/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/061113.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 13, 2006, Vol. 9, No. 225 Headlines A U S T R A L I A ADSTEAM MARINE: Reports AU$43.1 Million NPAT for FY 2006, Up 15% ALLSTATE EXPLORATIONS: Wants BMJV Ownership Dispute Resolved ANILIO PTY: Members and Creditors to Receive Wind-Up Report AUSTRALIAN MARINE: N. Jones to Present Wind-Up Report on Nov. 16 BENNIC BROS: Enters Voluntary Wind-Up BETTAWAY TAXI: Members Resolve to Voluntarily Wind-Up Business CHARDOWNN PTY: Court Issues Wind-Up Order CLAYWARE MANUFACTURING: To Hold Final Meeting on November 15 CONROCK GROUP: To Declare Priority Dividend on January 5 ENRON AUSTRALIA: To Declare Interim Dividend on December 18 FIREZONE PROTECTION: To Declare Dividend for Priority Creditors GLYNNS (GRAFTON): Members Decide to Close Business IRISBAY PTY: Sets Members & Creditors' Joint Meeting on Nov. 13 JAKLYN PRINT: Creditors' Proofs of Claim Due on November 28 JAMKOT PTY: To Declare Dividend for Unsecured Priority Creditors JOHN & DAVE: Final Meeting Fixed on November 15 KYOTO PTY: Court Orders Wind-Up of Operation LONE STAR: Members Resolve to Close Operations LONE STAR ASIA: Enters Wind-Up Proceedings LONE STAR (NSW): Members Opt to Wind Up Operations LONE STAR OPERATIONS: Members Resolve to Close Business LONE STAR (QLD): Members Agree to Liquidate Business LONE STAR (VIC): Members Resolve to Shut Down Business LONE STAR (WA): Members Decide to Wind Up Firm OLD MICK: Liquidator Turner to Present Wind-Up Account P & S LANGS: Schedules Final Meeting on November 15 PERFORMANCE CONSULTANTS: Placed Under Voluntary Liquidation PIKUBI PTY: Prepares to Declare Dividend on December 12 ROMAC NOMINEES: To Declare Dividend to Preferential Creditors SEALED INSULATING: Liquidator to Give Wind-Up Report on Nov. 15 SILVERWATTLE PTY: Final Meeting Slated for November 17 TASVINUM PTY: Members & Creditors' Meeting Set on November 13 UNIVERSAL FIRE: Undergoes Voluntary Wind-Up WEST LYNNE: To Declare Final Dividend on November 16 ZINIFEX LIMITED: Plans to Expand Business Overseas C H I N A & H O N G K O N G BELLUNO INVESTMENTS: Prepares to Close Operations BENQ CORP: Germans Start Bankruptcy Probe on BenQ Mobile BESTNOON LTD: Liquidator to Present Wind-Up Report BIS GARMENT: Creditors Must Prove Debts by November 17 BRIGHT CREATE: Members' Final Meeting Slated for December 4 CASON ELECTRONICS: Enters Liquidation Proceedings CHINA EASTERN: Plans Sale of Minority Stake to Singapore Air FORTRESS INTERNATIONAL: Members to Hold Final Meeting on Dec. 4 FUBON COMMERCIAL: S&P Keeps C+ Bank Fundamental Strength Rating GOSPELS DEBATING: Members Opt to Liquidate Business HARBOUR RING: Enters Voluntary Wind-Up MEDISINO LTD: Commences Wind-Up of Operations OCEAN PETROLEUM: Liquidator Yeung Step Aside SINO BRILLIANT: Creditors' Proofs of Claim Due on Dec. 8 SOJITZ TRADE: Members to Receive Wind-Up Report on Dec. 4 STAR CRUISES: S&P's BB- Rtg. Stays Amid Possible Rights Issue TABATHA V: Auditors Raises Going Concern Doubt I N D I A BHARAT PETROLEUM: Swings to INR12.6-Bil. Net Profit in 3Q/2006 BHARTI AIRTEL: 2006 3rd Quarter Net Profit Rises to INR8.9 Bil. BHARTI AIRTEL: Inks US$400-Mil. Expansion Deal with Nokia BHARTI AIRTEL: To Set Up Telecom Infrastructure at Mundra Port BPL LTD: To Publish 1st Half 2006 Results by November 30 CANARA BANK: Fitch Gives BB Rating to Proposed Tier I Notes CANARA BANK: Moody's Puts Hybrid Tier 1 Notes in Basket 'B' CENTRAL BANK OF INDIA: Govt. Approves Restructuring Proposal CENTRAL BANK OF INDIA: Half Year 2006 Net Profit Up 99% DRESSER-RAND: Commences Secondary Offering of Common Stock DRESSER-RAND: Secures US$63.2MM Order from Marathon Petroleum I N D O N E S I A ALCATEL SA: S&P Keeps 'BB' Rating on CreditWatch Negative ALCATEL SA: Inks EUR16-Mln Info Program with Fiji Government ALCATEL SA: Inks EUR53 Million Network Deal with China Mobile BANK NEGARA: US$150-Million Fundraising to Close Next Week BANK PERMATA: Denies Reports on Employee Layoff CORUS GROUP: Institutional Investors Dispose of Shares GOODYEAR TIRE: Posts US$48-Mil. Net Loss in 2006 Third Quarter TELKOMSEL INDONESIA: Awards 3G Construction Contract To Siemens J A P A N ALL NIPPON: Dropping Fuel Costs Lead to Lower Int'l Fares ALL NIPPON: Converts Two 767 Freighter Options into Firm Orders AOZORA BANK: Sets Public Offering Price at JPY570 Per Share JAPAN AIRLINES: To Cut International Fares in January 2007 TREND MICRO: Announces Results of Share Buyback * Life Insurers' Earnings May Be Ratings-Positive, Moody's Says * Tokyo Stock Exchange Completes Capacity Boost K O R E A AMKOR TECHNOLOGY: Moody's Assigns Loss-Given-Default Ratings DRESSER: Enters Into New US$935 Mil. Sr. Secured credit Facility HYNIX SEMICONDUCTOR: Toshiba's Infringement Claim Rejected KOREA EXCHANGE BANK: Net Income Plunges 90% to KRW52 Billion * IMF Sees 4.3% Growth in Korea's Economy in 2007 M A L A Y S I A ANTAH HOLDINGS: Total Default for October Tops MYR236 Million JIN LIN: Suspends Trading to Facilitate Scheme of Arrangement MYCOM BERHAD: To Hold 39th Annual General Meeting on Dec. 6 OLYMPIA INDUSTRIES: 25th AGM Slated for December 6 OLYMPIA INDUSTRIES: To Complete Restructuring by January 2007 OLYMPIA INDUSTRIES: Unit Receives Wind-Up Petition N E W Z E A L A N D AIR NEW ZEALAND: ANZES Receives US$3 Mln Maintenance Contract B & R MARKETING: Appoints Joint and Several Liquidators EUPHORIA (EASTGATE): Faces Liquidation Proceedings EUPHORIA LTD: Liquidation Petition Hearing Set on November 13 FELTEX CARPETS: AIRC Hears Godfrey Hirst & Textile Union Dispute FELTEX CARPETS: Appointment Application Hearing Set on Nov. 29 HEAVY MECHANICAL: Court Sets Liquidation Hearing on Nov. 13 MERCURY BAY: Creditors' Proofs of Claim Due on November 28 PACIFIC ALBACORE: Liquidation Hearing Set on Nov. 13 S & Y CATERING: Court to Hear Liquidation Petition on Nov. 16 SCRAPPYDOO METAL: Appoints Official Assignee as Liquidator SURECALL LTD: Decides to Liquidate Business * S&P Launches New Ratings Scale for NZ Finance Entities P H I L I P P I N E S CHIQUITA BRANDS: Positive About New Banana Packaging PHILIPPINE LONG DISTANCE: Ready to "Write-Off" Aces Business PHIL. NATIONAL BANK: To Pick Adviser for PHP22-Bln Asset Sale RIZAL COMMERCIAL BANKING: BTM-UFJ Plans to Sell 17.14% Stake UNIVERSAL ROBINA: Moody's Upgrades Local Currency Rating to Ba2 * BSP Approves RP's Prepayment of US$70 Million ADB Loans S I N G A P O R E ADVANCED SYSTEMS: Posts SGD2.4-Mil. Net Profit for 2006 Half-Yr. COMPACT METAL: Director Reduces Holdings of Deemed Shares FALMAC LIMITED: Notes Shareholder's Change in Interest FLEXTRONICS: Earns US$184.8 Mil. in Second Qtr. Ended Sept. 30 LINDETEVES-JACOBERG: Lists and Quotes 213,065,602 Rights Shares PDC CORP: Unveils Shareholders' Change of Interest T H A I L A N D THAI WAH: Auditor Raises Going Concern Doubt - - - - - - - - ================= A U S T R A L I A ================= ADSTEAM MARINE: Reports AU$43.1 Million NPAT for FY 2006, Up 15% ---------------------------------------------------------------- Adsteam Marine Limited delivered an improved financial result for the year ended June 30, 2006. The company reported net profit after tax of AU$43.1 million, an increase of 15% when compared to the result achieved in the previous financial year. This translated into earnings per share of 16 cents, up from 14.1 cents per share the previous year. This improvement in financial performance was driven by solid volume increases in Australia, further cost savings in Australian and the U.K. and included the cost of essential changes to work practices in Gravesend. The results flowed directly from the transportation program adopted by the Board in May 2003. According to the company's Chairman, while there remains further labor reform to be undertaken, especially in the U.K. business, the company's operations are much fitter and more robust. The group is in a financially healthy position with net debt of AU$297.3 million as of June 30, 2006. During the year, the company refinanced AU$173 million of syndicated debt with a new AU$300 million, five year syndicated debt facility. The gearing of the group at June 30, 2006, stood at 46%, down from 51% at the same time last year. The company paid a fully franked interim dividend from profits generated in the 2006 financial year of 3.9 cents per share. For the current financial year, the company declared a partially franked interim dividend of 4.1 cents per share on September 21, 2006, which was paid on October 30, 2006. The payment of this dividend was made while retaining the SvitzerWijsmuller offer price of AU2.54 per share. SvitzerWijsmuller Takeover Offer The SvitzerWijsmuller takeover offer has been the major event affecting the company over the past 12 months. The Troubled Company Reporter - Asia Pacific reported on October 31, 2006, Adsteam Marine's disclosed that SvitzerWijsmuller A/S has extended the Offer period for its cash offer to acquire all of the outstanding shares in Adsteam. The Offer will now close at 7:00 p.m. on January 12, 2007. The company's chairman notes "in the event that SvitzerWijsmuller obtains U.K. Competition Commission approval to acquire Adsteam shares under the Offer, either unconditionally or on terms satisfactory to SvitzerWijsmuller, it presently intends to declare the Offer free from the U.K. Competition Commission approval condition." The Chairman relates that the SvitzerWijsmuller, in conjunction with Adsteam, continues to work with the U.K. Competition Commission to address the outstanding U.K. competition issues in relation to the transaction. The Chairman discloses that management diversions associated with the SvitzerWijsmuller bid notwithstanding, on a like for like basis earnings at the EBITDA line are slightly ahead of last year for the three-month period ended September 30, 2006. The Chairman explains that this is before the costs associated with the SvitzerWijsmuller offer and one-off costs associated with our workplace reform activities in the U.K. during the period. Pending the outcome of the U.K. Competition Commission process, the Adsteam operating business continues in the ordinary course. Should the takeover proceed, it is SvitzerWijsmuller's current intention that the Group's operations will continue in substantially the same manner. Should the offer not proceed, the business will continue with Adsteam focusing on cost, growth, and development opportunities. About Adsteam Headquartered in New South Wales, Australia, Australia Adsteam Marine Ltd -- http://www.adsteam.com.au/-- currently has a fleet of more than 200 vessels and also offers other maritime services such as a shipping agency, fuel distribution and salvage. The Company had undertaken steps in a plan to divest non-core businesses since May 2003 as part of its business transformation program and has raised money to support its rescue plan designed to trim down debts and repay borrowings. Adsteam's debt was estimated to be AU$360 million. As of June 30, 2005, the Company reported an "improved balance sheet" as it was able to reduce its debt to AU$302 million, achieved through the sale of non-core assets, improved earnings, improved debtor management and a tight dividend policy. ALLSTATE EXPLORATIONS: Wants BMJV Ownership Dispute Resolved ------------------------------------------------------------ In statement filed with the Australian Stock Exchange, Allstate Explorations NL said that it has requested a meeting with Beaconsfield Gold NL to discuss the potential resolution of the ownership of the Beaconsfield Mine Joint Venture. According to Michael Ryan, Allstate's joint and several administrator, he was concerned Beaconsfield Gold's continual pursuit of ownership through the media was distracting people from more important work aimed at achieving a possible resumption of mining. Beaconsfield Gold continues to publicly indicate its desire to buy all the assets owned by Allstate and its subsidiaries in the mine, but has yet to put forward a solid offer. On June 30, 2005, Beaconsfield Gold wrote to Allstate setting out in general terms a possible basis for a proposal. Allstate responded on July 7, 2006. Despite numerous requests for a response, as of November 9, 2006, none has been received, Allstate told the NZX. Further, Rod Elvish, Allstate's chairman requested Dennis Clarke, Beaconsfield Gold's chairman for a proposal that would involve a merger of the two companies over a month ago and none has been received. Consequently, Allstate requested the meeting with Beaconsfield Gold for an opportunity to put forward a firm proposal, or the deed administrators to consider, and for discussions to take place. Beaconsfield Gold Welcomes Request Beaconsfield Gold accepts Allstate's request to commence negotiations with a view to restructuring ownership of the Beaconsfield Gold Mine. Beaconsfield Gold says it remains committed to the mine's safe re-opening and optimistic about its exploration potential. Beaconsfield Gold asserts it is well placed to acquire Allstate's interests should they become available and already has shareholder approval in place to raise additional funding, if required. Beaconsfield Gold Chief Executive Officer Bill Colvin says "Beaconsfield Gold is confident in the future of the mine and remains the obvious, natural owner." About Allstate Allstate Explorations NL solely operates in Australia. The Company manages, develops, and operates the Beaconsfield Mine Joint Venture in Beaconsfield, Tasmania. Allstate partially owns the Beaconsfield gold mine with its partner Beaconsfield Gold NL. The Beaconsfield mine is located in Launceston, Tasmania, Australia. Allstate was placed under administration in 2004. The Administrator can be reached at: Allstate Explorations NL The Administrator Taylor Woodings Corporation Services 6th Floor, 30 The Esplanade Perth, Australia, 6000 Telephone: 08 9321 8533 Fax: 08 9321 8544 ANILIO PTY: Members and Creditors to Receive Wind-Up Report ----------------------------------------------------------- The final joint meeting for the members and creditors of Anilio Pty Ltd formerly Regina Saws Pty Ltd, which is in liquidation, will be held on November 14, 2006, at 11:00 a.m. At the meeting, the company's members and creditors will receive the wind-up report from Liquidator Matthew L. Joiner. The Liquidator can be reached at: Matthew L. Joiner c/o JCJ Partners Pty Ltd Level 4, 370 Queen Street Brisbane, Queensland 4000 Australia AUSTRALIAN MARINE: N. Jones to Present Wind-Up Report on Nov. 16 ---------------------------------------------------------------- Members and creditors of Australian Marine Bi Products Pty Ltd will convene on November 16, 2006, at 2:30 p.m., to hear the report regarding the company's wind-up proceedings from Liquidator Norman K. Jones. The Troubled Company Reporter - Asia Pacific has reported that the company commenced a wind-up of its operations on March 16, 2006. The Liquidator can be reached at: Norman K. Jones Pattisons Business Advisors & Insolvency Specialists 461 Bourke Street Melbourne, Victoria 3000 Australia BENNIC BROS: Enters Voluntary Wind-Up ------------------------------------- The members of Bennic Bros Painting Pty Ltd convened on October 27, 2006, and resolved to voluntarily wind up the company's operations. Subsequently, Stephen Neville was appointed as liquidator at the creditors' meeting held that same day. The Liquidator can be reached at: Stephen Neville Hall Forsyths Chartered Accountants 127 Marius Street Tamworth, New South Wales 2340 Australia BETTAWAY TAXI: Members Resolve to Voluntarily Wind-Up Business -------------------------------------------------------------- The members of Bettaway Taxi Trucks Pty Ltd held a general meeting on October 23, 2006, and resolved to voluntarily wind up the company's operations. In this regard, Antony de Vries and Riad Tayeh were appointed as joint and several liquidators. The Joint and Several Liquidators can be reached at: Antony de Vries Riad Tayeh de Vries Tayeh Level 3, 95 Macquarie Street Parramatta, New South Wales 2150 Australia CHARDOWNN PTY: Court Issues Wind-Up Order ----------------------------------------- On October 20, 2006, the Federal Court of Australia ordered Chardownn Pty Ltd to wind up its business and appointed Antony de Vries as liquidator. The Liquidator can be reached at: Antony De Vries c/o de Vries Tayeh Level 3, 95 Macquarie Street Parramatta, New South Wales 2124 Australia Telephone:(02) 9633 3333 Facsimile:(02) 9633 3040 CLAYWARE MANUFACTURING: To Hold Final Meeting on November 15 ------------------------------------------------------------ The members and creditors of Clayware Manufacturing Pty Ltd -- formerly known as Toowoomba Brick Company -- will meet for their final meeting on November 15, 2006, at 11:00 a.m. During the meeting, Liquidator Collins will present the accounts regarding the company's wind-up proceedings. The Liquidator can be reached at: Gerald T. Collins Jefferson Collins Joiner Chartered Accountants Level 4, 370 Queen Street Brisbane, Queensland 4000 Australia CONROCK GROUP: To Declare Priority Dividend on January 5 -------------------------------------------------------- Conrock Group Pty Ltd, which is in liquidation, will declare the first and final priority dividend on January 5, 2007. Priority creditors who cannot prove their claims by November 29, 2006, will be excluded from sharing in the distribution. The Liquidator can be reached at: R. G. Tolcher Lawler Partners Chartered Accountants 763 Hunter Street Newcastle, West New South Wales 2302 Australia ENRON AUSTRALIA: To Declare Interim Dividend on December 18 ----------------------------------------------------------- Enron Australia Finance Pty Ltd, which is in liquidation, will declare an interim dividend to unsecured creditors on December 18, 2006. Creditors are required to formally prove their debts by December 4, 2006, for them to share in the dividend distribution. The Joint Liquidator can be reached at: Anthony Milton Sims SimsPartners Chartered Accountants Level 24, Australia Square 264 George Street Sydney, New South Wales 2000 Australia FIREZONE PROTECTION: To Declare Dividend for Priority Creditors --------------------------------------------------------------- Firezone Protection Service Pty Ltd, which is in liquidation, will declare the first and final dividend to priority creditors on December 12, 2006. Creditors are required to submit proofs of debts by November 28, 2006, for them to share in the dividend distribution. The liquidator can be reached at: William James Hamilton Hamiltons Chartered Accountants Level 17, 25 Bligh Street Sydney, New South Wales 2001 Australia Telephone:(02) 9232 6611 Facsimile:(02) 9232 6166 GLYNNS (GRAFTON): Members Decide to Close Business -------------------------------------------------- Members of Glynns (Grafton) Pty Ltd convened on October 27, 2006, and decided to voluntarily wind up the company's operations. In this regard, Graham J. Smith was appointed as liquidator. The Liquidator can be reached at: Graham J. Smith Wappett & Partners Chartered Accountants 158 Molesworth Street Lismore, New South Wales 2480 Australia Telephone:(02) 6621 2581 Facsimile:(02) 6621 9740 IRISBAY PTY: Sets Members & Creditors' Joint Meeting on Nov. 13 --------------------------------------------------------------- Irisbay Pty Ltd, which is in liquidation, will hold a joint meeting for its members and creditors on November 13, 2006, at 11:00 a.m. During the meeting, Liquidator J. P. Downey will present an account of the company's wind-up and property disposal activities. The Liquidator can be reached at: J. P. Downey Cole Downey & Co Chartered Accountants Level 1, 22 William Street Melbourne, Victoria 3000 Australia JAKLYN PRINT: Creditors' Proofs of Claim Due on November 28 ----------------------------------------------------------- Jaklyn Print Services Pty Ltd, which is in liquidation, will declare the first and final dividend on December 12, 2006. Creditors are required to submit their proofs of claim by November 28, 2006, or they will be excluded from sharing in the dividend distribution. The Official Liquidator can be reached at: P. Newman HLB Mann Judd Chartered Accountants Level 1, 160 Queen Street Melbourne 3000 Australia JAMKOT PTY: To Declare Dividend for Unsecured Priority Creditors ---------------------------------------------------------------- Jamkot Pty Ltd, which is in liquidation, will declare the first and final dividend to unsecured priority creditors on December 19, 2006. Creditors are required to formally prove their claims by December 5, 2006, or they will be excluded from sharing in the distribution. The liquidator can be reached at: Manfred Holzman Holzman Associates GPO Box 3667 Sydney, New South Wales 2001 Australia Telephone:(02) 9222 9070 Facsimile:(02) 9222 9071 JOHN & DAVE: Final Meeting Fixed on November 15 ----------------------------------------------- A final meeting for the members and creditors of John & Dave Bricklaying Pty Ltd, which is in liquidation, will be held on November 15, 2006, at 10:00 a.m. During the meeting, Liquidator Murray Godfrey will present the account of the company's wind-up and property disposal exercises. The Liquidator can be reached at: Murray Godfrey RMG Partners Level 12, 88 Pitt Street Sydney, New South Wales 2000 Australia Telephone:(02) 9231 0889 KYOTO PTY: Court Orders Wind-Up of Operation -------------------------------------------- The Federal Court of Australia on Oct. 20, 2006, ordered the wind-up of Kyoto Pty Ltd's operation. Accordingly, Antony de Vries was appointed 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 LONE STAR: Members Resolve to Close Operations ---------------------------------------------- At a general meeting held on Oct. 18, 2006, the members of Lone Star Steakhouse & Saloon (Holdings) Pty Ltd resolved to close the company's operations and appointed Geoffrey W. Foster as liquidator. The Liquidator can be reached at: Geoffrey W. Foster Chartered Accountant 42 Larapinta Drive Wyee Point, New South Wales 2259 Australia LONE STAR ASIA: Enters Wind-Up Proceedings ------------------------------------------ At a general meeting held on Oct. 18, 2006, the members of Lone Star Asia Pacific Pty Ltd resolved to wind up the company's operations and Geoffrey W. Foster was appointed as liquidator. The Liquidator can be reached at: Geoffrey W. Foster Chartered Accountant 42 Larapinta Drive Wyee Point, New South Wales 2259 Australia LONE STAR (NSW): Members Opt to Wind Up Operations -------------------------------------------------- The members of Lone Star Steakhouse & Saloon (NSW) Pty Ltd held a general meeting on Oct. 18, 2006, and resolved to voluntarily wind up the company's operations. In this regard, Geoffrey W. Foster was appointed as liquidator. The Liquidator can be reached at: Geoffrey W. Foster Chartered Accountant 42 Larapinta Drive Wyee Point, New South Wales 2259 Australia LONE STAR OPERATIONS: Members Resolve to Close Business ------------------------------------------------------- At a general meeting on Oct. 18, 2006, the members of Lone Star Steakhouse & Saloon Operations Pty Ltd resolved to voluntarily wind up the company's operations and appointed Geoffrey W. Foster as liquidator. The Liquidator can be reached at: Geoffrey W. Foster Chartered Accountant 42 Larapinta Drive Wyee Point, New South Wales 2259 Australia LONE STAR (QLD): Members Agree to Liquidate Business ---------------------------------------------------- At a general meeting of Lone Star Steakhouse & Saloon (Qld) Pty Ltd on Oct. 18, 2006, the members resolved to voluntarily liquidate the company's business and appoint Geoffrey W. Foster as liquidator. The Liquidator can be reached at: Geoffrey W. Foster Chartered Accountant 42 Larapinta Drive Wyee Point, New South Wales 2259 Australia LONE STAR (VIC): Members Resolve to Shut Down Business ------------------------------------------------------ On Oct. 18, 2006, the members of Lone Star Steakhouse & Saloon (Vic) Pty Ltd resolved to wind up the company's operations and appointed Geoffrey W. Foster as liquidator. The Liquidator can be reached at: Geoffrey W. Foster Chartered Accountant 42 Larapinta Drive Wyee Point, New South Wales 2259 Australia LONE STAR (WA): Members Decide to Wind Up Firm ---------------------------------------------- On Oct. 18, 2006, during a general meeting, the members of Lone Star Steakhouse & Saloon (WA) Pty Ltd resolved to wind up the company's operations. Geoffrey W. Foster was consequently appointed as liquidator. The Liquidator can be reached at: Geoffrey W. Foster Chartered Accountant 42 Larapinta Drive Wyee Point, New South Wales 2259 Australia OLD MICK: Liquidator Turner to Present Wind-Up Account ------------------------------------------------------ Old Mick Concrete Pty Ltd, which is in liquidation, will hold a final meeting for its members and creditors on Nov. 14, 2006, at 11:00 a.m. During the meeting, Liquidator D. A. Turner will present an account regarding the company's wind-up proceedings. The Liquidator can be reached at: D. A. Turner PKF Chartered Accountants Level 11, 485 La Trobe Street Melbourne, Victoria 3000 Australia P & S LANGS: Schedules Final Meeting on November 15 --------------------------------------------------- P & S Langs Pty Ltd, which is in liquidation, will hold a final meeting for its members and creditors on Nov. 15, 2006, at 10:00 a.m., to receive an account from Liquidator R. G. Fox and pass a resolution to destroy the books and records of the company. The Liquidator can be reached at: R. G. Fox c/o R L Cardwell & Associates 14 Barry Place Cherrybrook, New South Wales 2126 Australia PERFORMANCE CONSULTANTS: Placed Under Voluntary Liquidation ----------------------------------------------------------- The members of Performance Consultants Pty Ltd, held a general meeting on Oct. 18, 2006, and decided to voluntarily wind up the company's operations. Subsequently, Geoffrey W. Foster was appointed as liquidator. The Liquidator can be reached at: Geoffrey W. Foster Chartered Accountant 42 Larapinta Drive Wyee Point, New South Wales 2259 Australia PIKUBI PTY: Prepares to Declare Dividend on December 12 ------------------------------------------------------- Pikubi Pty Ltd, which is in liquidation, will declare dividend on Dec. 12, 2006. Creditors are required to formally prove their claims by Nov. 28, 2006, or they will be excluded from participating in the dividend distribution. The Official Liquidator can be reached at: John Lord Chartered Accountants Level 10, 1 Margaret Street Sydney, New South Wales 2000 Australia Telephone: 02 9251 4100 Facsimile: 02 9240 9821 Web site: http://www.pld.com.au ROMAC NOMINEES: To Declare Dividend to Preferential Creditors ------------------------------------------------------------- Romac Nominees Pty Ltd, which is subject to a deed of company arrangement, will declare its first and final dividend to preferential creditors on Dec. 4, 2006. Creditors are required to prove their debts by Nov. 30, 2006, or they will be excluded from sharing in the distribution. The Deed Administrator can be reached at: N. Giasoumi Dye & Co. Pty Ltd Chartered Accountants 165 Camberwell Road Hawthorn East 3123 Australia SEALED INSULATING: Liquidator to Give Wind-Up Report on Nov. 15 --------------------------------------------------------------- Sealed Insulating Glass of Australia Pty Ltd, which is in liquidation, will hold a final meeting for its members and creditors on Nov. 15, 2006, at 11:00 a.m. At the meeting, Liquidator Geoff Ridgeway will give a report on the company's wind-up and property disposal activities. The Liquidator can be reached at: Geoff Ridgeway Jenkins Peake & Co Chartered Accountants PO Box 1570, Geelong 3220 Australia Telephone:(03) 5223 1000 Facsimile:(03) 5221 4938 SILVERWATTLE PTY: Final Meeting Slated for November 17 ------------------------------------------------------ The members and creditors of Silverwattle Pty Ltd will hold a final meeting on Nov. 17, 2006, at 2:00 p.m., to receive Liquidator Frank Lo Pilato's account on the company's wind-up proceedings and property disposal exercises. As reported by the Troubled Company Reporter - Asia Pacific, the company's members agreed to wind up the company's operations on April 5, 2006. The Liquidator can be reached at: Frank Lo Pilato RSM Bird Cameron Partners Level 1, 103-105 Northbourne Avenue Turner ACT 2612 Australia Telephone: 02 6247 5988 TASVINUM PTY: Members & Creditors' Meeting Set on November 13 ------------------------------------------------------------- A joint meeting of the members and creditors of Tasvinum Pty Ltd, which is in liquidation, will be held on Nov. 13, 2006, at 11:30 a.m. At the meeting, the members and creditors will receive the liquidator's account of the company's wind-up proceedings. The Liquidator can be reached at: J. P. Downey Cole Downey & Co Chartered Accountants Level 1, 22 William Street Melbourne, Victoria 3000 Australia UNIVERSAL FIRE: Undergoes Voluntary Wind-Up ------------------------------------------- Members of Universal Fire Protection Pty Ltd on Oct. 25, 2006, resolved to voluntarily wind up the company's operations and appointed Steven Nicols as liquidator. Mr. Nicol's appointment was subsequently confirmed at the meeting of creditors. 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 WEST LYNNE: To Declare Final Dividend on November 16 ---------------------------------------------------- West Lynne Pastoral Company Pty Ltd, which is in liquidation, will declare a final dividend on Nov. 16, 2006. Creditors who failed to submit their proofs of claim by Nov. 9, 2006, will be excluded in the dividend distribution. 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 ZINIFEX LIMITED: Plans to Expand Business Overseas -------------------------------------------------- After breaking the AU$1 billion annual profit mark in August, Zinifex Limited is looking overseas for production growth, the Sydney Morning Herald reports. The company expected to announce this year joint venture deals with junior explorers in the Mexico and South America areas to increase its production in the longer term, the report cites chief executive Greig Gailey, as saying. According to the Sydney Herald, Zinifex and other producers were unable to increase production to capitalize on the high prices because of capacity constraints. Mr. Gailey says developing new mines has become difficult due to political risk in unstable countries or the high cost of building projects in the U.S. and Canadian Arctic areas. Mr. Gailey reveals that Zinifex's AU$500 million Dugald River venture in Queensland is in the pre-feasibility stage and asserts that a feasibility study could be approved early next year. Dugald River would add about 200,000 tons, or one-third, to Zinifex's annual production, Sydney Herald says. According to the paper, Zinifex plans to spend AU$27 million on exploration in the 2007 financial year, up from AU$12 million in 2006 and AU$4 million in 2005. The Sydney Herald relates that Zinifex is also keeping an eye out for potential acquisitions. Although Zinifex mainly produces zinc and lead, in the longer term it would make sense to diversify into other metals traded in the London Metal Exchange or specialty metals like tantalum, the paper cites Mr. Gailey, as saying. About Zinifex Zinifex Limited, one of the world's largest integrated zinc and lead companies -- http://www.zinifex.com/-- is headquartered in Melbourne, Australia. The company owns and operates two mines and four smelters. The mines and two of the smelters are located in Australia and supply the growing industrial markets of the Asian-Pacific region, including China. The company also has a zinc smelter in the Netherlands and the United States. The company sells a range of zinc metal, lead metal, and associated alloys in 20 countries. More than 80% of our products are distributed outside Australia, particularly in Asia, which is experiencing significant growth in construction activity and vehicle production. Zinc is used for steel galvanizing and die-casting and lead for lead acid batteries used mainly in cars and other vehicles. * * * The Troubled Company Reporter - Asia Pacific reported on August 9, 2006, that Fitch Ratings assigned Zinifex a Long-term foreign currency Issuer Default Rating of 'BB+' with a Stable Outlook. ================================ C H I N A & H O N G K O N G ================================ BELLUNO INVESTMENTS: Prepares to Close Operations ------------------------------------------------- At a meeting held on October 23, 2006, members of Belluno Investments Ltd resolved to voluntarily liquidate the company's business. Accordingly, Thomas Andrew Corkhill and Iain Ferguson Bruce were appointed as joint and several liquidators. The Joint Liquidators can be reached at: Thomas Andrew Corkhill Iain Ferguson Bruce 8/F, Gloucester Tower The Landmark 15 Queen's Road, Central Hong Kong BENQ CORP: Germans Start Bankruptcy Probe on BenQ Mobile -------------------------------------------------------- Christian Schmidt-Sommerfeld, chief senior public prosecutor, told the southern German daily Suddeutsche Zeitung that it has started an investigation into the bankruptcy of BenQ Mobile GmbH & Co. OHG, the German unit of BenQ Corp., without discussing further details. Insiders told The Register that BenQ Mobile's management knew of the company's cashflow problems as early as August but deliberately delayed the bankruptcy filing and withheld this information to its employees. The company also allegedly reported 10.7 million BenQ handsets sold in the second quarter when it only sold 7.4 million units, The Register states citing other sources. In a Troubled Company Reporter - Europe report on Oct. 25, BenQ Mobile confirmed plans to cut 1,900 jobs of its 3,000-strong workforce. The job cuts, bankruptcy administrator Martin Prager said, would affect all areas of the business including administration, marketing, sales and production. Deutsche Welle says 1,100 jobs will be reduced at the company's Kamp Lintfort site and around 850 jobs in Munich. The company intends to raise a profit by the end of the year in order to invite investors to rescue the troubled handset maker, after losing EUR850 million (US$1 billion) in the past 12 months. The insolvent handset maker earlier said it was working on a new business model that will focus on research, development and design. The remaining business would develop and manufacture mobile phone handsets under license for other makers, the German daily relates. Headquartered in Taiwan, Republic of China, BenQ Corporation, Inc. -- http://www.benq.com/-- is principally engaged in manufacturing, developing and selling of computer peripherals and telecommunication products. It is also a major provider of 3G handset, 3G handset, Camera phones, and other products. BenQ Mobile GmbH & Co., the company's wholly owned subsidiary, operates from Munich, Germany. BenQ Mobile filed for insolvency in Germany on Sept. 29, with Martin Prager serving as insolvency manager. The collapse came a year after Siemens sold the company to Taiwanese technology group BenQ. BenQ Mobile has lost market share against giant competitors. * * * As reported in the TCR-AP on Oct. 31, Taiwan Ratings Corp. affirmed its twBB+/twB corporate credit ratings and twBB+ unsecured corporate bond issue rating on BenQ Corp. The outlook on the long-term rating is negative. At the same time, Taiwan Ratings removed all ratings from Credit Watch with negative implications, where they were placed on March 14, 2006, and withdrew all the ratings upon the company's request. BESTNOON LTD: Liquidator to Present Wind-Up Report -------------------------------------------------- Bestnoon Ltd will hold a final general meeting for its members on December 12, 2006, at 10:00 a.m., to consider the report from Liquidator Natalia K M Seng on the Company's wind-up proceedings. The Troubled Company Reporter - Asia Pacific previously reported that the Company commenced a wind-up of its operations on August 18, 2006. The Joint Liquidator can be reached at: Natalia K M Seng Level 28, Three Pacific Place 1 Queen's Road East Hong Kong BIS GARMENT: Creditors Must Prove Debts by November 17 ------------------------------------------------------ Liquidator Wu Shek Chun Wilfred requires the creditors of BIS Garment Workshop Ltd to prove their debts by November 17, 2006. Failure to prove debts will exclude any creditor from sharing in the Company's distribution. The Liquidator can be reached at: Wu Shek Chun Wilfred 10/F, Hong Kong Trade Centre 161 Des Voeux Road, Central Hong Kong BRIGHT CREATE: Members' Final Meeting Slated for December 4 ----------------------------------------------------------- Members of Bright Create Ltd will hold a final meeting on December 4, 2006, 10:30 a.m., at 29/F, K. Wah Centre, 191 Java Road, North Point, Hong Kong. During the meeting, Liquidator Tang Chung Ping will present his account on the Company's wind-up and property disposal exercises. As reported by the Troubled Company Reporter - Asia Pacific, the sole shareholder of the Company named Mr. Ping as liquidator on July 18, 2006. CASON ELECTRONICS: Enters Liquidation Proceedings ------------------------------------------------- At an extraordinary general meeting held on October 26, 2006, the members of Cason Electronics Holdings Company Ltd agreed to voluntarily liquidate the company's business. Lo Wing Hung was consequently appointed as liquidator. The Liquidator can be reached at: Lo Wing Hung Room 401, 4/F China Insurance Group Building 141 Des Voeux Road, Central Hong Kong CHINA EASTERN: Plans Sale of Minority Stake to Singapore Air ------------------------------------------------------------ China Eastern Airlines is still in discussion with Singapore Airlines regarding a possible minority stake sale to the Singapore based carrier, Reuters reports. According to Li Fenghua, chairman of China Eastern, Singapore Airlines is the only airline, which China Eastern is currently talking to, Reuters relates. According to a report by the Troubled Company Reporter - Asia Pacific on July 20, 2006, Mr. Li had told state media in April that the carrier aimed to sell at least a 20% stake to a foreign investor, hopefully within the year. The talks according to Reuters have been going on for months. * * * Headquartered in Shanghai, China, China Eastern Airlines Corporation Limited's -- http://www.ce-air.com-- principal activity is operation of domestic and international commercial air transportation. The Group also is involved in the common aircraft industry. Other activities include general aviation, air catering, advertisement, import and export, equipment manufacturing, real estate, hotel business, finance and training. The fleet includes more than 60 large and medium size airplanes, Airbus and Boeing mostly. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. On April 28, 2006, Fitch Ratings downgraded China Eastern's Foreign Currency and Local Currency Issuer Default Ratings to B+ from BB-. The outlook on the IDRs is stable. The Troubled Company Reporter - Asia Pacific reported that the working capital deficit of the company increased by about 105%, or CNY13.106 billion, from CNY12.490 billion at Dec. 31, 2004, to CNY25.597 billion at Dec. 31, 2005. FORTRESS INTERNATIONAL: Members to Hold Final Meeting on Dec. 4 --------------------------------------------------------------- Members of Fortress International Ltd will convene on December 4, 2006, at 10:00 a.m., to receive Liquidator Kwok Yuen Man's account of the company's wind-up and property disposal activities. As reported by the Troubled Company Reporter - Asia Pacific, the company's creditors were required to submit their proofs of debt on July 24, 2006. The Liquidator can be reached at: Kwok Yuen Man 34/F, The Lee Gardens 33 Hysan Avenue, Causeway Bay Hong Kong FUBON COMMERCIAL: S&P Keeps C+ Bank Fundamental Strength Rating --------------------------------------------------------------- Standard & Poor's Ratings Services said on November 9, 2006, that it had affirmed the C+ bank fundamental strength rating of Fubon Commercial Bank Co Ltd. At the same time, the A- long- term and A-2 short-term counterparty credit ratings on the bank were also affirmed. The outlook is stable. The ratings continue to reflect the Fubon group's good market position, balanced business mix, prudent financial management, and satisfactory capitalization. These positive factors are moderated somewhat by strong competitive conditions in the banking sector. The Fubon group is one of Taiwan's leading financial services groups. Total shareholders' funds of NT$152.2 billion at the end of June 2006, ranked it as the third-largest of 14 domestic financial holding company groups. Most group members have built up good franchises and competitive positions in their respective sectors. The Fubon group is expected to maintain its satisfactory financial profile over the medium term. Standard & Poor's expects the group's consolidated capitalization and the holding company's financial leverage to remain satisfactory over the medium term as a result of prudent financial management. GOSPELS DEBATING: Members Opt to Liquidate Business --------------------------------------------------- Members of Gospels Debating Society Ltd on October 27, 2006, resolved to voluntarily liquidate the company's business and appointed Wong Leung Wai as liquidator. The Liquidator can be reached at: Wong Leung Wai Room 2001-4, China Insurance Group Building 141 Des Voeux Road, Central Hong Kong HARBOUR RING: Enters Voluntary Wind-Up -------------------------------------- At an extraordinary general meeting on October 25, 2006, shareholders of Harbour Ring Dharmala (H.K.) Ltd passed a special resolution to wind up the company's operations. In this regard, Ying Hing Chiu and Chung Miu Yin Diana were appointed as joint and several liquidators. The Joint Liquidators can be reached at: Ying Hing Chiu Chung Miu Yin, Diana Level 28, Three Pacific Place 1 Queen's Road East Hong Kong MEDISINO LTD: Commences Wind-Up of Operations --------------------------------------------- Members of Medisino Ltd passed a special resolution on October 25, 2006, to voluntarily wind up the company's operations. Subsequently, Tsang Yun Shan was appointed as liquidator. The Liquidator can be reached at: Tsang Yun Shan Flat H, 4/F Block 5, Hong Sing Garden Tseung Kwan O, Kowloon Hong Kong OCEAN PETROLEUM: Liquidator Yeung Step Aside -------------------------------------------- Yeung Wing Yee on October 24, 2006, ceased to act as liquidator of Ocean Petroleum Company Ltd. According to the Troubled Company Reporter - Asia Pacific, creditors and contributories of the company held a meeting on the same day, to consider Mr. Yee's resignation as liquidator. SINO BRILLIANT: Creditors' Proofs of Claim Due on Dec. 8 -------------------------------------------------------- Creditors of Sino Brilliant Investments Ltd are required to submit their proofs of claim by December 8, 2006, to Liquidator Pang Yuen Fat. Failure to comply with the requirement will exclude a creditor from sharing in any distribution the company will make. The Liquidator can be reached at: Pang Yuen Fat Flat E, 12/F, Tak Lee Commercial Building 113-117 Wanchai Road Hong Kong SOJITZ TRADE: Members to Receive Wind-Up Report on Dec. 4 --------------------------------------------------------- Members of Sojitz Trade and Investment Services (Hong Kong) Co., Ltd will hold a final general meeting on December 4, 2006, at 5:45 p.m., to receive Liquidator Natalia K M Sengs's report on the company's wind-up proceedings. The Liquidator can be reached at: Natalia K M Seng Level 28, Three Pacific Place 1 Queen's Road East Hong Kong STAR CRUISES: S&P's BB- Rtg. Stays Amid Possible Rights Issue ------------------------------------------------------------- On November 9, 2006, Standard & Poor's Ratings Services said that the potential rights issue by Star Cruises Ltd -- Star Cruises; BB-/Stable/-- should not by itself have a positive impact on the rating on the company. Net proceeds from the planned rights issue are expected to be between HK$1,587 million and HK$1,762 million. The money is expected to be used partially to fund Star Cruises' two shipbuilding contracts. The potential proceeds are expected to only partially mitigate Star Cruises' highly leveraged financial risk profile; the company has a very aggressive financial policy. Even with the infusion of the proposed fresh capital, Star Cruises' pro-forma capital structure based on June 2006 financials -- excluding the impact of Star Cruises exercising the option on the third ship and the Sentosa Integrated Resort bid -- remains aggressive, with its pro-forma debt to EDITDA remaining just above 9x and funds from operations to debt at below 5%. Star Cruises continues to maintain its established market position in Asia, mainly due to its well-known brand. The company is the third-largest cruise operator globally and remains of strategic importance to its parent, Genting Berhad -- BBB+/Stable/--, and ultimate shareholder, Tan Sri Lim Goh Tong and his family, whose ownership continues to support the group's credit strength. TABATHA V: Auditors Raises Going Concern Doubt ---------------------------------------------- Auditors Child, Van Wagoner & Bradshaw PLC raised substantial doubt regarding Tabatha V, Inc.'s ability to continue operations after it audited the company's financial statements for the fiscal year ended June 30, 2006. The auditors specifically pointed to the significant net losses the company incurred since inception. Tabatha posted US$2,573 in net loss for the year ended June 30, 2006, compared with the US$4,363 net loss at the end of June 2005. The company's balance sheet did not show any figures regarding its current assets and total assets. Current liabilities and total liabilities as of June 30, 2006, amounted to US$1,170. Stockholders' deficit in the company totaled US$1,170. * * * Tabatha V, Inc was incorporated under the laws of the State of Colorado on March 17, 2000, and is in the early developmental and promotional stages. To date, the Company's only activities have been organizational ones, directed at developing its business plan and raising its initial capital. The Company has not commenced any commercial operations. The Company has no full-time employees and owns no real estate. The company's principal executive office is located in Hong Kong. ========= I N D I A ========= BHARAT PETROLEUM: Swings to INR12.6-Bil. Net Profit in 3Q/2006 -------------------------------------------------------------- Bharat Petroleum Corporation Limited turned around with INR12.585 billion in net profit for the quarter ended Sept. 30, 2006, from a INR2.030-billion net loss in the quarter ended Sept. 30, 2005. The swing from loss to profit is mainly attributable to the surge in revenues. Net sales increased by 63.61% from INR162.078 billion in the September 2005 quarter to INR265.174 billion in the September 2006 quarter. Other income rose 51.37% to INR2.207 billion for the September 2006 quarter from INR1.458 billion in the corresponding period last year. Bharat Petroleum reports third quarter 2006 earnings per share of INR34.81. About Bharat Petroleum Headquartered in Maharashtra, India, Bharat Petroleum Corporation Limited -- http://www.bharatpetroleum.com/-- is engaged in refining and marketing petroleum, liquefied petroleum gas and petrochemical products including middle distillates, light distillate, lubricants, benzene and toluene. During the year 2002, the Group introduced Petro Card and SmartFleet Card and had around 700,000 customers enrolled in 28 cities. There are 4,711 retail outlets and 1,729 LPG distributors that operate in the country. The plants of the Group are located in Mahul and Mallet Road in Mumbai and in Budge. Bharat Petroleum is currently working to reverse its losses resulting from the Government's mandate to sell kerosene, liquefied petroleum gas, petrol and diesel way below market rates. On September 23, 2005, the Company delisted its shares from the Madras Stock Exchange Ltd, Calcutta Stock Exchange Association Ltd and Delhi Stock Exchange Association Ltd. In November 2005, Bharat Petroleum's November 2004 profits dissipated and the Company registered a INR203-crore (US$45.7 million) net loss. By the end of the third quarter ending December 31, 2005, the Company posted a US$231-million net loss. In January 2006, Bharat Petroleum entered into a merger with Koichi Refineries Ltd, which shareholders for both companies accepted. Even with its expansion moves, Bharat Petroleum has decided to put aside a US$1.4-million expansion project due to losses brought about by oil subsidies, as the Company -- and the entire industry -- suffered huge losses and has difficulty implementing expansion activities due to the Government's refusal to allow oil companies to raise fuel prices despite global crude oil price crossing US$70 a barrel. On February 20, 2006, the Petroleum Ministry proposed an increase of INR3 per liter each in petrol and diesel prices and INR20 per cylinder increase in liquefied petroleum gas price to save the oil companies from going bankrupt. BHARTI AIRTEL: 2006 3rd Quarter Net Profit Rises to INR8.9 Bil. --------------------------------------------------------------- Bharti Airtel Limited informs the Bombay Stock Exchange that it has released its unaudited results for the quarter ended September 30, 2006. Bharti Airtel posted a net profit after tax of INR8.884 billion for the quarter ended September 30, 2006, as compared to INR5.004 billion for the quarter ended September 30, 2005. Total revenue increased from INR26.400 billion for the September 2005 quarter to INR42.130 billion for the September 2006 quarter. The audited consolidated results as per Indian Generally Accepted Accounting Principles state that: The Group posted a profit of INR8.788 billion for the quarter ended September 30, 2006, compared to INR5.072 billion for the quarter ended September 30, 2005. Total income increased from INR27.427 billion for the September 2005 quarter to INR43.630 billion for the September 2006 quarter. As per the United States Generally Accepted Accounting Principles, Bharti Airtel's unaudited consolidated results provide that: The Group has posted a net income of INR9.338 billion for the quarter ended September 30, 2006, compared to INR5.209 billion for the quarter ended September 30, 2005. Total revenues increased from INR27.091 billion for the September 2005 quarter to INR43.571 billion for the September 2006 quarter. Bharti Airtel provided the BSE with a reconciliation of the difference in net income or profit between US GAAP (unaudited) with IGAAP (audited): (In millions) Quarter ended Particulars Sep 30, 2006 ----------- ------------- Net income as per US GAAP INR9,338.20 Add: Differences on account of: Minority Interest and loss of Joint Venture 12.00 Differential depreciation provided in IGAAP due to forex fluctuations not considered in US GAAP 43.40 Less: Differences on account of: Amortization of Goodwill or Intangibles 67.70 Being differences in revenue recognition 137.40 License fee amortization 147.30 Differences in accounting for finance charges 244.60 Remeasurement of financial instruments not applicable in IGAAP 0.80 Deferred Tax expense 07.40 ----------- Net profit as per Indian GAAP INR8,788.40 =========== Bharti, in a press release, pointed out that it had over 28.6 million customers as of September 30, 2006, an increase in the total customer base of 90%, over the corresponding period last year. About Bharti Airtel Headquartered in New Delhi, India, Bharti Airtel Limited -- http://www.bhartiairtel.in/-- is a telecom services provider. The company has three business units: Mobile Services, Broadband & Telephone Services (B&TS) and Enterprise Services. The Mobile Services business unit offers mobile services in all 23 telecom circles of India. The B&TS business unit provides broadband and telephone services in 90 cities across India. The Enterprise Services business unit has two sub-units: Carriers (long- distance services) and Corporates. Through Enterprise Services- Carriers, Bharti Airtel provides national and international long-distance services. The Enterprise Services-Corporates business unit provides integrated voice and data communications solutions to corporate customers and small and medium-size enterprises. * * * The Troubled Company Reporter - Asia Pacific reported on June 28, 2006, that Fitch Ratings has affirmed Bharti Airtel Limited's long-term foreign currency issuer default rating at BB+. The outlook on the rating remains stable. Additionally, Standard and Poor's Rating Service gave the company's long-term local and foreign issuer credit BB+ ratings on September 21, 2005. BHARTI AIRTEL: Inks US$400-Mil. Expansion Deal with Nokia --------------------------------------------------------- Bharti Airtel signed an estimated US$400 million contract with Nokia to expand its managed GSM/GPRS/EDGE networks in eight Airtel circles and deploy a pan India WAP solution across its networks. As per the three-year contract, Nokia will provide managed services and expand Airtel networks to cover all towns and cities in the eight telecom circles of Mumbai, Maharashtra & Goa, Gujarat, Bihar (including Jharkhand), Orissa, Kolkata, West Bengal and Madhya Pradesh (including Chattisgarh). The network monitoring operations will be carried out from Nokia's state-of-the-art Global Network Services Center in Chennai. Nokia will also deploy its WAP solution across Airtel's national network to enhance its mobile packet core network capabilities. The WAP gateway to be implemented by Nokia will enable easy usage of data services, thereby increasing the consumption of content on the Airtel network. Nokia will provide consulting services and integrate the WAP gateway into a multi-vendor environment. Nokia will deploy the latest radio and core network equipment including softswitch, flexi-base stations and mini-Ultrasite base stations and provide services based on Bharti's capacity requirements, delivering a cost-efficient rollout of on-demand capacity. The contract also has stringent service level agreements and performance metrics for both parties which are designed to provide consistently high quality services to subscribers and continuously enhance the user experience. Manoj Kohli, Bharti Airtel President, said, "Our network leadership across India is a critical driver in the Bharti Airtel success story. Our partnership with Nokia reinforces our commitment to this cause and Nokia will provide us the latest technology and expertise to drive growth in the latent market in Eastern India and rapidly expand our coverage in Western parts of India. "Nokia is proud to collaborate with Bharti on its initiative to take mobile services to millions of unconnected Indians and enhance the mobile data experience of its existing customers," said Mr. Ashish Chowdhary, Country Director, Networks, Nokia India. "Our extensive managed services capability, powered with a comprehensive and high quality product portfolio makes Nokia a catalyst for providing affordable mobile services to rural consumers. About Bharti Airtel Headquartered in New Delhi, India, Bharti Airtel Limited -- http://www.bhartiairtel.in/-- is a telecom services provider. The company has three business units: Mobile Services, Broadband & Telephone Services (B&TS) and Enterprise Services. The Mobile Services business unit offers mobile services in all 23 telecom circles of India. The B&TS business unit provides broadband and telephone services in 90 cities across India. The Enterprise Services business unit has two sub-units: Carriers (long- distance services) and Corporates. Through Enterprise Services- Carriers, Bharti Airtel provides national and international long-distance services. The Enterprise Services-Corporates business unit provides integrated voice and data communications solutions to corporate customers and small and medium-size enterprises. * * * The Troubled Company Reporter - Asia Pacific reported on June 28, 2006, that Fitch Ratings has affirmed Bharti Airtel Limited's long-term foreign currency issuer default rating at BB+. The outlook on the rating remains stable. Additionally, Standard and Poor's Rating Service gave the company's long-term local and foreign issuer credit BB+ ratings on September 21, 2005. BHARTI AIRTEL: To Set Up Telecom Infrastructure at Mundra Port ------------------------------------------------------------- Bharti Airtel partnered with the Adani group for setting up the Telecommunications Network Infrastructure for its multi-sector Special Economic Zone located at Mundra Port. The Memorandum of Understanding to roll out end-to-end telecom solutions for Mundra Port and Special Economic Zone of the Adani Group was signed between Vinod Sawhny, Joint President, Bharti Airtel Limited and Ameet H. Desai, Chief Financial Officer (Infrastructure), Adani Group. This joint initiative between Bharti and the Adani Group is critical for the development of Mundra Port and Special Economic Zone, one of the largest multi-sector operational SEZs. Under the agreement, Bharti Airtel will set up the Telecom corridor connecting the Mundra Port and Special Economic Zone site nationally and internationally. The Telecom infrastructure within the SEZ will be rolled out in a phased manner and will cover all areas within the SEZ, including the port and the power plant areas. Bharti Airtel will enable Adani Group to realize its objective of making Mundra Port and Special Economic Zone the most preferred destination offering world-class infrastructure, services and multimodal connectivity for global business, living, learning and recreation. Announcing the agreement, Mr. Sawhny said, "The partnership with the Adani Group is a great beginning to realize the vision of SEZs in the country. Bharti Airtel has repeatedly demonstrated its expertise in setting up complex and extensive projects for large Enterprises across India. We are happy to be the exclusive partner for setting up the telecom network for Mundra Port and Special Economic Zone, which when completed will be among India's largest." On this occasion Mr. Desai said, "With signing of this agreement, first of its kind in the country, an important milestone has been achieved in development of Mundra Port and Special Economic Zone. This initiative will go a long-way in providing communication backbone to existing as well as prospective occupants of SEZ and improve productivity" As part of the agreement, Bharti aims to equip the Mundra Port and Special Economic Zone with world-class data, fixed voice and mobile services, besides providing Managed Hosting and business resiliency & continuity services. Under Managed Hosting Services, Bharti will not only host and manage the data & applications for enterprises based at Mundra Port and Special Economic Zone but also provide them with end-to-end connectivity and video surveillance and create a MPLS VPN. Companies will also be able to safeguard themselves against any unforeseen disasters by having access to back up of critical business data and applications through the business resiliency and continuity services offered by Bharti. About Bharti Airtel Headquartered in New Delhi, India, Bharti Airtel Limited -- http://www.bhartiairtel.in/-- is a telecom services provider. The company has three business units: Mobile Services, Broadband & Telephone Services (B&TS) and Enterprise Services. The Mobile Services business unit offers mobile services in all 23 telecom circles of India. The B&TS business unit provides broadband and telephone services in 90 cities across India. The Enterprise Services business unit has two sub-units: Carriers (long- distance services) and Corporates. Through Enterprise Services- Carriers, Bharti Airtel provides national and international long-distance services. The Enterprise Services-Corporates business unit provides integrated voice and data communications solutions to corporate customers and small and medium-size enterprises. * * * The Troubled Company Reporter - Asia Pacific reported on June 28, 2006, that Fitch Ratings has affirmed Bharti Airtel Limited's long-term foreign currency issuer default rating at BB+. The outlook on the rating remains stable. Additionally, Standard and Poor's Rating Service gave the company's long-term local and foreign issuer credit BB+ ratings on September 21, 2005. BPL LTD: To Publish 1st Half 2006 Results by November 30 -------------------------------------------------------- BPL Ltd advises the Bombay Stock Exchange that it will be publishing its audited financial results within two months from the closure of the second quarter ended September 30, 2006. BPL will not publish its unaudited financial results for the quarter ended September 30, 2006. About BPL Limited Headquartered in Bangalore, India, BPL Limited manufactures and distributes consumer electronic products such as televisions, video tape recorder, audio systems, emergency lanterns, electrocardiographs and monitors. The Group also manufactures home appliances like washing machines, refrigerators, vacuum cleaners, microwave ovens, gas tables, soft energy and consumer telecom products. Its plants are located at Kerala, Karnataka and Uttar Pradesh. The Group operates only in India. Last year, the Company obtained approval from the Kerala High Court for its financial restructuring scheme and the launch of the 50:50 joint venture with Sanyo for the CTV business. The restructuring has allowed BPL to focus and strategize on its core businesses like mobile phones, entertainment electronics, medical electronics, engineering plastics and tooling for automotive and consumer electronics industry. As a part of the restructuring exercise, BPL had recently sold off its dry cell business -- which operated through its subsidiary BPL Soft Energy Systems -- in a INR67 crore deal including liabilities to the Khaitans of Eveready Industries. * * * On January 5, 2006, CRISIL Ratings reaffirmed the 'D' and 'FD' ratings on BPL Limited's non-convertible and fixed deposit programmes. The ratings indicate that the company continues to be in default on its rated debt. These ratings are reaffirmed: * INR600 Million Non-Convertible Debenture at D * INR210 Million Non-Convertible Debenture at D * INRFixed Deposit Programme at FD CANARA BANK: Fitch Gives BB Rating to Proposed Tier I Notes ----------------------------------------------------------- Fitch Ratings assigned a Long-term foreign currency Issuer Default rating of 'BBB-' to India's Canara Bank. At the same time, the agency has assigned: * a 'BBB-' rating to the bank's senior debt; and * 'BB' ratings to the proposed hybrid Tier I notes as well as the unsecured subordinated upper Tier II bonds to be issued under its US$1 billion medium-term notes program. The agency also assigned a National Long-term rating of 'AAA(ind)' to CB and upgraded its Individual rating to 'C/D' from 'D', while affirming the Support rating of '3'. The Outlook on the ratings is Stable. Both the hybrid Tier I and the subordinated upper Tier II bonds have call and coupon step-up options after 10 years. Interest is not payable if the capital adequacy ratio falls below the regulatory minimum (currently 9%); it is cumulative for the upper Tier II bonds but non-cumulative for hybrid Tier I. Redemption will require the prior approval of the Reserve Bank of India, as would the interest payment in case the bank reports a net loss. The instrument ratings have therefore been notched below the Long-term foreign currency IDR to reflect their loss- absorbing nature, in accordance with Fitch's criteria for rating such hybrid capital instruments. The agency also notes that as per the issue terms, a deferral in interest would trigger a postponement of dividend on the common equity, an event that has not occurred during the last 20 years and which the bank should have a strong incentive to avoid. The ratings reflect CB's sustained profitability and consistent improvement in the reported asset quality and solvency indicators, which has resulted in an upgrade of its Individual rating. Its level of gross non-performing loans dropped significantly between FY04 and FY06 through a strong focus on recoveries and write-offs, and the reported NPL ratios now compare well with the best government banks in India. CB's risk management systems are being upgraded; this is important, as the rapid credit growth in recent years in retail and agriculture businesses could affect CB's asset quality in the event of a cyclical downturn. CB is also in the process of streamlining its organization structure that would enable it to better exploit the growing business opportunities. Liquidity is supported by healthy renewal of retail deposits thanks to its well-established franchise in India. CB's profitability indicators in recent years have been higher than the system medians and were driven by growth in net interest income. The reported earnings are however exposed to a greater degree of market risk in a rising interest rate scenario compared to other banks due to a large portfolio of "Available- For-Sale" investments that needs to be marked to market, though the risk is partly mitigated by a decline in the duration of the portfolio. Capital plans include raising hybrid instruments (both Tier I and Tier II) to support business growth and prepare for the capital charge on operational risk under Basel II while maintaining the regulatory Tier I ratio higher than 7% and the Capital Adequacy Ratio at around 12%. CB enjoys greater flexibility to raise common equity compared to many other government banks given that government's holding in CB at 73.2% is considerably higher than the regulatory minimum of 51%. CB, established in 1906, is one of the large government banks in India with a market share of about 5.6% of deposits. With a network of 2,537 branches, CB's business is spread across South (41%), West (25%) and North India (23%). CANARA BANK: Moody's Puts Hybrid Tier 1 Notes in Basket 'B' ----------------------------------------------------------- Moody's Investors Service assigned a Baa2 rating to the foreign currency senior, subordinated and junior subordinated notes to be issued by Canara Bank's London branch or any other foreign branch under its US$1-billion Medium Term Note program. At the same time, Moody's has assigned a Baa3 rating to any perpetual non-cumulative subordinated debt to be issued under the same program. The latter two hybrid securities (junior subordinated notes and perpetual non-cumulative subordinated debt) to be issued under the program bear the characteristics specified in the Reserve Bank of India's new guidelines on debt capital instruments and will be considered by the RBI to be Upper Tier II and Hybrid Tier I instruments, respectively. According to Moody's methodology on hybrids, and based on these instruments' characteristics, the subordinated upper Tier II notes were classified in basket 'A' signifying 100% debt-like characteristics, while the perpetual non-cumulative hybrid Tier I notes were classified in basket 'B', implying 75% debt-like features and 25% equity-like features. The Basket A allocation to the Upper Tier II instrument is based on the following rankings for the three dimensions of equity: * No Maturity: None -- the instrument has no equity-like features. The notes mature in 15 years and they are callable after 10 years with redemption requiring regulatory approval by RBI. * No Ongoing Payments: None -- the instrument has no equity- like features. The bank will not make any coupon payments if it cannot meet the capital-to-risk assets ratio requirement (currently a minimum of 9% set by RBI) and the net loss requirement (not having negative balance in the profit and loss account, which is a component of the reserves and surplus on the bank's balance sheet), subject to regulatory approval. Any deferred interest payments are cumulative and become due when the bank meets the above requirements. * Loss Absorption: Moderate -- the instrument is moderate with regard to its ability to replicate equity, given its ranking as senior to claims of holders of Tier I capital instruments and junior to Lower Tier II notes. The Basket B allocation to the Hybrid Tier I instrument is based on the following rankings for the three dimensions of equity: * No Maturity: Moderate -- The instrument is moderate from the point of view of its ability to replicate equity. Although the securities are perpetual, they are callable after 10 years with redemption requiring regulatory approval by RBI. * No Ongoing Payments: Weak -- the instrument is weak with regard to its ability to replicate equity. The bank may choose, at its discretion, to skip a coupon if it cannot meet the capital-to-risk assets ratio requirement (currently a minimum of 9% set by RBI). In case the bank cannot meet the net loss requirement (not having negative balance in the profit and loss account, which is a component of the reserves and surplus on the bank's balance sheet) then it needs regulatory approval to make any coupon payments. Any deferred interest payments are non- cumulative. * Loss Absorption: Moderate -- the instrument is moderate with regard to its ability to replicate equity, given its ranking as the most junior instrument in the capital structure, ahead only of equity and junior preference share. Any senior and subordinated notes to be issued under the MTN program are rated Baa2, constrained by the foreign currency debt ceiling for India (Baa2). Such instruments would normally have been rated higher were it not for transfer risk. The Baa2 rating on the junior subordinated notes (Upper Tier II) is placed at the ceiling for foreign currency debt in India and is unconstrained. The Baa3 rating on the perpetual non-cumulative notes (Hybrid Tier I) reflects the more junior ranking of this instrument and is also unconstrained. The first drawdown under this MTN program will be in the form of Upper Tier II subordinated notes and will be listed on the Singapore Stock Exchange. This specific issue is rated Baa2 and will mature in November 2021 with Canara Bank having an issuer call option after 10 years (November 2016). All ratings incorporate the bank's standalone financial strength and also the high likelihood of support from the Government of India in the event of need. Canara Bank's standalone financial strength is represented by its 'D' financial strength rating and is supported by a broad-based lending and deposit franchise through a country wide branch network. The rating also takes into account the bank's satisfactory profitability and capitalization as well as its improving asset quality. The outlook for all Canara Bank's ratings is stable. Moody's notes that the Baa2 assigned to the bank's Upper Tier II notes is subject to the receipt of final documentation, the terms and conditions of which are not expected to change in any material way from the draft documents reviewed. Canara Bank is headquartered in Bangalore, and at the end of March 2006 had total assets of INR1,328 billion (US$29.7 billion). CENTRAL BANK OF INDIA: Govt. Approves Restructuring Proposal ------------------------------------------------------------ The Indian Government's Union Cabinet approved a proposed restructuring plan of the Central Bank of India on November 9, 2006. Pursuant to the proposal, INR800 crore of INR1,124.14 crore of Central Bank's equity capital will be converted to perpetual non-cumulative preference share capital, the Bank states in a press release. The preference shares will have an annual floating coupon rate of 8% (benchmarked to Repo Rate, presently at 7%, plus spread of 100 basis points), which would be readjusted annually based on the prevailing Repo Rate on the relevant date. According to the release, the conversion of equity is expected to strengthen the Bank's Balance Sheet. The Bank also believes that the move will: -- provide it with flexibility to raise capital at a competitive cost; -- facilitate adoption of Base II recommendations on capital requirement; -- meet its capital requirements for future growth; and -- improve its credit rating. About Central Bank of India Established in 1911, Central Bank of India -- http://www.centralbankofindia.co.in/-- was the first Indian commercial bank, which was wholly owned and managed by Indians. Central Bank of India has large network in 27 out of 28 States as also in four out of seven Union Territories in India. The bank holds a very prominent place among the Public Sector Banks on account of its network of 3,165 branches and 270 extension counters at various centers throughout the length and breadth of the country. Moody's Investors Service gave the bank's foreign long-term bank deposits a Ba2 rating. Additionally, the bank carries Moody's E+ bank financial strength rating. Fitch on June 1, 2005, gave the bank an individual rating of D/E. As reported by the Troubled Company Reporter - Asia Pacific on October 31, 2006, Fitch upgraded the individual rating to D. CENTRAL BANK OF INDIA: Half Year 2006 Net Profit Up 99% ------------------------------------------------------- Central Bank of India's net profit for the six months ended September 30, 2006, shoot up by 99% to INR215 crore from INR108 crore in the corresponding period last year. The Bank's total income increased to INR3,114 crore in the half year ended September 30, 2006, from INR2,864 crore in the corresponding half year in 2005. Operating expenses in the September 2006 half-year period rose 9% to INR818 crore. The Bank's decreased provisions and contingencies contributed to the boost in net profit. For the half year ended September 30, 2006, the Bank recorded INR365 crore for provisions compared to INR439 crore in the corresponding period last year. A full-text copy of Central Bank of India's financial results for the half year ended September 30, 2006, is available for free at http://ResearchArchives.com/t/s?14d3 About Central Bank of India Established in 1911, Central Bank of India -- http://www.centralbankofindia.co.in/-- was the first Indian commercial bank, which was wholly owned and managed by Indians. Central Bank of India has large network in 27 out of 28 States as also in four out of seven Union Territories in India. The bank holds a very prominent place among the Public Sector Banks on account of its network of 3,165 branches and 270 extension counters at various centers throughout the length and breadth of the country. Moody's Investors Service gave the bank's foreign long-term bank deposits a Ba2 rating. Additionally, the bank carries Moody's E+ bank financial strength rating. Fitch on June 1, 2005, gave the bank an individual rating of D/E. As reported by the Troubled Company Reporter - Asia Pacific on October 31, 2006, Fitch upgraded the individual rating to D. DRESSER-RAND: Commences Secondary Offering of Common Stock ---------------------------------------------------------- Dresser-Rand Group Inc. commenced a secondary offering of 15,000,000 shares of its common stock to be sold by its stockholder, D-R Interholding, LLC, pursuant to an automatic shelf registration statement that Dresser-Rand filed with the U.S. Securities and Exchange Commission. The selling stockholder will grant the underwriter an option to purchase up to 2,250,000 additional shares of common stock to cover over-allotments. Dresser-Rand will not receive any proceeds from the sale of shares in the offering. The net proceeds will be distributed by the selling stockholder to affiliates of First Reserve Corporation and to certain members of Dresser-Rand management. Morgan Stanley is acting as the sole underwriter for the offering. A prospectus supplement relating to the offering will be filed with the Securities and Exchange Commission. When available, copies of the prospectus supplement and the accompanying base prospectus may be obtained by contacting: Morgan Stanley & Co. Incorporated Prospectus Department 180 Varick Street, 2nd Floor New York, NY 10014 Tel: 866-718-1649 E-mail: prospectus@morganstanley.com Dresser-Rand is among the largest suppliers of rotating equipment solutions to the worldwide oil, gas, petrochemical, and process industries. It operates manufacturing facilities in the United States, France, Germany, Norway and India, among others, and maintains a network of 24 service and support centers covering 105 countries. * * * Standard & Poor's Ratings Services raised on Sept. 13, 2006, its corporate credit rating on rotating equipment maker Dresser-Rand Group Inc. to 'BB-' from 'B+' and revised the outlook on the rating to stable from positive. DRESSER-RAND: Secures US$63.2MM Order from Marathon Petroleum ------------------------------------------------------------- Marathon Petroleum Company LLC, a wholly owned unit of Marathon Oil Corporation, has selected Dresser-Rand Co. for the supply of compression equipment for the planned expansion of its Garyville, La., refinery. According to Dresser-Rand, the company booked a US$63.2 million order in October 2006 to supply critical compression equipment, including six DATUM turbo-compressor trains and eight reciprocating compressor units along with their drivers. Additionally, it is expected that installation, commissioning and start-up services will be added. The equipment will be used to increase production of ultra-clean fuels, including gasoline and distillate. It is anticipated that Marathon's expansion project will increase the Garyville facility's crude throughput from approximately 245,000 barrels to about 425,000 barrels a day. Work is scheduled to begin in 2007. "We're pleased that Marathon selected Dresser-Rand to supply these services as part of its continuing capital investment program to help the growing energy needs of consumers," said Brad Dickson, Dresser-Rand's executive vice president, New Equipment Worldwide and executive sponsor for the project. "The estimated total order value including the additional services is expected to approach US$68 million." About Marathon Oil Marathon Oil Corporation is the fourth-largest U.S.-based fully integrated international energy company. It owns and operates refineries capable of refining approximately 974,000 barrels a day in its seven-refinery system and a retail marketing network that supports approximately 5,500 locations in 17 states; nearly three-quarters are Marathon brand locations. About Dresser-Rand Dresser-Rand is among the largest suppliers of rotating equipment solutions to the worldwide oil, gas, petrochemical, and process industries. It operates manufacturing facilities in the United States, France, Germany, Norway and India, among others, and maintains a network of 24 service and support centers covering 105 countries. * * * Standard & Poor's Ratings Services raised on Sept. 13, 2006, its corporate credit rating on rotating equipment maker Dresser-Rand Group Inc. to 'BB-' from 'B+' and revised the outlook on the rating to stable from positive. ================= I N D O N E S I A ================= ALCATEL SA: S&P Keeps 'BB' Rating on CreditWatch Negative --------------------------------------------------------- Standard & Poor's Ratings Services said that its 'BB' long-term corporate credit rating on France-based Alcatel and its 'B' long-term corporate credit rating on U.S.-based Lucent Technologies Inc. remain on CreditWatch with negative and positive implications, respectively, where they were placed on March 24 on news of the two telecoms equipment makers' plans to merge. The ratings will remain on CreditWatch until completion of the merger and clarification of the ranking and support mechanisms for the various debt classes within the merged group's capital structure. The ratings on the individual debt issues of each company will be clarified at that time. Standard & Poor's 'B' and 'B-1' short-term corporate ratings on Alcatel and Lucent, respectively, are not on CreditWatch and remain unchanged. Alcatel and Lucent are in the final stages of their merger process. To date, all approvals have been received from the shareholders and regulators -- except that from the Committee on Foreign Investments in the U.S. Both companies expect the merger to be completed by the end of the calendar year. Upon completion, Standard & Poor's will lower its long-term corporate credit rating on Alcatel (to be renamed Alcatel Lucent) to 'BB-', with a positive outlook. At the same time, it will withdraw its corporate credit ratings on Lucent. "The anticipated 'BB-' rating on Alcatel Lucent upon completion of the merger will reflect the challenges the combined company will face in integrating the two entities from an organizational and technological standpoint, carrying out a large restructuring plan, and supporting significant levels of debt," said Standard & Poor's credit analyst Leandro de Torres Zabala. "The positive outlook would reflect the possibility of an upgrade over the next 18 months if the combined company showed clear progress in integrating the two companies and achieving targeted synergies, reaching high-single-digit operating margins (adjusted for purchase accounting) and meaningful sustained free cash flow generation, as well as maintaining solid liquidity in stable market conditions," Mr. de Torres added. The merger has a clear logic, given continuing carrier consolidation and the convergence of fixed and mobile network technologies. The combined company will have a larger scale, greater product depth, wider geographic reach, and stronger R&D capability. Alcatel and Lucent expect the combined company to extract about EUR1.4 billion in annual pretax cost synergies during the first three years. At the same time, the merger will entail a number of near-term challenges, such as: -- the complexity of integrating two large organizations with different corporate cultures; integrating different technology platforms while preserving key customer relationships; -- implementing a EUR1.4 billion restructuring program leading to the reduction of the combined workforce by at least 10%; and -- continuing to support significant levels of debt and unfunded health care obligations. The combined Alcatel Lucent will be headquartered in Paris, France. Pro forma for the Thales S.A. transaction and the acquisition of Nortel's 3G activities, Standard & Poor's estimates that Alcatel Lucent achieved EUR19 billion in sales in 2005 and had about EUR7.4 billion in debt securities outstanding at Sept. 30, 2006. At the same date, the combined company's pro forma ratio of adjusted (for operating leases and pension and health care liabilities) gross financial debt to EBITDA for the 12 months to Sept. 30, 2006, was about 4.6x. This is partially offset, however, by Alcatel Lucent's anticipated robust liquidity -- with cash and marketable securities totaling EUR7.5 billion -- and a fairly light maturity schedule. The ratings on Alcatel Lucent will be supported by: -- S&P's assessment of moderate revenue growth prospects; -- a broad portfolio of wireline and wireless systems; -- large-scale, geographically diversified operations; -- strong customer relations; -- one of the largest R&D capabilities in the industry and -- robust liquidity. The ratings will be constrained by: -- the very competitive telecoms equipment industry, notably in the context of continuing carrier consolidation; -- ongoing major changes in the industry's technology direction, resulting in potential rapid adverse changes in demand patterns; -- significant gross debt; and -- uneven free cash flow generation reflecting moderate sales growth, health care payments, restructuring costs, and working-capital changes. ALCATEL SA: Inks EUR16-Mln Info Program with Fiji Government ------------------------------------------------------------ The Fiji government has selected Alcatel S.A. as sole provider of an advanced information and communications solution for an e-government program. This program, which started on Oct. 2, will increase the Fiji administration's efficiency and enable better policy outcomes as well as improve services delivery to the general public and greater interaction with citizens. The contract is valued at EUR16 million. The contract was won through Alcatel Shanghai Bell, Alcatel's flagship Chinese company. As the sole communication solution provider, Alcatel together with National Computer Systems of Singapore, and Fiji Government Implementation Agency Information Technology and Computing Services will provide turnkey services to the Fiji government, including consulting, program design, implementation, management and maintenance as well as training. Upon the completion of the project in 2008, Fijian ministries, businesses, and citizens will be encouraged to directly access the information and services online and participate in the governance process. The project also includes a private IP voice and data communication solution, as well as IT platforms, including security and network management. "The objective of the Fiji e-government program, at the broadest level, is to improve social productivity, economic growth, employment creation and quality of life for our citizens. The project is not only visionary, but also comprehensive and tailored to answer the needs of Fiji today," said Ratu Jone Kubuabola, Fiji's Minister for Finance and National Planning. "We will fully leverage Alcatel's strong expertise in e- government projects and in integration services worldwide to help Fiji reach their objectives in terms of social and economic development and growth of the country, thus enabling all to benefit from the innovative e-services that will be delivered," said Gerard Dega, President of Alcatel Shanghai Bell. About Alcatel Headquartered in Paris, France, Alcatel S.A. (Paris: CGEP.PA and NYSE: ALA) -- http://www.alcatel.com/-- provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or employees. Alcatel brings its leading position in fixed and mobile broadband networks, applications and services, to help its partners and customers build a user-centric broadband world. With sales of EUR13.1 billion and 58,000 employees in 2005, Alcatel operates in more than 130 countries, including Indonesia, Australia, Japan, Korea, Taiwan, the Philippines, Thailand, Singapore, and Vietnam. * * * Moody's Investors Service has placed the Ba1 long-term debt ratings of Alcatel SA on review for possible downgrade following its definitive agreement to merge with Lucent Technologies (rated B1). The ratings placed on review include Alcatel's senior, unsecured Eurobonds, convertible bonds, Euro-medium term notes, its EUR1.0 billion revolving credit facility and its corporate family rating, all at Ba1 currently. Alcatel's rating for short-term debt was affirmed at Not-Prime. In March 2006, Standard & Poor's Services placed its 'BB' long- term corporate credit rating on France-based telecommunications equipment maker Alcatel on CreditWatch with negative implications. ALCATEL SA: Inks EUR53 Million Network Deal with China Mobile ------------------------------------------------------------- Alcatel S.A. secured three separate GSM and GPRS expansion contracts with Chinese mobile service providers, Shaanxi Mobile Communication Company Limited (Shaanxi MCC) and Jiangsu Mobile Communication Company Limited (Jiangsu MCC), both subsidiaries of China Mobile. The contracts, valued at around EUR53 million, were won through Alcatel Shanghai Bell, Alcatel's flagship company in China. They confirm Alcatel's growing momentum in the country. Under the contract with Shaanxi MCC, Alcatel will provide and install its Evolium GSM/EDGE platform to expand mobile service in five major cities across Shaanxi Province: Yulin, Yan'an, Shangluo, Baoji and Xianyang. To ensure quality of service, Alcatel has reinforced its rural coverage solution with indoor and outdoor base stations. Alcatel will also provide Shaanxi MCC with its Alcatel's advanced TCA-compliant SGSN (Serving GPRS Support Node), that will enable nearly one million additional subscribers to take advantage of enhanced mobile voice and data services, such as web browsing, video streaming, and instant messaging. Alcatel's contract with Jiangsu MCC provides for installation of Alcatel's Evolium GSM/EDGE solutions including Base Stations (BTS), Base Station Controllers (BSC), Transcoder (TC), Multi- BSS Fast Packet Server (MFS) and Operation & Maintenance Center for Radio (OMC-R). Once deployed the network will serve subscribers in Jiangsu Province located in the cities of Nanjing, Yangzhou, Xuzhou, Huaian, Yancheng, Lianyungang, Suqian and Taizhou. This is the 9th GSM network expansion contract that Alcatel has secured with Jiangsu MCC. Alcatel is a leader in providing advanced mobile communication solutions in China, a position the company established as early as 1993 when it introduced the country's first GSM system in Zhejiang Province. To date, Alcatel's Evoliumr solutions have already been installed in 25 Chinese provinces. About Alcatel Headquartered in Paris, France, Alcatel S.A. (Paris: CGEP.PA and NYSE: ALA) -- http://www.alcatel.com/-- provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or employees. Alcatel brings its leading position in fixed and mobile broadband networks, applications and services, to help its partners and customers build a user-centric broadband world. With sales of EUR13.1 billion and 58,000 employees in 2005, Alcatel operates in more than 130 countries, including Indonesia, Australia, Japan, Korea, Taiwan, the Philippines, Thailand, Singapore, and Vietnam. * * * Moody's Investors Service has placed the Ba1 long-term debt ratings of Alcatel SA on review for possible downgrade following its definitive agreement to merge with Lucent Technologies (rated B1). The ratings placed on review include Alcatel's senior, unsecured Eurobonds, convertible bonds, Euro-medium term notes, its EUR1.0 billion revolving credit facility and its corporate family rating, all at Ba1 currently. Alcatel's rating for short-term debt was affirmed at Not-Prime. In March 2006, Standard & Poor's Services placed its 'BB' long- term corporate credit rating on France-based telecommunications equipment maker Alcatel on CreditWatch with negative implications. BANK NEGARA: US$150-Million Fundraising to Close Next Week ---------------------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on Oct. 3, 2006, PT Bank Negara Indonesia has appointed three foreign banks -- Standard Chartered Bank, Mizuho and ABN-Amro -- to help it secure US$150 million in syndicated loans. According to the TCR-AP report, the loan, which will mature in two to three years, is a strategic way of financing, and will be used to fund Bank Negara's foreign operations. In an update, Finance Asia relates that the syndication of Bank Negara's US$150-million fundraising has yet to close with banks expected to revert by early next week. Finance Asia says that thus far, the dual tranche facility has received commitments from several banks and that a couple more are still processing credit approvals. Finance Asia explains that the financing is split between a US$50-million two-year tranche that is priced at 45bp over Libor and US$100-million three-year tranche that carries a margin of 60bp over Libor. Headquartered in Jakarta, Indonesia, PT Bank Negara Indonesia (Persero) Tbk -- http://www.bni.co.id-- is a financial institution with products and services that include: Individual, Business, Syariah, Micro Banking, and Online Feature. The Bank has approximately 700 correspondent banks, 914 local branches and five oversea branches located in New York, London, Tokyo, Hong Kong and Singapore. The bank has five subsidiaries: PT BNI Multi Finance, a financial services company; PT BNI Securities, a securities company; PT BNI Life Insurance, an insurance provider; PT BNI Nomura Jafco Manajemen Ventura, a venture capital company, and PT BNJI Ventura Satu, a venture capital company. As reported in the Troubled Company Reporter - Asia Pacific on May 22, 2006, Moody's Investors Service has lifted Bank Negara Indonesia's senior debt rating to B1 from B2, and long-term deposit rating to B2 from B3. The revised ratings carry a stable outlook. Bank Negara's short-term deposit rating of Not- Prime, and bank financial strength rating of E are unaffected. Another TCR-AP report on May 24, 2006 stated that Fitch Ratings affirmed Bank Negara's: * Long-term Foreign and Local Currency Issuer Default Ratings at 'BB-'; * Short-term rating at 'B'; * Individual rating at 'D'; and * Support rating at '4'. Further, another subsequent TCR-AP report on July 17, 2006, said that Standard & Poor's Ratings Services revised the outlook on the local currency counterparty credit rating on Bank Negara to stable from positive. At the same time, Standard & Poor's affirmed its foreign and local currency ratings on BNI (B+/Stable/B). BANK PERMATA: Denies Reports on Employee Layoff ----------------------------------------------- PT Bank Permata Tbk, on November 10, 2006, denied reports that it would cut its employee population for productivity reasons, according to Antara News. The report cites Bank Permata Vice President Imam Teguh Satono as telling the Jakarta Stock Exchange that it was too early for the bank to come to a decision to cut its personnel in order to improve its performance. He said the bank was in the middle of reviewing its organizational structure, employees' productivity, capacity planning and business performance in the face of global competition. According to Mr. Satono, bank Permata has conducted a pilot project of the program in its 40 branches in Jakarta, Badung, Surabaya, and Medan and that the result showed improvements in the bank's performance by more than 30% in 20 weeks, Antara notes. Furthermore, Antara News says that Mr. Samoto said the program has been carried out in all Bank Permata offices and that the study to improve the bank's productivity is being implemented, which is why it is too early to make a decision to cut its personnel. Headquartered in Jakarta, Indonesia, PT Bank Permata Tbk's -- http://www.permatabank.com/-- products and services include liabilities, asset, credit card and bancassurance, PermataFOREX, commercial banking, e-channels and preferred banking. The bank has approximately 318 domestic branches, sub branches and cash offices throughout the country. The bank's subsidiaries, which are engaged in the securities industry, the consumer finance and leasing sector, the general insurance business and the banking sector, include PT Bali Securities, PT Bali Tunas Finance, PT Asuransi Permata Nipponkoa Indonesia and Bank Perkreditan Rakyat. The Troubled Company Reporter -- Asia Pacific reported on July 5, 2006, that Moody's Investors Service gave Bank Permata an 'E+' bank financial strength rating, with a positive outlook. These ratings were unaffected: * Long-term/short-term deposit ratings of B2/Not Prime. Outlook stable. CORUS GROUP: Institutional Investors Dispose of Shares ------------------------------------------------------ The Troubled Company Reporter - Asia Pacific reported on Nov. 10, 2006, that due to a sharp reduction in Corus Group Plc's share prices and dilution of stake by its main shareholders, the possibility of a bid to counter Tata Steel Ltd's offer to acquire the company looks remote. The TCR-AP indicated that since October 20, 2006, the day Tata Steel's bid was accepted by Corus' board of directors -- to 465.75 pence -- without any counter offer, Corus shares have lost 2.7%. Tata Steel had offered 455 pence a share to the Corus shareholders and putting the valuation of the company at over US$10 billion. Indian Express relates that large shareholders of Corus are fast selling their shares in the open market. According to the report, three institutional investors -- Alliance Bernstein, Barclays and Jupiter Asset Management -- have sold their shares in the company in order to book profits as the current Corus share price, as shown in the statistics with the London Stock Exchange, is ruling above Tata Steel's 455-pence offer price. The report relates that Alliance has sold 28 million shares since October 6, thus reducing its stake from 5.2% to just 0.9%. Barclays Plc has cut its holdings to 4.7% from 6.4% by selling 15.3 million shares, while Aviva excited Corus on November 8. Indian Express cites a Mumbai steel analyst as saying that the institutional investors are exiting at higher share price as they are getting less indications of a counter-bid, which could be good news for Tata Steel. On November 8, the report recounts, Corus was trading in the 461-466 pence range against November 7's close of 465.75 pence a share. Tata Steel, on the other hand, was trading at IDR493.85, down 0.7% in a bearish Mumbai stock market. A regulatory filing with the London Stock Exchange on Nov. 8 showed that ABN Amro, an advisor to Tata Steel, bought Corus shares. However, Indian Express notes, Tata Steel clarified that they have not mandated ABN Amro to buy shares. The report says that, according to Tata Steel officials, they would post shareholders with the offer document and that an extra-ordinary general meeting of shareholders would be held on December 4 to get their approval on the deal. Indian Express explains that Tata Steel needs to convince 50% of shareholders and 75% of the votes made at a special shareholder meeting about the takeover deal. Corus Group PLC -- http://www.corusgroup.com/-- produces metal from its major operating facilities in the U.K., the Netherlands, Germany, France, Norway, Belgium and Canada. Corus turns over GBP10 billion annually and employs 47,300 in over 40 countries and sales offices and service centers worldwide, including Indonesia and the Philippines. Corus was created through the merger of British Steel plc and Koninklijke Hoogovens N.V. The group suffered six years ago from the crisis in British manufacturing, which prompted it to shake up management, close plants, cut jobs, and sell assets to lower debt. Its debt was thought to stand at GBP1.6 billion in 2002. After posting a net loss of GBP458 million in 2003, it embarked on a restructuring program, signed a new EUR1.2 billion banking facility, and issued GBP307 million worth of shares. It returned to operating profit in the first quarter of 2004. The recent recovery of steel prices and the strength of the euro are expected to help it achieve relatively strong earnings. * * * Moody's Investors Service placed all ratings of Corus Group plc under review with direction uncertain following the recommendation of the board of Corus Group in favor of the proposed acquisition of the entire capital of Corus Group by Tata Steel Limited. If the bondholders exercised the put option or the bonds were tendered for above par as part of a refinancing, Moody's is likely to withdraw the ratings for the bonds. Similarly, a refinancing of the rated bank loans would also result in a likely withdrawal of the ratings for the credit facilities. At that juncture, Moody's remaining rating at Corus Group will be the corporate family rating. Ratings affected: Corus Group plc * Ba2 Corporate Family Rating; * Ba1 Rating on EUR800 million Secured Bank Facilities maturing July 2008; * B1 Rating on EUR800 million Unsecured Notes due 2011; and * B1 Rating on GBP200 million in Unsecured Notes due 2008. Moody's last rating action on Corus was the upgrade to Ba2/Ba1/B1 on May 8. Fitch Ratings changed the Rating Watch on Corus Group PLC's Issuer Default and senior unsecured BB- and Short-term B ratings to Negative from Positive. This follows the recommendation by the CS Board of an offer from India-based Tata Steel Ltd. valued at GBP4.3 billion. The RWN also applies to these debt instruments issued by CS: -- CS EUR800 million 7.5% senior notes; -- CS EUR307 million 3% convertible bonds; and -- Corus Finance Plc GBP200 million 6.75% guaranteed bonds. Fitch will resolve the Rating Watch following publication of CS's 2006 results, further details on the level of synergies and operational benefits that could accrue under the transaction, and the closure of the deal. Standard & Poor's Ratings Services placed its 'BB' long-term corporate credit rating on U.K.-based steel consortium Corus Group PLC on CreditWatch with positive implications following the announcement by Corus concerning a possible recommended offer for the company from Tata Steel Ltd., India's second largest integrated steel company. At the same time, Standard & Poor's placed its 'BB+' senior secured bank loan ratings on Corus and its 'BB-' senior unsecured debt ratings on Corus and related entity Corus Finance PLC on CreditWatch with positive implications. The 'B' short- term corporate credit rating on Corus was also placed on CreditWatch with positive implications. GOODYEAR TIRE: Posts US$48-Mil. Net Loss in 2006 Third Quarter -------------------------------------------------------------- Including US$126 million in after-tax restructuring charges, The Goodyear Tire & Rubber Company reported a net loss of US$48 million during the 2006 third quarter. Of those charges, US$107 million is related to the previously announced plan to close the Tyler, Texas, tire plant. Net income for the first nine months of 2006 was US$28 million compared to net income of US$279 million during the year-ago period. Sales for the first nine months of 2006 were a record US$15.3 billion, an increase of 3% from US$14.8 billion in the 2005 period. The results also reflect higher raw material costs of US$249 million, offset partially by US$225 million of improved price/mix, and lower tire volume. During the period, the company also recorded an after-tax gain of US$10 million from a supplier settlement, and after-tax expenses of US$7 million share) related to accelerated depreciation primarily for a previously announced plant closure in New Zealand. Net income in the 2005 quarter was US$142 million. Goodyear reported third quarter sales of US$5.3 billion, a record for any quarter and a 6% improvement compared to the year-ago period excluding the impact of businesses divested in 2005, and despite the strategic decision to exit certain segments of the private label tire business in North America. Third quarter 2006 sales were driven by improved pricing and product mix, particularly in North American Tire, and the favorable impact of currency translation, estimated at US$77 million. All five of the company's tire businesses achieved sales that were a record for any quarter. Tire unit volume was 55.8 million units in the quarter, compared to 58.4 million units in the 2005 period. This 4% decrease was in part a result of the company's move to exit certain segments of the private label tire business in North America. Revenue per tire increased 8% compared to the third quarter of 2005. "Despite ongoing market weakness in North America and record high raw material costs, we continue to demonstrate the strength of our business model changes and successful product portfolio," said Chairman and Chief Executive Officer Robert J. Keegan. "After a challenging first half, our European Union business achieved year-over-year improvements in sales, units and segment operating income. Our key business strategies are also continuing to drive excellent results in the Asia Pacific, Latin America and Eastern Europe, Middle East and Africa tire businesses," he said. "Although we are in the midst of a strike by the United Steelworkers in North America, we continue to work hard for a contract that is fair to all stakeholders and puts Goodyear on a level playing field with our competitors," Mr. Keegan said. "In the meantime, we are executing on our contingency plans to continue providing our customers with outstanding value, products and services." Segment Results Third quarter total segment operating income was US$313 million, a decrease of 5% compared to US$330 million in the 2005 period. The European Union; Eastern Europe, Middle East and Africa, and Asia Pacific businesses each achieved segment operating income records. Prior-year segment operating income benefited from US$8 million related to businesses divested in 2005. North America North American Tire's sales were a record for any quarter, and increased 5% compared to the year-ago period excluding the impact of divestitures in 2005, as a result of strong sales in the chemical and other tire related businesses, and favorable price and product mix, led by high-value Goodyear and Dunlop branded tires. Third quarter segment operating income was US$19 million, compared to US$58 million in the prior year period, reflecting lower volume resulting from reduced demand in the consumer replacement market, the exit from the wholesale private label business, and higher costs related to lower production. Favorable price and product mix of US$103 million partially offset approximately US$108 million in higher raw material costs. Segment operating income also benefited from lower SAG expenses and higher operating income from other tire related businesses. Divestitures in 2005 reduced third quarter 2006 sales by approximately US$61 million, segment operating income by US$8 million, and volume by 200,000 units. The 2005 quarter also included approximately US$10 million of costs associated with Hurricanes Katrina and Rita in the U.S. Gulf Coast region. European Union European Union Tire's sales were a record for any quarter and 12% higher than in the 2005 quarter, due primarily to improved pricing and product mix, the impact of foreign currency translation, estimated at US$61 million, and higher volume. Segment operating income was a third-quarter record. The increase primarily reflected improved pricing and product mix, as increased sales of consumer replacement tires -- especially winter tires -- compensated for a decline in OE unit sales. Lower SAG expense also helped to partially offset higher raw material costs, estimated at US$66 million. Eastern Europe Eastern Europe, Middle East and Africa Tire's sales were a record for any quarter and up 9% compared to the third quarter of 2005 due to improved pricing and product mix, and higher volume. The company estimates currency translation had a negative impact on sales of approximately US$10 million in the third quarter. Segment operating income was a record for any quarter, and represented a 20% improvement over 2005. This gain was due to improved pricing and product mix and higher volume. These offset higher raw material costs, estimated at US$17 million. Latin America Latin American Tire's sales were a record for any quarter and increased 9% compared to the prior-year period due to higher volume, the favorable impact of currency translation, estimated at US$9 million, and favorable pricing and product mix. Segment operating income was flat compared to the 2005 quarter, as the approximately US$7 million favorable impact of currency translation, higher volume, and improved pricing and product mix, were offset by higher raw material costs, estimated at US$26 million. Asia Pacific Asia Pacific Tire's sales were a record for any quarter and a 7% increase compared to the 2005 period due to improved pricing and product mix and favorable currency translation, estimated at US$2 million, partially offset by lower volume. Segment operating income was a record for any quarter and a 17% improvement compared to the 2005 quarter as a result of improved pricing and product mix, offset in part by higher raw material costs, estimated at US$22 million, and lower volume. Engineered Products Engineered Products' third quarter 2006 sales decreased 9% due to lower volume, primarily related to anticipated declines in military sales. This offset improved pricing and product mix, as well as favorable currency translation of approximately US$4 million. Segment operating income increased 15% due primarily to a favorable legal settlement with a supplier of approximately US$10 million. Pricing and product mix improved compared to the prior-year quarter, but higher raw material costs, estimated at US$10 million, and lower volume had a negative impact on results. Contract Proposal Goodyear disclosed that its bargaining team is returning to Cincinnati in the hopes USW representatives will return to discussions. The company says its union proposal includes provisions to protect employment levels at all tire manufacturing plants other than Tyler, Texas, which the company has announced the intention to close. Also included is a proposal to contribute US$660 million to a Voluntary Employees Beneficiary Association, an independent trust fund that would provide retiree health care benefits to USW members and would eliminate the portion of Goodyear's post-retirement health care obligations related to the USW workforce. 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% TELKOMSEL INDONESIA: Awards 3G Construction Contract To Siemens --------------------------------------------------------------- PT Telekomunikasi Selular Indonesia awarded Siemens Network LLC a contract for the construction of a 3G Network, 3g.co.uk relates. The report says that the framework agreement between the two companies will run for three years and covers delivery of 3G radio access networks and radio relay technology for large parts of Telkomsel's network as well as turnkey implementation and technical services for network operations by Siemens. Telkomsel's goal, according to 3G.co, is to supply the entire country with 3G network services. The reports notes that Indonesia's eastern regions will profit particularly from the high technical standard of Siemens mobile communications technology. Siemens is supporting Telkomsel by supplying, installing and operating a 3G-radio access network. Components of such a network include base stations and radio network controllers, for wide area transport it will also supply radio relay technology based on the Synchronous Digital Hierarchy and Plesiochronous Digital Hierarchy standards, 3G.co says. Furthermore, 3G.co states, the contract strengthens Siemens' market position in Indonesia and in the Asia Pacific region in general. The contract also represents the continuation of a strategic relationship with Telkomsel that has developed since the construction of the 2G network for the carrier. PT Telekomunikasi Selular Indonesia -- http://www.telkomsel.com/ -- is the leading operator of cellular telecommunications services in Indonesia by market share. By the end of June 2006, Telkomsel had close to 29.3 million customers which based on industry statistics represented a market share of more than 50%. Telkomsel provides GSM cellular services in Indonesia, through its own nationwide Dual band 900/1800 MHz GSM network, and internationally, through 259 international roaming partner in 153 countries as of June 2006. The company provides its subscribers with the choice between two prepaid cards-simPATI and kartuAs of a pre-paid simPATI service, or the post-paid kartuHALO service, as well as a variety of value-added services and programs. A Troubled Company Reporter - Asia Pacific report on Dec. 20, 2005, stated that Standard & Poor's Ratings Services raised the foreign currency corporate credit ratings of PT Telekomunikasi Selular from BB- to BB+ with a stable outlook, and its local currency corporate rating from BB to BB+ with a stable outlook, following a review of the impact of risk factors such as economic structure, growth prospects, political stability, depth and liquidity of capital markets and transfer and convertibility risk. Another TCR-AP report said that Fitch Ratings gave Telekomunikasi Selular a BB long-term issuer default rating, effective on August 18, 2006. The outlook is stable. Additionally Fitch Ratings gave the company a BB+ local currency rating and a BB- foreign currency rating. Both ratings carry a positive outlook. ========= J A P A N ========= ALL NIPPON: Dropping Fuel Costs Lead to Lower Int'l Fares --------------------------------------------------------- All Nippon Airways Co. is seen to decrease fares on its international routes in January 2007 due to lower fuel costs, Kyodo News cites industry sources as saying. According to The Japan Times, the airlines is expected to lower fuel surcharges -- levied separately from regular flight fares -- by up to JPY1,100 per one-way flight for the first cut in fuel surcharges since the surcharge system was introduced last year. Kyodo notes that fuel surcharges on a one-way ticket from Japan to Thailand or Singapore will be lowered by JPY1,100 to JPY8,900 and those for one-way trips to Europe or Northern America by JPY600 to JPY13,000. The report explains that a cut in fuel surcharges would reduce All Nippon's revenue by nearly JPY500 million for the current business year because it procured most of their current supply when fuel costs were higher. About All Nippon Airways 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 airlines flies to all key Asian destinations, the United States and Canada, France, the United Kingdom and key European countries. As reported in the Troubled Company Reporter - Asia Pacific on June 13, 2006, Fitch Ratings said that the credit quality gap between Japan's top two airlines continues to widen with All Nippon Airways Co. Limited -- rated 'BB+'/Stable -- benefiting from market improvements, while its rival, Japan Airlines Corporation -- rated 'BB-'/Stable -- continues to be grounded by internal woes. The TCR-AP also stated on May 30, 2006, that 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. On May 3, 2006, 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. ALL NIPPON: Converts Two 767 Freighter Options into Firm Orders --------------------------------------------------------------- All Nippon Airways decided to exercise two of four options for 767-300 Boeing Converted Freighters, bringing the total number of firm orders to five. The freighters will be operated by ANA's cargo arm, ANA&JP Express, for late night domestic cargo services as well as short and medium haul international cargo flights to other countries within Asia. ANA became the launch customer of the 767 Boeing Converted Freighter programme in November last year, with an initial order for three aircraft to be delivered between December 2007 and October 2008. These latest orders will be delivered by the end of fiscal year 2009 (ending March 31, 2010), as ANA builds up its cargo fleet in line with its aim to make cargo the third pillar of its business, alongside domestic and international passenger operations. The delivery schedule of production and converted models is shown below. As part of its fleet renewal and rationalization plans, ANA will replace its fleet of 767-300ER passenger aircraft with the highly efficient Boeing 787 from May 2008. The conversion option allows ANA to make use of its existing 767-300ER aircraft beyond retirement from passenger operations, as freighter aircraft typically have a longer life-cycle than passenger aircraft of the same type. It also secures a cost saving, as the conversion comes in at a fraction of the US$150 million list price of a brand new 767-300F Freighter. About All Nippon Airways 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 airlines flies to all key Asian destinations, the United States and Canada, France, the United Kingdom and key European countries. As reported in the Troubled Company Reporter - Asia Pacific on June 13, 2006, Fitch Ratings said that the credit quality gap between Japan's top two airlines continues to widen with All Nippon Airways Co. Limited -- rated 'BB+'/Stable -- benefiting from market improvements, while its rival, Japan Airlines Corporation -- rated 'BB-'/Stable -- continues to be grounded by internal woes. The TCR-AP also stated on May 30, 2006, that 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. On May 3, 2006, 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. AOZORA BANK: Sets Public Offering Price at JPY570 Per Share ----------------------------------------------------------- The Troubled Company Reporter - Asia Pacific reported on Oct. 24, 2006, that Aozora Bank Ltd. would list its shares on the Tokyo Stock Exchange on Nov. 14, to raise up to US$3.3 billion for its investment fund owners in Japan's biggest public offering in eight years. The International Herald Tribune cites Aozora Bank as saying that its shareholders, including United States-based buyout fund Cerberus Partners, raised JPY351 billion, or US$2.97 billion, in an initial public offering of the firm, pricing the stock at the low end of the target range. The Japan Times says that investors sold 37% of Aozora in the initial public offering. According to Kyodo News, Aozora Bank had set the public offering price of its shares at JPY570 per share for its Nov. 14 relisting. The Tribune notes that investors were offered 615.98 million shares at between JPY550 and JPY610. Aozora, which is the successor to Nippon Credit Bank, will offer some 666.61 million shares in secondary sales, bringing the total value of sales to some JPY380 billion, The Japan Times says. Kyodo News explains that for the share offering, the government will convert some JPY100 billion worth of preferred Aozora shares, issued by the bank in return for receiving an injection of JPY284 billion in public funds, into common shares and sell them on the market. According to the report, while the government sale is expected to raise JPY130 billion, the difference from the principal amount of JPY100 billion will go into government coffers. Goldman Sachs Group, Morgan Stanley and Nikko Citigroup arranged the Aozora sale. The Tribune notes that Cerberus is selling part of its controlling stake after returning the former NCB -- which was delisted in December 1998 before it was sold to a group of firms in 2000 and renamed Aozora Bank -- to profit. Aozora Bank (formerly Nippon Credit Bank) -- http://www.aozorabank.co.jp/-- was the second Japanese credit bank nationalized in the wake of Asia's financial crisis after the Long-Term Credit Bank of Japan (now Shinsei Bank). Bad loans and Japan's "Big Bang" financial deregulation added to the bank's troubles. Traditionally a lender to small and midsized businesses, before the takeover it had started closing overseas branches and expanding its financial services. Aozora has a network of some 20 branches in Japan and four offices overseas. US investment fund Cerberus now owns 62% of the company after buying Softbank's stake (49%) in spring of 2003. Orix Corp and Millea Holdings each own 15%, and the Japanese government also owns a stake. Fitch Ratings, on October 23, 2006, affirmed the Bank's individual and support ratings at 'C' and '3'. The outlook on the ratings is stable. JAPAN AIRLINES: To Cut International Fares in January 2007 ---------------------------------------------------------- Japan Airlines Corp. is expected to lower fares on its international routes in January 2007 due to dropping fuel costs, Kyodo News says, citing industry sources. Moreover, the report says that JAL is expected to lower fuel surcharges -- levied separately from regular flight fares -- by up to JPY1,100 per one-way flight for the first cut in fuel surcharges since the surcharge system was introduced in 2005, the sources said. The Japan Times notes that fuel surcharges on a one-way ticket from Japan to Thailand or Singapore is expected to be lowered by JPY1,100 to JPY8,900 and those for one-way trips to Europe or Northern America by JPY600 to JPY13,000. According to the report, a cut in fuel surcharges would reduce revenue at JAL for the current business year because it procured most of its current supply when fuel costs were higher. Specifically, JAL's revenues are expected to be pushed down by more than JPY1 billion. Tokyo-based Japan Airlines International Company, Limited -- http://www.jal.com/en/-- was created as a result of the merger of Japan Airlines and Japan Air Systems to boost domestic coverage. As of March 31, 2006, JAL's debt amounted to JPY1.93 trillion, whereas shareholders' equity stood at JPY148.1 billion. The Troubled Company Reporter - Asia Pacific stated on May 12, 2006, that JAL posted a consolidated net loss of JPY47.24 billion for the business year 2005 ended March 31, 2006, due to safety-related incidents in 2005 that caused passengers to shift to its rival All Nippon Airways, and an increase in aviation fuel costs. * * * Fitch Ratings Tokyo analyst Satoru Aoyama said that the Company's debt obligations and expenses for new aircraft have placed it in an unfavorable financial position. Fitch assigned a BB- rating on the Company, which is three notches lower than investment grade, whereas Moody's Investors Service gave Ba3 senior unsecured and issuer ratings for Japan Airlines International Co., Ltd., as well as its Ba3 issuer rating for Japan Airlines Domestic Co., Ltd. On July 20, 2006, Standard & Poor's Ratings Services had affirmed its B+ long-term corporate credit and senior unsecured debt ratings on the Company. TREND MICRO: Announces Results of Share Buyback ----------------------------------------------- Trend Micro Inc., a leader in network anti-virus and Internet content security software and services, disclosed the results of its share buyback program pursuant to Article 165(2) of the Corporation Law of Japan. The share buyback program was approved pursuant to a resolution adopted at a meeting of the Board of Directors held on August 21, 2006. 1. Purchase period: From August 22, 2006 to September 20, 2006 (based on trade date) 2. Number of shares purchased: 2,000,000 shares 3. Aggregate cost of shares purchased: 6,809,730,000 yen 4. Purchase method: Transactions through the Tokyo Stock Exchange At the August 21 meeting, the Board adopted a resolution approving the share buyback program such that: (1) Class of Capital Stock to be Purchased: Shares of Common Stock (2) Number of Shares to be Purchased: Up to 2 million shares (3) Total Purchase Price: Up to JPY7 billion (4) Schedule: From August 22, 2006, to September 30, 2006 About Trend Micro Headquartered in Japan, Trend Micro Incorporated -- http://www.trendmicro.com/-- is a pioneer in secure content and threat management. Founded in 1988, Trend Micro provides individuals and organizations of all sizes with award-winning security software, hardware and services. With headquarters in Tokyo and operations in more than 30 countries, Trend Micro solutions are sold through corporate and value-added resellers and service providers worldwide. Standard and Poor's Ratings Service gave Trend Micro's long-term foreign and local issuer credits 'BB' ratings on July 13, 2005. * Life Insurers' Earnings May Be Ratings-Positive, Moody's Says --------------------------------------------------------------- Moody's Investors Service has an overall positive view on its rated universe of Japanese life insurers, based on those companies' improved capital adequacy -- backed by earnings accumulation thanks to strategic decisions to enter medical insurance and annuity insurance businesses -- and their potential to reduce investment risk in the case of an interest rate rise, says the rating agency in a new report. The report, "Japanese Life Insurance," comments that in addition to the continuing positive outlook for the industry, so far in 2006 the capital adequacy enhancements have led to upgrades of many of the 13 Japanese life insurers that Moody's rates. As demographics have evolved and customer demand changed, insurers have shifted their product portfolios, increasing their focus on medical insurance and annuity insurance rather than only death insurance. Involvement in these businesses has been underpinning insurers' earnings accumulation, which has strengthened capital bases. "Currently, many domestic life insurers have a relatively high portion of equity in their investment portfolios, partly due to a rise in equity markets. If interest rates materially go up, that would be an opportunity to transfer money invested in equity into domestic bonds, which, along with decreasing negative spread, could be a positive rating driver," explains Masahiko Miwa, Moody's Analyst and the author of the report. On the other hand, the report states that if insurers leave their money on the table and continue to expose their economic net worth to equity market volatility, the equity exposures will continue to weigh on their credit profiles. Moody's also notes that insurers' involvement in variable annuity products with minimum guarantees could increase their exposures to the equity market, depending on their product designs. * Tokyo Stock Exchange Completes Capacity Boost ----------------------------------------------- The Tokyo Stock Exchange disclosed that it has raised its trading capacity to 14 million transactions per day, up from 12 million, as part of a revamp, which it announced earlier this year, says Kyodo News. According to the report, the TSE has boosted trading system capacity in stages after a glitch paralyzed what is known as the world's second-largest bourse for half a day in November 2005, forcing it to suspend all stock trading. In January 2006, the market was forced to shorten trading hours for shares in Livedoor Co. as a rush of sell orders flooded the system after the firm was raided over alleged securities law violations, Kyodo News recounts. ========= K O R E A ========= AMKOR TECHNOLOGY: Moody's Assigns Loss-Given-Default Ratings ------------------------------------------------------------ In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. technology semiconductor and distributor sector, the rating agency affirmed its Caa1 corporate family rating on Amkor Technology, Inc. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$300MM Guaranteed Senior Secured 2nd Lien Term Loan due 2010 B3 B1 LGD1 7% US$500MM 9.25% Sr. Unsecured Notes due 2008 Caa3 Caa1 LGD3 44% US$400MM 9.25% Sr. Unsecured Notes due 2016 Caa3 Caa1 LGD3 44% US$425MM 7.75% Sr. Unsecured Notes due 2013 Caa3 Caa1 LGD3 44% US$250MM 7.125% Sr. Unsecured Notes due 2011 Caa3 Caa1 LGD3 44% US$200MM 10.50% Sr. Subordinated Notes due 2009 Ca Caa2 LGD5 75% US$190MM 2.50% Convertible Sr. Sub Notes due 2011 Ca Caa3 LGD5 84% US $258.8MM 5.00% Convertible Subor. Notes 2007 Ca Caa3 LGD6 94% Moody's explains that current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). About Amkor Technology Chandler, Arizona-based Amkor Technology, Inc. (NASDAQ: AMKR) -- http://www.amkor.com/-- provides advanced semiconductor assembly and test services. The company offers semiconductor companies and electronics original equipment manufacturers a complete set of microelectronic design and manufacturing services. It has sales and manufacturing offices in Japan, China, Taiwan, the Philippines and Korea. * * * As reported in the Troubled Company Reporter on Aug. 25, 2006, Standard & Poor's Ratings Services lowered its corporate and other ratings on Amkor and placed the ratings on CreditWatch with developing implications. The corporate credit rating was lowered to 'CCC' from 'B-'. The downgrade followed Amkor's announcement that it received notice from the trustees of $1.6 billion of its senior and subordinated notes that the delay in filing its Form 10-Q for the June quarter constitutes a default under the notes. DRESSER: Enters Into New US$935 Mil. Sr. Secured credit Facility ---------------------------------------------------------------- Dresser, Inc., has entered into a new US$935 million senior secured credit facility as of Oct. 31, 2006. The facility provides for a seven-year US$785 million term loan and a six-year US$150 million revolving credit facility, which is available to be drawn upon for general corporate purposes and to support letter of credit obligations. No borrowings are currently outstanding under the revolver. The proceeds of the new term loan were used to refinance the company's US$70 million of borrowings under its senior secured credit facility, US$125 million of borrowings under its senior unsecured term loan, and the US$550 million principal amount of its 9-3/8% senior subordinated notes, and to pay certain fees and expenses. Under the terms of the company's previously announced tender offer and consent solicitation, it has purchased approximately US$503 million principal amount of its senior subordinated notes, or approximately 91 percent of the outstanding issue. The company previously announced its receipt of the requisite consents from holders of the notes to amend the governing indenture. With the closing of the tender offer, the amendments are now operative. The company has issued an irrevocable notice to redeem the remaining senior subordinated notes on Nov. 30, 2006, at a price of 104.688% of par plus accrued and unpaid interest. About Dresser, Inc. Based in Addison, Texas, Dresser, Inc. -- http://www.dresser.com/-- designs, manufactures and markets equipment and services sold primarily to customers in the flow control, measurement systems, and compression and power systems segments of the energy industry. The Company has a comprehensive global presence, with over 8,500 employees and a sales presence in over 100 countries worldwide, including Korea and Japan. * * * The Troubled Company Reporter - Asia Pacific reported on October 23, 2006, that Standard & Poor's Ratings Services assigned its 'B' senior secured rating and its '3' recovery rating to Dresser Inc.'s US$935 million credit facilities. Moody's Investors Service assigned a B1, LGD 3 (37%) rating to those credit facilities. Moody's Investors Service downgraded Dresser, Inc.'s Corporate Family Rating to B1 from Ba3. The rating for the Company's Senior Secured Tranche C Term Loan maturing 2009 was downgraded to B1 from Ba3. Moody's also downgraded the rating for the Company's Senior Unsecured Term Loan maturing 2010 to B2 from B1. The Company's Senior Subordinated Notes maturing 2011 was downgraded to B3 from B2. Moody's said the rating outlook is negative. HYNIX SEMICONDUCTOR: Toshiba's Infringement Claim Rejected ---------------------------------------------------------- The United States International Trade Commission on November 7, 2006, rejected Toshiba Corp.'s claims that Hynix Semiconductor Inc. infringed the Japanese firm's patents for NAND flash memory chips. Toshiba filed the infringement complaint with the Commission in October 2005, The Chosun Ilbo relates. The Japanese company asked the ITC judge to ban Hynix-made NAND flash memory chips from import and sale in the United States. According to the Korean newspaper, the decision puts Hynix in an advantageous position in the final ruling, to be issued before February 2007, as well as in parallel lawsuits in Japan and the U.S. Toshiba-filed suit against Hynix with the Tokyo District Court and a U.S. district court in Texas in November 2004. Toshiba, however, believes the fight isn't over yet. Toshiba asserts that the decision is erroneous and will file a petition seeking a review by the full ITC, The Wall Street Journal says, citing a Toshiba spokesman's statement. About Hynix Semiconductor Headquartered in Ichon, South Korea, Hynix Semiconductor Inc. -- http://www.hynix.com/-- is a semiconductor manufacturer. Through a merger with LG Semiconductor in 1999, Hynix Semiconductor now has the world's largest dynamic random access memory chip production capacity as well as the industry's best technical development capacity by fully exploiting synergies resulting from the historical integration of both companies. Standard & Poor's Ratings Services gave Hynix, and its U.S. subsidiary, Hynix Semiconductor Manufacturing America Inc., a 'B+' long-term corporate credit rating. KOREA EXCHANGE BANK: Net Income Plunges 90% to KRW52 Billion ------------------------------------------------------------ Korea Exchange Bank reports KRW52 billion in net income for the quarter ended September 30, 2006, a 90% plunge from the KRW523 billion recorded in the corresponding quarter last year and down 92% from the previous quarter's KRW629 billion. KEB attributed the plunge to the amount that the National Tax Service forced to set aside because of the Bank's alleged tax reduction when it absorbed its ailing credit-card unit, KEB Credit Service Co., in 2004. The KRW52-billion net was arrived at after providing KRW247.2 billion for preliminary tax assessment by the NTS, KEB points out in a press release. NTS in October, after a seven-month audit, issued a preliminary tax assessment for FY2001 through FY2004 totaling KRW311 billion, requiring KEB to remit KRW 174 billion after reflecting the bank's remaining NOL and other factors, KEB relates. KEB strongly disagrees with the most significant elements of the preliminary assessment and has formally filed for review and appeal of items totaling KRW294billion. "Under Korean accounting regulations, upon receipt of a preliminary tax assessment, the taxpayer must reflect the full amount of the assessment in its financial statements, regardless of the merit of the items assessed or the probability of winning appeals," KEB explains. "As a result, the bank set aside KRW247 billion of provisions for the assessment, after reflecting the impact of deferred tax provisions and the bank's NOL. This reduced KEB's reported net income by KRW179 billion, and if the final notice of taxation is unchanged, net income in future periods will be reduced by an additional KRW68 billion as this provision is recognized as tax expense." Exclusive of the tax provision, KEB believes it delivered continued strong business results while maintaining industry- leading asset quality levels. "Total delinquency was just 0.97% and KEB's non-performing loan ratio stood at just 0.69% as of September-end, with healthy reserve coverage of more than 175% of NPLs," according to the release. "The bank's capital levels remain very strong with BIS capital adequacy ratio estimated at 13.7% and Tier 1 capital of approximately 10.7%." The Troubled Company Reporter - Asia Pacific reported on March 24, 2006, that United States-based Lone Star Funds agreed to sell its 64.62% stake in KEB to Kookmin Bank. The completion of the sale has been threatened with disagreements in purchase price between the parties and the investigation of Lone Star for alleged stock-price manipulation. * * * A full-text copy of the presentation of KEB's results for the quarter ended September 30, 2006, is available for free at http://bankrupt.com/misc/KEB3QResultsPresentation.pdf About Korea Exchange Bank Korea Exchange Bank -- http://www.keb.co.kr/english/index.htm-- was established in January 1967 by the Government originally as a specialist foreign exchange bank. It retains its strength in trade finance and foreign exchange. After being privatized in 1989, the Bank focused into commercial banking. In terms of assets, it ranks sixth among Korea's nationwide commercial banks with 7% of system assets. It operates a branch network of 317 domestic and 28 overseas offices. During the economic crisis, significant exposures to troubled corporate borrowers led to a deterioration in the bank's financial health. However, since then, its operating performance stabilized, and the bank has reported consecutive quarterly profits since the end of 2003. Fitch Ratings gave Korea Exchange Bank a 'C' Individual Rating effective on June 17, 2005. Moody's Investors Service gave KEB a 'D' Bank Financial Strength Rating effective on May 9, 2006. * * * South Korean politicians -- led by the main opposition Grand National Party -- have alleged that the Korea Exchange shares were sold cheap to United States-based Lone Star Funds after the Bank's financial status was incorrectly reported. Korea Exchange denied the allegations in March 2006. The Board of Audit and Inspections and the Supreme Public Prosecutors' Office initiated separate investigations into the matter. On June 20, 2006, the BAI determined that Lone Star's acquisition of Korea Exchange was led by management with the approval of the financial supervisory bureau. BAI found that KEB exaggerated its insolvency and falsely recorded the Bank for International Settlements' capital adequacy ratio at 6.16%, which is below the 8% threshold for healthy banks. Prosecutors are investigating whether there were any transgressions of law in the process of selling KEB and whether bribes were given to officials. If prosecutors will find solid evidence that the data was cooked up, it might lead to the nullification of the KEB sale to Lone Star and the arrest of regulators, policymakers and former KEB executives. * IMF Sees 4.3% Growth in Korea's Economy in 2007 ------------------------------------------------- Korea's economy is expected to grow 4.3% next year, slowing from this year's estimated 5% gain on a slowdown in private spending and the global economy, the Korean government's Web site cites the International Monetary Fund as saying. The Korean economy grew 4.6% annually in the third quarter of the year, slowing from the 5.3% year-on-year growth recorded in the second quarter from a slowing recovery in domestic consumption. Despite the Korean economy's modest slowdown, IMF believes the Korean economy remains fundamentally in good shape but faces significant risks. "Consumption growth is moderating, but this was not unexpected in light of an extended period of consumption growing faster than personal incomes and rising consumer debt," Korean.net cites IMF - Asia Pacific Assistant Director Jerald Schiff, as saying. "Korea has continued its impressive export performance, and this is expected to continue, with only a modest slowdown in response to lower growth in key industrial economies." =============== M A L A Y S I A =============== ANTAH HOLDINGS: Total Default for October Tops MYR236 Million ------------------------------------------------------------- Antah Holdings Bhd filed with the Bursa Malaysia Securities Bhd its status of default to credit facilities as of Oct. 31, 2006. As of Oct. 31, Antah Holdings' default plus interest owed to financial institutions totals MYR236,401,000 that consists of: Lender Loan Facility ------ ------------- * RHB Sakura Merchant Bankers Berhad MYR5,800,000 * RHB Bank Berhad MYR2,164,000 MYR3,124,000 * OCBC Bank Berhad MYR5,846,000 MYR1,000,000 * Mizuho Corporate Bank Ltd MYR27,968,000 * Standard Chartered Bank MYR4,660,000 Malaysia Berhad * EON Bank Berhad MYR3,500,000 * Bank of Tokyo-Mitsubishi (M) Berhad MYR1,500,000 * Aseambankers Malaysia Berhad MYR800,000 * AmBank Berhad MYR800,000 * Arab Malaysian Bank Berhad MYR3,000,000 * Bank Pertanian Malaysia MYR6,500,000 * Malayan Banking Berhad MYR10,912,000 * DBS Bank Ltd MYR140,000,000 * Deutsche Bank (M) Berhad MYR4,000,000 * Affin Bank Berhad MYR5,000,000 * Malayan Banking Berhad MYR8,000,000 MYR1,827,000 ------------ Total Default In Payment MYR236,401,000 The TCR-AP reported on Oct. 16 that as of Sept. 30, 2006, the company's total default plus interest owed to credit facilities amounted to MYR255,305,000. About Antah Holdings Headquartered in Petaling Jaya, Selangor Darul Ehsan, Malaysia, Antah Holdings Berhad -- http://www.antah.com.my/-- manufactures and trades pharmaceutical products and fluid engineering and manufacturing. The Company's other activities include retailing of houseware and kitchenware, property development, insurance broking, provision of management services, and investment holding. The Group discontinued its beverage and security services operations. The Group operates in Malaysia, Australia, United Kingdom, and Singapore. The Company's balance sheet as of June 30, 2006, showed total assets of MYR678.492 million and total liabilities of MYR1.039 billion, resulting into a shareholders' equity deficit of MYR361.167 million. JIN LIN: Suspends Trading to Facilitate Scheme of Arrangement ------------------------------------------------------------- Jin Lin Wood Industries Bhd disclosed on Nov. 2, 2006, that it will suspend its shares trading from 9:00 a.m., on Nov. 8, 2006, to facilitate the Scheme of Arrangement with shareholders. As reported by the Troubled Company Reporter - Asia Pacific, on Oct. 23, 2006, 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 RM0.20 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) Gefung Holdings' allotment and issuance of 8,800,000 new ordinary shares of MYR1.00 each at par to the shareholders of Jin Lin, credited as fully paid-up on the basis of one new Gefung Share for every one Jin Lin Share held after the consolidation, which is in consideration for the cancellation; and (v) forthwith and contingent upon 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. The Registrar can be reached at: Symphony Share Registrars Sdn Bhd Level 26, Menara Multi-Purpose Capital Square, No. 8 Jalan Munshi Abdullah 50100 Kuala Lumpur Telephone: 03-27212222 Facsimile: 03-27212530 About Jin Lin Headquartered in Kuala, Lumpur Malaysia, Jin Lin Wood Industries Berhad is engaged in the manufacture and trade of timber and related timber products. The Company is also involved in warehousing, chemical treatment, and investment holding. As of June 30, 2006, the company's balance sheet showed total assets of MYR66,849,000 and total liabilities of MYR100,292,000, resulting into a stockholders' equity deficit of MYR33,443,000. Moreover, the company was classified as an affected listed issuer under Practice Note 4 of the Listing Requirements of Bursa Malaysia Securities Berhad. In view with this, the company is required to make monthly announcement regarding its regularization plan. MYCOM BERHAD: To Hold 39th Annual General Meeting on Dec. 6 ----------------------------------------------------------- Mycom Bhd will hold its 39th annual general meeting on Dec. 6, 2006, at 11:30 a.m., at the Crystal Ballroom, Level 1, Corus Hotel Kuala Lumpur in Jalan Ampang, 50450 Kuala Lumpur. At the meeting, these resolutions will be passed: -- to receive and adopt the Audited Financial Statements for the financial year ended June 30, 2006, together with the reports of the directors and auditors thereon; -- to approve the payment of directors' fees for the financial year ended June 30, 2006; -- to consider the re-election of Director Dato' Yap Yong Seong, who will retire in accordance with Article 85 of the company's Articles of Association; -- to consider the re-appointment of Directors Tan Sri Dato' Jaffar bin Abdul, Dato' Murad Mohamed Hashim, Tan Sri Dato Sri Abang Ahmad Urai bin Datu Hakim Abg. Hj. Mohideen, and Tan Sri Dato' Haji Lamin bin Haji Mohd Yunus who have attained the age of seventy pursuant to Section 129(6) of the Companies Act, 1965; -- to re-appoint Ernst & Young as the company's auditors and authorize the directors to fix their remuneration; -- that pursuant to Section 132D of the Companies Act, 1965, and subject to the approval of the relevant authorities, the directors are will be empowered to issue shares in the company, at any time and upon the terms and conditions the purpose as the directors may, in their absolute discretion, deem fit, provided that the aggregate number of shares issued pursuant to Resolution does not exceed 10% of the issued capital of the company for the time being and also to empower the directors to obtain the approval for the listing of and quotation for the additional shares issued to Bursa Malaysia Securities Berhad. The authority will continue in force until the conclusion of the company's next annual general meeting; -- that pursuant to Chapter 10.09 of the Listing Requirements of Bursa Securities, approval will be given for the company and its subsidiaries to enter into and give effect to categories of recurrent related party transactions provided that the provision of the financial assistance is fair and reasonable to the company and not detrimental to the company and its shareholders; -- that provided the revenue or trading transactions of, which are necessary for the Group's day-to-day operations in the ordinary course of business made on an arm's length basis and on normal commercial terms are not more favorable to the related parties than those generally available to the public and not detrimental to the minority shareholders of the company; and will continue in force until: (i) the conclusion of the company's next annual general meeting following the annual meeting, in which the Mandate was passed and will lapse, unless by a resolution passed at a general meeting, the authority is renewed; or (ii) the expiration of the period within which the next annual meeting after the date required to be held pursuant to Section 143(1) of the Companies Act, 1965 (but shall not extend to such extension as may be allowed pursuant to Section 143(2) of the Companies Act, 1965); and (iii) revoked or varied by resolution passed by the shareholders in general meeting, whichever is earlier. -- to authorize the company's directors and its subsidiaries to complete and do all the acts and things including executing all the documents as they may consider necessary or expedient to give effect to the Mandate. 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: 25th AGM Slated for December 6 -------------------------------------------------- Olympia Industries Bhd will hold its 25th annual general meeting on Dec. 6, 2006, at 10:00 a.m., at the Crystal Ballroom, Level 1 in Corus Hotel Kuala Lumpur Jalan Ampang, 50450 Kuala Lumpur, Malaysia. At the meeting, the company's shareholders will be asked to: -- receive and adopt the Audited Financial Statements for the financial year ended June 30, 2006, together with the reports of the directors and auditors; -- approve the payment of directors' fees for the financial year ended June 30, 2006; -- re-elect Directors Yap Wee Keat and Ong Hang @ Wong Phang who retired in accordance with Article 80 of the Company's Articles of Association; -- consider the re-appointment of the Directors Tun Dato' Seri Abdul Hamid bin Haji Omar, Tan Sri Dato' Jaffar bin Abdul and Tan Sri Dato' Wan Sidek bin Wan Abd Rahman who have already attained the age of seventy pursuant to Section 129(6) of the Companies Act, 1965; -- re-appoint Ernst & Young as the company's Auditors and authorize the directors to fix their remuneration. -- authorize to issue shares pursuant to Section 132D of the Companies Act, 1965; -- renew the existing Shareholders' Mandate for Recurrent Related Party Transactions of a revenue or trading nature; -- authorize the company's directors to complete and do all the acts and things (including executing all the documents as may be required) as they may consider expedient or necessary to give effect to the Mandate; and -- continue in force the Mandate until the next annual general meeting unless revoked or varied by the Company in a general meeting or the expiration of the period within which the next annual general meeting is required to be held pursuant to Section 143(1) of the Companies Act, 1965 (but shall not extend to such extension as may be allowed pursuant to Section 143(2) of the Act) whichever is earlier. 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 Complete Restructuring by January 2007 ------------------------------------------------------------- Olympia Industries Bhd disclosed on Oct. 31, 2006, that pursuant to its Restructuring Scheme, it is working towards the completion of these major outstanding events within their proposed timelines: Status of Outstanding Events Proposed Timeline Implementation ------------------ ----------------- -------------- * Execution of trust Middle of The trust deeds and deeds/deed polls and Nov. 2006 deed polls been other creditors' executed on Oct. 2006 agreements * Books Closing Date Middle of To be implemented for the Capital Reduction, Nov. 2006 Capital Consolidation and Rights Issue with Warrants * Books Closing Date for End of To be implemented the Capital Reduction, Nov. 2006 Capital Consolidation and Rights Issue with Warrants * Dispatch of Abridged Dec. 2006 To be implemented Prospectus, Rights Subscription Forms and Notice of Provisional Allotment * Listing of the new Jan. 2007 To be implemented OIB shares, warrants, Irredeemable Convertible Unsecured Loan Stocks, Redeemable Unsecured Loan Stocks and Irredeemable Convertible Bonds on the Bursa Malaysia Securities Berhad In order to facilitate the prescribed timeline requirement for the implementation of the Rights Issue with Warrants as set out in the Bursa Securities' Listing Requirements, Olympia Industries believes that the Restructuring Scheme will only be completed on Jan. 2007. However, the SC, through its letter dated Sept. 15, 2006, stipulated that the Restructuring Scheme must be completed by Dec. 31, 2006. In this regard, the company intends to file an application for the SC to extend the time immediately after the first two outstanding events are completed. 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: Unit Receives Wind-Up Petition -------------------------------------------------- On Oct. 31, 2006, Mascon Sdn Bhd, a 71% owned subsidiary of Olympia Industries Bhd, had been served with a wind-up petition by Poh Loy Earthworks Sdn Bhd. The Petitioner claims MYR7,178,794.98, which mainly made up the outstanding amount of MYR4,785,105.59 and interest charge of 8% per annum, against Mascon. However, Mascon claims that: -- the outstanding amount had been discharged and settled in full; and -- in consideration of the Petitioner's request for Mascon to assign to the Petitioner, the right to recover the outstanding amount directly from the project owner. Poh Loy was a contractor for earthworks at a project site located in Cheras, Daerah Ulu Langat in Selangor. The wind-up proceedings will have no material financial and operational impact on the Group. Olympia Industries' total cost of investment in Mascon totaled to MYR30,655,896. However, full provision has been made for dimunition in the value of total cost of investment. Mascon is in the process of instructing its solicitors to file affidavit in opposition to the wind-up petition. Further to the announcement made on Nov. 1, 2006, on subject- captioned, the company wishes to inform that its interest rate charged on the outstanding amount was at 8% per annum. 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. ===================== N E W Z E A L A N D ===================== AIR NEW ZEALAND: ANZES Receives US$3 Mln Maintenance Contract ------------------------------------------------------------- United Kingdom airline Thomsonfly has awarded a US$3 million contract to Air New Zealand Limited's engineering services division, ANZES, for the installation of a new in-flight entertainment system and heavy maintenance checks on nine B767- 300 aircraft. "We are delighted with the outcome of what has been a demanding selection process," says Thomsonfly Managing Director Colin Mitchell. "We needed to be comfortable that our maintenance provider had the technical and organisational skills to complete the program to the high standards we expect in the timeframe required. We found that provider in ANZES." The work will be carried out in ANZES' Auckland facility from November 2006 to May 2007 in preparation for Thomsonfly's summer schedule. The program covers seven heavy maintenance checks and installation of the latest Panasonic eFX Audio Visual on Demand (AVOD) in-flight entertainment system on five aircraft. Air New Zealand's general manager of technical operations, Chris Nassenstein, says "ANZES has a strong reputation of engineering excellence within our region but we take pride in the fact that Thomsonfly awarded us this contract against global competition." "We look forward to developing our relationship with Thomsonfly well into the future," Mr. Nassenstein says. About Thomsonfly Thomsonfly is part of TUI AG, the largest tourism and travel services group in the world. Thomson is the U.K.'s largest tour operator and Thomson Travel Shops are the U.K.'s biggest travel agency. Thomsonfly has a fleet of 47 aircraft and carries over eight million passengers each year from 20 U.K. airports to more than 80 destinations in 37 countries. Thomsonfly has been awarded the Investors in People award three times in recognition of its commitment to training and development. About Air New Zealand Based in Auckland, New Zealand, Air New Zealand is the country's flag air carrier, with domestic and international passenger and freight operations, and an aviation engineering business. As reported in the Troubled Company Reporter - Asia Pacific on September 2, 2005, Moody's Investors Service affirmed its Ba1 issuer rating on Air New Zealand Limited after the airline announced its annual results for FY2005. Air NZ's rating reflected its dominant position in the New Zealand domestic market, with around 80% market share, and the profitability of domestic operations following their restructuring to a low-cost network model. Also supporting Air NZ's rating was its solid liquidity position, with cash balances of NZ$1.071 billion held as at June 30, 2005. However, while Air NZ has a solid position in New Zealand and other parts of the international network are performing well, intense competition on trans-Tasman routes has resulted in it being unprofitable for Air NZ. International competition also limits Air NZ's ability to expand. Its management is also aware of the airline's vulnerability to external shocks and the actions of key competitors. B & R MARKETING: Appoints Joint and Several Liquidators ------------------------------------------------------- On October 19, 2006, Iain Andrew Nellies and Paul William Gerrard Jenkins were appointed as joint and several liquidators of B & R Marketing Ltd. The Joint Liquidators can be reached at: Iain Andrew Nellies Paul William Gerrard Jenkins Insolvency Management Limited Level Three, Burns House 10 George Street (P.O Box 1058), Dunedin New Zealand EUPHORIA (EASTGATE): Faces Liquidation Proceedings -------------------------------------------------- A liquidation petition filed against Euphoria (Eastgate) Ltd will be heard before the High Court of Christchurch on November 13, 2006, at 10:00 a.m. Globe International (N.Z.) Ltd filed the petition with the Court on September 28, 2006. The Solicitor for the Petitioner can be reached at: Stephen James Tee Morton Tee & Co First Floor, 96 Hurstmere Road Takapuna, Auckland New Zealand EUPHORIA LTD: Liquidation Petition Hearing Set on November 13 ------------------------------------------------------------- On September 28, 2006, Globe International (N.Z.) Ltd filed with the High Court of Christchurch, a petition to liquidate Euphoria Ltd. The Court will hear the liquidation petition on November 13, 2006. The Solicitor for the Petitioner can be reached at: Stephen James Tee Morton Tee & Co First Floor, 96 Hurstmere Road Takapuna, Auckland New Zealand FELTEX CARPETS: AIRC Hears Godfrey Hirst & Textile Union Dispute ---------------------------------------------------------------- On November 10, 2006, a dispute between Godfrey Hirst and Textile Clothing & Footwear Union of Australia over Feltex Carpets Limited was heard before the Australian Industrial Relations Commission, News.com.au reports. According to the report, the Union has accused Godfrey Hirst of seeking an exemption from paying redundancies to workers who did not sign Australian Workplace Agreements. "We're talking about workers who have given over 30 years of service to the company who now face losing their job and their redundancy," News.com.au cites the Union's state secretary Michele O'Neil, as saying. Yet, Godfrey Hirst spokesman David Wilson said the move would provide continued employment to its 500 workers, News.com.au relates. The Troubled Company Reporter - Asia Pacific reported on October 31, 2006, citing the Union, as saying Godfrey Hirst told the employees to sign individual contracts otherwise they will lose their jobs and will not receive any redundancy entitlements. According to Mr. Wilson, Godfrey Hirst has not offered anyone AWAs. He asserted that "we have tried to get a collective agreement and the union won't be party to that." Mr. Wilson stated that the existing workplace agreement was "about 600 pages long, it's convoluted and we wish to replace it with a union collective agreement which is much shorter and provides better working conditions," News.com.au relates. About Feltex Headquartered in Auckland, New Zealand, and established over 50 years ago, Feltex Carpets Limited -- http://www.feltex.com/-- has built a reputation for being one of the world's leading manufacturers of superior-quality carpet. The Feltex operation includes a wool scouring plant, six spinning mills, three tufted carpet mills, a woven carpet mill and offices in New Zealand, Australia and the United States. The Company also leads the way in exports, with customers throughout South East Asia, Japan, the United States, the Middle East and other key world markets. Feltex listed on the local stock exchange in mid-2004 in a NZ$254-million initial public offering -- the year's largest in New Zealand. However, the Company fell short of its prospectus earnings projections, reporting a net profit of NZ$11.8 million in the fiscal year to June 30, 2005, about half the forecast NZ$23.9 million. The Company has struggled with losses and earnings downgrades, flogging sales, and a dipping share price. The Company closed plants and in October 2005, axed 235 jobs, mostly in Australia, and by 2006, abandoned merger talks with Australian competitor Godfrey Hirst after it suggested that the apparent "white knight" investor was more interested in a reverse takeover. Godfrey Hirst later sold out its nearly 9% stake in the Company. In February 2006, Feltex reported a first-half after tax loss of NZ$11.83 million, down almost 200% compared with the net loss in the previous year. ANZ Bank placed the Company in receivership on September 22, 2006, and named Colin Nicol, Peter Anderson and Kerryn Downey, of McGrathNicol+Partners, as receivers and managers. The TCR-AP reported on October 4, 2006, that Godfrey Hirst acquired Feltex as a going concern, including its assets and undertakings in New Zealand, Australia, and the United States. Proceeds of the sale will be used to ease the company's NZ$128- million debt to ANZ Bank. FELTEX CARPETS: Appointment Application Hearing Set on Nov. 29 -------------------------------------------------------------- On November 7, 2006, the Troubled Company Reporter - Asia Pacific reported that a Feltex Carpets Limited shareholder filed an application with the High Court in Auckland to have shareholder activist Tony Gavigan appointed to the Feltex board of directors. In an update, Feltex advises the New Zealand Stock Exchange that pursuant to an order of the Court dated November 6, 2006, in the matter of Civ 2006-404-6525, Feltex and N & I Investments Limited have advertised the notice of application in the business section of the New Zealand Herald. The application is to be heard before the Court on November 29, 2006, at 10 a.m. Any person who wishes to appear on the hearing of the application must file and serve either: (a) a notice of opposition and affidavit in support; or (b) a notice reserving rights not later than the second working day before that day. Feltex reveals that that the applicant is: N & I Investments Cruickshank Pryde, Solicitors 42 Don Street, Invercargill Phone 03-2144069 Fax 03-214-4760 P.O. Box 857 Invercargill, DX YA90002 Further particulars may be obtained from the office of the Court or from Cruickshank Pryde. Rex Thomas Chapman is the Solicitor for N & I Investments. About Feltex Headquartered in Auckland, New Zealand, and established over 50 years ago, Feltex Carpets Limited -- http://www.feltex.com/-- has built a reputation for being one of the world's leading manufacturers of superior-quality carpet. The Feltex operation includes a wool scouring plant, six spinning mills, three tufted carpet mills, a woven carpet mill and offices in New Zealand, Australia and the United States. The Company also leads the way in exports, with customers throughout South East Asia, Japan, the United States, the Middle East and other key world markets. Feltex listed on the local stock exchange in mid-2004 in a NZ$254-million initial public offering -- the year's largest in New Zealand. However, the Company fell short of its prospectus earnings projections, reporting a net profit of NZ$11.8 million in the fiscal year to June 30, 2005, about half the forecast NZ$23.9 million. The Company has struggled with losses and earnings downgrades, flogging sales, and a dipping share price. The Company closed plants and in October 2005, axed 235 jobs, mostly in Australia, and by 2006, abandoned merger talks with Australian competitor Godfrey Hirst after it suggested that the apparent "white knight" investor was more interested in a reverse takeover. Godfrey Hirst later sold out its nearly 9% stake in the Company. In February 2006, Feltex reported a first-half after tax loss of NZ$11.83 million, down almost 200% compared with the net loss in the previous year. ANZ Bank placed the Company in receivership on September 22, 2006, and named Colin Nicol, Peter Anderson and Kerryn Downey, of McGrathNicol+Partners, as receivers and managers. The TCR-AP reported on October 4, 2006, that Godfrey Hirst acquired Feltex as a going concern, including its assets and undertakings in New Zealand, Australia, and the United States. Proceeds of the sale will be used to ease the company's NZ$128- million debt to ANZ Bank. HEAVY MECHANICAL: Court Sets Liquidation Hearing on Nov. 13 ----------------------------------------------------------- A petition to liquidate Heavy Mechanical Repairs Ltd will be heard before the High Court of Christchurch on November 13, 2006, at 10:00 a.m. Lynman Ltd filed the petition on October 10, 2006. The Solicitor for the Petitioner can be reached at: Malcolm David Whitlock Whitlock & Co. Level Two, Baycorp Advantage House 15 Hopetoun Street, Auckland New Zealand MERCURY BAY: Creditors' Proofs of Claim Due on November 28 ---------------------------------------------------------- On October 28, 2006, shareholders of Mercury Bay Motors appointed Robert Laurie Merlo as liquidator. Mr. Merlo requires the company's creditors to submit their proofs of claim by November 28, 2006, for them to share in any distribution the Company will make. The Liquidator can be reached at: Robert Laurie Merlo Merlo Burgess & Co. Limited P.O. Box 51-486 Pakuranga, Auckland New Zealand Telephone:(09) 520 7101 Facsimile:(09) 529 1360 Email: merloburgess&co@xtra.co.nz PACIFIC ALBACORE: Liquidation Hearing Set on Nov. 13 ---------------------------------------------------- The High Court of Rotorua will hear a liquidation petition filed against Pacific Albacore Ltd on November 13, 2006, at 10:45 a.m. S J Ashby Boatbuilder Ltd filed the petition on September 26, 2006. S J Ashby's solicitor can be reached at: Malcolm David Whitlock Whitlock & Co. Level Two, Baycorp Advantage House 15 Hopetoun Street, Auckland New Zealand S & Y CATERING: Court to Hear Liquidation Petition on Nov. 16 ------------------------------------------------------------- On August 3, 2006, Terry Lillis -- for Lillis Trading Trust -- filed a petition to liquidate S & Y Catering Ltd. Accordingly, on November 16, 2006, the High Court of Auckland was set to hear the petition. The Solicitor for Lillis Trading can be reached at: Malcolm David Whitlock Whitlock & Co. Level Two, Baycorp Advantage House 15 Hopetoun Street, Auckland New Zealand SCRAPPYDOO METAL: Appoints Official Assignee as Liquidator ---------------------------------------------------------- On October 20, 2006, the Official Assignee for Scrappydoo Metal Recyclers Ltd was appointed as the company's liquidator. According to the Troubled Company Reporter - Asia Pacific, Blackwoods Paykels filed a liquidation petition against the company on September 18, 2006. The petition was heard on Oct. 20. The Liquidator can be reached at: Official Assignee Insolvency and Trustee Service Private Bag 4714, Christchurch New Zealand Telephone: 0508 467 658 Web site: http://www.insolvency.govt.nz SURECALL LTD: Decides to Liquidate Business ------------------------------------------- On October 19, 2006, shareholders of Surecall Ltd resolved to liquidate the company's business and appoint Iain Andrew Nellies and Paul William Gerrard Jenkins as joint and several liquidators. The Joint Liquidators can be reached at: Iain Andrew Nellies Paul William Gerrard Jenkins Insolvency Management Limited Level Three, Burns House 10 George Street (P.O Box 1058) Dunedin New Zealand * S&P Launches New Ratings Scale for NZ Finance Entities -------------------------------------------------------- On November 9, 2006, Standard & Poor's disclosed that it will launch a new ratings scale to measure the relative financial strength of New Zealand non-bank finance entities, New Zealand Herald reports, noting that the new ratings would provide an opinion on the default risks of those entities. S&P explained that the new scale was based on strong industry support for the proposed ratings scale and methodology, as well as a significant number of finance entities that were committed to undertaking and releasing a rating, the New Zealand Press Association relates. According to the agency, the ratings scale and symbology were unique, and tailored specifically for New Zealand finance companies, building societies, credit unions, and mortgage trusts. S&P would soon start its analysis and site visits with the initial entities to be rated, with a view to announcing the first ratings in early 2007, NZPA says. ===================== P H I L I P P I N E S ===================== CHIQUITA BRANDS: Positive About New Banana Packaging ---------------------------------------------------- Chiquita Brands International, Inc., believes it has developed a new way of packaging bananas that would let the fruits stay yellow and fresh until the consumer is ready to eat them, the South Florida Sun-Sentinel reports. Through the new packaging, bananas will stay fresh up to four days longer than a traditional bunch, the Sun-Sentinel says, citing Chiquita Brands. The company claimed that it has developed the perfectly ripened banana through the new packaging. The Sun-Sentinel underscores that Chiquita Brands' packaged bananas are all natural with no preservatives added. The firm's patented packaging slows the ripening by controlling the amount of air that the bananas are exposed to over time. Mike Mitchell, a spokesperson of Chiquita Brands, told the Sun- Sentinel, "We're offering consumers perfectly ripe bananas for the week between their shopping pattern." According to the Sun-Sentinel, Chiquita Brands is packaging bananas in sealed three-serve packs at its Port Everglades ripening plant and testing them in 10 Publix grocery stores in Broward and Miami-Dade counties. The report says that Chiquita Brands' packaging test with Publix is an extension of its new single-serve, packaged bananas. They are sold to convenience stores across North America. Marketed as "Chiquita To Go", Chiquita Brands tested the product at 200 convenience stores and is on target to distribute them to about 7,500 outlets by the end of 2006. Chiquita Brands' company and port officials told the Sun- Sentinel that Port Everglades handles over 20% of Chiquita Brands' American bananas and plantains imports. Mr. Mitchell told the Sun Sentinel that the packaged bananas hit six Broward County stores on Oct. 31, the Sun-Sentinel notes. Over the next several months, Chiquita Brands will be analyzing response from clients to decide whether to bring the new packaging on a large scale in 2007. Other than the 10 Publix stores in South Florida, Chiquita Brands will test the product in dozens of grocery stores in other states. According to the report, Chiquita Brands is selling up to 15 single bananas daily per store. "We're very pleased with how they are selling," Mr. Mitchell told the Sun-Sentinel. The Sun-Sentinel emphasizes that Chiquita Brands and Publix are hoping buyers will go for bananas with Fresh & Ready packs. However, Earle Fischer, a resident of Fort Lauderdale, told the Sun-Sentinel, "It's fancy packaging. I still prefer the old- fashioned ones." The bananas, which are best for two to three days after the package is opened, are expensive, the Sun-Sentinel says. The bananas cost US$1.59 per 17.2-ounce package or US$2.98 for two packages. Regular bananas cost 49 cents a pound, or US$1 more for the Chiquita Fresh & Ready bananas. Cincinnati, Ohio- based Chiquita Brands International, Inc. (NYSE: CQB) -- http://www.chiquita.com/-- operates as an international marketer and distributor of bananas and other fresh produce sold under the Chiquita and other brand names in over 60 countries including the Philippines and Australia. It also distributes and markets fresh-cut fruit and other branded, value-added fruit products. The Troubled Company Reporter - Asia Pacific reports that Moody's Investors Service affirmed all ratings for Chiquita Brands L.L.C. (senior secured at Ba3), as well as for its parent Chiquita Brands International, Inc. (corporate family rating at B2), but changed the outlook to negative from stable. Additionally, on June 15, 2006, Standard & Poor's Ratings Services affirmed its ratings on Cincinnati, Ohio-based Chiquita Brands International Inc., including the 'B+' corporate credit rating. S&P said the rating outlook is negative. PHILIPPINE LONG DISTANCE: Ready to "Write-Off" Aces Business ------------------------------------------------------------ Philippine Long Distance Telephone Co., is prepared to "write off" its mobile satellite business, Aces International Ltd., the Philippine Daily Inquirer cites PLDT Chairman Manuel Pangilinan as saying. Mr. Pangilinan revealed that PLDT is currently closing the transactions with Aces International, considering the company's announced deal with global satellite operator Inmarsat, the Inquirer relates. The result of the deal will be announced during the fourth quarter of 2006. Mr. Pangilinan says that PLDT has invested around PHP3 billion in Aces International, and is expecting to write off around PHP2 billion, the Inquirer relates. Mr. Pangilinan noted that PLDT will still retain a certain portion of ownership of the company, which "will give Aces a wider scope." PLDT has about a 20% stake in Aces International, the Inquirer says, citing PLDT executives. About Aces Aces International Limited is a regional satellite communications company that launched service in Asia early 2001, has continued to expand its services throughout Asia at affordable prices. Aces offers digital voice and data over its Fixed or Mobile terminals and asset tracking and SCADA services using specialized M-CAT terminals. With the launch of the first generation of G-WAVE, ACeS now also offers higher speed data services. Aces was pioneered by PT Pasifik Satelit Nusantara of Indonesia, the Philippine Long Distance Telephone Company, and Jasmine International Overseas Ltd of Thailand and Lockheed Martin Global Telecommunications of the USA. About PLDT Based in Makati City, Philippines, Philippine Long Distance Telephone Co. -- http://www.pldt.com.ph/-- is the leading national telecommunications service provider in the Philippines. Through three principal business groups -- wireless, fixed line, and information and communications technology -- the company offers a wide range of telecommunications services to over 22 million subscribers in the Philippines across the nation's most extensive fiber optic backbone and fixed line, cellular and satellite networks. * * * Moody's Investors Service placed a Ba1 local currency corporate family rating on PLDT. Moody's also affirmed the company's Ba2 foreign currency senior unsecured ratings, with a negative outlook. Standard & Poor's placed the company's long-term foreign issuer credit rating at BB+. Standard & Poor's also affirmed its 'BB+' foreign currency rating on the company with a stable outlook. PHIL. NATIONAL BANK: To Pick Adviser for PHP22-Bln Asset Sale ------------------------------------------------------------- Philippine National Bank will choose a financial adviser for its PHP22-billion bad assets sale, Manila Standard Today reports. PNB president Omar Byron Mier told reporters that the sale will occur in two phases, the first of which is planned before the end of 2006, the paper relates, noting that it would cover some PHP7 billion to PHP10 billion worth of bad loans and foreclosed assets. The second phase is planned for the second quarter of 2007, the paper says. Mr. Mier revealed that PNB's bad loans amounted to PHP15 billion and foreclosed assets at PHP5 billion to PHP7 billion. According to Mr. Mier, the Victoria's Milling account is unlikely to be included in the sale, since [the bank] has a good chance of recovering its loan exposure. Manila Standard notes that Victoria's Milling, which has been turned around, was one of the bigger bad loan accounts in the industry. The paper says the sale will allow PNB to meet the requirements of its covenant with the Bangko Sentral ng Pilipinas. The sale of its bad assets will improve PNB's balance sheet and improve its profitability through a higher regular revenue stream, Manila Standard cites Mr. Mier, as saying. 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. On October 31 2006, Fitch Ratings affirmed PNB's Individual rating at 'E' and Support rating '3' after a review of the bank. On November 6, 2006, the Troubled Company Reporter - Asia Pacific reported that Moody's Investors Service revised the outlook of PNB'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. RIZAL COMMERCIAL BANKING: BTM-UFJ Plans to Sell 17.14% Stake ------------------------------------------------------------ The Bank of Tokyo-Mitsubishi UFJ Ltd. will sell its 17.14% stake in Rizal Commercial Banking Corp. to Spinnaker Capital Group, Manila Standard Today reports, citing RCBC's disclosure to the Philippine Stock Exchange. RCBC disclosed that the sale, which would be crossed at the exchange on December 15, 2006, covered 108.49 million shares held by the BTM-UFJ, Manila Standard relates. RCBC, however, did not disclose the cost of the acquisition, Manila Standard notes. The paper reveals that Spinnaker's assets amounted to US$3.7 billion. Manila Standard further notes that it is unclear if Spinnaker will also buy some of the Yuchengco family's shares. The paper recounts that the family has expressed interest to lower its 60% stake in RCBC to 51%. The paper further recounts that RCBC officials said that the Yuchengco family was willing to pool its shares with the Japanese investors to offer the potential buyer a bigger stake in the bank. Under Philippine laws, a 33% stake in corporation allows the shareholder a veto power, Manila Standard notes. Manila Standard also relates that in 2005, UFJ Ltd., merged with the Bank of Tokyo Mitsubishi prompting a reassessment of the merged bank's strategy. Thus, UFJ representatives resigned from the RCBC board in line with the rationalization of the merged bank's operations. Bank of Tokyo Mitsubishi has focused its efforts on its branch in the Philippines, the paper says. About Spinnaker Spinnaker Capital Group's principal business is Emerging Markets investment management. Its funds invest in all classes of sovereign and corporate securities and related products, across all regions of the Emerging Markets. The group manages three investment funds: * Spinnaker Global Emerging Markets (GEM) Fund; * Spinnaker Global Opportunity (GO) Fund; and * Spinnaker Global Strategic (GS) Fund About RCBC Rizal Commercial Banking Corporation -- http://www.rcbc.com/-- is a universal bank principally engaged in all aspects of banking. It provides services such as deposit products, loans and trade finance, domestic and foreign fund transfers, treasury, foreign exchange and trust services. In addition, the Bank is licensed to enter into forward currency contracts to service its customers and as a means of reducing and managing the Bank's foreign exchange exposure. * * * On September 21, 2006, the Troubled Company Reporter - Asia Pacific reported that Fitch Ratings affirmed RCBC's ratings at Long-term Issuer Default rating 'BB-', Individual "D/E" and Support "3" after a review of the bank. The Outlook of the Long-term rating is Stable. On November 6, 2006, the TCR-AP also reported that Moody's Investors Service revised the outlook for RCBC'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, the TCR-AP said. UNIVERSAL ROBINA: Moody's Upgrades Local Currency Rating to Ba2 --------------------------------------------------------------- On November 9, 2006, Moody's Investors Service upgraded its local currency corporate family rating for Universal Robina Corporation to Ba2 from Ba3. At the same time, Moody's affirmed the Ba3 foreign currency rating for the senior unsecured bonds issued by URC Philippines Ltd and guaranteed by URC. The Ba3 bond rating is in line with the foreign currency country ceiling for the Philippines. The ratings outlook is stable. "This rating action reflects Moody's view that URC's performance has been solid and that it has a resilient business model," says Ken Chan, Moody's Assistant Vice President. "URC continues to maintain healthy credit metrics with TD/EBITDA of around 3x and EBITDA/Int coverage ratio of above 3x. These are comparable against its other packaged food industry peers at the mid Ba rating level." The rating also takes into account URC's current strong balance sheet liquidity with a high level of liquid reserve (Peso 22 billion as at 30/6/06) in the form of US dollar marketable securities. Of these, 40% are predominantly investment-grade fixed income securities. In accordance with Moody's global rating methodology for the Global Packaged Goods Industry (Rating Methodology: Global Packaged Goods Industry, January 2005), URC's franchise strength -- strong market position in the Philippines' branded consumer food industry supported by a diversified product portfolio, growth potential, and distribution network -- is consistent with a low investment grade rating. However, these strengths are tempered by URC's relatively modest size by global standards, its aggressive financial policy which often uses up its financial cushion and its low efficiency in terms of return on assets ratios. Therefore, according to the model the rating outcome is a high Ba level. The final Ba2 rating further takes into consideration uncertainty over whether a liquid reserve would be available on a permanent basis, in the light of URC's potential new acquisitions and aggressive dividend policy. Moreover, there are potential corporate governance concerns (as the Gokongwei family essentially controls the company's board) and also over the weaker financial profile of the parent company, JG Summit. The stable outlook reflects Moody's expectation that URC will continue to maintain its strong market position and stable operating performance over the near to medium term. Upward rating pressure would arise if URC: (1) demonstrates its ability to improve its operating margins through strong pricing capability; (2) manages its international branded food business expansion such that it generates positive operating profits; and (3) generates positive free cash flow on a sustainable basis. Credit metrics that Moody's would consider for an upgrade include RCF/TD of over 20% and EBITDA/Int of over 5.0-5.5x. On the other hand, evidence of financial support to its parent company through aggressive dividend payouts, substantial weakening in balance sheet liquidity or a material deterioration in URC's existing core business, such that RCF/TD falls below 10% and EBITDA/Int of less than 2.5-3.0x, would be negative for the company's ratings. Universal Robina Corporation, headquartered in Manila, the Philippines and listed on the Philippines Stock Exchange, is one of the largest branded consumer food companies in the country. It also has production facilities in Thailand, Malaysia, China, Indonesia and Vietnam and sales/marketing offices in HK and Singapore. URC is also engaged in Agro-industrial products, sugar milling, flour milling and the packaging industry in the Philippines. * BSP Approves RP's Prepayment of US$70 Million ADB Loans --------------------------------------------------------- The Philippines is prepaying US$70 million worth of loans to the Asian Development Bank, Manila Standard Today reveals. The paper cites Finance Secretary Margarito Teves, as saying the prepayment saves on interest costs and further boosts the government's strong fiscal position. Mr. Teves explains that loan prepayment is part of the government's debt management strategy aimed at reducing external debt service costs and taking advantage of low interest rates arising from strong fiscal position. Mr. Teves stated that the Philippines could save as much as US$5.4 million from the payment of the seven ADB loans that carry fixed interest rates ranging from 7.7% to 11%. The loans are due between 2008 and 2013, Mr. Teves revealed. The Manila Standard relates that Bangko Sentral ng Pilipinas Gov. Amando Tetangco Jr., said the Monetary Board, the policy- making body of the central bank, approved: -- the prepayment; and -- a US$250-million loan from the International Bank for Reconstruction and Development, which will be co-financed by the Japan Bank for International Cooperation. According to the paper, the purpose of the IBRD loan -- the first development policy loan -- is to support the government in its fiscal, and government policy reforms. The finance department will act as executing agency for the US$250-million loan that will mature in 20 years, with an eight- year grace period, Manila Standard notes, adding that it carries an interest rate of 50 basis points above the six-month US dollar Libor. * * * "Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured rating to the Republic of Philippines' proposed new bond issue that will mature in 2024, as well as the new debt under the series of 7.75% Global Bonds due in 2031. The government is offering these bonds in exchange for some of its existing debt. At the same time, Standard & Poor's also affirmed its 'BB-' ratings on the bonds that are eligible for exchange." On November 3, 2006, the Troubled Company Reporter - Asia Pacific reported that Moody's Investors Service changed to stable from negative the outlook on the Philippines' key ratings due to the progress made in reining in fiscal deficits in 2006 and an easing in dependence on external financing. The affected ratings include the B1 long-term government foreign- and local-currency ratings, the B1 foreign-currency bank deposit ceiling and Ba3 foreign currency country ceiling, the TCR-AP noted. ================= S I N G A P O R E ================= ADVANCED SYSTEMS: Posts SGD2.4-Mil. Net Profit for 2006 Half-Yr. ---------------------------------------------------------------- On Nov. 8, 2006, Advanced Systems Automation has filed with the Singapore Stock Exchange, its financial statements for the six- month period from April 1, to September 30, 2006. Advanced Systems' net profit for the half-year period to September 2006 totaled to SGD2,356,000, against the recorded net loss of SGD505,000 for the same period in the previous year. The group's SGD2,356,000 net profit for the half-year period ended Sept. 30, 2006, were mainly due to: -- a gain of SGD4.3 million as a result of debts waived by the banks for an equivalent amount of initial payment to the banks pursuant to the execution of the Debt Restructuring Agreement, net of professional expenses of SGD0.2 million; -- a SGD0.7 million accrued interest expense in relation to bank loans up to the Initial payment date. According to the Restructuring Agreement, the banks will waive this accrued interest together with another SGD1.0 million interest accrued in previous financial years upon full settlement of the restructured debts; -- a gain of SGD0.1 million as a result of debts waived by the unsecured creditors as a result of full settlement of certain debts pursuant to the execution of the Scheme of Arrangement under Section 210 of the Companies Act, net of professional expenses of SGD0.1 million; and -- a SGD0.7 million loss on deemed disposal of the shares of APS Investment Pte Ltd, a 37.11% owned associated company, which formed a part of 5,215,424 shares set aside to be transferred to the banks in accordance to the terms of the Restructuring Agreement. The total loss on deemed disposal of APS Investment's shares amounted to SGD1.6 million. The company recognized the loss based on the proportionate settlement of the restructured bank debts. Advanced System's revenue for the half-year period to Sep. 2006, totaled SGD18,892,000 a significant reduction as compared to SGD14,477,000 for the same period in 2005. Operating loss before taxation amounted to SGD82,000 as compared to SGD1,226,000 recorded operating loss before taxation in the same quarter last year. As of Sept. 30, 2006, the Group's balance sheet showed SGD29,392,000 total assets and SGD21,762,000 in total liabilities, resulting in a stockholders' equity of SGD7,630,000. Advanced System's half-year report for the period ended Sept. 30, 2006, can be viewed for free at: http://bankrupt.com/misc/tcrap-advanced About Advanced Systems Automation Advanced Systems Automation Limited -- http://www.asa.com.sg/-- is a Singapore-based company that is engaged in the design and manufacture of automatic molding machines and other back-ended assembly equipment for the semiconductor industry. The company's subsidiaries include Avalon Technology Pte. Ltd.; Microfits Pte. Ltd.; Beijing Microfits Precision Electronics Engineering Co., Ltd. and Beijing Advanced Precision Electronics Engineering Co., Ltd., both of which are engaged in the manufacture of precision tools, dies and moulds; Acetech Solutions Ltd.; Advanced Systems Automation, Inc., and Advanced Systems Automation (Europe) Limited, which is engaged in the sale and provision of services to the European semiconductor manufacturing market. * * * As reported in the Troubled Company Reporter - Asia Pacific on August 8, 2006, auditors Ernst & Young reported in the company's Annual Report that, "The group has incurred significant losses and has been experiencing severe cash shortage in the past four financial years. The group incurred a net loss of SGD3.4 million for the financial year ended March 31, 2006, and the group's and the company's current liabilities exceeded current assets by SGD20.9 million and SGD22.9 million respectively. As of March 31, 2006, the group and the company were in net shareholders' deficit positions of SGD13.8 million and SGD11.2 million respectively. These matters described above indicate the existence of a material uncertainty, which may cast significant doubt about the group and company's ability to continue as going concerns." Ernst and Young adds that the ability of the group and the company to continue as going concern is dependent on the company's completion of the proposed renounceable rights issue, disposal of non-core assets and business restructuring. COMPACT METAL: Director Reduces Holdings of Deemed Shares --------------------------------------------------------- Tan Hua Joo, Director of Compact Metal Industries Ltd, has reduced the number of deemed shares he held in the company on Oct. 10, 2006. Before the change, Mr. Tan held 79,000 deemed shares with 0.036% issued share capital. Presently, Mr. Tan holds 634,000 deemed shares with 0.286% issued share capital. Moreover, Mr. Tan still holds 710,000 direct shares with 0.321% issued share capital. Mr. Tan's change of deemed shareholding was due to open market purchase. About Compact Metal Headquartered in Singapore, with offices in Malaysia, Compact Metal Industries Limited manufactures, fabricates, and sells aluminum windows and doors, aluminum sections, and other metal products. The company also manufactures and sells bricks, undertakes aluminum architectural contracts and engineering works, and sub-contracts building projects. Its other activities include trading aluminium and related products, and hotel ownership and others. The Group operates in Singapore, Malaysia, Indonesia, the Philippines, and Australia As reported by the Troubled Company Reporter - Asia Pacific on August 10, 2006, Auditors KPMG raised significant doubt on the Group's ability to continue as a going concern, citing the Group's recurring loses and inability to meet repayment obligations. As of June 30, 2006, Compact Metal's consolidated financial statement showed a net loss of SGD3,829,000, which is an improvement from the SGD9,796,000 net loss recorded as of June 30, 2005. FALMAC LIMITED: Notes Shareholder's Change in Interest ------------------------------------------------------ Ho Liong Fen, a substantial shareholder of Falmac Limited has on Oct. 30, 2006, changed the number of direct shares he held in the company. Before the change, Mr. Ho held 3,506,000 direct shares with 2.26% issued share capital. After the change, Mr. Ho holds 150,000 direct shares with 0.1% issued share capital. Mr. Ho still holds 7,052,154 deemed shares in the company with 4.55% issued share capital. Mr. Ho's change in shareholding was due to the transfer of shares to a family member. About Falmac Ltd. Headquartered in Singapore, Falmac Limited manufactures and trades knitting machines and related precision parts and components, as well as cotton yarn. A report by the Troubled Company Reporter - Asia Pacific on July 8, 2004, stated that the company has entered into these definitive agreements in relation to the company's restructuring on July 6, 2004: (1) Restructuring Deed with Ho Liong Fen, Falmac Investment Holdings Pte Ltd, and the creditor banks of the Company. (2) Shareholder's Loan Agreement with Sino Equity. (3) Strategic Subscription Agreement with Sino Equity. Moreover, the TCR-AP recounts on Aug. 16, 2006, that the company registered a widening shareholders' deficit, from a shortfall of SGD1.21 million as of December 31, 2005, to a deficit of SGD1.88 million as of June 30, 2006. The company's total assets as of June 30, 2006 stood at SGD17.62 million, while the total liabilities figure was at SGD19.50 million. The company has SGD10.39 million of secured loans repayable within in one year, but current assets stands at SGD7.23 million. FLEXTRONICS: Earns US$184.8 Mil. in Second Qtr. Ended Sept. 30 -------------------------------------------------------------- Flextronics International Ltd. filed its financial statements for the second quarter ended Sept. 30, 2006, with the Securities and Exchange Commission on Nov. 8, 2006. For the three months ended Sept. 30, 2006, the Company reported US$184.870 million of net income compared with a US$2.447 million net loss in the comparable quarter of 2005. Net Sales Net sales during the three months ended Sept. 30, 2006, totaled US$4.7 billion, representing an increase of US$894.3 million over the three months ended Sept. 30, 2005. Net sales during the three months ended Sept. 30, 2006, increased by US$721.1 million and US$239.2 million in Asia and the Americas, respectively, offset by a decline of US$66 million in Europe. Overall, the increase in net sales was primarily attributable to: -- an increase of US$514.2 million in the mobile communications market due to new program wins from various customers; -- an increase of US$154.9 million to customers in the infrastructure market; -- an increase of US$121.2 million to customers in the industrial, medical, automotive and other markets; -- an increase of US$59.5 million to customers in the computing market; and -- an increase of US$44.5 million to customers in the consumer digital market. Net sales during the six months ended Sept. 30, 2006, totaled US$8.8 billion, representing an increase of US$1.1 billion over the six months ended Sept. 30, 2005. Net sales during the six months ended Sept. 30, 2006, increased by US$1.2 billion and US$335.2 million in Asia and the Americas, respectively, offset by a decline of US$373.6 million in Europe. Overall, the increase in net sales was primarily attributable to: -- an increase of US$732.8 million in the mobile communications market due to new program wins from various customers; -- an increase of US$181.4 million to customers in the industrial, medical, automotive and other markets; -- an increase of US$119.6 million to customers in the computing market; and -- an increase of US$114.5 million to customers in the infrastructure market, offset by a decrease of US$18 million to customers in the consumer digital market. The company's 10 largest customers during the three months ended Sept. 30, 2006, and 2005 accounted for approximately 68% and 62% of net sales, respectively, with Hewlett-Packard and Sony- Ericsson each accounting for greater than 10% of its net sales. The Company's 10 largest customers during the six months ended Sept. 30, 2006, and 2005 accounted for approximately 67% and 63% of net sales, respectively, with Hewlett-Packard and Sony- Ericsson each accounting for greater than 10% of its net sales. Restructuring Charges Historically, the company initiated a series of restructuring activities, which were intended to realign its global capacity and infrastructure with demand by its OEM customers and improve its operational efficiency. These activities included: -- reducing excess workforce and capacity; -- consolidating and relocating certain manufacturing facilities to lower-cost regions; and -- consolidating and relocating certain administrative facilities. The restructuring costs were comprised of employee severance, costs related to leased facilities, owned facilities that were no longer in use and were to be disposed of, leased equipment that was no longer in use and was to be disposed of, and other costs associated with the exit of certain contractual agreements due to facility closures. The overall impact of these activities was that the company shifted its manufacturing capacity to locations with higher efficiencies and, in most instances, lower costs, resulting in better utilization of its overall existing manufacturing capacity. This enhances its ability to provide cost-effective manufacturing service offerings, which enables the Company to retain and expand its existing relationships with customers and attract new business. Although the company believes it is realizing its anticipated benefits from these efforts, it continues to monitor its operational efficiency and capacity requirements and may utilize similar measures in the future to realign its operations relative to future customer demand, which may materially affect its results of operations in the future. The company believes that the potential savings in cost of goods sold achieved through lower depreciation and reduced employee expenses as a result of its restructurings will be offset in part by reduced revenues at the affected facilities. During the three and six months ended Sept. 30, 2006, the company recognized charges of approximately US$96.2 million related to the impairment, lease termination, exit costs and other charges primarily related to the disposal and exit of certain real estate owned and leased by the Company in order to reduce its investment in property, plant and equipment. During the three and six months ended Sept. 30, 2006, charges recognized by reportable geographic region amounted to US$59 million, US$22.5 million, and US$14.7 million for the Americas, Asia and Europe, respectively. Approximately US$95.7 million of the charges were classified as a component of cost of sales during the three and six months ended Sept. 30, 2006. During the three and six months ended Sept. 30, 2005, the company recognized restructuring charges of approximately US$50.3 million and US$83 million, respectively. During the three months ended Sept. 30, 2005, restructuring charges recognized by reportable geographic region amounted to US$14.6 million and US$35.7 million for the Americas and Europe, respectively. During the six months ended Sept. 30, 2005, restructuring charges recognized by reportable geographic region amounted to US$27.3 million and US$55.7 million for the Americas and Europe, respectively. During the three months ended Sept. 30, 2005, involuntary employee terminations identified by reportable geographic region amounted to 388 and 607 for the Americas and Europe, respectively. During the six months ended Sept. 30, 2005, involuntary employee terminations identified by reportable geographic region amounted to 453 and 2,257 for the Americas and Europe, respectively. Approximately US$38.5 million and US$66 million of the restructuring charges were classified as a component of cost of sales during the three and six months ended Sept. 30, 2005, respectively. Liquidity and Capital As of Sept. 30, 2006, the company had cash and cash equivalents of US$1 billion and bank and other borrowings of US$1.7 billion, including approximately US$225 million outstanding under its various credit facilities. These credit facilities are subject to compliance with certain financial covenants. As of Sept. 30, 2006, the Company was in compliance with the covenants under its indentures and credit facilities. Working capital as of Sept. 30, 2006, and March 31, 2006, was approximately US$1 billion and US$938.6 million, respectively. Cash used in operating activities amounted to US$49.2 million during the six months ended Sept. 30, 2006. Cash provided by operating activities amounted to US$432.9 million during the six months ended Sept. 30, 2005. At Sept. 30, 2006, the company's balance sheet showed US$12.409 million in total assets, US$6.752 million in total liabilities, and US$5.656 million in total shareholders' equity. Full-text copies of the company's second quarter financials are available for free at: http://ResearchArchives.com/t/s?14b3 About Flextronics International Headquartered in Singapore, Flextronics International Ltd. -- http://www.flextronics.com/-- provides electronics manufacturing services through a network of facilities in over 30 countries worldwide. The company delivers complete design, engineering, and manufacturing services to aerospace, automotive, computing, consumer digital, industrial, infrastructure, medical and mobile original equipment manufacturers. * * * Moody's Investors Service confirmed Flextronics International Ltd.'s Ba1 Corporate Family Rating in connection with the rating agency's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology. LINDETEVES-JACOBERG: Lists and Quotes 213,065,602 Rights Shares --------------------------------------------------------------- Lindeteves-Jacoberg Limited disclosed on Nov. 7, 2006, that pursuant to the Rights Issue, it has listed and quoted 213,065,602 Rights Shares in the official list of Singapore Stock Exchange Mainboard with effect from 9:00 a.m. on Nov. 8, 2006. The Rights Shares, when allotted and issued, will rank pari passu in all respect with the existing shares of the company -- save for any dividends, rights, allotments or other distributions -- the Record Date for which falls before the date of issue of the Rights Shares. As reported by the Troubled Company Reporter - Asia Pacific, on Nov. 7, 2006, the company as at the closing date, has received a total of 213,065,602 Rights Shares of valid acceptances and excess applications. An aggregate of 187,001,500 Rights Shares were allotted to -- ATB Austria Antriebstechnik AG and Arisaig Asean Fund Limited -- Lindeteves-Jacoberg's shareholders representing approximately 75.4% of the 248,056,294 Rights Shares. The details of the valid acceptances and excess application for the Rights Shares are these: -- valid acceptances were received for a total of 164,316,137 Rights Shares, representing approximately 66.2% of the 248,056,294 Rights Shares available under the Rights Issue; and -- excess applications were received for a total of 48,749,465 Rights Shares, representing approximately 19.7% of the 248,056,294 Rights Shares available. Moreover, Lindeteves-Jacoberg attempted to sell through its appointed broker, on a best effort basis, the provisional allotment of 1,498,875 Rights Shares representing approximately 0.6% of the 248,056,294 Rights Shares available under the Rights Issue which would have been provisionally allotted to foreign shareholders. However, the company was not successful in selling any of the provisional allotment of 1,498,875 Rights Shares due to the existing market conditions at the trading period from Oct. 13, to October 23, 2006. The Rights Issue was 85.9% subscribed and the company has raised approximately SGD25.4 million in net proceeds after deducting the estimated expenses of approximately SGD150,000. The net proceeds of approximately SGD25.4 million from the Rights Issue will be allocated through: * capitalization of the Loan Amount of SGD3,706,320 or approximately equivalent to EUR1.9 million in relation to payment of cash by ATB Austria for subscription of 126,508,710 Rights Shares under the Rights Issue; * repayment of bank borrowings of approximately SGD3.3 million or approximately of 13% of the net proceeds; and * the remaining proceeds will be used as general working capital or approximately 72.4% of the net proceeds for the Group. About Lindeteves-Jacoberg Lindeteves-Jacoberg Limited - http://www.linjacob.com/-- was incorporated in Singapore on December 11, 1947 as part of a Dutch international trading group. Its principal activities consist of investment holding, provision of warehousing and rental services and acting as specialist mechanical and electrical contractor for environmental engineering projects. The company is currently working out further debt restructuring plans for its liabilities, in addition to an earlier approved Scheme of Arrangement with its creditors. The TCR-AP reported on Oct. 27, 2006, that the company has total assets of US$225.52 million and US$53.23 million equity deficit as of Oct. 26, 2006. PDC CORP: Unveils Shareholders' Change of Interest -------------------------------------------------- On Nov. 10, 2006, the Troubled Company Reporter - Asia Pacific reported that, pursuant to the Share Issue Mandate, the Singapore Stock Exchange and Securities Commission, on Nov. 1, approved in-principle PDC Corp's application for the listing of and quotation of up to 184,500,000 new ordinary shares in the company's capital, to be allotted and issued on the Official List of the Mainboard of the SGX-ST. With the issue of the new shares, the company's issued share capital increased to 1,239,920,895 shares of SGD0.01 each, thus diluting the shares held by its substantial shareholders in the company. Malayan Banking Berhad, a substantial shareholder of the company has decreased the percentage of the issued share capital he holds in the company. Before the change, Malayan Banking held 95,461,733 direct shares with 9.04% issued share capital. Presently, Malayan Banking holds 95,461,733 shares with 7.70% issued share capital. Another substantial shareholder, Hsu Hung-Chun had also decreased his percentage level of shares in the company. Before the change, Mr. Hsu held 160,000,000 direct shares with 15.63% issued share capital. After the change, Mr. Hsu holds 160,000,000 direct shares with 12.90% issued share capital. Goh Bak Heng, another substantial shareholder of PDC Corp. has also decreased his percentage level of shares he holds in the company. Before the change, Mr. Goh held 128,400,000 direct shares in the company with 12.54% issued share capital. Presently, Mr. Goh holds 128,400,000 direct shares with 10.36% issued share capital. Wong Wen-Young, another substantial shareholder in the company has also decreased his percentage level of shares he holds in the company. Before the change, Mr. Wong held 100,000,000 shares with 9.77% issued share capital. Presently, Mr. Wong holds 100,000,000 direct shares 8.07% issued share capital. Another substantial shareholder, Teo Kee Bock has also decreased his percentage level of shares he holds in the company. Prior to the change, Mr. Teo held 87,500,000 direct shares with 8.29% issued share capital. After the change, Mr. Teo holds 87,500,000 direct shares with 7.06% issued share capital. About PDC Corp. Headquartered in Singapore, PDC Corporation Limited is principally involved in the provision of general construction, property development, real estate and investment. Its other activities are the provision of renovation work of any kind and for the demolition of any structure, trading, rental and servicing of industrial machinery and equipment and the distribution of multimedia products, home automation system, other high technology products and investment holding. * * * PDC Corporation's Auditors, Ernst & Young had issued their report on the company's financial statement for the year ended Dec. 31, 2005, highlighting a going concern issue, but without qualifying their opinion. As at Dec. 31, 2005, the current liabilities of the company and the Group exceeded their current assets by US$3,852,210 and US$20,001,069 respectively, and their total liabilities exceeded total assets by US$3,912,981 and US$20,062,940 respectively. =============== T H A I L A N D =============== THAI WAH: Auditor Raises Going Concern Doubt -------------------------------------------- Thai Wah Pcl posted THB98.254 million in net profit on THB456.694 million in revenues for the third quarter ended September 30, 2006, compared with the THB29.754-million profit posted in the same period of the previous year. The company's consolidated balance sheet at September 30, 2006, showed THB538.466 million in current assets and THB257.803 million in current liabilities. Meanwhile, the company is facing solvency problem with THB4.954 billion in total liabilities as compared to THB4.479 billion in total assets. After auditing the company's financial report, Sophon Permsirivallop of Ernst & Young Office Ltd raised doubt on the company's ability to continue as a going concern. Mr. Sophon specifically pointed out Thai Wah's ability to pay liabilities from debt restructuring which it must settle in installments and the company's ability to dispose of assets to repay indebtedness. Thai Wah Public Company Ltd's principal activity is the manufacturing and marketing of various food products using mung beans. Products includes mung bean vermicelli, bean sheet (Shanghai noodle) and salim starch. Brands and trademarks of the Group include Double Dragon, Phoenix, Double Kilin and Double Eagle brands for vermicelli; Double Dragon brand for salim starch and bean sheet; and New Grade brand for tapioca starch, tapioca pearls and rice flours. It operates a factory in Thailand located in Banglane District, Nakorn Pathom Province. The Company was placed in the "Rehabco", or Companies under rehabilitation, sector of the Thailand Stock Exchange, as mandated by the Central Bankruptcy Court of Thailand, on March 12, 2001. In July 2006, the SET reclassified the whole sector and categorized the Company under the "non-performing group." Companies under the group will retain their listing status and will be obligated to comply with SET requirements. Thai Wah is currently implementing a Reorganization Plan, whose amendments were approved by the Central Bankruptcy Court in November 2005. ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Asia Pacific is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Nolie Christy Alaba, Rousel Elaine Tumanda, Valerie Udtuhan, Francis James Chicano, Catherine Gutib, Tara Eliza Tecarro, Freya Natasha Fernandez, and Peter A. Chapman, Editors. Copyright 2006. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is $575 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***