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 Wednesday, November 29, 2006, Vol. 9, No. 237 Headlines A U S T R A L I A BEST-BUY PRODUCTS: Members to Receive Wind-Up Report on Dec. 21 BST HOLDINGS: Sutherland Ceases to Act as Receiver and Manager FRACTIONATED CANE: Schedules Final Meeting on December 21 GLASS DECOR: To Declare First and Final Dividend on Jan. 12 GLOBAL ENGINEERED: Workers Want Guaranteed Entitlements GRAPHIQUE NOMINEES: Members and Creditors to Hear Wind-Up Report HOBART PORTS: Members Resolve to Wind Up Firm MONARO AUTO: Court Issues Wind-Up Order OPEN TEXT: Earns US$7.3 Million in First Quarter Ended Sept. 30 PORTBAY HOLDINGS: Creditors' Final Meeting Slated for Dec. 13 POWER RESOURCES: Liquidator to Present Wind-Up Report on Dec. 13 PRIMELIFE CORPORATION: Former Officers Lost Dismissal Claims RC2 CORP: Earns US$19.4 Million in Third Quarter 2006 SCOTT STREET: Inability to Pay Debts Prompts Wind-Up SOMERDALE PTY: Members to Hold Final Meeting on Dec. 22 W.A.L. AGNEW: To Hold Joint Meetings on December 22 WESTINGHOUSE AIRBRAKE: Moody's Puts Loss-Given-Default Ratings C H I N A & H O N G K O N G BILLY CREATION: Enters Voluntary Wind-Up CITIC GROUP: Buys Majority Stake in Indo Oilfield for US$97 Mil. GREAT FORTUNE: Court Sets Wind-Up Hearing on Dec. 27 H.C.B.C. FINANCE: Appoints Poon Wong Yuen Shan as Liquidator HONGKONG RUIBIAO: Faces Liquidation Proceedings IPCO CONSTRUCTORS: Members to Receive Wind-Up Report on Dec. 27 KWONG ON: Liquidator to Present Wind-Up Report on Dec. 28 SHAN MEI: Court Resets Wind-Up Hearing on December 6 SPEEDY ACT: Court to Hear Wind-Up Petition on December 6 TREASURE MANAGEMENT: To Pay Second Ordinary Dividend * NBS Projects 10% Growth in China's Gross Domestic Product I N D I A BHARTI AIRTEL: Ties Up With Wal-Mart in Retail Deal DUNLOP INDIA: To Hold Annual Meeting on December 20 EMCO LTD: Receives INR380-Mil. Order from Power Grid Corp. EMCO LTD: ESOP Committee Grants 20,000 Stock Options EMCO LTD: Allots 20,00,000 Equity Shares to Institutional Buyers ESSAR OIL: Starts Production at Vadinar Refinery GENERAL MOTORS: Boosting Argentine Car Output by 12% in December I N D O N E S I A ANEKA TAMBANG: Eyes Financing For US$2.65-Billion Projects BANK MANDIRI: Posts IDR1.19-Tril. Net Income for 9-Month Period BERAU COAL: To Market US$325-Million Bonds J A P A N HIROSHIMA BANK: Fitch Upgrades Individual Rating to 'C' from 'D' JAPAN AIRLINES: Delays Jet Order Until 2007 Due to Finances MITSUBISHI MOTORS: Secures US$485-Million Bank Loan MITSUBISHI MOTORS: Releases Oct. 2006 Production & Sales Results MIZUHO FINANCIAL: To Issue Securities to Raise JPY400BB Capital K O R E A HANAROTELECOM: Signs MOU with SK Comm. to Enhance HanaTV HYUNDAI MOTOR: To Sell 10,000 Sonata Taxis to ComfortDelGro LG CARD: To Finalize Shinhan Acquisition Price on Dec. 15 LG CARD: Delinquency Rate in October 2006 Goes Down * FTA Could Raise Yearly Korean Auto Exports by US$900 Million M A L A Y S I A AMBANK BERHAD: Fitch Affirms C/D Individual Rating Amid ANZ Buy AMSTEEL CORP: Incurs MYR7.48 Million in Sept. 2006 Quarter CRIMSON LAND: Cuts Net Loss to MYR20,000 in First Quarter 2006 SILVERSTONE CORP: Posts MYR8.4MM Net Loss in Sept. 2006 Quarter TENCO BHD: Gains MYR21,000 Net Profit in Second Quarter 2006 N E W Z E A L A N D APOLLO PROPERTIES: Liquidation Hearing Slated for Nov. 30 ARCHILLES PROPERTIES: Faces Liquidation Proceedings JAYMAR HOLDINGS: Creditors Must Prove Claims by Dec. 8 LANGS HOLDINGS: Commences Liquidation Proceedings MASONRY RESIDENTIAL: Court Sets Liquidation Hearing on Dec. 7 NASH HOLDINGS: Official Assignee to Liquidate Business OAKHILL TRADING: Court Sets Liquidation Hearing on Nov. 30 SKYWIRE HOLDINGS: Court Hears CIR's Liquidation Petition TONDA DEVELOPMENTS: Undergoes Liquidation Proceedings XELY LTD: Shareholders Opt to Liquidate Business XTREME SOLUTIONS: Creditors Must Prove Debts by December 15 P H I L I P P I N E S ATLAS CONSOLIDATED: DENR Issues Permit to Berong Nickel Project BANKARD INC: Increases Authorized Capital to 2 Billion Shares EQUITABLE PCI: Monetary Board Approves GSIS' 12.5% Stake Sale MANILA ELECTRIC: If Good Offer Exists, Lopez May Sell 14% Share METROPOLITAN BANK: Best Securities Dealer in Secondary Market PRIME MEDIA: Posts PHP834-Mil. Stockholders' Deficit for 3rd Qtr RIZAL COMMERCIAL BANKING: Board Okays Bankard Capital Infusion S I N G A P O R E BUILDERS FEDERAL: High Court to Hear Wind-Up Petition on Dec. 15 ECON CORPORATION: Creditors' Proofs of Debt Due on Dec. 8 GRANT PRIDECO: Earns US$126.5MM in Quarter Ended Sept. 30 2006 ODYSSEY RE: Fairfax Commences Offering to Sell 9 Million Shares PACIFIC ASSOCIATES: Court Enters Wind-Up Order REFCO INC: Files October 2006 Monthly Operating Report REFCO INC: Chapter 11 Trustee Wants to Collect US$1 Mil. in Fees SEE HUP SENG: Inks Placement Agreements with Merrill and SBI THE EXPANDED: Creditors' First Meeting Set for December 1 T H A I L A N D HANTEX PCL: Cuts Registered Capital to THB523.45 Million KASIKORNBANK: Expects 13% Loan Growth Next Year * Upcoming Meetings, Conferences and Seminars - - - - - - - - ================= A U S T R A L I A ================= BEST-BUY PRODUCTS: Members to Receive Wind-Up Report on Dec. 21 --------------------------------------------------------------- The members of Best-Buy Products Pty Ltd will hold a final meeting on Dec. 21, 2006, at 10:00 a.m., to receive Liquidator Pearce's account of the company's wind-up proceedings. According to the Troubled Company Reporter - Asia Pacific, Best- Buy declared its first and final dividend on May 28, 2006. The Liquidator can be reached at: Mark Pearce Pearce & Heers Insolvency Accountants Level 8, 410 Queen Street Brisbane Australia Telephone:(07) 3221 0055 About Best-Buy Products Best-Buy Products Pty Ltd is located in Queensland, Australia. The company is engaged with hardware business. BST HOLDINGS: Sutherland Ceases to Act as Receiver and Manager -------------------------------------------------------------- On Nov. 16, 2006, Roderick Mackay Sutherland ceased to act as receiver and manager of BST Holdings Pty Ltd. Mr. Sutherland can be reached at: R. M. Sutherland Jirsch Sutherland Chartered Accountants Level 2, 84 Pitt Street Sydney, New South Wales 2000 Australia Telephone:(02) 9233 2111 Facsimile:(02) 9233 2144 About BST Holdings BST Holdings Pty Limited is located in New South Wales, Australia. The company is involved with chemicals and chemical preparations. FRACTIONATED CANE: Schedules Final Meeting on December 21 --------------------------------------------------------- Fractionated Cane Technology Ltd, which is in liquidation, will hold a final meeting for its members and creditors on Dec. 21, 2006, at 11:00 a.m. At the meeting, the liquidators will give an account of the company's wind-up proceedings and property disposal activities. The Joint and Several Liquidators can be reached at: Bradley Hellen Ann Fordyce Pilot Partners Chartered Accountants Level 5, 175 Eagle Street Brisbane, Queensland 4000 Australia About Fractionated Cane Fractionated Cane Technology Ltd is located in Queensland, Australia. The company is engaged with management consulting services. GLASS DECOR: To Declare First and Final Dividend on Jan. 12 ----------------------------------------------------------- Glass Decor (South Australia) Pty Ltd, which is in liquidation, will declare its first and final dividend on Jan. 12, 2007. Creditors are required to submit their proofs of debt by Dec. 12, 2006, or they will be excluded from sharing in the dividend. The Liquidator can be reached at: Robert C. Parker Freer Parker & Associates PO Box 6238 Halifax Street Adelaide, South Australia 5000 Australia Telephone:(08) 8211 7177 Facsimile:(08) 8212 4677 Email: freerparker@freerparker.com.au About Glass D,cor Glass Decor (South Australia) Pty Ltd is located in Elizabeth South in South Australia, Australia. The company is a glass and glazing work contractor. GLOBAL ENGINEERED: Workers Want Guaranteed Entitlements ------------------------------------------------------- On November 28, 2006, workers at Ajax Engineered Fasteners continued their sit-in in a bid to secure thousands of dollars in entitlements, the Australian Associated Press reports. According to the report, on November 27, 2006, the factory's 189 workers were stood down on full pay as receivers moved to liquidate the company's assets to pay out AU$4.5 million to Allen Capital. AAP reveals that Allen Capital has appointed KordaMentha as the receivers while administrator Stephen Longley, of PricewaterhouseCoopers, said that Ajax's immediate future is still unclear. The sit-in at the factory in Braeside, in Melbourne's south- east, would continue until the workers' full entitlements are guaranteed, the Herald Sun cites the Australian Workers Union as saying. AWU state secretary Cesar Melham said "we won't accept anything less than 100 cents in the dollar. The workers deserve it," the paper relates. As reported in the Troubled Company Reporter - Asia Pacific on August 25, 2006, jobs at Ajax have been saved by a last-minute rescue deal. On August 23, 2006, major industry players, including Holden and Ford, signed a deal to keep Ajax running for at least six more months, the TCR-AP cited a report from the Herald Sun. The deal was supposed to give the company some time to trade itself out of financial difficulty, but unraveled over the weekend and the union has blamed the carmakers of not living up to their obligations, AAP says. The appointment of a receiver gave the carmakers the ability to terminate the rescue package, Mr. Longley said, noting, however, that this had not yet occurred. Holden may be forced to stand down workers at its car manufacturing plant in Adelaide within this week, AAP notes. About GEF Based at the Ajax plant in Braeside, Victoria, Global Engineered Fasteners -- http://www.ajaxfast.com.au/-- wholly owns Ajax Engineered Fasteners. GEF also owns the full-service automotive supplier Global Automotive Logistics. Allen Capital Private Equity and a team of company directors jointly own GEF. GEF was established in 2004 to acquire the assets of Ajax EF and GAL from the Nylex Group. GEF supplies customers, including GM Holden, Pacifica Group, and Textron, with nuts and bolts for engines and suspension parts as well as fasteners for other vehicle parts. The Troubled Company Reporter - Asia Pacific reported on August 9, 2006, that Allen Capital, the private equity owner of Global Engineered Fasteners, called in administrators to try to engineer a turnaround after the Company's battle with rising costs and falling volumes failed. The report noted that the action was due to the Company's more than AU$5 million in debt and the inability to convince Holden and brakes-maker Pacifica to agree to price rises. The directors of GEF appointed Stephen Longley and David McEvoy, of PricewaterhouseCoopers, as the Company's voluntary administrators. GRAPHIQUE NOMINEES: Members and Creditors to Hear Wind-Up Report ---------------------------------------------------------------- The members and creditors of Graphique Nominees Pty Ltd will hold a joint meeting on Dec. 22, 2006, at 9:00 a.m., to receive the liquidator's report regarding the company's wind-up proceedings. According to the Troubled Company Reporter - Asia Pacific, Graphique Nominees declared its final dividend on February 1, 2006. The Liquidator can be reached at: Mervyn J. Kitay Grant Thornton Western Australian Partnership Level 6, 256 St Georges Terrace Perth, Western Australia 6000 Australia Telephone:(08) 9481 1448 About Graphique Nominees Graphique Nominees Pty Ltd also trading as Ad-Link Advertising is located in Western Australia, Australia. The company operates advertising agencies. HOBART PORTS: Members Resolve to Wind Up Firm --------------------------------------------- At an extraordinary general meeting held on Nov. 6, 2006, the members of Hobart Ports Corporation Proprietary Ltd resolved to voluntarily wind up the company's operations. Subsequently, Harvey J. Gibson was appointed as liquidator. The Liquidator can be reached at: Harvey J. Gibson Wise Lord & Ferguson Chartered Accountants 1st Floor, 160 Collins Street Hobart, Tasmania 7000 Australia Telephone:(03) 6223 6155 About Hobart Ports Hobart Ports Corporation Proprietary Limited is also trading as Melbourne Stevedores, Port Pirie Stevedores and Hobart Ports Corporation. The company is engaged with the arrangement of transportation of freight and cargo. The company is located in Tasmania, Australia. MONARO AUTO: Court Issues Wind-Up Order --------------------------------------- On Nov. 16, 2006, the Supreme Court of New South Wales has entered an order to wind up the operations of Monaro Auto Electrics Pty Ltd. Subsequently, Daniel Jean Civil was appointed as official liquidator. The Official Liquidator can be reached at: Daniel Jean Civil Jirsch Sutherland Chartered Accountants Level 2, 84 Pitt Street Sydney, New South Wales 2000 Australia Telephone: 02 9233 2111 Facsimile: 02 9233 2144 About Monaro Auto Monaro Auto Electrics Pty Limited is located in New South Wales, Australia. The company operates general automotive repair shops. OPEN TEXT: Earns US$7.3 Million in First Quarter Ended Sept. 30 --------------------------------------------------------------- Open Text Corp. filed its first fiscal quarter financial statements for the period ended Sept. 30, 2006, with the United States Securities and Exchange Commission Nov. 9, 2006. Total revenue for the first quarter was US$101.2 million, compared with US$92.6 million for the same period in the prior fiscal year. License revenue in the first quarter was US$28.8 million, compared with US$24.9 million in the first quarter of the prior fiscal year. Adjusted net income in the quarter was US$12.2 million compared with US$6.3 million for the same period in the prior fiscal year. Net income in accordance with U.S. generally accepted accounting principles was US$7.3 million, compared with a net loss of US$12.9 million for the same period in the prior fiscal year. The cash, cash equivalents and short-term investments balance as of Sept. 30, 2006, was US$111.2 million. Accounts receivable as of Sept. 30, 2006, totaled US$76.7 million, compared with US$73.6 million as of Sept. 30, 2005, and Days Sales Outstanding was 68 days in the first quarter of fiscal 2007, compared with 71 days in the first quarter of fiscal 2006. Operating cash flow in the first quarter of fiscal 2007 was US$9.6 million compared with US$300,000 in the first quarter of fiscal 2006. "With the addition of Hummingbird, we are the largest independent ECM provider. The combination of deep vertical solutions expertise, market independence and the ability to leverage Microsoft, Oracle and SAP, allows us to scale to the enterprise, offering customers comprehensive solutions and the capability of implementing an enterprise wide ECM strategy," Open Text president and chief executive officer John Shackleton said. "Now that we have completed the Hummingbird acquisition, our focus is on integrating the two organizations as quickly and smoothly as possible," Mr. Shackleton said. The majority of Hummingbird's integration will be completed during the second quarter of fiscal 2007, which ends on Dec. 31, 2006. As part of the integration, Open Text is reducing its worldwide workforce of 3,500 people by around 15%. The restructuring actions commenced in October 2006 and to date, around 60 percent of these reductions have been completed. The remaining staff reductions will to be completed by the end of November 2006. The staff reductions will be focused on redundant positions or areas of the business that are not consistent with the company's strategic focus. Open Text is also reducing 38 facilities by closing or consolidating offices in certain locations. "Actions are well underway to rationalize staff levels and consolidate facilities to meet our operating goals. Based on our expected run-rate in our second quarter, these actions will result in savings of around US$50 million for the current fiscal year and on an annualized basis, around US$80 million beginning in fiscal 2008," Open Text chief financial officer Paul McFeeters said. At Sept. 30, 2006, the Company's balance sheet showed US$665.39 million, US$193.25 million in total liabilities, US$6.03 million in minority interest, and US$466.12 million in total shareholders' equity. Full-text copies of the Company's first fiscal quarter financials are available for free at: http://ResearchArchives.com/t/s?157c Open Text Corp. -- http://www.opentext.com/-- is a leading provider of Enterprise Content Management software targeting large Global 2000 enterprise customers. ECM software and support services -- an estimated US$2.25 billion addressable market -- help businesses capture, store, and manage unstructured corporate data. The company's flagship product, Livelink ECM, has an installed base in excess of 20 million seats in more than 114 countries. It has field offices in Australia, Japan and Singapore. * * * Standard & Poor's Ratings Services assigned its 'BB-' long-term corporate credit rating to Waterloo, Ontario-based enterprise software provider, Open Text Corp. At the same time, Standard & Poor's assigned its 'BB-' bank loan rating, with a recovery rating of '2', to the company's proposed US$490 million senior secured bank facility, which consists of a US$75 million five-year revolving credit facility and a US$415 million seven-year term loan B. Moody's Investors Service assigns a first-time Ba3 rating to the senior secured facilities and B1 rating to the corporate family of Open Text Corp., a leading provider of enterprise content management software. The ratings reflect both the overall probability of default of the company, to which Moody's assigns a PDR of B2, and a loss-given-default of LGD-2 for the senior secured facilities. Moody's also assigned a SGL-1 speculative grade liquidity rating, reflecting very good liquidity. The ratings outlook is stable. PORTBAY HOLDINGS: Creditors' Final Meeting Slated for Dec. 13 ------------------------------------------------------------- The final meeting of the creditors of Portbay Holdings Pty Ltd -- formerly trading as Bob Sharp Homes & Construction -- will be held on Dec. 13, 2006, at 10:00 a.m. During the meeting, creditors will receive an account of the company's wind-up proceedings from Liquidator K. S. Wallman. The Liquidator can be reached at: K. S. Wallman Level 2, 15 Rheola Street West Perth, Western Australia Australia About Portbay Holdings Portbay Holdings Pty Ltd is located in Western Australia, Australia. The company is a contractor of general residential buildings, aside from single-family. POWER RESOURCES: Liquidator to Present Wind-Up Report on Dec. 13 ---------------------------------------------------------------- Power Resources WA Pty Ltd, which is in liquidation, will hold a final meeting for its members and creditors on Dec. 13, 2006, at 11:30 a.m. At the meeting, Liquidator M. H. Lyford will present a report regarding the company's wind-up proceedings and property disposal exercises. The Liquidator can be reached at: M. H. Lyford Ogilvie House 12 Kintail Road Applecross, Western Australia Australia About Power Resources Power Resources (Western Australia) Pty Ltd is located in Western, Australia. The company is involved with the construction of water lines, sewer, pipeline, communications line, and power lines. PRIMELIFE CORPORATION: Former Officers Lost Dismissal Claims ------------------------------------------------------------ Ted Sent has lost a wrongful dismissal claim against Primelife Corporation, with a judge ruling that a series of covert cash payments to Melbourne identity Mick Gatto were "highly irregular" and constituted serious misconduct, The Australian reports. According to the report, Mr. Sent used Mr. Gatto's "remarkable relationship" with building unions in Victoria to ensure disputes or industrial action did not occur on any of Primelife's development sites. The paper relates that Mr. Sent's long-time deputy, Sandi Porter, has also lost her wrongful dismissal claim after the trial judge ruled her conduct in videotaping board meetings and listening to hundreds of hours of employees' telephone calls was improper. Mr. Sent and Ms. Porter had been seeking AU$5 million in damages for their dismissal from Primelife, The Australian notes. The paper reveals that negotiations over Mr. Sent's new role, who had been chief executive officer of Primelife, broke down as the extent of his AU$234,000 payments to Mr. Gatto became clear. The Australian recounts that the irregular business activity at Primelife came to light after two of Australia's most prominent business figures, mining magnate Robert Champion de Crespigny and former Melbourne Lord Mayor Ron Walker, lent money to the company and installed themselves on the company's board. In a statement to the stock exchange, Primelife stated that its victory in the litigation "brings to an end the uncertainties related to this period of Primelife's history." Accordingly, the company will now be able to proceed with the purchase of the development site of Point Cook in Melbourne's outer west, The Australian relates. This was a transaction that was on hold pending the outcome of the litigation, the paper says. Primelife plans to construct more than 250 retirement units at the site, The Australian notes. About Primelife Headquartered in Melbourne, Australia, Primelife Corporation -- http://www.primelife.com.au-- develops and manages properties catering to a wide range of senior living needs, including independent retirement living, serviced apartments, aged care or low care hostels and high care nursing homes, and in-home care. Primelife almost skidded into insolvency when, on September 23, 2004, the Australian Securities and Investments Commission filed 37 proceedings in the Federal Court of Australia seeking, among other things, orders that an investigating accountant be appointed over managed investment schemes under Primelife to report to the Federal Court to ascertain the position of each of the schemes. ASIC also applied for the schemes to be wound up. The ASIC alleged that the schemes are not registered, as required under the Corporations Act. ASIC brought the Federal Court proceedings against Primelife and a number of other defendants including parties who, ASIC alleges, have been involved in promoting and managing the schemes to a large number of investors since 1997. The unregistered schemes are undergoing or were completely wound up starting October 2005. The Company had currently resolved most of the legal issues and was turning the corner after a couple of years. RC2 CORP: Earns US$19.4 Million in Third Quarter 2006 ----------------------------------------------------- RC2 Corp. reported US$19.4 million of net income for the third quarter ended Sept. 30, 2006. For the nine months ended Sept. 30, 2006, net income was US$36 million. The results for the third quarter and nine months ended Sept. 30, 2006 include around US$1.0 million and US$3.2 million respectively, in compensation expense for stock options. Results for 2005 do not include compensation expense for stock options. Net income reported for the 2005 third quarter was US$18.3 million. For the nine months ended Sept. 30, 2005, net income was US$35.9 million. Third Quarter Operating Results Net sales for the third quarter increased 12.5% to US$160.5 million compared with US$142.6 million for the third quarter a year ago. Current year third quarter net sales excluding US$0.1 million in net sales from sold and discontinued product lines increased 13.6% compared with third quarter 2005 net sales excluding US$1.4 million in net sales from sold and discontinued product lines. The net sales increase was attributable to increases in the children's toys and infant products categories, partially offset by a decline in the collectible products category. Sales in the children's toys category increased by 28.4%, primarily driven by the Thomas & Friends, John Deere and Bob the Builder toy product lines. Sales in the infant products category increased by 9.0%, primarily driven by The First Years' Take & Toss(R) toddler self-feeding system and Soothie(TM) bottle system and Learning Curve's Lamaze infant toys. As expected, sales in the collectible products category continued to decrease. Gross margin decreased to 47.2% from 48.9% in the prior year quarter. The 2006 third quarter gross margin reflects the impact of a less favorable product and distribution mix and higher product costs, especially in die-cast products, than that experienced in the third quarter of 2005. Selling, general and administrative expenses as a percentage of net sales decreased to 27.3% in the third quarter of 2006 compared with 28.0% in the third quarter of 2005. Selling, general and administrative expenses for the 2006 third quarter include around US$0.9 million in compensation expense for stock options, while results for the 2005 third quarter do not include any compensation expense for stock options. Operating income increased to US$31.7 million from US$30.9 million in the year ago period, but as a percentage of net sales, decreased to 19.8% from 21.7% in the prior year third quarter. Operating income for the quarter ended September 30, 2005 includes US$2.0 million in gain on sale of assets and US$0.6 million in catch-up amortization expense. Excluding the gain on sale of assets, operating income for the quarter ended September 30, 2005 was US$28.9 million or 20.3% of net sales. Year to Date Operating Results Net sales for the nine months ended Sept. 30, 2006, increased 8.3% to US$376.7 million compared with US$347.9 million for the nine months ended Sept. 30, 2005. Current year to date net sales excluding US$0.3 million in net sales from sold and discontinued product lines, increased 9.5% compared with net sales for the nine months ended Sept. 30, 2005, excluding US$4.2 million in net sales from sold and discontinued product lines. The increase was attributable to the sales increases in the children's toys and infant products categories, partially offset by a decline in the collectible products category. Gross margin for the nine months ended Sept. 30, 2006, decreased to 47.2% as compared with 49.3% for the comparable period in 2005, due to a less favorable product and distribution mix and higher product costs, especially in die-cast products. Selling, general and administrative expenses as a percentage of net sales were 31.1% for the first nine months of 2006 as compared with 32.2% for the same period in 2005. Selling, general and administrative expenses for the first nine months of 2006 include around US$3.0 million in compensation expense for stock options and around US$1.0 million in expenses related to litigation involving The First Years which preceded its acquisition by RC2. Operating income decreased to US$59.7 million from US$60.5 million in the year ago period, and as a percentage of net sales, decreased to 15.8% from 17.4% in the prior year first nine months, primarily as a result of the stock option and litigation expenses in the first nine months of 2006. Operating income for the 2005 year to date period also includes around US$2.0 million in gain on the sale of assets and around US$0.6 million in catch-up amortization expense. Operating income for the nine months ended Sept. 30, 2005, excluding the gain on sale of assets, was US$58.6 million or 16.8% of net sales. Cash and Debt As of Sept. 30, 2006, the company's outstanding debt balance was US$58.8 million and its cash balances exceeded US$20 million. The comparable figures at the end of the 2006 second quarter were US$54 million and US$14 million, respectively. Also during the quarter, the company amended its credit facility, reducing its applicable margin on borrowings, modifying the definition of certain cash flow measures to exclude non-cash expense related to equity awards and adding an accordion borrowing element. Under the amended facility the company has additional borrowing capacity of US$75.0 million. The company expects to reduce outstanding debt in the fourth quarter of 2006 and in the first quarter of 2007. Curt Stoelting, chief executive officer of RC2 commented, "We are very pleased with our third quarter results and our performance through the first nine months of 2006. In the seasonally high third quarter, our teams introduced new products and expanded distribution for our key product lines which delivered a comparable increase of over 10% in sales and profits. These results reflect our commitment to profitable organic growth despite declining sales in the collectible products category and product cost increases, especially in our die-cast products." "In the fourth quarter, we expect that die-cast products will continue to put downward pressure on our gross margins. We are encouraged by recent declines in petroleum prices but remain concerned about increasing inflation in China, which continues to pressure our product costs. We remain focused on continuing our efforts to maintain and improve our margins by optimizing product development efforts and supply chain costs while eliminating low-performing products and reducing investment in low-growth product lines." Mr. Stoelting concluded, "We are well-positioned for 2007. We have noted very positive customer reactions to our 2007 product lines including the new products that we debuted at the American International Fall Toy Show in New York. We remain confident in our long-term strategy and business model, which is focused on introducing new products based upon consumer insights. We are building a growing portfolio of branded product lines, which provide stability in our earnings and cash flow and allow us the opportunity to achieve sustainable organic growth. Our strong balance sheet gives us financial flexibility to expand our business and create value for our shareholders." Financial Outlook The 2006 outlook remains the same as presented throughout the year. Net sales for 2005 excluding sold and discontinued product lines totaled US$499.7 million. From this base level of 2005 net sales, the company has experienced continued sales growth in 2006. Overall sales increases are dependent on a number of factors including continued success and expansion of existing product lines, successful introductions of new products and product lines and renewal of key licenses. Other key factors include seasonality, overall economic conditions including consumer retail spending and shifts in the timing of that spending and the timing and level of retailer orders. Based on current sales and margin estimates, the company currently expects that full year 2006 diluted earnings per share will range from US$2.60 to US$2.70. This amount includes an estimated US$0.12 per diluted share impact of expensing stock options under SFAS 123(R) which took effect Jan. 1, 2006. Pro forma compensation expense for the year ended Dec. 31, 2005 under SFAS 123 (R) would have been around US$2.1 million, net of tax benefit, or around US$0.10 per diluted share, which would have resulted in diluted earnings per share of US$2.37 for 2005. About RC2 Corp. Based in Oak Brook, Illinois, RC2 Corporation (NASDAQ:RCRC) -- http://www.rc2corp.com/-- designs, produces and markets innovative, high-quality toys, collectibles, hobby and infant care products that are targeted to consumers of all ages. RC2's infant and preschool products are marketed under its Learning Curve(R) family of brands, which includes The First Years(R) by Learning Curve and Lamaze brands as well as popular and classic licensed properties such as Thomas & Friends, Bob the Builder, Winnie the Pooh, John Deere, and Sesame Street. RC2 markets its collectible and hobby products under a portfolio of brands including Johnny Lightning(R), Racing Champions(R), Ertl(R), Ertl Collectibles(R), AMT(R), Press Pass(R), JoyRide(R) and JoyRide Studios(R). RC2 reaches its target consumers through multiple channels of distribution supporting more than 25,000 retail outlets throughout North America, Europe, and Asia Pacific, including Australia. * * * As reported in the Troubled Company Reporter - Asia Pacific on September 28, 2006, in connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. Consumer Products, Beverage, Toy, Natural Product Processors, Packaged Food Processors, and Agricultural Cooperative sectors, the rating agency revised its Ba2 Corporate Family Rating to Ba3 for RC2 Corporation. SCOTT STREET: Inability to Pay Debts Prompts Wind-Up ---------------------------------------------------- On Nov. 10, 2006, the members of Scott Street Hardware Pty Ltd met and passed a special resolution to wind up the company's operations due to its liabilities. In this regard, Timothy James Clifton was appointed as liquidator. The Liquidator can be reached at: Timothy James Clifton Chartered Accountant Level 10, 26 Flinders Street Adelaide, South Australia Australia About Scott Street Scott Street Hardware Pty Ltd is located in South Australia. The company operates hardware stores. SOMERDALE PTY: Members to Hold Final Meeting on Dec. 22 ------------------------------------------------------- The members of Somerdale Pty Ltd will convene for their final meeting on Dec. 22, 2006, at 9:00 a.m., to receive the liquidator's account of how the company was wound up and its properties disposed of. The Troubled Company Reporter - Asia Pacific previously reported that the company's members passed a special resolution on June 27, 2006, to wind up the company's operations. The Liquidator can be reached at: M. J. Whitbread c/o Deloitte Level 3, 190 Flinders Street Adelaide, South Australia 5000 Australia About Somerdale Pty Somerdale Pty Ltd is an investor relations company. The company is located in South Australia, Australia. W.A.L. AGNEW: To Hold Joint Meetings on December 22 --------------------------------------------------- The members and creditors of W.A.L. Agnew & Son Propriety Ltd will hold a joint meeting on Dec. 22, 2006, at 3:00 p.m. During the meeting, the liquidators will present an account of the company's wind-up proceedings and property disposal exercises. The Joint and Several Liquidators can be reached at: V. R. Dye N. Giasoumi Dye & Co. Pty Ltd Chartered Accountants 165 Camberwell Road Hawthorn East 3123 Australia About W A L Agnew W A L Agnew & Son Proprietary Limited is located in Victoria, Australia. The company is involved with flour and other grain mill products. WESTINGHOUSE AIRBRAKE: Moody's Puts Loss-Given-Default Ratings -------------------------------------------------------------- In connection with Moody's Investors Service's implementation of its Probability-of-Default and Loss-Given-Default rating methodology for the Transportation sector, the rating agency held its Ba2 Corporate Family Rating for Westinghouse Airbrake Technologies, and held its Ba2 rating on the company's 6.875% Guaranteed Senior Unsecured Notes Due 2013. Additionally, Moody's assigned an LGD4 rating to those bonds, suggesting noteholders will experience a 56% loss in the event of a default. Moody's explains that current long-term credit ratings are opinions about expected credit loss which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). Based in Wilmerding, Pennyslvania, Westinghouse Airbrake Technologies dba Wabtec Corporation -- http://www.wabtec.com/-- provides various technology-based equipments for the rail industry worldwide. It manufactures and services components for new and existing freight cars and locomotives, and passenger transit vehicles, such as subway cars and buses. The company has operations in Mexico, the U.K. and Australia. ================================ C H I N A & H O N G K O N G ================================ BILLY CREATION: Enters Voluntary Wind-Up ---------------------------------------- On Nov. 9, 2006, the Shareholders of Billy Creation Ltd passed a special resolution to wind up the company's operations voluntarily. Accordingly, Andrew George Hung was appointed as liquidator. The Liquidator can be reached at: Andrew George Hung Unit 801B, Dina House Ruttonjee Centre 11 Duddell Street, Central Hong Kong CITIC GROUP: Buys Majority Stake in Indo Oilfield for US$97 Mil. --------------------------------------------------------------- CITIC Resources Holdings Ltd, the Hong Kong-listed arm of conglomerate CITIC Group, completed the purchase of 51% of an Indonesian oilfield for US$97 million, the People Daily reports. The newspaper, citing the company's statement to the Hong Kong Stock Exchange, relates that CITIC Resources bought the stake in the Seram Non-Bula block from KUFPEC, a subsidiary of Kuwait Petroleum Corp. In addition, CITIC Resources disclosed that it may buy a further 2.5% in the Indonesian oilfield from a unit of Australian-listed Lion Energy Ltd for US$4.8 million. "It is the company's first-ever overseas oil asset acquisition," Shou Xuancheng told China Daily. According to People Daily, Seram Island Non-Bula Block's principal oil field, Oseil Field, had an estimated gross oil reserve of about 39 million barrels as of December 2005, including 7 million barrels of proven reserves. It produced an average of 4,300 barrels of oil per day in the first half of 2006. The acquisition will allow CITIC Resources to explore, develop, and produce oil from Seram Island Non-Bula Block until 2019, the newspaper adds. People Daily recounts that CITIC Resources also announced its plans in October to buy Nations Energy Co.'s oil assets in Kazakhstan for US$1.91 billion. About CITIC Resources Incorporated in Bermuda in 1997, CITIC Resources Holdings Ltd has its shares listed on the Hong Kong Stock Exchange. The principal activities of the Company and its subsidiaries have been in the manufacture and sale of plywood. To produce sustained growth in shareholder value, in early 2004 the Group moved to expand its business focus and re-position itself as an integrated provider of key commodities and strategic natural resources to China. The Group's expanded business interests are in the fields of aluminium, coal, import and export of commodities, manganese, iron, oil and timber. CITIC Group -- formerly China International Trust and Investment Corporation -- became the majority-controlling shareholder of the Company in March 2004, indirectly holding interest in the company of just over 60%. * * * On November 16, 2006, the Troubled Company Reporter - Asia Pacific reported that Standard & Poor's Ratings Services placed its BB+ long-term and B short-term foreign currency counterparty credit ratings on CITIC Group on CreditWatch with developing implications following an announcement that the company plans to acquire a 94.6% interest in JSC Karazhanbasmunai, a Kazakhstan- based oil company, for US$1.91 billion. GREAT FORTUNE: Court Sets Wind-Up Hearing on Dec. 27 ---------------------------------------------------- The High Court of Hong Kong will hear a wind-up petition against Great Fortune Trading Ltd on Dec. 27, 2006, at 9:30 a.m. The HongKong and Shanghai Banking Corporation Ltd filed the petition with the Court on Oct. 31, 2006. The Solicitors for the Petitioner can be reached at: Johnson Stokes & Master 18th Floor, Prince's Building 10 Chater Road, Central Hong Kong H.C.B.C. FINANCE: Appoints Poon Wong Yuen Shan as Liquidator ------------------------------------------------------------ Poon Wong Yuen Shan was appointed liquidator of H.C.B.C. Finance Ltd by a special resolution passed by the company's members on Nov. 13, 2006. The Liquidator can be reached at: Poon Wong Yuen Shan Room 601, Dominion Centre 43-59 Queen's Road East Hong Kong About H C B C Finance H C B C Finance Limited is engaged with management services. The company is located in Kowloon Tong in KLN, Hong Kong. HONGKONG RUIBIAO: Faces Liquidation Proceedings ----------------------------------------------- On Nov. 9, 2006, Liu Yan Ming filed a wind-up petition with the High Court of Hong Kong against Ruibiao Leather Goods Group Ltd. The Court will hear the petition on Jan. 10, 2007, at 9:30 a.m. The Solicitors for the Petitioner can be reached at: Michael Cheuk, Wong & Kee Rooms 3203A-3205, 32nd Floor Tower Two, Lippo Centre No. 89 Queensway Hong Kong Telephone: 2525 1080 Facsimile: 2810 6433 IPCO CONSTRUCTORS: Members to Receive Wind-Up Report on Dec. 27 --------------------------------------------------------------- The members of IPCO Constructors International Ltd will meet for their final general meeting on Dec. 27, 2006, at 10:00 a.m., to receive the liquidators' account of the company's wind-up proceedings. As reported by the Troubled Company Reporter - Asia Pacific, the members pass a special resolution to wind up the company's operations on Aug. 15, 2006. The Liquidators can be reached at: Andrew David Ross Robin Frederick Keppel Radcliffe 12/F, China Merchants Tower Shun Tak Centre 168-200 Connaught Road Central Hong Kong KWONG ON: Liquidator to Present Wind-Up Report on Dec. 28 --------------------------------------------------------- A final general meeting of the members of Kwong On Jubilee Charity Fund Ltd will be held on Dec. 28, 2006, at 11:00 a.m., at the 20/F, Prince's Building in Central, Hong Kong. During the meeting, Liquidator Rainier Hok Chung Lam will present an account of the company's wind-up proceedings and property disposal exercises. According to the Troubled Company Reporter - Asia Pacific, Messrs. Lam and Toohey were appointed as the company's joint liquidators on July 3, 2006. The Joint Liquidator can be reached at: Rainier Hok Chung Lam 22nd Floor Prince's Bldg, Central Hong Kong SHAN MEI: Court Resets Wind-Up Hearing on December 6 ---------------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on September 27, 2006, the Bank of China (Hong Kong) Ltd filed a wind-up petition with the High Court of Hong Kong against Shan Mei Development Company Ltd on September 8. The Court was set to hear the petition on November 8, 2006. In an update, Bank of China filed an amended wind-up petition against the company on Nov. 16, 2006. Accordingly, the Court will hear the petition on Dec. 6, 2006, at 9:30 a.m. The Solicitors for the Petitioner can be reached at: Rowland Chow, Chan & Co. 15/F, Wing Lung Bank Building No. 45 Des Voeux Road, Central Hong Kong SPEEDY ACT: Court to Hear Wind-Up Petition on December 6 -------------------------------------------------------- A petition to wind up Speedy Act International Ltd will be heard before the High Court of Hong Kong on Dec. 6, 2006, at 9:30 a.m. Denman Development Ltd filed the petition with the Court on Oct. 9, 2006. The Solicitors for the Petitioner can be reached at: Boase Cohen & Collins 2303-7 Dominion Centre 43-59 Queen's Road East Hong Kong Telephone: 3416 1711 Facsimile: 2529 5035 TREASURE MANAGEMENT: To Pay Second Ordinary Dividend ---------------------------------------------------- Treasure Management Company Ltd will pay a second ordinary dividend of 0.5% to creditors today, Nov. 29, 2006. The payment will be administered by Liquidator Kong Chi How Johnson at 29th Floor, Wing On Centre, 111 Connaught Road Central, Hong Kong. The Troubled Company Reporter - Asia Pacific previously reported that Mr. Johnson accepted the creditors' proofs of debt on Oct. 27, 2006. The Liquidator can be reached at: Kong Chi How, Johnson 25th Floor, Wing On Centre 111 Connaught Road, Central Hong Kong * NBS Projects 10% Growth in China's Gross Domestic Product ----------------------------------------------------------- China's gross domestic product is expected to rise by 10% to 10.7% this year over the previous year, the People Daily says citing Yao Jingyuan, chief economist of the National Bureau of Statistics, as saying. Mr. Yao expressed his optimism on a conference on steel industry by saying the country's economy has maintained a "fast, steady and high quality growth" this year. People Daily notes that in the first nine months, the national economy experienced rapid growth with: * GDP up 10.7 percent; * the industrial sector up 13%; * retail sales up 13.5%; and * the foreign trade volume up 24.3% over the same period last year. Mr. Yao said the economic growth was of "high quality" because the country's fiscal revenues, profits of enterprises and incomes of urban and rural residents all went up in the first nine months. In addition, the consumer price index rose a moderate 1.3%, 0.7 of a percentage point lower than the rise of the same period last year, which Mr. Yao believed indicated stable economic conditions. Moreover, China's macro-economic control policies had taken effect by successfully slowing the GDP growth, fixed assets investment and supplies of money and bank loans, Mr. Yao said. However, Mr. Yao also noted that efforts are needed to strengthen Chinese banks as loans were still expanding at a rapid pace, fixed assets investment remained high and the trade imbalance lingered, People Daily relates. ========= I N D I A ========= BHARTI AIRTEL: Ties Up With Wal-Mart in Retail Deal --------------------------------------------------- As widely reported, Bharti Airtel Ltd signed an agreement with American retailer Wal-Mart Stores Inc. to open a chain of retail stores in India. "It is going to be a large investment. There will be stores across the country. We are going to be a big player in this market and Wal-Mart will be a joint venture partner," The Associated Press quotes Sunil B. Mittal, Bharti Airtel's chief executive officer, as saying. The financial details, however, were not divulged. Mr. Mittal estimated the venture to put up "several hundred stores eventually." The Financial Express noted how Bharti Airtel stock hogged the limelight after the announcement of the retail venture. On November 27, Bharti shares gained an impressive 2.25% on Monday to end the day at INR630.10, the newspaper points out. 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. DUNLOP INDIA: To Hold Annual Meeting on December 20 --------------------------------------------------- Dunlop India Ltd informs the Bombay Stock Exchange that it will hold its 79th Annual General Meeting on December 20, 2006. In this regard, Dunlop India will close its Register of Members & Share Transfer Books from December 16 to December 20, 2006. Dunlop India further informs the BSE regarding the appointment of Mohan Lall as the company's director effective on October 31, 2006. About Dunlop India Headquartered in Kolkota, India, Dunlop India Limited is involved principally in manufacturing and distributing automotive tires and tubes. The firm's other activities include manufacturing high-pressure hoses, steelcord belting and vibration isolators. In January 1998, the Board of Directors decided that the company had become sick. The Board of Directors decided to refer the company to the Board for Industrial and Financial Reconstruction and abruptly announced suspension of Dunlop's operations in both Sahagunj and Ambattur in February 1998. The Ministry for Law, Justice and Company Affairs had also come to the conclusion after inspection of the Books of Accounts of Dunlop India that there were serious irregularities and had moved the Company Law Board for appointment of Government Directors. Dunlop's last complete financial results posted was for the fiscal year ended March 31, 2003. The company recorded INR2.504 billion in total assets as of that date, and INR5.604 billion in total liabilities, resulting in a stockholders' equity deficit of INR3.10 billion. Moreover, Dunlop India incurred a net loss of INR306.1 million for the year ended March 31, 2004, compared with a net loss of INR392.2 million for the year ended March 31, 2003. In January 2006, the Ruia Group took over the Company and voted to reopen its plants. EMCO LTD: Receives INR380-Mil. Order from Power Grid Corp. ---------------------------------------------------------- Emco Ltd disclosed in a filing with the Bombay Stock Exchange that it received a prestigious order of INR380 million for the establishment of 400 Kv sub-station from Power Grid Corporation of India Ltd. The work is to be completed in 24 months. According to Emco, its current order book position is INR8300 million. About EMCO Ltd. Headquartered in Jalgaon, India, Emco Ltd. -- http://www.emcoindia.com/-- offers transmission and distribution solutions within the power sector in India. Through its Transformer Division, Emco offers power transformers, specialized rectifier transformers, furnace transformers, and locomotive and traction transformers. Through its Meters Division, the Company offers metering solutions like tamper-proof electronic energy meters, automatic meter reading solutions like drive by, walk by or fixed network, pre-payment metering solutions and high-end metering like trivector meters. It also offers energy and revenue management solutions. Through its Projects Division, Emco offers turnkey solutions from concept to commissioning for electrical substation projects. It also undertakes entire industrial electrification work from designing to execution. Emco offers information technology solutions for power distribution management. Through its International Division, EMCO offers transformers and energy meters confirming to international specifications. Credit Analysis and Research Limited downgraded Emco's senior unsecured debt from A to BB on April 1, 2004. EMCO LTD: ESOP Committee Grants 20,000 Stock Options ---------------------------------------------------- Emco Ltd informed the Bombay Stock Exchange that its ESOP (Compensation) Committee of Directors at its meeting held on November 13, 2006, granted 20,000 stock options. The options cover the right to apply for equal number of Emco Ltd's equity shares i.e. each option carrying right to apply for one Equity share, to the company's non-executive independent directors. Against each stock options, the directors will have right to apply for and get allotted one equity share at a exercise price of INR632. The vesting period for the options is in graded manner within the period from the respective grant and as prescribed in grant letters, subject to minimum vesting period of one year. About EMCO Ltd. Headquartered in Jalgaon, India, Emco Ltd. -- http://www.emcoindia.com/-- offers transmission and distribution solutions within the power sector in India. Through its Transformer Division, Emco offers power transformers, specialized rectifier transformers, furnace transformers, and locomotive and traction transformers. Through its Meters Division, the Company offers metering solutions like tamper-proof electronic energy meters, automatic meter reading solutions like drive by, walk by or fixed network, pre-payment metering solutions and high-end metering like trivector meters. It also offers energy and revenue management solutions. Through its Projects Division, Emco offers turnkey solutions from concept to commissioning for electrical substation projects. It also undertakes entire industrial electrification work from designing to execution. Emco offers information technology solutions for power distribution management. Through its International Division, EMCO offers transformers and energy meters confirming to international specifications. Credit Analysis and Research Limited downgraded Emco's senior unsecured debt from A to BB on April 1, 2004. EMCO LTD: Allots 20,00,000 Equity Shares to Institutional Buyers ---------------------------------------------------------------- Emco Ltd's Committee of Board of Directors resolved to allot 20,00,000 equity shares of INR10 each at a price of INR600 per equity share to Qualified Institutional Buyers pursuant to the provisions of the Securities and Exchange Board of India Guidelines 2000. The decision was arrived at the Committee's meeting held on October 30, 2006. About EMCO Ltd. Headquartered in Jalgaon, India, Emco Ltd. -- http://www.emcoindia.com/-- offers transmission and distribution solutions within the power sector in India. Through its Transformer Division, Emco offers power transformers, specialized rectifier transformers, furnace transformers, and locomotive and traction transformers. Through its Meters Division, the Company offers metering solutions like tamper-proof electronic energy meters, automatic meter reading solutions like drive by, walk by or fixed network, pre-payment metering solutions and high-end metering like trivector meters. It also offers energy and revenue management solutions. Through its Projects Division, Emco offers turnkey solutions from concept to commissioning for electrical substation projects. It also undertakes entire industrial electrification work from designing to execution. Emco offers information technology solutions for power distribution management. Through its International Division, EMCO offers transformers and energy meters confirming to international specifications. Credit Analysis and Research Limited downgraded Emco's senior unsecured debt from A to BB on April 1, 2004. ESSAR OIL: Starts Production at Vadinar Refinery ------------------------------------------------ Essar Oil Limited announced the successful start up of operations at its petroleum refinery at Vadinar in Gujarat, India. The plant will start its trial production with a capacity of 7.5 million tonnes per annum of crude, which will gradually go up to 10.5 million tonnes per annum. This current phase of commissioning comes four months ahead of the originally scheduled date of commissioning, i.e. March 31, 2007. Essar Oil expects to attain production at full capacity in the next two quarters. The Company said that the project cost of INR10,826 crore (US$2.4 billion) is extremely competitive and lower than estimated costs for a green field refinery. The Refinery has been built with state-of-the-art, contemporary technology and will have the capability to produce petrol and diesel suitable for use in India as well as advanced international markets. It will also produce LPG, Naphtha, light diesel oil, aviation turbine fuel and kerosene. It has been designed to handle a diverse range of crude -- from sweet to sour and light to heavy. Shri. Shashi Ruia, Chairman, Essar Group said, "We are delighted at the successful commissioning of Essar Oil's Refinery at a time when India is strengthening its presence in global markets and integrating with the global economy. The refinery signals our commitment to the nation to be a strong and dominant force in core sectors of the Indian economy. The early commissioning is also a tribute to the employees of the Essar Group and its business associates for their unstinted efforts". The refinery comes at a most opportune time and will fulfill the gap between worldwide demand and supply in the petroleum sector. Currently, refineries the world over, are operating at over 98 percent capacity utilization. Significantly, there has been no addition to refining capacities in the last three years and planned new capacities are not expected to come up before the end of 2008. Essar Oil's refinery is supported by dedicated infrastructure that includes utilities, terminals, crude intake and product evacuation facilities. These include: -- Vadinar Oil Terminal, which has an integrated facility to receive crude through a Single Point Mooring system and dispatch of finished petroleum products through its product jetty. The Terminal can handle 32 million tonnes per annum of crude intake with a capability of handling tankers up to 350,000 DWT and product dispatch facilities with an annual capacity of 14 million tonnes. The Terminal includes a port, a tank farm, associated pipeline network and storage & dispatch facilities. The Terminal has been built at a cost of INR2,857 crore (US$635 million). -- Vadinar Power Company, which generates 120 MW of power at its co-generation plant and feeds both power and process steam for the refinery. -- Essar Constructions had a major role in the engineering, planning and construction of the entire refinery and had meticulously planned and executed the entire project in record time. Essar Constructions has over 1000 highly qualified technical and skilled manpower, besides the 16,000 people who worked at the refinery site during the project phase. The Essar Group believes that the synergies and advantages of the construction business have been a distinct advantage in building this petroleum complex. Marketing The Company's products will have a ready market both internationally and in India. The ideal location of the refinery near the Vadinar port ensures easy access to all international markets including Europe and the USA. The Company's strategy of commissioning its retail outlet in advance of the commissioning of the refinery ensures a ready outlet for its products in India. The Company will also be in a position to supply to bulk consumers. Essar Oil has already commissioned over 900 retail outlets and expects to have 1500 outlets fully operational by the end of March 2007. About Essar Oil Ltd. Headquartered in Jamnagar, India, Essar Oil Limited -- http://www.essar.com-- is engaged in the exploration, production and marketing of oil and gas. The company's principal activities are developing, exploring, producing and refining oil and gas. Vadinar Power Company Limited is a wholly owned subsidiary of the company. On August 23, 2005, CRISIL Ratings reaffirmed the outstanding "D" rating on the INR5.65-billion and INR2-billion Non- Convertible Debenture programmes of Essar Oil Limited. The rating indicates that the instruments are in default. GENERAL MOTORS: Boosting Argentine Car Output by 12% in December ---------------------------------------------------------------- General Motors Corp. will increase its car production in Argentina by 12% in December, the Argentine Economy Ministry said in a statement. Dow Jones Newswires relates that executives of General Motors met with Felisa Miceli -- Argentina's Economic Minister -- and Miguel Peirano, the Industry Secretary, to present the firm's expansion plan in the nation. General Motors said in a statement that the plan includes a production increase to 450 units per day from 390. General Motors and the Economy Ministry told Dow Jones that General Motors has 2,000 workers in its plant in Rosario. The production boost will create 120 extra jobs at the plant and 400 new jobs in the area. Dow Jones underscores that General Motors produces compact and station wagon models Chevrolet Corsa Classic and Chevrolet Corsa II in Rosario. It manufactures sports utility vehicle Suzuki Gran Vitara for the domestic and Latin American markets. Pedro Betancourt, spokesperson of General Motors, told Dow Jones, "The constant growth of (Argentina's) domestic market gave us enough confidence to decide to increase production of our Chevrolet models in Rosario." General Motors implemented in September a 40% production increase GM implemented in September, Dow Jones states. About General Motors General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the world's largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM employs about 317,000 people around the world. It has manufacturing operations in 32 countries, including India, Mexico, and its vehicles are sold in 200 countries. * * * As reported in the Troubled Company Reporter - Asia Pacific on Nov. 17, 2006, Standard & Poor's Ratings Services assigned its 'B+' bank loan rating to General Motors Corp.'s proposed US$1.5 billion senior term loan facility, expiring 2013, with a recovery rating of '1'. The 'B+' rating was placed on Creditwatch with negative implications, consistent with the other issue ratings of GM, excluding recovery ratings. According to TCR-AP on Nov. 16, 2006, Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the proposed US$1.5 Billion secured term loan. The term loan is expected to be secured by a first priority perfected security interest in all of the US machinery and equipment, and special tools of GM and Saturn Corporation. ================= I N D O N E S I A ================= ANEKA TAMBANG: Eyes Financing For US$2.65-Billion Projects ---------------------------------------------------------- PT Aneka Tambang Tbk is looking for means to finance US$2.65 billion worth of projects, Reuters News says, citing local paper Bisnis Indonesia. According to Bisnis Indonesia, Aneka Tambang President Director Dedi Aditya Sumanagara said that 65% of the financing would come from loans and the rest from equity. Reuters relates that the financing will be used to build a US$300-million chemical grade alumina plant in Tayan with an annual capacity of 300,000 tonnes, and a 600,000 tonne-smelter grade alumina plant on Bintan island for US$250 million. It will also be used to finance a US$98-million joint venture iron cap project with state-owned steel maker PT Krakatau Steel and Transasia with a 2-million tonne annual capacity, the report says. According to Reuters, the company also plans to spend US$800 million on building a fourth ferro-nickel smelter with an annual capacity of 40,000 tonnes. In addition, Mr. Sumanagara said the company was in talks with Australian and Japanese firms to finance a US$1.2-billion hydromelt project with a capacity of 40,000 tonnes a year, the report adds. He said that if the discussions go well, the feasibility study will begin in 2009. PT Aneka Tambang Tbk -- http://www.antam.com/-- mines, processes, develops, and explores natural deposits. The company operates six mines. They are located in Riau (bauxite), Sulawesi and Maluku (nickel), Central Java (iron sand), and West Java (gold). The company also operates a precious metal refinery and a geology unit in Jakarta. As the Troubled Company Reporter - Asia Pacific reported on December 19, 2005, Moody's Investors Service changed the outlook for Aneka Tambang's local currency B1 corporate family rating to positive from stable. The B2 foreign currency bond rating remains unchanged with a positive outlook, which is in line with the positive outlook for Indonesia's sovereign rating. Standard & Poor's Ratings Services gave Aneka Tambang 'B' long- term local and foreign issuer credit ratings, effective Aug. 26, 2003. BANK MANDIRI: Posts IDR1.19-Tril. Net Income for 9-Month Period --------------------------------------------------------------- PT Bank Mandiri disclosed financial results for the nine-month period ended September 30, 2006. For the 2006 nine-month period, the bank reported net income of IDR1.19 trillion, compared with the IDR1.23-trillion net income reported for the nine-month period ended September 30, 2005. As of September 30, 2006 the bank's balance sheet showed total assets of IDR253.71 trillion and total liabilities of IDR229.33 trillion, resulting to a total stockholders' equity of IDR24.38 trillion. Bank Mandiri financial report, in Indonesian, for the nine-month period ended Sept. 30, 2006, is available for free at: http://bankrupt.com/misc/BANK_MANDIRI_FINANCIAL.pdf Bank Mandiri -- http://www.bankmandiri.co.id/-- is Indonesia's largest and best capitalized bank in terms of assets, loans and deposits, and provides comprehensive financial services to more than six million corporate and individual consumers, as well as small and medium-sized enterprises in Indonesia. According to a report by the Troubled Company Reporter - Asia Pacific on May 29, 2006, Moody's Investors Service had upgraded the Bank's subordinated debt rating to Ba3 from Ba1, and its senior debt rating to Ba3 from Ba1, on higher foreign currency bond ceilings. BERAU COAL: To Market US$325-Million Bonds ------------------------------------------ PT Berau Coal plans to issue US$325 million in bonds and will begin marketing the two-part deal this week, Reuters News reports, citing a market source. According to the report, the deal comprises five-year fixed-rate bonds and five-year amortizing floating rate notes. Reuters notes that Berau Coal would hold investor presentations in Asia, Europe and the United States starting November 28. As reported by the Troubled Company Reporter - Asia Pacific on Nov. 27, 2006, Moody's Investors Service has assigned a provisional P(B1) rating to the proposed US$325 million senior secured bond to be issued by Empire Capital Resources Pte Limited, which is 100% owned and guaranteed by Berau. Fitch Ratings, meanwhile, assigned an expected rating of 'B+' and an expected recovery rating of 'RR4' to the proposed senior unsecured notes. Headquartered in East Kaliman, PT Berau Coal -- http://www.beraucoal.co.id/-- is Indonesia's fifth largest producer and exporter of thermal coal. It operates three active mines at a single site in East Kalimantan. It has estimated resources of 654.2 million tons with probable reserves estimated at 61.6mt and proven mineable reserves of 127.6mt. On Nov. 24, 2006, Moody's Investors Service has assigned a provisional (P) B1 corporate family rating to PT Berau Coal. At the same time, Moody's has assigned a provisional P(B1) rating to the proposed 5-year, US$325 million senior secured bond to be issued by Empire Capital Resources Pte Limited, which is 100% owned and guaranteed by Berau. The rating outlook is stable. This is the first time that Moody's has assigned a rating to Berau. "Fitch Ratings has assigned 'B+' Long-term foreign and local currency Issuer Default ratings to Berau Coal." ========= J A P A N ========= HIROSHIMA BANK: Fitch Upgrades Individual Rating to 'C' from 'D' ---------------------------------------------------------------- Fitch Ratings has upgraded Hiroshima Bank's Long-term foreign and local currency Issuer Default ratings to 'BBB+' from 'BBB' and Individual rating to 'C' from 'D'. At the same time, the bank's Short-term foreign and local currency IDRs and Support rating were affirmed at 'F2' and '2', respectively. The Outlook on the ratings is Stable. Hiroshima's upgrade reflects the improvement in its balance sheet integrity, such as capitalization and asset quality, as well as its profitability. Since its lowest point at end-March 2002 when its Tier 1 capital less deferred tax assets was 2%, the bank's capital position has improved. At end-September 2006, the comparative ratio was above 6%. For the same period, asset quality improved significantly; disclosed problem loans less reserves fell to slightly above 30% of the bank's Tier 1 capital from 85%. While the reduction in loan loss charges has been the main driver behind increased internal capital generation, Hiroshima issued preferred securities of JPY30 billion in September 2006, which helped increase Tier 1 capital by nearly 20% in the half year to September 2006. Like other regions in Japan, the economic recovery in Hiroshima's home base has been patchy. While its net interest margin remains low, commission income, from the sale of non- deposit products, such as investment trusts and annuities, has driven an increase in operating profitability. This trend is expected to continue until the yen interest rate rises considerably, to the point where banks like Hiroshima will be able to take advantage of better spreads and thus more effectively utilize their large retail deposit base for low-cost funds. The challenge Hiroshima now faces is renewed competition with Momiji Bank (rated 'BBB+' and 'D'), which formed Yamaguchi Financial Group with Yamaguchi Bank (rated 'BBB+' and 'C'), and has a dominant position (nearly 50% in loan market share) in the neighbouring prefecture. Hiroshima is the seventh-largest in terms of total assets among Japan's operating regional banks. It has a dominant position in Hiroshima prefecture with a market share of c.30% in the local loan market. JAPAN AIRLINES: Delays Jet Order Until 2007 Due to Finances ----------------------------------------------------------- As reported by the Troubled Company Reporter - Asia Pacific on November 22, 2006, Japan Airlines Corp. had planned to order as many as 15 regional jets as it seeks to regain the lead in the domestic air travel market. The TCR-AP report noted that Japan Airlines was considering whether to source from Bombardier Inc. or Empresa Brasileira de Aeronautica SA, and that the final decision is not expected to come out until the end of the fiscal year. Bloomberg News had said that the order could be as much as US$525 million. In an update, however, Flight Global relates that JAL is delaying its plan to acquire 10 to 15 large regional jets as it struggles to get its financial house in order. Flight Global recounts that JAL issued a request for proposals to Bombardier and Empresa in September, seeking offers on 70- to 90-seat regional jets, and a mid-October deadline was given. Although JAL did not put a timeframe on when it might take a decision, one was expected by the end of this calendar year, the report says. But because JAL's finances are still in disarray, the airline has delayed a decision until at least early next year, Flight Global relates, citing industry sources in Japan. Sources also added that a more realistic timeframe is March 2007. JAL, according to the report, is unable to confirm if a decision has been deferred, saying only that there was no timeframe on when an order would be placed, if at all. It has also not said how many aircraft it is interested in acquiring, although it is believed to be roughly 10 to 15. About Japan Airlines 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. Japan Airlines flies to the United States, Brazil and France. * * * The Troubled Company Reporter - Asia Pacific reported on October 10, 2006, that Moody's Investors Service affirmed its Ba3 long-term debt ratings and issuer ratings for both Japan Airlines International Co., Ltd and Japan Airlines Domestic Co., Ltd. The rating affirmation is in response to the planned restructuring of the Japan Airlines Corporation group on Oct. 1, 2006 with the completion of the merger of JAL's two operating subsidiaries, JAL International and Japan Airlines Domestic. JAL International will be the surviving company. The rating outlook is stable. Meanwhile, 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. 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. MITSUBISHI MOTORS: Secures US$485-Million Bank Loan --------------------------------------------------- Mitsubishi Motors Corp. has secured a JPY56-billion (US$485 million; GBP250 million) loan as it continues its efforts to improve its finances and turn itself around, BBC News reports. According to Malaysia Star, Mitsubishi Motors had secured the loan from a group of financial institutions led by the Bank of Tokyo-Mitsubishi UFJ. The loan is being co-managed by the Mitsubishi UFJ Trust and Banking Corp., BBC relates. Malaysia Star says that the syndicated loan is part of the company's fund-raising plans, which it announced two years ago in a revamped restructuring after DaimlerChrysler AG decided to end financial assistance amid a massive recall scandal, and the Mitsubishi group took the lead in providing help. Moreover, the report notes that the loan will help fund the development of cars. The automaker said that through the loan, it had obtained some 10% more in funds than originally sought and added seven new creditors, with 31 firms taking part in it. In January 2005, Malaysia Star recounts, Mitsubishi Motors said it had planned to obtain some JPY270 billion in funding in the period until March 2008. The company hopes to return to profit for the full financial year ending March 2007, BBC news adds. About Mitsubishi Motors Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation -- http://www.mitsubishi-motors.co.jp/-- is one of the few automobile companies in the world that produces a full line of automotive products ranging from 660-cc mini cars and passenger cars to commercial vehicles and heavy-duty trucks and buses. The company also operates consumer-financing services and provides this to its customer base. MMC adopted the "Mitsubishi Motors Revitalization Plan" on January 28, 2005, as its three- year business plan covering fiscal 2005 through 2007, after investor DaimlerChrysler backed out from the company. The main objectives of the plan are "Regaining Trust" and "Business Revitalization." The company has operations worldwide, covering the United States, Germany, the United Kingdom, Italy, the Netherlands, the Philippines, Indonesia, Malaysia, China and Australia. Its products are sold in over 170 countries. As reported by the Troubled Company Reporter - Asia Pacific on September 29, 2006, Standard & Poor's Ratings Services raised its long-term corporate credit and senior unsecured debt ratings on Mitsubishi Motors Corp. to B- from CCC+, reflecting progress in the company's revitalization efforts and reduced downside risks in its earnings and financial profile. The outlook on the long-term rating is stable. The TCR-AP, on August 4, 2006, reported that Rating & Investment Information Inc. has upgraded its issuer rating on Mitsubishi Motors Corp. from CCC+ to B with a stable outlook and its commercial paper rating from c to b, and has removed the rating from its monitor at the same time. An earlier TCR-AP report on July 19, 2006, stated that Japan Credit Rating Agency, Ltd. upgraded the rating of Mitsubishi Motors Corp.'s senior debts to BB- from B-, with a stable outlook. The agency also affirmed the NJ rating on CP program of the company, while upgrading its rating on the Euro Medium Term Note Program of MMC and subsidiaries Mitsubishi Motors Credit of America, Inc. and MMC International Finance (Netherlands) B.V. to B+ from CCC. MITSUBISHI MOTORS: Releases Oct. 2006 Production & Sales Results ---------------------------------------------------------------- Mitsubishi Motors Corporation announced global production, as well as domestic sales and export results for October 2006. Total global production came in at 108,087 units, a decline of 6.3% from a year ago period. Japanese production increased 16.6% year-on-year to 68,389 units. Total vehicle sales in Japan reached 18,154 units, a 22.2% rise over the October 2005 total, marking the eighteenth consecutive month of year-on-year sales gains. Registered vehicles charted sales of 5,285 units, 89.9% of the year-ago figure. Mini-car sales continued year-on-year growth increasing to 12,869 units, 143.4% of the total for October 2005. Sales of the new eK Wagon series and "i" models contributed to this growth. Total sales for passenger cars rose 41.6% year-on-year to 13,895 units, while commercial vehicle sales dropped to 4,259 units, 15.5% less than the same period last year. Overseas production totaled 39,698 units, 70.0% of the year-ago figure. European production increased 32.6% to 5,670 units of last year's total due to good sales of Colt series. North American production came in at 9,425 units, a 6.9% rise year-on- year due to an increase in production of the Galant export model. Asian production totaled 21, 211 units, a 45.0% decline from October 2005's levels, representing continued weakness in Asian markets such as Indonesia, Malaysia and Taiwan, where economic conditions are not favorable for the industry. Total exports from Japan declined to 27,411 units, 82.6% of the year-ago level. Exports to Europe decreased to 9,488 units, 76.7% of the level seen last year due to lower sales of Pajero and Outlander (Airtrek) models which will undergo model changes this fiscal year. Exports to Asia came to 1,039 units, 31.0% of the last-year period due to unfavorable economic conditions in the countries mentioned above. Exports to North America rose to 3,514 units, 108.7% of the October 2005 total due to healthy orders of the new Outlander model in the U.S. market. About Mitsubishi Motors Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation -- http://www.mitsubishi-motors.co.jp/-- is one of the few automobile companies in the world that produces a full line of automotive products ranging from 660-cc mini cars and passenger cars to commercial vehicles and heavy-duty trucks and buses. The company also operates consumer-financing services and provides this to its customer base. MMC adopted the "Mitsubishi Motors Revitalization Plan" on January 28, 2005, as its three- year business plan covering fiscal 2005 through 2007, after investor DaimlerChrysler backed out from the company. The main objectives of the plan are "Regaining Trust" and "Business Revitalization." The company has operations worldwide, covering the United States, Germany, the United Kingdom, Italy, the Netherlands, the Philippines, Indonesia, Malaysia, China and Australia. Its products are sold in over 170 countries. As reported by the Troubled Company Reporter - Asia Pacific on September 29, 2006, Standard & Poor's Ratings Services raised its long-term corporate credit and senior unsecured debt ratings on Mitsubishi Motors Corp. to B- from CCC+, reflecting progress in the company's revitalization efforts and reduced downside risks in its earnings and financial profile. The outlook on the long-term rating is stable. The TCR-AP, on August 4, 2006, reported that Rating & Investment Information Inc. has upgraded its issuer rating on Mitsubishi Motors Corp. from CCC+ to B with a stable outlook and its commercial paper rating from c to b, and has removed the rating from its monitor at the same time. An earlier TCR-AP report on July 19, 2006, stated that Japan Credit Rating Agency, Ltd. upgraded the rating of Mitsubishi Motors Corp.'s senior debts to BB- from B-, with a stable outlook. The agency also affirmed the NJ rating on CP program of the company, while upgrading its rating on the Euro Medium Term Note Program of MMC and subsidiaries Mitsubishi Motors Credit of America, Inc. and MMC International Finance (Netherlands) B.V. to B+ from CCC. MIZUHO FINANCIAL: To Issue Securities to Raise JPY400BB Capital --------------------------------------------------------------- Mizuho Financial Group Inc. is planning to boost its capital by JPY400 billion (US$3.5 billion) through an issue of preferred subscription securities, Reuters reports, citing the Nihon Keizai Shimbun business daily. According to MarketWatch, Mizuho Financial has decided to issue preferred securities in Japan as early as in the new year via a special purpose company. The issue is expected to increase Mizuho's Tier-1 core capital. However, MarketWatch notes, Mizuho has not yet decided on the amount of the preferred securities, which will not be converted into common stocks of the company and will not carry voting rights. Reuters notes that Mizuho has finished repaying the public funds it received in bailouts in the 1990s and is expanding its operations abroad. It has also been trying to bring the quality of its capital in line with those of leading European and U.S. banks, MarketWatch adds. MarketWatch states that Mizuho is believed to have approached Dai-ichi Mutual Life Insurance Co., Nippon Life Insurance Co. and other life insurers to purchase preferred subscription securities that pay higher dividends. About Mizuho Financial Group Headquartered in Tokyo, Japan, Mizuho Financial Group, Inc. -- http://www.mizuho-fg.co.jp/english/-- is a financial institution. The company primarily is engaged in the banking, trust, securities, asset management and credit card businesses, as well as the investment advisory business. Through its subsidiaries, Mizuho Financial Group also is engaged in the consulting, system management, credit guarantee, temporary staffing and office work businesses, among others. Its main subsidiaries and associated companies include Mizuho Bank, Ltd., Mizuho Trust & Banking Co. (USA), Mizuho Trust & Banking (Luxembourg) SA, Mizuho Corporate Bank, Ltd., Mizuho Trust & Banking Co., Ltd., Mizuho Private Wealth Management Co., Ltd., Mizuho Financial Strategy Co., Ltd., Mizuho Capital Markets Corporation, Mizuho Securities Co., Ltd., Mizuho Bank Switzerland Ltd., Mizuho International plc., Mizuho Securities USA, Inc. and Mizuho Investors Securities Co., Ltd. The company has 130 consolidated subsidiaries and 19 associated companies. The Troubled Company Reporter - Asia Pacific reported on November 28, 2005, that Moody's Investors Service upgraded to D+ from D- the bank financial strength ratings of the banks in the Mizuho Financial Group -- Mizuho Bank, Ltd.; Mizuho Corporate Bank, Ltd.; and Mizuho Trust & Banking Co., Ltd. Additionally, on February 8, 2006, Fitch Ratings assigned a C individual rating to Mizuho Financial. ========= K O R E A ========= HANAROTELECOM: Signs MOU with SK Comm. to Enhance HanaTV -------------------------------------------------------- hanarotelecom Inc. signed a memorandum of understanding with SK Communications Co. with the aim at improving the competitiveness of its HanaTV triple-play service, The Korea Herald reports. HanaTV, which was launched in July 2006, is a video-on-demand service via the Internet. Its users can download movies, shows and other contents from the Internet and watch them on TV. Under the MOU, hanarotelecom will create a new channel to selectively offer Cyworld's "Stage" service, the Korean newspaper states. The service will allow amateur film directors, authors and musicians to freely upload their own video clips, digital photos, music or reviews. hanarotelecom and SK Communications companies agreed to support these amateurs and conduct joint promotion campaigns. About hanarotelecom hanarotelecom Inc. -- http://www.hanaro.com/-- is the second largest player in the Korean local telephone market. It provides high-speed Internet services in Korea. It provides high-speed Internet services in Korea. In June 2001, the company integrated broadband Internet access services which included ADSL, Hybrid Fiber Coaxial cables and Broadband Wireless Local Loop into a single brand called HanaFOS. hanarotelecom offers VoIP services to its broadband business customers as a bundled service and also as a stand alone service. * * * Moody's Investor Service has given hanarotelecom's long-term corporate family and senior unsecured debt 'Ba2' ratings. Standard and Poor's gave both hanarotelecom's long-term foreign issuer credit and long-term local foreign issuer credit 'BB' ratings. Fitch Ratings assigned hanarotelecom a Long-term foreign currency Issuer Default rating of 'BB'. The rating Outlook is Stable. HYUNDAI MOTOR: To Sell 10,000 Sonata Taxis to ComfortDelGro ----------------------------------------------------------- Hyundai Motor signed a contract to sell about 10,000 Sonata taxis to Singapore's ComfortDelGro, Korea Government's Web site, Korea.net, reports. Hyundai Motor will sell the diesel-powered Sonata taxis to Singaporean transportation company from 2006 over four years. "The deal is expected to improve Hyundai Motor's brand awareness and help gain sales in Southeast Asia," the Web site states citing a Hyundai Motor statement. About Hyundai Motor Headquartered in Seoul, South Korea, Hyundai Motor Company -- http://www.hyundai-motor.com/-- has been selling cars in the United States since 1986, but it only started selling its heavy trucks stateside in 1998. Hyundai produces 14 models of cars and minivans, as well as trucks, buses, and other commercial vehicles. The Company reestablished itself as Korea's leading carmaker in 1998 by acquiring a 51% stake in Kia Motors -- since reduced to about 45%. The Company also manufactures machine tools for factory automation and material- handling equipment. The Troubled Company Reporter - Asia Pacific reported that the Hyundai Automotive Group is facing its deepest crisis since chairman Chung Mong-koo took over in 1999, with problems like the falling United States dollar, high oil prices and union demands aggravated by a sweeping criminal investigation regarding the carmaker's alleged creation of slush funds that were used by at least two lobbyists to bribe government officials for business favors, including having KRW55 billion of Hyundai's bad debts written off. Chairman Chung has been indicted early in May 2006 for fraud charges. Some of the group's official business has been on hold since the probe on the slush fund started and several top executives were summoned for questioning. LG CARD: To Finalize Shinhan Acquisition Price on Dec. 15 --------------------------------------------------------- Shinhan Financial Group will agree on a final acquisition price for LG Card Co. with LG's largest creditor, Korea Development Bank, on December 11, Yonhap News reports, citing a KDB official. The Troubled Company Reporter - Asia Pacific reported on August 17, 2006, that Shinhan was chosen to enter exclusive negotiations for LG Card after offering to buy an 85.7% stake at KRW68,410 per share, costing an aggregate of KRW6.7 trillion. Subsequently, Shinhan commenced negotiations for a slash in the acquisition price, according to a TRC-AP report dated Nov. 15. Shinhan came to the conclusion that the acquisition price needs a downward adjustment after it conducted due diligence. The parties are supposed to wrap up their negotiations on Monday but a slight difference of opinion led to the December 11 extension, the KDB official told Yonhap News. About LG Card Co. Headquartered in Seoul Korea, LG Card Co. -- http://www.lgcard.com/-- provides installment finance services and credit card, as well as leasing services to credit worthy companies while acquiring valuable assets from merchant banks and leasing firms. LG Card also finances families wishing to purchase big ticket items such as automobiles, appliances and computers. At the end of October 2003, LG Card had KRW3.24 trillion more debt than assets and had faced threats of liquidity crisis and court receivership. LG Card has been in the hands of creditors since it was rescued from bankruptcy through a KRW5-trillion (US$4.78 billion) debt-for-equity swap and a further KRW1 trillion bailout in late 2004. Creditors are hoping to recover the bailout amount through a sale of the credit card issuer in 2006. LG CARD: Delinquency Rate in October 2006 Goes Down --------------------------------------------------- LG Card Co.'s delinquency rate on loans more than 30 days past due and refinanced debt went down 0.09 percentage point in October to 5.43% from a month earlier, Yonhap News reports, citing the company's regulatory filing. The delinquency rate is an indicator of the company's loan quality, the Korean newspaper explains. According to the filing, LG Card spent KRW34.6 million writing off bad loans in October, down 48.1% from the previous month. About LG Card Co. Headquartered in Seoul Korea, LG Card Co. -- http://www.lgcard.com/-- provides installment finance services and credit card, as well as leasing services to credit worthy companies while acquiring valuable assets from merchant banks and leasing firms. LG Card also finances families wishing to purchase big ticket items such as automobiles, appliances and computers. At the end of October 2003, LG Card had KRW3.24 trillion more debt than assets and had faced threats of liquidity crisis and court receivership. LG Card has been in the hands of creditors since it was rescued from bankruptcy through a KRW5-trillion (US$4.78 billion) debt-for-equity swap and a further KRW1 trillion bailout in late 2004. Creditors are hoping to recover the bailout amount through a sale of the credit card issuer in 2006. * FTA Could Raise Yearly Korean Auto Exports by US$900 Million -------------------------------------------------------------- Korean automobile exports to the United States could rise by nearly US$900 million a year if a bilateral free trade agreement lifts all duties on them, Korea.net cites a report by Korea Institutes for Industrial Economics and Trade. The report further noted that if tariffs are eliminated immediately: -- Korean exports to the United States could to expand by US$860 million in the first year, up 10.7% from shipments without an FTA; and -- imports from the U.S. could increase by 115% to US$115 million. "The numbers are based on the assumption that all tariffs on autos are scrapped," the government Web site quotes Lee Hang- koo, a KIET researcher and author of the report, as saying. South Korea and the U.S. will hold a meeting on December relating to the FTAs. =============== M A L A Y S I A =============== AMBANK BERHAD: Fitch Affirms C/D Individual Rating Amid ANZ Buy --------------------------------------------------------------- Fitch Ratings affirmed the ratings of Malaysia's AmBank Berhad -- formerly Arab-Malaysian Bank -- on November 27, 2006. Ratings affirmed are: -- Long-term Issuer Default rating at BBB-; -- Short-Term Issuer Default Rating at F3; -- Individual Strength Rating at C/D; and -- Support Rating at 3. While the Outlook on the ratings is still Stable, Fitch expects this association to have positive implications for AmBank in the medium term. The rating action were made following the announcement that the Australia and New Zealand Banking Group would be acquiring a 13.5% stake in AMMB Holdings -- the parent company of AmBank. Under the agreement, ANZ Bank will subscribe for MYR500 million worth of convertible preference shares issued by AMMB Holdings and MYR575 million following the announcement that the Australia and New Zealand Banking Group would be acquiring a 13.5% stake in AMMB Holdings worth of bonds issued by AmBank exchangeable into new shares in the holding company. In addition, ANZ Bank is in exclusive negotiations with Arab- Malaysian Corporation Berhad, the ultimate parent, to purchase additional shares in AMMB Holdings to further raise its stake to around 25%. The deal is subject to a two week due diligence period as well as shareholder and regulatory approval, expected by early 2007. With the capital injection, AmBank's projected Tier 1 and total capital adequacy ratios should improve to c.10.8% and 13.9% respectively as compared with 9.2% and 12.8% at September 2006. This is line with Fitch's expectations that the bank would take steps to bolster its capital to a level commensurate with its BBB- Long-term IDR, following an upgrade in December 2005 after its merger with the larger and financially stronger AmFinance. That said, the bank's balance sheet strength remains relatively weak; its gross NPL ratio and reserves coverage was 11.7% and 35.2% respectively compared to the industry's 8.4% and 52.6%. Going forward, future upgrades would hinge upon a successful resolution with regards to the bank's legacy problem assets as well as continuous capital strengthening. The entry of ANZ as a strategic partner with board representation and management involvement is expected to facilitate access to global best practices in terms of risk management and technology, placing AmBank in a stronger position to cope with greater domestic and foreign competition ahead of further bank liberalization measures. Fitch will perform a comprehensive review of the bank in the coming months as details of the deal are finalized. AmBank is the sixth-largest Malaysian bank with total assets of MYR51.6 billion and is also the largest and the most important component of AMMB Holdings, Malaysia's fifth-largest banking group. AmBank's current principal ultimate shareholders are the publicly listed AmCorp and the state controlled Employees Provident Fund. AMSTEEL CORP: Incurs MYR7.48 Million in Sept. 2006 Quarter ---------------------------------------------------------- Amsteel Corporation Bhd posted a MYR7.484-million net loss on MYR73.504 million revenues in the first quarter ended Sept. 30, 2006, as compared with the MYR1.0-million net profit on MYR89.19 million revenues recorded in the same quarter last year. As of September 30, 2006, Amsteel's consolidated balance sheet reflected strained liquidity with MYR1.09 billion in current assets available to pay MYR1.55 billion in current liabilities coming due within one year. Total assets of the company at the end of the September 2006 quarter reached MYR3.484 billion while liabilities aggregated MYR3.258 billion. Shareholders' equity in the company totaled MYR226.125 million. A full-text copy of the company's financial reports for the quarter ended September 30, 2006, can be viewed for free at: http://bankrupt.com/misc/AMSTEEL-1Q-07.xls * * * Headquartered in Kuala Lumpur, Malaysia, Amsteel Corporation Berhad is involved in the provision of plantation management, property development, management and contractor; hotel operation and food court. The Company is also involved in transportation and logistic services, department stores, nominee services, trading securities, manufacture and sale of tools, dies, tyres, rubber compound, light trucks and buses, financial management; distributes steel products, develops real estate property; cultivation of rubber and oil palm, golf and country club, sale and distribute Suzuki motorcycles, beer brewing and mineral water bottling. As of June 30, 2006, the Company's accumulated losses reached MYR2,119,522,000. The Company was classified under Bursa Malaysia Securities Berhad's Amended Practice Note 17 category and is required to submit and implement a financial regularization plan to avert delisting procedures. CRIMSON LAND: Cuts Net Loss to MYR20,000 in First Quarter 2006 -------------------------------------------------------------- Crimson Land Bhd posted a MYR20,000 net loss on MYR30 million revenues in the first quarter of fiscal year ending June 30, 2007, as compared with the MYR5.5-million net loss on MYR14.49 million in revenues it incurred in the same period last year. The company's consolidated balance sheet as of September 30, 2006, showed current assets at MYR222.14 million and MYR76.18 million in current liabilities. As of September 30, 2006, Crimson Land's balance sheet reflected insolvency with MYR471.253 million in total assets and MYR472.70 million in total liabilities. Shareholders' deficit in the company reached MYR1.44 million. A full-text copy of the company's financial statements for the quarter ended September 30, 2006, can be viewed for free at: http://bankrupt.com/misc/crimson.xls * * * Headquartered in Kuala Lumpur, Malaysia, Crimson Land Berhad's activities are property development, maintenance, investment and rental services. The Company is also into investment holding, property cultivation, growing and trading of marine products, rental of promotional space, management services and investment holding. The Group operates in Malaysia. Crimson Land is currently classified under the Amended-PN17 Companies List of the Bursa Malaysia Securities Bhd. SILVERSTONE CORP: Posts MYR8.4MM Net Loss in Sept. 2006 Quarter --------------------------------------------------------------- Silverstone Corp Bhd incurred a MYR8.41-million net loss on MYR122.24 million in revenues in the quarter ended September 30, 2006, as compared with the MYR4.63-million net loss on MYR126.75 in million revenues it recorded in the same period last year. The company's consolidated balance sheet as of Sept. 30, 2006, showed strained liquidity with MYR312.53 million in current assets available to pay MYR380.98 million in current liabilities coming due within the next 12 months. Silverstone's total assets as of September 30, 2006, amounted MYR1.021 billion while total liabilities was at MYR783.91 million. Shareholders' equity in the company totaled MYR237.65 million. A full-text copy of Silverstone Corp.'s financial statement for the first quarter ended September 30, 2006, can be viewed for free at http://bankrupt.com/misc/silvermay3q.xls * * * Silverstone Corp Bhd's principal activities are the manufacture and sale of tires, retreading tires, rubber compound, rubber related products and motorcycle parts and accessories, electroplating of motorcycle absorbers and sale and distribution of motor vehicles. Other activities include investment holding, treasury business, research and development and provision of training services. Operations are carried out in Malaysia, China and other countries. Silverstone is currently classified under the Amended-PN17 Companies List of the Bursa Malaysia Securities Bhd. TENCO BHD: Gains MYR21,000 Net Profit in Second Quarter 2006 ------------------------------------------------------------ Tenco Bhd earned MYR21,000 net profit on MYR17.65 million in revenues in the second quarter ended September 30, 2006, as compared with the MYR30,000 net profit on MYR15.53 million in revenues in the