/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/061106.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Monday, November 6, 2006, Vol. 9, No. 220 Headlines A U S T R A L I A ABGLAM PTY: Creditors Must Prove Debts by November 14 AIRSPEED SERVICES: To Shut Down Business Operations ALLSTAFF INDUSTRIAL: Proofs of Claim Due on November 28 ATOM CIVIL: Federal Court Issues Wind-Up Order AUSAIR AIRCONDITIONING: To Declare Priority Dividend on Dec. 14 BELDOON EMPLOYEES: Members' Final Meeting Set for Nov. 6 CIVIL MARINE: Members and Creditors to Hold Meeting on Nov. 10 CLINICAL ASSOCIATES: Commences Wind-Up of Operations COLLINS CRUSHING: Creditors Must File Proofs of Debt by Nov. 7 COMPUTER NETWORK: Members Opt to Shut Down Business CORPORATE COMPUTERS: Undergoes Voluntary Liquidation HABLAT PTY: Members' Final Meeting Set for November 10 HIH INSURANCE: Asst. Secretary Gets 500 Hours Community Service HUNTER VALLEY GRAVEL: To Declare Dividend on December 15 HUNTER VALLEY STEMMING: Will Declare Dividend on December 15 KOPPERS INVESTMENT: Members Agree to Wind Up Operations LONERAGAN (HOLDINGS): Names Official Liquidators MAJOR & MINOR: Final Meeting Scheduled for November 10 MIRAGE GRAPHICS: Federal Court Appoints Liquidator NATIONAL AUSTRALIA: Liquidator to Present Wind-Up Report PLUMPS LIMITED: Members to Receive Wind-Up Report on November 10 PRIMELIFE CORPORATION: Court Appoints Liquidator to Red Bluff PROPERTY SECURED: Creditors Must Prove Debts by November 14 ROFE MANAGEMENT: Liquidator to Present Wind-Up Report on Nov. 10 SEFULE PTY: Creditors and Members to Receive Wind-Up Accounts SKYLOTT PTY: Creditors Appoint Liquidators SUPERANNUATION FOR AUSTRALIAN: Members to Meet on November 10 SYDNEY INVESTMENT HOUSE: Court Appoints Provisional Liquidator THE CABINET: Creditors to Meet on November 10 THE CABINET CATERING: Creditors' Meeting Set for November 10 TORONTO DOMINION: Enters Voluntary Wind-Up TRAUMEREI PTY: Members Agree to Voluntarily Wind Up Business WOODVILLE NEW: Members Pass Resolution to Wind Up Operations WSA BOYCE: To Declare Final Dividend for Unsecured Creditors C H I N A & H O N G K O N G BALLY TOTAL: Files Restated Results for 2006 Qtr. Ended June 30 BANTA CORP: S&P Rates US$515 Credit Facilities at BB BOMBARDIER INC: Fitch Downgrades Issuer Default Rating to BB- CHINA CONSTRUCTION: Zhang Gets 15 Years in Jail COUDERT BROTHERS: Gets Okay to Hire Dunn Koes as Special Counsel COUDERT BROTHERS: Wants to Hire Yeo Wee as Special Counsel DAIMLERCHRYSLER AG: Rules Out Sale of Chrysler Unit E. SUN COMMERCIAL: Moody's Keeps D+ Financial Strength Rating GLOBAL POWER: Has Until Nov. 12 to File Schedules and Statements GUANGDONG DEVELOPMENT: CBRC Denies Approval of Citigroup Bid JORDAN INDUSTRIES: Moody's Assigns Loss-Given-Default Rating KINETEK INDUSTRIES: Moody's Assigns Loss-Given-Default Rating PETROLEOS DE VENEZUELA: Moves Bidding Deadline for Delta Caribe SENSUS METERING: Moody's Assigns Loss-Given-Default Rating SPX CORPORATION: Moody's Assigns Loss-Given-Default Rating SWIFT & COMPANY: Names Raymond Silcock as EVP and CFO SWIFT & COMPANY: 1st Fiscal Qtr. Net Sales Rose to US$2.59 Bil. SUPERIOR ESSEX: Moody's Assigns Loss-Given-Default Rating WOLVERINE TUBE: Moody's Assigns Loss-Given-Default Rating F I J I * S&P Places Fiji Islands'S Long-Term Ratings On Watch Negative I N D I A FEDERAL BANK: Fitch Assigns 'D' Individual Rating NOVELL INC: Amends 0.5% Sr. Debenture Consent Solicitation NOVELL: Promotes Tom Francese to Exec. VP for Worldwide Sales ORIENTAL BANK: Reports 51% Growth in 3rd Quarter 2006 Profit RELIANCE INDUSTRIES: To Roll Out Fruit & Vegetable Chain RELIANCE INDUSTRIES: Considers Raising US$2 Bil. For Investment RELIANCE INDUSTRIES: Amends Deepwater Block Development Plan RPG LIFE: Terminates Hindustan Antibiotics Lease Agreements STATE BANK OF INDIA: Net Profit Slightly Lowers to INR11.8 Bil. I N D O N E S I A AVNET INC: Moody's Assigns Loss-Given-Default Ratings GENERAL NUTRITION: Moody's Assigns Loss-Given-Default Ratings GOODYEAR TIRE: Closing Tire Manufacturing Plant in Tyler, Texas INCO LTD: CVRD Brings In New Board Following Purchase Completion TELKOM INDONESIA: Expects 20% More Subscribers in 2007 J A P A N ALL NIPPON: Group Posts JPY33-Bil Net Profit for First Half '06 AMERICAN AIRLINES: Earns US$1 Million in Quarter Ended Sept. 30 DURA AUTOMOTIVE: U.S. & Canadian Operations File for Chapter 11 DURA AUTOMOTIVE: Case Summary & 30 Largest Unsecured Creditors DURA AUTOMOTIVE: S&P's Ratings Tumble to D After Ch. 11 Filing FORD MOTOR: Closes Production at Atlanta Assembly Plant FTI CONSULTING: Appoints New Directors to Forensic, Corp Finance MICRON TECHNOLOGY: Earns US$408 Million in 2006 Fiscal Year SENSATA TECHNOLOGIES: Moody's Assigns Loss-Given-Default Rating SOFTBANK CORP: Reviews Ads After Meeting with Regulator K O R E A SANDISK CORP: 1Q07 Trial Expected For STMicro's '45 Patent Suit SHINHAN BANK: Reports 11% Decrease in 3rd Quarter Net Income M A L A Y S I A AKTIF LIFESTYLE: Moves to Another Location COMSA FARMS: Default Status Remains Unchanged COMSA FARMS: Failure to Submit Financials Prompts Suspension JIN LIN: SC Extends Period to Submit Revamp Plan to January 2007 MYCOM BERHAD: To Seek Plan Extension Pursuant to Timelines OLYMPIA INDUSTRIES: Jupiter Securities Issues 45 Mil. Shares OLYMPIA INDUSTRIES: Subsidiary Served with Wind-Up Petition OLYMPIA INDUSTRIES: To Submit Plan Extension Request PANGLOBAL BERHAD: Subsidiary Changes Name WEMBLEY INDUSTRIES: SC Rejects Appeal for Time Extension N E W Z E A L A N D AMP PAPAMOA: Shareholders Opt to Liquidate Business APOF CHARITABLE: Liquidation Process Commenced APOF PAPAMOA: Enters Liquidation Proceedings CENTRAL INSURANCE: Faces Liquidation Proceedings DOT & MIKE: Names Parsons and Kenealy as Liquidators FOOD QUEENS: Appoints Joint Liquidators LYDICO FREIGHT: Liquidation Petition Hearing Set on Nov. 16 PETER HOMAN: Liquidation Hearing Set on November 9 R.T. DAVIS: Court to Hear Liquidation on November 16 ROBO'S WHOLESALE: Creditors to Prove Claims on November 24 TERRAFIRMA LANDSCAPING: Court to Hear CIR's Liquidation Petition VOLCANIC INVESTMENTS: Court Set to Hear CIR's Petition P H I L I P P I N E S ALLIED BANK: Moody's Revises B1 Deposit Rating Outlook to Stable BANCO DE ORO: Moody's Changes Ba3 Debt Rating Outlook to Stable BANK OF THE PHILIPPINE ISLANDS: Moody's Amends Outlook to Stable DEVELOPMENT BANK: Moody's Revises B1 Rating Outlook to Stable EQUITABLE PCI: Moody's Revises Outlook for B1 Rating to Stable LAND BANK: Moody's Changes Outlook of B1 Rating to Stable METROPOLITAN BANK: Moody's Changes B1 Rating Outlook to Stable METROPOLITAN BANK: To Seek Reconsideration of Tax Payment Order PHILIPPINE NATIONAL BANK: NPL Ratio Drops to 27% as of Sept. 29 PHILIPPINE NATIONAL BANK: Moody's Revises Outlook to Stable RIZAL COMMERCIAL BANKING: Moody's Changes Rtg Outlook to Stable UNITED COCONUT PLANTERS: Moody's Changes Rtg Outlook to Stable UNION BANK: Sept. 29 NPLs Increase to 11.33% from 9.46% in June S I N G A P O R E AVENTIS PHARMA: Creditors Must Submit Proofs of Claim by Dec. 3 BENCHMARK ELECTRONICS: S&P Places BB- Rating on CreditWatch CANON ENGINEERING: Creditors' Proofs of Debt Due on December 4 HIQ BIOSCIENCE: High Court to Hear Wind-Up Petition on Nov. 24 REFCO INC: Court Gives Final OK on Amended Disclosure Statement REFCO INC: Court Sets Dec. 15 Joint Plan Confirmation Hearing REFCO INC: Court Offers Clarification on Nov. 15 Claims Bar Date UNITED TEST: Moody's Assigns (P)Ba3 Corporate Family Rating T H A I L A N D KRUNG THAI: Foreign Investors Sell 50 Million Shares TRUE CORP: Ventures into Film Production - - - - - - - - ================= A U S T R A L I A ================= ABGLAM PTY: Creditors Must Prove Debts by November 14 ----------------------------------------------------- A first and final dividend will be declared on December 22, 2006, for the creditors of Abglam Pty Limited, which is subject to deed of company arrangement. Accordingly, creditors are required to submit their proofs of debt by November 14, 2006, to be included in the company's distribution of dividend. The deed administrator can be reached at: R. W. Whitton Lawler Partners GPO Box 5446 Sydney, New South Wales 2000 Australia Telephone:(02) 8346 6000 AIRSPEED SERVICES: To Shut Down Business Operations --------------------------------------------------- At a general meeting held on October 17, 2006, the members of Airspeed Services Pty Ltd passed a special resolution to wind up the company's operations and appoint Noel R. Willis as liquidator. The Liquidator can be reached at: Noel R. Willis c/o KPMG KPMG Centre 491 Smollett Street Albury, New South Wales 2640 Australia ALLSTAFF INDUSTRIAL: Proofs of Claim Due on November 28 ------------------------------------------------------- Allstaff Industrial Personnel (SA) Pty Ltd, which is subject to deed of company arrangement, will declare the first and final dividend for its unpreferred unsecured creditors on December 14, 2006. Creditors who can prove their debts by November 28, 2006, will be included in the distribution. The Joint & Several Deed Administrators can be reached at: T. J. Clifton A. J. Heard PPB Chartered Accountants 10th Floor, 26 Flinders Street Adelaide, South Australia 5000 Australia Telephone: 8211 7800 ATOM CIVIL: Federal Court Issues Wind-Up Order ---------------------------------------------- On October 13, 2006, the Federal Court of Australia ordered the wind up Atom Civil Pty Ltd and appointed Antony De Vries as official liquidator. The Liquidator can be reached at: Antony De Vries de Vries Tayeh Level 3, 95 Macquarie Street Parramatta, New South Wales 2125 Australia AUSAIR AIRCONDITIONING: To Declare Priority Dividend on Dec. 14 --------------------------------------------------------------- Ausair Airconditioning Pty Ltd, which is in liquidation, will declare the priority dividend for its creditors on December 14, 2006. Creditors must submit proofs of debt by November 14, 2006, to be included in the company's distribution of dividend. The liquidator can be reached at: John Lord PKF Chartered Accountants Level 10, 1 Margaret Street Sydney, New South Wales 2000 Australia Telephone: 9240 9702 Web site: http://www.pkf.com.au BELDOON EMPLOYEES: Members' Final Meeting Set for Nov. 6 -------------------------------------------------------- Beldoon Employees Pty Ltd, which is in liquidation, will hold a final meeting for its members on November 6, 2006, at 10:00 a.m. At the meeting, the members will receive the accounts of the company's wind-up and property disposal exercises from Liquidator David W. Johns. The Liquidator can be reached at: David W. Johns 206 Greenhill Road Eastwood, South Australia 5063 Australia CIVIL MARINE: Members and Creditors to Hold Meeting on Nov. 10 -------------------------------------------------------------- Civil Marine Constructions Pty Ltd, which is in liquidation, will hold a final meeting for its members and creditors on November 10, 2006, at 11:00 a.m., to receive the final accounts of the company's wind-up proceedings and property disposal exercises. The liquidator can be reached at: Steven Nicols Nicols + Brien Level 2, 350 Kent Street Sydney, New South Wales 2000 Australia Telephone: (02) 9299 2289 Web site: http://www.bankrupt.com.au CLINICAL ASSOCIATES: Commences Wind-Up of Operations ---------------------------------------------------- At a general meeting held on October 13, 2006, the members of Clinical Associates Of Australia Number 2 Pty Ltd resolved to voluntarily wind up the company's operations. The liquidators can be reached at: David Clement Pratt Timothy James Cuming Level 15, 201 Sussex Street Sydney, New South Wales 1171 Australia COLLINS CRUSHING: Creditors Must File Proofs of Debt by Nov. 7 -------------------------------------------------------------- Liquidator Kenneth Whittingham will be receiving proofs of debt from the creditors of Collins Crushing Pty Limited, which is in liquidation, until November 7, 2006. The company will declare the first and final dividend on December 15, 2006. The Liquidator can be reached at: Kenneth Whittingham BDO Chartered Accountants Level 19, 2 Market Street Sydney Australia Telephone: 9286 5555 COMPUTER NETWORK: Members Opt to Shut Down Business --------------------------------------------------- At an extraordinary general meeting held on October 16, 2006, the members of Computer Network Technology (Asia Pacific) Pty Ltd resolved to shut down the company's business. Accordingly, Keiran William Hutchison and John Raymond Gibbons were appointed as liquidators. The Liquidators can be reached at: Keiran William Hutchison John Raymond Gibbons Ernst & Young Ernst & Young Centre Level 37, 680 George Street Sydney, New South Wales 2000 Australia Telephone:(02) 9248 4124 CORPORATE COMPUTERS: Undergoes Voluntary Liquidation ---------------------------------------------------- The members of Corporate Computers Aust Pty Ltd held a meeting on October 16, 2006, and agreed to voluntarily wind up the company's operations. Accordingly, Nicholas Crouch was appointed as liquidator. The Liquidator can be reached at: Nicholas Crouch Crouch Insolvency Chartered Accountants Level 28, 31 Market Street Sydney, New South Wales 2000 Australia HABLAT PTY: Members' Final Meeting Set for November 10 ------------------------------------------------------ Hablat Pty Limited, which is in liquidation, will hold a final meeting for its members on November 10, 2006, at 3:30 p.m. At the meeting, company members will receive the report of Liquidator Harper on Hablat's wind-up and property disposal exercises. The Liquidator can be reached at: R. J. Harper 2a Hope Street, Pymble Australia HIH INSURANCE: Asst. Secretary Gets 500 Hours Community Service --------------------------------------------------------------- On November 3, 2006, the New South Wales Supreme Court sentenced former Assistant Company Secretary of HIH Insurance Limited, Robert Kelly, to 500 hours community service in relation to a criminal charge arising from his role in the HIH group of companies. Mr. Kelly was previously found guilty of an offense under the Crimes Act NSW when, on May 26, 2000, he did with the intention of obtaining a financial advantage for FAI Insurances Limited, concur in the making of a materially false or misleading statement to officers of Westpac Banking Corporation, that management of HIH was not able to produce consolidated accounts of the FAI Group for the financial period ended June 30, 1999, when in fact the accounts could have been produced. The accounts were required to comply with a covenant under a AU$150 million Medium Term Note Programme between FAI Insurances and certain Noteholders being overseas financial institutions. Westpac was the manager of the Note Programme. The Note Programme also contained a covenant requiring the FAI Group Shareholders Funds to be not less than AU$200 million. However, as at June 30, 1999, the funds were only AU$80.9 million. The making of the statement to Westpac assisted FAI avoid the risk of the Noteholders calling in amounts owing under FAI Notes. In sentencing Mr. Kelly, the Court acknowledged his assistance to the Australian Securities and Investments Commission and the DPP. The Court also concluded that although the offense of concurring with the making of a false and misleading statement by a more senior HIH officer was serious, it was "qualitatively different and of a significantly lower order than other offences in relation to which sentences of imprisonment have been imposed in HIH prosecutions." According to Deputy Director of Enforcement Allen Turton, the ASIC acknowledged Mr. Kelly's early guilty plea and the cooperation and information he provided. "This outcome demonstrates the merit of an early guilty plea and the provision of cooperation with authorities," Mr. Turton notes. As reported in the Troubled Company Reporter - Asia Pacific on July 6, 2006, Mr. Kelly had told the Downing Centre Local Court in Sydney that he would plead guilty when arraigned in August to a charge arising from his role in the HIH Group. According to the TCR-AP, through his lawyer, Mr. Kelly told the Court that he would plead guilty to an offense under the Crimes Act NSW. He said that on May 26, 2000, with the intention of obtaining a financial advantage for FAI Insurances Limited, he concurred in the making of a materially false or misleading statement to Westpac Banking Corporation officers and admitted that HIH management was not able to produce consolidated accounts for the FAI Group for the financial period ended June 30, 1999, when these accounts could have been produced. "This is the sixth guilty plea obtained in ASIC's HIH investigation. ASIC will act to ensure that company directors or officers who act dishonestly are brought before the Courts," Mr. Turton says. About HIH Insurance HIH Insurance Limited -- the holding company of the HIH Group -- was a publicly listed company in Australia. Prior to its collapse, the HIH Group was known as the second largest general insurer in Australia, and had operations in many other countries. On March 15, 2001, the HIH Group failed, with a deficiency now believed to be between AU$3.6 billion and AU$5.3 billion. Provisional liquidators were appointed to HIH Insurance Limited and many of its subsidiaries. Other insolvency practitioners were appointed to various group companies incorporated in other parts of the world. In August 2001, the major Australian companies in the HIH Group were placed into liquidation. On March 29, 2006, meetings of the creditors of the eight companies in the HIH Insurance Group approved the Australian Schemes of Arrangement for those companies. Moreover, separate meetings of creditors of four HIH Insurance Group companies with branches in the United Kingdom approved English Schemes for those companies. HIH's collapse is known to be the nation's biggest corporate failure. HUNTER VALLEY GRAVEL: To Declare Dividend on December 15 -------------------------------------------------------- Hunter Valley Gravel Supplies Pty Limited, which is in liquidation, will declare the first and final dividend for its creditors on December 15, 2006. Creditors who cannot prove their debts by November 7, 2006, will be excluded in the distribution. The liquidator can be reached at: Kenneth Whittingham BDO Chartered Accountants Level 19, 2 Market Street Sydney Australia Telephone: 9286 5555 HUNTER VALLEY STEMMING: Will Declare Dividend on December 15 ------------------------------------------------------------ Hunter Valley Stemming Supplies Pty Limited, which is in liquidation, will declare the first and final dividend for its creditors on December 15, 2006. Creditors must submit proofs of debt by November 7, 2006, to be included in the company's distribution of dividend. The liquidator can be reached at: Kenneth Whittingham BDO Chartered Accountants Level 19, 2 Market Street Sydney Australia Telephone: 9286 5555 KOPPERS INVESTMENT: Members Agree to Wind Up Operations ------------------------------------------------------- At a general meeting held on October 16, 2006, the members of Koppers Investment Subsidiary Pty Limited passed resolutions to: -- place the company under members' voluntary liquidation; -- appoint Stephen Noel Armstrong as liquidator; and -- entitle the liquidator to charge fees for carrying out his duties at the rate prescribed by the Institute of Chartered Accountants in Australia. The Liquidator can be reached at: Stephen Noel Armstrong Allworths Chartered Accountants Level 9, St Martins Tower Sydney New South Wales Australia LONERAGAN (HOLDINGS): Names Official Liquidators ------------------------------------------------ On October 16, 2006, the members of Loneragan (Holdings) Pty Limited held a general meeting and resolved to voluntarily wind up the company's operations. Moreover, Robyn Louise Duggan and Max Christopher Donnelly were nominated as the company's liquidators. The Liquidators can be reached at: Robyn Louise Duggan Max Christopher Donnelly Ferrier Hodgson Level 13, 225 George Street Sydney, New South Wales Australia MAJOR & MINOR: Final Meeting Scheduled for November 10 ------------------------------------------------------ The members and creditors of Major & Minor Property Maintenance Pty Ltd, which is in liquidation, will hold a final meeting for its members and creditors on November 10, 2006, at 10:30 a.m., to: -- receive the final receipts and payments from the liquidator; and -- resolve that the books and records of the company be destroyed. The liquidator can be reached at: Anthony Warner CRS Warner Sanderson Australia Web site: http://www.crswarnersanderson.com.au MIRAGE GRAPHICS: Federal Court Appoints Liquidator -------------------------------------------------- On October 13, 2006, the Federal Court of Australia has appointed Christopher J. Palmer as the liquidator of Mirage Graphics Pty Limited, which was placed in liquidation. The Liquidator can be reached at: Christopher j. Palmer O'Brien Palmer Level 4, 23 Hunter Street Sydney, New South Wales 2000 Australia NATIONAL AUSTRALIA: Liquidator to Present Wind-Up Report -------------------------------------------------------- The members of National Australia Management Services Pty Ltd will hold a meeting on November 10, 2006, at 10:00 a.m., to receive the report of Liquidators Timothy James Cuming and Allan John Watson regarding the company's wind-up proceedings and property disposal exercises. The Liquidators can be reached at: Timothy James Cuming Allan John Watson PricewaterhouseCoopers Level 15, 201 Sussex Street Sydney, New South Wales 1171 Australia PLUMPS LIMITED: Members to Receive Wind-Up Report on November 10 ---------------------------------------------------------------- The members of Plumps Limited will hold a meeting on November 10, 2006, at 10:00 a.m., to receive the accounts of Liquidators Timothy James Cuming and Allan John Watson regarding the company's wind-up and property disposal exercises. The Liquidators can be reached at: Timothy James Cuming Allan John Watson PricewaterhouseCoopers Level 15, 201 Sussex Street Sydney, New South Wales 1171 Australia PRIMELIFE CORPORATION: Court Appoints Liquidator to Red Bluff ------------------------------------------------------------- In proceedings brought by the Australian Securities and Investments Commission, the Federal Court of Australia has appointed a liquidator to an unregistered managed investment scheme associated with a proposed retirement village to be operated by Primelife Corporation Limited and situated on the site of the former Red Bluff Hotel in Sandringham, Victoria. As reported in the Troubled Company Reporter - Asia Pacific on September 11, 2006, Primelife disclosed that since June 30, 2005, it has resolved Managed Investment Schemes, which included its agreement to repurchase Red Bluff development. The ASIC sought the appointment of a liquidator after a report from the appointed independent accountant, Andrew McLellan of PPB Chartered Accountants, identified potential irregularities in the scheme's accounts. ASIC argued that the appointment of an independent liquidator was the only way to ensure that investors' interests were properly represented and protected. In appointing Colin Nicol of McGrath Nicol and Partners as liquidator, Justice Goldberg noted that there were matters for a liquidator to consider. The ASIC also obtained orders that the former managers' legal costs in relation to the hearing were not to be paid out of the assets of the scheme. The ASIC's actions, including obtaining winding up orders for the scheme on September 26, 2006, have ensured that: (a) an independent accountant was appointed to review the scheme's books and records to identify the assets and identity of investors and report his findings to the Court; and (b) all investors would receive a copy of the independent accountant's report and have adequate opportunity to consider proposals to wind up the scheme and deal with the scheme's assets. The ASIC's Executive Director of Enforcement, Jan Redfern explained that the ASIC sought the appointment of an independent accountant so that the scheme could be thoroughly investigated and reviewed. "To further protect investors' rights we sought the appointment of a liquidator who can take control of the scheme and further investigate the issues raised by the independent accountant," Ms. Redfern said. The ASIC recounts that on September 23, 2004, it filed 37 proceedings in the Federal Court of Australia seeking, amongst other things, orders that an investigating accountant be appointed over each of the schemes to report to the Federal Court to ascertain the position of each of the schemes. The ASIC also applied for the schemes to be wound up. In an update, The ASIC has now finalized 18 of the proceedings, including the winding up of 12 schemes. A further seven of the ASIC's remaining proceedings have, by consent, been ordered by the Federal Court of Australia to be wound up. About Primelife Headquartered in Melbourne, Australia, Primelife Corporation -- http://www.primelife.com.au-- develops and manages properties catering to a wide range of senior living needs, including independent retirement living, serviced apartments, aged care or low care hostels and high care nursing homes, and in-home care. Primelife almost skidded into insolvency when, on September 23, 2004, the Australian Securities and Investments Commission filed 37 proceedings in the Federal Court of Australia seeking, among other things, orders that an investigating accountant be appointed over managed investment schemes under Primelife to report to the Federal Court to ascertain the position of each of the schemes. ASIC also applied for the schemes to be wound up. The ASIC alleged that the schemes are not registered, as required under the Corporations Act. ASIC brought the Federal Court proceedings against Primelife and a number of other defendants including parties who, ASIC alleges, have been involved in promoting and managing the schemes to a large number of investors since 1997. The unregistered schemes are undergoing or were completely wound up starting October 2005. The Company had currently resolved most of the legal issues and was turning the corner after a couple of years. PROPERTY SECURED: Creditors Must Prove Debts by November 14 ----------------------------------------------------------- Property Secured Investments Limited, which is subject to deed of company arrangement, will declare the first and final dividend for its creditors on December 17, 2006. Creditors who cannot prove their debts by November 14, 2006, will be excluded from sharing in the company's distribution of dividend. The Deed Administrator can be reached at: W. J. Harris McGrathNicol+Partners Level 14, 145 Eagle Street Brisbane, Queensland 4000 Australia Web site: http://www.mcgrathnicol.com ROFE MANAGEMENT: Liquidator to Present Wind-Up Report on Nov. 10 ---------------------------------------------------------------- A final meeting will be held for the members and creditors of Rofe Management Pty Ltd on November 10, 2006, at 11:30 a.m., to receive the accounts from Liquidator Steven Nicols regarding the company's wind-up and property disposal exercises. The Liquidator can be reached at: Steven Nicols Nicols + Brien Level 2, 350 Kent Street Sydney, New South Wales 2000 Australia Telephone: (02) 9299 2289 Web site: http://www.bankrupt.com.au SEFULE PTY: Creditors and Members to Receive Wind-Up Accounts ------------------------------------------------------------- The members and creditors of Sefule Pty Limited, will hold a final meeting on November 7, 2006, at 11:00 a.m., to receive the report of Liquidator Steven Nicols regarding the company's wind- up proceedings. The Liquidator can be reached at: Steven Nicols Nicols + Brien Level 2, 350 Kent Street Sydney, New South Wales 2000 Web site: http://www.bankrupt.com.au SKYLOTT PTY: Creditors Appoint Liquidators ------------------------------------------ On October 17, 2006, the members of Skylott Pty Limited held an extraordinary general meeting and resolved to wind up the company's operations. Neil Robert Cussen and Gavin Charles Morton were appointed as liquidators at the creditors' meeting held later that day. The Liquidators can be reached at: Neil Robert Cussen Gavin Charles Morton Horwath Sydney Partnership Level 10, 1 Market Street Sydney, New South Wales 2000 Australia SUPERANNUATION FOR AUSTRALIAN: Members to Meet on November 10 ------------------------------------------------------------- A meeting will be held for the members of Superannuation For Australian Corporate Employees Pty Ltd on November 10, 2006, at 10:00 a.m. At the meeting, Liquidators Timothy James Cuming and Allan John Watson will present the company's wind-up proceedings and property disposal exercises. The Liquidators can be reached at: Timothy James Cuming Allan John Watson PricewaterhouseCoopers Level 15, 201 Sussex Street Sydney, New South Wales 1171 Australia SYDNEY INVESTMENT HOUSE: Court Appoints Provisional Liquidator -------------------------------------------------------------- The Supreme Court of New South Wales has appointed a provisional liquidator to seven companies related to the Sydney Investment House Group after an application by the Australian Securities and Investments Commission. On October 27, 2006, Quentin Olde of Taylor Woodings was appointed provisional liquidator to these companies: 1. Sydney Investment House Equities Pty Ltd (SIH Equities); 2. Sydney Investment House Capital Limited (SIH Capital); 3. Sydney Investment House Pty Ltd; 4. Sydney Investment House (Beaconsfield) Pty Ltd; 5. Melbourne Investment House Pty Ltd; 6. Melbourne Investment House (Hawthorn) Pty Ltd; and 7. Melbourne Investment House (Collingwood) Pty Ltd Two of the directors of SIH Capital, Edwin Goulding and Steven Geagea, were also defendants to these proceedings. Mr Goulding is a director of the other seven companies within the Sydney Investment House Group. SIH Capital is an unlisted public company that raised over AU$8.4 million from the public through the issue of redeemable preference shares between November 2004 and June 2005. The funds raised from the public were lent to other companies within the Sydney Investment House Group that were controlled by Mr. Goulding. Many of the investors in SIH Capital were previously investors in SIH Equities and had their investments rolled over into SIH Capital. The ASIC alleges that Messrs. Goulding and Geagea, and the companies within the Sydney Investment House Group had been involved in a number of contraventions of the Corporations Act and ASIC Act, including that SIH Equities operated an unregistered managed investment scheme and that Messrs. Goulding and Geagea were involved in making false and misleading statements to investors. It is alleged these false and misleading statements were made to investors to encourage them to invest with SIH Capital. ASIC is also concerned that some of the funds raised by SIH Capital through the issue of a prospectus were then lent to related companies by the defendants in a manner contrary to statements made in the prospectus. ASIC is seeking orders and declarations in relation to these and other allegations. A hearing date in relation to these matters has not been set by the Court. Sydney Investment House (Newcastle) Pty Ltd, a defendant to the proceedings was not placed into provisional liquidation. Sydney Investment House (Newcastle) Pty Ltd is the developer of the Soque apartments located at 13 Roslyn Street, Islington, a suburb of Newcastle. On November 1, 2006, the Court gave Mr. Olde powers required to prepare a report into the affairs of Sydney Investment House (Newcastle) Pty Ltd and to provide the report to the Court by December 1, 2006. THE CABINET: Creditors to Meet on November 10 --------------------------------------------- The creditors of The Cabinet Pty Limited, which is in liquidation, will hold a final meeting on November 10, 2006, at 4:00 p.m., to consider the liquidators' report about the companies' financial circumstances. The liquidators can be reached at: Stephen J. Parbery Andrew L. Smith PPB, Level 15 25 Bligh Street Sydney, New South Wales 2000 Australia THE CABINET CATERING: Creditors' Meeting Set for November 10 ------------------------------------------------------------ The creditors of The Cabinet Catering & Event Management Pty Limited will hold a final meeting on November 10, 2006, at 4:00 p.m., to receive the reports of Liquidators Stephen J. Parbery and Andrew L. Smith regarding the company's wind-up proceedings and property disposal exercises. The Liquidators can be reached at: Stephen J. Parbery Andrew L. Smith PPB, Level 15 25 Bligh Street Sydney, New South Wales 2000 Australia TORONTO DOMINION: Enters Voluntary Wind-Up ------------------------------------------ The members of Toronto Dominion Securities Pty Ltd met at a general meeting on October 16, 2006, and passed a special resolution to voluntarily wind up the company's operations. The liquidators can be reached at: David Clement Pratt Timothy James Cuming Level 15, 201 Sussex Street Sydney, New South Wales 1171 Australia TRAUMEREI PTY: Members Agree to Voluntarily Wind Up Business ------------------------------------------------------------ At an extraordinary general meeting held on October 16, 2006, the members of Traumerei Pty Ltd agreed to voluntarily wind up the company's operations and appointed Leslie William Edward Charlton as liquidator. The Liquidator can be reached at: Leslie William Edward Charlton 943 Dandenong Road Malvern East Australia WOODVILLE NEW: Members Pass Resolution to Wind Up Operations ------------------------------------------------------------ On October 13, 2006, the members of Woodville New & Second Hand Tyres Pty Limited held a general meeting and passed a special resolution to wind up the company's operations. In this regard, P. Ngan was appointed as liquidator. The Liquidator can be reached at: P. Ngan Ngan & Co Chartered Accountants Level 5, 49 Market Street Sydney, New South Wales 2000 Australia WSA BOYCE: To Declare Final Dividend for Unsecured Creditors ------------------------------------------------------------ A final dividend will be declared on December 18, 2006, for the unsecured creditors of WSA Boyce Road Pty Limited, which is in liquidation. Accordingly, creditors who cannot prove their debts by November 9, 2006, will be excluded from sharing in the company's distribution of dividend. The liquidators can be reached at: S. J. Parbery A. L. Smith Level 15, 25 Bligh Street Sydney, New South Wales 2000 Australia ================================ C H I N A & H O N G K O N G ================================ BALLY TOTAL: Files Restated Results for 2006 Qtr. Ended June 30 --------------------------------------------------------------- Bally Total Fitness Holding Corporation filed with the Securities and Exchange Commission an amended financial report on Form 10-Q for the quarter ended June 30, 2006, correcting an error in management's discussion and analysis of financial condition and results of operations regarding membership roll forward statistics for the three and six months period ended June 30, 2006, and the related computation of average number of members during the periods. According to the company, as a result of the change in average number of members for the periods, average monthly membership revenue recognized per member and average monthly cash received per member for the periods have been revised as the amounts are derived using average membership in the denominator of the calculation. Restated 2006 Second Quarter Results Bally Total Fitness Holding Corporation's balance sheet at June 30, 2006, showed total assets of US$430,902,000 and total liabilities of US$1,841,195,000 resulting in a total stockholders' deficit of S$1,410,293,000. The company's total stockholders' deficit at Dec. 31, 2005, stood at US$1,463,686,000. The company's June 30 balance sheet also showed strained liquidity with US$46,964,000 in total current assets and US$611,627,000 in total current liabilities. For the three months ended June 30, 2006, the company reported a US$733,000 net loss on US$254,631,000 of net revenues, compared with a US$1,607,000 net income on US$259,617,000 of net revenues for the three months ended June 30, 2005. Full-text copies of the company's financial statements for the three months ended June 30, 2006, are available for free at: http://researcharchives.com/t/s?140c Chicago, Ill.-based Bally Total Fitness Holding Corp. (NYSE: BFT) -- http://www.Ballyfitness.com/-- is a commercial operator of fitness centers, with over 400 facilities located in 29 states, Mexico, Canada, Korea, the Caribbean, and China under the Bally Total Fitness, Bally Sports Clubs, and Sports Clubs of Canada brands. * * * Moody's Investors Service affirmed its junk credit ratings for Bally Total Fitness Holding Corporation, including the company's US$235 million 10.5% senior unsecured notes (guaranteed) due 2011 and US$300 million 9.875% senior subordinated notes due 2007. The rating outlook remains negative. BANTA CORP: S&P Rates US$515 Credit Facilities at BB ---------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB' corporate credit rating to Banta Corp., a Menasha, Wis.-based printing and supply chain management services company. At the same time, Standard & Poor's assigned its 'BB' bank loan rating and '3' recovery rating to the company's US$515 million senior secured credit facilities reflecting S&P's expectation for a meaningful (50%-80%) recovery of principal in the event of a payment default. Proceeds from the bank facilities will be primarily used to fund a US$16 per share cash dividend (about US$388 million), refinance certain existing debt, and for general corporate purposes. In addition, Standard & Poor's placed the ratings on Banta on CreditWatch with negative implications. The CreditWatch placement reflects uncertainties surrounding the offer by Cenveo Corp. to acquire Banta and its related exploration of strategic alternatives to maximize shareholder value, which could extend beyond the special dividend that is being financed with the new bank facilities. The Sept. 14, 2006, announcement by the company that it was paying a special dividend to shareholders followed the receipt of an offer by Cenveo to acquire Banta. Banta's board of directors has turned down both Cenveo's initial offer and revised one, which is set to expire on Oct. 31, 2006. In addition to the special dividend, Banta announced on Oct. 3, 2006, that its board has authorized management, in conjunction with its financial advisor, to explore all potential strategies for further maximizing shareholder value, including, but not limited to, remaining independent, joint ventures, mergers, acquisitions, further return of capital, or the sale of the company. Ratings could be lowered in the event the search for strategic alternatives results in a sizable leveraging transaction. BOMBARDIER INC: Fitch Downgrades Issuer Default Rating to BB- ------------------------------------------------------------- Fitch Ratings has downgraded the debt and Issuer Default Ratings for both Bombardier Inc. and Bombardier Capital Inc.: Bombardier Inc. -- IDR to 'BB-' from 'BB'; -- Senior unsecured debt to 'BB-' from 'BB'; -- Credit facilities to 'BB-' from 'BB'; -- Preferred stock to 'B' from 'B+'. Bombardier Capital Inc. -- IDR to 'BB-' from 'BB'; -- Senior unsecured debt to 'BB-' from 'BB'. The ratings are removed from Rating Watch Negative, where they were placed on Oct. 23 over concerns about potential changes in Bombardier's financial strategy. The Rating Outlook is Stable. Fitch also expects to assign a 'BB-' rating to Bombardier's proposed EUR1.8 billion issuance of senior unsecured bonds. The rating actions listed above are based on the expectation that Bombardier will complete the bond issuance, a related tender offer, and the proposed new letter of credit facility as described in materials distributed by the company. These ratings cover outstanding debt and preferred stock totaling approximately US$4.2 billion, which could rise to more than US$5.0 billion after the pending tender offer and bond issuance are completed. Due to the existence of a support agreement and demonstrated support by the parent, BC's ratings are linked to those of BI. The downgrade is based on what Fitch considers to be a change in Bombardier's financial strategy, which had included plans for significant debt reduction. Fitch's previous ratings had incorporated expectations for debt reduction in fiscal 2007, and possibly in fiscals 2008 and 2009. Bombardier recently announced three financial transactions (EUR1 billion tender for BI and BC debt, EUR1.8 billion bond issuance by BI, and a new LC facility) which will offset most of the approximately US$1 billion of debt reduction achieved so far in fiscal 2007 and will likely defer additional debt reduction to beyond fiscal 2009. The transactions extend debt maturities, resolve some possible covenant pressures in fiscal 2008 and lower Bombardier's LC fees. However, Fitch believes that the transactions will result in Bombardier having higher leverage that is in line with the new rating level. Pro forma for the financial transactions, Fitch estimates that fiscal 2007 consolidated gross leverage (gross debt to EBITDA) will be in the 4.6x-4.9x range. Fitch estimates that consolidated net leverage (net debt to EBITDA) will be in the 2.6x-2.9x range, although Fitch estimates that net leverage will be higher for most of fiscal 2008 due to Bombardier's seasonal working capital needs. After the financial transactions, all debt will be located at BI with the exception of BC's GBP300 million issue due in May 2009 and untendered bonds, if any. The net leverage estimates assume US$1.8 billion- US$2.2 billion of unrestricted cash balances at the end of F2007. Bombardier will also have approximately US$1 billion of restricted cash balances related to the new LC facility. These restricted cash balances are not available for liquidity purposes or for the benefit of unsecured bondholders. Bombardier's unrestricted cash balances will be the company's sole source of liquidity because the new LC facility is not available on a revolving credit basis. Factors supporting the ratings and Outlook include the company's diversification, leading market positions, the health of the business jet and turboprop markets, cash balances, revised debt maturity schedule, Bombardier Transportation's successful restructuring, and large backlog at BT. Concerns include the variability of free cash flow due to order flow at BT and Bombardier Aerospace; continued low margins and free cash flow; the levels of consolidated gross debt compared to EBITDA 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 regional jet concerns, including weak orders, uncertainty regarding development of new aircraft models, and contingent obligations related to past aircraft sales. Previously, Fitch calculated BI's credit metrics on a deconsolidated basis accounting for BC as an equity investment. This methodology was used for several reasons: consistency with the way other industrial companies with sizable finance subsidiaries are evaluated in the credit markets; the size of BC's operations and the amount of BC's outstanding debt; the fact that BC's debt was neither an obligation of BI nor guaranteed by BI; and the calculation of BI's covenants, which excluded BC. Going forward Fitch will calculate Bombardier's credit metrics on a consolidated basis, for these reasons. BC's assets and pro forma debt have declined substantially in the past several years. In addition, Bombardier's covenants will be calculated on a consolidated basis for the new LC facility. Finally, Bombardier revised some of its financial reporting earlier this year, and it now reports only consolidated financial results. 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. CHINA CONSTRUCTION: Zhang Gets 15 Years in Jail ----------------------------------------------- On November 3, 2006, Zhang Enzhao, the former head of China Construction Bank Corp., was sentenced for 15 years in jail after pleading guilty for taking bribes to arrange loans, his lawyer told The China Daily. The sentence was handed down at the Beijing No. 1 Intermediate People's Court, the Xinhua News Agency relates. As reported by the Troubled Company Reporter - Asia Pacific on October 3, 2006, Mr. Zhang pleaded guilty before the Court for taking bribes worth CNY4.15 million to arrange loans. Mr. Zhang, according to the TCR-AP was facing 19 charges on taking cash and property bribes for helping people get loan from the bank. He vacated his post in China Construction in June 2005, citing personal reasons. However, the bank later disclosed Mr. Zhang was suspected of unspecified wrongdoing, the TCR-AP said. * * * The China Construction Bank -- http://www.ccb.cn/-- is one of the "big four" banks in the People's Republic of China. It was founded on October 1, 1954 under the name of "People's Construction Bank of China" and later changed to "China Construction Bank" on March 26, 1996. On August 28, 2006, the Troubled Company Reporter - Asia Pacific reported that Moody's Rating affirmed the bank's A2 long-term deposit rating with a positive outlook and a bank financial strength rating of D- with a stable outlook. At the same time, Moody's has put Bank of America Asia's A1/Prime-1 foreign and Aa3/Prime-1 local currency deposit ratings on review for possible downgrade. In addition, Fitch Ratings affirmed on September 15, 2006, China Construction Bank's long-term foreign currency IDR at A- and Individual Rating at D. COUDERT BROTHERS: Gets Okay to Hire Dunn Koes as Special Counsel ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York allowed Coudert Brothers LLP to employ Dunn Koes LLP as its special counsel, nunc pro tunc to Sept. 22, 2006. As reported in the Troubled Company Reporter on Oct. 4, 2006, Dunn Koes will continue representation of the Debtor in an appeal to a malpractice jury verdict and judgment entered in the matter of Lyman Gardens Apartments, LLC, et al., v. Coudert Brothers LLP, et al. Lyman Gardens Apartments, LLC and Darryl Wong commenced an action in the Superior Court of California for the County of Los Angeles, Case No. BC299990, against Debtor and Ralph Navarro, a partner of the Debtor, asserting certain causes of action for professional negligence/attorney malpractice fraud, breach of fiduciary duty, legal malpractice, fraudulent concealment, and negligence arising from a real estate transaction for which the Lyman Gardens Plaintiffs engaged the services of the Debtor. In June 2006, a jury awarded the Lyman Gardens Plaintiffs approximately US$2.5 million in compensatory and punitive damages against the Debtor. The Debtor's appeal on the Lyman Gardens judgment is currently pending and has not yet been perfected. Pamela Dunn, Esq., a partner at Dunn Koes, tells the Court that the firm's professionals bill: Professional Hourly Rate ------------ ----------- Partners US$275 - US$350 Associates US$250 Paralegal US$110 Ms. Dunn assured the Court that her firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Coudert Brothers LLP was an international law firm 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. The firm had operations in Australia and China. COUDERT BROTHERS: Wants to Hire Yeo Wee as Special Counsel ---------------------------------------------------------- Coudert Brothers LLP asks the U.S. Bankruptcy Court for the Southern District of New York for authority to employ Yeo Wee Kiong Law Corporation as its special counsel, nunc pro tunc to Sept. 22, 2006. Yeo Wee will continue to represent the Debtor in litigation matters pending in Singapore. The firm has worked in a suit involving Oliver Langton Wright and Dan Marjonovic, the Debtor's former partners, who have asserted claims against the Debtor in Singapore. Foo Maw Shen, Esq., a partner at Yeo Wee, tells the Court that the firm's professionals bill: Professional Hourly Rate ------------ ----------- Partners US$350 Associates US$200 Mr. Shen assures the Court that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Mr. Shen can be reached at: Foo Maw Shen, Esq. Yeo Wee Kiong Law Corporation 1 Raffles Place #39-02 OUB Centre Singapore 048616 Coudert Brothers LLP was an international law firm 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. The firm had operations in Australia and China. DAIMLERCHRYSLER AG: Rules Out Sale of Chrysler Unit --------------------------------------------------- DaimlerChrysler AG is not planning to sell its Chrysler division as the U.S.-German carmaker disclosed of an "aggressive" review of the unit, The Financial Times says. Bodo Uebber, DaimlerChrysler's Finance Director, said the company would review all options, including structural changes, to turn around its U.S. unit. Mr. Uebber, however, ruled out a sale or partnership for the Chrysler unit. "DaimlerChrysler reaffirms its previous statements made to the media that there are no plans to sell Chrysler Group," the company said in a statement. "The company appropriately chose not to add to the speculation regarding this topic. However, the resulting coverage and comments made it clear that this 'not-for-sale' statement needed to be reaffirmed." In the third quarter of 2006, Chrysler posted an operating loss of US$1.477 billion, compared with an operating profit of US$393 million in the same period last year. The operating loss, according to a statement by DaimlerChrysler, was primarily the result of a decrease in worldwide factory unit sales, an unfavorable shift in product and market mix, and negative net pricing. "These factors reflect a continuing difficult market environment in the United States as the Chrysler Group faced increased dealer inventory levels from the prior quarter, a shift in consumer demand toward smaller vehicles due to higher fuel prices, and increased interest rates," DaimlerChrysler added. About DaimlerChrysler DaimlerChrysler AG -- http://www.daimlerchrysler.com/-- engages in the development, manufacture, distribution, and sale of various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. DaimlerChrysler has operations in Australia, China, Indonesia, Japan, Korea, Malaysia, and Thailand. The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures - particularly on light trucks - by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. In order to improve the earnings situation of the Chrysler Group as quickly and comprehensively, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well. E. SUN COMMERCIAL: Moody's Keeps D+ Financial Strength Rating ------------------------------------------------------------- On November 1, 2006, Moody's Investors Service has affirmed E. Sun Commercial Bank's D+ bank financial strength rating, Baa2/P- 3 foreign currency deposit ratings, and A1.tw national scale rating, all with a stable outlook. This follows the announcement of its merger with E. Sun Bills Finance Company -- the deceasing entity -- by end-2006, subject to regulatory approval. Meanwhile, E. Sun Financial Holding Company's foreign currency and local currency long-term issuer ratings were affirmed at Baa3, local currency short-term issuer ratings at P-3, national scale issuer rating at A2.tw/TW-2 and national scale sub-debt rating at A3.tw, all with a stable outlook. "These ratings affirmations reflect E. Sun Bills' small scale of business operations compared to E. Sun Bank's, and the fact that we expect a smooth integration following the merger thanks to the substantial amount of pre-merger work already completed," says Cherry Huang, a Moody's VP and Senior Analyst. She notes that E. Sun Bills, another operating subsidiary of E. Sun Holdings, is only a small player in the bills finance sector with assets and capital accounting for only 10% and 16% of E. Sun Bank's assets and capital respectively. "The merger was originally initiated because of redundant and duplicated resources at both entities, including guaranteeing/underwriting of commercial paper, trading of short- term money market instruments and long-term corporate/government bonds. In addition to cost savings on staffing, systems and administration, the merger will align both entities' books for better and more effective risk management and help avoid excessive risk-taking," says Huang. The D+ BFSR and Baa2 deposit rating for E. Sun Bank also take into account the financial implications of the aftermath of the card crisis. As a top 10 consumer lender, E. Sun Bank suffered from the crisis in the same way that the other major issuers did. However, card losses are considered manageable, given that: 1) credit cards and unsecured personal loans (including cash cards) constitute only 5.2% and 3.5% of the bank's loan portfolio respectively as of June 2006; and 2) around 70% of core earnings are from non-card businesses, which will help offset any losses on consumer exposures. Both E. Sun Financial Holding Company Ltd and E. Sun Bank are headquartered in Taipei, Taiwan. They reported assets of NT$688 billion and NT$615.1 billion (approximately US$21.2 billion and US$18.9 billion) as at 1H 2006 respectively. GLOBAL POWER: Has Until Nov. 12 to File Schedules and Statements ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware extend, until Nov. 12, 2006, Global Power Equipment Group Inc. and its debtor-affiliates' period to file their schedules of assets and liabilities and statement of financial affairs. The Debtors tell the Court they were unable to complete their schedules and statements within the provided time under the Bankruptcy Code due to their complex and diverse operations. The Debtors say they need substantial time to gather information form records to prepare the required schedules and statements. The Debtors believe that the extension will provide sufficient time to prepare its requirements. Headquartered in Tulsa, Oklahoma, Global Power Equipment Group Inc. aka GEEG Inc. -- http://www.globalpower.com/-- provides power generation equipment and maintenance services for its customers in the domestic and international energy, power and infrastructure and service industries. The company designs, engineers and manufactures a range of heat recovery and auxiliary equipment primarily used to enhance the efficiency and facilitate the operation of gas turbine power plants as well as for other industrial and power-related applications. The company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai, China; Nanjing, China; and Heerleen, The Netherlands. The company and 10 of its affiliates filed for chapter 11 protection on Sept. 28, 2006 (Bankr. D. Del. Case No 06-11045). Attorneys at White & Case LLP and The Bayard Firm, P.A., represent the Debtors. The Official Committee of Unsecured Creditors appointed in the Debtors' cases has selected Landis Rath & Cobb LLP as its counsel. As of Sept. 30, 2005, the Debtors reported total assets of US$381,131,000 and total debts of US$123,221,000. The Debtors' exclusive period to filed a chapter 11 plan expires on Jan. 26, 2007. GUANGDONG DEVELOPMENT: CBRC Denies Approval of Citigroup Bid ------------------------------------------------------------ The China Banking Regulatory Commission denies reports that Citigroup gets the nod to buy majority control in the Guangdong Development Bank for US$3 billion, The International Herald Tribune reports. The report cites Liu Mingkang, chairman of CBRC, telling reporters that the banking regulator has approved no such deal. On November 1, 2006, Xinhua News cited an insider informing the news agency that Citigroup has won the right to buy a stake in Guangdong Development Bank and the two are expected to sign an agreement to finalize the acquisition soon. "It's false. It's misleading," Mr. Liu said of the report, The International Herald relates. "We haven't gotten any application for the sale of the bank," Mr. Liu noted. The Troubled Company Reporter - Asia Pacific relates that bidding for Guangdong Development began last year when Citigroup formed a consortium that was reported to be seeking majority shares in the bank. According to a report by the TCR-AP on September 14, 2006, the Citigroup consortium offered around US$3 billion for 85% of the bank, where Citigroup will take 40% to 45% of the shares negotiated. Meanwhile Rival bidder, Societe Generale, seeks a 19.9% stake in the bank. SG reduced its target stake from 25% to comply with Chinese regulations capping foreign investment. Chinese regulations currently only allows 25% foreign ownership of a Chinese bank. * * * Guangdong Development Bank -- http://ebank.gdb.com.cn/-- is a bank based in Guangzhou, Guangdong, People's Republic of China. The bank was founded in 1988. Fitch Ratings on August 14, 2006, affirmed Guangdong Development Bank's Individual 'E' and Support '4' ratings. According to Fitch, Guangdong Development Bank's Individual 'E' rating reflects its very weak profitability, large stock of NPLs, low capital and poor disclosure. JORDAN 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 revised its Corporate Family Rating for Jordan Industries Inc. to Caa2 from Caa3, as well as revise its rating on the company's 11.75% Senior Subordinate Disc. Debentures due 2009 to C from Ca. Those debentures were assigned an LGD6 rating suggesting noteholders will experience a 95% loss in the event of default. Additionally, Moody's affirmed 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 ---------- ------- ------- ------ ---------- 10.375% Series B and D Senior Unsecured Notes Due 2007 Ca Ca LGD5 89% 13% Senior 2nd Lien Secured Bonds Caa3 Caa3 LGD4 61% 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 Deerfield, Illinois, Jordan Industries Inc., http://www.jordanindustries.com,thru its subsidiary Kinetec Inc., is a manufacturer of electric motors, gears, gear-boxes, and electronic controls. The company has operations in Europe and China. KINETEK 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 confirmed the Caa1 Corporate Family Rating for Kinetek Industries, Inc., as well as revised the rating on the company's 10.75% Senior Notes due 2006 to Caa2 from Caa3. Those debentures were assigned an LGD4 rating suggesting noteholders will experience a 66% 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$15m 5% Senior Secured Notes Due 2007 B3 B1 LGD2 10% US$11m 10% Senior Secured Notes Due 2007 B3 B1 LGD2 10% 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 Deerfield, Illinois, Kinetek Industries Inc. -- http://www.kinetekinc.com-- is engaged in the design and manufacture of motors, components and control systems. The company has operations in Europe and China. PETROLEOS DE VENEZUELA: Moves Bidding Deadline for Delta Caribe --------------------------------------------------------------- Rafael Ramirez -- the energy and oil minister of Venezuela and the president of Petroleos de Venezuela, the state-run oil firm of Venezuela -- told Business News Americas that the government has extended the bidding deadline for its Delta Caribe round of four offshore natural gas exploration and production licenses. The deadline for the offers were initially set for Oct. 27, BNamericas says, citing Minister Ramirez. Planners will disclose a new deadline in the coming days. Minister Ramirez told BNamericas that some of the 13 firms that purchased bidding rules for the round requested the extension. According to BNamericas, the blocks are in eastern Venezuela near the Plataforma Deltana region that Petroleos de Venezuela is exploring. Chevron and Total were also exploring Plataforma Deltana. Minister Ramirez told BNamericas, "We have started getting word of exploration results in block 4 of Plataforma Deltana, which are extraordinary. The results confirm what we have always though and it's in our interest to attract the companies." BNamericas notes that the ministry invited 34 firms to present bids. These entities bought bidding rules: -- Shell, -- Petroleo Brasileiro SA, -- Teikoku and Mitsubishi, -- Total, -- Chevron, -- Lukoil, -- Hocol, -- ENI, -- ONGC, -- Repsol YPF, -- Statoil, and -- Vinccler Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. * * * Standard & Poor's said on July 17 that it may lower the company's B+ foreign-currency debt rating in part because of the absence of timely financial and operating information. SENSUS METERING: 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 confirmed the B2 Corporate Family Rating for Sensus Metering Systems Inc., as well as revised the rating on the company's US$275 Million 8.625% Senior Subordinate Notes due 2013 to B3 from Caa1. Those debentures were assigned an LGD5 rating suggesting noteholders will experience a 77% loss in the event of default. Additionally, Moody's revised or held 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$40 Mil. Sr. Sec U.S. Revolver due 2009 B2 Ba3 LGD2 23% US$200 Mil. Sr. Sec U.S. term Loan Fac. due 2010 B2 Ba3 LGD2 23% US$30 Mil. Sr. Sec. European TL Fac. due 2010 B2 Ba3 LGD2 23% US$30 Mil. Sr. Sec. European Revolver Due 2009 B2 Ba3 LGD2 23% 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 Raleigh, North Carolina, Sensus Metering Systems Inc. -- http://www.sensus.com/-- is a provider of metering and Automatic Meter Reading (AMR) solutions for water, gas, electric, and heat utilities as well as sub-metering entities worldwide. The company has locations in Germany, Chile and China. SPX CORPORATION: 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 confirmed the Ba1 Corporate Family Rating for SPX Corporation, as well as the Ba2 rating on the company's 7.50% Senior Notes due 2013. Those debentures were assigned an LGD6 rating suggesting noteholders will experience a 96% loss in the event of default. Additionally, Moody's held 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$350 Mil. Sr. Revolver due 2010 Ba1 Ba1 LGD4 53% US$100 Mil. Global Revolver due 2010 Ba1 Ba1 LGD4 53% US$750 Mil. Sr. TL due 2010 Ba1 Ba1 LGD4 53% US$425 Mil. Foreign Trade Facility Due 2010 Ba1 Ba1 LGD4 53% 6.25% Sr. Notes Due 2011 Ba2 Ba2 LGD6 96% 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 Charlotte, North Carolina, SPX Corporation -- http://www.spx.com/-- manufactures pumps, valves, metering and mixing solutions, air filtration and dehydration products, special service tools, diagnostic systems and testing equipment, cooling towers, air-cooled condensers, boilers and residential heating products, TV and radio broadcast antennas, power transformers, high-tech die-castings and products for loading docks. The company has operations in China and Germany. SWIFT & COMPANY: Names Raymond Silcock as EVP and CFO ----------------------------------------------------- Swift & Company has named Raymond P. Silcock as executive vice president and chief financial officer. Mr. Silcock, who will join the company on Nov. 6, 2006, served as executive vice president and chief financial officer of Toronto-based private label soft drink manufacturer Cott Corporation from 1998 to 2005 and prior to that was chief financial officer of Delimex, a San Diego-based frozen food maker, from 1997 to 1998. Previously at Campbell Soup Company from 1979 to 1997, he held various management positions, including most recently vice president-finance, Bakery and Confectionary Division. Mr. Silcock holds an MBA from the Wharton School of the University of Pennsylvania and is a Fellow of the Chartered Institute of Management Accountants (U.K.). Swift & Company President and CEO Sam Rovit said, "Ray's addition enhances the capabilities of our already strong management team. He is a seasoned and well-rounded finance professional with extensive experience in the global food and beverage industry. "His successful track record of significantly improving sales and earnings through effective strategic planning and operational execution will benefit Swift in our drive to become the best provider of red meat in the world. We are very pleased to have Ray join the Swift team." Bill Trupkiewicz, acting CFO since February 2006, will continue with Swift & Company as senior vice president, corporate controller, and chief accounting officer. Mr. Rovit added, "We are grateful for Bill Trupkiewicz's outstanding performance as acting chief financial officer over the past eight months. His efforts, and those of the entire finance team, supported the execution of our operational excellence initiatives during the recent beef peak demand season." About Swift & Company Swift & Company -- http://www.swiftbrands.com/-- provides quality beef and pork products to consumers in the United States. The company has foreign sales offices in Hong Kong, Japan, Mexico, South Korea, China, and Taiwan. 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 U.S. Consumer Products sector, the rating agency confirmed its B2 Corporate Family Rating for Swift & Company. In addition, Moody's affirmed its probability-of-default ratings and assigned loss-given-default ratings to these notes: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$257.26 million 10.125% Gtd. Global Notes Due Oct. 1, 2009 B3 B3 LGD4 61% US$150 million 12.500% Sr. Sub. Global Notes Due Jan. 1, 2010 Caa1 Caa1 LGD5 77% SWIFT & COMPANY: 1st Fiscal Qtr. Net Sales Rose to US$2.59 Bil. --------------------------------------------------------------- Swift & Company reported net sales of US$2.59 billion for its fiscal first quarter ended Aug. 27, 2006, up 7.7% from net sales of US$2.40 billion in the comparable prior-year period. The company's net sales increase reflects an 11.6% net sales gain in Swift Beef, a 4.5% net sales increase in Swift Pork, and a 0.6% net sales decline in Swift Australia. Swift Australia net sales were adversely affected by a 1.2% decrease in the Australian dollar to U.S. dollar exchange rate compared to the prior-year period. The company's first-quarter EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) was US$53 million, up 83.9% from US$29 million in the prior-year period. EBITDA increases in Swift Beef were somewhat offset by declines in Swift Australia and Swift Pork. At the end of the fiscal first quarter, the company's borrowing capacity under its US$550 million revolving credit facility stood at US$254 million. The company ended the first quarter with US$55 million of cash on hand and US$824 million of total debt outstanding. "Our strategy delivered results this past quarter," Swift & Company's president and chief executive officer Sam Rovit said. "The implementation of Swift's operational excellence initiatives and improved U.S. beef commodity market conditions combined to produce the best first quarter in Swift Beef since the enactment of export bans in December of 2003. "Swift Pork performed more in line with historical profitability averages, as expected, and Swift Australia's performance continues to be held back by livestock supply constraints driven by unfavorable finishing pasture conditions." Mr. Rovit added, "I am extremely proud of the efforts of our 20,000 global employees this past quarter. We worked as a team to execute against a sound strategic plan first established over a year ago. "While we are encouraged by our first-quarter results, we recognize that a full U.S. beef market recovery may take some time to play out. "Looking ahead, we intend to maintain our focus on Swift Beef as we continue to identify and implement improvement initiatives in our Pork and Australia business segments." Swift Beef Swift Beef's fiscal first quarter net sales increased 11.6% to US$1.57 billion compared to US$1.40 billion in the prior-year period. Selling price increases of 2.7% were accompanied by volume increases of 8.7% as both domestic product demand and cattle supplies improved over the prior-year period. Swift Beef's fiscal first quarter EBITDA increased to US$36 million from US$4 million in the prior-year period. The EBITDA improvement reflects an 11.6% increase in net sales reflecting the selling price and volume increases noted above, with nominally higher raw material costs per unit partially offsetting the increase in selling prices per unit. EBITDA in the current year was also impacted by increases in freight costs due to higher fuel surcharges from common carriers coupled with higher packaging costs, partially offset by lower utility costs. Selling, general, and administrative costs were lower year over year, principally reflecting lower professional fees, partially offset by increased incentive accruals based on improved Company performance. Swift Pork Swift Pork's fiscal first quarter net sales increased 4.5% to US$546 million compared to US$523 million in the prior-year period. Average selling prices increased 0.8% while sales volumes increased by 3.7%. Increases in selling prices were attributable to stronger-than- usual seasonal demand for pork both domestically and internationally as beef continued to provide a price umbrella for pork products. Swift Pork's fiscal first quarter EBITDA declined to US$12 million from US$16 million in the comparable prior-year period. The decline primarily reflected sales volume increases that were more than offset by increases in transportation because of higher fuel surcharges and packaging costs, coupled with certain one-time professional fees and consulting costs related to strategic initiatives incurred in the current year. Swift Australia Swift Australia's fiscal first quarter net sales decreased 0.6% to US$482 million compared to US$485 million in the prior-year period. Average selling prices remained flat and sales volumes declined 0.7%. The decrease in net sales mainly resulted from volume declines in the grass-fed business related to tighter cattle supplies resulting from a longer time required for cattle to reach market weights. Net sales were adversely affected by a 1.2% decrease in the Australian dollar to U.S. dollar exchange rate compared to the prior-year period. Swift Australia's fiscal first quarter EBITDA declined to US$5 million from US$9 million in the comparable prior-year period. The decline primarily reflected decreased gross margin principally in the grass-fed business related to increases in livestock costs, coupled with slightly lower volumes and nominally flat sales prices. In addition, EBITDA was negatively impacted by higher hourly labor, packaging, utility costs, and certain one-time professional fees and consulting costs related to strategic initiatives incurred in the current year. About Swift & Company Swift & Company -- http://www.swiftbrands.com/-- provides quality beef and pork products to consumers in the United States. The company has foreign sales offices in Hong Kong, Japan, Mexico, South Korea, China, and Taiwan. 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 U.S. Consumer Products sector, the rating agency confirmed its B2 Corporate Family Rating for Swift & Company. In addition, Moody's affirmed its probability-of-default ratings and assigned loss-given-default ratings to these notes: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$257.26 million 10.125% Gtd. Global Notes Due Oct. 1, 2009 B3 B3 LGD4 61% US$150 million 12.500% Sr. Sub. Global Notes Due Jan. 1, 2010 Caa1 Caa1 LGD5 77% SUPERIOR ESSEX: 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 confirmed the B2 Corporate Family Rating for Superior Essex Communications LLC, as well as the B3 rating on the company's US$257.1 Million 9.% Senior Unsecured Notes due 2012. Those debentures were assigned an LGD5 rating suggesting noteholders will experience a 76% loss in the event of default. Moody's explains that current long-term credit ratings are opinions about expected credit loss which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). Headquartered in Atlanta, Georgia, Superior Essex Communications LLC -- http://www.superioressex.com/-- is a manufacturer of data communications, cables magnet wire, winding wire and electrical insulations. The company has operations in China, Mexico, and France. WOLVERINE TUBE: 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 confirmed the Caa1 Corporate Family Rating for Wolverine Tube Inc., as well as the Caa2 ratings on the company's 7.375% Senior Unsecured Notes due 2008 and the 10.5% Senior Unsecured Notes due 2009. Those debentures were assigned an LGD4 rating suggesting noteholders will experience a 61% loss in the event of default. Moody's explains that current long-term credit ratings are opinions about expected credit loss which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). Headquartered in Huntsville, Alabama, Wolverine Tube Inc. -- http://www.wlv.com/-- manufactures copper and copper alloy tube, fabricated products, brazing alloys, fluxes and lead-free solder. The company has operations in China and the U.K. ======= F I J I ======= * S&P Places Fiji Islands'S Long-Term Ratings On Watch Negative ---------------------------------------------------------------- On November 2, 2006, Standard & Poor's Ratings Services placed its 'BB-' foreign currency and 'BB' local currency long-term sovereign credit ratings on the Republic of Fiji Islands on CreditWatch with negative implications following the continued deterioration in the country's security situation. "The action reflects the continuing decline in relations between the government of Prime Minister Laisenia Qarase and the leader of Fiji's military Commodore Bainimarama," said Standard & Poor's credit analyst Kyran Curry of the Sovereign Ratings group. Recent statements from the military leaders that the government is creating a "situation of violence" by involving the Great Council of Chiefs to promote dialogue heightens the risk of a coup. Adding to the escalating tensions, Police Commissioner is understood to have authorized the arrest of Commodore Bainimarama on treason charges on his return from the Middle East. "The CreditWatch would be resolved pending a clear view of the impact of the impasse on the economy and foreign reserves," Mr. Curry said. An affirmation of the ratings and removal from CreditWatch would require a significant easing of the current political tensions and an assessment of minimal economic impact. Conversely, an escalation of the tensions could result in a one- notch downgrade to the foreign currency and local currency ratings on Fiji. If significant uncertainty remained, Fiji could remain on CreditWatch negative. The 'BB-' foreign currency and 'BB' local currency counterparty credit ratings on the Fiji Development Bank have also been placed on CreditWatch negative. The ratings on FDB reflect its status as Fiji's official development bank and the bank's close relationship and guaranteed support of the government of Fiji. ========= I N D I A ========= FEDERAL BANK: Fitch Assigns 'D' Individual Rating ------------------------------------------------- Fitch Ratings changed the Outlook on the National Long-term rating of The Federal Bank Limited to Positive from Stable. At the same time, the agency assigned 'A+(ind)' National rating to FBL's proposed INR4.5-billion subordinated debt programme. The agency also assigned an Individual rating of 'D' to FBL. Fitch also affirmed FBL's National Long-term rating at 'A+(ind)', the existing rating of INR1.5bn subordinated debt at 'A+(ind)' and Support rating at '5'. The revision of the Outlook reflects the improved capital and asset quality ratios of the bank. FBL was the first 'old' private bank to raise equity from the international market in FY06 through a Global Depository Receipts issue of INR3.5bn listed on the London Stock Exchange. This helped to strengthen the capital adequacy ratio to 13.8% (Tier 1: 9.7%). Furthermore, aggressive provisioning helped FBL to improve its net non-performing loans ratio to 0.95% as at FYE06 from 4.95% as at FYE03. The net NPL ratio and net NPL to equity ratio are now at the system medians. FBL also recorded a turnaround in profitability in FY06 in spite of a decline in income from trading in government securities on the back of steady net interest margins and loan growth as well as lower provision for diminution in investments. Sustained performance during the next one or two years could result in an upgrade of the National ratings. While the gross NPLs decreased by more than INR1 billion in FY06 on the back of aggressive write-offs and recoveries, FBL has started the process of migrating to a 'core banking software' to improve its risk management systems as well as scalability of the operations. The provision for diminution in investments declined due to reduced size of 'available-for-sale' portfolio but the agency notes that the duration of the portfolio continues to be high and makes the reported profit vulnerable to sharp rises in interest rates. FBL is one of the larger 'old' private sector banks with total assets of INR206bn as at FYE06. FBL's existing branch network (472 branches, more than 70% of which are based in the home state of Kerala) will be supplemented by addition of 32 branches of the troubled Ganesh Bank of Kurundwad. The asset quality ratios are not expected to be affected by the merger due to the small size of GBK (equal to about 1% of FBL in terms of assets). NOVELL INC: Amends 0.5% Sr. Debenture Consent Solicitation ---------------------------------------------------------- Novell, Inc., has amended and extended its solicitation of consents from the holders of its 0.50% convertible senior debentures due 2024 (CUSIP Nos. 670006AB1 and 670006AC9). The purpose of the consent solicitation is to obtain consent to amend certain provisions of the indenture pursuant to which the debentures were issued and to obtain a waiver of rights to pursue remedies available under the indenture with respect to certain alleged defaults thereunder with respect to covenants regarding Novell's filing of periodic reports with the Securities and Exchange Commission. Under the terms of the amended consent solicitation: -- Holders of record of debentures as of 5:00 p.m., New York City time, on Oct. 16, 2006, who validly deliver and do not revoke their consents prior to 5:00 p.m., New York City time, on Nov. 2, 2006, will receive a one-time consent fee for each US$1,000 in principal amount of debentures with respect to which consents are received equal to the product of US$57.50 multiplied by a fraction, the numerator of which is the aggregate principal amount of debentures outstanding on the Expiration Date and the denominator of which is the aggregate principal amount of debentures as to which Novell received and accepted consents. -- The amendments to the indenture as to which consents are solicited will provide Novell until May 31, 2007, to comply with Reporting Covenants under the indenture. The consent solicitation was previously scheduled to expire at 5:00 p.m., New York City time, on Oct. 30, 2006. All other terms of the consent solicitation with respect to debentures as set forth in Novell's consent solicitation statement, dated Oct. 17, 2006, remain applicable. Novell has issued a Supplemental Consent Solicitation Statement that reflects the foregoing changes. The Supplemental Consent Solicitation Statement is available for review by all debentureholders and may be obtained from the information agent. Novell advises all debentureholders to review the section entitled "Certain United States Federal Income Tax Considerations," which has been amended to reflect important considerations respecting the U.S. federal income tax consequences of the consent solicitation as currently structured. Novell reserves the right to further amend the consent solicitation for the debentures or extend the expiration time in its sole discretion. All holders of the debentures who have previously delivered consents may withdraw their consents as described in the Supplemental Consent Solicitation Statement. Such holders who do not wish to withdraw their consents do not need to redeliver such consents or take any other action in response to this extension. Citigroup Corporate and Investment Banking is serving as the solicitation agent for the consent solicitation. Questions regarding the consent solicitation may be directed to: Citigroup Corporate and Investment Banking Tel: (800) 558-3745 (toll-free) (212) 723-6106 The information agent for the consent solicitation is Global Bondholder Services Corp. Requests for copies of the Supplemental Consent Solicitation Statement and related documents may be directed to: Global Bondholder Services Corporation Tel: (866) 794-2200 (toll- free) (212) 430-3774 About Novell Novell, Inc. -- http://www.novell.com/-- delivers Software for the Open Enterprise. With more than 50,000 customers in 43 countries, Novell helps customers manage, simplify, secure and integrate their technology environments by leveraging best-of- breed, open standards-based software. The company also has offices in Australia, China, Hong Kong, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan, Thailand and India. NOVELL: Promotes Tom Francese to Exec. VP for Worldwide Sales ------------------------------------------------------------- Novell promoted Tom Francese, president of Novell EMEA, to the position of executive vice president for worldwide sales. Mr. Francese, a proven industry veteran who joined Novell in Oct. 2005 after serving as vice president of IBM's software business in Europe, will assume responsibilities for Novell sales, channel and alliances activities around the globe. He will continue to serve as president of Novell EMEA. "Few executives in the software industry can match Tom in experience, results, and leadership," said Ron Hovsepian, president and CEO of Novell. "Tom's done a great job in getting our business in EMEA back on a growth track, and he's got the vision and skills to drive similar results for us globally. Tom's deep background in the partnering world will help us further grow the partner ecosystem around Novell's Linux* and IT management offerings, a critical factor for our future success." Mr. Francese brings more than 30 years of technology industry experience to his new role. A long-time IBM veteran, Francese held positions in sales, sales management and operations, including vice president, Software Group Sales for Europe, Middle East and Africa, vice president, central region in the Americas, vice president, Tivoli Worldwide Financial Services Industry Sales, vice president, Worldwide Sales and Support, Networking Computing Software, and director of Enterprise Sales, London. Mr. Francese's career started with IBM in 1974 as a sales account manager in Houston, Texas. "Novell is at a tremendously exciting time in its storied history, as we move aggressively to stake out a leadership position in the rapidly growing Linux and security, identity and systems management markets," said Mr. Francese. "We're focused on the right markets, and we have the right technologies, the right vision and strategy, and, most importantly, the right people to execute on our strategy. I'm looking forward to driving sales execution in our key markets around the globe, and working with partners to reach an even broader market for Novell's solutions." About Novell Novell, Inc. -- http://www.novell.com/-- delivers Software for the Open Enterprise. With more than 50,000 customers in 43 countries, Novell helps customers manage, simplify, secure and integrate their technology environments by leveraging best-of- breed, open standards-based software. The company also has offices in Australia, China, Hong Kong, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan, Thailand and India. ORIENTAL BANK: Reports 51% Growth in 3rd Quarter 2006 Profit ------------------------------------------------------------ Oriental Bank of Commerce's net profit sharply rose by 51% to INR2.495 billion for the three months ended September 30, 2006, from the INR1.653 billion in the corresponding period last year. The Bank's total income rose to INR14.401 billion in the September 2006 quarter from INR11.789 billion in the September 2005 quarter. Oriental Bank says that there was just slight movement in the expenses. The Bank's operating expenses for the third quarter of 2006 totaled INR2.566 billion, just 2.5% more than the INR2.501 billion reported for the corresponding period last year. Other operating expenses for the September 2006 quarter rose to INR1.523 billion from September 2005 quarter's INR1.064 billion. A full-text copy of Oriental Bank's financial results for the quarter ended September 30, 2006, is available for free at its Web site http://www.obcindia.com/FinResQly_0906.pdf About Oriental Bank of Commerce Headquartered in New Delhi, India, Oriental Bank of Commerce -- http://www.obcindia.com/-- is a scheduled commercial bank. The company's domestic services include deposits, comprised of term deposits, savings accounts, current accounts and the Suvidha deposit scheme; advances, which consist of corporate advances, a range of retail credit products and specialty schemes, and government business, comprised of direct tax collection, pension disbursement and savings bonds. It also provides non-resident Indian banking solutions, including non-resident external accounts, non-resident ordinary accounts, foreign currency non- resident accounts and resident foreign currency accounts. It also offers debit card services. The bank also provides treasury services and merchant banking services. The bank has introduced products and services, such as Anywhere Branch Banking, Cash Management Service, Telebanking, automated teller machines and Internet banking through select branches. During the fiscal year ended March 31, 2006, the Bank had a total of 1,148 branches. * * * The Troubled Company Reporter - Asia Pacific reported on August 21, 2006, that Fitch Ratings assigned a long-term foreign currency issuer default rating of BB+ to Oriental Bank of Commerce. The Bank's individual and support ratings have been affirmed at C/D and 4, respectively. The outlook on the ratings is stable. RELIANCE INDUSTRIES: To Roll Out Fruit & Vegetable Chain -------------------------------------------------------- Reliance Industries Limited will roll out a fruit and vegetable chain called Reliance Fresh, Reuters says, citing a Financial Times report. According to the FT report, Reliance Fresh is part of Reliance Industries' planned five to six billion retail network. The stores, which would be located near supplier farms, is expected to initially sprout in Andhra, Pradesh, Punjab and West Bengal, Reuters relates. Reliance Chairman Mukesh Ambani explained to the FT in an interview that the store will be more of a neighborhood store than a hypermarket. About Reliance Industries Reliance Industries Limited -- http://www.ril.com/-- is engaged in the exploration and production sector. The company is organized into three major business segments, which include Exploration and Production of oil and gas; Refining and Marketing of petroleum products, and Petrochemicals, including the manufacturing and marketing of polymers, polyester, polyester intermediates and chemicals. RIL's operations capture value addition at every stage, from the production of crude oil and gas to polyester, polymer and chemical products, and finally to the production of textiles. RIL also has exploration and production interests in India, Yemen and Oman. The company operates mainly in India but has business activities and customers in more than 100 countries around the world. Fitch Ratings gave Reliance Industries Ltd's foreign currency long-term debt, long-term issuer default and local currency long-term debt BB+ ratings effective on December 15, 2005. Moody's Investors Service gave the company 'Ba2' long-term corporate family, issuer, and senior unsecured debt ratings effective March 17, 2005. RELIANCE INDUSTRIES: Considers Raising US$2 Bil. For Investment --------------------------------------------------------------- Reliance Industries Ltd plans to raise US$2 billion via a syndicated loan, or issuance of fixed or floating bonds or foreign currency convertible bonds, the company informs the Bombay Stock Exchange in a regulatory filing. To consider the matter, the company's board of directors will hold a meeting on November 9, 2006. According to Reliance Industries, it will use the funds for investment in oil and gas exploration projects, and production business. About Reliance Industries Reliance Industries Limited -- http://www.ril.com/-- is engaged in the exploration and production sector. The company is organized into three major business segments, which include Exploration and Production of oil and gas; Refining and Marketing of petroleum products, and Petrochemicals, including the manufacturing and marketing of polymers, polyester, polyester intermediates and chemicals. RIL's operations capture value addition at every stage, from the production of crude oil and gas to polyester, polymer and chemical products, and finally to the production of textiles. RIL also has exploration and production interests in India, Yemen and Oman. The company operates mainly in India but has business activities and customers in more than 100 countries around the world. Fitch Ratings gave Reliance Industries Ltd's foreign currency long-term debt, long-term issuer default and local currency long-term debt BB+ ratings effective on December 15, 2005. Moody's Investors Service gave the company 'Ba2' long-term corporate family, issuer, and senior unsecured debt ratings effective March 17, 2005. RELIANCE INDUSTRIES: Amends Deepwater Block Development Plan ----------------------------------------------------------- Reliance Industries Limited filed an amendment to the initial development plan for the Deepwater Block KG-DWN-98/3 (referred to as KG-D6), with the Director General of Hydrocarbon for approval. The Deepwater Block KG-DWN-98/3 in Krishna - Godavari Basin off the East coast of India in Bay of Bengal was awarded to Reliance Industries Limited and NIKO Resources Limited, Calgary, Canada under NELP-1 bidding round. RIL, as operator of the block holds 90% of the participating interest and NIKO the remaining 10%. The block covers an area of 7,645 square kilometers and its north-western boundary is about 40-60 kms southeast of Kakinada in Andhra Pradesh. Water depth in the block ranges up to 2700 meters. RIL made the world's largest gas discovery in 2002 in this block. Based on the initial reserve estimates of the block RIL prepared an Initial Development Plan for developing two discoveries Dhirubhai 1 and Dhirubhai 3 in the block. The Initial Development Plan envisaged production plateau of 40 mmscmd. The Initial Development Plan was submitted to the DGH in May 2004 and was approved in November 2004. Subsequent to the approval of the Initial Approved Development Plan for Dhirubhai 1 and Dhirubhai 3 gas fields, a lot of exploratory work has been done in the block to assess the overall hydrocarbon potential and the recoverable reserves in these fields. This includes acquisition of additional 3D seismic data, drilling of additional exploratory wells resulting in 13 discoveries and extensive coring of two development wells. RIL has also obtained independent assessment of 2P reserves for the Dhirubhai-1 and Dhirubhai-3 gas discoveries at 11.3 TCF which is almost double of the earlier estimates. In view of the significantly higher hydrocarbon potential and large projected deficit of gas demand, RIL has sought approval for the following: 1. Increase in production rate from 40 mmscmd to 80 mmscmd; and 2. Enhanced facilities for production, collection, evacuation and handling of gas, both onshore and offshore. The revised estimate of capital expenditure for the enhanced production profile is approximately US$5.2 billion. Despite the increase in production rate, the project is on schedule for first gas by second half 2008 to 2009. This project is the first deepwater gas development project in India and on commissioning would be among the largest and most complex deepwater gas production system in the world. This project will be completed in about 6 years from the first discovery making it amongst the fastest deepwater gas developments in the world. The gas production from KGD6 further fortifies Reliance's commitment to provide India towards greater energy security in view of the existing energy deficit. The increased production would double the current indigenous gas availability in the country. The production rate of 80 mmscmd is equivalent to 450,000 barrels of oil equivalent per day, which is about 25% of the current oil import in the country. This would substantially improve the balance of payment situation that is worsening on account of oil imports. The Board of Directors of RIL will review the project and its financing plan on November 9, 2006. The Board will examine various funding options including project financing debt, convertible bonds or other hybrid instruments to achieve the optimal financing for this project. About Reliance Industries Reliance Industries Limited -- http://www.ril.com/-- is engaged in the exploration and production sector. The company is organized into three major business segments, which include Exploration and Production of oil and gas; Refining and Marketing of petroleum products, and Petrochemicals, including the manufacturing and marketing of polymers, polyester, polyester intermediates and chemicals. RIL's operations capture value addition at every stage, from the production of crude oil and gas to polyester, polymer and chemical products, and finally to the production of textiles. RIL also has exploration and production interests in India, Yemen and Oman. The company operates mainly in India but has business activities and customers in more than 100 countries around the world. Fitch Ratings gave Reliance Industries Ltd's foreign currency long-term debt, long-term issuer default and local currency long-term debt BB+ ratings effective on December 15, 2005. Moody's Investors Service gave the company 'Ba2' long-term corporate family, issuer, and senior unsecured debt ratings effective March 17, 2005. RPG LIFE: Terminates Hindustan Antibiotics Lease Agreements ----------------------------------------------------------- Pursuant to a settlement pact, lease agreements that RPG Life Sciences Ltd entered into with Hindustan Antibiotics Ltd are terminated effective February 15, 2006. RPG decided to terminate the leases and the related agreements after determining that the move could save them about INR4.80 crore per year. The leases, absent the settlement pact, would have otherwise remained in force until December 2015. About RPG Life Sciences Headquartered in Mumbai, India, RPG Life Sciences Ltd -- http://www.rpglifesciences.com/-- is a full spectrum, world class, customer focused, innovative pharmaceutical organization. Formerly known as Searle (India) Ltd., the company develops, manufactures and markets, for national and international markets, a broad range of branded formulations, generics and bulk drugs developed through fermentation and chemical synthesis routes. On April 17, 2003, Credit Analysis and Research Limited downgraded the rating of the outstanding NCD program of INR145.5 million of RPG Life Sciences rating from CARE BBB to CARE D. The downgrade is on account of default in debt servicing obligations towards institutional investors. STATE BANK OF INDIA: Net Profit Slightly Lowers to INR11.8 Bil. --------------------------------------------------------------- State Bank of India Ltd's net profit for the quarter ended September 30, 2006, decreases to INR11.845 billion from INR12.154 billion in the quarter ended September 30, 2005. Total Income for the September 2006 quarter, however, rose 9.6% to INR108.112 billion from the corresponding period last year of INR98.560 billion. The bulk of the income for the September 2006 quarter comes from Interest Earned Operating Income of INR93.775 billion. The Bank's 3rd quarter 2006 operating expenses of INR28.598 billion was actually lower than that of the corresponding quarter last year of INR29.197 billion. The dip in net profit could be attributed to higher interest expense (INR54.788 billion), other operating expenses (INR9.051 billion) and the INR6.067 billion in income taxes for September 2006. For the September 2005 quarter, the Bank enjoyed a tax refund of INR499.8 million. About State Bank of India State Bank of India Ltd -- http://www.sbi.co.in/-- is the oldest and largest bank in India. SBI, along with its associate banks, offers a wide range of banking products and services across client markets. In 2005-06, SBI has embarked on implementing a business process re-engineering project to enhance customer service and profitability levels. The bank has branches in Bahrain, Japan, Mauritius and the United States. * * * The Troubled Company Reporter - Asia Pacific reported on April 21, 2006, that Fitch Ratings has affirmed State Bank of India's Long-term Issuer Default rating at BB+, Short-term rating at "B", Individual rating at "C" and Support rating at '3'. The outlook on the ratings is stable. Additionally, Standard and Poor's Rating Service gave State Bank of India a BB+ long-term foreign issuer credit rating on February 2, 2005. Moody's Investors Service placed a Ba2/Not Prime rating on State Bank of India's foreign currency bank deposits, a Ba2/Not Prime rating on its domestic currency bank deposits, and a D Bank Financial Strength Rating in June 2006. ================= I N D O N E S I A ================= AVNET INC: Moody's Assigns Loss-Given-Default Ratings ----------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. technology semiconductor and distributor sector, the rating agency affirmed its Ba1 corporate family rating on Avnet, Inc. Additionally, Moody's held its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$400MM 8.00% Sr. Unsecured Notes due 2006 Ba1 Ba1 LGD3 49% US$250MM 6.00% Sr. Unsecured Notes due 2015 Ba1 Ba1 LGD3 49% US$300MM 6.625% Sr. Unsecured Notes due 2016 Ba1 Ba1 LGD3 49% US$300MM 2.00% Convertible Sr. Debentures due 2034 Ba1 Ba1 LGD3 49% Shelf - Sr. Unsecured (P)Ba1 (P)Ba1 LGD3 49% Shelf - Subor. (P)Ba2 (P)Ba2 LGD6 97% 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%). Avnet, Inc., headquartered in Phoenix, Arizona, is one of the largest worldwide distributors of electronic components and computer products, primarily for industrial customers. Revenues for the fiscal year ended July 1, 2006 were US$14.3 billion. It has operations in the following Asia-Pacific countries: Indonesia, Australia, China, Hong Kong, India, Japan, Malaysia, New Zealand, Philippines and Singapore. GENERAL NUTRITION: 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 US & Canadian Retail sector, the rating agency confirmed its B2 Corporate Family Rating for General Nutrition Centers, Inc. Additionally, Moody's revised and held its probability-of- default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$75MM Gtd. Sr. Sec. Revolver B1 Ba2 LGD1 4% US$96.2MM Gtd. Sr. Sec. Term Loan B B1 Ba2 LGD2 13% US$150MM 8.625% Gtd. Senior Notes B3 B1 LGD3 40% US$215MM 8.5% Gtd. Sr. Sub. Notes Caa1 Caa1 LGD5 81% Moody's explains that current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). Pittsburgh, Pennsylvania-based General Nutrition is a subsidiary of GNC Corp. -- http://www.gnc.com/-- a specialty retailer of health and wellness products, including vitamins, minerals, herbal, and specialty supplements (VMHS), sports nutrition products and diet products. The company sells its products through a worldwide network of more than 5,800 locations operating under the GNC brand name and operates in three business segments: retail, franchise and manufacturing/wholesale. GNC's Asian operations include those in Indonesia and the Philippines. GOODYEAR TIRE: Closing Tire Manufacturing Plant in Tyler, Texas --------------------------------------------------------------- The Goodyear Tire & Rubber Company reports the planned closure of its tire manufacturing facility in Tyler, Texas, as part of its previously announced strategy to exit certain segments of the private label tire business. At the time of its June private label announcement, Goodyear said that the decision would require a corresponding reduction in North American Tire's manufacturing capacity and that plant performance, capabilities, cost savings opportunity and the focus on serving NAT customers would dictate capacity reduction. "We must take the steps necessary to reduce our costs and improve our competitive position," said Jon Rich, president, North American Tire. "While this is an extremely difficult decision for everyone involved, it was required to help turn around our North American business." Rich said the timing of the action would be coordinated to minimize the impact on Goodyear's customers. Goodyear previously announced to investors an aggressive strategy to reduce costs by more than US$1 billion by 2008, including reduction in high-cost tire manufacturing capacity. The Tyler plant principally produces small diameter passenger tires, a segment that has been under considerable pressure from low cost imports. The action is expected to eliminate about 1,100 positions, create annual savings of approximately US$50 million after tax, and result in a restructuring charge of between US$155 million and US$165 million after tax. The cash portion of these charges is estimated to be between US$40 million and US$50 million. Opened in 1962, the plant has produced approximately 25,000 passenger and light truck tires per day. About Goodyear Tire 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 Australia, China, India, 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. * * * Standard & Poor's Ratings Services placed its 'B+' corporate credit rating on Goodyear Tire & Rubber Co. on CreditWatch with negative implications because of the potential for business disruptions and earnings pressures that could result from the ongoing labor dispute at some of its North American operations. Fitch Ratings has placed Goodyear Tire on Rating Watch Negative. Goodyear's debt and recovery ratings are: -- Issuer Default Rating (IDR) 'B'; -- US$1.5 billion first lien credit facility 'BB/RR1'; -- US$1.2 billion second lien term loan 'BB/RR1'; -- US$300 million third lien term loan 'B/RR4'; -- US$650 million third lien senior secured notes 'B/RR4'; -- Senior Unsecured Debt 'CCC+/RR6'. Goodyear Dunlop Tires Europe B.V. (GDTE) -- US$EUR505 million European secured credit facilities 'BB/RR1'. The Troubled Company Reporter - Asia Pacific reported on Nov. 1, 2006, that 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. Automotive and Equipment sectors, the rating agency confirmed its B1 Corporate Family Rating for Goodyear Tire. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given- default ratings on these loans and bond debt obligations: Issuer: The Goodyear Tire & Rubber Company Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- First Lien Credit Facility Ba3 Ba1 LGD 2 10% Second Lien Term Loan B2 Ba3 LGD 3 35% Third Lien Secured Term Loan B3 B2 LGD 4 63% 11% Senior Secured Notes B3 B2 LGD 4 63% Floating Rate Senior Secured Notes B3 B2 LGD 4 63% 9% Senior Notes B3 B2 LGD 4 63% 6-5/8% Senior Notes B3 B3 LGD 6 94% 8-1/2% Senior Notes B3 B3 LGD 6 94% 6-3/8% Senior Notes B3 B3 LGD 6 94% 7-6/7% Senior Notes B3 B3 LGD 6 94% 7% Senior Notes B3 B3 LGD 6 94% Senior Unsecured Convertible Notes B3 B3 LGD 6 94% Issuer: Goodyear Dunlop Tires Europe B.V. Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- Euro Revolving Credit Facilities B1 Ba1 LGD 2 10% Euro Secured Term Loan B1 Ba1 LGD 2 10% INCO LTD: CVRD Brings In New Board Following Purchase Completion ---------------------------------------------------------------- Following the acquisition by CVRD Canada Inc. of 174,624,019 of Inco Limited's common shares, representing approximately 75.66% of Inco's issued and outstanding common shares, each of the members of Inco's Board of Directors has resigned, with the exception of Scott Hand. CVRD Canada is a wholly owned indirect subsidiary of Companhia Vale do Rio Doce, The vacancies left by the departure of the incumbent directors have been filled with CVRD nominees Roger Agnelli (Chief Executive Officer, CVRD), Jose Auto Lancaster Oliveira (Executive Director, Non-Ferrous Minerals, CVRD), Murilo Pinto de Oliveira Ferreira (Executive Director, Equity Holdings and Business Development, CVRD), Fabio de Oliveira Barbosa (Chief Financial Officer, CVRD), Gabriel Stoliar (Executive Director, Planning, CVRD) and independent directors Michael Phelps, Mel Leiderman, Stephen Wallenstein and Stanley Greig. Roger Agnelli will serve as chair of the Board of Directors. CVRD Canada has asked incumbent Inco Chief Executive Officer, Scott Hand, to remain with Inco to help oversee operations during the transition period. Inco also reported that it intends to withdraw its common shares from listing on the New York Stock Exchange and from registration under Section 12(b) of the U.S. Securities Exchange Act of 1934, as amended. Inco expects that the delisting will become effective in 20 days and that the deregistration will become effective in 100 days. The company has not arranged for listing on any other U.S. national securities exchange or for quotation of the common shares in any quotation medium. Inco also intends to delist its common shares from the Toronto Stock Exchange as soon as it is in a position to do so. CVRD Canada has previously disclosed that it intends to acquire 100% of the Inco common shares by way of either a "compulsory acquisition" or a "subsequent acquisition transaction" and to cause Inco to effect deregistration and to cease reporting under the Exchange Act once the number of Inco security holders is sufficiently reduced. In light of these facts, Inco's Board of Directors authorized the withdrawal of Inco common shares from listing on the NYSE and from registration under Section 12(b) of the Exchange Act. Effective immediately, Inco will satisfy its reporting obligations under the Exchange Act by filing reports with the SEC on the forms available for use by foreign private issuers, instead of those used by U.S. domestic reporting companies, which it has historically used on a voluntary basis. 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 Indonesia, Canada 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: Expects 20% More Subscribers in 2007 ------------------------------------------------------ PT (Persero) Telekomunikasi Indonesia Tbk expects its cellular subscriber count to rise around 20% in 2007 from 35 million expected at the end of this year, Dow Jones Newswires reports, citing an official of the company. Telkom President Director Arwin Rasyid told Dow Jones Newswires that the company plans to boost capital expenditure to IDR16.9 trillion next year to serve more subscribers. Dow Jones adds that Telkom may issue bonds or seek other borrowings to help finance the capital expenditure next year. 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: Group Posts JPY33-Bil Net Profit for First Half '06 --------------------------------------------------------------- All Nippon Airways Co. Limited reported a profitable first half of the current fiscal year -- the six-month period from April 1 to September 30, 2006 -- the company said in a press release. For the first-half of 2006, the company posted a consolidated net profit of JPY33.2 billion (2005: JPY19.7 billion) on revenue of JPY752.8 billion (2005: JPY690.9 billion). These figures represent a 9% improvement in revenue and a 68.8% improvement in net profit compared with the results for the same period in the previous year -- ANA's highest ever net profit at the half-year point. However, the large difference can be attributed partly to an extraordinary loss posted in fiscal 2005, which arose from a change in accounting methods. No conspicuous extraordinary loss was reported in the present term under discussion. Operating profit fell 1.2% to JPY68.7 billion (2005: JPY69.5 billion) squeezed by an almost 41% increase in fuel costs compared with the previous term. As a result, recurring profit also dropped 2.4% to JPY57.9 billion (2005: JPY59.4 billion). Air Transportation Segment ANA Group consists of air transport, travel, hotel operations and other businesses. Taking the air transportation segment alone, a consolidated revenue of JPY629.3 billion (2005: JPY573.3 billion) and an operating profit of JPY60.7 billion (2005: JPY62.6 billion) were posted. Airlines within the Group carried 25.6 million passengers (2005: 25.2 million) over 30.4 billion Revenue Passenger Kilometres, which breaks down to 23.3 million domestic passengers and 2.2 million international passengers over 20.4 billion and 9.9 billion RPKs, respectively. Domestic Air Transportation In the Japanese domestic market, despite increased competition on trunk routes, the number of passengers carried held steady vis-.-vis the previous year, when domestic travel was buoyed up by the World Expo of summer 2005. Amongst other factors, the retention of passengers is attributed to the successful introduction of the new Tabiwari promotional fare, in April, which spurred demand for individual travel. ANA has also continued its efforts to make air travel ever more simple and convenient, and on September 1 started its innovative 'SKIP' service at 24 airports up and down the country, which removes the physical need to check-in for flights. "The good results from the first six months of this year are evidence of the recovering Japanese economy and the increasing demand for air travel within that, particularly business travel. Domestically, we are pleased to have beaten last year's passenger and revenue figures, given that demand was particularly high in summer 2005 because of the Aichi World Expo, and that more airlines have been competing on our trunk routes since April this year," commented Tomohiro Hidema, ANA's Executive Vice President, Finance. "Internationally, we have been able to improve our load factors and capture a growing number of passengers, while maintaining capacity at more or less the same level," he continued. International Air Transportation On the international front, strong demand for individual travel -- in particular, business travel -- continued to fuel demand. The six months under review saw the completed roll-out of the popular New Style Club ANA product on North American routes. Aircraft downsizing and increased frequencies on Osaka (Kansai) - Qingdao and Osaka (Kansai) - Xiamen achieved a better match of aircraft type with demand and secured greater passenger convenience. Demand for leisure travel to China showed no residual effect of the anti-Japan demonstrations which depressed passenger numbers in the same period of the previous term. The June 2 move to Terminal 1 at Tokyo's Narita airport with other Star Alliance member carriers resulted in vastly improved connecting times and amenities for all passengers. Facilities for first and business class passengers in particular were greatly enhanced. As a result, passenger growth outstripped capacity growth, and revenue improved 20% compared with same period of the previous year. Cargo Healthy demand for cargo services was also evident throughout the six months under review, with gains in both domestic and international arenas. Domestically, figures were buoyed up by the improving economic outlook in Japan, and the addition of extra late-night cargo flights in February this year. Internationally, ANA was able to capture a greater share of the Japan-North America market thanks to the introduction of aircraft with greater cargo capacity on those routes. Outlook for Fiscal Year 2006 The economic recovery in Japan is expected to continue and with it a healthy demand for air transportation services. Combined with ANA's drive to increase sales to counter growing competition, this is expected to produce revenue outstripping that of earlier forecasts. However, the price of fuel is also expected to continue at its current historically high level, and greater sales and marketing costs will be incurred as ANA moves to grow passenger numbers, driving up operating costs and squeezing profits. Accordingly, while revenue projections will be raised, projected costs will also increase. Although ANA will continue its on-going efforts to reduce them at all levels, costs are forecast to increase by JPY30 billion, and revenue by the same amount; profit forecasts remain unchanged. The revised forecast and detailed results for the period under review can be found in the following tables. Headquartered in Tokyo, All Nippon Airways Co., Limited -- http://www.ana.co.jp/eng/-- is Japan's second-largest airline company in terms of revenue. The company, which was founded in 1952, provides these services: 1. Scheduled air transportation business; 2. Nonscheduled air transportation business and business utilizing aircraft; 3. Business of buying, selling, leasing and maintenance of aircraft and aircraft parts; and 4. Aircraft transportation ground support business, including passenger boarding procedures and loading of hand baggage. The company has overseas sales offices in New York, San Francisco, Los Angeles, Washington D.C., Honolulu, Guam, London, Frankfurt, Paris, Beijing, Shenyang, Tianjin, Dalian, Qingtao, Shanghai, Hangzhou, Xiamen, Guangzhou, Hong Kong, Seoul, Bangkok, Ho Chi Minh, and Singapore. As reported in the Troubled Company Reporter - Asia Pacific on May 30, 2006, Moody's Investors Service has upgraded to Ba1 from Ba3 the senior unsecured debt ratings of All Nippon Airways Co., Ltd. The rating action concludes the review initiated on March 3, 2006. The rating outlook is stable. According to the TCR-AP on Oct. 27, 2006, 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. The TCR-AP reported on May 3, 2006, that Standard & Poor's Ratings Services revised its outlook on the BB- long-term corporate credit rating on All Nippon Airways to positive from stable, reflecting the company's improved earnings and expectations for stable profitability, thanks to cost reductions efforts as well as a stronger competitive position. Fitch Ratings on the other hand, gave All Nippon Airways a 'BB+' rating. AMERICAN AIRLINES: Earns US$1 Million in Quarter Ended Sept. 30 ------------------------------------------------------------- American Airlines, Inc., posted a US$1 million net income for the three months ended Sept. 30, 2006, on US$5.83 billion of revenues, compared to a US$161 million net loss earned on US$5.47 billion of revenues for the same period in 2005. The company's balance sheet at Sept. 30, 2006, showed $26.7 billion in total assets and US$27.5 billion in liabilities, resulting in a stockholders' deficit of approximately US$800 million. At Sept. 30, 2006, the company had US$5 billion in unrestricted cash and short-term investments, an increase of US$1.2 billion from Dec. 31, 2005. Net cash provided by operating activities in the nine-month period ended Sept. 30, 2006 was US$1.5 billion, an increase of US$679 million over the same period in 2005. The increase was primarily the result of improved economic conditions which allowed the industry to increase fare levels. The company contributed US$184 million to its defined benefit pension plans during the nine month period ended Sept. 30, 2006, and completed its required 2006 calendar year funding by contributing an additional US$39 million on Oct. 13, 2006. As of Sept. 30, 2006, the company had commitments to acquire an aggregate of 47 Boeing 737-800s and seven Boeing 777-200ERs in 2013 through 2016. Future payments for all aircraft, including the estimated amounts for price escalation, will be approximately US$2.8 billion in 2011 through 2016. American Airlines currently expects fourth quarter mainline unit costs to decrease more than four percent year over year. Capacity for the company's mainline jet operations in the fourth quarter is expected to decrease approximately 0.5 per cent year over year. A full-text copy of the company's quarterly report is available for free at http://researcharchives.com/t/s?1417 About American Airlines American Airlines -- http://www.AA.com/-- is the world's largest airline. American, American Eagle and the AmericanConnection regional airlines serve more than 250 cities in over 40 countries with more than 3,800 daily flights. American Airlines flies to Belgium, Brazil, Japan, among others. The combined network fleet numbers more than 1,000 aircraft. At Dec. 31, 2005, AMR Corporation's equity deficit doubled to US$1.478 billion from a US$581 million deficit from Dec. 31, 2004. * * * Standard & Poor's Ratings Services, effective June 6, 2006, placed its ratings on AMR Corp. (B-/Watch Pos/B-3) and subsidiary American Airlines Inc. (B-/Watch Pos/--) on CreditWatch with positive implication. Moody's Investors Service affirmed all debt ratings of AMR Corp., and its primary subsidiary American Airlines, Inc. - corporate family rating at B3 -- as well as all tranches of the Enhanced Equipment Trust Certificates supported by payments from American and the SGL-2 Speculative Grade Liquidity Rating. DURA AUTOMOTIVE: U.S. & Canadian Operations File for Chapter 11 --------------------------------------------------------------- DURA Automotive Systems Inc.'s U.S. and Canadian subsidiaries filed on Oct. 30, 2006, for protection under Chapter 11 of the United States Bankruptcy Code with the U.S. Bankruptcy Court for the District of Delaware. DURA's European and other operations outside the U.S. and Canada, accounting for approximately 51% of DURA's revenue, are not part of the filing. DURA's decision to pursue reorganization under Chapter 11 came after evaluating all options to restructure its balance sheet to reduce the company's indebtedness and interest expense. DURA elected to pursue a restructuring under court protection as it will facilitate both a financial restructuring and ongoing operational restructuring, the successful implementation of which will help DURA overcome current financial and industry pressures and position the company for long-term success. DIP Financing As part of the filing, DURA has arranged for approximately $300 million in Debtor-in-Possession financing from Goldman Sachs, GE Capital, and Barclays, which will be used by DURA to fund normal business operations and continue its operational restructuring program initiated in February 2006. The company has requested, and expects to receive, permission from the Court to pay employee salaries, wages and benefits. DURA has also asked for authority to pay certain critical pre- petition vendor claims and will continue to pay its post- petition obligations in the ordinary course of business. DURA said the steps it is taking would help ensure continuity of supply to customers. "With industry conditions tightening further, we concluded that our capital structure is no longer appropriate," chairman and chief executive officer of DURA Automotive Systems Larry Denton said. "The Chapter 11 process will enable us to work with our creditors on a plan that will reduce our debt burden and align the business to meet the challenges of tomorrow's automotive marketplace. "The entire North American automotive supply industry is at an extremely difficult juncture," Mr. Denton continued. "Pursuing a financial reorganization under court protections is the prudent course of action and positioning us for long-term sustainability. This is in the best interest of our employees, customers, vendors, and other business partners." DURA said the accelerating deterioration of the North American automotive industry, in particular, further production cuts by the major U.S. OEMs and the escalating cost of raw materials, adversely affected DURA's cash position prior to the filing. The DIP financing will improve DURA's liquidity, providing the company with sufficient working capital to continue normal operations and fund its turnaround. In February 2006, DURA initiated an operational restructuring program, focused on improving quality, lowering production costs, increasing EBITDA and rightsizing the business to account for capacity reductions. The operational restructuring program is generating improvements today and will continue to generate additional improvements throughout the bankruptcy process. "Once our operational and financial programs are complete, we believe that DURA will have improved its competitive position in the automotive supply market, combining best-in-class quality with best-in-cost production through our global lean- manufacturing footprint," Mr. Denton said. "DURA plans to continue to serve customers with innovative, competitively priced products that meet the highest standards of quality today and into the future." About DURA Automotive Systems Rochester Hills, Mich.-based DURA Automotive Systems, Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a leading supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to every North American, Japanese and European original equipment manufacturer and many leading Tier 1 automotive suppliers. The company has manufacturing and product development facilities in Japan, Brazil and Germany. * * * Moody's Investors Service lowered the Probability of Default rating of Dura Automotive Systems Inc. to D from Caa3. Standard & Poor's Ratings Services lowered the corporate credit rating of Dura Automotive Systems Inc. and its subsidiary, Dura Operating Corp., to 'D' from 'CCC'. DURA AUTOMOTIVE: Case Summary & 30 Largest Unsecured Creditors -------------------------------------------------------------- Lead Debtor: Dura Automotive Systems, Inc. aka Dura Automotive Holdings, Inc. aka MC Holding Corp. 2791 Research Drive Rochester Hills, MI 48309-3575 United States Bankruptcy Case No.: 06-11202 Debtor-affiliates filing separate chapter 11 petitions: Entity Case No. ------ -------- Dura Operating Corp. 06-11203 Adwest Electronics Inc. 06-11204 Atwood Automotive, Inc. 06-11205 Atwood Mobile Products, Inc. 06-11206 Automotive Aviation Partners, LLC 06-11207 Creation Group Transportation, Inc. 06-11208 Creation Group, Inc. 06-11209 Creation Windows, Inc. 06-11210 Creation Windows, LLC 06-11211 Creation Group Holdings, Inc. 06-11212 Dura Aircraft Operating Company, LLC 06-11213 Dura Automotive Systems Cable Operations Inc. 06-11214 Dura Automotive Systems of Indiana, Inc. 06-11215 Dura Brake Systems, L.L.C. 06-11216 Dura Cables North LLC 06-11217 Dura Cables South LLC 06-11218 Dura Fremont L.L.C. 06-11219 Dura Gladwin L.L.C. 06-11220 Dura Global Technologies, Inc. 06-11221 Dura G.P. 06-11222 Dura Mancelona L.L.C. 06-11223 Dura Services L.L.C. 06-11224 Dura Shifter L.L.C. 06-11225 Dura Spicebright, Inc. 06-11226 Kemberly, Inc. 06-11227 Kemberly, LLC 06-11228 Mark I Molded Plastics of Tennessee, Inc. 06-11229 Patent Licensing Clearinghouse L.L.C. 06-11230 Spec-Temp, Inc. 06-11231 Trident Automotive, L.L.C. 06-11232 Trident Automotive, L.P. 06-11233 Universal Tool & Stamping Company, Inc. 06-11234 Dura Automotive Canada ULC 06-11235 Dura Automotive Systems (Canada), Ltd. 06-11236 Dura Canada LP 06-11237 Dura Holdings Canada LP 06-11238 Dura Holdings ULC 06-11239 Dura Ontario, Inc. 06-11240 Dura Operating Canada LP 06-11241 Trident Automotive Canada Co. 06-11242 Trident Automotive Limited 06-11243 Type of Business: The Debtors design and manufacture driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules, and exterior trim systems for the global automotive industry. The Debtors also supplies similar products to the recreation vehicle and specialty vehicle industries. The Debtors sell their automotive products to every North American, Japanese, and European original equipment manufacturer and many leading Tier 1 automotive suppliers. See http://www.DURAauto.com/ Chapter 11 Petition Date: October 30, 2006 Court: District of Delaware Judge: Kevin J. Carey Debtors' Lead Counsel: Richard M. Cieri, Esq. Marc Kieselstein, Esq. Roger James Higgins, Esq. Ryan Blaine Bennett, Esq. Kirkland & Ellis LLP 200 East Randolph Drive Chicago, IL 60601-6636 Tel: (312) 861-2000 Fax: (312) 861-2200 Debtors' Co-Counsel: Mark D. Collins, Esq. Daniel J. DeFranseschi, Esq. Jason M. Madron, Esq. Richards Layton & Finger, P.A. One Rodney Square 920 North King Street Wilmington, DE 19801 Tel: (302) 651-7575 Fax: (302) 498-7575 Debtors' Special Counsel: Baker & McKenzie Debtors' Conflicts Counsel: Togut, Segal & Segal LLP Debtors' Investment Banker: Miller Buckfire & Co., LLC Debtors' Financial Advisor: Glass & Associates Inc. Debtors' Notice, Claims and Balloting Agent: Kurtzman Carson Consultants LLC Debtors' Corporate Communications Consultants: Brunswick Group LLC Financial Condition as of July 2, 2006: Total Assets: US$1,993,178,000 Total Debts: US$1,730,758,000 Consolidated List of Debtors' 30 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ U.S. Bank Trust Services 9% Senior Subd. US$523,530,000 60 Livingston Ave. EP-MN-WS3C Notes St. Paul, MN 55107 Attn: Richard Prokosch Tel: (651) 495-3918 Fax: (651) 495-8097 BNY Midwest Trust Company 8.625% Senior US$400,000,000 2 N LaSalle Street, Suite 1020 Chicago, IL 60602 Attn: Roxanne J. Ellwanger Tel: (312) 827-8574 Fax: (312) 827-8542 JP Morgan Trust Company 7.5% Convertible US$55,205,000 Institutional Trust Service 227 West Monroe, Suite 2600 Chicago, IL 60606 Attn: Sharon K. McGrath Tel: (402) 496-1960 Fax: (402) 496-2014 Johnson Electric North America Trade US$3,258,156 47660 Halyard Drive Plymouth, MI 48101 Attn: Jessi Lamb Doug Eberle Doug Stange Tel: (734) 392-5451 Fax: (734) 392-5480 (734) 392-5388 (734) 392-5386 ACH Glass Trade US$2,200,817 17333 Federal Drive, Suite 230 Allen Park, MI 48101 Attn: Dave Thompson Steve Ewing Tel: (313) 755-3735 Fax: (313) 755-2285 HS Spring Group Trade US$1,969,900 25 Worchester Road Toronto, ON M9W IK9 Canada 3805 Business Park Drive Louisville, KY 40213 Attn: Kerry Pursley Paul Law Pamella Collins Tel: (416) 675-9072 Fax: (416) 675-9074 Ready Rivet and Fastener Ltd. Trade US$1,877,979 170 Hollinger Crescent Kitchner, ON N2K 2Z3 Canada Attn: Dan Collins Tel: (519) 745-6119 Fax: (519) 745-9453 ACH Vidriocar Trade US$837,881 Calle Miguel Calalan # 420 Parque Industrial Rio Bravo Juarez, Chihuahua 32700 Mexico Attn: Armando Galindo Tel: (526) 566-295-153 Fax: (595) 021-501-617 MakSteel Trade US$949,700 7615 Torbram Road Mississauga, ON L4T 4A8 Canada Attn: Norm Trudeau Bill Cooke Tel: (905) 671-3000 x 2255 Fax: (905) 673-4976 Thompson IG LLC Trade US$782,031 3196 Thompson Road Fenton, MI 48430 Attn: Chris DeSonia Debbie Schultz Tel: (810) 629-9558 Fax: (810) 629-0041 Fastco Industries Inc. Trade US$623,113 2685 Mullins Avenue NW P.O. Box 141427 Grand Rapids, MI 49544 Attn: Craig Gill Marti Archibald Tel: (616) 453-5428 Fax: (616) 791-0481 Astro Shapes Inc. Trade US$581,593 65 Main Street P.O. Box 2 Struthers, OH 44471 Attn: Terri Michaud Alison Ritchie Tel: (330) 755-1414 Fax: (330) 755-3641 Technical Services Inc. Trade US$540,704 57006 241st Street Ames, IA 50010 Attn: Martin Simpson Tel: (525) 232-3188 Fax: (515) 232-2953 Young Technology Inc. Trade US$527,091 332 Commerce Drive Carol Stream, IL 60188 Attn: Eric Luhrs John Wenstrup Tel: (630) 690-4320 ext. 20 Fax: (630) 690-9487 Royal Plastics Inc. Trade US$525,362 3765 Quincy Street Hudsonville, MI 49426 Attn: Perry Franco Tel: (616) 667-4155 Fax: (616) 896-0290 Worthington Steel Trade US$500,232 200 Old Wilson Bridge Road Columbus, OH 43085 Attn: Tom Grabowski John Cummings Tel: (614) 438-3210 Fax: (614) 840-3706 Camcar Textron CDN Trade US$495,869 87 Disco Road Rexdale, ON M9W 6K2 Canada Attn: Andrew Chubb Brian Erickson Tel: (800) 268-4806 Fax: (416) 675-3762 White Rogers Trade US$463,291 P.O. Box 93638 Chicago, IL 60673 Attn: Debbie Schmidt Tel: (870) 793-3855 Fax: (870) 793-1822 Kilbank Metal Turning & Trade US$460,115 Forming Inc. 4 Barrie Boulevard St. Thomas, ON N5P 4B9 Canada Attn: Donna Dyson Steve Smith Tel: (519) 631-4470 Fax: (519) 631-3152 PPG Industries Trade US$441,408 One PPG Place Pittsburgh, PA 15272 Attn: Karen Blaylock Jason Skeen Tel: (412) 434-3131 Fax: (419) 526-7487 AGC Automotive Americas Trade US$426,018 1 Auto Glass Drive P.O. Box 5000 Elizabethtown, KY 42701 Attn: Darryl Mezigian Tel: (248) 324-5062 Fax: (270) 769-8295 Sturgis Molded Products Trade US$406,473 70343 Clark Street P.O. Box 246 Sturgis, MI 49091 Attn: Rejean Schragg Pam Kain Tel: 1-800-572-1786 Fax: (269) 651-4072 Freedom Technologies Corp. Trade US$373,596 10370 Citation Drive, Suite 200 Brighton, MI 48116 Attn: John Piatek Tel: (810) 227-3737 Fax: (810) 227-3909 Carthage Wire Mill Trade US$358,129 1225 East Central Avenue Carthage, MO 64836 Attn: Christian Lupo Tel: 1-800-527-1786 Fax: (314) 567-7334 Indalex Aluminum Solutions Trade US$353,787 75 Tri-State International Suite 450 Lincolnshire, IL 60069 Attn: Pat Wooley Connie Shinuald Tel: (866) 576-0146 Fax: (847) 295-3851 McLaughlin Metal Sales Co. Trade US$338,998 12898 Pennridge Drive Bridgeton, MO 63044 Attn: Wilson Allee Dan Gutos Tel: (314) 567-8585 Fax: (314) 567-7334 Orchid Automation Trade US$338,005 331 Alden Road Markham, ON L3R3L4 Canada Attn: Darrell Corkum Tel: (615) 661-4300 Fax: (615) 661-4359 Ford Motor Company Trade US$337,542 P.O. Box 6248 Dearborn, MI 48126 Attn: Steve Martin Jennifer Zinn Tel: (313) 322-3000 ext. 9798 Fax: (313) 845-4089 SAIA - Burgess North America Trade US$336,283 801 Scholz Drive Vandalia, OH 45377 Attn: Ron Rogers Chris Mullins Tel: (937) 454-2345 Fax: (937) 898-8624 Pilkington-Clinton Plant Trade US$332,499 11700 Tecumseh-Clinton Road Clinton, MI 49236 Attn: Terrance Gallagher Pat Gallagher Tel: (517) 456-2167 Fax: (517) 456-4242 DURA AUTOMOTIVE: S&P's Ratings Tumble to D After Ch. 11 Filing -------------------------------------------------------------- Standard & Poor's Ratings Services lowered Dura Automotive Systems Inc.'s senior secured and subordinated debt ratings to 'D' from 'CC' following the company's announcement that it and its U.S. and Canadian subsidiaries had filed for Chapter 11 bankruptcy protection. In addition, these ratings were removed from CreditWatch with negative implications. At the same time, the '1' recovery rating on the secured debt was affirmed and then withdrawn. The corporate credit rating on Dura and the rating on Dura Operating Corp.'s US$400 million senior notes were already 'D' following the company's failure to make an interest payment earlier this month. Well-known challenges cited by the company in its bankruptcy filing included production cuts by major U.S. automakers and escalating costs of raw materials. Dura indicated that its operations outside the U.S. and Canada, which in total account for about 51% of revenues, were not part of the filing. Dura has arranged a US$300 million DIP loan. Rochester Hills, Mich.-based DURA Automotive Systems, Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a leading supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to every North American, Japanese and European original equipment manufacturer and many leading Tier 1 automotive suppliers. The company has manufacturing and product development facilities in Japan, Brazil and Germany. FORD MOTOR: Closes Production at Atlanta Assembly Plant ------------------------------------------------------- Production ended at Ford Motor Company's Atlanta Assembly Plant on Oct. 27, at 7 a.m., when the company produced its last Ford Taurus. Ford produced 7.5 million Taurus units since the sedan was introduced in 1985. From 1992 to 1996, Taurus was the best- selling car in the United States. Its peak year was 1992 with 409,751 units sold. Ford produced Taurus at two assembly plants -- Atlanta and Chicago -- until 2004 when Chicago Assembly began production of Ford Five Hundred, Freestyle and Mercury Montego. The Atlanta Assembly opened in 1947 and built a variety of historical models including the light trucks, Ford Fairlane, Fairmont, Falcon, Galaxie, Grananda, LTD, Rachero, Torino, Thunderbird, Marquis, Sable and Taurus. For the past five years Atlanta Assembly has ranked among the top 10 most productive assembly plants in North America, as reported by Harbour Consulting. In the 2005 report, Atlanta ranked number one in productivity. Atlanta Assembly employed 1,950 workers, including 1,800 hourly and 150 salaried. The hourly employees, like all UAW-represented Ford employees in the U.S., can select among eight separation, educational and retirement packages. About Ford Motor 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 also has operations in Japan. * * * 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.' At the same time, Fitch Ratings placed Ford Motor's 'B+/RR3' senior unsecured debt on Rating Watch Negative reflecting Ford's intent to raise secured financing that would impair the position of unsecured debt holders. Under Fitch's recovery rating scenario it was estimated that unsecured holders would recover approximately 68% in a bankruptcy scenario, equating to a Recovery Rating of 'RR3' (50-70% recovery). Moody's Investors Service has 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 September 19 downgrade of the company's long-term rating to B3. FTI CONSULTING: Appoints New Directors to Forensic, Corp Finance ---------------------------------------------------------------- FTI Consulting, Inc., disclosed the appointments of senior managing directors Mary Barnes and Bruce Burton in the Forensic and Litigation Consulting practice, and senior managing director, Mark Weinsten, and managing director Scott Bingham, in the Corporate Finance practice. Commenting on the new appointments, Dominic DiNapoli, FTI's chief operating officer, said, "At FTI, our priority is to not only identify and meet the needs of our clients and the marketplace, but to surpass them. This goal requires careful expansion of our elite talent pool. Mary, Bruce, Mark and Scott bring with them the diversity of talent and expertise that are integral to FTI providing the highest level of client service." New Appointments Mary G. Barnes joins FTI as a senior managing director in FTI's Forensic and Litigation Consulting segment. Ms. Barnes, who will be located in FTI's New York office, will focus on the financial services industry with a primary concentration on commercial and investment banking. Ms. Barnes has more than 25 years experience in consulting and executive management in the financial services industry. Most recently, her consulting efforts have included the areas of internal controls, regulatory compliance and reporting, risk management, forensic investigations and technology. Ms. Barnes joins FTI from KPMG, where she was the global lead partner for one of the top financial services organizations. In this role she managed activities across all businesses and functions of the client (e.g. tax, transaction services, forensics, etc.), domestically and globally, including leading the transformation of a segment of the client's finance function, and identifying and providing advice around regulatory reporting issues. Prior to her tenure at KPMG, Ms. Barnes was a partner in the financial services practice at Bearing Point and a senior executive at Bank of America where she led an internal consulting group. Ms. Barnes earned a BS in Industrial Engineering at the University of Texas, Arlington. Bruce Burton joins FTI as a senior managing director in the Forensic and Litigation Consulting's growing Intellectual Property practice. Mr. Burton is based in Chicago and will focus on developing FTI's Technology & Intellectual Property Management capabilities, which includes helping clients identify, protect, manage and extract value from their intellectual assets. Prior to joining FTI, Mr. Burton was a partner and the national leader of the intellectual asset management practice at Deloitte Consulting, a role in which he consulted on issues involving strategy, management, valuation, licensing, process design, M&A, tax planning, litigation, bankruptcy and other matters all in relation to intellectual property and related assets. Mr. Burton's industry experience is broad and includes aerospace, automotive, consumer goods, higher education, pharmaceuticals, telecommunications and other high-tech industries. He has particular expertise in all phases of technology commercialization, IP strategy and implementation procedures, IP due diligence, IP-related mergers and acquisitions, and IP best practices. Mr. Burton holds an MBA from the University of Chicago and a BA from the University of Washington. He is a CPA, a CMA and a CFE. Mark Weinsten returns to FTI as a senior managing director in FTI's Corporate Finance practice after spending the past year as CFO of GVV, where he was responsible for business plan development and raising capital. Based in FTI's Boston office, Mr. Weinsten works with clients including boards of directors, equity sponsors, management of distressed companies and creditors and bank groups. His role includes assisting clients in creating and implementing business strategies and operational improvements, performing analyses related to capital budgeting and raising decisions, conducting operations and organization reviews to identify areas for clients to reduce costs and enhance productivity, and has served in interim management developing business plans and financial projections to provide guidelines and targets for client growth and development. Prior to joining FTI, Mr. Weinsten was a partner in PricewaterhouseCoopers' business recovery services practice (which was acquired by FTI in 2002) and assisted underperforming companies and their various constituents across a breadth of industries. Before that he was in the management consulting department of Grant Thornton. Mr. Weinsten holds an MBA from the Wharton School at the University of Pennsylvania and a BS in economics from Carnegie- Mellon University. He is a member of the American Bankruptcy Institute and the Turnaround Management Association. He has also been an adjunct professor at Babson College's Olin School of Business, where he has taught turnaround finance and management to MBA students. Scott Bingham joins as a managing director in FTI's Corporate Finance practice, Transaction Advisory Services group. In his new role, Mr. Bingham will be part of FTI's Atlanta Transaction Advisory Services group, and will focus on extending FTI's presence in the Southeast. Mr. Bingham brings over 14 years of experience to his new position, the last nine of which were spent at PricewaterhouseCoopers. Most recently, he served as the advisory practice leader for healthcare transaction consulting, a role in which he coordinated the firm's resources for supplying strategic, operational and financial healthcare diligence consulting for private equity and venture capital clients. Mr. Bingham's extensive experience in transaction services also includes a five-year tenure as the director of the transaction services division at PricewaterhouseCoopers, where he served as a transaction consultant for both strategic and financial buyers throughout the deal continuum, and where he advised clients on a myriad of deal technicalities, including due diligence, contract structuring and negotiations, transition planning, leverage recapitalizations, etc. Prior to his experience at PricewaterhouseCoopers, Mr. Bingham was the director of corporate development at The MRC Group, formerly Medifax, Inc., a private equity-backed venture. Mr. Bingham holds a BS in Accounting from Miami University and is a CPA. About FTI Consulting Baltimore, Maryland-based FTI Conslulting Inc. - http://www.fticonsulting.com-- is a consulting firm focusing on five areas: forensics and litigation, corporate finance/restructuring, technology, economic consulting, and strategic communications. FTI Consulting has offices in the United States, Japan, the United Kingdom, Australia, China, Hong Kong, and Singapore. Standard & Poor's Ratings Services, on September 18, 2006, assigned its 'B+' rating to FTI Consulting Inc.'s proposed US$215 million senior notes due 2016. At the same time, Standard & Poor's affirmed the corporate credit rating of FTI at 'BB-' and revised the outlook to positive from stable, based on strong earnings performance and talent retention. Moody's Investors Service assigned a Ba2 rating to FTI Consulting, Inc.'s proposed US$215 million of senior unsecured notes and lowered the ratings on its US$150 million senior subordinated convertible notes to B1 from Ba3. Moody's affirmed the Ba2 corporate family rating and the Ba2 rating on FTI's existing senior unsecured notes. The rating outlook remains stable. MICRON TECHNOLOGY: Earns US$408 Million in 2006 Fiscal Year --------------------------------------------------------- Micron Technology Inc. reported results of operations for its 2006 fiscal year and fourth quarter, which ended Aug. 31, 2006. For the 2006 fiscal year, the company earned net income of US$408 million on net sales of US$5.3 billion, which compares to net income of US$188 million on net sales of US$4.9 billion for the prior fiscal year. For the fourth quarter of fiscal 2006, the company earned net income of US$64 million on net sales of US$1.4 billion. "Micron effectively executed its diversification strategy, resulting in strong financial performance for the year while strengthening its platform for future success," said Steve Appleton, Micron's chairman, CEO and president. In fiscal 2006, the company began to realize benefits from its diversification strategy, particularly with its CMOS image sensors. The company is the world's leading provider of CMOS image sensors and doubled its sales of imaging products from fiscal 2005 to 2006. The establishment in 2006 of the company's joint venture with Intel Corporation for NAND flash memory production positioned Micron for significant growth in this market. This alliance enables the company to realize the benefits of research and development cost sharing and, through joint investments with Intel, accelerate its NAND production ramp. Once completed, these investments will allow the company to bring additional scale and cost reductions to its memory operations. The company's NAND product offering was further broadened with the acquisition of Lexar Media, which provides a significant retail presence and strengthened the company's portfolio of intellectual property. The effects of the company's transformation in fiscal 2006 noticeably strengthened the company's balance sheet. Cash and investment balances increased US$1.8 billion over the year at the same time debt was reduced by approximately US$600 million. The company invested approximately US$1.6 billion in capital expenditures in fiscal 2006. These investments were heavily concentrated in 300mm wafer fab tooling as the company positions its Manassas, Lehi and TECH Semiconductor operations for advanced 300mm production. Comparing the company's fourth quarter results to the previous quarter, net sales grew primarily as a result of increased sales in the company's memory segment. Sales of DDR and DDR2 memory products increased slightly in the fourth quarter of fiscal 2006 compared to the third quarter, representing approximately 50% of the company's total net sales. Sales of imaging products in the fourth quarter of fiscal 2006 represented approximately 15% of the company's sales. Sales of NAND flash products increased in the quarter and represented approximately 9% of the company's total net sales for the fourth quarter. Sales of NAND flash products in the fourth quarter of fiscal 2006 include only limited volumes from Lexar, as purchase accounting precludes the company from recognizing Lexar inventory in the distribution channel as of the date of the acquisition. As a result of the acquisition, the company's operating expenses in the fourth quarter of fiscal 2006 include approximately US$20 million for the Lexar operations. During the fourth quarter of fiscal 2006, the company settled various legal matters adversely affecting the company's gross margin by approximately US$45 million, or three percentage points. Absent the effect of these settlements, the company's gross margin on sales of memory products in the fourth quarter of fiscal 2006 would have been slightly higher than the gross margin in the preceding quarter. At the end of the fourth quarter of fiscal 2006, the company had US$3.1 billion in cash and short-term investments. During fiscal 2006 and the fourth quarter, the company generated US$2.0 billion and US$330 million, respectively, in cash from operations and invested US$1.6 billion and US$633 million, respectively, in capital expenditures. The company anticipates capital expenditures for fiscal year 2007 to be approximately US$4 billion. Subsequent to the end of fiscal 2006, the company and Toshiba Corporation entered into agreements settling all outstanding NAND flash memory-related litigation between the Companies. Toshiba purchased certain of the company's semiconductor technology patents and licensed certain patents previously owned by Lexar Media. The company will receive payments totaling US$288 million over several years. About Micron Micron Technology, Inc. (NYSE:MU) -- http://www.micron.com-- is a worldwide provider of semiconductor solutions. Through its worldwide operations, Micron manufactures and markets DRAMs, NAND flash memory, CMOS image sensors, other semiconductor components, and memory modules for use in leading-edge computing, consumer, networking, and mobile products. Micron has worldwide locations including those in Japan, China, India, Korea, Singapore, and Taiwan. * * * On Dec. 8, 2005, Moody's Investors Service revised its ratings outlook on Micron Technology to stable (Corporate Family Rating at Ba3). Moody's affirmed the company's Ba3 Senior Implied rating, Ba3 Issuer rating, (P) Ba3 Senior unsecured shelf registration rating, (P) B2 Subordinated shelf registration rating, B2 rating on US$632 million 2.5% convertible subordinated notes due Feb. 2010 and B2 rating on US$210 million 6.5%, junior subordinated notes. SENSATA TECHNOLOGIES: Moody's Assigns Loss-Given-Default Rating --------------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. manufacturing sector, the rating agency confirmed the B2 Corporate Family Rating for Sensata Technologies B.V., as well as the Caa1 rating on the company's US$301.6 million of Senior Subordinate Notes Due 2016. Those debentures were assigned an LGD6 rating suggesting noteholders will experience a 93% loss in the event of default. Additionally, Moody's revised or held 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$150 Mil. Multicurrency Revolver due 2012 B1 B1 LGD3 32% US$950 Mil. TL B & 325m ($400m) TL B due 2013 B1 B1 LGD3 32% US$450 Mil. 8% Sr. Notes Due 2014 B2 Caa1 LGD5 81% Moody's explains that current long-term credit ratings are opinions about expected credit loss which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). Headquartered in Attleboro, Massachusetts, Sensata Technologies -- http://www.sensata.com/-- is a supplier of sensors and controls across a range of markets and applications. The company has manufacturing locations in Japan, Brazil, Mexico, China and the Netherlands. SOFTBANK CORP: Reviews Ads After Meeting with Regulator ------------------------------------------------------- Softbank Corp. says that it is reviewing its advertising for its new mobile phone price campaign after meeting with Japan's antitrust watchdog, the Fair Trade Commission, Reuters relates. As reported by the Troubled Company Reporter - Asia Pacific on November 1, 2006, the FTC commenced its examination on whether sales campaigns launched by Softbank are misleading to consumers. The TCR-AP report explains that Softbank's new discounts are complex to understand and that the company, which is a newcomer in Japan's cellphone industry, may be in violation of mislabeling and telecommunications service law. The TCR-AP added that the regulators are also concerned with Softbank's advertisements, which highlighted the catch phrase "Zero-yen calls and emails," but listed the conditions and restrictions in small print. About Softbank Mobile Headquartered in Tokyo, Japan, Softbank Mobile Corp. -- http://www.softbankmobile.co.jp/-- offers mobile voice, data, and wireless Internet services throughout Japan. Formerly known as Vodafone K.K. and operated as Vodafone Japan, the island country's #3 wireless carrier (behind giants NTT Docomo and KDDI) has more than 15 million subscribers with more than 85% also subscribing to Vodafone live!, the company's interactive mobile service. The company also offers innovative "movie sha- mail," its popular photo-messaging service using mobile handsets. UK-based Vodafone Group sold its 98% stake in Vodafone K.K. to SOFTBANK in a deal valued at nearly US$16 billion. The Troubled Company Reporter - Asia Pacific reported on Oct. 4, 2006, that Standard & Poor's Ratings Services' 'BB+' long-term ratings on Softbank Mobile remain on CreditWatch with negative implications. About Softbank Corporation Based in Tokyo, Japan, Softbank Corporation -- https://www.softbank.co.jp/ -- is a leading Japanese telecommunications and media corporation, with operations in broadband, fixed-line telecommunications, e-Commerce, Internet, broadmedia, technology services, finance, media and marketing, and other businesses. SoftBank was established on September 3, 1981, and had a market capitalization of approximately US$32.8 billion at February 28, 2006. SoftBank's corporate profile includes various other companies such as Japanese broadband company Cable & Wireless IDC, cable company BB-Serve, and gaming company GungHo Online Entertainment. On March 17, 2006, SoftBank announced its agreement to buy Vodafone Japan, giving it a stake in Japan's US$78 billion mobile market. * * * According to a Troubled Company Reporter - Asia Pacific report on April 18, 2006, Standard & Poor's Rating Services agency affirmed its 'BB-' long-term corporate credit rating on the company, with negative implications. Moody's Investors Service had, on August 9, 2006, upgraded Softbank Corp.'s stable long-term debt rating and issuer rating to Ba2 from Ba3, concluding a review initiated on March 17, 2006, when the company announced that it would acquire a 97.7% stake in mobile phone giant Vodafone Group's Japanese unit, Vodafone K. K. ========= K O R E A ========= SANDISK CORP: 1Q07 Trial Expected For STMicro's '45 Patent Suit --------------------------------------------------------------- SanDisk Corp. expects the trial for STMicroelectronics NV's suit, tagged Civil Case No: 4:05CV45, for patent infringement to be held in the first quarter of 2007. Trial for this case was previously scheduled for November 2006. On Feb. 4, 2005, STMicro filed two suits against the Company in the U.S. District Court for the Eastern District of Texas, tagged Civil Case Nos. 4:05CV44 and 4:05CV45. Both complaints seek damages and injunctions against the Company's products. STMicro's wholly owned subsidiary, STMicroelectronics Inc., is also a plaintiff in those suits. On April 22, 2005, the Company filed counterclaims on two patents in the '45 action. These counterclaims seek damages and injunctive relief against the STMicro entities' flash memory products. The Magistrate Judge in the '44 Action later issued a report recommending that the Court grant the Company's motion summary judgment motion of non-infringement on all accused products. About Sandisk Corp. Headquartered in Milpitas, Calif., SanDisk Corp. (NASDAQ:SNDK) -- http://www.sandisk.com/-- manufactures various formats of flash memory cards for use in consumer electronics products, including digital cameras, mobile phones, and game systems. In addition, the company produces devices such as USB drives and MP3 music players. SanDisk has worldwide locations in China, Ireland, India, Israel, Japan, Taiwan and Korea. * * * As reported in the Troubled Company Reporter on May 11, 2006, Standard & Poor's Ratings Services assigned its 'BB-' rating to Sunnyvale, California-based SanDisk Corp.'s proposed issue of $1.0 billion of senior unsecured convertible notes due 2013. The 'BB-' corporate credit rating on SanDisk was affirmed. The rating outlook is stable. SHINHAN BANK: Reports 11% Decrease in 3rd Quarter Net Income ------------------------------------------------------------ On November 2, 2006, Shinhan Financial Group released its operating results for the nine-month period ended Sept. 30, 2006, in the form of a live web-cast and conference call. In a filing with the United States Securities and Exchange Commission, Shinhan disclosed Shinhan Bank's key figures: 3Q 2006 3Q 2005 (KRW, in Millions) (Accumulated) (Accumulated) Change ------------- ------------- -------- Operating Revenue 9,127,804 5,635,103 61.98 % Operating Income 1,159,454 493,843 134.78 % Ordinary Income 1,588,714 539,969 194.22 % Net Income 1,182,017 537,032 120.10 % (KRW, in Millions) 3Q 2006 3Q 2005 Change ---------- ----------- -------- Operating Revenue 3,244,296 3,557,546 -8.81 % Operating Income 493,068 414,045 19.09 % Ordinary Income 639,386 701,311 -8.83 % Net Income 461,732 519,420 -11.11 % The full IR presentation material and an audio recording of the Web-cast and conference call are available at Shinhan's Web site http://www.shinhangroup.com/ About Shinhan Bank Headquartered in Taepyeong-no, Seoul, Shinhan Bank -- http://www.shinhan.com/-- was established in 1982 with capital from Korean residents in Japan. It is Korea's fourth largest bank by assets -- second largest after merging with Chohung Bank -- holding a 9% share of deposits and 11% of loans. The bank has developed a strong franchise in the consumer as well as small and medium-sized enterprise segments. In September 2001, it formed a holding company, Shinhan Financial Group, under which it and five other affiliates became stable companies. Since then, the Shinhan Financial Group has expanded its organizational structure to include 11 subsidiaries and is now Korea's second largest financial group. The Troubled Company Reporter - Asia Pacific reported on March 16, 2006, that Moody's Investors Service has raised Shinhan Bank's Bank Financial Strength Rating to D+ from D. The revised rating carries a stable outlook. The higher BFSR reflects the bank's sustained financial fundamentals upon its merger with affiliate Chohung Bank. Despite Moody's initial concerns, Chohung Bank's credit- worthiness under its parent, Shinhan Financial Group, has improved substantially. Therefore, the absorption of Chohung Bank into Shinhan Bank will not dilute the financial health of the combined bank as greatly anticipated at the time of the acquisition. Nonetheless, the financial fundamentals place Shinhan Bank at the low end of the rating band. =============== M A L A Y S I A =============== AKTIF LIFESTYLE: Moves to Another Location ------------------------------------------ Effective on November 1, 2006, Aktif Lifestyle Corporation Bhd has moved to a new location. The Company's New Location Is At: Level 14, Uptown 1 No. 1 Jalan SS 21/58 Damansara Uptown 47400 Petaling Jaya Selangor Darul Ehsan Telephone: 03-7725 2888 Facsimile: 03-7725 7791/2/3 About Aktif Lifestyle Headquartered In Kuala Lumpur, Malaysia, Aktif Lifestyle Corporation Berhad's principal activities is the operation of specialty retail stores. Other activities include investment holding. The Company has defaulted on several loan facilities and incurred continuous losses. It embarked on various corporate exercises aimed at regularizing its financial condition. In 2005, the Company presented a proposed restructuring scheme, which did not win the Securities Commission's favor due to uncertainty in assets valuation and concerns on corporate governance issues. An appeal to the SC to review its decision on the Proposed Restructuring Scheme was already submitted. As reported by the Troubled Company Reporter - Asia Pacific, Bursa Malaysia Securities Berhad, on June 8, 2006, commenced delisting procedures against Aktif, which is a Practice Note 10 company. In a statement, Bursa Securities said that Aktif has failed to ensure that its level of operations is adequate in accordance to the listing requirements. COMSA FARMS: Default Status Remains Unchanged --------------------------------------------- Pursuant to Practice Note 1/2001 of the Listing Requirements of Bursa Malaysia Securities Berhad, Comsa Farms Berhad discloses that as of November 1, 2006, its default status remains unchanged as that of the default status disclosed on October 2. However, on October 2, Comsa Farms stated that its default status was the same as that reported on September 19. The Company stated in a regulatory filing on September 19, that it has defaulted on the repayment of principal and interests outstanding to the holders of MYR50.0 million redeemable unsecured 2000/2005 bonds. The Bond was issued on Nov. 6, 2000, and matured on Nov. 4, 2005. On the Maturity Date, Comsa Farms had repaid a total principal of MYR10.0 million and the balance of MYR40.0 million remains outstanding. Background On May 8, 2006, Comsa Farms entered into a Facility Agreement with Malaysian Assurance Alliance Berhad, as lender, for a working capital loan facility of MYR100.0 million. The FA was modified via a supplemental agreement dated May 22, 2006. The proceeds of the Facility are to be used, inter-alia: (i) MYR38.0 million to redeem the existing legal charges created on two parcels of leasehold lands together with all existing buildings and structure erected and situated at CL105343315 and CL105343324, in Quoin Hill, District of Tawau, measuring 1,278.97 acres in aggregate in favor of OCBC Bank (Malaysia) Berhad; (ii) MYR40.0 million to be released to AmTustee Berhad, as Trustee for the Bonds, for the purpose of redeeming the Bonds; (iii) MYR8.0 million to be deposited with the Lender for the purpose of 12 months' upfront interest payment for the Facility; and (iv) MYR14.0 million as working capital for the Comsa Group. The bondholders, together with MAA and Commerce International Merchant Bankers Berhad, on May 19, 2006, vide an extraordinary resolution, granted their indulgence to Comsa Farms for the repayment of the outstanding amount due on the Bonds and the deferment of the enforcement of their existing rights from Nov. 4, 2005, to Aug. 31, 2006. Subsequently, the Bondholders have agreed not to take any steps to exercise any of their rights in respect of the trust deed until after the Reprieve Period subject to Comsa Farms' failure to pay the principal amount of the Bonds of MYR40,000,000 and the Accrued Interest of MYR2,671,150.79 up to Aug. 31, 2006. On May 26, 2006, MAA registered a third party first charge over the Subject Assets. The First Charge is to secure the first tranche of the Facility of up to MYR38.0 million pursuant to the FA. On June 2, 2006, the Bondholders registered the third party second charge over the Subject Assets. The Bondholder Charge is to secure the Principal Amount of MYR40,000,000 of the Bonds and the Accrued Interest. On August 15, 2006, Comsa Farms received a letter from MAA informing it that they are unable to allow any of the remaining tranches to be drawn until and unless there is any great improvement to the company's current financial situation. Comsa Farms was unable to pay the Principal Amount and the Accrued Interest on Aug. 31, 2006, being the expiry date of the Reprieve Period. Measures Taken to Address Default The company says that it is in the process of exploring the possibility of undertaking a restructuring exercise to regularize its financial positions. According to Comsa Farms, the defaults will not have any material financial implications on the company as the financing facilities involved had already been recognized as current liabilities and non-current liabilities in the its audited financial statements as at March 31, 2005. In term of legal aspect, the Bondholders/Trustee are entitled to enforce any and all of their rights and remedies under the trust deed dated Nov. 6, 2000. About Comsa Farms Headquartered in Sabah, Malaysia, Comsa Farms Berhad engages in the wholesale and retail of fresh and frozen chicken products, meat and foodstuff. Its other activities include livestock, aqua feed milling, poultry feeding, hatchery operations, and layer farming. On April 10, 2006, the company was declared a Practice Note 17 company by Bursa Malaysia due to a stockholders' equity deficit. As an affected listed issuer, Comsa Farms is required to submit a plan to regularize its financial condition. As reported in the Troubled Company Reporter - Asia Pacific on Nov. 3, 2006, the company registered US$63.60 million in total assets and a US$5.00 million shareholders' equity deficit as of Nov. 2. COMSA FARMS: Failure to Submit Financials Prompts Suspension ------------------------------------------------------------ The Troubled Company Reporter - Asia Pacific reported on Oct. 24, 2006, that Comsa Farms Berhad would issue and submit its Annual Report for the financial year ended March 31, 2006, by Oct. 31 to the Bursa Malaysia Securities Berhad. However, in an update, Comsa Farms has failed to submit its March 2006 financial report by the indicated date. Thus the company's trading of securities was suspended from Nov. 1, 2006, at 9:00 a.m., until further notice. Pursuant to Paragraph 9.26 (6) of the Securities Berhad's Listing Requirements, if a listed issuer fails to issue the outstanding financial statements within six months from the expiry of the relevant timeframes, de-listing procedures will be commenced against the company. About Comsa Farms Headquartered in Sabah, Malaysia, Comsa Farms Berhad engages in the wholesale and retail of fresh and frozen chicken products, meat and foodstuff. Its other activities include livestock, aqua feed milling, poultry feeding, hatchery operations, and layer farming. On April 10, 2006, the company was declared a Practice Note 17 company by Bursa Malaysia due to a stockholders' equity deficit. As an affected listed issuer, Comsa Farms is required to submit a plan to regularize its financial condition. As reported in the Troubled Company Reporter - Asia Pacific on Nov. 3, 2006, the company registered US$63.60 million in total assets and a US$5.00 million shareholders' equity deficit as of Nov. 2. JIN LIN: SC Extends Period to Submit Revamp Plan to January 2007 ---------------------------------------------------------------- The Bursa Malaysia Securities Berhad has approved Jin Lin Wood Industries Berhad's application to extend the time within which the company must submit its regularization plan from Sept. 13, 2006, to January 12, 2007. Pursuant to the Securities Commission's Policies and Guidelines on Issue/Offer of Securities, the implementation period of the Proposed Restructuring Scheme is to be within 12 months from the date of the SC's approval, which expired on September 12. Jin Lin's scheme of arrangement with shareholders entails: (i) the reduction of Jin Lin's existing issued and paid-up share capital of MYR44,000,000 comprising 44,000,000 ordinary shares of MYR1.00 each in Jin Lin to MYR8,800,000 comprising 44,000,000 ordinary shares of MYR0.20 each; (ii) the consolidation of 44,000,000 ordinary shares of MYR0.20 each in Jin Lin into 8,800,000 Jin Lin Shares upon completion of the reduction; (iii) the cancellation of the entire issued and paid-up share capital of Jin Lin of MYR8,800,000 comprising 8,800,000 Jin Lin shares upon completion of the consolidation; (iv) that in consideration for the cancellation, Gefung Holdings Berhad will allot and issue 8,800,000 new ordinary shares of MYR1.00 each at par to the shareholders of Jin Lin, as fully paid-up on the basis of one new Gefung Share for every one Jin Lin Share held after the consolidation; and (v) that contingent on the cancellation, Jin Lin will apply MYR8,800,000 out of the credit reserve arising in paying in full at par, 8,800,000 Jin Lin shares, which will be allotted and issued, credited as fully paid-up to Gefung. The share transfer book and the register of members will be closed on November 14, 2006. About Jin Lin Headquartered in Kuala, Lumpur Malaysia, Jin Lin Wood Industries Berhad is engaged in the manufacture and trade of timber and related timber products. The Company is also involved in warehousing, chemical treatment, and investment holding. As of June 30, 2006, the company's balance sheet showed total assets of MYR66,849,000 and total liabilities of MYR100,292,000, resulting into a stockholders' deficit of MYR33,443,000. MYCOM BERHAD: To Seek Plan Extension Pursuant to Timelines ---------------------------------------------------------- Mycom Berhad disclosed on October 31, 2006, that it will ask Bursa Malaysia Securities Berhad to extend the time within which it is required to complete its Restructuring Scheme after these major outstanding events are met: -- execution of trust deeds/deed polls and other creditors' agreements, which is proposed to be implemented by the middle of November 2006; -- approval of floating rate note holders at an extraordinary general meeting and execution of offshore agreements, which is proposed to be executed by the middle of November 2006; and -- execution of the Underwriting Agreement in connection with the Rights Issue with Warrants, which is proposed to be implemented by the middle of November 2006. In order to facilitate the proposed timelines for the implementation of the Rights Issue with Warrants as set out in the Bursa Securities' Listing Requirements, Mycom believes that the Restructuring Scheme will be completed by January 2007. However, the SC, through a letter dated Sept. 15, 2006, stipulated that the Restructuring Scheme will be completed by Dec. 31, 2006, hence Mycom will apply for the time extension of its Revamp Plan. Moreover, Mycom's Restructuring Scheme includes other major outstanding events with these proposed timelines: -- Books closing date for the Capital Reduction, Capital Consolidation and Rights Issue with Warrants, which is proposed to be implemented by the end of November 2006; and -- dispatch of Abridged Prospectus, Rights Subscription Forms and Notice of Provisional Allotmen, which is proposed to be implemented by December 2006. About Mycom Berhad Headquartered in Kuala Lumpur, Malaysia, Mycom Berhad is engaged in the provisions of granite quarry services, manufactures and sells latex rubber thread, tape, plywood, laminated board and sawn timber, cultivates oil palm fruits, and develops property. The company is also involved in hotel operation, provision of management and financial services and investment holding. Operations of the Group are carried out in Malaysia and South Africa. Mycom is in the advanced stage of negotiations to settle its foreign debts. The proposed capital reduction and consolidation by Mycom, as well as the proposed share premium account reduction will reduce the company's accumulated losses. As of March 31, 2006, the company registered accumulated losses of MYR1,155,517,000. The company's June 30, 2006, balance sheet revealed total assets of MYR817,965,000 and total liabilities of MYR1,351,772,000, resulting into a stockholders' deficit of MYR521,083,000. OLYMPIA INDUSTRIES: Jupiter Securities Issues 45 Mil. Shares ------------------------------------------------------------ Olympia Industries Berhad informed the Bursa Malaysia Securities Berhad that on October 27, 2006, Jupiter Securities Sdn Bhd issued and allotted 45 million ordinary shares of MYR1.00 each to Olympia Industries as consideration for the novation of a MYR45-million loan to the company. As a result, Olympia Industries' shareholding in Jupiter Securities has increased from 60.06% to 70.57%. About Olympia Industries Headquartered in Kuala Lumpur, Malaysia, Olympia Industries Berhad organizing and managing numbers forecast pools and public lotteries, operation of recreation clubs, investment holding and property development. Other activities include trading in securities, paint spraying of aluminium, other metal products and architectural products, letting of properties, maintaining and operating internet based transaction facilities and services, food and beverage business, events organizer and project management, travel and tours agency, servicing of oil and gas pipeline, asset management, money lending and stockbroking. Operations are carried out in Malaysia, Papua New Guinea and Singapore. The Company has incurred continuous losses in the past and has also been fined many times by Bursa Malaysia Securities for failing to maintain appropriate standards of corporate responsibility and accountability to the investing public. The company's June 30, 2006, balance sheet revealed a stockholders' deficit of MYR1,041,766,000 resulting from total liabilities of MYR2,035,268,000 exceeding total assets of MYR1,001,289,000. OLYMPIA INDUSTRIES: Subsidiary Served with Wind-Up Petition ----------------------------------------------------------- Olympia Industries Berhad's 71% owned subsidiary, Mascon Sdn Bhd, has been served with a wind-up petition on October 31, 2006, by Poh Loy Earthworks Sdn Bhd. Poh Loy, a contractor for earthworks at a project site located at Cheras, in Daerah Ulu Langat, Selangor, asserts a MYR7,178,794.98 claim, comprising of the outstanding amount of MYR4,785,105.59 and interest charge of MYR2,393,339.39, against Mascon. However, Mascon argues that: -- the outstanding amount had been discharged and settled in full; and -- it has the sole right to recover the outstanding amount directly from the project owner. Olympia Industries' total cost of investment to Mascon is MYR30,655,896. However, full provision has been made for diminution in the value investment of Mascon. Olympia says that the wind-up proceedings will have no material financial and operational impact on the Group. The expected losses from the wind-up proceedings will be based from the amount claimed by the Petitioner. Mascon is in the process of instructing its solicitors to file an affidavit opposing the wind-up petition. About Olympia Industries Headquartered in Kuala Lumpur, Malaysia, Olympia Industries Berhad organizing and managing numbers forecast pools and public lotteries, operation of recreation clubs, investment holding and property development. Other activities include trading in securities, paint spraying of aluminium, other metal products and architectural products, letting of properties, maintaining and operating internet based transaction facilities and services, food and beverage business, events organizer and project management, travel and tours agency, servicing of oil and gas pipeline, asset management, money lending and stockbroking. Operations are carried out in Malaysia, Papua New Guinea and Singapore. The Company has incurred continuous losses in the past and has also been fined many times by Bursa Malaysia Securities for failing to maintain appropriate standards of corporate responsibility and accountability to the investing public. The company's June 30, 2006, balance sheet revealed a stockholders' deficit of MYR1,041,766,000, resulting from total liabilities of MYR2,035,268,000 exceeding total assets of MYR1,001,289,000. OLYMPIA INDUSTRIES: To Submit Plan Extension Request ---------------------------------------------------- Olympia Industries Berhad on October 31, 2006, disclosed that its Restructuring Scheme would be completed by January 2007. However, the Bursa Securities, through a letter dated Sept. 15, 2006, stipulated that the company's Restructuring Scheme can be completed by December 31, 2006. In this regard, Olympia Industries intends to submit an application to the Bursa Securities for the extension of time to complete its revamp plan after these two major outstanding events are met: -- execution of trust deeds/deed polls and other creditors' agreements, which is proposed to be implemented by middle of November 2006; and -- execution of the Underwriting Agreement in connection with the Rights Issue with Warrants, which is expected to be implemented by middle of November 2006. Moreover, Olympia's Restructuring Scheme's major outstanding events, with its proposed timelines, are: -- Books Closing Date for the Capital Reduction, Capital Consolidation and Rights Issue with Warrants, which is expected to be implemented by the end of November 2006; -- dispatch of Abridged Prospectus, Rights Subscription Forms and Notice of Provisional Allotment, which is expected to be implemented by December 2006; and -- listing of new Olympia Industries shares, warrants, Irredeemable Convertible Unsecured Loan Stocks, Redeemable Unsecured Loan Stocks and Irredeemable Convertible Bonds on the Bursa Securities, which is expected to be implemented by January. About Olympia Industries Headquartered in Kuala Lumpur, Malaysia, Olympia Industries Berhad organizing and managing numbers forecast pools and public lotteries, operation of recreation clubs, investment holding and property development. Other activities include trading in securities, paint spraying of aluminium, other metal products and architectural products, letting of properties, maintaining and operating internet based transaction facilities and services, food and beverage business, events organizer and project management, travel and tours agency, servicing of oil and gas pipeline, asset management, money lending and stockbroking. Operations are carried out in Malaysia, Papua New Guinea and Singapore. The Company has incurred continuous losses in the past and has also been fined many times by Bursa Malaysia Securities for failing to maintain appropriate standards of corporate responsibility and accountability to the investing public. The company's June 30, 2006, balance sheet revealed a stockholders' deficit of MYR1,041,766,000 resulting from total liabilities of MYR2,035,268,000 exceeding total assets of MYR1,001,289,000. PANGLOBAL BERHAD: Subsidiary Changes Name ----------------------------------------- Panglobal Berhad disclosed that its subsidiary has changed its name. PanGlobal Technologies Sdn Bhd has changed its name to Perintis Glokal Teknologi Sdn Bhd on October 19, 2006. PanGlobal Technologies is a 60% owned subsidiary of Menara PanGlobal Sdn Bhd, which is a wholly owned subsidiary of PanGlobal Properties Sdn Bhd, which in turn is a wholly owned subsidiary of Panglobal Berhad. About PanGlobal Berhad Headquartered in Kuala Lumpur, Malaysia, PanGlobal Berhad -- http://home.panglobal.com.my/-- is engaged in underwriting all classes of general insurance business, extracting of logs, sawmilling, manufacturing of veneer and extraction of coal. Other activities include property investment and development and leasing of real estate, investment holding, business management, building and fitness club management. PanGlobal is listed under Practice Note 4/2001. The Bursa Malaysia Securities has required the company to regularize its financial condition, curb huge losses and settle debts in order to continue operating. The company has already submitted a Proposed Restructuring Scheme to the Securities Commission on September 9, 2005. On April 6, 2006, the Securities Commission approved PanGlobal Berhad's proposed restructuring scheme. The company's June 30, 2006 balance sheet revealed total assets of MYR692.907 million and total liabilities of MYR905.548 million, resulting to a stockholders' deficit of MYR354.833 million. WEMBLEY INDUSTRIES: SC Rejects Appeal for Time Extension -------------------------------------------------------- The Troubled Company Reporter - Asia Pacific reported on August 4, 2006, that Wembley Industries Holdings Berhad, on July 3, submitted to the Securities Commission an application to extend for another year the deadline of the signing of a supplemental joint venture agreement and completion of the company's restructuring scheme. The joint venture agreement is between Wembley's subsidiary -- Plaza Rakyat Sdn Bhd -- and Dewan Bandaraya, Kuala Lumpur, and is also a part of Wembley's restructuring scheme. SC Plaza Rakyat initially had until July 31, 2006, to sign the supplemental joint venture agreement with Dewan Bandaraya. Wembley has instructed its adviser, Alliance Merchant Bank Berhad, to make a formal request to extend the deadline. However, the Securities Commission, on August 29, 2006, rejected Wembley's request to extend until January 31, 2007, the signing deadline. A subsequent TCR-AP report stated that on September 28, 2006, Wembley Industries had submitted an appeal to the SC to reconsider its extension request. In an update, the SC, through a letter dated October 18, 2006, rejected the appeal made by the company. About Wembley Industries Headquartered in Sarawak Malaysia, Wembley Industries Holdings Berhad is a developer of commercial properties and investment holding. Its other activities are the development of the inter- state bus and taxi terminal, the retail podium and the budget hotel. The company has been placed under the Practice Note 4 category due to its tight cash flow position. On January 7, 2003, Malaysia's Foreign Investment Committee approved the company's regularization plan. Subsequently, on April 7, 2003, the FIC revised its approval to include the possible participation of Daewoo Corporation, the former turnkey contractor of Plaza Rakyat Project in the company's Proposed Debt Restructuring. The company's ability to continue as a going concern hinges on the successful implementation of the Scheme. As of March 31, 2006, the company's balance sheet revealed total assets of MYR422,729,000 and total liabilities of MYR1,214,178,000, resulting in a MYR791,749,000 stockholders' deficit. The Company's accumulated losses as of March 31, 2006, have reached MYR1,063,555,000. ===================== N E W Z E A L A N D ===================== AMP PAPAMOA: Shareholders Opt to Liquidate Business --------------------------------------------------- On October 18, 2006, shareholders of AMP Papamoa Beach Gardens Ltd resolved to liquidate the company's business and appointed Andrew James Stewart as liquidator. The Liquidator can be reached at: Andrew James Stewart Level Nineteen, Morrison Kent House 105 The Terrace, Wellington New Zealand Telephone:(04) 472 0020 Facsimile:(04) 472 7017 APOF CHARITABLE: Liquidation Process Commenced ---------------------------------------------- On October 18, 2006, shareholders of APOF Charitable Papamoa Ltd decided to liquidate the company's business. In this regard, Andrew James Stewart was appointed as liquidator. The Liquidator can be reached at: Andrew James Stewart Level Nineteen, Morrison Kent House 105 The Terrace, Wellington New Zealand Telephone:(04) 472 0020 Facsimile:(04) 472 7017 APOF PAPAMOA: Enters Liquidation Proceedings -------------------------------------------- On October 18, 2006, shareholders of APOF Papamoa Ltd resolved to liquidate the company's business. Accordingly, Andrew James Stewart was appointed as liquidator. The Liquidator can be reached at: Andrew James Stewart Level Nineteen, Morrison Kent House 105 The Terrace, Wellington New Zealand Telephone:(04) 472 0020 Facsimile:(04) 472 7017 CENTRAL INSURANCE: Faces Liquidation Proceedings ------------------------------------------------ A liquidation petition filed against Central Insurance Brokers Ltd will be heard before the High Court of Dunedin on November 16, 2006, at 10:00 a.m. ING Life (NZ) Ltd filed the petition with the Court on October 5, 2006. The Solicitor for the Petitioner can be reached at: Murray John Tingey Bell Gully, Level Twenty-two Vero Centre, 48 Shortland Street Auckland New Zealand DOT & MIKE: Names Parsons and Kenealy as Liquidators ---------------------------------------------------- On October 19, 2006, Dennis Clifford Parsons and Katherine Louise Kenealy were appointed as joint and several liquidators of Dot & Mike Ltd. The Joint Liquidators can be reached at: Dennis Clifford Parsons Katherine Louise Kenealy Indepth Forensic Limited Insolvency Practitioners P.O. Box 278, Hamilton New Zealand Telephone:(07) 957 8674 Facsimile:(07) 957 8677 FOOD QUEENS: Appoints Joint Liquidators --------------------------------------- On October 19, 2006, Thomas Lee Rodewald and Kirsty Michelle Shaw were appointed as joint and several liquidators of Food Queens Catering Ltd. The Joint Liquidators can be reached at: Thomas Lee Rodewald Kirsty Michelle Shaw Rodewald Hart Brown Limited 127 Durham Street (P.O. Box 13-380) Tauranga New Zealand Telephone:(07) 571 6280) Web site: http://www.rhb.co.nz LYDICO FREIGHT: Liquidation Petition Hearing Set on Nov. 16 ----------------------------------------------------------- The High Court of Auckland will hear a liquidation petition filed against Lydico Freight Ltd on November 16, 2006, at 10:00 a.m. Accident Compensation Corporation filed the petition on August 3, 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 or D.X. S.P. 32-505) Porirua City New Zealand PETER HOMAN: Liquidation Hearing Set on November 9 -------------------------------------------------- The Commissioner of Inland Revenue filed before the High Court of Auckland a liquidation petition against Peter Homan Fashions Ltd on July 24, 2006. The petition will be heard before the Court on November 9, 2006, at 10:00 a.m. The Solicitor for the Petitioner can be reached at: Simon John Eisdell Moore Crown Solicitor Meredith Connell Level Seventeen, Forsyth Barr Tower 55-65 Shortland Street Auckland New Zealand R.T. DAVIS: Court to Hear Liquidation on November 16 ---------------------------------------------------- On August 29, 2006, Accident Compensation Corporation filed a liquidation petition against R. T. Davis Builders Ltd before the High Court of Auckland. The petition will be heard on November 16, 2006, at 10:45 a.m. 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 or D.X. S.P. 32-505) Porirua City New Zealand ROBO'S WHOLESALE: Creditors to Prove Claims on November 24 ---------------------------------------------------------- On October 19, 2006, Kim S. Thompson was appointed as liquidator in the liquidation of Robo's Wholesale Cars Ltd. In this regard, Liquidator Thompson require company creditors to submit their proofs of claim by November 24, 2006, or be excluded from the benefit of any distribution the Company will make. The Liquidator can be reached at: Kim S. Thompson P.O. Box 1027, Hamilton New Zealand Telephone:(07) 834 6027 Facsimile:(07) 834 6064 TERRAFIRMA LANDSCAPING: Court to Hear CIR's Liquidation Petition ---------------------------------------------------------------- An application to liquidate Terrafirma Landscaping Ltd will be heard before the High Court of Auckland on November 9, 2006, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition with the Court on August 14, 2006. The Solicitor for the Petitioner can be reached at: Simon John Eisdell Moore Crown Solicitor Meredith Connell Level Seventeen, Forsyth Barr Tower 55-65 Shortland Street Auckland New Zealand VOLCANIC INVESTMENTS: Court Set to Hear CIR's Petition ------------------------------------------------------- On August 29, 2006, the Commissioner of Inland Revenue filed before the High Court of Auckland a liquidation petition against Volcanic Investments Ltd. The petition will be heard on November 9, 2006, at 10:45 a.m. The Solicitor for the Petitioner can be reached at: Simon John Eisdell Moore Crown Solicitor Meredith Connell Level Seventeen, Forsyth Barr Tower 55-65 Shortland Street Auckland New Zealand ===================== P H I L I P P I N E S ===================== ALLIED BANK: Moody's Revises B1 Deposit Rating Outlook to Stable ---------------------------------------------------------------- On November 2, 2006, Moody's Investors Service revised the outlook of Allied Banking Corp.'s foreign currency long-term deposit rating of B1 to stable from negative. The bank's foreign currency Not-Prime short-term deposit rating and bank financial strength rating of E+ remain stable. This action follows the change in Moody's outlook to stable for the Philippine country ceilings -- Ba3 foreign currency long- term debt and B1 local currency government bond rating. BANCO DE ORO: Moody's Changes Ba3 Debt Rating Outlook to Stable --------------------------------------------------------------- On November 2, 2006, Moody's Investors Service revised the outlook of Banco de Oro Universal Bank's foreign currency senior debt rating of Ba3 and foreign currency long-term deposit rating of B1 from negative to stable. The outlooks for Banco de Oro's foreign currency Not-Prime short-term deposit rating and bank financial strength rating of D remain stable. This action follows the change in Moody's outlook to stable for the Philippine country ceilings -- Ba3 foreign currency long- term debt and B1 local currency government bond rating. BANK OF THE PHILIPPINE ISLANDS: Moody's Amends Outlook to Stable ---------------------------------------------------------------- On November 2, 2006, Moody's Investors Service revised the outlook of the Bank of the Philippine Islands' foreign currency long-term deposit rating of B1 to stable from negative. The outlooks for BPI's foreign currency Not-Prime short-term deposit rating and bank financial strength rating of C- remains stable. This action follows the change in Moody's outlook to stable for the Philippine country ceilings -- Ba3 foreign currency long- term debt and B1 local currency government bond rating. DEVELOPMENT BANK: Moody's Revises B1 Rating Outlook to Stable ------------------------------------------------------------- Moody's Investors Service has revised the outlook of Development Bank of the Philippines' foreign currency long-term deposit rating of B1 and local currency long-term deposit rating of Ba2 from negative to stable. The outlooks for DBP's foreign currency Not-Prime short-term deposit rating and bank financial strength rating of D remain stable. This action follows the change in Moody's outlook to stable for the Philippine country ceilings -- Ba3 foreign currency long- term debt and B1 local currency government bond rating. EQUITABLE PCI: Moody's Revises Outlook for B1 Rating to Stable -------------------------------------------------------------- On November 2, 2006, Moody's Investors Service revised the outlook of Equitable-PCI Bank's foreign currency senior debt rating of Ba3, foreign currency long-term deposit rating of B1 and foreign currency subordinated debt rating of Ba3 to stable from negative. The outlook for Equitable-PCI's foreign currency Not-Prime short-term deposit rating remains stable. While the outlook for its bank financial strength rating of D- remains positive. This action follows the change in Moody's outlook to stable for the Philippine country ceilings -- Ba3 foreign currency long- term debt and B1 local currency government bond rating. LAND BANK: Moody's Changes Outlook of B1 Rating to Stable --------------------------------------------------------- On November 2, 2006, Moody's Investors Service has revised the outlook of the Land Bank of the Philippines's foreign currency long-term deposit rating of B1 to stable from negative. The outlook for Land Bank's foreign currency Not-Prime short- term deposit rating and bank financial strength rating of E+ remains stable. This action follows the change in Moody's outlook to stable for the Philippine country ceilings -- Ba3 foreign currency long- term debt and B1 local currency government bond rating. See press release of November 2, 2006, for greater discussion on sovereign issues. METROPOLITAN BANK: Moody's Changes B1 Rating Outlook to Stable -------------------------------------------------------------- Moody's Investors Service has revised the outlook of Metropolitan Bank & Trust Co.'s foreign currency long-term deposit rating of B1 and foreign currency subordinated debt rating of Ba3 from negative to stable. The outlooks for Metropolitan Bank's foreign currency Not-Prime short-term deposit rating and bank financial strength rating of D remain stable. This action follows the change in Moody's outlook to stable for the Philippine country ceilings -- Ba3 foreign currency long- term debt and B1 local currency government bond rating. METROPOLITAN BANK: To Seek Reconsideration of Tax Payment Order --------------------------------------------------------------- In a filing with the Philippine Stock Exchange, Metropolitan Bank & Trust Co. quoted a report from the BusinessWorld published on November 3, 2006, entitled "Metrobank told to pay P3.79B in taxes." BusinessWorld stated that the Court of Tax Appeals has ordered Metropolitan Bank to pay PHP3.79 billion in back taxes for the years 1995 to 1998, with a 25% penalty and 20% delinquency interest. According to the paper, part of the back taxes is a PHP3.58-billion assessment by the Bureau of Internal Revenue for documentary stamp tax on the bank's universal special savings account. The court's First Division ruled that this account was a type of time deposit subject to stamp tax under the National Internal Revenue Code of 1993, BusinessWorld noted. BusinessWorld relates that it has been told by Metropolitan Bank assistant corporate secretary Antonio V. Viray that the bank would seek reconsideration of the tax court's ruling. "This is an industry issue, and we believe we have good grounds to have it reversed. There's a good chance the Supreme Court will see our point," BusinessWorld cited Mr. Viray, as saying. Metropolitan Bank notes in its PSE statement that its handling lawyer has not received an official copy of the Court of Tax Appeals Order, and confirms Mr. Viray's statements. About Metrobank Metropolitan Bank and Trust Company -- http://www.metrobank.com.ph/-- is the flagship company of the Metrobank Group. Metrobank provides a host of deposit, savings, and loan products as well as electronic banking services like internet banking, mobile banking, and phone banking, as well as its huge ATM network. Metrobank is also the leading provider of trade finance in the country, and its overseas branch network has enabled it to service the fund remittances of Filipino overseas contract workers. The Bank has 583 local branches and 35 international branches and offices located in Taiwan, China, Japan, Korea, Guam, United States, Hong Kong, Singapore, Bahamas, and in Europe. * * * On March 3, 2006, the Troubled Company Reporter - Asia Pacific reported that Standard and Poor's Rating Service assigned a CCC+ rating on Metrobank's US$125-million non-cumulative capital securities, whereas Moody's Investors Service Rating Agency issued a B- rating on the same capital instruments. Moody's Investors Service gave Metrobank a foreign currency long-term deposit rating of B1 and foreign currency subordinated debt rating of Ba3. On September 21, 2006, the TCR-AP reported that Fitch Ratings upgraded Metrobank's Individual rating to 'D' from 'D/E'. All the bank's other ratings were affirmed: * Long-term Issuer Default rating 'BB-' -- with a stable Outlook, * Short-term rating 'B,' * Support rating '3. PHILIPPINE NATIONAL BANK: NPL Ratio Drops to 27% as of Sept. 29 --------------------------------------------------------------- Philippine National Bank's non-performing loans accounted for 27% of its total loans as of September 29, 2006, down from 29% during the same period last year, Xinhua Financial News Service reveals. According to the Philippine Daily Inquirer, PNB's latest statement of condition showed that its total NPLs decreased to PHP27.41 billion from PHP28.27 billion a year earlier. Return on equity improved to 3.5% compared to 2.6% a year ago, the paper says. About Philippine National Bank Philippine National Bank -- http://www.pnb.com.ph/-- is the Philippine's first universal bank established on July 22, 1916. The Bank's core business consists of lending and deposit-taking activities from corporate, middle market and retail customers, as well as various government units. Its other principal activities include bill discounting, fund transfers, remittance servicing, foreign exchange dealings, retail banking, trust services, treasury operations and trade finance. Through its subsidiaries, PNB engages in a number of diversified financial and related businesses such as international merchant banking, investment banking, life/non-life insurance, leasing, financing of small-and-medium-sized industries, and financial advisory services. It introduced innovations such as the bank on wheels, computerized banking, ATM banking, mobile money changing and domestic travelers' checks. * * * Standard and Poor's Ratings Services has given PNB 'B' Short- Term Foreign Issuer Credit and Short-Term Local Issuer Credit Ratings, as well as 'B-' Long-Term Foreign Issuer Credit and Long-Term Local Issuer Credit Ratings effective as of April 26, 2006. Moody's Investors Service gave PNB a B1 foreign currency long- term deposit rating, a Ba2 local currency senior debt rating, and a Ba3 local currency subordinated debt rating. On October 31 2006, Fitch Ratings affirmed PNB's Individual rating at 'E' and Support rating '3' after a review of the bank. PHILIPPINE NATIONAL BANK: Moody's Revises Outlook to Stable ----------------------------------------------------------- Moody's Investors Service has revised the outlook of Philippine National Bank's foreign currency long-term deposit rating of B1, local currency senior debt rating of Ba2, and local currency subordinated debt rating of Ba3 to stable from negative. The outlook for PNB's foreign currency Not-Prime short-term deposit rating and bank financial strength rating of E remains stable. This action follows the change in Moody's outlook to stable for the Philippine country ceilings -- Ba3 foreign currency long- term debt and B1 local currency government bond rating. RIZAL COMMERCIAL BANKING: Moody's Changes Rtg Outlook to Stable --------------------------------------------------------------- Moody's Investors Service has revised the outlook for Rizal Commercial Banking Corp.'s foreign currency senior debt rating of Ba3, foreign currency Hybrid Tier 1 of B3, and foreign currency long-term deposit rating of B1 to stable from negative. The outlook for RCBC's foreign currency Not-Prime short-term deposit rating and bank financial strength rating of E+ remains stable. This action follows the change in Moody's outlook to stable for the Philippine country ceilings -- Ba3 foreign currency long- term debt and B1 local currency government bond rating. UNITED COCONUT PLANTERS: Moody's Changes Rtg Outlook to Stable -------------------------------------------------------------- Moody's Investors Service has revised the outlook of United Coconut Planters Bank's foreign currency long-term deposit rating of B1 from negative to stable. The outlooks for UCPB's foreign currency Not-Prime short-term deposit rating and bank financial strength rating of E remains stable. This action follows the change in Moody's outlook to stable for the Philippine country ceilings -- Ba3 foreign currency long- term debt and B1 local currency government bond rating. UNION BANK: Sept. 29 NPLs Increase to 11.33% from 9.46% in June --------------------------------------------------------------- Union Bank of the Philippines's held non-performing loans, which accounted for 11.33% of its loan portfolio on September 29, 2006, having accounted for 9.46% at the end of June, Xinhua Financial News Service cites the bank as saying. Non-Performing loans held by Union Bank of the Philippines accounted for 11.33% of its loan portfolio on Sept 29, having accounted for 9.46 percent at the end of June, UnionBank said. Based on its latest statement of condition, the bank showed PHP8.01 billion of NPLs on September 29, 2006, an increase from PHP4.06 billion at the end of June, the Philippine Inquirer relates. Inquirer notes that the bank made specific provisions of PHP5.21 billion for probable losses and general provisions of PHP1.06 billion. The bank's return on equity stood at 9.21%, Xinhua relates. About UnionBank Union Bank of the Philippines -- http://www.unionbankph.com/-- offers a wide range of products and services to both corporate and individual clients. Its core businesses are payment services, corporate cash management foreign exchange, capital markets, corporate finance and consumer finance. It is also engaged in investment management, trust banking, insurance brokerage, currency brokerage, private banking, pre-need products marketing, investment banking and financial advisory and real property development and marketing via Union Properties, Inc. Moody's Investors Service gave UnionBank a 'Ba3' Senior Unsecured Debt and Long-Term Bank Deposits Ratings effective May 25, 2006. ================= S I N G A P O R E ================= AVENTIS PHARMA: Creditors Must Submit Proofs of Claim by Dec. 3 --------------------------------------------------------------- The creditors of Aventis Pharma Industrial Operations Pte Ltd, which is in members' voluntary liquidation, are required to file their proofs of debt by December 3, 2006, to be included in the company's distribution of dividend. Failure to comply with the requirement will exclude the creditor from sharing in the company's distribution of dividend. Aventis Pharma's liquidator can be reached at: Tam Chee Chong c/o 6 Shenton Way #32-00 DBS Building Tower Two Singapore 068809 BENCHMARK ELECTRONICS: S&P Places BB- Rating on CreditWatch ----------------------------------------------------------- Standard & Poor's Ratings Services placed its 'BB-' corporate credit rating on Angleton, Texas-based Benchmark Electronics Inc. on CreditWatch with positive implications after the company announced it will acquire Pemstar Inc. in a stock transaction valued at about US$300 million. Pemstar is an electronics manufacturing service company that has good penetration in adjacent markets to Benchmark. Pemstar reported revenues of US$871 million for the fiscal year ended March 31, 2006, approximately 46% of which is derived from industrial equipment programs, nearly double Benchmark's revenue contribution from that segment. Profitability has been suppressed by restructuring actions and an unprofitable contract that is being evaluated to determine strategic alternatives. "The acquisition will broaden Benchmark's market reach in higher margin, stable programs in industrial equipment as well as augmenting low cost manufacturing capacity," said Standard & Poor's credit analyst Lucy Patricola. The acquisition will increase Benchmark's revenue by over 30% and enhance its business position, which has been a limiting factor for its ratings. While Benchmark retains sufficient liquidity to extinguish Pemstar debt of about US$100 million, leverage would remain low, under 1x, if the debt remains outstanding. S&P will meet with management to discuss and evaluate the enhanced business prospects of the combined companies, as well as any restructuring costs and their impact, to determine the final impact on the rating. * * * Benchmark Electronics, Inc. is in the business of manufacturing electronics and providing services to original equipment manufacturers of telecommunication equipment, computers and related products for business enterprises, video/audio/entertainment products, industrial control equipment, testing and instrumentation products and medical devices. The company has operations in United States, Brazil, Mexico, Europe, and Asia, which includes Thailand, China and Singapore. CANON ENGINEERING: Creditors' Proofs of Debt Due on December 4 -------------------------------------------------------------- Canon Engineering Singapore Pte Ltd, which was placed under members' voluntary liquidation, requires its creditors to submit their proofs of debt by December 4, 2006, so to be included in the company's distribution of dividend. The company's liquidator can be reached at: Ong Lee Wha 545 Orchard Road #11-07 Far East Shopping Centre Singapore 238882 HIQ BIOSCIENCE: High Court to Hear Wind-Up Petition on Nov. 24 -------------------------------------------------------------- Eddie Ong Chin Hin filed a wind-up petition against HIQ Bioscience Pte Ltd on October 25, 2006. The wind-up petition will be heard before the High Court of Singapore on November 24, 2006, at 10:00 a.m. The Petitioner's solicitors can be reached at: Drew & Napier LLC 20 Raffles Place #17-00 Ocean Towers Singapore 048620 REFCO INC: Court Gives Final OK on Amended Disclosure Statement --------------------------------------------------------------- The Honorable Robert D. Drain of the United States Bankruptcy Court for the Southern District of New York has issued a final written order approving Refco Inc. and its debtor-affiliates' Disclosure Statement, as modified, with respect to its First Amended Plan of Reorganization. Judge Drain found that the Disclosure Statement contains "adequate information" as that term is defined in Section 1125 of the Bankruptcy Code. Judge Drain ruled that the Disclosure Statement may be amended and modified from time to time to incorporate immaterial modifications, fill in blanks, and reflect any modifications that the Debtors determine to be appropriate, which do not materially change the Disclosure Statement or affect any rights of a party-in-interest All objections, to the extent not withdrawn or resolved, are overruled. The Debtors are authorized and empowered to take all steps and perform acts as may be necessary to implement and effectuate the Disclosure Statement Order. Amended Disclosure Statement As reported in the Troubled Company Reporter on Oct. 11, 2006, the Debtors filed with the Court their Amended Plan of Reorganization and accompanying Disclosure Statement, with Marc Kirschner, the Chapter 11 trustee for Refco Capital Markets, Ltd.; the Official Committee of Unsecured Creditors; and the Additional Committee of Unsecured Creditors as co-proponents. The Amended Plan contemplates that on or prior to the effective date of the plan, the RCM Chapter 11 Case will be converted to a case under subchapter III of Chapter 7 of the Bankruptcy Code, unless the Debtors and the RCM Trustee agree that there is a compelling reason for the RCM Estate to be administered under Chapter 11. In the event of a conversion to Chapter 7, the Plan will constitute a settlement and compromise between the RCM Estate and the Debtors' Estates, on one hand, and among the Estates of the various Debtors and certain creditors, on the other hand, for which approval is sought simultaneously with the confirmation of the Plan. Creditor Recovery Under Amended Plan The Amended Plan separately classifies Claims against and Interests in: * Refco and its 24 affiliates -- Contributing Debtors, * Refco Capital, Markets, Ltd., and * Refco F/X Associates, LLC. Administrative and Priority Tax Claims against the Contributing Debtors, RCM, and FXA are not classified under the Plan. Administrative and Priority Tax Claims will be paid in full in cash. The Amended Plan groups Claims against and Interest in the Contributing Debtors into eight classes: Estimated Estimated Class Description Claim Amount % Recovery ----- ----------- ------------ ---------- 1 Non-Tax Priority Claims US$3,000,000 100.0% 2 Other Secured Claims US$700,000 100.0% 3 Secured Lender Claims US$704,000,000 100.0% 4 Senior Subordinated Note Claims US$397,400,000 83.4% 5(a) Contributing Debtors Gen. Unsecured Claims US$522,700,000 23.0% 5(b) Related Claims - 0.0% 6 RCM Intercompany Claims - N/A 7 Subordinated Claims - 0.0% 8 Old Equity Interests - 0.0% The Class 3 Secured Lender Claims against the Contributing Debtors will be allowed and paid to the extent provided for in the Early Payment Order. RCM will be entitled to an additional Claim if, at the conclusion of the claims reconciliation process: (x) the total Allowed Contributing Debtors General Unsecured Claims are less than US$394,000,000; and (y) the Distributions to be made to Holders of Allowed Contributing Debtors General Unsecured Claims would result in a recovery for the Holders in excess of 35% from the sum of the Contributing Debtors Distributive Assets and the Contributing Debtors' portion of the RGL FXCM Distribution. Specifically, RCM will be entitled to an additional Claim equal to the positive difference between US$394,000,000 minus the amount of the Allowed Contributing Debtors General Unsecured Claims. The Additional RCM Claim will participate pro rata in all Distributions from Contributing Debtors Distributive Assets and the Contributing Debtors' portion of the RGL FXCM Distribution to Holders of Allowed Contributing Debtors General Unsecured Claims that exceed the 35% recovery threshold. The Additional RCM Claim, however, will not be subject to the 40% limit on Distributions set forth in the Contributing Debtors General Unsecured Claim Distribution. The Amended Plan groups Claims against FXA into seven classes: Estimated Estimated Class Description Claim Amount % Recovery ----- ----------- ------------ ---------- 1 FXA Non-Tax Priority Claims US$165,000 100.0% 2 FXA Other Secured Claims US$120,000 100.0% 3 FXA Secured Lender Claims US$704,000,000 N/A 4 FXA Sr Sub. Note Claims US$397,400,000 N/A 5(a) FXA Gen. Unsecured Claims US$140,700,000 to US$180,700,000 35.0% 5(b) Related Claims - 0.0% 6 FXA Convenience Claims US$12,500,000 40.0% 7 FXA Subordinated Claims - 0.0% The Amended Plan provides that Class 5(a) FXA General Unsecured Claims less than or equal to US$10,000, or greater than US$10,000 but, with respect to which, Holder voluntarily reduces the Claim to US$10,000, will be treated as Class 6 FXA Convenience Claims. The aggregate amount of Distributions to Class 6 FXA Convenience Claims is limited to US$5,000,000. To the extent that the amount of Class 5(a) FXA General Unsecured Claims electing to receive a Class 6 FXA Convenience Claim causes the aggregate amount to exceed the cap, the Holders of Claims permitted to elect the treatment will be determined by reference to the amount of the Claim, with the Claim in the lowest amount being selected first and the next largest claim being selected thereafter until the cap is reached. The ranges of claims and recoveries for Holders of FXA General Unsecured Claims are subject to material deviations and may be significantly lower due to: (i) alleged administrative expenses incurred in trading activity post-bankruptcy; and (ii) a dispute with a related entity in Japan concerning ownership of a significant portion of FXA cash. FXA has commenced a turnover action against Japan KK to require it to turn certain cash assets over to FXA. The Amended Plan groups RCM Claims into seven classes: Estimated Estimated Class Description Claim Amount % Recovery ----- ----------- ------------ ---------- 1 RCM Non-Tax Priority Claims US$90,000 100.0% 2 RCM Other Secured Claims US$110,400,000 100.0% 3 RCM FX/Unsecured Claims US$985,600,000 37.6% 4 RCM Securities Customer Claims US$2,793,800,000 85.4% 5 RCM Leuthold Metals Claims US$15,600,000 100.0% 6 Related Claims - 0.0% 7 RCM Subordinated Claims - 0.0% Holders of Allowed Related Claims will be subordinated and will receive no Distribution unless all Holders of Allowed RCM FX/Unsecured Claims, Allowed RCM Securities Customer Claims and Allowed RCM Leuthold Metals Claims have been paid in full. To the extent that a Non-Debtor Affiliate has an Intercompany Claim against RCM, the Claim will be resolved by: (a) the netting of the Claim against any Claim held by the Contributing Debtors or RCM against the Non-Debtor Affiliate; or (b) to the extent that a distribution is made by RCM on account of the Claim, the Contributing Debtors will reimburse RCM for payments from any amounts the Contributing Debtors receive directly or indirectly from any Non-Debtor Affiliate. Holders of Claims under these classes are impaired and entitled to vote on the Amended Plan: -- Class 4 Senior Subordinated Note Claims, Class 5(a) Contributing Debtors General Unsecured Claims, Class 5(b) Related Claims and Class 6 RCM Intercompany Claims, against one or more of the Contributing Debtors; -- Class 4 FXA Senior Subordinated Note Claims, Class 5(a) FXA General Unsecured Claims, Class 5(b) Related Claims, and Class 6 FXA Convenience Claims, against FXA; and -- Class 3 RCM FX/Unsecured Claims, Class 4 RCM Securities Customer Claims, Class 5 Leuthold Metals Claims and Class 6 Related Claims, against RCM. BAWAG Proceeds Allocation On October 5, 2006, the Court approved a partial allocation of the proceeds of a settlement agreement among the Debtors, the Creditors Committee and BAWAG P.S.K. Bank fur Arbeit und Wirtschaft und Osterreichische Postsparkasse Aktiengesellschaft. The BAWAG Allocation Order provides that US$100,000,000 of the BAWAG Guaranteed Proceeds was indefeasibly allocated to Refco Group Ltd., LLC, for payment to the Senior Secured Lenders. The consideration given by BAWAG, aside from the US$100,000,000 already earmarked for RGL, will be allocated this way: * US$150,000,000 will be allocated to the Contributing Debtors for payment to the Holders of Senior Subordinated Note Claims; * US$56,250,000 -- plus 100% of up to US$150,000,000 in the form of the BAWAG Contingent Payment -- will be allocated to the Contributing Debtors for payment to the Holders of Allowed Contributing Debtors General Unsecured Claims; * US$200,000,000 will be allocated to RCM for payment to the Holders of RCM Securities Customer Claims and RCM FX/Unsecured Claims; and * the value of each release granted by BAWAG in favor of each of the Debtors and RCM would be allocated to each of the Debtors and RCM, as applicable, without any resulting transfer of Cash or other Distribution. On September 21, 2006, BAWAG wired US$337,500,000 to the Debtors and US$337,500,000 to the U.S. government. The Debtors expect to receive US$168,700,000 of the amount transferred by BAWAG to the U.S. government prior to confirmation of the Plan. The BAWAG Settlement Agreement provides that: -- any creditor who voluntarily elects to receive any portion of the BAWAG Proceeds must release BAWAG from all claims or actions arising from or related to the Debtors; and -- any portion of the BAWAG Proceeds that would have been allocated to any creditor that elects not to provide the required release must be returned to BAWAG. The Amended Plan provides that Holders of Allowed Claims against the Contributing Debtors and RCM can, if they affirmatively elect, opt out of the BAWAG settlement and thereby return their share of BAWAG Proceeds to BAWAG in lieu of agreeing to release BAWAG from liability. Opting out, however, will significantly reduce the aggregate recoveries to be received by the Creditors under the Plan: Estimated Plan Estimated Plan Recovery With Recovery Minus Creditor Class BAWAG Proceeds BAWAG Proceeds -------------- -------------- -------------- Senior Subordinated Note Claims 83.4% 45.7% Contributing Debtors General Unsecured Claims 23.0% 12.2% RCM Securities Customer Claims 85.4% 80.6% RCM FX/Unsecured Claims 37.6% 30.9% US$140,000,000,000 Claim Pile As of September 29, 2006, the Debtors' claims agent, Omni Management Group, LLC, had received approximately 14,000 timely filed proofs of claim in the Debtors' Chapter 11 cases asserting more than US$140,000,000,000 in the aggregate, not including claims asserted in unliquidated amounts. The Debtors and their professionals have been engaged in the process of evaluating the proofs of claim to determine whether objections seeking disallowance, reclassification or reduction of certain asserted claims should be filed. The Debtors expect to seek disallowance of approximately US$130,000,000,000 of the claims. Administration of Refco Estates The Joint Sub-Committee of the Official Creditors Committees will designate an entity to serve as Plan Administrator for both Reorganized Refco and Reorganized FXA. The Joint Sub-Committee will also select a trustee for the Litigation Trust to be established under the Plan. The Litigation Trust will be structured in a manner that provides for a senior Tranche A and a junior Tranche B. No Distributions of Litigation Trust Interests will be made in respect of Tranche B until Tranche A has been fully and indefeasibly paid. However, Holders of Allowed Old Equity Interests may receive recoveries directly from 10% of the IPO Underwriter Claims Recovery in Tranche A. The Litigation Trust will have an initial five-year term, which may be extended for one or more one-year terms. The Trust may be terminated earlier than its scheduled termination if: -- the Bankruptcy Court has entered a final order closing all of or the last of the Chapter 11 cases and the RCM Chapter 11 case to the extent the RCM Chapter 11 case was \ converted to Chapter 7; and -- the Litigation Trustee has administered all the Trust assets and performed all other duties required under the Plan. The RCM Trustee will retain his rights, powers and duties necessary to carry out his responsibilities with respect to the RCM Estate. The Court will convene a hearing on October 16, 2006, at 10 a.m., to consider whether the Amended Disclosure Statement contains adequate information within the meaning of Section 1125 of the Bankruptcy Code. Objections, if any, are due by Oct. 9. A blacklined copy of the Debtors' Amended Disclosure Statement is available for free at: http://ResearchArchives.com/t/s?132f About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. Refco LLC, an affiliate, filed for chapter 7 protection on Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a regulated commodity futures company that has businesses in the United States, London, Asia and Canada. Refco, LLC, filed for bankruptcy protection in order to consummate the sale of substantially all of its assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc. Albert Togut, the chapter 7 trustee, is represented by Togut, Segal & Segal LLP. On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner is represented by Bingham McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda. Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through 06-11262). Refco Commodity Management, Inc., formerly known as CIS Investments, Inc., a debtor-affiliate of Refco Inc., filed for chapter 11 protection on Oct. 16, 2006 (Bankr. S.D.N.Y. Case No. 06-12436). (Refco Bankruptcy News, Issue No. 47; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). REFCO INC: Court Sets Dec. 15 Joint Plan Confirmation Hearing ------------------------------------------------------------- The United States Bankruptcy Court for the Southern District of New York set Dec. 15, 2006, at 10:00 a.m., as the hearing to consider confirmation of the First Amended Joint Plan of Reorganization filed by Refco Inc. and its debtor-affiliates; the Official Committee of Unsecured Creditors of Refco and the Additional Committee; and Marc Kirschner, the Chapter 11 Trustee for Refco Capital Markets, Ltd. The Confirmation Hearing may be continued from time to time by announcing it in open court, without further notice to parties- in-interest. The Court also set: * December 1, 2006, at 4:00 p.m., as the deadline for filing and serving objections to Plan confirmation; * November 20, 2006, at 4:00 p.m., as the deadline for filing and serving objections to claims solely for purposes of voting on the Plan, which deadline will not apply to Claims Objections that may be asserted for purposes other than voting on the Plan; * December 5, 2006, at 4:00 p.m., as the deadline for filing and serving motions pursuant to Rule 3018(a) of the Federal Rules of Bankruptcy Procedure seeking temporary allowance of claims for voting purposes; and * December 8, 2006, at 5:00 p.m., as the deadline for submitting ballots to Financial Balloting Group LLC, the Debtors' special voting agent. Claimholders whose claims are subject to an objection that was served after the Claims Objection Deadline will not be subject to the Rule 3018(a) Motion Deadline. Pursuant to Sections 105(a) and 502(a) of the Bankruptcy Code, any claim as to which an objection has been filed before the Claims Objection Deadline will be ineligible to vote on the Plan, and that claim will not be counted in determining whether the Section 1126(c) requirements have been met with respect to the Plan: (i) unless the claim has been temporarily allowed for voting purposes pursuant to Rule 3018(a); or (ii) except to the extent that the objection to that claim has been resolved in favor of the creditor asserting the claim. Holders of claims in Contributing Debtors Classes 4, 5(a), 5(b) and 6; FXA Classes 4, 5(a), 5(b) and 6; and RCM Classes 3, 4, 5, 6, 7 and 8 are impaired and entitled to vote on the Plan. Failure of a claimholder to timely deliver a properly executed Ballot will be deemed to constitute an abstention by that holder with respect to voting on the Plan, and that abstention will not be counted as a vote for or against the Plan. The Honorable Robert D. Drain fixed Oct. 16, 2006, as the record date for purposes of determining creditors and equity holders entitled to receive Solicitation Packages and related materials, if any; and creditors entitled to vote to accept or reject the Plan and elect certain treatment. Judge Drain directed the Debtors to mail to all of their known creditors, the Senior Subordinated Note Indenture Trustee and equity security holders as of the Record Date, and all other entities required to be served under Rules 2002 and 3017, notice of, inter alia, the Confirmation Hearing, within Oct. 25, 2006. Furthermore, Judge Drain ruled that each Senior Subordinated Note Claimholder will receive BAWAG Proceeds as a component of its pro rata share of the Senior Subordinated Note Holder Distribution, unless that Noteholder opts out of the BAWAG Settlement. Only the Senior Subordinated Note Claimholders who vote to reject the Plan will be eligible to elect not to receive Senior Subordinated Note Holder BAWAG Proceeds. Election by any Senior Subordinated Note Claimholder who votes to accept the Plan will be disregarded. Holders of Class 3 RCM FX/Unsecured Claims and Class 4 RCM Securities Customer Claims under the Plan will be deemed to have agreed to: (i) assign their RCM Related Claims against the Debtors to the Litigation Trust; (ii) affirm their understandings that their RCM Related Claims against any Contributing Non-Debtor Affiliate will be subordinated pursuant to the Plan, as of each applicable Contributing Non-Debtor Affiliate Trigger Date, to all other existing claims against and equity interests in the applicable Contributing Non-Debtor Affiliate; and (iii) release the Secured Lenders from the Secured Lender Released Claims, if any, unless the holders elect not to accept that treatment. The Ballots for Class 6 FXA Convenience Claims, Class 6 RCM FX/Unsecured Convenience Claims and Class 7 RCM Securities Customer Convenience Claims will contain the same Ballot elections as the Ballots for Class 5(a) FXA General Unsecured Claims, Class 3 RCM FX/Unsecured Claims, and Class 4 RCM Securities Customer Claims. However, the Ballot elections made on a particular Convenience Class Ballot will be effective only if Convenience Class treatment is denied to the claimant making the Ballot elections due to oversubscription of the applicable Convenience Class. Parties-in-interest are entitled to request that the Debtors demonstrate cause for any instance in which: (a) a Ballot was withdrawn; (b) a vote was changed by the filing of a superseding Ballot; or (c) the Voting Deadline was extended. The deadline for filing and serving a Request for Cause will be December 14, 2006, at 12:00 noon. Notwithstanding Local Rule 3018-1(b), the Debtors' voting agents will serve by December 12, 2006, notice to any claimholder who is permitted to make an election with respect to a claim treatment, but whose election is deemed ineffective or otherwise is not counted. About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. Refco LLC, an affiliate, filed for chapter 7 protection on Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a regulated commodity futures company that has businesses in the United States, London, Asia and Canada. Refco, LLC, filed for bankruptcy protection in order to consummate the sale of substantially all of its assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc. Albert Togut, the chapter 7 trustee, is represented by Togut, Segal & Segal LLP. On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner is represented by Bingham McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda. Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through 06-11262). Refco Commodity Management, Inc., formerly known as CIS Investments, Inc., a debtor-affiliate of Refco Inc., filed for chapter 11 protection on Oct. 16, 2006 (Bankr. S.D.N.Y. Case No. 06-12436). (Refco Bankruptcy News, Issue No. 47; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). REFCO INC: Court Offers Clarification on Nov. 15 Claims Bar Date ---------------------------------------------------------------- The Honorable Robert D. Drain of the United States Bankruptcy Court for the Southern District of New York clarified that in the case of Refco Capital Markets Ltd., the bar date for administrative claims will apply whether RCM is being administered in Chapter 11 or Chapter 7 of the Bankruptcy Code. The Bankruptcy Court previously set November 15, 2006, as the deadline for filing administrative expense payment requests in Refco Inc. and its debtor-affiliates' chapter 11 cases. The Court also set a subsequent Administrative Bar Date for claims that accrue from November 1, 2006, through the effective date of the Debtors' Chapter 11 Plan of Reorganization. That deadline will be on the 30th calendar day following the Plan Effective Date. Judge Drain ruled that these claims do not require filing of Administrative Expense Payment Requests on or before the Administrative Bar Dates: -- postpetition claims of professionals retained in the Debtors' cases for compensation for postpetition fees and Expenses; -- postpetition claims based on goods or services provided in the ordinary course of business, which are paid or remain payable according to typical and customary business terms. Failure to file requests for payment of Ordinary Course of Business Claims by the Administrative Bar Dates will not bar payment of claims in the ordinary course of business. Judge Drain further ruled that the Ad Hoc Committee of Equity Security Holders, Bank of America, N.A., and the Debtors' prepetition secured lenders under the August 2004 credit agreement are exempted from the Initial Administrative Bar Date. Man Financial Inc. will have until November 27, 2006, to file all of its Administrative Expense Payment Requests. Any Administrative Expense Claimholder against the Debtors who is required, but fails to file an Administrative Expense Payment Request on or before the Administrative Bar Dates or the date, as to Man, will: (i) be forever barred, estopped, and permanently enjoined from asserting Administrative Expense Claim against the Debtors, their successors, or their property; and (ii) not be entitled to receive further notices regarding the Administrative Expense Claims. About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. Refco LLC, an affiliate, filed for chapter 7 protection on Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a regulated commodity futures company that has businesses in the United States, London, Asia and Canada. Refco, LLC, filed for bankruptcy protection in order to consummate the sale of substantially all of its assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc. Albert Togut, the chapter 7 trustee, is represented by Togut, Segal & Segal LLP. On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner is represented by Bingham McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda. Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through 06-11262). Refco Commodity Management, Inc., formerly known as CIS Investments, Inc., a debtor-affiliate of Refco Inc., filed for chapter 11 protection on Oct. 16, 2006 (Bankr. S.D.N.Y. Case No. 06-12436). (Refco Bankruptcy News, Issue No. 47; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). UNITED TEST: Moody's Assigns (P)Ba3 Corporate Family Rating ----------------------------------------------------------- Moody's Investors Service assigned a provisional (P)Ba3 corporate family rating to United Test and Assembly Center Ltd. and a provisional (P)Ba3 senior unsecured rating to UTAC's proposed US$200M convertible bonds due 2013. The ratings outlook is stable. This is the first time that Moody's has assigned ratings to UTAC. The bonds proceeds will be used to repay the company's US$175 million bridge loan for the acquisition of NS Electronics Bangkok, a transaction completed in June 2006, while the balance will be used for general corporate purposes. Moody's expects to affirm the ratings and remove them from their provisional status upon completion of the convertible bonds issuance. "The Ba3 ratings reflect the company's unique market position in memory and MSLP (mixed signal & logic products)-testing services. It enjoys strong sales growth and profitability - against the industry average - due to its test-centric business model," says Moody's Ken Chan, an AVP/Analyst and lead analyst for the company. "UTAC has an experienced management team, which shows financial discipline, operational synergies from the NSEB acquisition, and an improving sales mix that should help buffer it against industry cyclicality. Such positive attributes are consistent with a Ba credit profile," Chan adds. "However, due to the company's aggressive growth plan, coupled with high capital expenditures, we expect it to generate negative free cash flow in the near term which better positions it at the Ba3 rating when compared with its global peers," says Chan. The ratings further reflect UTAC's exposure to the competitive and volatile semiconductor back-end outsourcing assembly and test industry, especially given its limited operating track record. Meanwhile, the high capex nature of its business model -- albeit discretionary -- together with its high operational leverage and relatively small cash buffer translate into cash flow pressure and a likelihood of reliance on external facility lines over the next two years. The ratings outlook is stable, reflecting the expectation that UTAC will continue with its prudent financial policy as it executes its business plan and maintains its competitiveness in the medium term. The ratings could experience upward pressure if the company: (1) demonstrates a longer track record for successfully implementing its business model and sustaining its competitiveness against its global peers in full turnkey solutions and mixed-signal logic products; (2) generates positive FCF to fund organic business growth and for debt reduction, such that TD/Cap < 25-30% and EBIT/Int > 4.5-5.0x on a sustained basis, and (3) builds up its cash holding and maintains a strong level of balance sheet liquidity to buffer against industry cyclicality. On the other hand, downward ratings pressure could evolve if: (1) evidence emerges that UTAC's business model is losing traction, leading to a material weakening in its competitiveness against its global peers; (2) an industry downturn emerges, and which materially impairs its debt-servicing ability; and (3) an aggressive financial policy emerges, and which includes a material debt-funded acquisition, such that TD/Cap > 40-45%, EBIT/Int < 2.5-3.0x over the cycle. About UTAC United Test and Assembly Center Ltd, which is based in Singapore and listed on the Singapore Stock Exchange since 2004, is an independent provider of test and assembly services for semiconductor devices, including memory, mixed-signal and logic integrated circuits. The company has manufacturing facilities in Singapore, China (Shanghai), Taiwan and Thailand, and a global sales network in Singapore, Thailand, Taiwan, the US, Italy, Korea and Japan. =============== T H A I L A N D =============== KRUNG THAI: Foreign Investors Sell 50 Million Shares ---------------------------------------------------- Krung Thai Bank's overseas investors parted with as many as 50 million shares worth THB649 million for fear that the bank may set aside more loan-loss reserve in the current quarter, The Nation reports. The shares were sold for THB12.98 apiece. A Kim Eng Securities (Thailand) analyst told The Nation that the big lot was caused by foreign investors' concerns that the bank is likely to allocate more provisioning this quarter. In addition, compared to the book value of other large banks, Krung Thai stock is less attractive. He recommended investors to sell for profit as the price has already peaked. Fundamentally, a suitable price should be THB12.80, which is lower than the market price, The Nation relates. Krung Thai Bank Public Company Limited -- http://www.ktb.co.th/ -- began its operation on March 14, 1966, through the merger of business between the Agricultural Bank Limited and the Provincial Bank Limited with the Ministry of Finance as its major shareholder. The Bank provides financial assistance to large and small business, it also renders financial assistance to other state enterprises, both business-oriented and public utility types. Currently the bank is operating 511 domestic and 12 foreign branches and representative offices. Fitch Ratings, on September 12, 2006, affirmed the individual C/D rating of Krung Thai Bank Public Company Limited. The bank currently carries Moody's Investors Service's bank financial strength rating of D. TRUE CORP: Ventures into Film Production ---------------------------------------- True Corp, with its wholly owned subsidiary, True Magic, entered the film-production business as part of its drive to develop content for the group's services, The Nation reports. The parent allotted THB1 million capital to True Magic two months ago to produce and distribute films and commercials, the paper says. Paisit Vatjanapagorn, True Corp's director and general manager for broadband, broadcast and multimedia, told The Nation that its subsidiary had already invited independent filmmakers and interested talent to propose projects. "We want to produce the best films in Thailand. We have no fixed partnership formula. In some cases, we may finance the productions for them, and in others we may invest jointly with them. We are open to all ideas, since we want to attract as much talent as possible to work with us," Mr. Paisit said. "The films we produce could be shown in theatres or on our numerous telecom channels, depending on negotiations with the producers," Mr. Paisit added. The move, according to The Nation, is part of the company's continuing development of content for the group, which includes pay-TV company UBC True, cellular operator True Move and broadband-Internet operator True Internet. True Corporation Public Company Ltd's -- http://www.truecorp.co.th/--- principal activities are the provision of telecommunication services and various value-added- services that includes: Digital Data Network Direct Inward Dialing, Integrated Service Digital Network, Public Telephone, Personal Communication Telephone Service, Multimedia and Internet Service Provider. Other activities include training services, online games, rental services and investment holding. Standard & Poor's Ratings Services, on July 27, 2006, affirmed its BB long-term corporate credit rating on True Corp Public Co Ltd. The outlook is stable. True Corp also currently carries Moody's corporate family rating at Ba3, with stable outlook. ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Asia Pacific is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Nolie Christy Alaba, 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. 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