/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/060324.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, March 24, 2006, Vol. 9, No. 060 Headlines A U S T R A L I A & N E W Z E A L A N D AUSTRALIAN ACCOMMODATION: Prepares to Close Shop AWB LIMITED: Execs Recalled Before Cole Inquiry into Scandal BAROSSA RURAL: Members to Receive Wind-up Details BRENT ATKINSON: Faces Liquidation Proceedings CALNOB PTY: Names Barry Taylor as Liquidator CARTER HOLT: S&P Withdraws Credit Ratings After Rank Takeover CENTAGROUP PTY: To Distribute Final Dividend CREATIVE PRINT: Prepares for Dissolution DE KERSIVIEN PTY: Enters Voluntary Liquidation DORAN CONSTRUCTIONS: To Hold Final Meeting Today ENGINEERING RESOURCES: Concludes Liquidation of Assets EXPORATE PTY: Inability to Pay Debts Prompts Wind-up FISHER DRAINAGE: Members Agree to Shut Down Business FORESTRY CUSTODIANS: Receiver and Manager Steps Down GDC COMMUNICATIONS: Directors Place Firm Under Receivership GO SHAPE UP: Applies for Removal from NZ Register HERMES MANUFACTURING: In Final Phase of Liquidation INDUSTRIAL SHADE: Members and Creditors to Discuss Wind-up J.M. COUGHLAN: Winds Up Operations JAMES HARDIE: Contests AU$412 Million Revised Tax Bill KATHERINE SUPPLIERS: Placed Under Voluntary Liquidation K. B. TRANSPORT: Poised to Exit from NZ Register MEDIA PRESS: To Pay Dividend to Creditors MIRABELLA PRODUCTIONS: Liquidator to Explain Wind-up Report MYER LIMITED: David Jones Contemplates Buying 12 Myer Stores NATIONAL AUSTRALIA: Prosecutors Want Ex-NAB FX Trader Jailed PREMUIM WINE: Supreme Court Appoints Liquidator PRG GROUP: Banking on U.K.-based PowerHouse's Turnaround QANTAS AIRWAYS: Reinforces Commitment to Maintenance Workers REDAN DEVELOPMENTS: Court Issues Wind-up Order TOTAL AUTOMOTIVE: Appoints Receivers and Managers TOUMA SHIRTS PTY: Creditors OK Liquidator's Appointment VIPWOOD PTY: To Declare Dividend Today WARATAH HOLDINGS: Liquidator Wants Firm Removed from NZ Register WARWICK J TILLER: Court to Hear CIR's Petition on March 27 YABBA YABBA PTY: Members Resolve to Wind Up Firm * ASIC Commences Court Proceedings Against Melbourne Liquidator C H I N A & H O N G K O N G ASIA ALUMINUM: Employs ING Bank to Advise on Buyout CHINA FOCUS: Court Issues Wind-Up Order FORTRESS INTERNATIONAL: Prepares to Close Operations FORTUNE REALTY: To Hold Final Meeting on April 25 GOLD EARTH: Commences Winding Up Proceedings GREAT CENTER: Creditors' Claims Due on April 3 HILL SAMUEL: Members to Receive Wind-Up Details HING ZHAO: Appoints Chang Tung Lian as Liquidator MEI FAI: Enters Voluntary Liquidation MEN'S LEATHER: Faces Bankruptcy Proceedings P.C.S. SERVICES: Set to Shut Down Business PRUTON INTERNATIONAL: Members Resolve to Wind Up Firm SOUTH CHAMP: Starts Winding Up Process SUCCESS LOGISTICS: Court Releases Bankruptcy Order TECHKEY BUILDING: Members to Receive Wind-up Details WOL COMMUNICATIONS: Proofs of Debt Due Next Month I N D I A BPL LIMITED: Sanyo Chief Coming to Take Joint Venture Stake BPL LIMITED: Capital Hike Plan Likely COAL INDIA: Says e-auction Will Boost Coal Sale by 80% GENERAL MOTORS INDIA: Mulls INR100-crore Expansion This Year I N D O N E S I A BANK MANDIRI: FY/2005 Profits Plunge 88.5% BANK MANDIRI: To Further Slash Lending Rates by 0.5% J A P A N BERSON JAPAN: Files for Bankruptcy Due to JPY2.4 Billion Debt JAPAN AIRLINES: Flies Routes Without Required Inspections K O R E A KOREA EXCHANGE: Kookmin Bank to Buy 64.62% Stake in KEB M A L A Y S I A AFFIN HOLDINGS: To Seek Shareholders' OK for General Mandate APEX EQUITY: Buys Back MYR5,774 Worth of Shares BIMB HOLDINGS: Regulator to Consider 'Proposed Go Waiver' BIMB HOLDINGS: Unit Releases FY2006 Key Performance Indicators CONSOLIDATED FARMS: Posts Lower Losses in 4Q/FY05-06 DENKO INDUSTRIAL: Lists and Quotes New Shares HOCK SIN: Directors Block Shareholders' Request KIG GLASS: Chinese Unit Files for Bankruptcy MALAYSIA AIRLINES: Unveils Headline Key Performance Indicators MAXIS COMMUNICATIONS: Future Hangs on Aircel's Hands MAXIS COMMUNICATIONS: Acquires South Asia Shares PROTON HOLDINGS: To Announce New Foreign Partner Next Month PROTON HOLDINGS: Car Prices to Fall With New Policy SBBS CONSORTIUM: Wind-up Petition Hearing Moved to May 10 TELEKOM MALAYSIA: Shares Issued Pursuant to Employees' Scheme P H I L I P P I N E S LAFAYETTE MINING: Gets AU$41.8 Mln Funding to Resume Operations MANILA ELECTRIC: May Increase Power Rates to Service Obligations NATIONAL FOOD: Delays PHP1.6-Bln Project to Seek Private Aid NATIONAL POWER: Consumer Groups Seeks Same Power Rate as Meralco S I N G A P O R E ALLIANCE TECHNOLOGY: Court Extends Judicial Management Order CHANNEL GROUP: Wind-Up Petition Hearing Set Today GHIM PENG: To Hold Meeting on April 7 SPECTRUM INFOCOM: Wind-Up Hearing Slated for March 31 STARTECH ELECTRONICS: Finalizes Maybank Debt Repayment Terms STARTECH ELECTRONICS: Unveils Auditor's Report TRIBO S.E.A. PRIVATE: Concludes Dividend Distribution T H A I L A N D DAIDOMON GROUP: Asked to Submit Rehab Plan to Official Receiver THAI AIRWAYS: Projects Profit Increase in Second Quarter TONGKAH HARBOUR: Unveils Resolutions Passed at Board Meeting * Large Companies With Insolvent Balance Sheets - - - - - - - - ============================================ A U S T R A L I A & N E W Z E A L A N D ============================================ AUSTRALIAN ACCOMMODATION: Prepares to Close Shop ------------------------------------------------ At a general meting of Australian Accommodation & Travel Corporation Pty Limited on February 16, 2006, members agreed that it is in the Company's best interests to wind up its operations. David James Hambleton and Robert Eugene Murphy were appointed to oversee the wind-up. Contact: David J. Hambleton Robert E. Murphy Joint and Several Liquidators R. E. Murphy & Co. Chartered Accountants Level 9, 46 Edward Street Brisbane, Queensland 4000 Australia AWB LIMITED: Execs Recalled Before Cole Inquiry into Scandal ------------------------------------------------------------ AWB Limited's former managing director, Andrew Lindberg, and eight other executives will be recalled before the Cole Inquiry in the next two weeks to again give statements regarding the Iraqi kickback scandal. In addition, eight AWB employees will be called for the first time to testify regarding AWB's alleged payment of almost AU$300 million worth of kickbacks to former Iraqi dictator Saddam Hussein's regime. The Advertiser relates that it is still uncertain whether the Cole Inquiry will summon any federal ministers to answer allegations that they knew about AWB's kickback payments. As reported by the Troubled Company Reporter - Asia Pacific on March 22, 2006, the Cole Inquiry had been informed that Foreign Affairs Minister Alexander Downer and Trade Minister Mark Vaile -- now Deputy Prime Minister -- knew that a Jordanian trucking firm hired by AWB might have funneled money to Iraq in breach of United Nations sanctions before the scandal had erupted. The TCR-AP report says that a member of the Department of Foreign Affairs and Trade's Iraq Task Force told the Cole Inquiry about a confidential diplomatic cable sent by Australia's representative office in Baghdad in June 2003 warning the DFAT and Prime Minister John Howard that all companies dealing with Iraq were paying kickbacks. About AWB AWB Limited -- http://www.awb.com.au/-- is Australia's leading agribusiness and one of the world's largest wheat marketing companies. It is also one of Australia's top 100 publicly listed companies. The Company is the exclusive manager and marketer of all Australian bulk wheat exports through what is known as the Single Desk. The Company markets wheat, and a range of other grains, into more than 50 countries, with Australian wheat exports worth up to $5 billion per year. AWB's footprint includes more than 430 outlets through its subsidiary landmark and has offices across the world. The company employs more than 2,700 staff reaching over 100,000 customers. AWB is also one of the nation's largest suppliers of rural merchandise, distributors of fertilizer, marketers of livestock, brokers of rural real estate and handlers of wool. Previously a low profile organization, AWB made headlines in late 2005 when it was accused of knowingly paying AU$290 million in kickbacks to the Government of Iraq, under Saddam Hussein's administration, through the United Nation's oil-for-food program. A UN report then found out that AWB paid the kickbacks to a Jordanian trucking company linked to Hussein's deposed regime. The Australian Government then appointed a commission, headed by retired judge Terence Cole, to investigate into the Company's role in and the Government's alleged "knowledge" of the scandal. The "Cole Inquiry" is currently underway. The scandal is anticipated to create great political repercussions to the Australian Government, given the country's contribution to military action against President Hussein in the 2003 invasion of Iraq. BAROSSA RURAL: Members to Receive Wind-up Details ------------------------------------------------- The members of Barossa Rural Properties Pty Limited will convene today, March 24, 2006, to receive lLquidator R. A. Ferguson 's account regarding the Company's completed wind-up and disposal of property, and to consider any other matters that may be brought before the meeting. Contact: R. A. Ferguson Liquidator c/o Fergusons Chartered Accountants Level 8, 115 Grenfell Street Adelaide, South Australia 5000 Australia BRENT ATKINSON: Faces Liquidation Proceedings --------------------------------------------- On February 15, 2006, the Accident Compensation Corporation filed with the High Court of Christchurch an application to liquidate Brent Atkinson Builders Limited. The High Court will hear the application on March 27, 2006. Any person, other than the defendant company, who wishes to appear on the hearing of the application, must file an appearance not later than March 23, 2006. Contact: Dianne S. Lester Solicitor for the Plaintiff Maude & Miller, Second Floor McDonald's Building, Cobham Court P.O. Box 50-555 or D.X. S.P. 32-505 Porirua City New Zealand CALNOB PTY: Names Barry Taylor as Liquidator -------------------------------------------- After a meeting on February 16, 2006, the members of Calnob Pty Limited decided to voluntarily wind up the Company's operations. A creditors' meeting was also held on the same day. Subsequently, Barry Keith Taylor was appointed as liquidator. Contact: Barry K. Taylor Liquidator B. K. Taylor & Company 8th Floor, 608 St. Kilda Road Melbourne, Victoria 3004 Australia CARTER HOLT: S&P Withdraws Credit Ratings After Rank Takeover ------------------------------------------------------------- On March 23, 2006, Standard & Poor's Ratings Services lowered its corporate credit and debt issue ratings on New Zealand's Carter Holt Harvey Ltd. to 'B/Developing' from 'BB/Watch Neg', and withdrew the ratings following the Rank Group's acquisition of more than 90% of CHH's ordinary shares. The privately owned Rank Group, also based in New Zealand, is expected to move to full ownership of CHH shortly. The withdrawal of the rating reflects the heightened uncertainty over the strategic direction of CHH and its financial policy going forward. Moreover, the lack of information available to Standard & Poor's about the Rank Group means it is unable to maintain a credit rating on CHH. While CHH is under the full ownership and control of the Rank Group, Standard & Poor's would not separate the credit quality of the two companies and, therefore, takes a consolidated credit view of the group. Standard & Poor's believes that CHH, on a standalone basis, exhibits a low investment-grade business risk profile. CENTAGROUP PTY: To Distribute Final Dividend -------------------------------------------- Centagroup Pty Limited will declare a first and final dividend on March 27, 2006, to the exclusion of its creditors who were not able to prove their claims. Contact: Peter P. Krecji Liquidator GHK Green Krecji Level 9, 179 Elizabeth Street Sydney, New South Wales 2000 Australia CREATIVE PRINT: Prepares for Dissolution ---------------------------------------- The Registrar at Auckland will remove Creative Print Management Limited from the New Zealand Register, as the Company has already delivered the documents requested by the Registrar of Companies. The strike-off will conclude the Company's liquidation. Unless there were written objections lodged with the Registrar of Companies before March 30, 2006, the Registrar may dissolve he Company. Contact: Rowan John Chapman Liquidator Gosling Chapman Partnership Chartered Accountants Level Six, 51-53 Shortland Street P.O. Box 158, Auckland New Zealand Telephone: (09) 303 4586 Facsimile: (09) 309 1198 DE KERSIVIEN PTY: Enters Voluntary Liquidation ---------------------------------------------- At a general meeting of the members of De Kersivien Pty Limited on February 15, 2006, it was decided that the Company wind up its business operations. John Dickie was then appointed as liquidator for the winding up. Contact: John Dickie Liquidator 62 Burwood Road, Burwood New South Wales 2134 Australia DORAN CONSTRUCTIONS: To Hold Final Meeting Today ------------------------------------------------ A final meeting of the members and creditors of Doran Constructions Pty Limited will be held today, March 24, 2006. At the meeting, liquidator A. E. Lewis will report the activities that took place during the wind-up period as well as the manner by which the Company's property was disposed of. Contact: A. E. Lewis Liquidator Ferrier Hosgson Chartered Accountants PO Box 840, Newcastle New South Wales 2300, Australia Telephone: (02) 4908 4444 Fax: (02) 4908 4499 ENGINEERING RESOURCES: Concludes Liquidation of Assets ------------------------------------------------------ The liquidator of Engineering Resources and Abrasives Limited has applied for the removal of the Company from the New Zealand Register after completing the Company's liquidation. Any objection to the removal must be filed with the Registrar no later than April 3, 2006. Contact: D. C. Parsons Liquidator Indepth Forensic Limited Insolvency Practitioners P.O. Box 278, Hamilton New Zealand Telephone: (07) 957 8674 Facsimile: (07) 957 8677 EXPORATE PTY: Inability to Pay Debts Prompts Wind-up ---------------------------------------------------- Exporate Pty Limited has determined that, due to its inability to pay its debts, a voluntary wind-up of its business operations is appropriate and necessary. Samuel Richwol was appointed to oversee the Company's liquidation activities. Contact: Samuel Richwol Liquidator O'Keeffe Walton Richwol 431 Burke Road, Glen Iris 3146 Australia Telephone: (03) 9822 9823 FISHER DRAINAGE: Members Agree to Shut Down Business ---------------------------------------------------- After a general meeting on February 20, 2006, the members of Fisher Drainage Pty Limited resolved to cease the Company's business operations and distribute the proceeds of its assets. G. N. Huddleson was then appointed as liquidator. Contact: G. N. Huddleson Liquidator Grant Thornton 67 Greenhill Road, Wayville South Australia 5034 Australia FORESTRY CUSTODIANS: Receiver and Manager Steps Down ---------------------------------------------------- On February 14, 2006, Alexander Robert Mackay Macintosh ceased to act as the receiver and manager of the property of Forestry Custodians Pty Limited. GDC COMMUNICATIONS: Directors Place Firm Under Receivership ----------------------------------------------------------- GDC Communications has been placed into receivership at the request of its directors, ShareChat News reports. GDC ran into trouble in 2005 when a lack of interest forced it to scrap a planned share offer aimed at raising NZ$3.5 million. ShareChat recounts that GDC sold its voice provider business to Compass Communications in February for around NZ$1.3 million, and offloaded iVASP to Compass Communications earlier this month for NZ$850,000. GDC, however, tried and failed to find a buyer for its field services business. The Company's directors stated that while they, together with the management, have worked hard to sell the remaining field services' business unit, it is impossible for the Company to conclude a transaction quickly enough to provide net benefits. Thus, the directors deem it more advantageous if the Company proceeds to receivership. The directors further expressed their hopes that most of the Field Services employees would be offered work with some of the contracting companies that GDC had been in sales talks with. All directors have resigned from their roles as a result of the receivership. GO SHAPE UP: Applies for Removal from NZ Register ------------------------------------------------- An application to remove Go Shape Up Limited from the New Zealand Register has been filed after the Liquidator D. C. Parsons has submitted its final report on the Company's liquidation. A written objection to the application should be filed with the Registrar not later than April 3, 2006. Contact: D. C. Parsons Liquidator Indepth Forensic Limited Insolvency Practitioners P.O. Box 278, Hamilton New Zealand Telephone: (07) 957 8674 Facsimile: (07) 957 8677 HERMES MANUFACTURING: In Final Phase of Liquidation --------------------------------------------------- Hermes Manufacturing (2003) Limited advised that it has applied for removal from the New Zealand Register after its liquidator submitted necessary documents required by the Registrar. Any objection must be lodged with the Registrar together with the grounds not later than April 6, 2006. Contact: John T. Whittfield Liquidator McDonald Vague Insolvency Specialists 80 Greys Avenue, Auckland P.O. Box 6092, Wellesley Street Auckland New Zealand Web site: http://www.mvp.co.nz/ INDUSTRIAL SHADE: Members and Creditors to Discuss Wind-up ---------------------------------------------------------- The final meeting of the members and creditors of Industrial Shade Pty Limited will be held today, March 24, 2006, to get an account of the manner of the Company's wind-up and property disposal from the liquidator Frank Lo Pilato. Contact: Frank Lo Pilato Liquidator RSM Bird Cameron Partners Level 1, 103-105 Northbourne Avenue Turner, Australian Capital Territory 2612 J.M. COUGHLAN: Winds Up Operations ---------------------------------- The members of J. M. Coughlan Pty Limited held a general meeting on February 22, 2006, and agreed to close the Company's business. They appointed Gregory Stuart Andrews to facilitate the wind-up operations. Contact: Gregory S. Andrews Liquidator G. S. Andrews & Associates 22 Drummond Street, Carlton Victoria 3053, Australia Telephone: (03) 9662 2666 Fax: (03) 9662 9544 JAMES HARDIE: Contests AU$412 Million Revised Tax Bill ------------------------------------------------------ As reported by the Troubled Company Reporter - Asia Pacific on March 22, 2006, the Australian Taxation Office had warned that it might be slapping around AU$500 million bill and fine on James Hardie Industries Limited. James Hardie learned that the ATO's amended assessment revealed that the Company's bill for unpaid tax, penalties and interest is AU$189.5 million more than the AU$222.5 million tax bill it had calculated and announced earlier. Specifically, the ATO now asserts AU$412 million, payable by April 12, 2006. The Age relates that the increase was due to the AU$197 million charge on general interest, which comes on top of AU$172 million in back taxes and AU$43 million in penalties. James Hardie explains that the general interest charge was not available when it made its initial disclosure on March 20, 2006. The tax assessment relates to the calculation of net capital gains following James Hardie's transfer of its United States assets -- particularly the operations of subsidiary RCI Pty Ltd -- to a Dutch holding company, JHNV, in its effort to minimize tax and as part of its restructure in 1998-99. James Hardie objects to the assessment and promises to pursue an appeal contesting the ATO's assertion. The Company also intends to file an application to make a minimum payment of 50% of the primary tax, or AU$86 million. James Hardie Industries Limited -- http://www.jameshardie.com/ -- manufactures, markets and distributes fiber cement and gypsum products, fiberglass reinforced plastic and PVC products, sanitary ware and bathroom products, insulating materials and fillers, strippers and adhesives. After beginning Australian operations in 1888, it reincorporated into a Netherlands-based company in 2001 to focus on its American growth businesses. Nearly 80% of its sales are in North America. The Company's troubles began with its "under-funded" allocation for asbestos claims, which were brought in by people who suffer or may diseases caused by exposure to the asbestos-related products produced by James Hardie. In 2001, James Hardie set up an independent entity, Medical Research and Compensation Foundation, to handle asbestos claims. The Foundation has warned that it could run out of money within five years. The Asbestos Diseases Foundation of Australia and workers unions called for all the Company's asbestos profits to be immediately placed in the fund. James Hardie was then accused of topping up the dwindling asbestos fund it established. By 2004, James Hardie's former asbestos manufacturing subsidiaries, Amaca and Amaba, are two of around 150 defendants in asbestos litigation, and based on the Foundation's own figures, they account for US$1,000,000,000 of the predicted US$6,000,000,000 future liabilities in Australia. Although James Hardie stopped making asbestos products in 1987, the average 35-year latency of mesothelioma, an asbestos-related disease, means asbestos compensation funds will be needed until mid-century. In a 2005 report by a Company-hired actuary from KPMG, it was predicted that 4,915 Australians would contract mesothelioma from exposure to Hardie products in the coming decades. When less serious forms of asbestos-related disease are included, James Hardie should expect to compensate 8,725 victims. KATHERINE SUPPLIERS: Placed Under Voluntary Liquidation ------------------------------------------------------- At a general meting of Katherine Suppliers Pty Limited on February 20, 2006, members concurred that it is in the Company's best interests to wind up its operations. Robert William Cowling was appointed as liquidator. Contact: Robert W. Cowling Liquidator GPO Box 3300, Darwin NT 0801 Australia Telephone: (08) 8941 9959 Fax: (08) 8941 4599 K. B. TRANSPORT: Poised to Exit from NZ Register ------------------------------------------------ The liquidator of K. B. Transport Limited intends to remove the Company from the New Zealand Register after having completed the liquidation process. Unless there are written objections lodged with the Registrar of Companies before April 3, 2006, the Registrar may dissolve the Company. Contact: D. C. Parsons Liquidator Indepth Forensic Limited Insolvency Practitioners P.O. Box 278, Hamilton New Zealand Telephone: (07) 957 8674 Facsimile: (07) 957 8677 MEDIA PRESS: To Pay Dividend to Creditors ----------------------------------------- Media Press Pty Limited will declare its final dividend on March 27, 2006. Creditors who were not able to prove their claims will be excluded from the benefit of the dividend. Contact: John Melluish Liquidator Ferrier Hodgson Level 17, 2 Market Street Sydney, New South Wales 2000 Australia MIRABELLA PRODUCTIONS: Liquidator to Explain Wind-up Report ----------------------------------------------------------- A final meeting of the members and creditors of Mirabella Productions Pty Limited will be held for them to receive the liquidator's final account showing how the Company was wound up and how its property was disposed of. The meeting will be held today, March 24, 2006. Contact: Adam Shepard Liquidator Star Dean-Willcocks Level 1, 32 Martin Place Sydney, New South Wales 2000 Australia Telephone: 9223 2944 MYER LIMITED: David Jones Contemplates Buying 12 Myer Stores ------------------------------------------------------------ David Jones is considering offering to buy five to 12 stores from Myer's new owners as part of its expansion plan, The Advertiser says. However, DJs notes that it is yet uncertain whether Newbridge Capital LLC, which acquired Coles Myer Limited's 61-store chain and flagship store in Bourke Street, Melbourne, for AU$1.4 billion in aggregate just recently, would be willing to sell any of the stores. DJs Chief Executive Officer Mark McInnes said that the company plans to hold talks with Newbridge regarding the matter. DJs clarifies that, nonetheless, the Company has a back-up plan in case Newbridge does not agree. DJs has been discussing with landlords regarding plans of opening new stores in lucrative areas like Indooroopilly, Macquarie and Chermside, in Sydney, and Highpoint and Doncaster, in Melbourne. * * * Headquartered in Melbourne, Victoria, Coles Myer Ltd. -- http://www.colesmyer.com/-- operated around 2,500 stores in Australia and New Zealand and employs with over 165,000 staff. The Company is listed on the stock exchanges of Australia, London, and New Zealand. Coles Myer has been suffering the burden of consumer-spending downturn. In August 2005, its subsidiary, Myer Limited -- http://www.myer.com/-- has been named in an ABN Amro report as a big loser in the battle between upmarket department stores and discount retailers, with its market share dropping more than 7% since 1996, as discount operators undercut department stores on price and quality. In the same period, Myer's market share has plummeted from 27.8% to 20.6%. The bad news came on top of Merrill Lynch's downgrade of its forecast of Coles Myer's net profit to AU$680 million, in line with the company's own prediction of between AU$670 million and AU$680 million. Merrill Lynch blamed weakness in the retail sector for the cut of AU$20 million, or 3%, in forecast net profit. Between 2001 and 2004, Myer closed 12 of its 73 outlets. In March 2006, after months of negotiations, Coles Myer sold the 61-store Myer chain to Newbridge Capital and to the former Myer store owners, the Myer family, for AU$1.4 billion. NATIONAL AUSTRALIA: Prosecutors Want Ex-NAB FX Trader Jailed ------------------------------------------------------------ The Troubled Company Reporter - Asia Pacific reported on February 8, 2006, that National Australia Bank Ltd.'s former foreign exchange options trader, Gianni Gray, had cooperated with authorities and pleaded guilty to three counts of dishonestly using his position as an employee for personal gain. Mr. Gray, as well as two other traders, were charged by the Australian Securities and Investments Commission after investigations into an unauthorized foreign exchange trading that cost NAB AU$326 million. Unlike Mr. Gray, Vincent Ficarra and David Bullen pleaded not guilty to allegations that they placed false information into NAB's accounting systems to falsely inflate the profit results of the forex options desk between September 2003 and January 2004. Public prosecutors assert that Mr. Gray -- who is reportedly working as a pizza maker and ships painter after he lost his AU$243,753-a-year job with NAB -- should be jailed for his part in the rogue trading scandal, despite being the least liable and despite having pled guilty. A sentencing hearing was told that Mr. Gray had already repaid the AU$195,000 performance bonus that he improperly received for the 2003/2004 financial year. Mr. Gray's bail was extended to March 23 for a sentencing hearing in the County Court of Victoria. Justice Geoff Chettle directed Mr. Gray to appear for sentencing on April 6. Messrs. Ficarra and Bullen, on the other hand, will go to trial on April 19. * * * National Australia Bank is undertaking a three-year revival program after its 2004 foreign exchange trading scandal and several profit downgrades in 2005 that hammered its share price. The Bank is working to recover from a tumultuous two years marked by a boardroom upheaval and disintegration, executive departures and huge job cuts. As of February 2006, NAB said that it was moving ahead and that its crises were over. NAB further stated that planning for its post-recovery phase was under way. As reported in TCR Europe on Jan. 12, NAB is cutting the number of Clydesdale banks from 217 to 153 as people abandon traditional banking to Internet and telephone method of transacting business. It is closing 30 branches in Scotland, and 17 in England. PREMUIM WINE: Supreme Court Appoints Liquidator ----------------------------------------------- On February 22, 2006, the Supreme Court of South Australia appointed Anthony Stevens Smith as the provisional liquidator for the winding up of Premium Wine Bottlers S.A. Pty Limited. Contact: Anthony S. Smith Provisional Liquidator Ernst & Young Chartered Accountants Level 21, 91 King William Street Adelaide, South Australia 5000 Australia Telephone: (08) 8233 7097 PRG GROUP: Banking on U.K.-based PowerHouse's Turnaround -------------------------------------------------------- PRG Group Limited is hopeful that its United Kingdom-based retailer, PowerHouse, can turn around despite continuing harsh UK trading conditions. In February 2006, PRG Group disclosed stronger-than-forecast Christmas sales for PowerHouse, whose top 53 stores delivered like-for-like growth of 4.9% during the key four-week Christmas trading period to January 14, 2006, against the previous corresponding period. PRG notes that PowerHouse's "strong Christmas performance" had been achieved despite a 39% decline in total sales during the third quarter ended December 31, 2005. This sales decline also follows a reduction in store numbers over the past year as PowerHouse continued an ongoing program of exiting non- performing stores. Specifically, PowerHouse had closed 31 non-performing stores in February after their disappointing Christmas sales performance, and is currently in the process of entering an arrangement to resolve remaining liabilities with certain landlords. The Company said that most lease agreements are already settled, but that landlords of 10 stores had lodged a legal challenge, thus, delaying the process. PowerHouse now plans to build on the strong performance of its top 53 stores and push for a break-even target by 2007. It is also aiming to implement the final phase of reconstruction that involves closing the remaining non-performing stores as they will not help achieve the Company's goal going forward. According to ShareChat News, PowerHouse's success is a "face- saving exercise" for PRG Group. About PRG Group Formerly Pacific Retail Group, PRG Group Limited -- http://www.prg.co.nz/-- is an NZX-listed investment company focused on the consumer sector. It has a portfolio of operating companies in New Zealand and the United Kingdom, including leading lingerie designer and marketer, Bendon Limited. PRG Group's other businesses include PowerHouse, the UK's third largest specialist appliance retailer. PowerHouse operates 53 stores in the UK. PRG Group also owns New Zealand homeware retailer Living & Giving. Late January 2006, PRG Group completed the sale of its Finance Group to GE Finance and Insurance for NZ$145 million. The Finance Group comprised four companies - Pacific Retail Services Limited, Pacific Retail Finance Limited, Montreal Financial Services Limited and Simply Insurance New Zealand Limited. The structure of the sale meant the Finance Group's loan book and other assets were sold to GE, together with the shares in Simply Insurance New Zealand. Under the sale agreement, PRG has changed its name from Pacific Retail Group Limited to PRG Group Limited. The Company posted a NZ$75 million capital profit (net of costs) from the sale. PRG Group used part of the sale proceeds to repay NZ$62.7 million of outstanding Secured Capital Notes and to repay loans of NZ$20 million to principal banker, ANZ Bank. PRG Group hoped that the sale will allow it to retire all parent company debt, leaving it in a strong financial position to continue to fund growth in its major operating businesses. QANTAS AIRWAYS: Reinforces Commitment to Maintenance Workers ------------------------------------------------------------ Qantas Airways assured workers that it is still committed to keeping aircraft heavy maintenance work in Australia. This after the airlines reported having booked one of its 747 aircraft for maintenance repair in Singapore next month, which in turn, caused objections from union leaders. The unions have planned to stage rallies to protest Qantas' decision to send one of its 747 jumbo jets abroad. They claim that the airline is threatening to send more work overseas unless they accept its push to take on maintenance workers through a labor-hire company. The Executive General Manager of Qantas Engineering, David Cox, explained that the arrangement for a single Boeing 747-400 aircraft to undergo a heavy maintenance check in Singapore was not out of the norm. He says Qantas is in a transition period ahead of moving its heavy maintenance operations to Avalon. As reported by the Troubled Company Reporter - Asia Pacific on March 10, 2006, Qantas decided to consolidate its heavy maintenance operations to Avalon, Victoria, instead of pushing through with its plan to send the operations to Asia. Pursuant to its consolidation plan, the airline will close its Boeing 747 maintenance operations in Sydney and cut 480 jobs. Mr. Cox further points out that on occasion, Qantas carries out maintenance work offshore, work that is done by qualified, reputable and fully certified service providers. He says that the airline has made no secret of this and it will continue to reserve the right to send some work offshore to meet operational requirements where necessary. About Qantas Headquartered in Sydney, Australia, Qantas Airways -- http://www.qantas.com.au-- is the world's second oldest airline and is also recognized as one of the leading long-distance airlines, having pioneered services from Australia to North America and Europe. The Qantas Group employs approximately 38,000 staff across a network that spans 145 destinations in Australia, Asia-Pacific, Americas, Europe and Africa. The Qantas Group also operates a diverse portfolio of airline- related businesses, including Engineering Technical operations and Maintenance Services, Airports and Catering, Qantas Freight, Qantas Holidays, Qantas Defence Services and Qantas Consulting. Qantas started having problems in 2003 with the ill effects of the Iraq War and the SARS outbreak, on top of the already difficult period following the events of the 9/11 terrorist attacks, the Afghanistan war and the terror threats, which lead to a downturn in bookings to other Asian countries, and affecting most of European routes as well. The adverse effects also affected other areas of the business including Qantas Flight Catering, Qantas Holidays and Australian Airlines. Qantas started reviewing, and widened, the range of initiatives it had put in place following the triggering events. These initiatives included the reduction of staffing numbers through the use of accumulated leave to the equivalent of 2,500 full- time employees by June 2003 and by the equivalent of 1,000 employees between July and September 2003; a restructuring program involving 1,000 redundancies, 400 permanent positions eliminated through attrition and 300 permanent positions converted from full time to part time; a freeze on capital and discretionary expenditure; expansion of the leave without pay program; increased use of part time workers; significant restructuring of work practices and activities; and reduction of capital expenditure, including retirement of some aircraft and deferral of delivery of new aircraft. In December 2003, Qantas unveiled its new low cost-carrier airline, Jetstar Asia, which later proved to be a headache after failing to gain access to crucial markets such as Indonesia and China. In June 2005, Qantas admitted it is still struggling to recover its investment in Jetstar, despite having managed to lease out four of its unused Airbus 320s. By early 2004, Qantas posted a AU$357.8 million net profit for the period ended December 31, 2003, owing to a strong domestic performance, effective cost-cutting measures, improvement in the international segment of the business and other subsidiaries. However, the airline also posted a lower revenue figure. The road to recovery proved rocky as Qantas had to deal with escalating fuel prices, increased competition and skirmishes with its labor unions. Qantas has also seen a lot of fruitless merger talks. Qantas went into another round of job cuts in late June 2005, a move that was punctuated with more than 600 jobs slashed in the first half of its financial year. The latest round of job cuts announced in February 2006 came amidst uncertainty of outsourcing the airline's heavy maintenance works overseas. REDAN DEVELOPMENTS: Court Issues Wind-up Order ---------------------------------------------- The Federal Court ordered the winding up of Redan Developments Pty Limited on February 23, 2006, and appointed Mike J. Hill as liquidator. Contact: Mike J. Hill Liquidator McGrathNicol+Partners Level 3, Brindabella Business Park 20 Brindabella Circuit, Canberra Airport Australian Capital Territory 2609 Australia TOTAL AUTOMOTIVE: Appoints Receivers and Managers ------------------------------------------------- On February 10, 2006, Andrew John Love, Mark Maxwell Taylor and Peter Damien McCluskey were appointed as receivers and managers of the assets and undertakings of Total Automotive Solutions Pty Limited. Contact: Andrew J. Love Mark M. Taylor Receivers Level 17, 2 Market Street Sydney, New South Wales 2000 Australia Peter D. McCluskey Receiver Level 29, 600 Bourke Street Melbourne, Victoria 3000 Australia TOUMA SHIRTS PTY: Creditors OK Liquidator's Appointment ------------------------------------------------------- Members of Touma Shirts Pty Limited convened on February 24, 2006, to wind up the Company's operations. Antony de Vries and Riad Tayeh were appointed as joint and several liquidators. The Company's creditors confirmed the liquidator's appointment at a creditors' meeting held later that day. Contact: Riad Tayeh Antony de Vries Liquidators c/o de Vries Tayeh Level 3, 95 Macquarie Street Parramatta, New South Wales 2124 Australia VIPWOOD PTY: To Declare Dividend Today -------------------------------------- Vipwood Pty Limited will declare a first and final dividend today, March 24, 2006. Creditors who were not able to prove their claims are excluded from the benefit of the dividend. Contact: B. J. Marchesi Liquidator Bent & Cougle Pty Limited Chartered Accountants 332 St. Kilda Road, Melbourne Victoria 3004, Australia WARATAH HOLDINGS: Liquidator Wants Firm Removed from NZ Register ---------------------------------------------------------------- Liquidator Paul Mervyn Collins of Waratah Holdings Limited has applied for the removal of the Company from the New Zealand Register after the Company's liquidation was completed. Any objection to the removal must be lodged with the Registrar no later than April 21, 2006. Contact: Paul Mervyn Collins Liquidator 135 Broadway, Newmarket, Auckland Postal Address: Private Bag 99-945, Newmarket, Auckland New Zealand WARWICK J TILLER: Court to Hear CIR's Petition on March 27 ---------------------------------------------------------- An application to liquidate Warwick J Tiller & Company Limited has been filed with the High Court of Wellington on February 14, 2006, by the Commissioner of Inland Revenue. The Application will be heard before the High Court on March 27, 2006, at 10:00 a.m. Any person who wishes to appear on the hearing of the application must file an appearance not later March 23, 2006. Contact: Philip Hugh Brian Latimer Solicitor for the Plaintiff Technical and Legal Support Group Wellington Service Centre, First Floor New Zealand Post House, 7-27 Waterloo Quay P.O. Box 1462, Wellington New Zealand Telephone: (04) 802 8028 Facsimile: (04) 802 8187 YABBA YABBA PTY: Members Resolve to Wind Up Firm ------------------------------------------------ At an extraordinary general meeting of Yabba Yabba Pty Limited, members decided to wind up the Company's business. Bryan Collis was then appointed as liquidator. Contact: Bryan Collis Liquidator O'Brien Palmer Level 4, 23-25 Hunter Street Sydney, New South Wales 2000 Australia * ASIC Commences Court Proceedings Against Melbourne Liquidator --------------------------------------------------------------- The Australian Securities and Exchange Commission has commenced proceedings in the Supreme Court of Victoria against Robert John Edge, an official liquidator, who lives and works in Kew, Victoria. ASIC is seeking orders including an order removing Mr. Edge from his position as liquidator or voluntary administrator or deed administrator in 22 current administrators. These 22 companies are either in liquidation, voluntary administration or subject to a Deed of Company Arrangement. This application follows concerns by ASIC that Mr. Edge has failed to lodge over 100 documents required to be lodged with ASIC about these 22 administrations. These documents include "Accounts of Receipts and Payments", minutes of meetings of creditors and Deeds of Company Arrangement in relation to his current administrations. Documents like these provide important information to creditors and the public about what is happening in companies that have gone into liquidation or voluntary administration. The proceedings were adjourned until April 21, 2006, to enable Mr. Edge to file affidavit material in response. A list of companies that availed of by Mr. Edge's services is available for free at: http://bankrupt.com/misc/tcrap_ASIC032306.pdf ================================ C H I N A & H O N G K O N G ================================ ASIA ALUMINUM: Employs ING Bank to Advise on Buyout --------------------------------------------------- On March 22, 2006, Asia Aluminum Holdings Limited appointed ING Bank N.V. as the Company's independent financial adviser in connection with the buyout offer made by chairman Kwong Wui- chun, Infocast News relates. Mr. Kwong has proposed to privatize the Company at $1.3 per share. Mr. Kwong, with the support of several management executives, has earlier made a preliminary approach to take the Company private. The chairman and his associates hold a 35.41% stake in the Company. Headquartered in Kowloon, Hong Kong, Asia Aluminum Holdings Limited -- http://www.asiaalum.com/-- is the powerhouse of aluminum extrusion, offering comprehensive solutions in design and engineering, extrusion, surface finishes, fabrication and delivery. The Company is quoted on the Hong Kong Stock Exchange and is one of the largest investor-owned aluminum businesses in Asia, serving the infrastructure, transportation, industrial, and home improvement sectors. The Company currently operates five production facilities in Nanhai in China's Guangdong Province with an aggregate capacity of 150,000 metric tons, and is building a new avant-garde platform in the neighboring city Zhaoqing, to facilitate future progressive business rollouts. Total sales reached HK$3.4 billion (US$437 million) for the year ended June 30, 2005. In February 2006, Standard & Poor's Rating Services "BB" long-term corporate credit rating on Asia Aluminum Holdings Limited on CreditWatch with negative implications. At the same time, it also placed US$450 million in senior unsecured notes due 2011 on CreditWatch with negative implications. In March 2006, Moody's Investors Service has placed the Ba3 corporate family rating and senior unsecured bond rating of Asia Aluminum Holdings Limited on review for possible downgrade. CHINA FOCUS: Court Issues Wind-Up Order --------------------------------------- China Focus Motors Limited has presented a petition to wind up its operations. On March 8, 2006, the High Court of the Hong Kong Special Administrative Region Court of First Instance released an order to wind up the Company. Contact: Edward Thomas O'Connell Official Receiver HKSAR-Official Receiver's Office 10th Floor, Queensway Government Offices, 66 Queensway, Hong Kong Telephone: 2867 2426 Fax: 3105 1814 e-mail: eamonn@oro.gov.hk FORTRESS INTERNATIONAL: Prepares to Close Operations ---------------------------------------------------- The members of Fortress International Limited held a meeting on March 13, 2006, and agreed to wind up the Company's business. They appointed Ding Wai Chuen and Kwok Yuen Man to facilitate the wind-up process. Contact: Ding Wai Chuen Kwok Yuen Man 34th Floor The Lee Gardens 33 Hysan Avenue Causeway Bay Hong Kong FORTUNE REALTY: To Hold Final Meeting on April 25 ------------------------------------------------- The final meeting of the members and creditors of Fortune Realty Company Limited is scheduled on April 25, 2006, at 3:00 p.m. and 4:00 p.m., respectively. The meeting was set for members and creditors to get an account of the manner of the Company's wind-up and property disposal from its joint liquidators. Contact: Ng Kowk Wai Lyn Yee Chen, Jean Joint and Several Liquidators Room 1037, 10/F One Grand Tower 639 Nathan Road Mongkok, Kowloon Hong Kong Telephone: 3582 5933 Fax: 3188 9669 GOLD EARTH: Commences Winding Up Proceedings -------------------------------------------- Members of Gold Earth Enterprises Limited held a meeting on February 27, 2006, and agreed that the Company be wound up voluntarily and Lam Ying Sui be appointed as liquidator. They also agreed that the audit of the Liquidator's accounts of receipts and payments would not be required. Contact: Lam Ying Sui Room 1005 Allied Kajima Building 138 Gloucester Road Wanchai, Hong Kong GREAT CENTER: Creditors' Claims Due on April 3 ---------------------------------------------- Creditors of Great Center Limited, whose claims have not already been admitted, are required to submit their formal proofs of claim by April 3, 2006, to Joint and Several Liquidators' Stephen Liu Yiu Keung and Yeo Boon Ann. Failure to comply with the requirement will exclude creditors from the benefit of the Company's dividend distribution. Contact: I. D. Jessup Liquidator Jessup & Partners PO Box 936, Earlville Queensland 4870, Australia Telephone: 07 4033 1349 Fax: 07 4033 1649 HILL SAMUEL: Members to Receive Wind-Up Details ----------------------------------------------- The members of Hill Samuel International Property Services Limited will convene on April 18, 2006, to receive Joint Liquidators Ying Hing Chiu and Chung Miu Yin Diana's account regarding the Company's completed wind-up and disposal of property, and to consider any other matters that may be brought before the meeting. Contact: Ying Hing Chiu Chung Miu Yin, Diana Joint Liquidators Level 28, Three Pacific Place 1 Queen's Road East Hong Kong HING ZHAO: Appoints Chang Tung Lian as Liquidator ------------------------------------------------- At a meeting on February 17, 2006, the members of Hing Zhao Limited agreed that the Company must voluntarily commence a wind-up of its operations. Chang Tung Lian was then appointed as liquidator of the Company. Contact: Chang Tung Lian Liquidator 21/F., Fee Tat Commercial Centre No. 613 Nathan Road Kowloon, Hong Kong MEI FAI: Enters Voluntary Liquidation ------------------------------------- Members of Mei Fai Hats Holdings Limited held an extraordinary general meeting on March 17, 2006, and agreed to: -- voluntarily wind up the Company's business operations; and -- appoint Cheng Kai Tai as liquidator for the wind-up. Contact: Cheng Kai Tai Liquidator Allen of 19/F Beverly House, Nos. 93-107 Lockhart Road, Wanchai Hong Kong MEN'S LEATHER: Faces Bankruptcy Proceedings ------------------------------------------- A bankruptcy order pertaining to Men's Leather Trading Company was issued on March 8, 2006. All debts due to the estate should be paid to the official receiver, Edward Thomas O'Connell. Contact: Edward Thomas O'Connell Official Receiver HKSAR-Official Receiver's Office 10th Floor, Queensway Government Offices, 66 Queensway, Hong Kong Telephone: 2867 2426 Fax: 3105 1814 e-mail: eamonn@oro.gov.hk P.C.S. SERVICES: Set to Shut Down Business ------------------------------------------ The High Court of the Hong Kong Special Administrative Region Court of First Instance entered a wind-up order pertaining to P.C.S. Services Company Limited on March 8, 2006. The Troubled Company Reporter - Asia Pacific had earlier reported that Chan Ka Keung filed a petition for the winding up of the Company on January 13, 2006. Contact: Edward Thomas O'Connell Official Receiver HKSAR-Official Receiver's Office 10th Floor, Queensway Government Offices, 66 Queensway, Hong Kong Telephone: 2867 2426 Fax: 3105 1814 e-mail: eamonn@oro.gov.hk PRUTON INTERNATIONAL: Members Resolve to Wind Up Firm ----------------------------------------------------- Members of Pruton International Company Limited held a meeting on February 27, 2006, and agreed that: -- the Company be wound up voluntarily; -- Lam Ying Sui be appointed as liquidator for the purpose of such winding up; and -- the audit of the Liquidator's accounts of receipts and payments will not be required. Contact: Lam Ying Sui Room 1003-1005, Allied Kajima Building 138 Gloucester Road Wanchai, Hong Kong, SOUTH CHAMP: Starts Winding Up Process -------------------------------------- South Champ Trading Limited has received a wind-up order from the High Court of the Hong Kong Special Administrative Region Court of First Instance on March 8, 2006. Contact: Edward Thomas O'Connell Official Receiver HKSAR-Official Receiver's Office 10th Floor, Queensway Government Offices, 66 Queensway, Hong Kong Telephone: 2867 2426 Fax: 3105 1814 e-mail: eamonn@oro.gov.hk SUCCESS LOGISTICS: Court Releases Bankruptcy Order -------------------------------------------------- The High Court of Hong Kong issued a bankruptcy order for Success Logistics Company on March 8, 2006. All debts due to the estate should be paid to Official Receiver Edward Thomas O'Connell. Contact: Edward Thomas O'Connell Official Receiver HKSAR-Official Receiver's Office 10th Floor, Queensway Government Offices, 66 Queensway, Hong Kong Telephone: 2867 2426 Fax: 3105 1814 e-mail: eamonn@oro.gov.hk TECHKEY BUILDING: Members to Receive Wind-up Details ---------------------------------------------------- A final meeting of the members of Techkey Building Material & Engineering Limited will convene to receive the Liquidator Lam Chin Chiu's final account showing how the Company was wound up and how its property was disposed of. They will also discuss on whether the books, accounts and documents of the Company will be retained by the Liquidator and be destroyed three months after the Company is dissolved. The meeting will be held on April 21, 2006, at 2:00 p.m. Contact: Lam Chin Chiu Liquidator The Kwangtung Provincial Bank Building 409-415 Hennessy Road Causeway Bay, Hong Kong WOL COMMUNICATIONS: Proofs of Debt Due Next Month ------------------------------------------------- Creditors of Wol Communications Limited are required to prove their debt or claims not later than April 10, 2006. Failure to comply with the requirements will exclude the creditors from the benefit of any distribution the Company will undertake. Contact: Cheung Hok Fung Alexander Lin Kin Ming Joint and Several Liquidators Unit 1005, Tower B Hunghom Commercial Centre 37 Ma Tau Wai Road Kowloon, Hong Kong ========= I N D I A ========= BPL LIMITED: Sanyo Chief Coming to Take Joint Venture Stake ----------------------------------------------------------- Sanyo Electric President Toshimasa Iue is scheduled to take his company's stock in a joint venture with ailing BPL Limited, Business Standard reveals. Mr. Iue is reportedly coming to India to view the progress of the 50:50 Sanyo-BPL joint venture operations, after the new entity unveiled plans to generate INR2,000 profit in three years. Sanyo BPL also aims to snag a 16% market share in India. The joint venture is adopting a dual-brand strategy for Sanyo and BPL products. While the BPL brand will be used for the volume segment of colored televisions, the Sanyo brand will be positioned at high-end segment of the market with plasma and hi- definition TVs. Embattled Japanese firm Sanyo is looking at India as a growing market for its CTVs even as it scripts a massive restructuring plan globally. According to various reports, its CTV business is faring poorly. Recently, the corporation got a go-ahead for its $2.6 billion bailout plan. Headquartered in Bangalore, India, BPL Limited manufactures and distributes consumer electronic products such as televisions, video tape recorder, audio systems, emergency lanterns, electrocardiographs and monitors. The Group also manufactures home appliances like washing machines, refrigerators, vacuum cleaners, microwave ovens, gas tables, soft energy and consumer telecom products. Its plants are located at Kerala, Karnataka and Uttar Pradesh. The Group operates only in India. Last year, the Company obtained approval from the Kerala High Court for its financial restructuring scheme and the launch of the 50:50 joint venture with Sanyo for the CTV business. The restructuring has allowed BPL to focus and strategize on its core businesses like mobile phones, entertainment electronics, medical electronics, engineering plastics and tooling for automotive and consumer electronics industry. As a part of the restructuring exercise, BPL had recently also sold off its dry cell business- which operated through its subsidiary BPL Soft Energy Systems- in a INR67 crore deal including liabilities to the Khaitans of Eveready Industries. BPL LIMITED: Capital Hike Plan Likely ------------------------------------- BPL Limited is positive that it will successfully increase its authorized share capital after its promoters, the Nambiars, decided to raise their holding from 56% to 73%, The Economic Times relates. The stake increase was carried out through preferential allotment to a group company, Electro Investment. Electro Investment has agreed to extend an INR92-crore interest free loan to BPL. The fresh capital injection will ensure settlement of BPL's secured creditors, working capital for the Company's rehabilitation and payment of statutory dues. The promoters are now converting this loan into equity through a preferential allotment of two-crore equity shares of INR10 each at a premium of INR33.02 per share. As reported by Troubled Company Reporter - Asia Pacific on March 7, 2006, BPL will seek shareholders' approval at its Extraordinary General Meeting on March 29, 2006, to increase its authorized share capital. Headquartered in Bangalore, India, BPL Limited manufactures and distributes consumer electronic products such as televisions, video tape recorder, audio systems, emergency lanterns, electrocardiographs and monitors. The Group also manufactures home appliances like washing machines, refrigerators, vacuum cleaners, microwave ovens, gas tables, soft energy and consumer telecom products. Its plants are located at Kerala, Karnataka and Uttar Pradesh. The Group operates only in India. Last year, the Company obtained approval from the Kerala High Court for its financial restructuring scheme and the launch of the 50:50 joint venture with Sanyo for the CTV business. The restructuring has allowed BPL to focus and strategize on its core businesses like mobile phones, entertainment electronics, medical electronics, engineering plastics and tooling for automotive and consumer electronics industry. As a part of the restructuring exercise, BPL had recently also sold off its dry cell business- which operated through its subsidiary BPL Soft Energy Systems- in a INR67 crore deal including liabilities to the Khaitans of Eveready Industries. COAL INDIA: Says e-auction Will Boost Coal Sale by 80% ---------------------------------------------------- Coal India Limited expects its sale figures to balloon to 36 metric tonnes next year from 20 metric tonnes this year through electronic bidding, The Economic Times reveals. The Company is confident it will achieve its 80% coal sale hike target since a large number of core sector companies like steel and cement have been looking at availing of more coal through the e-auction platform. As reported by the Troubled Company Reporter - Asia Pacific on March 6, 2006, the increase in demand for coal, along with higher price realization through e-auction has substantially boosted profits. As many as 17,403 bidders participated in the online bidding process, the report said. Around 10,526 were successful and generated INR565.36 crore in profits for Coal India. Another 10 million tonnes of coal have been released through this mode to increase availability in the market and bring down prices. According to The Times, Coal India managed a 16% rise in profit before tax of INR6,774 crore in the April 2005-February 2006 period, against INR5,823 crore in the previous corresponding period. In the same period, off-take of coal was about 303 metric tonnes against 291 metric tonne in the previous period. The Company, however, missed the its target for coal offtake by about 8.9 metric tonne. Headquartered in Kolkota India, Coal India Limited -- http://www.coalindia.nic.in/-- is engaged in the mining of coal, coal based products and mining consultancy. The Company was incorporated under the Companies Act, 1956 and is wholly owned by the Government of India. It recently turned around from substantial losses in the past due to its e-auction revenues. However, it is still saddled with labor problems involving its senior staff. GENERAL MOTORS INDIA: Mulls INR100-crore Expansion This Year ------------------------------------------------------------ General Motors India, a wholly owned subsidiary of the beleaguered United States-based General Motors Corporation, will invest INR100 crore within 2006 to launch new models and to expand its operations, The Economic Times says. GM India is working to boost operations and introduce new models this year, in a bid to offset the negative effects of its parent's troubles. The move is also part of efforts to win back customers, who were disillusioned by General Motor's near- collapse. GM India's plant at Halol in Gujarat, which produces the Chevrolet Optra and Chevrolet Tavera, would be expanded for the new projects, The Times says. The Company has also set a target of selling 50,000 units in 2006 as against 30,837 cars sold in 2005. General Motors India -- http://www.gm.com/-- was formed in 1994 as a 50:50 joint venture between General Motors Corporation and the C.K. Birla Group of Companies. Its manufacturing plant is located at Halol in Gujarat. The Halol plant has received ISO 9002 certification in 1998, ISO 14001 in environment management systems in 1999, ISO -9000 2000 in January 2002. In 1999, GM bought out its partner's shareholding and GM India became a fully owned subsidiary of GM Corporation. GM India currently has a total workforce of 1,200 personnel excluding contract workers. GM India offers products under the Chevrolet and Opel brands in the country. The Company has been affected by issues of its United States-based parent, which is suffering from massive product recalls, hefty losses, and low credit ratings, among others. General Motors made losses of around US$7.6 billion in its North American automotive operations in 2005. This included the costs of decision to close down as many as 12 North American plants and cut 30,000 jobs by the end of 2008. The losses were also due to charges related to factory job losses, its finance arm GMAC and the bankruptcy of former subsidiary Delphi Corp. GM had to make these big restructuring announcements to cut costs and return to profitability as soon as possible. ================= I N D O N E S I A ================= BANK MANDIRI: FY/2005 Profits Plunge 88.5% ------------------------------------------ PT Bank Mandiri posted a net profit of IDR604 billion in 2005, versus a net profit of IDR5.256 trillion in 2004. This indicates that the bank incurred an 88.5% fall in earnings for 2005, which result is greater than the profit decline earlier projected. As reported by the Troubled Company Reporter - Asia Pacific on March 6, 2006, Bank Mandiri had expected to post a 64% decline in its 2005 net profit due to an increase in provisions for bad loans. The bank also reported that its gross non-performing loans ratio rose to 25.3% at the end of last year, from 7.1% the year before. According to Bank Mandiri, it imposed stricter loan classifications last year as requested by the state central bank, Bank Indonesia. This, in turn, caused the bank's bad loans to rise. Bank Mandiri was trying to engage its 30 biggest debtors, accounting for 70% of its total NPLs, but under laws for state banks, the bank cannot offer debtors a reduction in the principal owed. About Bank Mandiri Bank Mandiri -- http://www.bankmandiri.co.id/-- Indonesia's largest and best capitalized bank in terms of assets, loans and deposits, provides comprehensive financial services to more than six million corporate and individual consumers, as well as small and medium-sized enterprises in Indonesia. Its total assets as of March 31, 2002 were IDR261.9 trillion, roughly 24% of the assets in the banking system, and its capital adequacy ratio of 27% is far higher than the minimum required level of 8% by the Bank of International Settlements. Bank Mandiri's troubles began in December 1999, when the state bank, which combined four other state banks, posted losses totaling IDR6.8 trillion (US$942 million) during the first two months of operation. In September 2003, Bank Mandiri asked the approval of shareholders to hold a quasi-reorganization so that it can pay dividends to shareholders in 2004. Before the quasi- reorganization, there had been loss accumulation worth IDR163 trillion. As of September 2005, Bank Mandiri's non-performing loans comprised 24.57% of its total loans. Accumulated unresolved debts and higher interest rates led to the 7.49% increase in the bank's non-performing loans. Subsequently, Bank Mandiri is subject to special monitoring by the central bank due to its high level of non-performing loans, although it can still extend credit to borrowers. In December 2005, Bank Mandiri reported that its third-quarter net profits plummeted 56.7% to IDR610.7 billion (US$60.86 million) from IDR1.41 trillion in the same period in 2004. In February, the Bank sought the Government's help to resolve its non-performing loan problems and to approve its plan to set up a debt management agency together with Bank Negara Indonesia, as a state finance law and a finance ministry regulation prohibit state banks from writing off debts without permission from the Finance Minister. BANK MANDIRI: To Further Slash Lending Rates by 0.5% ---------------------------------------------------- PT Bank Mandiri will cut lending rates in April by an average of 0.5 percentage points to help boost lending growth this year and to recoup some of last year's drop in profits due to rising bad loans and cost of funds, The Jakarta Post reports, citing Bank Mandiri Treasury Director J.B. Kendarto. Mr. Kendarto said that the bank would slash its lending rates to between 13.5% and 16.5%, from the 14% to 17% at present. Bank Mandiri aims a 15% growth in lending this year compared to 13.2% in 2005. About Bank Mandiri Bank Mandiri -- http://www.bankmandiri.co.id/-- Indonesia's largest and best capitalized bank in terms of assets, loans and deposits, provides comprehensive financial services to more than six million corporate and individual consumers, as well as small and medium-sized enterprises in Indonesia. Its total assets as of March 31, 2002 were IDR261.9 trillion, roughly 24% of the assets in the banking system, and its capital adequacy ratio of 27% is far higher than the minimum required level of 8% by the Bank of International Settlements. Bank Mandiri's troubles began in December 1999, when the state bank, which combined four other state banks, posted losses totaling IDR6.8 trillion (US$942 million) during the first two months of operation. In September 2003, Bank Mandiri asked the approval of shareholders to hold a quasi-reorganization so that it can pay dividends to shareholders in 2004. Before the quasi- reorganization, there had been loss accumulation worth IDR163 trillion. As of September 2005, Bank Mandiri's non-performing loans comprised 24.57% of its total loans. Accumulated unresolved debts and higher interest rates led to the 7.49% increase in the bank's non-performing loans. Subsequently, Bank Mandiri is subject to special monitoring by the central bank due to its high level of non-performing loans, although it can still extend credit to borrowers. In December 2005, Bank Mandiri reported that its third-quarter net profits plummeted 56.7% to IDR610.7 billion (US$60.86 million) from IDR1.41 trillion in the same period in 2004. In February, the Bank sought the Government's help to resolve its non-performing loan problems and to approve its plan to set up a debt management agency together with Bank Negara Indonesia, as a state finance law and a finance ministry regulation prohibit state banks from writing off debts without permission from the Finance Minister. ========= J A P A N ========= BERSON JAPAN: Files for Bankruptcy Due to JPY2.4 Billion Debt ------------------------------------------------------------- Berson Japan, Inc., a Fukuoka-based marketing firm for clothing brand Van filed for bankruptcy with the Fukuoka District Court after it incurred a whopping JPY2.4 billion debt, Kyodo News relates. According to research agency Teikoko Databank Limited, the Company's rapid store chain expansion policy and weak sales forced it to become financially overextended. Established in 2001, Berson Japan, Inc., is licensed to sell the Van brand of clothing, created by designer Kensuke Ishizu who wanted to incorporate the image of American Ivy League colleges into fashion. Berson has 49 sales outlets across the country. JAPAN AIRLINES: Flies Routes Without Required Inspections --------------------------------------------------------- Japan's Ministry of Land, Infrastructure and Transport reprimanded Japan Airlines for flying a passenger airplane for 10 days without conducting the necessary inspections, Kyodo News reports. In March 2004, the MLIT directed airline operators to conduct inspections on the main landing gear of certain MacDonnel Douglas MD-87 and MD-81 aircraft every 450 flights, after an accident that occurred on an MD-81 plane two months ago. According to JAL officials, one of the airline's MD-87s had conducted 41 flights before it was inspected on March 20, 2006, at a Hokkaido airport. No abnormalities were discovered on the aircraft and its landing gear. The officials explained that JAL had planned to inspect the MD- 87 on February 26, 2006, but the person in charge of scheduling forgot to inform the servicing staff. About JAL Tokyo-based Japan Airlines Corporation -- http://www.jal.com/en/ -- was created as a result of the merger of Japan Airlines and Japan Air Systems to boost domestic coverage. JAL's international passenger operations incurred losses in recent years due to negative factors such as the severe acute respiratory distress syndrome epidemic and terrorism fears. Due to a series of safety-related incidents, the JAL Group was subjected to a business improvement order and administrative warnings relating to assurances on air transportation safety issued by the Ministry of Land, Infrastructure and Transport in March 2005. In the fiscal year 2005-2007, the Company's Medium- Term Business Plan stated that in order to implement the reform of the corporate structure and the cost structure swiftly, the holding Company and operating companies are to be integrated. Specifically, in fiscal 2005, the corporate planning and marketing functions will be integrated and further steps to eliminate overlapping jobs and streamline the organization will be taken with a view to achieving substantial integration to merge the holding company and the operating company. In addition, the number of full-time officers was cut by 30%, and this reform was completed on April 1, 2005. For the JAL Group, there was a year-on-year decline in passenger demand on international routes, primarily because of a delay in the recovery of demand on routes to China and Southeast Asia. Domestic passenger demand also faltered and fell below its year- earlier level, particularly among individual passengers, due to factors such as the series of safety problems that occurred. Demand for international cargo services also registered a year- on-year decline overall, owing to weak demand on routes from Japan to East Asian countries and the United States. Rising aviation fuel prices compounded the situation and created an exceptionally harsh environment for the Group. ========= K O R E A ========= KOREA EXCHANGE: Kookmin Bank to Buy 64.62% Stake in KEB ------------------------------------------------------- The Troubled Company Reporter - Asia Pacific reported on March 23, 2006, that Lone Star Funds has picked Kookmin Bank to purchase its 51% stake in Korea Exchange Bank. In an update yesterday, Yonhap News said that Kookmin Bank has agreed to buy a 64.62% stake in Korea Exchange, made up of the stake held by Lone Star and two other shareholders. The United States-based Lone Star and Kookmin Bank have signed a preliminary agreement on the transaction. The TCR-AP stated that Kookmin's possible takeover will result in the creation of a mega bank with KRW270 trillion in assets, which will be twice the size of the second biggest lender, Shinhan Financial Group, whose assets amount to KRW193 trillion as of the end of last year. KEB Will Remain Independent for One Year Korea Exchange Chief Executive Officer Richard Wacker said that the bank will operate as an independent unit for one year after Kookmin's acquisition, Reuters says. Korea Exchange's statement came after Lone Star named Kookmin as preferred buyer. Mr. Wacker has also informed Korea Exchange employees that there would be no forced job cuts after the takeover. About Korea Exchange Korea Exchange Bank -- http://www.keb.co.kr/english/index.htm-- was established in January 1967 by the Government originally as a specialist foreign exchange bank. It retains its strength in trade finance and foreign exchange. In terms of assets, it ranks sixth among Korea's nationwide commercial banks with 7% of system assets. It operates a branch network of 317 domestic and 28 overseas offices. During the economic crisis, significant exposures to troubled corporate borrowers led to a deterioration in the bank's financial health. However, since then, its operating performance stabilized, and the bank has reported eight consecutive quarterly profits since the end of 2003. Moody's Investors Service has placed Korea Exchange Bank's D- bank financial strength rating on review for possible upgrade. =============== M A L A Y S I A =============== AFFIN HOLDINGS: To Seek Shareholders' OK for General Mandate ------------------------------------------------------------ Affin Holdings Berhad proposes to seek shareholders' approval for a general mandate on recurrent related party transactions of revenue or trading nature, which are necessary for the Company's day-to-day operations in line with Paragraph 10.09 of the Listing Requirements, at its Annual General Meeting on April 14, 2006. A Circular to Shareholders setting out further details of the Proposed Shareholders' Mandate will be dispatched to the shareholders in due course. The Company's 30th Annual General Meeting will be held at the 13th Floor, Bangunan LTAT, in Jalan Bukit Bintang, 55100 Kuala Lumpur. Headquartered in Kuala Lumpur, Malaysia, Affin Holdings Berhad -- http://www.affin.com.my/-- is engaged in commercial banking, merchant banking, finance company business, stock broking and asset management business. The Company's other activities include the provision of insurance services, lease and hire purchase financing, nominee services and investment holding. Operations are carried out principally in Malaysia. Affin Holdings had experienced hefty losses in the past because of huge loan provisions and impairment of assets. However, the Affin Group is starting to recover as a result of the hard work and professionalism displayed by management at all levels of the organization. APEX EQUITY: Buys Back MYR5,774 Worth of Shares ----------------------------------------------- On March 21, 2006, Apex Equity Holdings Berhad bought back 13,000 ordinary shares for a total cash consideration of MYR5,773.58. The minimum price paid for each share purchased was MYR0.440 and the maximum was MYR0.445. After the purchase, the cumulative outstanding treasury shares have reached 2,823,000. On March 22, 2006, the Company bought back 30,000 ordinary shares for MYR13,387.24, according to a report by the Troubled Company Reporter - Asia Pacific. Apex Equity Holdings Bhd -- http://www.apexequity.com.my/-- is principally engaged in stock and share broking, securities dealing, property holding, provision of portfolio management, investment advisory and nominee services, establishment and management of unit trust and property and investment holding. Operations of the Group are principally carried out in Malaysia. The Company has suffered five consecutive years of losses beginning 2001. It has incurred a net loss of MYR32,932,000 in the fourth quarter of the fiscal year ending December 31, 2005, which is an improvement from the fourth quarter 2004 net loss of MYR76,596,000. BIMB HOLDINGS: Regulator to Consider 'Proposed Go Waiver' --------------------------------------------------------- The Securities Commission on March 20, 2006, said it will consider the application by BIMB Holdings Berhad's major shareholder, Lembaga Tabung Haji, to implement a "Proposed Go Waiver" pursuant to terms of the Malaysian Code on Takeovers and Mergers. Under the Proposed Go Waiver, BIMB has procured a written irrevocable undertaking from its Lembaga Tabung Haji to subscribe in full for its entitlement under a proposed rights issue of up to 306,938,750 new ordinary shares of MYR1.00 each in BIMB. In addition, Lembaga has provided an undertaking that it will subscribe for additional rights shares not taken up by other entitled shareholders under the Proposed Rights Issue. The additional undertaking is however conditional upon a proposed exemption being granted to Lembaga from having to undertake a mandatory offer for the remaining BIMB Shares not already owned by them upon the completion of the Proposed Rights Issue. In view of the additional undertaking, Lembaga's shareholdings in BIMB as of September 30, 2005, may potentially increase from 29.66% to approximately 53.11% upon completion of the Proposed Rights Issue, assuming none of other MIBM shareholders subscribe for their respective entitlements for the Rights Shares. As such, Lembaga would have gained control of more than 33% of the voting shares in BIMB. Lembaga proposes to seek a waiver under the relevant Practice Note of the Code. Meanwhile, the Securities Commission will only consider Lembaga's application if BIMB: -- obtains the approval of independent holders of BIMB voting shares in a general meeting in which the interested parties are to abstain from voting; and -- provides a competent independent advice to the BIMB shareholders. In addition, Lembaga is required to disclose the purchase of a total of 217,300 BIMB shares in the open market through its internal and external fund managers since the date of negotiation with BIMB directors with respect to the Proposed Rights Issue in the independent advice circular to BIMB shareholders. The Proposed GO Waiver will not have an impact on the earnings of the BIMB Group. However, the Shareholder's Advance will be utilized for the purposes of recapitalizing BIMB and as such is expected to contribute positively to the earnings of the Group for the financial year ending June 30, 2006. Headquartered in Kuala Lumpur, Malaysia, BIMB Holdings Berhad -- http://www.bankislam.com.my/-- is an investment holding company, which operates along Islamic principles. The Company was incorporated in Malaysia on March 20, 1997, and was listed on the Main Board of the Kuala Lumpur Stock Exchange on September 16 in the same year. Core subsidiaries of the Group are involved in various Islamic financial service activities including banking, stock-broking, leasing and other related services. The Bank has incurred substantial losses since 2000 due to huge financing costs and high provisions for loss-making offshore units. BIMB HOLDINGS: Unit Releases FY2006 Key Performance Indicators -------------------------------------------------------------- Bank Islam Malaysia Berhad, a wholly owned subsidiary of BIMB Holdings Berhad, disclosed its headline Key Performance Indicators for fiscal year 2006 and its three-year headline KPIs. The headline KPIs represent the main focus of Bank Islam for the FY2006 period. These headline KPIs are targets or aspirations set by the company as a transparent performance management practice. These headlines shall not be construed as either forecasts, projections or estimates of the company or representations of any future performance, occurrence or matter as the headlines are merely a set of targets/aspirations of future performance aligned to the company's strategy. FY2005/06 Headline KPIs * Contain Non-Performing Financing to below 25%. * Improve Risk Weighted Capital Ratio to 12%. Three-year Headline KPIs for FY2006-FY2009 * To grow revenues by 20% year on year from 2006 -2009. * To cap expense growth to 5% year on year from 2006-2009. * Return to profitability by FY2007, target ROE 5%. For year ended June 2005, BIMB reported an after tax and zakat loss of MYR508 million on provisions of MYR777 million. Since then the Bank has received an interim capital injection of MYR280 million from its shareholder, BIMB Holdings Berhad. Currently, BIMB is in the midst of a recapitalization exercise to rebuild its Tier-1 capital and further improve Improve Risk Weighted Capital Ratio. Among options for recapitalization involves the rights issue that has received approval in principle from regulators. Recapitalization options also include foreign parties acquiring stakes at various levels of shareholding, at the Bank and at the holding company. The main focus of the Board and management of BIMB is on managing NPFs. A bank-wide integrated Risk Management architecture is being implemented as a measure to prevent further NPFs. Compulsory guidelines on target markets, risk scoring and risk acceptance criteria framework have been introduced. Recovery efforts have been intensified and focus is achieved through acquiring specialist resources in the area of recovery. In the pipeline, there is plan to create a special purpose vehicle to sell the NPFs or manage them separately from the Bank. In building its franchise, BIMB have had to reorganize its corporate and emerging corporate business strategy. BIMB is expected to grow its revenue by 20 % this year. The BIMB Group includes BIMB Securities (Holdings) Sdn. Bhd, BIMB Venture Capital Sdn. Bhd., BIMB Musyarakah Satu Sdn. Bhd., Syarikat Al-Ijarah Sdn. Bhd. and Syarikat Takaful Malaysia Berhad. Rationalization plan for the BIMP Group of companies is on going. Headquartered in Kuala Lumpur, Malaysia, BIMB Holdings Berhad -- http://www.bankislam.com.my/-- is an investment holding company, which operates along Islamic principles. The Company was incorporated in Malaysia on March 20, 1997, and was listed on the Main Board of the Kuala Lumpur Stock Exchange on September 16 in the same year. Core subsidiaries of the Group are involved in various Islamic financial service activities including banking, stock-broking, leasing and other related services. The Bank has incurred substantial losses since 2000 due to huge financing costs and high provisions for loss-making offshore units. CONSOLIDATED FARMS: Posts Lower Losses in 4Q/FY05-06 ---------------------------------------------------- Consolidated Farms Bhd suffered a lower net loss of MYR20.58 million for the financial year ended January 31, 2006, from MYR42.86 million last year mainly due to the lower level of operations. Releasing its results, the Company said revenue fell 76.4% to MYR2.48 million from MYR10.48 million previously. The loss per share was 98.5 sen, down from 205 sen. Summary of Key Financial Information Individual Period Cumulative Period Current Year Preceding Year Current Year Preceding Year Quarter Corresponding to Date Corresponding Quarter Period 31-01-2006 31-01-2005 31-01-2006 31-01-2005 MYR'000 MYR'000 MYR'000 MYR'000 * Revenue 865 1,102 2,475 10,477 * Profit/(loss) before tax -4,442 -5,808 -20,678 -44,695 * Profit/(loss)after tax and minority interest -4,416 -5,782 -20,577 -42,859 * Net profit/(loss) for the period -4,416 -5,782 -20,577 -42,859 * Basic earnings/(loss) per shares (sen) -21.13 -27.67 -98.46 205.09 * Dividend per share (sen) 0.00 0.00 0.00 0.00 * Net assets per share (MYR) As at end of As at Preceding Current Quarter Financial Year End -3.0900 -2.1000 The Company's financial report is available free of charge at: http://bankrupt.com/misc/tcrap_consofarms032306.pdf http://bankrupt.com/misc/tcrap_consofarmnotes032306.pdf Headquartered in Kuala Lumpur, Malaysia, Consolidated Farms Bhd -- http://www.confarm.com/-- is engaged in poultry farming which includes operating of breeder farm, production and processing of organic fertilizer, feed milling and manufacturing and sale of egg trays. Other activities include manufacturing and processing of eggs into pasteurized eggs and de-shelled hard-boiled eggs. The Company is a Practice Note 4 concern currently undergoing a restructuring exercise to address its debt problem. The company had appointed Deloitte KassimChan Business Services Sdn Bhd as advisor for the restructuring exercise. Consolidated Farms was mired with MYR122-million debt on account of its expansion plan, which included the purchase of equipment and facilities. DENKO INDUSTRIAL: Lists and Quotes New Shares --------------------------------------------- Denko Industrial Corporation Berhad's additional 395,318 new ordinary shares of MYR1.00 each was granted listing and quotation on March 23, 2006. The shares arose from the second interest payment on MYR7,906,390 nominal amount of 5% irredeemable convertible unsecured loan stocks 2004/2007. Headquartered in Kuala Lumpur, Malaysia, Denko Industrial Corporation Berhad is involved in the manufacture and sale of plastic raw materials, semi-finished products and chemicals, plastic pipes and plastic injection molding products, foundation garments made of cotton, polyester and other types of fabrics, consumer and industrial products. Its other activities include the provision of maintenance services for sewerage systems and waste water treatment plants, production of packing material and vacuum foams, property rental, wholesaling and retailing of foodstuff and investment holding. The Company was released from its Practice Note 4 status in March 2004 following the implementation of the Company's debt-restructuring scheme. The Bursa Malaysia, however, still monitors the Company's operations, as it continues to book losses even after its financial condition was regularized. HOCK SIN: Directors Block Shareholders' Request ----------------------------------------------- The directors of Hock Sin Leong Group Berhad resolved to shelve a request by its two shareholders to nominate additional directors in view of the pending legal action in the Kuala Lumpur High Court under Suit No. D3-22-360-2005 and the Injunction Order obtained by the Company against the two Shareholders, which remain effective and enforceable. As reported by the Troubled Company Reporter - Asia Pacific on March 21, 2006, Hock Sin Leong Group Berhad revealed that its shareholders, Leeco Realty Sdn Bhd and General Strategy Sdn Bhd, proposed to elect additional directors at the Company's forthcoming Annual General Meeting on March 30, 2006. On March 23, 2005, Leeco Realty Sdn. Bhd., General Strategy Sdn. Bhd., Mr. Lee Keok She and Mr. Lee Geok Eong who in total represent 52.74% of the issued and paid up capital of Hock Sin Leong, served the Company with a Writ of Summons. The Company immediately applied for an injunction, which was approved by the Kuala Lumpur High Court on June 10, 2005. Under the terms of the injunction: -- Leeco Realty Sdn Bhd and General Strategy Sdn Bhd were restrained from proceeding with and voting at the Extraordinary General Meeting last June 14, 2005; -- the Shareholders were restrained from moving or conducting or holding or otherwise in whatsoever manner proceeding with the EGM and from considering and if thought fit, passing the ordinary resolutions contained in the said Notice of EGM or such other similar resolutions at any subsequent adjourned or other meeting. Headquartered in Kuala Lumpur, Malaysia, Hock Sin Leong Group is involved in assembling, distribution and servicing of electrical and electronic products. Its other activities include the provision of investment holding and management services. The Company has been continuously incurring impairment losses in the past years. In the fourth quarter of the year ending Dec. 31, 2005, the Company booked a net loss of MYR128,000. KIG GLASS: Chinese Unit Files for Bankruptcy -------------------------------------------- KIG Glass Industrial Berhad's Chinese subsidiary, Zibo Jiali Glass Industry Company Limited, has on March 22, 2006, applied for voluntary bankruptcy at Zibo City Middle Court in the People's Republic China. The move came after the unit shut down its production operation last month. KIG said that the bankruptcy application is unlikely to make an immediate impact on its finances. Headquartered in Johor Darul Ta'zim, Malaysia, KIG Glass Industrial Berhad -- http://www.kedaung.com/-- manufactured and sold glassware, glass blocks and carton boxes. The firm's other activities included manufacturing of ceramic roof tiles. Its operations were carried out in Malaysia and China. Due to hefty losses and inability to pay its mounting debts, the Company ceased operation in May 2005. It is now trying to avert a wind- up action filed by United Overseas Bank (Malaysia) Berhad on December 12, 2005. The Company is also working on a restructuring agreement with car parts supplier Permintex Holdings Sdn Bhd. MALAYSIA AIRLINES: Unveils Headline Key Performance Indicators -------------------------------------------------------------- Malaysia Airlines unveiled its medium and long term headline Key Performance Indicators for fiscal 2006 and its three-year headline KPIs. These headline KPIs have been set and agreed by the Board of Directors and management of Malaysia Airlines and is part of the Business Turnaround Plan which was announced on February 27, 2006. The Business Turnaround Plan was developed using the GLC Transformation Manual as a guide. It takes into account the recommendations in the manual and adapts these for implementation in Malaysia Airlines in the context of the business turnaround. FY2006 Headline KPIs * Net loss of MYR620 million compared to a net loss of MYR1.27 billion for the nine-month period ended December 31, 2005. * Cash surplus of MYR1.0 billion. Malaysia Airlines is already undertaking a series of measures to raise MYR4 billion in cash through internal and external sources to tide the airline through the current cash crisis. * Profit of MYR107 million for MASkargo compared to initial forecasts of MYR47 million. * On time performance of 80% for flight schedules. * Number of incidents not more than three cases per month. Three-year Headline KPIs for FY2006-FY2008 * In 2007, the plan will focus on improving efficiency and capabilities to realize a net income of MYR50 million. * In 2008, the focus will be on new growth opportunities to realize a net income of MYR500 million. * The MAS Way provides the framework for our Business Turnaround Plan, which is carefully sequenced over the next three years to deliver cash, profitability and growth-in that order of intensity and focus. The MAS Way * Commercial: Flying to win customers-MAS will reconfigure its network and product portfolio to ensure that it has the tools and capabilities to be a top-tier player. * Operations: Mastering operational excellence-MAS will build a unique operating capability. This capability will be reflected not only improved operational reliability, but also in higher productivity. * Finance: Financing and aligning the business on P&L-MAS will relentlessly increase profits with the support of a world-class finance function that ensures true financial accountability, transparency and performance orientation. * People: Unleashing talents and capabilities-MAS is committed to its people it has the passion and talent to achieve the goals. * Stakeholders: Winning coalitions- MAS needs the resolute support of the Government, its employees, managers, customers, suppliers, agents and investors. It is only with the support of these stakeholders that MAS can have the mandate it needs to make the changes that will ensure long-term success. Malaysia Airlines has launched a robust set of KPIs to track impact and measure our success. These KPIs serve as targets and aspirations for the company and will be improved and adapted to suit the evolving airline industry. Management has instituted a cross-company set of KPIs that will allow it to measure its progress on an ongoing basis. More details of the media release is available free of charge at: http://bankrupt.com/misc/tcrap_mashead032306.doc Headquartered in Selangor, Malaysia, Malaysia Airlines -- http://www.malaysiaairlines.com/-- services domestic and international flights. Its global network comprised 32 domestic and 86 international destinations. Of the 86 international destinations, 17 were operated in collaboration with our airline partners. The carrier is currently facing financial difficulties, and is set to report a net loss of MYR1.3 billion for the nine month to December 31, 2005, due to high fuel and operating costs, and unprofitable routes. Early March 2006, it unveiled a radical rescue plan to raise MYR4 billion in order to stay afloat and return to profitability by next year. Under the restructuring plan, the airline pledged to cut its budget by 20% across the board, terminate many unprofitable routes, freeze recruitment except for front-line staff, crack down on corruption by encouraging Whistle-blowing and stop corporate sponsorship. MAXIS COMMUNICATIONS: Future Hangs on Aircel's Hands ---------------------------------------------------- Aircel India Limited is expected to provide long-term growth for Maxis Communications Berhad amid cutthroat competition in the telecommunications industry, The Edge Daily reports. Market analysts, however, cautioned Maxis that its earnings for the current fiscal year might reflect start-up losses at Aircel. Still, analysts remain upbeat on Aircel as a possible growth catalyst for Maxis. Mayban Research Securities upgraded its recommendation for Maxis from "hold" to "buy" and maintained its fair value for Maxis at MYR9.70 per share. HLG Research retained its "hold" recommendation with a fair value of MYR8.95, while Avenue Securities Sdn Bhd maintained an "under-perform" call on Maxis with a target price of MYR7.80. Avenue Research remained negative on Maxis in the medium term on the Aircel acquisition as it would be required to gear up and be committed to substantial capital obligations. Maxis would have to compete with a multitude of bigger players in an intense operating environment before managing to reap positive return in the fourth or fifth year of the venture, it said. Meanwhile, HLG Research estimated that Maxis might have to shell out US$412 million (MYR1.53 billion) to US$426 million over 10 years for its third generation network licence alone since it may have to pay MYR284 million of upfront and annual fee for 2006 for its 10Mhz spectrum. Headquartered in Kuala Lumpur, Malaysia, Maxis Communications Berhad -- http://www.maxis.com.my/main.asp/-- provides complete mobile and fixed-line telecommunications services as well as broadband and other Internet-related services, and mobile phones and other telecommunications equipment by which people can keep in touch. The company was founded in 1995 and first started on the Kuala Lumpur Stock Exchange in 2002. The Company was once touted as one of the world's most lucrative firms. However, Maxis' operations were hurt by its underperforming Indonesian unit, PT Natrindo Telepon Seluler. Maxis decided to restructure its business in order to improve its bottomline. At present, PT Natrindo continues to put pressure on Maxis' earnings as the restructuring is still in progress. Analysts do not expect the Indonesian operation to break even until 2007. MAXIS COMMUNICATIONS: Acquires South Asia Shares ------------------------------------------------ Global Communication Services Holdings Ltd, a wholly owned subsidiary of Maxis Communications, has on March 21, 2006, acquired the entire beneficial ownership of 10,000 equity shares of INR10 each in South Asia Communications Private Limited for a cash consideration of INR100,000. GCSH has subscribed for additional 6,207,278 South Asia Shares, for a cash consideration of INR62,072,780, and for 1,634,461,328 redeemable preference shares of INR10 each in South Asia for a cash consideration of INR16,344,613,282. South Asia is a private limited liability company, which was incorporated in the Republic of India on February 16, 2006. Its authorized share capital is INR20,000,000,000 divided into 100,000,000 South Asia Shares and 1,900,000,000 unclassified South Asia Shares. After the said transactions, the issued and paid-up share capital of South Asia will be INR16,406,786,060 comprising 6,217,278 South Asia Shares and 1,634,461,328 South Asia RPS. South Asia will be used as a vehicle by Maxis to subscribe for the redeemable preference shares in Deccan Digital Networks Private Limited, a joint venture company incorporated in the Republic of India by GCSH and Sindya Securities & Investments Private Limited. The joint venture company was established for the purpose of investing in Aircel Limited. Headquartered in Kuala Lumpur, Malaysia, Maxis Communications Berhad -- http://www.maxis.com.my/main.asp/-- provides complete mobile and fixed-line telecommunications services as well as broadband and other Internet-related services, and mobile phones and other telecommunications equipment by which people can keep in touch. The company was founded in 1995 and first started on the Kuala Lumpur Stock Exchange in 2002. The Company was once touted as one of the world's most lucrative firms. However, Maxis' operations were hurt by its underperforming Indonesian unit, PT Natrindo Telepon Seluler. Maxis decided to restructure its business in order to improve its bottomline. At present, PT Natrindo continues to put pressure on Maxis' earnings as the restructuring is still in progress. Analysts do not expect the Indonesian operation to break even until 2007. PROTON HOLDINGS: To Announce New Foreign Partner Next Month ----------------------------------------------------------- Proton Holdings Berhad will announce at the end of April a new foreign partner in addition to its current tie-up with Japan's Mitsubishi Motors Corporation and Germany's Volkswagen AG, Business Times reports. Proton Managing Director Syed Zainal Abidin Syed Mohamad, who earlier commented that his Company would announce an alliance with a Chinese automaker this week, told the Business Times it would not be so soon. He added that final negotiations will be concluded next month. He also stressed that Proton's new partner will not necessarily be Chinese. Mr. Syed Zainal previously said that Proton is looking at tapping the huge markets in China and India. It has been talking to parties in both countries about the possibility of collaborating to make and distribute vehicles. Meanwhile, The Star Online speculated that one of the potential Chinese partners is JinHua Young Man Group Co., a company specializing in high-end coaches. Top Proton management reportedly visited JinHua's headquarters in the eastern Chinese province of Zhejiang in January. Another name touted is Cherry Auto Co. Proton's previous attempts at penetrating the Chinese market, through a tie-up with Goldstar Heavy Industrial Co., were fruitless due mainly to government red tape. Proton, which has been losing money and seeing its domestic market share shrink, entered an alliance with former partner Mitsubishi in February. Mitsubishi, which had been a major partner of Proton's since the latter's inception in 1983, sold its stake in the company in 2004. Under the new joint venture, Mitsubishi holds no shares but is merely a technical partner and will help Proton produce new cars. Proton, which had hoped to forge a key alliance with Volkswagen, had to settle for cooperation on a smaller scale after negotiations broke down in January due to a dispute over equity holdings. The German carmaker had wanted a controlling stake in Proton but national interest overruled it. Both parties will now work on specific projects such as supplying products and components from Volkswagen. Headquartered in Selangor Darul Ehsan, Malaysia, Perusahaan Otomobil Nasional Berhad or Proton Holdings Berhad -- http://www.proton-edar.com.my/-- is engaged in manufacturing, assembling, trading and provision of engineering and other services in respect of motor vehicles and related products. Its other activities include property development, trading of steel and related products, engine and technologies research, development of automotive related technologies, investment holding, importation and distribution of motor vehicles, related spare parts and accessories, holds intellectual property, provides engineering consultancy, operates single make race series and carries out specific engineering contracts. The Group's operations are carried out in Malaysia, England, Australia, Socialist Republic of Vietnam and the United States of America. Proton has recently suffered plunging profits due to dwindling car sales and cutthroat competition. PROTON HOLDINGS: Car Prices to Fall With New Policy --------------------------------------------------- The prices of cars made by Proton Holdings Berhad is expected to fall following cuts in import duty for cares manufactured in the region, Dow Jones reveals, citing Malaysian Prime Minister Abdullah Ahmad Badawi. The Government on Tuesday slashed the import duty for vehicles made in member countries of the Association of Southeast Asian Nations, or Asean, to 5% from 15%. Minister Abdullah also said Proton won't be hurt by the country's national auto policy, which includes cuts in import duty and excise duty for cars made in other Asean member countries, saying the Company has indicated its it willing to comply with national auto policy to compete with its rivals in the auto industry. Headquartered in Selangor Darul Ehsan, Malaysia, Perusahaan Otomobil Nasional Berhad or Proton Holdings Berhad -- http://www.proton-edar.com.my/-- is engaged in manufacturing, assembling, trading and provision of engineering and other services in respect of motor vehicles and related products. Its other activities include property development, trading of steel and related products, engine and technologies research, development of automotive related technologies, investment holding, importation and distribution of motor vehicles, related spare parts and accessories, holds intellectual property, provides engineering consultancy, operates single make race series and carries out specific engineering contracts. The Group's operations are carried out in Malaysia, England, Australia, Socialist Republic of Vietnam and the United States of America. Proton has recently suffered plunging profits due to dwindling car sales and cutthroat competition. SBBS CONSORTIUM: Wind-up Petition Hearing Moved to May 10 --------------------------------------------------------- The winding-up proceeding instituted by Alliance Bank Malaysia Berhad against SBBS Consortium Berhad, which was fixed for hearing on March2 22, 2006, has been adjourned to May 10, 2006. A winding up petition was served on the Company on May 17, 2005, by Alliance Bank for failing to pay its MYR860,718.75-debt to the Bank. Headquartered in Kuala Lumpur, Malaysia, SBBS Consortium Berhad is engaged in the trade, manufacture and sale of molded and sawn timber and other wood-based products. Its other activity is investment holding. Due to its inability to service loan facilities, the Company had entered into various negotiations with its bank creditors, and in order to ensure that these creditors are treated on a a pari passu basis, the Company had ceased making repayments to its bank creditors on an ad-hoc basis. As a consequence of this treatment, its bank creditors have taken various measures to recover their outstanding loans. Negotiations between the Company and its bank creditors are nonetheless, still continuing. The Company is considering various sources of new business and funds to address its financial position, and had on June 24, 2005, appointed Covenant Equity Consulting Sdn Bhd to advise on its options. Currently, the Company is working to implement corporate rehabilitation exercises to turn its business around. TELEKOM MALAYSIA: Shares Issued Pursuant to Employees' Scheme ------------------------------------------------------------- Telekom Malaysia Berhad's additional 130,000 new ordinary shares of MYR1.00 each issued pursuant to the Company's Share Option Scheme will be granted listing and quotation with today, March 24, 2006. Headquartered in Kuala Lumpur, Malaysia, Telekom Malaysia -- http://www.telekom.com.my/-- which once owned Malaysia's telecommunications landscape, now faces growing competition. Telekom Malaysia provides voice and data services through three primary operating units: TelCo, its core telecom business; Telekom Multimedia, which develops new media businesses; and ServiceCo, which oversees operational activities such as fleet and property management. The company is also a leading Internet Service Provider. Among Telekom Malaysia's subsidiaries are units that publish phone directories and operate fiber optic networks. It sold its cellular unit in 2002 but gained control of Celcom (Malaysia) in 2003. The company also owns stakes in businesses in nine countries in Asia and Africa. The Company had been locked up in disputes with different companies in the past, which brought heavy losses to the firm. Some of its units are also facing the possibility of being wound up by creditors. ===================== P H I L I P P I N E S ===================== LAFAYETTE MINING: Gets AU$41.8 Mln Funding to Resume Operations --------------------------------------------------------------- Lafayette Philippines Incorporated, a local unit of Australian firm Lafayette Mining limited, has secured AU$41.8 million from investors to resume normal operations, as well as a new management team and base metal commissioning at its mine in Rapu-Rapu, Albay, Dow Jones relates. ABN AMRO Morgans will buy AU$11 million worth of shares from LPI, and has allotted AU$5.5 million for placement with an unknown overseas firm, pending LPI shareholder approval. AuSelect agreed to invest AU$5 million into the Company, Lion Manager will invest AU$2 million, LPI's joint venture partners LGI and KORES will place AU$6.7 million in subordinated debt, while the remaining AU$10 million will be sourced from the Company's banking syndicate in Rapu-Rapu. LPI released a statement indicating that investment banker David Baker, who facilitated the funding for the Company, would replace Andrew McIlwain as managing director. Mr. McIlwain resigned as manager of LPI on March 23, 2006. According to the statement, the funding would "provide a financial buffer for the Company's base metal commissioning," which has already started and is slated to produce its first output next month. About LPI Headquartered in Melbourne, Australia, Lafayette Mining, Inc. -- http://www.lafayettemining.com/-- has been listed on the Australian Stock Exchange since August 1997. It focuses on developing a polymetallic project involving copper, gold, zinc and silver on the Island of Rapu-Rapu in the Philippines, through Lafayette Mining Philippines, Inc. The Department of Environment and Natural Resources' former secretary, Mike Defensor, closed Lafayette Philippines in 2005 when the Company's mine tailings were accidentally spilled into the Albay Gulf last October, killing thousands of fish and destroying the livelihood of fishermen in the area. The Company was also fined PHP10.7 million for violating the Clean Water Act and its environmental compliance certificate. Troubled Company Reporter reported on March 17, 2006, that the President formed a fact-finding body headed by Sorsogon Bishop Arturo Bastes, to investigate the Company's mine tailing spills. MANILA ELECTRIC: May Increase Power Rates to Service Obligations ---------------------------------------------------------------- Manila Electric Company may have to raise its customer rates after its sister firm, First Gas Power Corporation, and parent First Gen Corporation agreed to settle a PHP7.5 billion claim, The Manila Times says. First Gen disclosed to the Philippine Stock Exchange that it would pay the amount to a consortium operating a natural gas-to- power project in Malampaya, comprising Chevron Texaco, the Philippine National Oil Co.-Exploration Corporation, for natural gas produced from 2002 and 2003, which FGPC failed to consume due to overcapacity in the Luzon power grid. FGCP's gas purchase agreement with the consortium includes a take-or-pay provision, which means that it would have for gas produced even if it did not consume it. Since Meralco gets majority of its power from First Gen's power plants, the Company has a power purchase agreement with a pass- through provision for fuel payments, meaning any obligations of FGPC and First Gen are passed on to Meralco on a back-to-back basis. The Times reports that FGPC had already paid PHP680.16 million of the PHP7.5 billion debt, which is slated to be paid in full by December 26, 2009. About Manila Electric Headquartered in Ortigas, Pasig City, the Manila Electric Company -- http://www.meralco.com.ph/-- is the largest utility in the Philippines, providing power to 4.1 million customers in metropolitan Manila and more than 100 surrounding communities. As deregulation takes effect, Meralco is reducing its dependence on state-owned National Power Corp. by increasing the amount of power it purchases from independent power producers. Meralco is also preparing for competition by moving into non-regulated activities, including energy consulting, independent power production, engineering, fiber optics, e-commerce, and real estate. Meralco started to incur huge losses in 2003 on reduced power sales and a decline in residential power consumption due to rising power costs. In 2004, the Energy Regulatory Commission ordered the power utility firm to refund some PHP90 million to its customers for overbillings. On June 2, 2004, Meralco adopted a 13.27-centavo power rate hike, which was approved by the Energy Regulatory Commission, to offset its losses. However, the rate hike was nullified by the Supreme Court in February 2006. Troubled Company Reporter - Asia Pacific reported on March 14, 2006, that the Company had planned to reduce its rates by 82 centavos per kilowatt-hour this month, due to higher dispatch levels from its independent power producers. NATIONAL FOOD: Delays PHP1.6-Bln Project to Seek Private Aid ------------------------------------------------------------ The National Food Authority is postponing a planned PHP1.6 billion post-harvest infrastructure project to allow the private sector to lead the project, which is meant to support increased rice output, The Manila Bulletin reports. Citing NFA administrator Gregorio Tan Jr., the Bulletin reports that the NFA is awaiting government incentives to attract investments from the private sector. Mr. Tan said that the NFA stopped purchasing more equipment and renewing old warehouses, and it had bought several rice mills to improve the quality of NFA rice to be distributed. The Department of Agriculture aims to increase rice production by 3.4% to 15.1 million metric tons from 14.6 million metric tons, due to the La Nina phenomenon that would bring excess rain despite the summer season. With increased rice production, the NFA hopes to reduce its rice imports, though the rice interagency committee needs to verify whether a reduction is possible. At present, the Philippines has imported 835,000 metric tons of rice, and the NFA estimates that it still needs to import up to 1 million tons of rice for consumption. The private sector has a March 31, 2006, deadline to pay an advanced tariff for 350,000 metric tons of rice allocated for its consumption, while it has up to May 31, 2006, to import a remaining 138,000 metric tons of rice. Headquartered in Quezon City, Philippines, National Food Authority -- http://www.nfa.gov.ph/-- is a government organization regulating the rice and corn industry by stabilizing grain supply and prices and maintaining food security in cereals. NFA is among the state-owned firms, which push up the country's outstanding public sector debt. In 2005, the agency incurred an additional PHP6-billion debt to bankroll cost of rice and corn importation, as well as payment of import duties. The Company is seeking a private sector takeover of its importation role so it could gradually make a turnaround from its PHP22-billion loss in 2005. On March 13, 2006, Troubled Company Reporter - Asia Pacific reported that the Company is slated to post a loss of PHP8 billion this year. NATIONAL POWER: Consumer Groups Seeks Same Power Rate as Meralco ---------------------------------------------------------------- A Northern Luzon-based consumer group asked the National Power Corporation to charge rates similar to that of the Independent Power Producers of the Manila Electric Company, so that provincial consumers' burdens from rising power costs could be eased, the Philippine Inquirer says. According to the Timpuyog Mannalon Amianan, Meralco reduced its power rates by PHP0.08 per kilowatt-hour after it increased its electricity purchase from its independent power producers and reduced its off-take from Napocor. Meralco said the rise in volume from its IPPS lowered generation costs. The Inquirer cites the Timpuyog group as saying that Napocor's higher power generation rates could lead to "the slow growth of industries in the countryside." The group added that since Napocor's generators are older, it would stand to follow that its generation rates would also be lower, than if more recent generators were used. ================= S I N G A P O R E ================= ALLIANCE TECHNOLOGY: Court Extends Judicial Management Order ------------------------------------------------------------ The Judicial Managers of Alliance Technology and Development Limited advised that the High Court of Singapore has entered an order extending their judicial management to January 31, 2007. Incorporated as a private limited company on July 28, 1972, Alliance Technology and Development Limited acquired public status on April 15, 1978. Following several acquisitions and the sale of the property known as Ambassador Hotel during 1982, the Company changed its principal activities to that of an investment holding company. It also provides management services to its subsidiaries and associate companies. In April 1991, it took its present name. At present, the Company is under judicial management. CHANNEL GROUP: Wind-Up Petition Hearing Set Today ------------------------------------------------- An application for hearing on the wind-up order against Channel Group Private Limited has been filed with the Singapore High Court and is fixed for hearing today. Contact: Colin Ng & Partners Solicitors 50 Raffles Place #29-00 Singapore Land Tower Singapore 048623 GHIM PENG: To Hold Meeting on April 7 ------------------------------------- A contributors' and creditors' meeting will be convened for Ghim Peng Hotel Private Limited on April 7, 2006, at 10:00 a.m. and 10:30 a.m. respectively at: 18 Cross Street #08-01 Marsh & McLennan Centre Singapore 048423 The meeting will discuss the approval of the liquidators' fees and to propose dividends in favor of creditors and any other business. Contact: Chee Yoh Chuang Lim Lee Meng Liquidators c/o RSM Chio Lim 18 Cross Street #08-01 Marsh & McLennan Centre Singapore 048423 SPECTRUM INFOCOM: Wind-Up Hearing Slated for March 31 ----------------------------------------------------- A petition to wind up Spectrum Infocom International Private Limited has been filed with the High Court of Singapore on March 9, 2006, by Inaccess Systems Private Limited. The petition is fixed for hearing with the High Court on March 31, at 10:00 a.m. Any creditor or contributory of the Company desiring to support or oppose the Petition may appear at the time of the hearing. Contact: Wong Thomas & Leong Solicitors for the Petitioner No. 5 Shenton Way, #26-05/07 UIC Building, Singapore 068808 STARTECH ELECTRONICS: Finalizes Maybank Debt Repayment Terms ------------------------------------------------------------ The Directors of Startech Electronics Limited advised that the maximum number of Rights Shares to be issued under the Proposed Rights Issue have been revised to 595,576,664 Rights Shares, assuming that: (i) 94,502,371 outstanding warrants issued by the Company under the deed poll dated May 17, 2004, are exercised and all new Shares have been issued pursuant to that exercise by the Books Closure Date; (ii) 1,000,000 new Shares and 1,000,000 Warrants 2004 are issued and allotted to PricewaterhouseCoopers pursuant to the capitalization of the outstanding amount due to PwC for professional services rendered to the Company in 2003 (PWC Fee Capitalization) by the Books Closure Date; and (iii) 1,000,000 Warrants 2004, which were issued to PwC as per item (ii) are exercised and all new Shares have been issued pursuant to such exercise by the Books Closure Date. Accordingly, the terms of the Proposed Rights Issue will be as: The proposed renounceable non-underwritten rights issue of between a minimum of 402,571,922 and a maximum of 595,576,664 Rights Shares at an issue price of SGD0.01 for each Rights Share on the basis of two Rights Shares for every one existing Share held by Shareholders as at the Books Closure Date, fractional entitlements to be disregarded. Proposed Debt Restructuring Exercise The Company has provided a corporate guarantee for an outstanding amount of approximately SGD7.39 million as at February 28, 2006, owed to Malayan Banking Berhad under the revolving credit facility granted by Maybank to the Company's subsidiary, Startech Manufacturing Private Limited. As previously stated on December 30, 2005, Startech Manufacturing has been voluntarily liquidated as it was unable to continue its business by reason of its liabilities. To fulfill its obligations under this corporate guarantee, the Directors advised that the Company has finalized the broad terms with Maybank to restructure the repayment of the Outstanding Amount. The proposed debt restructuring exercise in relation to the Maybank-SMPL Facility comprises: (a) The Maybank Debt-Equity Swap; (b) The Interested Person Transaction; (c) The Proposed Rights Issue; (d) The Grant of Investors Call Options and the Option Shares Issue (e) The Maybank Whitewash Resolution; and (f) The Maybank Swap Shares Options. The objectives of the Proposed Debt Restructuring Exercise are: (a) To preserve the listing status of the Company; (b) To, over time, enable Maybank to receive full settlement of the Outstanding Amount owing by the Company. Maybank will not likely recover any substantial portion of the Outstanding Amount in the event Company goes into liquidation or judicial management; and (c) To restructure the repayment of the outstanding amount to lighten the Group's debt burden. The Company can then focus on the business restructuring and injection of new businesses, which may, in turn, result in a higher share price and consequently, benefit the Shareholders and Maybank. A full-text copy of the amendments to the proposed rights issue, proposed debt restructuring exercise and proposed capital reduction exercise is available free of charge at: http://bankrupt.com/misc/StartechDebtRestructuring032106.pdf Startech Electronics Limited -- http://www.startechgrp.com/-- was incorporated as a private company limited by shares on October 12, 1999, under the name PV Startech Holdings Pte Limited. It changed its name to Startech Electronics Limited on February 5, 2001, when it became a public limited company. Startech Electronics provides electronics manufacturing services, supplemented by the distribution business and switchgear design and assembly business which diversifies the Group's earnings base. Despite posting a SGD17 million net loss in 2003, the Company began restructuring its outstanding loans through a scheme of arrangement with creditors, who had written off part of its debt, as well as transforming its core business and a restructuring of its various operations outside Singapore. STARTECH ELECTRONICS: Unveils Auditor's Report ---------------------------------------------- The Board of Directors of Startech Electronics Limited advised that the Company's external auditors, BDO Raffles, has issued its report on its consolidated financial statements for the year ended December 31, 2005. In their report, BDO Raffles has highlighted the basis of the Company's financial statements preparation and presentation in that it has adopted the going concern basis despite its negative working capital and shareholders' deficit position. In completing the consolidated financial statements of the Group, the Board has considered the developments and the state and progress of its debt and equity restructuring exercise achieved up to the date these financial statements were approved by the Board for issue. The Board believes that the Company and the Group would be able to continue to operate as a going-concern given the steps taken and the progress achieved to date, to restructure its liabilities and to raise funds from its rights issue. The Board is of the view that if the going concern basis is not used as a basis for its financial statements preparation, non- current assets and liabilities currently included in the consolidated financial statements would have to be reclassified as current assets and liabilities, respectively. The consolidated financial statements do not include any of these reclassification adjustments, as they do not have a material impact on the financial statements as presented. Startech Electronics Limited -- http://www.startechgrp.com/-- was incorporated as a private company limited by shares on October 12, 1999, under the name PV Startech Holdings Pte Limited. It changed its name to Startech Electronics Limited on February 5, 2001, when it became a public limited company. Startech Electronics provides electronics manufacturing services, supplemented by the distribution business and switchgear design and assembly business which diversifies the Group's earnings base. Despite posting a SGD17 million net loss in 2003, the Company began restructuring its outstanding loans through a scheme of arrangement with creditors, who had written off part of its debt, as well as transforming its core business and a restructuring of its various operations outside Singapore. TRIBO S.E.A. PRIVATE: Concludes Dividend Distribution ----------------------------------------------------- Tribo S.E.A. Private Limited distributed a first and final dividend on March 23, 2006, at the office of its liquidator, Don M. Ho. Contact: c/o Don Ho & Associates Certified Public Accountants Corporate Advisory & Recoveries Equity Plaza 20 Cecil Street #12-02 & 03 Singapore 049705 Telephone: 6532 0320 (8 lines) Fax: 6532 0331 =============== T H A I L A N D =============== DAIDOMON GROUP: Asked to Submit Rehab Plan to Official Receiver --------------------------------------------------------------- On September 30, 2005, the Central Bankruptcy Court ordered for the rehabilitation of Daidomon Group Public Company Limited's business and appointed the Company to act as planner. The Company as a planner, along with the official receiver, is currently in the process of examining applications for debt repayment to creditors. The Central Bankruptcy Court allowed the Company as Planner to submit a business rehabilitation plan to the official receiver not later than April 21, 2006. Headquartered in Bangkok, Thailand, Daidomon Group Public Co. Limited -- http://www.daidomon.co.th/-- operates barbecue and Japanese food restaurants under the brand name of Daidomon. The Group's products include barbecue, dessert and drinks, and bottled sauce. The Company is currently undergoing rehabilitation. THAI AIRWAYS: Projects Profit Increase in Second Quarter -------------------------------------------------------- Thai Airways International Public Company Limited eyes an increase in profit in the second quarter of this year, Bangkok Post reports. The Company expects second quarter profit to reach above the previous quarter's THB3.8 billion mark, for the present political crisis has yet to hurt business. According to Thai Airways acting president, Somchainuk Engtrakul, the cabin factor in the first three months of this year is still good, but gave no specific forecast. The passenger load factor since January averaged to about 76.3%, and the trend was on the rise. Headquartered in Bangkok, Thailand, Thai Airways International Public Company Limited -- http://www.thaiairways.com/-- is engaged in the operation of domestic and international air transportation service. This includes support services such as freight forwarding, warehousing, on-line ticketing, hotel and restaurant operations, fuel storage and filling for aircraft at the airport Air catering and fuel pipeline transportation. The Group also provides services in other type of transportation in connection with the information technology services, distributes computer services, flight reservation and other travel-related services. The company underwent a major business restructuring last year after it plunged to a loss of THB4.78 billion in the April-June period, canceling or reducing flights to unprofitable routes, and adding more high-yield routes. It also implemented a more proactive marketing strategy with a focus on corporate customers, in a bid to improve its passenger yield. TONGKAH HARBOUR: Unveils Resolutions Passed at Board Meeting ------------------------------------------------------------ At the meeting of Tongkah Harbour Public Company Limited's board of directors, the shareholders and investors passed a resolution to appoint Somsak Potisat as Independent Director and Audit Committee Member, replacing Tiwa Sukumoljantra, effective as of March 22, 2006. The Company's Audit Committee now consists of three members: Kriang Kietfuengfoo -- Independent Director and Chairman of Audit Committee Arida Vidhyananda -- Independent Director and Audit Committee Member Somsak Potisat -- Independent Director and Audit Committee Member The Board recommends to the appointment of Nopadol Mantajit as Independent Director, replacing Sunthorn Choorak who retired by rotation. Headquartered in Bangkok, Thailand, Tongkah Harbour Public Company Limited -- http://www.tongkahharbour.co/-- is primarily engaged in mining operations. The Company is engaged in offshore tin mining, gold exploration and mining, igneous rock quarrying, as well as property development and management. The Company is placed under the Rehabco Sector of the Stock Exchange of Thailand and is currently rehabilitating its business. * Large Companies With Insolvent Balance Sheets ----------------------------------------------- Total Shareholders Total Equity Assets Company Ticker ($MM) ($MM) ------ ------ ------------ ------ CHINA & HONG KONG ----------------- Guangdong Meiya Group Co. Ltd. 000529 27.43 178.19 Guangdong Sunrise Group Co. Ltd-A 000030 (-182.94) 35.98 Guangdong Sunrise Group Co. Ltd-B 200030 (-182.94) 35.98 Hainan Dadong-A 000613 (-6.63) 17.81 Hainan Dadong-B 200613 (-6.63) 17.81 Heilongjiang Black Dragon Co. Ltd. 600187 (-29.45) 153.92 Shenz China Bi-A 000017 (-206.90) 50.08 Shenz China Bi-B 200017 (-206.90) 50.08 Xinjiang Tunhe Investment Co. Ltd. 600737 47.57 476.47 INDONESIA --------- Barito Pacific Timber Tbk Pt BRPT (-62.86) 360.72 MALAYSIA -------- Kemayan Corp Bhd KOP (-428.54) 62.72 Maycom Bhd MYC (-114.64) 227.68 Lityan Holdings Bhd IT (-8.43) 28.86 Olympia Industries Bhd OLYM (-227.85) 255.84 Panglobal Bhd PGL (-50.36) 189.92 PSC Industries Bhd PSC 51.63 639.35 PHILIPPINES ----------- Pilipino Telephone Co. PLTL (-159.78) 280.22 SINGAPORE --------- China Aviation Oil (Singapore) Corporation AO 132.64 351.87 Informatics Holdings Ltd INFO (-6.73) 27.59 Lindeteves-Jacoberg Limited LG 39.61 332.07 Pacific Century Regional PAC (-145.53) 1289.71 THAILAND -------- Asia Hotel PCL ASIA (-30.12) 101.17 Asia Hotel PCL ASIA/F (-30.12) 101.17 Bangkok Rubber PCL BRC (-57.11) 78.78 Bangkok Rubber PCL BRC/F (-57.11) 78.78 Central Paper Industry PCL CPICO (-37.02) 40.41 Central Paper Industry PCL CPICO/F (-37.02) 40.41 Circuit Elect PCL CIRKIT (-25.89) 61.30 Circuit Elect PCL CIRKIT/F (-25.89) 61.30 Datamat PCL DTM (-1.72) 17.55 Datamat PCL DTM/F (-1.72) 17.55 National Fertilizer PCL NFC 70.66 142.61 National Fertilizer PCL NFC/F 70.66 142.61 Siam Agro-Industry Pineapple And Others PCL SAICO (-14.71) 13.38 Siam Agro-Industry Pineapple And Others PCL SAIC0/F (-14.71) 13.38 Thai Wah Public Company Limited-F TWC (-47.01) 158.87 Thai Wah Public Company Limited-F TWC/F (-47.01) 158.87 ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Asia Pacific is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ USA, and Beard Group, Inc., Frederick, Maryland USA. Ma. Cristina Pernites-Lao, Faith Marie Bacatan, Reiza Dejito, Erica Fernando, Freya Natasha Fernandez, and Peter A. Chapman, Editors. Copyright 2006. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is $575 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***