/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/061023.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 23, 2006, Vol. 9, No. 210 Headlines A U S T R A L I A ABI AUSTRALIA: Appoints Daniel Civil as Liquidator ABI-BSM PTY: Members Resolve to Wind Up Firm BAR RISTRETTO: Members Want Voluntary Wind Up of Operations BARKER HOLDINGS: Wind-Up Process Commenced BEROWRA RSL: Creditors Required to Prove Debts by November 1 BILL GILMOUR: Members' Final Meeting Set on October 26 BRIGHTPOINT INC: Unit Completes Acquisition of Tri Teknologies CHC HELICOPTER: Moody's Assigns Loss-Given-Default Rating COEUR D'ALENE: Starts Construction of US$29MM Tailings Facility CREATIVE SCOPE: Members Decide to Wind Up Firm FU-2 & ASSOCIATES: To Hold Final Meeting on October 26 GATEWAVE PTY: Enters Liquidation Proceedings GLOUCESTER HOLDINGS: Members Opt for Voluntary Wind-Up HILLS COMPLETE: Placed Under Voluntary Liquidation IVNO PTY: Inability to Pay Debts Prompts Wind-Up JANOPE PTY: Members Decide to Close Operations JLG INDUSTRIES: Acquisition Prompts S&P's Negative Watch JOHN A GARRETT: Members' Final Meeting Slated for October 26 KENDLE INTERNATIONAL: Moody's Assigns Loss-Given-Default Ratings MICHAEL O'LEARY: Liquidator to Present Final Wind-Up Account MILLEN GROUP: Creditors' Proofs of Claim Due on November 1 MOOKI MEDIA: Members and Creditors to Meet on October 26 PAUL SEGAERT: To Declare First and Final Dividend on Nov. 1 PAUL SEGAERT (ACT): Will Declare First and Final Dividend PAUL SEGAERT ALUMINUM: To Declare First and Final Dividend PAUL SEGAERT PRODUCTS: Prepares to Declare Dividend on Nov. 1 PENTON MEDIA: Members to Receive Wind-Up Report on Oct. 26 PRANA BIOTECHNOLOGY: Deloitte Touche Raises Going Concern Doubt PRANA BIOTECHNOLOGY: To Hold Annual General Meeting on Nov. 30 RALSON HOLDINGS: Court Issues Wind-Up Order RECYCLED PLASTIC: To Distribute Dividend on November 24 RETRAC ENGINEERING: Final Meeting Scheduled on October 26 SAVERS INC: Moody's Assigns Loss-Given-Default Ratings SIRIUS RETAIL: Liquidator to Present Wind-Up Report SMS FLOOR: Members Decide to Shut Down Business Operations TEAM NEVEREST: Creditors Must Prove Debts by October 31 TWOBERTHA PTY: Members Opt for Voluntary Wind-Up VIERI RESTAURANT: Winds Up Business Operations WEATHERDON STRUK: Members Resolve to Wind Up Operations C H I N A & H O N G K O N G ACW CONSULTING: Liquidator to Present Wind-Up Report AGRICULTURAL BANK: Reform to Cost Around US$100-Billion BENQ CORP: Posts NT$12.8 Billion Sales for September BENQ MOBILE: Union Mulls Suit to Keep Jobs at Insolvent Unit COVANTA ENERGY: Moody's Assigns Loss-Given-Default Ratings DAISYFIELD LTD: Final Meeting Slated for November 17 DARSUN LTD: Court to Hear Wind-Up Petition on November 15 DRAWINGS & DESIGN: Faces Wind-Up Proceedings EASTERN BROADCASTING: Fitch Ups Ratings; Out from Watch Positive ELITE AIR: Wind-Up Petition Hearing Slated for November 1 GLOBAL POWER: Can Wind Down Heat Recovery Business Segment GOLDEN SKY: Members' Final Meeting Set for November 13 H & N Slimming: Court Hears Wind-Up Petition HK GAME TRADING: Liquidators Step Aside IN-WORK INTERNATIONAL: Creditors Must Prove Debts by Nov. 30 KAI NGAI: Creditors' Proofs of Debt Due on October 27 OCEANIA CRUISE: Moody's Assigns B2 Corporate Family Rating PETROLEOS DE VENEZUELA: Working with Enarsa to Audit Ayacucho 6 POINT HARVEST: Members to Convene on November 14 PROTAN PLAZA: Creditors Proofs of Claim Due on November 13 SANMINA-SCI: Inks US$600 Million Term Loan Credit Agreement SANMINA-SCI: Moody's Rates US$600MM Sr. Unsec. Term Loan at Ba2 SUPER DATA: Creditors to Prove Debts by November 14 T.S. CHAN: Joint Liquidators Ceases to Act for the Company THERMAL INTERNATIONAL: Members to Receive Wind-Up Report TREASURE MANAGEMENT: Liquidator to Receive Proofs Until Oct. 27 WAI YIP: Court to Hear Wind-Up Petition on November 15 YING YUE: To Pay First and Final Dividend I N D I A BALLARPUR INDUSTRIES: Reports Better Results for 1Q FY 2007 ICICI BANK: Raises US$400 Million From Five-Year Note Offering ICICI BANK: Fitch Gives F1+(ind)(SO) Rating to Securitised Asset PHARMANET DEVELOPMENT: Amends Revolving Credit Agreement PHARMANET DEVELOPMENT: Appoints P. Tombros & R. Classon to Board QUEBECOR WORLD: Moody's Lowers Corporate Family Rating to B1 RELIANCE INDUSTRIES: Releases Half-Year 2006 Financial Results UNION BANK OF INDIA: Fitch Upgrades Individual Rating to C/D UNION BANK OF INDIA: Posts 218% Increase in 2nd Quarter Profit I N D O N E S I A BANK NEGARA: Evaluates Non-Performing Loans for More Debt Cuts CA INC: Adopts New Stockholder Protection Rights Agreement CORUS GROUP: Takeover Offer Cues S&P to Put Rating on Watch Pos. CORUS GROUP: Fitch Places BB- Default Rating on Watch Positive LIPPO KARAWACI: Fitch Assigns 'BBB+(idn)' National Rating J A P A N ALITALIA SPA: Hits Insolvency Risk Reports CAFES 2: S&P Rates Multi-Borrower Class E Certificate 'BB+' EDDIE BAUER: Moody's Assigns Loss-Given-Default Rating EDDIE BAUER: To Open at the Promenade Shops at Dos Lagos FTI CONSULTING: Buys Brower Kriz and G3 Consulting for US$14-M ISUZU MOTORS: Expects Better Operating Profit for Sept. Quarter ISUZU MOTORS: Establishes JV in Germany and Austria M-REAL OYJ: Moody's Affirms B2 Ratings on Strategic Review M-REAL OYJ: Starts Restructuring; Foreign Sites Face Closure M-REAL OYJ: Names Mikko Helander as New Chief Executive Officer MITSUI LIFE: Moody's Upgrades Insurer Rating to Baa2 from Ba1 PAYLESS SHOESOURCE: Moody's Assigns Loss-Given-Default Rating SOLO CUP: Completes Review of Accounting Issues SOLO CUP: Reports US$670.3MM Net Sales for Quarter Ended July 2 TIMKEN CO: Opens US$10-Mil. Technology Center in Clemson Univ. YOKOGAWA ELECTRIC: Now Preferred System Supplier for Air Liquide YOKOGAWA ELECTRIC: Unit Releases Event Package Upgrade YOKOGAWA ELECTRIC: Gets Cert. For Safety Instrumented System K O R E A DRESSER INC: Moody's Assigns B1 Rating to Planned US$935MM Loan DRESSER INC: S&P Rates US$935 Million Credit Facilities at B HYUNDAI MOTOR: Joint Venture Sued Over Accent's Price Cut NOVELIS INC: Expects Improved Financial Performance in 2007 NOVELIS INC: Moody's Assigns Loss-Given-Default Rating SHINHAN BANK: Plans Aggressive Expansion in Southeast Asia WOORI BANK: To Expand United States Operations WOORI FINANCE: CEO Disciplined Over Large Bonus Payments M A L A Y S I A ARMSTRONG WORLD: McDermott Will Wants Court to OK US$88,001 Fees BIMB HOLDINGS: To Seek Shareholders' OK for Proposals at AGM COMSA FARMS: Fails to Submit Audited Accounts Ended March 2006 CYGAL BERHAD: SC Extends Time for Implementation of Revamp Plan FALCONBRIDGE LTD: Xstrata Acquires Additional Shares JIN LIN: Unveils Scheme of Arrangement with Shareholders MANGIUM INDUSTRIES: Unit Defaults on MYR15,878,520 as of Sept. MERCES HOLDINGS: Unit Served with Wind-Up Petition METROPLEX BERHAD: Unit Struck Off From Register of Companies PERDUREN (M) BERHAD: Exits Practice Note 17 Category SETEGAP BERHAD: Court Extends Restraining Order Until January 21 N E W Z E A L A N D ABIL PROPERTY: Commences Liquidation Proceedings ALLEN WALKER: Creditors to Prove Claims on October 30 AUTOWORKS SERVICE: Faces Liquidation Proceedings CHALET ARTHURS: Court Sets Date to Hear Liquidation Petition E-COM SOLUTIONS: Appoints Joint and Several Liquidators OTAHUHU PROPERTIES: Inability to Pay Debts Prompts Liquidation PROJECT TRANZACTIONS: Court to Hear Liquidation Petition QUALITY RESURFACING: Court Hears CIR's Liquidation Petition SALES FACTORY: Names Craig as Liquidator TSSL LTD: Court Hears Liquidation Petition P H I L I P P I N E S SAN MIGUEL CORP: San Miguel Enters Thai Fruit Juice Market S I N G A P O R E AMARANTH ADVISORS: Cuts 350 Jobs as Onset of Closing Down CLASSE CO: Proofs of Debt Due on November 20 FREESCALE SEMICONDUCTOR: Expands Joint Efforts with dSPACE FREESCALE: Updates Progress on STMicroelectronics Joint Program GREENLODGE HOLDING: Creditors Must Prove Debts by Nov. 13 HEXION SPECIALTY: Tenders Offer to Holders of US$625-Mil. Notes MSM HOLDINGS: Proofs of Debt Due on October 30 ODYSSEY RE: Files Annual Report for Year Ended Dec. 31, 2005 PETROBRAS INT'L: Fitch Rates US$500 Million Senior Notes at BB+ PETROLEO BRASILEIRO: Starting Operations on Two Oil Platforms T H A I L A N D GOVT. HOUSING BANK: Optimistic in Reaching Year's Loan Target KRUNG THAI: Two Directors Resign from Board TANAYONG PCL: Posts THB450-Million Net Loss in F/Y 2006 TRUE CORP: NTC Starts Probe into Advance Info's Call Promo - - - - - - - - ================= A U S T R A L I A ================= ABI AUSTRALIA: Appoints Daniel Civil as Liquidator -------------------------------------------------- At a general meeting on October 5, 2006, the members of Abi Australia Ltd resolved to voluntarily wind up the company's operations and appointed Daniel Civil as liquidator. Mr. Civil's appointment was confirmed at the creditors' meeting held later that day. The Liquidator can be reached at: Daniel Civil Jirsch Sutherland Chartered Accountants Level 2, 84 Pitt Street Sydney, New South Wales 2000 Australia Telephone:(02) 9233 2111 Facsimile:(02) 9233 2144 ABI-BSM PTY: Members Resolve to Wind Up Firm -------------------------------------------- Members of ABI-BSM Pty Ltd agreed on October 5, 2006, to voluntarily wind up the company's operations. The members appointed Daniel Civil as liquidator, which appointment was confirmed at the creditors' meeting held later that day. The Liquidator can be reached at: Daniel Civil Jirsch Sutherland Chartered Accountants Level 2, 84 Pitt Street Sydney, New South Wales 2000 Australia Telephone:(02) 9233 2111 Facsimile:(02) 9233 2144 BAR RISTRETTO: Members Want Voluntary Wind Up of Operations ----------------------------------------------------------- Members of Bar Ristretto Pty Ltd on October 6, 2006, resolved to voluntarily wind up the company's operations and appointed Daniel Civil as liquidator. The appointment of the liquidator was confirmed at the creditor's meeting held consequently that day. The Liquidator can be reached at: Daniel Civil Jirsch Sutherland Chartered Accountants Level 2, 84 Pitt Street Sydney, New South Wales 2000 Australia Telephone:(02) 9233 2111 Facsimile:(02) 9233 2144 BARKER HOLDINGS: Wind-Up Process Commenced ------------------------------------------ Members of Barker Holdings Investments Pty Ltd held a general meeting on October 4, 2006, and decided to wind up the company's business operations. Subsequently, Bruce Gleeson was appointed as liquidator. The Liquidator can be reached at: Bruce Gleeson Jones Condon Chartered Accountants Level 13 189 Kent Street Sydney, New South Wales Australia Telephone:(02) 9251 5222 BEROWRA RSL: Creditors Required to Prove Debts by November 1 ------------------------------------------------------------ Berowra RSL Bowling and Community Club Ltd, which is subject to a deed of company arrangement, will declare the first and final dividend on November 15, 2006. Accordingly, creditors are required to prove their claims by November 1, 2006, or be excluded from sharing in the benefit of the dividend. The Deed Administrator can be reached at: M. J. M. Smith Smith Hancock Chartered Accountants Level 4, 88 Phillip Street Parramatta, New South Wales 2150 Australia BILL GILMOUR: Members' Final Meeting Set on October 26 ------------------------------------------------------ Bill Gilmour Enterprises Pty Ltd, which is in liquidation, will hold a final meeting for its members on October 26, 2006, at 9:00 a.m. At the meeting, members will receive an account of the company's wind-up from Liquidator John Lord. The Liquidator can be reached at: John Lord PKF Chartered Accountants Level 10, 1 Margaret Street Sydney, New South Wales 2000 Australia Telephone:(02) 9251 4100 Facsimile:(02) 9240 9821 Web site: http://www.pkf.com.au BRIGHTPOINT INC: Unit Completes Acquisition of Tri Teknologies -------------------------------------------------------------- Brightpoint, Inc., disclosed that its subsidiary, Wireless Fulfillment Services LLC, has completed its acquisition of Trio Industries, Inc. TrioTek, based in Carrollton, Texas, is a provider of bundled wireless products and solutions to Value Added Resellers, system integrators, and other customers focused on providing wireless data services. TrioTek is an authorized master agent for Sprint Nextel, Cingular Wireless and Verizon Wireless and distributes a wide variety of wireless data products from several original equipment manufacturers. "With TrioTek's customer base of over 1,000 customers, strong wireless network operator relationships and unique portfolio of wireless data products, this acquisition improves are market position and enhances our capabilities for providing mobility solutions to business customers through resellers in our Advanced Wireless Services group," stated J. Mark Howell, President of Brightpoint, Inc. and Brightpoint Americas. About Brightpoint Headquartered in Plainfield, Indiana, Brightpoint, Inc. -- http://www.brightpoint.com/-- engages in the distribution of wireless devices and accessories, as well as provision of customized logistic services to the wireless industry. The company primarily operates in Australia, Colombia, Finland, Germany, India, New Zealand, Norway, the Philippines, the Slovak Republic, Sweden, United Arab Emirates and the United States. The company's customers include mobile operators, mobile virtual network operators, resellers, retailers and wireless equipment manufacturers. Brightpoint was incorporated in 1989 under the name Wholesale Cellular USA, Inc. and changed its name to Brightpoint Inc. in 1995. * * * On April 12, 2006, Standard & Poor's placed Brightpoint's long- term local and foreign issuer credit ratings at BB- with a stable outlook. CHC HELICOPTER: 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 oilfield service and refining and marketing sectors, the rating agency confirmed its Ba3 Corporate Family Rating for CHC Helicopter Corporation and raised its rating on the company's 7.375% Senior Subordinate Guaranteed Global Notes Due 2014 from B2 to B1. Moody's assigned the debentures an LGD4 rating suggesting noteholders will experience a 67% loss in the event of a default. Moody's also affirmed its B3 rating on the company's 9% Senior Unsecured Guaranteed Global Notes Due 2014, and assigned the debentures an LGD4 rating suggesting a projected loss-given default of 54%. 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 alphanumeric 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%). CHC Helicopter Corporation (TSX: FLY.A and FLY.B; NYSE: FLI) -- http://www.chc.ca/-- is the world's largest provider of helicopter services to the global offshore oil and gas industry with aircraft operating in more than 30 countries, including Australia, Thailand, the Philippines, India, Bangladesh, Malaysia and Indonesia. COEUR D'ALENE: Starts Construction of US$29MM Tailings Facility --------------------------------------------------------------- Coeur d'Alene Mines Corp. (NYSE: CDE, TSX: CDM) said today that, as part of its ongoing work at the San Bartolome silver mine in Bolivia, it has begun construction of the mine's US$29 million tailings facility. The work is being performed by ICE Ingenieros S.A., a Bolivian contractor with extensive experience in the mining industry, pursuant to a contract with Coeur's Bolivian subsidiary, Empresa Minera Manquiri S.A. As many as 350 Bolivian workers will be employed during construction of the tailings facility. "The tailings facility is the longest lead-time item at San Bartolome, and moving forward now is consistent with the construction schedule for the overall project, which we are aiming to complete near the end of 2007," said Coeur's Chairman, President, and Chief Executive Officer, Dennis E. Wheeler. "We feel good about advancing the project, which is creating much- needed jobs in Bolivia and especially in the Potosi region." The San Bartolome mine is expected to produce about eight million ounces of silver annually once it begins production. Coeur d'Alene Mines Corp. -- http://www.coeur.com/-- is the world's largest primary silver producer, as well as a significant, low-cost producer of gold. The company has mining interests in Nevada, Idaho, Alaska, Argentina, Chile, Bolivia and Australia. * * * Coeur d'Alene Mines Corp.'s US$180 Million notes due Jan. 15, 2024, carry Standard & Poors' B- rating. CREATIVE SCOPE: Members Decide to Wind Up Firm ---------------------------------------------- At a general meeting of Creative Scope Marketing Pty Ltd on September 28, 2006, members agreed that it is in the company's best interests to wind up its operations. The members appointed Peter Ngan as liquidator. The liquidator's appointment was later confirmed at the creditors' meeting held consequently that day. The Liquidator can be reached at: P. Ngan Ngan & Co Chartered Accountants Level 5, 49 Market Street Sydney, New South Wales 2000 Australia FU-2 & ASSOCIATES: To Hold Final Meeting on October 26 ------------------------------------------------------ FU-2 & Associates Pty Ltd will hold a final meeting for its members and creditors on October 26, 2006, at 10:00 a.m., to attend to statutory duties. As reported by the Troubled Company Reporter - Asia Pacific, the Company commenced a wind-up of its operations on February 9, 2006. The Liquidator can be reached at: Nicholas Crouch Crouch Insolvency Level 28, 31 Market Street Sydney, New South Wales 2000 Australia GATEWAVE PTY: Enters Liquidation Proceedings -------------------------------------------- Members of Gatewave Pty Ltd on September 22, 2006, resolved to liquidate the company's business and appointed Peter Ngan as liquidator. The Liquidator can be reached at: P. Ngan Ngan & Co Chartered Accountants Level 5, 49 Market Street Sydney, New South Wales 2000 Australia GLOUCESTER HOLDINGS: Members Opt for Voluntary Wind-Up ------------------------------------------------------ The members of Gloucester Holdings Pty Ltd passed a special resolution on October 4, 2006, to voluntarily wind up the company's operations. Accordingly, Bruce Gleeson was named liquidator. The Liquidator can be reached at: Bruce Gleeson c/o Jones Condon Chartered Accountants Telephone (02) 9251 5222 HILLS COMPLETE: Placed Under Voluntary Liquidation -------------------------------------------------- At separate meetings held on October 3, 2006, the members and creditors of Hills Complete Property Maintenance Pty Ltd resolved to voluntarily wind up the company's operations. In this regard, Ozem Kassem was appointed as liquidator. The Liquidator can be reached at: Ozem Kassem Cor Cordis Chartered Accountants Level 8, 50 Carrington Street Sydney, New South Wales Australia Telephone:(02) 8221 8433 Facsimile:(02) 8221 8422 IVNO PTY: Inability to Pay Debts Prompts Wind-Up ------------------------------------------------ At meetings held on September 29, 2006, the members and creditors of IVNO Pty Ltd passed special resolutions to voluntarily wind up the company's operations due to its inability to pay debts. Richard Albarran was appointed as liquidator. The Liquidator can be reached at: Richard Albarran c/o Hall Chadwick Level 29, 31 Market Street Sydney, New South Wales 2000 Australia JANOPE PTY: Members Decide to Close Operations ---------------------------------------------- After an extraordinary general meeting on September 27, 2006, the members of Janope Pty Ltd resolved to close the company's business operations. John Vouris was appointed liquidator at a creditors' meeting held that same day. The Liquidator can be reached at: John Vouris Lawler Partners Chartered Accountants Level 7, 1 Margaret Street Sydney, New South Wales 2000 Australia JLG INDUSTRIES: Acquisition Prompts S&P's Negative Watch -------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings on Hagerstown, Maryland-based construction equipment manufacturer JLG Industries Inc., including its 'BB' corporate credit rating, on CreditWatch with negative implications. This rating action follows the announcement by unrated Oshkosh Truck Corp. that it is acquiring JLG in an all-cash transaction totaling US$3.2 billion. The funding for the transaction is expected to be all debt. "Although the combination of the two companies with leading brands in their respective markets is expected to be complementary, an all-debt financing may likely result in prospectively weaker credit measures than currently exist for JLG," said Standard & Poor's credit analyst John R. Sico. The announced plans are for the outstanding bonds of JLG to be tendered, and Standard & Poor's expects to withdraw our ratings on JLG when the transaction closes by the end of 2006 or early 2007. Hagerstown, Md.-based JLG Indusries Inc. -- http://www.jlg.com/ -- is a manufacturer of access and material-handling equipment for the cyclical construction equipment and rental markets. At the end of fiscal 2006, JLG had sales of US$2.3 billion and outstanding debt of more than US$200 million. The company has operations in Australia. JOHN A GARRETT: Members' Final Meeting Slated for October 26 ------------------------------------------------------------ A final meeting of the members of John A Garrett Pty Ltd, which was placed under liquidation, will be held on October 26, 2006, at 9:00 a.m. During the meeting, Liquidator I. L. Struthers will present the accounts of the company's wind-up and property disposal exercises. The Liquidator can be reached at: I. L. Struthers c/o Deloitte Touche Tohmatsu 225 George Street Sydney, New South Wales 2000 Australia KENDLE INTERNATIONAL: 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 Healthcare Service and Distribution sectors, the rating agency confirmed its B1 Corporate Family Rating for Kendle International Inc. Additionally, Moody's confirmed its probability-of-default ratings and assigned loss-given-default ratings on these loans facilities: Projected POD LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------ ---------- Sr. Sec. Revolver due 2011 B1 LGD3 31% Sr. Sec. Term Loan B due 2012 B1 LGD3 31% 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%). Headquartered in Cincinnati, Ohio, Kendel International Inc.-- http://www.kendle.com/-- is a clinical research organization (CRO) that provides a range of Phase I-IV clinical development services to the biopharmaceutical industry. The company offers clinical research services and information technology to biopharmaceutical companies. It delivers integrated clinical research services, including clinical trial management, clinical data management, statistical analysis, medical writing, regulatory consulting and organizational meeting management and publications services on a contract basis to the biopharmaceutical industry. The company operates in North America, Europe, Asia Pacific, Latin America and Africa. In the Asia Pacific, Kendel maintains operations in Australia, China, and India. MICHAEL O'LEARY: Liquidator to Present Final Wind-Up Account ------------------------------------------------------------ Michael O'Leary Investments Pty Ltd, which is in liquidation, will hold a final meeting for its members and creditors on October 26, 2006, at 11:30 a.m. During the meeting, members and creditors will receive Liquidator Haye's final account on the company's wind-up proceedings. The Liquidator can be reached at: Alan Hayes Sims Partners Level 24, Australia Square 264 George Street Sydney, New South Wales 2001 Australia Telephone: 9241 3422 MILLEN GROUP: Creditors' Proofs of Claim Due on November 1 ---------------------------------------------------------- Millen Group Pty Ltd, which is in liquidation, will declare a final dividend for its creditors. To be included in the company's dividend distribution, creditors are required to submit their proofs of debt by November 1, 2006. The Liquidator can be reached at: Shannon Cavanagh c/o Bacchus Associates Pty Limited Suite 9, Level 2, The Cooperage 56 Bowman Street Pyrmont, New South Wales 2009 Australia MOOKI MEDIA: Members and Creditors to Meet on October 26 -------------------------------------------------------- The members and creditors of Mooki Media Pty Ltd will meet on October 26, 2006, at 10:30 a.m., to receive Liquidator Sule Arnautovic's accounts of the company's wind-up and property disposal activities. The Troubled Company Reporter - Asia Pacific previously reported that the company commenced wind-up of its operations on June 7, 2006. The Liquidator can be reached at: Sule Arnautovic Jirsch Sutherland Chartered Accountants Level 2, 84 Pitt Street Sydney, New South Wales 2000 Australia Telephone: 02 9233 2111 Facsimile: 02 9233 2144 PAUL SEGAERT: To Declare First and Final Dividend on Nov. 1 ----------------------------------------------------------- Paul Segaert System Sales Pty Ltd, which is in liquidation, will declare its first and final dividend to creditors on November 1, 2006. Creditors who were not able to submit their proofs of debt on October 18, 2006, will be excluded from the benefit of the dividend. The Joint and Several Liquidator can be reached at: P. A. Billingham Grant Thornton Level 17, 383 Kent Street Sydney, New South Wales 2000 Australia PAUL SEGAERT (ACT): Will Declare First and Final Dividend --------------------------------------------------------- Paul Segaert Aluminum Products (ACT) Pty Ltd, which is in liquidation, will declare the first and final dividend to its creditors on November 1, 2006. Creditors who were unable to formally prove their debts on October 18, 2006, will be excluded from sharing in the dividend distribution. The Joint and Several Liquidator can be reached at: P. A. Billingham Grant Thornton Level 17, 383 Kent Street Sydney, New South Wales 2000 Australia PAUL SEGAERT ALUMINUM: To Declare First and Final Dividend ---------------------------------------------------------- Paul Segaert Aluminum Pty Ltd, which is in liquidation, will declare the first and final dividend for its creditors on November 1, 2006. Only those who were able to prove their debts on October 18, 2006, will be included in sharing the dividend distribution. The Joint and Several Liquidator can be reached at: P. A. Billingham Grant Thornton Level 17, 383 Kent Street Sydney, New South Wales 2000 Australia PAUL SEGAERT PRODUCTS: Prepares to Declare Dividend on Nov. 1 ------------------------------------------------------------- Paul Segaert Aluminum Products Pty Ltd, which is in liquidation, will declare the first and final dividend for its creditors on November 1, 2006. Creditors who failed to prove their claims on October 18, 2006, are excluded in the distribution. The Joint and Several Liquidator can be reached at: P. A. Billingham Grant Thornton Level 17, 383 Kent Street Sydney, New South Wales 2000 Australia PENTON MEDIA: Members to Receive Wind-Up Report on Oct. 26 ---------------------------------------------------------- Penton Media Australia Pty Ltd, which is in liquidation, will hold a final meeting for its members on October 26, 2006, at 10:00 a.m. During the meeting, members will receive an account of the company's wind-up and property disposal exercises from Liquidators David Clement Pratt and Timothy James Cuming. The Liquidators can be reached at: David Clement Pratt Timothy James Cuming PricewaterhouseCoopers Level 15, 201 Sussex Street Sydney, New South Wales 1171 Australia PRANA BIOTECHNOLOGY: Deloitte Touche Raises Going Concern Doubt --------------------------------------------------------------- Prana Biotechnology Limited, in compliance with NASDAQ Marketplace Rule IM-4350-6, disclosed that its independent registered public accountants included a going concern explanatory paragraph in its consolidated financial report for the fiscal year ended June 30, 2006, contained in the company's Annual Report on Form 20-F filed with the United States Securities and Exchange Commission. Deloitte Touche Tohmatsu expressed substantial doubt about Prana Biotechnology Limited's and its subsidiaries' ability to continue as a going concern after auditing the company's financial statements for the fiscal years ended June 30, 2006 and 2005. The auditing firm pointed to the company's recurring losses from operations and negative cash flows from operations. Prana Biotechnology recorded loss from operations amounting to AU$12,481,332 for the year ended June 30, 2006, and AU$18,691,564 for the year ended June 30, 2005. Net loss for the year ended June 30, 2006, was AU$11,719,309, and for the year ended June 30, 2005, was AU$17,799,429. The company ended June 30, 2006, with approximately AU$10 million (US$7.5 million) in cash and cash equivalents. The company, on Oct. 5, also disclosed that it received regulatory approval from Sweden's Medical Products Agency to start a Phase IIa clinical trial of its proprietary lead compound, PBT2, in patients with early Alzheimer's disease. As a result of obtaining regulatory approval to initiate the Phase IIa study, the company will need to raise additional cash. Based in Melbourne, Australia Prana Biotechnology Limited (Nasdaq: PRAN, ASX: PBT) --http://www.pranabio.com/-- provides and develops therapies for age-related disease, initially focussing on the treatment of Alzheimer's Disease. Other potential applications for the company's technology include Cataracts, Tardive Dyskinesia, Creutzfeldt-Jakob Disease, Motor Neuron Disease and Parkinson's Disease. PRANA BIOTECHNOLOGY: To Hold Annual General Meeting on Nov. 30 -------------------------------------------------------------- Prana Biotechnology Limited will hold its 2006 Annual General Meeting of Shareholders on November 30, 2006, at 10:30 a.m. at the Company Head Office at the Peppin Merino Room, 369 Royal Parade, in Parkvale, Victoria, Australia. The Company's annual financial statements for the period ended June 30, 2006, comprising of the annual financial report, the director's report and the auditor's report for that fiscal year will be presented before the AGM. At the meeting, Prana's shareholders will also be tasked to consider resolutions, including those that pertain to: -- the re-election of Prof. Colin Masters as director of the company; -- the approval of the prior issue of 250,000 ordinary shares; -- the approval of the granting of unquoted options to Geoffrey Kempler and Brian Meltzer, for the acquisition of 1,000,000 and 300,000 ordinary shares, respectively, both exercisable by July 31, 2009; and -- the approval of a change of auditor. Based in Melbourne, Australia Prana Biotechnology Limited (Nasdaq: PRAN, ASX: PBT) --http://www.pranabio.com/-- provides and develops therapies for age-related disease, initially focussing on the treatment of Alzheimer's Disease. Other potential applications for the company's technology include Cataracts, Tardive Dyskinesia, Creutzfeldt-Jakob Disease, Motor Neuron Disease and Parkinson's Disease. After auditing Prana Biotechnology's consolidated financial statements for the year ended June 30, 2006, Deloitte Touche Tohmatsu expressed substantial doubt about the company's and its subsidiaries' ability to continue as a going concern, pointing to their recurring losses from operations and negative cash flows from operations. RALSON HOLDINGS: Court Issues Wind-Up Order ------------------------------------------- The Federal Court of New South Wales on September 29, 2006, ordered the wind-up of Ralson Holdings Pty Ltd' operations and appointed Steven Nicols as liquidator. The Liquidator can be reached at: Steven Nicols Level 2, 350 Kent Street Sydney, New South Wales 2000 Australia RECYCLED PLASTIC: To Distribute Dividend on November 24 ------------------------------------------------------- Recycled Plastic Technology Pty Ltd, which is subject to a deed of company arrangement, will declare dividend on November 24, 2006. Creditors who failed to submit their proofs of claim on October 17, 2006, will be excluded in the dividend distribution. The Deed Administrator can be reached at: John Lord PKF Chartered Accountants Level 10, 1 Margaret Street Sydney, New South Wales 2000 Australia Telephone: 02 9251 4100 Facsimile: 02 9240 9821 Web site: http://www.pkf.com.au RETRAC ENGINEERING: Final Meeting Scheduled on October 26 --------------------------------------------------------- A final meeting of the members and creditors of Retrac Engineering Pty Ltd will be held on October 26, 2006, at 10:00 a.m. At the meeting, Liquidator R. M. Sutherland will present accounts regarding how Retrac Engineering was wound up and how its property was disposed of. As reported by the Troubled Company Reporter - Asia Pacific, Retrac wound up its operations on May 15, 2006. The Liquidator can be reached at: Roderick Mackay Sutherland Jirsch Sutherland Chartered Accountants Level 2, 84 Pitt Street Sydney, New South Wales 2000 Australia Telephone: 02 9233 2111 Facsimile: 02 9233 2144 SAVERS INC: 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. and Canadian Retail sector, the rating agency confirmed its B2 Corporate Family Rating for Savers, Inc. Additionally, Moody's revised and 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$197 Million Term Loan B1 Ba3 LGD2 27% US$25 Million Sr. Sec. Revolving Credit Facility B1 Ba3 LGD2 27% US$130 Million Sub. Notes Caa1 Caa1 LGD5 87% 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 Seattle, Washington, Savers, Inc., is a for-profit thrift store chain. Savers operates 207 stores in the United States, Canada stores, and Australia under the nameplates Savers, Value Village, and Village de Valeurs. SIRIUS RETAIL: Liquidator to Present Wind-Up Report --------------------------------------------------- Members and creditors of Sirius Retail Television Pty Ltd will convene for their final meeting on October 26, 2006, at 10:30 a.m., to hear final accounts of the company's wind-up proceedings from Liquidator Neil Geoffrey Singleton. According to the Troubled Company Reporter - Asia Pacific, Sirius Retail declared its first and final dividend to creditors on August 12, 2005. The Liquidator can be reached at: Neil Geoffrey Singleton Sims Partners Level 24, Australian Square 264 George Street Sydney, New South Wales 2001 Australia Telephone: 9241 3422 SMS FLOOR: Members Decide to Shut Down Business Operations ---------------------------------------------------------- Members of SMS Floor Polishers & Builders Pty Ltd on Sept. 28, 2006, decided to shut down the company's business and appointed P. Ngan as liquidator. The appointment was confirmed at the creditors' meeting held subsequently that day The Liquidator can be reached at: P. Ngan Ngan & Co Chartered Accountants Level 5, 49 Market Street Sydney, New South Wales 2000 Australia TEAM NEVEREST: Creditors Must Prove Debts by October 31 ------------------------------------------------------- Team Neverest Pty Ltd, which is in liquidation, will declare the first and final dividend to unsecured creditors on November 14, 2006. Creditors are required to submit their proofs of claim by October 31, 2006, to be included in the dividend distribution. The Liquidator can be reached at: M. F. Cooper Frasers Insolvency Advisory Level 5, 99 Elizabeth Street Sydney, New South Wales 2000 Australia TWOBERTHA PTY: Members Opt for Voluntary Wind-Up ------------------------------------------------ At a general meeting held on September 29, 2006, the members of TwoBertha Pty Ltd resolved to voluntarily wind up the company's business operations. Accordingly, P. Ngan was appointed as liquidator. The Liquidator's appointment was confirmed at the creditors' meeting held later that day. The Liquidator can be reached at: P. Ngan Ngan & Co Chartered Accountants Level 5, 49 Market Street Sydney, New South Wales 2000 Australia VIERI RESTAURANT: Winds Up Business Operations ---------------------------------------------- At a general meeting on September 28, 2006, the members of Vieri Restaurant (Darling Harbour) Pty Ltd decided to voluntarily wind up the company's operations and appointed P. Ngan as liquidator. The appointment of Mr. Ngan was confirmed at the creditors' meeting held subsequently that day. The Liquidator can be reached at: P. Ngan Ngan & Co Chartered Accountants Level 5, 49 Market Street Sydney, New South Wales 2000 Australia WEATHERDON STRUK: Members Resolve to Wind Up Operations ------------------------------------------------------- At a general meeting of the members of Weatherdon Struk Pty Ltd held on September 22, 2006, it was resolved that a voluntary wind-up of the company's operations is appropriate and necessary. In this regard, Peter Ngan was appointed as liquidator. The Liquidator can be reached at: P. Ngan Ngan & Co Chartered Accountants Level 5, 49 Market Street Sydney, New South Wales 2000 Australia ================================ C H I N A & H O N G K O N G ================================ ACW CONSULTING: Liquidator to Present Wind-Up Report ---------------------------------------------------- Members of ACW Consulting (HK) Ltd will hold a final general meeting on November 13, 2006, at 11:00 a.m., to receive Liquidator Young Chun Man Kenneth's account on the company's wind-up and property disposal activities. As reported by the Troubled Company Reporter - Asia Pacific, the company commenced a wind-up of its operations on August 14, 2006. The Liquidator can be reached at: Young Chun Man Kenneth 31/F, Gloucester Tower The Landmark, 11 Pedder Street Central, Hong Kong AGRICULTURAL BANK: Reform to Cost Around US$100-Billion ------------------------------------------------------- The Agricultural Bank of China is close to finalizing a plan with banking regulators to transform it into a joint stock company, The People Daily reports, citing a statement from Zhou Xiaochuan, governor of the People's Bank of China. According to The Daily, regulators have reached a consensus that the Agricultural Bank will be listed as a whole company, instead of being broken up into smaller units as was previously reported. The estimated cost of reform will reach US$100 billion, much more than that of the other three major state-owned commercial banks -- the Industrial and Commercial Bank of China; the Bank of China; and the China Construction Bank -- a senior official with the Central Huijin Investment Company, a major investment arm of the central government, told the paper. However, regulators are still considering various plans for the cash injection as the government will have to bail out the debt- laden bank, China Securities Journal relates. Sources of the financial aid have not been finalized either, the China Journal adds. The Agricultural Bank of China -- http://www.abocn.com/-- is the mainland's fourth largest bank. It has lagged behind other major Chinese commercial banks, which have received government injections of new capital and been allowed to link up with foreign partners in preparation for raising money on foreign stock exchanges. Despite posting operating profits of over CNY42.4 billion in 2005, the Bank is still carrying billions of dollars in unpaid loans to state companies, which it says accounted for 26% of its lending at the end of last year. The Troubled Company Reporter - Asia Pacific reported on June 27, 2006, that the National Audit Office found accounting irregularities involving CNY51.6 billion, CNY14.27 billion of which come from deposit business, CNY27.62 billion from loan grants, and CNY9.72 billion from fraudulent bill issuance. Fitch Ratings gave the Bank an 'E' Individual rating. BENQ CORP: Posts NT$12.8 Billion Sales for September ---------------------------------------------------- BenQ Corp. disclosed its consolidated revenue for the month of September. The company's core business recorded sales of NT$12.8 billion. Sales in September grew in most product lines powered by strengthened seasonal demand. With the company's Computing Products group, unit sales of BenQ brand LCD monitors grew nearly 20% month-on-month. "China sales hit record highs in September," according to Eric Ky Yu, BenQ's Senior Vice President of Finance and Spokesperson. With the company's Digital Media products, "sales of BenQ brand projectors also hit a new high in both Europe and China. LCD TV grew nearly 50% in both unit and value terms month-on-month driven by new customer additions," continued Mr. Yu. Benq Mobile Insolvency Proceedings BenQ Corp.'s board of directors convened and resolved on Sept. 28 to discontinue capital injection into BenQ Mobile Germany, effectively placing BenQ Mobile's German operations into insolvency proceedings. Related handset sales therefore are not included in this monthly report; the company's auditors will further ascertain handset revenue for September. Looking ahead to October, "we expect sales to grow in October due to season strengths in LCD monitors and projectors," added Mr. Yu. * * * Headquartered in Taiwan, Republic of China, BenQ Corporation, Inc. -- http://www.benq.com/-- is principally engaged in manufacturing, developing and selling of computer peripherals and telecommunication products. It is also a major provider of 3G handset, 3G handset, Camera phones, and other products. Bankrupt BenQ Mobile GmbH & Co., the company's wholly owned subsidiary, operates from Munich, Germany. Taiwan Ratings Corp., on August 17, 2006, lowered its long-term corporate credit rating and unsecured corporate bond rating on BenQ Corporation to twBB+ from twBBB. At the same time, the short-term corporate rating on the Company was lowered to twB from twA-3. All ratings remain on CreditWatch with negative implications, where they were placed on March 14, 2006. BENQ MOBILE: Union Mulls Suit to Keep Jobs at Insolvent Unit ------------------------------------------------------------ The IG Metall union in Germany said it was investigating the possibility of a legal action, possibly through a class action, to preserve the job of 3,000 BenQ Mobile GmbH & Co OHG staff who now stand to lose their jobs after the insolvency of the company. The planned suit is aimed at forcing the former owner of the company, Siemens AG, to re-employ the workers. "It's new legal territory, but of course we will try it," Munich representative Harald Flassbeck told Reuters. * * * Headquartered in Taiwan, Republic of China, BenQ Corporation, Inc. -- http://www.benq.com/-- is principally engaged in manufacturing, developing and selling of computer peripherals and telecommunication products. It is also a major provider of 3G handset, 3G handset, Camera phones, and other products. BenQ Mobile GmbH & Co., the company's wholly owned subsidiary, operates from Munich, Germany. Taiwan Ratings Corp., on August 17, 2006, lowered its long-term corporate credit rating and unsecured corporate bond rating on BenQ Corporation to twBB+ from twBBB. At the same time, the short-term corporate rating on the company was lowered to twB from twA-3. All ratings remain on CreditWatch with negative implications, where they were placed on March 14, 2006. COVANTA ENERGY: 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, the rating agency confirmed its Ba3 Corporate Family Rating for Covanta Energy Corp. Additionally, Moody's 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 revolving credit facility due 2011 B1 B1 LGD4 64% Senior secured term loans 2012 B1 B1 LGD4 64% Senior secured letter of credit facility due 2012 B1 B1 LGD4 64% Second lien senior secured term loan due 2013 B2 B2 LGD5 84% 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 Fairfield, New Jersey, Covanta Energy Corporation -- http://www.covantaenergy.com/-- is a publicly traded holding company whose subsidiaries develop, own or operate power generation facilities and water and wastewater facilities in the United States and abroad. Covanta has operations in the Philippines, China, Costa Rica, India, and Bangladesh. DAISYFIELD LTD: Final Meeting Slated for November 17 ---------------------------------------------------- Daisyfield Ltd will hold a final general meeting for its members and creditors on November 17, 2006, at 9:30 a.m., to receive Liquidator Chang Lai Ying's report on how the company was wound up and how its properties were disposed of. According to the Troubled Company Reporter - Asia Pacific, members resolved to wind up Daisyfield's operations on August 16, 2006. The Liquidator can be reached at: Chang Lai Ying Suites 2205-06, Island Place Tower 510 King's Road, North Point Hong Kong DARSUN LTD: Court to Hear Wind-Up Petition on November 15 --------------------------------------------------------- The High Court of Hong Kong will hear the wind-up petition against Darsun Ltd on November 15, 2006, at 9:30 a.m. Leung Chui Wah filed the petition with the Court on September 18, 2006. The Solicitors for the Petitioner can be reached at: Joe Poon 34/F., Hopewell Centre 183 Queen's Road East Wanchai, Hong Kong DRAWINGS & DESIGN: Faces Wind-Up Proceedings -------------------------------------------- Yuen Chi Wah on September 15, 2006, filed before the High Court of Hong Kong a petition to wind-up the operation of Drawings & Design Ltd. The Court will hear the petition on November 15, 2006, at 9:30 a.m. The Solicitors for the Petitioner can be reached at: Christina Hadiwibawa 26/F, Queensway Government Offices 66 Queensway Hong Kong EASTERN BROADCASTING: Fitch Ups Ratings; Out from Watch Positive ---------------------------------------------------------------- On October 19, 2006, Fitch Ratings upgraded the ratings of Eastern Broadcasting Co., Ltd and simultaneously removing them from Rating Watch Positive where it was placed on May 29, 2006. The upgrades are: * Long-term foreign and local currency Issuer Default ratings upgraded to BB from BB-; * National Long-term rating upgraded to BBB+(twn) from BBB(twn); * National Short-term rating upgraded to F2(twn) from F3(twn). The ratings of the TWD50 million and TWD300m senior unsecured National bond maturing in June and July 2008, respectively, were upgraded to BB from 'BB-, and to BBB+(twn)' from BBB(twn). The Outlook on the ratings is Stable. Eastern Broadcasting was placed on Rating Watch Positive in May following the launch of a private offering of common shares and on consideration of the consistent improvement in EBC's underlying performance over the past several years. The RWP is removed as the proceeds from the private offering of 112 million shares worth TWD1.76 billion have been received, of which about TWD1bn has been used to pay down EBC's debt and the remainder reserved for working capital needs as originally intended. "The capital injection reflects EBC's financial flexibility and strengthens its capital structure with less reliance on debt financing. Fitch expects the company to maintain a lower leverage ratio over the medium term in view of its continuing prudent financial strategy," said Kevin Chang, associate director in Fitch's Asia- Pacific Telecom, Media and Technology team. Fitch says the upgraded ratings reflect the company's sustainable market leadership position in the cable television ("CATV") business, the continuing stability of the CATV channel fee income, as well as enhanced revenue mix from ongoing business diversification. These strengths are, nevertheless, tempered by the competitive risks in Taiwan's fragmented CATV advertising market, where growth has weakened 4% in the first half of 2006. The Stable Outlook reflects Fitch's expectation that EBC's underlying performance will remain stable in the rating horizon. For the last 12 months ended June 2006, EBC's revenue increased 2.0% to TWD6.3bn while operating EBITDAR strengthened 0.9% to TWD2.4bn (both compared to full year 2005). Although there is potential of adverse financial implications from the non-renewal of the two-year contracts with the Taiwanese government relating to the Aborigines and Haka channels in 2007 and 2008, such risk is mitigated by the new license of STV Entertainment Channel and the re-broadcast of News S Channel this year. Following the recent private offering, local investors (Eastern Multimedia Group and others) and foreign investors (Carlyle Group) control 60% and 40% of EBC, respectively. Carlyle's interest includes its direct holdings as well as indirect holdings through Eastern Multimedia Company. * * * Located in Taiwan, Eastern Broadcasting Company Ltd --http://www.ettv.com.tw/ettv2003/01/engindex1-3.htm-- and its subsidiaries currently operate eight analogue cable channels, four digital channels, a radio station (ETFM), a website (ETtoday.com), a regional newspaper (Commons Daily) and a merchandising and licensing division focused on child education and lifestyle in Taiwan. The company is also gradually expanding its operation abroad with overseas broadcasting via satellite, cable network, and internet protocol. In 2005, EBC generated revenues of TWD6.1 billion and EBITDA of TWD2.3 billion. ELITE AIR: Wind-Up Petition Hearing Slated for November 1 --------------------------------------------------------- The High Court of Hong Kong will hear a wind-up petition against Elite Air Freight (Hong Kong) Ltd on November 1, 2006, at 9:30 a.m. Lam Valerian presented the petition with the Court on September 6, 2006. The Solicitors for the Petitioner can be reached at: Joe Poon 34/F., Hopewell Centre 183 Queen's Road East Wanchai, Hong Kong GLOBAL POWER: Can Wind Down Heat Recovery Business Segment ---------------------------------------------------------- The United States Bankruptcy Court for the District of Delaware authorized Global Power Equipment Group Inc., and its debtor- affiliates to wind down the operations of the heat recovery steam generator business segment. The Debtors tell the Court that they had determined to wind down this business segment prior to filing for bankruptcy, but in the interest of caution, they asked for approval from the Court. The Debtors say that they lack sufficient funds to operate this business segment, which will likely sustain substantial cash losses in the future. The Debtors contend that the cessation and orderly wind down of this business is in their best interest as well as that of their estates, creditors and parties-in- interest. The Court also authorizes the Debtors to reject certain executory contracts and unexpired leases in connection with the wind down. The Court has set 4:00 p.m. ET, on Oct. 23, 2006, as the deadline for filing objections on the proposed rejections. The hearing on the proposed rejection and objections is scheduled at 10:00 a.m. ET, on Oct. 26. Headquartered in Tulsa, Oklahoma, Global Power Equipment Group Inc., aka GEEG, Inc. -- http://www.globalpower.com/-- provides power generation equipment and maintenance services for its customers in the domestic and international energy, power and infrastructure and service industries. The company designs, engineers and manufactures a range of heat recovery and auxiliary equipment primarily used to enhance the efficiency and facilitate the operation of gas turbine power plants as well as for other industrial and power-related applications. The company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai, China; Nanjing, China; and Heerleen, The Netherlands. The company and 10 of its affiliates filed for chapter 11 protection on Sept. 28, 2006 (Bankr. D. Del. Case No 06-11045). Attorneys at White & Case LLP and The Bayard Firm, P.A., represent the Debtors. As of Sept. 30, 2005, the Debtors reported total assets of US$381,131,000 and total debts of US$123,221,000. The Debtors' exclusive period to filed a chapter 11 plan expires on Jan. 26, 2007. GOLDEN SKY: Members' Final Meeting Set for November 13 ------------------------------------------------------ A final meeting of the members of Golden Sky Enterprises Ltd will be held on November 13, 2006, at 9:30 a.m. During the meeting, members will receive an account of the company's wind-up and property disposal exercises from Liquidator Lee Kwok On, Alexander. According to the Troubled Company Reporter - Asia Pacific, the Company commenced a wind-up of its operations on April 21, 2006. The Liquidator can be reached at: Lee Kwok On, Alexander Rooms 1901-2, Park-In Commercial Centre 56 Dundas Street, Kowloon Hong Kong H & N Slimming: Court Hears Wind-Up Petition -------------------------------------------- A wind-up petition filed against H & N Slimming and Beauty Centre Company Ltd was heard before the High Court of Hong Kong on October 18, 2006. Ng Lai Ying filed the petition with the Court on August 1, 2006. The Solicitors for the Petitioner can be reached at: Francis Kong & Co. Suite 903, 9/F, Kowloon Building 555 Nathan Road, Kowloon Hong Kong HK GAME TRADING: Liquidators Step Aside --------------------------------------- Bruno Arboit and Simon Blade on September 21, 2006, ceased to act as liquidators of HK Game Trading Ltd. The Troubled Company Reporter - Asia Pacific previously reported that HK Game issued its first and final dividend to certain preferential creditors on June 12, 2006. The former Liquidator can be reached at: Bruno Arboit Simon Blade 1203-1213, China Merchants Tower Shun Tak Centre, 168-200 Connaught Road Central, Hong Kong IN-WORK INTERNATIONAL: Creditors Must Prove Debts by Nov. 30 ------------------------------------------------------------ Liquidator Li Kam Fai, Dominic requires creditors of In-Work International Ltd to submit their proofs of debt by November 30, 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: Li Kam Fai Dominic Rooms 2107-8, Kai Tak Commercial Bldg 317-319 Des Voeux Road, Central Hong Kong KAI NGAI: Creditors' Proofs of Debt Due on October 27 ----------------------------------------------------- Creditors of Kai Ngai Printing & Paper Products Co Ltd are required to submit their proofs of debt to Liquidator Huen Ho Yin by October 27, 2006, for them to share in any distribution the company will make. The Liquidator can be reached at: Huen Ho Yin Units 3307-3312, 33/F West Tower, Shun Tak Centre 168-200 Connaught Road Centre, Sheung Wan Hong Kong OCEANIA CRUISE: Moody's Assigns B2 Corporate Family Rating ---------------------------------------------------------- Moody's Investors Service gave Oceania Cruise Holdings, Inc., these ratings: -- a corporate family rating of B2; -- an associated loss given default rating of LGD4, 50%; and -- a probability of default rating of B2. Moody's also assigned ratings to several bank facilities, subject to final documentation, that will be used to finance Oceania's acquisition of three identical cruise ships that it currently charters. The borrowers under the bank facility will be three newly formed subsidiaries (Newcos) that will each own one of the ships. The Newcos are owned by an intermediate holding company, Oceania Cruises, Inc., that is in turn owned by Oceania. The ratings reflect: -- Oceania's small market share; -- reliance on a small fleet of ships; and, -- limited operating history. Bond ratings assigned: -- US$25 million 5- year, senior secured first lien revolving credit facility guaranteed by Oceania and Oceania Cruises at B1, LGD 3, 41%. -- US$300 million 6-year, senior secured first lien term loan guaranteed by Oceania and Oceania Cruises at B1, LGD 3, 41%. -- US$75 million 7-year, senior secured second lien term loan guaranteed by Oceania and Oceania Cruises at Caa1, LGD 6, 92%. Oceania Cruise Holdings, Inc. owns three passenger identical cruise ships that each have 698 berths (2,094 in total) operating under the brand name of Oceania Cruises. The company targets the upper premium segment of the cruise industry with destination-oriented cruises that maximize on-shore activities. Oceania's principal areas of operation include the Mediterranean, Northern Europe, South America, the Caribbean and the Far East, including China, Thailand, Singapore and Hong Kong. The company was formed in 2002 and began operating in 2003 when it entered into a charter (lease) arrangement to operate the first of three ships. Oceania is headquartered in Miami, Florida. PETROLEOS DE VENEZUELA: Working with Enarsa to Audit Ayacucho 6 --------------------------------------------------------------- Petroleos de Venezuela SA, the state-run oil company of Venezuela, will sign in November a contract with Enarsa, its Argentine counterpart, for the audit of the hydrocarbon reserves at the Ayachucho 6 deposit in Venezuela, Business News Americas reports. According to reports, the Argentine public works ministry said that output at Ayacucho 6 in the Orinoco oil belt could reach 200,00 barrels per day. Julio de Vido, the planning minister of Argentina, has discussed with Rafael Ramirez -- Venezuela's mining and energy minister who also serves as the president of Petroleos de Venezuela -- a joint energy agenda. The meeting would allow Enarsa to perform exploitation work in Venezuela, through a partnership with Petroleos de Venezuela, BNamericas states. 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. POINT HARVEST: Members to Convene on November 14 ------------------------------------------------ Members of Point Harvest Ltd will hold a final general meeting on November 14, 2006, at 10:00 a.m., to receive an account of the company's wind-up and property disposal activities from Liquidator Chu Jeffy. The Liquidator can be reached at: Chu Jeffy Room 1807, West Tower Shun Tak Centre, 168-200 Connaught Road Central, Hong Kong PROTAN PLAZA: Creditors Proofs of Claim Due on November 13 ---------------------------------------------------------- Creditors of Protan Plaza Ltd are required to submit their proofs of claim to Liquidators Leung Moon Chuen and Wong Kai Wing by November 13, 2006. Failure to meet the requirement will exclude a creditor from sharing in any distribution Protan Plaza will make. The Liquidators can be reached at: Leung Moon Chuen Wong Kai Wing Room 1503 World Wide House 19 Des Voeux Road, Central Hong Kong SANMINA-SCI: Inks US$600 Million Term Loan Credit Agreement ----------------------------------------------------------- Sanmina-SCI Corp. entered into a Credit and Guaranty Agreement, dated Oct. 13, 2006, along with its subsidiaries, party thereto as guarantors, the lenders party thereto from time to time, Bank of America, N.A., as Administrative Agent, Citibank, N.A., as Syndication Agent, Deutsche Bank AG Cayman Islands Branch, as Documentation Agent, and Banc of America Securities LLC, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc., as Joint Book Managers and Joint Lead Arrangers. The Credit Agreement provides for a US$600 million senior unsecured term loan that matures on Jan. 31, 2008. The company drew down the US$600 million term loan simultaneously with the closing of the transaction. A portion of the proceeds of the term loan were used on Oct. 13, 2006, to effect, in accordance with the terms thereof, the satisfaction and discharge of the Indenture, dated March 15, 2000, by and between SCI Systems, Inc. and the trustee, pursuant to which SCI Systems, Inc., issued its 3% Convertible Subordinated Notes due 2007. In connection with the satisfaction and discharge of the Indenture, US$532,875,000 in cash was deposited with the trustee, which amount is equal to the principal and interest scheduled to be due and owing on the Notes on their maturity date, which is March 15, 2007. The company intends to use the remaining proceeds for working capital and general corporate purposes. Headquartered in San Jose, California, Sanmina-SCI Corporation is one of the largest electronics contract manufacturing services companies providing a full spectrum of integrated, value added solutions. The company has locations in China, Finland, Malaysia, Mexico and Singapore, among others. SANMINA-SCI: Moody's Rates US$600MM Sr. Unsec. Term Loan at Ba2 --------------------------------------------------------------- Moody's assigned a Ba2 rating to Sanmina-SCI Corp. 's proposed US$600 million unsecured term loan facility due 2008. The proceeds of the proposed US$600 million term loan will be used to finance US$525 million of Sanmina's 3% convertible subordinated notes due 2007. Sanmina's corporate family rating of Ba2 and all of its other outstanding ratings will remain under review for possible downgrade. Likewise, the new Ba2 rating on the proposed term loan facility will also be placed under review for possible downgrade. Moody's notes that Sanmina's debt ratings were placed under review for possible downgrade on Aug. 14, 2006, following Sanmina's announcement of the on-going investigation into its stock option administration practices and its confirmation that Sanmina would not be able to file with the Securities and Exchange Commission its 10-Q for the quarter ended July 1, 2006, by the required deadline as a result of the investigation. The ratings for the new facility reflects both the overall probability of default of the company, to which Moody's assigned a PDR of Ba2, and a loss given default of LGD 3. Sanmina announced on Oct. 12, that it has concluded its internal investigation of its stock options practices and that most stock option grants to executives and employees between 1997 and 2006 were not correctly dated. As a result, Sanmina will restate its financial statements for the past 9 fiscal years, though the amount of restatement has not been quantified. Moody's understands that cash impact from the restatement is not likely to be material. Although the conclusion of its internal investigation is an important step toward resolution, Moodys' notes that Sanmina is still under SEC and DOJ investigation, and has yet to file its financial statements for the July 1, 2006 quarter, a violation of its borrowing program covenant. Sanmina has obtained consent waivers from all of its debt holders, except for the holders of its 2007 subordinated convertible notes, which will be refinanced from the proceeds of the proposed term loan. Until Sanmina is able to file its financial statements within the waiver period granted by the lenders, Moody's concern over potential liquidity will remain and thus Sanmina's ratings continue to be under review for possible downgrade. Sanmina cited a general systemic controls failure as the cause for options dating errors and plans to implement a number of changes to improve internal control and accuracy of financial accounting. This controls failure raises concerns regarding the quality of corporate governance and controls at Sanmina. Assessment of these risks, as well as continued exposure to regulatory, legal and litigation risk, will be integrated into the ratings review. Moody's could move the ratings down if further concerns regarding weakness in internal controls, disclosure, or accounting controls emerge, if legal or regulatory action yielded material costs or effected senior management, or if concerns over its liquidity were to surface. Conversely, upon a favorable resolution of the SEC and DOJ investigations, and satisfactory liquidity coupled with the filing of the July 2006 quarterly report with non-material restatements within the consent waiver period, Sanmina's ratings could be confirmed. Leverage and credit metrics will not change as a result of the current refinancing. Pro forma this transaction, leverage is expected to be about 3.8 times to EBITDA (pre-restatement) and EBITDA to interest coverage about 3.4 times, again pre- restatement. Sanmina remains well positioned as a tier-one EMS provider and plays a critical role in the electronics supply chain. Moody's assigned and placed this rating under review for downgrade: -- US$600 million senior unsecured term loan due 2008 at Ba2 (LGD 3, 45%). Moody's reviews these ratings for possible downgrade: -- Corporate family rating at Ba2; -- Probability-of-default rating at Ba2; -- US$400 million senior subordinated notes due 2013 at Ba3 (LGD 5, 85%); -- US$600 million senior subordinated notes due 2016 at Ba3 (LGD 5, 85%); -- SCI Systems Inc.'s US$525 million 3% convertible subordinated notes due 2007 (guaranteed by Sanmina) at B1 (rating to be withdrawn upon refinancing); and -- SGL-1 speculative grade liquidity rating. Headquartered in San Jose, California, Sanmina-SCI Corp. is one of the largest electronics contract manufacturing services companies providing a full spectrum of integrated, value added solutions. The company has locations in China, Finland, Malaysia, Mexico and Singapore, among others. SUPER DATA: Creditors to Prove Debts by November 14 --------------------------------------------------- Creditors of Super Data Ltd are required to submit their proofs of debt by November 14, 2006, to Liquidator Ho Wai Ip. Failure to comply with the requirement will exclude a creditor from sharing in any distribution the Company will make. According to the Troubled Company Reporter - Asia Pacific, members of Super Data resolved to voluntarily wind up the company's operations on October 3, 2006. The Liquidator can be reached at: Ho Wai Ip c/o Alliance & Associates, CPAs Room 1903, 19/F., World-Wide House 19 Des Voeux Road Central Hong Kong T.S. CHAN: Joint Liquidators Ceases to Act for the Company ---------------------------------------------------------- Chan Siu Nam, Tony and Chan Siu Tong, Tom on October 6, 2006, ceased to act as joint and several liquidators of T. S. Chan Ltd. The former Liquidators can be reached at: Chan Siu Nam, Tony Chan Siu Tong, Tom Flat 302, 3/F, Grandview Mansion No. 1 Wang Fung Terrace, Tai Hang Road Hong Kong THERMAL INTERNATIONAL: Members to Receive Wind-Up Report -------------------------------------------------------- Members of Thermal International Ltd will hold a final general meeting on November 20, 2006, 10:00 a.m., to receive Liquidator Heng Poi Cher's account on the company's wind-up and property disposal exercises. The Liquidator can be reached at: Heng Poi Cher 44/F., China Resources Bldg 26 Harbour Road, Wanchai Hong Kong TREASURE MANAGEMENT: Liquidator to Receive Proofs Until Oct. 27 --------------------------------------------------------------- Treasure Management Company Ltd. intends to distribute second ordinary dividend to its creditors. In this regard, Liquidator Kong Chi How, Johnson will be accepting proofs of debt from the creditors until October 27, 2006. The Liquidator can be reached at: Kong Chi How, Johnson 29/F, Wing On Centre 111 Connaught Road, Central Hong Kong WAI YIP: Court to Hear Wind-Up Petition on November 15 ------------------------------------------------------ A petition to wind up Wai Yip Transportation Company Ltd will be heard before the High Court of Hong Kong on November 15, 2006. Ho Ping Fung presented the petition with the Court on September 18, 2006. The Solicitors for the Petitioner can be reached at: Joe Poon 34/F, Hopewell Centre 183 Queen's Road East, Wanchai Hong Kong YING YUE: To Pay First and Final Dividend ----------------------------------------- Ying Yue Garment Factory Ltd, as part of its liquidation proceedings, plans to pay its first and final dividend to preferential creditors on or after October 18, 2006. The payment will be administered at Room 1845, 18/F, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong. ========= I N D I A ========= BALLARPUR INDUSTRIES: Reports Better Results for 1Q FY 2007 ----------------------------------------------------------- Ballarpur Industries Limited posted its financial and operating results for the first quarter of fiscal year 2007 (July 1 to Sept. 30, 2006). "The current quarter's results continue to reflect a firm demand for paper," Ballarpur Industries said in press release. "The ongoing positive macroeconomic trends and a positive industry cycle are key factors for strengthening our optimistic outlook in the forthcoming quarters." In the release, Ballarpur compared figures from the 1st quarter of FY 2007 with the figures from the 1st quarter of FY 2006: -- Paper revenues increased to 17% to INR4,948.8 compared with INR4,229.5 million; -- Profit Before Interest, Depreciation, Taxation and Exceptional Items is higher by 14.7% at INR1,366.9 million compared with INR1,166 million; -- Profit Before Tax advances by 37.2% to INR75.9 million from INR548.9 million; -- Profit After Tax is higher by 31.8% at INR582.6 million compared with INR442 million; -- Quarterly EPS is at INR3.06 on a fully diluted basis; and -- The Company's cash generation from operations (PAT + Depreciation + Deferred Tax Liability + Amortization) has increased by 20.2% to INR1,074.1 million from INR893.7 million. Ballarpur also pointed out that production in Q1 FY 2007 total 114,396 mega tons compared to 97,493 MT in the same period last fiscal year. Ballarpur recorded total paper sales of 113,496 MT in Q1 FY 2007 compared with 98,257 MT in Q1 FY 2006. A full-text copy of Ballarpur's financial results for the quarter ended September 30, 2006, is available for free at: http://www.bilt.com/investor/30thSept2006.htm About Ballarpur Industries Headquartered in Ballarpur, India, Ballarpur Industries Limited -- http://www.bilt.com/-- is writing and printing paper company based in India. BILT has five product groups: coated wood-free, uncoated wood-free, copier, creamwove and business stationery. There are three types of products in the coated wood-free segment: two side coated paper, two side coated boards and single side coated products. The company is also a manufacturer and exporter of paper, with a presence in all segments of the usage spectrum that includes writing and printing paper, industrial paper and specialty paper On April 12, 2004, Standard and Poor's Ratings Service gave Ballarpur Industries BB- ratings for both its long-term local and foreign issuer credit. ICICI BANK: Raises US$400 Million From Five-Year Note Offering -------------------------------------------------------------- As widely reported, ICICI Bank raised US$400 million through the issuance of senior unsecured five-year notes. The notes are issued under the Bank's multi-currency US$1-billion medium-term note issuance program. The Bank intends to use the issue proceeds to meet funding requirements for its international operations and for general corporate purposes. The order book stood at US$1.1 billion with strong interest from investors across Asia and Europe, Zee News says, citing a press release issued by the Bank. According to FinanceAsia.com, the bond prices at a re-offer of 99.739% on a coupon of 5.875%, to yield at 5.396%, equating to a spread of 120.6bp over Treasuries or 73bp over mid-swaps The Troubled Company Reporter - Asia Pacific reported on October 18, 2006, that Standard & Poor's Ratings Services gave the five-year notes a 'BB+' rating. 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. On Oct. 16, S&P assigned its 'BB+' issue rating to its senior unsecured, five-year, fixed-rate U.S. dollar notes. ICICI BANK: Fitch Gives F1+(ind)(SO) Rating to Securitised Asset ---------------------------------------------------------------- Fitch Ratings has assigned an expected National Short-term rating of 'F1+(ind)(SO)' to the pass-through certificates to be issued by a special purpose vehicle, Loan Securitisation Trust Series. The transaction represents the securitisation of receivables from a short-term loan proposed to be purchased from ICICI Bank Limited. The final rating is contingent upon receipt of final documents conforming to information already received. The loan aggregates to INR300 million and is extended by ICICI to Apollo Tyres Limited ICICI proposes to assign the same loan and the underlying receivables to the issuer. The expected rating of the PTCs reflects the credit quality of the underlying obligor, the payment structure of the PTCs and the proposed legal opinions. The SPV will purchase the receivables from ICICI in trust for the benefit of the investors. After acquiring the receivables, the SPV will issue PTCs to the investors for a total consideration equivalent to the value of the discounted cash flows from the loan for the next 91 days. The proceeds from the issuance will be passed through to ICICI for the purchase of the receivables. ICICI will continue to service the loan as the collection and processing agent appointed by the trustee. The rating of the certificates is referenced to the credit quality of the underlying obligor. For this purpose, Fitch has carried out an internal analysis of Apollo, and hence takes the view that the credit strength of underlying obligor is sufficient to maintain the expected rating of the PTCs. 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. On Oct. 16, S&P assigned its 'BB+' issue rating to its proposed senior unsecured, five-year, fixed-rate U.S. dollar notes. PHARMANET DEVELOPMENT: Amends Revolving Credit Agreement -------------------------------------------------------- PharmaNet Development Group, Inc., has amended its credit financing agreement. As amended, the credit agreement provides the company with a US$45 million revolving credit facility and adjusts certain provisions of the credit facility. UBS AG, Stamford Branch, remains the administrative agent. "We are very pleased that the credit facility amendment has been completed," commented John P. Hamill, executive vice president and chief financial officer. "The amendment provides the company with additional operational flexibility." About PharmaNet PharmaNet Development Group Inc., -- http://www.pharmanet.com/- - formerly SFBC International, Inc., is a global drug development services company, providing a range of both early and late-stage clinical drug development services to branded pharmaceutical, biotechnology and generic drug and medical device companies around the world. The company conducts its operations in two segments: early stage and late stage clinical development. Early stage consists primarily of its Phase I clinical trial facilities, bioanalytical laboratories and clinical laboratories. Late stage consists of its subsidiary, PharmaNet, Inc., which primarily provides late Phase II through Phase IV services. Standard & Poor's Ratings Services affirmed its ratings on Princeton, N.J.-based contract research services provider PharmaNet Development Group Inc., formerly known as SFBC International Inc., including the 'B+' corporate credit rating. The ratings were removed from CreditWatch, where they were placed with negative implications on May 11, 2006. The outlook is negative. PHARMANET DEVELOPMENT: Appoints P. Tombros & R. Classon to Board ---------------------------------------------------------------- PharmaNet Development Group, Inc., has appointed Peter Tombros and Rolf Classon to its Board of Directors. "One of our priorities has been to appoint new members to the Board," commented Jeffrey P. McMullen, president and chief executive officer. "In addition to their vast industry knowledge, Peter and Rolf are team-oriented, seasoned board members who can help guide the Company into the future with a shared vision and commitment to employees, customers, suppliers and shareholders." The Board appointed Mr. Tombros to fill the vacancy created by the resignation of one of its directors. Mr. Tombros will serve until the Annual Meeting of Stockholders of the Company to be held in 2007. Mr. Tombros is currently Professor, distinguished executive in residence at Pennsylvania State University. Previously, he served as chairman and chief executive officer of VivoQuest, Inc., a drug discovery company, from 2002 to 2005 and president and chief executive officer of Enzon Pharmaceuticals, Inc., a biopharmaceutical company, from 1994 to 2001. Mr. Tombros spent much of his career at Pfizer Inc., where he held various positions of increasing responsibility including vice president strategic planning and vice president investor relations from 1990 to 1994, executive vice president, Pfizer Pharmaceuticals from 1986 to 1990, senior vice president and general manager, Roerig Division, from 1980 to 1986, vice president marketing of Pfizer Laboratories Division from 1975 to 1980 as well as other marketing positions within Pfizer laboratories Division from 1968 to 1975. "Having devoted his career to drug development, Peter's experience in the pharmaceutical and biotechnology industries will be an asset to the Board," commented Jack Levine, chairman. "His knowledge, industry perspective and solid track record will help direct PharmaNet Development Group to build upon and execute its strategies." On Oct. 2, upon the recommendation of the Nominating Committee, the Board increased the size of the Board from six members to seven members, and appointed Mr. Classon to fill the vacancy. Mr. Classon will serve until the Annual Meeting of Stockholders of the Company to be held in 2007. Mr. Classon served as interim president and chief executive officer of Hillenbrand Industries from May 2005 to March 2006 at which time he was appointed non-executive chairman, having previously retired as chairman, executive committee from Bayer Healthcare in 2004. Previously, he held the positions of president of Bayer Diagnostics from 1995 through 2002 and executive vice president Bayer Diagnostics from 1991 to 1995 and in these positions orchestrated a major turnaround and strategically strengthened the company through acquisitions and alliances. From 1990 to 1991, Mr. Classon was president and chief operating officer of Pharmacia BioSystems AB and in this role implemented a major restructuring that resulted in improved profits and performance. He was president Pharmacia Development Company from 1984 to 1990 and president of Pharmacia AB Hospital Products Division from 1981 to 1984. Prior to joining Pharmacia in 1981, he served in general and organizational management roles and consulted to the pharmaceutical industry. "Rolf has had significant success managing and improving complex, global businesses," commented Jack Levine, chairman. "His guidance will assist PharmaNet Development Group to grow and expand its footprint around the world." The Board determined that each of Mr. Tombros and Mr. Classon has no relationship with the Company or its subsidiaries, either directly or indirectly, that would be inconsistent with a determination of independence under the applicable rules and regulations of NASDAQ or the Securities and Exchange Commission. Neither Mr. Tombros or Mr. Classon nor any member of his immediate family has engaged, directly or indirectly, in any transaction, or series of similar transactions, with the Company or any of its subsidiaries since Jan. 1 in which the amount involved exceeds US$60,000. In addition, neither Mr. Tombros, nor Mr. Classon has any family relationship with any executive officer or director of the Company. The Board is in the process of determining which Committees Mr. Tombros and Mr. Classon will serve, if any. Mr. Tombros and Mr. Classon will receive compensation for serving on the Board pursuant to the Board compensation plan that was previously disclosed in the Company's filings with the SEC. About PharmaNet PharmaNet Development Group Inc., -- http://www.pharmanet.com/- - formerly SFBC International, Inc., is a global drug development services company, providing a range of both early and late-stage clinical drug development services to branded pharmaceutical, biotechnology and generic drug and medical device companies around the world. The company conducts its operations in two segments: early stage and late stage clinical development. Early stage consists primarily of its Phase I clinical trial facilities, bioanalytical laboratories and clinical laboratories. Late stage consists of its subsidiary, PharmaNet, Inc., which primarily provides late Phase II through Phase IV services. Standard & Poor's Ratings Services affirmed its ratings on Princeton, N.J.-based contract research services provider PharmaNet Development Group Inc., formerly known as SFBC International Inc., including the 'B+' corporate credit rating. The ratings were removed from CreditWatch, where they were placed with negative implications on May 11, 2006. The outlook is negative. QUEBECOR WORLD: Moody's Lowers Corporate Family Rating to B1 ------------------------------------------------------------ Moody's Investors Service downgraded the Corporate Family Rating of Quebecor World (USA) Inc. to B1 from Ba3, and moved this benchmark rating to the parent company, Quebecor World Inc. Related ratings were impacted as listed below. The outlook for all ratings is negative. This action resolves the review initiated in July 2006 as a result of poor operating results in the first half of the year. The Corporate Family Rating has been moved back to QWI as Moody's rates the family based upon the consolidated financials of QWI. The B1 Corporate Family Rating of Quebecor World Inc. primarily reflects various measures of high leverage, and continued poor operating performance in an industry undergoing secular decline. The rating is supported by the company's scale and diversity, by the potential that the company's expenditures on new printing presses will improve margins, and by management's ongoing efforts to rationalize operations. The rating outlook is negative because Quebec World Inc.'s credit metrics will remain below the current B1 rating unless further operating margin improvements are achieved from the new presses and restructuring efforts, and this is not assured. The company's plan to improve its cash flow may be constrained by industry dynamics outside management's control. Reinstatements: Quebecor World, Inc. -- Speculative Grade Liquidity Rating, Reinstated to SGL-3; and -- Corporate Family Rating, Reinstated to B1 Outlook Actions: Quebecor World (USA) Inc. -- Changed To Negative From Rating Under Review Quebecor World Capital Corp. -- Changed To Negative From Rating Under Review Quebecor World Capital ULC -- Changed To Negative From Rating Under Review Quebecor World, Inc. -- Changed To Negative From Rating Withdrawn Withdrawals: Quebecor World (USA) Inc. -- Speculative Grade Liquidity Rating, Withdrawn, previously rated SGL-3; and -- Corporate Family Rating, Withdrawn, previously rated Ba3. LGD Ratings: Quebecor World Inc. -- PDR: B1 assigned Quebecor World (USA) Inc. -- PDR: Rating withdrawn; and -- US$130 million Convertible Senior Subordinated Notes, B3 downgraded from B2, LGD6, 94% Quebecor World Capital (ULC) -- US$450 million Senior Notes due 2016, B1 downgraded from Ba3, LGD4, 50% Quebecor World Capital Corp. -- US$200 million Senior Notes due 2008, B1 downgraded from Ba3, LGD4, 50%; -- US$400 million Senior Notes due 2013, B1 downgraded from Ba3, LGD4, 50%; -- US$150 million Senior Debentures due 2007, B1 downgraded from Ba3, LGD4, 50%; and -- US$150 million senior Debentures due 2007, B1 downgraded from Ba3, LGD4, 50%. The company has global facilities, including in India, France and Argentina. RELIANCE INDUSTRIES: Releases Half-Year 2006 Financial Results -------------------------------------------------------------- Reliance Industries Limited released its unaudited results for the half-year period ended September 30, 2006. Reliance reported a net profit of INR5,256 crore (US$1,144 million), which is the highest in the private sector. The company's performance highlights for the half-year ended September 30, 2006, are: -- Turnover increase by 30% from INR42,777 crore to INR55,716 crore (US$12,132 million). -- Operating Profit increase by 15% from INR7,694 crore to INR8,868 crore (US$1,931 million). -- Cash Profit (before depreciation and deferred tax) increase by 13% from INR6,739 crore to INR7,591 crore (US$1,653 million). -- Net Profit increase by 10% from INR4,791 crore to INR5,256 crore (US$1,144 million). -- Earnings Per Share for the half-year is INR37.7 (US$0.82). -- Contribution to the national exchequer, for the half-year in the form of various taxes is INR6,015 crore (US$1,310 million). -- The Company's production of oil & gas and petrochemicals, including toll conversion, increased by 14% from 6.54 million tonnes to 7.48 million tonnes. -- Refinery operated at 94.9% of capacity and processed 15.7 million tonnes of crude. -- Exports of manufactured products increased by 115% from INR15,176 crore to INR32,683 crore (US$7,117 million). Exports during the half year are equivalent to previous full year's exports of INR32,691 crores. The Company has also reconciled its profits with US GAAP. Reconciliation of Net Profit as per Indian GAAP and US GAAP is as under: Indian GAAP U.S. GAAP ------------------- --------------------- INR Crs US$ Mil. INR Crs US$ Mil. ------- -------- ------- ---------- Net Profit 5,256 1,144 4,453 1,187 Difference 197 43 The difference is mainly on account of consolidation of subsidiaries and associates and effects of exchange variation. Commenting on the results, Chairman Mukesh Ambani said: "I am happy with RIL's performance considering the challenges faced by us due to the volatility both in crude and product prices along with the natural calamity faced by us at our Hazira plant. Our superior product portfolio helped us in de-risking our business to enhance shareholder value." Business Review Oil & Gas High oil and gas prices have led to a significant momentum in the E&P industry globally. Despite challenges in discoveries of new reserves, E&P companies world over are using their strong cash flows in investing sizably in their exploration initiatives along with exploiting current production levels. This has in turn led to a spurt in E&P activities resulting in tight rig availability and increased rig rentals, coupled with increase in cost of related services. As a forerunner in the E&P sector in India, the Company's business strategy is aimed at enhancing vertical integration in its energy business and capturing the value across the entire energy chain. The Company's oil and gas business provides a strong commitment towards strengthening India's energy security. The Company is the largest exploration acreage holder among the private sector companies in India with 34 domestic exploration blocks covering an area of about 331,000 square kilometers. The Company also has five coal bed methane blocks in India covering an area of about 4,000 sq kms. Additionally, the Company also has interests in one exploration block each in Yemen, Oman and East Timor. Exploration Review Processing and interpretation of acquired seismic and other data continues to be amongst the key initiatives at the Company's E&P business. Advance techniques such as multi-beam and electromagnetic surveys are conducted in order to unveil the potential existence of hydrocarbons. During the period under review, two exploratory wells were drilled during the period in block SR-01 and block KGIII5 with drilling depth of 4,600 meters and 3,904 meters respectively. Two hydrocarbon zones in SR01 and in KGIII5 were encountered during drilling and the same have since been notified to Director General of Hydrocarbons. In order to further strengthen the prospects of its E&P business, the Company has bid for 21 blocks in the recently concluded NELP VI. This round of bidding witnessed high level of participation by leading international players, demonstrating India's potential in the hydrocarbon business. Results of this round of bidding are expected to be announced by the end of October 2006. KGD6 Block The development of Dhirubhai 1 & 3 discoveries of KGD6 is progressing as per plan. Orders for all critical long lead items for offshore and onshore installations have been awarded. Field engineering update for Onshore Terminal has been completed and detailed engineering is progressing on schedule. Site filling for the Onshore Terminal and infrastructure area has been completed and construction work is also under progress. Drilling of four development wells is slated to commence later this year. The development plan envisages initial plateau production of 40 MMSCMD from KGD6 with the provision of modular expansion to address potential discoveries. Options for higher plateau production from the area are being evaluated on the basis of an upside potential in the Block. This initiative entails implementing one of the world's largest deep-water gas development projects. PMT Blocks The Panna-Mukta blocks produced 804,513 MT of crude oil and 707 MMSCM of natural gas during the first half of FY 2006-07. Production from Tapti was at 49,822 MT of condensate and 942 MMSCM of natural gas during the same period. Production in these blocks was hampered in August 2006 due to floods in ONGC's facility at Hazira. The expansion plan at the Panna-Mukta Block is on schedule and is aimed at increasing production to 6.2 MMSCMD of gas and 52,000 BOPD of oil. Installations of platforms and in-field pipelines have been successfully completed with the remaining development work to be completed in 2007. The Revised Plan of Development for the Tapti block which is aimed at incremental recovery of 5.7 MMSCMD of gas is also progressing on schedule. All major contracts are being awarded and the project is planned to go on stream in 2007. CBM Blocks The exploration program in the CBM blocks of the Company is also progressing as per plan. Gas in place estimates of 3.65 TCF at the Sohagpur East and West blocks have been concurred by the Director General of Hydrocarbons. Preparation of the development plan is in progress and efforts are on to produce CBM by 2009 for the first time in India. Overseas Blocks The development plan for the block in Yemen was approved by the concerned Ministry. Drilling of development wells is under progress. In the block in Oman, a seismic vessel for 2D and 3D acquisition was mobilized and data acquisition has commenced. Additionally, the Company was awarded one deepwater offshore block in East Timor Leste and the PSC is expected to be signed in 2007. Refining & Marketing During the first half of FY 2006-07, domestic demand for petroleum products increased by 2.2%. The consumption of HSD, which accounts for more than a third of the total consumption of petroleum products, registered a growth of 6.7%. Demand for LPG increased by 2.3%, MS increased by 6.4% against the corresponding period of the previous year. The demand for ATF was strong and registered an increase of 25.8%. On the other hand, consumption of Naphtha reduced by 13% due to replacement by lower priced Natural Gas and higher hydel power generation. During the same period, the average prices of WTI, Brent and Dubai were US$70.5 per barrel, US$69.7 per barrel and US$65.5 per barrel respectively while the peak prices for the same period were at US$77.0 per barrel, US$78.7 and US$72.3 per barrel respectively. The International Energy Agency has projected a world oil demand growth of 1.1 million b/d in 2006. Factors such as improved global refining utilization, lower turnaround rate, end of peak driving season in US and continued fuel switching in China and US, led to a fall in refining margin across all regions. Singapore complex margin for the period July to September 2006 averaged at US$4.75 per barrel as compared to US$8.13 per barrel in corresponding period last year. The Company's EBIT margin for refining business declined to 6.4% in Q2 FY07 from 8.2% last year. At the absolute level, the EBIT was lower by 3% at INR1,489 crore. EBIT margin was lower primarily due to softening of GRM for the quarter which declined to US$9.1/bbl in Q2 FY07 from US$10.4/bbl in the corresponding previous period. The Company's complex refinery is uniquely positioned to benefit from scenario of high light -- heavy differential. On a half-year basis, refining EBIT increased to INR3,524 crore, an increase of 6% over the corresponding previous period. However, the EBIT margin for the refining business declined to 8.0% in H1 FY07 as compared to 9.6% in the corresponding previous period. Reliance's refinery achieved capacity utilization of 94.9% and processed 15.7 million tonnes of crude. This utilization rate compares favorably with those for other refineries, both in India and abroad, at 88% for North America, 85% for Europe, and 86% in the Asia Pacific region. Exports of refined products increased to 8.76 million tonnes as compared to 5.18 million tonnes last year. Exports of refined products contributed to revenues of US$5.5 billion. This demonstrates the superior capability of the Company's world class refinery that can cater to the global markets. In the domestic market, prices at the retail fuel stations remained unchanged thereby leading to under-recovery for private players. Lack of a level playing field in terms of preferred treatment to the Government-owned Oil Marketing Companies necessitated the Company's decision to increase prices in order to reflect the true crude price scenario. The Company has made a representation to the Government to ensure a level playing field for private marketing companies. As a result of higher pricing, the Company lost its market share in the retail business. Owing to substantial decline in off take, the Company also offered a support scheme to its dealers to tide over the prevailing situation. With recent moderation in international crude prices, the Company has reduced the differential in retail selling prices compared to Government-owned Oil Marketing Companies. The Company would explore all measures to protect full capacity utilization until such time a level playing field is achieved. Petrochemicals The Company continues to benefit from its unique positioning as a fully integrated, globally competitive petrochemical producer. In the petrochemicals business segment, the Company's EBIT margin improved significantly to 16.2% in Q2 FY07 from 15.7% last year. At the absolute level, the EBIT was higher by 38% at INR1,764 crore, a record performance. Within the petrochemicals business, polymer products and fibre intermediates witnessed strong margins on account of lower naphtha cracks for most part of the quarter. This was partially offset by lower margins in the polyester business due to high fibre intermediate prices. On a half-year basis, Petrochemicals EBIT increased to INR2,851 crore, an increase of 32% over the corresponding previous period. However, the EBIT margin for the petrochemicals business declined to 13.8% In H1 FY07 as compared to 14.6% in the corresponding previous period. In August 2006, some plants at the Company's Hazira complex had to be shut down due to flooding in the Tapi River. In addition to production loss of 63,000 tonnes, there was an additional cost of INR34 crore (US$7 million). The same has been included under the "Other Expenditure" section. Polyester The recent commissioning of an additional polyester capacity of 550,000 tonnes per year makes Reliance the world's largest producer of polyester fibre and yarn with a combined capacity of 2 million tones. Domestic demand for polyester registered a growth of 7% during the first half of the year. Demand growth was adversely affected by floods in major consumption centers and volatile raw material prices. During the half-year, production volumes of PFY, PSF and PET increased by 32% to 725,000 tonnes. The recently commissioned polyester facilities are operating at high utilization rates and production is being absorbed in the domestic and international markets. Reliance has a domestic market share of 57% in polyester products (PFY, PSF and PET). Reliance has maintained its focus on specialty products. Niche products constitute 57% of its PSF production and 32% of its PFY production. With the integration of Trevira, Reliance now has the most diversified portfolio globally in polyesters across commodity, specialty and niche products. Production of PX, PTA and MEG, at 1,943,000 tonnes increased by 20% compared to corresponding period of the previous year. In July 2006, the Company commissioned a 730,000 tonnes per annum PTA plant at Hazira. Commissioning of integrated polyester and PTA plants is timed in line with growing demand. Reliance is one of the world's largest manufacturers of polyester intermediates. Reliance is world's 3rd largest producer of PTA, 4th largest producer of PX and the 5th largest producer of MEG. Reliance's share in the domestic market for fibre intermediates (PX, PTA and MEG) stood at 82% collectively. Polymers Reliance is India's largest producer of polymers (PP, PE and PVC) having a market share of 45%. Reliance is the world's 7th largest producer of PP. The domestic demand for polymers grew marginally by 1% primarily on account of higher prices. Declining polymer prices towards the end of the second quarter resulted in downstream processors adopting a 'wait and watch' approach leading to a lower off-take by the end of the quarter. Production volumes of PP, PE and PVC increased by 7% to 1,032,000 tonnes primarily due to expansion of its PP capacity. During the half-year, Reliance produced 389,000 tonnes of ethylene, representing a decrease of 8% over corresponding previous period and 187,000 tonnes of propylene, representing a decrease of 7%. The decrease in production was due to the planned shut down of cracker plant during the half-year under review. Chemicals Production of Linear Alkyl Benzene at 61,500 tonnes was higher by 10% compared to the corresponding period of the previous year. Reliance's market share in LAB stood at 26%. The Butadiene plant at Hazira produced 44,500 tonnes during the first half of the year. Financial Review Turnover for the half-year ended September 30, 2006, was INR55,716 crore (US$12,132 million), up 30% from the corresponding previous period. Net profit for the half-year increased 10% to INR5,256 crore (US$1,144 million). Other income decreased from INR416 crore to INR66 crore (US$14 million) on account of decrease in interest income due to utilization of surplus funds primarily for investment in RPL Consumption of raw materials increased by 41% from INR28,769 crore to INR40,537 crore (US$8,827 million) primarily on account of higher crude prices. Employee cost increased by 18% from INR512 crore to INR602 crore (US$131 million). This increase was mainly on account of performance linked incentives and increments. Reliance's employee cost as a percentage of sales is at 1% to 1.5%, which is very competitive to its global peers. Other expenditure, which includes conversion costs, selling expenses, sales tax, repairs and maintenance, excise duty on stock, and establishment expenses increased by 7% from INR4,232 crore to INR4,555 crore (US$992 million), mainly on account of higher selling expenses owing to higher exports. During the first week of August 2006, some plants at the Hazira Manufacturing facility of the Company were shut down due to flooding of the Tapi river. Additional expense of INR34 crore (US$7 million) have been incurred to restore operations of the Hazira Plant which has been included under "Other Expenditure". Operating profit before other income, increased by 21% from INR7,278 crore to INR8,802 crore (US$1,917 million). Despite higher selling prices our operating profits were impacted due to higher raw material cost. Net operating margin during the half- year was 16.6% compared to 18.9% in the corresponding previous period. Interest expenditure increased by 19% from INR458 crore to INR544 crore (US$118 million) on account of increase in borrowings and exchange differences. The outstanding debt as on September 30, 2006, was INR24,288 crore (US$5,289 million) compared to INR21,866 crore as on March 31, 2006, and INR16,845 crore on September 30, 2005. Net gearing during the half year was 29% compared to 25% on March 31, 2006. Interest cover during the half year was 8.8 compared to 7.7 on March 31, 2006. RIL has a highest credit rating of AAA from Crisil, and investment grade rating of Baa2 and BBB from Moody's and S&P respectively. RIL's international rating from both Moody's and S&P is above the sovereign rating of India. Depreciation charge for the half-year increased from INR1,595 crore to INR1,925 crore (US$419 million). This increase was primarily on account of depreciation on assets capitalized during the current quarter and also last quarter of 2005-06. Profit before tax increased by 13% from INR5,640 crore to INR6,399 crore (US$1,394 million). Provision for taxation increased by 48% from INR497 crore to INR733 crore (US$160 million), which includes Fringe Benefit Tax of INR15 crore (US$3 million). Provision for deferred tax increased by 16% from INR352 crore to INR410 crore (US$89 million). Profit after taxation increased by 10% from INR4,791 crore to INR5,256 crore (US$1,144 million). Capital expenditure during the half-year was over INR3,543 crore (US$771 million) primarily on account of exploration & production, implementation of value maximization projects and other capital expenditure. During the half-year, RIL acquired 90 crore equity shares of Reliance Petroleum Ltd at INR60 per share. Consequent to RPL's 20% share issue to public and 5% stake sale to Chevron by RIL, RIL now holds 75% equity stake in RPL at an investment of INR6,750 crore (US$1,470 million). About Reliance Industries Reliance Industries Limited -- http://www.ril.com/-- is engaged in the exploration and production sector. The company is organized into three major business segments, which include Exploration and Production of oil and gas; Refining and Marketing of petroleum products, and Petrochemicals, including the manufacturing and marketing of polymers, polyester, polyester intermediates and chemicals. RIL's operations capture value addition at every stage, from the production of crude oil and gas to polyester, polymer and chemical products, and finally to the production of textiles. RIL also has exploration and production interests in India, Yemen and Oman. The company operates mainly in India but has business activities and customers in more than 100 countries around the world. Fitch Ratings gave Reliance Industries Ltd's foreign currency long-term debt, long-term issuer default and local currency long-term debt BB+ ratings effective on December 15, 2005. Moody's Investors Service gave the company 'Ba2' long-term corporate family, issuer, and senior unsecured debt ratings effective March 17, 2005. UNION BANK OF INDIA: Fitch Upgrades Individual Rating to C/D ------------------------------------------------------------ Fitch Ratings assigned National Long-term ratings to the following debt programmes of Union Bank of India: * INR4 billion subordinated debt programme: 'AA+(ind)'; * INR10bn upper Tier 2 bonds issue: 'AA(ind)'; and * INR3bn perpetual Tier 1 bonds issue: 'AA(ind)'. At the same time, the agency upgraded UBI's Individual rating to 'C/D' from 'D' and affirmed all the other ratings as follows: * National Long-term rating at 'AA+(ind)'; and * Support rating at '3'. The Outlook on the ratings is Stable. The INR5bn subordinated debt issued in September 1999 and INR1bn subordinated debt issued in February 2001 have been paid in full. The domestic perpetual Tier 1 and the Upper Tier 2 bond issues are rated one notch below the National Long-term rating of the bank, which is in accordance with Fitch's criteria for rating such instruments. The Upper Tier 2 capital has a tenure of 15 years and both issues have a call and coupon step-up after 10 years. Interest on both the issues is not payable if the capital adequacy ratio is below the regulatory minimum (currently at 9%). While interest on the Upper Tier 2 capital is cumulative, interest on the perpetual Tier 1 capital is not. Redemption of the issues will require the prior approval of the Reserve Bank of India. The upgrade of the individual rating reflects UBI's established business franchise with a pan-India presence and fairly large size, together with improved asset quality numbers. The gross non-performing loans ratio improved to 3.8% as at FYE06 from 9% as at FYE03 due to lower NPL accretions and a focus on recoveries. While the gross NPL ratio was slightly higher than the system median (3.3% as at FYE06), the bank plans to tighten its credit processing and monitoring systems. UBI's loan loss coverage remained adequate at 60% as at FYE06. The 'core- banking software' covers 75% of UBI's business and supports its plans of centralising the credit processing function. The Tier 1 capital ratio improved to 7.3% as at FYE06 on the back of an equity issue of INR4.95bn in February 2006. However, the total capital adequacy ratio declined to 11.3% as at FYE06 due to loan growth and increased regulatory charge on market risks. Decline in the net interest margins affected profitability in FY06. While the cost of deposits has increased, UBI expects to maintain its NIM by re-pricing its loan book, a process that commenced in May 2006 when it raised its benchmark lending rate by 50 basis points. UBI is the seventh-largest Indian bank in terms of total assets with a market share of about 3.7% of deposits. The bank has now diversified its loan portfolio to include retail and infrastructure (9.5%) lending. About the Bank Union Bank of India -- http://www.unionbankofindia.com/-- is one of the ten largest Indian banks with total assets of over INR800 billion as on March 31, 2006. Union Bank was incorporated in 1919 at Mumbai and was nationalized during the first round of bank nationalization in 1969. Until August 2002, GoI fully owned the bank; currently, GoI has a 55% stake. The bank has a nationwide presence with a geographically diversified branch network. As of March 31, 2006, it had 2,082 branches and 145 extension counters. For the year ended March 31, 2006, Union Bank reported a PAT of INR6.7 billion on total income (net of interest expenses) of INR23.74 billion. For the quarter ended June 2006, the bank reported a PAT of INR1.7 billion (INR2.4 billion for the corresponding period of the previous year) on a total income of INR6.35 billion. * * * Moody's Investors Service gave the bank's foreign long-term bank deposits a Ba2 rating. UNION BANK OF INDIA: Posts 218% Increase in 2nd Quarter Profit -------------------------------------------------------------- The Union Bank of India released its financial results for the quarter and half-year periods ended September 30, 2006. For the second quarter ended September 30, 2006, Union Bank posted a net profit of INR194 crore, a 218% growth compared with the INR61 crore net profit reported for the same quarter in 2005. Total income increased by 25.9% from INR1,560 crore in the quarter ended Sept. 30, 2005, to INR1,964 crore for the second quarter of 2006. As for the half-year period, the net profit of INR361 crore for the half-year ended September 2006 showed growth of 19.93% from the same period last year. The Bank's operating profit for the half-year ended Sept. 2006 improved to INR855 crore showing growth of 20.42% over September 2005. Total business grew by 20.49% YoY from INR116,171 crore as of Sept. 30, 2005, to INR1,39,972 crore as on Sept. 30 this year, the Bank points out in a press release. A full-text copy of the Bank's press release with the financial results as of September 30, 2006, is available for free at: http://ResearchArchives.com/t/s?13ca ================= I N D O N E S I A ================= BANK NEGARA: Evaluates Non-Performing Loans for More Debt Cuts -------------------------------------------------------------- PT Bank Negara Indonesia Tbk is now analyzing its non-performing loans, totaling IDR4.7 trillion, in order to differentiate which are adequate to have debt cuts and which are not, Tempo Interactive reports. Tempo cites Bank Negara Managing Director Sigit Pramono as saying that out of the Bank's IDR10.1-trillion total NPLs, around IDR5.4 trillion will be solved through restructuring without debt cuts. He added that Bank Negara will further analyze the remaining NPL, around IDR4.7 trillion. Mr. Sigit, according to the report, also said that Bank Negara will soon sign a IDR1.4-trillion credit restructuring agreement with a large group. Mr. Sigit, however, clarified that that not all debtors would receive haircuts. He said that only those that really qualify -- for example because of external factors such as exchange rates or disasters -- would make it to the cut. As reported by the Troubled Company Reporter - Asia Pacific on Oct. 20, 2006, Bank Negara, as of October 16, had finished the restructuring of IDR3.4 trillion-worth of NPLs, and expected that figure to increase to IDR5.4 trillion by the end of the year. This would help bring down the Bank's NPL level by some 2%. According to Tempo, the amount of NPLs that Bank Negara has restructured up until October 16 is higher compared to the total in September, which reached IDR3.13 trillion. Of this IDR3.13 trillion, the report says, the 20 biggest debtors contributed around IDR900 billion. About Bank Negara Headquartered in Jakarta, Indonesia, PT Bank Negara Indonesia (Persero) Tbk -- http://www.bni.co.id-- is a financial institution with products and services that include: Individual, Business, Syariah, Micro Banking, and Online Feature. The Bank has approximately 700 correspondent banks, 914 local branches and five oversea branches located in New York, London, Tokyo, Hong Kong and Singapore. The bank has five subsidiaries: PT BNI Multi Finance, a financial services company; PT BNI Securities, a securities company; PT BNI Life Insurance, an insurance provider; PT BNI Nomura Jafco Manajemen Ventura, a venture capital company, and PT BNJI Ventura Satu, a venture capital company. * * * As reported in the Troubled Company Reporter - Asia Pacific on May 22, 2006, Moody's Investors Service has lifted Bank Negara Indonesia's senior debt rating to B1 from B2, and long-term deposit rating to B2 from B3. The revised ratings carry a stable outlook. Bank Negara's short-term deposit rating of Not- Prime, and bank financial strength rating of E are unaffected. Another TCR-AP report on May 24, 2006 stated that Fitch Ratings affirmed Bank Negara's: * Long-term Foreign and Local Currency Issuer Default Ratings at 'BB-'; * Short-term rating at 'B'; * Individual rating at 'D'; and * Support rating at '4'. Further, another subsequent TCR-AP report on July 17, 2006, said that Standard & Poor's Ratings Services revised the outlook on the local currency counterparty credit rating on Bank Negara to stable from positive. At the same time, Standard & Poor's affirmed its foreign and local currency ratings on BNI (B+/Stable/B). CA INC: Adopts New Stockholder Protection Rights Agreement ---------------------------------------------------------- CA Inc.'s board of directors has unanimously adopted a Stockholder Protection Rights Plan. In response to feedback from CA stockholders and to address corporate governance concerns associated with rights plans, the company will ask its stockholders to vote on its Rights Plan at its 2007 Annual Meeting. In connection with the adoption of the Rights Plan, the company declared a dividend of one right on each outstanding share of CA's common stock. The dividend will be paid on November 30, 2006 upon expiration of CA's existing rights plan to stockholders of record on Oct. 26, 2006. The Rights Plan was not adopted in response to any specific effort to acquire control of the company and is not intended to prevent a takeover at a full and fair price. In addition to the customary "flip-in" and "flip-over" provisions, the Rights Plan includes a number of features adopted in response to recommendations by stockholders, including setting the threshold for triggering exercise of the Rights Plan at 20 percent of the outstanding shares rather than 15 percent; a fixed term for the Rights Plan of only three years instead of ten; and a provision requiring a committee of independent directors to assess annually whether the Rights Plan remains in the best interests of CA's stockholders. The Rights Plan also includes a provision that states that the Rights Plan will not be triggered by a "Qualifying Offer" if holders of at least 10% of the outstanding shares of common stock request that a special meeting of stockholders be convened for the purpose of exempting such offer from the Rights Plan, and thereafter the stockholders vote at such meeting to exempt such "Qualifying Offer" from the Rights Plan. "CA believes this Rights Plan, which has features similar to those approved by stockholders at other companies, strikes an appropriate balance between empowering the Board of Directors to use a Rights Plan to increase its negotiating leverage to maximize stockholder value and the current best practices in corporate governance that give stockholders a voice in such process," said Lewis Ranieri, chairman of the Board of Directors. "The 'Qualifying Offer' provision of the Rights Plan provides our stockholders the ability to express their preference for or against the offer while also providing our Board with the time to attract and secure potentially superior alternatives to maximize stockholder value. In addition, the annual review of the Rights Plan by independent directors is intended to ensure that the Rights Plan only remains in place if it continues to be in the best interests of the company and its stockholders." Headquartered in Islandia, New York, CA Inc. (NYSE:CA) -- http://www.ca.com/-- is an information technology management software company that unifies and simplifies the management of enterprise-wide IT. Founded in 1976, CA serves customers in more than 140 countries. In the Asia-Pacific region, the company has operations in Indonesia, Australia, China, Japan, Hong Kong, India, Philippines and Thailand. CORUS GROUP: Takeover Offer Cues S&P to Put Rating on Watch Pos. --------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'BB' long-term corporate credit rating on U.K.-based steel consortium Corus Group PLC on CreditWatch with positive implications following the announcement by Corus concerning a possible recommended offer for the company from Tata Steel Ltd., India's second largest integrated steel company. At the same time, Standard & Poor's placed its 'BB+' senior secured bank loan ratings on Corus and its 'BB-' senior unsecured debt ratings on Corus and related entity Corus Finance PLC on CreditWatch with positive implications. The 'B' short- term corporate credit rating on Corus was also placed on CreditWatch with positive implications. "The CreditWatch placement reflects the possibility that the ratings on Corus could be raised if the transaction materializes, given the higher ratings on, and credit quality of, Tata Steel," said Standard & Poor's credit analyst Alex Herbert. "We note that there can be no certainty that an offer will be made, but we consider there to be sufficient justification for a CreditWatch placement at the current time." In resolving the CreditWatch placement, Standard & Poor's will assess whether Corus' weak business risk profile would be enhanced, and how such a transaction would be financed. Furthermore, the rating agency will consider the potentially substantial integration challenges. Standard & Poor's will seek to resolve or update the CreditWatch within 90 days. Following the announcement of a possible recommended offer for Corus, Tata Steel has been placed on CreditWatch with negative implications. Corus Group PLC -- http://www.corusgroup.com/-- produces metal from its major operating facilities in the U.K., the Netherlands, Germany, France, Norway, Belgium and Canada. Corus turns over GBP10 billion annually and employs 47,300 in over 40 countries and sales offices and service centers worldwide, including Indonesia and the Philippines. Corus was created through the merger of British Steel plc and Koninklijke Hoogovens N.V. CORUS GROUP: Fitch Places BB- Default Rating on Watch Positive -------------------------------------------------------------- Fitch Ratings placed Corus Group Plc's Issuer Default and senior unsecured BB-, and Short-term B ratings on Rating Watch Positive. This follows its announcement regarding a possible recommended offer for the company from India-based Tata Steel Ltd. The RWP also applies to the debt instruments issued by CS: -- CS EUR800 million 7.5% senior notes; -- CS EUR307 million 3% convertible bonds; and -- Corus Finance Plc GBP200 million 6.75% guaranteed bonds. Fitch will resolve the Rating Watch upon further clarity regarding a potential offer, how that transaction would be financed and the eventual closure of the deal. The RWP reflects the possibilities that CS's ratings could either be upgraded or affirmed at the current levels. In Fitch's view, the combined group would benefit from enhanced scale and greater geographic diversity. Based on the current indicative offer of 455 pence per share, the agency notes that the financial profile of the enlarged group would remain consistent with rating in the BB rating category. The combined group would also have a stronger operational profile and higher operating margins compared to CS on a stand- alone basis, given Tata Steel's low-cost operating position in India, and the potential for it to supply semi-finished steel to CS's value-added downstream operations in Western Europe. Fitch notes, however, that a majority of basic steel production would continue to take place at CS's higher-cost U.K. plants. The agency views that Tata Steel will struggle to significantly improve the operational performance of these plants given their exposure to high U.K. electricity costs and their continued dependence on externally purchased raw materials. On balance, however, Fitch considers that a tie-up with Tata Steel would be positive for CS's operational profile. Tata Steel is the second-largest Indian steel maker with crude steel capacity of 5 million tonnes and FY05 revenues of INR202.4 billion (GBP2.6bn). It has a strong position in its domestic market and a globally competitive cost structure based on low labor costs and high raw material self-sufficiency. Tata Steel's FY05 operating margin of 31.4% was among the highest in the steel industry globally, while it had substantially low leverage of 0.5x. Fitch considers Tata Steel's current financial profile to be consistent with a low investment-grade level rating. The financing structure of the Tata Steel offer is not yet disclosed. In applying the RWP Fitch has considered several funding options, including a fully debt-funded scenario at the current offer level. Discussions are continuing between CS and Tata Steel, which raise the potential for an increased offer. CS has been actively seeking partners over the past year and it also remains possible that competing bids may materialize. While not expected, a fully debt-funded bid at the higher end of market expectations, resulting in pro-forma net leverage of around 4.5x, could potentially result in a rating downgrade. Fitch notes, however, that the Tata Group has a track record of equity support for its operational subsidiaries and it is possible that an offer for CS could benefit from such support. Corus Group PLC -- http://www.corusgroup.com/-- produces metal from its major operating facilities in the U.K., the Netherlands, Germany, France, Norway, Belgium and Canada. Corus turns over GBP10 billion annually and employs 47,300 in over 40 countries and sales offices and service centers worldwide, including Indonesia and the Philippines. Corus was created through the merger of British Steel plc and Koninklijke Hoogovens N.V. LIPPO KARAWACI: Fitch Assigns 'BBB+(idn)' National Rating --------------------------------------------------------- Fitch Ratings has assigned a National Long-term rating of 'BBB+(idn)' to Indonesia-based PT Lippo Karawaci Tbk. The Outlook for the rating is Stable. LK's ratings reflect its exposure to the cyclical real estate businesses, which contribute to nearly two-thirds of the company's revenue and profits. Fitch views commercial property development (including retail malls), which is the main driver of LK's recent and projected cash flows and profits, to have a relatively high level of cyclicality and close correlation to interest rate and economic cycles. While LK's venture into retail mall development has been highly profitable since it was launched in late 2002, Fitch views that this track record is limited and has been entirely within an up-cycle in the Indonesian economy. LK, which historically had focused solely on developing the Lippo Karawaci township in suburban Jakarta, merged with several other property-related companies in 2004, thereby broadening its business mix. This transaction increased its recurring income, mainly from hotels and hospitals businesses, which contributed 41% and 36% of total revenue and EBITDA, respectively, in 2005. However, the return on investment in these sectors are currently at low levels with the hotel business, in particular, suffering from low occupancy rates of less than 60%, reflecting the high level of overcapacity in the Indonesian hotel industry. LK's ratings are supported by its position as one of the leading property developers in Indonesia with a diversified revenue base and a marketing strategy that appears to have been successful within the Indonesian environment. The company's approach of pre-selling retail malls to fund construction costs has reduced its reliance on external financing. LK derives some financial flexibility from the large land bank inventory in the townships that it has developed, although Fitch notes that the ability to monetise land bank is usually constrained during periods of stress. LK's financial leverage has evidenced an improving trend. Positive operating cash flow generation in 2005, along with a rights issue of IDR918 billion, helped improve the Net Debt/EBITDA ratio to 2.2x in 2005 from 5.4x in 2004. LK has used proceeds from the USD250 million notes issue to refinance short-term debt to the extent of USD170 million. This significantly improves LK's debt maturity profile with no repayment falling due until 2011. The Stable Outlook reflects Fitch's expectation that LK will continue to generate positive operating cash flows from its current project pipeline thereby maintaining its existing financial profile. Poorer than expected sales from its planned new launches, any material unplanned new investments or any material financial support to related entities may result in a negative rating action. On the other hand, if LK manages to reduce its leverage and sustain the Net Debt/EBITDA ratio below 2.0x through an economic and property cycle downturn, a positive rating action may be taken. LK is the largest listed property company in Indonesia with revenue of IDR2,005 billion, EBITDA of IDR623bn and a net income of IDR359 billion in 2005. High interest rate environment in the first half year ended June 2006 resulted in a 4% decline in revenue to IDR912 billion and an 11% decline in operating profits compared to the same period last year. Its major shareholders are the Lippo Group companies (27.0%), China Resources (Holdings) Co. Ltd. (15.4%) and CP Inlandsimmobilien- Holding GmbH (7.8%), the investment banking real estate arm of Austrian Raiffeisen Bank. Fitch also maintains a 'B+' Long-term foreign currency and local currency Issuer Default ratings with a Stable Outlook on LK, as well as a 'B+' and a Recovery Rating of 'RR4' on the USD250 million unsecured floating-rate notes due 2011, assigned on March 24, 2006. ========= J A P A N ========= ALITALIA SPA: Hits Insolvency Risk Reports ------------------------------------------ Alitalia S.p.A. shrugged off reports that it might collapse early 2007 and needs recapitalization to survive, AFX News says. The carrier said the reports "are unjustified" since it has a "solid and balanced financial structure." Alitalia said it has EUR823 million in short-term funds on hand and EUR932 million in net debt. It added that in the last years, it had improved its cost structure and increased traffic volumes. The airline, however, noted that its performance has been depressed by competition from low cost carriers and delays in implementing some restructuring measures. Alitalia also assured of hitting its business plan targets, despite delays caused by higher fuel costs, strikes, and threatened strikes, AFX News says. The carrier, however, said it would add measures to implement its plan and allow the group to reach pre-set targets for medium and long-term results. Alitalia's Board of Directors met on Oct. 19 to discuss the 2007-2009 business plan. As reported on Oct 13, 2006, Italian Prime Minister Romano Prodi foresees a bankrupt national carrier in January 2007 unless involved parties come up with an "agreed solution." "We have until January to hammer out a solution which can avoid bankruptcy," Mr. Prodi said, sharing the same observation posed by Alitalia CEO Giancarlo Cimoli. As reported in the TCR-Europe on Oct. 11, Mr. Cimoli revealed that Alitalia is poised for collapse given its current cost structure and market conditions. "At present, the national carrier is unable to generate profit, even for previously invested capital," Mr. Cimoli said. Mr. Cimoli particularly blamed: -- excessive market regulations; -- high labor costs; -- recurrent labor strikes; -- rising oil prices; -- airport and regulatory inefficiencies; and -- unfair competitive advantages' enjoyed by low-cost airlines. Mr. Cimoli also chided Italy's civil aviation and antitrust authorities for their failure to secure Alitalia from "unfair" competition. Mr. Cimoli said these conditions have made it unviable for Alitalia to compete with low-cost and foreign rivals. Mr. Cimoli had vowed to have Alitalia make a profit by year-end, but reaching the goal seems unlikely after the carrier posted EUR221 million in first-half net losses. Mr. Cimoli said the carrier is headed for a EUR300-million loss this year. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- generates around EUR4.8 billion in annual revenue and employs more than 11,000 people. Alitalia flies to about 80 destinations in more than 60 countries, including Argentina, China, and Japan, from hubs in Rome and Milan and operates a fleet of about 185 aircraft. The Italian government owns 49.9% of Alitalia. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia registered EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked consecutive annual net losses of EUR520 million in 2003, EUR813 million in 2004, and EUR168 million in 2005. CAFES 2: S&P Rates Multi-Borrower Class E Certificate 'BB+' ----------------------------------------------------------- Standard & Poor's Ratings Services had assigned its ratings to Cafes 2's JPY16.4 billion floating-rate trust certificates, classes A to E and X, due August 2013. The trust certificates are ultimately secured by nine nonrecourse loans backed by 29 real estate properties in Japan. This transaction has been arranged by Calyon Securities Tokyo Branch. Standard & Poor's ratings address the full and timely payment of interest and the full repayment of principal by the transaction's legal final maturity in August 2013 for the class A certificates, the full payment of interest and repayment of principal by the legal maturity date for the class B to E certificates, and the timely payment of available interest for the class X certificates. The ratings are based on: -- The quality of the loans that ultimately secure the rated certificates; -- The quality of the underlying properties that secure the loans; -- Ample credit support provided by the subordinated certificates; -- Liquidity support provided by servicer advances; and -- The soundness of the transaction's legal structure. Ratings Assigned: Cafes 2 JPY16.4 billion floating-rate trust certificates due August 2013 Class Rating Amount Coupon Type Overcollateralization Ratio A AAA JPY12.33 bil. Floating Rate 24.8% B AA JPY1.50 bil. Floating Rate 15.7% C A JPY1.45 bil. Floating Rate 6.8% D BBB JPY0.96 bil. Floating Rate 1.0% E BB+ JPY0.16 bil. Floating Rate 0.0% X AAA JPY16.4 bil. N/A N/A Overcollateralization Ratio is defined as: 1-(A+B)/C A: the rated obligations and equally ranked obligations B: prior obligations to the rated obligations C: underlying assets (including cash) Calyon Bank Tokyo Branch entrusts loans with Sumitomo Trust & Banking Corp., which in turn, issues an aggregate of JPY16.4 billion trust certificates. The trust assets consist of nine loan receivables originated by Calyon Bank. Each loan is secured by property trust beneficial interests for 29 properties owned by the nine obligors, as well as first security rights on the properties. Sumitomo Trust appoints Orix Asset Management & Loan Services Corp. as the servicer. EDDIE BAUER: 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 B2 Corporate Family Rating for Eddie Bauer, Inc. and its B2 rating on the Company's US$300 million term loan. In addition, Moody's assigned an LGD4 rating to notes, suggesting noteholders will experience a 55% 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 Redmond, Washington, Eddie Bauer Holdings, Inc. -- http://www.eddiebauer.com/-- is a specialty retailer that sells casual sportswear and accessories for the "modern outdoor lifestyle." Established in 1920 in Seattle, Eddie Bauer believes the Eddie Bauer brand is a nationally recognized brand that stands for high quality, innovation, style, and customer service. Eddie Bauer products are available at approximately 375 stores throughout the United States and Canada, through catalog sales and online at http://www.eddiebaueroutlet.com/ The company also participates in joint venture partnerships in Japan and Germany and has licensing agreements across a variety of product categories. Eddie Bauer employs approximately 10,000 part-time and full-time associates in the United States and Canada. EDDIE BAUER: To Open at the Promenade Shops at Dos Lagos -------------------------------------------------------- Eddie Bauer Inc. plans to open a new 5,204-square foot store at The Promenade Shops at Dos Lagos in Corona, California, in conjunction with the center grand opening on Nov. 2, 2006. "Eddie Bauer is thrilled to be opening at The Promenade Shops at Dos Lagos," said Lisa Erickson, Eddie Bauer spokesperson. "It promises to be a premier shopping and lifestyle destination, with great outdoor spaces, making it perfect for Eddie Bauer. Surrounded by natural beauty, Corona residents embrace the modern outdoor lifestyle. We look forward to providing active customers with apparel and accessories that offer the perfect mix of function and style." The location will open featuring the company's Holiday 2006 Collection, including heritage sweaters and timeless down outerwear. As part of the Grand Opening Celebration, customers will receive exclusive new store offers including our "Free Day Out" promotion. With a US$50 purchase, a customer will receive a "Free Day Out" voucher for free admission to select local attractions. New stores will also feature the Essential Survival Kit Water Bottle for a special price of US$10 (a US$19.50 value) and with any purchase, customers will receive an Eddie Bauer coupon book with unique offers for the next 6 months. New store offers are available while supplies last. The new Eddie Bauer store will join our existing Victoria Gardens location in the greater Corona area. Headquartered in Redmond, Washington, Eddie Bauer Holdings, Inc. -- http://www.eddiebauer.com/-- is a specialty retailer that sells casual sportswear and accessories for the "modern outdoor lifestyle." Established in 1920 in Seattle, Eddie Bauer believes the Eddie Bauer brand is a nationally recognized brand that stands for high quality, innovation, style, and customer service. Eddie Bauer products are available at approximately 375 stores throughout the United States and Canada, through catalog sales and online at http://www.eddiebaueroutlet.com/ The company also participates in joint venture partnerships in Japan and Germany and has licensing agreements across a variety of product categories. Eddie Bauer employs approximately 10,000 part-time and full-time associates in the United States and Canada. 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 B2 Corporate Family Rating for Eddie Bauer, Inc. and its B2 rating on the company's US$300 million term loan. In addition, Moody's assigned an LGD4 rating to notes, suggesting noteholders will experience a 55% loss in the event of a default. FTI CONSULTING: Buys Brower Kriz and G3 Consulting for US$14-M -------------------------------------------------------------- FTI Consulting, Inc., has acquired Brower, Kriz & Stynchcomb and G3 Consulting for a total of US$14 million. Jack Dunn, president and chief executive officer, commented: "We are excited to welcome BKS and G3 to FTI, and these purchases are in keeping with our stated acquisition strategy. These are excellent companies that expand our capabilities to take advantage of related market opportunities. BKS brings unparalleled experience in the domestic and international construction industry to our Forensic and Litigation Consulting segment. G3's overall experience leveraging technology on behalf of clients not only further extends our capabilities in the UK, but also fits well with the needs of our newly-acquired Financial Dynamics client base." Brower, Kriz & Stynchcomb Brower Kriz is a privately held, 31-person construction consulting firm based in Maryland specializing in critical path method schedule development, technical schedule review and progress evaluation. The purchase price for the acquisition was approximately US$11.5 million, payable through a combination of cash and restricted shares of the company's common stock, plus the opportunity for future contingent consideration based on specified financial objectives over the next five years. The three key Brower Kriz principals, Barry Brower, Jarad Kriz and Paul Stynchcomb have joined the company and have signed five year employment agreements. Mr. Brower said: "Joining with FTI is a major forward step for us. It offers us a broader range of client opportunities as well as providing FTI's clients in the construction industry with deep service capability." G3 Consulting Privately held G3 Consulting is a UK-based, six-person organization that delivers technology and business consulting to UK clients facing corporate litigation, electronic disclosure and public inquiries. The company acquired G3 for approximately $2.5 million through a combination of cash and restricted shares of the company's common stock. For the past six years G3 has served as the primary direct UK supplier of the company's Ringtail Legal products, as well as provided associated Application Service Provider and professional and consulting services. G3 also brings extensive experience in the area of electronic disclosure, having advised the UK's top law firms and corporate legal departments on how best to increase the speed, efficiency and quality of their electronic review using web based tools. Andrew Kennell, a Director of G3, said: "G3 has enjoyed a long and productive relationship with FTI Ringtail. Joining forces with FTI's team is the natural progression to being able to provide a wider range of services and support to our clients." Baltimore, Maryland-based FTI Conslulting Inc. -- http://www.fticonsulting.com-- is a consulting firm focusing on five areas: forensics and litigation, corporate finance/ restructuring, technology, economic consulting, and strategic communications. FTI Consulting has offices in the United States, the United Kingdom, Australia, China, Hong Kong, Japan, and Singapore. Standard & Poor's Ratings Services, on September 18, 2006, assigned its 'B+' rating to FTI Consulting Inc.'s proposed US$215 million senior notes due 2016. At the same time, Standard & Poor's affirmed the corporate credit rating of FTI at 'BB-' and revised the outlook to positive from stable, based on strong earnings performance and talent retention. Moody's Investors Service assigned a Ba2 rating to FTI Consulting, Inc.'s proposed US$215 million of senior unsecured notes and lowered the ratings on its US$150 million senior subordinated convertible notes to B1 from Ba3. Moody's affirmed the Ba2 corporate family rating and the Ba2 rating on FTI's existing senior unsecured notes. The rating outlook remains stable. ISUZU MOTORS: Expects Better Operating Profit for Sept. Quarter --------------------------------------------------------------- Isuzu Motors Ltd is expected to post a group operating profit of JPY50 billion for the April-September 2006 half, up 32% from a year earlier, Forbes.Com reports. The mark is higher than the earlier forecast pegged at JPY46.5 billion, the Nihon Keizai Shimbun reported, without citing sources. The higher forecast is driven by brisk truck sales in the Middle East and other resource-rich regions, as well as active replacement demand in Japan in the wake of tougher emissions regulations, the business daily said. Revenue is expected to reach JPY800 billion, beating estimates of JPY795 billion, the Nikkei said. About Isuzu Motors Headquartered in Tokyo, Japan, Isuzu Motors Limited -- http://www.isuzu.co.jp/-- is engaged in the manufacture and sale of automobile, automobile parts, as well as industrial engines. The company carries products such as light commercial vehicles (LCVs) and commercial vehicles, which include large- size trucks and buses, small-size trucks and pickup trucks, among others. It also manufactures and sells engines and components. Through its subsidiaries, the company is also engaged in the provision of logistics services and other services. The company has offices in Japan, the United States, Mexico, Belgium, and Thailand, among others. On April 30, 2004 that Japan Credit Rating Agency (JCR) has upgraded the ratings of Isuzu Motors Limited on the bonds of the issuer from B+ to BB. Rating And Investment Information, Inc. placed a BB rating on Isuzu Motor's issuer rating and senior debt on July 28, 2005. ISUZU MOTORS: Establishes JV in Germany and Austria --------------------------------------------------- Isuzu Motors Limited and Mitsubishi Corporation have established Isuzu Sales Deutschland GmbH in Germany, which is a joint venture to sell Isuzu vehicles and its parts, Isuzu Motors said in a press release. The new JV will import and sell Isuzu vehicles and its repair parts and provide services for them, in Germany and Austria, with the purpose of reinforcing Isuzu sales network in Europe. It is capitalized at EUR3 million, 20% held by Isuzu and 80% held by Mitsubishi. Isuzu Sales Deutschland GmbH will be the third JV established between Isuzu and Mitsubishi in the European market, following Isuzu Benelux and Isuzu Iberia. Currently Isuzu is actively tackling with improvement and reinforcement of the organizations to expand overseas sales of Isuzu CV, under the ongoing mid-term business plan (April '05 - March '08). As a part of the alliance in Europe between Isuzu and Mitsubishi, Isuzu will aim to further expand sales in the EU market by entering the German and Austrian market. Isuzu and Mitsubishi plan to expand sales of ELF-series trucks and D-MAX pickups in the EU market by utilizing competitive products and marketing know-how, which are the strengths of their collaboration. The German and Austrian market is a big market with sales volume of trucks as high as approx. 100,000 units level and the top shares are occupied by Mercedes-Benz (42%), Mann (23%) and Iveco (11%). Among these, the L/D truck market size Isuzu is trying to enter this time is said to be approx, 40,000 units, and the pick-up trucks market size is approx. 9,000 units. The 2007 Isuzu sales are planned at 400 units for ELF-series, 900 units for D-Max, and the 2010 sales planned at 800 units for ELF-series and 2, 300 units for D-MAX. Furthermore, ELF-series will be imported from Japan and D-MAX from Thailand by Isuzu Sales Deutschland GmbH, and be sold through local dealerships. About Isuzu Motors Headquartered in Tokyo, Japan, Isuzu Motors Limited -- http://www.isuzu.co.jp/-- is engaged in the manufacture and sale of automobile, automobile parts, as well as industrial engines. The company carries products such as light commercial vehicles (LCVs) and commercial vehicles, which include large- size trucks and buses, small-size trucks and pickup trucks, among others. It also manufactures and sells engines and components. Through its subsidiaries, the company is also engaged in the provision of logistics services and other services. The company has offices in Japan, the United States, Mexico, Belgium, and Thailand, among others. On April 30, 2004 that Japan Credit Rating Agency (JCR) has upgraded the ratings of Isuzu Motors Limited on the bonds of the issuer from B+ to BB. Rating And Investment Information, Inc. placed a BB rating on Isuzu Motor's issuer rating and senior debt on July 28, 2005. M-REAL OYJ: Moody's Affirms B2 Ratings on Strategic Review ---------------------------------------------------------- Moody's Investors Service affirmed the B2 Corporate Family Rating as well as the B2 senior unsecured debt ratings of M-real Oyj in addition to the B2 senior unsecured guaranteed MTN program rating of its majority-owned subsidiary, Metsae Group Financial Services Oyj, following the company's announcement of the initial outcome of its ongoing strategic review. The outlook for the ratings remains negative. In order to address overcapacities in the market, improve profitability and alleviate liquidity constrains M-real has announced its plans to: -- divest assets, -- close mills and paper machines at three of its fine paper plants, and -- improve efficiency at various levels, such as further streamlining operations and improving working capital. The expected cash impact of all measures -- if carried out as planned by the end of 2007 -- is estimated to be up to EUR500 million with a positive net EBIT effect of up to EUR40 million. M-real anticipates additional cost savings from the new program to be EUR100 million p.a. from 2008 onwards, but largely being absorbed by further cost increases. Improved working capital management should have an impact of EUR100 million going forwards. Moody's views the intention of M-real to sell a minimum of 8% of its share in Metsa-Botnia to its largest shareholder Metsaliitto as the core of the restructuring plan as this proposed action is thought to have the most certain outcome and provides M-real with immediate liquidity whilst securing its source of low-cost pulp in the medium to long term. The negative outlook reflects the degree of uncertainties with regard to timely asset disposals and the successful implementation of further efficiency improvements while at the same time continuously relying on third party funding. In this context Moody's notes that M-real has addressed upcoming debt maturities by having started initial negotiations to refinance its core EUR850 million revolving credit facility maturing in November 2007. In addition the negative outlook takes into consideration the company's ongoing challenge to formulate a viable long-term strategy with its current assets, operations and existing financial profile. Any change to its asset- or cash-coverage of existing debt would need to be closely assessed in its impact on the rating. The last rating action on M-real was on July 6 when Moody's downgraded all ratings to B2 from Ba3. Based in Helsinki, Finland, M-real Oyj -- http://www.m-real.com/ -- is a leading European producer of fine paper products, with FYE 2005 turnover of EUR5.2 billion. The company has operations in Japan, Brazil, China, India and Singapore. M-REAL OYJ: Starts Restructuring; Foreign Sites Face Closure ------------------------------------------------------------ M-real Oyj disclosed an extensive restructuring program as a first step in its strategic review. The planned program includes possible capacity closures, a new cost savings program, potential divestments and an impairment charge of approximately EUR200 million. The program will take effect immediately with a planned completion by the end of 2007. The restructuring program is being undertaken to cut capacity and costs and in order to improve competitiveness. Strategic Review Since autumn 2004, M-real has focused on improving its position through efficiency actions, affecting all M-real's operations and Business Areas. The implementation of these actions has progressed according to schedule. "M-real's Board of Directors initiated a strategic review of M- real's current business portfolio in March 2006, with a view to exploring potential benefits of participation in the consolidation and restructuring of the European paper industry," Kari Jordan, Chairman of the Board of Directors of M-real, said. "firmly believe that further consolidation within the European paper industry is needed and that the structure of European paper merchanting is going to change. The planned restructuring program announced today is the first step in the execution of the strategic review." Possible Closures of Capacity "In order to reduce capacity, M-real has identified for possible closure mills and production lines which are uncompetitive. Following the possible closures mentioned, the competitiveness of the remaining business is expected to be substantially stronger. One purpose of the possible closures is to contribute to improving the supply-demand balance of the sector", says Kari Jordan. In total, M-real is planning to close two paper mills and an additional two paper machines resulting in total closures of 485,000 tons. The following mills or paper machines have been identified as potential closure candidates: -- Sittingbourne, U.K., 210,000 tons of coated woodfree paper; -- Paper machines 6 and 7 in Gohrsmuhle, Germany, 100,000 tons of coated woodfree paper; and -- Wifsta, Sweden, 175,000 tons of uncoated woodfree paper. This would result in a reduction of M-real's fine paper capacity by 15%, both in Commercial Printing and Office Paper Business Areas. The annual revenue of the mills affected is estimated to be approximately EUR200 million. The estimated cash cost of the planned closures will amount to approximately EUR80 million, a one-time loss of approximately EUR120 million while producing an ongoing positive annual EBIT impact of EUR40 million. Profit and cash impacts of possible closures would be incurred during fourth quarter of 2006 and first quarter of 2007. The production lines, which will be closed, employ approximately 500 people. New Cost Savings Program M-real is already in the process of undertaking a major cost saving program initiated in 2004 in which a total of EUR230 million of savings and efficiency improvements were identified. Measures related to the program have been implemented by the second quarter of 2006. In an effort to increase the operating efficiency of M-real, a new savings program for a further EUR100 million of annual cost improvements is announced today. In addition to the previous restructuring actions, M-real will focus on further cost improvements of operational activities including a head office efficiency improvement project, which includes integrating business support functions with Metsaliitto Group support functions and possible headcount reductions, sourcing projects, logistics and supply chain rationalization, administration and other fixed costs, IT costs and energy consumption. The ambition will be to realize further savings of EUR100 million by the end of 2007 of which 30-40% P&L effect is to be achieved already during 2007. Additionally, M-real is launching a working capital improvement program to further improve cash flows through more efficient working capital management. By improving supply chain efficiencies, payment terms and inventory management, M-real is targeting minimum of EUR100 million of cash flow improvements in 2007. Strategic Review of Assets M-real has carefully reviewed the company's asset base and short listed potential divestitures which are expected to raise EUR500 million in proceeds. The proceeds will be used to decrease indebtedness. The planned candidates for divestments include a possible sale of minimum of 8% stake of Metsa-Botnia to Metsaliitto and a potential sale of the Folding Cartons converting business, all units or each unit separately: -- Meulemans carton plant in Belgium -- Petofi carton plant in Hungary -- Tako carton plant in Finland Additional disposals are to be determined. Impairment and Summary of Financial Impact M-real will book an impairment charge of approximately EUR200 million during the fourth quarter of 2006. The overall impact of the planned restructuring program is estimated to be: -- impairments of approximately EUR200 million, and -- a one-time loss of approximately EUR120 million. The cash cost of the planned capacity closures is estimated to be approximately EUR80 million. Profit and cash impacts of possible closures will be incurred during fourth quarter of 2006 and first quarter of 2007. EBIT improvement is estimated to be EUR40 million. "The paper industry has been a difficult sector for a number of years and M-real like many of its competitors has had some tough decisions to make," Mr. Jordan added. "This initial restructuring program has been undertaken as part of a broader strategic review of M-real. M-real will emerge from the program in a much stronger position and be better positioned to participate in the ongoing restructuring and consolidation of the industry." About the company Based in Helsinki, Finland, M-real Oyj -- http://www.m-real.com/ -- is a leading European producer of fine paper products, with FYE 2005 turnover of EUR5.2 billion. The company has operations in Japan, Brazil, China, India and Singapore. Moody's Investors Service affirmed the B2 Corporate Family Rating as well as the B2 senior unsecured debt ratings of M-real Oyj in addition to the B2 senior unsecured guaranteed MTN program rating of its majority-owned subsidiary, Metsae Group Financial Services Oyj, following the company's announcement of the initial outcome of its ongoing strategic review. The outlook for the ratings remains negative. M-REAL OYJ: Names Mikko Helander as New Chief Executive Officer --------------------------------------------------------------- M-real Oyj's board of directors has appointed Mikko Helander (M.Sc.), 46, as new chief executive officer for M-real as of Oct. 18, 2006. Until this, Mr. Helander has worked as CEO for Metsa Tissue, part of Metsaliitto Group. M-real's CEO until Oct. 18, Hannu Anttila, has been appointed Executive Vice President, Strategy, for Metsaliitto Group as of Oct. 18, 2006. About the company Based in Helsinki, Finland, M-real Oyj -- http://www.m-real.com/ -- is a leading European producer of fine paper products, with FYE 2005 turnover of EUR5.2 billion. The company has operations in Brazil, China, Japan, India and Singapore. M-real Oyj disclosed an extensive restructuring program as a first step in its strategic review. Moody's Investors Service affirmed the B2 Corporate Family Rating as well as the B2 senior unsecured debt ratings of M-real Oyj in addition to the B2 senior unsecured guaranteed MTN program rating of its majority-owned subsidiary, Metsae Group Financial Services Oyj, following the company's announcement of the initial outcome of its ongoing strategic review. The outlook for the ratings remains negative. MITSUI LIFE: Moody's Upgrades Insurer Rating to Baa2 from Ba1 ------------------------------------------------------------- Moody's Investors Service has upgraded to Baa2 from Ba1 the insurance financial strength rating of Mitsui Life Insurance Company Limited. The rating outlook is stable. This concludes the review initiated on September 6, 2006. The upgrade incorporates Moody's view that Mitsui Life's improving operating performance made it possible for the company to issue new shares in September 2006. Moody's comments that Mitsui Life's shifting of business strategies to meet its changing operating environment -- including placing greater emphasis on third-sector products and annuity insurance -- is likely to underpin its operating performance, and that its relationships with its group banks are likely to back its performance as deregulation of bancassurance continues. Moody's further believes that the subsidiary that Mitsui Life has established together with Sumitomo Life Insurance Company and Sumitomo Mitsui Banking Corporation to specialize in the distribution of insurance products will contribute to Mitsui Life's sales channel diversification. Although Mitsui Life has been selling variable annuity insurance with minimum guarantees -- which can be a high risk product for insurers -- through banks, and has been taking a relatively aggressive approach to the sales, its overall risk is attenuated somewhat by the strengthened capital base and is limited by the company's hedging strategy for the market risk, despite its business expansion. On the other hand, Moody's understands that Mitsui Life still faces asset and liability duration mismatches and that its bottom line has been relatively volatile, although this is attributable to one-off items. The stable outlook reflects Moody's expectation that the company will continue to maintain its capitalization and will carry on prudently managing its insurance risks. Moody's would view increasing adjusted capitalization, backed by earnings accumulation without increasing equity exposures and managing minimum guarantee risks, to around 6% as a positive rating driver, particularly if accompanied by a meaningful reduction (e.g., to below 40%) in high-risk asset as a percent of invested asset. On the other hand, material changes in Mitsui Life's risk appetite -- in underwriting or investments that enhance short- term profitability or seek growth -- could lead to negative rating pressures if they resulted in adjusted capitalization below 4%. Moody's last rating action with respect to Mitsui Life was taken on September 6, 2006, when the rating of Ba1 was placed on review for possible upgrade. Mitsui Life Insurance Company Limited, headquartered in Tokyo, is one of Japan's major life insurance companies, with total assets of JPY 8.1 trillion as of March 2006. PAYLESS SHOESOURCE: 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 Payless Shoesource, Inc., and upgraded its B2 rating on the company's US$200 million 8.25% senior subordinated notes to B1. In addition, Moody's assigned an LGD4 rating to notes, suggesting noteholders will experience a 64% 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 Topeka, Kansas, Payless ShoeSource, Inc. -- http://www.payless.com/-- is a family footwear specialty retailer with 4,605 retail stores, as of fiscal yearend Jan. 28, 2006 (fiscal 2005), including 22 stores not open for operations. The company's Payless ShoeSource retail stores in the United States, Canada, the Caribbean, Central America, South America and Japan sold 182 million pairs of footwear, in fiscal 2005. The company operates its business in two segments -- Payless Domestic and Payless International. The Payless Domestic segment includes retail operations in the United States, Guam and Saipan. The Payless International segment includes retail operations in Canada; Puerto Rico; the United States Virgin Islands; Japan; the South American Region, which includes Ecuador, and the Central American Region, which includes Costa Rica, Guatemala, El Salvador, the Dominican Republic, Honduras, Nicaragua, Panama and Trinidad and Tobago. SOLO CUP: Completes Review of Accounting Issues ----------------------------------------------- Solo Cup Co. has completed its previously announced review of accounting issues and, based on that review, has restated certain of its previously issued consolidated financial statements. The company also announced that it has filed its Form 10-Q for the second quarter ended July 2, 2006, with the United States Securities and Exchange Commission, the filing of which had been delayed pending completion of the review. The filing of the second quarter 2006 Form 10-Q has satisfied the terms of the indenture for the company's 8.5% Senior Subordinated Notes due 2014. In addition, on Oct. 13, 2006, the company concluded its previously announced discussions with its lenders under its credit facilities and obtained a waiver and amendment through Jan. 2, 2007, with regard to those facilities. About Solo Cup Headquartered in Highland Park, Illinois, Solo Cup Company -- http://www.solocup.com/-- manufactures disposable foodservice products for the consumer and retail, foodservice, packaging, and international markets. Solo Cup has broad expertise in plastic, paper, and foam disposables and creates brand name products under the Solo, Sweetheart, Fonda, and Hoffmaster names. The company was established in 1936 and has a global presence with facilities in Japan, Canada, Europe, Mexico, Panama and the United States. In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the non-paper Packaging sector, the rating agency confirmed its B3 Corporate Family Rating for Solo Cup Company. Moody's also revised its probability-of-default ratings and assigned loss-given-default ratings on these loans facilities: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$150 million Sr. Sec. First Lien Revolver Maturing Feb 27, 2010 B2 B2 LGD3 34% US$637 million Sr. Sec. First Lien Term Loan B due Feb 27, 2011 B2 B2 LGD3 34% US$80 million Second Lien Term Loan due Feb 27, 2012 Caa1 Caa1 LGD5 70% US$325 million 8.5% Senior Sub Notes due Feb 15, 2014 Caa2 Caa2 LGD5 87% SOLO CUP: Reports US$670.3MM Net Sales for Quarter Ended July 2 --------------------------------------------------------------- Solo Cup Co. reported these results for the second quarter ended July 2, 2006: -- net sales of US$670.3 million, an increase of US$23.4 million, or 3.6%, from the same quarter last fiscal year, as restated; -- gross profit of US$92.0 million, up 12.0% from the prior-year corresponding quarter, as restated; and -- a net loss of US$299.4 million, primarily reflecting a US$228.5 million non-cash charge for the impairment of the company's goodwill and a US$105.0 million non-cash charge to income taxes to establish a valuation allowance for its deferred tax assets. "Two months to the day since we announced the delay in the filing of our second-quarter results and the launch of our internal review, we are pleased to report that we have completed the review, that we have filed our restated consolidated financial statements and our consolidated financial statements for the second quarter of 2006, and that we can now focus 100 percent of our attention on running the company and building value for our customers, other business partners, investors and employees," said Robert M. Korzenski, Chief Executive Officer. "The restatement work was a rigorous and intense process that revealed certain material weaknesses in our financial controls and we are taking decisive steps to address those issues," Mr. Korzenski said. "Importantly, this work renewed our confidence in the fundamentals of our business, reaffirmed the compelling strategic, operational and financial rationale of the Solo Cup/Sweetheart merger, and highlighted the quality and dedication of our employee team. "The restatement of our consolidated financial statements has impacted our reported financial results but the process we have gone through positions us well for long-term strength and success," Mr. Korzenski concluded. Second-Quarter 2006 Financial Results For the thirteen weeks ended July 2, 2006, the company reported net sales of US$670.3 million, an increase of US$23.4 million, or 3.6 percent, from net sales of US$646.9 million, as restated, for the three months ended July 3, 2005. The increase in net sales reflects an increase in average realized sales price, partially offset by lower unit sales volumes. The increase in average realized sales price reflects price increases implemented during the previous eight months in response to higher raw material costs; expanded product penetration within the company's existing customer base; and sales to new customers. The volume decrease primarily reflects the effects of pricing pressure in the marketplace and, to a lesser extent, the company's decision to eliminate certain less-profitable business. Gross profit for the thirteen weeks ended July 2, 2006, was US$92.0 million, an increase of US$9.8 million, or 12.0%, from gross profit of US$82.1 million, as restated, for the comparable period in 2005. Included in gross profit is a US$22.1 million pension curtailment gain and a US$9.8 million charge for excess and obsolete spare parts and finished goods inventory primarily relating to prior periods. Selling, general and administrative expenses were US$73.8 million, versus US$66.2 million, as restated, for the three months ended July 3, 2005. The increase was primarily driven by one-time severance expenses related to the company's reduction-in-force announced in April 2006, as well as to the departure of certain senior executives. For the thirteen weeks ended July 2, 2006, the company reported a net loss of US$299.4 million, versus a net loss of US$2.8 million, as restated, for the comparable period in 2005. The 2006 loss reflects a non-cash charge of US$228.5 million for the impairment of goodwill and a non-cash charge of US$105.0 million to income tax expense to increase the valuation allowance for deferred tax assets. The goodwill impairment charge is the result of a third-party valuation study done as of July 2, 2006. The test was initiated based on a combination of factors, including continued net losses and significant increases in raw material and petroleum prices. Commenting on the company's results for the second quarter of 2006, Mr. Korzenski said, "Our results were significantly impacted by the goodwill and income tax adjustments, as well as by a continued challenging industry environment. We expect these challenges in the industry to continue for the balance of the year. At the same time, with the restatement behind us, we are now working with our advisors and investors to address the multiple business improvement opportunities we see for the company which we expect will position it for enhanced profit improvement and growth." Restatement of Previously Issued Financial Statements On Aug. 16, 2006, the company announced a temporary delay in the filing of its Form 10-Q with the SEC for the second quarter ended July 2, 2006, saying it would need additional time to complete an internal review initiated by Mr. Korzenski of issues regarding certain accounting practices and procedures related to the company's second quarter of 2006 and prior periods. The company indicated that the issues pertained primarily to the timely recognition of certain customer credits, accounts payable and accrued expenses and the valuation of certain tangible and intangible assets. The internal review was led by Eric A. Simonsen, the company's interim chief financial officer, and its findings were discussed with KPMG LLP, the company's independent registered public accountants. On Sept. 19, the company announced that, based on the initial findings of the review, it had determined to restate certain of its previously issued consolidated financial statements. The review, which identified certain errors requiring correction in the company's previously issued consolidated financial statements, has now been completed, its findings have been discussed with and approved by the company's board of directors, and the company's Form 10-Q for the thirteen weeks ended July 2, 2006, was filed today on SEC Form 10-Q. In addition, the restatement of the company's consolidated financial statements for the 2005, 2004 and 2003 fiscal years, along with certain quarterly financial information for the interim periods contained therein and for the first fiscal quarter of 2006, as well as certain selected consolidated financial data for 2002 and 2001, have been effected through amendments on SEC Forms 10- K/A for the fiscal year ended Jan. 1, 2006, and 10-Q/A for the thirteen weeks ended April 2, 2006. The categories of restated items included in one or more of the company's restated consolidated financial statements include timely recognition of certain credits to customers, certain credits from vendors and certain accrued expenses; accrued payroll and other related costs; accrued freight; and inventory valuation. The aggregate change in operating income associated with these items was: -- an increase of US$3.2 million in the first quarter of 2006; -- a decrease of US$19.7 million in full fiscal year 2005; -- a decrease of US$8.2 million in full fiscal year 2004; -- a decrease of US$7.1 million in full fiscal year 2003; -- a decrease of US$0.9 million in full fiscal year 2002; and -- an increase of US$0.2 million in full fiscal year 2001. The restatement of the company's consolidated financial statements did not impact its cash balances. The company currently has approximately US$23 million of cash on hand and approximately US$36 million of borrowing availability under the terms of its domestic revolving credit facility. "We have taken, and continue to take, a number of steps to maximize our near-term liquidity," Mr. Korzenski said. "We are also evaluating additional opportunities such as sales of non- strategic assets and alternative financing strategies. In addition, we have engaged an independent consulting firm to perform a thorough diagnostic review of our supply chain/operations designed to reduce costs and improve manufacturing efficiencies." Mr. Korzenski added, "It should be noted that we now have a new and very strong financial and accounting team; newly implemented accounting controls; and a strong organizational commitment at both the board and management levels to improved internal and external communication." About Solo Cup Headquartered in Highland Park, Illinois, Solo Cup Company -- http://www.solocup.com/-- manufactures disposable foodservice products for the consumer and retail, foodservice, packaging, and international markets. Solo Cup has broad expertise in plastic, paper, and foam disposables and creates brand name products under the Solo, Sweetheart, Fonda, and Hoffmaster names. The company was established in 1936 and has a global presence and facilities in Japan, Canada, Europe, Mexico, Panama and the United States. In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the non-paper Packaging sector, the rating agency confirmed its B3 Corporate Family Rating for Solo Cup Company. Moody's also revised its probability-of-default ratings and assigned loss-given-default ratings on these loans facilities: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$150 million Sr. Sec. First Lien Revolver Maturing Feb 27, 2010 B2 B2 LGD3 34% US$637 million Sr. Sec. First Lien Term Loan B due Feb 27, 2011 B2 B2 LGD3 34% US$80 million Second Lien Term Loan due Feb 27, 2012 Caa1 Caa1 LGD5 70% US$325 million 8.5% Senior Sub Notes due Feb 15, 2014 Caa2 Caa2 LGD5 87% TIMKEN CO: Opens US$10-Mil. Technology Center in Clemson Univ. -------------------------------------------------------------- The Timken Company opened its new 118,000 square-foot, US$10-million Timken Technology Center on the campus of Clemson University's International Center for Automotive Research. The company says that the center is primarily responsible for the development of automotive powertrain technology. It allows the company to consolidate product, process and application engineering in a collaborative environment at CU-ICAR and enable a more efficient and effective design process from a cost and time-to-market standpoint. The Timken Technology Center will employ more than 150 engineers and technicians focused on developing innovative powertrain and friction management solutions. The facility includes state-of- the-art engine, metrology and prototype labs. "Collaborating with Clemson University brings the academic and automotive communities together to develop real-world innovative solutions in product- manufacturing engineering that are intended to benefit the industry as a whole," Jacqui Dedo, president of Timken's Automotive Group, said. "We look at our new facility as an important step toward developing more highly differentiated products for our customers. It also represents an opportunity to participate in one of the premier automotive and motorsports research and educational centers in the world." In addition, the company and Clemson University established an endowed chair, held by Dr. John D. Ziegert, to oversee automotive design and development projects between the university's research and development resources and the company's on-site engineering group. About CU-ICAR The Clemson University International Center for Automotive Research is a 250-acre research campus in Greenville, South Carolina. The Carroll A. Campbell Jr. Graduate Engineering Center, focuses on systems integration between electrical, digital and mechanical technologies in automobiles and many other manufacturing platforms. About The Timken Company Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR) -- http://www.timken.com/-- is a manufacturer of highly engineered bearings and alloy steels. It also provides related components and services such as bearing refurbishment for the aerospace, medical, industrial and railroad industries. The company has operations in Japan, Argentina, Australia, Belgium, Brazil, Canada, China, France, Germany, Hungary, India, Italy, Korea, Poland, Romania, Russia, Singapore, Spain, Taiwan, Turkey, United States, and Venezuela and employs 27,000 employees. * * * The company's 7.16% Medium-Term Notes, Series A due 2027 carry Moody's Investors Service's Ba1 rating. YOKOGAWA ELECTRIC: Now Preferred System Supplier for Air Liquide ---------------------------------------------------------------- Yokogawa Electric Corporation has announced that it has been selected by Air Liquide Engineering as a strategic preferred system supplier of Process Control Systems for their air separation units and syngas (HYCO) systems, Yokogawa Electric said in a press release. This agreement can be used by all Air Liquide affiliates. Yokogawa products and services covered by this new agreement include the CENTUM CS3000 integrated production control system, the ProSafe-RS safety system, software solutions, and system integration engineering and maintenance services. "We have become a trusted partner of Air Liquide over the past seven years by demonstrating our global capabilities and the strength of our service support organization. We have helped build and improve a dedicated business model that significantly reduces their total cost of ownership (TCO) and meets their ever more diversified needs, making them more competitive. This successful partnership was undoubtedly a factor in our selection", said Teruyoshi Minaki, Director, Executive Vice President of Yokogawa's International Business Headquarters. "We chose Yokogawa again as our strategic preferred control system supplier through an intensive year-long technical and commercial evaluation process. We have been fully satisfied with the quality of their products, cutting-edge technologies, integrated system solutions, smooth project execution and outstanding global service support. We intend to build a stronger business partnership than ever before with Yokogawa globally based on this newly signed agreement", said Leonardo Caroli, Procurement Vice-President, Air Liquide Engineering. About Yokogawa Electric Corp. Yokogawa Electric Corporation -- http://www.yokogawa.co.jp/-- is a manufacturing company mainly engaged in the manufacture and sale of measurement control equipment and information equipment. The company manufactures measurement control equipment and information equipment through its subsidiaries, and sells the equipment in the country, as well as overseas markets, including Southeast Asian countries, European countries and the United States, through its subsidiaries. Yokogawa Electric also offers engineering services and post-sale services. Along with one of its subsidiaries, the company also manufactures security-related equipment. Its other business activities encompass the real estate-related business and the provision of recruitment services. Headquartered in Tokyo, Yokogawa Electric has 92 subsidiaries and 14 associated companies in Japan, as well as overseas markets, such as the United States, Singapore, the Netherlands, Brazil, Korea and China. On June 7, 2004, Standard and Poors Rating Agency gave the company BB+ long-term local and foreign issuer credit ratings. YOKOGAWA ELECTRIC: Unit Releases Event Package Upgrade ------------------------------------------------------ Yokogawa Corporation of America, the North American unit of Yokogawa Electric Corporation, has released an upgrade to its increasingly popular Exaplog Event and Analysis Package to version R3.10, the company said in a press release. Exaplog is a software product that categorizes event logs acquired from process automation systems in terms of "Process Requests" (alarms, annunciators, etc.) and "Operator's Actions" (setting values changing modes, etc.). By observing the balance of these alarms and events in a graphical manner, operation- related problems can be quantitatively identified and classified. The Exaplog Event Analysis Package gathers historical events from a process control system, saves the historical information in a local database, and provides analytical functions. These functions include an Event Balance Trend (EBT) Graph, which displays the balance between "process requests volume" and "operator work volume," a 3W ("When, What, Where") Filter, which extracts events occurring at problem areas, a Message Summary Window, which displays the time of an event, its type, and detail of time order of event occurrences, and a Category Sort Window, which sorts events by type (such as alarm notification or recovery) and displays the results in pie charts and tables. Event IDs, such as tag names, can be sorted and displayed in numerical order of the number of event occurrences, and an Event Data Filter provides for display of only a selected event or can zoom in on a selected time span. The graphical interface allows the user to isolate the problem on the graph, isolate a problematic tag or set of tags, determine the reason for excessive actions, and determine the problem frequency - that is, does it occurs each day or during a certain time period? By this method, Exaplog helps eliminate unnecessary alarms, improves inefficient operation sequences, and, thus, improves the production process. Major features of Exaplog R3.10 are as follows: 1. Increase number of days of data the can be displayed to over a month or 31 days. 2. Increase the maximum number of events that can be displayed to a million (1,000,000). 3. Increase the maximum number of events per day that can be saved to 150,000. 4. Add Fieldbus related messages to the types of messages that can be saved and analyzed. Exaplog becomes a perfect tool to analyze alarms and events in order to intelligently deploy alarm management strategies and tools such as Yokogawa's AAASuite the provides functions for minimizing nuisance alarms and providing timely notification of only necessary alarms. About Yokogawa Corporation of America Yokogawa Corporation of America is the North American unit of US$4 billion Yokogawa Electric Corporation, a global leader in the manufacture and supply of instrumentation, process control, and automation solutions. Headquartered in Newnan, Georgia, Yokogawa Corporation of America serves a diverse customer base with market-leading products including analyzers, flowmeters, transmitters, controllers, recorders, data acquisition products, meters, instruments, distributed control systems, and more. About Yokogawa Electric Corp. Yokogawa Electric Corporation -- http://www.yokogawa.co.jp/-- is a manufacturing company mainly engaged in the manufacture and sale of measurement control equipment and information equipment. The company manufactures measurement control equipment and information equipment through its subsidiaries, and sells the equipment in the country, as well as overseas markets, including Southeast Asian countries, European countries and the United States, through its subsidiaries. Yokogawa Electric also offers engineering services and post-sale services. Along with one of its subsidiaries, the company also manufactures security-related equipment. Its other business activities encompass the real estate-related business and the provision of recruitment services. Headquartered in Tokyo, Yokogawa Electric has 92 subsidiaries and 14 associated companies in Japan, as well as overseas markets, such as the United States, Singapore, the Netherlands, Brazil, Korea and China. On June 7, 2004, Standard and Poors gave the company BB+ long- term local and foreign issuer credit ratings. YOKOGAWA ELECTRIC: Gets Cert. For Safety Instrumented System ------------------------------------------------------------- Yokogawa Electric Corporation has disclosed in a press release that its ProSafe-RS Safety Instrumented System has received type approval from certification organizations in the United States, France, and the United Kingdom for use on floating production, storage, and offloading (FPSO) vessels; liquefied natural gas (LNG) carriers; and the like. Prior to the acquisition of type approval, the ProSafe-RS Safety Instrumented System was subject to compliance testing by certification organizations for every project in which Yokogawa was involved. Now that the ProSafe-RS has been type approved, we can deliver our safety-instrumented system for FPSO facilities and LNG carriers without having to go through compliance test procedures. The certification organizations issuing this type approval to the ProSafe-RS are the American Bureau of Shipping, Bureau Veritas (France), and Lloyd's Register (UK). These certification organizations prescribe the conditions and performance requirements for the equipment and systems used on ships and offshore floating facilities. Specifically, the systems and equipment are required to operate normally under the conditions of listing, vibration, electromagnetic interference, and power supply voltage fluctuation that exist in an offshore environment. Equipment and systems must meet these stringent requirements to receive type approval. Independently of the process control system, the ProSafe-RS detects any signs of abnormality during plant operation and safely executes an appropriate emergency operation, such as a system shutdown, in order to prevent an accident from occurring. With the rising awareness of the need for maritime safety, demand is increasing for this type of system. Taking advantage of this type approval acquisition, we will aggressively promote the sale of the ProSafe-RS for use with highly demanding FPSO systems, and on LNG carriers and drilling ships, while assertively expanding our safety instrumentation business. About Yokogawa Corporation of America Yokogawa Corporation of America is the North American unit of US$4 billion Yokogawa Electric Corporation, a global leader in the manufacture and supply of instrumentation, process control, and automation solutions. Headquartered in Newnan, Georgia, Yokogawa Corporation of America serves a diverse customer base with market-leading products including analyzers, flowmeters, transmitters, controllers, recorders, data acquisition products, meters, instruments, distributed control systems, and more. About Yokogawa Electric Corp. Yokogawa Electric Corporation -- http://www.yokogawa.co.jp/-- is a manufacturing company mainly engaged in the manufacture and sale of measurement control equipment and information equipment. The company manufactures measurement control equipment and information equipment through its subsidiaries, and sells the equipment in the country, as well as overseas markets, including Southeast Asian countries, European countries and the United States, through its subsidiaries. Yokogawa Electric also offers engineering services and post-sale services. Along with one of its subsidiaries, the company also manufactures security-related equipment. Its other business activities encompass the real estate-related business and the provision of recruitment services. Headquartered in Tokyo, Yokogawa Electric has 92 subsidiaries and 14 associated companies in Japan, as well as overseas markets, such as the United States, Singapore, the Netherlands, Brazil, Korea and China. On June 7, 2004, Standard and Poors gave the company BB+ long- term local and foreign issuer credit ratings. ========= K O R E A ========= DRESSER INC: Moody's Assigns B1 Rating to Planned US$935MM Loan --------------------------------------------------------------- Moody's Investors Service assigned a B1, LGD 3 (37%) rating to Dresser, Inc.'s proposed US$935 million of senior secured bank credit facilities. At the same time, Moody's affirmed Dresser's B1 Corporate Family Rating and changed the company's Probability of Default Rating to B2 from B1. The outlook remains negative pending the filing of its restated financial statements. Proceeds from the new bank credit facility are being used to refinance Dresser's existing senior secured credit facility, senior unsecured term loan, and senor subordinated notes. Moody's will withdraw the ratings on the existing secured credit facility, senior unsecured term loan, and subordinated notes upon their redemption. The negative outlook reflects: -- Moody's concern that the amount of time to complete the restatements could be considerable; and, -- the challenges the company faces to remediate its material weaknesses over internal controls. In March of this year, Dresser reported its inability to file its 2005 Annual Report on Form 10-K by the March 31, 2006 requirement. And in May, the company announced that it would need to restate its financial statements for fiscal year 2004, as well as the 2004 and 2005 quarterly financial statements, representing the third time that the company has had to restate its financial results over the past three years. It remains unclear at this time if the company will need to restate its financial statements for periods prior to 2004. Moody's believes that ongoing financial statement filing delays have created significant management distractions. It is possible that the restatement process could continue to be protracted. Dresser reported six material weaknesses, two of which relate to its former on/off valves business, which was sold in November 2005. These weaknesses are the root cause for the company's filing delays and restatements. While Moody's notes that the financial impact of the restatements appears to be modest, the nature and pervasiveness of the internal control issues reported are very serious because they relate to company-level controls and indicate a weak control environment. Dresser is making efforts to address the material weaknesses; however, the company still has substantial work to do in addressing company-level controls and the control environment, which will continue to remain a significant distraction for management. Until the material weaknesses are fully resolved, some uncertainty remains regarding the company's financial reporting, particularly given the company's substantial international exposure. Should the delay in completing the financial statements become extended materially beyond December 2006 and if Moody's determines that it lacks sufficient financial information to appropriately monitor the company's credit, the ratings could be withdrawn. The ratings could be pressured if the company does not maintain relatively conservative financial policies. The company is currently exploring strategic alternatives, including the potential sale of the company. Approximately 88% of Dresser's outstanding equity is currently owned by First Reserve Corporation and Odyssey Investment Partners. Uncertainty remains as to a potential new owner's strategic direction for the company, depth of industry experience, and credit quality. The outlook could stabilize if Dresser -- is able to file its restated financial statements with the SEC in the near-term and becomes current on its quarterly financial statement filings; -- is able to make material progress in resolving its material weaknesses; and, -- continues to exhibit positive trends with respect to its financial performance. However, the rating and outlook would be subject to a full review of the audited financial statements. Dresser's B1 Corporate Family Rating is restrained: -- by the company's high leverage relative to cyclical and competitive sector conditions; -- working capital intensity; -- low hard asset coverage of debt (high intangible assets and low tangible fixed assets), reflecting a significant service orientation; -- increasing exposure to political risk as a result of expected growth in certain international markets; -- financial performance that while improving has been below expectations; and, -- weak internal controls. The B1 rating is supported: -- by the company's substantial scale and diversification; -- its long-standing, leading market positions; -- a large installed base of client infrastructure, deployed and served by Dresser over many decades, which adds durability to its earnings; -- manageable cash flow cycles for the rating and leverage; -- seasoned management; -- improving financial performance; -- the breadth and financial strength of much of its customer base; and, -- low maintenance capital spending needs. Dresser's proposed US$935 million senior secured credit facilities consist of: -- a seven-year US$785 million term loan facility, -- a seven-year US$50 million synthetic letter of credit facility, and, -- a six-year US$100 million revolving credit facility, which is expected to be unfunded at closing. The term loan facility, which has minimal amortization until maturity, is expected to have a cash sweep mechanism that would require a portion of free cash flow to be applied toward debt reduction if leverage exceeds certain thresholds. Financial covenants under the facilities are expected to include a leverage ratio, interest coverage ratio, and maximum capital expenditures. In addition to the proposed credit facilities, Dresser's pro-form capitalization will consist of a modest amount of debt at foreign subsidiaries (approximately US$15 million as of June 30, 2006). The B1 rating and LGD 3 assessment on Dresser's senior secured credit facilities and the company's B2 Probability of Default Rating reflect a pro forma capital structure that is comprised almost entirely of first lien bank debt. The credit facilities are secured pari passu by perfected liens on Dresser's domestic receivables, inventory, and fixed assets, as well as a pledge of stock of domestic subsidiaries and a pledge of stock of 65% of the stock of foreign subsidiaries. The facilities are guaranteed by Dresser Holdings, Inc. and by all of Dresser, Inc.'s wholly-owned domestic subsidiaries. The ratings on the bank facilities are restrained by the amount of non-debt liabilities at the foreign operating subsidiaries (primarily comprised of accounts payables and unfunded pension obligations), the ability for Dresser to incur additional debt at these subsidiaries (up to the sum of US$75 million and 10% of the backlog of all foreign subsidiaries), and by weak coverage of secured debt by the tangible assets of the domestic subsidiaries. Foreign operating subsidiaries account for more than half of Dresser's total tangible assets. About Dresser, Inc. Based in Addison, Texas, Dresser, Inc. -- http://www.dresser.com/-- designs, manufactures and markets equipment and services sold primarily to customers in the flow control, measurement systems, and compression and power systems segments of the energy industry. The Company has a comprehensive global presence, with over 8,500 employees and a sales presence in over 100 countries worldwide, including Korea and Japan. * * * Moody's Investors Service downgraded Dresser, Inc.'s Corporate Family Rating to B1 from Ba3. The rating for the Company's Senior Secured Tranche C Term Loan maturing 2009 was downgraded to B1 from Ba3. Moody's also downgraded the rating for the Company's Senior Unsecured Term Loan maturing 2010 to B2 from B1. The Company's Senior Subordinated Notes maturing 2011 was downgraded to B3 from B2. Moody's said the rating outlook is negative. DRESSER INC: S&P Rates US$935 Million Credit Facilities at B ------------------------------------------------------------ Standard & Poor's Ratings Services assigned its 'B' senior secured rating and its '3' recovery rating to energy and oilfield equipment manufacturer Dresser Inc.'s US$935 million credit facilities, which are composed of a new US$785 million term loan B, a US$50 million synthetic LOC facility, and a US$100 million revolving credit facility. In addition, Standard & Poor's revised its CreditWatch listing on Dresser to developing implications from negative implications. Dresser will use proceeds from the new term loan to refinance existing bank debt and outstanding subordinated note issues. The CreditWatch listing reflects the potential for ratings to be raised, lowered, or affirmed in the near term. The ratings on Dresser had been placed on CreditWatch with negative implications due to delays in filing audited financial statements. "Pending completion of the announced refinancing and receipt of audited financial statements from prior periods, we will conduct a full review and resolve the CreditWatch listing on Dresser in the near term," said Standard & Poor's credit analyst Jeffrey Morrison. Key considerations for whether the corporate credit rating will be raised, affirmed at 'B', or lowered additionally, will include: * Implications of the company's previous announcement that it is currently exploring strategic alternatives, which could include a potential sale of the company; * Dresser's ability to successfully resolve recent accounting issues that have resulted in delayed filings; * Financial policy with regard to growth capital and potential acquisitions; * A comprehensive review of Dresser's financial statements and its recent operating and financial performance; and * An assessment of the near- to intermediate-term outlook for Dresser's various business lines. About Dresser, Inc. Based in Addison, Texas, Dresser, Inc. -- http://www.dresser.com/-- designs, manufactures and markets equipment and services sold primarily to customers in the flow control, measurement systems, and compression and power systems segments of the energy industry. The Company has a comprehensive global presence, with over 8,500 employees and a sales presence in over 100 countries worldwide, including Korea and Japan. * * * Moody's Investors Service downgraded Dresser, Inc.'s Corporate Family Rating to B1 from Ba3. The rating for the Company's Senior Secured Tranche C Term Loan maturing 2009 was downgraded to B1 from Ba3. Moody's also downgraded the rating for the Company's Senior Unsecured Term Loan maturing 2010 to B2 from B1. The Company's Senior Subordinated Notes maturing 2011 was downgraded to B3 from B2. Moody's said the rating outlook is negative. HYUNDAI MOTOR: Joint Venture Sued Over Accent's Price Cut --------------------------------------------------------- Hyundai Motor Co.'s joint venture with Beijing Automotive Industry -- Beijing Hyundai -- is sued over alleged price slashing of its Accent subcompact car, People's Daily Online reports. According to People's Daily, 100 owners of Accent cars filed a lawsuit at the Beijing Shunyi District People's Court in China, complaining that the Hyundai joint venture cheated them by cutting the prices of the cars. In the launch of Accent cars in March, Beijing Hyundai president reportedly said in a Chinese Web site -- http://www.sohu.com.cn/ -- that Accent's prices would not change for at least 2-1/2 years. However, in July, the joint venture cut the prices of two of its most expensive Accent models by US$1,012, the daily recounts. A car owner told the daily that he wouldn't have bought the Accent car without the promise. Hyundai Beijing denied the allegations and said that the Web site just misrepresented the company's president. In the lawsuit, the car owners are seeking US$1,012 each in compensation and legal fees as well as Beijing Hyundai's public apology. About Hyundai Motor Headquartered in Seoul, South Korea, Hyundai Motor Company -- http://www.hyundai-motor.com/-- has been selling cars in the United States since 1986, but it only started selling its heavy trucks stateside in 1998. Hyundai produces 14 models of cars and minivans, as well as trucks, buses, and other commercial vehicles. The Company reestablished itself as Korea's leading carmaker in 1998 by acquiring a 51% stake in Kia Motors -- since reduced to about 45%. The Company also manufactures machine tools for factory automation and material- handling equipment. The Troubled Company Reporter - Asia Pacific reported that the Hyundai Automotive Group is facing its deepest crisis since chairman Chung Mong-koo took over in 1999, with problems like the falling United States dollar, high oil prices and union demands aggravated by a sweeping criminal investigation regarding the carmaker's alleged creation of slush funds that were used by at least two lobbyists to bribe government officials for business favors, including having KRW55 billion of Hyundai's bad debts written off. Chairman Chung has been indicted early in May 2006 for fraud charges. Some of the group's official business has been on hold since the probe on the slush fund started and several top executives were summoned for questioning. NOVELIS INC: Expects Improved Financial Performance in 2007 ----------------------------------------------------------- Novelis Inc. would be providing guidance for 2006 and 2007 as part of its strategic and financial update. Highlights -- The company continues to generate solid cash flow. Novelis expects total free cash flow for 2006 to be between US$150 million and US$200 million, and believes it will remain in that range for 2007 as the company improves its risk mitigation program. -- The company anticipates a return to positive earnings before taxes in 2007. For the full year of 2006, Novelis expects to post a loss before taxes of between US$240 million and US$285 million. For the full year of 2007, the company anticipates earnings before taxes of between US$35 million and US$100 million. This expected upswing is due primarily to the elimination of half of the company's can sheet price ceiling exposure, expected increases in rolled product shipments, and expected corporate cost reductions. -- The company estimates that shipments for 2006 will be between 3,140 and 3,170 kilotons. In 2007, shipments are forecasted to grow by 3 to 4 percent compared to 2006. -- For 2006, Novelis estimates capital expenditures of between US$110 million and US$115 million. For 2007, the company expects that its capital expenditure run rate will return to traditional investment levels of between US$165 million and US$175 million. -- Longer term, the company will target: * an annual growth rate of 7% to 10% for regional income less corporate costs; * annual returns on invested capital exceeding 12%; * annual free cash flow surpassing US$400 million; and * a debt-to-EBITDA ratio of between 2.5x and 3.0x. Novelis said that all forward estimates assume an average price for primary aluminum of US$2,500 per metric ton on the London Metal Exchange. "We believe that we are nearing the end of a difficult transition period," William T. Monahan, chairman and interim chief executive officer, said. "The fundamentals of our business remain strong, and we are pleased with our future outlook as the result of the actions we have taken, and will continue to take, to enhance shareholder value." The company reiterated that it is on track to file its Form 10-Q for the second quarter by Oct. 20, 2006, and to be current with its filings once it files its third-quarter report during the fourth quarter. The company also noted that its previously reported commitments for backstop financing facilities totaling US$2.855 billion from Citigroup Global Markets Inc. have been extended to Oct. 31, 2006. In the event that Novelis is not able to file its quarterly report on Form 10-Q for the second quarter of 2006 by the deadlines defined in the notice of default and in its Credit Agreement waiver, the backstop financing facilities would provide the funding necessary to retire the Senior Notes and, if needed, replace the company's existing term loan and revolving credit facility. In addition, Novelis announced that it will be requesting an amendment to its US$1.8 billion Credit Agreement to modify certain financial covenants and other provisions contained in the Agreement. Specifically, Novelis will request that the lenders under the Credit Agreement temporarily relax the interest coverage covenant, leverage ratio covenant, and fixed charges covenant among other things. About Novelis Inc. Based in Atlanta, Georgia, Novelis, Inc., (NYSE: NVL) (TSX: NVL) -- http://www.novelis.com/-- provides customers with a regional supply of technologically sophisticated rolled aluminum products throughout Asia, Europe, North America, and South America. The company operates in 11 countries and has approximately 13,000 employees. Through its advanced production capabilities, the company supplies aluminum sheet and foil to the automotive and transportation, beverage and food packaging, construction and industrial, and printing markets. The company has operations in Malaysia and Korea. * * * Moody's Investors Service downgraded Novelis Inc.'s corporate family rating to B1 from Ba3, the bank revolver rating to Ba3 from Ba2, the bank term loan rating to Ba3 from Ba2, and senior unsecured notes to B2 from B1. Moody's also downgraded Novelis Corp.'s bank term loan rating to Ba3 from Ba2. NOVELIS INC: 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 North American Metals & Mining sectors, the rating agency confirmed its B1 Corporate Family Rating for Novelis Inc. Additionally, Moody's held its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Issuer: Novelis Inc. Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$500 Million Guaranteed Senior Secured Revolving Credit Facility Ba3 Ba2 LGD2 24% US$312 Million Guaranteed Senior Secured Term Loan B Ba3 Ba2 LGD2 24% US$1.4 Billion 7.25% Guaranteed Senior Unsecured Notes B2 B3 LGD5 76% Issuer: Novelis Corporation Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$543 Million Guaranteed Senior Secured Term Loan B Ba3 Ba2 LGD2 24% 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 Atlanta, Georgia, Novelis, Inc. -- http://www.novelis.com/-- provides customers with a regional supply of technologically sophisticated rolled aluminum products throughout Asia, Europe, North America, and South America. The company operates in 11 countries and has approximately 13,000 employees. Through its advanced production capabilities, the company supplies aluminum sheet and foil to the automotive and transportation, beverage and food packaging, construction and industrial, and printing markets. The company has operations in Malaysia and Korea. SHINHAN BANK: Plans Aggressive Expansion in Southeast Asia ---------------------------------------------------------- Shinhan Bank is planning an aggressive expansion in Asia, specifically in the Southeast region, the Financial Times reports. Shinhan Chief Executive Officer Shin Sang-hoon told the FT that the Bank is eyeing Southeast Asia very closely and is even thinking of acquiring overseas financial institutions or buying stakes in foreign banks in addition to opening more branches. The Bank intends to increase the number of its banks abroad from 17 to 30, Dow Jones Newswires says, citing the FT report. According to the report, the Bank's plans are in line with its pursuit for new areas of growth and in its bid to become of the region's leading banks. About Shinhan Bank Headquartered in Taepyeong-no, Seoul, Shinhan Bank -- http://www.shinhan.com/-- was established in 1982 with capital from Korean residents in Japan. It is Korea's fourth largest bank by assets -- second largest after merging with Chohung Bank -- holding a 9% share of deposits and 11% of loans. The bank has developed a strong franchise in the consumer as well as small and medium-sized enterprise segments. In September 2001, it formed a holding company, Shinhan Financial Group, under which it and five other affiliates became stable companies. Since then, the Shinhan Financial Group has expanded its organizational structure to include 11 subsidiaries and is now Korea's second largest financial group. The Troubled Company Reporter - Asia Pacific reported on March 16, 2006, that Moody's Investors Service has raised Shinhan Bank's Bank Financial Strength Rating to D+ from D. The revised rating carries a stable outlook. The higher BFSR reflects the bank's sustained financial fundamentals upon its merger with affiliate Chohung Bank. Despite Moody's initial concerns, Chohung Bank's credit- worthiness under its parent, Shinhan Financial Group, has improved substantially. Therefore, the absorption of Chohung Bank into Shinhan Bank will not dilute the financial health of the combined bank as greatly anticipated at the time of the acquisition. Nonetheless, the financial fundamentals place Shinhan Bank at the low end of the rating band. WOORI BANK: To Expand United States Operations ---------------------------------------------- Woori Bank plans to expand its business operations in the United States market, The Korea Herald reports, citing a statement made by the Bank's officers. As part of its expansion plans, the Bank's subsidiary, Woori America Bank, will open three branches in early 2007 in areas with a high concentration of Korean-Americans in Los Angeles, California, the Korean daily reports. Woori Bank is also thinking of putting its money in real estate projects promoted by Korean contractors or even investing directly in some Korean enterprises that show a solid market performance in those Los Angeles areas, the newspaper adds. According to the newspaper, Woori Bank Chief Executive Officer Hwang Young-key disclosed the Bank's plan to invest US$25 million in a construction project by Korean builder Shinyoung Co. in the Korea Town area in Los Angeles. About Woori Bank Woori Bank -- http://www.wooribank.com/-- is a government-owned bank headquartered in Seoul, Korea. The bank was established in 2002, and includes the former Hanbit Bank, Sangup Bank and Hanil Bank. It is a part of the Woori Financial Group. It has branches all over the world, including in New York, Los Angeles, Beijing, Tokyo, Hong Kong, Indonesia, Bahrain, Singapore, Moscow, London, and Dhaka. * * * Fitch Ratings gave Woori Bank an individual rating of 'B/C' effective July 20, 2005. Moody's Investors Service gave Woori a 'D+' Bank Financial Strength Rating effective March 14, 2006. WOORI FINANCE: CEO Disciplined Over Large Bonus Payments -------------------------------------------------------- The Korea Deposit Insurance Corp. took disciplinary action against Woori Finance Holdings Co. Ltd.'s Chairman Hwang Young- Key on October 18, 2006, The Korea Herald reports. KDIC, which holds 78% in Woori Finance, also slapped a warning on another Woori Bank executive and demanded that the Bank reprimand four more, the newspaper added. Woori Bank is one of the subsidiaries of Woori Finance. The Troubled Company Reporter - Asia Pacific reported on October 17, 2006, of KDIC's plans to impose disciplinary measures against Woori Finance's executives for paying high bonuses to employees. KDIC asserted that the large bonuses are a serious violation of a memorandum of agreement it signed with the holding company in August 2005. Pursuant to the MOU, Woori Finance is required to get KDIC's permission in, among others, adjusting employee's pay scale and making major management decisions. The parties signed the MOU to save Woori from near collapse during the financial crisis in 1997-1998. According to The Korean Herald, Woori officials strongly protested KDIC's move arguing that the decision to pay huge bonuses was made to boost employee morale. Woori officials believe that KDIC's interference leaves no room for the Bank to pursue its own management and business strategies in the face of intensifying competition, the newspaper says. Citing industry sources, the Korean newspaper says that the disciplinary action predicts ill for Mr. Hwang, who will need the majority shareholder's support to extend his term as chairman of Woori Finance and Woori Bank. His term will end in March 2007. About Woori Finance Holdings Woori Finance Holdings Co., Ltd. -- http://www.woorifg.com/-- is a holding company of Woori Bank, Kwangju Bank, Kyongnam Bank, and Woori Credit Card. The Company manages and controls its financial subsidiaries. It engages in a range of businesses, including commercial banking, credit cards, capital markets activities, international banking, asset management, and bancassurance. Fitch Ratings gave Woori Finance Holdings a 'B/C' Individual Rating effective on September 30, 2005. =============== M A L A Y S I A =============== ARMSTRONG WORLD: McDermott Will Wants Court to OK US$88,001 Fees ---------------------------------------------------------------- McDermott Will & Emery LLP asks Honorable Judith Fitzgerald, U.S. Bankruptcy Judge for the District of Delaware, to award it US$88,001 in administrative expenses, representing compensation for professional services performed from Jan. 1, 2006, through Aug. 31, 2006, for the board of directors of non-debtor Armstrong Holdings, Inc., and reimbursement of expenses. Armstrong World Industries, Inc., is an indirect, wholly-owned subsidiary of Armstrong Holdings. The Debtor, previously a publicly traded company, underwent a corporate restructuring effective May 1, 2000, at which time Armstrong Holdings was created as a separate public holding company. Pursuant to the May 2000 Restructuring, each share of the Debtor was exchanged for one share of Armstrong Holdings, and each member of the company's Board became a member of the Armstrong Holdings Board. Armstrong Holdings' ownership of the Debtor comprises substantially all of its assets. Armstrong Holdings owns stock in no other corporation, has no other subsidiaries, conducts no independent business operations, and has no material assets other than its indirect ownership of the Debtor. Ryan T. Schultz, Esq., at McDermott Will & Emery LLP, in Chicago, Illinois, relates that Armstrong Holding's Board has been represented by his firm since Nov. 11, 2000. The Board retained McDermott to provide advice on issues relating to: -- its ongoing status as a public company; -- Armstrong World Industries, Inc.; -- the Chapter 11 cases of the Debtor and its debtor- affiliates; and -- various other corporate and business matters, including potential and threatened litigation. Mr. Schultz says the Debtor pays for McDermott's fees and expenses as part of its administrative expenses pursuant to Sections 503(b)(3)(D) and (b)(4) of the Bankruptcy Code. The Court has approved McDermott's previous requests for payment of fees and expenses on account of its representation of Armstrong Holding's Board: Period Fees & Expenses ------ --------------- Dec. 6, 2000, to June 30, 2005 (First Fee Period) US$1,156,873 July 1, 2005, to Dec. 31, 2005 (Second Fee Period) 91,335 McDermott's fee request for US$88,001 covers the third fee period. Mr. Schultz asserts that McDermott has endeavored to represent Armstrong Holdings' Board in the most expeditious and economical manner possible. The firm's professional services or expenses were rendered or expended solely on behalf of Armstrong Holdings' Board and directly benefited the Debtors' bankruptcy estates and their creditors. Hence, McDermott should be compensated for the time spent and expenses it has incurred during the Third Fee Period. The work performed by McDermott's attorneys and staff during the Third Fee Period include: (a) advising the Board regarding: (1) its responsibilities as fiduciaries under applicable state and federal law; (2) corporate governance issues, including compliance with Sarbanes-Oxley, as well as the effect of related Chapter 11 filings; (3) various issues relating to the Debtors' directors and officers insurance policies, including coverage, policy form and endorsements; (4) the District Court's rejection of, and the Third Circuit's affirmation of, the Debtor's Plan of Reorganization; and (5) various dissolution matters; (b) reviewing certain correspondence to Armstrong Holding's Board, and reviewing and commenting on Armstrong Holdings' filings with the Securities and Exchange Commission; (c) working on Armstrong Holdings' claim and tax issues; (d) consulting with and advising the Board regarding and interpreting strategic developments in, the Chapter 11 cases and negotiations regarding a Chapter 11 plan; (e) attending all board and most committee meetings, including conducting outside director executive sessions; (f) consulting with the Debtors' counsel, Weil, Gotshal & Manges LLP, regarding changes in certain elements of the Debtor's reorganization plan and related agreements; and (g) assisting Armstrong Holding's Board in addressing operational, financial, legal and strategic issues confronting Armstrong Holdings, the Debtors and Armstrong Holdings' Board. Based in Lancaster, Pennsylvania, Armstrong World Industries, Inc. -- http://www.armstrong.com/-- the major operating subsidiary of Armstrong Holdings, Inc., designs, manufactures and sells interior floor coverings and ceiling systems, around the world. The company has Asia-Pacific locations in Malaysia, Australia, China, Hong Kong, Indonesia, Japan, Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam. It also has locations in Colombia, Costa Rica, Greece and Iceland, among others. The Company and its debtor-affiliates filed for chapter 11 protection on December 6, 2000 (Bankr. Del. Case No. 00-04469). Stephen Karotkin, Esq., at Weil, Gotshal & Manges LLP, and Russell C. Silberglied, Esq., at Richards, Layton & Finger, P.A., represent the Debtors in their restructuring efforts. The Debtors tapped the Feinberg Group for analysis, evaluation, and treatment of personal injury asbestos claims. Mark Felger, Esq. and David Carickhoff, Esq., at Cozen and O'Connor, and Robert Drain, Esq., Andrew Rosenberg, Esq., and Alexander Rohan, Esq., at Paul, Weiss, Rifkind, Wharton & Garrison, represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Houlihan Lokey for financial and investment advice. The Official Committee of Asbestos Personal Injury Claimant hired Ashby & Geddes as counsel. When the Debtors filed for protection from their creditors, they listed US$4,032,200,000 in total assets and US$3,296,900,000 in liabilities. The Bankruptcy Court confirmed AWI's plan on Nov. 18, 2003. The District Court Judge Robreno confirmed AWI's Modified Plan on Aug. 14, 2006. The Clerk entered the formal written confirmation order on Aug. 18, 2006. The company's "Fourth Amended Plan of Reorganization, as Modified," has become effective and AWI has emerged from Chapter 11. (Armstrong Bankruptcy News, Issue No. 102; Bankruptcy Creditors' Service,Inc., http://bankrupt.com/newsstand/or 215/945-7000). The Troubled Company Reporter - Asia Pacific reports that Standard & Poor's Ratings Services assigned its 'BB' bank loan rating to the proposed US$1.1 billion senior secured bank facility of Armstrong World Industries Inc. (D/--/--), based on preliminary terms and conditions. BIMB HOLDINGS: To Seek Shareholders' OK for Proposals at AGM ------------------------------------------------------------ BIMB Holdings Berhad will seek its shareholders' approval at the Company's forthcoming 9th Annual General Meeting for these proposals: * Proposed Amendment to the Articles of Association -- the proposed amendment to the existing Article 51 (c) of the Company's Articles of Association will enable the members to exercise their voting rights pursuant to Section 148 (1) of the Companies Act, 1965, without having to fulfill the requirement of Article 51 (c). The proposed amendment will have a provision which states Section 149 (1)(b) of the Companies Act, 1965 shall not be applicable. The proposed amendment is conditional upon the approval of Bank Negara Malaysia and the Company's shareholders; * Proposed Renewal of Shareholders' Mandate For Recurrent Related Party Transactions -- During the Company's 8th Annual General Meeting convened on November 30, 2005, the shareholders had granted a mandate for the Company and its subsidiaries to enter into recurrent related party transactions. Pursuant to Paragraph 10.09 of the Listing Requirements, the mandate will lapse at the forthcoming 9th Annual General Meeting. Shareholders' approval will be sought for a renewal of the Mandate. About BIMB Holdings Headquartered in Kuala Lumpur, Malaysia, BIMB Holdings Berhad -- http://www.bankislam.com.my/-- is an investment holding company, which operates along Islamic principles. The Company was incorporated in Malaysia on March 20, 1997, and was listed on the Main Board of the Kuala Lumpur Stock Exchange on September 16 in the same year. Core subsidiaries of the Group are involved in various Islamic financial service activities including banking, stock-broking, leasing and other related services. The firm has incurred substantial losses since 2000 due to huge financing costs and high provisions for loss-making offshore units. For the quarter ended March 31, 2006, the Group incurred a pre-tax loss of MYR67,494,000 on a revenue of MYR300,103,000, COMSA FARMS: Fails to Submit Audited Accounts Ended March 2006 -------------------------------------------------------------- Comsa Farms Berhad has failed to submit its annual audited accounts for the financial year ended March 31, 2006, to the Bursa Malaysia Securities Berhad. The Company's Annual Audited Accounts for the period ended March 31, 2006, was due to be submitted on July 31, 2006. Pursuant to Paragraph 9.26 (4) of the Listing Requirements of Bursa Securities, if a listed issuer fails to issue the outstanding financial statements within three months from the expiry of the timeframes, the Bursa Securities will suspend trading the securities of the listed issuer. 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. CYGAL BERHAD: SC Extends Time for Implementation of Revamp Plan --------------------------------------------------------------- The Securities Commission approved Cygal Berhad's application seeking a final extension of the time within which the company may implement its corporate restructuring exercise. The SC extends the restructuring deadline until December 31, 2006. The debt restructuring includes: (i) Share Exchange; (ii) Debt Restructuring, which comprises: * Financial Institutions Scheme; * Non Financial Institutions Scheme; and * Part Settlement of amount owed to Offshore Financial Institution; (iii) additional issue to Commerce International Merchant Bankers Berhad; (iv) Rights Issue of Shares together with Warrants; (v) acquisition of property development companies; and (vi) delisting of Cygal and the listing of a new Investment Holding Company, Sycal Ventures Berhad (formerly known as Sycal Ventures Sdn Bhd, which was formerly known as Active Accord Sdn Bhd, in place of Cygal. About Cygal Berhad Headquartered in Kuala Lumpur, Malaysia, Cygal Berhad's principal activity is civil and building construction works. Its other activities include housing development; manufacturing and trading in ready mix concrete; trading in building materials; leasing of aircraft parts and equipment; provision of hotel management services; and investment holding. The Group's activities are located in Malaysia and Hong Kong. On Nov. 19, 2001, Cygal Berhad and its subsidiary companies finalized a debt restructuring agreement with their lenders on involving debts outstanding of approximately MYR230 million. The Troubled Company Reporter - Asia Pacific reported on January 13, 2006, that Cygal has obtained the consent of the majority of its financial institution creditors for a further extension of time within which Cygal is to meet the conditions precedent as stipulated in its Nov. 2001 Settlement Agreement with its creditors. The deal relates to the settlement of Cygal's MYR229,637,109 debt to its lenders. As of June 30, 2006, the Company has total assets of MYR225.079 million and total liabilities of MYR500.665 million resulting into a stockholders' deficit of MYR275.586 million FALCONBRIDGE LTD: Xstrata Acquires Additional Shares ---------------------------------------------------- Xstrata plc acquired at midnight (Toronto time) on Oct. 5, 2006, all of the common shares of Falconbridge Ltd. that were outstanding at the close of business on Sept. 1, 2006, and that Xstrata did not already beneficially own, pursuant to the statutory compulsory acquisition procedures. Xstrata now beneficially owns approximately 99.9% of the issued and outstanding Common Shares. Each shareholder of Falconbridge whose Common Shares were deemed to have been acquired under the First Compulsory Acquisition will receive the equivalent of Xstrata's offer price of CAD62.50 in cash for each Common Share once the shareholder delivers the certificate(s) representing those Common Shares, together with a transmittal and election form, to CIBC Mellon Trust Company in accordance with the instructions on the transmittal and election form. The aggregate cash consideration for the Common Shares acquired under the First Compulsory Acquisition is approximately CAD539 million (approximately US$478 million). Furthermore, on Sept. 25, 2006, pursuant to the provisions of section 189 of the Business Corporations Act (Ontario), Falconbridge acquired and cancelled an aggregate of 1,850,577 Common Shares for an aggregate cash consideration of approximately CAD116 million (approximately US$103 million). Xstrata mailed on Oct. 2, 2006, a second notice of compulsory acquisition in respect of all of the Common Shares that were issued after the close of business on Sept. 1, 2006, on conversion of the Falconbridge adjustable rate convertible subordinated debentures. All of the Debentures which were not converted into Common Shares by the close of business on Sept. 29, 2006, were redeemed on Oct. 2, 2006. Each shareholder of Falconbridge whose Common Shares are deemed to be acquired under the Second Compulsory Acquisition will also receive the equivalent of Xstrata's offer price of CAD62.50 in cash for each Common Share. At the completion of the Second Compulsory Acquisition, Xstrata will beneficially own 100% of the outstanding Common Shares. Falconbridge shareholders with questions or requests for copies of the documents, may contact: CIBC Mellon Trust Company Tel: +1-416-643-5500 1-800-387-0825 Further information is available at http://www.xstrata.com/falconbridge/ About Xstrata Xstrata plc -- http://www.xstrata.com/-- is a major global diversified mining group, listed on the London and Swiss stock exchanges. The Group is and has approximately 24,000 employees worldwide, including contractors. Xstrata does business in six major international commodities markets: copper, coking coal, thermal coal, ferrochrome, vanadium and zinc, with additional exposures to gold, lead and silver. The Group's operations and projects span four continents and nine countries: Australia, South Africa, Spain, Germany, Argentina, Peru, Colombia, the United Kingdom and Canada. Xstrata holds a 97% stake in Falconbridge. About Falconbridge Headquartered in Toronto, Ontario, Falconbridge Limited (TSX:FAL.LV)(NYSE: FAL) -- http://www.falconbridge.com/-- is a leading copper and nickel company with investments in fully integrated zinc and aluminum assets. Its primary focus is the identification and development of world-class copper and nickel orebodies. It employs 14,500 people at its operations and offices in 18 countries, including Malaysia. The company owns nickel mines in Canada and the Dominican Republic and operates a refinery and sulfuric acid plant in Norway. It is also a major producer of copper (38% of sales) through its Kidd mine in Canada and its stake in Chile's Collahuasi mine and Lomas Bayas mine. Its other products include cobalt, platinum group metals, and zinc. * * * Falconbridge's CDN$150 million 5% convertible and callable bonds due April 30, 2007, carry Standard & Poor's BB+ rating. JIN LIN: Unveils Scheme of Arrangement with Shareholders -------------------------------------------------------- Jin Lin Wood Industries Berhad, on October 18, 2006, unveiled its scheme of arrangement with shareholders. Jin Lin's scheme of arrangement with shareholders entails the: (i) reduction of Jin Lin's existing issued and paid-up share capital of MYR44,000,000 comprising 44,000,000 ordinary shares of MYR1.00 each in Jin Lin to MYR8,800,000 comprising 44,000,000 ordinary shares of MYR0.20 each; (ii) consolidation of 44,000,000 ordinary shares of RM0.20 each in Jin Lin into 8,800,000 Jin Lin Shares upon completion of the reduction; (iii) cancellation of the entire issued and paid-up share capital of Jin Lin of MYR8,800,000 comprising 8,800,000 Jin Lin shares upon completion of the consolidation; (iv) in consideration for the cancellation, Gefung Holdings Berhad shall allot and issue 8,800,000 new ordinary shares of MYR1.00 each at par to the shareholders of Jin Lin, credited as fully paid-up on the basis of one new Gefung Share for every one Jin Lin Share held after the consolidation; and (v) forthwith and contingent upon the cancellation, Jin Lin shall apply MYR8,800,000 out of the credit reserve arising in paying in full at par, 8,800,000 Jin Lin shares which shall be allotted and issued, credited as fully paid-up to Gefung. The share transfer book and the register of members will be closed on November 14, 2006. The Registrar can be reached at: Symphony Share Registrars Sdn Bhd Level 26, Menara Multi-Purpose Capital Square, No. 8 Jalan Munshi Abdullah 50100 Kuala Lumpur Telephone: 03-27212222 Facsimile: 03-27212530 About Jin Lin Headquartered in Kuala, Lumpur Malaysia, Jin Lin Wood Industries Berhad is engaged in the manufacture and trade of timber and related timber products. The Company is also involved in warehousing, chemical treatment, and investment holding. As of June 30, 2006, the Company's balance sheet showed total assets of MYR66,849,000 and total liabilities of MYR100,292,000, resulting into a stockholders' deficit of MYR33,443,000. MANGIUM INDUSTRIES: Unit Defaults on MYR15,878,520 as of Sept. -------------------------------------------------------------- As of September 30, 2006, the total payment default of Mangium Industries Bhd's wholly owned subsidiary, Mangium Sawmill Sdn Bhd, stands at MYR15,878,520.17. Mangium Sawmill owes MYR12,798,522.65 to Standard Bank Malaysia Berhad and MYR3,079,997.52 is owed to Southern Bank Berhad. The loans are unsecured. The Troubled Company Reporter - Asia Pacific reported that as of August 31, 2006, Mangium Sawmill's default totaled MYR15,760,249. The TCR-AP stated that Mangium attributes the insufficient cash flow from operations as cause of the company's inability to pay interest and principal obligations when they fell due. About Mangium Industries Berhad Headquartered in Kuala Lumpur, Malaysia, Mangium Industries Berhad -- formerly known as Serisar Industries Berhad -- manufactures and trades timber and timber related products. The Company also provides printing services, publisher, printer consultants and advertisers, trading of alcoholic beverages, general trading of office furniture and investment holding. Due to the unfavorable timber market and depressed prices for timber and timber related products throughout Asia since the financial crisis in the year 1997, many of the MIB Group's buyers were adversely affected and are facing financial difficulties leading to their inability to settle their outstanding balances. As a result, the cash flow generated from operations was not sufficient to service the interest and principal obligations to the lenders as and when they fell due. As of March 31, 2006, the Company registered accumulated losses of MYR16.29 million, as against accumulated losses of MYR19.25 million as of March 31, 2005. For the quarter ended March 31, 2006, the Company has a cash flow deficit of MYR25.9 million. MERCES HOLDINGS: Unit Served with Wind-Up Petition -------------------------------------------------- On October 18, 2006, Bentahara Sdn Bhd has filed a wind-up petition against Merces Builders (S) Sdn Bhd, a wholly owned subsidiary of Merces Holdings Berhad. Bentahara claims that Merces Builders owes it MYR126,288.56, together with interest at the rate of 2% per month from Jan. 6, 2001, to May 5, 2006, pursuant to Section 218, Companies Act, 1965. The debt is in accordance with the judgment obtained by Bentahara at the High Court Kota Kinabalu, Sabah vide suite No. 52-541 of 2001 on April 6, 2006. The total amount of claims added up to MYR275,742. Accordingly, the High Court of Kota Kinabalu will hear the wind- up petition on November 23, 2006. About Merces Holdings Merces Holdings Berhad's principal activities are the provision of property development and building construction works. The Company's other activity include investment holding. Operations of the Group are predominantly carried out in Malaysia. Merces Holdings has defaulted on several loan facilities and had faced winding-up petitions due to unsettled financial obligations. METROPLEX BERHAD: Unit Struck Off From Register of Companies ------------------------------------------------------------ The Companies Commission of Malaysia has informed Metroplex Berhad on October 19, 2006, that Jumantan Quarries (Sabah) Sdn Bhd, a dormant 90% owned subsidiary of Jumantan Sdn Bhd, which in turn is a wholly-owned subsidiary of Metroplex, has been struck off the Register of Companies pursuant to subsection 308(4) of the Companies Act, 1965. Jumantan Quarries had been dormant since its incorporation on August 20, 1996. The striking off of Jumantan Quarries will not have any material effect on the earnings of Metroplex for the financial year ending January 31, 2007. 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. PERDUREN (M) BERHAD: Exits Practice Note 17 Category ---------------------------------------------------- Perduren (M) Berhad, formerly known as Formis Malaysia Berhad, no longer triggers the criteria under Paragraph 2.0 of Practice Note 17 of Bursa Malaysia Securities Berhad, following the Company's Restructuring Scheme. Perduren was admitted into Bourse Practice Note 17 category on March 10, 2006, due to a deficit in its adjusted shareholders' equity and the impending cessation of its major business. About Perduren (Malaysia) Perduren Malaysia Berhad -- http://www.formis.net/-- formerly known as, Formis Malaysia Berhad, was incorporated in Malaysia under the Companies Act, 1965 on March 23, 1992, under the name of Orlando Holdings Berhad. The Company was first listed on the Second Board of Bursa Malaysia Securities Berhad on December 28, 1992, and subsequently, on March 20, 2000, changed to its present name before being transferred to Main Board of Bursa Securities on March 30, 2000. Perduren is principally an investment holding company and through its subsidiaries, is involved in the provision of hardware, software, maintenance and consultancy services in information technology business, computer networking solutions and systems integration as well as the wholesale and retail of full range of "Orlando" ready-made menswear and related accessories. SETEGAP BERHAD: Court Extends Restraining Order Until January 21 ---------------------------------------------------------------- The High Court of Kuala Lumpur has extended the Restraining Order pertaining to Setegap Berhad until January 21, 2007. The Restraining Order allows Setegap to implement its debt restructuring plan. The Plan consists of a proposed: -- debt settlement of all outstanding debt owed by the Company to its secured lenders and trade creditors for a total of MYR87.6 million; -- exchange of Setegap shareholders' ordinary shares of MYR1.00 each with Newco, or new company, shares on the basis of one Newco share for every five existing Setegap shares; -- transfer of listing status to Newco; and -- disposal by the Newco of the entire issued and paid-up capital of Setegap for a nominal consideration of MYR1.00. Moreover, the proposed plan were added with three new conditions, which are: -- to give access the independent Director, Mr. Lai Yoke Heong @ Lai Yoke Hoong to all the Company's applicants' accounts; -- make Director Heong a co-signatory of all the applicants' bank accounts; and -- to pay promptly the Director's fees and out-of-pocket expenses by the applicants. About Setegap Berhad Headquartered in Petaling Jaya, Malaysia, Setegap Berhad's principal activities consist of the construction and maintenance of roads, railways and building, including services rendered on quarrying. The Company's other activities include manufacturing and selling offroad construction equipment, asphalt plants, mixing plants, asphalt emulsions and premix. The Group also provides mechanical and electrical services, leases machinery and investment holding. Setegap's cash flow and profitability were affected by the Asian financial crisis in 1997/98. As of March 31, 2006, the Company's balance sheet showed MYR71,401,000 in total assets and MYR176,007,000 in total liabilities, resulting in a stockholders' deficit of MYR104,606,000. ===================== N E W Z E A L A N D ===================== ABIL PROPERTY: Commences Liquidation Proceedings ------------------------------------------------ On September 22, 2006, shareholders of Abil Property Ventnor Ltd resolved to liquidate Company's business and appointed Paul Ferguson Macnicol as liquidator. The Liquidator can be reached at: Paul F. Macnicol P.O. Box 44, Warkworth New Zealand Telephone:(09) 425 7719 Facsimile:(09) 425 7736 ALLEN WALKER: Creditors to Prove Claims on October 30 ----------------------------------------------------- Karen Betty Mason and Lloyd James Hayward were appointed as joint and several liquidators of Allen Walker Developments Ltd on September 28, 2006. According to the Troubled Company Reporter - Asia Pacific, Brian Anthony filed a petition to liquidate Allen Walker on June 26, 2006. The Joint Liquidators require Allen Walker's creditors to prove their claims by October 30, 2006, or be excluded from the benefit of any distribution the company will make. The Joint Liquidators can be reached at: Karen Betty Mason Lloyd James Hayward Meltzer Mason Heath Chartered Accountants, P.O. Box 6302 Wellesley Street, Auckland 1141 New Zealand Telephone:(09) 357 6150 Facsimile:(09) 357 6152 AUTOWORKS SERVICE: Faces Liquidation Proceedings ------------------------------------------------ The High Court of Auckland will hear a liquidation petition against Autoworks Service & Performance Centre Ltd on November 9, 2006, at 10:45 a.m. The Commissioner of Inland Revenue filed the petition with the Court on September 1, 2006. The Solicitors for the Petitioner can be reached at: E. M. Duncan-Sittlington Inland Revenue Department 1 Bryce Street, Hamilton New Zealand Telephone:(07) 959 0471 CHALET ARTHURS: Court Sets Date to Hear Liquidation Petition ------------------------------------------------------------ The High Court of Greymouth will hear a petition to liquidate The Chalet Arthurs Pass Ltd on November 1, 2006, at 10:00 a.m. The Commissioner of Inland Revenue filed the liquidation petition on August 28, 2006. The Solicitors for the Petitioner can be reached at: S. N. Mckenzie Preston Russell Law 92 Spey Street (P.O. Box 355) Invercargill New Zealand Telephone:(03) 211 0080 Facsimile:(03) 211 0079 E-COM SOLUTIONS: Appoints Joint and Several Liquidators ------------------------------------------------------- Liquidator John Michael Gilbert was on September 30, 2006, appointed to oversee the liquidation of E-Com Solutions Ltd. Accordingly, Mr. Gilbert requires E-Com Solutions' creditors to submit their proofs of claim by October 28, 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: J. M. Gilbert c/o C & C Strategic Limited Private Bag 47-927, Ponsonby Auckland, New Zealand Telephone:(09) 376 7506 Facsimile:(09) 376 6441 OTAHUHU PROPERTIES: Inability to Pay Debts Prompts Liquidation -------------------------------------------------------------- Shareholders of Otahuhu Properties Ltd on October 2, 2006, resolved to liquidate its business due to its inability to pay debts. Consequently, Richard Matthew Durney was appointed as liquidator. PROJECT TRANZACTIONS: Court to Hear Liquidation Petition -------------------------------------------------------- On September 5, 2006, the Commissioner of Inland Revenue filed before the High Court of Christchurch a liquidation petition against Project Tranzactions Ltd. The Court will hear the petition on October 30, 2006, at 10:00 a.m. The Solicitors for the Petitioner can be reached at: Julia Dykemantre Ground Floor Reception 518 Colombo Street (P.O. Box 1782) Christchurch 8140 New Zealand Telephone:(03) 968 0809 Facsimile:(03) 977 9853 QUALITY RESURFACING: Court Hears CIR's Liquidation Petition ----------------------------------------------------------- The High Court of Wellington heard a liquidation petition against Quality Resurfacing Solutions Ltd on October 16, 2006. A petition was filed by the Commissioner of Inland Revenue on September 6, 2006. The Solicitors for the Petitioner can be reached at: Julia Marie Snelson Technical and Legal Support Group Wellington Service Centre First Floor, New Zealand Post House 7-27 Waterloo Quay (P.O. Box 1462) Wellington New Zealand Telephone:(04) 890 1127 Facsimile:(04) 890 0009 SALES FACTORY: Names Craig as Liquidator ---------------------------------------- Grahame David Craig was on September 27, 2006, appointed liquidator of The Sales Factory Ltd. Hence, the liquidation of the company's business commenced that same day. The Liquidator can be reached at: Grahame David Craig 728 River Road (P.O. Box 830) Hamilton New Zealand Telephone:(07) 856 6060 Facsimile:(07) 856 0364 Email: bizdiag@xtra.co.nz TSSL LTD: Court Hears Liquidation Petition ------------------------------------------ The Commissioner of Inland Revenue on September 6, 2006, filed before the High Court of Wellington a liquidation petition against TSSL Ltd. The Court heard the petition on October 16, 2006. The Solicitors for the Petitioner can be reached at: Julia Marie Snelson Technical and Legal Support Group Wellington Service Centre First Floor, New Zealand Post House 7-27 Waterloo Quay (P.O. Box 1462) Wellington New Zealand Telephone:(04) 890 1127 Facsimile:(04) 890 0009 ===================== P H I L I P P I N E S ===================== SAN MIGUEL CORP: San Miguel Enters Thai Fruit Juice Market ---------------------------------------------------------- San Miguel Corporation has expanded into the Thai fruit juice drinks market now that its THB1.4-billion factory in Rayong, Thailand, is operational, The Bangkok Post says. The company will introduce new fruit juice products made in Rayong by 2007. According to the report, San Miguel's move is part of the company's strategy to expand operations in South China, Thailand, Indonesia and Vietnam. San Miguel started to build its Rayong factory on a 95-rai plot two years ago and started making fruit juice a few months ago, The Post cites Jose Daniel Javier, vice-president and general director for San Miguel's non-alcoholic international business, as saying. San Miguel told The Post that it started to market "Berri," a fruit juice brand that it took over from National Food in Australia, last week. Mr. Javier said that the company plans to use Berri as a regional food brand in four countries: China, Thailand, Vietnam and Indonesia. After Berri, The Post notes, San Miguel intends to introduce Sun Blest, a 40% fruit juice product made in the Rayong factory. San Miguel wants about 5% of Thailand's total fruit juice market in its first year of operations, with sales estimated at THB4 billion. Mr. Javier said that San Miguel would use about 30% of its sales to promote Berri beverages in the first year of operation. It aims to become one of the top five premium fruit juice brands in Thailand within five years, The Post says. Apart from fruit juice, the company also plans to expand into carbonated drinks, sports drinks, dairy products and drinking water in Thailand in the near future. About San Miguel Corp. Headquartered in Manila, Philippines, San Miguel Corporation -- http://www.sanmiguel.com.ph/-- through its subsidiaries, operates food, beverage and packaging businesses. The Company's products include beer, wine and spirits, soft drinks, mineral water, chicken and pork products. San Miguel markets its products both in the domestic and overseas markets. The Company also manufactures glass, metal, plastic, paper and composites packaging products. A Troubled Company Reporter - Asia Pacific report on Oct. 12, 2006, stated that Moody's Investors Service affirmed its Ba1 corporate family rating. Standard & Poor's Ratings Services gave San Miguel Corp. a 'BB' foreign currency corporate credit rating and a 'B' rating to its proposed five-year benchmark non-callable, non-cumulative, non- voting, perpetual preferred shares to be issued by San Miguel Capital Funding. ================= S I N G A P O R E ================= AMARANTH ADVISORS: Cuts 350 Jobs as Onset of Closing Down --------------------------------------------------------- Amaranth Advisors started terminating about 350 of its employees as the Company will shut down its business operations for good this March 2007, according to the Chicago Tribune. In a letter written and sent to a Connecticut Department of Labor unit that monitors business closures, Nicholas Maounis, founder of Amaranth, stated that the Company's failure to sell part or all of its business to an outside investor made layoffs unavoidable. Moreover, the Chicago Tribune recounts that the Connecticut Officials are looking for potential employers who can hire Amaranth employees and keep them in the state. Steve Bruce, Amaranth spokesman, has disclosed that at least 1,000 jobs may fit for the Company's employees in the rival hedge funds and financial firms. The Troubled Company Reporter - Asia Pacific reported on Oct. 3, 2006, that the Amaranth is set to close down its operations. Mr. Maounis has sent a letter to investors stating that the fund was suspending all redemptions for Sept. 30 and Oct. 31, to enable the Amaranth funds to generate liquidity for investors in an orderly fashion. The letter also disclosed that Amaranth has lost US$6.4 billion and assets were down 65% to 70% for the month and 55% to 60% for the year, the TCR-AP stated. * * * Amaranth Advisors is based in Greenwich, Connecticut with offices in Toronto, Canada, London, England and George Street, Singapore is an investment management firm. Amaranth specializes in a broad spectrum of alternative investments and trading strategies, through a multi-strategy investment fund and fund dedicated to long-short equities. The Troubled Company Reporter - Asia Pacific reported on September 25, 2006, that the company has made significant losses in its energy-related investments after a dramatic move in natural gas prices. Moreover, Amaranth faces multiple regulatory probes and possible lawsuits after disclosing in September that it had lost 35%, or approximately US$6 billion, of the value of its natural gas bets due to a dramatic move in gas prices. Amaranth transferred its energy portfolio to Citadel Investment Group and J.P. Morgan Chase & Co. following the loss announcement. CLASSE CO: Proofs of Debt Due on November 20 -------------------------------------------- Classe Co. Pte Ltd, which is in liquidation, requires its creditors to submit their proofs of debt by November 20, 2006, to be included in the Company's distribution of dividend. The Company's liquidator can be reached at: Lee Kay Beng 7500A Beach Road #16-321 The Plaza Singapore 199591 FREESCALE SEMICONDUCTOR: Expands Joint Efforts with dSPACE ---------------------------------------------------------- dSPACE, Inc., is expanding collaborative efforts with Freescale Semiconductor, Inc., to maximize production gains and shorten product development cycles for their shared customer base -- primarily automotive OEMs and tier-one suppliers. dSPACE and Freescale are working together to streamline the performance and functionality of several key products to optimize compatibility and ease of use. "dSPACE and Freescale have a long-standing relationship and are committed to working together to support the best interests of our shared customer base," said Santhosh Jogi, Engineering Manager for dSPACE, Inc. "Together, we are leveraging the best possible performance for our customers." One of the most beneficial outcomes of the collaborative effort between these companies is the integration of dSPACE's automatic code generator -- TargetLink with Freescale's newest family of MPC5500 automotive microcontrollers or MCU built on Power Architecture technology. Built on the TargetLink base suite, optional modules are available to run simulations on specific microcontroller targets and to generate code optimized for those microcontrollers. Today, dSPACE provides a simulation module for the MPC5500 family and through cooperative engineering with Freescale, dSPACE will release a Target Optimization Module or TOM for this popular MCU family. With this TOM, TargetLink can be specifically configured to interface with MPC5500 processors, resulting in the output of highly customized, efficient code generation. Both products support high-end applications requiring complex, real-time control (e.g. multipoint fuel injection control, electronically-controlled transmissions, avionics, robotics, motion control, etc.). "TargetLink, by itself, delivers quality, efficient autocoding," said Mr. Jogi. "When implemented with the TOM, TargetLink has the added capability of leveraging the power of MPC5500 hardware to achieve true, optimal performance." "Since dSPACE tools work with our automotive MCUs, it is in our best interest to make sure that dSPACE's TOM is highly optimized for our silicon," added Momin Salim, Director of Freescale Semiconductor's Virtual Garage Lab. "Together, we are enabling our customers to achieve optimal performance from our MCUs." The TOM will be available in the new 2.2 version of TargetLink, scheduled for release before the end of 2006. Another outcome of this joint working relationship is a product\ alignment between dSPACE's TargetLink and Freescale's RAppID ToolBox. Freescale has designed its RAppID ToolBox, an add-on library of peripheral blocksets and optimized code blocks, to work in concurrence with TargetLink, MATLAB and Simulink. Together, these tools enable control engineers to quickly execute and evaluate control models on MPC5554 MCU hardware platforms. The necessary software -- including initialization code, I/O drivers and a scheduler or operating system -- is automatically generated. "By making sure that the RAppID ToolBox works seamlessly with TargetLink, we are enabling customers to move from the modeling phase to on-target rapid prototyping on our MCU platforms," Mr. Salim said. A third example of the close relationship between dSPACE and Freescale is the incorporation of the MPC5554 microcontroller as a core component of dSPACE's RapidPro Control Unit. This product creates a powerful environment for engineers to develop and test new concepts for control functions on a production- oriented microcontroller, and do so in a model-based approach, with the inclusion of an integration package for TargetLink. About dSPACE Headquartered in Paderborn, Germany, dSPACE is a producer of engineering tools for the design, control and calibration of electronic and mechatronic systems. dSPACE offers a complete tool chain of products to enhance development, testing and validation of real-time embedded controllers. dSPACE tools support model-based control design, rapid control prototyping, automatic code generation, hardware-in-the- loop simulation and calibration. About Freescale Based in Austin, Texas, Freescale Semiconductor, Inc. (NYSE:FSL) (NYSE:FSL.B) -- http://www.freescale.com/-- designs and manufactures embedded semiconductors for the automotive, consumer, industrial, networking and wireless markets. Freescale became a publicly traded company in July 2004. The company has design, research and development, manufacturing or sales operations in more than 30 countries, including Singapore, Australia, China, Hong Kong, India, Japan, Korea, Malaysia and Taiwan. The company's 7-1/8% Senior Notes due 2014 carry Moody's Investors Service's Ba1 rating. Fitch downgraded Freescale Semiconductor Inc.'s Issuer Default Rating, senior unsecured notes, and senior unsecured bank credit facility to 'BB+' from 'BBB-' following the company's confirmation that it has entered into a definitive agreement to be purchased by a consortium of private equity firms for US$17.6 billion, the largest ever technology leveraged buy-out. FREESCALE: Updates Progress on STMicroelectronics Joint Program --------------------------------------------------------------- Freescale Semiconductor and STMicroelectronics have achieved critical milestones in the advancement of their joint design program aimed at accelerating innovation in the automotive industry. Since announcing their initiative seven months ago, the two companies have staffed joint design facilities, designed a next-generation micro controller core, defined product roadmaps, and aligned process technologies. "Building on our long-term relationship, STMicroelectronics' and Freescale's engineering teams have rolled up their sleeves and jumped into all facets of the joint design program," said Ugo Carena, corporate vice president and general manager of the Automotive Products Group of STMicroelectronics. "We've established a hierarchy, staffed several design sites, set up global logistics, and designed a micro controller core that will be a basic building block for many future designs. This has been an unprecedented effort and demonstrates the tremendous value both companies will realize from the joint development initiative." The two companies have opened joint design centers to provide broad access to global design talent in silicon, software, and automotive applications. The two companies anticipate reaching a headcount of 120 engineers by the end of the year. As part of their far-reaching collaboration, Freescale and ST have standardized on Power Architecture technology as the instruction set architecture for jointly developed micro controller or MCU products. The two companies also are focusing product development efforts on a wide range of automotive applications, including powertrain, chassis, motor control, and body systems. One of the most noteworthy achievements of the collaboration to date is the joint definition and development of a power- efficient, 32-bit micro controller core based on the Power Architecture e200 core. This newly developed Z0H derivative core serves as the CPU of the companies' initial cost-optimized MCUs designed for value-priced body control applications. Initial samples of these jointly designed products are planned for the second half of 2007. One indication of the cooperation's success is ST's decision to migrate its future automotive MCU designs to these and other derivative cores. "The speed at which we defined and agreed upon a next-generation core built on Power Architecture technology underscores the strength and momentum of our collaboration," said Paul Grimme, senior vice president and general manager of Freescale's Transportation and Standard Products Group. "Our commitment to develop an optimized core and implement it in an application- specific MCU sets a high bar for innovation. As we move from design to production, customers will benefit from the dual- source availability of our jointly designed automotive MCUs." Freescale and ST plan to manufacture jointly designed MCU products on mutually aligned 90-nm process technology. The companies have achieved the milestone of aligning a process test vehicle at Freescale and ST wafer fabs. In addition, joint development of non-volatile memory (NVM) technology is underway. Forthcoming MCU products are expected to be designed to integrate cost- and performance-optimized flash modules for specific automotive applications. The companies expect future design and development activities will extend into additional applications, such as safety systems, driver assistance, and driver information. About STMicroelectronics STMicroelectronics is a global leader in developing and delivering semiconductor solutions across the spectrum of microelectronics applications. An unrivalled combination of silicon and system expertise, manufacturing strength, Intellectual Property portfolio and strategic partners positions the Company at the forefront of System-on-Chip technology and its products play a key role in enabling today's convergence markets. The Company's shares are traded on the New York Stock Exchange, on Euronext Paris and on the Milan Stock Exchange. In 2005, the Company's net revenues were US$8.88 billion and net earnings were US$266 million. Further information on ST can be found at About Freescale Based in Austin, Texas, Freescale Semiconductor, Inc. (NYSE:FSL) (NYSE:FSL.B) -- http://www.freescale.com/-- designs and manufactures embedded semiconductors for the automotive, consumer, industrial, networking and wireless markets. Freescale became a publicly traded company in July 2004. The company has design, research and development, manufacturing or sales operations in more than 30 countries, including Singapore, Australia, China, Hong Kong, India, Japan, Korea, Malaysia and Taiwan. The Company's 7-1/8% Senior Notes due 2014 carry Moody's Investors Service's Ba1 rating. Fitch downgraded Freescale Semiconductor Inc.'s Issuer Default Rating, senior unsecured notes, and senior unsecured bank credit facility to 'BB+' from 'BBB-' following the company's confirmation that it has entered into a definitive agreement to be purchased by a consortium of private equity firms for US$17.6 billion, the largest ever technology leveraged buy-out. GREENLODGE HOLDING: Creditors Must Prove Debts by Nov. 13 --------------------------------------------------------- Chee Yoh Chuang and Lim Lee Meng, as liquidators for Greenlodge Holding Pte Ltd, asks creditors of the Company to submit their proofs of debt by November 13, 2006. Failure to comply with the requirement will exclude a creditor from sharing in the Company's distribution of dividend. The Liquidators can be reached at: Chee Yoh Chuang Lim Lee Meng 18 Cross Street #08-01 Marsh & McLennan Centre Singapore 048423 HEXION SPECIALTY: Tenders Offer to Holders of US$625-Mil. Notes --------------------------------------------------------------- Hexion Specialty Chemicals, Inc., is offering to purchase for cash any and all of the outstanding: (i) US$150,000,000 principal amount at maturity of Second- Priority Senior Secured Floating Rate Notes due 2010, (ii) US$150,000,000 principal amount at maturity of Second- Priority Senior Secured Floating Rate Notes due 2010; and (iii) US$325,000,000 principal amount at maturity of 9% Second-Priority Senior Secured Notes due 2014 The Notes were issued by Hexion U.S. Finance Corp. and Hexion Nova Scotia Finance, ULC on the terms and subject to the conditions in the Offer to Purchase and Consent Solicitation Statement dated Oct. 12, 2006 and the accompanying Letter of Transmittal and Consent. The Company is also soliciting consents to eliminate most of the restrictive covenants and the Liens in the indentures under which the Notes were issued. The Company disclosed that it expects to enter into a new US$2 billion term loan facility and a new US$50 million synthetic letter of credit facility, which will replace its May 2006 term loan and synthetic letter of credit facilities. The Company will continue to have access to its current five-year US$225 million revolving credit facility. In addition the Company expects to raise US$825 million of senior secured debt in connection with its offer to purchase the Notes. It intends to use US$500 million of the additional cash available under its new credit facilities and from the Secured Debt Financing to pay a common stock dividend to its shareholders and the balance of the proceeds to pay for the Notes repurchased in the Tender Offers. The Company has also filed an application with the Securities and Exchange Commission for the withdrawal of its registration statement on Form S-1, relating to its planned initial public offering. The total consideration for each US$1,000 principal amount of the 2005 Floating Rate Notes tendered and accepted for purchase pursuant to the tender offer will be US$1,023. The total consideration for each US$1,000 principal amount of the 2004 Floating Rate Notes will be US$1,022.50. The total consideration for the 9% Notes tendered and accepted for purchase will be determined based on a yield to the first redemption date equal to the sum of the yield of the 3.625% U.S. Treasury Security due July 15, 2009, as calculated by Credit Suisse Securities LLC plus a fixed spread of 50 basis points. The Company will pay accrued and unpaid interest up to, but not including, the applicable payment date. Each holder who tenders its Notes and delivers consents on or prior to Oct. 24, 2006 will be entitled to a consent payment of US$30 for each US$1,000 principal amount of Notes. Noteholders who tender after the Consent Date, but prior to the Expiration Date, will receive the total consideration minus the consent payment. Holders who tender Notes are required to consent to the proposed amendments to the indentures and the collateral agreements. The tender offers will expire at midnight, New York City time, on Nov. 8, 2006, and the consent solicitations will expire on Oct. 24, 2006. The tender offer is subject to the conditions set forth in the Offer Documents including the receipt of consents of the noteholders representing a majority in aggregate principal amount of the Notes and of the Company obtaining the financing necessary to pay for the Notes and consents. Credit Suisse Securities (USA) LLC act as Dealer Manager of the tender offers and consent solicitations. Questions about the tender offers and consent solicitations may be directed to Credit Suisse Securities (USA) LLC at (800) 820-1653 (toll free) or (212) 325-7596 (collect). Copies of the Offer Documents and other related documents may be obtained from D.F. King & Co., Inc., the information agent for the tender offers and consent solicitations, at (800) 290-6426 (toll free) or (212) 269-5550 (collect). About Hexion Specialty Based in Columbus, Ohio, Hexion Specialty Chemicals Inc. -- http://hexionchem.com/-- makes thermosetting resins (or thermosets). Thermosets add a desired quality (heat resistance, gloss, adhesion) to a number of different paints and adhesives. Hexion also makes formaldehyde and other forest product resins, epoxy resins, and raw materials for coatings and inks. The company has 86 manufacturing and distribution facilities in 18 countries. The company has its Asian headquarters in Singapore, with offices in Australia, China, Korea, Malaysia, New Zealand, Taiwan, and Thailand. * * * Standard & Poor's Ratings Services assigned its 'B+' rating and its recovery rating of '3' to Hexion Specialty's US$1.675 billion senior secured term loan and synthetic letter of credit facilities. The rating on the existing US$225 million revolving credit facility was lowered to 'B+' with a recovery rating of '3', from 'BB-' with a recovery rating of '1', to reflect the similar security package as the new term loan and synthetic letter of credit facility. The ratings on the existing senior second secured notes were raised to 'B', with a recovery rating of '3', from 'B-' with a recovery rating of '5'. The ratings on the senior second secured notes reflect the amount of priority claims of the revolving facility and the first-lien term loan lenders. At the same time, Standard & Poor's affirmed its 'B+' corporate credit rating on Hexion and revised the outlook to stable from negative. MSM HOLDINGS: Proofs of Debt Due on October 30 ---------------------------------------------- The creditors of MSM Holdings Pte Ltd must submit their proofs of debt by October 30, 2006, to the company's liquidators, Chen Yeow Sin and Abuthahir Abdul Gafoor. Failure to comply with the requirement will exclude the creditor from sharing in the Company's distribution of dividend. The Company's Joint and Several Liquidators can be reached at: Chen Yeow Sin Abuthahir Abdul Gafoor 1 Raffles Place #20-02 OUB Centre Singapore 048616 ODYSSEY RE: Files Annual Report for Year Ended Dec. 31, 2005 ------------------------------------------------------------ Odyssey Re Holdings Corp. has filed its Annual Report on Form 10-K/A for the year ended Dec. 31, 2005, with the United States Securities and Exchange Commission, restating its consolidated financial statements as of and for the years ended Dec. 31, 2005, 2004 and 2003, along with affected Selected Consolidated Financial Data for 2002 and 2001 and quarterly financial information for 2005 and 2004. The restatement corrects the accounting treatment for investments containing embedded derivatives and certain equity method investments. The corrections relating to these investments, which include the impact of changes in other comprehensive income, resulted in a cumulative increase in shareholders' equity of US$16.0 million, to US$1.64 billion, as of Dec. 31, 2005. The aggregate net effect of the restatement for each period is to increase 2005 net loss by US$12.2 million, increase 2004 net income by US$6.9 million, increase 2003 net income by US$12.4 million, increase 2002 net income by US$11.2 million and increase 2001 net loss by US$3.4 million. The financial information contained in the Odyssey Re's Form 10-K/A for the year ended Dec. 31, 2005, reflects the impact of this restatement. The effect of this restatement was reported in the company's Quarterly Report on Form 10-Q for the second quarter of 2006. In connection with the restatement, management has determined that Odyssey Re did not maintain effective controls, review procedures and communications related to investment accounting to ensure conformity with generally accepted accounting principles, which constitutes a material weakness. To address the material weakness, management will implement a remediation plan that will supplement the existing controls of the company. Odyssey Re Holdings Corp. -- http://www.odysseyre.com/-- is an underwriter of property and casualty treaty and facultative reinsurance, as well as specialty insurance. Odyssey Re operates through its subsidiaries, Odyssey America Reinsurance Corporation, Hudson Insurance Company, Hudson Specialty Insurance Company, Clearwater Insurance Company, Newline Underwriting Management Limited and Newline Insurance Company Limited. The company underwrites through offices in the Singapore, United States, London, Paris, Toronto and Mexico City. Odyssey Re Holdings Corp. is listed on the New York Stock Exchange under the symbol ORH. * * * Odyssey Re Holdings Corp.'s preferred stock rating carries Ba2 from Moody's and BB from Fitch. The company's senior unsecured debt and long-term issuer default ratings also carry BB+ from Fitch. Moody's placed its rating on Oct. 12, 2005, with a stable outlook. Fitch placed its ratings on March 23, 2006. PETROBRAS INT'L: Fitch Rates US$500 Million Senior Notes at BB+ ------------------------------------------------------------- Fitch Ratings assigned a 'BB+' rating to Petrobras' US$500 million 6.125% Senior Notes due 2016 issued through its wholly owned subsidiary, Petrobras International Finance Company. PIFCo is unconditionally guaranteed by Petrobras. Proceeds are to be used for debt refinancing and other general corporate purposes. The ratings of Petroleo Brasileiro S.A. are supported by substantial proved hydrocarbon reserves and increasing upstream output, recognized leadership in offshore exploration and production, a favorable international product price environment, successful corporate and industry restructuring during the past decade, a transition to more transparent financial standards, and dominant domestic market shares. The company further benefits from material international operations and its shift to a net export position in 2005, which supports the generation of foreign currency cash flow. These factors are tempered by vulnerability to fluctuations in international commodity prices, exposure to local political interference, currency risk, domestic market revenue concentration, and significant medium- term capital-investment requirements linked to the company's ambitious strategic plan. The announced nationalization of Petrobras' Bolivian energy investments, while negative, is not expected to affect materially the company's credit quality or ratings. The combination of ultimate government control, which underscores the ability to influence corporate strategy and long-term policy decisions, and a significant domestic market focus continues to affect the company's rating. Earlier this year, Petrobras announced its 2007-2011 business plan, which primarily reflects new projects to increase production and refining both in Brazil and internationally, the increase in costs of related services and equipment in the productive chain, and a stronger local currency, all of which increases capital spending when expressed in U.S. dollars. Under the new business plan, Petrobras estimates it will invest US$87.1 billion through 2011, an increase of US$34.7 billion (66%) for the comparable period under the previous plan. Approximately US$49 billion (56% of total), up from US$31 billion (59%), has been allocated to exploration and production activities, representing a slight shift in allocation percentage toward downstream activities. Fitch views the planned increase in E&P investment, including additional investment in natural gas E&P, to be positive for the long-term credit quality of the company. Management projects no significant changes on the main corporate strategic targets or pressures on the financial profile, as approximately 87% of Petrobras' funding needs (investments and debt amortizations) should continue to be met via internal cash flows, with the rest to be financed with conventional financing mechanisms, project structures, and special-purpose vehicles. Fitch recognizes the positive credit effect of the market- oriented measures implemented in the past five years as well as improvements in corporate governance. The opening to private participation and deregulation, strong management commitment to increased financial transparency, corporate reorganization and modernization, and aggressive upstream production development, coupled with value-chain strategies, should strengthen credit fundamentals. While there has been close coordination of business plans with federal authorities, it does not appear to have affected market-oriented efforts to improve operational efficiencies, increase upstream production volumes, or adhere to capital discipline guidelines. Petrobras is a mixed-capital company, with the government owning approximately 40% of Petrobras' total capital and 55.7% of its voting capital. The remainder of the shares are publicly traded, and an estimated 40% is held by foreign investors. Despite Fitch's concerns generated by the significant imbalance between local currency revenues and hard currency expenses and liabilities, it is important to note that Petrobras' operations are of vital economic importance to the nation, suggesting the government has a prime incentive to ensure Petrobras' access to hard currency for servicing foreign obligations. Petrobras' financial profile remains strong, with solid credit- protection measures continuing to benefit from increased production and the global rise in hydrocarbon and product prices. The company reported total debt/LTM EBITDA of 0.4 times and EBITDA/interest expense of 26.5x under U.S. GAAP through June 2006. Petrobras maintains strong liquidity in relation to short-term debt obligations. The company ended the second quarter of 2006 with a total consolidated debt of US$19.682 billion, of which approximately 25% was classified as short term. The company's sizeable US$10.4 billion in cash and equivalents resulted in total net debt of US$9.3 billion. Petrobras' management has indicated its preference to maintain a substantial cash balance going forward, partially debt funded, to minimize its exposure to international capital market volatility. The company's EBITDA continues to be favored by the increase in the domestic production of oil and natural gas liquid, even though it was offset by scheduled maintenance stoppages in several production systems during the semester. On July 25, 2006, the company closed its tender for certain outstanding bonds of its subsidiary PIFCo for liability management purposes, which totaled US$866 million. About Petrobras Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro S.A. aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp-- was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. PETROLEO BRASILEIRO: Starting Operations on Two Oil Platforms ------------------------------------------------------------- Petroleo Brasileiro S.A., aka Petrobras, will kick operations off at two more offshore oil-producing platforms in the Campos Basin by the end of the year: -- the FPSO Presidente JK (P-34), which will go online in November in the Jubarte field, southern Espirito Santo coast and will be capable of producing up to 60,000 barrels of oil per day; and -- the FPSO Cidade do Rio de Janeiro, which will be installed by December at the Espadarte field, with capacity to produce up to 100,000 bpd. Added to the P-50 Platform, capable of producing 180,000 bpd and which marked the Brazilian oil self-sufficiency when it was installed in April in the Albacora Leste field, in the Campos Basin, and to the FPSO Capixaba, which can produce 100,000 bpd and has been operating since May in the Golfinho field, in the Espirito Santo Basin, the installation of these two new units will add another 440,000 bpd to Petrobras' production capacity in 2006. The President JK (P-34) and Cidade do Rio de Janeiro platforms are of the FPSO type, that is, they are floating oil production, storage, and offloading systems. The FPSO P-34's construction work was concluded on Oct. 13, 2006, at the Vitoria Harbor. After undergoing operational tests, it will sail to the Jubarte field in the Campos Basin, southern Espirito Santo coast. Meanwhile, the FPSO RJ was built in Singapore and is already on its way to Brazil, to be installed in the Espadarte Field in the Campos Basin, northern Rio de Janeiro coast. The Jubarte and Espadarte production systems will introduce several technological innovations. Among the advancements is the new submarine centrifuge oil pumping (S-BCSS) system, installed on the seabed, near the producing well. This system, developed by Petrobras, will reduce operational costs and facilitate both remote intervention in submarine equipment and pump replacement, when necessary. Furthermore, it will exempt completion probe use, one of the most expensive devices to lease in the international market. Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro S.A. aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp-- was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. Petroleo Brasileiro SA's long-term corporate family rating is rated Ba3 by Moody's. Fitch Ratings assigned these ratings on Petroleo Brasileiro's senior unsecured notes: Maturity Date Amount Rate Ratings ------------- ------ ---- ------- April 1, 2008 US$400,000,000 9% BB+ July 2, 2013 US$750,000,000 9.125% BB+ Sept. 15, 2014 US$650,000,000 7.75% BB+ Dec. 10, 2018 US$750,000,000 8.375% BB+ Fitch upgraded the foreign currency rating of Petrobras to BB+ from BB, with positive outlook, in conjunction with Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. =============== T H A I L A N D =============== GOVT. HOUSING BANK: Optimistic in Reaching Year's Loan Target ------------------------------------------------------------- Thailand's Government Housing Bank is optimistic that its new lending target of THBB115 billion will be met this year despite a drop in new mortgage lending in the third quarter due to the economic slowdown, The Nation reports. According to the bank's acting president, Chatchai Virameteekul, GHB recently introduced new products, including home equity loans and loans for furniture purchases to help them hit their mark. Mr. Chatchai relates that under the home equity loans, homeowners can pledge their existing houses as collateral for new loans. The bank has also invited 300,000 of its customers to borrow funds to buy furniture and ask for loans to renovate their houses damaged by the recent floods. In addition, the bank will lift the ceiling of home equity loans to 80% from 50% of a home's estimated value. The move, according to the Bangkok Post was implemented to help the bank reach its lending target of THB100 billion by the end of the year. Meanwhile, newly appointed Finance Minister MR Pridiyathorn Devakula has indicated that the bank could ask the government for fresh capitalization, Mr. Chatchai told The Post. State-owned banks are currently under pressure from Mr. Pridiyathorn to lower their Non Performing Loans. Results from Nine-Month Operations The GHB announced on October 19, 2006, its nine-month performance with a net profit of THB2.39 billion, down from THB3.67 billion year-on-year. Loans released from the bank in the first nine month totaled 81.82 billion, The Post notes. According to the bank, at the end of September 2006, its non- performing loans declined by 16.64% to THB30.92 billion. NPLs now account for 5.96% of the bank's total loans, down by 2.11% from the same period last year. Outstanding loans at the end of September totaled THB518.95 billion, rising by 12.93% from 2005, while non-performing assets stood at THB11.66 billion, dropping from THB12.77 billion in the same period last year. GHB's total deposits amounted to THB444.69 billion, up 17.6% compared to the same period last year. The Government Housing Bank -- http://www.ghb.co.th/-- was established in 1953 as the Ministry of Finance's wholly owned financial institution with the purpose of providing mortgage loans to low-and medium-income persons. In addition to providing mortgage loans for the purchase of lands, houses, construction, and renovation, the Bank also act as a real estate developer. GHB is the country's largest mortgage lender, with assets of THB594 billion as of June 2006. In the first half of the year, the bank lent THB56.7 billion in new loans and posted a net profit of THB1.63 billion. The bank currently carries Moody's Bank financial strength rating of E+, and foreign currency long-term/short-term deposit ratings of Baa1/P-2. KRUNG THAI: Two Directors Resign from Board ------------------------------------------- Krung Thai Bank revealed on October 19, 2006, the resignations of Somchai Wongsawat and Pol. Lt. Gen. Wichianchot Sukchotrat from its board of directors, The Bangkok Post reports. Mr. Somchai, former permanent secretary of the Labour Ministry and a brother-in-law of deposed Prime Minister Thaksin Shinawatra, resigned from the civil service last month following the September 19, 2006 coup, The Post relates. Meanwhile, Pol. Lt. Gen. Wichianchot had been under pressure to resign from the board after the Office of the Auditor-General questioned whether he should remain on the board after the Supreme Court handed him a suspended jail sentence in May last year. Pol. Lt. Gen. Wichianchot received a two-year suspended sentence from the Supreme Court's political division related to his actions when serving as a former commissioner of the National Counter-Corruption Office. The court found Pol. Lt. Gen. Wichianchot and eight other former commissioners of the NCC Office guilty of malfeasance for granting themselves special pay increases, The Post recounts. On October 17, 2006, the TCR-AP reported that the bank board recently forced Sathit Chuwatthanakun, a senior executive vice- president, to accept a retirement package and leave the bank one year before his term expired. Somanat Chutima, another senior executive vice-president, was also suspended from duty pending an investigation. Krung Thai Bank Public Company Limited -- http://www.ktb.co.th/ -- began its operation on March 14, 1966, through the merger of business between the Agricultural Bank Limited and the Provincial Bank Limited with the Ministry of Finance as its major shareholder. The Bank provides financial assistance to large and small business, it also renders financial assistance to other state enterprises, both business-oriented and public utility types. Currently the bank is operating 511 domestic and 12 foreign branches and representative offices. Fitch Ratings, on September 12, 2006, affirmed the individual C/D rating of Krung Thai Bank Public Company Limited. The bank currently carries Moody's Investors Service's bank financial strength rating of D. TANAYONG PCL: Posts THB450-Million Net Loss in F/Y 2006 ------------------------------------------------------- Tanayong Pcl posted a THB450-million net loss on THB4.407 billion in total revenues for the fiscal year ended March 30, 2006, as compared with the THB2.601-billion net loss on THB3.541 billion in revenues recorded for the year ended March 30, 2005. In addition, the company's consolidated balance sheet as of March 30, 2006, reflected strained liquidity with THB4.638 billion in current assets available to pay THB35.432 billion in current liabilities coming due within the next 12 months. Tanayong's total consolidated assets as of March 30, 2006, was THB6.926 billion, and its total liabilities was THB35.458 billion, resulting to a shareholders' deficit of THB28.531 billion. After auditing the company's financial statement, Supachai Phanyawattano of Ernst & Young Office Ltd expressed doubt on the company's ability to continue its operations as a going concern. Mr. Supachai specifically pointed to the company's inability to increase its share capital, pay debts and convert debts to equity which were the significant conditions stipulated in the business rehabilitation plan. Headquartered in Bangkok, Thailand, Tanayong Public Company Limited -- http://www.tanayong.co.th/-- manages, develops and invests in property for both residential and commercial purposes; investment in various infrastructure projects such as investment in Electric Train Bangkok Mass Transit System; ownership and operation of hotels, apartments, restaurants and clubs; and provision of financial services and investment holding. The Company had been listed under the Rehabco sector -- Companies under rehabilitation -- until July 3, 2006, when the Thailand Stock Exchange reclassified the whole sector. Currently, SET categorized the Company under the "non-performing group." Companies under the group will retain their listing status and will be obligated to comply with certain SET requirements. Tanayong's total consolidated assets as of March 30, 2006, was THB6.926 billion, and its total liabilities was THB35.458 billion, resulting to a shareholders' deficit of THB28.531 billion. TRUE CORP: NTC Starts Probe into Advance Info's Call Promo ---------------------------------------------------------- On October 19, 2006, the National Telecommunications Commission started its investigations into the alleged breach of anti- monopoly and fair-competition regulations by Advanced Info Service, The Nation reports. As reported by the Troubled Company Reporter - Asia Pacific on October 5, 2006, True Move -- wholly owned subsidiary of True Corp -- along with Total Access petitioned the NTC to look into the suspected price-dumping strategy by rival Advanced Info Service. Advanced Info Service is offering rates as low as THB1.00 per call. Both companies told NTC that the AIS marketing campaign are in breach of competition rules and international market dominance standards, the TCR-AP relates. Based on NTC's anti-monopoly regulations, which went into effect last month, unfair competition is defined as an operator with more than 25% market share pricing calls below cost in order to put a squeeze on its rivals. Supachai Chearavanont, True Move's chief executive officer, told The Nation that AIS is undercutting smaller players by swamping their networks with a flood of calls through its rock-bottom pricing promotions. True Corporation Public Company Ltd's -- http://www.truecorp.co.th/--- principal activities are the provision of telecommunication services and various value-added- services that includes: Digital Data Network Direct Inward Dialing, Integrated Service Digital Network, Public Telephone, Personal Communication Telephone Service, Multimedia and Internet Service Provider. Other activities include training services, online games, rental services and investment holding. Standard & Poor's Ratings Services, on July 27, 2006, affirmed its BB long-term corporate credit rating on True Corp Public Co Ltd. The outlook is stable. True Corp also currently carries Moody's corporate family rating at Ba3, with stable outlook. ********* 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 ***