/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/061012.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 Thursday, October 12, 2006, Vol. 9, No. 203 Headlines A U S T R A L I A & N E W Z E A L A N D ACETHORPE PTY: Court Issues Wind-Up Order ASSETEC MANAGEMENT: Members and Creditors to Meet on October 18 APPLIED INSIGHT: Creditors' Proofs of Claim Due on October 31 AUSSIE TOOL: Enters Voluntary Liquidation AUSTCORP BUILDERS: Creditors' Proofs of Claim Due on October 17 AWB LIMITED: New Services Agreement with AWBI Still Negotiated BFS CANBERRA: Prepares to Declare Third Dividend on October 13 CARCOR PTY: Members and Creditors to Hear Wind-Up Report CHURCHILL & COMPANY: Names Richards and Eden as Liquidators DETRIS PTY: Appoints Roderick Sutherland as Liquidator ENJOY PTY: Inability to Pay Debts Prompts Wind-Up EVEREADY CONCRETE: Final Meeting Scheduled on October 18 FELTEX CARPETS: Unions Want the Same Feltex CBA Conditions FITOUT TEAM: Members Opt to Liquidate Business FORD AUSTRALIA: Cuts Production Capacity on Current Trends GREEN'S WHG: Court Appoints Joint Liquidators GOURMET GRAIN: Creditors Must Prove Debts by October 18 HARRIS ROOFING: Names Sule Arnautovic as Liquidator JONES FAMILY: Liquidator to Present Wind-Up Report JUSTICE FREIGHTERS: Enters Voluntary Wind-Up KEPA DESIGN: Creditors Proofs of Claim Due on November 24 KIOZ PTY: Members and Creditors to Receive Wind-Up Report LAINGS ELECTRICAL: Creditors Must Prove Debts by October 13 LIGHTWAVE YACHTS: Members Opt for Voluntary Liquidation MACAULEY HOLDINGS: Undergoes Members' Voluntary Wind-Up MACLAW NO. 269: Members Decide to Close Business MJ CONSTRUCTION: Creditors' Proofs of Debt Due on October 31 ML LTD: Court Appoints Joint Liquidators NBA CONSTRUCTIONS: Placed Under Voluntary Liquidation NO COMMISSION: Enters Voluntary Liquidation PEABODY ENERGY: Australian Court Approves Excel Acquisition PROFESSIONAL FINANCIAL: To Distribute Third Dividend on Oct. 13 QUALITY CIVIL: Creditors' Proofs of Debt Due on October 31 ROBERT INGRAM: Enters Liquidation Proceedings SALT INVESTMENTS: Sole Member Decide to Shut Down Firm SEABREEZE GROVE: Liquidation Commenced on September 19 SLC INVESTMENT: Set to Declare Third Dividend on October 13 STOCKFORD (DAWES): To Declare Third Dividend on October 13 STOCKFORD (MORTON): Will Declare Third Dividend on October 13 TOOWOOMBA RSL: Liquidator Joiner to Give Wind-Up Report TRAPDOOR SECURITY: Supreme Court Orders Wind-Up V & C HOLDINGS: Final Meeting Slated for October 18 WESTWING INVESTMENTS: Liquidator to Present Wind-Up Report WINDWHISTLE MOTORS: Appoints Trevor James Croy as Liquidator C H I N A & H O N G K O N G AMJ TRANSPORTATION: Court to Hear Wind-Up Petition on Nov. 8 ASIAN SERVICES: Liquidator Bullani Steps Aside BETONSPORTS: Has Not Paid Workers After Closure CHIT LEE: Liquidators Cease to Act for Company COUNTRY FORD: Appoints Joint Liquidators CYBER RESOURCES: Contributories & Creditors Hold Final Meetings ELECTRONIC RENTALS: Creditors' Proofs of Claim Due on Nov. 6 FANTA MACHINERY: Agnew and Lo Ceases to Act for the Company FONDA OIL: Court Appoints Joint Liquidators GLOBAL POWER: Wants Court Approval on White & Case as Counsel GLOBAL POWER: Taps Bayard Firm as Bankruptcy Co-Counsel HANESBRANDS INC: Moody's Confirms Ba3 Corporate Family Rating HOWELL ENGINEERING: Court Favors Wind-Up INTERNATIONAL PAPER: Will Trade Assets with Votorantim Celulose MACKINSEY FINANCIAL: Members' Final Meeting Slated for Nov. 7 MEL APPEL: Creditors Must Prove Debts by November 8 NEW CHINA PROPERTY: Members and Creditors to Hold Final Meeting OCEAN GRAND: S&P Withdraws Ratings PETROLEOS DE VENEZEULA: Sends Discounted Fuel to Nicaragua PETROLEOS DE VENEZUELA: Halts Gasoline Export to Cuba & the U.S. SOUTHERN AIRLINES: Airbus May Have to Pay for Late Deliveries SUPRA ENGINEERING: Court Orders Wind-Up TAT HUNG: Final Meeting Slated for November 6 WING FU: To Pay Preferential Dividend on October 13 YUE FUNG: Receives Wind-Up Order from Court I N D I A CANARA BANK: Board to Review Sept. 30, 2006 Financial Results CENTRAL BANK OF INDIA: Crisil Assigns "AA" to INR700-Crore Bond CENTURION BANK: Kerala Bank Workers Strike to Protest LKB Merger ICICI BANK: CRISIL Gives Credit Opinions to Assignment Program I N D O N E S I A BANK INTERNASIONAL: Launches 'Cash Bonus' & 'Cash Back' Program KALTIM PRIMA: IndoCoal Issues US$900-Million Floating Rate Notes GNC CORP: Reports Strong Same-Store Sales for Third Quarter 2006 PARKER DRILLING: Moody's Assigns Loss-Given-Default Ratings PERRY ELLIS: Moody's Assigns Loss-Given-Default Rating J A P A N BANCO BRADESCO: To Increase Capital Stock by BRL1.2 Billion FORD MOTOR: Starting Buyout Offers Next Week FORD MOTOR: Latch, Drivetrain Probs Spur Recall of 145,000 Cars KIYO BANK: Fitch Affirms D/E Individual Rating Following Merger SAPPORO HOLDINGS: Canadian Gov't. Okays Tender Offer for Sleeman SOFTBANK CORP: Fitch Affirms EUR500MM Unsecured Notes At 'BB-' K O R E A KOREA DEVELOPMENT: Capital Almost Doubled in Hungarian Unit KOREA EXCHANGE: Extends Online Banking Services to China * Rating Agencies Say Nuclear Test Won't Impact South's Ratings * Nuclear Test Unlikely to Affect South's Ratings, Moody's Says P H I L I P P I N E S EQUITABLE PCI: BSP Rejects TMEQ's Disqualification Request EXPORT & INDUSTRY BANK: G. Cunanan Elected as Independent Dir. LAFAYETTE MINING: Faces Suit Over Albay Mining Operations LAFAYETTE MINING: Seeks Additional Funds for Rapu-Rapu Project PACIFIC PLANS: Court of Appeals Remands Case to Trial Court PHILIPPINE LONG DISTANCE: Expects Improved 3rd Quarter Results PHILIPPINE LONG DISTANCE: Opens Ventus Libertad Call Center SAN MIGUEL CORP: Moody's Withdraws Ba1 Foreign Currency Rating S I N G A P O R E H.M.C.S. PTE: Creditors' Proofs of Debt Due on November 8 SEA CONTAINERS: To Strike Compromise Agreement with Creditors PETROLEO BRASILEIRO: LatAm's Second Most Sustainable Company PETROLEO BRASILEIRO: Confirms Light Oil Find in Santos Basin SEAGATE TECH: Inks Distribution Agreement with SED International STANDARD AERO: Moody's Confirms B2 Corporate Family Rating VELOOCO GENERAL: Creditors Must Prove Claims by October 20 S R I L A N K A SRI LANKA TELECOM: Fitch Affirms 'BB-' Issuer Default Ratings T H A I L A N D NFC FERTILIZER: Bankruptcy Court Ends Subsidiary's Rehab. Plan - - - - - - - - ============================================ A U S T R A L I A & N E W Z E A L A N D ============================================ ACETHORPE PTY: Court Issues Wind-Up Order ----------------------------------------- On September 14, 2006, the Supreme Court has issued an order to wind up Acethorpe Pty Ltd. Subsequently, William James Hamilton was appointed as official liquidator. The Official Liquidator can be reached at: William James Hamilton c/o Hamiltons Level 17, 25 Bligh Street Sydney, New South Wales 2000 Australia Telephone: 9232 6611 Facsimile: 9232 6166 ASSETEC MANAGEMENT: Members and Creditors to Meet on October 18 --------------------------------------------------------------- The members and creditors of Assetec Management Solutions Pty Ltd, which was placed under liquidation, will meet on October 18, 2006, at 11:00 a.m., to: -- receive the final receipts and payments from the liquidator; -- receive formal notice of the end of the administration; and -- discuss other business that may be considered with foregoing. The Liquidator can be reached at: Paul Burness Worrells Solvency & Forensic Accountants Level 5, 15 Queen Street Melbourne, Victoria 3000 Australia Telephone:(03) 9613 5500 Facsimile:(03) 9614 3233 Web site: http://www.worrells.net.au APPLIED INSIGHT: Creditors' Proofs of Claim Due on October 31 ------------------------------------------------------------- On September 20, 2006, shareholders of Applied Insight Ltd appointed Peri Micaela Finnigan and John Trevor Whittfield as joint and several liquidators. Consequently, the liquidators required the creditors to file proofs of claim by October 31, 2006. Failure to prove their claims will exclude a creditor from sharing in any distribution the company will make. The Joint Liquidators can be reached at: Peri Micaela Finnigan John Trevor Whittfield McDonald Vague Chartered Accountants P.O. Box 6092, Wellesley Street Post Office Auckland, New Zealand Telephone:(09) 303 0506 Facsimile:(09) 303 0508 AUSSIE TOOL: Enters Voluntary Liquidation ----------------------------------------- At an extraordinary general meeting held on September 14, 2006, the members of Aussie Tool Repairs & Hire Pty Ltd agreed that the company must commence a voluntary wind-up of its operations. Subsequently, Stewart William Free and Raymond George Tolcher were appointed as joint and several liquidators at the creditors' meeting held that same day. The Joint and Several Liquidators can be reached at: Stewart William Free Raymond George Tolcher Lawler Partners Chartered Accountants 763 Hunter Street Newcastle, West New South Wales 2302 Australia AUSTCORP BUILDERS: Creditors' Proofs of Claim Due on October 17 --------------------------------------------------------------- Austcorp Builders Pty Ltd, which is subject to a deed of company arrangement, will declare the first and final dividend on October 18, 2006. Creditors are required to formally file their proofs of debt by October 17, 2006, to share in the distribution of dividend. The Deed Administrator can be reached at: Martin J. Green GHK Green Krejci Level 13, 1 Castlereagh Street Sydney, New South Wales 2000 Australia AWB LIMITED: New Services Agreement with AWBI Still Negotiated -------------------------------------------------------------- Wheat growers are unlikely to see the details of a new service agreement between AWB Limited and AWB International for at least another month, The West Australian reports. As reported in the Troubled Company Reporter - Asia Pacific on September 1, 2006, there has been increasing media and industry speculation regarding the services agreement between AWB and AWBI for the operation and management of the Single Desk. According to the TCR-AP, AWBI Chairman Ian Donges asserted that the only contentious issue seems to be the break fee clause in the services agreement. Mr. Donges said that the agreement reflects normal commercial business practices and the current break fee clause is designed to reimburse AWB for investments made in pool management systems. Mr. Donges noted that AWBI will be renegotiating the services agreement with AWB to reflect the recent corporate changes to increase the separation between the two. "Any break fee clause would be negotiated by AWBI and [the AWB] Board and would take into account the Constitutional requirement to maximize returns to growers," he added. The West Australian relates that the services agreement, which is currently being renegotiated, will be back-dated to October 1, 2006, and will apply to the 2006-2007 pool. AWB plans to put the 2006-2007 pools into a trust to protect pool participants from potential liabilities resulting from the Cole Inquiry into Iraq kick-backs, the paper says. AWB chairman Brendan Stewart did not disclose a deadline to finalize the new agreement. But Mr. Donges said it is expected to be made public by "early November," The Australian relates. 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. BFS CANBERRA: Prepares to Declare Third Dividend on October 13 -------------------------------------------------------------- BFS Canberra Pty Ltd, which is subject to a deed of company arrangement, will declare the third dividend for its creditors on October 13, 2006, to the inclusion of those who were able to prove their debts on October 3, 2006. The Deed Administrator can be reached at: Mark A. Korda KordaMentha Level 24, 333 Collins Street Melbourne, Victoria 3000 Australia CARCOR PTY: Members and Creditors to Hear Wind-Up Report -------------------------------------------------------- Members and creditors of Carcor Pty Ltd will hold a final meeting on October 19, 2006, at 11:00 a.m., to receive Liquidator Arnautovic's report on the company's wind-up proceedings and property disposal exercises. The Troubled Company Reporter - Asia Pacific reported that the Company commenced a wind-up of its operations on June 29, 2006. The Liquidator can be reached at: Sule Arnautovic Jirsch Sutherland Chartered Accountants Level 2, 84 Pitt Street Sydney, New South Wales 2000 Australia Telephone:02 9233 2111 Facsimile:02 9233 2144 CHURCHILL & COMPANY: Names Richards and Eden as Liquidators ----------------------------------------------------------- Bruce Carlaw Richards and James Gregory Eden were appointed as liquidators of Churchill & Company Ltd on September 9, 2006. The Liquidators can be reached at: Bruce Carlaw Richards James Gregory Eden c/o Staples Rodway, Level Three 109-113 Powderham Street, New Plymouth New Zealand Telephone:(06) 758 0956 DETRIS PTY: Appoints Roderick Sutherland as Liquidator ------------------------------------------------------ At a general meeting held on September 15, 2006, the members of Detris Pty Ltd resolved to voluntarily wind up the company's operations and Roderick Mackay Sutherland was appointed as liquidator. The appointment of liquidator was confirmed at the creditors' meeting held later that day. The Liquidator can be reached at: Roderick Mackay Sutherland Jirsch Sutherland Chartered Accountants Level 2, 84 Pitt Street Sydney, New South Wales 2000 Australia Telephone: 02 9233 2111 Facsimile: 02 9233 2144 ENJOY PTY: Inability to Pay Debts Prompts Wind-Up ------------------------------------------------- The members and creditors of Enjoy Pty Ltd held meetings on September 14, 2006, and passed a special resolution to wind up the company's operations due to its inability to pay debts when they fall due. In this regard, Geoffrey McDonald was appointed as liquidator. The Liquidator can be reached at: Geoffrey Mcdonald c/o Hall Chadwick Level 29, 31 Market Street Sydney, New South Wales 2000 Australia EVEREADY CONCRETE: Final Meeting Scheduled on October 18 -------------------------------------------------------- Members and creditors of Eveready Concrete Contractors Pty Ltd, which is in liquidation, will hold a final meeting on October 18, 2006, at 10:00 a.m., to hear Liquidator Fielding's report on the company's wind-up proceedings and property disposal exercises. The Troubled Company Reporter - Asia Pacific, reported that the Company declared the first and final dividend on November 9, 2005. The Liquidator can be reached at: Andrew Fielding PPB Chartered Accountants Level 4, 31 Sherwood Road Toowong, Queensland Australia FELTEX CARPETS: Unions Want the Same Feltex CBA Conditions ---------------------------------------------------------- On October 11, 2006, the National Distribution Union, and Engineering, Printing and Manufacturing Union began two days of talks with Godfrey Hirst over the fate of the remaining Feltex staff, the New Zealand Herald reports. The Troubled Company Reporter - Asia Pacific recently reported Godfrey Hirst's disclosure that it will not offer re-employment to 134 staff at the Upper Riccarton plant in Christchurch. The TCR-AP noted that the union representing Feltex workers will be talking about avenues for action. It was also disclosed that all redundancy packages are capped at NZ$15,000, despite there being a number of workers who have completed 20 or 30 years employment with Feltex. However, according to stuff.co.nz, the remaining workers are under threat of reduced terms and conditions under a new collective agreement with Godfrey Hirst. But, the Web site pointed out, the unions are determined to get a decent deal. "Because of Feltex's size and stature its collective agreement is a benchmark for the industry," NZPA cites National Distribution Union national secretary Laila Harre as saying. "Now Godfrey Hirst has signaled its intention to reduce that benchmark and that will impact further than just this one company -- we're going to fight to stop that happening." About Feltex Headquartered in Auckland, New Zealand, and established over 50 years ago, Feltex Carpets Limited -- http://www.feltex.com/-- has built a reputation for being one of the world's leading manufacturers of superior-quality carpet. The Feltex operation includes a wool scouring plant, six spinning mills, three tufted carpet mills, a woven carpet mill and offices in New Zealand, Australia and the United States. The Company also leads the way in exports, with customers throughout South East Asia, Japan, the United States, the Middle East and other key world markets. Feltex listed on the local stock exchange in mid-2004 in a NZ$254-million initial public offering -- the year's largest in New Zealand. However, the Company fell short of its prospectus earnings projections, reporting a net profit of NZ$11.8 million in the fiscal year to June 30, 2005, about half the forecast NZ$23.9 million. The Company has struggled with losses and earnings downgrades, flogging sales, and a dipping share price. The Company closed plants and in October 2005, axed 235 jobs, mostly in Australia, and by 2006, abandoned merger talks with Australian competitor Godfrey Hirst after it suggested that the apparent "white knight" investor was more interested in a reverse takeover. Godfrey Hirst later sold out its nearly 9% stake in the Company. In February 2006, Feltex reported a first-half after tax loss of NZ$11.83 million, down almost 200% compared with the net loss in the previous year. ANZ Bank placed the Company in receivership on September 22, 2006, and named Colin Nicol, Peter Anderson and Kerryn Downey, of McGrathNicol+Partners, as receivers and managers. The TCR-AP reported on October 4, 2006, that Godfrey Hirst acquired Feltex as a going concern, including its assets and undertakings in New Zealand, Australia, and the United States Proceeds of the sale will be used to ease the company's NZ$128- million debt to ANZ Bank. FITOUT TEAM: Members Opt to Liquidate Business ---------------------------------------------- Members of Fitout Team Pty Ltd convened on September 14, 2006, and resolved to voluntarily liquidate the company's business. Robyn Erskine and Peter Goodin were consequently appointed as liquidators. The Liquidators can be reached at: Robyn Erskine Peter Goodin Brooke Bird & Co 471 Riversdale Road Hawthorn East, 3123 Australia FORD AUSTRALIA: Cuts Production Capacity on Current Trends ---------------------------------------------------------- Ford Australia is facing many of the same problems as its U.S. parent thus capacity cuts are unavoidable on current trends, The Australian said citing a statement made by the company's president Tom Gorman. Mr. Gorman said structural changes to the market made it essential to "right-size" production and refused to rule out redundancies at the company's Broadmeadows factory, the report reveals. If demand doesn't pick up, Mr. Gorman told The Australian that the company "is going to have to take action according to what [it needs] to do to be successful." The Australian says higher petrol prices caused American and Australian buyers to shun larger vehicles. The paper also relates that Ford in the U.S. recently accelerated plans to cut 45,000 jobs and close 16 factories. The Australian noted that sales of Ford's locally built Falcon large sedan decreased by 19% in 2006 while its Territory SUV has slumped 18%. This year demand for large cars has fallen 21%, compounding a decade of decline that has seen the segment's market share cut in half, The Australian continued. Ford forecasts a 14% share for the segment in 2007, with total demand steady at 965,000 vehicles. Mr. Gorman said Ford's problems in the U.S. meant there was more pressure than ever on Ford Australia to perform, and its 23% slide in after-tax profits for 2005 to AU$148 million had been a "significant blow". "We were unable to deliver what they were supposed to do in 2005," Mr. Gorman disclosed. Mr. Gorman is however optimistic that the next generation Falcon, codenamed Orion and still two years away, would have the potential for volume exports after a AU$105 million injection of government money in May, The Australian relates. The Orion, Mr. Gorman revealed, would be engineered for left-hand drive and target the Middle East, where Holden and Toyota ship the bulk of their exports. * * * The Troubled Company Reporter - Asia Pacific reported on September 1, 2006, that Fitch Ratings downgraded the Issuer Default Rating of Ford Motor Company and Ford Motor Credit Company to 'B' from 'B+'. Fitch also lowered the 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. Fitch also downgraded Ford Motor Co. of Australia's ratings with a Negative Rating Outlook: -- Issuer Default Rating to 'B' from 'B+'; and -- Senior debt to 'B+' from 'BB-'. GREEN'S WHG: Court Appoints Joint Liquidators --------------------------------------------- On September 18, 2006, the High Court at Whangarei appointed Henry David Levin and Barry Phillip Jordan as joint and several liquidators of Green's WHG Construction Ltd. In this regard, creditors of the company are required to prove their debts to the liquidators by October 16, 2006, for them to participate in any distribution the company will make. The Troubled Company Reporter - Asia Pacific reported that the Commissioner of Inland Revenue filed a liquidation petition against the company on July 25, 2006. The petition was heard on September 18, 2006. The Joint Liquidators can be reached at: Henry David Levin Barry Phillip Jordan c/o Sarah Fitzgerald McCallum Petterson, Level Eleven Forsyth Barr Tower, 55-65 Shortland Street Auckland, New Zealand GOURMET GRAIN: Creditors Must Prove Debts by October 18 ------------------------------------------------------- Bruce McCallum and Barry Jordan was appointed by the High Court at Wellington as joint and several liquidators of Gourmet Grain and Seeds Ltd. Creditors are required to prove their debts by October 18, 2006. Failure to present proofs of debt will exclude a creditor from sharing in any distribution the company will make. The Joint Liquidators can be reached at: Bruce McCallum Barry Jordan c/o Louise Craig McCallum Petterson Level Eight, The Todd Building 95 Customhouse Quay (P.O. Box 3156) Wellington, New Zealand Telephone:(04) 499 7796 Facsimile:(04) 499 7784 HARRIS ROOFING: Names Sule Arnautovic as Liquidator --------------------------------------------------- Members of Harris Roofing Services Pty Ltd held a meeting on September 14, 2006, and agreed to liquidate the company's business and appoint Sule Arnautovic as liquidator. The appointment of liquidator was confirmed at the creditors' meeting held later that day. The Liquidator can be reached at: Sule Arnautovic Jirsch Sutherland Chartered Accountants Level 2, 84 Pitt Street Sydney, New South Wales 2000 Australia Telephone:(02) 9233 2111 Facsimile:(02) 9233 2144 JONES FAMILY: Liquidator to Present Wind-Up Report -------------------------------------------------- Jones Family Holdings Pty Ltd, which is in liquidation, will hold a final meeting for its members and creditors on October 18, 2006, at 1:30 p.m. During the meeting, Liquidator McVeigh will present the company's wind-up report and property disposal exercises. The Liquidator can be reached at: Dean R. Mcveigh Foremans Business Advisors (Southern) Pty Ltd Suite 8, 56-60 Bay Road Sandringham, Victoria 3191 Australia JUSTICE FREIGHTERS: Enters Voluntary Wind-Up -------------------------------------------- At a meeting held on September 15, 2006, the members and creditors of Justice Freighters Pty Ltd decided to wind up the company's operations. Accordingly, R. A. Sutcliffe was appointed as liquidator. The Liquidator can be reached at: R. A. Sutcliffe Ground Floor, 192-198 High Street Northcote, Victoria 3070 Australia Telephone:(03) 9482 6277 KEPA DESIGN: Creditors Proofs of Claim Due on November 24 --------------------------------------------------------- On September 14, 2006, shareholders of Kepa Design Ltd appointed Iain McLennan as liquidator. Accordingly, Mr. McLennan fixed November 24, 2006, as the last day for the company's creditors to prove their claims. The Liquidator can be reached at: Iain McLennan McLennan Associates Insolvency Advisers Level Two, 26 Wyndham Street Auckland, New Zealand Telephone:(09) 303 9512 Facsimile:(09) 303 0508 KIOZ PTY: Members and Creditors to Receive Wind-Up Report --------------------------------------------------------- A final meeting for the members and creditors of Kioz Pty Ltd will be held on October 18, 2006, at 1:00 p.m. At the meeting, Liquidator Dean R. McVeigh will present the company's wind-up report and property disposal exercises. According to the Troubled Company Reporter - Asia Pacific, the members of Kioz resolved to voluntarily wind up the company's operations on October 19, 2005. The Liquidator can be reached at: Dean R. Mcveigh Foremans Business Advisors (Southern) Pty Ltd Suite 8, 56-60 Bay Road Sandringham, Victoria 3191 Australia LAINGS ELECTRICAL: Creditors Must Prove Debts by October 13 ----------------------------------------------------------- Laings Electrical Pty Ltd, which is in liquidation, will declare a final dividend to ordinary unsecured creditors on November 17, 2006. Creditors are required to prove their debts by October 13, 2006, to be able to share in the distribution of dividend. The Liquidator can be reached at: M. G. Mccann Grant Thornton Level 4, Grant Thornton House 102 Adelaide Street Brisbane, Queensland 4000 Australia Telephone:(07) 3222 0200 Facsimile:(07) 3222 0446 LIGHTWAVE YACHTS: Members Opt for Voluntary Liquidation ------------------------------------------------------- On September 15, 2006, members of Lightwave Yachts Pty Ltd resolved to place the company under voluntary liquidation. Subsequently, Jason Bettles and Susan Carter were appointed as liquidators. The Liquidators can be reached at: Jason Bettles Susan Carter Worrells Solvency & Forensic Accountants Level 6, 50 Cavill Avenue Surfers Paradise, Queensland 4217 Australia MACAULEY HOLDINGS: Undergoes Members' Voluntary Wind-Up ------------------------------------------------------- During a general meeting held on September 14, 2006, the members of Macauley Holdings Pty Ltd resolved to voluntarily wind up the company's operations. Subsequently, Geoffrey Charles Ridgeway and Russell Graeme Peake were appointed as joint and several liquidators. The Joint and Several Liquidators can be reached at: Geoffrey Charles Ridgeway Russell Graeme Peake Jenkins Peake & Co Chartered Accountants PO Box 1570, Geelong 3220 Australia Telephone:(03) 5223 1000 Facsimile:(03) 5221 4938 MACLAW NO. 269: Members Decide to Close Business ------------------------------------------------ On September 14, 2006, the members of Maclaw No. 269 Pty Ltd agreed to shut down the company's business operations. Accordingly, Geoffrey Charles Ridgeway and Russell Graeme Peake were appointed as joint and several liquidators. The Joint and Several Liquidators can be reached at: Geoffrey Charles Ridgeway Russell Graeme Peake Jenkins Peake & Co Chartered Accountants PO Box 1570, Geelong 3220 Australia Telephone:(03) 5223 1000 Facsimile:(03) 5221 4938 MJ CONSTRUCTION: Creditors' Proofs of Debt Due on October 31 ------------------------------------------------------------ On September 19, 2006, John Trevor Whittfield and Boris van Delden were appointed as joint and several liquidators of MJ Construction Ltd. Accordingly, the joint liquidators required the company's creditors to prove their debts by October 31, 2006, or be excluded from sharing in a distribution the company will make. The Joint Liquidators can be reached at: John Trevor Whittfield Boris van Delden McDonald Vague, P.O. Box 6092 Wellesley Street Post Office, Auckland New Zealand Telephone:(09) 303 0506 Facsimile:(09) 303 0508 Web site: http://www.mvp.co.nz ML LTD: Court Appoints Joint Liquidators ---------------------------------------- On September 7, 2006, the High Court at Auckland appointed Iain Bruce Shephard and Christine Margaret Dunphy as joint and several liquidators in the liquidation of ML Ltd. According to the Troubled Company Reporter - Asia Pacific, on September 28, 2006, the Court heard the liquidation petition filed against the company by the Commission of Inland Revenue. The Liquidators can be reached at: Iain Bruce Shephard Christine Margaret Dunphy Shephard Dunphy Limited Level Two, Zephyr House 82 Willis Street, Wellington New Zealand Telephone:(04) 473 6747 Facsimile:(04) 473 6748 NBA CONSTRUCTIONS: Placed Under Voluntary Liquidation ----------------------------------------------------- On September 15, 2006, members of NBA Constructions Pty Ltd agreed to voluntarily wind up the company's operations. At the creditors' meeting held later that day, Paul Vartelas was appointed as liquidator. The Liquidator can be reached at: Paul Vartelas B. K. Taylor & Co. 8th Floor, 608 St Kilda Road Melbourne Australia NO COMMISSION: Enters Voluntary Liquidation ------------------------------------------- On September 22, 2006, shareholders of No Commission Property Sales Rotorua Ltd resolved to liquidate the company's business and appointed John Richard Palairet as liquidator. The Liquidator can be reached at: John Richard Palairet Palairet Pearson 86 Station Street (P.O. Box 944) Napier, New Zealand Telephone:(06) 835 3364 Facsimile:(06) 835 3388 PEABODY ENERGY: Australian Court Approves Excel Acquisition ----------------------------------------------------------- On October 10, 2006, the Federal Court of Australia formally approved Peabody Energy Corp.'s acquisition of Excel Coal Ltd., Colin M. Kellaher of Dow Jones Newswires, reports. Excel is one of the largest independent coal companies in Australia. The report says Excel shareholders approved the sale last week for AU$9.50 per share, which cleared the way for Peabody to assume management of Excel on October 11. "[W]ith the new operations and late-stage growth projects, we look forward to tripling our Australian production at a time when demand from the world's largest coal exporting country is growing dramatically," Peabody President and Chief Executive Officer Gregory H. Boyce says. The deal values Excel at about US$1.5 billion, plus US$300 million in assumed debt, Dow Jones reveals. On July 11, 2006, the Troubled Company Reporter reported that Standard & Poor's Ratings Services revised its outlook on Peabody to stable from positive after the company's announcement that it has entered into an agreement to acquire Excel for US$1.34 billion plus the assumption of US$190 million of debt. About Peabody Headquartered in St. Louis, Missouri, Peabody Energy Corp., (NYSE: BTU) -- http://www.peabodyenergy.com/-- is the world's largest private-sector coal company, with 2005 sales of 240 million tons of coal and U.S.US$4.6 billion in revenues. Its coal products fuel 10% of all U.S. and 3% of worldwide electricity. The company has coal operations in Australia. * * * Standard & Poor's Rating Services assigned its 'BB' rating to Peabody Energy Corp.'s proposed US$2.75 billion of senior unsecured credit facilities, consisting of a US$1.8 billion revolving credit facility and US$950 million Term Loan A. The rating outlook is stable. Moody's Investors Service assigned a Ba1 senior unsecured rating to Peabody Energy Corp.'s US$1.8 billion Revolving Credit Facility and US$950 million Term Loan A. At the same time, Moody's raised the senior unsecured rating on the company's existing senior unsecured notes to Ba1 from Ba2. Moody's also affirmed Peabody's Ba1 corporate family rating and its SGL-1 Speculative Grade Liquidity rating. The rating outlook remains negative. Fitch Ratings lowered Peabody's Issuer Default Rating as well as its US$650 million senior notes due 2013 and its US$250 million senior notes due 2016 to 'BB+' from 'BBB-' and rated the company's new US$2.75 billion senior unsecured bank facility 'BB+'. PROFESSIONAL FINANCIAL: To Distribute Third Dividend on Oct. 13 --------------------------------------------------------------- Professional Financial Planners Pty Ltd, which is subject to a deed of company arrangement, will declare the third dividend for its creditors on October 13, 2006. Creditors who were unable to prove their claims on October 3, 2006, will be excluded from the distribution. The Deed Administrator can be reached at: Mark A. Korda KordaMentha Level 24, 333 Collins Street Melbourne, Victoria 3000 Australia QUALITY CIVIL: Creditors' Proofs of Debt Due on October 31 ---------------------------------------------------------- Quality Civil Constructions Pty Ltd, which is in liquidation, will declare the first dividend for its creditors on October 31, 2006. To be included in the company's distribution of dividend, creditors must submit proofs of debt by October 31, 2006. The Liquidator can be reached at: Peter Hicks Forsythes Level 5, 175 Scott Street Newcastle, New South Wales 2300 Australia ROBERT INGRAM: Enters Liquidation Proceedings --------------------------------------------- At an extraordinary general meeting held on September 13, 2006, the members of Robert Ingram Electrical Services Pty Ltd agreed to voluntarily liquidate the company's business. Creditors appointed Andrew Stewart Reed Hewitt as liquidator at a separate meeting held later that day. The Liquidator can be reached at: Andrew Stewart Reed Hewitt Grant Thornton Recovery (Vic) Pty Ltd Rialto Towers, Level 35 South Tower, 525 Collins Street Melbourne, Victoria 3000 Australia SALT INVESTMENTS: Sole Member Decide to Shut Down Firm ------------------------------------------------------ On September 15, 2006, the sole member of Salt Investments Pty Ltd resolved to voluntarily wind up the company's operations and appointed Brian McMaster and Jack James as liquidators. The Liquidators can be reached at: Brian McMaster Jack James KordaMentha Level 11, 37 St Georges Terrace Perth, Western Australia Australia SEABREEZE GROVE: Liquidation Commenced on September 19 ------------------------------------------------------ On September 19, 2006, John Michael Gilbert was appointed as liquidator for Seabreeze Grove Ltd. In this regard, Mr. Gilbert required the company's creditors to prove their debts by October 17, 2006, or be excluded from sharing in any distribution the company will make. The Liquidator can be reached at: John Michael Gilbert c/o C & C Strategic Limited Private Bag 47-927 Ponsonby, Auckland New Zealand Telephone:(09) 376 7506 Facsimile:(09) 376 6441 SLC INVESTMENT: Set to Declare Third Dividend on October 13 ----------------------------------------------------------- SLC Investment Services Pty Ltd, which is subject to a deed of company arrangement, will declare the third dividend for its creditors on October 13, 2006. Creditors who were unable to prove their claims on October 3, 2006, will be excluded from sharing in the company's dividend distribution. The Deed Administrator can be reached at: Mark A. Korda KordaMentha Level 24, 333 Collins Street Melbourne, Victoria 3000 Australia STOCKFORD (DAWES): To Declare Third Dividend on October 13 ---------------------------------------------------------- A third dividend will be declared on October 13, 2006, for the creditors of Stockford Dawes Pty Ltd, which is subject to a deed of company arrangement. Creditors who were unable to file their proofs of debt by October 3, 2006, will be excluded from sharing in the company's dividend distribution. The Deed Administrator can be reached at: Mark A. Korda KordaMentha Level 24, 333 Collins Street Melbourne, Victoria 3000 Australia STOCKFORD (MORTON): Will Declare Third Dividend on October 13 ------------------------------------------------------------- Stockford (Morton) Pty Ltd, which is subject to a deed of company arrangement, will declare the third dividend for its creditors on October 13, 2006. Creditors who were not able to prove their debts by October 3, 2006, will be excluded from sharing in the dividend distribution. The Deed Administrator can be reached at: Mark A. Korda KordaMentha Level 24, 333 Collins Street Melbourne, Victoria 3000 Australia TOOWOOMBA RSL: Liquidator Joiner to Give Wind-Up Report ------------------------------------------------------- Members and creditors of Toowoomba RSL Club Ltd, which is in liquidation, will hold a final meeting on October 18, 2006, at 10:00 a.m., to hear the report of Liquidator Matthew L. Joiner on the company's wind-up proceedings and property disposal exercises. The Liquidator can be reached at: Matthew L. Joiner c/o JCJ Partners Pty Ltd Level 4, 370 Queen Street Brisbane, Queensland 4000 Australia TRAPDOOR SECURITY: Supreme Court Orders Wind-Up ----------------------------------------------- On September 14, 2006, the Supreme Court of New South Wales issued an order to wind up Trapdoor Security Pty Ltd and appointed William James Hamilton as liquidator. The Official Liquidator can be reached at: William James Hamilton c/o Hamiltons Level 17, 25 Bligh Street Sydney, New South Wales 2000 Australia Telephone: 9232 6611 Facsimile: 9232 6166 V & C HOLDINGS: Final Meeting Slated for October 18 --------------------------------------------------- V & C Holdings Pty Ltd, which is in liquidation, will hold a final meeting for its members and creditors on October 18, 2006, at 12:30 p.m. The members and creditors will receive the company's wind-up report and property disposal exercises at the meeting. The Liquidator can be reached at: Dean R. Mcveigh Foremans Business Advisors (Southern) Pty Ltd Suite 8, 56-60 Bay Road Sandringham, Victoria 3191 Australia WESTWING INVESTMENTS: Liquidator to Present Wind-Up Report ---------------------------------------------------------- Westwing Investments Pty Ltd will hold a final meeting for its members and creditors on October 18, 2006, at 10:30 a.m. At the meeting, the members and creditors will hear the company's wind-up report and property disposal exercises. According to the Troubled Company Reporter - Asia Pacific, the Company commenced a wind-up of its operations on January 23, 2006. The Liquidator can be reached at: Simon Read PPB Chartered Accountants Level 1, 5 Mill Street Perth, Western Australia Australia WINDWHISTLE MOTORS: Appoints Trevor James Croy as Liquidator ------------------------------------------------------------ On September 14, 2006, shareholders of Windwhistle Motors Ltd resolved to liquidate the company's business and appointed Trevor James Croy as liquidator. The Liquidator can be reached at: Trevor James Croy P.O. Box 582, Ashburton New Zealand Telephone:(03) 308 8353 Facsimile:(03) 308 1535 ================================ C H I N A & H O N G K O N G ================================ AMJ TRANSPORTATION: Court to Hear Wind-Up Petition on Nov. 8 ------------------------------------------------------------ A wind-up petition filed against AMJ Transportation Ltd will be heard before the High Court of Hong Kong on November 8, 2006, at 9:30 a.m. Cheung Ka Yin presented the petition with the Court on September 8, 2006. The Solicitors for the Petitioner can be reached at: Joe Poon 34/F., Hopewell Centre 183 Queen's Road East Wanchai, Hong Kong ASIAN SERVICES: Liquidator Bullani Steps Aside ---------------------------------------------- Alessandra Maria Emilia Bullani ceased to act as liquidator of Asian Services Fashion & Garments Co. Ltd on September 28, 2006. According to the Troubled Company Reporter - Asia Pacific, members of the Company convened for their final meeting on September 28, 2006, to receive Liquidator Bullani's account on the company's wind-up proceedings. The former Liquidator can be reached at: Alessandra Maria Emilia Bullani Via Gaggini da Bissone 16 6901 Lugano Switzerland BETONSPORTS: Has Not Paid Workers After Closure ----------------------------------------------- BetOnSports has not paid its employees after it announced the closure of its Costa Rica and Antigua units in August, Inside Costa Rica reports. Inside Costa Rica relates that BetOnSports was expected to make the payment within weeks of closing. The company has said it would make good on its commitment to pay its workers. However, almost two months have passed and no payment was made to the workers, Inside Costa Rica notes. Yohan Camacho, one of the former workers of BetOnSports, told La Nacion, "As far as I know we are all in the same situation. No one has been paid. When asked, we are told that no one knows when payment will happen." Some of the workers have decided to buy out assets in lieu of payment as BetOnSports continues to liquidate. Others are considering legal options, Inside Costa Rica says, citing Mr. Camacho. According to Inside Costa Rica, former employees earned well working at BetOnSports and finding another equal paying job is difficult or impossible. Some workers got into debt, buying vehicles, real estate and running up their credit cards and now are struggling to meet their obligations. Franciso Conejo, the legal representative of BetOnSports, told Inside Costa Rica that the firm will make good and pay everyone but is asking for patience. BetOnSports is asking for 90 days and it hasn't even been 60 days since the closure, Inside Costa Rica says, citing Mr. Conejo. The Ministerio de Trabajo, which has been in contact with BetOnSports, confirmed to Inside Costa Rica that the company has intentions to pay. The Ministerio de Trabajo told Inside Costa Rica that it has not received any complaints from former workers. * * * BetonSports is an online gaming company publicly trading on the London Stock Exchange, but has no operations in the United Kingdom. Around 80% of the company's business operates in the United States, where sports' betting is illegal except in the State of Nevada. The group also has operations in Asia, specifically China. CHIT LEE: Liquidators Cease to Act for Company ---------------------------------------------- Kennic Lai Hang Lui and Lau Wu Kwai King Lauren ceased to act as liquidators of Chit Lee Holdings Ltd on August 24, 2006. The former Liquidators can be reached at: Kennic Lai Hang Lui Lau Wu Kwai King Lauren 5/F, Ho Lee Commercial Building 38-44 D'Aguilar Street Central, Hong Kong COUNTRY FORD: Appoints Joint Liquidators ---------------------------------------- Members of Country Ford Ltd appointed Alison Wong Lee Fung Ying and Wong Kwok Man as joint and several liquidators on September 26, 2006. The Joint Liquidators can be reached at: Alison Wong Lee Fung Ying Wong Kwok Man Grant Thornton Certified Public Accountants 13/F, Gloucester Tower The Landmark, 11 Pedder Street Central, Hong Kong CYBER RESOURCES: Contributories & Creditors Hold Final Meetings --------------------------------------------------------------- Cyber Resources and Technology Ltd will hold final meetings for its contributories and creditors on November 9, 2006. At each meeting, Liquidator Kelvin Edward Flynn will present an account of the company's wind-up proceedings and property disposal exercises. The Troubled Company Reporter - Asia Pacific, reported that the Company declared a second dividend for its creditors on April 21, 2006. The Liquidator can be reached at: Kelvin Edward Flynn 5/F, Allied Kajima Building 138 Gloucester Road, Wanchai Hong Kong ELECTRONIC RENTALS: Creditors' Proofs of Claim Due on Nov. 6 ------------------------------------------------------------ Creditors of Electronic Rentals (Hong Kong) Ltd are required to file their proofs of claim to Liquidators Thomas Andrew Corkhill and Iain Ferguson Bruce by November 6, 2006. Failure to prove their debts will exclude a creditor from sharing in any distribution the company will make. The Liquidators can be reached at: Thomas Andrew Corkhill Iain Ferguson Bruce 8/F, Gloucester Tower The Landmark 15 Queen's Road Central Hong Kong FANTA MACHINERY: Agnew and Lo Ceases to Act for the Company ----------------------------------------------------------- On September 11, 2006, Lo Kin Ching, Joseph and Dermot Agnew ceased to act as liquidators of Fanta Machinery Ltd. The former Liquidators can be reached at: Lo Kin Ching Joseph Dermot Agnew 35/F, One Pacific Place 88 Queensway Hong Kong FONDA OIL: Court Appoints Joint Liquidators ------------------------------------------- On August 31, 2006, the High Court of Hong Kong appointed Jacky C. W. Muk and Jannie Wong as joint and several liquidators of Fonda Oil Co., Ltd. The Joint Liquidators can be reached at: Jacky C. W. Muk Jannie Wong 27/F, Alexandra House 16-20 Chater Road, Central Hong Kong GLOBAL POWER: Wants Court Approval on White & Case as Counsel ------------------------------------------------------------- Global Power Equipment Group Inc. and its debtor-affiliates seek permission from the U.S. Bankruptcy Court for the District of Delaware to employ White & Case LLP as their bankruptcy counsel. White & Case will: a. take all necessary actions to protect and preserve the estates of the Debtors, including the prosecution of actions on the Debtors' behalf, the defense of any actions commenced against the Debtors, the negotiation of disputes in which the Debtors are involved, and the preparation of objections to claims filed against the Debtors' estates; b. provide legal advice with respect to the Debtors' powers and duties as debtors and debtors-in-possession in the continued operation of their businesses and the management of their properties; c. prepare on behalf of the Debtors all necessary motions, applications, answers, orders, reports, and papers in connection with the administration and prosecution of the Debtors' chapter 11 cases; d. assist the Debtors in connection with any disposition of the Debtors' assets, by sale or otherwise; e. assist the Debtors in the negotiation, preparation and confirmation of a plan or plans or reorganization and all related transactions; f. appear in Court and protect the interests of the Debtors before the Court; and g. perform all other necessary legal services in connection with the Debtors' chapter 11 cases. Gerard Uzzi, Esq., a partner at White & Case, tells the Court that the firm's hourly rates are: Professional Hourly Rate ------------ ----------- Partners US$600 - US$950 Counsel US$445 - US$830 Attorneys US$245 - US$595 Paraprofessionals US$125 - US$265 Mr. Uzzi assures the Court that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Mr. Uzzi can be reached at: Gerard Uzzi, Esq. White & Case LLP Wachovia Financial Center 200 South Biscayne Boulevard Suite 4900 Miami, Florida 33131-2352 Tel: (305) 371-2700 Fax: (305) 358-5744/5766 http://www.whitecase.com/ About Global Power Headquartered in Tulsa, Oklahoma, Global Power Equipment Group Inc., aka GEEG, Inc. -- http://www.globalpower.com/-- provides power generation equipment and maintenance services for its customers in the domestic and international energy, power and infrastructure and service industries. The Company designs, engineers and manufactures a range of heat recovery and auxiliary equipment primarily used to enhance the efficiency and facilitate the operation of gas turbine power plants as well as for other industrial and power-related applications. The Company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai, China; Nanjing, China; and Heerleen, The Netherlands. The Company and 10 of its affiliates filed for Chapter 11 protection on September 28, 2006 (Bankr. D. Del. Case No 06- 11045). As of September 30, 2005, the Debtors reported total assets of US$381,131,000 and total debts of US$123,221,000. The Debtors' exclusive period to file a Chapter 11 plan expires on January 26, 2007. GLOBAL POWER: Taps Bayard Firm as Bankruptcy Co-Counsel ------------------------------------------------------- Global Power Equipment Group Inc. and its debtor-affiliates seek permission from the U.S. Bankruptcy Court for the District of Delaware to employ The Bayard Firm, P.A., as their bankruptcy co-counsel. Bayard will: a. take all necessary actions to protect and preserve the estates of the Debtors, including the prosecution of actions on the Debtors' behalf, the defense of any actions commenced against the Debtors, the negotiation of disputes in which the Debtors are involved, and the preparation of objections to claims filed against the Debtors' estates; b. provide legal advice with respect to the Debtors' powers and duties as debtors and debtors-in-possession in the continued operation of their businesses and the management of their properties; c. negotiate, prepare and pursue confirmation of a plan and approval of a disclosure statement; d. prepare on behalf of the Debtors all necessary motions, applications, answers, orders, reports, and other legal papers in connection with the administration of the Debtors' estates; e. appear in Court and protect the interests of the Debtors before the Court; f. assist with any disposition of the Debtors' assets, by sale or otherwise; and g. perform all other legal services in connection with the Debtors' chapter 11 cases as may reasonably be required. The Debtors disclose that Bayard will work closely with White & Case LLP, to ensure that there is no unnecessary duplication of services performed or charged to the Debtors' estates. Jeffrey M. Schlerf, Esq., a director and shareholder of Bayard, tells the Court that the firm's hourly rate are: Professional Hourly Rate ------------ ----------- Directors US$440 - US$675 Associates and Counsel US$205 - US$415 Paralegals and Case US$180 - US$185 Management Assistants Mr. Schlerf assures the Court that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Mr. Schlerf can be reached at: Jeffrey M. Schlerf, Esq. The Bayard Firm, P.A. 222 Delaware Avenue, Suite 900 P.O. Box 25130 Wilmington, DE 19899 Tel: (302) 655-5000 Fax: (302) 658-6395 http://www.bayardfirm.com/ About Global Power Headquartered in Tulsa, Oklahoma, Global Power Equipment Group Inc., aka GEEG, Inc. -- http://www.globalpower.com/-- provides power generation equipment and maintenance services for its customers in the domestic and international energy, power and infrastructure and service industries. The Company designs, engineers and manufactures a range of heat recovery and auxiliary equipment primarily used to enhance the efficiency and facilitate the operation of gas turbine power plants as well as for other industrial and power-related applications. The Company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai, China; Nanjing, China; and Heerleen, The Netherlands. The Company and 10 of its affiliates filed for Chapter 11 protection on September 28, 2006 (Bankr. D. Del. Case No 06- 11045). As of September 30, 2005, the Debtors reported total assets of US$381,131,000 and total debts of US$123,221,000. The Debtors' exclusive period to file a Chapter 11 plan expires on January 26, 2007. HANESBRANDS INC: Moody's Confirms Ba3 Corporate Family Rating ------------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. and Canadian Retail sector, the rating agency confirmed its Ba3 Corporate Family Rating for Hanesbrands, Inc. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$500 million senior secured revolver Ba2 Ba2 LGD3 31% US$1.65 billion senior secured 1st lien term loan Ba2 Ba2 LGD3 31% US$450 million senior secured 2nd lien term loan Ba3 B1 LGD5 73% US$500 million senior bank credit facility B1 B2 LGD5 89% Moody's explains that current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). Hanesbrands Inc. -- http://www.hanesbrands.com/-- markets innerwear, outerwear and hosiery apparel under consumer brands, including Hanes, Champion, Playtex, Bali, Just My Size, barely there and Wonderbra. The company designs, manufactures, sources and sells T-shirts, bras, panties, men's underwear, children's underwear, socks, hosiery, casual wear and active wear. Hanesbrands has approximately 50,000 employees in 24 countries, including India and China. HOWELL ENGINEERING: Court Favors Wind-Up ---------------------------------------- The High Court of Hong Kong issued a wind-up order against Howell Engineering Ltd on September 27, 2006. According to the Troubled Company Reporter - Asia Pacific, Ho Kwok Hung presented the wind-up petition with the Court on July 26, 2006. INTERNATIONAL PAPER: Will Trade Assets with Votorantim Celulose --------------------------------------------------------------- International Paper will be trading assets for US$1.15 billion with Votorantim Celulose e Papel, Latinlawyer Online reports. Latinlawyer relates that the deal between International Paper and Votorantim Celulose was completed on Sept. 19. According to Latinlawyer, International Paper will give Votorantim Celulose a forested land as well as the rights to an unfinished pulp mill. In return, Votorantim Celulose will give its pulp and paper production unit and land in Sao Paulo to International Paper. Latinlawyer notes that the deal also includes long-term supply accords. "For Votorantim, the deal is part of its plans for expansion in the global eucalyptus pulp industry," Paulo Frank Coelho da Rocha -- a lawyer from Demarest e Almeida Advogados, which advises Votorantim Celulose -- told Latinlawyer. Latinlawyer underscores that on the completion of the deal in February 2007, Votorantim Celulose will take control of 100,000 hectares of land and eucalyptus plantations surrounding Tres Lagoas, Brazil. The adjacent pulp plant will start operations in January 2009, with an annual capacity of 1.1 million tons. International Paper, says the report, will gain an integrated pulp and printing and writing paper plant in Luiz Antonio, Sao Paulo. The plant and surrounding forest produce 350,000 tons of uncoated paper and 385,000 tons of pulp yearly. Around a quarter of the pulp will be sold to the mill of Votorantim Celulose in Piracicaba, Sao Paulo. International Paper told Latinlawyer that it will construct a paper machine, which will have a 200,000-ton capacity, next to the site the firm will turn over to Votorantim Celulose in Tres Lagoas. It has the option to build another machine. Latinlawyer relates that under the terms of the deal, Votorantim Celulose will provide slush pulp and utilities to the plant on competitive terms. The agreement is awaiting approval from Brazilian antitrust authorities, Latinlawyer states. About International Paper Based in Stamford, Connecticut, International Paper Company (NYSE: IP) -- http://www.internationalpaper.com/-- is in the forest products industry for more than 100 years. The company is currently transforming its operations to focus on its global uncoated papers and packaging businesses, which operate and serve customers in the U.S., Europe, South America and Asia, specifically Japan and China. These businesses are complemented by an extensive North American merchant distribution system. International Paper is committed to environmental, economic and social sustainability, and has a long-standing policy of using no wood from endangered forests. * * * Moody's Investors Service assigned a Ba1 senior subordinate rating and Ba2 Preferred Stock rating on International Paper Company on Dec. 5, 2005. MACKINSEY FINANCIAL: Members' Final Meeting Slated for Nov. 7 ------------------------------------------------------------- Members of Mackinsey Financial Management Ltd will convene for their final meeting on November 7, 2006 at 10:00 a.m. During the meeting, Liquidator John Robert Lees will present a report regarding the company's wind-up and the manner its properties were disposed of. The Liquidator can be reached at: John Robert Lees c/o John Lees & Associates Limited 1904 Hong Kong Club Building 3A Chater Road, Central Hong Kong MEL APPEL: Creditors Must Prove Debts by November 8 --------------------------------------------------- Creditors of Mel Appel Ltd are required to submit their proofs of debt by November 8, 2006, to Liquidator Tam Chi Chung, for them to share in the company's dividend distribution. According to the Troubled Company Reporter - Asia Pacific, the company commenced a wind-up of its operations on September 28, 2006. The Liquidator can be reached at: Tam Chi Chung Room 804, Cheong K Building 84-86 Des Voeux Road, Central Hong Kong NEW CHINA PROPERTY: Members and Creditors to Hold Final Meeting --------------------------------------------------------------- A final meeting of the members and creditors of The New China Hong Kong Property Management Ltd will be held at Room 1601-02, 16th Floor, One Hysan Avenue, Causeway Bay, Hong Kong on November 6, 2006 at 11:00 a.m. and 11:30 a.m. respectively. During the meeting, Liquidator James Wardell will present a report on the company's wind-up and property disposal exercises. The Troubled Company Reporter - Asia Pacific reported that members and creditors of the Company set an annual general meeting on October 10, 2006. OCEAN GRAND: S&P Withdraws Ratings ---------------------------------- On October 10, 2006, Standard & Poor's Ratings Services withdrew its long-term corporate credit rating on Ocean Grand Holdings Ltd. and its issue rating on the company's corporate bonds. Both ratings were lowered to D in July 2006 upon the appointment of a provisional liquidator. Standard & Poor's withdrew its ratings as it lacks adequate information about the company's financial results, its operating performance, or progress on its liquidation to maintain the current ratings. * * * Ocean Grand Holding's -- http://www.ogholdings.com/-- principal activities are the manufacture and sale of aluminum extrusion products and chemicals for use in electroplating and refining of gold material produced at facilities located in Nanhai of Guangdong Province and the Hong Kong Special Administrative Region of The People's Republic of China. The Troubled Company Reporter - Asia Pacific reported on July 27, 2006, that the investigators conducting a prove on the Group's accounts discovered a total of CNY842 million missing from the bank accounts of Ocean Grand's subsidiaries and that the group was unable to pay immediate debts exceeding HKD261 million. PETROLEOS DE VENEZEULA: Sends Discounted Fuel to Nicaragua ---------------------------------------------------------- Petroleos de Venezuela SA, the state-run oil firm of Venezuela, has fulfilled its promise of delivering discounted diesel fuel to Nicaragua on October 7, 2006, Reuters reports. As reported in the Troubled Company Reporter - Latin America on October 6, 2006, Dionision Marenco -- the mayor of Managua, Nicaragua -- said that Petroleos de Venezuela SA would be sending about 304,000 liters of diesel to Nicaragua on October 7, 2006. Mayor Marenco said that the diesel would be apportioned among three transportation cooperative groups based in Managua, in possession of over 50% of public transportation vehicles in the capital city. The fuel would be sold at preferential prices, as long as fares are lowered to US$0.14 from US$0.17. As agreed, Nicaragua would first pay 60% of the price for the diesel. The remaining 40% will be repaid within 25 years, at a 1% interest rate. It would have two years of grace. The deal between Petroleos de Venezuela and the Nicaraguan mayors gives Nicaraguan municipalities access to 10 million barrels of oil or oil derivatives yearly at preferential terms, Reuters says. According to Reuters, Nicaragua has suffered an energy crisis due to increasing world oil prices. It has been experiencing daily power cuts. Mr. Ortega told Reuters that the fuel would go straight to a power plant so that the country can start resolving this problem. Reuters relates that Venezuela's President Hugo Chavez sent the diesel fuel to show his support for Daniel Ortega, Nicaragua's leftist leader, before a November 5 presidential election. Critics told Reuters that President Chavez was trying to influence Nicaragua's electorate behind Mr. Ortega with the oil deal. He also sent cheap fertilizer to Sandinista-affiliated cooperatives. Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. * * * On July 17, 2006, Standard & Poor's said that it may lower the company's B+ foreign-currency debt rating in part because of the absence of timely financial and operating information. PETROLEOS DE VENEZUELA: Halts Gasoline Export to Cuba & the U.S. ---------------------------------------------------------------- Due to continuing refinery problems, Venezuela's state-owned oil firm Petroleos de Venezuela S.A., suspended its gasoline exports to Cuba and the United States for the month of October, operators and ship agents told Reuters. Reports say Petroleos de Venezuela encountered electrical problems in its 54,000 bpd catalytic cracker in the El Palito refinery and operational problems in its Puerto La Cruz refinery. "We are expecting close to zero exports from Venezuela this month," a term buyer told Reuters. "It is not surprising that there would be no gasoline exports in October because the export flow has been slowing down in the past few months." Meanwhile, shipments to small gasoline cargoes from Curacao to the Dominican Republic, Haiti, and Jamaica will continue, a ship broker told Reuters. Venezuela exported in July around 51,000 bpd of gasoline to the US, which was in need of about nine million bpd. The country also exports four cargoes of gasoline to Cuba on a monthly basis. "It is not surprising to hear about the export problems after PDVSA bought gasoline in the open market late last week," an oil trader told Reuters, referring to the 300,000 barrels of gasoline that Petroleos de Venezuela bought from BP Plc to make up for its mid-October lifting. The suspended shipment of gasoline to Cuba was confirmed by a source close to Petroleos de Venezuela, however, the reported stoppage of shipment to the US was refuted by a company statement from Asdrubal Chavez, the executive marketing director of the state firm, Bloomberg reports. Mr. Chavez said in a statement, "The shutdowns in our refinery circuit haven't affected deliveries to our clients." Bloomberg underscores that Petroleos de Venezuela will restart operations of its El Palito catalytic cracker, which makes gasoline components, within days. The refinery outages have increased since a 2002-2003 protest aimed at ousting President Hugo Chavez that resulted to Petroleos de Venezuela to dismiss more than half of its workers, former managers of Petroleos de Venezuela told Bloomberg. Petroleos de Venezuela SA is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. * * * On July 17, 2006, Standard & Poor's said that it may lower the company's B+ foreign-currency debt rating in part because of the absence of timely financial and operating information. SOUTHERN AIRLINES: Airbus May Have to Pay for Late Deliveries ------------------------------------------------------------- Airbus may have to pay US$250 million in compensation to China Southern Airlines for the late delivery of its A380 passenger planes, the Xinhuanet News reports noting that the amount of indemnity was a "business secret" as stipulated in the purchase contract. It will be the biggest single compensation payout for an AirbusA380 customer, the Beijing News says, citing undisclosed sources close to the deal. Airbus recently informed its global customers that the delivery date for the first A380 aircraft would be postponed to October 2007. The company said it would deliver another 13 in 2008 and 25 in 2009, Xinhuanet says. This timetable means that China Southern Airlines, which hoped to cash in on the 2008 Beijing Olympics traffic boom, will not be able to get its hands on its five A380 airplanes until 2009, Xinhuanet relates. However, the flip side of the postponement was the hefty indemnity, Xinhuanet cites Li Lei, analyst at China International Trust & Investment Corp, as saying. * * * Headquartered in Guangzhou, China, China Southern Airlines Co Ltd. -- http://www.cs-air.com-- engages in the operation of airlines, as well as in aircraft maintenance and air catering operations in the People's Republic of China and internationally. It provides commercial airlines, cargo services, logistics operations, air catering, utility service, hotel operation, travel services, aircraft leasing, and Internet services. The Troubled Company Reporter - Asia Pacific reported in April 2006, that the carrier posted a net loss of CNY1.85 billion for 2005 versus a net loss of CNY48 million a year earlier. On May 1, 2006, Fitch Ratings has downgraded China Southern Airlines Company Limited's Foreign Currency and Local Currency Issuer Default Ratings to B+ from BB-. SUPRA ENGINEERING: Court Orders Wind-Up --------------------------------------- The High Court of Hong Kong issued a wind-up order against Supra Engineering Ltd on September 27, 2006. The Troubled Company Reporter - Asia Pacific reported that Yeung Kim Ho filed the petition with the Court on July 26, 2006. TAT HUNG: Final Meeting Slated for November 6 --------------------------------------------- Tat Hung Investments Ltd, which is in creditors' voluntary liquidation, will hold a final meeting for its members and creditors at Room 1601-02, 16th Floor, One Hysan Avenue, Causeway Bay, Hong Kong, on November 6, 2006 at 9:00 a.m. and 9:30 a.m. respectively. The members and creditors will receive Liquidator James Wardell's account regarding the company's wind-up and property disposal activities. WING FU: To Pay Preferential Dividend on October 13 --------------------------------------------------- Wing Fu Carton and Printing Company Ltd, which is in liquidation, will pay first and final dividend to preferential creditors on October 13, 2006. The Joint and Several Liquidator can be reached at: Edward Middleton 27/F, Alexandra House 16-20 Charter Road Hong Kong YUE FUNG: Receives Wind-Up Order from Court ------------------------------------------- On September 27, 2006, Yue Fung Industrial Company Ltd received a wind-up order from the High Court of Hong Kong. The Troubled Company Reporter - Asia Pacific reported that Anthony Siu & Co filed the wind-up petition before the Court on July 26, 2006. ========= I N D I A ========= CANARA BANK: Board to Review Sept. 30, 2006 Financial Results ------------------------------------------------------------- Canara Bank's Board of Directors will hold a meeting on October 19, 2006, to review and consider the company's financial results for the second quarter and half-year ended September 30, 2006, of fiscal year 2006-2007. As previously reported in the Troubled Company Reporter - Asia Pacific, the Bank posted INR1.91 billion net profit for 1st quarter FY 2006-2007. About Canara Bank Headquartered in Bangalore, India, Canara Bank -- http://www.canbankindia.com/-- provides services to a diverse clientele group with a range of subsidiaries and sponsored institutions. The bank services include networked automated teller machines, anywhere banking, telebanking, remote access terminals Internet, and mobile banking and debit card. The bank's Merchant Banking Division handles assignments as arrangers/lead manager/co-manager/manager to the offer/advisor/share valuator. Bancassurance arm of the Bank has tie up arrangements in both life and non-life insurance segments. Corporate Cash Management Services network of the Bank provides services related to local and upcountry cheque collection, bulk cheques collection and zero balance account facility. Executor, Trustee and Taxation Services of the bank provides services, such as debenture trusteeship, will and executorship, trusteeship, personal tax assistance and power of attorney services. Its Agricultural Consultancy Services handled 60 projects during the fiscal year ended March 31, 2006. Fitch Ratings gave Canara Bank an individual rating of D on June 1, 2005. CENTRAL BANK OF INDIA: Crisil Assigns "AA" to INR700-Crore Bond --------------------------------------------------------------- The Credit Rating Information Services of India Limited gave these ratings to Central Bank of India's Lower Tier II Bond Issues: * INR7.0-billion Lower Tier II Bond Issue: AA/Stable (Assigned) * INR6.0-billion Lower Tier II Bond Issue: AA/Stable (Reaffirmed) The ratings on Central Bank's debt issues reflect the support from Government of India arising from its complete ownership of the bank. The ratings also reflect the bank's comfortable market position, supported by a large branch network, healthy resource profile, and comfortable liquidity. Central Bank's weak asset quality, modest capitalization levels, and average earnings profile temper these rating strengths. Central Bank is fully owned by GoI. In its ratings of Indian Public Sector Banks, including Central Bank, CRISIL factors in the high likelihood of systemic support from GoI in the event of distress. CRISIL believes that GoI's majority ownership creates a moral obligation for it to support the PSBs, if the need arises. Central Bank enjoys a comfortable market position in the Indian banking industry, with a total asset base of INR747 billion as on March 31, 2006, and a wide reach through 3,168 branches. Central Bank has a stable low-cost resource profile, as seen in a high proportion of current and savings deposits. CASA deposits constituted 46.8% of the total deposits as of March 31, 2006. Central Bank's liquidity profile is comfortable, underpinned by high Statutory Liquidity Ratio investments (it had an SLR of about 35% as on March 31, 2006) and access to the call market. Central Bank's asset quality is weak. Its gross non-performing assets stood at 6.85% and 9.01% as of March 31, 2006, and March 31, 2005, respectively. These NPA levels are substantially higher than the system average. The bank's Tier I capital adequacy of 7.19%, and net worth to net NPA coverage of 3.1 times as on March 31, 2006, are lower than those of peer banks. The bank's earnings profile is average, with a net profitability margin of 1.4 per cent in 2005-06 (refers to financial year, April 1 to March 31). Outlook CRISIL expects GoI support and Central Bank's healthy resource profile and comfortable liquidity to offset the impact of low capitalisation, weak asset quality, and average earnings profile. Hence, the bank is expected to maintain its rating at the current levels. About the Bank Central Bank is one of India's largest banks with assets aggregating INR747 billion as on March 31, 2006. The bank has a market share of around 3.0% of deposits and 2.4% of advances in the total banking system. Headquartered at Mumbai, the bank has a network of 3,168 domestic branches and 35 satellite offices as of March 31, 2006. In addition, the bank has an overseas joint venture, Indo-Zambia Ltd, in which it has a 20% equity stake. Central Bank reported a profit after tax of INR2.6 billion on a total income (net of interest expenses) of INR29.1 billion in 2005-06, as against PAT and total income of INR3.6 billion and INR32.9 billion, respectively, in 2004-05. * * * Moody's Investors Service gave the bank's foreign long-term bank deposits a Ba2 rating. Additionally, the bank carries Moody's E+ bank financial strength rating. On June 1, 2005, Fitch gave the bank an individual rating of D/E. CENTURION BANK: Kerala Bank Workers Strike to Protest LKB Merger ---------------------------------------------------------------- On October 3, 2006, Bank employees in Kerala, India, went on strike to support the protest of Lord Krishna Bank staff over the merger with Centurion Bank of Punjab Limited, Zee News Limited reports. Hence, banking activity in the Kerala district was paralyzed as around 50,000 officers and employees across the state joined in the strike, the news agency said. According to Zee News, the strike was called by the United Forum of Bank Unions, Kerala chapter. The staffs of LKB-Kerala offices have been on strike for the last few weeks, Zee News noted. 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: CRISIL Gives Credit Opinions to Assignment Program -------------------------------------------------------------- The Credit Rating Information Services of India Limited assigned provisional credit opinions to ICICI Bank's assignment of receivables program: Issue Size Tenure Details (in millions) (months) Credit Opinion ------- ----------- ------ -------------- Acquirer's share INR2,941.8 56 Credit Quality equivalent to a rating of AAA (so) Second Loss Credit Quality Facility 102.3 56 equivalent to a rating of BBB (so) Liquidity Facility 20.7 56 Credit Quality equivalent to a rating of AAA (so) The credit opinions are based on the credit quality of the pool cash flows, ICICI Bank's origination and servicing capabilities, the available enhancements, and the soundness of the legal structure. The transaction involves assigning of receivables to the acquirer in exchange for initial and deferred purchase consideration. The enhancements are segregated into liquidity facility and credit collateral. The liquidity facility will be used to fund short-term collection shortfalls and the credit collateral will be used to fund shortfalls that are probable losses. As the liquidity facility has a priority in payment over the acquirer, CRISIL has assigned a credit opinion equivalent to a rating of AAA (so) to the liquidity facility also. The first loss facility enhances the pool profile to a credit quality of BBB (so) and second loss facility enhances it further to AAA (so). Hence, CRISIL has assigned a credit opinion equivalent to a rating of BBB (so) to the second loss facility. In the past, CRISIL has rated 24 pools of ICICI Bank, backed by new and used car loan receivables. The performance of these pools has been good, with limited use of stipulated enhancements. ICICI Bank is a market leader in new and used-car loan financing, with an outstanding loan book of INR235 billion as on July 31, 2006. Its robust underwriting standards and adequate collection infrastructure support the vigorous growth in its portfolio size and help the bank to maintain low loss levels that are amongst the best in the industry. The credit opinion is provisional and will become valid once the legal documentation pertaining to the transaction is duly executed to the satisfaction of CRISIL. CRISIL will thereafter issue a compliance letter. About ICICI Bank Headquartered in Mumbai, India, ICICI Bank Limited -- http://www.icicibank.com/-- is a financial services group providing a variety of banking and financial services, including project and corporate finance, working capital finance, venture capital finance, investment banking, treasury products and services, retail banking, broking and insurance. It also has interests in the software development, software services and business process outsourcing businesses. The Company's operations have been classified into three segments: Commercial Banking, Investment Banking and Others. It has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain, and representative offices in the United States, China, United Arab Emirates, Bangladesh and South Africa. * * * Fitch Ratings gave ICICI a 'C' Individual Rating. On Aug. 15, 2006, Standard & Poor's assigned its 'BB-' rating to the hybrid Tier-1 securities to be issued by ICICI Bank Ltd. ================= I N D O N E S I A ================= BANK INTERNASIONAL: Launches 'Cash Bonus' & 'Cash Back' Program --------------------------------------------------------------- PT Bank Internasional Indonesia Tbk officially launched a "Cash Bonus" program for opening BII's Gold Saving Deposit and a "Cash Back" program for using BII's ATM/Debit Card, Antara News reports. "Both programs are in line with our vision which among others focuses on consumer banking and mass affluent customers segment," said Rudy N. Hamdani, Director of Consumer Banking of BII, after launching these programs in Jakarta. Cash Bonus Program "Cash Bonus" is a program offered to customers who open BII's Gold Rupiah Saving Deposit by holding their account balance to a minimum of IDR10 million for a three-month period. By holding their account balance, customers will receive IDR300,000-direct gift in cash, which will be credited to the customers' accounts. Moreover, customers can also enjoy other benefits, among others are cash back facility up to 25% for all purchases and payment transaction using BII ATM/Debit Gold cards during the program. Customers can also get absolute reward such as households or electronic equipment and absolute free for applying BII's ATM/Debit Gold cards, monthly administration fee, cash deposit transaction and inter BII branches transfer, rupiah transfer to other domestic banks via over the counter, cash withdrawal and account balance information through ATMs. "Cash Bonus" program will be carried out from October 9 to December 2006 or after reaching the first 30,000 customers. According to Rudy N. Hamdani, "Cash Bonus" program is part of BII's effort to boost third party fund growth. BII successfully booked IDR34.39 trillion of third party funds in the first semester 2006 or grew by 19% compared to the same period in 2005, which stood at IDR31.43 trillion. Cash Back Program "Cash Back" is a cash back program for certain amounts of the purchase and payment transactions by using BII's ATM/Debit cards (Gold and Platinum). This program will be only valid for BII's ATM/Debit cards (Gold and Platinum) whose cards are related with BII's Rupiah saving deposits and such transaction is made on Friday, Saturday and Sunday. Transactions that are covered under the "Cash Back" program include every purchase transaction at all merchants or outlets, bill payment transactions and cellular phone voucher reload through BII ATM and payment transactions through an interactive voice response. "Cash Back" will be given based on customers' average balance in one month. The maximum of purchase transaction and payment amount which gets cash back facility is IDR5 million in one month. Cash back will be credited to the customers' accounts in the early month during the program. "Cash Back program is offered as an appreciation to BII's Gold and Platinum ATM/Debit card holders as well as to increase the usage of the cards in purchasing and payment transactions," said Mr. Rudy. Program "Cash Back" will be held starting from October to November 2006 or ends if total cash back in October reaches IDR5 billion. About Bank Internasional PT Bank Internasional Indonesia Tbk -- http://www.bii.co.id/-- engages in general banking services and in other banking activities based on Syariah principles. The bank's services are divided into three categories: Personal Services, consisting of Funding, Credit Card Services, Loan, Reksadana and Bancassurance; Corporate Services, consisting of Funding, Credit Card Services, Loan and Investment Banking, and Platinum Services, consisting of Platinum Access, Syariah Platinum Access and Platinum MasterCard. The bank is headquartered in Jakarta, Indonesia. With a total customer deposit base of more than IDR34 trillion and over IDR47 trillion in assets, Bank Internasional is one of the largest banks in Indonesia with an international network that comprises over 230 branches and 700 ATMs across Indonesia, as well as a banking presence in Mauritius, Mumbai and the Cayman Islands. * * * The Troubled Company Reporter - Asia Pacific reported on May 22, 2006, that Moody's Investors Service has raised Bank Internasional Indonesia's issuer rating to B1 from B2, subordinated debt rating to B1 from B2, and long-term deposit rating to B2 from B3. The outlook for the ratings is stable. Additionally on May 29, 2006, Moody's Investors Service has placed Bank Internasional Indonesia's E+ bank financial strength rating on review for possible upgrade. Another TCR-AP report on May 24, 2006, said that Fitch Ratings affirms Bank Internasional's ratings on its: * Long-term Foreign Currency Issuer Default Rating 'BB-'; * Short-term 'B'; * Individual 'C/D'; and * Support '4'. The outlook for ratings is stable. KALTIM PRIMA: IndoCoal Issues US$900-Million Floating Rate Notes ---------------------------------------------------------------- IndoCoal Exports Ltd, a fully owned unit of coal miner PT Bumi Resources, which is PT Kaltim Prima Coal's parent firm, has closed the sale of US$900 million-worth of floating-rate notes due 2011 and 2012, Antara News relates. Bumi Resources said the proceeds will be used to refinance US$800 million of fixed-rate notes due 2006 issued by IndoCoal in April 2006, for other corporate expenses and to finance the securitization of future coal sales receivables of Bumi Resources' principal operating subsidiaries Kaltim Prima Coal and PT Arutmin Indonesia. Antara, citing XFN-Asia, says that the notes issue comprises US$600 million-worth carrying an interest rate of the one-month LIBOR plus 325 basis points, which mature on Sept 28, 2011, and US$300 million-worth carrying an interest rate of the one-month LIBOR plus 500 basis points, which mature on Sept 28, 2010. Bumi Resources also said that it had secured a US$300 million loan facility lasting three years, Antara notes. About Kaltim Prima Coal Headquartered in Jakarta Indonesia, PT Kaltim Prima Coal -- http://www.kaltimprimacoal.co.id/-- is a world class coal mine in the Kalimantan Timur region of Indonesia. KPC provides community development support to areas such as small business development, health programs, infrastructure programs, education and scholarships, and agricultural training. * * * The Troubled Company Reporter -- Asia Pacific reported on April 12, 2006, that Standard & Poor's Ratings Services, on April 11, affirmed its BB- corporate credit rating on Indonesia's PT Kaltim Prima Coal and revised its outlook to negative from stable. GNC CORP: Reports Strong Same-Store Sales for Third Quarter 2006 ---------------------------------------------------------------- GNC Corp. reported strong same store sales results for the third quarter of 2006. Domestic same store sales for the third quarter of 2006 increased 11.7% for corporate stores and 7.0% for franchise stores. Corporate store sales include Internet sales, which added 1.5% to corporate same store sales growth. "I am extremely pleased with the continued strong sales performance we are seeing across every major category and in all of our store formats. This quarter is especially encouraging since it not only represents the fourth consecutive quarter of strong single- to double-digit same store sales growth, but also double-digit same store sales growth against positive growth from last year in the third quarter," said President and Chief Executive Officer Joseph Fortunato. Headquartered in Pittsburgh, Pa., GNC -- http://www.gnc.com/-- is the largest global specialty retailer of nutritional supplements, which includes vitamin, mineral and herbal supplements, sports nutrition products, diet and energy products and specialty supplements. GNC has more than 4,800 retail locations throughout the United States, including more than 1,000 domestic franchise locations, and locations in 43 international markets. GNC's Asian operations are in Indonesia, Hong Kong, India, Japan, Philippines, and Thailand, among others. * * * Standard & Poor's Ratings Services affirmed its ratings, including the 'B' corporate credit rating, on Pittsburgh, Pennsylvania-based General Nutrition Centers Inc. The ratings are removed from CreditWatch, where they were placed with positive implications on June 19, 2006. S&P said the outlook is stable. PARKER DRILLING: Moody's Assigns Loss-Given-Default Ratings ----------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the oilfield service and refining and marketing sectors last week, the rating agency confirmed its B2 Corporate Family Rating for Parker Drilling Company, as well as it B2 rating on the company's 9.625% Senior Unsecured Guaranteed Global Notes Due 2013, and Senior Unsecured Guaranteed Floating Rate Global Notes Due 2010. Moody's assigned those debentures an LGD4 rating suggesting noteholders will experience a 55% loss in the event of default. Moody's explains that current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). Headquartered in Houston, Texas, Parker Drilling Company -- http://www.parkerdrilling.com/-- provides contract drilling and drilling-related services worldwide. The company has rigs located in Indonesia, New Zealand, Colombia and Mexico, among others. PERRY ELLIS: Moody's Assigns Loss-Given-Default Rating ------------------------------------------------------ In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. and Canadian Retail sector, the rating agency confirmed its B1 Corporate Family Rating for Perry Ellis International, Inc., and its B3 rating on the company's $150 million senior subordinated notes. Additionally, Moody's assigned an LGD5 rating to those bonds, suggesting noteholders will experience a 78% loss in the event of a default. Moody's explains that current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). Based in Miami, Florida, Perry Ellis International Inc. -- http://www.pery.com/-- designs, sources, markets and licenses a portfolio of brands including Perry Ellis, Jantzen, John Henry, Cubavera, Munsingwear, Original Penguin and Farah. The company also operates 38 retail locations including 3 Original Penguin locations. The company has sourcing offices in Indonesia, India, Korea, Thailand, Peru, Nicaragua, and El Salvador. ========= J A P A N ========= BANCO BRADESCO: To Increase Capital Stock by BRL1.2 Billion ----------------------------------------------------------- Banco Bradesco S.A.'s board of director's submitted a proposal to increase the capital stock by BRL1,200,000,000 through the issuance of 21,818,182 new book-entry registered stocks, with no par value, of which 10,909,152 are common stocks and 10,909,030 are preferred stocks, at the price of BRL55.00 per stock. Banco Bradesco clarifies that the stockholders are entitled to exercise their preemptive rights in the period from Oct. 19, 2006 to Nov. 21, 2006, in the proportion of 2.226746958% on the stockholding position held as of Oct. 5, 2006, on the same type of stocks. The stockholders whose stocks are deposited at CBLC -- Brazilian Clearing and Depositary Corporation -- must exercise their rights at the respective depositor Brokerage Houses until Nov. 16, 2006. Those not intending to exercise their preemptive rights to the subscription may negotiate them at the BOVESPA -- Sao Paulo Stock Exchange -- based on the market price until Nov. 10, 2006, through Bradesco S.A. Corretora de Titulos e Valores Mobiliarios or another brokerage house of their preference. The subscription Reports will be available to the stockholders at Banco Bradesco's branches from Oct. 19, 2006, to Nov. 21, 2006. The stockholders who want to their rights must hand in the filled Report at Bradesco's branches until Nov. 21, 2006. Regardless of the date of delivery of the subscription report, the payment of 100% of the amount of the subscribed stocks will take place on Dec. 7, 2006, the same date for the payment of Complementary Interest on Own Capital and Dividends, and the stockholder must make an option for one of the forms provided for in the subscription report, as: -- compensation of credit of Complementary Interest on Own Capital and Dividends previously mentioned. In this case, the exercise of the subscription right of the stocks will not result in any disbursement of resources on the account of the stockholders enrolled in the bank's registrations as of Oct. 5, 2006; -- debit in the checking account held in Banco Bradesco S.A.; and -- check to the order of the referred Banco Bradesco; In the event of remainders of stocks, after the term for the exercise of the preemptive right has elapsed, they will be sold by means of an auction to be held on the Sao Paulo Stock Exchange, according to the conditions stated in the Board of Director's proposal and relevant legislation. These deliberations are still subject for approval by the Central Bank of Brazil. 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. * * * Troubled Company Reporter - Asia Pacific reported that Fitch Ratings upgraded Banco Bradesco S.A.'s short-term local currency rating to 'F3' from 'B.' FORD MOTOR: Starting Buyout Offers Next Week -------------------------------------------- Ford Motor Company will start offering its early retirement packages to all 75,000 of its U.S. hourly employees next week, the Associated Press reports. Ford is offering buyout packages to its entire U.S. hourly workforce of approximately 75,000 people. Employees have between Oct. 16, and Nov. 27, to select among eight different retirement, education and other separation programs. The programs include tuition reimbursement for a two- or four-year college degree, a US$100,000 lump sum payment or US$35,000 retirement incentive, among others. Employees who accept packages will leave the company between January and September 2007. "Though we are doing what we must to fix our business in North America, we truly have the best interests of our employees in mind," said Marty Mulloy, Ford Motor Company vice president, Labor Affairs. "We are providing a wide variety of buyout options for employees to consider, and we are committed to providing them with as much information as possible to help them through the process of transitioning into their lives after Ford." In an effort to help employees through their decision-making process and to provide relevant information about their options, Ford and the UAW are holding Opportunity Workshops and Opportunity Fairs at nearly every manufacturing location in the United States. The workshops are designed to provide information about topics including how to start a business, going through a relocation and going back to school. Ford's Package Offering Special Retirement Incentive: For employees with 30 years of service or more and are at least 55 years old, or are at least 65 with one or more years of service. Financial incentive of $35,000 pre-tax check. Special Early Retirement: For employees who have reached age 55, but not normal retirement age, and who have ten or more years of credited service under the Ford-UAW retirement plan. Provides unreduced life income benefits for the life of the retiree, and temporary benefits payable until age 62 and one month. Pre-Retirement Leave Program: For employees with at least 28, but less than 30 years of credited service. Ends with retirement when the employee reaches 30 years of service. Employees will receive 85 percent of straight-time pay. After they reach 30 years of service, they would receive their regular retirement. Special Termination of Employment Program: For employees with at least one year of service receive a gross lump sum payment of US$100,000. Retirement eligible employees must wait 23 months before retiring. Educational Opportunity Program: For employees with at least one year of service, includes tuition reimbursement for up to US$15,000 a year for up to four years paid directly to the approved college or vocational school, and an annual stipend worth 50 percent of the employee's annualized straight-time wage rate. Health insurance and other benefits continue during this four-year period, but participants must enroll in school full time (at least 12 credit hours per semester) and maintain a "c" average to remain eligible. Benefits and the living expense stipend end after 4 years, or when the employee receives their degree, certification or license. Enhanced Special Termination of Employment Program: Under this program, UAW-Ford employees with at least 30 years of credited service under the Ford-UAW Retirement Plan or are at least 55 years old with at least 10 years of credited service will receive a lump sum pre-tax payment of US$140,000. Retirement may take place immediately, and workers electing this option will receive any pension benefits for which they are eligible at that time, based on length of service. They also will be provided with basic health care coverage for a period of six months, but will be ineligible for post-retirement health care and life insurance benefits. Focused Education Opportunity Program: A Similar program to Educational Opportunity Program, except that employees selecting this option will receive two years of tuition payment, up to US$15,000 per year and 70 percent of wages, instead of 50%. Family Scholarship Program: Employees electing this program agree to terminate their employment at Ford, and will receive a Scholarship Fund totaling US$100,000, which can be used for approved educational expenses for their children, spouses and grandchildren. Funds will be taxed upon withdrawal. Funds will be available for a 10-year period from the employee's date of termination and if the funds are not used within the time period, the scholarship funds will be forfeited. Ford Motor Credit Co. -- http://www.fordcredit.com/-- is one of the world's largest auto financing companies, and funds autos for and through some 12,500 Ford, Lincoln, Mercury, Jaguar, Land Rover, Mazda, Aston Martin, and Volvo dealerships. Ford Motor Credit Co. finances new, used, and leased vehicles (including about 40% of new Fords sold in the U.S.) and provide wholesale financing, mortgages, and capital loans for dealers. The Company also offers individual and business fleet financing, while its insurance operations offer extended service contracts, automobile insurance, wholesale inventory insurance, and credit life and disability insurance. The Company has operations in the Asia-Pacific region, including Japan. * * * The Troubled Company Reporter - Asia Pacific reported on September 25, 2006, that Rating and Investment Information, Inc., has placed Ford Motor Credit Company's BB rating on the Rating Monitor with a view to downgrading. As reported in the Troubled Company Reporter 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 also downgraded the Issuer Default Rating of Ford Motor Company and Ford Motor Credit Company to 'B' from 'B+'. Fitch also lowered the 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 also 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. As reported in the TCR 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: Latch, Drivetrain Probs Spur Recall of 145,000 Cars --------------------------------------------------------------- Ford Motor Company is recalling more than 145,000 vehicles in the United States for a range of problems including defective latches to faulty drivetrains, Reuters reports, citing the National Highway Traffic Safety Administration. The recall involves 139,537 2005 model-year Five Hundred and Mercury Montego sedans and 2005-2006 model-year Freestar minivans; and 6,164 Escape hybrid SUVs from 2006 model year, Reuters said, based on NHTSA's records. NHTSA's detailed report on the recall is available at the agency's Web site at http://www.nhtsa.dot.gov/ Possible Renault-Nissan Tie Up Reuters earlier reported that Nissan Motor Co. Ltd and Renault could set their sights on the company as they continue to look for a North American partner. Nissan spokeswoman Mia Nielsen told Reuters that the Renault- Nissan alliance could be extended to work with additional partners and that a North American partner could make sense. Renault-Nissan had sought to form a partnership with General Motors Corp. in order to strengthen its position in North America. GM however, ended the talks after concluding that Renault-Nissan's alliance framework would substantially disadvantage GM shareholders. Ford Motor Credit Co. -- http://www.fordcredit.com/-- is one of the world's largest auto financing companies, and funds autos for and through some 12,500 Ford, Lincoln, Mercury, Jaguar, Land Rover, Mazda, Aston Martin, and Volvo dealerships. Ford Motor Credit Co. finances new, used, and leased vehicles (including about 40% of new Fords sold in the U.S.) and provide wholesale financing, mortgages, and capital loans for dealers. The Company also offers individual and business fleet financing, while its insurance operations offer extended service contracts, automobile insurance, wholesale inventory insurance, and credit life and disability insurance. The Company has operations in the Asia-Pacific region, including Japan. * * * The Troubled Company Reporter - Asia Pacific reported on September 25, 2006, that Rating and Investment Information, Inc., has placed Ford Motor Credit Company's BB rating on the Rating Monitor with a view to downgrading. As reported in the Troubled Company Reporter 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 also downgraded the Issuer Default Rating of Ford Motor Company and Ford Motor Credit Company to 'B' from 'B+'. Fitch also lowered the 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 also 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. As reported in the TCR 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. KIYO BANK: Fitch Affirms D/E Individual Rating Following Merger --------------------------------------------------------------- Fitch Ratings has affirmed the ratings of Japan-based Kiyo Bank following the merger of Kiyo Holdings' operating banks on October 10, 2006: -- Long-term foreign and local currency Issuer Default ratings at 'BBB-'; -- Short-term foreign and local currency IDRs at 'F3'; and -- Individual 'D/E' and Support '2'. The Outlook on the ratings is Stable. At the same time, Wakayama Bank's 'BBB-'/Stable Long-term foreign and local currency IDRs, 'F3' Short-term foreign and local currency IDRs, Individual 'E' and Support '2' ratings were affirmed and simultaneously withdrawn. A joint holding company -- Kiyo Holdings -- was established by Kiyo Bank and Wakayama Bank in February 2006, with a view to both operating banks merging this month. The merged entity has a dominant position in Wakayama prefecture with a loan market share of around 50%. Given the large market share of the group and its importance to the local economy and financial system of the Wakayama prefecture, Fitch believes that there is a high probability that the Kiyo Holdings group banks would, if necessary, be supported by the state. Following the completion of the merger of the operating banks, the surviving entity is to receive JPY31.5 billion in public funds that are expected to raise the aggregate unconsolidated total capital ratio to above 10% from 8.6% at end-March 2006. The agency will continue to monitor the merged bank's performance in order to reflect the banks' individual financial strength into the ratings. SAPPORO HOLDINGS: Canadian Gov't. Okays Tender Offer for Sleeman ---------------------------------------------------------------- Sapporo Holdings Ltd. said that it has received approval from the Canadian Government to proceed with a tender offer to buy Toronto-based Sleeman Breweries Ltd, Dow Jones Newswire says. Reuters recounts that Sapporo aims to buy all of Sleeman's outstanding shares via its unit -- Sapporo Breweries Ltd. -- by October 17, 2006, paying CND17.50 for each share in a deal that values the Canadian brewer at CND299 million. Reuters notes a Sapporo spokeswoman as saying that the tender offer is going smoothly and the company is almost certain it will be successful. About Sleeman Sleeman Breweries Ltd. is the leading brewer and distributor of premium beer in Canada and the third largest brewing company nation-wide. The company has supplemented its core Sleeman brands, which are available in every province, with a family of exceptional regional brands. These include Okanagan Spring and Shaftebury in British Columbia and Alberta, Upper Canada in Ontario, Unibroue and Seigneuriale in Quebec and Maritime Beer in Atlantic Canada. Sleeman entered the rapidly growing value price category in 1999 by acquiring the Stroh portfolio brands in Canada. The company markets and/or distributes world class imported products such as Guinness, Grolsch, Samuel Adams, Scottish & Newcastle, Sol, Sapporo, and Pilsner Urquell, and provides contract production for Japan's Sapporo Breweries products. The company's products are also available in selected international markets. About Sapporo Breweries Sapporo Breweries Ltd. is a wholly owned subsidiary of Sapporo Holdings Limited, a Japanese holding company with an enterprise value of CND4.3 billion that is active in four business segments. Its Alcohol segment is engaged in the manufacture and sale of beer, sparkling liquor, wine, brandy and others. The company manufactures alcohol products including Sapporo Draft Beer, Yebisu Beer and Draft One. The company distributes Guinness, Yellow Tail and Beringer in Japan. The Beverage segment manufactures and sells beverages, such as tea, mineral water, coffee, carbonated drinks, fruit juice, health drinks, sports drinks and others. It distributes Ocean Spray Cranberry in Japan. Its Restaurant segment is involved in the operation of beer parlors and restaurants under the store name Ginza Lion. The Real Estate segment is engaged in the operation and management of complex facilities that contains offices, housing, restaurants, and commercial and cultural facilities under the name Yebisu Garden Place, in addition to commercial and amusement complex facilities. About Sapporo Holdings Sapporo Holdings Limited -- http://www.sapporoholdings.jp/-- formerly known as Sapporo Breweries, brews beer and operates more than 200 beer halls and restaurants. Sapporo is one of Japan's oldest brewers, and is Japan's third largest brewing company, with brews ranging from its flagship Black Label to the pricier Yebisu. Sapporo also makes the low-malt happoshu brew. The Company sells Guinness beer in Japan through its Sapporo Guinness Company and owns a beverage company that makes canned coffee, bottled water, and soft drinks. * * * As reported by the Troubled Company Reporter - Asia Pacific on August 7, 2006, Sapporo Holdings posted a JPY1.8-billion operating loss for the first half of the fiscal year, and forecast earnings to drop to JPY10.2 billion for FY06 from an initial forecast of JPY16.8 billion. Standard & Poor's Rating Service gave Sapporo Holdings 'BB' Long-Term Foreign Issuer Credit and Long-Term Local Issuer Credit Ratings. On March 14, 2006, Fitch Ratings Agency assigned a 'B' Short- term Foreign and Local Currency Issuer Default Rating to the Company. SOFTBANK CORP: Fitch Affirms EUR500MM Unsecured Notes At 'BB-' -------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB-' rating on Softbank Corp.'s (BB-/Stable/--) EUR500 million euro-denominated senior unsecured notes due Oct. 15, 2013. The coupon rate is 7.75%. The rating on the bonds was assigned on Sep. 27, 2006, and the terms and conditions of the subordinated bonds were confirmed on October 10, 2006. The rating on Softbank reflects the company's weak capital structure, which deteriorated after the company's debt-financed purchase of Vodafone K.K. (now Softbank Mobile Corp.). However, the company's overall earnings are improving, and this should lower the chances of further deterioration in its capital structure. Given the company's relationship with its lender financial institutions and its latent profits on securities, its refinancing and liquidity risks should be limited. ========= K O R E A ========= KOREA DEVELOPMENT: Capital Almost Doubled in Hungarian Unit ----------------------------------------------------------- The Korean Development Bank has almost doubled its Hungarian unit's registered capital to HUF15.3 billion (US$71 million dollars), the dpa German Press Agency reports, citing a statement made by the unit's managing director Jolanta Meszaros. According to the report, the Bank has plans to raise the limit for large loans to its corporate partners in Hungary, including Samsung and Hankook Tire. In April 2006, Hankook borrowed EUR100 million through a syndicated loan to finance a manufacturing plant in Hungary. KDB acted as lead manager in the loan. KDB Hungary also plans to lend money to other South Korea companies regionally, Mr. Meszaros told the Press Agency. About Korea Development Bank Korea Development Bank -- http://www.kdb.co.kr/-- is South Korea's long-term funds provider to major industrial projects. The company is wholly owned by the Korean Government. KDB also offers short and long-term loans, investments, guarantees and trusts to international finance. Its major funding sources are Industrial Finance Bonds, client deposits, special-purpose funds and foreign-currency funds. Moody's Investors Service gave KDB a 'D-' Bank Financial Strength Rating effective on January 24, 2006. KOREA EXCHANGE: Extends Online Banking Services to China -------------------------------------------------------- Korea Exchange Bank expanded its online banking services to offer them in its branches in China, The Korea Herald reports. The move makes KEB the first lender to establish an e-banking system in the mainland, the daily says. KEB officials told the newspaper that the expanded services will enable Koreans doing business in China to manage banking at home via the Internet. KEB has four branches in China -- Beijing, Tianjin, Dalian, and Dhanghai. 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. * Rating Agencies Say Nuclear Test Won't Impact South's Ratings --------------------------------------------------------------- Global credit rating agencies believe that North Korea's nuclear test will not directly impact South Korea's sovereign credit ratings, the Korean government says in its Web site Korea.net. According to an analyst at Moody's Investors Service, the South's credit ratings are unlikely to be affected by the risks associated with the nuclear testing. Takahira Ogawa of Standard & Poor's says a successful nuclear test would not by itself result in a downward revision of the sovereign ratings on Korea, or negatively affect the stable outlook attached to the country's ratings. This is because the prospect of the test leading to sanctions severe enough to hasten a collapse of the North or spark a full- scale military conflict are still remote, Mr. Ogawa explains. Korea's Web site also notes that Fitch Ratings stated that North Korea's "successful nuclear test" will not have a direct impact on South Korea's credit ratings. Government officials in charge of Korea's international finance also believe that the rating agencies' stand on Seoul's sovereign credit level will remain about the same despite the North's action, Korea.net adds. In July 2005, Standard and Poor's Ratings Services raised the South's credit ratings from "A-" to "A", the highest level since the 1997 Asian financial crisis. Moody's Investors Service, for its part, elevated its rating for the nation to "A+" from "A" in October 2005. * Nuclear Test Unlikely to Affect South's Ratings, Moody's Says --------------------------------------------------------------- South Korea's credit fundamentals are relatively strong and are not likely to be affected by the risks associated with North Korea's October 9, 2006, nuclear weapons test even as tensions rise and the stability of the North is strained by likely new sanctions, says Moody's Investors Service lead analyst for the country. "While those risks remain contained and are already incorporated in our ratings, the test raises the issue of whether diplomatic efforts can ensure geopolitical stability on the Korean peninsula," Moody's Tom Byrne says. "While a military reaction is highly unlikely, sanctions against North Korea may be tightened considerably." Mr. Byrne says the nuclear test by North Korea has also undermined a rationale for the engagement of the North by China and South Korea, and could lead to a curtailment of trade and investment relations, further isolating the Pyongyang regime. In contrast, Seoul has a sound fiscal position and its external position has strengthened considerably. Its foreign exchange reserves of more than US$200 billion are currently the world's fifth largest. "The greatest credit risks to South Korea would arise from a military confrontation or a collapse of the North Korean government that requires international intervention to secure the North's stockpile of nuclear and non-nuclear weapons of mass destruction," said Byrne. "In our opinion, a coordinated, cooperative international response to a collapsed North Korea would present minimal downside risks to South Korea, although in a worst-case outcome that includes outright war, the costs of stabilizing the Korean peninsula would be greater." The key to avoiding a collapse, he said, rests with the maintenance of a strong alliance between South Korea and the United States, and a convergence of geopolitical interests by the other major regional powers, China, Japan and Russia. "While leaders of both South Korea and the U.S. have lately sought to downplay the differences and frictions of the last four years over North Korean policy, a renewed perception of shared dangers may help to ensure that the stability achieved on the Korean peninsula since 1953 is maintained," said the analyst, who also noted a "hopeful sign" in the rapid improvement of relations between China and Japan under new Japanese Premier Shinzo Abe. "Peace and stability on the Korean peninsula will ultimately hinge on whether the international community can contain Pyongyang until a government there can adopt a radically different set of economic and political policies," said Byrne. He said Moody's will closely monitor international reaction and the North's response to world reaction. ===================== P H I L I P P I N E S ===================== EQUITABLE PCI: BSP Rejects TMEQ's Disqualification Request ---------------------------------------------------------- In a filing with the Philippine Stock Exchange, Equitable PCI Bank, Inc., disclosed that Trans Middle East (Phils.) Equities, Inc., filed a request with the Bangko Sentral ng Pilipinas to disqualify the bank's directors, members of the Advisory Board, the chairperson and the corporate secretary. BSP denied the disqualification requests, Equitable PCI president & CEO Rene J. Buenaventura informed the PSE. According to Mr. Buenaventura, BSP, in a letter dated Sept. 9, 2006, advised Equitable PCI that: 1. Corazon S. De La Paz, as Chairperson of Equitable PCI, possesses the qualifications and none of the disqualifications of a director under the Manual of Regulations for Banks. The prohibition under Republic Act No. 87941 cited by Trans Middle in its complaint does not apply since the position of a chairperson is not considered an officer under Equitable PCI's Amended By-laws; 2. the grounds cited by Trans Middle also do not provide regulatory basis to disqualify: (a) Teresita T. Sy, Josefina N. Tan, Atty. Edmundo L. Tan, and Antonio A. Henson, as regular directors; (b) Peter D. Garrucho, Jr., and Jesus G. Tirona as independent directors; and (c) Atty. Sabino E. Acot, Jr., as Corporate Secretary; 3. Alberto V. Reyes, Teodoro B. Montecillo, and Antonio C. Pacis as members of the Advisory Board are neither directors nor officers of Equitable PCI. Thus, these members are not subject to Monetary Board confirmation. As reported in the Troubled Company Reporter - Asia Pacific on September 15, 2006, the BSP confirmed the election of Equitable PCI's directors. About Equitable PCI Equitable PCI Bank, Inc. -- http://www.equitablepci.com/-- is a universal bank formed from the consolidation of Equitable Banking Corporation and PCI Bank on September 2, 1999. EBC and its subsidiaries provide a wide range of commercial, corporate, and retail banking and financial services, including lending and deposit taking, branch banking, international banking, electronic banking, trade finance, cash management, and trust and treasury services. Aside from commercial banking, the Bank also capitalizes in credit card, investment banking, leasing, trust banking, and remittance business. * * * Moody's Investors Service gave Equitable PCI Bank's Subordinated Debt and Long-Term Bank Deposits 'Ba3' ratings effective May 25, 2006. Fitch Ratings gave the bank a 'BB' Long-term Issuer Default rating, a 'B' Short-term rating, a 'D' Individual rating, and A '3' Support rating. Standard & Poor's Rating Service gave Equitable PCI Bank's senior unsecured debt a 'B' rating and its subordinated debt a CCC+ rating. EXPORT & INDUSTRY BANK: G. Cunanan Elected as Independent Dir. -------------------------------------------------------------- Edna Daguinsin-Reyes resigned as a Director of Export and Industry Bank during a special meeting of its Board of Directors, held on October 10, 2006, the Bank advised the Philippine Stock Exchange. In the same meeting, George V. Cunanan was also elected as the bank's third Independent Director, who assumed office immediately. Mr. Cunanan's election was in view of Paterno H. Dizon's ineligibility as an Independent Director as found by the Bangko Sentral ng Pilipinas. About Export & Industry Bank Headquartered in Makati City, Manila, Export and Industry Bank - - http://exportbank.com.ph/-- has 50 branches and has revived former Urban Bank unit under new names. Its principal activity is the provision of commercial banking services such as deposit taking, loans and trade finance, domestic and foreign fund transfers, treasury, foreign exchange and trust services. The Bank is saddled with the PHP10 billion non-performing assets it inherited from Urban Bank when the two banks merged in 2002. The TCR-AP reported on May 10, 2006, that Exportbank is scheduled to complete a rehabilitation program, which was proposed in order to reverse a 2005 net loss of PHP1.66 million, by 2007. Under an agreement dated December 29, 2005, the Philippine Deposit Insurance Corp. will extend annual financial aid of PHP600 million to the Bank. LAFAYETTE MINING: Faces Suit Over Albay Mining Operations --------------------------------------------------------- Lafayette Mining Philippines, Inc. faces a purported class action seeking a temporary restraining order against its 30-day test runs of polymetallic mining operations on Rapu-Rapu, an island in Albay province in the Bicol region, 350 kilometers southeast of Manila, according to the Environment News Service. People from the provinces of Sorsogon and Albay, 27 residents of Rapu-Rapu, environmental activist groups, fisher folk organizations, church people, militant organizations and television personalities filed the suit on July 20, 2006, in Makati Regional Trial Court after an incident of toxic spill. The class action not only names the company as defendant, but also the Department of Environment and Natural Resources Secretary Angelo Reyes. It seeks a permanent halt to the company's operations, citing threats to people's health and livelihood. According to Bishop Aruturo Bastes, head of the defunct Rapu- Rapu Fact-Finding Commission, "The mining issue in Rapu-Rapu is a matter of public interest in view of the environmental hazards and adverse health impacts that Lafayette mining operation poses. The people of Sorsogon are supporting the class suit, and we hope we can get justice." Howard M. Calleja, one of the attorneys who filed the case, explains that the most compelling reason to restrain the company's mining operation is the occurrence of acid mine drainage, which is something that even the DENR admits Lafayette could not control. About Lafayette Philippines Lafayette Mining Philippines, Incorporated, is a subsidiary of Australian firm Lafayette Mining, Incorporated -- http://www.lafayettemining.com/-- which has been listed on the Australian Stock Exchange since August 1997. Lafayette Philippines is currently developing a polymetallic project involving copper, gold, zinc and silver on the Island of Rapu- Rapu in the Philippines. The Department of Environment and Natural Resources' former secretary, Mike Defensor, ordered the closing of Lafayette Philippines in 2005 when the Company's mine tailings were accidentally spilled into the Albay Gulf last October, killing thousands of fish and destroying the livelihood of fishermen in the area. The Company was also fined PHP10.7 million for violating the Clean Water Act and its environmental compliance certificate. LAFAYETTE MINING: Seeks Additional Funds for Rapu-Rapu Project -------------------------------------------------------------- Lafayette Mining Limited agreed to enter into a non-binding terms sheet to raise between US$10 million and US$15 million through issuance of convertible notes, the company said in a release. The issue would be made through a facility arranged by South East Asian Strategic Assets Fund and its advisor CIMB Standard Strategic Asset Advisors Pte Ltd. Lafayette wanted additional funds to finance the completion of exploration planned for the Rapu-Rapu polymetallic project and to satisfy any additional funding requirements of the Project until it becomes self-sustaining. Subject to the successful negotiation of formal documentation for the proposed Convertible Note issue, followed by satisfaction of various conditions precedent, the proposed Convertible Note issue will be the source of this funding. Lafayette may also rely on the facility for its own corporate purposes. The company believes that a facility of this kind and magnitude will give all of its stakeholders greater comfort in its ability to weather the financial difficulties presented by delays in the commissioning of the Project. It will also give them the prospect of an extension to the life of the Project through a successful exploration program undertaken earlier than Project cash flows are currently estimated to allow, and the possibility of Lafayette identifying and being able to pursue other business opportunities. The Terms Sheet contemplates that the Convertible Notes will be issued with a nominal value of US$1.00 each, having a five-year term. The Notes would be convertible at the option of the holder at any time, at an issue price of US$0.069787 per share, determined as a 15% premium to the US Dollar equivalent of the volume weighted average price of Lafayette shares over the 20 trading days preceding October 6, 2006. The Convertible Notes would carry interest at 10% per annum fixed for their full term and payable half yearly in arrears. Lafayette could, at its discretion, satisfy interest by issuing Lafayette shares at a 5% discount to market at each interest payment date. The Terms Sheet also contemplates that Lafayette may retire the Convertible Notes, in whole or multiples of 25%, if at any time after two years from their issue the Lafayette share price exceeds AU$0.25 for 30 consecutive days. To facilitate the early issue of the proposed Convertible Notes, a shareholders' resolution approving their issue will be proposed at the Company's forthcoming annual general meeting. Lafayette notes that SEASAF investment committee approval must be obtained and formal documentation will need to be prepared, negotiated, and agreed after completion of a due diligence program. Once that formal documentation is signed a number of conditions precedent will need to be satisfied, which include: (a) necessary shareholder, stakeholder, and regulatory approvals being obtained; and (b) the issue of a permanent lifting order by the Philippine authorities. About Lafayette Philippines Lafayette Mining Philippines, Incorporated, is a subsidiary of Australian firm Lafayette Mining, Incorporated -- http://www.lafayettemining.com/-- which has been listed on the Australian Stock Exchange since August 1997. Lafayette Philippines is currently developing a polymetallic project involving copper, gold, zinc and silver on the Island of Rapu- Rapu in the Philippines. The Department of Environment and Natural Resources' former secretary, Mike Defensor, ordered the closing of Lafayette Philippines in 2005 when the Company's mine tailings were accidentally spilled into the Albay Gulf last October, killing thousands of fish and destroying the livelihood of fishermen in the area. The Company was also fined PHP10.7 million for violating the Clean Water Act and its environmental compliance certificate. PACIFIC PLANS: Court of Appeals Remands Case to Trial Court ----------------------------------------------------------- The Court of Appeals overturned the ruling of a Makati City Regional Trial Court that approved Pacific Plans, Inc.'s rehabilitation plan. The Troubled Company Reporter - Asia Pacific reported on May 8, 2006, that the Makati City Court approved the Rehabilitation Plan, allowing the company to continue operations to meet its obligations to plan holders. In a later TCR-AP report, the Court of Appeals suspended the implementation of the Rehabilitation plan. On October 10, 2006, the Court of Appeals overturned the ruling of the Makati Court and remanded the case to the trial court, Tetch Torres of the Philippine Daily Inquirer, reports. The decision will enable the petitioner, the Parents Enabling Parents group of pre-need plan holders, to present evidence. The Court of Appeals said the trial court should have considered a finding of the Securities and Exchange Commission that Pacific Plans became insolvent only after it transferred non-problematic plans, like fixed-value education plans and pension and life plans, to a subsidiary called Lifetime Plans Inc., the Inquirer relates. The SEC subsequently cancelled the registration of Lifetime Plans and ordered that all its assets and trust fund be reverted to Pacific Plans, the paper says. According to the TCR-AP, the SEC had insisted that Pacific Plans itself is not qualified for rehabilitation because it is liquid and solvent based on its annual financial statement. The SEC noted that Pacific Plans only became insolvent when it transferred the trust fund of non-problematic accounts, like fixed value education plans, pension, and life plans to Lifetime Plans Inc. * * * The Makati RTC had approved Pacific Plans, Inc.'s rehabilitation plan in April 2006, ensuring tuition support from 2006-2010. The Troubled Company Reporter - Asia Pacific reported on May 8, 2006, that Pacific Plans came up with a rehabilitation plan based on this school year's average fees, plus tuition support upon enrollment until the school year 2009-2010. The benefits of the Company's traditional education plans will become fixed- value benefits as at Dececmber 31, 2004, to be termed base year- end 2004 entitlement. On May 4, 2006, the Company said that it would comply with the court-approved plan, so that it could meet its obligations to its availing open-ended plan holders while retaining funds for some 18,000 plan holders who have yet to receive their education benefits. PHILIPPINE LONG DISTANCE: Expects Improved 3rd Quarter Results -------------------------------------------------------------- Philippine Long Distance Telephone Co.'s third-quarter net income is likely to exceed the second quarter's PHP6.73 billion (US$134.6 million), Reuters reports citing the company's chairman Manuel Pangilinan. The company is "benefiting from the strong peso so the FOREX loss in the second quarter is reversing to a FOREX gain in the third quarter," Mr. Pangilinan explained to reporters. PLDT will report official third-quarter results on November 7, 2006, Reuters notes. According to Reuters, PLDT's posted net income in the July- September quarter last year -- PHP8.2 billion -- may be up for revision with the adoption of new accounting standards. The firm had outstanding debts of US$2.1 billion at the end of 2005, which it wants to cut to US$1.7 billion at the end of 2006, Reuters recounts. Reuters further notes that PLDT, with a market capitalization of US$8.1 billion, is partly owned by Hong Kong's First Pacific Co. Ltd. About PLDT Based in Makati City, Philippines, Philippine Long Distance Telephone Co. -- http://www.pldt.com.ph/-- is the leading national telecommunications service provider in the Philippines. Through three principal business groups -- wireless, fixed line, and information and communications technology -- the company offers a wide range of telecommunications services to over 22 million subscribers in the Philippines across the nation's most extensive fiber optic backbone and fixed line, cellular and satellite networks. * * * Moody's Investors Service placed a Ba1 local currency corporate family rating on PLDT. Moody's also affirmed the company's Ba2 foreign currency senior unsecured ratings, with a negative outlook. Standard & Poor's placed the company's long-term foreign issuer credit rating at BB+. Standard & Poor's also affirmed its 'BB+' foreign currency rating on the company with a stable outlook. PHILIPPINE LONG DISTANCE: Opens Ventus Libertad Call Center ----------------------------------------------------------- On October 10, 2006, Philippine Long Distance Telephone Co., through its wholly owned subsidiary ePLDT, launched another call center site under the Ventus brand for outsourced call center services from US-based companies. Called Ventus Libertad, the new site is located at Libertad corner Arayat Streets, Mandaluyong City. It currently has 580 seats and offers inbound technical support, inbound sales, outbound sales, sales chat, and sales back office services to a U.S. client. Approximately PHP400 million was spent to set up the site, which now has 4,331 square meters in floor area. According to Ventus President Rosalie R. Montenegro, Ventus Libertad is part of an aggressive expansion plan that will help the PLDT Group capture a larger share of the call center business. "Aside from being part of our expansion plan, building a new site also supports our business continuity and disaster recovery strategy by giving us greater flexibility and resiliency in our operations. That will be a great advantage for us when we offer our services to prospective clients," Ms. Montenegro says. Ventus, the contact center company of ePLDT, now has 4,500 seats housed in seven sites: two in Fort Bonifacio, and one each in, Jupiter, Garnet, East Avenue, Libertad, PLDT's MGO Building in Metro Manila, and Molo in Iloilo City. By the end of 2006, it expects to increase the number of seats to 5,000. Another 1,000 seats will be added in 2007 using existing PLDT facilities. "Using existing PLDT facilities is beneficial to Ventus and PLDT. We achieve a level of cost-efficiency that other call center companies will find difficult to match," Ms. Montenegro adds. About PLDT Based in Makati City, Philippines, Philippine Long Distance Telephone Co. -- http://www.pldt.com.ph/-- is the leading national telecommunications service provider in the Philippines. Through three principal business groups -- wireless, fixed line, and information and communications technology -- the company offers a wide range of telecommunications services to over 22 million subscribers in the Philippines across the nation's most extensive fiber optic backbone and fixed line, cellular and satellite networks. * * * Moody's Investors Service placed a Ba1 local currency corporate family rating on PLDT. Moody's also affirmed the company's Ba2 foreign currency senior unsecured ratings, with a negative outlook. Standard & Poor's placed the company's long-term foreign issuer credit rating at BB+. Standard & Poor's also affirmed its 'BB+' foreign currency rating on the company with a stable outlook. SAN MIGUEL CORP: Moody's Withdraws Ba1 Foreign Currency Rating -------------------------------------------------------------- On October 10, 2006, Moody's Investor Service withdrew its (P)Ba3 preferred stock rating for San Miguel Capital Funding Limited, a 100%-owned subsidiary of San Miguel Corporation, and San Miguel's own Ba1 indicative foreign currency senior unsecured ratings. The withdrawal follows San Miguel's decision to delay its capital market debt plan until 2007. At the same time, Moody's has affirmed its Ba1 corporate family rating with a stable outlook. "The affirmation of the Ba1 corporate family rating reflects Moody's view that SMC's decision to delay the debt issuance should not materially impact the group's long-term rating unless the decision is carried past June 2007," says Moody's Charles Macgregor, VP/Senior Credit Officer, lead analyst for the company. "SMC enjoys strong brand equity and commanding positions in most of its markets, which are stable by nature, providing it with a robust and healthy platform for cash flow generation," says Moody's Macgregor, adding, "Refinancing risk is, however, an emerging consideration, given the company's ongoing reliance on short-term bank facilities." In explaining the rating, Moody's says that -- in accordance with various of its global rating methodologies -- San Miguel's operating profile is consistent with an investment grade rating. However, its strengths are tempered by weakness in certain key financial credit metrics -- which pursuant to the rating methodology -- are more indicative of a Ba/single B profile, specifically the ratios of [1] FCF/Debt; [2] Total coverage; and [3] Debt/EBITDA. In part, these metrics reflect the impact of the acquisition finance associated with the takeover of National Foods Limited in 2005, but which the application of free cash to debt reduction may mitigate. The ratings outlook is stable, given the fundamental strength of San Miguel's various business segments, which should help generate free cash flow to improve financial metrics to those more appropriate for its rating. Moody's expects San Miguel will sustain an EBITA margin of around 10%-12%, reduce Adjusted Debt to Adjusted EBITDA to below 3.0x by 2008, and grow Adjusted Retained Cash Flow to Adjusted Net Debt to above 20% by 2007. The ratings may experience upward pressure with continued growth outside of the Philippines and improved margins in the beverages and food groups. This outcome may be indicated by a stabilization of EBITA margins at 13% or higher, Adjusted Debt/EBITDA approaching 2x, and Adjusted RCF/Adjusted Net Debt at around 22%. On the other hand, the ratings may experience downward pressure should San Miguel experience problems in rolling its bank facilities. In addition, downward pressure may follow delays in reducing leverage, either due to additional acquisitions, or unexpected costs associated with expansion and problems absorbing input price increases, leading in turn to EBITA margins falling below 10%, Adjusted Debt/EBITDA exceeding 3.5x in 2007, and FCF/Total Adjusted debt remaining negative beyond 2007. ================= S I N G A P O R E ================= H.M.C.S. PTE: Creditors' Proofs of Debt Due on November 8 --------------------------------------------------------- H.M.C.S. Pte Ltd, which was placed under voluntary liquidation, required its creditors to submit their proofs of debt by November 8, 2006, to Liquidator Wee Hui Pheng. Failure to comply with the requirement will exclude the creditor from sharing in the company's distribution of dividend. The Liquidator can be reached at: Wee Hui Pheng c/o Wee Seng Tiong & Co. 1 Coleman Street #06-10 The Adelphi Singapore 179803 SEA CONTAINERS: To Strike Compromise Agreement with Creditors ------------------------------------------------------------- Bob MacKenzie, Chief Executive of Sea Containers Ltd is trying to arrange a compromise agreement with its creditors, Thisismoney reports. According to the report, October 15, 2006, is the deadline for the company to pay back EUR60 million tranche -- out of EUR340 million debt -- to its creditors. However, according to Company sources, there is a big probability that Sea Containers cannot find cash, thus it can seek Chapter 11 protection from creditors, the report adds. About Sea Containers Sea Containers Ltd -- http://www.seacontainers.com/-- is a Bermuda registered company with regional operating offices in London, Genoa, New York City, Rio de Janeiro, Sydney and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange. The company is a market leader in its three main business areas: passenger transport, leisure and marine container leasing. In addition to its three principal divisions, the company has associated investments in property, publishing, and plantations. Sea Containers admitted in August 2006 that revenue growth in the first year of its new GNER franchise was three times lower than expected, at 3.3%. In June 2006, Moody's Investors Service downgraded the senior unsecured ratings and confirmed the senior secured rating of Sea Containers -- Senior Unsecured to Caa3, Senior Secured at B3. Moody's said the outlook is negative. On May 4, 2006, Standard & Poor's Ratings Services lowered its ratings on SeaContainers, including lowering the corporate credit rating to 'CCC-' from 'CCC+'. All ratings remain on CreditWatch with negative implications. A Troubled Company Reporter -- Asia Pacific reported on Aug. 15, 2006, that Standard & Poor's Ratings Services said that its ratings on Sea Containers Ltd., including the 'CCC-' corporate credit rating, remain on CreditWatch with negative implications. Ratings were lowered to current levels May 1, 2006; they were initially placed on CreditWatch with negative implications on August 25, 2005. PETROLEO BRASILEIRO: LatAm's Second Most Sustainable Company ------------------------------------------------------------ Among the big Latin American oil/gas companies, Shell and Petrobras are the most effective at sustainability, social, ethical, and governance programs, according to a study by Management & Excellence and LatinFinance. The Biggest and Best Six in Latin America are: 1) Shell -- 90.26% 2) Petrobras -- 79.94% 3) Repsol -- 79.08% 4) Chevron -- 77.08% 5) Pemex -- 53.58% 6) Enap -- 44.99% Delivering record financial results in 2004 and 2005, Latin America's oil companies have attracted international investors in droves. Last year, Mexico's Pemex, the world's 11th largest oil company in terms of reserves, reported record revenues of US$86.1 billion. The big players are investing hundreds of millions of dollars in sustainability and social projects that are designed to ensure their long-term success and acceptance. In Venezuela, Chevron joined forces with local giant PDVSA, investing US$3.6 billion in the Hamaca facility. The investments have paid off in cleaning up oil's image in Latin America. Twice Chevron received the Orden El Brillante award in Venezuela and last September was awarded additional drilling rights off the coast. But sustainability investments have gone far beyond construction and modernization. Petrobras has invested over US$120 million in social programs over the last two years alone. It spends US$12 million on educating largely underprivileged children in Brazil. Shell, which has been in Brazil for over 93 years, helped restore the famous Christ the Redeemer statue in Rio de Janeiro. Chile's state-owned ENAP published its first detailed social responsibility report last year and runs a Casa Abierta program for local communities at one of its main refineries. Plagued by regular environmental pollution scandals, Latin America's biggest oil companies are cleaning up their acts and being transparent about good and bad news alike. Pemex reports 399 mostly smaller oil spills for 2005, but reduced its air emissions from 1,000 tons to 700 tons over the last four years. Spain's Repsol experienced over 1,300 spills last year while investing over US$400 million in environmental projects. Petrobras does best among the purely Latin American companies in corporate governance, doing justice to its large international investor pool. The company is one of very few Latin companies to maintain a Board nomination committee. The study is the first on the most sustainable and socially responsible oil/gas companies in Latin America, scoring the companies according to their compliance with nearly 300 international and national sustainability, social, ethics, governance, and transparency standards. Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro S.A. aka Petrobras was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. * * * Petroleo Brasileiro SA's long-term corporate family rating is rated Ba3 by Moody's. Fitch Ratings also assigned these ratings on Petroleo Brasileiro's senior unsecured notes: Maturity Date Amount Rate Ratings ------------- ------ ---- ------- April 1, 2008 US$400,000,000 9% BB+ July 2, 2013 US$750,000,000 9.125% BB+ Sept. 15, 2014 US$650,000,000 7.75% BB+ Dec. 10, 2018 US$750,000,000 8.375% BB+ Fitch upgraded the foreign currency rating of Petrobras to BB+ from BB, with positive outlook, in conjunction with Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. PETROLEO BRASILEIRO: Confirms Light Oil Find in Santos Basin ------------------------------------------------------------ Petroleo Brasilero S.A., also known as Petrobras has confirmed there is a significant volume of 300 API light oil in a new exploratory frontier in the Santos Basin. Testing carried out in a vertical well revealed a flow of 4,900 barrels of oil and 150,000 cubic meters of natural gas a day, through a 5/8 inch opening, with stabilized pressure behavior. The confirmation was made after the test carried out at the 1- RJS-628A well was concluded and detected a highly productive reservoir under a 2,000-meter thick layer of salt ("pre-salt"). The development of the discovery, made by well 1-RJS-628 A in block BM-S-11, had already been communicated to the market on June 11, 2006. This block is operated by Petrobras (65%), in a consortium with BG (25%), and Petrogal (10%). The confirmed discovery was disclosed to the National Petroleum, Natural Gas, and Biofuel Agency, under the terms of the legislation in effect. Additional investments will be necessary, initially with the drilling of the first extension well for a complete assessment of the oil volume in the reservoir that was found. Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro S.A. aka Petrobras was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. * * * Petroleo Brasileiro SA's long-term corporate family rating is rated Ba3 by Moody's. Fitch Ratings also assigned these ratings on Petroleo Brasileiro's senior unsecured notes: Maturity Date Amount Rate Ratings ------------- ------ ---- ------- April 1, 2008 US$400,000,000 9% BB+ July 2, 2013 US$750,000,000 9.125% BB+ Sept. 15, 2014 US$650,000,000 7.75% BB+ Dec. 10, 2018 US$750,000,000 8.375% BB+ Fitch upgraded the foreign currency rating of Petrobras to BB+ from BB, with positive outlook, in conjunction with Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. SEAGATE TECH: Inks Distribution Agreement with SED International ---------------------------------------------------------------- SED International, Inc., disclosed the addition of Seagate Technology to its vendor line card. Effective October 1, 2006, SED became a Seagate Authorized Distributor for the United States and Latin America. This adds the Seagate branded products to its storage offerings, which already included the Maxtor brand. "We are very excited about this new partnership," said Jeanie Diamond, CEO and Chairman of the Board. "Our relationship with Seagate dates back to the 1980's and we are very proud to once again partner with such a dynamic company. Seagate is one of the most respected brands in the world and a true leader in our industry. This provides our customers with more options and solutions to meet the demands of our customers. At a time when the storage segment is exploding, we view this partnership as an extremely important addition to our company." "The addition of SED as a Seagate authorized distributor extends Seagate's reach to a new set of resellers who will now be able to take advantage of Seagate's cutting-edge hard drive technology and capabilities, product breadth, and best-in-class service and support and programs to strengthen their business," said Jeff Loebbaka, senior vice president of Global Channel Sales and Corporate Marketing at Seagate. "By offering both Seagate and Maxtorbranded drives, SED will be able to give resellers more choice across a broader range of value propositions." About SED International, Inc. Headquartered in Atlanta, Georgia, SED International, Inc., -- http://www.sedonline.com/-- founded in 1980 is a provider of wireless communications, computer hardware, and consumer electronics to channel partners throughout the United States and Latin America. It has additional sales offices and distribution centers in Dallas, Texas; Miami, Florida; City of Industry, California; Buenos Aires, Argentina; and Bogota, Columbia. About Seagate Technology Headquartered in Scotts Valley, California, Seagate Technology -- http://www.seagate.com/-- is the worldwide leader in the design, manufacturing and marketing of hard disc drives, providing products for a wide-range of Enterprise, Desktop, Mobile Computing, and Consumer Electronics applications. Seagate's business model leverages technology leadership and world-class manufacturing to deliver industry-leading innovation and quality to its global customers, and to be the low cost producer in all markets in which it participates. The company is committed to providing award-winning products, customer support and reliability to meet the world's growing demand for information storage. Seagate Technology has R&D and product sites in: Silicon Valley, California; Pittsburgh, Pennsylvania; Longmont, Colorado; Bloomington and Shakopee, Minnesota; Springtown, Northern Ireland; and Singapore. Manufacturing and customer service sites are located in: Singapore, California; Colorado; Minnesota; Oklahoma; Northern Ireland; China; Thailand and Malaysia. * * * Moody's confirmed Seagate's Corporate Family Rating of Ba1 and upgraded ratings of Seagate's US$400 million senior notes 8%, due 2009 to Ba1, Maxtor's remaining US$135 million of the US$230 million 6.8% convertible senior notes, due 2010 to Ba1 from B2 and Maxtor Corporation's US$60 million 5-3/4% convertible subordinated debentures, due 2012 to Ba2 from Caa1. The rating outlook is stable. Standard and Poor's gave the company a 'BB' rating for both its long term foreign and long term local issuer credit effective on November 6, 2000. STANDARD AERO: Moody's Confirms B2 Corporate Family Rating ---------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology, the rating agency confirmed its B2 Corporate Family Rating for Standard Aero Holdings Inc. Additionally, Moody's revised its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- Sr. Secured Revolving Credit Facility due 2010 B2 Ba3 LGD2 29% Sr. Secured Term Loan B due 2012 B2 Ba3 LGD2 29% 8.25% Sr. Subor. Notes due 2014 Caa1 Caa1 LGD5 81% Moody's explains that current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). About Standard Aero Standard Aero Holdings Inc.-- http://www.standardaero.com-- maintains, repairs, and overhauls engine parts, wheels, and braking systems for military and business aircraft. Previously divided into two groups -- design and manufacturing and engine repair and overhaul -- the company was split when investment firm Doughty Hanson sold the group for US$1.4 billion to US investment firm The Carlyle Group and British aerospace parts manufacturer Meggitt. Standard Aero operates facilities strategically located in Canada, the United States, Europe, Australia, Singapore and other locations in Asia. * * * Standard & Poor's Ratings Services on August 23, 2006, removed its ratings on Standard Aero Holdings Inc. from CreditWatch with negative implications, where they were placed Jan. 27, 2006. At the same time, Standard & Poor's affirmed its ratings, including its 'B+' long-term corporate credit rating, on the company. The outlook is negative, reflecting expectations of future earnings pressure as a result of the recent renegotiation of a key contract. In February 2006, Moody's Investors Service affirmed the ratings of Standard Aero Holdings, Inc., Corporate Family Rating of B2, and has changed the ratings outlook to negative from stable. The change in outlook was prompted by the company's recent announcement that a key customer, Kelly Aviation Center, L.P. ('KAC') will not exercise a subcontract renewal past February 2007, contrary to the company's expectations, affecting approximately one-third of the company's revenue base. Standard Aero has a Speculative Grade Liquidity Rating of SGL-3. VELOOCO GENERAL: Creditors Must Prove Claims by October 20 ---------------------------------------------------------- Velooco General Contractors Pte Ltd, which is in liquidation, required its creditors to file their proofs of debt by October 20, 2006, to Liquidators Chee Yoh Chuang and Lim Lee Meng. Failure to comply with the requirement will exclude the creditor from sharing in the company's distribution of dividend. The Liquidators can be reached at: Chee Yoh Chuang Lim Lee Meng c/o 18 Cross Street #08-01 Marsh & McLennan Centre Singapore 048423 ================= S R I L A N K A ================= SRI LANKA TELECOM: Fitch Affirms 'BB-' Issuer Default Ratings ------------------------------------------------------------- Fitch Ratings has affirmed Sri Lanka Telecom Limited's Long-term foreign currency Issuer Default rating at 'BB-' with a Negative Outlook. Meanwhile, the agency also affirmed the company's 'BB-' Long-term local currency IDR and its 'AAA(lka)' National Long-term rating, both with Stable Outlooks. At the same time, Fitch also affirmed the rating on SLT's existing US$100 million senior unsecured notes due 2009 at 'BB-'. SLT's ratings reflect its strong and improving financial profile as well as its diversified operations with a dominant share of the local access (74%) and international long distance markets (est.70%). It also boasts the largest market share in internet and data services (est.65%). Although SLT lost market share in the local access segment owing to its competitors being first to market with launching CDMA-based fixed-line services, the negative impact has been contained, with SLT reporting robust subscriber growth with its own fixed-wireless services launched in November 2005. Its mobile arm, Mobitel, has turned around and is gaining subscribers at a rapid pace. Although SLT's traditional fixed-line business is expected to post only modest growth, fixed-wireless and mobile services are expected to underpin the company's earnings and cash flow growth over the medium term. At the same time, the ratings consider the increasing competition in SLT's main business segments, sustained network related investments by both cellular and fixed-wireless competitors and the pressure on tariffs. The ratings also acknowledge the uncertainties that persist in the regulatory environment, which is still developing. Fitch says SLT's credit metrics are strong for the current ratings. As at end-H106, SLT had net adjusted leverage of 0.3x and FFO net interest cover of 12.8x. Its capital structure is sound with total adjusted debt to capitalization of 38.2%. Although SLT's capital expenditure has been in the range of 20%- 35% of sales, it has continuously reported strong free cash flows. Fitch anticipates SLT will continue to post strong positive free cash flows and further improving its financial profile, notwithstanding the increasing competition in key business segments and capital expenditure of around LKR8.0 billion to LKR10.0 billion per annum over the short- to medium- term. Fitch notes that SLT has sound liquidity and financial flexibility. At end-H106, SLT had cash reserves of LKR15.6 billion against current maturities of only LKR3.7 billion. Debt maturities peak in 2009 when the US$100 million bond is due to mature. The only major contingent liability of SLT is in relation to a judgment delivered by a Sri Lankan court invalidating SLT's last tariff revision and necessitating the refund of its incremental billings from September 2003. SLT's subsequent appeal on the ruling is pending before the Supreme Court. Fitch estimates SLT's potential net refunds to be in the range of LKR3bn for the 21 months to June 2005 (roughly around LKR5.0 billion up to September 2006). Although an outflow of this magnitude would weaken SLT's leverage, it would still remain comfortable for the current rating level. In the event that the company is required to revert to pre-September 2003 tariffs, SLT can use the index- adjusted formula to readjust the tariff back to current levels. The Stable Outlook for the local currency IDR and the National Long-term rating is underpinned by expectations for continuing robust free cash flow generation and leadership in the fixed- line and ILD segments (although some deterioration is likely) along with an improvement in its mobile position. Meeting or exceeding performance expectations and dilution of government ownership will be positive for SLT's local currency IDR. Meanwhile, the rating Outlook on SLT's foreign currency IDR, which is currently constrained by the sovereign rating, reflects the Outlook of the Democratic Socialist Republic of Sri Lanka's Long-term foreign currency IDR. Any positive or negative rating action on the sovereign would therefore lead to a corresponding rating action on SLT's foreign currency IDR. =============== T H A I L A N D =============== NFC FERTILIZER: Bankruptcy Court Ends Subsidiary's Rehab. Plan -------------------------------------------------------------- NFC Fertilizer Pcl disclosed in a statement submitted to the Stock Exchange of Thailand that the Central Bankruptcy Court terminated the business rehabilitation plan of its subsidiary, Rayong Bulk Terminal Co Ltd. According to the company's statement, RBT, which is 83 % owned by NFC Fertilizer, has already met the terms and conditions stipulated under its rehabilitation plan. Thus, the Bankruptcy Court issued an order to terminate the plan effective October 5, 2006, onwards. On June 22, 2005, the Central Bankruptcy Court approved the business rehabilitation plan of RBT and appointed National Advisory Co. Ltd to act as its administrator. * * * Headquartered in Bangkok, NFC Fertilizer Public Company Limited -- http://www.nfc.co.th-- produces chemical fertilizer containing nitrogen, phosphate, and potash, under its Nation Fertilizer brand name. Additionally, it imports and distributes urea, ammonium sulfate, and potassium chloride fertilizers. The Company also distributes phosphoric acid and gypsum, which are by-products of its fertilizer production. In the third quarter of 2004, the Company had entered into a debt restructuring in accordance with its business rehabilitation plan. The Company then reported a gain on debt restructuring of THB11.29 billion, which was presented as an extraordinary item in the statement of income for the year ended December 31, 2004. Subsequently, on August 24, 2004, the Plan Administrator made a request to Thailand's Central Bankruptcy Court to cancel its business rehabilitation, which the Court approved on September 13, 2004. According to The Troubled Company Reporter - Asia Pacific, the company's consolidated income statement for the second quarter ended June 30, 2006, shows a net profit of THB510.57 million, a turnaround compared to a THB100.237-million net loss in the same period of 2005. Recently, the management proposed to change the Company's business plan toward providing logistic services including all warehouses and related services. Presently, the shareholders have not had a resolution on such proposal. The Company is in the process of reviewing its plan. The Company is currently listed under the "Non-Performing Group" sector of the Stock exchange of Thailand. ********* 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 ***