/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/061016.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 Monday, October 16, 2006, Vol. 9, No. 205 Headlines A U S T R A L I A AGENIX LIMITED: Seeks Partner to Finance Flagship Project ALLEN NO 3: Final Meeting Slated for October 19 AUSTRALIAN MARITIME: Members Pass Resolution to Wind Up Firm BK NOMINEES: Prepares to Declare Dividend on October 30 BOB BROWN: Courts Issue Wind-Up Order BOYLAN HOTELS: Will Declare First and Final Dividend CASA AUSTRALIA: Members and Creditors' Final Meeting on Oct. 19 COMMERCIAL ASSETS: Members & Creditors to Receive Wind-Up Report CONCORDE INTERNATIONAL: Members' Final Meeting Set for Oct. 20 DAWENSI HOLDINGS: Members Opt to Close Business FONFIELD PTY: Members Resolve to Close Business FOOT LOCKER: Moody's Confirms Ba1 Corporate Family Rating INSOLVENCY NOTICES: Members Resolve to Wind Up Firm JENMARO PTY: Enters Voluntary Liquidation KHALIL SERVICES: Court Issues Wind-Up Order KINETIC CONCEPTS: Dennert Ware to Retire as CEO KINGSLEY REAL: Supreme Court Issues Wind-Up Order MACKINLAY'S MAINTENANCE: To Declare Priority Dividend on Nov. 1 METRO TRANSPORT: Members to Receive Liquidator's Report MGM MIRAGE: Inks US$7-Bln Fifth Amended and Restated Loan Pact MPS SECURITY: Inability to Pay Debts Prompts Wind-Up MSD ALUMINUM: Supreme Court Orders Wind-Up OLOLA INVESTMENTS: Members Opt for Voluntary Liquidation OXFORD INDUSTRIES: Moody's Confirms Ba3 Corporate Family Rating PANAVISION INC: Moody's Affirms B2 Corporate Family Rating PANAVISION INC: Acquires Plus 8 Digital PEABODY ENERGY: Moody's Assigns Ba1 Rating to US$900MM Sr. Notes PICCWICK PTY: Liquidator Fitzgerald to Present Wind-Up Report PINEWOOD COMMUNITY: Members' Final Meeting Set on October 19 RIGHT ROOFING: Members Decide to Wind Up Operations ROSTEDEN PTY: To Declare Dividend for Priority Creditors SALAMANDER BAY: Undergoes Wind-Up Proceedings SOFOM PTY: Placed Under Voluntary Wind-Up STONELAKE HOLDINGS: To Declare Preferential Dividend on Oct. 24 TAKING CARE: Enters Wind-Up Proceedings TRANSPORT EMPLOYMENT: To Declare Final Dividend on October 17 TRINITY BUSINESS: To Declare First and Final Dividend UNIVERSAL COMPRESSION: Moody's Confirms Ba2 Corporate Family Rtg WATKINS PLANT: To Declare First and Final Dividend on Oct. 23 C H I N A & H O N G K O N G ALERIS INTERNATIONAL: Moody's Confirms B1 Corporate Family Rtg ASAHI GLASS: Members Opt for Voluntary Wind-Up ATMEL-WM HK: Members to Receive Wind-Up Report CAMA SERVICES: Enters Wind-Up Proceedings CHINA CAPITAL: Enters Voluntary Wind-Up COTAC LTD: Joint Liquidators Ceased to Act DU WIN GARMENTS: To Wind Up Business FAIRFIELD DEVICES: Members' Final Meeting Set on November 6 FERRO CORP: Auditor Gives Adverse Opinion on Internal Control FILA CHINA: Creditors' Proofs of Claim Due on November 8 HARBOUR CRAFT: Sole Member Pass Special Resolution HARMONY DEVELOPMENT: Placed Under Members' Voluntary Wind-Up HARTCOURT COS: Accumulated Deficit Tops US$67.8MM at Aug. 31 HARTCOURT COMPANIES: Restates 2005 & 2004 Financial Statements IMPRESS OFFSET: Annual and Final Meetings Fixed on November 8 IN-WORK INTERNATIONAL: Enters Voluntary Liquidation INTERBREW ZHEJIANG: Sole Member Opt to Liquidate Business INVERNESS MEDICAL: Moody's Junks Senior Subord. Bond's Ratings JACUZZI BRANDS: Apollo Merger Cues S&P to Put Ratings on Watch JIK SING: Members Resolve to Wind Up Firm MIZUHO CORPORATE: Joint Liquidators Steps Aside NEW CHINA INVESTMENTS: Final Meeting Slated for November 6 NEW CHINA NOMINEES: Members and Creditors to Hear Wind-Up Report NG CHEONG: Placed Under Voluntary Liquidation PETROLEOS DE VENEZUELA: Halts Gasoline Export to Cuba & the U.S. PETROLEOS DE VENEZEULA: Sends Discounted Fuel to Nicaragua PILLAR EDUCATION: Court Orders Operations' Wind Up PROTAN PLAZA: Commences Wind-Up of Operations SUPER DATA: Members Agree to Wind Up Operations I N D I A EASTMAN KODAK: Moody's Assigns Loss-Given-Default Ratings EASTMAN KODAK: Names Frank Sklarsky as Chief Financial Officer ICICI BANK: To Provide INR4-Crore Funding to WaterHealth Int'l ICICI BANK: Plans to Launch More Remittance Products IFCI LTD: Given 2,74,430 Preference Shares in Dhampur Sugar INDIAN OIL: Discloses Outcome of 47th Annual General Meeting I N D O N E S I A PERUSAHAAN LISTRIK: Raises US$1 Bil. in Oversubscribed Bond Sale * Indonesia to Swap 2007-2009 Bonds with 14-Year Paper * Indonesia Expects Ratings Upgrade After IMF Payback J A P A N ALL NIPPON AIRWAYS: Launches ANA CARD CNET NETWORKS: Names Neil Ashe as New Chief Executive Officer CNET NETWORKS: Discloses Findings of Stock Options Probes CNET NETWORKS: Extends Consent Offering for 0.75% Senior Notes J. CREW: Moody's Assigns Loss-Given-Default Rating KIYO BANK: Absorbs Competitor Wakayama Bank L-JAC THREE: S&P Rates JPY71.889-Bil. Trust Certificates MITSUBISHI MOTORS: Builds New Research Vehicle for Dev't Project MITSUI LIFE: JCR Affirms BBB Rating on Ability to Pay Claims SHIMIZU BANK: Fiscal 2006 Records JPY5.73-Billion Net Loss SNOW BRAND: Moody's Lifts Senior Unsecured Debt Ratings to Ba2 SOFTBANK CORP: Founder Pledges Collateral to Refinance Debt YAZAKI INT'L: S&P Whips Long-Term Credit Rating to B+ from BBB- K O R E A TRIGEM COMPUTER: Sale Plan Abandoned, Back to Court Receivership * Korea Remains Intact From the Nuke Test, Vice Minister Says * Bank of Korea Froze Key Interest Rate Amid North Test Concerns M A L A Y S I A ANTAH HOLDINGS: Total Default for Sept. Hits MYR255 Million COMSA FARMS: Executive Director Chia Yam Kung Resigns FEDERAL FURNITURE: Court Okays Capital & Share Premium Reduction METROPLEX BERHAD: Sept. 30 Default Tops MYR1.8 Billion METROPLEX BERHAD: MSEMI's Injunction Hearing Set for Oct. 2 METROPLEX BERHAD: Wind-Up Petition Hearing Moved to December 14 SS&C TECHNOLOGIES: Moody's Assigns Loss-Given-Default Rating N E W Z E A L A N D AUCKLAND ALUMINUM: Court Appoints Joint Liquidators CARTER HOLT HARVEY: Fined NZ$900,000 for Mislabeling Timber CARTER HOLT: Commerce Commission Clears CRBF Assets Acquisition DENNY'S CORP: Closes US$62-Mln Property Sale to National Retail DT COMPUTERS: Hearing of Liquidation Petition Slated for Oct. 30 EUPHORIA LIMITED: Creditors Must Prove Debts by October 31 FELTEX CARPETS: Godfrey Hirst Agrees to Retain Feltex CBA GAMESTOP CORP: Moody's Confirms Ba3 Corporate Family Rating MT. VIEW: Court Sets Date to Hear Liquidation Petition MANUKAU YOUTH: Names Brown and Rodewald as Liquidators PACIFIC COMMUNICATIONS: Appoints Merlo as Liquidator POUND AT NITE: Liquidation Petition Hearing Set on Nov. 6 WHITEHART DEVELOPMENTS: Liquidation Hearing Set on October 30 WORLD COMMERCE: Court Sets Date to Hear ABC's Liquidation Bid YARRAMAN WINERY: Kabani & Company Raises Going Concern Doubt P H I L I P P I N E S ABS-CBN BROADCASTING: Negotiating Possible PHP4.5 Bln Loan MAIDENFORM BRANDS: Moody's Assigns B1 Corporate Family Rating RIZAL COMMERCIAL BANKING: Moody's Gives Hybrid Issue a B3 Rating WENDY'S INT'L: Files Declaratory Judgment Against Noteholders * IMF Urges Philippines to Stay Course on Reforms * September Net Portfolio Inflows Increased to US$373.7 Million S I N G A P O R E ALTIMATE ENGINEERING: Faces Wind-Up Proceedings ASIA CRANE: Pays Final Dividend on October 11 CHEERS HOLDINGS: Last Day for Filing of Claims Fixed on Nov. 6 CKE RESTAURANTS: Matthew Goldfarb Remains as Member of the Board CONVENIENCE SHOPPER: Prepares for Distribution of Assets GULIANO PTE: Creditors Proofs of Claim Due on November 6 JIL COMPONENTS: Final Creditors' Meeting Held on October 13 NYQUIST ASIA: Creditors Must Prove Debts by November 6 REFCO INC: Chap. 7 Trustee Wants Rogers Funds Claims Pact Okayed REFCO INC: Wants to Set Solicitation & Tabulation Procedures RICH VISION: Court Sets Date to Hear Wind-Up Petition T H A I L A N D IAP WORLDWIDE: S&P Affirms B Corp. Credit Rating, Alters Outlook SUNTECH GROUP: Turns Around with THB7.861-Bil Profit in FY 05-06 THAI DURABLE: Auditor Raises Going Concern Doubt - - - - - - - - ================= A U S T R A L I A ================= AGENIX LIMITED: Seeks Partner to Finance Flagship Project --------------------------------------------------------- Agenix Limited has warned that spending on its flagship project -- a way of detecting blood clots -- will be cut back until it can find a partner, because it does not intend to conduct "later-stage clinical trials. . .without financial support," Courier Mail reports. The report reveals that the company's product -- ThromboView -- is in second-round regulatory trials and almost AU$10.2 million was spent on it last year. A timeline was previously set for December 2006 for ThromboView's sales, marketing, and distribution agreement. According to current managing director Neil Leggett, "there's been pressure" since that announcement and no public timeline is being given now, Courier Mail relates. Mr. Leggett says Agenix's ThromboView expenditure would become "negligible." Thus, it is hoped a partner will finance the project. Agenix's annual report also mentioned plans to spin off its human health business and expand its development pipeline, Courier Mail relates. But the paper reveals that the company also faces a AU$500,000- plus lawsuit from a consultant regarding the sale of its animal health business. However, Agenix argues it has no liability. About Agenix Agenix Limited -- http://www.agenix.com/-- is a global health and biotechnology Company based in Brisbane, Australia. The Company runs a suite of established businesses in human and animal health diagnostics, and is focused on growing its world- leading molecular diagnostic imaging R&D program. Agenix's lead candidate is its high-technology ThromboView blood clot-imaging project, which is currently undergoing Phase II human trials in the United States and Canada. ThromboView uses radio-labeled antibodies to locate blood clots in the body, and could revolutionize the US$3 billion global clot diagnostic imaging market. ThromboView is being developed with the assistance of the Federal Government through its START scheme. Agenix employs 110 staff and sells its products to more than 50 countries. ThromboView is a registered trademark of AGEN Biomedical. Coming from a AU$161,000 net profit in 2002, Agenix ended 2003 with a AU$811,000 net loss, owing to huge R&D expense on Thromboview. By August 2004, the Company had announced a AU$14.3-million loss for the six months ending June 30, 2004, largely due to increased investments and one-off items including legal fees associated with the Synbiotics patent case which was resolved earlier, costs associated with the terminated Peptech merger, additional licenses, improvements made to manufacturing and regulatory infrastructure and losses associated with Milton Pharmaceuticals. Milton was sold in February 2005, but the Company still suffers from continued losses. In the Company's report on its financials for the year ending June 30, 2005, net loss was pegged at AU$12 million. ALLEN NO 3: Final Meeting Slated for October 19 ----------------------------------------------- Allen No 3 Pty Ltd, which is in liquidation, will hold a final meeting for its members and creditors on October 19, 2006, at 10:30 a.m. During the meeting, Liquidator R. G. Mansell will present an account regarding the company's wind-up and property disposal activities. The Liquidator can be reached at: R. G. Mansell R. G. Mansell & Associates Level 3, 118 Queen Street Melbourne Australia AUSTRALIAN MARITIME: Members Pass Resolution to Wind Up Firm ------------------------------------------------------------ Members of Australian Maritime Surveillance Pty Ltd held a general meeting on September 26, 2006, and passed a special resolution to voluntarily wind up the company's operations. The Joint and Several Liquidators can be reached at: Peter G. Yates David J. F. Lombe Deloitte Touche Tohmatsu Grosvenor Place, 225 George Street Sydney, New South Wales 2000 Australia Telephone:(02) 9322 7000 BK NOMINEES: Prepares to Declare Dividend on October 30 ------------------------------------------------------- BK Nominees Pty Ltd formerly known as Deluxe Services Australia Pty Ltd, which is in liquidation, will declare the first and final dividend for its preferred unsecured creditors on October 30, 2006. Creditors who were unable to prove their debts by October 9, 2006, will be excluded from sharing in the dividend distribution. The Liquidator can be reached at: M. C. Hall PPB Chartered Accountants 10/F, 26 Flinders Street Adelaide, South Australia 5000 Australia Telephone: 8211 7800 BOB BROWN: Courts Issue Wind-Up Order ------------------------------------- On September 21, 2006, the Supreme Court of New South Wales issued an order to wind up Bob Brown Road Transport Pty Ltd. The next day, the Federal Court of Australia also ordered to wind up the company. Accordingly, Steven Nicols was appointed as liquidator. The Liquidator can be reached at: Steven Nicols Level 2, 350 Kent Street Sydney, New South Wales 2000 Australia BOYLAN HOTELS: Will Declare First and Final Dividend ---------------------------------------------------- Boylan Hotels Pty Ltd, which is in liquidation, will declare the first and final dividend for its preferred unsecured creditors on October 30, 2006. Creditors who were unable to prove their claims on October 9, 2006, will be excluded in the company's distribution of dividend. The Liquidator can be reached at: P. I. Macks PPB Chartered Accountants 10th Floor, 26 Flinders Street Adelaide, South Australia 5000 Australia Telephone: 8211 7800 CASA AUSTRALIA: Members and Creditors' Final Meeting on Oct. 19 --------------------------------------------------------------- Members and creditors of Casa Australia Pty Ltd will hold a final meeting on October 19, 2006, at 10:30 a.m. At the meeting, Liquidator P. Newman will present accounts regarding the company's wind-up and property disposal exercises. The Troubled Company Reporter - Asia Pacific previously reported that the Company commenced a wind-up of its operations on January 12, 2006. The Liquidator can be reached at: Philip Newman HLB Mann Judd Chartered Accountants 1st Floor, 160 Queen Street Melbourne 3000 Australia COMMERCIAL ASSETS: Members & Creditors to Receive Wind-Up Report ---------------------------------------------------------------- A final meeting of the members and creditors of Commercial Assets Pty Ltd, which is in liquidation, will be held on October 19, 2006, at 10:15 a.m. At the meeting, Liquidator Mulvaney will report on the company's wind-up and property disposal exercises. The Liquidator can be reached at: B. N. Mulvaney Bruce Mulvaney & Co 1st Floor, 613 Canterbury Road Surrey Hills, Victoria 3127 Australia Telephone:(03) 9896 9000 Facsimile:(03) 9896 9001 CONCORDE INTERNATIONAL: Members' Final Meeting Set for Oct. 20 -------------------------------------------------------------- Concorde International Travel Services Pty Ltd, which is in liquidation, will hold a final meeting for its members on October 20, 2006, at 9:30 a.m. At the meeting, members will receive the liquidators' account of the company's wind-up and property disposal activities. The Liquidators can be reached at: Keiran Hutchison John Gibbons Ernst & Young Level 37 680 George Street Sydney, New South Wales 2000 Australia Telephone: 02 9248 5864 DAWENSI HOLDINGS: Members Opt to Close Business ----------------------------------------------- Members of Dawensi Holdings Pty Ltd held a general meeting on September 15, 2006, and resolved through a special resolution to voluntarily wind up the company's operations. The Joint and Several Liquidators can be reached at: Peter G. Yates Simon Cathro Deloitte Touche Tohmatsu Grosvenor Place, 225 George Street Sydney, New South Wales 2000 Australia Telephone:(02) 9322 7000 FONFIELD PTY: Members Resolve to Close Business ----------------------------------------------- At a general meeting held on September 25, 2006, the members of Fonfield Pty Ltd resolved to close the company's operations and distribute the proceeds of its assets disposal. George Duff Downie Raffan was subsequently named as liquidator. The Liquidator can be reached at: G. D. D. Raffan Level 6, 8 West Street North Sydney, New South Wales 2060 Australia FOOT LOCKER: Moody's Confirms Ba1 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 US and Canadian Retail sector, the rating agency confirmed its Ba1 Corporate Family Rating for Foot Locker, Inc. and upgraded its Ba2 rating on the company's US$200 million 8.5% seniordebentures to Ba1. In addition, Moody's assigned an LGD4 rating to notes, suggesting noteholders will experience a 60% 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%). Headquartered in New York City, Foot Locker, Inc. (NYSE: FL) -- http://www.footlocker-inc.com/-- retails athletic footwear and apparel. The company operates approximately 3,900 athletic retail stores in 17 countries in North America, Europe, and in Australia under the brand names Foot Locker, Footaction, Lady Foot Locker, Kids Foot Locker, and Champs Sports. INSOLVENCY NOTICES: Members Resolve to Wind Up Firm --------------------------------------------------- At an extraordinary general meeting held on September 27, 2006, the members of Insolvency Notices Pty Ltd resolved to voluntarily wind up the company's operations and appointed Robert Peile as liquidator. Accordingly, Mr. Peile required the company's creditors to submit their proofs of claim by October 24, 2006. The Liquidator can be reached at: Robert Peile 3 John Davey Avenue Cronulla Australia Telephone:(02) 9523 0637 JENMARO PTY: Enters Voluntary Liquidation ----------------------------------------- On September 28, 2006, members of Jenmaro Pty Ltd agreed to close the company's business and appointed Adam Farnsworth as liquidator. Accordingly, Mr. Farnsworth required the company's creditors to submit their proofs of claim by October 30, 2006. The Liquidator can be reached at: Adam Farnsworth c/o Hills Insolvency Services Pty Ltd PO Box 915, Rockdale, New South Wales 2216 Australia Telephone:(02) 9599 7945 Facsimile:(02) 9599 7946 E-mail: adam@hillsinsolvency.com.au KHALIL SERVICES: Court Issues Wind-Up Order ------------------------------------------- On September 22, 2006, the Federal Court of Australia, New South Wales District Registry ordered Khalil Services Pty Ltd to wind up its operations and appointed Antony de Vries as official liquidator. The Official Liquidator can be reached at: Antony De Vries de Vries Tayeh Level 3, 95 Macquarie Street Parramatta, New South Wales 2125 Australia KINETIC CONCEPTS: Dennert Ware to Retire as CEO ----------------------------------------------- Kinetic Concepts, Inc., discloses that Dennert O. Ware will retire as the company's chief executive officer. Mr. Ware will remain as CEO until the Board appoints a successor. Accordingly, Mr. Ware agreed to ensure a successful transition. Under Mr. Ware's leadership, the company has experienced a compounded annual revenue growth rate of 25%, surpassing US$1 billion in total revenue during 2005, Kinetic Concepts relates. During his tenure, Mr. Ware has stimulated, created and built a global business based on the company's V.A.C.(R) technology. He developed the plan to build the infrastructure needed to support the V.A.C. At the same time, Mr. Ware has strengthened the company's dedication to patient care through the development of innovative programs designed to educate physicians and nurses serving patients in hospitals, extended care facilities and at home. The V.A.C. Therapy is a negative pressure wound therapy system clinically proven to help promote healing of serious, complex wounds. Ronald W. Dollens, Kinetic Concepts' chairman, discloses that the Board of Directors has been engaged in a search for a successor and notes that a formal announcement will be released when a replacement is hired. About Kinetic Concepts Kinetic Concepts, Inc. (NYSE: KCI) -- http://www.kci1.com/-- designs, manufactures, markets and provides a wide range of proprietary products that can improve clinical outcomes while helping to reduce the overall cost of patient care. KCI has an infrastructure across all health care settings, including acute care hospitals, extended care facilities and patients' homes both in the United States, Canada, Australia and most major European countries. * * * On October 12, 2006, the Troubled Company Reporter reported that 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 Ba2 Corporate Family Rating for Kinetic Concepts Inc. KINGSLEY REAL: Supreme Court Issues Wind-Up Order ------------------------------------------------- On September 25, 2006, the Supreme Court of New South Wales ordered Kingsley Real Estate Pty Ltd to wind up the company's operations and appointed Bryan Collis as official liquidator. The Official Liquidator can be reached at: Bryan Collis O'Brien Palmer Level 4, 23 Hunter Street Sydney, New South Wales 2000 Australia MACKINLAY'S MAINTENANCE: To Declare Priority Dividend on Nov. 1 --------------------------------------------------------------- Mackinlay's Maintenance Services Pty Ltd will declare a first and final dividend to priority creditors on November 1, 2006. Creditors who failed to submit proofs of claim on October 11, 2006, are excluded from the distribution. The Troubled Company Reporter - Asia Pacific reported that on November 15, 2005, Mackinlay's members resolved to wind up the company's operations and appointed Robyn Erskine & Peter Goodin as liquidators. The Joint and Several Liquidators can be reached at: Peter Goodin Robyn Erskine Brooke Bird & Co Insolvency Practitioners 471 Riversdale Road Hawthorn, East Victoria 3123 Australia Telephone:(03) 9882 6666 Facsimile:(03) 9882 8855 METRO TRANSPORT: Members to Receive Liquidator's Report ------------------------------------------------------- Members of Metro Transport Management Sydney Pty Ltd, which is in liquidation, will hold a final meeting on October 20, 2006, at 10:00 a.m., to receive Liquidator Marsden's account on the company's wind-up and property disposal exercises. The Joint Liquidator can be reached at: Peter W. Marsden RSM Bird Cameron Partners 12th Floor, 60 Castlereagh Street Sydney, New South Wales 2000 Australia Telephone:(02) 9233 8933 Facsimile:(02) 9233 8521 MGM MIRAGE: Inks US$7-Bln Fifth Amended and Restated Loan Pact -------------------------------------------------------------- MGM Mirage and MGM Grand Detroit, LLC, as initial co-borrower, has entered into the Fifth Amended and Restated Loan Agreement dated October 3, 2006. The Fifth Loan Agreement provides for a maximum borrowing capacity of US$7 billion consisting of a revolving credit facility and a term loan facility. The company's president, chief financial officer, and treasurer, Jim Murren, explains that "this credit facility when combined with our internally generated cash flows will provide us the capital necessary to finance our domestic and international growth initiatives while at the same time allowing us to continue to re-invest in our market leading resorts." The Fifth Loan Agreement reallocates US$1 billion from the existing revolving credit facility such that the amended senior credit facilities will consist of: -- a US$4.5 billion senior revolving credit facility; and -- a US$2.5 billion senior term loan facility, in each case extending the maturity date to October 2011. Additionally, the senior credit facilities include an option where the company may solicit either existing lenders or new lenders to raise additional commitments to the senior revolving credit facility and the senior term loan facility, thereby increasing the maximum borrowing capacity under the facilities to US$8 billion. The Fifth Loan Agreement reduces draw pricing and undrawn pricing across the grid by 37.5 basis points and 5 basis points, respectively. It also revises the terms of the maximum total leverage ratio and interest charge coverage ratio covenants. In addition, the senior credit facilities will no longer contain a senior leverage ratio covenant. A full text-copy of the Fifth Amended and Restated Loan Agreement may be viewed at no charge at: http://ResearchArchives.com/t/s?1349 About MGM Mirage Las Vegas, Nev.-based, MGM Mirage -- http://www.mgmmirage.com/- - owns and operates 12 casino resorts located in Nevada, Mississippi, Michigan, and Australia, and has investments in three other casino resorts in Nevada, New Jersey, and Macau. * * * On October 4, 2006, the Troubled Company Reporter - Asia Pacific reported that in connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given- Default rating methodology for the Gaming, Lodging & Leisure sector, the rating agency confirmed MGM MIRAGE's Ba2 Corporate Family Rating. MPS SECURITY: Inability to Pay Debts Prompts Wind-Up ---------------------------------------------------- On September 21, 2006, the members and creditors of MPS Security Group Australia Pty Ltd 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 and Blair Pleash were appointed as liquidators. The Liquidators can be reached at: Geoffrey McDonald Blair Pleash c/o Hall Chadwick Level 29, 31 Market Street Sydney, New South Wales 2000 Australia MSD ALUMINUM: Supreme Court Orders Wind-Up ------------------------------------------ On September 25, 2006, the Supreme Court of New South Wales ordered MSD Aluminum Pty Ltd to wind up its operations and appointed D. I. Mansfield as official liquidator. The Official Liquidator can be reached at: D. I. Mansfield Moore Stephens Chartered Accountants Level 6, 460 Church Street Parramatta, New South Wales 2150 Australia OLOLA INVESTMENTS: Members Opt for Voluntary Liquidation -------------------------------------------------------- On September 28, 2006, members of Olola Investments Pty Ltd passed a special resolution to voluntarily liquidate the company's business. Accordingly, John D. Scarfe was appointed as liquidator. Accordingly, Mr. Scarfe was authorized to distribute the proceeds of its assets disposal. The Liquidator can be reached at: John D. Scarfe c/o Borough Mazars Level 6, 77 Castlereagh Street Sydney, New South Wales 2000 Australia OXFORD INDUSTRIES: 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 Oxford Industries, Inc., and its B1 rating on the company's US$200 million senior unsecured notes. Additionally, Moody's assigned an LGD5 rating to those bonds, suggesting noteholders will experience a 75% 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 Atlanta, Georgia, Oxford Industries -- http://www.oxfordinc.com-- designs and markets men's and women's apparel under its owned brands, which include Ben Sherman, Tommy Bahama, Arnold Brant and Oxford Golf, licensed brands including Orvis Signature and Nautica, and supplies a variety of private label apparel brands in multiple channels. The company has distribution operations in Australia. PANAVISION INC: Moody's Affirms 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 for the US advertising and broadcasting sector, the rating agency affirmed its B2 corporate family rating on Panavision, 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 ---------- ------- ------- ------ ---------- Secured Revolver B1 Ba3 LGD3 31% Secured First Lien Term Loan B1 Ba3 LGD3 31% Secured Second Lien Term Loan B3 Caa1 LGD5 83% 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 Panavision Panavision Inc. -- http://www.panavision.com/-- is a leading designer and manufacturer of high-precision camera systems, comprising of film and digital cameras, lenses and accessories for the motion picture and television industries. Panavision systems are rented through its domestic and international owned and operated facilities and distributor network. Panavision also supplies lighting, grip and crane equipment for use by motion picture and television productions. Panavision has locations in Australia and New Zealand. PANAVISION INC: Acquires Plus 8 Digital --------------------------------------- Panavision Inc. has acquired Plus 8 Digital, one of North America's largest digital camera rental companies. "This transaction is another step forward in Panavision's strategy of diversifying our camera product offerings generally and our digital offerings specifically and broadens our reach to cinematographers working in all segments of our business," Bob Beitcher, President and CEO, Panavision, says. "We are very fortunate to combine our efforts with the employees of Plus 8 Digital as well as Marker Karahadian, the company's founder and owner." Plus 8 Digital operates five digital camera rental facilities in Burbank, New York, Houston, Vancouver and Toronto. "I am excited that Plus 8 will now have the strength and reputation of Panavision driving the business," said Karahadian. "The Plus 8 team and I will increase the high quality service and attention our customers are used to, because they will also benefit from Panavision's global network. On a personal note, I am also looking forward to working with the Panavision team to ensure that Panavision and Plus 8 play an important part in the continued evolution of digital capture in our industry." Founded in 1988, Plus 8 Digital's reputation in the industry has been built on a history of technical innovation and quality service. Plus 8 was among the first rental facilities in North America to introduce Carl Zeiss HD Digiprimes, the Thomson Viper, and Panasonic Varicam. Their extensive HD inventory includes over 20 Viper cameras. Recent film and television productions for which Plus 8 Digital supplied cameras include "Miami Vice" and "Everybody Hates Chris." About Panavision Located in Woodland Hills, California Panavision Inc. -- http://www.panavision.com/-- designs and manufactures high- precision camera systems, including film and digital cameras, lenses and accessories for the motion picture and television industries. Panavision has locations in Australia and New Zealand. * * * Standard & Poor's Ratings Services affirmed its loan and recovery ratings on the senior secured first-lien bank facility of Panavision Inc. (B-/Stable/--), following the announcement that the company will increase the add-on portion of its first- lien term loan by US$30 million. In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the US advertising and broadcasting sector, the rating agency also affirmed its B2 corporate family rating on Panavision. Moody's further assigned an LGD5 rating to the company's Secured Second Lien Term Loan suggesting debt holders will experience an 83% loss in the event of a default. PEABODY ENERGY: Moody's Assigns Ba1 Rating to US$900MM Sr. Notes ---------------------------------------------------------------- Moody's Investors Service assigned a Ba1 senior unsecured rating to Peabody Energy Corporation's proposed US$900 million senior notes issue. At the same time Moody's affirmed Peabody's Ba1 corporate family rating and the Ba1 senior unsecured rating on its existing notes. The ratings reflect both the overall probability of default of the company, to which Moody's assigns a PDR of Ba1, and a loss given default of LGD 4 for the senior unsecured notes. Moody's also affirmed Peabody's SGL-1 Speculative Grade Liquidity rating. The rating outlook remains negative. The proceeds of the US$900 million senior notes, along with drawings under the revolver and term loan, are being used to fund Peabody's acquisition of Australian coal miner, Excel Corporation, for US$1.9 billion, including assumption of debt and fees. Assignments: * Issuer: Peabody Energy Corporation -- Senior Unsecured Regular Bond/Debenture, Assigned Ba1 The Ba1 corporate family rating reflects Peabody's * currently low leverage ratio and good earnings ratios, * diversified low-cost operations, * extensive and geographically diversified reserves of high quality coal, * strong management, and * portfolio of long-term coal supply agreements with a large number of electricity generation customers. However, the rating also reflects the US$1.9 billion increase in debt to be incurred to fund the Excel acquisition, which will increase the company's pro forma June 30, 2006 debt to EBITDA ratio to 3.2x from 2.1x based on an annualization of Excel's most recent six month EBITDA. The rating also considers the volatile nature of the coal mining business, and operating and development cost pressures that could constrain Peabody's free cash flow. Moody's last rating action on Peabody was in September 2006 when it assigned a Ba1 senior unsecured rating to the revolver and term loan A, and raised the senior unsecured rating to Ba1. Peabody Energy Corporation, headquartered in St. Louis, Missouri, is the world's largest private-sector coal company with revenues in 2005 of US$4.6 billion. The company has coal operations in Australia. PICCWICK PTY: Liquidator Fitzgerald to Present Wind-Up Report ------------------------------------------------------------- Members and creditors of Piccwick Pty Ltd will convene on October 19, 2006, at 10:00 a.m., to receive accounts of the company's wind-up proceedings and property disposal exercises from Liquidator Laurence A. Fitzgerald. According to the Troubled Company Reporter - Asia Pacific, the Company commenced a wind-up of its operations on August 11, 2006. The Joint and Several Liquidator can be reached at: Laurence A. Fitzgerald Horwath BRI (Vic) Pty Ltd Chartered Accountants Level 30, The Rialto 525 Collins Street Melbourne, Victoria 3000 Australia PINEWOOD COMMUNITY: Members' Final Meeting Set on October 19 ------------------------------------------------------------ Members of Pinewood Community Co-operative Ltd will hold a final meeting on October 19, 2006, at 10:00 a.m., to receive Liquidator Mulvaney's accounts of the company's wind-up proceedings and property disposal exercises. The Troubled Company Reporter - Asia Pacific reported that on May 2, 2006, the Company commenced a wind-up of its operations due to its inability to pay debts. The Liquidator can be reached at: Bruce N. Mulvaney Bruce Mulvaney & Co 1st Floor, 613 Canterbury Road Surrey Hills, Victoria 3127 Australia RIGHT ROOFING: Members Decide to Wind Up Operations --------------------------------------------------- At a general meeting held on September 27, 2006, the members of Right Roofing & Plumbing Pty Ltd agreed to voluntarily wind up the company's operations. Subsequently, Schon Condon was appointed as liquidator. The Liquidator can be reached at: Schon Condon Jones Condon Chartered Accountants Level 1, 34 Charles Street Parramatta, New South Wales Australia Telephone:(02) 9893 9499 ROSTEDEN PTY: To Declare Dividend for Priority Creditors -------------------------------------------------------- Rosteden Pty Ltd will declare its first and final dividend for its priority creditors on October 24, 2006. Creditors who were unable to prove their claims on October 10, 2006, are excluded from the distribution of dividend. According to the Troubled Company Reporter - Asia Pacific, on October 27, 2005, the Rosteden's members resolved to wind up the company's operations. The Liquidator can be reached at: Leigh Dudman B. K. Taylor & Co 8/608 St Kilda Road Melbourne, Victoria 3004 Australia SALAMANDER BAY: Undergoes Wind-Up Proceedings --------------------------------------------- At a general meeting held on September 28, 2006, the members of Salamander Bay Pty Ltd agreed to voluntarily wind up the company's operations and distribute the proceeds of its assets disposal. John D. Scarfe was consequently appointed as liquidator. The Liquidator can be reached at: John D. Scarfe c/o Borough Mazars Level 6, 77 Castlereagh Street Sydney, New South Wales 2000 Australia SOFOM PTY: Placed Under Voluntary Wind-Up ----------------------------------------- At an extraordinary general meeting held on August 31, 2006, the members of Sofom Pty Ltd resolved to voluntarily wind up the company's operations. Peter Andrew Amos and Neil Geoffrey Singleton were appointed liquidators at the creditors' meeting held the next day. The Joint and Several Liquidators can be reached at: Peter Andrew Amos Neil Geoffrey Singleton SimsPartners Level 24, Australia Square 264 George Street Sydney, New South Wales 2000 Australia Telephone: 02 9241 3422 STONELAKE HOLDINGS: To Declare Preferential Dividend on Oct. 24 --------------------------------------------------------------- A first and final preferential dividend will be declared on October 24, 2006, for the creditors of Stonelake Holdings Pty Ltd. Creditors who were unable to file their proofs of debt by October 10, 2006, will be excluded from sharing in the company's dividend distribution. The Liquidator can be reached at: C. M. Williamson SimsPartners Chartered Accountants and Business Advisors Level 12, 40 St George's Terrace Perth, Western Australia 6000 Australia TAKING CARE: Enters Wind-Up Proceedings --------------------------------------- Members of Taking Care of Business Australasia Pty Ltd held a general meeting on September 25, 2006 and passed a special resolution to wind up the company's operations and distribute the proceeds of its assets disposal. The Liquidator can be reached at: Oscar Finn Satill & Miller Services Pty Limited Level 2, 222 Pitt Street Sydney, New South Wales 2000 Australia TRANSPORT EMPLOYMENT: To Declare Final Dividend on October 17 ------------------------------------------------------------- Transport Employment Services Pty Ltd, which is in liquidation, will declare its final dividend on October 17, 2006. Creditors who were able to file their proofs of claim on October 10, 2006, are included in the benefit of the dividend. The Liquidator can be reached at: Jason Bettles Worrells Solvency & Forensic Accountants Web site: http://www.worrells.net.au TRINITY BUSINESS: To Declare First and Final Dividend ----------------------------------------------------- Trinity Business Solutions Pty Ltd, which is in liquidation, will declare the first and final dividend to creditors on October 19, 2006. Creditors who were able to prove their debts on October 6, 2006, will be included in the distribution. The Liquidator can be reached at: G. Handberg D'Aloia Handberg Chartered Accountants Level 10, 200 Queen Street Melbourne, Victoria 3000 Australia UNIVERSAL COMPRESSION: Moody's Confirms Ba2 Corporate Family Rtg ---------------------------------------------------------------- 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 Ba2 Corporate Family Rating for Universal Compression Inc. In addition, Moody's revised its probability-of-default ratings and assigned loss-given-default ratings on these debentures: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- Sr. Sec. Gtd. Term Loan Due 2012 Ba2 Ba1 LGD3 36% Sr. Sec. Gtd. Revolving Credit Facility Due 2010 Ba2 Ba1 LGD3 36% 7.25% Sr. Unsec. Global Notes Due 2010 Ba3 B1 LGD5 88% 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, Universal Compression, Inc. -- http://www.universalcompression.com/-- provides natural gas compression equipment and services, primarily to the energy industry in the United States, as well as in Canada, Venezuela, Argentina, Columbia, and Australia. WATKINS PLANT: To Declare First and Final Dividend on Oct. 23 ------------------------------------------------------------- Watkins Plant Hire Pty Ltd, which is subject to a deed of company arrangement, will declare the first and final dividend for its creditors on October 23, 2006. Creditors who were unable to prove their claims on October 2, 2006, will be excluded from the distribution. The Joint and Several Deed Administrator can be reached at: N. Giasoumi Dye & Co Pty Ltd Chartered Accountants 165 Camberwell Road, Hawthorn East 3123 Australia ================================ C H I N A & H O N G K O N G ================================ ALERIS INTERNATIONAL: Moody's Confirms B1 Corporate Family Rtg -------------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the North American Metals & Mining sectors last week, the rating agency confirmed its B1 Corporate Family Rating for Aleris International, Inc., and its Ba3 rating on the company's US$400 million issue of senior secured term loan. Moody's also assigned an LGD3 rating to those loans, suggesting noteholders will experience a 32% loss in the event of a default. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on Aleris Deutschland Holding GMBH's loans obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$250 Million Gtd. Senior Secured Term Loan Ba3 Ba3 LGD3 34% 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 Beachwood, Ohio, a suburb of Cleveland, Aleris International, Inc. -- http://www.aleris.com/-- manufactures aluminum rolled products and extrusions, aluminum recycling and specification alloy production. The company is also a recycler of zinc and a leading U.S. manufacturer of zinc metal and value- added zinc products that include zinc oxide and zinc dust. The company operates 50 production facilities in North America, Europe, South America and Asia, and employs approximately 8,600 employees. The company has production facilities in China. ASAHI GLASS: Members Opt for Voluntary Wind-Up ---------------------------------------------- On September 30, 2006, members of Asahi Glass Hong Kong Ltd passed a special resolution and decided to voluntarily wind up the company's operations. Accordingly, Rainier Hok Chung Lam and John James Toohey were appointed as joint and several liquidators. The Joint Liquidators can be reached at: Rainier Hok Chung Lam John James Toohey 22/F, Prince's Building Central, Hong Kong ATMEL-WM HK: Members to Receive Wind-Up Report ---------------------------------------------- A final meeting of the members of ATMEL-WM Hong Kong Ltd, which is in members' voluntary liquidation, will be conducted on November 6, 2006, 11:00 a.m., at 8th Floor, Gloucester Tower, The Landmark, 15 Queen's Road Central, Hong Kong. During the meeting, Liquidator Iain Ferguson Bruce will present his report on the final accounts of the company's wind-up proceedings and property disposal activities. CAMA SERVICES: Enters Wind-Up Proceedings ----------------------------------------- At an extraordinary general meeting held on October 13, 2006, the members of Cama Services (Hong Kong) Ltd resolved to voluntarily wind up the company's operations. In this regard, Suen Man Fai was appointed as liquidator. The Liquidator can be reached at: Suen Man Fai Room 2402, 24/F Sing Pao Building 101 King's Road, Fortress Hill Hong Kong CHINA CAPITAL: Enters Voluntary Wind-Up --------------------------------------- On September 29, 2006, the sole shareholder of China Capital Development Ltd passed a special resolution to voluntary wind up the company's operations. Subsequently, Ying Hing Chiu and Chung Miu Yin Diana were appointed as joint and several liquidators. The Joint Liquidators can be reached at: Ying Hing Chiu Chung Miu Yin, Diana Level 28, Three Pacific Place 1 Queen's Road East Hong Kong COTAC LTD: Joint Liquidators Ceased to Act ------------------------------------------ Ho Hoi Lam and Man Fung Ying ceased to act as joint and several liquidators of Cotac Ltd on September 15, 2006. The Troubled Company Reporter - Asia Pacific reported that on September 15, 2006, the Joint Liquidators presented their final accounts of the Company's wind-up and property disposal exercises. The former Liquidators can be reached at: Ho Hoi Lam Man Fung Ying 8/F, Gold & Silver Commercial Building 12-18 Mercer Street, Central Hong Kong DU WIN GARMENTS: To Wind Up Business ------------------------------------ On September 27, 2006, Du Win Garments Company Ltd received an order from the High Court of Hong Kong to wind up its operations. The Troubled Company Reporter - Asia Pacific previously reported that Chan Lai Yee filed the petition with the Court on July 28, 2006. FAIRFIELD DEVICES: Members' Final Meeting Set on November 6 ----------------------------------------------------------- Members of Fairfield Devices Ltd will hold a final meeting at the office of Liquidator Lionel Mervyn Butcher on November 6, 2006, at 10:00 a.m. At the meeting, Mr. Butcher will present his report on the company's wind-up and the manner its properties were disposed of. According to the Troubled Company Reporter - Asia Pacific, the company commenced a members' voluntary wind-up of its operations on April 7, 2006. The Liquidator can be reached at: Lionel Mervyn Butcher Suite 17B, Century Tower One 1 Tregunter Path Hong Kong FERRO CORP: Auditor Gives Adverse Opinion on Internal Control ------------------------------------------------------------- Ferro Corporation filed its annual report for the year ended December 31, 2005, with the Securities and Exchange Commission on September 29, 2006. "We are pleased to finalize our audited 2005 financial statements and provide investors with our complete Annual Report," James Kirsch, Ferro president and chief executive officer, said. "This is another significant step toward achieving a normal filing schedule and focusing the company on profitable growth." The company expects to file its 2005 reports on Form 10-Q for the quarters ending March 31, June 30, and September 30, 2005, by the end of October. With the completion of the 2005 financial filings, the company will then focus on the completion of its Form 10-Q filings for the first three quarters of 2006, and expects to file these reports with the SEC by the end of 2006. Material Weaknesses Auditors working for Deloitte & Touche LLP in Cleveland, Ohio, expressed an unqualified opinion on management's assessment of the effectiveness of the company's internal control over financial reporting and an adverse opinion on the effectiveness of the company's internal control over financial reporting because of material weaknesses. The company has identified three material weaknesses in internal control over financial reporting as of December 31, 2005: 1. inadequately trained and insufficient numbers of accounting personnel coupled with insufficient accounting policies and procedures, 2. failure to consistently reconcile and perform timely reviews of accounting reconciliations, data files, and journal entries; and 3. failure to properly identify and ensure receipt of agreements for review by accounting personnel. Results of Operations Sales from continuing operations for the year ended December 31, 2005, of US$1,882.3 million were 2.1% higher than the comparable 2004 period. Improved pricing and more favorable product mix in North America, Asia-Pacific, and Latin America, were the primary drivers for the revenue gain. Weakness in the market for multilayer capacitors depressed unit demand and revenues, particularly in the first half of 2005. On a consolidated basis, the impact of strengthening foreign currencies versus the U.S. dollar had only a minimal positive impact on revenues. For the year ended December 31, 2005, the company earned US$14,786,000 on US$1,882,305,000 of net sales compared with US$23,220,000 of net income on US$1,843,721,000 of net sales for the year ended December 31, 2004. At December 31, 2005, the company's balance sheet showed US$1,668,544,000 in total assets, US$1,179,985,000 in total liabilities, US$20,468,000 in convertible preferred stock, and US$468,091,000 in total stockholders' equity. A full-text copy of the company's annual report is available for free at: http://ResearchArchives.com/t/s?1358 * * * Headquartered in Cleveland, Ohio, Ferro Corporation -- http://www.ferro.com-- is a global producer of an array of performance materials sold to a range of manufacturers in approximately 30 markets throughout the world. Ferro applies certain core scientific expertise in organic chemistry, inorganic chemistry, polymer science and material science to develop coatings for ceramics and metal; materials for passive electronic components; pigments; enamels, pastes and additives for the glass market; glazes and decorating colors for the dinnerware market; specialty plastic compounds and colors; polymer additives; specialty chemicals for the pharmaceuticals and electronics markets, and active ingredients and high-purity carbohydrates for pharmaceutical formulations. The company's products are classified as performance materials, rather than commodities, because they are formulated to perform specific and important functions both in the manufacturing processes and in the finished products of its customers Ferro Corp. has global locations in Argentina, Australia, Belgium, Brazil, China, France, Germany, Indonesia, Italy, Japan, Mexico, Netherlands, Portugal, Spain, Taiwan, Thailand, the United Kingdom, the United States, and Venezuela. The Troubled Company Reporter - Asia Pacific reports that Standard & Poor's Ratings Services' 'B+' long-term corporate credit and 'B' senior unsecured debt ratings on Ferro Corp. remained on CreditWatch with negative implications, where they were placed Nov. 18, 2005. Standard & Poor's will resolve the CreditWatch after Ferro files its 2005 full year and 2006 quarterly financial statements, which are expected by September 30th and December 31st, respectively. FILA CHINA: Creditors' Proofs of Claim Due on November 8 -------------------------------------------------------- The Joint Liquidators Puen Wing Fai and Lo Yeuk Ki Alice of Fila China Ltd required the company's creditors to file their proofs of claim by November 8, 2006. Failure to comply with the requirement will exclude any creditor from sharing in any distribution the company will make. The Troubled Company Reporter - Asia Pacific previously reported that the Company commenced a wind-up process on September 29, 2006. The Joint Liquidators can be reached at: Puen Wing Fai Lo Yeuk Ki Alice 6/F., Kwan Chart Tower 6 Tonnochy Road, Wanchai Hong Kong HARBOUR CRAFT: Sole Member Pass Special Resolution -------------------------------------------------- On September 29, 2006, the sole member of Harbour Craft Services Ltd, passed a special resolution to destroy the company and the liquidator's books, accounts, and documents three months after the expiration of the company's dissolution. HARMONY DEVELOPMENT: Placed Under Members' Voluntary Wind-Up ------------------------------------------------------------ At an extraordinary general meeting held on October 3, 2006, the members of Harmony Development (H.K.) Company Ltd resolved to voluntarily wind up the company's operations and appointed Pang Siu Kei as liquidator. The Liquidator can be reached at: Pang Siu Kei Room 1103, 11/F., C. C. Wu Building 302-308 Hennessy Road, Wanchai Hong Kong HARTCOURT COS: Accumulated Deficit Tops US$67.8MM at Aug. 31 ------------------------------------------------------------- In its first quarter financial statements ended August 31, 2006, filed with the Securities and Exchange Commission on Form-10Q, Hartcourt Companies, Inc., reported a US$126,740 net loss on US$12.4 million of net revenues compared to US$31,534 of net income on US$10.7 million of net revenues in 2005. As of August 31, 2006, the company had an accumulated deficit of US$67.8 million. A full-text copy of the company's financial report is available for free at: http://researcharchives.com/t/s?1353 Headquartered in Shanghai, China, The Hartcourt Companies, Inc. -- http://www.hartcourt.com-- was incorporated in Utah. The company specializes in the Chinese information technology market. In August 2006, the company decided to enter the post- secondary education market in China. Going Concern Doubt Kabani & Company, Inc., in Los Angeles, Calif., raised substantial doubt about The Hartcourt Companies, Inc.'s ability to continue as a going concern after auditing their consolidated financial statements for the year ended May 31, 2006. The auditor pointed to the company's negative cash flow from operations and accumulated deficiencies. HARTCOURT COMPANIES: Restates 2005 & 2004 Financial Statements -------------------------------------------------------------- On October 10, 2006, Hartcourt Companies, Inc., has delivered its amended financial statements on Form 10-KSB/A for the fiscal year ended December 31, 2004, and for the five-month transition period ended May 31, 2005, to the Securities and Exchange Commission. The amended annual reports restated the company's financial statements, revised its Management's Discussion of Financial Condition and Results of Operations, and revised its disclosure regarding its internal controls. Following the issuance of the company's financial statements for the year ended December 31, 2003, the company determined that a transaction and presentation in the financial statements had not been accounted for properly in the company's financial statements. During the year ended December 31, 2003, the company, via its subsidiaries, acquired four Chinese companies located and operated in China. The company has restated its financial statements based on the appraisal of the fair value of the four companies at each acquisition date. The changes caused adjustments to the financial statements for the year ended December 31, 2004, and May 31, 2005. Restated Financials For the full year ended December 31, 2004, the company reported a US$13.3 million net loss on US$74.5 million of net revenues, compared to a US$585,377 net loss on US$51.3 million of net revenues in 2003. For the five-month transition period ended May 31, 2005, the company earned US$123,082 on US$19.6 million of net revenues, compared to US$546,248 of net income on US$29.1 million of net revenues in 2004. Full-text copies of the company's restated financial statements for the year ended December 31, 2004, are available for free at: http://researcharchives.com/t/s?1352 Five-Month Transition Period ended May 31, 2005: http://researcharchives.com/t/s?1351 * * * Headquartered in Shanghai, China, The Hartcourt Companies, Inc. -- http://www.hartcourt.com-- was incorporated in Utah. The company specializes in the Chinese information technology market. In August 2006, the company decided to enter the post- secondary education market in China. Going Concern Doubt Kabani & Company, Inc., in Los Angeles, Calif., raised substantial doubt about The Hartcourt Companies, Inc.'s ability to continue as a going concern after auditing their consolidated financial statements for the year ended May 31, 2006. The auditor pointed to the company's negative cash flow from operations and accumulated deficiencies. IMPRESS OFFSET: Annual and Final Meetings Fixed on November 8 ------------------------------------------------------------- The annual and final meetings of the members and creditors of Impress Offset Printing Factory Ltd, which is in creditors' voluntary liquidation, will be held on November 8, 2006, 9:30 a.m., at Room 701, Hong Kong House, 17-19 Wellington Street, Central, Hong Kong. At the meeting, Liquidator Kenny King Ching Tam will show the accounts of the company's wind-up and property disposal activities. IN-WORK INTERNATIONAL: Enters Voluntary Liquidation --------------------------------------------------- The members of In-Work International (2003) Ltd met on October 6, 2006, and agreed that the company should wind up its operations voluntarily. Li Kam Fai Dominic was consequently appointed as liquidator. The Liquidator can be reached at: Li Kam Fai Dominic Rooms 2107-8, Kai Tak Commercial Bldg 317-319 Des Voeux Road, Central Hong Kong INTERBREW ZHEJIANG: Sole Member Opt to Liquidate Business --------------------------------------------------------- The sole member of Interbrew Zhejiang Holding Ltd on Sept. 29, 2006, passed a special resolution to voluntarily liquidate the company's business. In this regard, Ying Hing Chiu and Chung Miu Yin Diana were appointed as joint and several liquidators. The Liquidator can be reached at: Ying Hing Chiu Chung Miu Yin, Diana Level 28, Three Pacific Place 1 Queen's Road East Hong Kong INVERNESS MEDICAL: Moody's Junks Senior Subord. Bond's Ratings -------------------------------------------------------------- Moody's Investors Service upgraded Inverness Medical Innovations, Inc.'s corporate family rating to B2 from B3. Additionally, Moody's upgraded the company's Probability of Default rating to B2 from B3, the rating on its senior subordinated notes to Caa1 from Caa2, and revised the rating outlook to stable from negative. Upgrades: Issuer: Inverness Medical Innovations, Inc. * Corporate Family Rating, Upgraded to B2 from B3 * Senior Subordinated Regular Bond, Upgraded to Caa1 from Caa2 Outlook Actions: Issuer: Inverness Medical Innovations, Inc. * Outlook, Changed To Stable From Negative The rating upgrades primarily reflect Inverness' reduced leveraged and Moody's view that the company's financial performance will likely improve over the rating horizon. Moody's notes that Inverness has accessed the equity markets successfully and has used net proceeds, in part, to reduce debt and improve liquidity. Inverness' liquidity currently appears solid -- though such liquidity could be fleeting given the company's penchant for acquisitions. Moody's expect Inverness will fund working capital and capital expenditures through operating cash flow and note that the company could divest its Nutritionals business in the event of constrained liquidity. Subsequent to the company's August 2006 issuance of common stock via a private placement, Moody's believes that Inverness reduced its revolver balances. Moody's believe Inverness has substantial revolver availability of approximately US$110 million. Moody's believe that margins and cash flow generation will continue to improve, particularly as the company shifts production to its new, low-cost ABON production facility. Moody's expects that gross margins could improve to over 44% by the end of 2008, which is in line with the mid-forties gross margin that Moody's had anticipated when we first rated the company in January 2004, and an improvement over the levels that we had expected when we downgraded the corporate family rating to B3 in July 2005. The ongoing Securities and Exchange Commission investigation in connection with revenue recognition issues at one of the company's subsidiaries negatively affects the rating. While Moody's does not believe that the investigation will have a material impact on Inverness, the uncertainty as to timing and the SEC's ultimate conclusion weighs on credit risk. Moody's takes comfort that the company's independent auditors have opined that the restated financials present fairly, in all material respects, Inverness' consolidated financial position as of December 31, 2005, 2004 and 2003 and the results of operations for each of those years then ended. Improved operating margins above 10%, coupled with operating cash flow-to-debt and free cash flow-to-debt metrics above 15% and 10%, respectively, could trigger a rating upgrade. Additionally, an improvement in interest coverage above 2 times, in conjunction with the aforementioned margin and cash flow metric improvements would further support upward rating pressure. A finalized joint venture agreement with Procter & Gamble could also cause Moody's to upgrade the ratings. Moody's could downgrade the B2 corporate family rating if it becomes apparent that margin improvement, and consequently cash flow improvement, will be materially below our expectations. More specifically, Moody's could downgrade the rating if interest coverage falls below 1.5x and operating cash flow to total debt dips below 10% for an extended period. * * * Based in Waltham, Massachusetts, Inverness Medical Innovations, Inc. -- http://www.invernessmedical.com/-- makes diagnostic products including home pregnancy tests and fertility monitors. The company also manufactures consumer vitamins and nutritional products. The company has offices in Australia, Canada, China, Germany, Japan, and the United Kingdom, among others. JACUZZI BRANDS: Apollo Merger Cues S&P to Put Ratings on Watch -------------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings, including the 'B+' corporate credit rating, on Jacuzzi Brands Inc. on CreditWatch with negative implications. The rating action followed Jacuzzi's announcement that it signed a definitive merger agreement with to be acquired by Apollo Management L.P. The transaction will be financed through a combination of debt and equity valued at US$1.25 billion. Furthermore, Apollo plans to transfer Jacuzzi's plumbing segment to Rexnord Corp. (B/Stable/--), an Apollo portfolio company. "We view this transaction as a negative for credit quality," Standard & Poor's credit analyst John Kennedy said. "Acquisitions by privately equity firms, such as Apollo, usually lead to an increase in debt leverage at the acquired company and could lead us to lower the ratings." Jacuzzi had total debt, including capitalized operating leases, of US$432 million at June 30, 2006, with total debt to last-12- month EBITDA of 3.2x. "We also view negatively Apollo's intent to separate the bath and spa business from the plumbing business, as this would reduce Jacuzzi's business diversity and increase its business risk," Mr. Kennedy said. Standard & Poor's expects to resolve the CreditWatch after more details are disclosed regarding the transaction's financing structure as well as the ultimate corporate structure. The transaction is subject to some closing conditions, including approval from shareholders and certain regulators. The company has an engineering and sourcing center in Zhuhai, China. JIK SING: Members Resolve to Wind Up Firm ----------------------------------------- The members of Jik Sing Company Ltd held an extraordinary general meeting on September 28, 2006, and resolved to voluntarily wind up the company's operations. Subsequently, Lau Vui Cheong was appointed as liquidator. The Liquidator can be reached at: Lau Vui Cheong 7/F, Hong Kong Trade Centre 161-167 Des Voeux Road, Central Hong Kong MIZUHO CORPORATE: Joint Liquidators Steps Aside ----------------------------------------------- In a final meeting of the members of Mizuho Corporate Asia (HK) Ltd on September 28, 2006, Gabriel CK Tam and Jacky CW Muk ceased to act as joint and several liquidators of the company. In that meeting, the former Liquidators reported on the company's wind-up proceedings including the manner its properties were disposed of. The former Liquidators can be reached at: Gabriel CK Tam Jacky CW Muk KPMG 8/F, Prince's Building 10 Chater Road, Central Hong Kong NEW CHINA INVESTMENTS: Final Meeting Slated for November 6 ---------------------------------------------------------- The New China Hong Kong 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 12:00 p.m. and 12:30 p.m. respectively. During the meeting, Liquidator James Wardell will present an account of the company's wind-up and property disposal exercises. NEW CHINA NOMINEES: Members and Creditors to Hear Wind-Up Report ---------------------------------------------------------------- Members and creditors of The New China Hong Kong Nominees Ltd, which is in creditors' voluntary liquidation, will hear Liquidator James Wardell's report on the company's wind-up and property disposal exercises. The report will be presented at Room 1601-02, 16th Floor, One Hysan Avenue, Causeway Bay, Hong Kong on November 6, 2006, at 10:00 a.m. and 10:30 a.m., respectively. NG CHEONG: Placed Under Voluntary Liquidation --------------------------------------------- At an extraordinary general meeting of Ng Cheong Investment Company Ltd on September 28, 2006, members passed a special resolution to voluntarily wind up the company's operations. In this regard, Lau Vui Cheong was appointed as liquidator. The Liquidator can be reached at: Lau Vui Cheong 7/F, Hong Kong Trade Centre 161-167 Des Voeux Road, Central Hong Kong 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. * * * Standard & Poor's said on July 17 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 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 Oct. 7, Reuters reports. As reported in the Troubled Company Reporter-Latin America on Oct. 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 Oct. 7. 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 be 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 Nov. 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. * * * Standard & Poor's said on July 17 that it may lower the company's B+ foreign-currency debt rating in part because of the absence of timely financial and operating information. PILLAR EDUCATION: Court Orders Operations' Wind Up -------------------------------------------------- The High Court of Hong Kong on September 27, 2006, ordered Pillar Education Foundation Ltd to wind up its operations. According to the Troubled Company Reporter - Asia Pacific, So Ping Cheung presented the petition with the Court on July 28, 2006. PROTAN PLAZA: Commences Wind-Up of Operations --------------------------------------------- Shareholders of Protan Plaza Ltd held an extraordinary general meeting on September 29, 2006, and decided to wind up the company's operations. Leung Moon Chuen and Wong Kai Wing were consequently appointed as joint and several liquidators. The Joint Liquidators can be reached at: Leung Moon Chuen Wong Kai Wing Room 1503 World Wide House 19 Des Voeux Road, Central Hong Kong SUPER DATA: Members Agree to Wind Up Operations ----------------------------------------------- At an adjourned extraordinary general meeting of Super Data Ltd held on October 3, 2006, members resolved to voluntarily wind up the company's operations and appoint Ho Wai Ip as liquidator. The Liquidator can be reached at: Ho Wai Ip Certified Public Accountant Room 1903, 19/F., World-Wide House 19 Des Voeux Road, Central Hong Kong ========= I N D I A ========= EASTMAN KODAK: 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 U.S. Technology Hardware sector, the rating agency confirmed its B1 Corporate Family Rating for Eastman Kodak Company. 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 Notes due 2013, Unsecured B2 B2 LGD5 73% US$3.1 million Senior Term Note Debenture due 2018, Unsecured B2 B2 LGD5 73% US$575 million Convertible Senior Notes due 2033, Unsecured, B2 B2 B2 LGD5 73% US$250 million Senior Medium Term Notes due 2008, Unsecured, B2 B2 B2 LGD5 73% US$10.28 million Senior Notes due 2021, Unsecured B2 B2 B2 LGD5 73% US$1.2 billion Senior Secured Term Loan B due 2012 Ba3 Ba3 LGD2 29% US$500 million Senior Secured Delayed Draw Term Loan due 2012 Ba3 Ba3 LGD2 29% US$1000 million 5 Yr. Revolving Credit Facility Secured Ba3 Ba3 LGD2 29% * Ratings may be under review. 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 our notching practices across industries and will improve the transparency and accuracy of our ratings as our 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 Eastman Kodak Co. Headquartered in Rochester, New York, Eastman Kodak Company -- http://www.kodak.com/-- is a worldwide vendor of imaging products and services. The company is committed to a digitally oriented growth strategy focused on four businesses: Digital & Film Imaging Systems - providing consumers, professionals, and cinematographers with digital and traditional products and services; Health -- supplying the medical and dental professions with traditional and digital imaging and information systems, IT solutions, and services; Graphic Communications - providing customers with a range of solutions for prepress, traditional and digital printing, document scanning, and multi-vendor IT services; and Display & Components - supplying original equipment manufacturers with imaging sensors as well as intellectual property and materials for the organic light- emitting diode and LCD display industries. The company has operations in the Asia-Pacific region, including in India, Japan, Korea, Malasia, New Zealand, Philippines, Singapore, Taiwan and Thailand. EASTMAN KODAK: Names Frank Sklarsky as Chief Financial Officer -------------------------------------------------------------- Eastman Kodak Company has named Frank S. Sklarsky to succeed Robert H. Brust as the company's chief financial officer. Sklarsky, 49, is Executive Vice President and CFO of ConAgra Foods Inc. He will join Kodak on Oct. 30 as Executive Vice President, and will become the CFO effective Nov. 13, subsequent to the company's filing of its Third-Quarter Form 10-Q with the Securities and Exchange Commission. Sklarsky will report to Kodak Chairman and Chief Executive Officer Antonio M. Perez. Brust, 63, announced in January his intention to retire on February 1, 2007. During this interim, he will remain with the company as an Executive Vice President, and will assist Sklarsky in his transition. At ConAgra, one of North America's leading packaged food companies, Sklarsky implemented a new financial organization, significantly strengthened the balance sheet, and played a major role in building credibility with the investment community. He also helped expand profit margins at the US$14 billion company. Prior to ConAgra, which he joined as CFO in 2004, Sklarsky was a senior financial executive at DaimlerChrysler and Dell Inc. In his 26-year career, he has developed a reputation for improving the financial operations, as well as the overall financial performance, of the companies he has served. At Kodak, as with ConAgra, Sklarsky will be responsible for worldwide financial operations, including Financial Reporting and Analysis, Treasury, Audit, Controllership, Tax, and Investor Relations. Sklarsky also will have responsibility for Information Technology functions, Purchasing and Global Shared Services. "Frank is exactly the right CFO at this moment in Kodak's historic transformation," Perez said. "Frank was a key player in the financial and operational improvements achieved by ConAgra, as he was at DaimlerChrysler and Dell. He understands the challenges of large, complex companies that are going through great change, and he also understands the speed and urgency demanded by digital markets. I am confident that Frank will build on the significant contributions of Bob Brust as we work together to extend Kodak's leadership in digital markets." Sklarsky, a native of Buffalo, New York, is a 1978 graduate of the Rochester Institute of Technology. He received an MBA from Harvard Business School in 1983. "I am thrilled to be joining the company at this exciting time in its transformation," Sklarsky said. "I was attracted to Kodak's innovative portfolio of commercial and consumer imaging products, all of which contribute to making life richer and more enjoyable for our customers. The combination of a global iconic brand and powerful intellectual property further positions Kodak to achieve sustained success in digital markets. The company has significant opportunities to achieve margin expansion in those markets, and I consider it a privilege to be given the responsibility to help pursue those opportunities with Antonio and the world-class team he has assembled." Sklarsky was recruited by ConAgra in late 2004 from DaimlerChrysler, where he was Vice President, Product Finance, a position he held between 2001 and 2004. Prior to that, he spent more than one year as Vice President, Corporate Finance, and Vice President of Dell's US$5 billion consumer business. Sklarsky left Dell when DaimlerChrysler recruited him back to assist with the company's turnaround efforts. Sklarsky first joined DaimlerChrysler in 1983, and held a series of increasingly responsible finance positions before leaving for Dell in 2000. At the time of his departure for Dell, he was DaimlerChrysler's Vice President, Corporate Financial Activities. He also had financial responsibility for procurement, product quality, cost management and worldwide manufacturing during his tenure. Prior to DaimlerChrysler, Sklarsky, a certified public accountant, served as a Senior Accountant at Ernst & Young International from 1978 to 1981. About Eastman Kodak Co. Headquartered in Rochester, New York, Eastman Kodak Company -- http://www.kodak.com/-- is a worldwide vendor of imaging products and services. The company is committed to a digitally oriented growth strategy focused on four businesses: Digital & Film Imaging Systems - providing consumers, professionals, and cinematographers with digital and traditional products and services; Health -- supplying the medical and dental professions with traditional and digital imaging and information systems, IT solutions, and services; Graphic Communications - providing customers with a range of solutions for prepress, traditional and digital printing, document scanning, and multi-vendor IT services; and Display & Components - supplying original equipment manufacturers with imaging sensors as well as intellectual property and materials for the organic light- emitting diode and LCD display industries. The company has operations in the Asia-Pacific region, including in India, Japan, Korea, Malasia, New Zealand, Philippines, Singapore, Taiwan and Thailand. * * * Moody's Investors Service placed Eastman Kodak Company on review for possible downgrade. Ratings under review include the Company's B1 Corporate Family Rating; B2 Senior Unsecured Rating; and Ba3 rating on the Senior Secured Credit Facilities. Moody's review continues to focus on the company's potential sale of the Kodak Health Group as well as the fundamental operating performance of the company. Standard & Poor's Ratings Services placed its ratings on Eastman Kodak Co. (B+/Watch Neg/--) on CreditWatch with negative implications. The Rochester, New York-based imaging company had US$3.5 billion in debt as of June 30, 2006. ICICI BANK: To Provide INR4-Crore Funding to WaterHealth Int'l -------------------------------------------------------------- WaterHealth International, Inc., announced on October 10, 2006, ICICI Bank's funding commitment for WHI's development of community water facilities in rural India. In the initial tranche of funding, ICICI Bank committed INR40 million (approximately US$865,000) to WaterHealth India Pvt. Ltd., WHI's subsidiary, in a commercial loan facility. "Providing clean and safe water in underserved areas of the world in a sustainable way is an unparalleled challenge in the fight against waterborne diseases," said WHI CEO Dr. Tralance Addy. "WaterHealth International offers an affordable commercial solution to this problem, and we are pleased that ICICI Bank embraces our business model and has decided to support our expanding efforts in India." "WaterHealth International has devised a business solution for providing the poorest communities with clean water," said Nachiket Mor, ICICI Bank Deputy Managing Director. "ICICI Bank is pleased to finance this initiative, which we believe can be commercially successful while providing clean water at affordable prices in rural India." WaterHealth International, Inc. provides innovative business solutions to one of the world's most desperate health crises, the lack of safe, clean and affordable water for the billions of people who have little or no access to it. WHI's award-winning water purification and disinfection technology, combined with creative and unique business approaches, enable the delivery of highly affordable, clean water to even the most remote and underserved communities. WHI invests in health and hygiene education programs as part of its normal business practices to combat waterborne diseases in the communities it serves. WHI's Web site is http://www.waterhealth.com/ 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. ICICI BANK: Plans to Launch More Remittance Products ---------------------------------------------------- With the robust performance of its remittance business, ICICI Bank Limited plans to introduce various products in the segment before the end of this fiscal year, Press Trust of India, reports. PTI quoted ICICI Bank officer, Manish Misra as saying, " We have a few innovatively-structured products tailor-made for the remittances market in the pipeline slated for launch before March 2007." Furthermore, the Bank officer told PTI that the new products will: -- be market-specific; -- possess a plethora of innovative features that will make the modes of disbursing and accepting funds very easy; and -- focus on end-beneficiaries who do not have an account with us as also on the hitherto unbanked segments. The Bank's other plans include exploring alliance possibilities with overseas banks. It is actually currently in talks with other foreign banks and have even put up six tie-ups, Mr. Mira added. 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. IFCI LTD: Given 2,74,430 Preference Shares in Dhampur Sugar ----------------------------------------------------------- In a filing with the Bombay Stock Exchange, Dhampur Sugar Mills Ltd disclosed that it has allotted 2,74,430, 0.01% Compulsorily Convertible Preference Shares to IFCI Ltd. The CCPS allotment is pursuant to a resolution by the Board of Directors at a meeting held on September 12, 2006. About IFCI Limited Headquartered in Delhi, India, IFCI Limited -- http://www.ifciltd.com/-- is established to cater the long-term finance needs of the industrial sector. IFCI's principal activities include project finance, financial services, non- project specific assistance and corporate advisory services. Project finance involves providing credit and other facilities to green-field industrial projects (including infrastructure projects), as well as to brown-field projects. Financial services covers a range of activities wherein assistance is provided to existing concerns through various schemes for the acquisition of assets, as part of expansion, diversification and modernization programs. Non-project specific assistance is provided in the form of corporate/short- term loans, working capital, bills discounting, etc to meet expenditure, which is not specifically related to any particular project. Its investment portfolio includes equity shares, preference shares, security receipts and government securities. * * * Fitch Ratings, on June 29 2006, affirmed IFCI Limited's support rating at '4'. The outlook on the rating is stable. Additionally, on February 15, 2006, Credit Analysis and Research Limited retained a CARE D rating to the long and medium term debt aggregating INR248 crore. Instruments carrying this rating are judged to be of the lowest category. They are either in default or likely to be in default soon. INDIAN OIL: Discloses Outcome of 47th Annual General Meeting ------------------------------------------------------------ The Indian Oil Corporation Ltd held its 47th Annual General Meeting on September 22, 2006. During the meeting, the members have agreed to, among others: 1. the adoption of the company's Audited Balance Sheet as of March 31, 2006, and the Profit & Loss Account for the year ended on that date, together with Directors' and Auditors' related reports and the comments of the Comptroller and Auditor General of India and the replies; 2. the declaration of dividend at the rate of 125% on the paid-up capital of the company for the financial year ended March 31, 2006; 3. the re-appointment of Shri P M Sinha, Shri R S Sharma, Shri A M Uplenchwar and Prof. S K Barua as directors of the company; and 4. the appointment of Shri Anil Razdan and Shri G C Daga as directors of the corporation, liable to retire by rotation. Also during the meeting, the Chairman said that the company had received an application from one of the shareholders, Shri Ramjilal Choudhary, offering himself as a candidate for the office of the Director pursuant to Section 257 of the Companies Act. Since the shareholder who was also the proposer was not present at the meeting, the Chairman declared that the item is withdrawn. About Indian Oil Corporation Headquartered in New Delhi, Indian Oil Corporation Limited -- http://www.iocl.com/-- is engaged in the sale of petroleum products. Other businesses comprise the sale of imported crude oil, sale of gas, petrochemicals and oil and gas exploration activities jointly undertaken in the form of unincorporated joint ventures. The company's premium fuels include XTRAPREMIUM petrol and XTRAMILE diesel. AutoGas is Indian Oil's auto liquid petroleum gas brand and sells SERVO lubricants in 10 countries. The aviation fuel supply business caters to the aviation fuel requirements of the defense services, national carriers, scheduled private airlines and international airlines. The Digboi Refinery of the Assam Oil Division processes crude oil and its marketing network comprises 366 retail outlets, 399 kerosene/light diesel oil dealerships, and 271 Indane distributors. It owns and operates 18 refineries with a combined refining capacity of 54.20 million tones per annum (1.1 million barrels per day). * * * The Troubled Company Reporter - Asia Pacific reported on April 21, 2006, that Standard & Poor's Ratings Services revised the outlook on Indian Oil to positive from stable. At the same time, S&P affirmed the 'BB+' issuer credit rating on the Company. The outlook revision follows the revision in the outlook on the sovereign credit ratings on India (BB+/Positive/B) on April 19, 2006. Additionally, Moody's Investors Service gave Indian Oil a Ba1 long-term corporate family rating and a Ba2 issuer rating on March 3, 2005. ================= I N D O N E S I A ================= PERUSAHAAN LISTRIK: Raises US$1 Bil. in Oversubscribed Bond Sale ---------------------------------------------------------------- PT Perusahaan Listrik Negara sold US$1 billion of bonds after getting US$6 billion in bids in Indonesia's biggest corporate debt sale overseas, Denise Kee of Bloomberg News reports, citing a person familiar with the transaction. According to the report, PLN sold US$450 million of five-year bonds priced at a yield of 7.4%, lower than the guidance of 7.5% to 7.75% that was earlier provided to investors. In addition, PLN sold US$550 million of 10-year bonds at a yield of 7.9%, lower than the 8% to 8.25% guidance, Bloomberg notes. The 10-year bonds offered a yield that is about 144 basis points more than similar-maturity government bonds, Bloomberg says. More than 70% of the bonds were bought by bond funds, with less than 15% going to banks. The Indonesian sovereign bonds maturing March 2017 are yielding 6.458% as of Oct. 11. A basis point is 0.01 percentage point. UBS AG, Switzerland's largest bank, and Jakarta-based PT Danareksa Sekuritas were hired to arrange the sale and sold about 70% of the bonds to investors in Europe and the United States, Ms. Kee says. More than 250 investors bought the bonds. Finance Asia specifically states that by geography, the five- year notes are said to have been split thus: 30% Asia, 40% United States and 30% Europe. With 79% of the bonds being bought by fund managers, 12% by banks, 5% by insurers, 3% by retail and 1% by others. The ten-year tranche had the same geographic slit, with 77% of the notes going to fund managers, 15% to banks, 5% to insurers, 1% to retail and 2% going to others. The proceeds from the sale will help to finance PLN's US$18 billion capital expenditure plans over the next four years, Finance Asia says. Furthermore, the report cites PLN as stating on the roadshows that it has a US$1.65 billion requirement of immediate financing to fulfill its fast-track generator building programme. So this deal goes some way to establishing a precedent for a recurrent borrowing plan. Listrik Negara's bonds are rated BB- by Standard & Poor's, three steps below investment grade. Moody's Investor Service rated the debt as B1, the fourth highest non-investment grade, the same rating as Indonesia's sovereign debt. Indonesian state utility firm PT Perusahaan Listrik Negara -- http://www.pln.co.id/-- transmits and distributes electricity to around 30 million customers, roughly 60% of Indonesia's population. The Indonesian Government decided to end PLN's power supply monopoly to attract independents to build more capacity for sale directly to consumers, as many areas of the country are experiencing power shortages. PLN posted a IDR4.92-trillion net loss in 2005, against a net loss of IDR2.02 trillion in 2004. The Troubled Company Reporter - Asia Pacific reported on Oct. 5, 2006, that Moody's Investors Service has assigned a B1 senior unsecured rating to PT Perusahaan Listrik Negara's proposed U.S. dollar bond issuance. At the same time, Moody's has assigned its B1 corporate family rating to PLN. The rating outlook is stable. Standard & Poor's Ratings Services also assigned its 'BB-' foreign currency rating and 'BB' local currency rating to PLN. The outlook on the ratings is stable. At the same time, Standard & Poor's assigned its 'BB-' issue rating to the proposed U.S. dollar senior unsecured notes issued by PLN's wholly owned subsidiary, Majapahit Holding B.V. * Indonesia to Swap 2007-2009 Bonds with 14-Year Paper ------------------------------------------------------ Indonesia will swap government rupiah bonds maturing in 2007- 2009 with longer term paper on October 17, 2006, as part of efforts to smooth out repayment schedules, Reuters reports, citing a finance ministry official. The finance ministry's debt management unit head, Rahmat Waluyanto, told Reuters that investors will be able to switch bonds maturing between 2007-2009 into 14-year paper debt maturing in 2020. According to the report, the Government has recently stepped up efforts to ease the cost of servicing its debt burden, which is expected to peak in the next three years, partly by taking advantage of strong foreign demand for the bonds. Foreign investors have bought a substantial amount of Indonesian government bonds this year, attracted by one of Asia's highest bond yields and the prospect of lower domestic interest rates. Rating agencies, however, still rate Indonesian bonds below investment grade, or junk status, Reuters notes. * * * As reported in the TCR-AP on July 27, 2006, Standard & Poor's Ratings Service raised its long-term foreign currency rating for Indonesia to 'BB-' from 'B+', and the long-term local currency rating to 'BB+' from 'BB'. S&P also affirmed the country's 'B' short-term rating. Fitch gave Indonesia a BB- long-term foreign currency rating. Indonesia carries Moody's 'B1' rating. * Indonesia Expects Ratings Upgrade After IMF Payback ----------------------------------------------------- Indonesia hopes that its early payment of its remaining US$3.2 billion debt to the International Monetary Fund will improve its sovereign credit ratings, which remain below investment grade, Reuters reports, citing the central bank. The central bank, Bank Indonesia, also said that it has cleared its debt to the IMF effective on October 12, 2006. Reuters notes that the loans were originally due by 2010. "We hope that the settlement of this debt will increase investor confidence in us and that we hope will be followed by a better rating and a lowering in country risk," the central bank said in a statement. According to Reuters, the IMF led a multi-billion dollar loan package to help Indonesia weather the Asian financial crisis of the late 1990s, which hit the country hard. As reported in the Troubled Company Reporter - Asia Pacific on August 17, 2006, pursuant to the Indonesian Government's original repayment schedule, the final repayment was slated in December 2010 on a credit line worth US$11.1 billion extended by the IMF in August 1998, after the Asian financial crisis, and was later extended in February 2000 on an extended fund facility. The central bank had forecast the country's foreign exchange reserves would be US$43 billion at the end of this year, against US$42.35 billion at the end of September, Reuters says. The bank, however, said the US$3.2 billion payment would cut the year-end figure to around US$39 billion, which it said was comfortable enough to cover the country's import needs for more than four months as well for foreign debt repayments. * * * As reported in the TCR-AP on July 27, 2006, Standard & Poor's Ratings Service raised its long-term foreign currency rating for Indonesia to 'BB-' from 'B+', and the long-term local currency rating to 'BB+' from 'BB'. S&P also affirmed the country's 'B' short-term rating. Fitch gave Indonesia a BB- long-term foreign currency rating. Indonesia carries Moody's 'B1' rating. ========= J A P A N ========= ALL NIPPON AIRWAYS: Launches ANA CARD ------------------------------------- All Nippon Airways Co., Ltd., will become the first non-Chinese airline to issue a credit card in China on October 18, 2006, TradingMarkets.Com reports. Through collaborations with China Merchant Bank and Prestige International, the company will provide the ANA Card China, a VISA Gold card that allows ANA Mileage Club members residing in China to make and settle payments using local currency and accrue mileage for every purchase they make, among other benefits. Annual membership costs CNY650 for the main cardholder and CNY350 for each additional family member. ANA Card China is the third ANA Card to be issued outside Japan, following similar cards in the United States and Hong Kong. Customers who successfully apply for ANA Card China before March 31, 2007, will receive 5,000 bonus miles, which can be used by the main cardholder only. Main cardholders will also receive an additional 5,000 miles for the first ANA flight taken between China and Japan between the opening date for ANA Card China applications and March 31, 2007. Application forms can be found at all ANA branches and airport counters in China. Customers may also contact the ANA Card China Service Centre on: (China) 800-820-0896, or at http://www.anacardchina.com Headquartered in Tokyo, All Nippon Airways Co., Limited -- http://www.ana.co.jp/eng/-- is Japan's second-largest airline company in terms of revenue. The company, which was founded in 1952, provides these services: 1. Scheduled air transportation business; 2. Nonscheduled air transportation business and business utilizing aircraft; 3. Business of buying, selling, leasing and maintenance of aircraft and aircraft parts; and 4. Aircraft transportation ground support business, including passenger boarding procedures and loading of hand baggage. As reported in the Troubled Company Reporter - Asia Pacific on May 30, 2006, Moody's Investors Service has upgraded to Ba1 from Ba3 the senior unsecured debt ratings of All Nippon Airways Co., Ltd. The rating action concludes the review initiated on March 3, 2006. The rating outlook is stable. The TCR-AP reported on May 3, 2006, that Standard & Poor's Ratings Services revised its outlook on the BB- long-term corporate credit rating on All Nippon Airways to positive from stable, reflecting the company's improved earnings and expectations for stable profitability, thanks to cost reductions efforts as well as a stronger competitive position. Standard & Poor's also affirmed its long-term corporate credit and senior unsecured debt ratings on the company. Fitch Ratings on the other hand, gave All Nippon Airways a 'BB+' rating. CNET NETWORKS: Names Neil Ashe as New Chief Executive Officer ------------------------------------------------------------- CNET Networks, Inc. disclosed that its Board of Directors has unanimously appointed Neil Ashe as the company's new chief executive officer and director effective immediately. Co- founder and chief executive officer Shelby Bonnie has resigned as chairman and CEO. The company also said that Jarl Mohn has been named non- executive chairman of CNET Networks' Board of Directors. Mr. Mohn has extensive experience in the media and technology industries. Mr. Mohn has previously served as president and chief executive officer of Liberty Digital, Inc., founding president and CEO of E! Entertainment Television, and executive vice president and general manager of MTV and VH1. "CNET Networks is known for building world class brands for people and the things they are passionate about. It's been an honor to work with Shelby as we have grown the company from its technology roots and moved into new categories like Entertainment, Food and Parenting," said Neil Ashe. "CNET Networks is a different kind of media company and we are committed to continuing to be pioneers in interactive content. We have been and will be innovators, and together with my colleagues worldwide, I am confident about what we can accomplish. Innovation is part of our DNA and will be fundamental to our success moving forward." Jarl Mohn, the newly appointed chairman of the Board, said, "Neil has been instrumental in CNET Networks' growth and success over the past few years both as head of corporate strategy and development and through the operation of several business units. This announcement marks the successful completion of the Board's succession planning started more than 18 months ago. Neil's broad-based expertise in all facets of the business, together with his outstanding management and leadership skills, are valuable assets that will serve our company well as we continue to expand CNET Networks." "I am confident under Neil's leadership CNET Networks will continue to play an important role in the evolving media landscape" said Shelby Bonnie. "He will build upon the company's legacy and take it to new heights." Since joining CNET Networks in 2002, Mr. Ashe has led the company's content expansion strategy, including numerous acquisitions to develop its existing products and expand into new categories which attract new audience and customer segments. His day-to-day responsibility for the Community and Lifestyle, International, Channel, and Business divisions has resulted in new product development, audience growth and revenue streams for the company. Prior to joining CNET Networks, Mr. Ashe founded and served as chief executive officer of several start-up companies and held senior positions in private equity and investment banking. Mr. Ashe holds an MBA from Harvard Business School and a BS from Georgetown University. About CNET Networks CNET Networks, Inc. (Nasdaq: CNET) -- http://www.cnetnetworks.com/-- is an interactive media company that builds brands for people and the things they are passionate about, such as gaming, music, entertainment, technology, business, food, and parenting. The company's leading brands include CNET, GameSpot, TV.com, MP3.com, Webshots, CHOW, ZDNet and TechRepublic. Founded in 1993, CNET Networks has a strong presence in the US, Asia and Europe. The company has locations in Japan, China, Korea, Australia, Germany and France, among others. * * * CNET Networks received a notice from the trustee under the indenture governing the company's US$125 million aggregate principal amount of 0.75% Convertible Senior Notes due 2024, stating that the company is in default of its covenant to file its Form 10-Q with the trustee within fifteen days after it is required to be filed with the SEC. If the default is not cured within 60 days, the bonds may be accelerated by the holders of 25% outstanding principal amount or the trustee. As of June 30, 2006, the company had approximately US$143.3 million of cash and investments. CNET NETWORKS: Discloses Findings of Stock Options Probes --------------------------------------------------------- CNET Networks, Inc. said that a special committee of its Board of Directors has reported its findings on the company's options granting practices and procedures to the Board of Directors. As reported in the Troubled Company Reporter on May 24, 2006, the company's Board of Directors appointed a special committee of independent directors to conduct an internal investigation relating to past option grants, the timing of such grants and related accounting matters. The Special Committee consists of two independent members of CNET Networks' audit committee of the Board of Directors - Peter Currie and Betsey Nelson, chair of the audit committee. The Special Committee was assisted in the investigation by outside legal counsel Davis Polk & Wardwell and accountants from Navigant LLC. The Special Committee reviewed and analyzed more than 700,000 documents and emails, and conducted over thirty interviews of current and former officers, directors, employees and advisors to CNET Networks over the last four months. The company says that the Special Committee and the company continue to cooperate with the Securities and Exchange Commission, the NASD and the United States Attorney's Office for the Northern District of California. "The completion of the Special Committee report represents an important step forward for CNET Networks," said Neil Ashe, the company's newly elected chief executive officer. "We are committed to ensuring that the highest standards of business conduct, financial reporting and internal controls are maintained, and we are focused on quickly implementing the recommendations of the Special Committee. Under the leadership of our CFO, George Mazzotta, we look to complete the restatement of historical financial statements related to past stock option grants as soon as practicable." Key findings of the Special Committee's report include: * There were deficiencies with the process by which options were granted at CNET, including in some instances the backdating of option grants, during the period from the Company's IPO in 1996 through at least 2003. * These deficiencies resulted in accounting errors, which the Company has previously announced will result in a restatement. * A number of executives of the company, including the former CFO and the recently resigned CEO, General Counsel and SVP of Human Resources, bear varying degrees of responsibility for these deficiencies. * The report does not conclude that any current employees of the company or any recently resigned employees engaged in intentional wrongdoing. * Since 2003, the company has taken steps to remedy these deficiencies through personnel changes and improved internal controls. The Special Committee recommended a number of additional remedial measures. * The recently resigned executives and the directors who received improperly priced options have agreed voluntarily to have these options repriced to fair market value on the appropriate measurement date. The Special Committee reported that it believes that the Compensation Committee relied upon management to establish and maintain appropriate procedures with respect to stock option grants. The report stated that it would have been better practice if the Compensation Committee had encouraged management to adopt more rigorous procedures and controls during the 1996- 2003 period. The company's co-founder and the chairman of the board and chief executive officer from 2000 to the present, Shelby Bonnie, has resigned as chairman and CEO but will remain a director. The company's general counsel and head of Human Resources have also resigned. With regard to Mr. Bonnie, Mr. Jarl Mohn, chairman of the Board of Directors, commented, "We extend our appreciation to Shelby for his founding role and many years of service, and for his willingness to work with the Board and the company in assisting with this transition. Shelby's lasting legacy will be the innumerable positive actions he undertook to make CNET Networks the successful industry leader it is today." "I apologize for the option-related problems that happened under my leadership," said Shelby Bonnie. "I believe that the company has come a long way since 2003 in addressing these deficiencies, but am deeply disappointed it happened nonetheless." The company and its independent auditors are reviewing the findings of the Special Committee investigation. Management continues to expect that CNET Networks will need to restate its historical financial statements to record non-cash charges for compensation expense relating to past stock option grants. The company and its independent auditors are reviewing recent accounting guidance published by the SEC, and have not yet determined the amount of such charges, the resulting tax and accounting impact, or which periods may require restatement. About CNET Networks CNET Networks, Inc. (Nasdaq: CNET) -- http://www.cnetnetworks.com/-- is an interactive media company that builds brands for people and the things they are passionate about, such as gaming, music, entertainment, technology, business, food, and parenting. The company's leading brands include CNET, GameSpot, TV.com, MP3.com, Webshots, CHOW, ZDNet and TechRepublic. Founded in 1993, CNET Networks has a strong presence in the US, Asia and Europe. The company has locations in Japan, China, Korea, Australia, Germany and France, among others. * * * CNET Networks received a notice from the trustee under the indenture governing the company's US$125 million aggregate principal amount of 0.75% Convertible Senior Notes due 2024, stating that the company is in default of its covenant to file its Form 10-Q with the trustee within fifteen days after it is required to be filed with the SEC. If the default is not cured within 60 days, the bonds may be accelerated by the holders of 25% outstanding principal amount or the trustee. As of June 30, 2006, the company had approximately US$143.3 million of cash and investments. CNET NETWORKS: Extends Consent Offering for 0.75% Senior Notes -------------------------------------------------------------- CNET Networks, Inc. modified and extended its solicitation of consents for its outstanding US$125.0 million principal amount of 0.75% Senior Convertible Notes due 2024. The company also updated its outlook for it revenues for the third quarter of 2006 and for the full year. Modified and Extended Consent Offering The consent solicitation has been modified to offer holders a two-year extension of the call protection period so that such period would end on April 20, 2011 rather than April 20, 2009. The offer, which was scheduled to expire midnight, New York City time, on October 11, 2006, will now expire at midnight, New York City time, on Wednesday, October 18, 2006. The solicitation is being made upon the terms, and is subject to the conditions, set forth in the company's Consent Solicitation Statement, dated September 13, 2006, and in the accompanying form of consent, as amended by the supplement to Consent Solicitation Statement dated October 11, 2006. The proposed amendments and waivers require the consent of holders of 70% of aggregate principal amount of the notes outstanding. Requests for additional copies of the Consent Solicitation Statement, the Letter of Consent or other related documents should be directed to D.F. King & Co., Inc., the information and tabulation agent, at (800) 829-6551 (toll-free) or (212) 269- 5550 (collect). Questions regarding the consent solicitation should be directed to the Convertibles Sales Department of Banc of America Securities LLC, the solicitation agent, at 800-654- 1666 (toll-free) or 212-583-8206 (collect). Business Outlook In April 2006 the company revised its outlook noting several industry trends in the technology and video game industries. These factors continue to impact CNET Networks' business, and accordingly, the company has further revised its outlook. * For the third quarter of 2006, CNET Networks estimates total revenues were approximately US$92.8 million. Previously, the Company had expected total revenues of US$93 million to US$96 million. * For the full-year 2006, CNET Networks expects total revenues of US$376 million to US$386 million. Previously, the company had expected full year total revenues of US$386 million to US$403 million. Form 10-Q Filing Delay The company will not be in a position to file its Quarterly Report on Form 10-Q for the quarter ended September 30, 2006 on a timely basis, pending the completion of its financial restatements related to its independent investigation of stock option granting practices and of the requisite audit procedures by the company's independent registered public accountants. Consequently, CNET Networks is not in a position to provide actual results or guidance regarding operating expense, operating income, net income or earnings per share. About CNET Networks CNET Networks, Inc. (Nasdaq: CNET) -- http://www.cnetnetworks.com/-- is an interactive media company that builds brands for people and the things they are passionate about, such as gaming, music, entertainment, technology, business, food, and parenting. The company's leading brands include CNET, GameSpot, TV.com, MP3.com, Webshots, CHOW, ZDNet and TechRepublic. Founded in 1993, CNET Networks has a strong presence in the United States, Asia and Europe. The company has locations in Japan, China, Korea, Australia, Germany and France, among others. * * * CNET Networks received a notice from the trustee under the indenture governing the company's US$125 million aggregate principal amount of 0.75% Convertible Senior Notes due 2024, stating that the company is in default of its covenant to file its Form 10-Q with the trustee within fifteen days after it is required to be filed with the SEC. If the default is not cured within 60 days, the bonds may be accelerated by the holders of 25% outstanding principal amount or the trustee. As of June 30, 2006, the company had approximately US$143.3 million of cash and investments. J. CREW: 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 US and Canadian Retail sector, the rating agency confirmed its Ba3 Corporate Family Rating for J. Crew Operating Corporation and its Ba3 rating on the company's US$250 million term loan. In addition, Moody's assigned an LGD4 rating to notes, suggesting noteholders will experience a 58% 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%). J. Crew Group is a nationally recognized retailer of men's and women's apparel, shoes and accessories. The company operates 164 retail stores, the J. Crew catalog business, jcrew.com, and 44 factory outlet stores. There are J. Crew stores in Japan. KIYO BANK: Absorbs Competitor Wakayama Bank ------------------------------------------- Kiyo Bank made a fresh start on October 10, 2006, by absorbing local competitor Wakayama Bank, The Japan Times reports. The move, according to the report, had given Kiyo Bank a total of 100 outlets with a 46% share in outstanding loans to customers in the Wakayama Prefecture. Kiyo Bank aims to expand lending to small and mid-size businesses in the prefecture and neighboring areas, and to increase its net operating profit, or profit from its core banking business, to more than JPY23 billion by March 2009, The Times notes. According to The Times, the profit goal represents JPY3.2 billion more than the combined profits that the two predecessors posted in the year that ended March 2006. The Financial Services Agency approved the merger in September, along with an injection of JPY31.5 billion in public funds to the merged bank to bolster its financial standing, The Times says. Kiyo Bank, Ltd., headquartered in Wakayama City, is the largest regional bank in Wakayama Prefecture. Its total asset size was around JPY2.8 trillion as of March 2006. The Troubled Company Reporter - Asia Pacific reported on September 22, 2006, that Moody's Investors Service affirmed Kiyo Bank, Ltd.'s E+ bank financial strength rating. Fitch Ratings also affirmed Kiyo Bank's Individual 'D/E' rating. L-JAC THREE: S&P Rates JPY71.889-Bil. Trust Certificates -------------------------------------------------------- Standard & Poor's Ratings Services assigned its ratings to L-JAC Three's JPY70.889 billion trust certificates, classes A to I and classes X-1 and X-2, due April 2013. The certificates are ultimately backed by a pool of seven nonrecourse loans that are ultimately secured by 17 properties. The overall loan pool is essentially divided into two pools, with the constituent loans grouped into either of the sub-pools according to their remaining terms. The class A to C certificates are backed by both pools, while the remaining classes are backed by one of the two sub-pools. The arranger for this transaction is Lehman Brothers Japan Inc., and the servicer is Capital Servicing Co. Ltd. Standard & Poor's ratings address the full and timely payment of interest and the ultimate repayment of principal by the transaction's final maturity in 2013 for the class A to F-2 trust certificates, the full payment of interest and ultimate full repayment of principal by the transaction's final maturity for the class G-1 to I trust certificates, and the timely payment of available interest for the interest-only class X-1 and class X-2 certificates. The ratings are based on: -- The quality of the underlying loans that secure the trust certificates; -- The quality of the underlying properties that secure the loans; -- Credit support provided by a subordination structure; -- Liquidity support provided by an advancing agent; and -- The soundness of the transaction's legal structure. Ratings Assigned: Over- Collateralization Class Rating Amount Coupon Type Ratio ----- ------ ------ ----------- ----------------- A AAA JPY40 bil. Floating Rate 43.6% B AA JPY7 bil. Floating Rate 33.7% C A JPY7 bil. Floating Rate 23.8% D-1 BBB JPY4 bil. Floating Rate 15.1% D-2 BBB JPY3.2 bil. Floating Rate 11.9% E-1 BBB- JPY1.4 bil. Floating Rate 11.5% E-2 BBB- JPY1.0 bil. Floating Rate 8.8% F-1 BB+ JPY1.4 bil. Floating Rate 7.9% F-2 BB+ JPY1.1 bil. Floating Rate 5.3% G-1 BB JPY1.5 bil. Floating Rate 4.1% G-2 BB JPY1.2 bil. Floating Rate 1.6% H-1 BB- JPY1.0 bil. Floating Rate 1.5% H-2 BB- JPY0.506 bil. Floating Rate 0.0% I B+ JPY0.583 bil. Floating Rate 0.0% X-1 AAA JPY70.889 bil. N/A N/A X-2 AAA JPY70.889 bil. N/A N/A MITSUBISHI MOTORS: Builds New Research Vehicle for Dev't Project ---------------------------------------------------------------- Mitsubishi Motors Corporation has built a new research vehicle, the Mitsubishi innovative Electric Vehicle for a next-generation EV development project. The electric vehicle will be used for joint research programmes with power companies that have been working on the promotion of EVs. The power companies will conduct field tests, gather data and evaluate the commercial viability of the vehicle. MMC will provide power companies with EVs and analyze field test data collected by them. The new research EV is based on MMC's "i" mini-car, and named "i MiEV". i MiEV is powered by a compact and lightweight motor and high-energy density lithium-ion batteries. After removing the i's combustion engine mounted on the platform with an original rear-midship layout, a single motor*2 is mounted in its place. i MiEV became electric-powered with few modifications of the body structure. In addition to the joint research programmes, MMC will further improve the components of i MiEV such as the battery system, motor and EV electronic control unit for the future commercial application. MMC will begin joint research with Tokyo Electric Power Company, and The Chugoku Electric Power Co., Inc., in November 2006 and with Kyushu Electric Power Co., Ltd., in January 2007. MMC will provide each power company with i MiEVs. By testing i MiEV, the power companies will evaluate how the vehicle is applied to their business and how fast-charge infrastructure may be developed for EVs. In the autumn of 2007, MMC will begin fleet testing in order to verify the vehicle's technical capabilities in daily use and to evaluate the commercial acceptance in collaboration with the power companies above along with, the Kansai Electric Power Co., Ltd., and Hokuriku Electric Power Company. MMC will provide the power companies with i MiEVs for the fleet tests. The data collected from the test of daily use shall be used to assess the commercial viability of EVs in the market place. MMC takes environmental concerns seriously. Developing new environmental technologies and diversification of fuel sources are MMC's key challenges and the MiEV project is an approach to these. MMC is also working on other environmental technologies such as clean diesel engines and bio-fuel engines. On the social side, MMC launched a natural conservation project called the "Pajero Forest & Local Mountain Restoration Initiative", which supports conservation and management of Japan's forests. i MiEV Vehicle Profile i MiEV is the third EV of MMC's MiEV series. Based on the i minicar platform, i MiEV replaces the conventional engine and fuel tank with a lithium-ion battery system, motor, inverter and other EV components in the rear-midship layout. There are two main advantages of the rear-midship layout: increased cabin space and plenty of space for the EV power train. The layout enables the power-train to be placed in front of the rear axle line, which ensures ample cabin space for passengers (4-occupant capacity). It also provides ample space for battery storage, which could achieve the desired daily driving range of a number of customers. An on-board charger allows the vehicle to be changed ordinary electric outlets. In addition to the high practical values, i MiEV displays higher performance levels than the base model in some categories. For example, i MiEV shows stronger torque, quieter noise and less vibration, which are natural advantages of EVs. *1 "MiEV" encompasses MMC's whole technological concept of lithium-ion battery, in-wheel motor and other technologies related to EV, hybrid electric vehicle and fuel cell vehicles. The MiEV concept is developed from MMC's former concept "Mitsubishi In-wheel motor Electric Vehicle", referring to a lithium-ion battery/in-wheel motor-driven vehicle. MMC continues to develop in-wheel motor technology. *2 In this system a single electric motor is coupled to a reduction gear and differential to drive both rear wheels. About Mitsubishi Motors Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation -- http://www.mitsubishi-motors.co.jp/-- is one of the few automobile companies in the world that produces a full line of automotive products ranging from 660-cc mini cars and passenger cars to commercial vehicles and heavy-duty trucks and buses. The company also operates consumer-financing services and provides this to its customer base. MMC adopted the "Mitsubishi Motors Revitalization Plan" on January 28, 2005, as its three- year business plan covering fiscal 2005 through 2007, after investor DaimlerChrysler backed out from the Company. The main objectives of the plan are "Regaining Trust" and "Business Revitalization." The company has operations worldwide, covering the United States, Germany, the United Kingdom, Italy, the Netherlands, the Philippines, Indonesia, Malaysia, China and Australia. Its products are sold in over 170 countries. As reported by the Troubled Company Reporter - Asia Pacific on September 29, 2006, Standard & Poor's Ratings Services raised its long-term corporate credit and senior unsecured debt ratings on Mitsubishi Motors Corp. to B- from CCC+, reflecting progress in the company's revitalization efforts and reduced downside risks in its earnings and financial profile. The outlook on the long-term rating is stable. As reported by the Troubled Company Reporter - Asia Pacific on August 4, 2006, Rating & Investment Information Inc. has upgraded its issuer rating on Mitsubishi Motors Corp. from CCC+ to B with a stable outlook and its commercial paper rating from c to b, and has removed the rating from its monitor at the same time. As reported by the Troubled Company Reporter - Asia Pacific on July 19, 2006, Japan Credit Rating Agency, Ltd. upgraded the rating of Mitsubishi Motors Corp.'s senior debts to BB- from B-, with a stable outlook. The agency also affirmed the NJ rating on CP program of the Company, while upgrading its rating on the Euro Medium Term Note Program of MMC and subsidiaries Mitsubishi Motors Credit of America, Inc. and MMC International Finance (Netherlands) B.V. to B+ from CCC. MITSUI LIFE: JCR Affirms BBB Rating on Ability to Pay Claims ------------------------------------------------------------ Japan Credit Rating Agency, Ltd., on October 6, 2006, has affirmed the BBB/Stable rating on ability to pay insurance claims of the issuer. It has also assigned anew a BBB/Stable rating to senior debts of the issuer. JCR gave this rationale: Mitsui Life strengthened capital in both amount and quality, issuing new shares amounting JPY100 billion privately in September 2006. Given the selling-off of the equity securities in conjunction with the capital increase, the Company's capital against risk is expected to improve further. Although the earnings from the so-called 3rd sector insurance such as healthcare and nursing care insurance will underpin the overall earnings level, it is unlikely that the earnings will improve significantly in the future due to drop in insurance with death benefit. JCR believes, however, that the Company will be able to accumulate earnings to a degree, given lowered probability of incurrence of large capital loss in the future. JCR will watch carefully implementation of its strategy as to whether the Company can enjoy the benefits of measures to strengthen operating base such as expansion in channels of sales persons and expansion in sales of 3rd sector insurance over the intermediate to long term. About Mitsui Life Headquartered in Tokyo, Japan, Mitsui Life Insurance Company Limited -- http://www.mitsui-seimei.co.jp/-- is one of Japan's major life insurance companies, with total assets of JPY8.1 trillion as of March 2006. The Troubled Company Reporter - Asia Pacific reported on September 7, 2006, that Moody's Investors Service placed on review for possible upgrade the Ba1 insurance financial strength rating of Mitsui Life Insurance Company Limited. The rating action reflects Moody's view that Mitsui Life's operating performance is improving, which has made it possible for the company to schedule a new share issuance for September 2006. On August 22, 2006, Standard and Poor's affirmed the company's financial strength and long-term local issuer credit rating at BB. SHIMIZU BANK: Fiscal 2006 Records JPY5.73-Billion Net Loss ---------------------------------------------------------- The Shimizu Bank, Ltd., posted a net loss of JPY5.73 billion for the fiscal year ended March 31, 2006, from a net profit of JPY2.14 billion in the previous fiscal year. Total income amounted to JPY33.38 billion. Total expense, however, amounted to JPY38.03 billion, including a JPY12.89-billion other operating expense account. As of March 31, 2006, the bank's total assets amounted to JPY1.28 trillion, while total liabilities and total shareholders' equity amounted to JPY1.21 trillion and JPY66.53 billion, respectively. Headquartered in Shizuoka Prefecture, The Shimizu Bank, Ltd. -- http://www.shimizubank.co.jp/-- is a regional bank mainly engaged in the banking services. The Bank operates in two business segments. The Banking segment is engaged in the provision of general banking services, including deposit services, loan services, foreign exchange services, securities trading services, securities investment services, corporation bond trust and registration services, Internet banking services, mobile banking services, telephone banking services and other banking services. The Leasing segment is engaged in the provision of leasing services. Fitch Ratings assigned a C/D individual rating to Shimizu Bank on January 31, 2006. SNOW BRAND: Moody's Lifts Senior Unsecured Debt Ratings to Ba2 -------------------------------------------------------------- Moody's Investors Service has upgraded Snow Brand Milk Products Co., Ltd.'s senior unsecured debt ratings to Ba2 from Ba3. The rating outlook is positive. The rating action reflects Moody's view that Snow Brand's profitability and cash flow generation will continue to stabilize and improve as a result of its ongoing rationalization efforts. The ratings continue to incorporate that the senior unsecured bonds are subordinated to the company's secured bank debt. Snow Brand underwent a significant restructuring from May 2002 until September 2005 by focusing on core businesses and spinning off its commercial milk company, which brought around a recovery of profitability and financial leverage. By maintaining its leading market positions in its core and relatively high-profit products such as butter, margarine and cheese and keeping SG&A costs moderate, it steadily improved its consolidated operating margin to 3.3% in FYE3/2006 from 1.2% in FYE3/2004. Moody's notes that the company has also improved its capital structure through debt reduction and various other measures. Snow Brand's main bank, The Norinchukin Bank, has played an important role in the execution of its restructuring plan and has provided significant financial support. Moody's understands that the company intends to keep strong banking relationships to further strengthen its credit profile going forward. At the end of March 2006, approximately 50% of Snow Brand's outstanding debts were secured -- a significant improvement from approximately 70% at the end of March 2005. However, in Moody's opinion, subordination remains, and the Ba2 ratings incorporate the subordination issue as before. Snow Brand's new mid-term business plan, started in October 2005, seeks growth opportunities while maintaining the companies' conservative financial policy. Initiatives have included investing in natural cheese factories in Hokkaido. Moody's further notes that Snow Brand's ratings continue to incorporate the challenges that the company may face over the medium term, such as achieving sustainable sales growth and strengthening its brand equity by launching higher-value-added products. Moody's will continue to assess the progress of its mid-term business plan, running from October 2005 to March 2009. Snow Brand Milk Products Co., Ltd., headquartered in Tokyo, is a leading dairy company in Japan. SOFTBANK CORP: Founder Pledges Collateral to Refinance Debt ----------------------------------------------------------- Softbank Corp.'s founder, Masayoshi Son, pledged a record amount of collateral to refinance US$10.7 billion of debt used in the acquisition of Vodafone K.K., Bloomberg News reports. As reported by the Troubled Company Reporter - Asia Pacific on September 27, 2006, Softbank plans to raise JPY1.45 trillion through the issuance of bonds backed by profits from its Vodafone business. The proceeds will be used to refinance the JPY1.28-trillion in one-year loan borrowed by Softbank in April for the acquisition of Vodafone K.K. Patricia Kuo, of Bloomberg, recounts that Softbank has offered all of the assets, income and shares of Vodafone K.K. as security for US$12 billion bonds and loans it plans to sell next month. Pursuant to data compiled by Bloomberg, Mr. Son -- whose net worth is US$7 billion, according to Forbes Asia -- agreed to provide the security in order for Softbank to be able to repay the JPY1.28 trillion in short-term financing and to get investment-grade ratings on the company's debt and cut annual interest costs by at least 1 percentage point. Most of Vodafone K.K.'s bonds and loans will be ranked A3 by Moody's Investors Service and A by Standard & Poors. The existing loan doesn't have credit ratings, and Softbank's bonds are ranked Ba2 by Moody's and BB- by S&P. Debt rated below Baa3 by Moody's and BBB- by S&P is considered non-investment grade, or junk. "We chose this type of asset-backed debt because it enables the securities to be rated higher than the ratings given to Softbank," said Jin Nakamura, a Softbank spokesman. "As a result we can reduce the interest payments." Mr. Son also promised creditors that Vodafone K.K. will meet revenue targets and limit expansion outside the mobile phone industry, stricter controls than are normal under creditor agreements, Bloomberg cites Standard & Poors analyst Masahiro Shidachi as saying. Vodafone K.K. originally paid interest on the loan of 250 basis points more than the Tokyo interbank offered rate, a lending benchmark, Bloomberg notes. That premium rose to 300 basis points when Softbank was unable to arrange new financing by the end of September. It will increase to 350 basis points unless the new debt is in place by the end of the year. Three-month Tibor is about 0.44%. Each 50 basis-point increase costs Vodafone K.K. JPY6.4 billion in annual interest payments. A basis point is 0.01 percentage point. The biggest part of the new financing is a JPY600-billion loan that will pay interest at 100 to 150 basis points more than Tibor, Bloomberg says, citing four bankers arranging the deal, who declined to be identified. It also will include a JPY350- billion loan with an interest margin of 150 to 250 basis points, the bankers said. Citigroup Inc., Deutsche Bank and Mizuho Financial Group Inc. arranged the initial loan with four more banks and are organizing the refinancing, helped by 15 more firms including WestLB AG, Calyon and Royal Bank of Scotland Group Plc, Bloomberg notes. Vodafone K.K.'s largest bond, a JPY200-billion note due in 2016, will have a yield premium of 28 basis points over similar- maturity Japanese government debt, said bankers involved in the sale. About Softbank Corporation Based in Tokyo, Japan, Softbank Corporation -- https://www.softbank.co.jp/ -- is a leading Japanese telecommunications and media corporation, with operations in broadband, fixed-line telecommunications, e-Commerce, Internet, broadmedia, technology services, finance, media and marketing, and other businesses. SoftBank was established on September 3, 1981, and had a market capitalization of approximately US$32.8 billion at February 28, 2006. SoftBank's corporate profile includes various other companies such as Japanese broadband company Cable & Wireless IDC, cable company BB-Serve, and gaming company GungHo Online Entertainment. On March 17, 2006, SoftBank announced its agreement to buy Vodafone Japan, giving it a stake in Japan's US$78 billion mobile market. * * * According to the Troubled Company Reporter - Asia Pacific on April 18, 2006, Standard & Poor's Rating Services agency affirmed its 'BB-' long-term corporate credit rating on the company, with negative implications. Moody's Investors Service had, on August 9, 2006, upgraded Softbank Corp.'s stable long-term debt rating and issuer rating to Ba2 from Ba3, concluding a review initiated on March 17, 2006, when the company announced that it would acquire a 97.7% stake in mobile phone giant Vodafone Group's Japanese unit, Vodafone K. K. YAZAKI INT'L: S&P Whips Long-Term Credit Rating to B+ from BBB- --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Yazaki International Corp. to 'B+' from 'BBB-' and removed the rating from CreditWatch with negative implications, where it was placed Aug. 21, 2006, following Ford Motor Co.'s announcement of sharp fourth quarter production cuts. Yazaki's 'A-3' short-term corporate credit rating was withdrawn. The outlook is negative. Yazaki, with US$249 million of debt including the present value of operating leases, is a wholly owned subsidiary of unrated Yazaki Corp. of Japan. YC primarily operates a similar, but larger business outside North America. "The downgrade reflects the sharp deterioration of Yazaki's financial and business risk profiles due to high raw material prices, production cuts by North American automaker customers, and higher production costs at Mexican facilities," Standard & Poor's credit analyst Gregg Lemos Stein said. The downgrade also incorporates Standard & Poor's view that potential financial support from YC will now be more limited in scope and scale, given the parent's own less profitable results which have also been hurt by higher raw material costs. ========= K O R E A ========= TRIGEM COMPUTER: Sale Plan Abandoned, Back to Court Receivership ---------------------------------------------------------------- TriGem Computer Inc.'s planned sale is scrapped because of a low bid, Bloomberg News reports, citing the company's e-mailed statement. The Troubled Company Reporter - Asia Pacific reported on Oct. 4, 2006, that only Human & Technology Co. submitted a bid for Trigem's assets. But negotiations with the lone bidder failed, reportedly due to disagreements in pricing and labor issues. According to Bloomberg, citing a MoneyToday article, Human & Technology and Trigem have already agreed on a price of around KRW170 billion but the bidder rejected demands to guarantee employment. Human & Technology also wanted to cut its offer price if due diligence reveals that KRW30 billion of receivables from Trigem would be difficult to collect. Because of the failed negotiations, Trigem will continue to restructure under court receivership, Cho Jin-seo of The Korea Times says. However, Mr. Cho added, the company is keeping its door open for future bidders while trying to survive on its own. About TriGem Headquartered in Ansan City, Kyunggi-Do, Korea, TriGem Computer Inc. -- http://www.trigem.com/-- manufactures desktop PCs, notebook PCs, LCD monitors, printers, scanners, other computer peripherals, and PIDs and supplies over four million PCs a year to clients all over the world. The Troubled Company Reporter - Asia Pacific reported on June 20, 2005, that the Suwon District Court has authorized TriGem's receivership and gave it a chance to revive its operations. The Suwon Court then appointed the Company's former president and chief executive officer Park Il-hwan as supervisor. Mr. Park, also as TriGem's Foreign Representative, filed a chapter 15 petition on Nov. 3, 2005, with the United States Bankruptcy Court for the Central District of California (Bankr. C.D. Calif. Case No. 05-50052), seeking recognition of TriGem's case pending under the Corporate Reorganization Act in Korea as a foreign main proceeding. Charles D. Axelrod, Esq., at Stutman Treister & Glatt, P.C., represents the Foreign Representative in the U.S. TriGem America Corporation, an affiliate of the Debtor, filed for chapter 11 protection on June 3, 2005 (Bankr. C.D. Calif. Case No. 05-13972). TriGem Texas, Inc., another affiliate of the Debtor, also filed for chapter 11 protection on June 8, 2005 (Bankr. C.D. Calif. Case No. 05-14047). (TriGem Bankruptcy News, Issue No. 3 Bankruptcy Creditors' Service, Inc., 215/945- 7000). * Korea Remains Intact From the Nuke Test, Vice Minister Says ------------------------------------------------------------- In a regular press briefing, Vice Minister of Finance and Economy Bahk Byong-won stressed that the Korean market has remained intact after a short-term shock affected by North Korea's announcement on nuclear test. He also highlighted the international view that there will not be a direct implication for Korea's sovereign rating and its outlook, citing international credit rating agencies and major investors. Vice Minister Bahk said the government will be drawing up countermeasures against all possible situations after closely monitoring daily movements. Meantime, he also touched on developments in economic cooperation with Russia and the Comprehensive Economic Partnership Agreement negotiations with India. I. Domestic Market Movements and Responsive Measures Against North Korea's Nuclear Test 1. Major Market Movements The short-term shock centering on the financial market right after the North Korea's claim on its nuclear test on October 9 seems to be tapering off gradually. Stock market plunged temporarily after the nuclear test report. However, the shocks from the news have eased steadily. End-Sept. Oct. 4 Oct. 9 Oct. 10 Oct. 11 --------- -------- -------- -------- -------- KOSPI 1,371.41 1,352.00 1,319.40 1,328.37 1,325.49 KOSDAQ 600.42 587.32 539.10 554.70 555.48 Individual investors who were the most shocked and unsettled at first as well as foreign and institutional investors began to regain confidence, which was evidenced by their net buying in KOSDAQ. (In KRW100 million) -------------------------------- Oct. 9 Oct. 10 Oct. 11 ------ ------- ------- KOSPI Individual -6,019 -1,270 -566 Foreign Institutional 6,124 1,460 702 KOSDAQ Individual -670 37 68 Foreign Institutional 719 67 -23 The bonds market has not yet been influenced by the nuclear issue. End-Sept. Oct. 4 Oct. 9 Oct. 10 Oct. 11 --------- -------- -------- -------- -------- Three-yr Treasury bond 4.57 4.57 4.59 4.58 4.61 The foreign exchange market was unstable on the day of nuclear test announcement with the surging won/dollar exchange rate. However, the rate started to decline from October 11. End-Sept. Oct. 4 Oct. 9 Oct. 10 Oct. 11 --------- -------- -------- -------- -------- KRW per US$ 946.2 949.1 963.9 959.5 958.2 The spread on foreign exchange stabilization bonds and CDS premium, which reflect international credit standing, slightly edged up on the announcement day. However, little changes have been observed since October 11. End-Sept. Oct. 4 Oct. 9 Oct. 10 Oct. 11 --------- -------- -------- -------- -------- Spread on ForEx stabilization (14 yr, bp) 70 69 72 71 70 CDS premium 23 23 28 28 26 Korean depository receipts fell affected by the claimed nuclear test at first, and now they deploy mixed movements per each stock. End-Sept. Oct. 4 Oct. 9 Oct. 10 Oct. 11 --------- -------- -------- -------- -------- Samsung Electronic 351.0 350.0 338.0 335.5 332.0 Kookmin Bank 78.0 80.6 76.6 77.9 78.5 Any signs of decrease in foreign direct investment have not been detected. In specific, Google, the world's largest Internet search engine, signed a deal to set up a R&D center in Korea, which suggests that the nuclear test had little impact on foreign investment. Oil prices and international raw material prices also showed little reaction at the report of the nuclear test. End- Sept. Oct. 4 Oct. 6 Oct. 9 Oct. 10 Oct. 11 ----- ------ ------ ------ ------ ------ WTI 63.8 59.5 59.7 59.9 58.5 57.5 Dubai 59.9 55.6 55.6 57.0 56.8 55.6 Reuters index* 2,034.8 2,030.2 2,056.1 2,058.4 2,052.6 2,051.5 S&P's "At this stage, I don't think there is a direct implication for South Korea's sovereign rating and its outlook. "S&P will watch for any fallout on South Korea's economy, its outlook and capital markets." Moody's "There will be no negative consequences on South Korea's credit fundamentals as long as North Korean geopolitical risks remain contained." Fitch "Fitch will closely monitor the reactions from the international community even though South Korea's credit rating will not be immediately affected by the North's announcement." 2. Assessment and Future Measures The initial shock of the North Korean nuclear test, which was mostly centered on the Korean financial market, has gradually tapered off. The real economy is assessed to have remained intact thus far. Meantime, the prospect by the economic players including households substantially deteriorated right after the North Korea's announcement of developing nuclear program in October 2002. Learning from the past experience, the government is of the view that some short term impact might get materialized later. * CSI: 111.6 (Q1 2002); 113 (Q2); 109 (Q3 2002); 98.3 (Oct 2002); 94.1 (Nov 2002) In particular, the Korean government does not rule out the possibility that the impact of the nuclear test might become much more serious in terms of width and depth, depending on the responses of the UN Security Council and related countries, and additional actions by the North. Against such backdrop, the government has launched an emergency measure team, through which it is closely monitoring the economic conditions. Considering all possible situations, the government is drawing up countermeasures. In specific, EMT has been empowered and now is headed by the Vice Minister of Finance and Economy. EMT makes daily reports that include daily movements and other particular matters in detail. At the moment, providing credit rating agencies and overseas investors with accurate information on the domestic market situation is believed to be of utmost importance. Therefore, the government is now fully running the e-mail network system for information dissemination. Responsive measures in the emergency situation are thoroughly reviewed and monitored by each EMT subunit. However, bearing in mind that announcing a specific measure ahead of market situation yet to be materialized might agitate the market, the government will prudently deal with the situation. In the future, the government will comprehensively review the developments of domestic and external conditions such as uncertainties in the global economy and increased risks in connection with the North Korean nuclear test. As and when necessary, the government will reflect related measures including revised growth prospect in the economic policy direction to be released in December 2006. II. Progresses in Economic Cooperation The 7th meeting of the Korea-Russia joint committee on economy, scientific and technological cooperation was held in Seoul on October 12, 2006. The meeting was attended by 13 Korean representatives headed by Deputy Prime Minister and Minister of Finance and Economy, while the Russian team was led by Mr. K. B. Pulikovsky, the Head of Federal Environmental, Industrial and Nuclear Supervision Service. The meeting has paved the institutional grounds to expand the bilateral economic cooperation covering a wide array of trade, investment, energy and resources, transportation, and scientific technology. The 4th round of Korea-India Comprehensive Economic Partnership Agreement negotiations was launched on October 10, running through October 13. Negotiation with India has witnessed substantial progress with consolidated texts on most areas including goods, services and investment being finalized. This round of talks will fine-tune the modality of goods concessions. * Bank of Korea Froze Key Interest Rate Amid North Test Concerns ---------------------------------------------------------------- The Bank of Korea froze its key interest rate on October 12, 2006, for a second consecutive month in October amid concerns over North Korea's nuclear test, the Korean Government's Web site states. The Bank of Korea retained its October 2006 target for the call rate at 4.5%, two months after boosting the rate to a five-year- high in August, Korean.net points out. The call is the interest charged on overnight inter-bank loans. The central bank expects economic growth to slow to 4% in the second half from a year earlier, down from more than a 5% advance in the first half. =============== M A L A Y S I A =============== ANTAH HOLDINGS: Total Default for Sept. Hits MYR255 Million ----------------------------------------------------------- In a filing with Bursa Malaysia Securities Berhad, Antah Holdings Berhad discloses the status of its various credit facilities in default to financial institutions as of Sept. 30, 2006. As of September 30, Antah Holdings total default plus interest owed to credit facilities total MYR255,305,000. Among the loans in default is a MYR140,000,000 facility extended by DBS Bank Ltd., which as of September 30, has an unpaid balance of MYR120,274,000. Details of the various credit facilities in default as of September 30 are available for free at: http://bankrupt.com/misc/antah_loan As previously reported by the Troubled Company Reporter - Asia Pacific, the company's total default as of August 31, 2006, stood at MYR252,577,000. About Antah Holdings Headquartered in Petaling Jaya, Selangor Darul Ehsan, Malaysia, Antah Holdings Berhad -- http://www.antah.com.my/-- manufactures and trades pharmaceutical products and fluid engineering and manufacturing. The Company's other activities include retailing of houseware and kitchenware, property development, insurance broking, provision of management services, and investment holding. The Group discontinued its beverage and security services operations. The Group operates in Malaysia, Australia, United Kingdom, and Singapore. The Company's balance sheet as of June 30, 2006, showed total assets of MYR678.492 million and total liabilities of MYR1.039 billion, resulting into a shareholders' deficit of MYR361.167 million. COMSA FARMS: Executive Director Chia Yam Kung Resigns ----------------------------------------------------- Comsa Farms Berhad informs Bursa Malaysia Securities Berhad of the resignation of its executive director, Chia Yam Kung. Mr. Chia, now 72, was appointed as Comsa Farms Executive Director on June 8, 1998. He is one of the founder members of Comsa Breeding Farms Sdn Bhd and also serves as a Director of several other private companies. Mr. Chia holds 60 ordinary shares and 350,581 warrants of the company. About Comsa Farms Headquartered in Sabah, Malaysia, Comsa Farms Berhad engages in the wholesale and retail of fresh and frozen chicken products, meat and foodstuff. Its other activities include livestock, aqua feed milling, poultry feeding, hatchery operations, and layer farming. On April 10, 2006, the Company was declared a Practice Note 17 company by Bursa Malaysia due to a stockholders' equity deficit. As an affected listed issuer, Comsa Farms is required to submit a plan to regularize its financial condition. The Company's balance sheet as of March 31, 2006, showed total assets of MYR200,072,000 and total liabilities of MYR273,643,000 resulting into a stockholders' deficit of MYR73,571,000. FEDERAL FURNITURE: Court Okays Capital & Share Premium Reduction ---------------------------------------------------------------- The Kuala Lumpur High Court enters an order confirming the capital reduction and share premium reduction contemplated in Federal Furniture Holding (M) Berhad's proposed debt restructuring scheme. The Proposed Debt Restructuring Scheme was approved by the Federal Furniture's shareholders at an extraordinary general meeting on June 30, 2006. Pursuant to the Restructuring Scheme, Federal Furniture specifically asked the High Court to reduce: -- its capital by cancelling 50 sen from the par value of every ordinary share of MYR1.00 in the company; and -- the Share Premium Account by MYR10,833,007. The High Court granted both. Upon the completion of the capital reduction, the company's authorized share capital will be reduced from MYR50,000,000 comprising 50,000,000 ordinary shares of MYR1.00 each to MYR25,000,000 comprising 50,000,000 ordinary shares of 50 sen each. The issued and paid-up share capital will be reduced from MYR27,681,500 comprising 27,681,500 ordinary shares of MYR1.00 each to MYR13,840,750 comprising MYR27,681,500 ordinary shares of 50 sen each. About Federal Furniture Headquartered in Selangor Darul Ehsan Malaysia Federal Furniture Holdings Bhd -- http://www.federal-furniture.com/-- is a listed company on the Kuala Lumpur Stock Exchange and is Malaysia's premier furniture and interior design group. It consists of companies in all the main sectors of the furniture-related industries, from manufacturing, marketing, exporting, contract furnishing and interior design to retail. On June 24, 2004, the Board of Directors of Federal Furniture has proposed a capital reduction, a share premium reduction, rights issue with warrants and a debt settlement scheme with some of its financial institution lenders to restructure and settle a substantial part of its total bank borrowings. On July 5, 2006, the Company submitted its Regulkarization Plan to Bursa Malaysia Securities Berhad for approval. As of March 31, 2006, the Company's balance sheet showed total assets of MYR145,551,934 and total liabilities of MYR151,217,536, resulting into a shareholders' deficit of MYR5,665,602. METROPLEX BERHAD: Sept. 30 Default Tops MYR1.8 Billion ------------------------------------------------------ Metroplex Berhad informs Bursa Malaysia Securities Berhad that the company's default in loan facilities extended to it by various lenders total MYR1,804,056,438 as of September 30, 2006. A table showing details of the facilities in default is available for free at: http://bankrupt.com/misc/MetroplexLoanDefaultSept30.xls As reported by the Troubled Company Reporter - Asia Pacific, the company's default as of August 30, 2006, aggregated MYR1,778,284,117. The company told the Bourse that it is still in negotiations with its lenders on a proposed composite scheme of arrangement. The company believes the scheme will essentially address the default in payment. About Metroplex Berhad Headquartered in Kuala Lumpur, Malaysia, Metroplex Berhad's activities are hotel and casino operations. Other activities include property investment, property development, provision of administrative services, general and building construction, leasing and financing, trading of building materials and operation of hotel management training school. Operations are carried out in Malaysia, Hong Kong, and the Philippines. On April 28, 2005, Morgan Stanley Emerging Markets Inc. had filed a wind-up petition against the Company with the Kuala Lumpur High Court. In the event the wind-up petition succeeds, the Company will be put into liquidation. Metroplex Berhad's April 30, 2006 balance sheet revealed total liabilities of MYR1,417,778,000 exceeding total assets of MYR1,214,518,000, resulting into a shareholders' deficit of MYR203,260,000. As of August 31, 2006, Metroplex's payment default reached MYR1,790,952,181. As of July 2006, the company's balance sheet showed MYR1.21 billion in total assets and MYR1.44 billion in total liabilities, resulting in a total shareholders' deficit of MYR223.77 million. METROPLEX BERHAD: MSEMI's Injunction Hearing Set for Oct. 2 ----------------------------------------------------------- The Troubled Company Reporter - Asia Pacific previously reported that the Kuala Lumpur High Court scheduled a hearing on Oct. 10, 2006, to consider Morgan Stanley Emerging Markets Inc.'s application of injunction against Metroplex Holdings Sdn Bhd, Metroplex Berhad's subsidiary. In an update, Metroplex Berhad relates that in the Oct. 10 hearing, the High Court fixed the injunction application hearing to November 16, 2006. As TCR-AP said in the report, MSMEI sought the injunction for the purpose of restraining Metroplex Berhad and Metroplex Holdings from: -- selling or disposing the Legend Hotel, forming part of the integrated retail office and hotel development commercially known as the Putra Place and erected on a piece of freehold land held under No. Hakmilik 10012, Lot No.38, Section 51, Bandar Kuala Lumpur, Daerah Kuala Lumpur, Negeri Wilayah Persekutuan to Metroplex Realty Sdn Bhd or other individuals; and -- implementing the proposal for the issuance of bonds by MRSB for and behalf of Metroplex Berhad. During the Oct. 10 hearing, the Court also entered a consent order allowing Metroplex Berhad or Metroplex Holdings to take all steps towards the completion of the proposed Legend Hotel Sale and proposed Bond Issue. In the event that the company and the subsidiary intend to complete both proposals on or before November 16, the Court directs the company to give MSEMI three working days prior notice of that intention. About Metroplex Berhad Headquartered in Kuala Lumpur, Malaysia, Metroplex Berhad's activities are hotel and casino operations. Other activities include property investment, property development, provision of administrative services, general and building construction, leasing and financing, trading of building materials and operation of hotel management training school. Operations are carried out in Malaysia, Hong Kong, and the Philippines. On April 28, 2005, Morgan Stanley Emerging Markets Inc. had filed a wind-up petition against the Company with the Kuala Lumpur High Court. In the event the wind-up petition succeeds, the Company will be put into liquidation. Metroplex Berhad's April 30, 2006 balance sheet revealed total liabilities of MYR1,417,778,000 exceeding total assets of MYR1,214,518,000, resulting into a shareholders' deficit of MYR203,260,000. As of August 31, 2006, Metroplex's payment default reached MYR1,790,952,181. As of July 2006, the company's balance sheet showed MYR1.21 billion in total assets and MYR1.44 billion in total liabilities, resulting in a total shareholders' deficit of MYR223.77 million. METROPLEX BERHAD: Wind-Up Petition Hearing Moved to December 14 --------------------------------------------------------------- The Kuala Lumpur High Court adjourns Morgan Stanley Emerging Markets' wind-up petition hearing against Metroplex Berhad to December 14, 2006. Originally, the Wind-Up Petition was originally set for hearing on Oct. 10. The Court will also consider on the December 14 hearing: -- MSEMI's application for the appointment of a Provisional Liquidator for Metroplex; and -- Metroplex's application to strike out MSEMI's Winding-Up Petition. About Metroplex Berhad Headquartered in Kuala Lumpur, Malaysia, Metroplex Berhad's activities are hotel and casino operations. Other activities include property investment, property development, provision of administrative services, general and building construction, leasing and financing, trading of building materials and operation of hotel management training school. Operations are carried out in Malaysia, Hong Kong, and the Philippines. On April 28, 2005, Morgan Stanley Emerging Markets Inc. had filed a wind-up petition against the Company with the Kuala Lumpur High Court. In the event the wind-up petition succeeds, the Company will be put into liquidation. Metroplex Berhad's April 30, 2006 balance sheet revealed total liabilities of MYR1,417,778,000 exceeding total assets of MYR1,214,518,000, resulting into a shareholders' deficit of MYR203,260,000. As of August 31, 2006, Metroplex's payment default reached MYR1,790,952,181. As of July 2006, the company's balance sheet showed MYR1.21 billion in total assets and MYR1.44 billion in total liabilities, resulting in a total shareholders' deficit of MYR223.77 million. SS&C TECHNOLOGIES: 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. Technology Software sectors this week, the rating agency confirmed its B2 Corporate Family Rating for SS&C Technologies, 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$75 Million Senior Secured Revolving Credit Facility due 2012 B2 Ba3 LGD2 28% US$200 Million Senior Secured First Lien due 2013 B2 Ba3 LGD2 28% US$205 Million Senior Subordinated Note due 2016 Caa1 Caa1 LGD5 83% 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 Windsor, Connecticut, SS&C Technologies, Inc. -- http://www.ssctech.com/-- provides software and outsourcing solutions for the financial services industry. The company has international offices in Malaysia, Singapore, Japan, Australia and the Netherlands, among others. ===================== N E W Z E A L A N D ===================== AUCKLAND ALUMINUM: Court Appoints Joint Liquidators --------------------------------------------------- The High Court of Auckland appointed Peri Micaela Finnigan and John Trevor Whittfield as joint and several of Auckland Aluminum Scaffoldings Services Ltd. In this regard, the joint liquidators set November 3, 2006, as the last day for the creditors of the company to submit their proofs of claim. Failure to prove their debt will exclude a creditor from sharing in any distribution the company will make. The Joint Liquidators can be reached at: John T. Whittfield McDonald Vague, P.O. Box 6092 Wellesley Street Post Office Auckland, New Zealand Telephone: (09) 303 0506 Facsimile: (09) 303 0508 Web site: www.mvp.co.nz CARTER HOLT HARVEY: Fined NZ$900,000 for Mislabeling Timber ----------------------------------------------------------- Carter Holt Harvey has pleaded guilty of breaching the Fair Trading Act by selling timber that did not meet the grade claimed on packaging. The company was fined NZ$900,000 for 20 breaches of the FTA. The Commerce Commission is also prosecuting six former or current Carter Holt Harvey employees, and is considering further civil proceedings to seek compensation. Judge Bouchier in the Auckland District Court found that between July 2000 and November 2003, Carter Holt Harvey sold timber labeled as MGP10 when it knew the timber did not consistently meet that grade. MGP10 -- Machine Graded Pine of a 10 gigapascal grade -- is a high-strength timber used for trusses and framing in homes and buildings, which Carter Holt Harvey marketed as a superior and premium product. It is estimated that around 20,000 new houses were built with Laserframe MGP10 supplied by Carter Holt Harvey during the period. Carter Holt Harvey's MGP10 sales in the period July 2000 to November 2003 were approximately NZ$63.4 million annually. Between August 2001 and November 2003, Carter Holt Harvey reported net sales revenue of approximately NZ$162.1 million from sales of MGP10 timber. In October 2002, the New Zealand Timber Industry Federation disclosed to the Commission that it had research results that showed Carter Holt Harvey's timber was not consistently meeting the MGP10 grade. Accordingly, in May 2003 the Commission tested three packets of the timber and confirmed that, on average, it was not meeting the MGP10 standard. It then searched the company's mills at Thames, Putararu, and Nelson, and seized documents, which proved the company had known about the problem since 2001. "The Commission considers that this is one of the most important and most serious Fair Trading cases we have dealt with," Commerce Commission Chair Paula Rebstock says. "Carter Holt Harvey's own internal report shows that since 2001 the company knew its timber was not consistently meeting the grade, yet they continued to sell it as high-grade MGP10," Ms. Rebstock says, noting that "to do otherwise would be 'financial suicide' -- that is what their internal documents reveal." However, Ms. Rebstock discloses that the Commission has been advised that use of the timber is unlikely to lead to any safety issues. But houses built with the timber may suffer performance defects like deflections in the roof and squeaky floors," Ms. Rebstock notes. About Carter Holt Carter Holt Harvey is described on its company Web site as "Australasia's leading forest products company, with significant interests in wood products, pulp, paper and packaging, supported by forests." Carter Holt Harvey is now the second largest company in New Zealand. The company is New Zealand's largest private forest owner, with more than 11,000 employees throughout its vertically integrated businesses. * * * On April 6, 2006, Moody's Investors Service withdrew the Ba1 senior unsecured ratings of Carter Holt Harvey Limited. The ratings have been withdrawn due to Moody's expectation that adequate information will not be available to maintain the ratings. The ratings withdrawn were: * Carter Holt Harvey Limited US$150 million 9.50% senior debentures, due 2024 -- Ba1 * Carter Holt Harvey Limited US$150 million 8.375% senior debentures, due 2015 -- Ba1 On March 23, 2006, Standard & Poor's Ratings Services lowered its corporate credit and debt issue ratings on New Zealand's Carter Holt Harvey Ltd. to 'B/Developing' from 'BB/Watch Neg', and later withdrew the ratings following the Rank Group's acquisition of more than 90% of CHH's ordinary shares. CARTER HOLT: Commerce Commission Clears CRBF Assets Acquisition --------------------------------------------------------------- The Commerce Commission has cleared CRBF Limited to acquire the shares and assets of a number of Carter Holt Harvey Limited subsidiaries that hold forestry assets. The clearance is subject to a divestment undertaking. According to Commerce Commission Chair Paula Rebstock, the proposed acquisition would not have, or would not be likely to have, the effect of substantially lessening competition in any of the relevant markets. The forestry assets include freehold property, non-freehold land interests, standing timber on that land, plant and equipment, business contracts, licences and consents. The forests and other assets are located in Northland, Auckland, Central North Island, and Nelson. A public version of the written decision will shortly be available on the Commission's Web site -- http://www.comcom.govt.nz/-- under Public Registers. About CRBF CRBF is a newly created timber investment fund managed by the US timber investment organization, Global Forest Partners. GFP currently advises four investment funds in New Zealand. These investment funds own forestry assets in the central North Island, a 50% share of a joint venture with Carter Holt in respect of the Mangakahia Forest in Northland, and a 49% share of a joint venture with Weyerhaeuser Company in respect of 63,000 hectares of forest in the Nelson region. About Global Forrest Global Forest Partners LP is one of the oldest and largest timber investment management organizations. Its direct predecessor, industry pioneer Resource Investments Inc., was founded in 1982 and purchased by UBS in 1995. Global Forrest is the successor firm to RII and UBS Timber Investors, and was formed via management buyout from UBS in September 2003. GFP currently manages a globally diverse US$1.5 billion portfolio of closed-end commingled timberfunds and separate accounts on behalf of institutional and other qualified investors. About Carter Holt Carter Holt Harvey is described on its company Web site as "Australasia's leading forest products company, with significant interests in wood products, pulp, paper and packaging, supported by forests." Carter Holt Harvey is now the second largest company in New Zealand. The company is New Zealand's largest private forest owner, with more than 11,000 employees throughout its vertically integrated businesses. * * * On April 6, 2006, Moody's Investors Service withdrew the Ba1 senior unsecured ratings of Carter Holt Harvey Limited. The ratings have been withdrawn due to Moody's expectation that adequate information will not be available to maintain the ratings. The ratings withdrawn were: * Carter Holt Harvey Limited US$150 million 9.50% senior debentures, due 2024 -- Ba1 * Carter Holt Harvey Limited US$150 million 8.375% senior debentures, due 2015 -- Ba1 On March 23, 2006, Standard & Poor's Ratings Services lowered its corporate credit and debt issue ratings on New Zealand's Carter Holt Harvey Ltd. to 'B/Developing' from 'BB/Watch Neg', and later withdrew the ratings following the Rank Group's acquisition of more than 90% of CHH's ordinary shares. DENNY'S CORP: Closes US$62-Mln Property Sale to National Retail --------------------------------------------------------------- Denny's Corporation has completed and closed the transaction to sell to National Retail Properties, Inc., certain of its franchisee-operated Denny's restaurant properties. As reported in the Troubled Company Reporter on September 15, 2006, the company has entered into an agreement to sell 66 franchisee operated restaurant properties to National Retail Properties, Inc., a real estate investment trust, for gross proceeds of approximately US$67 million. The company disclosed that a total of 60 properties were included in the closing, for a cash purchase price of approximately US$62 million. The sale of up to an additional 6 properties may close, subject to certain conditions, under the terms of the master purchase agreement for the transaction. The net cash proceeds of the asset sales have been applied to reduce the outstanding balance on the company's first lien term loan. During the third quarter, the company prepaid approximately US$80 million on the loan, bringing its total long-term debt balance down to approximately US$470 million as of September 27, 2006. Nelson J. Marchioli, president and chief executive officer, said, "The completion of this transaction and the resulting debt reduction are significant milestones in Denny's continuing efforts to strengthen its balance sheet. Denny's has endured a heavy debt burden for many years, which restricted its ability to grow. Over the last five years we have successfully reduced our outstanding debt balances by approximately US$160 million. While pleased with this progress, we will continue to pursue further debt reduction as an effective way to enhance value for our shareholders. These actions will ensure greater financial flexibility to invest in and expand the Denny's brand." The company also disclosed that it has 13 franchisee-operated properties remaining for sale. It expects that it will take up to twelve months to complete the sales. Headquartered in Spartanburg, South Carolina, Denny's Corporation -- http://www.dennys.com/-- is America's largest full-service family restaurant chain, consisting of 543 company- owned units and 1,035 franchised and licensed units, with operations in New Zealand, the United States, Canada, Costa Rica, Guam, Mexico, and Puerto Rico. * * * Denny's Corporation's balance sheet at June 28, 2006, showed US$500.3 million in total assets and US$758.2 million in total liabilities, resulting in a US$257.9 million stockholders' deficit. DT COMPUTERS: Hearing of Liquidation Petition Slated for Oct. 30 ---------------------------------------------------------------- A petition to liquidate DT computer Ltd will be heard before the High Court of Christchurch on October 30, 2006, at 10:00 a.m. Renaissance Ltd filed the petition with the Court on September 28, 2006. The Solicitor for the Petitioner can be reached at: Paul Anthony Cowey Parry Field, Solicitors Fifteenth Floor, Forsyth Barr House 764 Colombo Street, Christchurch New Zealand Telephone: (03) 379 4383 Facsimile: (03) 366 3336 EUPHORIA LIMITED: Creditors Must Prove Debts by October 31 ---------------------------------------------------------- On September 29, 2006, shareholders of Euphoria Ltd passed a resolution appointing Andrew Marchel Oorschort as liquidator. Subsequently, Mr. Oorschort required the company's creditors to prove their debts by October 31, 2006, or be excluded from sharing in any distribution the company will make. The Liquidator can be reached at: Andrew Marchel Oorschort Ashton Wheelans & Hegan, Chartered Accountants P.O. Box 13-042, Christchurch New Zealand Telephone: (03) 366 7154 FELTEX CARPETS: Godfrey Hirst Agrees to Retain Feltex CBA --------------------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on October 12, 2006, the National Distribution Union, and Engineering, Printing and Manufacturing Union had talks with Godfrey Hirst over the fate of the remaining Feltex staff. The TCR-AP said the remaining workers are under threat of reduced terms and conditions under a new collective agreement with Godfrey Hirst, but the unions were determined to get a decent deal. A follow-up report from the New Zealand Press Association relates that the unions have reached agreement in principle with Godfrey Hirst to retain Feltex workers' pay and allowances for North Island mills. NZPA cites NDU secretary Laila Harre as saying "we have achieved our objective of maintaining the industry standards that have been won by generations of Feltex workers." The discussions with the company were constructive and that the parties have agreed on the principles that would underpin the new collective employment agreements. Ms. Harre says the most important principle will secure the incomes of workers in these mills with no reductions in pay and allowances and recognition of service with Feltex. However, the New Zealand Herald cites Ms. Harre as noting that a lot of work still needed to be done on detail, and "the devil is in the detail." As noted in the TCR-AP, Feltex's collective agreement is a benchmark for the industry due to its size and stature. "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," Ms. Harre said. NZPA notes that the agreement would be put to the 500 NDU and 45 EPMU union members at the remaining Feltex plants in Lower Hutt, Foxton, Feilding and Dannevirke. According to stuff.co.nz, Godfrey Hirst announced that Christchurch and Kakariki Feltex factories would close with a total loss of 189 jobs as part of the restructuring. "We will continue to raise the issues of redundancies for the 44 redundant Kakariki workers and soon-to-be redundant 134 Riccarton plant workers. There is a moral, if not legal responsibility to these workers," Ms. Harre says. Godfrey Hirst is keeping Feltex plants at Lower Hutt, Foxton, Feilding and Dannevirke operating. Employees at the Auckland and Wellington sales offices will keep their jobs, NZPA notes. 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. GAMESTOP CORP: 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 GameStop Corporation. 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 ---------- ------- ------- ------ ---------- US$300 million Sr. Floating Rate Notes Ba3 B1 LGD4 60% US$650 million 12% Sr. Notes Ba3 B1 LGD4 60% 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 Grapevine, Texas, GameStop Corporation is a video game and PC entertainment software specialty retailer. After the merger with Electronics Boutique it will operate approximately 3,979 stores in New Zealand, the U.S., Puerto Rico, Ireland, Australia, Canada, Denmark, Germany, Guam, Italy, Norway, and Sweden. MT. VIEW: Court Sets Date to Hear Liquidation Petition ------------------------------------------------------ The High Court of Christchurch will hear a liquidation petition filed against Mt. View Holdings Ltd on October 30, 2006, at 10:00 a.m. Roofline Products Ltd filed the petition with the Court on September 6, 2006. The Solicitor for the Petitioner can be reached at: Alexander Donald McBeath Level Five, Brannigans Building 186 Gloucester Street (P.O. Box 185) Christchurch, New Zealand Facsimile: (03) 366 8405 MANUKAU YOUTH: Names Brown and Rodewald as Liquidators ------------------------------------------------------ On October 5, 2006, Kenneth Peter Brown and Thomas Lee Rodewald were appointed joint and several liquidators of Manukau Youth Resource Service Inc. The Joint Liquidators can be reached at: K.P. Brown c/o Rodewald Hart Brown Limited 127 Durham Street (P.O. Box 13-380) Tauranga, New Zealand Telephone: (07) 571 6280 Web site: www.rhb.co.nz PACIFIC COMMUNICATIONS: Appoints Merlo as Liquidator ---------------------------------------------------- The liquidation of Pacific Communications Ltd commenced with the appointment of Robert Laurie Merlo as the company's official liquidator on October 6, 2006. Accordingly, Mr. Merlo required the creditors of the company to prove their debts by November 6, 2006. Failure to prove their debt will exclude creditors from sharing in any distribution the company will make. The Troubled Company Reporter - Asia Pacific reported on October 9, 2006, that the company was facing a liquidation petition filed by the Commissioner of Inland Revenue on July 25, 2006. The Liquidator can be reached at: R. L. Merlo Merlo Burgess & Co. Limited, P.O. Box 51-486, Pakuranga Auckland, New Zealand Telephone: (09) 520 7101 Facsimile: (09) 529 1360 Email: merloburgess&co@xtra.co.nz POUND AT NITE: Liquidation Petition Hearing Set on Nov. 6 --------------------------------------------------------- A petition to liquidate Pound At Nite Ltd -- trading as Pound Nightclub -- will be heard before the High Court of Wellington on November 6, 2006, at 10:00 a.m. The Mill Liquorsave Ltd filed the petition with the Court on September 14, 2006. The Solicitor for the Petitioner can be reached at: Dianne Lester Credit Consultants Debt Services NZ Limited Level Three, 3-9 Church Street P.O. Box 213 or D.X. S.X. 10 069, Wellington New Zealand Telephone: (04) 470 5972 WHITEHART DEVELOPMENTS: Liquidation Hearing Set on October 30 ------------------------------------------------------------- On October 30, 2006, the High Court of Palmerston North will hear a liquidation petition filed against Whitehart Developments Ltd. Plumb-Tech Ltd filed the petition on September 14, 2006. The solicitor for the Petitioner can be reached at: Andru Nicolae Isac Offices of Fitzherbert Rowe, Barristers Levels 7-8, State Insurance Bldg 61-75 Rangitikei Street Palmerston North, New Zealand WORLD COMMERCE: Court Sets Date to Hear ABC's Liquidation Bid ------------------------------------------------------------- On September 21, 2006, Ace Broadcasting Company Ltd filed a liquidation petition against World Commerce NZ Ltd before the High Court of Auckland. The petition will be heard on December 14, 2006, at 10:00 a.m. The Solicitor for the Petitioner can be reached at: Andrew Todd Franicevic Burton & Co, Solicitors Level Three, 16 Viaduct Harbour Avenue Auckland, New Zealand P.O. Box 8889, Symonds Street Auckland, New Zealand YARRAMAN WINERY: Kabani & Company Raises Going Concern Doubt ------------------------------------------------------------ Kabani & Company, Inc., in Los Angeles, Calif., raised substantial doubt about Yarraman Winery, Inc.'s ability to continue as a going concern after auditing the Company's consolidated financial statements for the year ended June 30, 2006. The auditor pointed to the Company's significant operating losses and insufficient capital. For the year ended June 30, 2006, Yarraman Winery reported a US$1,216,766 comprehensive net loss on US$1,830,151 of net sales compared with a US$262,923 net loss on US$2,293,354 of net sales for the same period in fiscal 2005. At June 30, 2006, the Company's balance sheet showed US$9,909,698 in total assets, US$7,364,142 in total liabilities, and US$2,545,556 in total stockholders' equity. A full-text copy of the Company's Annual Report is available for free at: http://ResearchArchives.com/t/s?136c Yarraman Winery, Inc., formerly known as Dazzling Investments, Inc., through Yarraman Estate Pty Ltd., its wholly owned subsidiary in Australia, operates vineyards, and produces and distributes wine in New Zealand, Australia, U.S., Canada, Hong Kong, and throughout Europe. ===================== P H I L I P P I N E S ===================== ABS-CBN BROADCASTING: Negotiating Possible PHP4.5 Bln Loan ---------------------------------------------------------- In a filing with the Philippine Stock Exchange, ABS-CBN Broadcasting Corp. confirms reports that it is currently negotiating with various creditor banks for possible refinancing of its PHP4.5 billion outstanding debt. The terms of the refinancing are still being finalized. Nonetheless, the company is negotiating for a longer debt repayment period as well as lower interest. If the refinancing pushes through, ABS-CBN estimates that PHP1.0 billion in cash would be freed up for various capital expenditures including investments in digital television broadcasting in suburban areas. The company however, notes that the amount of investments in DTV is still under review as the business plan is being finalized. About ABS-CBN Broadcasting ABS-CBN Broadcasting or Alto Broadcasting System-Chronicle Broadcasting Network -- http://www.abscbn-ir.com/-- is a leading Philippine radio and television broadcasting network and multimedia company. It was the first television station founded in the Philippines in 1953. The network's main broadcast facilities are located at the ABS-CBN Broadcast Center, Mother Ignacia St., Diliman, Quezon City, Philippines. ABS-CBN's senior secured debt was given a Ba3 rating by Moody's Investor Service. MAIDENFORM BRANDS: Moody's Assigns B1 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 B1 Corporate Family Rating for Maidenform Brands, 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 ---------- ------- ------- ------ ---------- Senior secured revolver Ba3 Ba2 LGD2 29% Senior secured term loan Ba3 Ba2 LGD2 29% 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%). Maidenform Brands, Inc. -- http://www.maidenform.com/-- is a global intimate apparel company with a portfolio of established and well-known brands, top-selling products and an iconic heritage. Maidenform designs, sources and markets an extensive range of intimate apparel products, including bras, panties and shapewear. During the company's 83-year history, Maidenform has built strong equity for its brands and established a solid growth platform through a combination of innovative, first-to-market designs and creative advertising campaigns focused on increasing brand awareness with generations of women. Maidenform sells its products under some of the most recognized brands in the intimate apparel industry, including Maidenform(R), Flexees(R), Lilyette(R), Self Expressions(R), Sweet Nothings(R), Bodymates(TM), Rendezvous(R) and Subtract(R). Maidenform products are currently distributed in 48 foreign countries and territories, including the Philippines. RIZAL COMMERCIAL BANKING: Moody's Gives Hybrid Issue a B3 Rating ---------------------------------------------------------------- On October 13, 2006, Moody's Investors Service has assigned a B3 rating to Rizal Commercial Bank Corporation's (RCBC, E+/B1/NP) proposed issuance of USD-denominated perpetual securities, callable with a step-up feature in 2016. The rating outlook is negative, in line with the outlook on the Philippines' sovereign ratings. The rating reflects both the structure of the issuance and RCBC's moderate financial fundamentals. Under the terms of the issuance, the issuer can call the securities after 10 years. "The interest payments on RCBC's capital notes are non- cumulative, if deferred, which is typical of many Tier 1 capital-qualifying hybrid security issues," notes May Yan, Moody's Vice President/Senior Credit Officer. "If implemented, such provisions, while not legally constituting a default event, could result in payment terms appreciably different from those of senior securities," Ms. Yan adds. "This distinction and the ranking of the securities in liquidation -- after subordinated debt, but before common shares -- are reflected in the rating differential between RCBC's constrained foreign currency long-term deposits and this particular issuance." The instrument will have sufficient equity-like features to allow it to receive Basket "B" treatment (25% equity and 75% debt) for financial leverage purposes (please refer to Moody's Rating Methodology "Refinements to Moody's Tool Kit: Evolutionary, not Revolutionary," February 2005). The Basket B allocation is based on these rankings for the three dimensions of equity: 1. No Maturity: Weak -- The instrument is weak from the point of view of its ability to replicate equity. Although the securities are perpetual, they are callable in cash after 10 years with redemption requiring regulatory approval unless RCBC's capital ratio is -- post redemption -- above the minimum. Moody's classification reflects the rating agency's view that the Philippine regulator's ability to prohibit a cash call may not be as effective as in other jurisdictions; 2. No Ongoing Payments: Moderate -- the instrument is moderate with regard to its ability to replicate equity. RCBC may choose, at its discretion, to skip a coupon if it has not declared or paid a dividend on its common shares during the preceding financial year, and does not propose to pay a dividend in the current financial year; and 3. Loss Absorption: Moderate -- the instrument is moderate with regard to its ability to replicate equity, given its ranking as the most junior instrument in the capital structure, ahead only of equity and junior preference share. Moody's notes the B3 rating is subject to the receipt of final documentation, the terms and conditions of which have not changed in any material way from the draft documents reviewed. RCBC is the Philippines' eighth-largest bank in terms of assets. Incorporated in 1960 and headquartered in Manila, the bank reported consolidated assets of PHP185 billion (US$3.5 billion) as at December 31 2005. WENDY'S INT'L: Files Declaratory Judgment Against Noteholders ------------------------------------------------------------- Wendy's International, Inc., had previously disclosed that a lawsuit had been filed in New York by a minority of noteholders seeking to enjoin the spin-off of Tim Hortons Inc. (NYSE:THI)(TSX:THI). After a hearing on September 28, 2006, the United States District Court in New York City denied in all respects the plaintiff noteholders' motion for a temporary restraining order and a preliminary injunction. On October 10, 2006, the company was informed that the plaintiffs had voluntarily dismissed their lawsuit and that some of the same noteholders that had filed the lawsuit had issued a purported notice of default asserting that the spin-off of Tim Hortons Inc. on September 29, 2006, violated the terms of one of the indentures governing Wendy's public debt. On October 11, 2006, the company filed a declaratory judgment in the U.S. District Court in New York City seeking a ruling from the Court that no violation of the indenture has occurred. Wendy's continues to believe that the claims asserted by the noteholders are without merit and plans to vigorously defend its position. About Wendy's Wendy's International Inc. (NYSE:WEN) -- http://www.wendys-invest.com/-- is a restaurant operating and franchising company with more than 9,900 total restaurants and quality brands, including Wendy's Old Fashioned Hamburgers(R) and Baja Fresh Mexican Grill. The company also has investments in three additional quality brands -- Tim Hortons, Cafe Express, and Pasta Pomodoro(R). There are Wendy's restaurants in Asia, including the Philippines. * * * On July 12, 2006, Moody's Investors Service assigned Wendy's International Inc.'s long-term corporate family rating and senior unsecured debt rating at Ba2. On July 3, 2006, the Troubled Company Reporter reported that Standard & Poor's Ratings Services lowered its corporate credit and senior unsecured debt ratings on Wendy's International Inc. to 'BB+' from 'BBB-'. At the same time, the short-term rating was lowered to 'B-1' from 'A-3'. The outlook was negative. * IMF Urges Philippines to Stay Course on Reforms ------------------------------------------------- On October 12, 2006, the International Monetary Fund urged the Philippines to stay its course on economic reforms and lower its still-high public debt to bolster confidence and insure against volatility. In its mid-year assessment of the Philippine economy, the IMF said under current policies, economic growth is likely to increase to 5.5% in 2007 from an expected 5.0% in 2006. Growth could be higher, the IMF added, if public debt was lowered further, which would boost investor confidence and investment. "(IMF) directors encouraged the authorities to sustain fiscal consolidation and other reform efforts to ensure debt sustainability, maintain the confidence of markets, and spur investment and the rate of growth," the fund added. * * * "Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured rating to the Republic of Philippines' proposed new bond issue that will mature in 2024, as well as the new debt under the series of 7.75% Global Bonds due in 2031. The government is offering these bonds in exchange for some of its existing debt. At the same time, Standard & Poor's also affirmed its 'BB-' ratings on the bonds that are eligible for exchange." * September Net Portfolio Inflows Increased to US$373.7 Million ---------------------------------------------------------------- Net Foreign portfolio investments more than doubled to US$373.3 million last month from US$131.5 million in August as the Philippines' improving economic fundamentals bolstered investor confidence, the central bank said in a written statement. For the first nine months of the year, net portfolio inflows were US$1.396 billion, down from US$2.03 billion in the corresponding period of last year, the central bank added. Central bank governor Amando Tetangco said the higher net inflows last month reflected investor confidence after the announcements that the economy grew by 5.5% year-on-year in the second quarter and that the government's budget surplus was PHP14.3 billion in August. Mr. Tetangco said investors had also been encouraged to park their funds in equities, government securities, and money market instruments in the country because the peso was strengthening, oil prices were easing, and the central bank's policy interest rates were steady. * * * "Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured rating to the Republic of Philippines' proposed new bond issue that will mature in 2024, as well as the new debt under the series of 7.75% Global Bonds due in 2031. The government is offering these bonds in exchange for some of its existing debt. At the same time, Standard & Poor's also affirmed its 'BB-' ratings on the bonds that are eligible for exchange." ================= S I N G A P O R E ================= ALTIMATE ENGINEERING: Faces Wind-Up Proceedings ----------------------------------------------- A liquidation petition filed against Altimate Engineering Pte Ltd will be heard before the High Court of Singapore on Oct. 20, 2006, at 10:00 a.m. Yong Chan Metal Engineering Pte Ltd filed the petition with the Court on September 22, 2006. The Solicitors for the Petitioner can be reached at: Mallal & Namazie No. 50 Robinson Road 12-00 MNB Bldg Singapore ASIA CRANE: Pays Final Dividend on October 11 --------------------------------------------- Asia Crane (S.E.A.) Pte Ltd, which is in liquidation, paid its first and final dividend in full to all admitted claims on October 11, 2006. CHEERS HOLDINGS: Last Day for Filing of Claims Fixed on Nov. 6 -------------------------------------------------------------- Tee Ling Zhi, as liquidator for Cheers Holdings Pte Ltd, fixed November 6, 2006, as the last day for the creditors of the company to submit their proofs of claim. Failure to prove debt will exclude a creditor from sharing in any distribution the company will make. The Liquidator can be reached at: Tee Ling Zhi 680 Upper Thompson Road NTUC Fairprice Cooperative Singapore CKE RESTAURANTS: Matthew Goldfarb Remains as Member of the Board ---------------------------------------------------------------- CKE Restaurants, Inc., disclosed that, following recent personnel changes at Pirate Capital, LLC, its Board of Directors has declined to accept Matthew Goldfarb's tendered resignation from the Board. Mr. Goldfarb entered into an agreement relative to his appointment to the company's Board, that required him to tender his resignation from the Board if he is no longer affiliated with Pirate Capital LLC, a significant stockholder in the company. On Sept. 28, 2006, Mr. Goldfarb ceased serving in his position as a director and senior investment analyst at Pirate Capital. In declining to accept Mr. Goldfarb's resignation, Andrew F. Puzder, president and chief executive officer, commented that "Matt has provided valuable input since his appointment, and the Board looks forward to his continued contribution." Mr. Goldfarb's term expires at the 2007 annual stockholders' meeting. Based in Carpinteria, Calif., CKE Restaurants, Inc. (NYSE: CKR) -- http://www.ckr.com/-- through its subsidiaries, franchisees and licensees, operates some of the most popular U.S. regional brands in quick-service and fast-casual dining, including the Carl's Jr.(R), Hardee's(R), La Salsa Fresh Mexican Grill(R) and Green Burrito(R) restaurant brands. The company operates 3,131 franchised, licensed or company-operated restaurants in 43 states and in 13 countries -- including Singapore. * * * Standard & Poor's Ratings Services raised its ratings on CKE Restaurants Inc. in July 2005. The corporate credit and senior secured debt ratings were raised to 'B+' from 'B', and the subordinated debt rating was elevated to 'B-' from 'CCC+'. S&P said the outlook is stable. CONVENIENCE SHOPPER: Prepares for Distribution of Assets -------------------------------------------------------- Convenience Shopper, which is in members' voluntary liquidation, requires its creditors to prove their claims by November 6, 2006, for them to participate in any distribution the company will make. The Liquidator can be reached at: Tee Ling Zhi 680 Upper Thompson Road NTUC Fairprice Cooperative Singapore GULIANO PTE: Creditors Proofs of Claim Due on November 6 -------------------------------------------------------- Creditors of Guliano Pte Ltd are required to prove their debts to liquidator Herman J M Van De Velde by November 6, 2006. Failure to comply with the requirement will exclude a creditor from sharing in any distribution the company will make. The Liquidator can be reached at: Herman J M Van De Velde 6 Shenton Way, 32-00 DBS Bldg Tower Two Singapore JIL COMPONENTS: Final Creditors' Meeting Held on October 13 ----------------------------------------------------------- Creditors of JIL Components Singapore Ltd convened for their final meeting on October 13, 2006. The meeting was called for them to make amendments or if none, approve the liquidators report regarding the company's wind-up on May 11, 2006, and the proposed final distribution of assets to be made on October 25, 2006. In addition, the creditors are also asked to approve or dissent the Liquidator's intent to apply for release on October 27, 2006, and seek Court's approval to destroy the books of the company after its dissolution. On September 22, 2005, the Troubled Company Reporter - Asia Pacific reported that Westech Electronics Ltd, a creditor of JIL Components, filed a wind-up petition against the company with the High Court of Singapore. The petition was heard before the Court on October 21, 2005, and the Court subsequently favored the petition by ordering the company to wind up its operations. NYQUIST ASIA: Creditors Must Prove Debts by November 6 ------------------------------------------------------ Ng Geok Mui, as liquidator for Nyquist Asia Pte Ltd, require the creditors of the company to prove their debts by November 6, 2006. Failure to present proofs of debt will exclude a creditor from sharing in any distribution the company will make. The Liquidator can be reached at: Ng Geok Mui BDO Raffles 5 Shenton Way 07-01 UIC Bldg Singapore REFCO INC: Chap. 7 Trustee Wants Rogers Funds Claims Pact Okayed ---------------------------------------------------------------- Rogers Raw Materials Fund, L.P., and Rogers International Raw Materials Fund, L.P., filed on July 11, 2006, Claim Nos. 251 and 252 against Refco, LLC. The Rogers Claims asserted customer net equity under Section 766(h) of the Bankruptcy Code, commodities fraud and aiding and abetting under 7 U.S.C. Section 6b, common law fraud, contribution, negligence, conversion, breach of fiduciary duty, and breach of contract. On July 22, 2006, Beeland Management Company, L.L.C., Walter Thomas Price and Allen Goodman filed Claim Nos. 253 to 255 against Refco LLC for contribution or indemnification in respect of certain claims asserted against them related to the Rogers Funds' losses at Refco, Inc. The Price Futures Group, an affiliate of the Rogers Funds Parties, also filed Claim Nos. 192 and 193 against the Chapter 7 Debtor on June 16, 2006. Albert Togut, as Chapter 7 trustee for the Refco LLC estate, disputes the Claims. The parties engaged in good faith, arm's-length discussions to resolve the Claims. Mr. Togut asks the U.S. Bankruptcy Court for the Southern District of New York to approve their settlement. Under the Settlement, the parties agreed to: (i) the withdrawal of all of the Rogers Funds Parties' and the Price Futures Groups' claims against Refco LLC, other than claims provided for in a settlement agreement between Refco Capital Markets' estate, and certain of its securities customers and general unsecured creditors, which has been approved by the Court; and (ii) the allowance of a US$30,000,000 general unsecured claim against Refco LLC for the Rogers Funds. The Chapter 7 Trustee, the Rogers Funds Parties, and RCM Trustee Marc Kirschner also agreed to the mutual release of any other related claims between or among the parties, including the RCM Trustee's waiver of its right to seek to reduce the distributions to the Rogers Funds under the RCM Settlement by the amount of the claim allowed against Refco LLC. J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in New York, asserts that the Settlement is critical to the confirmation of a global plan and settlement involving all of the estates. Mr. Milmoe notes that even if the Court's decision were to sustain the Chapter 7 Trustee's objections in full, the Rogers Funds would likely appeal. In that event, the Chapter 7 Trustee would be required to reserve for the full amount of the Rogers Funds' Claims. Mr. Milmoe says that a substantial reserve would adversely affect the global plan and settlement embodied in the Chapter 11 Debtors' Plan of Reorganization and could jeopardize the RCM Settlement. Mr. Milmoe states that the settlement of complex commodities- related claims asserted in amounts exceeding US$375,000,000 in exchange for a single allowed claim of US$30,000,000 -- less than 10% of the claimed amount -- is reasonable on its face and is clearly in the best interests of the estates. Furthermore, Mr. Milmoe maintains that the Settlement will avoid substantial risks, costs and uncertainties that future litigation and appeals would otherwise entail. About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. Refco LLC, an affiliate, filed for chapter 7 protection on Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a regulated commodity futures company that has businesses in the United States, London, Asia and Canada. Refco, LLC, filed for bankruptcy protection in order to consummate the sale of substantially all of its assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc. Albert Togut, the chapter 7 trustee, is represented by Togut, Segal & Segal LLP. On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner is represented by Bingham McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda. Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through 06-11262). (Refco Bankruptcy News, Issue No. 44; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) REFCO INC: Wants to Set Solicitation & Tabulation Procedures ------------------------------------------------------------ Refco, Inc., and its debtor-affiliates remind the Hon. Robert D. Drain of the U.S. Bankruptcy Court for the Southern District of New York that they filed a Plan of Reorganization and Disclosure Statement together with Marc Kirschner, the Chapter 11 Trustee for Refco Capital Markets, Ltd., on September 14, 2006. After further negotiations with their creditor constituencies, the Debtors, together with the RCM Trustee and the official committees of unsecured creditors appointed in their cases, delivered an Amended Plan of Reorganization and Disclosure Statement on October 6, 2006. To facilitate consideration of their Plan, the Debtors ask the Bankruptcy Court to establish December 15, 2006, as the commencement date of the Plan confirmation hearing, as may be continued from time to time in open court without further notice to parties-in-interest. The Debtors also ask Judge Drain to set: (i) December 1, 2006, at 4:00 p.m., as the deadline for filing objections to the Plan Confirmation; (ii) November 20, 2006, at 4:00 p.m., as the deadline to object to claims solely for Plan voting purposes; (iii) November 28, 2006, as 4:00 p.m., as the deadline for filing motions seeking temporary allowance of claims for voting purposes, pursuant to Rule 3018(a) of the Federal Rules of Bankruptcy Procedure; and (iv) December 8, 2006, at 5:00 p.m., as the deadline by which Ballots for accepting or rejecting the Plan must be received by Financial Balloting or Omni Management Group, LLC, if they are to be counted. The Debtors propose that any party who timely files a Rule 3018(a) Motion will be provided a ballot and permitted to cast a provisional vote to accept the Plan. If, and to the extent that, the Debtors and that party are unable to resolve the issues raised by the Rule 3018(a) Motion before the Plan voting deadline, the Court will determine at the Confirmation Hearing whether the provisional ballot should be counted as a vote on the Plan and, if so, the amount in which that party will be entitled to vote. Treatment of Claims for Voting Purposes The Debtors classify "non-voting claims" as claims that are listed in their schedules of assets and liabilities as disputed, contingent or unliquidated, and which are not the subject of a timely filed proof of claim, or a claim deemed timely filed with the Court. The Debtors ask the Court that the Non-Voting Claimholders will be denied treatment as creditors to vote on and receive distributions and notices under the Plan. The Debtors also want that any disputed claim will be determined ineligible to vote on the Plan. The Debtors insist that those claims will not be counted in determining whether the Section 1126(c) requirements have been met: (i) unless any claim has been temporarily allowed for voting purposes; or (ii) except to the extent that the objection to that claim has been resolved in the creditor's favor. For voting purposes, the Debtors propose that the claim amount used to calculate acceptance or rejection of the Plan under Section 1126 will be (x) the actual claim amount scheduled by the Debtors, or (y) the liquidated amount of a timely filed claim. In addition, the Debtors seek that the ballots cast by certain claimants holding non-substantive claims will not be counted toward satisfying the aggregate dollar amount provision of Section 1126(c) numerosity requirement, unless temporarily allowed by the Court in a specific amount for voting purposes. Voting Record Date To set a record date for determining the "holders of stocks, bonds, debentures, notes and other securities" entitled to receive ballots and other materials specified in Rule 3017(d), the Debtors' securities registrars need advance notice to enable responsible parties to assemble ownership lists of publicly traded debt and equity securities. J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in New York, relates that since Bankruptcy Rules 3017(d) and 3018(a) purport to set a record date based on when the Court clerk records an official order, those rules in essence require ownership lists to be prepared retroactively, even though it cannot be done accurately. Accordingly, the Debtors ask Judge Drain to exercise his power under Section 105(a) to set October 16, 2006, as the record date for determining: -- creditors and equity holders entitled to receive solicitation packages and related materials, if any; and -- creditors entitled to vote to accept or reject the Plan and elect certain treatment, notwithstanding anything to the contrary in the Bankruptcy Rules. Solicitation Package and Ballots Pursuant to Bankruptcy Rule 3017(d), the Debtors propose to deliver by first class mail, within five business days after the Disclosure Statement approval: (a) a Confirmation Hearing notice to all of their known creditors, the Senior Subordinated Note Indenture Trustee and equity security holders as of the Voting Record Date, and all other entities required to be served under Bankruptcy Rules 2002 and 3017; and (b) a copy of a notice of non-voting status with respect to unimpaired classes to: * claimholders in Contributing Debtors Classes 1, 2 and 3 under the Plan; * claimholders in FXA Classes 1, 2 and 3; * claimholders in RCM Classes 1 and 2; and (c) a copy of a notice of non-voting status with respect to impaired classes to: * holders of claims and interests in Contributing Debtors Classes 7 and 8; * claimholders in FXA Class 7; and * claimholders in RCM Class 6. The Debtors seek that the Non-Voting Packages will be deemed to constitute an adequate alternative disclosure statement to impaired non-voting classes under Section 1125(c) and a summary plan under Bankruptcy Rule 3017(d). In addition, the Debtors propose to mail to claimholders in Contributing Debtors Classes 4, 5 and 6; claimholders in FXA Classes 4, 5 and 6; and claimholders in RCM Classes 3, 4 and 5 an information and solicitation package, containing: (1) a copy or conformed printed version of the Disclosure Statement and a copy of the Disclosure Statement order; (2) one or more ballots appropriate for a specific creditor; and (3) the Confirmation Hearing Notice. To avoid duplication and to reduce expenses, the Debtors propose that: (i) creditors holding unimpaired and impaired claims will receive only the Solicitation Package appropriate for the applicable impaired class; and (ii) creditors who have filed duplicate claims in any given class will receive only one Solicitation Package and one Ballot for voting their claims and will be entitled to vote their claim only once with respect to that class. The appropriate Ballot forms, as applicable, will be distributed to claimholders who are entitled to vote to accept or reject the Plan: Ballot D-1 Beneficial Owner Ballot for Senior Subordinated Note Claims Ballot D-2 Ballot for Class 5 Contributing Debtors General Unsecured Claims Ballot D-3 Ballot for Class 6 RCM Intercompany Claims Ballot D-4 Ballot for Class 5(a) FXA General Unsecured Claims Ballot D-5 Ballot for Class 6 FXA Convenience Claims Ballot D-6 Ballot for Class 3 RCM FX/Unsecured Claims Ballot D-7 Ballot for Class 4 RCM Securities Customer Claims Ballot D-8 Ballot for Class 5 RCM Leuthold Metals Claims Noteholder Election Pursuant to the Plan, the Debtors propose that an election declining to receive BAWAG Proceeds by holders of Senior Subordinated Note Claims who voted to accept the Plan may be disregarded. The Debtors also want that the Senior Subordinated Note Claimholders who fail to vote their claims will be deemed to accept the receipt of Senior Subordinated Note Claims BAWAG Proceeds as a component of their pro rata share of a Senior Subordinated Note Holder Distribution. To facilitate the election by Noteholders not to receive BAWAG Proceeds, the Debtors will mail a BAWAG Opt-Out election form to each Senior Subordinated Note Claimholder determined as of the Voting Record Date. Nominees holding the Senior Subordinated Notes will be required to forward information with respect to the Noteholder Election to beneficial owners of Senior Subordinated Notes and to effect any Noteholder Election on their behalf through a Depository Trust Company's Automated Tender Offer Program system. The Nominees may use the BAWAG Opt-Out Election Form provided or other means as they customarily may use to obtain instructions with respect to an election on account of the beneficial owner's claim. To effect the Noteholder Election, each Senior Subordinated Note Claimholder must: (i) provide instructions to its Nominee sufficiently far in advance of the Voting Deadline by electronically tendering the holder's Senior Subordinated Notes to The Depository Trust Company; and (ii) vote to reject the Plan, and ensure that the vote is received by Financial Balloting Group LLC, the Debtors' proposed special voting agent, by the Voting Deadline. The Debtors further seek the Court's authority to adopt, as necessary, any additional procedures consistent with the provisions of the Noteholder Elections. Ballot Election to Decline Certain Proceeds In accordance with the Plan, in the event that BAWAG is sold for an amount in excess of EUR1,800,000,000, the Debtors propose that: (a) holders of Contributing Debtors General Unsecured Claims who fail to vote their claims will be deemed to accept the distribution, if any, of the Contributing Debtors BAWAG Proceeds; (b) holders of RCM FX/Unsecured Claims and RCM Securities Customer Claims that fail to vote their claims will be deemed to accept RCM BAWAG Proceeds as a component of their Distribution from RCM; (c) each holder of a Contributing Debtors General Unsecured Claim, FXA General Unsecured Claim, RCM FX/Unsecured Claim or RCM Securities Customer Claim will be deemed to have agreed to contribute its Non-Estate Refco Claims to the Private Actions Trust contemplated by the Global Term Sheet. The Debtors further seek that holders of the Contributing Debtors General Unsecured Claim, FXA General Unsecured Claims, RCM FX/Unsecured Claims and RCM Securities Customer Claims that fail to vote their claims will be excluded from participation in the Private Actions Trust. Ballot Election for Treatment as FXA Convenience Claim According to Mr. Milmoe, each holder of a Class 5 FXA General Unsecured Claim in an amount greater than US$10,000 may elect to have its claim reduced to US$10,000 and treated as a Class 6 FXA Convenience Claim under the Plan. In this light, the Debtors propose that Class 5 FXA General Unsecured Claimholders electing treatment as Class 6 FXA Convenience Claims will be deemed to have voted their Class 6 Claims to accept the Plan. Under the Plan, the aggregate amount of distributions to Class 6 FXA Convenience Claims is capped at US$5,000,000. To the extent that the elections of Class 5 FXA General Unsecured Claims to receive treatment as Class 6 FXA Convenience Claims result in the aggregate allowed amount of claims in Class 6 exceeding US$5,000,000, the claims permitted to elect that treatment will be determined by reference to the amount of the claim, with the claim in the lowest amount being selected first and the next largest claim being selected thereafter until the US$5,000,000 cap is reached. The Debtors propose that, to the extent any Class 5 FXA General Unsecured Claimholder that has elected treatment as a Class 6 FXA Convenience Claim, but has to be denied that treatment due to oversubscription, the vote initially cast by that holder will be counted in the tabulation of votes in Class 5. Moreover, the Debtors propose that unless the holders of Class 3 RCM FX/Unsecured Claims and Class 4 RCM Securities Customer Claims make the appropriate Ballot election, those holders will be deemed to have agreed (i) to assign their RCM Related Debtor Claims to the Litigation Trust, and (ii) to release their RCM Related Claims against any non-Debtor Refco entity. The Debtors also seek that those holders that fail to vote their claims will be deemed not to have assigned their RCM Related Debtor Claims to the Litigation Trust or released their RCM Related Claims against non-debtor entities. Ballot Method To facilitate the mailing of Solicitation and Non-Voting Packages, the Debtors ask the Court to direct Wells Fargo Bank, National Association, the indenture trustee for the Senior Subordinated Notes, and The Bank of New York, the transfer agent for the Debtors' equity securities, to provide Financial Balloting, by October 19, 2006, with the names, addresses, and account numbers of the recordholders as of the Record Date. In addition, the Debtors seek that the Nominees through which beneficial owners hold Senior Subordinated Notes or equity securities promptly distribute Solicitation Packages or Non- Voting Packages, as appropriate, to certain holders, and cooperate with Financial Balloting to accomplish the distribution, in any case no later than five business days after receipt by the Nominees of the Packages. The Debtors will provide Nominees with sufficient quantities of those Packages to permit service of those documents on their beneficial owners. The Debtors want the Nominees to obtain votes of beneficial owners of Senior Subordinated Notes according to these procedures: (a) A Nominee may forward the Solicitation Package to each beneficial owner of the Senior Subordinated Notes for whom it acts as a Nominee for voting and include a postage-prepaid, return envelope provided by and addressed to the Nominee so that the beneficial owner may return the completed beneficial owner Ballot directly to its Nominee; or (ii) A Nominee may prevalidate the Ballot by signing it and forward the Solicitation Package along with the prevalidated Ballot to the beneficial owner of the Senior Subordinated Notes for voting, so that the beneficial owner may return the completed Ballot directly to Financial Balloting. Voting & Tabulation Procedures To avoid the potential for inconsistent results, the Debtors ask Judge Drain to establish these guidelines for tabulating votes: (1) Any Ballot or Master Ballot, as appropriate, that is properly executed and timely received, and that is cast as either an acceptance or rejection of the Plan, will be counted and will be deemed to be cast as an acceptance or rejection of the Plan. (2) Each record holder or beneficial owner of the Senior Subordinated Notes will be deemed to have voted the full principal amount of its claim, notwithstanding anything to the contrary on the Ballot. (3) Ballots or Master Ballots that are, inter alia, received after the Voting Deadline will not be counted any purpose in determining whether the Plan has been or rejected. (4) Ballots or Master Ballots sent by facsimile transmission, are illegible, or that contain insufficient information to permit the identification of the claimants will not be counted. (5) Ballots or Master Ballots that do not explicitly indicate the vote, are cast by a non-voting entity, do not contain an original signature, split the vote, or do not match an existing database record will not be counted. (6) Ballots or Master Ballots other than the official form sent will not be counted. The Debtors propose these procedures for tabulating votes cast by holders of Senior Subordinated Notes: (a) All Nominees through which beneficial owners hold Senior Subordinated Notes are required to receive and summarize on a Master Ballot all beneficial owner Ballots cast by the beneficial owners they serve and then return the Master Ballot to Financial Balloting on or before the Voting Deadline. (b) Nominees are required to retain Court inspection for one year following the Voting Deadline (x) the Ballots cast by their beneficial owners and (y) any BAWAG Opt-Out Election Forms received. (c) Votes cast by the beneficial owners through a Nominee and transmitted by means of a Master Ballot will be applied against the positions held by that Nominee. (d) Votes submitted by a Nominee on a Master Ballot will not be counted in excess of the position maintained by the Nominee on the Record Date. (e) To the extent that conflicting, double or over-votes are submitted on Master Ballots and prevalidated Ballots, Financial Balloting will attempt to resolve those votes before the vote certification to ensure that the votes of beneficial owners of Senior Subordinated Notes are accurately tabulated. Treatment of Contributing Debtors Class 7 Holders The Debtors believe that the Bankruptcy Code does not require the solicitation of votes from the holders of Contributing Debtors Class 7 Subordinated Claims and Class 8 Old Equity Interests, so long as the holders of those claims and interests are provided an opportunity to object to the Plan confirmation. Mr. Milmoe states that because holders of Class 7 Subordinated Claims and Class 8 Old Equity Interests are not legally entitled to a distribution under the Plan, and consistent with Section 1126(g), Classes 7 and 8 may be deemed to have rejected the Plan, notwithstanding any distribution proposed for those Classes. Mr. Milmoe states that the agreement of the Debtors, the RCM Trustee, the Secured Lenders, the holders of Senior Subordinated Notes, and other major case constituencies to permit a distribution to the holders of Classes 7 and 8 should not result in a requirement that the Debtors solicit votes on the Plan from those holders. About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. Refco LLC, an affiliate, filed for chapter 7 protection on Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a regulated commodity futures company that has businesses in the United States, London, Asia and Canada. Refco, LLC, filed for bankruptcy protection in order to consummate the sale of substantially all of its assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc. Albert Togut, the chapter 7 trustee, is represented by Togut, Segal & Segal LLP. On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner is represented by Bingham McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda. Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through 06-11262). (Refco Bankruptcy News, Issue No. 44; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945 7000) RICH VISION: Court Sets Date to Hear Wind-Up Petition ----------------------------------------------------- The High Court of Hong Kong will hear a wind-up petition filed against Rich Vision Pte Ltd on October 20, 2006, at 10:00 a.m. Chan Hwee Kiang filed the petition with the Court on Sept. 22, 2006. The Solicitor for the Petitioner can be reached at: H.A. Chung & Chung Partnership 100 Cecil Street, 09-02 The Globe Singapore =============== T H A I L A N D =============== IAP WORLDWIDE: S&P Affirms B Corp. Credit Rating, Alters Outlook ---------------------------------------------------------------- Standard & Poor's Rating Services revised its outlook on Cape Canaveral, Fla.-based IAP Worldwide Services Inc. to negative from stable. At the same time, Standard & Poor's affirmed its ratings on the company, including its 'B' corporate credit rating. The company has total balance sheet debt of over US$500 million. "The outlook revision reflects IAP's weakened credit metrics due to continuing delayed government appropriations and lower-than- expected disaster relief demand," Standard & Poor's credit analyst Dan Picciotto said. The credit measures, which are currently stretched for the rating, are likely to be challenged in light of these factors. Still, a rising backlog and recently signed Defense Appropriations Act suggest that operations could recover in 2007. The company could be downgraded if profitability deteriorates during a business slowdown, if any other initiatives damage the financial profile, or if liquidity markedly deteriorates. The outlook could be revised to stable if new contract wins result in credit metrics improvement in line with prior expectations. Standard & Poor's expects the company to focus on organic growth. Significant acquisitions are not factored in the rating. IAP Worldwide Services, Inc. -- http://www.iapws.com/-- is a premier government contractor providing a broad spectrum of services focused on global mission support for the federal market. The company specializes in three top-tier lines of business: contingency, logistics and procurement support; facility maintenance/base operations; and technical services. With Corporate Operations headquartered in Cape Canaveral, FL, IAP also has corporate offices in Irmo, S.C.; Panama City, FL; and Washington, D.C.; and project sites in over 50 locations worldwide, including Bangkok, Thailand. SUNTECH GROUP: Turns Around with THB7.861-Bil Profit in FY 05-06 ---------------------------------------------------------------- Sun Tech Group Pcl posted a THB7.861-billion net profit on THB2.486 billion in revenues for the fiscal year ended June 30, 2006. The company recorded a THB447.543-million net loss for the year ended June 30, 2005. The company's consolidated balance sheet as of June 30, 2006, showed strained liquidity with total current assets of THB277.738 million available to pay THB338.410 million of current liabilities coming due within the next 12 months. In addition, Sun Tech's balance sheet at the end of June 2006, showed consolidated total assets of THB524.792 million and THB344.857 million of total liabilities. Shareholders' equity in the company amounted to THB179.935 million. A full text copy of the company's financial statement is available for free at: http://bankrupt.com/misc/SUNTECE2-FY-06.xls Sun Tech Group Public Company Ltd's principal activities are the manufacture and process of canned tomatoes and whole kernel corn and rental and sales of movie videocassette tapes and laser discs. On July 31, 2000, the Company filed a petition with the Central Bankruptcy Court for business rehabilitation. On August 28, 2000, the Court ordered the Company to be rehabilitated and appointed Srisongkram Planner Company Limited as the Plan Administrator. Later in 2005, the Plan administrator filed a petition for an amended Plan, which the Court subsequently approved. The Company has completely repaid its debts and has been released from its debts in accordance with the Plan. Currently, the company is listed under the Non-Performing Group Sector of the Stock Exchange of Thailand. THAI DURABLE: Auditor Raises Going Concern Doubt ------------------------------------------------ Jadesada Hungsapruek of Karin Audit Company Ltd, expressed a going concern doubt on Thai Durable Group Pcl's ability to continue as a going concern after auditing the company's financial statement for the first quarter period ended March 31, 2006. Mr. Jadesada said that he "was unable to provide any assurance that the interim financial statements for the three-month period ended March 31, 2006, are presented fairly, in all material respects, in accordance with generally accepted accounting principles." Moreover, the previous auditor of the company also issued doubt on the company's operations. Thai Durable posted a THB160.94-million net loss on THB71.264 million of revenues in the quarter ended March 31, 2006, compared with the THB24.866-million net loss it recorded in the first quarter of 2005. The company's balance sheet at the end of March 2006 showed strained liquidity with THB96.67 million in current assets available to pay THB841.79 million in current liabilities coming due within the next 12 months. Thai Durable's total consolidated assets at the end of March 2006 was THB308.611 million, and its total liabilities amounted to THB843.89 million. Thus, the company posted THB535.282 million in shareholders' deficit. A full text copy of the company's financial statement is available for free at: http://bankrupt.com/misc/TDT-1st The Thai Durable Group Public Company Limited -- http://www.tdt.co.th/-- manufactures woven fabrics and yarns from natural and synthetic fibers. The majority of its production is sold to industrial factories for further processing. The Company is currently under the Non Performing Group Sector of the Thailand's Stock Exchange. The Troubled Company Reporter - Asia Pacific stated on April 12, 2006, that the Company's Board of Directors passed a resolution not to allocate net profit as legal reserve in the amount of 5% of the net profit of the Company and not pay the dividend from its 2005 operating income. Going Concern of the Company The Company had sustained significant accumulated losses and has suffered recurring loss from operations. As at December 31, 2005, Thai Durable has a THB2-billion equity deficit. The Company incurred negative cash flows from operating activities for the year ended December 31, 2005, amounting to THB73.3 million. The Company's current liabilities exceeded its current assets as of December 31, 2005, by THB644.4 million. Moreover, the Company could not repay short-term loans and long-term loans from two local banks, which were due and on Jan. 27, 2006, the Company was sued by a local bank to repay all short term loans and long-term loans totaling THB273.8 million, including principal and accrued interest. In addition, the management is in the process of negotiating for the postponement of loans from another local bank. The ultimate outcome of these matters cannot be determined yet. Presently, the Company is performing a feasibility study to change its current business. The continuing operation of the Company in the future substantially depends on: 1. results of the negotiation with the financial institution creditors relating to the postponement of loans; and 2. the new business plan of the Company and its ability to operate successfully in the future and has adequate cash flows from operations. These matters indicate the existence of a material uncertainty about the Company's ability to continue its operation as a going concern. ********* 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, 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 ***