/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/061027.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, October 27, 2006, Vol. 9, No. 214 Headlines A U S T R A L I A ACUBLD PTY: Appoints Joint Liquidators ALLIANCE ATLANTIS: Moody's Reviews Low B Ratings for Upgrade APPIN ESTATES: Creditors Must Prove Debts on November 17 ASPEON INC.: Auditor Expresses Going Concern Doubt AUSTRALIAN HOSPITALITY: Members and Creditors to Meet on Oct. 30 BAXTER CONSTRUCTIONS: Liquidator to Present Wind-Up Report BETTAWAY LOGISTICAL: Members Agree on Voluntary Liquidation BNP PARIBAS: Members Opt for Voluntary Wind-Up BRIGHT MOVERS: Supreme Court Orders Wind-Up FEARWORTHY PTY: Appoints R. M. Sutherland as Liquidator FINANCIAL NETWORK: To Hold Joint Meetings on October 30 FIX & CLEAN: Prepares to Declare Dividend on November 21 FORTESCUE METALS: Brings Up Old Proposal to Support Track Claim FURNITURE BRANDS: To Declare Dividend for Unsecured Creditors ICS FINANCIAL GROUP: Members Resolve to Liquidate Firm ICS FINANCIAL SERVICES: Members Decide to Wind Up Firm IRONS ENGINEERING: Workers Must Sign AWAs to Keep Jobs LEONARDO TECHNOLOGIES: Final Meeting Slated for October 30 MAGGIEK PTY: Court Issues Wind-Up Order MEGGITTONE PTY: Members' Final Meeting Set on October 30 MELBOURNE ACRYLIC: To Distribute Final Dividend on November 22 MTDP (HOLDINGS): Liquidator to Present Wind-Up Report NADEP PTY: Commences Wind-Up Process NATRAHERBAL PTY: To Distribute First and Final Dividend OCEANNA PTY: Members and Creditors to Meet on October 30 ONE.TEL LTD: To Declare Third Interim Dividend on November 22 PAUL BATES: Enters Wind-Up Proceedings PERCOMET PTY: Members and Creditors to Receive Wind-Up Report PUPBEST PTY: Creditors Must Prove Debts by November 3 REFLECTINT PTY: Members Appoint Liquidator SERVICE ELECTROPLATING: Members Agree to Wind Up Operations SESI LLC: Moody's Puts Ba3 Rating on New US$200MM Loan Facility SMS ADVISING: Court Orders Wind Up of Unregistered Schemes SPANCORE PTY: Joint Meetings Scheduled on October 30 SUPERANNUATION WORLD: Names Sutherland as Liquidator TEKMOULD PAYROLL: To Declare First and Final Dividend on Nov. 17 TRANSAX INT'L: Surprised by Significant Decline in Share Price WESTPOINT GROUP: Court Extends N. Burnard & Kebbel Freeze Orders C H I N A & H O N G K O N G ARTEL SOLUTIONS: Court Sets Wind-Up Petition Hearing on Nov. 1 BOMBARDIER INC: Fitch Rates Senior Unsecured Debt at BB CHART INDUSTRIES: Moody's Assigns Loss-Given-Default Rating CLOVER SECURITIES: Creditors' Proofs of Claim Due on November 18 COUDERT BROTHERS: Wants R.L. Spear to Auction Los Angeles Assets COUDERT BROTHERS: Hires Bradley Arant as Special Counsel CRESVALE FAR: Liquidator to Receive Proofs Until November 10 ENERSYS CAPITAL: Moody's Assigns Loss-Given-Default Rating FERRO CORP: Ends Talks for Specialty Plastics Business Sale FOREGROUND SECURITIES: Accepts Proofs of Debt Until Nov. 20 GALAXY ADVANCE: Will Pay Dividend to Creditors on October 27 GUANGYAO INTERNATIONAL: Creditors to Prove Claims by Nov. 11 HING YIP: Court Appoints Joint Liquidators HOUGHTON MIFFLIN: S&P Puts B Corp. Credit Rating on NegWatch JIN BAO TA: Wind-Up Petition Hearing Fixed on November 1 JJR (HONG KONG): Faces Wind-Up Proceedings JOY RISE: Court Issues Wind-Up Order LEO KWAN: Court Orders Wind Up of Business PORTOLA PACKAGING: Gets US$10 Mil. Credit Raise from GE Capital RICH ELEGANT: Creditors Must Prove Debts by November 22 SALTON INC: Posts US$50.8 Million Loss in Fiscal Fourth Quarter SAM KEE GARDEN: Prepares to Wind-Up Operations SCHLUMBERGER BUSINESS: Members' Final Meeting Slated for Dec. 1 SYMPHONY (HK): Court Favors Wind-Up Petition TAI PO FROZEN: Hearing of Wind-Up Petition Set on November 8 UNIVERSAL COMMS: Gets US$1.5-M from Pvt. Placement 2nd Closing * Car Loans Pile Into Bad Debts, Tops CNY100 Billion * Non-Performing Loans Drop in Chinese Commercial Banks I N D I A ICICI BANK: Set to Invest in Technology & Manpower ICICI BANK: Acquires 1.5% Stake in TV Today Network INDIAN OIL: Liquidates INR985 Crore Oil Bonds Due 2015 INDIAN OIL: Inks 3-Year Marketing Pact With Gabriel India INDIAN OIL: B N Bankapur Named as New Refineries Director IMAX CORP: S&P Affirms B- Rating and Removes Developing Watch IMAX CORP: Inks Theatre Deal with Plaza de las Americas SUN MICROSYSTEMS: Moody's Assigns Loss-Given-Default Ratings VNESHTORGBANK JSC: Earns US$576 Million for First Half 2006 VNESHTORGBANK JSC: Forecasts Over US$1.1 Billion Profit in 2006 VNESHTORGBANK JSC: To Tackle Promstroybank Takeover Next Month I N D O N E S I A ANIXTER INT: Reports US$76.2MM Net Income for Third Quarter 2006 BANK NEGARA: Pefindo Upgrades 2011 Bonds Rating to 'idA' ERICO INTERNATIONAL: Moody's Assigns Loss-Given-Default Rating GOODYEAR TIRE: S&P Puts Synthetic Transactions' Rating on Watch INCO LTD: Companhia Vale do Rio Doce Acquires 75.7% Stake INCO LTD: Steelworkers Union Approves New Collective Agreement TELKOM INDONESIA: Pefindo Affirms 'idAAA' Ratings J A P A N ALL NIPPON AIRWAYS: S&P Upgrades Corp. Credit Rating to 'BB' FORD MOTOR: Moody's Says Weak Results Consistent with B3 Rating FORD MOTOR: S&P Puts Ratings on Synthetic ABS on Negative Watch FORD MOTOR: S&P Places B-Rated Sr. Unsec. Debt on Negative Watch HOUGHTON INT'L: Moody's Assigns Loss-Given-Default Ratings METHANEX CORP: Moody's Assigns Loss-Given-Default Ratings MITSUBISHI UFJ: Two Affiliates to Merge in April 2007 SOLO CUP: Ends Review of Accounting Issues & Restates Financials SOLO CUP: Moody's Reviewing Ratings & May Downgrade SOLO CUP: S&P Cuts Corp. Credit Rating to CCC+ & Removes Watch TIMKEN CO: To Exit U.K. Seamless Steel Tube Manufacturing UNICO CORP: Files For Bankruptcy with JPY96.7 Billion Debt YOKOGAWA ELECTRIC: Posts JPY1.72-Bil Net Loss for June Quarter K O R E A HANAROTELECOM INC: Third Qtr. Earnings Conference Set on Nov. 4 HANAROTELECOM INC: Taps Alcatel to Upgrade Infrastructure HYNIX SEMICONDUCTOR: Posts KRW1.97-Tril. Consolidated Revenues KOREA EXPRESS: Kumho-Asiana Wants to Take the Reins LG TELECOM: Net Profit for 3rd Quarter 2006 Rose 150% from 2005 QUANTUM CORP: Moody's Assigns Loss-Given-Default Ratings N E W Z E A L A N D AIR NEW ZEALAND: Changes Pacific Network Schedules for 2007 ALL VINES: Faces Liquidation Proceedings B & S PATRICK: Court to Hear Liquidation Petition on November 2 EXHILARATOR HOLDINGS: Creditors' Proofs of Claim Due on Nov. 21 GENEVA FINANCE: ASCB Upholds False Advertising Complaint HEATHERDALE ORCHARDS: Creditors' Proofs of Debt Due on Nov. 16 LINE KING: Liquidation Petition Hearing Set on Oct. 30 LUNAR INVESTMENTS: Court Appoints Joint Liquidators PREFERG CONRACTOR: Commences Liquidation Process PRESTIGE RV'S: Enters Liquidation Proceedings RAISIN GRAPES: Liquidation Petition Hearing Set on Nov. 22 REACH INVESTMENTS: Liquidation Petition Hearing Set on Oct. 30 * New Zealand's Official Cash Rate Unchanged at 7.25% P H I L I P P I N E S GLOBE TELECOM: To Hold 3Q2006 Investors' Briefing on Nov. 8 NATIONAL POWER: Launches STAR 3 to Improve Effectivity NATIONAL POWER: ERC to Impose WESM Controls * Philippines to Post Lower 2006 Budget Deficit, Treasurer Says S I N G A P O R E CKE RESTAURANTS: Good Performance Cues S&P's Positive Watch ISOFT GROUP: AIDB to Investigate Former Auditor RSM Robson PETROLEO BRASILEIRO: May Abandon Operations in Bolivia PETROLEO BRASILEIRO: Paying BRL4.387B of Interest on Own Capital PETROLEO BRASILEIRO: Posts Daily Oil Output of 1.9-Mil. Barrels PROGRESS MANUFACTURING: Proofs of Debt Due on November 20 SEAGATE TECH: Reports US$2.8B Revenue for Quarter Ended Sept. 29 SEAGATE TECHNOLOGY: Moody's Assigns Loss-Given-Default Ratings TAT WEI: High Court to Hear Wind-Up Petition on November 3 VALEANT PHARMA: Financial Filing Delay Cues S&P's Negative Watch VALEANT PHARMA: Says Filing of 3rd Qtr. Results Will be Delayed T H A I L A N D DATAMAT PCL: Names Niwes as COB, Prepares Rehabilitation Plan G STEEL: Inks Energy Services Agreement with Siam Power TANAYONG PCL: Court to Consider Objections on Plan Termination TOTAL ACCESS: Starts Promotional Package for Northeast Region * Large Companies With Insolvent Balance Sheets - - - - - - - - ================= A U S T R A L I A ================= ACUBLD PTY: Appoints Joint Liquidators -------------------------------------- At ACUBLD Pty Ltd's extraordinary general meeting held on October 12, 2006, Riad Tayeh and Antony de Vries were appointed as joint and several liquidators. The Joint and Several Liquidators can be reached at: Antony de Vries Riad Tayeh de Vries Tayeh Level 3, 95 Macquarie Street Parramatta, New South Wales 2150 Australia ALLIANCE ATLANTIS: Moody's Reviews Low B Ratings for Upgrade ------------------------------------------------------------ Moody's Investors Service placed the Ba2 Corporate Family, Ba1 Senior Secured and Ba3 Probability of Default ratings of Alliance Atlantis Communications Inc. under review for possible upgrade. The rating action follows AA's recent announcement that it will explore ownership alternatives for its 51% interest in Motion Picture Distribution LP. The initiation of the review also reflects the reasonably strong performance of AA's core broadcasting and CSI franchise assets, which are producing meaningful free cash flow in relation to debt levels. The rating review will focus on: (1) Moody's expectation for the sale of MPD to occur in whole or in part; (2) AA's plans for any resulting cash proceeds in context of the company's stated capital structure target range of 1.5x to 2.5x net debt to EBITDA; (3) the future prospects for AA's core broadcasting and CSI TV franchise assets; and (4) Moody's expectations that management may divert cash to shareholders via continued share buy backs or through the implementation of a dividend. Ratings placed under review for possible upgrade: -- Corporate Family Rating, Ba2 -- Probability-of-Default rating, Ba3 -- Senior Secured rating, Ba1 -- Loss-Given-Default rating for Senior Secured debt, LGD2 (26%) Alliance Atlantis Communications Inc., headquartered in Toronto, Canada, is specialty channel broadcaster with a 50% ownership interest in the CSI TV franchise. The company has worldwide offices in the United Kingdom, Spain and Australia. APPIN ESTATES: Creditors Must Prove Debts on November 17 -------------------------------------------------------- The members of Appin Estates Ltd held a general meeting on October 6, 2006, and appointed Roderick Mackay Sutherland as liquidator. Accordingly, Mr. Mckay requires the Company's creditors to prove their debts by November 17, 2006, for them to share in any distribution the Company will make. 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 ASPEON INC.: Auditor Expresses Going Concern Doubt -------------------------------------------------- Larry O'Donnell CPA, PC, expressed substantial doubt about Aspeon Inc.'s 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 auditor pointed to the company's significant losses from operations, net capital deficit, and no ongoing source of income. At June 30, 2006, the company's balance sheet showed US$8.1 million in stockholders' deficit, compared with a US$7.9 million deficit at June 30, 2005. Liquidity and Capital Resources "As of June 30, 2006, we had US$7 cash on hand, US$195 of assets, no operating business or other source of income, outstanding liabilities of approximately US$8.1 million, a stockholders' deficit of approximately US$8.1 million and a lawsuit brought against us by certain of our shareholders," the company disclosed in a regulatory filing with the U.S. Securities and Exchange Commission. The company said it is dependent on raising additional equity or debt to fund any negotiated settlements with its outstanding creditors and meet its ongoing operating expenses. Bankruptcy Threat "If we were to be subject to any further appeal, which may be made in respect of the lawsuit brought against us by certain of our shareholders, it is unlikely that the proceeds from our Directors' and Officers' insurance policy would be sufficient to meet the damages assessed and we would have no alternative but to file for bankruptcy," the company warned. Headquartered in Irvine, California, Aspeon, Inc. -- http://www.aspeon.com/-- designs, manufactures and markets open system touch screen point-of-sale computers. During the year the company established subsidiaries in United Kingdom, Singapore and Australia. AUSTRALIAN HOSPITALITY: Members and Creditors to Meet on Oct. 30 ---------------------------------------------------------------- Australian Hospitality & Leisure Solutions Pty Ltd will hold a joint meeting for its members and creditors on October 30, 2006, at 10:30 a.m. During the meeting, the members and creditors will receive the Company's wind-up proceedings and property disposal exercises from Liquidator Downey's report. The Liquidator can be reached at: J. P. Downey Cole Downey & Co Chartered Accountants Level 1, 22 William Street Melbourne, Victoria 3000 Australia BAXTER CONSTRUCTIONS: Liquidator to Present Wind-Up Report ---------------------------------------------------------- A joint meeting of the members and creditors of Baxter Constructions Pty Ltd, which is in liquidation, will be held on October 30, 2006, at 9:30 a.m. At the meeting, the members and creditors will receive Liquidator Downey's report on the Company's wind-up proceedings and property disposal exercises. The Liquidator can be reached at: J. P. Downey Cole Downey & Co Chartered Accountants Level 1, 22 William Street Melbourne, Victoria 3000 Australia BETTAWAY LOGISTICAL: Members Agree on Voluntary Liquidation ----------------------------------------------------------- After a general meeting held on October 10, 2006, the members of Bettaway Logistical Services Pty Ltd agreed to voluntarily wind up the company's operations. Antony de Vries and Riad Tayeh were subsequently appointed as joint and several liquidators. The Joint and Several Liquidators can be reached at: Antony de Vries Riad Tayeh de Vries Tayeh Level 3, 95 Macquarie Street Parramatta, New South Wales 2150 Australia BNP PARIBAS: Members Opt for Voluntary Wind-Up ---------------------------------------------- On October 10, 2006, the members of BNP Paribas Public Company Ltd resolved to voluntarily wind up the company's operations. Accordingly, Mark Maxwell Taylor was appointed as the Company's liquidator. The Liquidator can be reached at: Mark Maxwell Taylor Ferrier Hodgson Level 13, 225 George Street Sydney, New South Wales 2000 Australia BRIGHT MOVERS: Supreme Court Orders Wind-Up ------------------------------------------- On October 12, 2006, the Supreme Court of New South Wales ordered Bright Movers Pty Ltd to wind up its 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 FEARWORTHY PTY: Appoints R. M. Sutherland as Liquidator ------------------------------------------------------- At a general meeting of Fearworthy Pty Ltd held on October 10, 2006, the members resolved to voluntarily wind up the company's operations and appointed Roderick Mackay Sutherland as liquidator. Mr. Sutherland's appointment was confirmed at the creditors' meeting held later that day. The Liquidator can be reached at: Roderick Mackay Sutherland Jirsch Sutherland Chartered Accountants Level 2, 84 Pitt Street Sydney, New South Wales 2001 Australia Telephone: 02 9233 2111 Facsimile: 02 9238 2144 FINANCIAL NETWORK: To Hold Joint Meetings on October 30 ------------------------------------------------------- Financial Network Australia Pty Ltd, which is in liquidation, will hold a joint meeting for its members and creditors on October 30, 2006, at 10:00 a.m. At the meeting, Liquidator Lindholm will show an account regarding the Company's wind-up and property disposal exercises. The Liquidator can be reached at: John Lindholm Ferrier Hodgson Level 29, 600 Bourke Street Melbourne, Victoria 3000 Australia FIX & CLEAN: Prepares to Declare Dividend on November 21 -------------------------------------------------------- Fix & Clean Pty Ltd will declare the first and final dividend for its creditors on November 21, 2006. Creditors are required to prove their debts by November 7, 2006, to be included in the benefit of the dividend. As reported by the Troubled Company Reporter - Asia Pacific, on June 14, 2006, the company was placed under voluntary liquidation on May 11, 2006. The Liquidator can be reached at: Samuel Richwol O'Keeffe Walton Richwol Suite 3, 431 Burke Road Glen Iris Australia FORTESCUE METALS: Brings Up Old Proposal to Support Track Claim --------------------------------------------------------------- On October 23, 2006, a hearing on the dispute between Fortescue Metals Group Limited and BHP Billiton over rail access livened up as Fortescue claimed that an old proposal within the mining giant to sell its rail track shows that the track is not part of BHP's iron ore production process, Andrew Trounson of The Australian reports. Hence, Fortescue believes that the track should be open to access. As reported in the Troubled Company Reporter - Asia Pacific on October 11, 2006, Fortescue Metals told the Federal Court that BHP Billiton is neither the owner nor the operator of two railways in West Australia's Pilbara region. The Australian reveals that Fortescue's lawyer, Norman O'Bryan QC, submitted confidential documents about a 1997 Macquarie Bank proposal for BHP to sell off its West Australian iron ore rail network through an initial public offer. The paper cites Mr. O'Bryan telling the Court that "Some very high-level people (within BHP) were all over the concept from the late 1990s." The documentation had raised no concerns over the implications of a sale on BHP's production process, Mr. O'Bryan noted. "None of the documents consider that there would be an interference with the production process," Mr. O'Bryan asserted. Justice John Middleton, however, questioned the documents' relevance, pointing out that more senior BHP executives might have raised the issue before it was abandoned, The Australian relates. BHP's representative, Allan Myers QC dismissed the documents as "just another piece of clutter. It doesn't go to the truth of anything," the paper further relates. The case is the latest effort by Fortescue and the National Competition Council to have BHP's iron ore railway declared under the Trade Practices Act and opened for third-party use. BHP and the other rail operator in the Pilbara, iron ore rival Rio Tinto, claim that access will make them inefficient and come at too high a price, while threatening investment in Australia's largest export commodity. According to the TCR-AP, BHP argued that the railway lines should be closed to third parties because they are part of the production process. A TCR-AP report in May 2006 stated that the Australian Government barred Fortescue from gaining access to BHP Billiton's Pilbara rail line despite the NCC's recommendation that the miner be granted the right to negotiate with BHP. Fortescue is now appealing to the Australian Competition Tribunal, The Australian reports. Separately, BHP is challenging in the Federal Court the NCC's ruling that the line is not part of a production process. Key to the case is an effort by the NCC to overturn a previous Federal Court decision in 1999 ruling that Rio's rail line was part of a production process, The Australian reveals. As noted in the TCR-AP, the National Competition Council lawyer Charles Scerri QC told Justice Middleton that he intended to call expert witnesses and use economic testing to prove the actual railways were not involved in producing iron ore. BHP will rely on a precedent case that ruled railways could be part of the process, the TCR-AP said. About Fortescue Headquartered in West Perth, Western Australia, Fortescue Metals Group Limited -- http://fmgl.com.au/-- is involved in the exploration of iron ore through a project to mine iron ore in the Chichester Ranges, in the Pilbara region of Western Australia and exporting it from Port Hedland. In 2005, Fortescue's chief executive officer, Andrew Forrest, admitted to a AU$500-million blowout on the cost of port and rail infrastructure in the Pilbara Project because of price hikes for steel, fuel, construction materials, and contract labor. The Company also disclosed that the hampered progress of the Pilbara Project brings in the possibility that the Company may not meet its ore delivery schedule and pushes up costs at resource developments across Western Australia. In May 2005, the Australian Stock Exchange pressured Fortescue to explain matters about the project and to explain how the Company would be able to dispose of its lower grade order for 95% of the price obtained by rivals BHP Billiton and Rio Tinto for their top- quality products. The ASX then referred the matter to the Australian Securities and Investments Commission, which commenced a legal action against the Company. The ASIC alleges that Fortescue is engaged in misleading and deceptive conduct and has failed to comply with its continuous disclosure obligations when it announced various contracts with Chinese entities on August 23 and November 5, 2004. In particular, Fortescue did not disclose that the Chinese parties had not reached a concluded agreement on fundamental aspects of the projects and they had merely agreed that they would in the future jointly develop and agree on the "agreed" matters. The ASIC is seeking civil penalties of up to AU$3 million against Fortescue. * * * Fortescue reported total assets of AU$221 million and total liabilities of AU$84 million as of June 30, 2006. Fortescue reported a net loss for the past two fiscal years. Net loss for the year ended June 30, 2005, was AU$4.52 million and net loss for the year ended June 30, 2006, was AU$2.15 million. FURNITURE BRANDS: To Declare Dividend for Unsecured Creditors ------------------------------------------------------------- Furniture Brand Pty Ltd -- formerly Pisoni & Hardy -- will declare the first and final dividend to its preferred unsecured creditors on November 21, 2006. Those who cannot formally prove their claims by November 7, 2006, will be excluded from sharing in any distribution the company will make. The Joint and Several Liquidators can be reached at: T. J. Clifton M. C. Hall PPB Chartered Accountants 10th Floor, 26 Flinders Street Adelaide, South Australia 5000 Australia Telephone: 8211 7800 ICS FINANCIAL GROUP: Members Resolve to Liquidate Firm ------------------------------------------------------ After the meeting held on October 10, 2006, the members of ICS Financial Group Pty Ltd resolved to voluntarily liquidate the company's business. In this regard, Gavin Moss was appointed as liquidator. The Liquidator can be reached at: Gavin Moss Level 28, 31 Market Street Sydney, New South Wales Australia ICS FINANCIAL SERVICES: Members Decide to Wind Up Firm ------------------------------------------------------ On October 10, 2006, members of ICS Financial Services Pty Ltd decided to voluntarily wind up the company's operations and appointed Gavin Moss as liquidator. The Liquidator can be reached at: Gavin Moss Level 28, 31 Market Street Sydney, New South Wales Australia IRONS ENGINEERING: Workers Must Sign AWAs to Keep Jobs ------------------------------------------------------ Employees at Irons Engineering Pty Ltd have told the Australian Workers Union that the new management will let them keep their jobs as long as they sign Australian Workplace Agreements, ABC News Online reports. As reported in the Troubled Company Reporter - Asia Pacific on October 19, 2006, Irons Engineering, which is in administration, faces imminent collapse. The TCR-AP noted that organizer Joe Kane disclosed that a Melbourne firm has now offered to buy Irons Engineering's assets without a guarantee of production or the jobs of 41 workers. According to ABC News, Irons Engineering is going into liquidation and the Melbourne company that has bought its assets -- Specifix Fasteners -- met the company's 41 workers to talk about their future. ABC News cites Joe Kane from the AWU, as saying the workers will be retrenched on October 25, 2006, and will not get their entitlements -- annual leave or long service leave or redundancy pay. "They'd only be paid up this week for the actual work that they've done, so it puts them under a lot of strain to either accept an AWA and its contents or leave with no entitlements," Mr. Kane says. About Irons Engineering Headquartered in Keswick, South Australia, Irons Engineering Pty Ltd -- http://www.ironseng.com.au/-- supplies precision machined metal components to Australian industry. It provides a broad cross section of components to exact customer specifications through high volume machines along with CNC technology and access to an excellent range of bar stock. LEONARDO TECHNOLOGIES: Final Meeting Slated for October 30 ---------------------------------------------------------- Leonardo Technologies Asia-Pacific Pty Ltd, which is in liquidation, will hold a final meeting for its members and creditors on October 30, 2006, at 10:00 a.m. During the meeting, Liquidator de Vries will give an account on the Company's wind up and property disposal exercises. The Liquidator can be reached at: Antony De Vries Level 3, 95 Macquarie Street Parramatta, New South Wales 2150 Australia MAGGIEK PTY: Court Issues Wind-Up Order --------------------------------------- On October 6, 2006, the Federal Court of Australia ordered Maggiek Pty Ltd to wind up its 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 MEGGITTONE PTY: Members' Final Meeting Set on October 30 -------------------------------------------------------- The members of Meggittone Pty Ltd, which is in liquidation, will hold a final meeting on October 30, 2006, at 10:00 a.m., to receive Liquidator Iceton's final account and explanations regarding the company's wind-up proceedings. The Liquidator can be reached at: T. H. J. Iceton Iceton Hoggett & Co 1st Floor, 18 Gibbs Street Miranda Australia MELBOURNE ACRYLIC: To Distribute Final Dividend on November 22 -------------------------------------------------------------- Melbourne Acrylic Coatings Pty Ltd, which is in liquidation, will declare the final dividend for its creditors on November 22, 2006. Creditors who cannot prove their claims by November 16, 2006, will be excluded from the benefit of the dividend. The Liquidator can be reached at: G. M. Rambaldi Pitcher Partners Level 19, 15 William Street Melbourne, Victoria 3000 Australia MTDP (HOLDINGS): Liquidator to Present Wind-Up Report ----------------------------------------------------- Members of MTDP (Holdings) Pty Ltd, which is in liquidation, will hold a final meeting on October 30, 2006, at 9:00 a.m., to receive Liquidator Llewellyn's account and explanation of the company's wind-up. The Liquidator can be reached at: Stephen John Llewellyn WHK Rutherfords 82 Victoria Street Grafton, New South Wales 2460 Australia NADEP PTY: Commences Wind-Up Process ------------------------------------ The members of Nadep Pty Ltd held an extraordinary general meeting on October 11, 2006, and decided to wind up the company's operations. James Alexander Shaw was subsequently appointed as liquidator at the creditors' meeting held that same day. The Liquidator can be reached at: James Alexander Shaw Ferrier Hodgson Chartered Accountants PO Box 840 Newcastle, New South Wales 2300 Australia NATRAHERBAL PTY: To Distribute First and Final Dividend ------------------------------------------------------- Natraherbal Pty Ltd, which is in liquidation, will declare the first and final dividend to creditors on November 20, 2006. Creditors who cannot prove their debts by November 14, 2006, will be excluded from sharing in the dividend distribution. The Liquidator can be reached at: Peter Goodin Brooke Bird & Co Chartered Accountants 471 Riversdale Road Hawthorn East, Victoria 3123 Australia Telephone: 9882 6666 OCEANNA PTY: Members and Creditors to Meet on October 30 -------------------------------------------------------- Oceanna Pty Ltd, which is in liquidation, will hold a joint meeting for its members and creditors on October 30, 2006, at 10:00. During the meeting, Liquidator Whittingham will present the accounts regarding the company's wind-up proceedings and property disposal exercises. The Joint Liquidator can be reached at: Kenneth Whittingham BDO Level 19, 2 Market Street Sydney, New South Wales 2000 Australia Telephone: 02 9286 5555 ONE.TEL LTD: To Declare Third Interim Dividend on November 22 ------------------------------------------------------------- One.Tel Ltd, which is in liquidation, will declare the third interim dividend to unsecured creditors on November 22, 2006. Creditors are required to prove their debts by November 7, 2006, to be included in the benefit of the dividend. The Joint Liquidator can be reached at: S. J. Sherman Ferrier Hodgson Level 13, 225 George Street Sydney, New South Wales 2000 Australia PAUL BATES: Enters Wind-Up Proceedings -------------------------------------- On October 11, 2006, the members of Paul Bates Photography Pty Ltd resolved to voluntarily wind up the company's operations. Consequently, Angus C. Gordon was appointed as liquidator at the creditors' meeting held that same day. The Liquidator can be reached at: Angus C. Gordon GHK Green Krejci Level 13, 1 Castlereagh Street Sydney, New South Wales 2000 Australia PERCOMET PTY: Members and Creditors to Receive Wind-Up Report ------------------------------------------------------------- A joint meeting for the members and creditors of Percomet Pty Ltd, which is in liquidation, will be held on October 30, 2006, at 2:30 p.m. At the meeting, the members will receive the accounts of the Company's wind-up and property disposal activities from Liquidator Kenneth Whittingham. The Liquidator can be reached at: Kenneth Whittingham BDO Level 19, 2 Market Street Sydney, New South Wales 2000 Australia Telephone: 02 9286 5555 PUPBEST PTY: Creditors Must Prove Debts by November 3 ----------------------------------------------------- Pupbest Pty Ltd, which is in liquidation, will declare the first and final dividend to creditors on November 24, 2006. Creditors who cannot prove their debts by November 3, 2006, will be excluded from sharing in the distribution. The Joint Liquidator can be reached at: Ian Lock Sheahan Lock Partners Level 2, 32 Martin Place Sydney, New South Wales 2000 Australia REFLECTINT PTY: Members Appoint Liquidator ------------------------------------------ On October 6, 2006, members of Reflectint Pty Ltd -- formerly Solartint Tuggerah and Solartint Hornsby -- resolved to voluntarily wind up the company's operations and appointed Roderick Mackay Sutherland as liquidator. The liquidator's appointment was confirmed at the creditors' meeting held later that day. The Liquidator can be reached at: Roderick Mackay Sutherland Jirsch Sutherland Chartered Accountants GPO Box 4258 Sydney, New South Wales 2001 Australia Telephone:(02) 9233 2111 Facsimile:(02) 9233 2144 SERVICE ELECTROPLATING: Members Agree to Wind Up Operations ----------------------------------------------------------- On October 16, 2006, members of Service Electroplating Pty Ltd agreed to voluntarily wind up the company's operations. In this regard, George Duff Downie Raffan was appointed as liquidator. The Liquidator can be reached at: George Duff Downie Raffan Level 6, 8 West Street North Sydney, New South Wales 2060 Australia SESI LLC: Moody's Puts Ba3 Rating on New US$200MM Loan Facility --------------------------------------------------------------- Moody's Investors Service assigned a Ba3, LGD 3 (43%) rating to SESI, L.L.C.'s new US$200 million seven-year senior secured term loan facility, to be guaranteed by Superior Energy Services, Inc. and substantially all of its current and future domestic subsidiaries. At the same time, Moody's affirmed SESI, L.L.C.'s Ba3 Corporate Family Rating, Ba3 Probability of Default Rating, and B1 guaranteed senior unsecured note rating (with the LGD assessment changed to LGD 5 (71%) from LGD 4 (63%)). The rating outlook remains negative. Proceeds from the term loan will be used to finance approximately 55% of the cost of Superior's acquisition of Warrior Energy Services Corporation. On Sept. 26, 2006, Moody's affirmed SESI, L.L.C.'s ratings and changed the rating outlook to negative from stable following Superior's announcement that it had signed a merger agreement to acquire Warrior for approximately US$175 million in cash and 5.3 million shares of common stock. The transaction, which is subject to regulatory approval and approval from Warrior's shareholders, is expected to close late in the fourth quarter of 2006. The negative ratings outlook reflects Superior's increasingly aggressive growth strategy, which could result in higher sustained financial leverage than recent historical levels and may require the greater flexibility of a lower debt rating. In this regard, the company has undertaken two material transactions in a relatively short amount of time at purchase prices that Moody's considers to be high. In addition, Moody's believes that the company's rapid growth strategy could pose increasingly complex integration challenges and could result in significant capital requirements, which in combination with a potential sector softening in the latter half of 2007 and 2008 could negatively pressure the rating. The ratings affirmation reflects the use of common equity to fund a meaningful portion of the Warrior acquisition, the strategic benefits of the acquisition, including greater geographic diversification and an enhanced market position in cased hole wireline and snubbing, Warrior's focus on production- related services and on providing services that require a high level of technical expertise, and that the anticipated increase in leverage as a result of the transaction remains in a range appropriate for the Ba3 Corporate Family Rating. The ratings could face downward pressure if management is unable to maintain conservative operating and financial policies, including increasing its financial leverage to a range unable to withstand the company's business risk profile (debt/EBITDA, as adjusted, above 2.3x or in a downcycle, above 2.75x), growing its oil and gas operations to more than 25% of its EBITDA, increasing its business risk profile through drilling risk exposure, and funding material acquisitions without a substantial equity component. The outlook could stabilize if management is able to successfully integrate and grow the Warrior operations, manage capital spending within cash flow, and limit further material increases in financial leverage. The Ba3 rating incorporates the expectation that Superior will continue to pursue an acquisitive growth strategy over the near to medium term. The ability for Superior to absorb additional material acquisitions at its current rating level will depend, in part, on how future acquisitions are financed, Superior's operating and financial performance, and an evaluation of the expected benefits and risks associated with the acquisitions. Superior's Ba3 Corporate Family Rating is supported by: -- the company's scale and product diversification, with strong market positions in the niche businesses in which it participates; -- the company's ability to provide a broad array of services in an integrated fashion; -- its considerable production-related focus; -- the company's improving profitability and returns; and -- a financial leverage profile that helps accommodate the risks associated with the company's oil and gas operations and its regional concentration in the US Gulf of Mexico. The company's ratings remain constrained by: -- the inherent cyclicality and highly competitive nature of the oilfield services industry; -- the higher risk profile of its oil and gas operations, which represents a relatively new area for the company and which is expected to grow to 20% - 25% of consolidated EBITDA; -- its regional concentration in the Gulf of Mexico, a mature basin with significant full cycle oil and gas costs, which can result in curtailed E&P spending during oil and gas price troughs; and -- the considerable degree of cash flow volatility associated with the company's lift boat business. The US$200 million 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, and sets mandatory pre-payments with proceeds from capital markets financings and asset sales. Financial covenants under the facilities are expected to include a leverage ratio and interest coverage ratio. In addition to the new term loan facility, Superior's pro-forma capitalization will consist of a secured revolving bank credit facility, which the company plans to upsize to US$250 million, US$300 million in senior unsecured notes, and approximately US$17 million in MARAD debt. The Ba3, LGD 3 rating on the new US$200 million term loan is restrained by weak tangible asset coverage and uncertainty regarding future valuations of the Warrior collateral pool. The term loan lenders will have a perfected first lien on substantially all of Warrior's assets and, on a pari passu basis with the company's secured bank credit facility, substantially all of Superior's assets up to the greater of US$250 million or 30% of the tangible net assets of Superior's assets, which at US$248 million as of June 30, 2006 was only sufficient to cover the company's US$250 million revolver. The company expects approximately US$46 million in excess tangible net assets to be available to the term loan lenders by year-end 2006. Warrior's tangible assets at June 30, 2006 totaled approximately US$90 million. The majority of the Warrior collateral pool is comprised of fixed assets, which Moody's considers to be relatively illiquid and which, in the event of distress, could significantly impact valuations. Superior Energy Services, Inc., is headquartered in Harvey, Louisiana. The company has operations in Australia, Trinidad and Tobago, the United Kingdom, the United States and Venezuela, among others. SMS ADVISING: Court Orders Wind Up of Unregistered Schemes ---------------------------------------------------------- On October 19, 2006, the Australian Securities and Investments Commission obtained orders in the Tasmanian District Registry of the Federal Court of Australia to wind up unregistered managed investment schemes operated by SMS Advising Group Pty Ltd, SMS Administration Group Pty Ltd, and its sole director, Barbara Cavanough. After an investigation and subsequent application by ASIC, the Court made declarations that the companies and Ms. Cavanough operated two unregistered managed investment schemes known as the Maypole Secure Income Fund and the Assisted Trading Secure Income Fund in breach of the Corporations Act. The Court also ordered that SMS Advising and SMS Administration, be wound up on just and equitable grounds. ASIC's investigation found that: * the total amount invested in the Maypole Secure Income Fund was in excess of AU$1.7 million with funds loaned to Maypole Foods, a combined group of companies that included Maypole Bakery Pty Ltd based in Tasmania. Investors were promised a return of 10.5% per annum; and * the total amount invested in the Assisted Trading Secure Income Fund was in excess of AU$3.8 million with the funds loaned to the Nuline Companies, a combined group of Tasmanian companies which included Nuline Fishing International Pty Ltd, Nuline Marketing Tasmania Pty Ltd and Nuline Marketing International Pty Ltd. Investors were promised a return of between 9% and 15% per annum, depending on which activity the Nuline Companies were undertaking at the time. John Gibbons of Ernst & Young has been appointed liquidator of SMS Advising Group, SMS Administration and the two schemes. Background As reported in the Troubled Company Reporter - Asia Pacific on May 25, 2006, the ASIC has revoked the Australian financial services license of SMS Advising Group Pty Ltd due to the firm's failure to comply with its obligations under its AFSL. Ms. Cavanough was also banned from providing financial services advice for 10 years, TCR-AP said. SPANCORE PTY: Joint Meetings Scheduled on October 30 ---------------------------------------------------- The members and creditors of Spancore Pty Ltd will hold a joint meeting on October 30, 2006, at 10:00 a.m., to receive Liquidator Downey's account on the Company's wind-up and property disposal activities. The Liquidator can be reached at: J. P. Downey Cole Downey & Co Chartered Accountants Level 1, 22 William Street Melbourne, Victoria 3000 Australia SUPERANNUATION WORLD: Names Sutherland as Liquidator ---------------------------------------------------- On October 13, 2006, members of Superannuation World Pty Ltd resolved to voluntarily liquidate the company's business and appointed Roderick Mackay Sutherland as liquidator. The liquidator's appointment was confirmed at the creditors' meeting held later that day. The Liquidator can be reached at: Roderick Mackay Sutherland Jirsch Sutherland Chartered Accountants Level 2, 84 Pitt Street Sydney, New South Wales 2001 Australia Telephone: 02 9233 2111 Facsimile: 02 9238 2144 TEKMOULD PAYROLL: To Declare First and Final Dividend on Nov. 17 ---------------------------------------------------------------- Tekmould Payroll Services Pty Ltd, which is in liquidation, will declare the first and final dividend for its creditors on November 17, 2006. Failure to file proofs of debt by November 15, 2006, will exclude the creditor from sharing in the dividend. The Joint Liquidator can be reached at: H. A. Mackinnon Bent & Cougle Pty Ltd Chartered Accountants Level 5, 332 St Kilda Road Melbourne, Victoria 3004 Australia TRANSAX INT'L: Surprised by Significant Decline in Share Price -------------------------------------------------------------- Transax International Ltd. commented on the trading activity of its common stock on October 23, 2006. Transax International knows of no adverse issues relating to its operations that would cause the volatile movement in its share price and significant increase in trading volume. The financial fundamentals of the company have not changed. Stephen Walters, President & CEO of Transax, commented, "We are all surprised by the recent significant decline in our share price. I remind all our investors that we have recently pre- announced another record quarter in both revenue and transaction growth. As of the close of business on October 23, 2006, the market capitalization of Transax was roughly half of the company's anticipated 2006 revenue." Mr. Walters continued, "We also continue to respond to the recent unsolicited interested expressed to us for our Brazilian operations, MedLink. We view all these recent developments as positive steps forward for our organization." Based in Miami, Florida, Transax International Limited (OTCBB: TNSX) -- http://www.transax.com/-- provides health information management systems to hospitals, physicians and health insurance companies. The company's subsidiaries, TDS Telecommunication Data Systems LTDA provides services in Brazil; Transax Australia Pty Ltd. operates in Australia; and Medlink Technologies Inc. initiates research and development. * * * Transax International Limited's balance sheet at June 30, 2006, showed a US$3,717,316 total stockholders' deficit from total assets of US$2,196,551 and total liabilities of US$5,913,867. Transax International's balance sheet at June 30, 2006, also showed negative working capital with US$1,085,530 in total current assets and US$4,943,668 in total current liabilities. WESTPOINT GROUP: Court Extends N. Burnard & Kebbel Freeze Orders ---------------------------------------------------------------- On October 23, 2006, the Supreme Court of New South Wales by consent and without admissions, has further extended orders against Neil Austin Burnard and Palentia Pty Ltd (Palentia), formerly known as Kebbel (NSW) Pty Ltd. As reported in the Troubled Company Reporter - Asia Pacific on June 6, 2006, the Australian Securities and Investment Commission sought and obtained an order from the Supreme Court of New South Wales freezing the assets of Neil Austin Burnard, the sole director of Palentia Pty Ltd. -- formerly known as Kebbel Pty Ltd. -- and who reportedly promoted Westpoint schemes to investors. In another TCR-AP report dated July 26, 2006, Justice Reginald Barrett of the NSW Supreme Court extended the court orders against Mr. Burnard, stopping him from disposing of his assets or leaving Australia until October 23, 2006, and from coming within 100 meters of an Australian point of overseas departure. In an update, Justice White extended orders preventing Mr. Burnard and Palentia from disposing of their assets until 5:00 p.m. on January 29, 2007. The orders permit Mr. Burnard and Palentia to pay certain expenses including ordinary living and operating expenses, school fees for Mr. Burnard's children, legal expenses incurred in these proceedings up to set amounts, and payments servicing loan facilities with 'arms length' financial institutions. Justice White also continued orders restraining Mr. Burnard from leaving Australia and from coming within 100 metres of an Australian point of overseas departure. Mr Burnard was previously required to deliver up all passports to the court and he continues to be restrained from applying for the issue of a new passport. The parties have liberty to apply to the Court in relation to these orders. The matter returns to Court for further hearing at 10:00 a.m. on January 29, 2007. About Westpoint Group Headquartered in Perth, Western Australia, the Westpoint Group - - http://westpoint.com.au/-- is engaged in property development and owns or manages retail and commercial properties with a total value of over AU$300 million. The Group's troubles began in 2005 when the Australian Securities and Investments Commission commenced investigations on 160 companies within the Westpoint Group. The ASIC's investigation led to ASIC initiating action in late 2005 in the Federal Court of Australia against a number of mezzanine companies in the Westpoint Group, including winding up proceedings. The ASIC contends that Westpoint projects are suffering from significant shortfall of assets over liabilities so that hundreds of investors are at serious risk of not receiving repayment of their investments. The ASIC also sought wind-up orders after the Westpoint companies failed to comply with its requirement to lodge accounts for certain financial years. These wind-up actions are still continuing. In February 2006, the Federal Court in Perth issued a wind-up order against Westpoint Corporation Pty Ltd. The ASIC had applied to wind up the company on grounds of insolvency. The ASIC believes that Westpoint Corporation is responsible for arranging, managing and coordinating Westpoint Group's property projects as well as holding money for other group companies. The ASIC was concerned that Westpoint Corporation was unable to pay its debts, including its obligations under the guarantees given to the mezzanine companies to make good expected shortfalls in the repayment of amounts owed to investors. The Westpoint Group's collapse is considered by many as the largest of its type in recent years, with small investors being the biggest group affected. Investors are currently joining forces to commence a class action against Westpoint and its advisors. ================================ C H I N A & H O N G K O N G ================================ ARTEL SOLUTIONS: Court Sets Wind-Up Petition Hearing on Nov. 1 -------------------------------------------------------------- The High Court of Hong Kong is set to hear a wind-up petition against Artel Solutions Group Holdings Ltd on November 1, 2006, at 9:30 a.m. HSH Nordbank AG, Hong Kong Branch filed the petition with the Court on September 5, 2006. The Solicitors for the Petitioner can be reached at: Baker & Mckenzie 14/F, Hutchison House 10 Harcourt Road Hong Kong Telephone: 2846 1888 Facsimile: 2845 0476 BOMBARDIER INC: Fitch Rates Senior Unsecured Debt at BB ------------------------------------------------------- Fitch Ratings has placed the debt and Issuer Default Ratings for both Bombardier Inc. and Bombardier Capital Inc. on Rating Watch Negative. The existing ratings are listed below: Bombardier Inc. -- IDR 'BB'; -- Senior unsecured debt 'BB'; -- Bank facilities 'BB'; -- Preferred stock 'B+'. Bombardier Capital Inc. -- IDR 'BB'; -- Senior unsecured debt 'BB'. These ratings cover approximately US$4.2 billion of outstanding debt and preferred stock. Due to the existence of a support agreement and demonstrated support by the parent, BC's ratings are linked to those of BI. The Rating Watch is based on concerns about potential changes in Bombardier's financial strategy, which has been focused on debt reduction. The tender offer announced earlier Monday indicates that the company will retire little debt over the next two fiscal years. In addition, Fitch is concerned that some or all of the debt reduction accomplished in the current fiscal year (nearly US$1 billion) could be offset by new debt issuance. The company intends to fund the tender with a portion of an upcoming bond issue. The Rating Watch will be resolved when it becomes clear what amount of debt Bombardier plans to issue in the near term, and Fitch expects to resolve the Rating Watch within the next several weeks. Fitch believes that any downgrade will most likely be limited to one notch. Factors supporting the ratings include the company's cash position, diversification, large backlog at Bombardier Transportation, leading market positions, the health of the business jet and turboprop markets, and BT's successful restructuring. Concerns include the variability of free cash flow due to order flow at BT and Bombardier Aerospace; continued low margins and free cash flow; business jet market cyclicality; the sizable pension plan deficit; the impact of exchange rate volatility on financial results and planning; and various RJ concerns, including low backlog, weak orders, uncertainty regarding development of new aircraft models, the future of the 50-seat RJ segment, and contingent obligations related to past aircraft sales. * * * Headquartered in Valcourt, Quebec, Bombardier Inc. (TSX: BBD) -- http://www.bombardier.com/-- manufactures innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment. The company has operations in North America, Europe and China. CHART INDUSTRIES: Moody's Assigns Loss-Given-Default Rating ----------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. manufacturing sector, the rating agency affirmed its B1 Corporate Family Rating for Chart Industries, Incorporated, as well as its B3 rating on the company's US$170 million 9.125% Senior Subordinate Notes due 2015. The debentures were assigned an LGD5 rating suggesting creditors will experience an 80% loss in the event of default. Additionally, Moody's revised its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations of the company: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$115 Million Sr. Sec. Revolver due 2010 B1 Ba2 LGD2 27% US$180 Million Sr. Sec. Term Loan B due 2012 B1 Ba2 LGD2 27% 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 Garfield Heights, Ohio, Chart Industries -- http://www.chart-ind.com-- is a supplier of engineered equipment required throughout the cryogenic liquid supply chain. This liquid supply chain spans all the major market steps and includes cryogenic liquid production, purification, distribution, storage and many end-user applications where cryogenic liquids are finally converted into the desired gases. Chart Industries has operations in Australia, China, the Czech Republic, Germany, and the United Kingdom. CLOVER SECURITIES: Creditors' Proofs of Claim Due on November 18 ---------------------------------------------------------------- Liquidator Kam Chi Chiu Anthony requires the creditors of Clover Securities Company Ltd to submit their proofs of claims by November 18, 2006. Creditors who fail to submit by the due will be excluded from sharing in any distribution the Company will make. The Liquidator can be reached at: Kam Chi Chiu, Anthony Room 1701, 17/F Shui On Centre 6-8 Harbour Road, Wanchai Hong Kong COUDERT BROTHERS: Wants R.L. Spear to Auction Los Angeles Assets ---------------------------------------------------------------- Coudert Brothers LLP asks the U.S. Bankruptcy Court for the Southern District of New York for permission to employ R.L. Spear Co. Inc. as its auctioneer. R.L. Spear will act as the Debtor's agent for the purpose of liquidating all remaining tangible assets of the former Coudert office located at 333 S. Hope street, 23rd Floor, in Los Angeles, California through a public sale on Oct. 28, 2006, at 11 a.m. The Court recently rejected the Debtor's lease governing the Los Angeles property. The Debtor is now obligated to remove all the Los Angeles property by Oct. 31, 2006, or it will be deemed abandoned. The firm will receive a commission equal to 15% of the gross sales of any and all of the property sold on the sale date, as well as reimbursement of the actual and necessary expenses incurred in connection with the sale not exceeding US$6,500. In addition, the firm reserves the right to charge auction purchasers a 10% buyers premium on each item sold at the auction. R.L. Spear is a prepetition nonpriority creditor of the Debtor with a US$10,566 unsecured claim. To the best of the Debtor's knowledge, R.L. has no connection with the Debtor, its creditors, or any party-in-interest. * * * Coudert Brothers LLP was an international law firm with operations in China. It is specializing in complex cross border transactions and dispute resolution. The Debtor filed for Chapter 11 protection on Sept. 22, 2006 (Bankr.S.D.N.Y. Case No. 06-12226). John E. Jureller, Jr., Esq., and Tracy L. Klestadt, Esq., at Klestadt & Winters, LLP, represents the Debtor in its restructuring efforts. In its schedules of assets and debts, Coudert listed total assets of US$29,968,033 and total debts of US$18,261,380. The Debtor's exclusive period to file a chapter 11 plan expires on Jan. 20, 2007. COUDERT BROTHERS: Hires Bradley Arant as Special Counsel -------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York authorized Coudert Brothers LLP to employ Bradley, Arant Rose & White LLP, as its special counsel, nunc pro tunc to Sept. 22, 2006. Bradley Arant will provide services with respect to issues related to the Debtor's Employee Pension Plan, as amended and restated as of Jan. 1, 2001., and the Pension Benefit Guaranty Corporation. Kevin J. Henderson, Esq., a Bradley Arant partner, discloses that the firm's professionals bill: Designation Hourly Rate ----------- ----------- Partners $350 Associates $220 Paralegal $195 Mr. Henderson assures the Court that his firm does not hold any interest materially adverse to the Debtor's estate. * * * Coudert Brothers LLP was an international law firm with operations in China. It is specializing in complex cross border transactions and dispute resolution. The Debtor filed for Chapter 11 protection on Sept. 22, 2006 (Bankr.S.D.N.Y. Case No. 06-12226). John E. Jureller, Jr., Esq., and Tracy L. Klestadt, Esq., at Klestadt & Winters, LLP, represents the Debtor in its restructuring efforts. In its schedules of assets and debts, Coudert listed total assets of US$29,968,033 and total debts of US$18,261,380. The Debtor's exclusive period to file a chapter 11 plan expires on Jan. 20, 2007. CRESVALE FAR: Liquidator to Receive Proofs Until November 10 ------------------------------------------------------------ Cresvale Far East Nominees Ltd intends to distribute dividend to its creditors. In this regard, Liquidators Joanne Oswin and Jan GW Blaauw will be accepting proofs of claim from the creditors until November 10, 2006. The Liquidator can be reached at: Joanne Oswin Jan GW Blaauw 22/F Prince's Building 10 Chater Road, Central Hong Kong ENERSYS CAPITAL: Moody's Assigns Loss-Given-Default Rating ---------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. manufacturing sector, the rating agency revised its Corporate Family Rating for Enersys Capital, Inc. to B1 from Ba3. Additionally, Moody's revised its ratings on the company's US$100 million Revolver due 2009 and US$357.7 million Term Loan B due 2011 to Ba2 from Ba3. Those debentures were assigned an LGD2 rating suggesting that creditors will experience a 28% 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 Reading, Pennsylvania, Enersys Capital, Incorporated -- http://www.enersysinc.com/-- is engaged in the manufacture of industrial batteries. The company has its regional headquarters in China and Belgium. It also has operations in Mexico. FERRO CORP: Ends Talks for Specialty Plastics Business Sale ----------------------------------------------------------- Ferro Corporation has discontinued discussions with Wind Point Partners regarding the sale of its Specialty Plastics business. "We did not feel that we could reach an agreement that provided Ferro shareholders with the full value of this business," said James Kirsch, Ferro President and Chief Executive Officer. "We will continue to operate the Specialty Plastics business, and expect it to remain a positive contributor to Ferro's operations. As we go forward, we will continue to pursue portfolio realignment activities that we believe best serve the interests of our shareholders and the growth objectives of the company." About Ferro Corp Headquartered in Cleveland, Ohio, Ferro Corporation -- http://www.ferro.com-- is a global producer of an array of performance materials sold to a range of manufacturers in approximately 30 markets throughout the world. Ferro applies certain core scientific expertise in organic chemistry, inorganic chemistry, polymer science and material science to develop coatings for ceramics and metal; materials for passive electronic components; pigments; enamels, pastes and additives for the glass market; glazes and decorating colors for the dinnerware market; specialty plastic compounds and colors; polymer additives; specialty chemicals for the pharmaceuticals and electronics markets, and active ingredients and high-purity carbohydrates for pharmaceutical formulations. The company's products are classified as performance materials, rather than commodities, because they are formulated to perform specific and important functions both in the manufacturing processes and in the finished products of its customers Ferro Corp. has global locations in Argentina, Australia, Belgium, Brazil, China, France, Germany, Indonesia, Italy, Japan, Mexico, Netherlands, Portugal, Spain, Taiwan, Thailand, the United Kingdom, the United States, and Venezuela. The Troubled Company Reporter - Asia Pacific reports that Standard & Poor's Ratings Services' 'B+' long-term corporate credit and 'B' senior unsecured debt ratings on Ferro Corp. remained on CreditWatch with negative implications, where they were placed Nov. 18, 2005. Standard & Poor's will resolve the CreditWatch after Ferro files its 2005 full year and 2006 quarterly financial statements, which are expected by Sept. 30th and Dec. 31st, respectively. FOREGROUND SECURITIES: Accepts Proofs of Debt Until Nov. 20 ----------------------------------------------------------- An intended dividend will be distributed for creditors of Foreground Securities Company Ltd. In this regard, Liquidators Joseph Lo Kin Ching and Dermot Agnew will be accepting proofs of debt from the creditors until November 20, 2006. The Liquidators can be reached at: Joseph Lo Kin Ching Dermot Agnew 26/F, Wing On Centre 111 Connaught Road Central Hong Kong GALAXY ADVANCE: Will Pay Dividend to Creditors on October 27 ------------------------------------------------------------ Galaxy Advance Ltd will pay supplementary dividend to creditors today, October 27, 2006. The payment will be administered at Room 1601-2, 16th Floor, One Hysan Avenue, Causeway Bay, Hong Kong. The Liquidator can be reached at: Chan Wai Dune, Charles Fung Pui Cheung 37/F, Hennessy Centre 500 Hennessy Road Causeway Bay Hong Kong GUANGYAO INTERNATIONAL: Creditors to Prove Claims by Nov. 11 ------------------------------------------------------------ Creditors of Guangyao International Investment Trust Co. Ltd are required to submit their proofs claim to Liquidator Akira Nakamura by November 11, 2006, to share in any distribution the Company will make. The Liquidator can be reached at: Akira Nakamura 1713, Horiuchi Hayama-cho, Miura-gun Kanagawa-ken Japan HING YIP: Court Appoints Joint Liquidators ------------------------------------------ On July 25, 2006, the High Court of Hong Kong appointed Lai Kar Yan and Darach E. Haughey as joint and several liquidators of Hing Yip Holdings (Hong Kong) Ltd. The Joint Liquidators can be reached at: Lai Kar Yan Darach E. Haughey 35/F, One Pacific Place 88 Queensway Hong Kong HOUGHTON MIFFLIN: S&P Puts B Corp. Credit Rating on NegWatch ------------------------------------------------------------ Standard & Poor's Ratings Services placed its 'B' long-term corporate credit rating on U.S.-based educational publisher Houghton Mifflin LLC on CreditWatch with negative implications. The 'B+' long-term corporate credit rating on Ireland-based educational software publishing company Riverdeep Holdings PLC was also placed on CreditWatch with negative implications. This reflects a potential combination of the two companies' operations as well as a possible refinancing, although neither party has so far confirmed that a transaction is being negotiated or that a definitive agreement will be reached. "The CreditWatch placements reflect a potential increase in the combined group's financial leverage relative to the recent levels seen at both companies, as well as the challenge of integrating the two businesses," said Standard & Poor's credit analyst Anna Overton. Both companies are highly leveraged, with rapidly accreting payment-in-kind notes in the capital structure putting pressure on their financial management strategies. Although the details of the funding of the transaction have not emerged yet, equity support is likely to remain thin. S&P does not expect the combined entity's business risk profile to be materially different from that of Houghton Mifflin, given the mature nature and entrenched competition characterizing U.S. school publishing. Nevertheless, there might be some benefit from replicating the success of Riverdeep's direct school sales and product management across the combined organization. "Standard & Poor's will seek to clarify the business and financial strategy of the combined entity," added Standard & Poor's credit analyst Hal Diamond. "The ratings on both Houghton Mifflin and Riverdeep could be lowered if it becomes evident that the combined operating cash flow base cannot provide debt service coverage for consolidated obligations comparable with levels seen at both companies so far." Houghton Mifflin LLC -- http://www.hmco.com/-- is the fourth- largest U.S. educational publisher, with long-standing solid market shares in elementary and secondary school publishing. The company has distributors in the U.K., China, and Puerto Rico. JIN BAO TA: Wind-Up Petition Hearing Fixed on November 1 -------------------------------------------------------- The High Court of Hong Kong received an application to wind up Jin Bao Ta Trading Company Ltd on August 23, 2006, from Alberto Girotto. The Court will hear the petition on November 1, 2006, at 9:30 a.m. The Solicitors for the Petitioner can be reached at: Barlow Lyde & Gilbert Suite 1901, 19/F Cheung Kong Center 2 Queen's Road Central Hong Kong JJR (HONG KONG): Faces Wind-Up Proceedings ------------------------------------------ On October 4, 2006, Istril Ltd filed before the High Court of Hong Kong a petition to wind up the operations of JJR (Hong Kong) Ltd. The Court will hear the petition on November 29, 2006 at 9:30 a.m. The Solicitors for the Petitioner can be reached at: Ford, Kwan & Company Suites 1505-1508 Chinachem Golden Plaza 77 Mody Road, Tsimshatsui Kowloon, Hong Kong JOY RISE: Court Issues Wind-Up Order ------------------------------------ On October 11, 2006, the High Court of Hong Kong issued a wind- up order against Joy Rise Holdings Ltd. The Troubled Company Reporter - Asia Pacific reported that on July 26, 2006, Ng Wing Hung filed the wind-up petition before the Court. The Court heard the petition on September 27, 2006. LEO KWAN: Court Orders Wind Up of Business ------------------------------------------ On October 11, 2006, the High Court of Hong Kong ordered Leo Kwan Ltd to wind up its operations. According to the Troubled Company Reporter - Asia Pacific, Hartanto Sri Tjintawati filed a petition to wind up the Company's operation before the Court on August 2, 2006. PORTOLA PACKAGING: Gets US$10 Mil. Credit Raise from GE Capital --------------------------------------------------------------- Portola Packaging Inc. entered into an amendment to its existing Credit Agreement with General Electric Capital Corporation. The Amendment, among other things, effected the following revisions to the existing Credit Agreement: -- Increased the maximum loan limit from US$50 million to US$60 million with the amount in excess of US$50 million being based on the company's Working Capital/Fixed Asset Borrowing Base calculation, currently in excess of US$60 million. -- The Amendment increased the amount of capital expenditures the company is able to make each fiscal year from US$13.5 million to US$16.5 million. The company paid GECC a fee of US$125,000 in relative to the Amendment. A full text-copy of the Ninth Amendment to Fourth Amended and Restated Credit Agreement with GECC may be viewed at no charge at http://ResearchArchives.com/t/s?13dc Portola Packaging Inc. -- http://www.portpack.com/-- designs, manufactures and markets tamper evident plastic closures used in dairy, fruit juice, bottled water, sports drinks, institutional food products and other non-carbonated beverage products. The company also produces a wide variety of plastic bottles for use in the dairy, water and juice industries, including various high density bottles, as well as five-gallon polycarbonate water bottles. In addition, the company designs, manufactures and markets capping equipment for use in high speed bottling, filling and packaging production lines. The company is also engaged in the manufacture and sale of tooling and molds used in the blow molding industry. The company has locations in China, Mexico and Belgium. * * * Portola's balance sheet at May 31, 2006 showed total assets of US$171,700,000 and total liabilities of US$241,000,000 resulting in an equity deficit of US$69.3 million. Equity deficit at Aug. 31, 2005 was US$57.7 million. RICH ELEGANT: Creditors Must Prove Debts by November 22 ------------------------------------------------------- Liquidator Hui Chung Ming requires the creditors of Rich Elegant International Ltd to submit their proofs of debt by November 22, 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: Hui Chung Ming 21/F, Fee Tat Commercial Centre No. 613 Nathan Road, Kowloon Hong Kong SALTON INC: Posts US$50.8 Million Loss in Fiscal Fourth Quarter --------------------------------------------------------------- Salton Inc. has reported fiscal results for its fourth quarter and year ended July 1, 2006. The company reported net sales of US$129.5 million and a loss of US$50.8 million for its fiscal 2006 fourth quarter compared to net sales of US$151.2 million and a loss of US$28.8 million for the fiscal 2005 fourth quarter. Net sales decreased domestically by US$29.7 million. This decrease includes US$5.4 million of reductions, as a result of the sale or discontinuance of certain product lines. The remaining US$24.3 million decrease resulted primarily from volume and mix shifts as a result of price increases, other planned product line changes and close outs of discontinued product lines. Despite continued weak consumer demand in the United Kingdom, foreign sales increased by US$8 million. The loss in the 2006 fourth quarter included a pretax charge of US$21.9 million for non-cash intangible asset impairments associated with certain trade names and a $3.4 million non-cash valuation allowance against certain foreign deferred tax assets. The loss in the 2005 fiscal fourth quarter included a pretax charge of US$3 million for non-cash intangible asset impairments. Salton's sales were US$636 million for the year ended July 1, 2006 compared to US$781.7 million in fiscal 2005, a reduction of US$145.7 million. Domestic sales declined by US$124.2 million due to the impact of the sale of the tabletop product lines in September 2005, inventory shortages, vendor and customer uncertainty, post-holiday overstocks at retailers and planned product discontinuation. Foreign sales, particularly in the United Kingdom, were impacted by a continuing weak retail market, resulting in a decline of US$16.1 million in 2006. In addition, Salton incurred US$5.5 million in unfavorable foreign currency fluctuation. Gross profit declined from US$187.5 million (24%) in fiscal 2005 to US$144.4 million (22.7%) in fiscal 2006, primarily a result of global raw material cost increases and additional costs associated with inventory reduction programs. These added costs were partially offset by a US$10.6 million decline in distribution expenses. Selling, general and administrative expenses decreased to US$172.1 million in 2006 compared to US$207.8 million for 2005 in connection with previously announced cost reduction initiatives. It is expected that further restructuring activities will continue in fiscal 2007, resulting in additional distribution and SG&A expense reductions. Net interest expense was US$37 million for fiscal 2006 compared to US$51.7 million for fiscal 2005 as a result of lower levels of indebtedness and the debt exchange completed in August 2005. The company had approximately US$293 million in indebtedness, net of approximately US$44 million of cash, swap valuation and accrued interest on senior secured notes at the end of the fiscal 2006 year-end, compared to US$429.3 million as of July 2, 2005, net of approximately US$21.9 million of cash and swap valuation. "During fiscal 2006, we made significant progress in reducing costs, improving inventory levels and strengthening our balance sheet," said William Rue, President and Chief Operating Officer. "As a result of our continuing focus on cost controls, we have eliminated more than US$90 million in annual operating expenses since 2004. We continue to look for other areas to lower costs, improve inventory turns and working capital utilization. While raw material costs remain high, we believe that our initiatives will make Salton more competitive in the future." Business Outlook "We believe as a result of our cost reduction programs, improved balance sheet and new product introductions that Salton is in a much improved position entering the Holiday Season," said Salton CEO Leon Dreimann. "While the small appliance market remains fiercely competitive, including ongoing pressure from high raw material prices, several of our new products have created tremendous excitement among our customers. Salton has been recognized for its innovation for many years, and our new hydrogen grill will enable us to offer a truly unique product combining the best of the George Foreman Grill with this exciting technology which will be launched in mid 2007. We feel that through increased revenue, driven by product innovation, along with tight cost containment that Salton will return to profitability." About Salton Salton, Inc. -- http://www.saltoninc.com/-- designs, markets and distributes branded, high-quality small appliances, home decor and personal care products. Its product mix includes a range of small kitchen and home appliances, electronics for the home, time products, lighting products, picture frames and personal care and wellness products. Salton has operations in Hong Kong and the United Kingdom. * * * Moody's Investors Service confirmed its Caa1 Corporate Family Rating for Salton in connection with the implementation of its new Probability-of-Default and Loss-Given-Default rating methodology. Additionally, Moody's assigned an LGD6 rating to those notes, suggesting noteholders will experience a 91% loss in the event of a default. SAM KEE GARDEN: Prepares to Wind-Up Operations ---------------------------------------------- On October 11, 2006, Sam Kee Garden (H.K.) Ltd received a wind- up order from the High Court of Hong Kong. As reported by the Troubled Company Reporter - Asia Pacific, Ho Chung Yin Andrew and Liau Lo Lin June filed the wind-up petition with the Court on June 21, 2006. The Court heard the petition on September 13, 2006. SCHLUMBERGER BUSINESS: Members' Final Meeting Slated for Dec. 1 --------------------------------------------------------------- A final general meeting of the members of Schlumberger Business Continuity Services Ltd will be held on December 1, 2006, at 12:20 p.m. During the meeting, Liquidator Natalia K M Seng will present an account on the Company's wind-up proceedings and property disposal exercises. The Liquidator can be reached at: Natalia K M Seng Level 28, Three Pacific Place 1 Queen's Road East Hong Kong SYMPHONY (HK): Court Favors Wind-Up Petition -------------------------------------------- On October 11, 2006, the High Court of Hong ordered that Symphony (HK) Ltd's operations be wound up. The Court received the wind-up petition on May 22, 2006. TAI PO FROZEN: Hearing of Wind-Up Petition Set on November 8 ------------------------------------------------------------ A liquidation petition filed against Tai Po Frozen Meat Company Ltd will be heard before the High Court of Hong Kong on November 8, 2006, at 9:30 a.m. Hopeful Meat Ltd presented the petition with the Court on September 8, 2006. The Solicitors for the Petitioner can be reached at: Lam & Partners Hopeful Meat Limited Unit C, 20/F Eton Building No. 288 Des Voeux Road Central Sheung Wan Hong Kong UNIVERSAL COMMS: Gets US$1.5-M from Pvt. Placement 2nd Closing -------------------------------------------------------------- Universal Communications Systems, Inc., received US$1,506,025 in proceeds from the second closing of its private placement pursuant to a Subscription Agreement with several accredited and qualified institutional investors. The company completed on Feb. 27, 2006 a private placement pursuant to a Subscription Agreement with several accredited and/or qualified institutional investors. The investors subscribed to purchase an aggregate principal amount of US$3,012,050 in 9% secured convertible promissory notes and 1 Class A and 1 Class B common stock purchase warrant for each 2 shares which will be issued on each closing date assuming full conversion of the secured convertible notes on the closing date. The subscription agreement calls for two closings, an initial closing representing US$1,506,025 of 9% secured convertible promissory notes, 75,301,250 Class A warrants and 75,301,250 Class B warrants and a second closing representing the balance. The initial closing took place February 28, 2006. Funds from the second closing were received on Oct. 17, 2006, with total proceeds of US$1,506,025. The secured convertible notes, as amended in connection with the October closing, bear simple interest at 9% per annum payable monthly together with 5.5% of the initial principal, all interest accrued and any other amounts not paid, commencing six months from the issuance date, and mature 2 years after the date of issuance. The payments may be made in cash or in the company's common stock at a conversion rate which is the lesser of US$0.005 per share or 70% of the average closing bid price for the preceding five trading days, at the company's discretion. The conversion price is adjustable in the event of any stock split or reverse stock split, stock dividend, reclassification of common stock, recapitalization, merger or consolidation. In addition, the conversion price of the secured convertible notes will be adjusted in the event that the company will spin off or otherwise divest of a material part of its business or operations or dispose of all or a portion of its assets. The company's obligation under the convertible notes is secured by all of its assets pursuant to a certain Security Agreement dated as of Feb. 27, 2006. The Class A warrants, as amended, are exercisable until four years from the effective date of the registration statement for the warrant shares at an exercise price equal to the conversion price of the Notes, and the Class B warrants are exercisable for 180 days from the effective date of the registration statement for the warrant shares at an exercise price equal to the conversion price of the Notes. A full text-copy of the Waiver, Consent and Amendment Agreement may be viewed at no charge at: http://ResearchArchives.com/t/s?13dd Universal Communications Systems, Inc. -- http://www.ucsy.com/- - and its subsidiaries are actively engaged worldwide in developing and marketing solar energy systems, as well as systems for the extraction of drinkable water from the air. Consolidated subsidiaries include wholly owned subsidiaries AirWater Corp., AirWater Patents Corp, Millennium Electric T.O.U. Ltd, Solar Style (USA) Inc., Solar One Inc, Solar Style Ltd., and Misa Water International, Inc, and majority-owned subsidiaries Atmospheric Water Technologies and Millennium USA. The company has operations in China, France and Panama. Prior to 2003, the company was engaged in activities related to advanced wireless communications, including the acquisition of radio-frequency spectrum internationally. Currently, the company's activities related to advanced wireless communications are conducted solely through its investment in Digital Way, S.A., a Peruvian communication company and former wholly owned subsidiary. Going Concern Doubt As reported in the Troubled Company Reporter on Jan. 19, 2006, Reuben E. Price & Co. expressed substantial doubt about Universal's ability to continue as a going concern after it audited the company's financial statements for the fiscal years ended Sept. 30, 2005 and 2004. The auditing firm pointed to the company's over US$1.5 million working capital deficit and recurring losses from operations. * Car Loans Pile Into Bad Debts, Tops CNY100 Billion ---------------------------------------------------- Chinese banks have piled up a mountain of bad debt after lending money to car buyers who can't afford the payments, Xinhuanet says, citing a report from Chen Xinnian. According to Mr. Chen, a senior researcher with the National Development and Reform Commission, bad bank debt relating to car loans has reached CNY100 billion, adding that the "Big Four" state banks -- China Construction Bank, the Bank of China, the Industrial and Commercial Bank of China and the Agricultural Bank of China -- owned 81% of the bad debts. Mr. Chen blames the lack of a sound individual credit system in China for the bad loans, Xinhuanet relates. He even pointed out that some banks provide false information for loan applications. The increasing demand for bank loans for expensive items such as houses and cars has helped boost China's economy but they need to be supported by a sound credit rating system, Mr. Chen adds. As a result, banks have become increasingly cautious in extending car loans and the evaluation of personal credit ratings to prevent their bad debts from swelling. * Non-Performing Loans Drop in Chinese Commercial Banks ------------------------------------------------------- Chinese commercial banks recorded a drop on its non-performing loan ratio to 7.6%, down 1.3 percentage points over the beginning of the year, the Xinhuanet reports. According to the report, statistics with China Banking Regulatory Commission show that bad loans in the state commercial banks declined by CNY16.4 billion to CNY1.1 trillion by the end of September 2006. The bad loan ratio reached 9.3%, down 1.2 percentage points over the beginning of the year. The CBRC also recorded twelve joint-stock commercial banks posting bad loans of CNY116.8 billion, a decline of CNY30.5 billion over the beginning of the year, Xinhuanet notes. The bad loan ratio for them dropped 1.3 percentage points to 2.9% in the period. Liu Mingkang, director of the commission, urges commercial banks to strengthen their efforts in reducing non-performing loans. In the first nine months, Xinhunet recounts that Chinese financial institutions reported 724 lawbreaking cases, 190 fewer over the previous year. Financial institutions in the banking sector should pay more attention to such cases, improve corporate governance and set up long-term mechanism of preventing risks, Mr. Liu says. Moreover, as China is to fully open its financial sector by the end of this year according to its commitment to the World Trade Organization, financial institutions could only survive the market by enhancing income from businesses other than interest rate and improving capability of better performance and service to customers, Mr. Liu adds. ========= I N D I A ========= ICICI BANK: Set to Invest in Technology & Manpower -------------------------------------------------- ICICI Bank Limited plans to make significant investments on technology and manpower in the next five years, the Press Trust of India reports. The report, citing a statement made by an ICICI Bank official, states that the heavy investments will serve the corporate, SME, wealth management, and rural and agriculture sectors. The Bank, without specifying the extent of the investment, believes there is immense opportunity in the four sectors. Investing will further reduce the Bank's operating cost, the official told PTI. The staff hiring will be mostly at the top- end to serve the boom in the banking services, he added. About ICICI Bank Headquartered in Mumbai, India, ICICI Bank Limited -- http://www.icicibank.com/-- is a financial services group providing a variety of banking and financial services, including project and corporate finance, working capital finance, venture capital finance, investment banking, treasury products and services, retail banking, broking and insurance. It also has interests in the software development, software services and business process outsourcing businesses. The Company's operations have been classified into three segments: Commercial Banking, Investment Banking and Others. It has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain, and representative offices in the United States, China, United Arab Emirates, Bangladesh and South Africa. * * * Fitch Ratings gave ICICI a 'C' Individual Rating. On Aug. 15, 2006, Standard & Poor's assigned its 'BB-' rating to the hybrid Tier-1 securities to be issued by ICICI Bank Ltd. On Oct. 16, S&P assigned its 'BB+' issue rating to its senior unsecured, five-year, fixed-rate U.S. dollar notes. ICICI BANK: Acquires 1.5% Stake in TV Today Network --------------------------------------------------- ICICI Bank Limited purchased 8.75 lakh of TV Today Network Limited shares in the open market, acquiring 1.5% stake in the television company, The Economic Times reports. The Bank bought the stake at INR75 per share on the Bombay Stock Exchange, hence shelling out INR6.56 crore. 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. INDIAN OIL: Liquidates INR985 Crore Oil Bonds Due 2015 ------------------------------------------------------ Indian Oil Corporation Limited successfully liquidated INR985 crore worth of oil bonds maturing in 2015 in the secondary market trade on October 12, 2006, through the book-building route, the company discloses in a press release. The issue size was INR250 crore with a green shoe option. The arrangers to the issue are: -- A.K. Capital Services Ltd., -- Allianz Securities Ltd., -- Centrum Capital Limited, -- ICICI Securities Ltd., and -- UTI Bank Ltd. According to Indian Oil, it has liquidated oil bonds totaling INR5,000 crore (of various maturities) in the secondary market sale during the current fiscal year including the current sale. The Government of India had previously issued oil bonds worth INR6,571 crore to Indian Oil in March 2006 in lieu of the under- recoveries suffered on the sale of LPG for domestic use and Kerosene for public distribution system. With the liquidation of these bonds, Indian Oil says it has successfully disposed of the entire quantum of oil bonds, except oil bonds of about INR1,500 crore that are pledged with the Clearing Corporation of India Limited for raising short-term funds. Bonds worth INR2,321 crore received by Indian Oil in September 2005 against settlement of pool dues are also pledged with CCIL, the company adds. About Indian Oil Corporation Headquartered in New Delhi, Indian Oil Corporation Limited -- http://www.iocl.com/-- is engaged in the sale of petroleum products. Other businesses comprise the sale of imported crude oil, sale of gas, petrochemicals and oil and gas exploration activities jointly undertaken in the form of unincorporated joint ventures. The company's premium fuels include XTRAPREMIUM petrol and XTRAMILE diesel. AutoGas is Indian Oil's auto liquid petroleum gas brand and sells SERVO lubricants in 10 countries. The aviation fuel supply business caters to the aviation fuel requirements of the defense services, national carriers, scheduled private airlines and international airlines. The Digboi Refinery of the Assam Oil Division processes crude oil and its marketing network comprises 366 retail outlets, 399 kerosene/light diesel oil dealerships, and 271 Indane distributors. It owns and operates 18 refineries with a combined refining capacity of 54.20 million tones per annum (1.1 million barrels per day). * * * The Troubled Company Reporter - Asia Pacific reported on April 21, 2006, that Standard & Poor's Ratings Services revised the outlook on Indian Oil to positive from stable. At the same time, S&P affirmed the 'BB+' issuer credit rating on the Company. The outlook revision follows the revision in the outlook on the sovereign credit ratings on India (BB+/Positive/B) on April 19, 2006. Additionally, Moody's Investors Service gave Indian Oil a Ba1 long-term corporate family rating and a Ba2 issuer rating on March 3, 2005. INDIAN OIL: Inks 3-Year Marketing Pact With Gabriel India --------------------------------------------------------- Indian Oil Corporation Limited and Gabriel India Ltd at New Delhi ink a three-year agreement for marketing Garbriel Servo Front Fork Oil. The Gabriel Servo Front Fork Oil will be sold through the retail network of Gabriel India and Indian Oil. According to Indian Oil Marketing Director G.C. Daga, the requirement for the Servo Front Fork Oil in the market is currently being met by low quality and sub-standard products, which reduce the life of the vehicle. Providing quality product will lead to enhanced life of the vehicle and provide better riding comfort, he adds. India Oil also believes that the marketing deal will consolidate both companies' presence catering to motorcycle users' needs. About Indian Oil Corporation Headquartered in New Delhi, Indian Oil Corporation Limited -- http://www.iocl.com/-- is engaged in the sale of petroleum products. Other businesses comprise the sale of imported crude oil, sale of gas, petrochemicals and oil and gas exploration activities jointly undertaken in the form of unincorporated joint ventures. The company's premium fuels include XTRAPREMIUM petrol and XTRAMILE diesel. AutoGas is Indian Oil's auto liquid petroleum gas brand and sells SERVO lubricants in 10 countries. The aviation fuel supply business caters to the aviation fuel requirements of the defense services, national carriers, scheduled private airlines and international airlines. The Digboi Refinery of the Assam Oil Division processes crude oil and its marketing network comprises 366 retail outlets, 399 kerosene/light diesel oil dealerships, and 271 Indane distributors. It owns and operates 18 refineries with a combined refining capacity of 54.20 million tones per annum (1.1 million barrels per day). * * * The Troubled Company Reporter - Asia Pacific reported on April 21, 2006, that Standard & Poor's Ratings Services revised the outlook on Indian Oil to positive from stable. At the same time, S&P affirmed the 'BB+' issuer credit rating on the Company. The outlook revision follows the revision in the outlook on the sovereign credit ratings on India (BB+/Positive/B) on April 19, 2006. Additionally, Moody's Investors Service gave Indian Oil a Ba1 long-term corporate family rating and a Ba2 issuer rating on March 3, 2005. INDIAN OIL: B N Bankapur Named as New Refineries Director --------------------------------------------------------- B N Bankapur has assumed charge as Director (Refineries) of Indian Oil Corporation, taking over Jaspal Singh's previous post, the company said in a press release. Prior to this assignment, Mr. Bankapur was the Executive Director (Operations) at the company's Refineries Division headquarters. A Chemical Engineer from the University of Mysore, Mr. Bankapur started his career with Indian Oil more than three decades ago. He has handled various portfolios in different refineries and at the divisional headquarters of the oil major and possesses a rich experience in the oil sector. He has also been closely involved in strategic planning and growth of the company through capacity enhancement, value addition and diversification projects. Mr. Bankapur is credited with the company's successful foray in the field of petrochemicals. Under his leadership as the Executive Director of Gujarat Refinery, commissioning of Indias largest Linear Alkyl Benzene Plant was achieved in record time in 2005. In the very first year of its operation, LAB plant achieved 100% capacity utilization. In his capacity as Executive Director (Operations), Mr. Bankapur was instrumental in successful supply of BS-II and EURO III grade petrol and diesel at all IOC refineries. He also guided the refineries in improving their gross margins by operational improvements and production of value added products for increased profitability. Mr. Bankapur is also on the Board of Directors of Chennai Petroleum Corporation Ltd. About Indian Oil Corporation Headquartered in New Delhi, Indian Oil Corporation Limited -- http://www.iocl.com/-- is engaged in the sale of petroleum products. Other businesses comprise the sale of imported crude oil, sale of gas, petrochemicals and oil and gas exploration activities jointly undertaken in the form of unincorporated joint ventures. The company's premium fuels include XTRAPREMIUM petrol and XTRAMILE diesel. AutoGas is Indian Oil's auto liquid petroleum gas brand and sells SERVO lubricants in 10 countries. The aviation fuel supply business caters to the aviation fuel requirements of the defense services, national carriers, scheduled private airlines and international airlines. The Digboi Refinery of the Assam Oil Division processes crude oil and its marketing network comprises 366 retail outlets, 399 kerosene/light diesel oil dealerships, and 271 Indane distributors. It owns and operates 18 refineries with a combined refining capacity of 54.20 million tones per annum (1.1 million barrels per day). * * * The Troubled Company Reporter - Asia Pacific reported on April 21, 2006, that Standard & Poor's Ratings Services revised the outlook on Indian Oil to positive from stable. At the same time, S&P affirmed the 'BB+' issuer credit rating on the Company. The outlook revision follows the revision in the outlook on the sovereign credit ratings on India (BB+/Positive/B) on April 19, 2006. Additionally, Moody's Investors Service gave Indian Oil a Ba1 long-term corporate family rating and a Ba2 issuer rating on March 3, 2005. IMAX CORP: S&P Affirms B- Rating and Removes Developing Watch ------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its ratings, including the 'B-' corporate credit rating, on IMAX Corp. and removed them from CreditWatch, where they were placed on March 10, 2006, with developing implications. The outlook is negative. As of June 30, 2006, the company had US$160 million of debt. "The rating action is based on management having discounted the likelihood of IMAX being acquired by a strategic buyer," said Standard & Poor's credit analyst Tulip Lim. "However, the company is continuing talks with financial buyers." As a result, S&P no longer sees the potential for an upgrade arising from a strategic transaction, and the possibility of a downgrade now appears less likely given that management has been reviewing offers for a while without concluding a transaction. The rating reflects the modest size and uncertain long-term earnings potential of the company's niche market relative to its debt burden, weak discretionary cash flow, and limited liquidity. These concerns overshadow IMAX's position as a specialized provider of giant-screen projection, camera, and sound systems; the recurring revenue provided by the installed base of about 280 IMAX theater systems; and a measure of near- term revenue visibility provided by the company's backlog of pending system installations. IMAX Corporation - http://www.imax.com-- is an entertainment technology company specializing in large-format and three- dimensional (3D) film presentations. The company's principal business is the design, manufacture, sale and lease of projection systems based on technology for large-format, 15- perforation film frame, 70-mm format (15/70-format) theaters, including commercial theaters, museums and science centers, and destination entertainment sites. IMAX has locations in India and Italy, among others. IMAX CORP: Inks Theatre Deal with Plaza de las Americas ------------------------------------------------------- IMAX Corp. signed an agreement with Plaza de las Americas-La Gran Plaza Comercial de Bogota, a prominent retail developer in Bogota, Colombia, to install an IMAX theatre as a new attraction in the country's largest mall. The theatre is scheduled to open in the third quarter of 2007. The agreement reflects IMAX's commitment to expand its network in Latin America, which now has 30 IMAX theatres scheduled to be open in the region by the end of 2008. "We are continuing to implement our international expansion strategy with another partnership in another major city in Latin America," said IMAX Co-CEOs and Co-Chairmen Richard L. Gelfond and Bradley J. Wechsler. "With a population of nearly 9 million, the city of Bogota is an ideal launching pad for The IMAX Experience in Colombia. We are delighted to announce our partnership with Plaza de las Americas-La Gran Plaza Comercial de Bogota to bring the ultimate cinematic experience to moviegoers in Colombia for the first time." "The IMAX Experience has been a successful draw for all types of destinations, from museums, to multiplexes, to major retail centers around the world," said Ms. Martha Lucia Stella, General Manager of Plaza de las Americas-La Gran Plaza Comercial de Bogota. "With top Hollywood movies available to the IMAX theatre network in IMAX and IMAX 3D, along with a wide range of original IMAX films that are both entertaining and educational, our new IMAX theatre will remind our millions of customers that the Plaza de Las Americas is a premium destination that offers unparalleled entertainment for the entire family." IMAX Corporation - http://www.imax.com-- is an entertainment technology company specializing in large-format and three- dimensional (3D) film presentations. The company's principal business is the design, manufacture, sale and lease of projection systems based on technology for large-format, 15- perforation film frame, 70-mm format (15/70-format) theaters, including commercial theaters, museums and science centers, and destination entertainment sites. IMAX has locations in India, and Italy, among others. SUN MICROSYSTEMS: Moody's Assigns Loss-Given-Default Ratings ------------------------------------------------------------ In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. Technology Hardware sector, the rating agency confirmed its Ba1 Corporate Family Rating for Sun Microsystems Inc. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings to these securities: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$550 million Sr. Unsec. Notes Ba1 Ba1 LGD5 76% Shelf-Sr Unsec. (P)Ba1 (P)Ba1 LGD5 76% Shelf-Subordinated (P)Ba2 (P)Ba2 LGD6 99% Shelf-Preferred (P)Ba3 (P)Ba2 LGD6 99% 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 Santa Clara, California, Sun Microsystems Inc. -- http://www.sun.com/-- provides network computing infrastructure solutions that include computer systems, data management, support services and client solutions and educational services. It sells networking solutions, including products and services, in most major markets worldwide through a combination of direct and indirect channels. The company has operations in Brazil, Hungary and India, among others. VNESHTORGBANK JSC: Earns US$576 Million for First Half 2006 ----------------------------------------------------------- Vneshtorgbank JSC released its consolidated financial results for the first half ended June 30, 2006. For the first six months of 2006, VTB's posted a 295% hike in net profit to US$576 million on a 96% increase in revenues to US$1.753 billion. For the January-June period, the company's net interest income rose 75.2% while net fee and commission income hiked more than 100%. Credits and advances to clients rose 18.9% to US$23.7 billion while the value of client accounts hiked 45.6%. VTB attributed the rise in operating volumes and profit to its acquisition of Promstroybank and European banks previously owned by the Bank of Russia. As of June 30, 2006, VTB had US$45.3 billion in total assets, US$39.5 in total liabilities and US$4.3 billion in shareholders' equity. About Vneshtorgbank Headquartered in Moscow, Russia, JSC Vneshtorgbank and its subsidiaries are a leading Russian commercial banking group, offering a wide range of banking services and conducting operations in both Russian and international markets. As of Dec. 31, 2005, the Group had a network of 151 branches, including 55 branches of VTB, 42 branches of VTB Retail Services and 54 branches of Industry and Construction Bank, located in major Russian regions. The Group operates through three subsidiaries located in the CIS (Armenia, Georgia, Ukraine), seven subsidiaries located in Western Europe (Austria, Cyprus, Switzerland, Germany, Luxembourg, France) and Great Britain and through five representative offices located in India, Italy, China, Byelorussia and Ukraine. * * * Following the recent upgrade of the Russian sovereign foreign and local currency IDRs to BBB+ from BBB, Fitch ratings lifted Vneshtorgbank and Vnesheconombank ratings at: Vnesheconombank: -- Upgraded to IDR BBB+ from BBB with a Stable Outlook; and -- Short-term upgraded to F2 from F3, Support affirmed at 2. Vneshtorgbank: -- Upgraded to foreign currency and local currency IDR BBB+ from BBB with a Stable Outlook; -- Short-term upgraded to F2 from F3; -- Individual affirmed at C/D; and -- Support affirmed at 2. VNESHTORGBANK JSC: Forecasts Over US$1.1 Billion Profit in 2006 ---------------------------------------------------------------- JSC Vneshtorgbank expects to post RUR30 billion (US$1.1 billion) in net profit this year, says RIAN Novosti citing Chief Executive Andrei Kostin. "That is considerably higher than last year," Mr. Kostin said. Vneshtorgbank reported net profit of US$576 million on revenues of US$1.753 billion for the first half ended June 30, 2006. As of June 30, 2006, VTB had US$45.3 billion in total assets, US$39.5 in total liabilities and US$4.3 billion in shareholders' equity. About Vneshtorgbank Headquartered in Moscow, Russia, JSC Vneshtorgbank and its subsidiaries are a leading Russian commercial banking group, offering a wide range of banking services and conducting operations in both Russian and international markets. As of Dec. 31, 2005, the Group had a network of 151 branches, including 55 branches of VTB, 42 branches of VTB Retail Services and 54 branches of Industry and Construction Bank, located in major Russian regions. The Group operates through three subsidiaries located in the CIS (Armenia, Georgia, Ukraine), seven subsidiaries located in Western Europe (Austria, Cyprus, Switzerland, Germany, Luxembourg, France) and Great Britain and through five representative offices located in India, Italy, China, Byelorussia and Ukraine. * * * Following the recent upgrade of the Russian sovereign foreign and local currency IDRs to BBB+ from BBB, Fitch ratings lifted Vneshtorgbank and Vnesheconombank ratings at: Vnesheconombank: -- Upgraded to IDR BBB+ from BBB with a Stable Outlook; and -- Short-term upgraded to F2 from F3, Support affirmed at 2. Vneshtorgbank: -- Upgraded to foreign currency and local currency IDR BBB+ from BBB with a Stable Outlook; -- Short-term upgraded to F2 from F3; -- Individual affirmed at C/D; and -- Support affirmed at 2. VNESHTORGBANK JSC: To Tackle Promstroybank Takeover Next Month -------------------------------------------------------------- JSC Vneshtorgbank will decide in November whether to commence a takeover of Industry & Construction Bank of St. Petersburg (Promstroybank), says RIA Novosti citing Chief Executive Andrei Kostin. VTB currently owns 75% plus three shares of Promstroybank. The company has rise in operating volumes and profit in the first half of 2006 to its acquisition of Promstroybank. The regional bank's shareholders has already approved of a takeover by VTB. Once a decision for takeover is reached, VTB will apply for approval from the Russian government. Headquartered in St. Petersburg, Russia, Industry and Construction Bank -- http://www.icbank.ru/-- engages in in universal banking with a special franchise in corporate finance and investment banking. About Vneshtorgbank Headquartered in Moscow, Russia, JSC Vneshtorgbank and its subsidiaries are a leading Russian commercial banking group, offering a wide range of banking services and conducting operations in both Russian and international markets. As of Dec. 31, 2005, the Group had a network of 151 branches, including 55 branches of VTB, 42 branches of VTB Retail Services and 54 branches of Industry and Construction Bank, located in major Russian regions. The Group operates through three subsidiaries located in the CIS (Armenia, Georgia, Ukraine), seven subsidiaries located in Western Europe (Austria, Cyprus, Switzerland, Germany, Luxembourg, France) and Great Britain and through five representative offices located in India, Italy, China, Byelorussia and Ukraine. * * * Following the recent upgrade of the Russian sovereign foreign and local currency IDRs to BBB+ from BBB, Fitch ratings lifted Vneshtorgbank and Vnesheconombank ratings at: Vnesheconombank: -- Upgraded to IDR BBB+ from BBB with a Stable Outlook; and -- Short-term upgraded to F2 from F3, Support affirmed at 2. Vneshtorgbank: -- Upgraded to foreign currency and local currency IDR BBB+ from BBB with a Stable Outlook; -- Short-term upgraded to F2 from F3; -- Individual affirmed at C/D; and -- Support affirmed at 2. ================= I N D O N E S I A ================= ANIXTER INT: Reports US$76.2MM Net Income for Third Quarter 2006 ---------------------------------------------------------------- Anixter International Inc. reported results for the quarter ended Sept. 29, 2006. Third Quarter Highlights -- Record quarterly sales of US$1.33 billion, including US$13.6 million from the acquisition of IMS, Inc., in May 2006, rose 32% compared with sales of US$1.01 billion in the year ago quarter. -- Quarterly operating income of US$96.1 million reflected a 97% increase from the US$48.9 million reported in the third quarter of 2005. -- Inclusive of US$22.8 million of income, or 53 cents per share, arising from a tax settlement with the Internal Revenue Service, net income in the quarter increased 204%, to US$76.2 million, or US$1.76 per share, from US$25.1 million, or 62 cents per share, in last year's third quarter. -- Third quarter copper prices averaged US$3.54 per pound versus US$1.70 per pound in the year ago quarter. This increase added an estimated US$68 million to sales, US$18 million to operating income, US$11 million to net income and 25 cents to earnings per share as compared with the year ago quarter. Robert Grubbs, President and CEO, said, "Our focus on supply chain services and our continued progress in the security and OEM markets, along with solid growth in our core markets, produced record sales and operating results in the third quarter. As has been the case over the past several quarters, third quarter growth was broad-based across all the geographies and markets we serve." Third Quarter Results For the three-month period ended Sept. 29, 2006, sales of US$1.33 billion produced net income of US$76.2 million, or US$1.76 per diluted share. Included in the current year's third quarter results were sales of US$13.6 million from the acquisition of IMS in May 2006. The current quarter results include US$22.8 million, or 53 cents per diluted share, of income primarily associated with a refund to be received from the U. S. Internal Revenue Service resulting from the final settlement of income taxes covering the period of 1996 through 1998. The interest income portion of this settlement of US$7.7 million (after-tax impact of US$4.7 million) is reflected on the income statement on the other, net line. The remaining portion of the settlement is recorded as an US$18.1 million reduction to the tax provision. In the prior year period, sales of US$1.01 billion generated net income of US$25.1 million, or 62 cents per diluted share. Operating income in the third quarter increased 97% to US$96.1 million as compared with US$48.9 million in the year ago quarter. For the latest quarter, operating margins were 7.2% as compared with 4.8% in the third quarter of 2005. Nine-Month Results For the nine-month period ended Sept. 29, 2006, sales of US$3.64 billion produced net income of US$156.9 million, or US$3.66 per diluted share. When compared with the first nine months of the prior year, 2006 year-to-date sales were favorably affected by US$165.4 million related to the acquisitions of Infast in July 2005 and IMS in May 2006. The nine-month results include the same described effects as those noted above related to the tax settlement with the Internal Revenue Service for the third quarter. In the prior year period, sales of US$2.82 billion produced net income of US$69.9 million, or US$1.74 per diluted share. Operating income in the first nine months of fiscal 2006 increased 83% to US$246.7 million as compared with US$134.7 million in the year ago period. Operating margins in the first nine months of 2006 were 6.8% as compared with 4.8% in the prior year period. Third Quarter Sales Trends Commenting on third quarter sales trends, Mr. Grubbs said, "Sales in the third quarter grew at a year-over-year organic rate of 28% after adjusting for the IMS acquisition and the favorable foreign exchange impact of US$21.1 million on third quarter sales. The year-over-year organic growth clearly exceeded our target of 8 to 12%, as we again saw very strong customer demand across a broad mix of our business." Mr. Grubbs continued, "The factors driving our organic growth were consistent with those we have seen the past few quarters. In the most recent quarter, we saw very strong growth in larger project business, particularly as it relates to data center builds in the enterprise cabling market and energy and natural resources customers within our electrical and electronic wire & cable market. At the same time, we have continued to experience strong growth in the security and OEM markets. Lastly, rising copper prices continued to contribute to our organic growth in the most recent quarter. During the quarter, market-based copper prices averaged approximately US$3.54 per pound, compared with US$1.70 per pound in the year ago third quarter and US$3.39 per pound in the second quarter of 2006. We estimate that the higher copper prices accounted for an estimated US$68 million of our year-on-year quarterly increase in sales within the electrical wire & cable market. After taking out the impact of copper prices, the IMS acquisition and foreign exchange, however, we were still able to grow sales by nearly 22 percent over the prior year third quarter. "Specifically, in North America we saw year-over-year sales grow by 33 percent to US$991.7 million in the most recent quarter. In addition to strong end-market demand, North American sales were up US$10.8 million due to the stronger Canadian dollar, US$13.6 million due to the acquisition of IMS, and an estimated US$63 million due to higher copper prices," commented Mr. Grubbs. "In Europe, we saw sales climb by 26 percent as compared with the year ago quarter, of which US$10.6 million was due to exchange rate differences and US$5 million was due to higher copper prices in the electrical wire & cable business. Without exchange rate differences and copper effects, sales in Europe still grew organically by 18% as compared with the year ago quarter." "In the emerging markets of Latin America and Asia Pacific, we saw a 39% increase in year-on-year sales, with a negligible impact from currency exchange rate effects. Growth was strong throughout the segment as both Asia Pacific and Latin America posted year-on-year growth rates in excess of 38 percent," continued Mr. Grubbs. Third Quarter Operating Results "As a result of very strong sales growth, third quarter operating margins were 7.2% as compared with 4.8% in the year ago period," said Mr. Grubbs. "In North America, the 33% sales growth resulted in better operating leverage, which generated operating margins of 7.8 percent as compared with 5.7% in the prior year third quarter. While strong market conditions and market share gains were the primary drivers of the sales growth and improved profitability, copper prices again played a meaningful part in the strong third quarter operating results. As noted, copper prices added an estimated US$63 million to North American electrical wire & cable sales, which had the effect of adding an estimated US$17 million to third quarter operating income as compared with the year ago quarter." Mr. Grubbs added, "In Europe, operating margins in the most recent quarter were 5.0% as compared with 2.1% in the year ago quarter. This significant improvement in operating margins reflects the operating leverage we gained as a result of strong organic sales growth. Operating results in the quarter did benefit marginally from higher copper prices, which added an estimated US$1 million to operating income and 35 basis points to operating margins. We were encouraged by the results in the most recent quarter, but anticipate that maintaining consistently solid organic sales growth will remain a challenge." "Third quarter operating margins in the Emerging Markets were 6.9% as compared with 3.4% in the year ago quarter. Continued sales growth throughout these markets has allowed us to better leverage infrastructure costs and improve operating margins," added Mr. Grubbs. Cash Flow and Leverage "With organic growth rates again running above levels at which we can generate positive cash flow from operations, due to the high working capital requirements associated with such growth, we saw an increase in outstanding debt balances during the quarter," said Dennis Letham, Senior Vice President-Finance. "Although borrowings increased in the quarter, our strong operating performance, combined with the recording of the tax settlement with the Internal Revenue Service, meant shareholders equity grew at an even faster rate. As a result, we were again able to reduce our debt-to-total capital leverage ratio. At the end of the third quarter that ratio was 44.7% as compared with 47.0% at the end of last year." "For the third quarter our weighted average cost of borrowed capital was 5.5% compared with 5.0% in the year ago quarter. At the end of the third quarter, 63% of our total borrowings of US$732.6 million were fixed, either by the terms of the borrowing agreements or through hedging arrangements. We also had US$208.1 million of available, unused credit facilities at Sept. 29, 2006, which provide us with the resources to support continued strong organic growth and to pursue other strategic alternatives, such as acquisitions, in the coming quarters." Business Outlook Mr. Grubbs concluded, "The first nine months of 2006 have been a record-setting period of revenue growth and operating profitability for Anixter. This record performance is the result of strong underlying market fundamentals, solid progress on our strategic initiatives to build our security and OEM business, additions to our supply chain services offering, the expansion of our product offering and the benefits of increased copper prices. As we enter the final quarter of the year, our ability to continue executing on our strategic initiatives, together with further progress on the integration of recent acquisitions, will be the keys to our success." "While the fundamentals support a continuation of the trends of the past few quarters, the fourth quarter is generally negatively affected by the large number of holidays and customer facility shutdowns coincident with those holidays. As a result, it is our expectation that we will see a modest decline in fourth quarter sales versus the third quarter results reported, but that we will once again experience improved results compared with the prior year. Looking forward to 2007, we expect full year organic sales growth to be within our target of 8 to 12 percent assuming no sudden significant changes in copper prices." Anixter International Inc. -- http://www.anixter.com-- is the world's largest distributor of communication products and electrical and electronic wire and cable, and a leading distributor of fasteners and other small parts ("C" class inventory components) to original equipment manufacturers. The company has nearly US$725 million in inventory of more than 325,000 products, logistics network of 197 warehouses with more than 5.0 million square feet of space, and our presence in 220 cities in 45 countries, including Australia, China, Hong Kong, India, Indonesia, Malaysia, New Zealand, the Philippines, Singapore, Taiwan, and Thailand. The Troubled Company Reporter -- Asia Pacific reports that in connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the Wholesale Distribution (Excluding Healthcare) sector, the rating agency confirmed its Ba1 Corporate Family Rating for Anixter International Inc. 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$200 million 5.95% Unsecured Notes Ba1 Baa3 LGD2 28% US$155 million Subordinated LYON's notes Ba3 Ba2 LGD6 94% US$100 million Shelf P(Ba1) P(Baa3) LGD2 28% Fitch Ratings affirmed these ratings for Anixter International Inc. and its wholly owned operating subsidiary, Anixter Inc.: Anixter: -- Issuer Default Rating 'BB+' -- Senior unsecured debt 'BB-' AI: -- Issuer Default Rating 'BB+' -- Senior unsecured notes 'BB+' -- Senior unsecured bank credit facility at 'BB+' Fitch's action affects approximately US$700 million of public debt securities. The Rating Outlook is Stable. BANK NEGARA: Pefindo Upgrades 2011 Bonds Rating to 'idA' -------------------------------------------------------- PT Pefindo Credit Rating Indonesia upgraded its ratings for PT Bank Negara Indonesia (Persero) Tbk. and the Bank's Bond I/2003 maturing on July 10, 2011 to "idA" from "idA-", while the rating for the Bank's Subordinated Bond I/2003 maturing on July 10, 2013 is upgraded to "idA-". The rating actions reflect Pefindo's increasing confidence on the government, the majority owner of the Bank, to strongly support the existence of the Bank in the market, as the Bank holds significant market shares in terms of assets, loans as well as third party deposits. The ratings also reflect the Bank's adequate capital base and liquidity. As of 1H06, the Bank's equity amounted to IDR12.1 trillion, the fourth largest among all commercial banks in Indonesia, while liquidity measured by liquid assets over customer and short-term funding ratio stayed favorably at 66.8% compared to peers' average of 60.8%. However, the ratings are still mitigated by the Bank's assets quality that weakened to 16.6% as of 1H06 from 4.6% in FY04 mainly attributable to the implementation of PBI 7/2/2005 that required the downgrades of several the Bank's big corporate loans, which actually have been in the portfolio of the Bank since the crisis in 1998. Bank Negara was established in 1946 and since then it has been perceived as a corporate and government-related bank. Up to now, the Bank provides a broad range of commercial banking activities through its 959 offices and 2,272 proprietary ATMs, which are also incorporated with more than 8,000 units of other ATM Network. To support its daily banking activities, the Bank employs around 18,664 staffs. As to date, the Government of Republic Indonesia still owns a majority ownership of 99.12%, whilst the remaining 0.88% is held by the public. The ratings actions reflect the Bank's: -- Continuing strong support from the government. Pefindo is strongly confident that the government will provide supports to Bank Negara in case it experiences financial difficulties given the systemic risks it can bring to the country's overall economy. The assumption has been supported by the government action to inject a huge capital of IDR61.8 trillion through a recapitalization program during the crisis. Despite the government support, the Bank itself is working very hard to achieve its new vision and mission formulated in "Navigation Map 2004-2018" in an effort to reposition its branding and improve its performance going forward. -- Strong business position. With total asset of IDR146.8 trillion as of 1H06, Bank Negara is regarded as the third largest bank in Indonesia, controlling around 10% market share. Total loans and deposits amounted to IDR65 trillion and IDR116.9 trillion during 1H06, capturing market shares of about 9.1% and 10.0%, respectively. During the past several years, BBNI has tried to diversify its loan portfolio by reducing corporate loans and enlarging commercial and consumer loans. As of 1H06, a portion of the Bank's corporate loan has declined to around 38% of total loans (vs. 90% historically), while commercial and consumer loans contributed 43% and 17%, respectively. As of 1H06, the Bank's consumer and commercial loans have reached IDR10.1 trillion and IDR26.5 trillion, respectively partly due to a significant growth in small and medium consumer segment. To strengthen its business position, the Bank has also further improved its integrated IT system, which recently has been completed and implemented in all of its outlets to support the Bank's product and service developments. -- Adequate capital base and liquidity. With total equity of IDR12.1 trillion as of 1H06, the Bank's capital base is considered adequate to absorb potential losses from its NPL in addition to LLR of 42.5%. The Bank's CAR also stood favorably at 20% in 1H06 compared to 16.7% in FY05 and 17.9% in FY04, while LDR stayed at 51.8% as of 1H06, slightly declined from 54.2% in FY05 and 55.1% in FY04. Bank Negara's liquidity measured Liquid asset/Customer & ST funding ratio is also considered relatively strong, standing at 66.8% as of 1H06 compared to peers' average of 60.8%. The ratings are mitigated by the Bank's: -- Weak assets quality. Along with the changes in its earnings asset composition, Bank Negara's risk profile had gradually shifted from market risks to credit risks. The portion of the Bank's loans to total assets had continuously increased to 44.3% in 1H06 from 26.7% in FY01, while the portion of government bonds to total assets had continuously declined to 21% in 1H06 from 69.0% in FY01, as the amount of government bonds held by the Bank declined to IDR20.7 trillion from IDR60.1 trillion during the period. Along with its loan expansion, the Bank's asset quality measured by NPL ratio had weakened to 16.6% in 1H06 from 4.6% in FY04, as the total amount of non-performing loans (3-5) steeply increased to IDR10.0 trillion from IDR2.7 trillion during the period. The significant increase in NPL ratio was mainly triggered by the implementation of "one obligor concept" through PBI 7/2/2005 in early 2005 that made several of the Bank's big corporate loans downgraded. As a result, the Bank's Loan Loss Reserve over NPL (3-5) ratio has dropped to 42.5% as of 1H06 from 117.5% in FY04, which was also partly due to a charge off to cover its losses from LC fraud case. In addition, Bank Negara is still burdened by a huge special mention loans (category 2), which could be further downgraded to lower categories in the medium term. This loan category totaled to IDR7.6 trillion in 1H06, accounted for about 12% of its total gross loans. 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). ERICO INTERNATIONAL: Moody's Assigns Loss-Given-Default Rating -------------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. manufacturing sector, the rating agency affirmed its B1 Corporate Family Rating for Erico International Corporation, as well as revised the rating on the company's US$141 million 8.875% senior subordinate notes due 2012 to B2 from B3. Those notes were assigned an LGD5 rating suggesting that noteholders will experience a 74% 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 Solon, Ohio, Erico International Corporation -- http://www.erico.com/-- is a designer, manufacturer and marketer of precision-engineered specialty metal products serving markets in a diverse range of electrical, commercial and industrial construction, utility and rail applications. It has offices in Indonesia, Australia, Belgium, Chile, Mexico, and the United States, among others. GOODYEAR TIRE: S&P Puts Synthetic Transactions' Rating on Watch --------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'B-' ratings on Corporate Backed Trust Certificates Goodyear Tire & Rubber Note- Backed Series 2001-34 Trust's class A-1 and A-2 certificates on CreditWatch with negative implications. The CreditWatch placements follow the Oct. 16, 2006, placement of the ratings assigned to Goodyear Tire & Rubber Co. on CreditWatch with negative implications. Corporate Backed Trust Certificates Goodyear Tire & Rubber Note-Backed Series 2001-34 Trust is a swap-independent synthetic transaction that is weak- linked to the underlying securities, Goodyear Tire & Rubber Co.'s 7% notes due March 15, 2028. Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company (NYSE: GT) -- http://www.goodyear.com/-- is the world's largest tire company. The company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries. It has marketing operations in almost every country around the world, including Indonesia, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan, and Thailand. Goodyear employs more than 80,000 people worldwide. The company's Asia Pacific headquarters is in Shanghai, China. INCO LTD: Companhia Vale do Rio Doce Acquires 75.7% Stake --------------------------------------------------------- Companhia Vale do Rio Doce reveals that 174,623,019 common shares of Inco Limited have been validly deposited to CVRD's offer to purchase for cash all of the outstanding common shares of Inco. CVRD has taken up and accepted for payment all shares tendered, which represent 75.66% of the issued and outstanding Inco common shares on a fully diluted basis. CVRD also announced that it has extended the expiry date of the CVRD Offer to enable the remaining Inco shareholders to receive prompt payment of the CDN$86.00 per share consideration under the CVRD Offer. The CVRD Offer will now expire at midnight (Toronto time) on Nov. 3, 2006. "Inco's Board and management believe that combining CVRD and Inco presents a great opportunity to create value," said Scott Hand, Inco's Chairman and Chief Executive Officer. "We plan to assist CVRD in every way we can to ensure a smooth integration of our two companies, to create a new global leader in the metals and mining industry." "Inco has a long and storied history and our employees can take can great pride in what we have achieved," Mr. Hand added. "Now we're looking forward to an exciting new phase in our history." About CVRD Headquartered in Rio de Janeiro, Brazil, Companhia Vale do Rio Doce -- http://www.cvrd.com.br/-- engages primarily in mining and logistics businesses. It engages in iron ore mining, pellet production, manganese ore mining, and ferroalloy production, as well as in the production of nonferrous minerals, such as kaolin, potash, copper, and gold. About Inco Ltd. Headquartered in Sudbury, Ontario, Inco Limited (TSX, NYSE:N) -- http://www.inco.com/-- produces nickel, which is used primarily for manufacturing stainless steel and batteries. Inco also mines and processes copper, gold, cobalt, and platinum group metals. It makes nickel battery materials and nickel foams, flakes, and powders for use in catalysts, electronics, and paints. Sulphuric acid and liquid sulphur dioxide are produced as byproducts. The company's primary mining and processing operations are in Canada, Indonesia, and the U.K. * * * Inco Limited's 3-1/2% Subordinated Convertible Debentures due 2052 carry Moody's Investors Service's Ba1 rating. INCO LTD: Steelworkers Union Approves New Collective Agreement -------------------------------------------------------------- Members of the United Steelworkers' Local 7619 at Teck Cominco Ltd.'s Highland Valley Copper mine have voted to accept a new multi-year collective agreement with Inco Ltd., which will be in place until Sept. 30, 2011. USW Western Canada Director Steve Hunt said that worker solidarity and tough bargaining by the union led to a contract that leads the way in the Canadian copper mining industry, while soundly defeating Teck Cominco's drive for concessions. "Our members, who are the most productive copper miners in the world, said no to concessions and stood strongly together to achieve a solid collective agreement, with major increases to wages and benefits," said Hunt. "Steelworkers have negotiated our fair share and these improvements will benefit our families and our communities." Local 7619 President Richard Boyce said the union's negotiating committee counted on the strength of its membership to ensure the last-minute agreement. A strike was averted just minutes before midnight on Sept. 30, 2006, as the union's nearly 800 members at HVC were poised to shut down operations. Workers had voted 99.8 per cent in favor of taking strike action if a new contract was not reached. Highlights of the five-year collective agreement include across- the-board wage increases of four per cent in each year, along with an additional wage category negotiated for trades and technical workers. On Oct. 1, 2010 the top wage will be $38.91 per hour. Retiring employees will receive increased defined pension benefits of US$60 per month per year of service in the first year, with subsequent increases. Those retiring in the fifth year of the contract will receive US$68 per month per year of service. Increased survivors' benefits will be provided at no additional cost to workers. To help achieve higher retirement benefits in the future, workers will steer their future copper production bonuses -- in which copper prices have risen by 300 per cent in the last three years -- into the pension plan to drive further increases in defined benefits. If copper prices remain above CDN$1.27, the copper bonus will add an additional US$1.50 to US$2 to the pension base in each year of the deal. Other key improvements are post-retirement medical benefits, along with other improvements to benefit members and their families. To assist in training and keeping trades apprentices employed at HVC, the union negotiated wage grade increases in all five years of the apprenticeship period, along with a series of other benefits. In addition there are vacation pay increases to those with between 18-28 years seniority. The agreement also includes increased severance pay should any employee be laid off as a result of the restructuring of company's operations or in the case of a permanent closure. The USW represents more than 280,000 men and women working in every sector of Canada's economy. About Inco Ltd. Headquartered in Sudbury, Ontario, Inco Limited (TSX, NYSE:N) -- http://www.inco.com/-- produces nickel, which is used primarily for manufacturing stainless steel and batteries. Inco also mines and processes copper, gold, cobalt, and platinum group metals. It makes nickel battery materials and nickel foams, flakes, and powders for use in catalysts, electronics, and paints. Sulphuric acid and liquid sulphur dioxide are produced as byproducts. The company's primary mining and processing operations are in Canada, Indonesia, and the U.K. * * * Inco Limited's 3-1/2% Subordinated Convertible Debentures due 2052 carry Moody's Investors Service's Ba1 rating. TELKOM INDONESIA: Pefindo Affirms 'idAAA' Ratings ------------------------------------------------- PT Pefindo Credit Rating Indonesia affirmed its "idAAA" ratings for PT (Persero) Telekomunikasi Indonesia Tbk., the Company's Bond I of IDR1 trillion, and the Company's medium-term notes of IDR1.125 trillion. The ratings reflect strong demand of telecommunication services in Indonesia, Telkom Indonesia's superior market position in telecommunication industry and very strong financial profile. The ratings are, however, mitigated by limited growth of fixed line business and the Company's large exposure to foreign currency risks. As the largest telecommunication player in Indonesia, Telkom Indonesia's customer base is very well diversified for a wide range of services including local, long distance and international calls, cellular calls, fixed wireless access, interconnection, data & internet, satellite transponder, leased lines, cable TV, VOIP and other telecommunication related services. The Company is listed in three stock exchanges, Jakarta, New York, and London. As to date, the Government of Indonesia still owns majority ownership of 51.19%, followed by public (31.96%) and other institutions (16.85%). In May 2001, Telkom Indonesia had acquired PT Telkomsel, the largest cellular operator in the country as parts of the cross-ownership settlements between Telkom Indonesia and PT Indosat Tbk. Currently, Telkom Indonesia owns 65% of TLKS's shares. About Telkom Indonesia Based in Bandung, Indonesia, Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk -- http://www.telkom-indonesia.com/ -- provides local and long-distance telephone service in Indonesia. Known as Telkom, the company also offers fixed- wireless service, leased lines, and data transport through affiliates. * * * As reported in the Troubled Company Reporter - Asia Pacific on May 22, 2006, Moody's Investors Service gave Telekomunikasi Indonesia a Ba1 local currency corporate family rating. Standard & Poor's Ratings Services gave the Company foreign and local currency corporate credit ratings of BB+. Fitch Ratings has assigned Telkom Indonesia Long- term foreign and local currency Issuer Default Ratings of 'BB-'. ========= J A P A N ========= ALL NIPPON AIRWAYS: S&P Upgrades Corp. Credit Rating to 'BB' ------------------------------------------------------------ Standard & Poor's Ratings Services raised its ratings on All Nippon Airways Co. Ltd. to 'BB' from 'BB-' on the company's stabilizing cash flow, backed by progress in business restructuring. The outlook on the long-term corporate credit rating is stable. All Nippon Airways has strengthened its earnings, backed by its stable position in the domestic leisure travel market. The company has drastically lowered the risk of falling back into the red by reducing costs, especially personnel costs, and rationalizing operations through efficient fleet assignment and enhanced airfare control. Although high fuel prices remain a risk factor, ANA is expected to maintain brisk cash flows, supported by ongoing efforts to raise the efficiency of its passenger transport business. Through the Star Alliance network, the company has deepened its connections with other international carriers and continued to invest in new aircraft. The company is also focusing on growth segments, such as establishing a new cargo airline in a joint venture with Japan Post. Overall, ANA is expected to be able to improve its competitive position and further strengthen its earnings in the medium to long term. In preparation for an increase in departure and arrival slots following the expansion of Haneda Airport in 2009, ANA is planning capital investments exceeding JPY170 billion annually over the next three to four years. However, Standard & Poor's believes the company can maintain the recovery in its financial profile, given its stabilizing cash flow generation and its efforts to further reduce costs. Although debt levels remain high, the company's ratio of total debt to total capital (adjusted for leasing liabilities) decreased to 76% as of fiscal 2005 (ended March 31, 2006) from 84% a year earlier due to a capital increase of JPY100 billion in March 2006. The company is expected to be able to continue to reduce debt. The outlook is stable. Standard & Poor's will continue to follow progress in ANA's efforts to strengthen its competitiveness and prioritize its financial recovery. If the likelihood increases that the company will hit targets set in its medium-term management plan through fiscal 2009, Standard & Poor's may revise upward its outlook or rating on the company. On the other hand, if factors such as volatile fuel prices, safety problems, terrorism, infectious diseases, or geopolitical risks increase concerns over the company's earnings or financial profile, the rating may come under downward pressure. FORD MOTOR: Moody's Says Weak Results Consistent with B3 Rating --------------------------------------------------------------- Moody's Investors Service disclosed that Ford's very weak third quarter performance, with automotive operations generating a pre-tax loss of US$1.8 billion and a negative operating cash flow of US$3 billion, was consistent with the expectations which led to the Sept. 19 downgrade of the company's long-term rating to B3. "Ford's rating at B3 anticipated further weakness in financial results as indicated by the company's need to accelerate its restructuring initiatives. Nevertheless, Ford's outlook remains negative." said Bruce Clark, senior vice president and lead auto industry analyst at Moody's "The key to Ford's Way Forward restructuring plan is to reduce capacity by buying out 25,000 to 30,000 hourly employees and to shift its product line toward cars and more fuel efficient vehicles," Clark said "The problem is that the financial benefits of the program don't begin to kick in until 2009," he added. "This means that even if things go according to plan, Ford will likely burn through a significant amount of cash during 2006 and 2007. The rate of cash consumption could improve in 2008, but cash flow could still be negative in that year." At September 30th, Ford had over US$23 billion in cash and equivalents. However, Ford needs several billion in cash to run its day to day operations. Consequently, the amount of funds currently available to cover operating losses and restructuring requirements is sizable, but it is not the full US$23 billion to which Ford has access. "If Ford hits its cost reduction, market share and new product introduction objectives, the company's cash resources should be adequate to cover uses through 2007," Clark said. "But, things could start to get tight in 2008 if operating cash flow is still negative. In fact, the company's liquidity position could become stressed prior to 2008 if the operating environment is more difficult than planned. This could happen if the economy slows, if there is any kind of work stoppage associated with the 2007 UAW negotiations, or if the already weak financial position of the supplier base erodes further." The significant level of cash consumption that Ford will face during 2007 and 2008, and the potential strain that this will place on the company's liquidity contributed to Moody's September downgrade of Ford's Speculative Grade Liquidity rating to SGL-3 from SGL-1. Ford has reported its decision to consider accessing the secured debt market in order to bolster its cash position. "Given the extended time frame of the Way Forward restructuring plan and the level of cash that may be required through 2008, it will be important for Ford to increase its cash position in order to provide an adequate liquidity cushion," Clark said. "If Ford can't boost its liquidity through accessing the secured debt market, through asset sales or through some other strategic alternatives, there could be further pressure on its long-term and SGL ratings." Should Ford issue secured debt for the purpose of building liquidity, there would likely be no adverse impact on the company's B3 corporate family rating. However, consistent with the analytic framework contained in Moody's Probability of Default and Loss Given Default Methodology dated August 2006, the rating of any secured borrowings by Ford would likely be one or more notches higher than the B3 corporate family rating. In contrast, the rating of the company's unsecured obligations would be subject to a downgrade from current levels. Ford reported that it would have to restate its quarterly and annual financials back to 2001 due to errors in the application of "the short-cut method" promulgated under Statement of Financial Accounting Standard 133 in connection with the accounting for certain hedging transactions. As a result, Ford expects earnings for 2002 to improve materially; the impact on years 2003 through 2006 has not yet been assessed. The company also anticipates that there will be no cash impact and that the necessary restatements for all years will be made in time to permit a timely filing of its third quarter 10Q. In a March 2006 Special Comment on SFAS 133 Moody's noted that many recent restatements by other companies arising from SFAS 133 reflect technical misinterpretations of the accounting rules which do not alter the economic substance of the transactions. On the matter of Ford's restatement Clark said, "Moody's wouldn't view Ford's restatement as a negative credit event as long as the company's auditors make no determination of a Material Weakness with respect to Ford's ongoing hedge accounting, there is no delay in the filing of the company's financial statements, and no other accounting issues arise in conjunction with this restatement." Headquartered in Dearborn, Michigan, Ford Motor Company -- http://www.ford.com/-- manufactures and distributes automobiles in 200 markets across six continents. With more than 324,000 employees worldwide, the company's core and affiliated automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive- related services include Ford Motor Credit Company and The Hertz Corporation. The Company has operations in Japan. FORD MOTOR: S&P Puts Ratings on Synthetic ABS on Negative Watch --------------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings on eight U.S. single-issue synthetic ABS transactions related to Ford Motor Co. (Ford; B/Negative/B-3) on CreditWatch with negative implications. In addition, the rating on one U.S. single-issue ABS transaction related to Ford Motor Co. Capital Trust II is lowered to 'CCC-' from 'CCC'. The Oct. 23, 2006, placement of the senior unsecured debt ratings on Ford on CreditWatch with negative implications and the downgrade of Ford Motor Co. Capital Trust II do not have any immediate rating impact on the Ford-related ABS supported by collateral pools of consumer auto loans or auto wholesale loans. Each of the eight securitizations with ratings placed on CreditWatch negative is weak-linked to Ford's senior unsecured debt. The lowered rating on STEERS Credit-Backed Trust Series 2002-3 F is weak-linked to the rating on Ford Motor Co. Capital Trust II's preferred stock. Either Ford or Ford Motor Co. Capital Trust II provides the underlying collateral or referenced obligations in the affected securitizations, as indicated below. The Oct. 23, 2006, placement of the ratings on Ford on CreditWatch negative and the downgrade of Ford Motor Co. Capital Trust II reflect the potential for unsecured creditors to be disadvantaged if Ford were to incur a material amount of secured borrowings. Ratings Placed On Creditwatch Negative Corporate Backed Trust Certificates Ford Motor Co. Debenture-Backed Series 2001-36 Trust Rating Class To From Role of Ford A-1 B/Watch Neg B Underlying collateral A-2 B/Watch Neg B Underlying collateral Corporate Backed Trust Certificates Ford Motor Co. Note-Backed Series 2003-6 Trust Rating Class To From Role of Ford A-1 B/Watch Neg B Underlying collateral CorTS Trust for Ford Debentures Rating Class To From Role of Ford Certs B/Watch Neg B Underlying collateral CorTS Trust II for Ford Notes Rating Class To From Role of Ford Certs B/Watch Neg B Underlying collateral Freedom Certificates US Autos Series 2004-1 Trust Rating Class To From Role of Ford A B/Watch Neg B Underlying collateral X B/Watch Neg B Underlying collateral PPLUS Trust Series FMC-1 Rating Class To From Role of Ford Certs B/Watch Neg B Underlying collateral PreferredPLUS Trust Series FRD-1 Rating Class To From Role of Ford Certs B/Watch Neg B Underlying collateral SATURNS Trust No. 2003-5 Rating Class To From Role of Ford Units B/Watch Neg B Underlying collateral Trust Certificates (TRUCs) Series 2002-1 Trust Rating Class To From Role of Ford A-1 B/Watch Neg B Underlying collateral Rating Lowered STEERS Credit-Backed Trust Series 2002-3 F Rating Class To From Role of Ford Motor Co. Capital Trust II Certs CCC- CCC Referenced obligation Headquartered in Dearborn, Michigan, Ford Motor Company -- http://www.ford.com/-- manufactures and distributes automobiles in 200 markets across six continents. With more than 324,000 employees worldwide, the company's core and affiliated automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive- related services include Ford Motor Credit Company and The Hertz Corporation. The Company has operations in Japan. FORD MOTOR: S&P Places B-Rated Sr. Unsec. Debt on Negative Watch ---------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'B' senior unsecured debt issue ratings on Ford Motor Co. on CreditWatch with negative implications. At the same time, S&P affirmed all other ratings on Ford, Ford Motor Credit Co., and related entities, except the rating on Ford Motor Co. Capital Trust II 6.5% cumulative convertible trust preferred securities, which was lowered to 'CCC-' from 'CCC.' The CreditWatch placement of the automaker's unsecured issues reflects the potential for unsecured creditors to be disadvantaged if Ford were to incur a material amount of secured borrowings. Ford announced that it is considering a range of measures to help it fund operating losses and restructuring plans while preserving cash and short-term VEBA trust balances at or near current levels of about US$20 billion. The Ford announcement said these measures could include the negotiation of secured credit facilities. If this occurs, "The rating on Ford's senior unsecured debt could be lowered by up to two notches below the corporate credit rating ('B')," said Standard & Poor's credit analyst Robert Schulz, "reflecting the unsecured debt's disadvantaged recovery prospects in the event of a bankruptcy by Ford." We will monitor ongoing developments and resolve the CreditWatch once Ford's financing plans have been finalized. The downgrade of Ford's Capital Trust II 6.5% cumulative convertible trust preferred securities reflects S&P's view that, in the wake of Ford's recent elimination of its common stock dividend, the risk of a payment deferral by Ford on its trust preferred securities is heightened, as the company seeks to conserve liquidity in light of ongoing negative cash flows. Ford itself has not indicated any intention to defer dividends on its trust preferred securities. S&P would view such a deferral as a default on the issue, under our rating definitions. Separately, the ratings on Ford and related entities are not immediately affected by the company's announcement that it will delay release of financial statements for the third quarter of 2006 and restate results dating back to 2001. The restatements are required because accounting for certain derivatives used to hedge interest rate risk at Ford Credit did not comply with Statement of Financial Accounting Standards No. 133 on derivatives and hedging activities. Actual cash flow or the risk-management economics of the derivative transactions are not affected by the restatements, and S&P does not expect the delay or restatements to adversely affect Ford's or Ford Credit's access to their unsecured bank credit lines. However, S&P would reassess its views if the accounting restatement process were to uncover additional issues or raise broader concerns about the strength of Ford's internal controls or risk-management practices, if additional restatements result in a prolonged financial reporting delay, or if liquidity were to be adversely affected. Ford's third-quarter financial results, excluding the effect of the restatements, showed further deterioration in automotive results, which S&P expects to continue through the end of 2006. North American operations reported a US$2.0 billion loss in the latest quarter, excluding US$3.7 billion in special items, compared with a loss of US$1.2 billion in the third quarter of 2005. Headquartered in Dearborn, Michigan, Ford Motor Company -- http://www.ford.com/-- manufactures and distributes automobiles in 200 markets across six continents. With more than 324,000 employees worldwide, the company's core and affiliated automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive- related services include Ford Motor Credit Company and The Hertz Corporation. The Company has operations in Japan. HOUGHTON INT'L: 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. Chemicals and Allied Products sector, the rating agency confirmed its B2 Corporate Family Rating for Houghton International Inc. Moody's also affirmed 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 ---------- ------- ------- ---------- US$90 million Gtd Sr Sec Term Loan due 2011 B2 LGD3 45% US$25 million Gtd Sr Sec Revolving Credit Facility due 2010 B2 LGD3 45% 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 Valley Forge, Pennsylvania, Houghton International Inc. -- http://www.houghtonintl.com/-- manufactures oils and specialty chemicals for lubrication in most of the big Midwestern industries: metalworking, automotive, and steel. Its products range from aluminum and steel rolling lubricants to rust preventatives to fire-resistant hydraulic fluids. Houghton maintains operations in Austria, Australia, Brazil, Chile, China, Denmark, Hong Kong, India, Japan, Korea, United Kingdom, Finland, France, Germany, Greece, Ireland, Italy, Malaysia, Poland, Norway, Romania, and Turkey. METHANEX CORP: 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. Chemicals and Allied Products sector, the rating agency confirmed its Ba1 Corporate Family Rating for Methanex Corp. Moody's also affirmed its probability-of-default ratings and assigned loss-given-default ratings to these two bond issues: Projected POD LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------- ---------- US$200 million 8.75% Sr Unsec Notes due 2012 Ba1 LGD4 56% US$150 million 6.00% Sr Unsec Notes due 2015 Ba1 LGD4 56% 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 Vancouver, British Columbia, Methanex Corp. -- http://www.methanex.com-- is a producer and marketer of methanol. The company has global locations in Japan, Belgium, Chile, China and the United Kingdom, among others. MITSUBISHI UFJ: Two Affiliates to Merge in April 2007 ----------------------------------------------------- Diamond Lease Company Limited and UFJ Central Leasing Co., Ltd., equity method affiliates of Mitsubishi UFJ Financial Group, Inc., disclosed that they have reached an agreement to merge on April 1, 2007, and have signed a letter of understanding to that effect. The combined sales of Diamond Lease and UFJ Central Leasing are over JPY1 trillion (consolidated sales in the year ended March 2006) and following the merger, the new company, Mitsubishi UFJ Lease & Finance Company Limited. (provisional name; Mitsubishi UFJ Lease & Finance) will be one of the leaders in the domestic leasing business. The new company will build on the strengths of both Diamond Lease and UFJ Central Leasing, combining their operating platforms, expertise and products to provide a range of high quality services that meet a wide spectrum of customers' leasing-related needs. Mitsubishi UFJ Lease & Finance will aim for sustained development as a leading leasing company through contributing to, and gaining the trust of society and its customers by swiftly and precisely responding to customer requirements. Through the creation of Mitsubishi UFJ Lease & Finance in the lease sector, MUFG will have made progress towards its stated aim of creating highly competitive companies with a strong presence in each of the main financial business domains, including banking, trust banking and securities, as well as investment trusts, credit cards, consumer finance and leasing. The Group will continue to steadily strengthen its structure with the planned merger of UFJ NICOS Co., Ltd. and DC Card Co., Ltd. to form a new credit card company (Mitsubishi UFJ NICOS Co., Ltd. (provisional name)), as well as the scheduled conversion of Mitsubishi UFJ Securities Co., Ltd. to a wholly- owned subsidiary, both scheduled for the Spring of next year. Through close cooperation between these group companies, MUFG aims to enhance the structure with which it can comprehensively and flexibly respond to the full range of customers' financial needs. Since its creation, MUFG has aimed to be number one in terms of service, reliability and global coverage. In the future, through the realization of integration benefits and the acceleration of growth strategies, MUFG aims to become a premier, comprehensive, global financial group. About Mitsubishi UFJ Trust and Banking Corp. Mitsubishi UFJ Trust and Banking Corp. -- http://www.tr.mufg.jp/english/-- is one of Japan's leading asset-management companies with JPY28 trillion in managed assets, Mitsubishi UFJ Trust and Banking meets the needs of international investors with a variety of creative investment products. Fitch Ratings upgraded Mitsubishi UFJ Trust and Banking's individual rating to C from C/D on January 1, 2006. SOLO CUP: Ends Review of Accounting Issues & Restates Financials ---------------------------------------------------------------- Solo Cup Company has completed its review of accounting issues and, based on that review, has restated some of its previously issued consolidated financial statements. The company filed with the United States Securities and Exchange Commission on Oct. 16, 2006, two restated financials: -- for the year ended Jan. 1, 2006, and -- for the first quarter ended April 2, 2006. The company has also filed its Form 10-Q for the second quarter ended July 2, 2006, with the SEC, 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. The company's second-quarter results included: -- net sales of US$670.3 million, an increase of US$23.4 million, or 3.6%, from the prior-year quarter, as restated; -- gross profit of US$92.0 million, up 12% from the prior- year 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% of our attention on running the company and building value for our customers, other business partners, investors and employees," Robert M. Korzenski, chief executive officer, said. "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. Full-text copies of the financial statements are available for free at: For the year ended Jan. 1, 2006 http://ResearchArchives.com/t/s?13cc For the first quarter ended April 2, 2006 http://ResearchArchives.com/t/s?13cb For the second quarter ended July 2, 2006 http://ResearchArchives.com/t/s?13cd 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: Moody's Reviewing Ratings & May Downgrade --------------------------------------------------- Moody's Investors Service is continuing the Review for Possible Downgrade of Solo Cup Co. first initiated on Aug. 16, 2006, and reiterated on Sept. 15, 2006. Although Solo Cup has met its obligation to file financial statements and has completed its previously announced review of accounting issues, Moody's continues to have concerns regarding liquidity and ongoing business strategy. Moody's will continue to assess developments, specifically adequacy of any revisions to financial covenants and prospective financial strategy and performance. Moody's notes that Solo Cup continues to face a challenging business environment and that there was no free cash flow for the fiscal second quarter (i.e. deficit of US$66 million), well short of Moody's expectations. Total debt to EBITDA at the end of the quarter was about 7.8 times after Moody's standard adjustments and about 7.0 times unadjusted. EBIT interest coverage was in the area of 0.6 times. Moody's expects to conclude the review by the end of January 2007. These ratings remain under Review for Possible Downgrade: -- US$150 million senior secured revolving credit facility maturing Feb. 27, 2010, B2; -- US$635 million senior secured term loan B due Feb. 27, 2011, B2; -- US$80 million senior secured second lien term loan due Feb. 27, 2012, Caa1; and -- US$325 million 8.5% subordinated notes due Feb. 15, 2014, Caa2. 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. SOLO CUP: S&P Cuts Corp. Credit Rating to CCC+ & Removes Watch -------------------------------------------------------------- Standard & Poor's Ratings Services lowered all its ratings on Solo Cup Co. by two notches, including its corporate credit rating to 'CCC+', and removed them from CreditWatch where they had been placed with negative implications on Aug. 18, 2006. The outlook is negative. "The downgrade was prompted by significantly weaker-than- expected earnings, cash flow, and liquidity as well as concerns about the company's ability to absorb additional raw material cost volatility and to obtain further financial covenant relief or restructure its debt," said Standard & Poor's credit analyst Cynthia Werneth. "Based on these factors, we now believe that meaningful operating and capital structure improvements will have to be achieved to reduce the risk of a default within the next year." Although detailed information on third-quarter performance is not yet available, on Oct. 16, 2006, Solo's liquidity was substantially unchanged from June 30, 2006, with cash and unused bank line availability totaling only US$59 million. Liquidity is unexpectedly low for this time of year, particularly given that the company obtained US$80 million in new second-lien debt in March 2006. This leads S&P to conclude that the company generated little if any operating cash flow in the third quarter, which is usually a seasonally strong period, after having used about US$100 million of cash during the first half of the year. Because of its limited liquidity, S&P is concerned about Solo's ability to continue to shoulder its heavy debt burden and to absorb any future raw material cost increases, any slowdown in demand, or other adverse developments. Also, the company faces higher interest margin on its bank credit facility in conjunction with a waiver of financial covenants through year end and will incur additional costs for an independent review of its supply chain. Solo may also face near-term refinancing risk if it requires and is unable to obtain financial covenant relief after expiration of the current waiver. S&P is are particularly concerned in view of Solo's very weak financial profile, its repeated requests for bank loan waivers and amendments during the past year, and its recent addition of a tranche of second-lien debt. The company is very highly leveraged. As of June 30, 2006, total debt, adjusted to include about US$200 million of capitalized operating leases and unfunded postretirement obligations on a tax-effected basis, was nearly US$1.4 billion. 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. TIMKEN CO: To Exit U.K. Seamless Steel Tube Manufacturing --------------------------------------------------------- The Timken Company disclosed its intention to exit its European seamless steel tube manufacturing operations located in Desford, United Kingdom, as part of its strategy to manage its business portfolio to improve performance. Timken will begin consultations with representatives of the 400 associates located at the Desford facility to explore alternative solutions to closure. "The proposed action is part of the company's strategy to focus on lines of business that produce differentiated products while driving profitable growth," said Salvatore J. Miraglia, Jr., president of Timken's Steel Group. "Exiting this business would further advance the focus of the Steel Group on differentiated products that deliver value to both customers and shareholders." The Desford facility generated sales of approximately US$85 million to US$95 million in recent years but has not been profitable. It manufactures seamless steel tube for machining and mechanical applications, primarily serving the bearing industry in Europe. In conjunction with the proposed exit of the business, Timken would intend to sell some portion of the plant's assets and secure a reliable alternative source of steel tube for its European bearing operations. 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, among others, Japan, Argentina, Australia, Belgium, Canada, China, France, Germany, Hungary, India, Italy, Korea, 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. UNICO CORP: Files For Bankruptcy with JPY96.7 Billion Debt ---------------------------------------------------------- Unico Corporation has filed for bankruptcy protection under the Corporate Rehabilitation Law with the Tokyo District Court after it was unable to pay JPY96.7 billion (US$811 million) in debts to its lenders, Kyodo News International reports, citing a statement by the company. According to Bloomberg News, Unico Corp., on Sept. 22, 2006, admitted that it falsified earnings reports in the past years, and that its liabilities had exceeded its assets in 2004 and 2005. The company became financially overextended when it corrected its inappropriate account processing after its auditing firm notified it, Kyodo News relates. Hoovers notes that Unico had made an announcement in August and corrected its earnings going as far back as December 2004, subsequently becoming insolvent. Press reports note that the Jasdaq Securities Exchange will delist the company on November 26 after transferring it to the liquidation post. Bloomberg notes that Unico shares have fallen 89% this year. Headquartered in Hokkaido, Japan, The Unico Corporation -- http://www.unico-corp.co.jp/-- is a Japanese machinery leasing company. The Company's principal activity is the provision of installment sales credits, leasing/rental and loans. The operations are carried out through the following three divisions: Installment sales, Leasing, Business loans and other. The Installment sales division deals with sales and installment sales of construction machinery, environment-related equipment and temporary houses/toilets. The Leasing division operates and provides financial lease of construction machinery, temporary construction equipment/materials, temporary houses/toilets and transportation equipment. The Other division deals with construction machinery repairs. YOKOGAWA ELECTRIC: Posts JPY1.72-Bil Net Loss for June Quarter -------------------------------------------------------------- Yokogawa Electric Corporation disclosed its financial results for the first quarter of the fiscal year ending March 31, 2007. The company's net loss for the quarter ended June 30, 2006, was JPY1.722 billion, compared with the JPY5.679-billion net loss recorded for the quarter ended June 30, 2006. For the 2006-2007 first quarter, the company reported net sales of JPY69.592 billion, compared with the JPY70.942 billion in net sales for the 2005-2006 first quarter. As of June 30, 2006, the company's balance sheet reflected total current assets of JPY226.113 billion available to pay total current liabilities of JPY109.210 billion coming due within the next 12 months. These figures are slightly higher compared with the JPY216.663 billion total current assets and JPY105.647 billion total current liabilities as of June 30, 2005. Yokogawa Electric's balance sheet also showed total assets of JPY408.024 billion and total liabilities of JPY182.728 billion, resulting in total shareholders' equity of JPY209.601 billion. Yokogawa Electric Corporation's financial report for the quarter ended June 30, 2006, is available for free at: http://www.yokogawa.com/pr/pdf/pr-ir-financial-2006-1q-en-00.pdf 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 a BB+ on both its long-term local and foreign issuer credit rating. ========= K O R E A ========= HANAROTELECOM INC: Third Qtr. Earnings Conference Set on Nov. 4 --------------------------------------------------------------- Hanarotelecom Inc. will hold its 2006 Third Quarter Earnings Conference on November 8, 2006, the company says in a regulatory filing with the United States Securities and Exchange Commission. Other details of the Earnings Conference are: Venue: Conference room of hanarotelecom's head office at 17-7 Yeouido-dong, Youngdeungpo-gu, Seoul 150-874 Format: Conference Call Time: 16:00 (Korean time) The conference will include a Q&A portion and provide Korean to English interpretation. About hanarotelecom hanarotelecom Inc. -- http://www.hanaro.com/-- is the second largest player in the Korean local telephone market. It provides high-speed Internet services in Korea. It provides high-speed Internet services in Korea. In June 2001, the company integrated broadband Internet access services which included ADSL, Hybrid Fiber Coaxial cables and Broadband Wireless Local Loop into a single brand called HanaFOS. hanarotelecom offers VoIP services to its broadband business customers as a bundled service and also as a stand alone service. * * * Moody's Investor Service has given hanarotelecom's long-term corporate family and senior unsecured debt 'Ba2' ratings. Standard and Poor's gave both hanarotelecom's long-term foreign issuer credit and long-term local foreign issuer credit 'BB' ratings. HANAROTELECOM INC: Taps Alcatel to Upgrade Infrastructure --------------------------------------------------------- hanarotelecom, Inc., upgraded its infrastructure using Alcatel's optical solution. The solution enables hanarotelecom to serve increased broadband service requirements in the most reliable way and with the highest operational simplicity, Alcatel said in a press release. With the optical aggregation and multi-service transport offered by the Alcatel solution, Korean end-users can efficiently access Ethernet-based applications, like virtual private networks and multimedia content including video, music and online games, the release stated. According to Alcatel, its optical solution could minimize hanarotelecom's operational expenses because different services could be bundled to achieve maximum efficiency in their delivery. "Customer satisfaction is the key driver for [hanarotelecom] in constantly broadening our offering to deliver higher value to end-users with guaranteed quality," hanarotelecom manager Kang Min Lee said. "Alcatel's cutting-edge and field-proven optical technology enables us to provide the scalability required in our network to cost-effectively address our fast growing service demands." About hanarotelecom hanarotelecom Inc. -- http://www.hanaro.com/-- is the second largest player in the Korean local telephone market. It provides high-speed Internet services in Korea. It provides high-speed Internet services in Korea. In June 2001, the company integrated broadband Internet access services which included ADSL, Hybrid Fiber Coaxial cables and Broadband Wireless Local Loop into a single brand called HanaFOS. hanarotelecom offers VoIP services to its broadband business customers as a bundled service and also as a stand alone service. * * * Moody's Investor Service has given hanarotelecom's long-term corporate family and senior unsecured debt 'Ba2' ratings. Standard and Poor's gave both hanarotelecom's long-term foreign issuer credit and long-term local foreign issuer credit 'BB' ratings. HYNIX SEMICONDUCTOR: Posts KRW1.97-Tril. Consolidated Revenues -------------------------------------------------------------- Hynix Semiconductor Inc. released the earnings results for its third quarter 2006, ended September 30, 2006. The Company recorded the consolidated revenues of KRW1.97 trillion which is an 18% increase compared to the previous quarter's KRW1.67 trillion, and a 23% increase from KRW1.6 trillion in the same period last year. During the third quarter, a favorable market condition continued for DRAM. Demand was especially strong from PCs as more Vista- ready PCs are sold, while supply was tight, due to technology migration issues at some suppliers. Meanwhile, NAND flash market showed signs of improvements from August on the back of the launch of new MP3 players and increasing densities for flash cards and USBs. Under such environment, the Company's weighted average selling price for DRAM in the third quarter increased by 9% sequentially, and bit growth increased by 14% based on the smooth ramp up of 80nm technology and accelerated volume production of 8" fab in Wuxi, China. For NAND flash, average selling price fell by 24% sequentially, and bit growth increased 46% quarter-on-quarter, attributable to the expansion of 70nm technology and MLC products. The Company recorded operating profit of KRW453 billion in the third quarter, a 17% increase from previous quarter's KRW387 billion which resulted in the operating margin of 23%, same as previous quarter. As a result, the Company's EBITDA in the third quarter recorded KRW833 billion, with EBITDA margin of 42%, which is an increase by 12% from KRW742 billion in the previous quarter. Net income for the third quarter of 2006 increased by 17% to KRW390 billion from KRW334 billion in the previous quarter. Despite of the revenue increase of 18% sequentially in the third quarter, the Company's profits did not improve as much, mainly due to the rapid ramp-up of the China fabs, which incurred significant initial ramp-up cost, and thus had negative impact on the Company's margins. Nevertheless, due to the successful ramp-up of these fabs, the Company's overseas production increased significantly, which minimized the impact of the countervailing duties that are imposed in the US, Europe and Japan, and at the same time, enabled the Company to serve the customers better in those areas. In the third quarter, Hynix-ST Semiconductor Ltd, a joint venture of Hynix and ST Micro for manufacturing of memory chips, signed a syndication loan of US$750 million. The Company also raised US$471 million through issuance of zero coupon convertible bonds due 2011. As a result of these financing activities, cash and short-term financial instruments at the end of the third quarter recorded KRW1.72 trillion, which is an increase by KRW361 billion from previous quarter's KRW1.36 trillion. Meanwhile, debt level at the end of the quarter also increased by KRW825 billion, from KRW1.85 trillion at the end of previous quarter to KRW2.68 trillion at the end of third quarter of 2006, bringing debt to equity ratio and net debt to equity ratio to 34% and 12%, respectively. As a supplement to the consolidated financial results, non- consolidated sales in the third quarter recorded KRW1.82 trillion, which is a 16% increase from previous quarter. Operating profits declined by 10% quarter-on-quarter to KRW292 billion, resulting 16% of operating profit margin. Such a big difference in the revenues and the operating profits between the consolidated and the non-consolidated was mainly due to the deviation of the market price and the internal transfer price. Nevertheless, the Company's net profit recorded KRW384 billion with 21% of net profit margin, which is same as previous quarter, due to gain on valuation of overseas affiliates using the equity method and other non-operating items. * * * Summarized Financial Statements of Hynix Semiconductor is available for free at http://ResearchArchives.com/t/s?140e About Hynix Semiconductor Headquartered in Ichon, South Korea, Hynix Semiconductor Inc. -- http://www.hynix.com/-- is a semiconductor manufacturer. Through a merger with LG Semiconductor in 1999, Hynix Semiconductor now has the world's largest dynamic random access memory chip production capacity as well as the industry's best technical development capacity by fully exploiting synergies resulting from the historical integration of both companies. Standard & Poor's Ratings Services gave Hynix, and its U.S. subsidiary, Hynix Semiconductor Manufacturing America Inc., a 'B+' long-term corporate credit rating. KOREA EXPRESS: Kumho-Asiana Wants to Take the Reins --------------------------------------------------- Kumho Asiana Group is interested in taking the reins of Korea Express Co., Bloomberg News reports citing a statement by the Group's chairman Park Sam Koo. Mr. Park believes Korea Express would complement Kumho-Asiana's operations with the company's well-established business in the delivery industry. "I think around 30 to 35 percent stake will be enough to secure management control," The Korea Herald quotes Mr. Park as saying. "We also plan to team up with strategic and financial investors." Kumho Asiana currently holds a 13.47% stake in Korea Express. Other entities reportedly interested for a controlling stake in Korea Express include the logistic firm, STX Group, and food- processing company, CJ Corp. About Korea Express Headquartered in Seoul, Korea Express Co., Ltd. -- http://www.korex.co.kr/-- provides land and marine transportation, and logistics services. The Company also operates stevedoring, distribution, and warehousing businesses that serve domestic and international customer needs. Korea Express transports a variety of products, ranging from consumer goods to machinery and turbines. Korea Express also operates Internet home shopping business. In 2005, Korea Express President Lee Kook-Dong signified that the Company might be put up for sale after it completes a water pipeline project in Libya in the first half of 2006. The Company agreed in December 2005 with the Libyan Government to finish the Great Man-Made River project, the largest engineering project in the world cited by the United Nations, by the end of June 2006. Mr. Lee is tasked with reviving the Company, which has been under court receivership since June 2001 after it could not service a KRW1.5-trillion debt, including KRW919 billion owed by then-parent Dong-Ah Construction Industrial Co. Mr. Lee will decide with a Seoul court about when to sell the Company, which has a market value of US$601 million. In the Company's Web site, Mr. Lee said that Korea Express will strive to end court receivership and improve its liquidity, maximize sales profit through strengthening of cooperation between management and labor, and seek continuous development. LG TELECOM: Net Profit for 3rd Quarter 2006 Rose 150% from 2005 --------------------------------------------------------------- LG Telecom Ltd.'s net profit for the quarter ended Sept. 30, 2006, sharply rose to KRW223.5 billion -- a 150% increase from the KRW86.7 billion gained for the corresponding period last year. The huge increase in net profit was partly due to income tax gains of KRW125.5 billion for the September 2006 quarter. LG Telecom earned gross revenues of KRW987.1 billion for the third quarter of 2006, a 12% increase from KRW883.9 billion earned for the quarter ended Sept. 30, 2005. With the increase in revenues came the rise in operating costs of about 14%. Expenses for operations totaled KRW888.5 billion for the September 2006 quarter, compared to the KRW782.4 billion incurred last year. Accordingly, operating profit for the third quarter of 2006 dropped to KRW98.6 billion from the KRW101.5 billion posted for the corresponding period last year. About LG Telecom Headquartered in Kangnam-gu, Seoul, South Korea, LG Telecom Ltd. -- http://www.lgtelecom.com/-- is a telecommunications and mobile phone operator controlled by the LG Group, one of the country's largest chaebol. It is Korea's smallest wireless operator. LG Telecom became one of the first companies to launch a commercial 3G service using PCS technology. In 1997, this was followed up by launching the second PCS network, offering greatly increased data transmission speeds. LG Telecom also offers a variety of internet services. BankOn is one of the most popular mobile banking services in South Korea and Musicon is a popular instant messenger. Moody's Investor Service gave LG Telecom a 'Ba2' Issuer Rating, a 'Ba2' Long-Term Corporate Family Rating and a 'Ba2' Senior Unsecured Rating. Standard & Poor's Ratings Services gave LG Telecom 'BB+' Long- Term Foreign Issuer Credit and Long-Term Local Issuer Credit Ratings. Fitch Ratings gave the Company 'BB' Long-Term Foreign Issuer Default and Foreign Currency Long-Term Default Ratings. QUANTUM CORP: Moody's Assigns Loss-Given-Default Ratings -------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. Technology Hardware sector this week, the rating agency confirmed its B3 Corporate Family Rating for Quantum Corp. Moody's also revised and held its probability-of-default ratings and assigned loss-given-default ratings on these two loans and a bond issue: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$150 million Sr. Sec. Revolver due 2009 B2 Ba3 LGD2 24% US$225 million Sr. Sec. First Lien Facility due 2012 B2 Ba3 LGD2 24% US$160 million Subordinated convertible notes due 2010 Caa2 Caa2 LGD6 91% 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 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%). Headquatered in San Jose, California, Quantum Corp. -- http://www.quantum.com/-- is a global leader in storage, delivers highly reliable backup, recovery and archive solutions that meet demanding requirements for data integrity and availability with superior price/performance and comprehensive service and support. Quantum offers customers of all sizes an unparalleled range of solutions, from leading tape drive and media technologies, autoloaders and libraries to disk-based backup systems. In Europe, the company maintains operations in Denmark, Czech Republic, Romania, Portugal, France, Germany, and the United Kingdom. ===================== N E W Z E A L A N D ===================== AIR NEW ZEALAND: Changes Pacific Network Schedules for 2007 ----------------------------------------------------------- Air New Zealand will introduce several changes to its Pacific network next year after a review of the airline's non-profitable routes. Effective April 2, 2007, Air New Zealand will suspend Rarotonga- Papeete-Los Angeles services currently operated by the airline three times per week. Instead, Air New Zealand will code share with Air Tahiti Nui on four of its daily Papeete-Los Angeles services maintaining connections to/from London. A weekly non-stop service between Rarotonga and Los Angeles will be reinstated by Air New Zealand to retain the link between the Cook Islands and North America. This will be extended to a twice weekly service during the peak travel months of April and July 2007 and potentially the December 2007 to February 2008 period. A four times weekly non-stop service between Auckland and Papeete will be provided jointly by Air New Zealand and Air Tahiti Nui under a code share arrangement. Regular services between Auckland and Rarotonga will continue as scheduled with no significant change to capacity. Group General Manager Short Haul Airlines, Norm Thompson says the decision to suspend the services was difficult given the historic links Air New Zealand has with the Pacific and the importance placed on tourism by the Pacific Island economies. "Air New Zealand has been flying the Coral Route for over fifty years and acknowledges in particular the importance of visitors from the Northern Hemisphere to both French Polynesia and the Cook Islands. "However, we cannot justify retaining our current level of service through Papeete and Rarotonga from Los Angeles. The high costs and low yields make this route unsustainable so we will suspend these flights as from the end of March next year," Mr. Thompson says. "We will continue to work closely with the Governments of both country's and their respective tourism industry representatives to monitor demand on the routes and would certainly consider adding capacity or reinstating services if sustainable," Mr. Thompson notes. Air New Zealand's new code share arrangement with Air Tahiti Nui, which is subject to approval by the respective governments, will offer the people of New Zealand and French Polynesia a better weekly spread of non-stop services between the two destinations. Air Tahiti Nui Chief Executive, Eric Pommier says "we look forward to working with Air New Zealand in this new code-share arrangement that will benefit both companies as well as our respective countries. This new cooperation will provide a better distribution of services between New Zealand and French Polynesia and afford convenient and improved frequencies to all of our customers." Air New Zealand's services between Nadi and Los Angeles will now operate three times a week. The other four days will be operated as a code share with Air Pacific subject to government approval. Under this arrangement, a daily schedule will be provided between Fiji and Los Angeles with connections to Air New Zealand's services to/from London which will greatly enhance northern hemisphere tourism flows into the Pacific. The Pacific schedule changes as from April 2, 2007 are: * Rarotonga-Papeete-Los Angeles: three times weekly return service suspended; * Auckland-Papeete: four return services per week - Air NZ (two) and Air Tahiti Nui (two) with reciprocal code-share on all services; * Papeete-Los Angeles: four times weekly return service - operated by Air Tahiti Nui with Air NZ code on these services; * Rarotonga-Los Angeles: weekly return service - Air NZ. Services operated twice weekly during peak travel months, as Outlined; and * Nadi-Los Angeles: new days of operation for Air New Zealand, Monday, Wednesday and Friday - with Air New Zealand code-share on Air Pacific operated flights on this route. About Air New Zealand Based in Auckland, New Zealand, Air New Zealand is the country's flag air carrier, with domestic and international passenger and freight operations, and an aviation engineering business. As reported in the Troubled Company Reporter - Asia Pacific on September 2, 2005, Moody's Investors Service affirmed its Ba1 issuer rating on Air New Zealand Limited after the airline announced its annual results for FY2005. Air NZ's rating reflected its dominant position in the New Zealand domestic market, with around 80% market share, and the profitability of domestic operations following their restructuring to a low-cost network model. Also supporting Air NZ's rating was its solid liquidity position, with cash balances of NZ$1.071 billion held as at June 30, 2005. However, while Air NZ has a solid position in New Zealand and other parts of the international network are performing well, intense competition on trans-Tasman routes has resulted in it being unprofitable for Air NZ. International competition also limits Air NZ's ability to expand. Its management is also aware of the airline's vulnerability to external shocks and the actions of key competitors. ALL VINES: Faces Liquidation Proceedings ---------------------------------------- The High Court of Blenheim will hear a liquidation petition against All Vines Marlborough Ltd on November 22, 2006, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition with the Court on September 4, 2006. The Solicitor for the Petitioner can be reached at: Julia Dykema Inland Revenue Department Technical and Legal Support Group South Island Service Centre Ground Floor Reception, 518 Colombo Street (P.O. Box 1782), Christchurch 8140 New Zealand Telephone:(03) 968 0809 Facsimile:(03) 977 9853 B & S PATRICK: Court to Hear Liquidation Petition on November 2 --------------------------------------------------------------- A petition to liquidate B & S Patrick Ltd will be heard before the High Court of Auckland on November 2, 2006, at 10:00 a.m. Accident Compensation Corporation filed the petition on July 17, 2006. The Solicitor for the Petitioner can be reached at: Dianne S. Lester Maude & Miller Second Floor, McDonald's Building Cobham Court, P.O. Box 50-555 Porirua City New Zealand EXHILARATOR HOLDINGS: Creditors' Proofs of Claim Due on Nov. 21 --------------------------------------------------------------- On October 10, 2006, Geoff Falloon was appointed as liquidator to oversee the wind-up of Exhilarator Holdings Ltd. The Company's creditors are required to submit their proofs of claim to Mr. Falloon by November 21, 2006, to share in any distribution the Company will make. The Liquidator can be reached at: Geoff Falloon New Zealand Tax Limited P.O. Box 27, Nelson New Zealand Telephone:(03) 545 0545 or (027) 332 6759 GENEVA FINANCE: ASCB Upholds False Advertising Complaint -------------------------------------------------------- An advertisement for Geneva Finance debenture stock that highlighted a B+ Standard and Poor's credit rating has been found wanting by the Advertising Standards Complaints Board, New Zealand Press Association reports. The report relates that the board upheld a complaint that the advertisement would give consumers a false sense of security. The stock sounded good because of the B plus rating but was a junk bond, ShareChat News cites the complainant, as saying. According to the board, a majority of its members were of a view that the advertisement did not reach a high standard of social responsibility, NZPA relates. However, the board conceded that the advertisement did not suggest the rating was higher than it actually was. But the advertisement's use of the word "sound" in the headline would be likely to mislead the average consumer as to the nature of the product offered, ShareChat says. According to a minority of the board, the advertisement invited consumers to seek more detail, adding that the information presented was factual and the headline acceptable. ShareChat cites Geneva Finance arguing that its advertisement referred to the availability of a prospectus and investment statement which both had comprehensive sections on the rating. Its Web site also provided information on the rating and stated that further information was available from the S&P's Web site, Geneva Finance states. ShareChat notes that the Government has a regulation of non-bank financial institutions under review due to the collapse of three finance companies this year. About Geneva Finance Geneva Finance Limited -- http://www.genevafinance.co.nz/-- has 21 professionally branded retail finance branches throughout New Zealand to facilitate lending receivables collection and credit management -- mirroring the trading bank consumer retail distribution strategy while affording the company face-to-face contact with applicants and security evaluations. HEATHERDALE ORCHARDS: Creditors' Proofs of Debt Due on Nov. 16 -------------------------------------------------------------- On October 10, 2006, Francesco Pessione was appointed as liquidator of Heatherdale Orchards Ltd. Creditors are required to submit their proofs of debt to Mr. Pessione by November 16, 2006, or be excluded from sharing in any distribution the Company will make. Accordingly, creditors will hold a meeting on October 30, 2006, at 9:00 a.m. to: -- consider the liquidator's statement of affairs; -- confirm or otherwise the appointment of Francesco Pessione as liquidator; -- consider whether or not to appoint a liquidation committee. The Liquidator can be reached at: Francesco Pessione Richards Woodhouse Limited P.O. Box 98, Nelson New Zealand Telephone:(03) 548 2369 Facsimile:(03) 546 8836 Email: rw@richwoodhouse.co.nz LINE KING: Liquidation Petition Hearing Set on Oct. 30 ------------------------------------------------------ On August 31, 2006, the Commissioner of Inland Revenue filed before the High Court of Palmerston a liquidation petition against The Line King Ltd. The Court will hear the petition on October 30, 2006, at 10:00 a.m. The Solicitor for the Petitioner can be reached at: Kerri Ann Doherty 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 1045 Facsimile:(04) 890 0009 LUNAR INVESTMENTS: Court Appoints Joint Liquidators --------------------------------------------------- On September 25, 2006, the High Court of Christchurch ordered to liquidate Lunar Investments Ltd's operations and appointed Iain Andrew Nellies and Wayne John Deuchrass as joint and several liquidators. The Joint Liquidators can be reached at: Iain Andrew Nellies Wayne John Deuchrass c/o Insolvency Management Limited Level One, 148 Victoria Street (P.O. Box 13-401), Christchurch New Zealand PREFERG CONRACTOR: Commences Liquidation Process ------------------------------------------------ On October 13, 2006, shareholders of Preferg Contractor Ltd resolved to liquidate the company's business. In this regard, Iain Andrew Nellies and Paul William Gerrard Jenkins were appointed as joint and several liquidators. The Joint Liquidators can be reached at: Iain Andrew Nellies Paul William Gerrard Jenkins Insolvency Management Limited Level Three, Burns House 10 George Street (P.O Box 1058), Dunedin New Zealand PRESTIGE RV'S: Enters Liquidation Proceedings --------------------------------------------- On October 2, 2006, shareholders of Prestige RV's (NZ) Ltd resolved to liquidate the company's business and appointed Iain Andrew Nellies and Wayne John Deuchrass as joint and several liquidators. The Joint Liquidators can be reached at: Iain Andrew Nellies Wayne John Deuchrass Insolvency Management Limited Level One, 148 Victoria Street (P.O. Box 13-401), Christchurch New Zealand RAISIN GRAPES: Liquidation Petition Hearing Set on Nov. 22 ---------------------------------------------------------- On November 22, 2006 at 10:00 a.m., the High Court of Blenheim will hear a liquidation petition filed against Raisin Grapes Marlborough Ltd. The Commissioner of Inland Revenue filed the petition with the Court on September 4, 2006. The Solicitor for the Petitioner can be reached at: Julia Dykema Ground Floor Reception, 518 Colombo Street (P.O. Box 1782), Christchurch 8140 New Zealand Telephone:(03) 968 0809 Facsimile:(03) 977 9853 REACH INVESTMENTS: Liquidation Petition Hearing Set on Oct. 30 -------------------------------------------------------------- A liquidation petition filed against Reach Investments Corporation Ltd will be heard before the High Court of Christchurch on October 30, 2006, at 10:00 a.m. Taggart Earthmoving Ltd filed the petition on September 27, 2006. The Solicitor for the Petitioner can be reached at: T. W. Evatt White Fox and Jones Level Seven, ABN AMRO Craigs House 90 Armagh Street (P.O. Box 1353), Christchurch New Zealand Telephone:(03) 353 0650 Facsimile:(03) 353 0652 * New Zealand's Official Cash Rate Unchanged at 7.25% ----------------------------------------------------- The Official Cash Rate will remain unchanged at 7.25%. In a statement, the Reserve Bank of New Zealand states that there has been a significant improvement to the near-term inflation outlook, mainly as a result of the recent decline in oil prices. RBNZ expects lower fuel prices, together with the recent rebound in the exchange rate and Statistics New Zealand's reweighting of the CPI, to give an unusually low December quarter CPI increase. These are temporary factors, however, and, apart from the likely favorable impact on inflation expectations, they are not expected to impact materially on medium-term inflation, RBNZ notes. Indicators of medium-term inflation pressures remain significant. Overall GDP growth in the second quarter was consistent with RBNZ's September projections and the continued rebalancing of demand away from domestic spending towards exports. Continued strength in most of New Zealand's international markets and a return to a downward trending NZ dollar exchange rate should support this rebalancing. On the domestic side, however, the housing market remains resilient, supported by net inward migration and ongoing mortgage credit expansion at low interest margins. Further, we could see a pickup in household consumption in the third quarter as a result of the drop in petrol prices. On balance, inflation pressures appear to be abating gradually. But some indicators of resource pressures, like high capacity utilization and a tight labor market, continue to signal caution. Taking all of this into account, monetary policy pressure will need to be maintained for some time to bring inflation back sustainably within the 1%-3% target band, RBNZ says. In this regard, the policy outlook is little changed from RBNZ's September statement. The balance of inflation risks remains skewed to the upside. Further monetary policy tightening cannot be ruled out, and any easing of policy remains a considerable way off, RBNZ reveals. ===================== P H I L I P P I N E S ===================== GLOBE TELECOM: To Hold 3Q2006 Investors' Briefing on Nov. 8 ----------------------------------------------------------- Globe Telecom Inc.'s will hold an Investors' Briefing on Nov. 8, 2006, at 2:30 p.m. at the Makati Shangri-la, Manila A & B rooms. For the first part of the briefing, the management will present and discuss the financial and operational performance for the 3rd quarter of 2006. After which, a Q&A portion will commence wherein guests could raise their queries with the management. Participants are requested to confirm their availability by responding to: Luz Sanchez Tel. No. +632 7302963 E-mail: lssanchez@globetel.com.ph Wesa Elomina Tel. No. +632 7302152 E-mail: raelomina@globetel.com.ph An international teleconference facility will be made available on the day: Call-in Conference Tel. No.: +65 6668 7512 Conference Code : 701625 For those who are unable to attend, a recording of the briefing will be made available for playback two hours after briefing ends. This facility will be made available until Nov. 11, 2006. To listen to the recording, please dial +65 6668 7522. At the voice prompt, key in the six-digit reference no. 212006 and end with the # key. These materials will be posted on Globe's Web site http://www.globe.com.phon or before Nov. 8, 2006: (a) Press Release on financial and operating results for 3Q 2006; (b) 3Q 2006 SEC FORM 17Q - management's discussion and analysis of our financial and operating results for 3Q 2006; and (c) Investors' Briefing Presentation Materials NATIONAL POWER: Launches STAR 3 to Improve Effectivity ------------------------------------------------------ Seeking to build on the gains of the STAR Program during its first two years of implementation, the management of the Philippine National Power Corporation has formally launched STAR 3, a corporate-wide program aimed at improving the synergy, organizational health, and over-all effectiveness of National Power as a corporation. Vice President for Geothermal Generation & STAR 3 Committee Chairman Danilo S. Sedilla said the program is in line with National Power's "corporate quest for energy industry leadership" and its vision to be "a provider of choice for energy services" not only in the Philippines but in the entire Southeast Asian region. Where STAR 1 was designed to rekindle the pride of National Power's employees in themselves and in the Corporation as an institution, and STAR 2 was designed to motivate employees to give their best in the workplace, at home and in the community. STAR 3 outlines seven basic objectives: 1. The strengthening and upgrading of corporate policies, and the review of National Power's operational performance; 2. The upgrading of performance enhancement programs to reinvigorate the corporate organization; 3. The advancement of human resource development programs to mpower and motivate employees; 4. The enhancement of quality systems, programs and procedures for performance excellence; 5. The updating of the Management Information System to provide management with real time, accurate, and useful data; 6. Review and recalibration of the present citation and awards system; and 7. The identification, assessment, and pursuit of business opportunities that could serve as National Power's vehicle in launching itself in the global competitive market. To jumpstart the implementation of STAR 3, President Cyril C. Del Callar has created a 16-member committee chaired by VP Sedilla, with Vice President Gina Lourdes D. Valeros as Vice Chairman. Its members are: * Vice President Juan Carlos J. Guadarrama, * Vice President Lorenzo S. Marcelo, * Vice President Oscar C. Lorico; * Katambayan S. Celino, * Paquito F. Garcia, * Rudy F. Brioso, * Wilfredo B. Sinay, * Emmanuel A. Umali, * Alexander Japon, and * Atty. Melchor P. Redulme, and * Ms. Marilou O. Dela Cruz President Del Callar has also appointed Senior Vice Presidents Silvano C. Zanoria and Pio J. Benavidez as Senior Advisers to the Committee, and Ms. Elvira M. Sernal as the Committee Secretariat. About National Power Headquartered in Quezon City, Philippines, National Power Corporation -- http://www.napocor.gov.ph/-- is a state-owned utility that builds and operates nuclear, hydroelectric, thermal, and alternative power generating facilities. It works with independent producers under a build-operate-transfer program. With a generating capacity of more than 11,500 megawatts, Napocor sells electricity to distributors and industrial companies. To comply with the privatization bill approved by the Philippine Congress, the Company has begun selling off its generation assets to help pay for its estimated debt of PHP600 billion. It also separated its transmission operations into a new subsidiary, the National Transmission Corporation. * * * National Power first incurred losses in 1998 after the Asian financial crisis and expensive contract terms from independent power producers. The Company posted a PHP29.9 billion loss in 2004, after a net loss of PHP117 billion in 2003. The Government absorbed National Power's PHP200 billion debt, which was incurred when the government-owned-and-controlled corporation adopted international accounting standards, forcing the Company to report its foreign exchange losses. The Troubled Company Reporter - Asia Pacific reported on April 5, 2006, that for 2005, National Power posted a PHP16-million profit for the first time in seven years, on the Energy Regulation Commission's approval of a rate increase, the use of improved fuel mix and better fuel prices. NATIONAL POWER: ERC to Impose WESM Controls ------------------------------------------- The Energy Regulation Commission says it would impose the necessary controls on the Wholesale Electricity Spot Market if allegations would be proven that there was price manipulation during the market's third trading month, causing prices to suddenly spike. "If anticompetitive behavior is established and duly reported to the ERC, appropriate remedies such as directives to fix or control the price will be issued and the appropriate penalties imposed, after observance of the requirements of due process," ERC commissioner and officer-in-charge Alejandro Barin says. On October 26, 2006, the Troubled Company Reporter - Asia Pacific reported that National Power Corporation has clarified that recent changes in the electricity prices of power generators bidding in the WESM are just part of the dynamics that govern the relationships of market participants. The ERC is waiting for the WESM operator, Philippine Electricity Market Corp., to finish its investigation of its suspicions of price manipulation at the spot market from August 26, 2006, to September 25, 2006. "The ERC will evaluate and validate the PEMC's report, according to set procedures," Mr. Barin says, noting that contrary to criticisms, the ERC has never been remiss in its duties, particularly in ensuring that competition is fair and that no single entity benefits from market power. The operative regulations are the "Competition Rules and Complaint Procedures," which penalize abuse of market power or anticompetitive behavior in the WESM. About National Power Headquartered in Quezon City, Philippines, National Power Corporation -- http://www.napocor.gov.ph/-- is a state-owned utility that builds and operates nuclear, hydroelectric, thermal, and alternative power generating facilities. It works with independent producers under a build-operate-transfer program. With a generating capacity of more than 11,500 megawatts, Napocor sells electricity to distributors and industrial companies. To comply with the privatization bill approved by the Philippine Congress, the Company has begun selling off its generation assets to help pay for its estimated debt of PHP600 billion. It also separated its transmission operations into a new subsidiary, the National Transmission Corporation. * * * National Power first incurred losses in 1998 after the Asian financial crisis and expensive contract terms from independent power producers. The Company posted a PHP29.9 billion loss in 2004, after a net loss of PHP117 billion in 2003. The Government absorbed National Power's PHP200 billion debt, which was incurred when the government-owned-and-controlled corporation adopted international accounting standards, forcing the Company to report its foreign exchange losses. The Troubled Company Reporter - Asia Pacific reported on April 5, 2006, that for 2005, National Power posted a PHP16-million profit for the first time in seven years, on the Energy Regulation Commission's approval of a rate increase, the use of improved fuel mix and better fuel prices. * Philippines to Post Lower 2006 Budget Deficit, Treasurer Says --------------------------------------------------------------- The Philippines will post a full-year budget deficit that is lower than the target of PHP125 billion, given the government's tight spending and improved revenue collection, National Treasurer Omar Cruz says. This could help the government reduce its borrowings in 2007, Mr. Cruz notes. The government relies heavily on foreign and local borrowings to fund its budget deficit, which should not exceed PHP63 billion or 0.9% of projected gross domestic product in 2007. "One thing is clear and that is the fact that we will be ahead of our program," Mr. Cruz says. "We can not pick a specific number because that is less easy to predict but it's moot and academic that we will over-perform this year," Mr. Cruz adds. According to Mr. Cruz, the Development Budget Coordinating Committee was already in the process of finalizing the fiscal budget for 2007, which would ultimately determine the government's borrowing program. "The market will be shocked at the degree of reduction in our borrowing program next year," Mr. Cruz says. "We are not changing the bottom line, specifically keeping the deficit at PHP63 billion. But borrowing will go down." The Philippines swung to a budget deficit of PHP16.2 billion in September, after recording four monthly surpluses. The national government had a budget deficit of PHP50.4 billion for January to September, lower than the programmed nine-month deficit of PHP122 billion. The national government had surpluses in April, May, June, and August, bolstering hopes that the Philippines may record a deficit lower than the full-year target of PHP125 billion, which is equivalent to 2.1% of projected gross domestic product. It had a fiscal gap of PHP146.5 billion in 2006, which was 2.7% of GDP. * * * "Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured rating to the Republic of Philippines' proposed new bond issue that will mature in 2024, as well as the new debt under the series of 7.75% Global Bonds due in 2031. The government is offering these bonds in exchange for some of its existing debt. At the same time, Standard & Poor's also affirmed its 'BB-' ratings on the bonds that are eligible for exchange." ================= S I N G A P O R E ================= CKE RESTAURANTS: Good Performance Cues S&P's Positive Watch ----------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings on Carpinteria, California-based CKE Restaurants Inc., including the 'B+' corporate credit rating, on CreditWatch with positive implications. The '1' recovery rating on the company's secured bank loan is not on CreditWatch. "The action reflects the company's strengthening cash flow protection measures due to an improving operating performance and debt repayment," said Standard & Poor's credit analyst Diane Shand. Standard & Poor's will resolve the CreditWatch listing following a meeting with management to evaluate the company's business strategies and financial policies. CKE's profitability has improved over the past two-and-a-half after several years of weak results. The positive trends are due to management's focus on premium products, strategy of targeting male customers in the 18-35 age range, and increased operating efficiencies. Same-store sales at Carl's Jr. rose 5.2% in the first half of 2006, following gains of 2.2% in all of 2005, while Hardee's same-store sales increased 4.4%, after being flat in all of 2005. Operating margins for the 12 months ended Aug. 14, 2006, expanded to 16.9%, from 14.3%, primarily due to sales leverage and lower food costs. CKE has also substantially reduced debt over the past two-and-a- half years through the conversion of a portion of its convertible notes into common equity and repayment of debt. Total funded debt has declined to $183.6 million at Aug. 14, 2006, from $418.7 million at Jan. 26, 2004. Cash flow protection measures have strengthened as a result of better profitability and reduced debt. EBITDA coverage of interest increased to 3.7x in the 12 months ended Aug. 14, 2006, from 2.9x at the end of 2005, and total debt to EBITDA declined to 2.8x from 3.6x. Both measures are strong for the rating category. About CKE Restaurants Based in Carpinteria, Calif., CKE Restaurants, Inc. (NYSE: CKR) -- http://www.ckr.com/-- through its subsidiaries, franchisees and licensees, operates some of the most popular U.S. regional brands in quick-service and fast-casual dining, including the Carl's Jr.(R), Hardee's(R), La Salsa Fresh Mexican Grill(R) and Green Burrito(R) restaurant brands. The company operates 3,131 franchised, licensed or company-operated restaurants in 43 states and in 13 countries -- including Singapore. ISOFT GROUP: AIDB to Investigate Former Auditor RSM Robson ---------------------------------------------------------- The Accountancy Investigation and Discipline Board intends to investigate RSM Robson Rhodes LLP in relation to the firm's audit on iSOFT Group plc's financial statements for the years ended April 30, 2003, April 30, 2004, and April 30, 2005. The AIDB is also investigating the company's executive or non- executive directors, who are members of the accountancy bodies that support the AIDB, in the relevant periods. All current executive directors of iSOFT who are members of those accountancy bodies were appointed after the dates under investigation, as was the non-executive director who is currently chairman of the audit committee. The initial independent investigation into possible accounting irregularities conducted by the company's current auditors, Deloitte & Touche, in July 2006 did not uncover evidence that any of the current non-executive directors had any knowledge of any irregularities. The company believes that the AIDB investigation is likely to cover similar matters to the investigation by the FSA that is already underway and will of course give its cooperation to the investigation. About iSoft Headquartered in Manchester, United Kingdom, iSOFT Group plc -- http://www.isoftplc.com/-- supplies advanced medical software applications for the healthcare sector. Its products are used by more than 8,000 organizations in 27 countries for managing patient information and driving improvements in healthcare services. In international markets, the group has a strong presence in the Asia-Pacific, including Singapore and India. * * * An initial probe, conducted by Deloitte & Touche and Eversheds LLP, found evidence of accounting irregularities affecting the financial years ended April 30, 2004, and April 30, 2005. The group submitted the findings, which contained grounds for a more formal investigation, to the Financial Services Authority, a British regulator. According to the company, Deloitte was appointed as the group's auditor in July 2005 and was not therefore acting for the group during the period covered by the investigation. After the initial review, the board suspended Steve Graham, the group's commercial director, pending the outcome of the formal investigation. The investigation concerns several contracts where it would appear that revenues have been recognized earlier than they should have been in the financial years 2004 and 2005 in accordance with the accounting policy in force at that time. The irregularities uncovered to date do not appear to have affected the group's cash position. PETROLEO BRASILEIRO: May Abandon Operations in Bolivia ------------------------------------------------------ Petroleo Brasileiro SA, Brazil's state oil company, could abandon its operations in Bolivia if a deal with Yacimientos Petroliferos Fiscales Bolivianos, its Bolivian counterpart, is not reached, the Associated Press reports, citing the Brazilian President Luiz Inacio Lula da Silva's top adviser. Brazilian officials told AP that the country hopes to reach an accord with Bolivia over the exploration and production of Bolivian natural gas before the Oct. 28, 2006, deadline set by Bolivia. Silas Rondeau, the mines and energy minister of Brazil, told Agencia Estado that he expected to travel to Bolivia this weekend to complete an accord and is very hopeful about the talks with Bolivian officials. AP underscores that Marco Aurelio Garcia, a top aide to President Silva, said that if a deal is reached a new contract will be established. If there would be no agreement between Brazil and Bolivia, Petroleo Brasileiro will have to leave Bolivia and then it would be compensated by the Bolivian government or through decisions made by international authorities, Mr. Garcia told AP. Moreover, the TCR-AP reported on Oct. 26, 2006, that the Bolivian government has warned it will intervene in Petroleo Brasileiro SA's operations in the nation next week if no deal over new production contracts is reached before the Oct. 28, deadline. About Petroleo Brasileiro 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. PETROLEO BRASILEIRO: Paying BRL4.387B of Interest on Own Capital ---------------------------------------------------------------- Petroleo Brasileiro S.A. aka Petrobras's board of directors approved a BRL4.387 billion payment to shareholders in the form of interest on own capital. The amount, corresponding to a gross value of BRL1.00 per common and preferred shares, is being accrued in the company's financial statements on Sept. 30, 2006, and will be disbursed by Jan. 15, 2007, based on the shareholding position as of Oct. 31, 2006. If payment occurs after Dec. 31, 2006, interest based on the SELIC rate will be payable from Dec. 31, 2006, through the effective payment date. The shares will be negotiated ex- interest on capital from Nov. 1, 2006. This interest on capital will be offset against any remuneration payable at the close of the 2006 fiscal year and will be subject to income tax of 15% withheld at source except in the case of shareholders who are exempt. About Petroleo Brasileiro 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. PETROLEO BRASILEIRO: Posts Daily Oil Output of 1.9-Mil. Barrels --------------------------------------------------------------- Petroleo Brasileiro, the state-run oil company of Brazil, said in a press release that it has attained a new production record of 1.913 million barrels of oil per day, which is 30,000 barrels per day more than the 1.882 million barrels daily recorded in May. Dow Jones Newswires relates that the new record was obtained mainly due to maintenance on land oil fields as well as the start of production at three new oil wells at the Albacora Leste field in the Campos Basin. Petroleo Brasileiro told Dow Jones that with the new wells, the P-50 rig that pumps from the Albacora Leste field now produces about 150,000 barrels per day. Petroleo Brasileiro said that in the coming weeks, the P-50 likely will reach its full production capacity of 180,000 barrels per day, Dow Jones notes. Dow Jones underscores that if production boost were to be constant, Petroleo Brasileiro's output would finally surpass Brazil's estimated daily oil product consumption of about 1.85 million barrels per day. Petroleo Brasileiro expects its daily oil production in the country to be at 2 million barrels per day by the end of the year for the first time as two more programs will be implemented, Dow Jones says. Dow Jones emphasizes that Petroleo Brasileiro will likely begin production in November at its P-34 rig, which is expected to produce 60,000 barrels per day from the Jubarte field. Petroleo Brasileiro will launch in December production at the 100,000-barrel per day FPSO Cidade do Rio de Janeiro, which will pump from the Espardarte field, Dow Jones states. About Petroleo Brasileiro 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. PROGRESS MANUFACTURING: Proofs of Debt Due on November 20 --------------------------------------------------------- Progress Manufacturing (Holding) Pte Ltd, which was placed under members' voluntary 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 liquidator can be reached at: Ng Geok Mui c/o BDO Raffles 5 Shenton Way #07-01 UIC Building Singapore 068808 SEAGATE TECH: Reports US$2.8B Revenue for Quarter Ended Sept. 29 ---------------------------------------------------------------- Seagate Technology reported revenue of US$2.8 billion, GAAP net income of US$59 million, and diluted earnings per share of US$0.10 for the quarter ended Sept. 29, 2006. Included in the US$2.8 billion of revenue is approximately US$344 million from legacy Maxtor designed products. Net income and diluted earnings per share includes approximately US$82 million of charges directly associated with the Maxtor acquisition. Excluding acquisition related charges and a favorable adjustment to a pre-existing restructuring reserve of US$4 million, non-GAAP net income and diluted earnings per share were US$137 million and US$0.23. In the year-ago quarter, Seagate reported revenue of US$2.09 billion, GAAP net income of US$272 million and diluted earnings per share of US$0.54. "Seagate delivered another strong performance in the Sept. quarter, reflecting our leadership position in a marketplace characterized by continued healthy growth in demand for storage," said Bill Watkins, Seagate chief executive officer. "I'm pleased that we achieved the results we outlined for the quarter. Our integration of Maxtor continues ahead of schedule, allowing us to complete the customer transition to more cost- effective Seagate products during the December quarter." "During the quarter, we continued to see an aggressive pricing environment in the notebook and desktop markets, resulting from what we believe are competitors who seem intent on trying to capture market share without regard to profitability. I'm pleased, particularly in the face of this environment, with the revenue retention we have achieved, and we are confident in our ability to continue to reduce cost and improve profitability throughout the year. As the leading manufacturer in the disc drive industry, we are operating from a position of strength, from both a cost and product leadership perspective. Moving forward, while we remain committed to pricing discipline, we intend to maintain our current share position, and will manage our pricing strategy accordingly." The average selling price, on a blended basis, decreased approximately US$4.00 from the June quarter. In aggregate, price decreases on a "like for like" product basis during the September quarter were in excess of 6%, which was in line with the company's expectations at the beginning of the quarter. Business Outlook For fiscal year 2007, excluding acquisition related costs but including Maxtor's operating results, Seagate now expects US$11.4-11.8 billion in revenue and US$1.70-1.80 for Non-GAAP diluted earnings per share. Including approximately US$210 million of expected acquisition related costs and US$18 million of fees associated with the early redemption of the 8% notes, GAAP diluted earnings per share would be US$1.35-US$1.45. The company's adjusted revenue and earnings outlook for fiscal 2007 reflects a pricing environment in the desktop and notebook markets that became more aggressive at the end of the September quarter, thus impacting pricing for subsequent quarters. In the second half of its fiscal year, Seagate will benefit from new products, new market opportunities and the completion of the Maxtor integration. For the December quarter, Seagate expects to report revenue of US$2.8-3.0 billion, and diluted earnings per share of US$0.30- 0.34, excluding acquisition related costs but including Maxtor's operating results. Included in the company's outlook for the December quarter is an unfavorable impact to gross margin and earnings of approximately US$30 million of unplanned costs associated with legacy Maxtor drives. GAAP diluted earnings per share for the December quarter, including approximately US$60 million of expected acquisition related costs and US$18 million of fees associated with the early redemption of the 8% notes, would be US$0.17-0.21. Dividend and Stock Repurchase The board of directors has approved an increase in the quarterly dividend from US$0.08 to US$0.10 per share. The company has declared the quarterly dividend to be paid on or before Nov. 17, 2006, to all common shareholders of record as of Nov. 3, 2006. During the quarter ended Sept. 29, 2006, the company repurchased 6.7 million common shares worth approximately US$150 million. The company has approximately US$2.35 billion available under the current authorized stock repurchase program. About Seagate Technology Headquartered in Scotts Valley, California, Seagate Technology, -- http://www.seagate.com/-- designs, manufactures and markets rigid disc drives (disc drives or hard drives), which are used as the primary medium for storing electronic information in systems ranging from desktop and notebook computers, and consumer electronics devices to data centers delivering information over corporate networks and the Internet. Seagate Technology has R&D and product sites in: Silicon Valley, California; Pittsburgh, Pennsylvania; Longmont, Colorado; Bloomington and Shakopee, Minnesota; Springtown, Northern Ireland; and Singapore. Manufacturing and customer service sites are located in: California, Colorado, Minnesota, Oklahoma, Northern Ireland, China, Malaysia, Singapore and Thailand. * * * Moody's Investors Service has confirmed on July 17, 2006, the ratings of Seagate Technology HDD Holdings and upgraded the ratings of Maxtor Corp., now a wholly owned subsidiary of Seagate Technology US Holdings, following the completion of its acquisition on May 19, 2006, and subsequent guaranteeing of Maxtor's debt by Seagate. This concludes the review initiated by Moody's on Dec. 21, 2005. The review was prompted by the company's announcement of its intention to acquire Maxtor in an all-stock transaction for approximately US$1.9 billion. The ratings outlook is stable. Moody's confirmed these ratings: -- Corporate Family Rating: Ba1; and -- SGL Rating of 1. Moody's upgraded these ratings: Seagate Technology HDD Holdings: -- US$400 million senior notes 8%, due 2009: to Ba1 SEAGATE TECHNOLOGY: Moody's Assigns Loss-Given-Default Ratings -------------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. Technology Hardware sector, the rating agency confirmed its Ba1 Corporate Family Rating for Seagate Technology. Moody's also confirmed its probability-of-default ratings and assigned loss-given-default ratings on these bond issues: Projected POD LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------- ---------- US$300 million Senior Notes due 2009 Ba1 LGD4 56% US$600 million Senior Notes due 2011 Ba1 LGD4 56% US$600 million Senior Notes due 2016 Ba1 LGD4 56% US$230 million 6.8% Convertible Senior Notes due 2010 Ba1 LGD4 56% US$60 million 5.75% Convertible Subordinated Debentures due 2012 Ba2 LGD6 96% Moody's explains that current long-term credit ratings are opinions about expected credit loss that incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated\ debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). About Seagate Technology Headquartered in Scotts Valley, California, Seagate Technology, -- http://www.seagate.com/-- designs, manufactures and markets rigid disc drives (disc drives or hard drives), which are used as the primary medium for storing electronic information in systems ranging from desktop and notebook computers, and consumer electronics devices to data centers delivering information over corporate networks and the Internet. Seagate Technology has R&D and product sites in: Silicon Valley, California; Pittsburgh, Pennsylvania; Longmont, Colorado; Bloomington and Shakopee, Minnesota; Springtown, Northern Ireland; and Singapore. Manufacturing and customer service sites are located in: California, Colorado, Minnesota, Oklahoma, Northern Ireland, China, Malaysia, Singapore and Thailand. TAT WEI: High Court to Hear Wind-Up Petition on November 3 ---------------------------------------------------------- Standard Chartered Bank filed an application to wind up Tat Wei Printing Packaging Pte Ltd on October 12, 2006. The wind-up petition will be heard before the High Court of Singapore on November 3, 2006, at 10:00 a.m. Standard Chartered's solicitors can be reached at: Rajah & Tann 4 Battery Road #15-01 Bank of China Building Singapore 049908 VALEANT PHARMA: Financial Filing Delay Cues S&P's Negative Watch ---------------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings on Costa Mesa, California-based Valeant Pharmaceuticals International, including Valeant's 'BB-' corporate credit rating, on CreditWatch with negative implications. "The rating actions follow the specialty pharmaceutical company's announcement that it does not expect to file its Form 10-Q for third-quarter 2006 by the filing date," said Standard & Poor's credit analyst Arthur Wong. "The delay is attributed to the company's need to restate its financials, possibly as far back as 1997, due to errors in accounting for stock option grants." A Valeant board of directors-appointed special committee is still conducting its review, and the magnitude of the restatements has not yet been determined. Valeant was already subject to an informal SEC probe regarding the issue. The failure to file its Form 10-Q on time would constitute a default of reporting requirements under its convertible and high-yield note agreements that if not cured in 60 days could result in an acceleration of the amounts outstanding under those notes. "Standard & Poor's will monitor the cost and ability of Valeant to cope with this situation before resolving the CreditWatch listing," Mr. Wong said. About Valeant Pharmaceuticals Headquartered in Costa Mesa, California, Valeant Pharmaceuticals International -- http://www.valeant.com-- is a global specialty pharmaceutical company with US$823 million of 2005 revenues. It has offices in Singapore and Taiwan. * * * 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. pharmaceutical sector last week, the rating agency confirmed its B1 Corporate Family Rating for Valeant Pharmaceuticals International, and its Ba3 rating on the company's US$300 million issue of 7% senior unsecured notes due 2011. Additionally, Moody's assigned an LGD3 rating to those bonds, suggesting noteholders will experience a 39% loss in the event of a default. Valeant Pharmaceuticals International's senior unsecured debt and corporate family ratings carry Moody's Ba3 and Ba1 ratings respectively, while its long-term foreign and local issuer credits carry Standard & Poor's BB- ratings. VALEANT PHARMA: Says Filing of 3rd Qtr. Results Will be Delayed --------------------------------------------------------------- Valeant Pharmaceuticals International disclosed in a regulatory filing with the Securities and Exchange Commission that the company will be unable to file quarterly report on form 10-Q for the quarter ended Sept. 30, 2006, as well as complete the restatement of previously issued financial statements until the special committee of independent directors of the company's board of directors has completed its review of the company's option grant practices and audit of restated periods. Bary G. Bailey, Valeant Pharmaceuticals' executive vice president and chief financial officer, said that the company's failure to remain current in its periodic reporting obligations could have material adverse consequences which could include compliance issues under the information reporting requirements of the company's outstanding convertible and high-yield notes, which if not timely cured could result in the acceleration of the outstanding amounts due under those notes. SEC Inquiry The company previously received a request from the SEC for data on its stock option granting practices since Jan. 1, 2000, as part of an informal inquiry. Accordingly, the company initiated a review of its option grants, which covers option grants by the company since its initial public offering in 1982. The review is being conducted under the direction of the Special Committee with the assistance of outside legal counsel. Stock Option Grant Review Preliminary Results On Oct. 20, 2006, after receiving from the Special Committee a report on certain preliminary results of its review, the Board of Directors concluded that as a result of errors in the company's accounting for stock options, financial statements for certain prior periods will need to be restated. The Special Committee reported that it has determined, with respect to broad-based grants in 1997 and subsequent years, the company should have used different measurement dates for the purpose of computing compensation expense for those stock option grants in accordance with Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees." While the Special Committee has not yet reached a definitive conclusion as to the causes of these errors, new accounting measurement dates are being applied to the affected option grants, and the company expects to recognize material additional non-cash, stock-based compensation expense for the affected periods. Because the Special Committee has not completed its review, the company has not yet determined the magnitude of the restatement, but based upon the review, the Board of Directors, upon recommendation of the Finance and Audit Committee, determined that the company's annual and interim financial statements, earnings press releases and similar communications previously issued by the company for and after 1997 should no longer be relied upon. The company notes that the majority of errors in accounting for options identified to date by the Special Committee pertains to options granted prior to the change in the company's Board of Directors and management in June 2002. Additional errors were found in accounting for certain options granted to employees since the board and management change, but none of the errors related to options granted to the current chief executive officer or chief financial officer. About Valeant Pharmaceuticals Headquartered in Costa Mesa, California, Valeant Pharmaceuticals International -- http://www.valeant.com-- is a global specialty pharmaceutical company with US$823 million of 2005 revenues. It has offices in Singapore and Taiwan. * * * 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. pharmaceutical sector last week, the rating agency confirmed its B1 Corporate Family Rating for Valeant Pharmaceuticals International, and its Ba3 rating on the company's US$300 million issue of 7% senior unsecured notes due 2011. Additionally, Moody's assigned an LGD3 rating to those bonds, suggesting noteholders will experience a 39% loss in the event of a default. Valeant Pharmaceuticals International's senior unsecured debt and corporate family ratings carry Moody's Ba3 and Ba1 ratings respectively, while its long-term foreign and local issuer credits carry Standard & Poor's BB- ratings. =============== T H A I L A N D =============== DATAMAT PCL: Names Niwes as COB, Prepares Rehabilitation Plan ------------------------------------------------------------- The board of directors of Datamat Pcl convened for a meeting on October 24, 2006, and approved: 1. the appointment of Niwes Phancharoenworakul as the new director and Chairman of the board effective on October 24, 2006; 2. the demand to receive the return of the property, seal and documents concerning the property and business of the Company from Advance Planner Co., Ltd.; 3. the Company's permission to re-enter into the business rehabilitation where the Company asked to act as the Planner itself; and appointment of the team act as the Planner and/or the Executive Planner in taking any actions under the law: i. Mr. Niwes Phancharoenworakul; ii. Mr. Watchara Achakornlak; iii. Mr. Bhana Swasdibutara; and iv. Mr. William Linton Raper 4. the appointment of Watchara Achakornlak as the Chief Financial Officer with the duties to control, Supervise and administer the Company's finances. * * * Headquartered in Bangkok, Thailand, Datamat Public Co. Limited - - http://www.datamat.co.th/-- distributes computers, provides computer technology services, and maintains computer and software system. It also provides software services using programming and Java technologies, including a distributor of software system and computer equipment of image processing. The Company is currently categorized under the "Non-Performing Group" sector of the Stock Exchange of Thailand. As of August 25, 2006, Datamat's balance sheet reflected total assets of US$17.55 million, and total shareholder's deficit of US$1.72 million. G STEEL: Inks Energy Services Agreement with Siam Power ------------------------------------------------------- On October 18, 2006, G Steel Pcl entered into an Energy Services Agreement with Siam Power Generation Pcl, a major share-holder of the company, which is a group of companies incorporated in Malaysia namely Emperial Power Ltd. According to G Steel, the agreement would be beneficial to the company in terms of a secure source of power supply needed in its manufacturing of existing production and for future expansion project. Furthermore, the company anticipates that it would also reduce its long term costs of power supply procurement. * * * G Steel Public Company Ltd, headquartered in Bangkok, produces hot rolled coils (HRC) in different grades and gauges. G Steel is a stand-alone operating entity with no related group companies. * * * Standard & Poor's Ratings Services said on September 26, 2006, that it has affirmed the B+ corporate credit rating on Thailand's G Steel Public Co. Ltd. The outlook is negative. In addition, Moody's Investors Service on September 21, 2006, downgraded G Steel's corporate family and senior unsecured bond ratings from B1 to B2. This rating action follows the company's announcement that it has completed the purchase of up to US$180 million in NSM convertible bonds, which will allow G Steel to convert into approximately 33% stake in NSM over the next 18 months. The ratings outlook is stable. TANAYONG PCL: Court to Consider Objections on Plan Termination -------------------------------------------------------------- On October 24, 2006, Tanayong Pcl filed before the Central Bankruptcy Court of Thailand a petition seeking to terminate the rehabilitation plan of the company. However, nine creditors of the company raised objections regarding the petition. Thus, the Central Bankruptcy Court set a date for consideration on October 26, 2006. * * * 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 for the fiscal year ended March 30, 2006, was THB6.926 billion, and its total liabilities was THB35.458 billion, resulting to a shareholders' deficit of THB28.531 billion. TOTAL ACCESS: Starts Promotional Package for Northeast Region ------------------------------------------------------------- Total Access Communication launched a promotional prepaid package specifically for the Northeast, to compete in the area with Advanced Info Service, the Nation says. According to the report, DTAC has launched a SIM card for users registered in northeastern provinces to call any other DTAC subscriber registered in the Northeast for THB1 per minute, regardless of where the call is made from throughout the country. Accordingly, customers will be charged THB2 per minute for calls to other regions' numbers or other networks, the Nation adds. The Nation recounts that early this month, Advanced Info introduced a low-rate package -- THB1 per minute to call any network -- for prepaid mobile-phone customers in the Northeast as part of its regional marketing strategy. However, if subscribers travel outside the region, the call rate jumps to THB2 within the Advanced Info network and THB4 to different networks. The Northeast, according to The Nation has become a battlefield for the two leading cellular operators, mainly because of its large population of 21 million and more than five million mobile-phone subscribers, of which over three million are Advanced Info subscribers while 1.5 million are DTAC users. The Nation cites Total Access chief executive, Sigve Brekke, as saying DTAC has been studying and marketing northeastern consumers for some time. The company has this year rolled out many base stations in the region, making its network coverage comparable to its main competitor. The firm's latest package targets northeastern customers who frequently travel outside the region but remain strongly attached to their hometowns, The Nation notes. * * * Total Access Communications, DTAC -- http://www.dtac.co.th/-- is the second-largest cellular operator in Thailand with an approximately 30% market share and strong brand recognition. With Telenor's recent purchase of a 39.9% interest in United Communication Industry Plc and its subsequent tender offers for UCOM and DTAC shares, Telenor lifted its aggregate economic interest in DTAC to 70.2% from 40.3%. DTAC is Telenor's largest acquisition in Asia and it ranks second in terms of EBITDA contribution outside Norway. * * * Standard and Poor's gave the Company a BB+ Long-term local and foreign issuer credit ratings. DTAC's local and foreign issuer credit were both given a Ba1 rating by Moody's Investor Service. Fitch Ratings, on July 18, 2006, has affirmed DTAC's Long-term foreign currency Issuer Default Rating at BB+ and National Long- term rating at A(tha). The company's National Short-term rating was also affirmed at F1(tha). The Outlook on the ratings is Stable. * Large Companies With Insolvent Balance Sheets ----------------------------------------------- Total Total Shareholders Assets Equity Company Ticker ($MM) ($MM) ------ ------ ------ ------------ AUSTRALIA Allstate Explorations NL ALX 12.65 -51.62 Austar United Communications Ltd. AUN 231.54 -52.58 Global Wine Ventures Limited GWV 22.04 -0.84 Hutchison Telecommunications (Aust) Ltd. HTA 1696.65 -786.31 Indophil Resources NL IRN 37.79 -69.96 Intellect Holdings Limited IHG 23.98 -11.13 KH Foods Ltd KHF 62.30 -1.71 Orbital Corporation Limited OEC 14.01 -4.86 RMG Limited RMG 22.33 -2.16 Stadium Australia Group SAX 135.23 -41.84 Tooth & Company Limited TTH 99.25 -74.39 CHINA AND HONG KONG Artel Solutions Group Holdings Limited 931 29.19 -18.65 Asia Telemedia Limited 376 10.89 -5.50 Bestway International 718 25.00 -0.67 Chang Ling Group 561 77.48 -76.83 Chengdu Book - A 600083 21.50 -3.07 China Liaoning International Cooperation Holdings Ltd. 638 25.79 -43.45 China Kejian Co. Ltd. 35 54.71 -179.23 Datasys Technology Holdings 8057 14.10 -2.07 Everpride Biopharmaceutical Company Limited 8019 10.16 -2.16 Fujian Changyuan Investment Holdings Limited 592 31.36 -54.04 Guangdong Meiya Group Company Ltd. 529 107.16 -49.54 Hainan Overseas Chinese Investment Co. Ltd. 600759 32.70 -15.28 Hans Energy Company Limited 554 94.75 -10.76 Heilongjiang Sun & Field Science & Tech. 620 29.96 -49.18 Hualing Holdings Limited 382 242.26 -28.15 Huda Technology & Education Development Co. Ltd. 600892 17.29 -0.19 Hunan Anplas Co., Ltd. 156 94.17 -65.04 Hunan GuoGuang Ceramic Co., Ltd. 600286 87.44 -68.55 Innovo Leisure Recreation Holdings Ltd. 703 13.68 -2.01 Jiangxi Paper Industry Co. Ltd 600053 19.58 -12.80 Loulan Holdings Limited 8039 13.01 -1.04 Magnum International Holdings Limited 305 10.35 -5.83 Mindong Electric Group Co., Ltd. 536 21.63 -1.50 New City (Beijing) Development Limited 456 151.61 -19.15 New World Mobile Holdings Ltd 862 215.47 -126.57 Orient Power Holdings Ltd. 615 176.86 -64.20 Plus Holdings Ltd 1013 24.00 -3.15 Shandong Jintai Group Co. Ltd. 600385 19.58 -12.18 Shanghai Xingye Housing Company Ltd 600603 14.90 -72.98 Shenyang Hejin Holding Company Ltd. 633 83.18 -20.87 Shenz China Bi-A 17 39.13 -224.64 Shenzhen Dawncom Business Tech And Service Co., Ltd 863 79.84 -37.30 Shenzhen Shenxin Taifeng Group Co. Ltd. 34 95.27 -44.65 Shenzen Techo Telecom Co., Ltd. 555 14.84 -6.25 Sichuan Changjiang Packaging Holding Co. Ltd. 600137 13.11 -72.76 Sichuan Topsoft Investment Company Limited 583 113.12 -148.61 SMI Publishing Group Ltd. 8010 10.48 -7.83 Songliao Automobile Co. Ltd. 600715 49.56 -3.76 Sun's Group Manufacturing Company Limited 988 103.02 -72.80 Taiyuan Tianlong Group Co. Ltd 600234 13.47 -87.63 UDL Holdings Limited 620 12.48 -7.15 Winowner Group Co. Ltd. 600681 38.03 -62.88 Xinjiang Hops Co. Ltd 600090 86.63 -11.26 Yantai Hualian Development Group Co. Ltd. 600766 59.99 -7.66 Yueyang Hengli Air-Cooling Equipment Inc. 622 49.89 -17.71 Zarva Technology Co. Ltd. 688 101.76 -102.01 INDONESIA Ades Waters Indonesia Tbk ADES 21.35 -8.93 Hotel Sahid Jaya SHID 71.05 -4.26 Jakarta Kyoei Ste JKSW 44.72 -38.57 Mulialand Tbk MLND 160.45 -19.82 Panca Wiratama Sakti Tbk PWSI 39.72 -18.82 Steady Safe SAFE 19.65 -2.43 Toba Pulp Lestrari Tbk INRU 403.58 -198.86 Unitex Tbk UNTX 29.08 -5.87 Voksel Electric Tbk VOKS 44.01 -11.74 Wicaksana Overseas International Tbk WICO 43.09 -46.36 Sekar Bumi Tbk SKBM 23.07 -41.95 Steady Safe Tbk SAFE 19.65 -2.43 Suba Indah Tbk SUBA 85.17 -9.18 Surya Dumai Industri Tbk SUDI 105.06 -30.49 Unitex Tbk UNTX 29.08 -5.87 JAPAN Mamiya-OP Co., Ltd. 7991 152.37 -67.11 Montecarlo Co. Ltd. 7569 66.29 -3.05 Nihon Seimitsu Sokki Co., Ltd. 7771 23.82 -1.10 Sumiya Co., Ltd. 9939 89.32 -11.57 Yakinikuya Sakai Co., Ltd. 7622 79.44 -11.14 MALAYSIA Antah Holdings Bhd ANT 184.65 -98.29 Ark Resources Berhad ARK 25.91 -28.35 Cygal Bhd CYG 58.47 -69.79 Comsa Farms Bhd CFB 63.60 -5.00 Jin Lin Wood Industries Berhad JLW 21.68 -1.74 KIG Glass Industrial Berhad KIG 15.76 -24.61 Mentiga Corporation Berhad MENT 22.13 -18.25 Metroplex Bhd MEX 323.51 -49.28 Mycom Bhd MYC 227.68 -114.64 Lityan Holdings Bhd LIT 22.22 -19.11 Olympia Industries Bhd OLYM 255.84 -227.85 Pan Malay Industries PMRI 199.08 -6.30 Panglobal Bhd PGL 189.92 -50.36 Park May Bhd PMY 11.04 -13.58 PSC Industries Bhd PSC 62.80 -116.18 Setegap Berhad STG 19.92 -26.88 Wembley Industries Holdings Bhd WMY 111.72 -204.61 PHILIPPINES APC Group Inc. APC 67.04 -163.14 Atlas Consolidated Mining and Development Corp. AT 33.59 -57.17 Cyber Bay Corporation CYBR 11.54 -58.06 East Asia Power Resources Corp. PWR 92.55 -64.61 Fil-Estate Corporation FC 33.30 -5.80 Filsyn Corporation FYN 19.20 -8.83 Global Equities Inc. GEI 24.18 -1.81 Gotesco Land, Inc. GO 17.34 -9.59 Prime Orion Philippines Inc. POPI 98.36 -74.34 Swift Foods Inc. SFI 26.95 -8.23 Unioil Resources & Holdings Company Inc. UNI 10.64 -9.86 United Paragon Mining Corp. UPM 21.19 -21.52 Universal Rightfield Property Holdings Inc. UP 45.12 -13.48 Uniwide Holdings Inc. UW 61.45 -30.31 Victorias Milling Company Inc. VMC 127.83 -32.21 SINGAPORE China Aviation Oil (Singapore) Corporation CAO 211.96 -390.07 Compact Metal Industries Ltd. CMI 54.36 -25.64 Falmac Limited FAL 10.90 -0.73 Gul Technologies Singapore Limited GUL 152.80 -27.74 HLG Enterprise HLGE 150.70 -12.72 Informatics Holdings Ltd INFO 22.30 -9.14 L&M Group of Companies LNM 56.91 -10.59 Liang Huat Aluminium Ltd. LHA 19.30 -76.43 Lindeteves-Jacoberg Limited LJ 225.52 -53.23 Pacific Century Regional PAC 1381.26 -107.11 See Hup Seng Ltd. SHS 17.36 -0.09 SOUTH KOREA BHK Inc 3990 24.36 -17.38 C & C Enterprise Co. Ltd. 38420 28.05 -14.50 Cenicone Co. Ltd. 56060 36.82 -1.46 Cheil Entech Co. Ltd. 53330 37.25 -0.31 Dewell Elecom Inc. 32590 10.93 -6.92 Everex Inc. 47600 23.15 -5.10 EG Greentech Co. 55250 186.00 -1.50 EG Semicon Co. Ltd. 38720 166.70 -12.34 SungKwang Co., Ltd. 41140 19.06 -1.60 Tong Yang Major 1520 2332.81 -86.95 TriGem Computer Inc 14900 629.32 -292.96 THAILAND Bangkok Rubber PCL BRC 70.19 -56.98 Central Paper Industry PCL CPICO 40.41 -37.02 Circuit Electronic Industries PCL CIRKIT 20.37 -64.80 Daidomon Group Pcl DAIDO 12.92 -8.51 Datamat PCL DTM 17.55 -1.72 Kuang Pei San Food Products Public Co. POMPUI 12.51 -9.87 Sahamitr Pressure Container Public Co. Ltd. SMPC 20.77 -28.13 Sri Thai Food & Beverage Public Company Ltd SRI 18.29 -43.37 Tanayong PCL TYONG 178.27 -734.30 Thai-Denmark PCL DMARK 21.37 -18.88 Thai-Wah PCL TWC 91.56 -41.24 ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Asia Pacific is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Nolie Christy Alaba, Rousel Elaine Tumanda, 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 ***