 0506 Facsimile:(09) 303 0508 Web site: www.mvp.co.nz WESTPOINT GROUP: ASIC Seeks Warrant for N. Carey's Arrest --------------------------------------------------------- The Australian Securities and Investments Commission asked Justice Robert French to issue a warrant for the arrest of Norman Phillip Carey, the head of collapsed property group Westpoint, after he failed to produce offshore bank documents, by a set date, the Australian Associated Press reports. The AAP notes that the documents would help with investigations into Westpoint's collapse. The ASIC's barrister Stephen Owen-Conway asserts that Mr. Carey's failure is a "contempt of court," adding that Justice French is within his rights to issue a warrant for Mr. Carey's arrest. However Justice French said not complying with the orders did not constitute contempt, The Age relates. Mr. Carey's lawyer, Terry Clavey explained that his client had written to the banks, which had advised there were no documents, the AAP notes. Thus, Justice French ordered Mr. Carey to file an affidavit testifying he wrote to the banks and that they held no relevant documents, the Age says. About Westpoint Group Headquartered in Perth, Western Australia, the Westpoint Group - - http://westpoint.com.au/-- is engaged in property development and owns or manages retail and commercial properties with a total value of over AU$300 million. The Group's troubles began in 2005 when the Australian Securities and Investments Commission commenced investigations on 160 companies within the Westpoint Group. The ASIC's investigation led to ASIC initiating action in late 2005 in the Federal Court of Australia against a number of mezzanine companies in the Westpoint Group, including winding up proceedings. The ASIC contends that Westpoint projects are suffering from significant shortfall of assets over liabilities so that hundreds of investors are at serious risk of not receiving repayment of their investments. The ASIC also sought wind-up orders after the Westpoint companies failed to comply with its requirement to lodge accounts for certain financial years. These wind-up actions are still continuing. In February 2006, the Federal Court in Perth issued a wind-up order against Westpoint Corporation Pty Ltd. The ASIC had applied to wind up the company on grounds of insolvency. The ASIC believes that Westpoint Corporation is responsible for arranging, managing and coordinating Westpoint Group's property projects as well as holding money for other group companies. The ASIC was concerned that Westpoint Corporation was unable to pay its debts, including its obligations under the guarantees given to the mezzanine companies to make good expected shortfalls in the repayment of amounts owed to investors. The Westpoint Group's collapse is considered by many as the largest of its type in recent years, with small investors being the biggest group affected. Investors are currently joining forces to commence a class action against Westpoint and its advisors. WESTPOINT GROUP: Court Allows KordaMentha to Sell Warnbro Asset --------------------------------------------------------------- Justice Robert French cleared the way for Westpoint Corporation receivers KordaMentha to sell an asset -- the Warnbro Fair shopping center in Western Australia -- the Australian Associated Press reports. According to The Age, an option over Warnbro was transferred from Westpoint in October 2005 to a Westpoint-associated company, Bowesco, which is run by Mr. Carey's sister. The paper recounts that since April 20, 2006, Bowesco has not been allowed to dispose or deal with its assets as the Australian Securities and Investments Commission continues its investigations into the collapse of Westpoint. The AAP says KordaMentha was specifically assigned to the Warnbro Fair option held by Bowesco. Thus, only KordaMentha could deal with the option, not Bowesco, the AAP cites Justice French, as saying. The Age relates that KordaMentha has been negotiating with a third party wanting to immediately buy the Warnbro Fair option. The funds from the sale would be made available to the investors and creditors of the Warnbro Fair Syndicate, the AAP notes. About Westpoint Group Headquartered in Perth, Western Australia, the Westpoint Group - - http://westpoint.com.au/-- is engaged in property development and owns or manages retail and commercial properties with a total value of over AU$300 million. The Group's troubles began in 2005 when the Australian Securities and Investments Commission commenced investigations on 160 companies within the Westpoint Group. The ASIC's investigation led to ASIC initiating action in late 2005 in the Federal Court of Australia against a number of mezzanine companies in the Westpoint Group, including winding up proceedings. The ASIC contends that Westpoint projects are suffering from significant shortfall of assets over liabilities so that hundreds of investors are at serious risk of not receiving repayment of their investments. The ASIC also sought wind-up orders after the Westpoint companies failed to comply with its requirement to lodge accounts for certain financial years. These wind-up actions are still continuing. In February 2006, the Federal Court in Perth issued a wind-up order against Westpoint Corporation Pty Ltd. The ASIC had applied to wind up the company on grounds of insolvency. The ASIC believes that Westpoint Corporation is responsible for arranging, managing and coordinating Westpoint Group's property projects as well as holding money for other group companies. The ASIC was concerned that Westpoint Corporation was unable to pay its debts, including its obligations under the guarantees given to the mezzanine companies to make good expected shortfalls in the repayment of amounts owed to investors. The Westpoint Group's collapse is considered by many as the largest of its type in recent years, with small investors being the biggest group affected. Investors are currently joining forces to commence a class action against Westpoint and its advisors. ================================ C H I N A & H O N G K O N G ================================ ACXIOM CORP: Unveils Preliminary Results of Dutch Auction --------------------------------------------------------- Acxiom Corp. disclosed preliminary results of its modified "Dutch Auction" self-tender offer, which expired at 5:00 p.m. on Sept. 12, 2006. Based on the preliminary count by the depositary for the tender offer, an aggregate of 24,911,233 shares of Acxiom common stock were properly tendered and not withdrawn at or below a price of US$27.00 per share, including 8,537,481 shares that were tendered through notice of guaranteed delivery. Based on these preliminary results the company expects to purchase 11,111,111 shares in the tender offer, subject to proration, at US$25.75 per share. Pursuant to the terms of the tender offer, Acxiom offered to purchase shares of its common stock at a price not less than US$25 and not greater than US$27 per share. Acxiom has been informed by Computershare Trust Company, N.A., the depositary for the tender offer, that the preliminary proration factor for the shares tendered at US$25.75 and below is approximately 97 percent. The exact proration factor is subject to delivery of the shares that were tendered through notice of guaranteed delivery. The results disclosed are preliminary and subject to verification by the depositary of the proper delivery of the shares validly tendered and not withdrawn. Final results will be announced following the completion of the verification process. Acxiom expects payment for the shares accepted for purchase and the return of all shares tendered and not accepted for purchase to occur within one week. The repurchase of the shares will be funded with proceeds from a new US$800 million credit facility on or about Sept. 15, 2006. ValueAct Capital has advised Acxiom that neither ValueAct Capital nor any of its affiliates tendered any of its shares of Acxiom into the modified Dutch Auction. The dealer managers for the self-tender offer are J.P. Morgan Securities Inc. and Stephens Inc. The information agent is Innisfree M&A Incorporated, and the depositary is Computershare Trust Company, N.A. Any questions about the self-tender offer may be directed to the information agent at 1-877-750-9457, or the dealer managers, J.P. Morgan Securities Inc. at 1-877-371- 5947 or Stephens Inc. at 1-800-643-9691. About Acxiom Corp. Based in Little Rock, Arkansas, Acxiom Corp. (Nasdaq: ACXM) -- http://www.acxiom.com/-- integrates data, services and technology to create and deliver customer and information management solutions for many of the largest, most respected companies in the world. The core components of Acxiom's innovative solutions are Customer Data Integration technology, data, database services, IT outsourcing, consulting and analytics, and privacy leadership. Founded in 1969, Acxiom has locations throughout the United States, Europe, Australia and China. Acxiom has a team of specialists with sales and business development associates based in the largest Latin American markets: Brazil, Argentina and Mexico. AGRICULTURAL BANK: To Realize Reform Plans Soon, PBOC Head Says --------------------------------------------------------------- Agricultural Bank of China's reform plans will be carried out soon, Agence France Press reports, citing Central Bank Chief Zhou Xiaochuan. "I think it will not be too long," Mr. Zhou told reporters when asked about the schedule for reforming Agricultural Bank. According to AFP, Agricultural Bank is waiting for a government bailout to clean up a balance sheet saddled with huge bad loans, part of plans to recapitalize the biggest banks and ensure China can sustain economic growth rates. Agricultural Bank -- part of the Chinese big four banking giants -- has more than US$90 billion in bad loans on its books. Bad loans stemmed from lending heavily on the government's orders to shaky rural borrowers, the AFP relates. The Chinese government, intent on shoring up its fragile financial sector, has earlier injected a total of US$60 billion into the nation's other three banking giants -- Bank of China, Industrial and Commercial Bank of China and China Construction Bank. Reforming Agricultural Bank is a politically sensitive issue given the impact any reform could have on rural areas, AFP says. Previous reports stated that the bank would follow the footsteps of the other state banks by obtaining a bailout and then listing on the stock market. Mr. Zhou reiterated his stand that liberalization of the yuan regime will be gradual and that any widening of the yuan's trading bands against the dollar will be based on market movements, AFP relates. "You know China's philosophy is that we will reform gradually because, like a lot of other countries, we need to take care of our population and corporations," Mr. Zhou said. * * * The Agricultural Bank of China -- http://www.abocn.com/-- is the mainland's fourth largest bank. It has lagged behind other major Chinese commercial banks, which have received government injections of new capital and been allowed to link up with foreign partners in preparation for raising money on foreign stock exchanges. Despite posting operating profits of over CNY42.4 billion in 2005, the Bank is still carrying billions of dollars in unpaid loans to state companies, which it says accounted for 26% of its lending at the end of last year. The Troubled Company Reporter- Asia Pacific on June 27, 2006, the National Audit Office found accounting irregularities involving CNY51.6 billion which CNY14.27 billion of the amount come from deposit business, CNY27.62 billion on loan grants, and CNY9.72 billion in fraudulent bill issuance. * * * Fitch Ratings on August 14, 2006, affirmed Agricultural Bank of China's Individual 'E' and Support '1' ratings. ADVANTAGE PLUS: Wind-Up Petition Hearing Slated for Oct. 4 ---------------------------------------------------------- A wind-up petition against Advantage Plus Technology Ltd will be heard before the High Court of Hong Kong on October 4, 2006, at 9:30 a.m. Law Shuk Chun filed the petition with the Court on August 4, 2006. The Director of Legal Aid can be reached at: Joe Poon 34/F, Hopewell Centre 183 Queen's Road East Wanchai, Hong Kong BALLY TOTAL: Willows Becomes VP for Fitness, Nutrition & Retail --------------------------------------------------------------- Bally Total Fitness Holding Corp. promoted Tia Willows to vice president, fitness, nutrition and retail services, from vice president, operations and fitness services. In her expanded role, Ms. Willows will oversee all retail operations in addition to her current responsibilities leading the company's personal training, group exercise and weight loss initiatives. By consolidating the four departments of retail, nutrition, group exercise and personal training under one umbrella, Bally expects to better integrate and align the initiatives of each department, which will translate into an even stronger connection between exercise and nutrition for members. "Tia's more than 25 years of experience in the fitness industry, in a variety of roles across the company, made her the clear choice to lead the integration of all the products and services that Bally Total Fitness has to offer," said Barry R. Elson, Acting CEO, Bally Total Fitness. "This is a key operational role that will drive increased revenues and improve the total member experience." Ms. Willows joined Bally Total Fitness in Sept. of 1980 and has held a variety of different positions in the company since her initial hire, including regional vice president, assistant vice president, group fitness, vice president, fitness services and most recently, vice president, operations and fitness services. About Bally Total Bally Total Fitness Holding Corp. -- http://www.Ballyfitness.com-- is a commercial operator of fitness centers, with over 400 facilities located in 29 states, Mexico, Canada, Korea, the Caribbean, and China under the Bally Total Fitness, Bally Sports Clubs and Sports Clubs of Canada brands. At June 30, 2006, Bally Total's balance sheet showed a US$1,410,293,000 stockholder's deficit. * * * As reported in the Troubled Company Reporter on March 17, 2006, Standard & Poor's Ratings Services held its ratings on Bally Total Fitness Holding Corp., including the 'CCC' corporate credit rating, on CreditWatch with developing implications, where they were placed on Dec. 2, 2005. BERRY PLASTICS: Discloses Pricing Terms on 10.75% Notes Offer ------------------------------------------------------------- Berry Plastics Corp. disclosed the pricing terms of its tender offer and consent solicitation for any and all of its outstanding US$335 million aggregate principal amount of 10.75% Senior Subordinated Notes due 2012. Berry Plastics also disclosed that as of 5:00 p.m., New York City time, on Sept. 5, 2006, the "Consent Payment Deadline", it had received tenders and consents from holders of US$335 million in aggregate principal amount of the Notes, representing 100% of the total outstanding principal amount of the Notes and that it has extended the expiration date for the tender offer from 12:00 midnight, New York City time, on Sept. 19, 2006, to 12:00 midnight on Sept. 20, 2006. The total consideration for each US$1,000 principal amount of Notes validly tendered is US$1,092.07, which includes a consent payment of US$30 per US$1,000 principal amount of Notes. Holders whose Notes are validly tendered after the Consent Payment Deadline, but on or prior to 12:00 midnight, New York City time, on Sept. 20, 2006 and accepted for purchase by the Company will receive the tender offer consideration of US$1,062.07 per US$1,000 principal amount of Notes tendered, but will not receive the consent payment, and will receive accrued and unpaid interest on the Notes up to, but not including, the payment date for the Offer. Copies of the complete terms and conditions of the tender offer and consent solicitation may be obtained from: MacKenzie Partners, Inc. Phone: (212) 929-5500 (collect) or (800) 322-2885 (U.S. toll-free) Deutsche Bank Securities Inc. is the exclusive dealer manager and solicitation agent for the tender offer and consent solicitation. Additional information concerning the tender offer and consent solicitation may be obtained by contacting Deutsche Bank Securities Inc., at (212) 250-6008. About Berry Plastics Based in Evansville, Indiana, Berry Plastics Corp. -- http://www.berryplastics.com/-- is a leading manufacturer and marketer of rigid plastic packaging products. Berry Plastics provides a wide range of rigid open top and rigid closed top packaging as well as comprehensive packaging solutions to over 12,000 customers, ranging from large multinational Corp.s to small local businesses. The company has 25 manufacturing facilities worldwide and more than 6,800 employees and 25 manufacturing facilities in the United States, Mexico, Canada, Europe and China. * * * As reported in the Troubled Company Reporter on Aug. 7, 2006, Moody's Investors Service confirmed the B3 rating on Berry Plastics Corp.'s US$335 million 10.75% senior subordinated notes, due July 15, 2012. As reported in the Troubled Company Reporter on July 31, 2006, Standard & Poor's Ratings Services revised its CreditWatch implications on the 'B+' corporate credit rating on Berry Plastics Corp. to negative from developing. CANADA INDUSTRIAL: Creditors' Proofs of Debt Due on September 29 ---------------------------------------------------------------- Liquidators James Wardell and Chan Wai Dune, Charles require creditors of Canada Industrial Ltd to submit their proofs of debt by September 29, 2006. Failure to comply with the requirement will exclude a creditor from sharing in any distribution the company will make. The Joint and Several Liquidators can be reached at: James Wardell Chan Wai Dune, Charles Room 1601-02, 16/F One Hysan Avenue, Causeway Bay Hong Kong CORGI INTL: Incurs US$6.63 Million Working Capital Deficit ---------------------------------------------------------- Corgi International Ltd. recorded a US$6.63 million working capital deficit at March 31, 2006, taken from US$32.32 million in current liabilities less US$25.69 million in current assets. At March 31, 2005, the Company recorded an US$18.86 million positive working capital. It had US$53.52 million in current assets and US$34.66 million in current liabilities. The Company cited that "difficult market conditions" have caused significant operating losses and placed considerable pressure on its liquidity. The Company has incurred significant operating losses and net losses in each of the three years in the three- year period ended March 31, 2006. As of March 31, 2006, the Company had an accumulated deficit of US$15,765,000. It had cash and cash equivalents totaling US$820,000, and available credit facilities of US$15,250,000 of which US$10,777,000 were utilized as borrowings. The available banking facilities of US$15,250,000 reflected a temporary reduction of banking facilities from the Agricultural Bank of China from US$7,398,000 to US$3,267,000 as of March 31, 2006 due to macro-economic controls in the People's Republic of China under which limits had been placed on ABC's authority to lend to its banking clients. As of August 22, 2006, the Company and its subsidiaries have been repaying amounts drawn on its banking facilities in accordance with the repayment terms. The company's balance sheet as of March 30, 2006, reflects US$32.54 million in total liabilities and US$60.03 million in total assets. Total stockholders' equity amounted to US$27.49 million. As of March 31, 2006, the Company had breached certain financial undertakings in respect to two bank facilities. The Company did not meet minimum financial ratios related to consolidated tangible net worth, consolidated net borrowings to consolidated tangible net worth, current assets to current liabilities, interest coverage, and consolidated profits before interest and tax. The lenders have not notified the Company that it is in a state of default, and the Company has continued to maintain banking relationships with each of these financial institutions. For both facilities, the lenders have the right to demand payment of all amounts owed at any time, irrespective of whether the Company had complied with the financial undertakings. As of March 31, 2006, total outstanding borrowings under these two credit facilities amounted to US$3,241,000. With respect to the first credit facility, as of March 31, 2006, the lender had suspended further utilization of the credit facility. Total outstanding borrowing under this credit facility amounted to US$1,322,000 as of March 31, 2006. On April 24, 2006, a repayment schedule was agreed with the lender whereby the Company has agreed to repay US$150,000 per month, with the remaining balance to be repaid by Nov. 26, 2006. With respect to the other credit facility, the lender has revised the terms of the credit facility by reducing the available amount to be drawn down from US$2,564,000 to US$2,051,000 and requiring the Company to maintain a US$1,000,000 restricted cash deposit with the lender. As of August 22, 2006, the Company has not signed the revised agreement as the Company is still in negotiation with the lender with respect to the term requiring the Company to place a US$1,000,000 restricted deposit with the lender. As of March 31, 2006, the total amount outstanding under this facility amounted to US$1,919,000. In April 2006, the Company responded to the liquidity deterioration by issuing convertible notes and warrants in a private placement for aggregate proceeds amounting to US$5,650,000 and replacing its existing US$4,400,000 overdraft facility with a US$8,700,000 receivable discounting facility in June 2006. However, the utilization of the receivable discounting facility will depend on actual sales levels. The amount available for utilization under the discounting facility will be less than the amount available under the overdraft facility to the extent actual sales are lower than historical sales. The proceeds of the private placement have been substantially utilized as required to fund working capital deficits. On Oct. 26, 2005, the Company announced that it had changed its corporate name from Zindart Ltd. to Corgi International Ltd. to reflect the Company's focus on its franchise for die-cast collectible products and children's toy lines. The Company was incorporated in Hong Kong as a limited company under the Hong Kong Companies Ordinance in July 1977. * * * Corgi International Ltd. and its subsidiaries design, manufacture, market and distribute die-cast and injection-molded plastic products. As of March 31, 2006, its operations consist of Corgi Classics Holdings Ltd. and its subsidiaries, whose operations are primarily in the United Kingdom and the United States, and Zindart Manufacturing Ltd. whose operations are primarily in Hong Kong and the People's Republic of China. CYBERWORKS AUDIO: Appoints Joint and Several Liquidators -------------------------------------------------------- Stephen Briscoe and Cosimo Borrelli were appointed as joint and several liquidators of Cyberworks Audio Video Technology Ltd on August 22, 2006. The Joint and Several Liquidators can be reached at: Stephen Briscoe Cosimo Borrelli 5/F, Allied Kajima Building 138 Gloucester Road Wanchai, Hong Kong FIAT SPA: Acquires Vehicle-Related Business of Yuejin Motor ----------------------------------------------------------- Naveco Iveco, a unit of Fiat S.p.A., signed a joint venture agreement with Nanjing Automotive Corp. where Naveco acquires the commercial vehicle-related business of Yuejin Motor Corp., controlled by NAC. The Joint Venture contract has been signed in the presence of the President of the Council of Ministers of the Republic of Italy, Romano Prodi, of the Governor of Jiangsu Province, Liang Baohua, of the President of the Italian Confederation of Industry and of Fiat Group, Luca Cordero di Montezemolo and of the CEO of the Fiat Group, Sergio Marchionne. "Naveco's acquisition of Yuejin Motor Company completes Iveco's strategy of having a full range of commercial vehicles in China which, in addition to the vehicles we have mentioned, will also comprehend heavy vehicles to be produced in Chongqing under a long-term cooperation with SAIC Motor Corporation," Paolo Monferino, Iveco CEO disclosed. Naveco currently manufactures over 20,000 commercial vehicles per year. Through the new Naveco, Iveco will participate in the Chinese market's high-volume segments of light and medium commercial vehicles for goods transport. The new Naveco's anticipated volumes at start-up will be about 70,000 units per year. The medium-term plan envisages a further increase up to 100,000 units. The new Naveco will couple the current production of the high- grade commercial vehicle Daily with the current Yuejin range, the latter currently undergoing an aggressive product improvement plan through the introduction of Iveco technologies. This plan will bring substantial enhancements to the Yuejin products that will be gradually equipped with Iveco components and engines compliant with future emission requirements. The Iveco activities in China date back to the mid- 1980s with the launch of light commercial vehicles based on the Daily platform. These vehicles were produced by the newly established Joint Venture NAC Iveco, called Naveco, whose current product range is positioned in the high-end, premium market segment, mainly focused upon passenger transport, but limited in terms of volumes. About Naveco Naveco Ltd., a Sino-Italian Joint Venture established by Nanjing Automotive Corporation and Iveco, is a light commercial vehicle and engine manufacturer. The JV's product offerings comprise more than 200 models in 6 segments, from 3 to 6 tons, including light and medium buses, military off-road vehicles, and special vehicles. Over the years, the company has built up a reliable and effective quality system certified in accordance with several international quality standards. About Yuejin Motor Corporation Yuejin Motor Corporation is one of the largest automotive enterprises in China. At present, Yuejin Motor Corporation possesses an annual production capacity of 180,000 vehicles of various models and oversees three major vehicle production bases, namely, Nanjing Yuejin, Nanjing Iveco and Nanjing Fiat. About Iveco Iveco designs, manufactures, and sales a broad range of light, medium and heavy commercial vehicles, off-road trucks, city and intercity buses and coaches as well as special vehicles for applications such as fire fighting, off-road missions, defence and civil protection. Iveco employs 32,000 people and runs 43 production units in 18 Countries in the world using excellent technologies developed in 15 research centres. Besides Europe, the company operates in China, Russia, Turkey, Australia, Argentina, Brazil, and South Africa. About Fiat S.p.A Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- is one of the largest industrial groups in Italy and the fourth largest European-based automobile manufacturer, with revenues of EUR33.4 billion in the first nine months of 2005. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. * * * As reported in TCR-Europe on Aug. 8, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Italian industrial group Fiat S.p.A. to 'BB' from 'BB-'. At the same time, Standard & Poor's affirmed its 'B' short-term rating on Fiat. S&P said the outlook is stable. "The upgrade reflects Fiat's strong debt reduction achievements, positive trends in the auto sector, and improvements in the group's profitability and cash generation," said Standard & Poor's credit analyst Nicolas Baudouin. As reported in TCR-Europe on Aug. 7, Fitch Ratings changed Fiat S.p.A.'s Outlook to Positive from Stable. Its Issuer Default rating and senior unsecured rating are affirmed at BB-. The Short-term rating is affirmed at B. Around EUR6 billion of debt is affected by this rating action. The Outlook change is underpinned by the consistent improvement of the group's financial profile, the pick-up in Fiat Auto's market shares and earnings since late 2005 and positive expectations for the CNH and Iveco divisions. Fiat carries Moody's Ba3 long-term corporate family rating since July 14, 2003. INDUSTRIAL AND COMMERCIAL: European Operations Show Growth ---------------------------------------------------------- The Industrial and Commercial Bank of China is expanding its overseas services and gaining a larger market share in Europe, the People Daily reports. According to a report released by the bank, ICBC's Frankfurt branch -- established in 1999 as its first branch in Europe -- amassed Euro remittance worth US$1.4 billion in the first seven months of this year, up 30% on last year. By the end of July, the branch had US$700 million in assets. Moreover, its London branch -- a trade finance provider with a market share of 10% -- raised US$70 million last year, compared with US$40 million in 2003, the year it opened, the paper relates. The London branch also experienced a 30 percent growth in assets and a 50 percent increase in profits in the first half of the year. ICBC has also continued to upgrade its international services with the help of foreign strategic investment. The People Daily recounts that on January 2006, Goldman Sachs, American Express and Allianz Group paid a combined US$3.8 billion for a nine percent stake in ICBC - the largest ever amount of foreign investment in China's banking industry. Also last year, the bank handled foreign exchange transactions worth US$140 billion and its international settlement business grew steadily. ICBC currently had 106 branches around the world and established ties with 1,165 banks in 114 countries and regions by the end of last year, People Daily notes. The bank's total foreign currency assets had exceeded US$60 billion by the end of 2005, with both its foreign currency deposits balance and loan balance standing at US$29 billion. The bank said its business profits hit CNY90 billion in 2005. * * * The Industrial and Commercial Bank of China -- http://www.icbc.com.cn-- is the largest state-owned commercial bank, and is authorized by the State Council and the People's Bank of China. ICBC conducts operations across China as well as in major international financial centers. On September 18, the Troubled Company Reporter - Asia Pacific reported that Fitch Ratings affirmed ICBC' Individual D/E rating. Moody's Investors Service on August 9, 2006, placed on review for upgrade Industrial and Commercial Bank of China's E+ Bank Financial Strength Rating. This follows Moody's earlier rating action in November 2005 when the outlook for ICBC's BFSR was revised to positive from stable. GAIN CHANCE: Wind-Up Petition Hearing Slated for Oct. 18 -------------------------------------------------------- A wind-up petition against Gain Chance Development Ltd will be heard before the High Court of Hong Kong on October 18, 2006, at 9:30 a.m. Bank of China (Hong Kong) Ltd filed the petition with the Court on August 17, 2006. The Solicitors for the Petitioner can be reached at: Gallant Y. T. Ho & Co. 5/F, Jardine House No. 1 Connaught Place Central, Hong Kong GALAXY ADVANCE: Accepting Proofs of Debt Until September 22 ----------------------------------------------------------- An intended dividend will be distributed for creditors of Galaxy Advance Ltd. In this regard, Liquidators Chan Wai Dune, Charles and Fung Pui Cheung will be accepting proofs of debt from the creditors until September 22, 2006. The Joint and Several Liquidators can be reached at: Chan Wai Dune, Charles Fung Pui Cheung 37/F, Hennessy Centre 500 Hennessy Road Causeway Bay Hong Kong GENESIS ENGINEERING: Court to Hear Wind-Up Petition --------------------------------------------------- A wind-up petition filed against Genesis Engineering Company Ltd will be heard before the High Court of Hong Kong on October 11, 2006, at 9:30 a.m. Lau Sai Wah filed the petition on August 14, 2006. The Solicitor for the Petitioner can be reached at: Joe Poon For Director of Legal Aid 34/F, Hopewell Centre 183 Queen's Road East Wanchai, Hong Kong GLOBAL MARCH: Creditors Must Prove Claims by September 25 --------------------------------------------------------- Creditors of Global March Ltd are required to submit their proofs of claim to Joint and Several Liquidators John J. Toohey and Joanne Oswin by September 25, 2006. The Joint and Several Liquidators can be reached at: John J. Toohey Joanne Oswin 22/F, Prince's Building Central Hong Kong GOOD CHOICE: Court to Hear Wind-Up Bid on October 4 --------------------------------------------------- The High Court of Hong Kong will hear a wind-up petition against Good Choice Technology on October 4, 2006, at 9:30 a.m. New World Telecommunications Ltd filed the petition with the Court on August 2, 2006. The Solicitors for the Petitioner can be reached at: C. K. Mok & Co. 1st Floor, O.T.B. Building No. 259-265 Des Voeux Road, Central Hong Kong KAM WAI: Liquidator Ceases to Act for Company --------------------------------------------- E.T. O'Connell ceased to act as liquidator for Kam Wai Garments Ltd on November 26, 2004. Mr. O'Connell can be reached at: E.T. O'Connell 10th Floor, Queensway Government Offices 66 Queensway Hong Kong LEADKEEN INDUSTRIAL: Creditors Must Prove Debt by September 29 -------------------------------------------------------------- Leadkeen Industrial Ltd will declare dividend to its creditors on September 29, 2006, excluding those who cannot prove their claims on that day. On August 28, 2006, Roderick John Sutton and Desmond Chung Seng Chiong was appointed as Joint and Several Liquidators of Leadkeen Industrial Ltd. According to the Troubled Company Reporter - Asia Pacific, on June 21, 2005, a petition to wind-up Leadkeen Industrial Ltd was filed with the Court of First Instance of Hong Kong. The Joint and Several Liquidators can be reached at: Roderick John Sutton Desmond Chung Seng Chiong c/o Ferrier Hodgson Limited 14/F Hong Kong Club Building 3A Chater Road Central Hong Kong LOONG WAH: Court Favors Wind-Up ------------------------------- On August 28, 2006, the High Court of Hong Kong issued a wind-up order against Loong Wah Printing & Binding Company Ltd. According to the Troubled Company Reporter - Asia Pacific, on May 8, 2006, Agfa Hong Kong Ltd filed a petition with the court to wind up the company's operations. M.O. HOLDINGS: Court Issues Wind-Up Order ----------------------------------------- On August 30, 2006, the High Court of Hong Kong ordered M.O. Holdings Ltd to wind-up its operations. The Troubled Company Reporter - Asia Pacific previously reported that Guangdong International Trust & Investment Corp Hong Kong Ltd filed the petition with the Court on June 6, 2006. MOULIN GLOBAL: Must Receive Proofs of Debt by September 29 ---------------------------------------------------------- Moulin Global Eyecare Holdings Ltd requires creditors to submit their proofs of debt by September 29, 2006. Failure to comply with the requirement will exclude a creditor from sharing in any distribution the company will make. The Joint and Several Liquidators can be reached at: Roderick John Sutton Desmond Chung Seng Chiong c/o Ferrier Hodgson Limited 14/F Hong Kong Club Building 3A Chater Road Central Hong Kong About Moulin Global Based in Hong Kong, Moulin Global Eyecare Holdings -- http://www.moulin.com.hk/-- was once the world's third-largest maker of eyeglasses until it went into liquidation last year. The primary activity of the Company was manufacturing and designing ophthalmic goods, the Company was also engaged in distribution and retailing of optical frames and sunglasses. Chairman Ma Bo-kee founded Moulin on 1960 as a spectacle workshop with 12 workers. It listed on the stock exchange in 1993 and was ranked by Forbes Global in 1998 among the 300 best small firms in the world. By last year, it had more than 5,000 workers with business in the United States and Europe. Moulin's debt problems surfaced shortly after its auditor, Deloitte Touche Tohmatsu, resigned in April last year. Moulin went bankrupt in June 2005 owing almost HKD3.6 billion, HKD2.4 billion of this are owed from creditors in Hong Kong. MOULIN GLOBAL (Trading): To Declare Dividend on September 29 ------------------------------------------------------------ Creditors of Moulin Global Eyecare Trading Ltd are required to submit their proofs of claim on September 29, 2006, to the Joint Liquidators Roderick John Sutton and Desmond Chung Seng Chiong. Failure to prove their debts will exclude a creditor from sharing in any distribution the company will make. The Joint and Several Liquidators can be reached at: Roderick John Sutton Desmond Chung Seng Chiong c/o Ferrier Hodgson Limited 14/F Hong Kong Club Building 3A Chater Road Central Hong Kong * * * Based in Hong Kong, Moulin Global Eyecare Trading Ltd, a wholly owned subsidiary of Moulin Global Eyecare Holdings -- http://www.moulin.com.hk/-- was once the world's third-largest maker of eyeglasses until it went into liquidation in 2005. The primary activity of the Company was manufacturing and designing ophthalmic goods, the Company was also engaged in distribution and retailing of optical frames and sunglasses. Chairman Ma Bo-kee founded Moulin on 1960 as a spectacle workshop with 12 workers. It listed on the stock exchange in 1993 and was ranked by Forbes Global in 1998 among the 300 best small firms in the world. By 2005, it had more than 5,000 workers with business in the United States and Europe. Moulin's debt problems surfaced shortly after its auditor, Deloitte Touche Tohmatsu, resigned in April last year. Moulin went bankrupt in June 2005 owing almost HKD3.6 billion, of which HKD2.4 billion are owed from creditors in Hong Kong. RIGHT SELECTION: Liquidators Steps Aside ---------------------------------------- On August 22, 2006, Natalia Seng Sze Ka Mee and Cynthia Wong Tak Yee ceased to act as joint and several liquidators for Right Selection Ltd. According to the Troubled Company Reporter - Asia Pacific, on that day, members of the Company received the liquidators report regarding the Company's wind-up proceeding and disposal of property. The Joint and Several Liquidators can be reached at: Natalia Seng Sze Ka Mee Cynthia Wong Tak Yee Level 28, Three Pacific Place 1 Queen's Road East Hong Kong SELPRO LTD: Wind-Up Petition Hearing Set on September 27 -------------------------------------------------------- Glock (China) Limited on July 28, 2006, filed before the High Court of Hong Kong a petition to wind-up the operation of Selpro Ltd. The Court will hear the petition on September 27, 2006, at 9:30 a.m. The Solicitors for the Petitioner can be reached at: Holman, Fenwick & Willan 15th Floor, Tower One Lippo Centre 89 Queensway Hong Kong Tel: 2522 3006 Fax: 2877 8110 SUNNY TOYS: Court Orders Wind-Up of Operations ---------------------------------------------- On August 30, 2006, the High Court of Hong Kong issued a wind-up order against the operations of Sunny Toys Industrial Company Ltd. According to the Troubled Company Reporter - Asia Pacific, MGA Entertainment Inc filed the petition with the Court on June 14, 2006. TAK WOO: Court Appoints Liquidators ----------------------------------- The High Court of Hong Kong appointed Ho Kwan Yiu Junius and Ho Wai Fung as joint and several liquidators of Tak Woo Hong Kong Engineering Ltd on August 7, 2006. The Joint and Several Liquidators can be reached at: Ho Kwan Yiu Junius Ho Wai Fung 18/F Henley Building 5 Queen's Road Central Hong Kong TERRELL LTD: Meeting of Members and Creditors Set for Sept. 29 -------------------------------------------------------------- A meeting of members and creditors of Terrel Ltd will be held on September 29, 2006, at Rooms 502-505, 5/F., Sun Hung Kai Centre, 30 Harbour Road, Wanchai, Hong Kong, at 11:30 a.m. and 12:00 p.m. respectively. At the meeting, the company's directors will give a statement of the company's voluntary wind-up and appoint a liquidator to wind up the distribution of the company's assets. WINKO LTD: Members Resolve to Wind Up Operations ------------------------------------------------ At an extraordinary general meeting of Winko Ltd held on August 28, 2006 at 23rd Floor, No. 9 Des Voeux Road West, Hong Kong SAR, China, members passed a resolution to voluntarily wind up company's operations. Subsequently, Wu Chi Tso, John and Wong Man Ching were appointed joint and several liquidators. The Joint and Several Liquidators can be reached at: Wu Chi Tso, John Wong Man Ching Suites 2109-10, Asian House 1 Hennessy Road, Wanchai, Hong Kong SAR, China WINTEK TECHNOLOGY: Shareholders Opt to Shut Down Operations ----------------------------------------------------------- Shareholders of Wintek Technology H.K. Ltd passed a resolution to voluntarily wind-up the company's operations. Subsequently, Lai Kar Yan (Derek) and Darach E. Haughey was appointed as joint and several liquidators. The Joint and Several Liquidators can be reached at: Lai Kar Yan (Derek) Darach E. Haughey 35/F, One Pacific Place 88 Queensway Hong Kong ========= I N D I A ========= BANK OF INDIA: Net Income Jumps 22% for Quarter Ended June 30 ------------------------------------------------------------- Bank of India posted a net income of INR208.73 crore for the quarter ended June 30, 2006, a 21.54% increase from the net income of INR171.74 crore it posted in the quarter ended June 30, 2005, according to the bank's financials. The bank's total income for the June 2006 quarter was at INR2,331.70 crore, a 25.45% year-on-year improvement buoyed by increases in both the interest earned and other income accounts to INR2,021.05 crore and INR310.65 crore, respectively. Total expenditures was up 24.10% to INR1,864.09 crore for the quarter in review. The bank's financials include these financial data (in INR crore): Quarter ended June 30, 2006 June 30, 2005 ------------- ------------- Interest earned 2021.05 1564.54 Other income 310.65 294.36 Total income 2331.70 1858.90 Total expenditure 1864.09 1492.30 Operating profit 467.61 366.60 Net profit 208.73 171.74 As of June 30, 2006, the bank's capital adequacy ratio slightly decreased to 10.36%. Other indicators, however, improved: * Amount of gross non-performing assets: INR2,522.06 crore (from INR3,085.79 crore) * Amount of net non-performing assets: INR978.87 crore (from INR1,447.88 crore) * Percentage of gross NPAs: 3.61% (from 5.37%) * Percentage of net NPAs: 1.43% (from 2.59%) * Earnings per Share: INR4.28 (from INR3.52) * Return on Assets (annualised): 0.74% (from 0.72%) About Bank of India Bank of India -- http://www.bankofindia.com/-- 2,628 branches in India spread over all states/union territories, including 93 specialized branches. The bank provides a range of financial products and services, including numerous credit schemes, deposit schemes, cash management services, credit/debit cards, deposit vaults and corporate bonds. It also extends finance to small and medium enterprises and small-scale industries. It provides a variety of loans, such as mortgage loans, educational loans, auto finance loans, holiday loans, personal loans and home loans. The bank offers Internet banking services for both the retail and corporate clients. The bank also operates in the Cayman Islands, China, the Channel Islands, France, Hong Kong, Indonesia, Japan, Kenya, Singapore, the United Kingdom, the United States, and Vietnam. * * * The Troubled Company Reporter - Asia Pacific reported on September 11, 2006, that Standard & Poor's Ratings Services assigned its BB- rating to Bank of India's (BoI; BB+/Positive/B) proposed upper Tier II subordinated and hybrid Tier I notes under its US$1 billion MTN program. At the same time, Standard & Poor's raised its rating on the proposed subordinated notes, or lower Tier II notes, under the MTN program to BB from BB-. S&P had earlier given Bank of India both BB+ long-term local and foreign issuer credit ratings, and B ratings on its short-term foreign and local issuer credit. BANK OF INDIA: Completes Upsized Bank Capital Deal -------------------------------------------------- Bank of India completed a US$240 million, 15-year upper tier-II subordinated bond issue on September 14, 2006, FinanceAsia.com reports. According to Reuters, this was the second upper tier-II issue from an Indian borrower, after UTI Bank. The Philippine Daily Inquirer reports that spreads on the Bank of India issue widened to 197/196 basis points above 10-year US Treasuries from their launch price of 189.9 bps. The upper tier-II issue garnered over US$1 billion in orders, a source familiar with the deal said. Finance Asia relates that Barclays, Citigroup, Deutsche Bank and HSBC were the joint bookrunners for the deal. Finance Asia adds that over 100 accounts took part in the deal. Geographically, 41% went to Asian accounts, 39% to U.K. books, 19% to other European accounts, and 1% to offshore U.S. accounts. In terms of investor type, banks bought 51%, asset and fund managers took 34%, insurers 8%, retails 2% and others 5%. According to press reports, Bank of India will use the proceeds to strengthen its capital adequacy ratio, which was last quoted at 10.36% as at June 30, 2006. UTI Bank's Issue Last month, UTI Bank raised US$150 million through a 15-year, upper tier-II subordinated bond and ICICI Bank, India's second- largest lender, sold US$340 million in hybrid tier-I securities. UTI's move, Finance Asia explains, comes after India's central bank relaxed guidelines on the issuance of foreign currency debt and hybrid instruments. The Baa3/BB- rated UTI Bank upper tier-2 deal is also a 15-year non-call 10 offering and is trading at 170bp over Libor. Others Interested Finance Asia further reports that other offers attracted strong demand as investors were betting on India's robust economic growth. India's economy is expected to expand 7.5% to 8% in fiscal year 2007. State Bank of India, the country's largest lender, and Canara Bank Ltd. also plan to raise U.S. dollar subordinated bonds. State Bank of India is looking to issue US$200 million through upper tier-II bonds, while Canara Bank plans to raise US$100 million through hybrid tier-I bonds and US$200 million in upper tier-II bonds. About Bank of India Bank of India -- http://www.bankofindia.com/-- 2,628 branches in India spread over all states/union territories, including 93 specialized branches. The bank provides a range of financial products and services, including numerous credit schemes, deposit schemes, cash management services, credit/debit cards, deposit vaults and corporate bonds. It also extends finance to small and medium enterprises and small-scale industries. It provides a variety of loans, such as mortgage loans, educational loans, auto finance loans, holiday loans, personal loans and home loans. The bank offers Internet banking services for both the retail and corporate clients. The bank also operates in the Cayman Islands, China, the Channel Islands, France, Hong Kong, Indonesia, Japan, Kenya, Singapore, the United Kingdom, the United States, and Vietnam. * * * The Troubled Company Reporter - Asia Pacific reported on September 11, 2006, that Standard & Poor's Ratings Services assigned its BB- rating to Bank of India's (BoI; BB+/Positive/B) upper Tier II subordinated and hybrid Tier I notes under its US$1 billion MTN program. At the same time, Standard & Poor's raised its rating on the subordinated notes, or lower Tier II notes, under the MTN program to BB from BB-. S&P had earlier given Bank of India both BB+ long-term local and foreign issuer credit ratings, and B ratings on its short-term foreign and local issuer credit. BANK OF INDIA: To Open More Overseas Branches --------------------------------------------- The Bank of India will shortly embark on a massive expansion program abroad by opening branches in Tanzania, South Africa, Belgium, China, Indonesia and Qatar, The Hindu reports. The bank currently has 24 branches outside India and its international business accounts for around 20.10% of the bank's total business. About Bank of India Bank of India -- http://www.bankofindia.com/-- 2,628 branches in India spread over all states/union territories, including 93 specialized branches. The bank provides a range of financial products and services, including numerous credit schemes, deposit schemes, cash management services, credit/debit cards, deposit vaults and corporate bonds. It also extends finance to small and medium enterprises and small-scale industries. It provides a variety of loans, such as mortgage loans, educational loans, auto finance loans, holiday loans, personal loans and home loans. The bank offers Internet banking services for both the retail and corporate clients. The bank also operates in the Cayman Islands, China, the Channel Islands, France, Hong Kong, Indonesia, Japan, Kenya, Singapore, the United Kingdom, the United States, and Vietnam. * * * The Troubled Company Reporter - Asia Pacific reported on September 11, 2006, that Standard & Poor's Ratings Services assigned its BB- rating to Bank of India's (BoI; BB+/Positive/B) upper Tier II subordinated and hybrid Tier I notes under its US$1 billion MTN program. At the same time, Standard & Poor's raised its rating on the subordinated notes, or lower Tier II notes, under the MTN program to BB from BB-. S&P had earlier given Bank of India both BB+ long-term local and foreign issuer credit ratings, and B ratings on its short-term foreign and local issuer credit. BHARAT PETROLEUM: Appoints Data Software as Share Tranfer Agent --------------------------------------------------------------- Bharat Petroleum Corporation Ltd has informed the Bombay Stock Exchange in a regulatory filing that Data Software Research Co Pvt Ltd, Chennai, are appointed as Share Transfer Agents for the company, effective on September 1, 2006. Accordingly, all the work of share registry related to the company's equity shares held in physical and electronic form will be maintained at Data Software. About Bharat Petroleum Headquartered in Maharashtra, India, Bharat Petroleum Corporation Limited -- http://www.bharatpetroleum.com/-- is engaged in refining and marketing petroleum, liquefied petroleum gas and petrochemical products including middle distillates, light distillate, lubricants, benzene and toluene. During the year 2002, the Group introduced Petro Card and SmartFleet Card and had around 700,000 customers enrolled in 28 cities. There are 4,711 retail outlets and 1,729 LPG distributors that operate in the country. The plants of the Group are located in Mahul and Mallet Road in Mumbai and in Budge. Bharat Petroleum is currently working to reverse its losses resulting from the Government's mandate to sell kerosene, liquefied petroleum gas, petrol and diesel way below market rates. On September 23, 2005, the company delisted its shares from the Madras Stock Exchange Ltd, Calcutta Stock Exchange Association Ltd and Delhi Stock Exchange Association Ltd. In November 2005, Bharat Petroleum's November 2004 profits dissipated and the company registered a INR203-crore (US$45.7 million) net loss. By the end of the third quarter, ending December 31, 2005, the company posted a US$231-million net loss. In January 2006, Bharat Petroleum entered into a merger with Koichi Refineries Ltd, which shareholders for both companies accepted. Even with its expansion moves, Bharat Petroleum has decided to put aside a US$1.4-million expansion project due to losses brought about by oil subsidies, as the company -- and the entire industry -- suffered huge losses and has difficulty implementing expansion activities due to the Government's refusal to allow oil companies to raise fuel prices despite global crude oil price crossing US$70 a barrel. On February 20, 2006, the Petroleum Ministry proposed an increase of INR3 per liter each in petrol and diesel prices and INR20 per cylinder increase in liquefied petroleum gas price to save the oil companies from going bankrupt. BHARAT PETROLEUM: To Source Ethanol from Brazil ----------------------------------------------- Bharat Petroleum Corporation Limited bosses are visiting Brazil, working out plans to buy or lease sugarcane fields from the world's largest ethanol producer, NDTV Profit reports. Under the plan, Bharat Petroleum will lease up to 1,00,000 hectares of sugarcane fields from Brazil, with an initial budget of INR300 crore. The NDTV report explains that Brazil is currently expanding sugarcane plantation, with an aim to double exports to 2.1 billion gallons by 2010. Brazilian ethanol costs 40% to 50% lower than Indian-produced ethanol. Furthermore, Indian ethanol is susceptible to inadequate availability and fluctuating prices. About Bharat Petroleum Headquartered in Maharashtra, India, Bharat Petroleum Corporation Limited -- http://www.bharatpetroleum.com/-- is engaged in refining and marketing petroleum, liquefied petroleum gas and petrochemical products including middle distillates, light distillate, lubricants, benzene and toluene. During the year 2002, the Group introduced Petro Card and SmartFleet Card and had around 700,000 customers enrolled in 28 cities. There are 4,711 retail outlets and 1,729 LPG distributors that operate in the country. The plants of the Group are located in Mahul and Mallet Road in Mumbai and in Budge. Bharat Petroleum is currently working to reverse its losses resulting from the Government's mandate to sell kerosene, liquefied petroleum gas, petrol and diesel way below market rates. On September 23, 2005, the company delisted its shares from the Madras Stock Exchange Ltd, Calcutta Stock Exchange Association Ltd and Delhi Stock Exchange Association Ltd. In November 2005, Bharat Petroleum's November 2004 profits dissipated and the company registered a INR203-crore (US$45.7 million) net loss. By the end of the third quarter ending December 31, 2005, the company posted a US$231-million net loss. In January 2006, Bharat Petroleum entered into a merger with Koichi Refineries Ltd, which shareholders for both companies accepted. Even with its expansion moves, Bharat Petroleum has decided to put aside a US$1.4-million expansion project due to losses brought about by oil subsidies, as the company -- and the entire industry -- suffered huge losses and has difficulty implementing expansion activities due to the Government's refusal to allow oil companies to raise fuel prices despite global crude oil price crossing US$70 a barrel. On February 20, 2006, the Petroleum Ministry proposed an increase of INR3 per liter each in petrol and diesel prices and INR20 per cylinder increase in liquefied petroleum gas price to save the oil companies from going bankrupt. BHARTI AIRTEL: To Observe Silent Period From October 1 ------------------------------------------------------ Bharti Airtel Ltd. would observe a "Silent Period" from the close of business on September 30, 2006, until the declaration of results for the second quarter and half-year periods ended September 30, 2006, as a commitment towards the highest level of corporate governance, a company press release stated. Details about the quarterly results announcement and the earnings call will be made available on the firm's Web site. Bharti clarifies that the practice of silent period does not refrain the company and its representatives from any press conference and public dissemination of information. The observation of silent period is only a practice and hence does not imply any legal obligation for the company under any circumstances. About Bharti Airtel Bharti Airtel Limited -- http://www.bhartiairtel.in/-- is a telecom services provider. The company has three business units: Mobile Services, Broadband & Telephone Services and Enterprise Services. The Mobile Services business unit offers mobile services in all 23 telecom circles of India. The B&TS business unit provides broadband and telephone services in 90 cities across India. The Enterprise Services business unit has two sub-units: Carriers (long-distance services) and Corporates. Through Enterprise Services-Carriers, Bharti Airtel provides national and international long-distance services. The Enterprise Services-Corporates business unit provides integrated voice and data communications solutions to corporate customers and small and medium-size enterprises. * * * The Troubled Company Reporter - Asia Pacific reports on June 28, 2006 that Fitch Ratings has affirmed Bharti Airtel Limited's long-term foreign currency issuer default rating at BB+. The Outlook on the rating remains stable. BHARTI AIRTEL: Inks Network Expansion Contract With Ericsson ------------------------------------------------------------ Bharti Airtel Ltd, on August 24, 2006, has signed an estimated US$1-billion network expansion contract with Ericsson, the company announced in a regulatory filing with the Bombay Stock Exchange. The contract will enable Bharti Airtel to rapidly expand its mobile services footprint further and reach out to all towns and cities in 15 telecom circles in India. The three-year service contract with Ericsson is towards the design, planning, supply and installation commissioning of Airtel networks in these circles. Ericsson will also upgrade the network with mobile softswitch (Media Gateway and MSC Servers), the solution that paves the way to an all-IP network. The Company will be able to reduce the operational costs and introduce new services in a cost-efficient way. The scope of the agreement extends to 15 Airtel circles of Delhi, Haryana, Punjab, Himachal Pradesh, UP (West), Andhra Pradesh, Tamil Nadu, Chennai, Karnataka, Kerala, Rajasthan, UP (East), Jammu & Kashmir, Assam and North East. Bharti President Manoj Kohli said, "At Bharti, it has been our endeavor to find innovative business models to deliver better customer experience. Our partnership with Ericsson is testament to this belief as it allows us to focus on delivering better customer experience even as we leverage the world-class expertise of our partners to roll out our networks across all census towns by March 2007. In addition, we are also sourcing next generation products that will allow us to deliver innovative products & services to our customers." This partnership will enable Airtel to channel its resources and expertise to its core areas of product innovation, value added services, marketing, branding & pricing, while simultaneously providing world class mobile services by leveraging Ericsson's world class expertise in network management. About Bharti Airtel Bharti Airtel Limited -- http://www.bhartiairtel.in-- is a telecom services provider. The company has three business units: Mobile Services, Broadband & Telephone Services (B&TS) and Enterprise Services. The Mobile Services business unit offers mobile services in all 23 telecom circles of India. The B&TS business unit provides broadband and telephone services in 90 cities across India. The Enterprise Services business unit has two sub-units: Carriers (long-distance services) and Corporates. Through Enterprise Services-Carriers, Bharti Airtel provides national and international long-distance services. The Enterprise Services-Corporates business unit provides integrated voice and data communications solutions to corporate customers and small and medium-size enterprises. * * * The Troubled Company Reporter - Asia Pacific reports on June 28, 2006 that Fitch Ratings has affirmed Bharti Airtel Limited's long-term foreign currency issuer default rating at BB+. The Outlook on the rating remains stable. BROADCOM CORP: Gets Securities Suit Filing ------------------------------------------ Stull, Stull & Brody discloses that a class action has been commenced in the United States District Court for the Central District of California on behalf of shareholders who purchased, exchanged or otherwise acquired the common stock and other securities of Broadcom Corp. between July 21, 2005, and July 13, 2006. The Complaint alleges that Broadcom and certain of its officers and directors are charged with issuing a series of materially false and misleading statements in violation of Section 19(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder. On July 14, 2006, Broadcom announced that it would record more than US$750 million in added expenses and restate its past earnings related to the illegal backdating of stock options. Prior to any news of options backdating reaching in the market, shares of Broadcom traded at slightly above US$40.00 per share and, thereafter, shares traded down to approximately US$27.50 per share -- a rapid decline of over 31%. Options pricing backdating occurs when options grants to senior officers or directors of public companies are made at prices lower than the trading price of the stock on the date such options are granted. The undisclosed backdating of options violates generally accepted accounting principles. Interested parties may request the Court for appointment as lead plaintiff no later than Oct. 12, 2006. About Broadcom Corporation Broadcom Corporation -- http://www.broadcom.com/-- is a manufacturer of semiconductors for wired and wireless communications. The company provides manufacturers of computing and networking equipment, digital entertainment and broadband access products, and mobile devices with complete system-on-a- chip and software solutions. Its product portfolio includes solutions for digital cable, satellite and Internet Protocol (IP) set-top boxes and media servers; high definition television (HDTV); high definition DVD players and personal video recording (PVR) devices; cable and digital subscriber line (DSL) modems and residential gateways; high-speed transmission and switching for local, metropolitan, wide area and storage networking; System I/ O server solutions; broadband network and security processors; wireless and personal area networking; cellular and terrestrial wireless communications, and voice over Internet protocol (VoIP) gateway and telephony systems. With corporate headquarters in Irvine, California, Broadcom has over 40 offices in 15 countries worldwide, including India, China, Singapore and Taiwan. BROADCOM CORP: Brower Piven Announces Calif. Stock Suit Filing -------------------------------------------------------------- The law firm of Brower Piven announced that a securities class action was commenced on behalf of shareholders who purchased or otherwise acquired the common stock of Broadcom Corp. between July 21, 2005, and July 13, 2006. The case is pending with the United States District Court for the Central District of California against defendant Broadcom and one or more of its officers and directors. The action charges that defendants violated federal securities laws by issuing a series of materially false and misleading statements to the market throughout the Class Period, which statements had the effect of artificially inflating the market price of the company's securities. No class has yet been certified in the action. Interested parties may move the court no later than Oct. 12, 2006, to serve as a lead plaintiff for the proposed class. For more details, contact Brower Piven at The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202, Phone: 410/986-0036, e-mail: hoffman@browerpiven.com. About Broadcom Corporation Broadcom Corporation -- http://www.broadcom.com/-- is a manufacturer of semiconductors for wired and wireless communications. The company provides manufacturers of computing and networking equipment, digital entertainment and broadband access products, and mobile devices with complete system-on-a- chip and software solutions. Its product portfolio includes solutions for digital cable, satellite and Internet Protocol (IP) set-top boxes and media servers; high definition television (HDTV); high definition DVD players and personal video recording (PVR) devices; cable and digital subscriber line (DSL) modems and residential gateways; high-speed transmission and switching for local, metropolitan, wide area and storage networking; System I/ O server solutions; broadband network and security processors; wireless and personal area networking; cellular and terrestrial wireless communications, and voice over Internet protocol (VoIP) gateway and telephony systems. With corporate headquarters in Irvine, California, Broadcom has over 40 offices in 15 countries worldwide, including India, China, Singapore and Taiwan. BROADCOM CORP: Kahn Gauthier Files Calif. Securities Fraud Suit --------------------------------------------------------------- Kahn Gauthier Swick, LLC, filed a class action with the United States District Court for the Central District of California on behalf of shareholders who purchased, exchanged or otherwise acquired the common stock and other securities of Broadcom Corp. between July 21, 2005, and July 13, 2006. Broadcom and certain of its officers and directors are charged with issuing a series of materially false and misleading statements in violation of Section 10(b) and 20(a) of the U.S. Exchange Act and Rule 10b-5 promulgated thereunder. On July 14, 2006, Broadcom announced that it would record more than US$750 million in added expenses and restate its past earnings related to the illegal backdating of stock options. Prior to any news of options backdating reaching in the market, shares of Broadcom traded at slightly above US$40.00 per share and, thereafter, shares traded down to approximately US$27.50 per share -- a rapid decline of over 31%. Options pricing backdating occurs when options grants to senior officers or directors of public companies are made at prices lower than the trading price of the stock on the date such options are granted. The undisclosed backdating of options violates generally accepted accounting principles. About Broadcom Corporation Broadcom Corporation -- http://www.broadcom.com/-- is a manufacturer of semiconductors for wired and wireless communications. The company provides manufacturers of computing and networking equipment, digital entertainment and broadband access products, and mobile devices with complete system-on-a- chip and software solutions. Its product portfolio includes solutions for digital cable, satellite and Internet Protocol (IP) set-top boxes and media servers; high definition television (HDTV); high definition DVD players and personal video recording (PVR) devices; cable and digital subscriber line (DSL) modems and residential gateways; high-speed transmission and switching for local, metropolitan, wide area and storage networking; System I/ O server solutions; broadband network and security processors; wireless and personal area networking; cellular and terrestrial wireless communications, and voice over Internet protocol (VoIP) gateway and telephony systems. With corporate headquarters in Irvine, California, Broadcom has over 40 offices in 15 countries worldwide, including India, China, Singapore and Taiwan. CATHOLIC SYRIAN BANK: To Re-Engineer Business Processes ------------------------------------------------------- Thrissur-based The Catholic Syrian Bank Limited is in the midst of planning a total re-engineering of several of its business processes to reduce the time its customers spend in transacting business through the bank, Domain-B reports. Catholic Syrian Chariman N R Achan said, "The business process reengineering exercise will increase our manpower utilization and attain better operational capabilities." The move is seen to: * reduce the time spent by a customer at the branch; * cut the loan processing time from around 71 days to around 20 to 30 days. The bank will also centralize its retail loan processing and other routine activity at four to five back office centers. The BPR activity will be done in conjunction with the bank's end-to-end core banking solution. Core Banking Solutions Domain-B reports that the bank has tapped Laser Soft to implement its CBS. B Suresh Kamath, managing director, Laser Soft, said that the core banking solution would be designed to implement back office processing centers as required by the bank and incorporate all BPR requirements. At a time when many other banks spend around INR1 crore per branch for implementing core-banking solution, the 345-retail outlet (320 branches, 25 extension counters) bank has spent for its solution an average of INR11 lakh per branch. The bank will implement the core banking solution across all the branches in phases. In the first phase 80 branches will be brought under the core banking solution and the remaining branches would follow in the second phase. The solution is scalable to accommodate more branches as and when CSB opens new ones. According to Achan, the bank would open 50 more branches by the end of this fiscal. About Catholic Syrian Bank Headquartered in Kerala, India, Catholic Syrian Bank Ltd -- http://www.csb.co.in/-- offers regular banking services and has a strong bancassurance business. At present, the bank has a network of 334 branches/extension counters, which includes five NRI branches, five SSI branches, five industrial Finance branches and four Service branches. The bank also plans to open more number of branches in a phased manner. Fitch Ratings gave Catholic Syrian Bank a support rating of 5 effective on December 22, 2005. CATHOLIC SYRIAN BANK: Sees INR10,000 in Total Business By 2008 -------------------------------------------------------------- Catholic Syrian Bank Ltd is targeting to have a INR10,000-crore business by 2008, Domain-B reports. The report, citing Catholic Syrian Chairman NR Achan, says that the bank is targeting a INR8,500 crore total business for the fiscal year of 2007. The bank reported total business of INR7,328.92 crore as of September 11, 2006, with deposits amounting to INR4,473.97 crore and advances at INR2,854.95 crore. The bank had a net interest income of INR146.94 crore and a net profit of INR6.14 crore at the last fiscal. The bank's investment portfolio stood at INR1,431.59 crore and yield on investment was 7.41%. The gross non-performing assets stood at INR159.92 crore and the net NPA was INR74.79 crore. Speaking about the bank's cost of funds, Achan says, "Our cost of funds now is 4.78%. Nearly 26% of our deposits are low cost. We expect further increase in low cost deposits which in turn would reduce our funds cost." Last year the banks cost of funds was 5.16%, With a capital adequacy ratio of 11.23 per cent the bank has drawn up plans to raise INR100 crore through a combination of rights issue and a public and private placement. However, the first will be the private placement of INR60-lakh shares with foreign equity investors. "We have given our proposals to Reserve Bank of India and await their sanction," adds Achan. About Catholic Syrian Bank Headquartered in Kerala, India, Catholic Syrian Bank Ltd -- http://www.csb.co.in/-- offers regular banking services and has a strong bancassurance business. At present, the bank has a network of 334 branches/extension counters, which includes five NRI branches, five SSI branches, five industrial Finance branches and four Service branches. The bank also plans to open more number of branches in a phased manner. Fitch Ratings gave Catholic Syrian Bank a support rating of 5 effective on December 22, 2005. CATHOLIC SYRIAN BANK: Introduces Senior Citizens Savings Scheme --------------------------------------------------------------- The Catholic Syrian Bank Ltd has introduced a savings scheme for senior citizens called the CSB Senior Citizen Support, reports MoneyControl.Com. According to a press release issued by the bank, senior citizens with a minimum age of 60 years can open a domestic term deposit account with a minimum amount of INR5,000. The bank will offer 9.25% interest on such deposits, 1.25% more than the interest on normal domestic term deposits for a 60- month period but less than 84 months. For the period ranging between 84 and 120 months, the rate of interest will be 9.5%, 1.5 percent more than on normal domestic term deposits. For deposits below 60 months, the bank will offer one percent more for senior citizens than that is applicable to domestic term deposits of different maturity slabs under the existing Acharya Deposits Scheme. About Catholic Syrian Bank Headquartered in Kerala, India, Catholic Syrian Bank Ltd -- http://www.csb.co.in/-- offers regular banking services and has a strong bancassurance business. At present, the bank has a network of 334 branches/extension counters, which includes five NRI branches, five SSI branches, five industrial Finance branches and four Service branches. The bank also plans to open more number of branches in a phased manner. Fitch Ratings gave Catholic Syrian Bank a support rating of 5 effective on December 22, 2005. CENTURION BANK: Sets EGM on September 30, 2006 ---------------------------------------------- Centurion Bank of Punjab Ltd has informed the Bombay Stock Exchange in a regulatory filing that an Extra Ordinary General Meeting of the members of the bank will be held on September 30, 2006, to: 1. approve the draft Scheme of Amalgamation of Lord Krishna Bank Ltd with the Bank in terms of the share swap ratio, as determined in the Joint Valuation Report dated September 04, 2006 of M/s N M Raiji & Co., and M/s Deloitte, Haskins & Sells of 7 equity shares of Re 1/- each of the Bank for every 5 equity shares of Rs 10/- each of Lord Krishna Bank Ltd, subject to necessary provisions and approvals. 2. amendment the Articles of Association of the bank by substituting the existing Article 95 of the Articles of Association of the Bank with new Article 95. 3. create, issue/offer and allot, at its sole discretion, to Bank Muscat (S.A.O.G.) up to 9,50,00,000 equity shares constituting 5.76% of the total post-issue paid up share capital of the bank of INR1/- each at a price of not les than INR24.54 per share (face value of INR1/- and a premium of not less than 23.54 per share) for cash on a preferential basis, which price is calculated in accordance with the guidelines for Preferential Issue by SEBI under Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000, subject to necessary provisions & approvals. 4. create, issue/offer and allot, at its sole discretion, to India Advantage Fund V through its Trustee, The Western India Trustee and Executor Company Ltd and acting through its Investment Manager, ICICI Ventures Funds Management Company Ltd up to 7,50,00,000 equity shares constituting 4.55% of the total post-issue paid up share capital of the Bank of INR1/- each at a price of not less than INR24.54 per share (face value of INR1/- and a premium of not less than 23.54 per share) for cash on a preferential basis, which price is calculated in accordance with the guidelines for Preferential Issues issued by SEBI under Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000, subject to necessary provisions & approvals. About Centurion Bank of Punjab Headquartered in Goa, India, Centurion Bank of Punjab Limited -- http://www.centurionbop.co.in/-- is a private-sector bank. The bank provides a range of transaction banking products under cash management services to various customer segments, such as corporates, small and medium enterprises, utility providers and domestic correspondent banks. The bank has entered into an enterprise partnership with Indecomm Global Services to form Centillion Solutions and Services. Centillion will focus on operations and services for banking and related financial services. The Retail Asset servicing operations of the Bank are being transitioned to Centillion. The bank has entered into an arrangement with IL&FS Investsmart Limited for offering equity broking services to its customers. The wholesale banking business is divided into Corporate, SME and Financial Institutions Group. NRI business has been a focus of the bank. In Trade Finance business, the bank provides services, such as export trade, import trade, remittance, domestic trade and structured trade. Fitch Ratings, on November 2, 2005, gave Centurion Bank of Punjab a support rating of 5. CENTURION BANK: Posts 160% Leap in Profit for June Quarter ---------------------------------------------------------- Centurion Bank of Punjab Limited posted a net profit of INR287 million for the quarter ended June 30, 2006, the bank said in a press release. Net profit for the quarter grew by 160% as compared to the corresponding quarter of the previous year. Operating profit for the quarter at INR596 million demonstrates a growth of 220% over the corresponding quarter of the previous year. The total advances of the bank have grown by 202% against its June 30, 2005 advances position, and 14% over the quarter ended Mar 31, 2006. The bank's deposits grew by 191% over the last year and 10% over the quarter ended March 31, 2006. The bank's growth rate for both its assets and deposits was much higher than the industry. The total bank credit in the system increased by 1% in the period between March 31, 2006, and June 23, 2006, while the deposits for all scheduled commercial banks in the country increased by 2% over the same period. During the June quarter, the bank opened eight new branches taking the total number of branches to 249 across 123 towns and cities. Quarter ended YOY June 30, 2006 June 30, 2005 Change ------------- ------------- ------ Net Profit 287 111 160% Operating Profit 596 186 220% Total Advances 74,524 24,660 202% Net Retail Advances 51,874 19,560 165% Corporate/SME Advances 23,162 4,920 371% Deposits 103,721 35,641 191% Financial Ratios: As Of June 30, 2006 June 30, 2005 ------------- ------------- Net Interest Margin 4.7% 5.3% Low Cost Deposits (CASA) 35.1% 26.3% Net Non-Performing Assets 1.16% 2.41% Capital Adequacy Ratio 12.6% 20.7% Operating Results For the quarter ended June 30, 2006, net interest income increased by 122% to INR1.23 billion from INR554 million in the corresponding quarter last year ended June 30, 2005. Net interest margin for the quarter ended June 30, 2006 remains healthy at 4.7% which is among the highest in the industry. Other income increased by 361% to INR950 million in Q1-FY2007 from INR206 million in Q1-FY2006. Non-interest income now forms 44% of the bank's total operating income. Operating expenses for Q1-FY2007 increased to INR1.58 billion from INR573 million during Q1-FY2006. The operating profit grew by 6% over that in the previous quarter (Q4 FY06), and the net profit increased by 10% this quarter over the same period. Advances Portfolio As of June 30, 2006, retail advances constituted 70% of the total advances of the bank. Net retail advances grew by 165% to INR51,874 million from INR19,560 million as of June 30, 2005, and by 11% over the previous quarter. The above numbers are post-securitization. The bank did not securitize any assets in Q1 FY07. The bank has increased its focus towards the business generated by "Small and Medium Enterprises' and 'Emerging Large Corporates," leading to a growth of 21% this quarter (371% as compared to the corresponding quarter in the previous year) in the Bank's corporate and SME advances. Making this segment an important second engine of growth for the bank. Asset Quality As of June 30, 2006 the bank's Net Non-Performing Loans were 1.16% of Net Advances, against 2.4% as of June 30, 2005. Provision coverage was healthy at 74.1% of gross non-performing loans. Deposits The deposits of the Bank grew 191% to INR103,721 million as on June 30, 2006, from those in the corresponding quarter last year. The demand deposit component of the Bank's total deposits remained flat at INR36,401 million at the end of this quarter while those in the banking system reduced by 11%. The cost of deposits stood at 5.1% for the quarter ended June 30, 2006 and the Credit - Deposit ratio for the bank stood at 72% as on June 30, 2006. Capital Adequacy and Net Worth As of June 30, 2006, the bank's capital adequacy stood at 12.62%, the Tier I capital of the bank was 11.42%. The net worth of the bank was INR10,794 million and the book value per Share was INR7.3. During the quarter, the bank completed a preferential offering of 69,920,000 shares to Johann Ltd. a fully owned subsidiary of ChrysCapital III LLC. With this placement the bank has completed the proposed raising of equity capital through a preferential issue of shares that was approved by the shareholders of the Bank at its EGM held on December 24, 2005. About Centurion Bank of Punjab Headquartered in Goa, India, Centurion Bank of Punjab Limited -- http://www.centurionbop.co.in/-- is a private-sector bank. The bank provides a range of transaction banking products under cash management services to various customer segments, such as corporates, small and medium enterprises, utility providers and domestic correspondent banks. The bank has entered into an enterprise partnership with Indecomm Global Services to form Centillion Solutions and Services. Centillion will focus on operations and services for banking and related financial services. The Retail Asset servicing operations of the Bank are being transitioned to Centillion. The bank has entered into an arrangement with IL&FS Investsmart Limited for offering equity broking services to its customers. The wholesale banking business is divided into Corporate, SME and Financial Institutions Group. NRI business has been a focus of the bank. In Trade Finance business, the bank provides services, such as export trade, import trade, remittance, domestic trade and structured trade. Fitch Ratings, on November 2, 2005, gave Centurion Bank of Punjab a support rating of 5. CENTURION BANK: Merges with Lord Krishna Bank ---------------------------------------------- The board of directors of Centurion Bank of Punjab Limited and Lord Krishna Bank has approved the merger of Lord Krishna Bank with Centurion Bank of Punjab, MyIris.Com reports. The share swap ratio has been fixed at 5:7 that is for every 5 share of Lord Krishna Bank. Its shareholders will receive 7 shares of Centurion Bank of Punjab. Rana Talwar will be the chairman and Shailendra Bhandari, the chief managing director and chief executive officer of the merged entity. The two banks have announced that there will be no layoffs from either bank, and no closures will happen. The board of directors of Centurion Bank of Punjab also approved a proposal to raise additional capital through a preferential issue of fresh equity. Up to 75 million fully paid up equity shares at a price of INR24.54 per equity share for a consideration of up to 1,840.5 million to India Advantage Fund V. Also, 95 million fully paid up equity shares at a price not exceeding INR25 per equity share for a consideration of up to INR2.375 billion to Bank Muscat (S.A.O.G). The proposal is subject to all the requisite statutory, regulatory and shareholders approval including the approval of RBI. Ambit Corporate Finance and DSP Merrill Lynch are the advisors to Centurion Bank of Punjab and Lord Krishna Bank respectively. About Centurion Bank of Punjab Headquartered in Goa, India, Centurion Bank of Punjab Limited -- http://www.centurionbop.co.in/-- is a private-sector bank. The bank provides a range of transaction banking products under cash management services to various customer segments, such as corporates, small and medium enterprises, utility providers and domestic correspondent banks. The bank has entered into an enterprise partnership with Indecomm Global Services to form Centillion Solutions and Services. Centillion will focus on operations and services for banking and related financial services. The Retail Asset servicing operations of the Bank are being transitioned to Centillion. The bank has entered into an arrangement with IL&FS Investsmart Limited for offering equity broking services to its customers. The wholesale banking business is divided into Corporate, SME and Financial Institutions Group. NRI business has been a focus of the bank. In Trade Finance business, the bank provides services, such as export trade, import trade, remittance, domestic trade and structured trade. Fitch Ratings, on November 2, 2005, gave Centurion Bank of Punjab a support rating of 5. ICICI BANK: RBI Will Continue Branch Expansion Ban -------------------------------------------------- The Reserve Bank of India is likely to continue with its three- year ban on branch expansion against ICICI Bank Ltd, Rediff News reports. ICICI Bank is one of those tainted in the IPO allotment scam, along with HDFC Bank, Citibank, Standard Chartered Bank, Industrial Development Bank of India, ING Vysya Bank, Vijaya Bank, Indian Overseas Bank, and Bharat Overseas Bank. Since the RBI imposed the penalty, none of these banks has been allowed to open new branches. Rediff explains that some of the banks have made representations to the finance ministry, which is understood to have asked the RBI to review its decision a year from the date of imposition of the penalty. The regulator's decision has scuppered the expansion plans of these banks, some of which had taken over new premises, employed staff, and bought computers. The banks were penalised for failing to adhere to established norms for granting loans against shares, and for initial public offers. The penalties ranged from INR5 lakh to INR25 lakh. 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. The Troubled Company Reporter - Asia Pacific reported on August 17, 2006, that Fitch Ratings affirmed ICICI Bank's individual and support ratings at 'C' and '3', respectively. Another TCR-AP report on August 17, 2006 stated that Standard & Poor's Ratings Services on August 15, 2006, assigned its 'BB-' rating to the hybrid Tier-1 securities to be issued by ICICI Bank Ltd. (foreign currency BB+/Positive/B). INDIAN OVERSEAS: Acquires Bharat Overseas Bank ---------------------------------------------- Indian Overseas Bank has acquired Bharat Overseas Bank by buying out other shareholders, Zee News reports. Indian Overseas bought out four other banks, which altogether held 49.33%. The four are: * Bank of Rajasthan (16%), * ING Vysya Bank (14.66%), * South Indian Bank (10%), and * Karnataka Bank (8.67%). Indian Overseas, which was the single largest shareholder in BHOB, had proposed in February 2006 to acquire BHOB by increasing its stake from 30% to 100% and had offered an exit price of INR155 to the other shareholders. Two other shareholders in BHOB -- Federal Bank (10.67%) and Karur Vysya Bank (10%) -- are also understood to have sold their stakes to IOB. Earlier, Bank of Rajasthan, Ing Vysya Bank, SIB, and Karnataka Bank informed the bousres that they have sold 25,19,999 shares, 23,09,999 shares, 15,74,999 shares and 13,64,999 shares respectively to IOB at a price of INR155 per share totaling INR120.43 crore. However, the banks have retained one share each of BHOB as symbolic shareholding. BHOB is a small bank with a branch network of 100 including one in Bangkok and like IOB, its head office is in Chennai. Its profitability was put under pressure since 2004 forcing it to merge with a bigger bank. About Indian Overseas Bank Headquartered in Chennai India, Indian Overseas Bank -- http://www.iob.com/-- provides consumer and commercial banking services. The Company provides various banking services, including saving bank, current accounts, credit facilities and other services. IOB also provides non-residential Indian services, personal banking, foreign exchange reserves collections services, agri business consultancy, credit cards and e-banking services. It also provides automated teller machine services. As of March 31, 2006, IOB had five full- fledged branches overseas: two in Hong Kong, and one each in Singapore, Seoul and Sri Lanka. The Bank also had an extension counter in Sri Lanka and a remittance center in Singapore. Standard & Poor's Ratings Service gave Indian Overseas BB+ ratings to both long-term local and long-term foreign issuer credit, and B ratings for both its short-term foreign and short- term local issuer credit effective on January 16, 2006. INDIAN OVERSEAS: Posts INR2-Bil Profit for Quarter Ended June 30 ---------------------------------------------------------------- Indian Overseas Bank posted a net profit of INR2.22 billion for the quarter ended June 30, 2006, as compared to INR1.83 billion for the quarter ended June 30, 2005, the bank said in a regulatory filing. Total income has increased from INR12.07 billion for the quarter ended June 30, 2005, to INR14.92 billion for the quarter ended June 30, 2006. About Indian Overseas Bank Headquartered in Chennai India, Indian Overseas Bank -- http://www.iob.com/-- provides consumer and commercial banking services. The Company provides various banking services, including saving bank, current accounts, credit facilities and other services. IOB also provides non-residential Indian services, personal banking, foreign exchange reserves collections services, agri business consultancy, credit cards and e-banking services. It also provides automated teller machine services. As of March 31, 2006, IOB had five full- fledged branches overseas: two in Hong Kong, and one each in Singapore, Seoul and Sri Lanka. The Bank also had an extension counter in Sri Lanka and a remittance center in Singapore. Standard & Poor's Ratings Service gave Indian Overseas BB+ ratings to both long-term local and long-term foreign issuer credit, and B ratings for both its short-term foreign and short- term local issuer credit effective on January 16, 2006. INDIAN OVERSEAS: Watchdog Continues Branch Expansion Ban -------------------------------------------------------- The Reserve Bank of India is likely to continue with the three- year ban on branch expansion of Indian Overseas Bank, Rediff News reports. The bank is one of those tainted in the IPO allotment scam, along with ICICI Bank, HDFC Bank, Citibank, Standard Chartered Bank, Industrial Development Bank of India, ING Vysya Bank, Vijaya Bank, Indian Overseas Bank, and Bharat Overseas Bank. Since the RBI imposed the penalty, none of these banks has been allowed to open new branches. Rediff explains that some of the banks have made representations to the finance ministry, which is understood to have asked the RBI to review its decision a year from the date of imposition of the penalty. The regulator's decision has scuppered the expansion plans of these banks, some of which had taken over new premises, employed staff, and bought computers. The banks were penalised for failing to adhere to established norms for granting loans against shares, and for initial public offers. The penalties ranged from INR5 lakh to INR25 lakh. About Indian Overseas Bank Headquartered in Chennai India, Indian Overseas Bank -- http://www.iob.com/-- provides consumer and commercial banking services. The Company provides various banking services, including saving bank, current accounts, credit facilities and other services. IOB also provides non-residential Indian services, personal banking, foreign exchange reserves collections services, agri business consultancy, credit cards and e-banking services. It also provides automated teller machine services. As of March 31, 2006, IOB had five full- fledged branches overseas: two in Hong Kong, and one each in Singapore, Seoul and Sri Lanka. The Bank also had an extension counter in Sri Lanka and a remittance center in Singapore. Standard & Poor's Ratings Service gave Indian Overseas BB+ ratings to both long-term local and long-term foreign issuer credit, and B ratings for both its short-term foreign and short- term local issuer credit effective on January 16, 2006. INDUSTRIAL DEVELOPMENT: Will Hold Board Meeting for UWB ------------------------------------------------------- IDBI Ltd would hold a board meeting on September 21 to discuss the Reserve Bank of India's draft scheme for amalgamation of the United Western Bank with itself, the Hindustan Times report. The Troubled Company Reporter - Asia Pacific reported on September 15, 2006, that United Western Bank will be bought by state-run Industrial Development Bank of India Ltd, Reuters reports. The deal is worth INR1.5 billion. IDBI edged out 16 other contenders, including Allahabad Bank, Citigroup and Standard Chartered Plc. The RBI also prepared a draft scheme for amalgamation that would see IDBI pay INR28 cash for each United Western share, and that shareholders have until September 27, 2006 to consider the merger plan. The central bank took over management of Satara, Maharashtra-based United Western on Sept. 2 after two years of losses wiped out its capital The Hindustan Times now adds that the payment made to UWB investors will be considered as provision for bad debt. The books and balance sheets will have to be prepared as on September 2, 2006. IDBI will discharge all payments to creditors and depositors of UWB while the employees will continue in service and will be transferred to IDBI, the scheme says. About United Western Bank United Western Bank Limited -- http://www.uwbankindia.com/-- operates a network of over 200 banks in India. The group's banks provide a full range of services, including retail and merchant banking, investment management, treasury and NRI services, credit card services and assorted ATM facilities. * * * Credit Analysis and Research Limited has placed the CARE B+ (very high credit risk/susceptible to default) rating to the outstanding INR86.2 crore subordinated Tier II bond issues of United Western Bank under "credit watch" with developing implications. About Industrial Development Bank Headquartered in Mumbai, India, Industrial Development Bank of India -- http://www.idbi.com/-- is a commercial bank that offers a range of products, including secured loans, such as housing loans, mortgage loans and loan against securities, and unsecured loans, such as personal loans, educational loans and overdrafts to merchant establishments. It also distributes third-party products, such as insurance and mutual fund products to its retail customers. IDBI also offers project financing, film financing, equipment financing, asset credits, corporate loans, working capital loans, direct discounting, the financing of receivables, venture capital funds, bill rediscounting, rehabilitation financing, foreign exchange and merchant banking. * * * The Troubled Company Reporter - Asia Pacific reported on July 28, 2006, that Moody's Investors Service has assigned a financial strength rating of D- and long- and short-term foreign currency deposit ratings of Ba2/Not-Prime to Industrial Development Bank of India Limited. All ratings have stable outlooks. The bank's existing Baa2 foreign currency senior unsecured debt rating is unaffected by this action. Additionally, Standard & Poor's Ratings Services gave Industrial Development Bank of India' long term foreign issuer credit a BB+ rating on April 19, 2006. ITI LTD: CARE Downgrades Long Term Ratings to CARE D ---------------------------------------------------- Credit Analysis and Research Limited has revised the rating assigned to the 'M' series long term bond issue of ITI Limited to CARE D (SO) [Single D (Structuted Obligation) from CARE AAA (SO) with Credit Watch. The rating revision takes into account the delay in the interest payment of the above said bond issue. It may also be noted that the above default has occurred despite the bonds being backed by an unconditional and irrevocable guarantee from the Department of Telecommunications, Government of India vide letter No.U- 48019-1/2004-FAC dated May 26, 2004 and a Structured Payment Mechanism stipulated by CARE. The SPM stipulates invocation of guarantee 15 days before the due date in case of non-availability of sufficient funds in the designated account. However, the guarantee had not been invoked despite non-availability of funds in the account. The credit watch placed on the rating of CARE AAA(SO) assigned to the 'L' seriers bond issue of ITI consequent to the delay in the repayment of the Short Term Bond issue (2005) series would continue. The bond issue is backed by unconditional and irrevocable guarantee from the Government of India towards payment of interest and repayment of principal for the bonds issue. UCO BANK: Plans to Get Into Insurance Business ---------------------------------------------- UCO Bank is mulling over the idea of entering the insurance sector, Zee News reports. "We have plans to venture into the insurance sector. The plan is at its very nascent stage. However, a decision in this connection is expected in February next year," UCO Chairman and Managing Director V Sridar told Zee News. The bank plans to get into the life insurance sector, but no consultant has been named yet. According to Mr. Sridar, UCO Bank has no immediate plan to foray into the mutual fund sector. The bank is also planning a follow-on public issue in the first half of 2007. No further details are available. About UCO Bank UCO Bank Limited -- http://www.ucobank.in/-- is a commercial bank that also operates in two international financial centers, Hong Kong and Singapore. It has approximately 2000 service units spread all over India. It undertakes foreign exchange business in more than 50 centers in India. The company also has foreign exchange dealing operations at four centers. It caters to the segments of economy, such as agriculture, industry, trade & commerce, service sector and infrastructure sector. * * * The Troubled Company Reporter - Asia Pacific reported on June 20, 2006, that Fitch Ratings upgraded UCO Bank's Individual rating to 'D' from 'D/E'. At the same time, Fitch affirms the bank's support ratings at 4. All ratings are with a stable outlook. UCO BANK: Will Cut or Merge 40 Branches --------------------------------------- UCO Bank has put around 40 loss-making branches in metro and urban areas on notice for closure or merger with other branches if they fail to turnaround and report profit by March 2007, the Business Standard reports. UCO Bank has 228 branches in metros, 350 in urban areas and another 1,162 branches in semi-urban and rural areas. A senior bank official said that "apart from focusing on restructuring to improve overall operational efficiency" the bank is "putting equal emphasis on performance at the branch level - both in terms of turnover and profitability." The Standard report explains that the bank recently revised its organizational structure, replacing its geography-oriented four- tier administrative set up with a function-specific three-tier set up. Under the new structure, there will be more focus on each customer segment. UCO Bank has formed four focused divisions: flagship corporate with a turnover above INR50 crore; mid- corporate with a turnover of INR3-50 crore); retail business and small enterprises; and priority sector including agriculture. The Reserve Bank of India regulations restrict banks from closing down branches in rural areas since accessibility and financial inclusion are priorities for the banking regulator. About UCO Bank UCO Bank Limited -- http://www.ucobank.in/-- is a commercial bank that also operates in two international financial centers, Hong Kong and Singapore. It has approximately 2000 service units spread all over India. It undertakes foreign exchange business in more than 50 centers in India. The company also has foreign exchange dealing operations at four centers. It caters to the segments of economy, such as agriculture, industry, trade & commerce, service sector and infrastructure sector. * * * The Troubled Company Reporter - Asia Pacific reported on June 20, 2006, that Fitch Ratings upgraded UCO Bank's Individual rating to 'D' from 'D/E'. At the same time, Fitch affirms the bank's support ratings at 4. All ratings are with a stable outlook. UTI BANK: Post INR120.55 Crores for First Quarter of FY2007 ----------------------------------------------------------- UTI Bank posted a net profit of INR120.55 crores for the first quarter of fiscal year 2007, a growth of 30.14% over the net profit of INR92.63 crores during the first quarter of the previous year, the bank said in a press release. The bank has ended the first quarter of the current financial year with net non-performing assets at 0.73% of net customer assets and with a capital adequacy ratio of 10.28%. The bank intends to augment its Tier-I capital in this financial year. The quarterly EPS (diluted) at INR4.22 was 27.88% higher than the EPS of INR3.30 in the first quarter of the previous year. The core businesses of the bank have grown strongly in Q1, leading to an operating profit of INR307.18 crores, a growth of 50.96% over the operating profit of INR203.48 crores in the first quarter of the financial year 2005-06. For the first quarter of fiscal year 2007 UTI Bank's net interest income improved 44.66% year-on-year to INR321.84 crores, while its fee and other income improved 60.65% year-on-year to INR184.55 crores. Net interest margin improved 0.02 percentage points from 2.66% to 2.68% Impact of Regulatory Changes The following regulatory changes during this financial year have also increased the provisions made by the bank: a) An increase in provisioning rates for standard assets from 0.40% to 0.55% for the quarter ended June 30, 2006, on commercial real estate loans, residential housing loans beyond INR20 lakhs, personal loans and loans to the capital markets has led to a higher provisioning of INR7.29 crores; b) Abolition of Section 10(23)(G) of the Income Tax Act that has affected valuations of tax-free bonds to the extent of INR88.37 crores; c) RBI's guidelines on floating provisions, consequent to which an additional provision has been made for NPAs of INR13.47 crores. Financial Indicators UTI Bank's press release includes these financial indicators (in INR crores): Q1 FY 06-07 Q1 FY 05-06 % Growth ----------- ----------- ----------- Net Profit 120.55 92.63 30 Net Interest Income 321.84 222.48 45 Other Income 224.50 150.01 50 Fee and Other Income 184.55 114.88 61 Trading Income 39.95 35.13 14 Operating Income 546.34 372.49 47 Core Operating Income 506.39 337.36 50 Operating Expenses 239.16 169.01 42 Operating Profit 307.18 203.48 51 Core Operating Profit 267.23 168.35 59 Network Expansion The bank's ATM network of 1,959 ATMs is the third largest in India, up from 1,667 ATMs a year earlier. The bank has a wide presence through its 463 Branches & Extension Counters across 263 cities, towns and villages. The bank has added 113 Branches and Extension Counters across an additional 67 cities and towns in the last one year. Capital & Net Worth The net worth of the bank stood at INR2,906.90 crores as at end of June 2006 as compared to INR2,555.77 crores a year earlier, a growth of 14%. The Capital Adequacy Ratio for the Bank was at 10.28%, as at end of June 2006, as compared to 11.74% as at end of June 2005. The Tier - I capital amounted to 6.70%. The Bank intends to raise fresh Tier-I capital in the current financial year. Launch of International Business In April 2006, the Bank opened its first overseas branch, at Singapore, with a focus on offshore corporate and capital markets businesses. UTI Bank's financial report is available for free at: http://bankrupt.com/misc/tcrap_utibank091506.pdf About UTI Bank UTI Bank Limited -- http://www.utibank.com/-- is engaged in treasury and other banking operations. The treasury services segment undertakes trading operations on the proprietary account, foreign exchange operations and derivatives trading. Revenues of the treasury services segment primarily consist of fees and gains or losses from trading operations and interest income on the investment portfolio. Other banking operations principally comprise the lending activities (corporate and retail) of the bank. The corporate lending activity includes providing loans and transaction services to corporate and institutional customers. The retail lending activity includes raising of deposits from customers and providing loans and advisory services to customers through branch network and other delivery channels. Total deposits were INR31,712 crores at March 31, 2006. * * * The Troubled Company Reporter - Asia Pacific reported on August 4, 2006, that Standard & Poor's Ratings Services assigned its BB+/B counterparty credit ratings to UTI Bank Ltd. The outlook is positive. S&P also assigned its C bank fundamental strength rating to the bank. At the same time, S&P assigned its ratings to UTI Bank's proposed debt issues under its EUR1 billion medium-term note program. The agency rated UTI Bank's proposed senior unsecured notes BB+, its lower Tier II subordinated notes BB, and its upper Tier II subordinated notes 'BB-'. The lower Tier II subordinated notes will have a minimum tenor of five years, and the upper Tier II subordinated notes will have a minimum tenor of 15 years. Another TCR-AP report on July 26, 2006 relates that Fitch Ratings assigned an individual rating of C/D to UTI Bank Limited. The outlook on the ratings is stable. UTI BANK: Issues US$150-Million Tier-II Instruments --------------------------------------------------- UTI Bank Ltd has informed the Bombay Stock Exchange in a regulatory filing that the Board of Directors of the bank has passed a resolution on August 8, 2006, approving allotment of Bonds/Notes having a nominal value of US$100,000 each and thereafter in integral multiples of US$1000, aggregating to a sum of USD 150,000,000 to various international subscribers as the Bank's Upper Tier II Bonds. The allotment or the settlement date of these instruments was on August 11, 2006 and the maturity date will be August 12, 2021. These bonds/notes were issued at coupon rate of 7.25% and was listed at the Singapore Exchange effective on August 11, 2006. UTI Bank Ltd further informed the Bombay Stock Exchange in a regulatory filing that the Committee of Directors of the bank on August 29, 2006, has made the allotment of 164,611 equity shares of INR10 each to the employees of the bank, under ESOP. Accordingly, the paid up share capital of the bank will increase to 280,378,528 equity shares from 280,213,917 equity shares. * * * The Troubled Company Reporter - Asia Pacific reported on August 4, 2006, that Standard & Poor's Ratings Services assigned its BB+/B counterparty credit ratings to UTI Bank Ltd. The outlook is positive. S&P also assigned its C bank fundamental strength rating to the bank. At the same time, S&P assigned its ratings to UTI Bank's proposed debt issues under its EUR1 billion medium-term note program. The agency rated UTI Bank's proposed senior unsecured notes BB+, its lower Tier II subordinated notes BB, and its upper Tier II subordinated notes 'BB-'. The lower Tier II subordinated notes will have a minimum tenor of five years, and the upper Tier II subordinated notes will have a minimum tenor of 15 years. Another TCR-AP report on July 26, 2006 relates that Fitch Ratings assigned an individual rating of C/D to UTI Bank Limited. The outlook on the ratings is stable. ================= I N D O N E S I A ================= BANK MANDIRI: Fitch Affirms BB- Issuer Default Ratings ------------------------------------------------------ Fitch Ratings has affirmed all the ratings of Bank Mandiri as follows: * Long-term foreign and local currency Issuer Default ratings 'BB-', * Short-term rating 'B', * National Long-term rating 'AA(idn)', * Individual 'D', and * Support '4'. The Outlook for the ratings is Stable. The affirmations reflect its still significant asset quality weaknesses while taking into account its adequate capitalization, considerable size and franchise, and government ownership. Mandiri's non-performing loans appear to have stabilized but remained at a very high 26.4% of the bank's gross loans in H106. While Fitch recognizes the stepping-up of loan recovery efforts under the new management team, the agency remains generally cautious given the legal constraints of the operating environment in Indonesia and recent deterioration in its commercial lending book, which reflects a still evolving credit culture. The bank is also looking to the government to rectify legal hurdles that supposedly impede resolution efforts by state-owned banks, including the inability to administer haircuts on larger loans. Nevertheless, Fitch notes that the internal targets to bring its NPL levels to 10% of gross loans by end-2007 may appear somewhat ambitious and may well require the subsequent sale/disposal of a large portion of its NPLs. Mandiri's provision cover improved to 50% of NPLs at mid-2006 from a low of 43% a year ago but is considered to be on the weak side given the riskier conditions in Indonesia which includes foreclosure difficulties (reserves cover with collateral was 102.7% of NPLs). Stress testing by Fitch suggests that additional provisions of c.IDR8 trillion or 35% of current equity base may be required under extreme circumstances, but are recoverable from about two years of earnings based on a pre- provision profitability of about 2.3% of average assets. Mandiri's reasonably strong capital position, with Tier 1 CAR at 19.0% and total CAR at 24.6%, should provide some cushion but only if no further significant deterioration to its asset quality occurs. Underlying profitability as measured by pre-tax RoA fell sharply to 0.5% in 2005 (2004: 3.0%) but recovered slightly over H106. However, underlying earnings could stay generally weak given management's focus on rectifying asset quality issues. Bank Mandiri was formed in late-1998 from the merger of four bankrupted state-owned banks in the wake of the bailout and recapitalization of the Indonesian banks by the government following the Asian financial crisis. It is currently 69% owned by the state following its public listing in mid-2003. CA INC: Reveals Preliminary Results of Tender Offer --------------------------------------------------- CA, Inc., disclosed Friday preliminary results of its tender offer that expired at 5 p.m., New York City time, on Sept. 14, 2006. In the tender offer, CA offered to purchase for cash up to 40,816,327 shares of its common stock, par value US$0.10 per share, including the associated rights to purchase Series One Junior Participating Preferred Stock, Class A at a per share purchase price of not less than US$22.50 nor greater than US$24.50 per share, net to the seller in cash, without interest. In accordance with the terms and conditions of the tender offer, based on a preliminary count by Mellon Investor Services LLC, the depositary for the tender offer, CA expects to accept for purchase approximately 41.2 million shares of its common stock at a purchase price of US$24.00 per share, for a total cost of approximately US$989 million. The preliminary count by Mellon Investor Services LLC indicates that 41.2 million shares of common stock, including shares that were tendered through notice of guaranteed delivery and shares tendered subject to conditions, were validly tendered and not validly withdrawn at prices at or below US$24.00 per share. The number of shares validly tendered and not validly withdrawn and the purchase price are preliminary and subject to verification by Mellon Investor Services LLC. The actual number of shares validly tendered and not validly withdrawn and the final purchase price will be announced promptly following the verification process. Thereafter, CA will promptly commence payment for the shares purchased in the tender offer. Any shares validly tendered and not purchased due to conditional tenders or shares tendered at a price above the per share purchase price will be returned promptly to the tendering stockholders. The shares expected to be purchased in the tender offer represent approximately 7.3% of CA's 567,282,396 shares of common stock issued and outstanding as of August 11, 2006. As a result of the completion of the tender offer, immediately following payment for the tendered shares, CA expects that approximately 526.1 million shares of common stock will be issued and outstanding. The dealer managers for the tender offer were Banc of America Securities LLC, Citigroup Global Markets Inc. and J.P. Morgan Securities Inc. About CA Inc. Headquartered in Islandia, New York, CA Inc. (NYSE:CA) -- http://www.ca.com/-- is an information technology management software company that unifies and simplifies the management of enterprise-wide IT. Founded in 1976, CA serves customers in more than 140 countries. The company has operations in the Asia-Pacific region, including Indonesia. * * * As reported in the Troubled Company Reporter on Aug. 7, 2006, Moody's Investors Service confirmed CA Inc.'s Ba1 senior unsecured rating and assigned a negative rating outlook, concluding a review for possible downgrade initiated on June 30, 2006. The Ba1 rating confirmation reflects the company's completed accounting review and reestablishment of current filing of its 10-K and subsequent 10-Q's, including the company's filing of its 10-K for its March 2006 fiscal year on July 31, 2006. Standard & Poor's Rating Services affirmed its 'BB' corporate credit and senior unsecured debt ratings on CA Inc., and removed them from CreditWatch where they were placed on July 5, 2006, with negative implications. S&P said the outlook is negative. FOSTER WHEELER: Secures New US$350 Mil. Domestic Credit Facility ---------------------------------------------------------------- Foster Wheeler Ltd. has executed an agreement for a new US$350 million, five-year senior secured domestic credit facility. The Company expects to close on the new facility in October 2006. When the new facility closes, the Company will be able to utilize the facility by issuing letters of credit up to the full US$350 million limit. The Company will also have the option to use up to US$100 million of the US$350 million limit for revolving borrowings, an option which the Company has no immediate plans to use. The new facility will replace an existing credit facility that otherwise would not have expired until March 2010. The existing facility allows the Company to issue letters of credit up to a US$250 million limit with the option to use up to US$75 million of the US$250 million limit for revolving borrowings. "This new agreement will provide the increased bonding capacity and financial flexibility that we require to support our growing operations and increased volume of business," said John T. La Duc, executive vice president and chief financial officer. "At current usage levels, this new facility will also reduce our bonding costs by approximately US$8 million per year, a substantial cost saving compared with our previous agreement. This latest accomplishment provides us with an even stronger platform to continue to grow our business by winning new orders, building quality backlog, and delivering best-in-class products and services which consistently meet or exceed our clients' expectations." BNP Paribas is the sole lead arranger and bookrunner. About Foster Wheeler With operational headquarters in Clinton, New Jersey, Foster Wheeler Ltd. -- http://www.fwc.com/-- offers a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The company has offices in Indonesia, China, India, Malaysia, Singapore, Thailand, and Vietnam. * * * As reported in the Troubled Company Reporter on Aug 7, 2006, Standard & Poor's Ratings Services assigned its 'BB-' bank loan rating and '1' recovery rating on Foster Wheeler Ltd.'s proposed five-year, US$350 million senior secured credit facilities due 2011, reflecting a high expectation of full recovery of principal (100%) in the event of a payment default. As reported in the Troubled Company Reporter on May 30, 2006, Moody's Investors Service upgraded Foster Wheeler's corporate family rating to B1 from B3 and assigned a Ba3 rating to the Company's US$250 million senior secured bank revolving credit facility. The rating outlook is changed to Positive. MEDIA NUSANTARA: Moody's Affirms B1 Rating for Unsecured Bonds -------------------------------------------------------------- Moody's Investors Service has affirmed its B1 rating for the senior unsecured bonds issued by PT Media Nusantara Citra following the issuance's completion. At the same time, Moody's has affirmed its B1 corporate family rating for MNC. Both ratings have been removed from their provisional status. The ratings outlook is stable. Moreover, reduction of the bond issuance from originally US$230 million to the final amount of US$168 million have not had any ratings impact. "The resulting improvements in the interest and leverage metrics have not been sufficient to change the rating" said lead analyst Angela Choi, adding, "Other changes to MNC's business, including the termination of an attempt to acquire a share in Indovision, were also ratings neutral." "The company will mainly use the bond proceeds to refinance existing debt, acquire an additional 25% interest in TPI to bring its total equity interest to 100%, as well as for working capital and general corporate purposes," says Choi. PT Media Nusantara Citra, headquartered in Jakarta, Indonesia, is an integrated media company with operations in television, radio and print media. It is the leader in Indonesia's free-to- air TV market, owning 3 out of 11 FTA TV networks. It accounted for the largest shares in audience and advertising expenditure in 2005. It is 100% owned by PT Bimantara Citra Tbk, which is listed on Jakarta Stock Exchange. ========= J A P A N ========= BANCO BRADESCO: Joins Dow Jones Sustainability World Index List --------------------------------------------------------------- Banco Bradesco SA reported that it is now listed on the Dow Jones Sustainability World Index or DJSI World, according to Business News Americas. BNamericas relates that as of Sept. 18, 2006, three Brazilian firms -- including Banco Bradesco -- will be added to the DJSI World. Firms in the DJSI list have now reached 318, BNamericas reports. 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 Ratings also upgraded Banco Bradesco S.A.'s short-term local currency rating to 'F3' from 'B.' FORD MOTOR: Ratings Stay on Watch on Revised Way Forward Plan ------------------------------------------------------------- Standard & Poor's Ratings Services, on September 15, 2006, said 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 following the announcement of additional cost-cutting efforts and an accelerated restructuring plan. The 'BB-' long-term and 'B-2' short-term ratings on FCE Bank PLC, Ford Credit's European bank, also remain on CreditWatch with negative implications, reflecting its linkage to the Ford rating. Ford's actions, which include buyout offers for all 75,000 U.S. hourly workers, a 30% reduction in salaried staff, and the suspension of quarterly dividends, are indicative of the severe challenges and magnitude of cost reductions the company needs to turn around--and restore acceptable profitability at--its North American operations. In addition, the company announced the departure of at least two senior managers involved in the North American turnaround. "The work force reductions and accelerated restructuring efforts will result in massive special charges and add to the cash burn already occurring in North America," said Standard & Poor's credit analyst Robert Schulz, "although in the longer term, the moves will likely result in future cash savings." "Furthermore, the downsizing and any accelerated product introductions will entail considerable execution risk. Evaluating these latest announcements will be a major focus in resolving our CreditWatch review of Ford" Standard & Poor's is assessing all ramifications of the restructuring, as well as Ford's efforts to address other ongoing challenges, including lower market share and deteriorating product mix in North America. Fitch expects to resolve the CreditWatch within a week. 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. On Aug. 22, 2006, Dominion Bond Rating Service placed long-term debt rating of Ford Motor Company Under Review with Negative Implications following announcement that Ford will sharply reduce its North American vehicle production in 2006. DBRS lowered on July 21, 2006, Ford Motor Company's long-term debt rating to B from BB, and lowered its short-term debt rating to R-3 middle from R-3 high. DBRS also lowered Ford Motor Credit Company's long-term debt rating to BB(low) from BB, and confirmed Ford Credit's short-term debt rating at R-3(high). 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. On July 24, 2006, Moody's Investors Service lowered the Corporate Family and senior unsecured ratings of Ford Motor Company to B2 from Ba3 and the senior unsecured rating of Ford Motor Credit Company to Ba3 from Ba2. The Speculative Grade Liquidity rating of Ford has been confirmed at SGL-1, indicating very good liquidity over the coming 12-month period. The outlook for the ratings is negative. FORD MOTOR: Eyes US$5-Bil Savings in Accelerated Turnaround Plan ---------------------------------------------------------------- Ford Motor Company disclosed Friday plans to further reduce its capacity and work force, and ramp up new product introductions as it accelerates its North America "Way Forward" turnaround plan. Ford will cut its North American salaried-related work force by about a third and offer buyout packages to all Ford and Automotive Components Holdings hourly employees in the U.S. The reductions will contribute significantly to reducing ongoing annual operating costs by about $5 billion. In addition, Ford will renew 70% of its North American product lineup by volume by the end of 2008. "These actions have painful consequences for communities and many of our loyal employees," said Bill Ford, the company's executive chairman. "But rapid shifts in consumer demand that affect our product mix and continued high prices for commodities mean we must continue working quickly and decisively to fix our business. Mark Fields and his team deserve credit for the accelerated Way Forward strategy, which puts us on an even faster product-driven path to success. "Alan Mulally's experience in turning around a major industrial company will help guide the implementation of these measures as he assumes leadership of the company," Mr. Ford continued. "The actions we announced [fri]day - coupled with the North American production cuts we announced last month, the strategic alternatives we are considering for Aston Martin and a push for greater progress from our operating units and brands around the world - are part of a series of actions that Alan and our entire global team will be taking to put the company on a path to sustained profitability and success." Mr. Mulally, whose appointment as CEO and President of Ford was announced last week, echoed support for the Way Forward plan and for the team leading the company's North American turnaround. "The steps we are announcing [fri]day are clearly needed to ensure the ultimate turnaround of the business in Ford's biggest and most important market," Mulally said. "Although the process has been under way for months, I have had a chance to review these actions and am convinced that they provide the sound, product-led underpinnings and cost reductions we will need to achieve our goals. I look forward to helping with the implementation. "Turnarounds of this magnitude succeed when capacity and costs are aligned with a realistic expectation of demand," Mr. Mulally continued. "These actions are certainly consistent with that goal. We will focus intensely on the needs of our customers in North America, and around the world, by pulling forward new products and creating new markets. We are a team united by a shared vision to build the best automobiles in the world at Ford Motor Company." Mark Fields, Ford's President of The Americas, said the Way Forward plan will continue to focus every part of the business on the customer - building stronger Ford, Lincoln and Mercury brands; strengthening the company's North American product lineup; improving quality, and accelerating progress on productivity and competitive costs. "The fundamentals of our Way Forward plan have not changed, but our timetable has changed dramatically," said Mr. Fields. "We've taken a sobering look at the industry and our own business, and the entire team in North America has a renewed sense of urgency and a clear view of what it will take to position this business for profitability. "We know our decisions bring more pain to the business in the short-term, and they require sacrifice from our employees, labor unions, dealers and suppliers," he added. "But, together, we are building a much stronger Ford Motor Company and a more secure future for us all." Mr. Fields said the team will continue to push to move further and faster throughout the business. "Our work is far from over. We recognize that the competitive landscape and cost pressures have significantly challenged our traditional business model, and that recognition is driving more investment in small cars and crossovers, even as we continue to position ourselves to remain the truck leader," Mr. Fields said. "We will remain quick and decisive in executing our Way Forward plan and flexible in reacting to changing conditions in the future." Market share declines, reflecting primarily segment shifts, and higher-than-planned raw material costs will mean full-year profitability for Ford's North American auto operations is not expected before 2009. "Clearly, we could have cut product programs and maintained our goal of North American profitability in 2008," Fields said. "But, even as we further reduce our costs and capacity and make tough-but-necessary decisions throughout our business, we cannot and will not retreat from the critical investments to deliver the right products for our customers." Actions to be implemented by the end of 2008 and resulting financial impact if the revised North America Way Forward turnaround plan include: Product-Led Turnaround: 70% of Ford, Lincoln and Mercury products by volume will be new or significantly upgraded starting Friday through the end of 2008. The new lineup builds on Ford's strength as America's truck leader while expanding in growth segments, such as crossovers. Ford will introduce an all-new full-size crossover based on the Ford Fairlane concept. The seven-passenger vehicle for modern families goes on sale in 2008 and will be produced at Ford's Oakville(Ontario, Canada) Assembly Plant. Ford will continue to lead the American truck market with a new Super Duty pickup confirmed to go on sale in early 2007 and an all-new F-150 pickup confirmed to go on sale in 2008. The vehicles boast powertrain, design and feature upgrades. Ford will continue to lead America's sports car market with new Mustang derivatives each year. The new Lincoln MKS flagship sedan will go on sale in 2008 - packed with more technology and features than any prior Lincoln, including all-wheel drive. Current plans are to produce the vehicle at the company's Chicago Assembly Plant. Lincoln will continue offering the Lincoln Town Car to meet ongoing demand. After assembly ends at Ford's Wixom ( Mich.) Assembly Plant in 2007, Ford intends to move Town Car production to Ford's St. Thomas (Ontario, Canada) Assembly Plant. St. Thomas will be reduced to one shift of production, as previously announced. Product development work is intensifying through 2008 on creating new small cars and even more crossovers that will go on sale in the future. These vehicles will be based on the company's global vehicle architectures, including "B" and "C" platforms not presently used in North America. Major investments continue in new gasoline, flexible-fuel, diesel, hydrogen and hybrid powertrains, including additional E- 85 ethanol-powered and hybrid vehicles on the road by the end of 2008. In addition, two out of every three Ford, Lincoln and Mercury vehicles will be offered with fuel-saving 6-speed transmission technology by the end of 2008. The new products and a voluntary consolidation of the Ford and Lincoln Mercury dealer network are designed to significantly improve the dealers' through-put and profitability by the end of 2008. Accelerated Cost Savings, Leaner Structure: Compared with 2005, annual operating costs will be reduced by about US$5 billion by the end of 2008. Salaried-related costs will be reduced through the elimination of the equivalent of about 14,000 salaried-related positions, which represents approximately a third of Ford's North American salaried work force. The reduction includes the equivalent of 4,000 positions eliminated in the first quarter of 2006. The additional reductions will be achieved through early retirements, voluntary separations and, if necessary, involuntary separations - with most employees expected to depart by the end of the first quarter in 2007. An agreement with the UAW will expand early retirement offers and separation packages to all Ford U.S. hourly employees, including Ford employees at the company's ACH plants. Employees will begin receiving details by mid-October, and those accepting offers will leave the company by September 2007. Ford will accelerate by four years its previously announced goal of reducing 25,000 to 30,000 North American manufacturing employees by the end of 2012. The reductions now will be completed by the end of 2008. The sale or closure of all ACH facilities by the end of 2008 will result in additional employee reductions. Ford continues to work with the UAW to improve the competitiveness of its U.S. manufacturing facilities. As a result, new competitive operating agreements have been ratified by UAW locals in 30 different U.S. Ford and ACH facilities - and nearly US$600 million in annual savings is projected to be realized. Capacity Further Aligned with Consumer Demand North America manufacturing capacity is being adjusted to 3.6 million units by the end of 2008, down 26% versus 2005 - in line with consumer demand and as announced earlier. Nine facilities will be idled and cease production through 2008, including seven already announced. The two additional plants are the Maumee (Ohio) Stamping Plant and the Essex (Ontario, Canada) Engine Plant. Ford's Norfolk (Va.) Assembly Plant will be idled a year earlier than planned, and a shift reduction, in advance of idling the facilities, now is planned at Norfolk and Twin Cities (Minn.) Assembly. Facilities affected by the end of 2008 include the following: * Atlanta Assembly - to be idled in October 2006 * Batavia Transmission - to be idled in 2008 * Essex Engine - to cease operations in 2007 * Maumee Stamping - intended to be idled in 2008 * Norfolk Assembly - to be idled in 2007, a year earlier than previously planned, with a shift reduction planned in January 2007 * St. Louis Assembly - already idled in March 2006 * Twin Cities Assembly - to be idled in 2008, with a shift reduction planned in 2007 * Windsor Casting - to be idled in 2007 * Wixom Assembly - to be idled in 2007 * Dearborn Truck Plant will add a third crew, beginning in 2007, for F-150 truck production. All ACH operations will be sold or closed by the end of 2008. Including Maumee Stamping and Essex Engine, Ford has announced plans to cease production at 16 North American manufacturing facilities by the end of 2012, including seven assembly plants. Financial Impact "Though North America's return to profitability will take longer than planned, the actions we're taking are the right ones, and are fundamental and necessary steps to improving our business structure," said Mr. Don Leclair, the company's Chief Financial Officer. "The planned improvements in our auto operations, in conjunction with Ford Credit - which remains a core asset - will leave us well-positioned for the future. "We are starting from a position of strong liquidity, including our cash, credit lines and VEBA," Mr. Leclair added. "We will continue to focus on enhancing our liquidity, building upon our decision to explore strategic alternatives for Aston Martin and the board's intent to eliminate our quarterly dividend." Automotive Operations Full-year pre-tax special items for 2006 are expected to be significantly increased from the $3.8 billion estimated previously to reflect the accelerated Way Forward actions. Further details will be provided when Ford announces Third Quarter financial results next month. Full-year profitability in North American automotive operations not expected before 2009. Ford and Lincoln Mercury U.S. market share is projected to be in the low-16% range at the end of 2006. A further share decline is expected as production of the Ford Taurus sedan and Mercury Monterey minivan ends in 2006 and production of the Ford Freestar minivan ends in 2007. The end of these vehicles will reduce the company's sales to daily rental fleets. With the investment in new products and improvements in quality, Ford expects to be in the 14 to 15% market share range going forward - with a focus on profitable retail share. South America and Ford of Europe still are expected to be solidly profitable in 2006. However, full-year operating losses now are expected in 2006 for Asia Pacific and Africa, as well as the Premier Automotive Group - primarily reflecting lower volumes. Liquidity Ford Motor Company's 2006 year-end liquidity is expected to include automotive gross cash of about US$20 billion, including marketable and loaned securities and the effects of US$3.4 billion of VEBA. The company will continue to have committed automotive credit facilities totaling more than US$6 billion . Ford Motor Company's Board indicates that it will suspend payment of the quarterly dividend on its common and Class B Stock beginning in the fourth 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 Japan. On Aug. 22, 2006, Dominion Bond Rating Service placed long-term debt rating of Ford Motor Company Under Review with Negative Implications following announcement that Ford will sharply reduce its North American vehicle production in 2006. DBRS lowered on July 21, 2006, Ford Motor Company's long-term debt rating to B from BB, and lowered its short-term debt rating to R-3 middle from R-3 high. DBRS also lowered Ford Motor Credit Company's long-term debt rating to BB(low) from BB, and confirmed Ford Credit's short-term debt rating at R-3(high). 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. On July 24, 2006, Moody's Investors Service lowered the Corporate Family and senior unsecured ratings of Ford Motor Company to B2 from Ba3 and the senior unsecured rating of Ford Motor Credit Company to Ba3 from Ba2. The Speculative Grade Liquidity rating of Ford has been confirmed at SGL-1, indicating very good liquidity over the coming 12-month period. The outlook for the ratings is negative. JAPAN AIRLINES: Inks Long-Term Contract With TRX and TATA --------------------------------------------------------- TRX Inc., an independent provider of transaction processing and data integration solutions to the global travel industry, announced on September 13, 2006, the completion of a long-term contract between Japan Airlines and TRX and its alliance partner SWS Inc., a TATA Sons Ltd. company. Together, TRX and SWS will provide Japan Airlines comprehensive transaction processing and customer care services for all Japan Airlines reservations booked through the airline's North American Web site. TRX will deploy CORREX and TRANXACT technologies to support automated quality control, ticketing, schedule changes, exception processing, and paper ticket distribution, while SWS will provide phone and email customer care services. Said TRX Executive Vice President, Sales & Client Services Shane Hammond, "We are focused on opportunities in the global travel arena and are actively pursuing new opportunities to support airlines around the world. Our new relationship with JAL is the culmination of our efforts in these areas -- it also demonstrates the growth potential of our partnership with TATA. Our seamless joint offering with TATA provides considerable efficiencies and economies of scale." Kiyoto Morioka, Japan Airlines' Vice President Passenger Marketing for the Americas, added, "We are pleased to be partnering with TRX and SWS in our efforts to enhance Japan Airlines' online reservation capabilities. And, with our renewed Web site, North American travelers bound for Asia will be able to effortlessly book and purchase their travel through us." Hammond concluded, "Japan Airlines is an exciting new client. They have a successful operation, and we are looking forward to working with them to make their operations and online support services even more efficient." About TRX TRX Inc. is an independent provider of transaction processing and data integration services to the global travel industry. TRX provides five hosted technology and service solutions: RESX (Online Booking), SELEX (Agent Technology), CORREX (Automated Processing), TRANXACT (Settlement & Exceptions), and DATATRAX (Data Integration). TRX offers the technology components of these solution suites individually or as a comprehensive, integrated end-to-end processing suite for airlines, travel agencies, travel suppliers, large corporations, credit card issuers, and expense management companies. TRX is headquartered in Atlanta, Georgia with operations and staff in North America, Europe, and Asia. About TATA The TATA Group is an Indian conglomerate operating with over 90 companies, of which about 29 are listed. The Group has presence in more than 40 countries across six continents. It is the largest and one of the most respected business houses in India with revenues of $17.8 billion in 2004-05; it exports products and services to over 120 nations. TATA companies together employ some 215,000 people. The Group is internationally known for several well-run companies such as TATA Steel, TATA Consultancy Services, TATA Motors, and TATA Tea. The aggregate market capitalization of group companies is by far the highest among Indian business houses in the private sector. About Japan Airlines Tokyo-based Japan Airlines International Company, Limited -- http://www.jal.com/en/-- was created as a result of the merger of Japan Airlines and Japan Air Systems to boost domestic coverage. As of March 31, 2006, JAL's debt amounted to JPY1.93 trillion, whereas shareholders' equity stood at JPY148.1 billion. The Troubled Company Reporter - Asia Pacific stated on May 12, 2006, that JAL posted a consolidated net loss of JPY47.24 billion for the business year 2005 ended March 31, 2006, due to safety-related incidents in 2005 that caused passengers to shift to its rival All Nippon Airways, and an increase in aviation fuel costs. * * * Fitch Ratings Tokyo analyst Satoru Aoyama said that the Company's debt obligations and expenses for new aircraft have placed it in an unfavorable financial position. Fitch assigned a BB- rating on the Company, which is three notches lower than investment grade, whereas Moody's Investors Service gave Ba3 senior unsecured and issuer ratings for Japan Airlines International Co., Ltd., as well as its Ba3 issuer rating for Japan Airlines Domestic Co., Ltd. On July 20, 2006, Standard & Poor's Ratings Services had affirmed its B+ long-term corporate credit and senior unsecured debt rating on the Company. MITSUKOSHI DEPARTMENT STORE: Exits Hong Kong After 25 Years ----------------------------------------------------------- The Mitsukoshi Department Store ended 25 years of retail operations in Hong Kong on September 17, 2006, marking the end of an era for Japanese megastores, The Japan Times reports. According to Japan Times, Mitsukoshi is the last of four Japanese owned stores in Hong Kong that closed down due to changing tastes of shoppers. Both Matsuzakaya and Daimaru ended their business and left Hong Kong in 1998, Sogo was sold in 2001 to local property developers who retained the Japanese name. But unlike Matsuzakaya, Daimar and Sogo, Mitsukoshi is still keen on reopening its business in the busy Hong Kong district, The Japan Times says. But Philip Cheng, spokesman of the Hong Kong Department Stores and Commercial Staff General Union, which represents 20,000 members and helped the 100 Mitsukoshi staff to secure severance packages, said Mitsukoshi will likely have a difficult time making profits due to rising rental cost and change of consumer preferences, The Japan Times adds. ========= K O R E A ========= KOREA EXCHANGE: Kookmin & Lone Star in Talks Even After Deadline ---------------------------------------------------------------- The Troubled Company Reporter - Asia Pacific reported on September 13, 2006, Kookmin Bank commenced negotiations with U.S.-based Lone Star Fund to extend the completion deadline of the sale of Korea Exchange Bank. An earlier TCR-AP report on March 24, 2006, stated that Lone Star agreed to sell its 64.62% stake in the formerly state-owned KEB to Kookmin for KRW6.42 trillion. In May, the parties agreed to a KRW6.33 purchase price. Despite the deadline having passed last September 16, the parties are reportedly still in negotiations. Asia Pulse Businesswire cites a KEB official as saying that the sale's deadline "is not a big concern." "Unless one of the two demands to cancel the deal, the deal is in effect regardless of the deadline," the official told Asia Pulse. According to the Korea Times, Kookmin wants to extend the contract signed in May without changing the acquisition price and other sales terms. Lone Star, however, wants a "sweeter deal," Reuters says. Citing a statement made by KEB's chief executive, Reuters states that Lone Star is asking Kookmin to reflect a rise in the value of KEB shares in the final acquisition price Kookmin pays for KEB. About Kookmin Bank Kookmin Bank -- http://inf.kbstar.com/-- provides various commercial banking services, such as deposits, credit cards, trust funds, foreign exchange transactions, and corporate finance. The bank also offers Internet banking services. Moody's Investors Service gave Kookmin Bank a Bank Financial Strength rating of D+ effective March 27, 2006. Fitch Ratings gave the bank a B/C rating. About Korea Exchange Korea Exchange Bank -- http://www.keb.co.kr/english/index.htm-- was established in January 1967 by the Government originally as a specialist foreign exchange bank. It retains its strength in trade finance and foreign exchange. In terms of assets, it ranks sixth among Korea's nationwide commercial banks with 7% of system assets. It operates a branch network of 317 domestic and 28 overseas offices. During the economic crisis, significant exposures to troubled corporate borrowers led to a deterioration in the bank's financial health. However, since then, its operating performance stabilized, and the bank has reported consecutive quarterly profits since the end of 2003. Fitch Ratings gave Korea Exchange Bank a 'C' Individual Rating effective on June 17, 2005. Moody's Investors Service gave KEB a 'D' Bank Financial Strength Rating effective on May 9, 2006. * * * South Korean politicians -- led by the main opposition Grand National Party -- have alleged that the Korea Exchange shares were sold cheap to United States-based Lone Star Funds after the Bank's financial status was incorrectly reported. Korea Exchange denied the allegations in March 2006. The Board of Audit and Inspections and the Supreme Public Prosecutors' Office initiated separate investigations into the matter. On June 20, 2006, the BAI determined that Lone Star's acquisition of Korea Exchange was led by management with the approval of the financial supervisory bureau. BAI found that KEB exaggerated its insolvency and falsely recorded the Bank for International Settlements' capital adequacy ratio at 6.16%, which is below the 8% threshold for healthy banks. Prosecutors are investigating whether there were any transgressions of law in the process of selling KEB and whether bribes were given to officials. If prosecutors will find solid evidence that the data was cooked up, it might lead to the nullification of the KEB sale to Lone Star and the arrest of regulators, policymakers and former KEB executives. NOVELIS INC: Files 1st Quarter 2006 Financials, Incurs $74M Loss ---------------------------------------------------------------- On September 15, 2006, Novelis Inc. filed with the United States Securities and Exchange Commission in Form 10-Q its financial results for the first quarter of 2006. For the quarter ended March 31, 2006, Novelis incurred a net loss of US$74 million, or US$1 a share, a deep slump from the US$22-million net income for the same period last year. The US$2,319 million sales for the 1stQ/FY2006 2006, however, was an increase of last year's US$2,112 million. The current quarter's net loss included US$102 million in income tax expense, Novelis explained in a press release. Significant tax expense items in the quarter include: -- a US$33 million increase in valuation allowances primarily related to tax losses in certain jurisdictions where the Company believes, based on current facts and circumstances, it is more likely than not that it will not be able to utilize those losses; -- US$13 million of exchange translation and re-measurement items; and -- US$44 million due to foreign tax rate differences resulting from the application of an estimated annual effective tax rate to profit and loss entities. Of the US$102 million of tax expense, approximately US$10 million is current tax expense, the release added. Cash taxes paid during the first quarter of 2006 were US$12 million. "We have incurred significant deferred tax expense during our first five quarters as a public company," said Novelis Chief Financial Officer, Rick Dobson. "While we expect our tax expense to decline by year-end, we are taking proactive tax planning actions to develop the most efficient tax structure for the Company." Before income taxes, earnings in the first quarter of 2006 were US$28 million, while for the year-earlier period, US$57 million. According to Novelis, the 2006 pre-tax earnings were negatively impacted by a number of items, including: -- higher metal prices that the Company was unable to pass through to certain customers as a result of metal price ceilings; -- higher energy and transportation costs; -- the adverse effects of currency exchange rates; and -- expenses related to the Company's restatement and review process and delayed financial reporting. Novelis highlights that for the quarter ended March 31, 2006, it reduced its debt by US$103 million, which was in excess of its principal payment obligations. Cash and cash equivalents at March 31, 2006, were $124 million, compared with $100 million at the end of 2005. Novelis also noted out that because of metal price ceilings on a portion of its can sheet sales in North America, the Company was unable to pass on approximately $95 million of metal price increases in the first quarter. This was partially offset by the positive change in the fair market value of derivatives purchased to hedge this risk. "Novelis business operations remain strong," said William T. Monahan, Chairman and Interim Chief Executive Officer, "and we continue to generate solid cash flow as we remain focused on debt reduction, efficient use of our global assets, and investments to upgrade our product portfolio. We also continue to work toward removing the remaining price ceilings." Filing Cures Default Under an indenture governing Novelis' Senior Notes, the Company is required to deliver to the trustee a copy of our periodic reports filed with the U.S. Securities and Exchange Commission within the time periods specified by the Commission. On July 21, 2006, Novelis received an effective notice of default from the trustee, with respect to, among others, its Form 10-Q. The notice required the Company to file the financial report by September 19, 2006. By the filing of the Form 10-Q before the deadline, the Company believes it has cured the default. 2ndQ/FY2006 Financials to be Filed Before Oct. 23 Pursuant to another notice of default from the trustee, Novelis is required to file the Form 10-Q for its second quarter 2006 financial report by October 23, 2006. The Company expects to file the Form 10-Q for the second quarter before the deadline. The Company further intends to be current with its filings after it files its third-quarter report during the fourth quarter of the year. "We have made progress in improving the quality of our financial reporting process and we expect this progress to continue through the balance of the year as we work toward becoming current with our SEC filings," Mr. Monahan states. A full-text copy of Novelis' First-Quarter 2006 Financials is available for free at: http://www.sec.gov/Archives/edgar/data/1304280/00009501440600886 7/g03404e10vq.htm About Novelis Inc. 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. The company has operations in Malaysia and Korea. * * * As reported by the Troubled Company Reporter - Asia Pacific on September 8, 2006, Moody's Investors Service downgraded Novelis' 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 the Novelis' bank term loan rating to Ba3 from Ba2. These ratings remain under review for further possible downgrade. Furthermore, Moody's lowered the Company's speculative grade liquidity rating to SGL-4 from SGL-3. =============== M A L A Y S I A =============== ABRIC PERINTIS: Faces Wind-Up Proceedings ----------------------------------------- On September 12, 2006, Abric Berhad's wholly owned subsidiary, Abric Perintis Sdn Bhd, was subject to a wind-up petition, which is fixed for hearing on March 2, 2007. The wind-up petition relates to Abric Perintis' nonpayment of MYR95,000 in professional charges to the petitioner, Wimpey Overseas Incorporated. The petitioner was engaged to conduct a feasibility study on a proposed biodiesel project, which subsequently did not materialize. The financial impact of the petition to the Abric group is equivalent to the amount claimed. However, there is no operational impact as Abric Perintis is dormant. Nevertheless, Abric will see to it that the wind-up petition is contested, and also will negotiate with the petitioner to resolve the matter. AFFIN BANK: Fitch Upgrades Individual Rating from E to D/E ---------------------------------------------------------- Fitch Ratings upgraded, on September 8, 2006, Malaysia's Affin Bank's Individual rating to "D/E" from "E". At the same time, the agency affirmed the bank's Support rating at "3". The upgrade is on account of a slight improvement in the bank's financial and business profile over the past 12 to 18 months. Fitch notes that due to its exposure to large corporates, Affin was seriously affected in the aftermath of the Asian financial crisis. It had reported large losses in 2000 and 2001 and its gross non-performing loan ratio had peaked at 32% in 2002. However, since the appointment of the ex-Danaharta chief as the bank's CEO from mid-2003, Affin has gradually been on the recovery path although it still remains weaker than most Malaysian financial institutions. Thanks to aggressive recovery efforts together with a generally benign operating environment, Affin's gross NPL ratio had declined to 16.9% at June 2006 compared with 27% at end-2004. However, specific reserves coverage was relatively low at 27% and therefore, the bank's net NPL ratio continues to be high at 12.9% in H106. Affin's business and financial profile has also improved as a result of its merger with its subsidiary engaged in hire- purchase business in June 2005. Consequently, the bank's loan book is now more diversified compared with its predominantly corporate focus in the past. Although the fixed rate hire- purchase business is more vulnerable to further rises in interest rates, the higher margin in this segment has nevertheless improved the bank's profitability, which had historically been poor due to large NPLs and a contracting corporate loan book. Affin's reported total and Tier 1 capital adequacy ratios at 13% and 9.16%, respectively, at June 2006 were satisfactory compared with its peers. Fitch also believes that despite the bank's relatively small size there is a moderate probability that the government would support the bank given its ultimate ownership by the Malaysian military through its pension fund. The agency also notes that the bank's individual rating may further improve if the bank's legacy NPLs are resolved without substantially compromising its capital position. The downside risk is relatively low given that the rating is already at a low level. AYER MOLEK: Alliance Merchant Ceases Being Merchant Banker ---------------------------------------------------------- The Alliance Merchant Bank has ceased to be The Ayer Molek Rubber Company Berhad's appointed merchant banker, the company said in a regulatory filing with Bursa Malaysia Securities Berhad. The company said it is optimistic and envisaged that the issued on compliance with the Listing Requirements would be successfully accomplished. Ayer Molek added that it has initiated its comprehensive proposal to be endorsed by all relevant authorities. About Ayer Molek Rubber Headquartered in Kuala Lumpur, Malaysia, The Ayer Molek Rubber Company Berhad is principally engaged in the leasing of its entire plantation land to a third party. It operates solely in the domestic market. Ayer Molek has suffered recurring losses since the early 90s, which prompted the Company to propose a rescue and restructuring scheme to fully redeem and settle outstanding debts. The Company's accumulated loss figure as of March 31, 2006, stands at MYR21,177,000. As of March 31, 2006, the Company's balance sheet revealed total assets of MYR31,056,000 and total liabilities of MYR6,818,000. FALCONBRIDGE: Xstrata Acquires Company's Remaining Common Shares ---------------------------------------------------------------- Xstrata plc has mailed a notice of compulsory acquisition to all remaining holders of Falconbridge Limited common shares. Following Xstrata's offer to acquire all of the Common Shares not already owned by it, the company beneficially owns approximately 97.1% of the issued and outstanding Common Shares on a fully diluted basis. Since the Xstrata offer was accepted by holders of more than 90% of the Common Shares, Xstrata is now exercising its right under the compulsory acquisition provisions of the Business Corporations Act (Ontario) to acquire all outstanding Common Shares not already owned by Xstrata at the Offer price of CDN$62.50 per Common Share. Falconbridge shareholders with questions or requests for copies of the documents, may contact: CIBC Mellon Trust Company Tel: 1-416-643-5500 1-800-387-0825 About Xstrata Xstrata plc -- http://www.xstrata.com/-- is a major global diversified mining group, listed on the London and Swiss stock exchanges. The Group is and has approximately 24,000 employees worldwide, including contractors. Xstrata does business in six major international commodities markets: copper, coking coal, thermal coal, ferrochrome, vanadium and zinc, with additional exposures to gold, lead and silver. The Group's operations and projects span four continents and nine countries: Australia, South Africa, Spain, Germany, Argentina, Peru, Colombia, the United Kingdom and Canada. Xstrata holds a 97% stake in Falconbridge. About Falconbridge Headquartered in Toronto, Ontario, Falconbridge Limited (TSX:FAL.LV)(NYSE: FAL) -- http://www.falconbridge.com/-- is a leading copper and nickel company with investments in fully integrated zinc and aluminum assets. Its primary focus is the identification and development of world-class copper and nickel orebodies. It employs 14,500 people at its operations and offices in 18 countries, including Malaysia. The Company owns nickel mines in Canada and the Dominican Republic and operates a refinery and sulfuric acid plant in Norway. It is also a major producer of copper (38% of sales) through its Kidd mine in Canada and its stake in Chile's Collahuasi mine and Lomas Bayas mine. Its other products include cobalt, platinum group metals, and zinc. * * * Falconbridge's CDN$150 million 5% convertible and callable bonds due April 30, 2007, carry Standard & Poor's BB+ rating. FALCONBRIDGE LTD: Xstrata Appoints Claude Ferron as COO ------------------------------------------------------- Xstrata Copper declares a new senior management appointment after its assumption on full management control of Falconbridge Limited on August 21, 2006. Claude Ferron, formerly President of Canadian Copper and Recycling for Falconbridge, has been appointed as Chief Operating Officer for the newly established division Xstrata Copper Canada, reporting to Xstrata Copper's Chief Executive, Charlie Sartain. Mr. Ferron is based in Toronto, and is responsible for Xstrata Copper's operations in Canada. These comprise the Kidd Creek mining and metallurgical operations in Ontario, the Horne smelter and the Canadian Copper Refinery business in Montreal, and the copper recycling business (Noranda Recycling). Mr. Ferron will also be appointed as a member of the Xstrata Copper Executive Committee. Charlie Sartain, Chief Executive Xstrata Copper, commented, "I am delighted that Claude has joined Xstrata Copper in a senior management position. He brings a wealth of experience and knowledge of the former Falconbridge operations in Canada and their respective markets and we look forward to the significant contribution that he will make to the expanded Xstrata Copper. "The acquisition of Falconbridge has positioned Xstrata Copper as the third largest producer of copper in the world, with managed production of over one million tonnes of copper per annum, and mining operations in five countries. It is an exciting time for Xstrata Copper and we look forward to integrating the former Falconbridge copper assets with our existing global businesses as soon as possible." About Xstrata Xstrata plc -- http://www.xstrata.com/-- is a major global diversified mining group, listed on the London and Swiss stock exchanges. The Group is and has approximately 24,000 employees worldwide, including contractors. Xstrata does business in six major international commodities markets: copper, coking coal, thermal coal, ferrochrome, vanadium and zinc, with additional exposures to gold, lead and silver. The Group's operations and projects span four continents and nine countries: Australia, South Africa, Spain, Germany, Argentina, Peru, Colombia, the U.K. and Canada. About Falconbridge Headquartered in Toronto, Ontario, Falconbridge Limited (TSX:FAL.LV)(NYSE: FAL) -- http://www.falconbridge.com/-- is a leading copper and nickel company with investments in fully integrated zinc and aluminum assets. Its primary focus is the identification and development of world-class copper and nickel orebodies. It employs 14,500 people at its operations and offices in 18 countries, including Malaysia. The Company owns nickel mines in Canada and the Dominican Republic and operates a refinery and sulfuric acid plant in Norway. It is also a major producer of copper (38% of sales) through its Kidd mine in Canada and its stake in Chile's Collahuasi mine and Lomas Bayas mine. Its other products include cobalt, platinum group metals, and zinc. * * * Falconbridge's CDN$150 million 5% convertible and callable bonds due April 30, 2007, carry Standard & Poor's BB+ rating. FALCONBRIDGE LTD: Inks Option & Joint Venture Accord with Benton ---------------------------------------------------------------- Falconbridge Limited has entered into an option and joint venture agreement with Benton Resources Corp. Falconbridge Limited is a subsidiary of the Xstrata group, whereby Xstrata has the exclusive right and option at its election to earn up to a 70% interest in the Goodchild Lake Ni- Cu-PGM Project by spending US$25,000,000 or completing a feasibility study, which ever comes first. The specific terms of the agreement are: a) to maintain the right and option and earn a 50% interest Xstrata must complete aggregate exploration expenditures of US$3,000,000 by Aug. 1, 2009, and make payments to Benton totaling US$335,000 over the term of the earn-in: * an initial US$50,000 cash payment on signing of the agreement; * an additional US$60,000 cash payment and spend US$750,000 on exploration by Aug. 1, 2007; * an additional US$75,000 cash payment and spend an aggregate of at least US$1,750,000 on exploration by Aug. 1, 2008; and * an additional US$150,000 cash payment and spend an aggregate of US$3,000,000 on exploration by Aug. 1, 2009; b) to earn a further 10% interest to bring its interest to 60%, Xstrata must spend a further US$2,000,000 on exploration by Aug. 1, 2011; c) to earn a further 10% to bring its total interest up to 70%, Xstrata must spend a further US$20,000,000 on exploration or complete a feasibility study, which ever comes first, by Aug. 1, 2014; d) provided Xstrata earns a minimum of a 50% interest, Xstrata and Benton will form a joint venture based on the respective interests of the parties at the stage that Xstrata ceases to increase its interest; and e) After the JV is formed, if either party dilutes to a 10% interest, such interest shall automatically be converted to a 3% Net Smelter Royalty of which 1.5% can be purchased for US$1.5 million by the other party. The Goodchild Lake Project is located approximately 15 km. north of Marathon, Ontario, and is host to several nickel showings with grab samples assaying up to 5.67% nickel -- collected by Benton personnel -- and 6.72% nickel -- collected by Xstrata personnel. The large ultramafic intrusion measures approximately 5x8 km and has numerous untested airborne electromagnetic anomalies. Benton will keep its shareholders updated on developments at the property as exploration moves forward. About Falconbridge Headquartered in Toronto, Ontario, Falconbridge Limited (TSX:FAL.LV)(NYSE: FAL) -- http://www.falconbridge.com/-- is a leading copper and nickel company with investments in fully integrated zinc and aluminum assets. Its primary focus is the identification and development of world-class copper and nickel orebodies. It employs 14,500 people at its operations and offices in 18 countries, including Australia. The Company owns nickel mines in Canada and the Dominican Republic and operates a refinery and sulfuric acid plant in Norway. It is also a major producer of copper (38% of sales) through its Kidd mine in Canada and its stake in Chile's Collahuasi mine and Lomas Bayas mine. Its other products include cobalt, platinum group metals, and zinc. * * * Falconbridge's CDN$150 million 5% convertible and callable bonds due April 30, 2007, carry Standard & Poor's BB+ rating. FOREMOST HOLDINGS: Unveils Incorporation of New Subsidiary ---------------------------------------------------------- Foremost Holdings Berhad's wholly owned subsidiary, Foremost Electronics Sdn Bhd, was incorporated on September 6, 2006. Foremost Electronics has an authorized share capital of MYR100,000 comprising 100,000 shares of MYR1 each and an issued and paid-up capital of MYR100,000 consisting of 100,000 shares of MYR1 each. The company will be principally involved in the manufacturing and dealing in electronic and electrical components and investment holding. The incorporation of Foremost Electronics is not expected to have any material effect on the earning r net assets of the Foremost Holdings group. About Foremost Holdings Foremost Holdings Berhad manufactures and sells automobile speakers, home audio speakers, general-purpose speakers and speaker wooden cabinets. The Company is also engaged in the trading of auto accessories, investment holdings and the provision of management services. Products are distributed in Malaysia, Singapore, United Kingdom, Italy, Taiwan, the United States, other Asian countries, other European countries and other countries. Foremost was classified as an affected listed issuer under Bursa Malaysia Securities Berhad's Practice Note 17 because it has "insufficient financial position to warrant continued listing". As an affected issuer, the Company is required to draft a plan to regularize its finances to avoid being delisted from the Official List. INTAN UTILITIES: Holding Firm Suggests Voluntary Delisting ---------------------------------------------------------- Intan Utilities Berhad's holding company, Vista Meranti Sdn Bhd, had submitted a proposal to let Intan undertake a voluntary withdrawal of its listing from the Official List of Bursa Malaysia Securities Berhad. Vista, in its proposal to Intan's board of directors, had cited the lack of public shareholding spread, investors' interests and trading liquidity as reasons for requesting the delisting. Based on Intan's Record of Depositors as of August 17, 2006, the Company has a public shareholding spread of 25.15% held by 872 public shareholders. Although Intan has met the minimum 25% public shareholding spread, there is a spread shortfall of 128 public shareholders pursuant to the Listing Requirements. Bursa Securities had, on May 11, 2006, rejected Intan's request for a waiver from having to comply with the minimum of 1,000 public shareholders pursuant to the Listing Requirements. In addition, Bursa Securities on July 12, 2006, directed Intan to comply with the public spread requirement by October 12, 2006. However, the compliance in terms of the number of public shareholders is beyond the control of Intan and its substantial shareholders. To facilitate the proposed delisting, Vista proposes to make a voluntary general offer to acquire all the remaining ordinary shares of MYR1.00 each in Intan not already held by Vista. As of August 17, 2006, Vista holds 55,610,799 Shares, representing 57.70% of the issued and paid-up share capital of Intan. The proposed delisting, which is still subject to the approval of relevant authorities, will not have any effect on the earnings, net assets and gearing of Intan and its subsidiaries and associated company for the financial year ending Dec. 31, 2006. Under Paragraph 16.05 of the Listing Requirements, Intan may not request the withdrawal of its listing from the Official List of Bursa Securities, unless: * Intan convenes a general meeting to obtain the approval of its shareholders; * the resolution for the withdrawal of its listing is approved by a majority in number representing 3/4 in value of the shareholders present and voting either in person or by proxy at the meeting and provided that such shareholders who object to the withdrawal is not more than 10% of the value of the shareholders present and voting either in person or by proxy; * the shareholders are offered a reasonable cash alternative or other reasonable alternative; and * an independent adviser is appointed to advise and make recommendations for the consideration of the shareholders in connection with the withdrawal of its listing as well as the fairness and reasonableness of the exit offer. About Intan Utilities The company is classified as a Practice Note 1 company after it defaulted on several loan facilities due to its tight cash flow position. It is currently formulating plans to address the issue. As of March 31, 2006, the Company's balance sheet showed MYR457,961,000 in total assets and MYR267,213,000 in total liabilities. However, the Company's March 31 balance sheet showed strained liquidity with MYR151,393,000 in total current assets available to pay MYR243,032,000 in total current liabilities coming due within the next 12 months. For the six- month period ended 30 June 2006, Intan Group reported a net loss of RM3.57 million. In addition, certain Intan units have defaulted on loan repayments to lenders. MBF HOLDINGS: High Court Strikes Out Claims Payment Suit -------------------------------------------------------- On April 29, 2003, MBf Holdings Berhad was served a Writ of Summons and Statement of Claim from Industrial and Commercial Bank of China (Asia) Limited. Under the statement, ICBC is asserting a claim of HKD114,867,276, or MYR56,067,543, plus interests of HKD3,405,565 or MYR1,668,727. On May 12, 2005, the parties executed a Settlement Agreement in full and final settlement of the claim by way of a settlement sum of HKD25 million, or approximately MYR12.2 million, over a period of 15 months to August 2006. The transaction was part of the continuing efforts by the Group to address its borrowings. In an update in September 12, 2006, MBf Holdings informed that it had fully paid the settlement sum of MYR25 million. Upon fulfillment of its obligation, the company will be granted a waiver of debts and interest of HKD116.7 million, or MYR55.03 million. Consequently on September 12, ICBC's solicitors applied for the withdrawal of the suit, which was accordingly struck out by the Kuala Lumpur High Court. About MBf Holdings Headquartered in Selangor Darul Ehsan, Malaysia, MBf Holdings Berhad is involved in retailing and wholesaling of merchandise, shipping, automotive and heavy earthmoving equipment and printing of packaging boxes. Its other activities include copra, cocoa, coffee and tea production, issuing of credit cards, acquiring merchants and other related services, provision of financial services, provision of property management, investment in properties, property development including dealing in land and estate management, club management, development and sale of membership of a recreational club, education and investment holding. The Group's operations are carried out in Malaysia, other Asean countries including Singapore, Thailand and Philippines, Hong Kong, South Pacific Islands, Australia and United States of America. MBF Holdings Berhad undertook and completed a restructuring scheme in 2003. Included in the Scheme was a debt-restructuring scheme, which excluded the lease, hire-purchase liabilities, general unsecured liabilities and amounts owing to subsidiary and associated companies. The lease, hire-purchase and general liabilities were to be addressed in the ordinary course of business. However, the Scheme made no provision for the settlement of the Inter-company Loans, which the Group is now having problems with. As of June 30, 2006, the Company's balance sheet revealed total assets of MYR1,132,524,000, total liabilities of MYR892,729,000 and total stockholders' equity of MYR239,795,000. The June 30, 2006, balance sheet also showed accumulated losses of MYR425,243,000. OLYMPIA INDUSTRIES: Wind-Up Petition Served on Sub-Unit ------------------------------------------------------- Dealhill (M) Sdn Bhd has served a wind-up petition on Mascon Construction Sdn Bhd -- a wholly owned subsidiary of Mascon Sdn Bhd, which in turn is 71% owned by Olympia Industries Berhad. In a filing with Bursa Malaysia, Olympia advised that the wind- up petition was presented on August 9, 2006, and was served on September 11, 2006. The petition was made after Mascon Construction failed to pay MYR141,594 plus interests, which is the balance of progress claims for the supply and installation of roof trustees to the defendant's two project sites located in Belakong, Selangor and Cheras, Kuala Lumpur. Mascon Construction is in the process of instructing its solicitors to file an affidavit to oppose the wind-up petition. Meanwhile, Olympia said the wind-up proceedings will have no material financial and operations impact on the group. About Olympia Industries Headquartered in Kuala Lumpur, Malaysia, Olympia Industries Berhad organizing and managing numbers forecast pools and public lotteries, operation of recreation clubs, investment holding and property development. Other activities include trading in securities, paint spraying of aluminium, other metal products and architectural products, letting of properties, maintaining and operating internet based transaction facilities and services, food and beverage business, events organizer and project management, travel and tours agency, servicing of oil and gas pipeline, asset management, money lending and stockbroking. Operations are carried out in Malaysia, Papua New Guinea and Singapore. The Company has incurred continuous losses in the past and has also been fined many times by Bursa Malaysia Securities for failing to maintain appropriate standards of corporate responsibility and accountability to the investing public. The company's June 30, 2006, balance sheet revealed a stockholders' deficit of MYR1,041,766,000 resulting from total liabilities of MYR2,035,268,000 exceeding total assets of MYR1,001,289,000. PROTON HOLDINGS: Unaware of GM's Reported Stake Buy Plan -------------------------------------------------------- An article appearing on the Star Online - BizWeek section dated September 9, 2006, stated that United States-based auto giant General Motors Corporation may be interested in taking up to 35% of equity in Proton Holdings, and may take an offer as early as (this week) to state controlled investment arm Khazanah Nasional Berhad. Proton Holdings, however, informed Bursa Malaysia Securities Berhad that the company is not aware of any information relating to issues highlighted in the article. Furthermore, the company said it is not in a position to confirm any issued for and on behalf of General Motors. At this stage, there are no significant developments or agreements that warrant announcement. However, Proton and its subsidiaries will continue to initiate and consider viable business opportunities, which will benefit and add value to the Company's interest. About Proton Holdings Headquartered in Selangor Darul Ehsan, Malaysia, Perusahaan Otomobil Nasional Berhad or Proton Holdings Berhad -- http://www.proton-edar.com.my/-- is engaged in manufacturing, assembling, trading and provision of engineering and other services in respect of motor vehicles and related products. Its other activities include property development, trading of steel and related products, engine and technologies research, development of automotive related technologies, investment holding, importation and distribution of motor vehicles, related spare parts and accessories, holds intellectual property, provides engineering consultancy, operates single make race series and carries out specific engineering contracts. The Group's operations are carried out in Malaysia, England, Australia, Socialist Republic of Vietnam and the United States of America. Proton was reported to be among Malaysia's worst-performing companies in 2005, after competition from foreign carmakers and a lack of new models lost the firm local market share and subsequently led it into a loss. It has since brought in a new chief, sold its loss-making MV Agusta motorbike firm and pledged to find a new technology partner. The Company has been under increasing pressure, with its share of domestic sales falling to 44% from 75% over the past decade. The Troubled Company Reporter - Asia Pacific reported on May 4, 2006, that Proton was expected to finalize a recovery plan and seal an alliance with a strategic partner by the end of this year. PROTON HOLDINGS: Mulls Partnership with Europe's PSA Peugeot ------------------------------------------------------------ Proton Holdings Bhd and Europe's PSA Peugeot Citroen have signed a letter of intent to study possible partnership that covers at least the South East Asian region, Bernama News reports. The LOI was signed between its managing director, Syed Zainal Abidin Syed Mohamed Tahir, and PSA Peugeot's chief executive officer Jean-Martin Folz on Sept 15, 2006, Bernama reveals. According to Reuters, the study is expected to take several months and will focus on areas including product development, manufacturing, quality initiatives, vendor development, contract assembly and distribution. For PSA Peugeot, the agreement is expected to increase its car sales in Malaysia and develop its business in the region, while Proton said it hoped to benefit from the technological know-how of a major carmaker and make the best use of its production capacity, Reuters says. Meanwhile, Forbes reports that the partnership could also serve as a foundation for developing Peugeot-Citroen's business in the Association of Southeast Asian Nations region. Forbes says that Proton is facing mounting competition and falling prices as the government opens the domestic market to foreign rivals under free trade deals. It said earlier this month it was reviewing its performance targets for its financial year. Proton's distribution network covers the United Kingdom, the Middle East, Australia and Southeast Asia. In Asia, PSA Peugeot is present in Japan and China and is building a new plant in China while doubling capacity of an existing facility. About Proton Holdings Headquartered in Selangor Darul Ehsan, Malaysia, Perusahaan Otomobil Nasional Berhad or Proton Holdings Berhad -- http://www.proton-edar.com.my/-- is engaged in manufacturing, assembling, trading and provision of engineering and other services in respect of motor vehicles and related products. Its other activities include property development, trading of steel and related products, engine and technologies research, development of automotive related technologies, investment holding, importation and distribution of motor vehicles, related spare parts and accessories, holds intellectual property, provides engineering consultancy, operates single make race series and carries out specific engineering contracts. The Group's operations are carried out in Malaysia, England, Australia, Socialist Republic of Vietnam and the United States of America. Proton was reported to be among Malaysia's worst-performing companies in 2005, after competition from foreign carmakers and a lack of new models lost the firm local market share and subsequently led it into a loss. It has since brought in a new chief, sold its loss-making MV Agusta motorbike firm and pledged to find a new technology partner. The Company has been under increasing pressure, with its share of domestic sales falling to 44% from 75% over the past decade. The Troubled Company Reporter - Asia Pacific reported on May 4, 2006, that Proton was expected to finalize a recovery plan and seal an alliance with a strategic partner by the end of this year. TENAGA NASIONAL: Says Noteholders May Redeem Bonds -------------------------------------------------- Tenaga Nasional has, on September 12, 2006, sent notices to the holder of 2.625% Guaranteed Exchangeable Bonds due 2007 via its trustee with regards to the intention to exercise its option to redeem the outstanding bonds as provided in the Indenture dated November 20, 2002. The notice has been made and determined in accordance with the provisions of the Indenture. The exchange price of the bonds is MYR8.10 per share. The closing price of the shares for a period of 30 consecutive trading days, the last of which occurred on September 11, 2006, which is not more than five days prior to the date of the notice is given to the Bondholders, is at least 115% of the exchange price. As provided by the Indenture, the right to exchange any bonds will expire at close of business on 6 October 2006. The redemption date has been set on October 13, 2006. The redemption price is 100% principal amount, plus accrued and unpaid interest and will become due and payable on the Redemption Date. Payment will be paid upon presentation and surrender of the Bonds to be redeemed to: JPMorgan Chase Bank, N.A. Worldwide Securities Services 4 New York Plaza, 15th floor New York, New York 10004, U.S.A. as the Trustee, Paying, Exchange and Transfer Agent. 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 its relatively high financial leverage and significant PPA obligations. TRADEWINDS CORP: Strikes Off Dormant Unit ----------------------------------------- Meridien Evergreen Sdn Bhd -- a wholly owned subsidiary of Tradewinds Resources Sdn Bhd, which in turn is a wholly owned subsidiary of Trasewinds Corporation -- was struck off from the Register of the Companies Commission of Malaysia on September 4, 2006. Meridien Evergreen was a dormant company and had not commenced operations since the date of incorporation. The Troubled Company Reporter - Asia Pacific reported on April 10, 2006, that the Board of Directors of Tradewinds Corporation passed a resolution to voluntarily wind up the Company's subsidiaries: * TCB OUE Cruises Sdn Bhd; * Malaysia Timber Exports Sdn Bhd; * TCB Services Sdn Bhd; * TCB Engineering Sdn Bhd; and * TCB Komputer Sdn Bhd. About Tradewinds Corp. Tradewinds Corporation Berhad -- formerly known as Pernas International Holdings Berhad -- is focused on a diverse range of business activities, which include plantations, hotels, manufacturing, and properties, and aims to be the premier investment company. The Group has entered into a restructuring scheme to settle debts, curb losses and streamline its operations. In 2004, the Group's debt was significantly restructured with the reorganization of the hotel businesses. The Company also unveiled a new logo after its change of name in July 2004, in line with its corporate re-branding exercise. The Group divested some non-core assets in line with its objective to streamline its businesses. In February 2005, the acquisitions of property development land to diversify earnings and improve cash flow were completed. Tradewinds' 2005 accounts revealed a net loss of MYR48.4 million. ===================== P H I L I P P I N E S ===================== ATLAS CONSOLIDATED: In Talks with MRI, Financing Deal Likely ------------------------------------------------------------ On September 14, 2006, South African firm MRI Resources AG Pty Ltd. disclosed that it was in talks with Atlas Consolidated Mining and Development Corp., for a possible financing deal, the Visayan Daily Star reports. The Visayan Daily cites Bill Jade, an official at MRI Resources who is currently taking part in an investment tour of the Philippines, as saying, the company has had initial "business talks" with Atlas. "Our investment will be focused in financing," Mr. Jade said, without elaborating, the Visayan Daily notes. The Troubled Company Reporter - Asia Pacific reported on September 12, 2006, that initial rehabilitation work is immediately commencing on Atlas Consolidated's copper mine in Toledo, Cebu, on the basis of confirmation from Crescent Asian Special Opportunities Portfolio of an additional US$13 million drawdown on its US$33 million funding package in favor of the company's 100%-owned subsidiary Carmen Copper Corporation, the operator of the Toledo Copper mine MRI has investments around the world, mainly in copper and zinc operations, the Visayan Daily notes. About Atlas Consolidated Headquartered in Mandaluyong City, Philippines, Atlas Consolidated Mining and Development Corporation was established through the merger of assets and equities of three Soriano controlled pre-war mines, the Masbate Consolidated Mining Company, IXL Mining Company and the Antamok Goldfields Mining Company. The Company is engaged in mineral and metallic mining and exploration that primarily produces copper concentrates and gold with silver and pyrites as major by-products. The Company's copper mining operations are centered in Toledo City, Cebu, where two open pit mines, two underground mines and milling complexes (concentrators) are located. The Cebu copper mine ceased operations in 1994. Activities after the shutdown were limited to safeguarding and maintaining the property, plant and equipment at the minesite. The closure has brought huge losses to the mining firm. In January 2004, Atlas decided to rehabilitate the company and its assets since copper and nickel prices have recovered. According to a TCR-AP report on June 1, 2006, Atlas reported a capital deficiency of PHP3.035 billion for the year ended December 31, 2005. Moreover the Company's auditor, Jaime F. Del Rosario, of Sycip Gorres Velayo, raised substantial doubt on the Company's ability to continue as a going concern. GLOBAL EQUITIES: Shares Trading Suspended on September 18 --------------------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on August 18, 2006, Global Equities, Inc., disclosed to the Philippine Stock Exchange that the Company, Nora A. Bitong, and Angping and Associates Securities Inc. executed a Memorandum of Agreement. Pursuant to the MOA, Global Equities will sign, transfer, and convey substantially all of its assets with a book value of PHP863.68 million -- as of June 30, 2006 -- in favor of Ms. Bitong to Global Equities and the assumption by Ms. Bitong of all the liabilities of Global Equities and its subsidiaries in the aggregate amount of PHP1.138 billion as of June 30, 2006, the TCR-AP noted. In a filing with the PSE dated September 15, 2006, Global Equities disclosed that the PSE sought additional information on the matter to apropriately inform Trading Participants and the investing public. Accordingly, trading of Global Equities' trading shares was suspended on September 18, 2006, pending submissions of the necessary clarification requested by the PSE. * * * Global Equities, Inc., was originally incorporated as La Suerte Gold Mining Corporation on April 20, 1970, primarily to engage in the exploration, exploitation, and development of mineral resources; to purchase, lease and otherwise acquire mining claims and concessions anywhere in the Philippines; and to carry on the business of mining, extracting, smelting, treating, and otherwise producing and dealing in metals and minerals of all kinds including all its products and by-products. The Company's total liabilities as of March 31, 2006, amounted to PHP1.12 billion, whereas its total assets were pegged at PHP871.04 million. Capital deficiency reached PHP242.28 million as of March 2006, from PHP231.52 million as of March 2005. GLOBAL EQUITIES: Changes Corporate Name and Primary Purpose ----------------------------------------------------------- Global Equities, Inc., discloses to the Philippine Stock Exchange that during the meeting of its Board of Directors on September 14, 2006, the Board approved: 1. the resignations of Mario A. Oreta and Edmundo S. Isidro as GEI Directors and the election of Bertrand C. Yao and Atty. David L. Kho as replacements. Messrs. Yao and Kho will serve as Directors for the ensuing year and until the election and qualification of their successors. The resignation of Messrs. Oreta and Isidro is not due to any disagreement with the company on any matter relating to GEI's operations, policies, or practices; 2. the amendments of the GEI Articles of Incorporation to: (a) change the corporate name to "GeoGrace Resources Philippines, Inc.;" and (b) change of primary purpose to mining and exploration of minerals. 3. the schedule of a GEI Special Stockholders Meeting on October 27, 2006, at 4:00 p.m. The venue will be disclosed at a later date. The record date of GEI stockholders entitled to notice of and to vote at the Meeting will be end of trading hours of the PSE on September 20, 2006. 4. the election of the Directors of these Committees: (a) Audit Committee: Edgardo del Fonso -- Chairman Florencio T. Mallare -- Member Delfin S. Castro, Jr. -- Member (b) Nomination Committee Edgardo del Fonso -- Chairman Arsenio C. Cabrera, Jr. -- Member David M. dela Cruz -- Member (c) Compensation Committee David M. dela Cruz -- Chairman Florencio T. Mallare -- Member Delfin S. Castro, Jr. -- Member The company also reveals that during the meeting, it is in discussion with various parties to enable GEI to enter into a joint venture/strategic partnership with entities holding mining claims in the Philippines which contain deposits of precious metals, base metals, ferrous and non-ferrous metals and other industrial minerals. GEI also notes that it is still conducting due diligence on the authenticity of mining claims. There has been no definitive agreement reached with third parties. * * * Global Equities, Inc., was originally incorporated as La Suerte Gold Mining Corporation on April 20, 1970, primarily to engage in the exploration, exploitation, and development of mineral resources; to purchase, lease and otherwise acquire mining claims and concessions anywhere in the Philippines; and to carry on the business of mining, extracting, smelting, treating, and otherwise producing and dealing in metals and minerals of all kinds including all its products and by-products. The Company's total liabilities as of March 31, 2006, amounted to PHP1.12 billion, whereas its total assets were pegged at PHP871.04 million. Capital deficiency reached PHP242.28 million as of March 2006, from PHP231.52 million as of March 2005. CE CASECNAN: S&P Raises Rating on Notes to BB- from B+ ------------------------------------------------------ On September 15, 2006, Standard & Poor's Ratings Services raised its issue rating on Philippines' CE Casecnan Water and Energy Co. Inc.'s US$171.5 million senior secured notes to 'BB-' from 'B+'. The outlook is stable. The rating upgrade reflects its improved financial risk profile, after significant debt amortization in 2005. CE Casecnan, an 85%-owned subsidiary of MidAmerican Energy Holdings Co. (MidAmerican Energy; A-/Stable/--), is the owner and operator of a combined water and hydroelectric power project on the island of Luzon in the Philippines. The project diverts water through 29 km of tunnels from the Casecnan and Denip rivers to a 150-megawatt (MW) power plant. The Philippine National Irrigation Administration uses the water for irrigation and sells the electricity to National Power Corp. (foreign currency BB-/Stable/--; local currency BB+/Stable/--), the national electric utility. The project started commercial operations on December 11, 2001, after experiencing substantial construction delays. Since then, however, it has been operating smoothly. The debt-service- coverage ratio (DSCR) is expected to improve significantly to above 2.0x in 2006 from 1.3x in 2005, as a significant amount of debt was amortized in 2005. The stable outlook on the rating reflects the outlook on the Philippine government, which provides a performance undertaking for the project. A downgrade in the rating on the sovereign, or any material adverse regulatory developments is likely to result in a downgrade in our rating on the project. Conversely, the rating may be raised if the sovereign rating is raised, and it is accompanied by continued satisfactory performance of the project. VITARICH CORP.: Files Petition for Corporate Rehabilitation ----------------------------------------------------------- In a filing with the Philipppine Stock Exchange, dated September 15, 2006, Vitarich Corporation disclosed that on that day, it has filed a petition before the Regional Trial Court of Malolos City, Bulacan entitled "In the matter of the Petition for Corporate Rehabilitation of Vitarich Corporation," docketed as Civil Case No. 592M-2006. Pursuant to the Implementing Guidelines for Companies Under Corporate Rehabilitation, which was dessiminated through a Memo for Brokers dated January 19, 2005, a trading suspension will be implemented on Vitarich's shares effective September 18, 2006. The PSE will inform Trading Participants and the investing public of further developments on the matter. About Vitarich Vitarich Corporation -- Http://www.vitarich.com -- is among the leading integrated producers and wholesalers of poultry and animal feed products in the Philippines. The Company also develops, produces and sells animal health products. It is dedicated to the poultry and feeds industry, committing all of its resources to the production of poultry products, including upstream production activities such as feed milling, and additional ventures where the company's knowledge of the poultry and feeds production process provides it with competitive advantage. In 1988, the Company entered into a joint venture agreement with Cobb-Vantress, Inc. and formed Breeder Master Inc., (formerly Phil-American Poultry Breeders, Inc.) to engage in the production of day-old parent stocks. Cobb-Vantress is 100% owned by Tyson Foods, Inc, the worlds largest chicken company. BMI is 80% owned by Vitarich and 20% owned by Cobb-Vantress. Despite the Company's expansion into other areas, its core business remains rooted in poultry. As of end-2001, contribution to gross sales of the Company's business groups was -- foods 62%, feeds 30%, and farms 8%. VITA is presently engaged in the manufacture and distribution of various poultry products like chicken, animal and aqua feeds, and day-old chicks, among others. * * * The Troubled Company Reporter - Asia Pacific reported on July 10, 2006, that after auditing Vitarich's 2005 annual report, Punongbayan & Araullo raised substantial doubt the Company's ability to continue as a going concern, due to significant losses for the past three years, including net losses worth PHP249.3 million in 2005 and PHP291.2 million in 2004, resulting in significant deficit amounting to PHP1.8 billion as of Dec. 31, 2005. The TCR-AP reported that Vitarich disclosed to the Philippine Stock Exchange that after the Company's annual stockholders' meeting held on June 30, 2006, the company planned to reduce losses by 50% to around PHP125 million in 2006 by continuously shifting the focus to hog and aqua from chicken and poultry feeds -- to break even. As at December 31, 2005, and 2004, the Company holds 100% interests in Philippines' Favorite Chicken, Inc., and Gromax, Inc., both domestic corporations, the TCR-AP noted. VITARICH CORP.: Posts PHP579.5 Mln Revenue for 2Q2006, 28% Down --------------------------------------------------------------- Vitarich Corporation posted PHP579.5 million consolidated sales revenue for the second quarter 2006, 28% lower than the same period last year. As of June 30, 2006, total sales was PHP1.2 billion, representing a 33% decrease over last year's sales of PHP1.7 billion. This can be attributed to the deliberate move of the company to reduce its poultry volume and continuously shifting its focus to its feeds business, Vitarich explains. As a result, Feeds business dominated the company's sales mix at 65% and poultry business contributed 35%. Relative to the decrease in sales, cost of goods sold correspondingly decreased by 34% at the end of the second quarter as compared than last year. Amidst the increasing costs of imported raw materials, the company still manages to post positive results of its operating income from continuing operation of PHP14.8 million for the first semester of 2006. Likewise, operating expenses were reduced by 33%, from PHP254 million of 2005 to PHP171 million, as a result of prudent spending coupled with continuous strategic activities implemented by the Company to further lower the level of operating expenses, Vitarich says. To boost revenues and minimize expenses, Vitarich will remain focused on instituting these measures: * Negotiation with local creditor banks for a more permanent restructuring agreement thereby having a longer period of repayment of the Company's loans and plan for negotiation with the other creditors; * Alternate sourcing of raw materials to produce competitive cost of finished products; * Continuous implementation of cost-reduction measures; and * Concentration on high margin products In view of these measures, Vitarich posted a net loss for the second quarter of PHP50 million, higher as compared from last year's losses of PHP38.2 million. As of the first semester of 2006, the Company registered a net loss after financing charges of PHP90.4 million, slightly lower than PHP104.5 million loss of the same period last year. Vitarich's total assets as of June 30, 2006, amounted to PHP3.4 billion which is almost within the December 2005 level. The 3% decrease in current assets was primarily due to the decrease of inventories by 7%, basically due to slow production levels and keeping the inventories on hand at a minimum, the company explains. Second quarter cash balance decreased to PHP56 million from PHP62.1 million as of the end of 2005. Likewise, prepaid expense and other current asset account of PHP20.6 million decreased by almost 5% from last year of PHP21.7 million. Stockholders' equity as of June is PHP129.6 million, lower than PHP220.0 million of 2005 basically due to the net effect of losses as of the second quarter. A full-text copy of Vitarich's financial results for the quarter ended June 30, 2006, is available for free at: http://www.pse.org.ph/html/ListedCompanies/pdf/2006/VITA_17Q_Jun 2006.pdf No Dividend Payment In 1995, Vitarich declared cash dividend of PHP0.10/share. For 1996 up to second quarter of 2006, the company did not declare any dividend because of its losses. About Vitarich Vitarich Corporation -- Http://www.vitarich.com -- is among the leading integrated producers and wholesalers of poultry and animal feed products in the Philippines. The Company also develops, produces and sells animal health products. It is dedicated to the poultry and feeds industry, committing all of its resources to the production of poultry products, including upstream production activities such as feed milling, and additional ventures where the company's knowledge of the poultry and feeds production process provides it with competitive advantage. In 1988, the Company entered into a joint venture agreement with Cobb-Vantress, Inc. and formed Breeder Master Inc., (formerly Phil-American Poultry Breeders, Inc.) to engage in the production of day-old parent stocks. Cobb-Vantress is 100% owned by Tyson Foods, Inc, the worlds largest chicken company. BMI is 80% owned by Vitarich and 20% owned by Cobb-Vantress. Despite the Company's expansion into other areas, its core business remains rooted in poultry. As of end-2001, contribution to gross sales of the Company's business groups was -- foods 62%, feeds 30%, and farms 8%. VITA is presently engaged in the manufacture and distribution of various poultry products like chicken, animal and aqua feeds, and day-old chicks, among others. * * * The Troubled Company Reporter - Asia Pacific reported on July 10, 2006, that after auditing Vitarich's 2005 annual report, Punongbayan & Araullo raised substantial doubt the Company's ability to continue as a going concern, due to significant losses for the past three years, including net losses worth PHP249.3 million in 2005 and PHP291.2 million in 2004, resulting in significant deficit amounting to PHP1.8 billion as of Dec. 31, 2005. The TCR-AP reported that Vitarich disclosed to the Philippine Stock Exchange that after the Company's annual stockholders' meeting held on June 30, 2006, the company planned to reduce losses by 50% to around PHP125 million in 2006 by continuously shifting the focus to hog and aqua from chicken and poultry feeds -- to break even. As at December 31, 2005, and 2004, the Company holds 100% interests in Philippines' Favorite Chicken, Inc., and Gromax, Inc., both domestic corporations, the TCR-AP noted. * RP Risks Downgrade if Power Energy Assets Sale Fails, S&P Says ---------------------------------------------------------------- The Philippines risks a downgrade in its credit outlook if the sale of the government's power plants fails to gather pace, Likha C. Cuevas of The Manila Times reports, citing Standard & Poor's Ratings Services, as saying. According to Agost Benard, S&P's credit analyst, the privatization in the electricity sector continues to suffer setbacks and delays, which prolongs the resolution of a major source of contingent debts in the government's books. "The outlook and rating 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, easing external vulnerability," Mr. Benard says. The Manila Times recounts that in July the government terminated its contract with YNN Pacific Consortium Inc., after it failed to pay US$227.54 million for the 600-megawatt Masinloc power plant in Zambales province. The paper relates that YNN failed to deliver the payment after its controlling shareholder, Ranhill Berhad, a Malaysian engineering firm, backed out because the plant lacked a reliable supply contract for its output. However, the Power Sector Assets and Liabilities Management Corp., the agency responsible for the sale of government-owned power plants, noted that the new wholesale electricity spot market provides a more suitable means for selling the plant's output, the Manila Times says. Thus, the government is working on the rebidding of the Masinloc facility within the year, ABS- CBN News says. The Manila Times further notes that the Philippines is also set to sell other power plants in the coming months, including the National Transmission Corp. The Manila Times also cites Finance Secretary Margarito B. Teves, as saying the government wants to accelerate the privatization process in accordance with its plan to cut the public sector and contingent debt. S&P says the constraints to the Philippines' credit-worthiness - - a fiscal deficit and political turbulence -- are starting to ease. Mr. Benard says the major strength of the Philippines' credit position -- its external liquidity -- is continuing to improve in excess of expectations. According to the Manila Times, S&P also said there is less political turmoil in the country and sees President Arroyo "increasingly likely" to finish the rest of her term without facing the type of "major upheavals that paralyze policymaking or seriously affect investor sentiment." S&P further said Pres. Arroyo is expected to remain a "hands-on President" with input into and control over policy direction, even with a proposed Charter change, which was set-aside for the meantime, Manila Times relates. * * * "Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured rating to the Republic of Philippines' 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." ================= S I N G A P O R E ================= CELATO (SINGAPORE): Commences Wind-Up Proceedings ------------------------------------------------- Cultural Day Limited filed on September 8, 2006, an application to wind up Celato (Singapore) Pte Ltd. In this regard, creditors are required to file their proofs of claim to the company's liquidator for them to share in any distribution the company will make. The liquidator can be reached at: Official Receiver The URA Centre East Wing #05-11/#06-11 45 Maxwell Road Singapore 069118 DREAMSCAPE CONSULTING: To Pay Dividend on September 25 ------------------------------------------------------ Dreamscape Consulting Pte Ltd will pay its first and final dividend to creditors on September 25, 2006. The company will pay 100% to all admitted claims. The liquidators can be reached at: Chee Yoh Chuang Lim Lee Meng RSM Chio Lim 18 Cross Street #08-01 Marsh & McLennan Centre Singapore 048423 EXABYTE CORPORATION: June 30 Balance Sheet Reveal Insolvency ------------------------------------------------------------ Exabyte Corporation has released its unaudited financial report for the second quarter ended June 30, 2006. For the six months ended June 30, 2006, the company's financial statement showed net revenue of US$41.1 million, a slight decrease compared to US$48.4 million recorded in the quarter ended June 30, 2005. Gross profit for the fiscal year ended June 30, 2006, also decreased by approximately US$4 million from last year's US$14.24 million to this year's US$10.5 million. The company also recorded net earnings of US$9.71 million for the period ending June 30, 2006, an improvement from net losses of US$2.35 million in the same quarter last year. As of June 30, 2006, the company's balance sheet reflected total assets of US$26.4 million, total liabilities of US$47.7 million, resulting in a shareholders' deficit of US$21.3 million. About Exabyte Corporation Exabyte Corporation -- http://www.exabyte.com/-- manufactures tape storage products. The Company's products back up and restore critical business information. In Asia Pacific, the company is headquartered in Singapore, with offices in Australia, China and Hong Kong. * * * The Company's balance sheet at Dec. 31, 2005, showed total assets of US$34,715,000, total liabilities US$66,675,000 and Series AA Convertible preferred stock of 38,931,000, resulting in a US$70,891,000 stockholders' deficit. EXABYTE CORPORATION: Inks Asset Purchase Agreement with Tandberg ---------------------------------------------------------------- Exabyte Corporation has entered into an Asset Purchase Agreement with Tandberg Data Corporation, according to a press release on August 30, 2006. Under the terms of Agreement, Tandberg will purchase substantially all Exabyte's assets in exchange for Exabyte's cash and the assumption of certain liabilities. The Agreement was approved by Exabyte's Independent Committee and ratified by its Board of Directors. The closing of the transaction is subject to the approval of Exabyte common shareholders at their meeting that is expected to occur on October or November 2006. Under certain circumstances, the Agreement may be terminated by either party if the transaction is not completed by December 31, 2006. The total cash consideration is expected to be approximately US$28 million plus certain transaction fees. The amount will fluctuate based on the actual balance outstanding under Exabyte's loan agreement with Wells Fargo Business Credit, Inc., which will be paid in full at closing. The payment to Exabyte at closing will be approximately US$22.5 million and will generally be equal to: 1) the balance outstanding on the Wells Fargo loan, which holds a first priority security interest in Exabyte's assets; 2) the repayment obligations, as restructured, under Exabyte's 10% Secured Convertible Subordinated Notes -- second priority security interest --, and notes payable to Imation Corp. -- third priority security interes --, Hitachi, Ltd. and Solectron Corporation, and; 3) Exabyte's transaction fees. It is a condition to the Agreement that the cash purchase proceeds to Exabyte will be used to make these payments. In addition, Tandberg will assume certain liabilities of Exabyte, consisting of substantially all accounts payable and accrued expenses, warranty obligations and obligations under purchased contracts, and new or restructured notes payable issued to Imation Corp. and Hitachi, Ltd., among others. Moreover, Tandberg required Exabyte to enter into Restructuring Agreements or Amendments with the holders of its Convertible Notes, Hitachi, Ltd., Solectron Corporation and Imation Corp. that provide for reductions in the amounts currently due under various debt instruments, the issuance of new or restructured notes payable in certain circumstances, and the waiver of existing and future events of default, if any. Following the closing of the acquisition, Exabyte will retain certain liabilities owed to creditors. However, Exabyte is not expected to have any significant assets remaining for the payment of these obligations. In addition, subsequent to closing there will be no assets available for distribution to holders of Exabyte's Series AA preferred stock or its common stock. Exabyte intends to liquidate and dissolve immediately after the closing of the transaction. "We are pleased to have reached an agreement for the combination of Exabyte and Tandberg Data," said Tom Ward, CEO of Exabyte. "The complimentary strengths of the two companies in the various geographic markets around the world will result in a truly global competitor in the storage industry. In addition, the combined product portfolios of the two companies will provide our customers with the full range of state-of-the-art, cost effective products and technologies to meet their needs. Finally, the operational synergies resulting from the combination will allow the new company to operate from an improved position of financial strength and stability in the future", Mr. Ward added. Exabyte's management is expected to continue with Tandberg and will focus on capitalizing on the opportunity for Exabyte's VXA and LTO technologies and products, as well as the integration of the two companies' operations and products. All employees of Exabyte will be offered positions with Tandberg. About Exabyte Corporation Exabyte Corporation -- http://www.exabyte.com/-- manufactures tape storage products. The Company's products back up and restore critical business information. In Asia Pacific, the company is headquartered in Singapore, with offices in Australia, China and Hong Kong. * * * The Company's balance sheet at Dec. 31, 2005, showed total assets of US$34,715,000, total liabilities US$66,675,000 and Series AA Convertible preferred stock of 38,931,000, resulting in a US$70,891,000 stockholders' deficit. FREESCALE SEMICON: Inks US$17.6 B Merger Deal with Equity Group ---------------------------------------------------------------- Freescale Semiconductor Inc. has entered into a definitive merger agreement to be acquired by a private equity consortium in a transaction with a total equity value of US$17.6 billion. The consortium is led by The Blackstone Group, and includes The Carlyle Group, Permira Funds and Texas Pacific Group. Under the terms of the merger agreement, the consortium will acquire all of the outstanding Class A and Class B shares of Freescale for US$40 per share in cash, representing a premium of approximately 36% over Freescale's average closing share price during the 30 trading days ended Sept. 8, 2006. The company first acknowledged it was in discussions with third parties regarding a possible transaction on Sept. 11, 2006. The board of directors of Freescale has unanimously approved the merger agreement and resolved to recommend that Freescale's stockholders adopt the agreement. There is no financing condition to the obligations of the private equity consortium to consummate the transaction, and equity and debt commitments for the full amount of the merger consideration have been received. It is currently anticipated that substantially all of the company's outstanding Notes will either be tendered for or repaid. The merger is subject to customary conditions to closing, including the affirmative vote of Freescale stockholders and requisite antitrust approvals. The merger agreement contains a provision under which Freescale may solicit alternative proposals from third parties during the next 50 calendar days. In addition, Freescale may, at any time, subject to the terms of the merger agreement, respond to unsolicited proposals. If the company accepts a superior proposal, a break-up fee would be payable by the company. There can be no assurance of any alternative proposal. Goldman, Sachs & Co. serves as financial advisor to Freescale and provided a fairness opinion in connection with the transaction. Wilson Sonsini Goodrich & Rosati Professional Corporation serves as legal adviser to Freescale in connection with the transaction. Credit Suisse Securities (USA) LLC, Citigroup Corporate and Investment Banking and Blackstone Corporate Advisory Services act as financial advisors to the private equity consortium. Skadden, Arps, Slate, Meagher & Flom LLP serves as legal adviser to the private equity consortium in connection with the transaction. About Freescale Semiconductor Based in Austin, Texas, Freescale Semiconductor, Inc. (NYSE:FSL) (NYSE:FSL.B) -- http://www.freescale.com/-- designs and manufactures embedded semiconductors for the automotive, consumer, industrial, networking and wireless markets. Freescale became a publicly traded company in July 2004. The company has design, research and development, manufacturing or sales operations in more than 30 countries, including Australia, China, Hong Kong, India, Japan, Korea, Malaysia, Singapore and Taiwan. The company's 7-1/8% Senior Notes due 2014 carry Moody's Investors Service's Ba1 rating. FREESCALE SEMICON: Moody's Holds Ba1 Rating on US$850 Mil. Notes ---------------------------------------------------------------- Moody's Investors Service affirmed the Ba1 corporate family and senior unsecured ratings of Freescale Semiconductor Inc. and changed the outlook to negative from stable. The negative outlook reflects possible credit deterioration in light of the recent announcement by the Company that it is currently in discussions with parties related to a possible business transaction. Moody's believes the potential for a leveraged buyout of Freescale has increased. Moody's notes that it is unlikely Freescale's ratings would remain at the Ba1 rating level following a leveraged buyout. The company's ratings would likely be placed on review for possible downgrade if the company were to make a definitive announcement involving a leveraged transaction. Conversely, the ratings could be affirmed and outlook stabilized in the event the company were to announce that it has decided not to pursue such a transaction, presuming the company does not undertake an alternative leveraging event. According to Gregory Fraser, CFA, Vice President-Senior Analyst, since Freescale is currently rated below investment grade by Moody's, the change of control provision contained in the note indenture is currently operative. Accordingly, a leveraged buyout would require the company to repurchase the senior unsecured notes at the option of the noteholders at a price of 101% of face value plus accrued and unpaid interest. These ratings were affirmed: * Corporate Family Rating - Ba1 * Senior Unsecured Guaranteed Notes with various maturities totaling $850 million - Ba1 * Speculative Grade Liquidity Rating - SGL-1 The ratings outlook is negative. About Freescale Semiconductor Based in Austin, Texas, Freescale Semiconductor, Inc. (NYSE:FSL) (NYSE:FSL.B) -- http://www.freescale.com/-- designs and manufactures embedded semiconductors for the automotive, consumer, industrial, networking and wireless markets. Freescale became a publicly traded company in July 2004. The company has design, research and development, manufacturing or sales operations in more than 30 countries, including Australia, China, Hong Kong, India, Japan, Korea, Malaysia, Singapore and Taiwan. The company's 7-1/8% Senior Notes due 2014 carry Moody's Investors Service's Ba1 rating. L&M GROUP: Enters into Sale and Purchase Agreement with CSC ----------------------------------------------------------- On September 18, 2006, L&M Group Investments Limited and its subsidiary L&M Geotechnic Pte Ltd entered into a Conditional Sale and Purchase Agreement with CSC Holdings Limited for the sale of all the shares in the capital of L&M Foundation Specialist Pte Ltd and certain equipment and machinery owned by L&M Geotechnic Pte Ltd As reported by the Troubled Company Reporter - Asia Pacific, on July 14, 2006, the company has planned to enter into an exclusive negotiation to sell its subsidiaries to CSC Holdings Limited. The purchase amount is SG$17,295,000. The completion of the proposed sale is conditional upon the conditions that should be fulfilled not later than December 2006, which are: i.) the completion of due diligence exercises; ii.) the filing of certain tax returns; iii.) the completion of inspection of the equipment and machinery of L&M Geotechnic which are to be sold; iv.) the approval by the respective board of directors of the Purchaser, L&M Geotechnic and L&M Foundation; and v.) the necessary waivers, approvals and consents of the Singapore Exchange Securities Trading Limited to complete the transactions contemplated under the Agreement. About L&M Group Investments Founded in 1971 and listed on the Stock Exchange of Singapore since 1984, L&M Group Investments Ltd delivers its specialized engineering and construction services through two divisions -- Geotechnic and Structural Systems. Geotechnic Division undertakes the design and construction of geotechnical engineering and heavy foundation works, the sale of building products and rental of engineering equipment. Structural Systems Division undertakes the design and construction of structural and civil engineering works. * * * In December 2005, the Company sought to appoint a judicial manager to revive the Company's operations. The High Court of Singapore placed the Company under judicial management on January 11, 2006, under Bob Low Sie of Messrs Bob Low Sie & Company. The Judicial Management Order will remain in force until January 9, 2007. SPH MEDIAWORKS: Pays Dividend to Unsecured Creditors ---------------------------------------------------- SPH Mediaworks Limited has paid its second and final dividend to unsecured creditors on September 6, 2006. The amount paid was 3.17% of all admitted claims. The liquidator can be reached at: Peter Chay Fook Yuen c/o KPMG 16 Raffles Quay #22-00 Hong Leong Building Singapore 048581 =============== T H A I L A N D =============== BANK OF AYUDHYA: Lowers Loan Goal for '06 Due to Econ. Slowdown --------------------------------------------------------------- Bank of Ayudhya disclosed on September 15, 2006, that it would cut its loan growth target this year due to a drop in investment as economic growth slowed, Agence France Press reports. The Bank of Ayudhya had aimed to lend THB36 billion or US$966 million this year, up 8% from last year. "Investment slowed from late in second quarter and that should last to early in the fourth quarter, dragging our loan growth down," AFP quoted bank president Pongpinit Tejagupta as saying. Moreover, borrowers preferred the bond market where the central bank raised interest rates 13 times between August 2004 and June this year, Mr. Tejagupta said. Ayudhya, which had outstanding loans of THB434 billion at the end of June, expected lending to pick up in the fourth quarter after a new general election and a fall in oil prices. AFP recounts that BAY announced in May that renewed tax payments and high oil prices would hurt its third-quarter earnings, but aimed for earnings growth of 10% this year to a record THB6.6 billion. Bank of Ayudhya reported a net profit of THB3.5 billion in the first six months ended June 30, 2006. * * * Headquartered in Bangkok, Thailand, Bank of Ayudhya Public Co. Ltd. -- http://www.krungsri.com/-- provides a full range of banking and financial services. The bank offers corporate and personal lending, retail and wholesale banking; international trade financing asset management; and investment banking services to customers through its branches. It has branches in Hong Kong, Vietnam, Laos, and the Cayman Islands. Moody's Investors Service gave Bank of Ayudha an E+ bank financial strength rating. Fitch Ratings gave the bank a 'BB+' Long-Term Foreign Currency Issuer Default Rating, a 'B' Short-Term Foreign Currency Rating, a 'BB' Foreign Currency Subordinated Debt Rating, and a 'D' Individual Rating. PHELPS DODGE: Moody's Confirm Ratings After Inco Bid Termination ---------------------------------------------------------------- Moody's Investors Service confirmed Phelps Dodge's Baa2 senior unsecured debt rating and revised its outlook to positive. The outlook was stable prior to the ratings being placed under review. The confirmation and outlook revision follow the announcement that Phelps Dodge has terminated its combination agreement with Inco. This concludes Moody's review of Phelps Dodge's ratings, which were placed under review for possible downgrade on June 26, 2006. These ratings were confirmed: -- Junior Preferred Stock Shelf, Confirmed at (P)Ba1 -- Junior Subordinated Shelf, Confirmed at (P)Baa3 -- Preferred Stock Shelf, Confirmed at (P)Ba1 -- Preferred Stock 2 Shelf, Confirmed at (P)Ba1 -- Senior Unsecured Regular Bond/Debenture, Confirmed at Baa2 -- Senior Unsecured Shelf, Confirmed at (P)Baa2 The Baa2 rating reflects Phelps Dodge's position as the world's second largest producer of copper and molybdenum, its solid capital structure, and its strong cash flow in the currently very robust markets for copper and molybdenum. However, the rating also considers the substantial amount of cash being returned to shareholders via special dividends, a still relatively high cost structure, exposure to cyclical metals markets through two closely related metals -- copper and molybdenum, and a demonstrated appetite for potentially highly levered acquisitions. The revision in outlook to positive reflects the very strong fundamentals in the copper and molybdenum markets and Moody's expectation that Phelps Dodge's financial performance will continue to be strong over the next twelve to fifteen months. However, any upgrade consideration of the rating will be tempered by the current program of shareholder returns, recent aggressive acquisition activities, and uncertainty about the future direction these activities may take. Phelps Dodge is a Phoenix based producer of copper and molybdenum and had revenues in 2005 of US$7.1 billion. In Latin America, Phelps Dodge's operations are in Chile, Peru, Colombia, Venezuela and Ecuador, among others. Phelps Dodge -- http://www.phelpsdodge.com/-- is among the world's largest producers of molybdenum, molybdenum-based chemicals, and manufacturer of wire and cable products. Phelps Dodge has operations in Thailand, China, the Philippines and Japan, among others. * ALIXPARTNERS LLP: Moody's Rates US$435MM Credit Facility at B1 ---------------------------------------------------------------- Moody's Investors Service assigned a B1 first time, rating to AlixPartners LLP proposed US$435 million senior secured credit facility (US$385 million term loan and US$50 million revolver) and a B1 corporate family rating. The ratings for the secured credit facility reflect both the overall probability of default of the company, to which Moody's assigns a PDR of B2, and a loss given default of LGD 3 for the credit facility. The rating outlook is stable. On August 3, 2006, AlixPartners entered into an agreement whereby Hellman & Friedman LLC and AlixPartners' managing directors and employees will acquire a majority equity stake in the company in a leveraged recapitalization. Pursuant to the recapitalization, AlixPartners Holdings, Inc., an entity controlled by the company's founder, agreed to sell 80.1% of the AlixPartners' partnership units. The transaction values AlixPartners at approximately $872 million, before fees and expenses. The transaction is expected to close mid October. The transaction is expected to be funded with a US$385 million term loan, US$296 million of cash equity contributed by the sponsor and US$218 of rollover equity from the founder and management. The ratings reflect strong business diversity which helps to mitigate exposure to cyclicality, a relatively small revenue base compared to the company's rated peer group, significant pro forma adjustments to historical financial statements and concerns about employee retention. The ratings are supported by a track record of strong organic growth, stable segment revenues across economic cycles, a high proportion of variable expenses, as well as solid pro forma credit metrics. The B1 rating on the senior secured credit facility reflects an LGD 3 loss given default assessment as this facility is secured by a pledge of substantially all of assets of AlixPartners and its domestic subsidiaries and there is an immaterial amount of junior non-debt obligations. In the case of pledges of foreign stock, the collateral package is limited to 65% of the voting stock and 100% of the non-voting stock of certain of its first tier foreign subsidiaries. The senior secured credit facility is guaranteed by substantially all the domestic subsidiaries of the company. Mooody's assigned these ratings: -- Corporate Family Rating: B1; -- Probability-of-default rating: B2; -- US$385 million senior secured 7-year term loan: B1 (LGD 3, 34%); and -- US$50 million senior secured 6-year revolver: B1 (LGD 3, 34%). The stable outlook anticipates moderate revenue and EBITA growth over the next 12 to 18 months. Free cash flow from operations is expected to be used to pay down debt. Strong revenue growth accompanied by steady EBITA margins could lead to a change in outlook to positive. The ratings could be upgraded if debt to EBITDA and EBITA to interest are expected to be sustained at under 3.5 times and over 3 times, respectively. A loss of key personnel or a downturn in revenues and/or utilization rates in major lines of business could lead to a negative outlook. The ratings could be downgraded if debt to EBITDA and EBITA to interest are expected to be sustained at over 5 times and under 1.6 times, respectively. A significant debt financed acquisition could also pressure the ratings. Founded in 1981, AlixPartners is a leading international business consulting and advisory firm, offering the following five areas of consulting services: (i) financial advisory, (ii) performance improvement, (iii) turnaround and restructuring, (iv) case management and (v) information technology. AlixPartners has approximately 530 employees operating in 12 offices across the United States, Europe and Asia. Revenue for the twelve-month period ending July 31, 2006, was US$369.9 million. * ALIXPARTNERS LLP: S&P Assigns BB- Corporate Credit Rating ----------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB-' corporate credit rating and stable outlook to Southfield, Mich.-based business consulting firm AlixPartners LLP. At the same time, Standard & Poor's assigned our 'BB-' bank loan rating and recovery rating of '3' to AlixPartners' US$435 million senior secured credit facility, indicating an expectation of meaningful (50%-80%) recovery of principal in the event of a payment default. The credit facility consists of a US$50 million revolving credit facility due 2012 and a US$385 million term loan B due 2013. Proceeds of the transaction will be used to finance the acquisition of a majority interest in AlixPartners by Hellman & Friedman LLC. Pro forma for the transaction, total debt outstanding was US$385 million as of July 31, 2006. "The ratings reflect AlixPartners' dependence on highly mobile senior consulting professionals, the competitive market for consulting services, and some business cycle exposure, especially as the company gains scale," said Standard & Poor's credit analyst Andy Liu. These factors are only partially offset by the company's somewhat flexible cost structure, strong margins, and potential for good discretionary cash flow. AlixPartners specializes in corporate turnaround and restructuring, financial advisory, performance improvement, case management, and IT transformation. * BOND PRICING: For the Week 18 September to 22 September 2006 -------------------------------------------------------------- Issuer Coupon Maturity Price ------ ------ -------- ----- AUSTRALIA & NEW ZEALAND ----------------------- Ainsworth Game 8.000% 12/31/09 1 APN News & Media Ltd 7.250% 10/31/08 5 A&R Whitcoulls Group 9.500% 12/15/10 7 Arrow Energy NL 10.000% 03/31/08 1 Babcock & Brown Pty Ltd 8.500% 12/31/49 8 Becton Property Group 9.500% 06/30/10 1 BIL Finance Ltd 8.000% 10/15/07 9 Capital Properties NZ Ltd 8.500% 04/15/07 8 Capital Properties NZ Ltd 8.500% 04/15/09 7 Capital Properties NZ Ltd 8.000% 04/15/10 8 Cardno Limited 9.000% 06/30/08 4 CBH Resources 9.500% 12/16/09 1 Chrome Corporation Ltd 10.000% 02/28/08 1 Clean Seas Tuna Ltd 9.000% 09/30/08 1 Djerriwarrh Investments Ltd 6.500% 09/30/09 4 EBet Limited 10.000% 11/29/06 25 Evans & Tate Ltd 8.250% 10/29/07 1 Fletcher Building Ltd 7.900% 10/31/06 8 Fletcher Building Ltd 8.300% 10/31/06 8 Fletcher Building Ltd 8.600% 03/15/08 8 Fletcher Building Ltd 7.800% 03/15/09 7 Fletcher Building Ltd 8.850% 03/15/10 8 Fletcher Building Ltd 7.550% 03/15/11 7 Fernz Corp Ltd 8.560% 10/15/06 8 Futuris Corporation Ltd 7.000% 12/31/07 2 Hy-Fi Securities Ltd 7.000% 08/15/08 8 Hy-Fi Securities Ltd 8.750% 08/15/08 10 Hutchison Telecoms Australia 5.500% 07/12/07 1 IMF Australia Ltd 11.500% 06/30/10 1 Infrastructure & Utilities NZ Ltd 8.500% 09/15/13 8 Infratil Ltd 8.500% 11/15/15 8 Kagara Zinc Ltd 9.750% 05/06/07 5 Kiwi Income Properties Ltd 8.000% 06/30/10 1 Minerals Corporation Ltd 10.500% 09/30/07 1 Nuplex Industries Ltd 9.300% 09/15/07 8 Pacific Print Group Ltd 10.250% 10/15/09 11 Primelife Corporation 9.500% 12/08/06 1 Primelife Corporation 10.000% 01/31/08 1 Salomon SB Australia 4.250% 02/01/09 8 Sapphire Securities Ltd 7.410% 09/20/35 7 Sapphire Securities Ltd 9.160% 09/20/35 9 Silver Chef Ltd 10.000% 08/31/08 1 Software of Excellence 7.000% 08/09/07 1 Speirs Group Ltd. 10.000% 06/30/49 50 Tower Finance Ltd 8.750% 10/15/07 8 Tower Finance Ltd 8.650% 10/15/09 8 TrustPower Ltd 8.300% 09/15/07 8 TrustPower Ltd 8.300% 12/15/08 8 TrustPower Ltd 8.500% 09/15/12 8 TrustPower Ltd 8.500% 03/15/14 8 Vision Systems Ltd 9.000% 12/15/08 3 CHINA ----- Shang Urban Cons 5.180% 07/27/20 70 KOREA ----- Korea Electric Power 7.950% 04/01/96 55 MALAYSIA -------- Aliran Ihsan Resources Bhd 5.000% 11/29/11 1 AHB Holdings Bhd 5.500% 03/06/07 1 Asian Pac Bhd 4.000% 12/21/07 1 Berjaya Land Bhd 5.000% 12/30/09 1 Bumiputra-Commerce 2.500% 07/17/08 1 Camerlin Group Bhd 5.500% 07/15/07 1 Crescendo Corporation Bhd 3.000% 08/25/07 1 Eastern & Oriental Hotel 8.000% 07/25/11 1 Eden Enterprises (M) Bhd 2.500% 12/02/07 1 EG Industries Bhd 5.000% 06/16/10 1 Equine Capital Bhd 3.000% 08/26/08 1 Fountain View Development Sdn Bhd 3.500% 11/03/06 1 Greatpac Holdings Bhd 2.000% 12/11/08 1 Gula Perak Bhd 6.000% 04/23/08 1 Hong Leong Industries Bhd 4.000% 06/28/07 1 Huat Lai Resources Bhd 5.000% 03/28/10 1 I-Berhad 5.000% 04/30/07 1 Insas Bhd 8.000% 04/19/09 1 Kamdar Group Bhd 3.000% 11/09/09 1 Kosmo Technology Industrial Bhd 2.000% 06/23/08 1 Kretam Holdings Bhd 1.000% 08/10/10 1 Kumpulan Jetson 5.000% 11/27/12 1 LBS Bina Group Bhd 4.000% 12/29/06 1 LBS Bina Group Bhd 4.000% 12/31/07 1 LBS Bina Group Bhd 4.000% 12/31/08 1 LBS Bina Group Bhd 4.000% 12/31/09 1 Malaysian Government 4.837% 07/15/25 4 Media Prima Bhd 2.000% 07/18/08 1 Mithril Bhd 8.000% 04/05/09 1 Mithril Bhd 3.000% 04/05/12 1 Mutiara Goodyear Development Bhd 2.500% 01/15/07 1 Nam Fatt Corporation Bhd 2.000% 06/24/11 1 Pantai Holdings Bhd 5.000% 07/31/07 2 Pelikan International Corp Bhd 3.000% 04/08/10 1 Poh Kong Holdings Bhd 3.000% 01/20/07 1 Prinsiptek Corporation Bhd 3.000% 11/20/06 1 Puncak Niaga Holdings Bhd 2.500% 11/18/16 1 Ramunia Holdings 1.000% 12/20/07 1 Rashid Hussain Bhd 3.000% 12/23/12 1 Rashid Hussain Bhd 0.500% 12/24/12 1 Rhythm Consolidated Bhd 5.000% 12/17/08 1 Silver Bird Group Bhd 1.000% 02/15/09 1 Southern Steel 5.500% 07/31/08 1 Tanah Emas Corporation Bhd 2.000% 12/09/06 1 Tenaga Nasional Bhd 3.050% 05/10/09 1 Tradewinds Plantations Bhd 3.000% 02/28/16 1 WCT Land Bhd 3.000% 08/02/09 1 Wah Seong Corp 3.000% 05/21/12 3 YTL Cement Bhd 4.000% 11/10/15 1 SINGAPORE --------- Sengkang Mall 8.000% 11/20/12 1 Structural System Singapore 11.000% 06/30/07 1 Tampines Assets 6.000% 12/07/06 1 Tincel Ltd 7.400% 06/13/11 1 ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Asia Pacific is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Nolie Christy Alaba, Valerie Udtuhan, Francis James Chicano, Catherine Gutib, Tara Eliza Tecarro, 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 ***