/raid1/www/Hosts/bankrupt/TCRAP_Public/060531.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
Wednesday, May 31, 2006, Vol. 9, No. 107
Headlines
A U S T R A L I A & N E W Z E A L A N D
A&A POWER: Members and Creditors Review Wind-up Report
AARON TRANSPORT: Faces Liquidation Proceedings
AIR SECURE: Enters Voluntary Liquidation
ALL PEACH: Members Decide to Wind Up Business
ASIAN & PACIFIC: To Declare Dividend on June 5
AUCKLAND OCCUPATIONAL: Creditors' Proofs of Debt Due on Aug. 18
BMS PROPERTIES: Appoints Official Liquidator
CLEAN CONNECTION: Supreme Court Issues Wind-up Order
CONSULTING SERVICES: Court to Hear Liquidation Bid on July 13
DORISH GROUP: Appoints Joint Liquidators
EWT CONSULTING: Members Agree to Halt Operations
FORESTVIEW NOMINEES: Appoints Joint Receivers
GATE GOURMET: To Hold Final Meeting on May 31
GOLDEN-ORB: Prepares to Pay Dividend to Creditors
INTERNATIONAL FINANCE: ASIC Probe Puts Directors in Spotlight
J. M. A. TRANSPORT: Winds Up Business
LABOUR FORCE: Creditors Must Prove Debts by June 23
LANCIER SOUTHWEST: Faces Liquidation Proceedings
MCGREAL FLOOR: Court to Hear Liquidation Bid on June 8
MOJO MUSHROOMS: Placed Under Voluntary Liquidation
PACIFIC FINE: Names Danny Vrkic as Liquidator
SANDKERR BUILDING: Members Opt for Liquidation
SPORT NUMBERS: Members Agree to Wind Up Firm
STANILITE PACIFIC: Liquidator Initiates Action vs. Ex-Directors
STARLING DEVELOPMENTS: Receiver Ceases to Act for Company
SYDNEY SUNRISE: Schedules Final Meeting on June 2
W. A. FISHER: Members Agree to Wind Up Firm
WANSEY PROPERTY: Appoints Mark Byrnes as Liquidator
WESTPOINT GROUP: ASIC Accuses Boss of Giving False Testimony
WILSON METAL: To Distribute Dividend on June 9
WORMALD (VICTORIA): Liquidator to Present Wind-up Report June 2
XTENDREACH LIMITED: Creditors' Proofs of Claim Due on June 26
ZINC LIMITED: Court to CIR's Liquidation Petition on June 8
C H I N A & H O N G K O N G
EASTERN BROADCASTING: Fitch Puts Ratings on Watch Positive
ELEPHANT TALK: Posts $487,146 Net Loss in 2006 First Quarter
HONGDA CONTAINERS: Court to Hear Winding-up Petition on June 7
HONG KONG-SV.COM: Liquidators to Present Wind-up Report
HUTCHISON TELECOM: Liquidators Cease to Act for the Company
INTERASIAN RESOURCES: Members Appoint Liquidators
GOSI COMPANY: Shareholders Decide to Wind Up Operations
K&FUNG INDUSTRY: Wong Named as Liquidator
MORRISON INVESTMENT: Members Final Meeting Set on June 20
NICE LOOK: Creditors Must Prove Debts by June 30
OAKWOOD INVESTMENTS: Members Final Meeting Set on June 30
REFCO FOREX: Appoints Joint and Several Liquidators
SILVER SPREAD: Joint Liquidators Step Aside
SOUTEC HOLDINGS: Faces Winding up Proceedings
TEEMVICTORY LIMITED: Wind-up Petition Hearing Set on June 28
TRIWAY INVESTMENT: Liquidator to Present Wind-up Report
T.S. PROMOTIONS: Court to Hear Wind-up Application on June 7
* Chinese Banks on Right Track in Dealing with NFL, Fitch Says
I N D I A
DUNLOP INDIA: Management and Workers Dispute Delays Production
IBP COMPANY: Merger with Indian Oil Pushes Through in November
LML LIMITED: Opts to Extend Financial Year
OK PLAY: Board Meeting Adjourned to June 16
I N D O N E S I A
GARUDA INDONESIA: To Meet with Creditors on Restructuring
INDOFOOD SUKSES: Posts 48% Rise in Net Income for First Quarter
J A P A N
KOBE STEEL: Fitch Upgrades IDR to 'BB+' from BB
NISSIN COMPANY: S&P's BB+ Rating Unchanged by Share Issue
K O R E A
DAEWOO GROUP: Court Sentences Founder to 10 Years in Prison
HYUNDAI MOTOR: Court Proceedings for Chief to Start on June 1
M A L A Y S I A
AMTEK HOLDINGS: Unit Divests Property for MYR400,000
AVANGARDE RESOURCES: Posts MYR1.3 Million Loss for First Quarter
CONSOLIDATED FARMS: To Halt Shares Trading on June 5
FOUNTAIN VIEW: Auditors Note Variance in Financial Results
MITHRIL BERHAD: Books MYR1.034-Mln Pre-tax Loss in Third Quarter
PAN MALAYSIA CORP: Seeks to Renew Authority to Buy Back Shares
PARACORP BERHAD: Incurs MYR12.3-Mln Net Loss in First Quarter
PSC INDUSTRIES: Lower Turnover Leads to MYR13.9-Mln Pre-tax Loss
POLYMATE HOLDINGS: Details Wind-up Petition Against Unit
TALAM CORPORATION: Unable to File Annual Audited Accounts
TECHVENTURE BERHAD: Balance Sheet Shows Strained Liquidity
P H I L I P P I N E S
AGP INDUSTRIAL: Management Expresses Going Concern Doubt
PHILCOMSAT HOLDINGS: Warring Groups Settle Dispute
PHIL. NATIONAL CONSTRUCTION: Reduced Costs Cut Net Loss by 21%
PHILIPPINE NATIONAL BANK: Net Income Rises 26% to PHP190 Million
VICTORIAS MILLING: Going Concern Depends on Rehabilitation
S I N G A P O R E
D&B STEEL: Wind-up Process Commenced
DIGILAND INTERNATIONAL: To Hold EGM on June 13
MAE ENGINEERING: Books Lower Revenue in FY05
MEDIASTREAM LIMITED: Creditors' First Meeting Set June 20
MEDIASTREAM LIMITED: Seeks Extension on Acquisition Deal
QUEST UNITED: Creditors Must Prove Debts by June 9
TOP ONE MOTOR: Supreme Court Declares Bankruptcy
T H A I L A N D
PICNIC CORP: SET Lift SP Sign But Warns Investors
- - - - - - - -
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A U S T R A L I A & N E W Z E A L A N D
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A&A POWER: Members and Creditors Review Wind-up Report
------------------------------------------------------
Members and creditors of A&A Power Cleaning Pty Limited will
hold their final meeting today, May 31, 2006, for them to
receive Liquidator Daniel Civil's account of how the Company was
wound up and its property was disposed of.
Contact: Daniel Civil
Liquidator
Rodgers Reidy
Level 8, 333 George Street
Sydney, New South Wales 2000
Australia
AARON TRANSPORT: Faces Liquidation Proceedings
----------------------------------------------
An application to put Aaron Tansport (2000) Ltd into liquidation
will be heard before the High Court of Auckland on June 15,
2006, at 10:00 in the morning.
The High Court received the application from Teamtalk Limited on
March 27, 2006.
Contact: Dianne Lester
Credit Consultants Debt Services Ltd
Level 3, 3-9 Church Street
Wellington, New Zealand
Telephone: (04) 470 5972
AIR SECURE: Enters Voluntary Liquidation
----------------------------------------
The creditors of Air Secure Pty Limited held a meeting on
April 12, 2006, and agreed to wind up the Company's business
operations voluntarily.
Henry Kazar of Sims Partners was appointed as liquidator.
Contact: Henry Kazar
Liquidator
SimsPartners Chartered Accountants
PO Box 211, Deakin West
Austalian Capital Territory 2600
Australia
Telephone: 02 6285 1310
ALL PEACH: Members Decide to Wind Up Business
---------------------------------------------
The members of All Peach Pty Limited convened on April 4, 2006,
and decided to wind up the Company's operations and distribute
the proceeds of its assets disposal.
Contact: John Vouris
Liquidator
Vouris & Bell Chartered Accountants
Level 9, 4 O'Connell Street
Sydney, New South Wales 2000
Australia
Telephone: 9232 6800
ASIAN & PACIFIC: To Declare Dividend on June 5
----------------------------------------------
Asian & Pacific Resources Pty Limited will declare a first and
final dividend on June 5, 2006.
Creditors who were not able to prove their claims are excluded
from sharing in the dividend distribution.
Contact: Robert Elliott
Liquidator
Hall Chadwick Chartered Accountants
Level 29, 31 Market Street
Sydney, New South Wales 2001
Australia
AUCKLAND OCCUPATIONAL: Creditors' Proofs of Debt Due on Aug. 18
---------------------------------------------------------------
Creditors of Auckland Occupational Safety & Health Ltd are
required to submit their proofs of debt to Joint Liquidators
Vivian Judith Fatupaito and Richard Dale Agnew on or before
August 18, 2006.
Failure to comply with the requirement will exclude any creditor
from sharing in any distribution the Company will make.
Contact: Vivian Fatupaito
PricewaterhouseCoopers, Level 8
PricewaterhouseCoopers Tower
188 Quay Street, Auckland
New Zealand
Telephone: (09) 355 8000
Facsimile: (09) 355 8013
BMS PROPERTIES: Appoints Official Liquidator
--------------------------------------------
Members of BMS Properties Ltd, on May 11, 2006, appointed
Michael Crawford as liquidator of the Company.
Contact: Michael Crawford
PO Box 17, Hamilton
New Zealand
Telephone: (07) 838 4800
CLEAN CONNECTION: Supreme Court Issues Wind-up Order
----------------------------------------------------
The Supreme Court of New South Wales ordered the winding up of
Clean Connection Pty Limited on April 20, 2006.
The Court also named Steven Nicols as liquidator.
Contact: Steven Nicols
Liquidator
Level 2, 350 Kent Street
Sydney, New South Wales 2000
Australia
CONSULTING SERVICES: Court to Hear Liquidation Bid on July 13
-------------------------------------------------------------
Doris Carmen Cordova, on May 8, 2006, filed before the High
Court of Auckland an application to liquidate Consulting
Services and Inspections Ltd.
The Court will hear the application on July 13, 2006, at 10:45
a.m.
Contact: Tim Jeffcott
Offices of Parkinson Jeffcott Muller
2A Ruarangi Road, Mt Albert
Auckland, New Zealand
DORISH GROUP: Appoints Joint Liquidators
----------------------------------------
Members of Dorish Group Limited, on May 15, 2006, appointed John
Howard Ross Fisk and Richard Dale Agnew as liquidators to act
jointly and severally for the Company.
The Liquidators subsequently fixed June 16, 2006, as the day on
or before which the creditors of the Company are to submit their
proofs of claim.
Contact: John Fisk
PricewaterhouseCoopers
113-119 The Terrace
Wellington, New Zealand
Telephone: (04) 462 7000
Facsimile: (04) 462 7492
EWT CONSULTING: Members Agree to Halt Operations
------------------------------------------------
Members of EWT Consulting Pty Limited convened on April 11,
2006, and agreed that it is in the Company's best interests to
wind up its operations.
Contact: Frank Lo Pilato
Liquidator
RSM Bird Cameron Partners Chartered Accountants
Level 1, 103-105 Northbourne Avenue
Canberra, Australian Capital Territory 2601
Australia
Telephone: (02) 6247 5988
Fax: (02) 6262 8633
FORESTVIEW NOMINEES: Appoints Joint Receivers
---------------------------------------------
KordaMentha's Mark A. Corda, David J. Winterbottom and Oren
Zohar were appointed joint receivers and managers of Forestview
Nominees Pty Ltd on March 30, 2006
Contact: Mark A. Corda
David J. Winterbottom
Oren Zohar
Receivers & Managers
KordaMentha
Level 1, 37 St. Georges Terrace
Perth 6000, West Australia
Australia
GATE GOURMET: To Hold Final Meeting on May 31
---------------------------------------------
The members and creditors of Gate Gourmet Australia Pty Limited
will hold its final meeting today, May 31, 2006.
During the meeting, Liquidator S. J. Sherman will report on the
manner of the Company's wind-up and property disposal.
Contact: S. J. Sherman
Liquidator
c/o Ferrier Hodgson
Level 17, 2 Market Street
Sydney, New South Wales 2000
Australia
GOLDEN-ORB: Prepares to Pay Dividend to Creditors
-------------------------------------------------
Golden-Orb Pty Ltd will declare a first and final dividend on
June 8, 2006, to the exclusion of its creditors who were unable
to prove their claims.
Contact: David H. Scott
Liquidator
Jones Condon Chartered Accountants
Ground Floor, 77 Station Street
Malvern 3144, Australia
INTERNATIONAL FINANCE: ASIC Probe Puts Directors in Spotlight
-------------------------------------------------------------
The Australian Securities and Investments Commission has alleged
that between May 9, 2003, and February 3, 2004, directors Robin
Brian Poumako and Ann Marie Donaldson aided International
Finance Corporation Pty Ltd. in making offers and issuing
securities to investors without having lodged a disclosure
statement with the commission.
The ASIC conducted an investigation and slapped 70 charges
against Mr. Poumako and Ms. Donaldson. ASIC's charges, which
are being prosecuted by the Commonwealth Director of Public
Prosecutions, relate to over AU$1.88 million lent by 30
investors who should have been provided with a copy of a
registered disclosure document to enable them to make a fully
informed decision about the investment.
Both former directors have pleaded not guilty over their
involvement in "mezzanine financing" which concerned the raising
and lending of funds for real estate developments, including
Fernilee Lodge in Burnside, Adelaide, on behalf of IFC.
Mr. Poumako and Ms. Donaldson will stand trial in the Adelaide
District Court on June 26, 2006. They were remanded on
continuing bail.
The ASIC recounts that in February 2004, it obtained interim
orders in the Federal Court preventing IFC, Mr. Poumako, and Ms.
Donaldson from continuing to raise funds from investors.
In July 2004, IFC was wound up by the Federal Court on ASIC's
application and Hillary Orr was appointed liquidator.
J. M. A. TRANSPORT: Winds Up Business
-------------------------------------
At an extraordinary general meeting of J.M.A. Transport Services
Pty Limited on April 11, 2006, members opted to shut down the
Company's operations.
Robert Molesworth Hobill Cole was appointed as liquidator at a
creditors' meeting held later that day.
Contact: Robert M. H. Cole
Liquidator
Cole Downey & Co. Chartered Accountants
Unit 2, 6 Moorabool Street
Geelong, Victoria 3220
Australia
LABOUR FORCE: Creditors Must Prove Debts by June 23
---------------------------------------------------
Liquidator John Managh is receiving proofs of debt from the
creditors of Labour Force (NZ) Ltd until June 23, 2006.
Failure to comply with the requirement will exclude any creditor
from the sharing in any distribution the Company will make.
Contact: John Managh
50 Tennyson Street
Napier, New Zealand
Telephone: (06) 8735 6280
e-mail: jmanagh@xtra.co.nz
LANCIER SOUTHWEST: Faces Liquidation Proceedings
------------------------------------------------
An application to put Lancier Southwest Pacific Ltd into
liquidation will be heard before the High Court of Auckland on
June 8, 2006, at 10:45 a.m.
The High Court received the application from the Commissioner of
Inland Revenue on April 19, 2006.
Contact: P.L. Windsor-Knaap
Inland Revenue Department
1 Bryce Street, Hamilton
New Zealand
Telephone: (07) 959 0432
MCGREAL FLOOR: Court to Hear Liquidation Bid on June 8
------------------------------------------------------
An application to put McGreal Floor Coverings Ltd into
liquidation will be heard before the High Court of Auckland on
June 8, 2006, at 10:45 in the morning.
The Commissioner of Inland Revenue filed the application with
the High Court on April 10, 2006.
Contact: S.J. Eisdell Moore
Offices of Meredith Connell
Level 17, Forsyth Barr Tower
55-65 Shortland Street, Auckland
New Zealand
Telephone: (09) 336 7556
MOJO MUSHROOMS: Placed Under Voluntary Liquidation
--------------------------------------------------
The members and creditors of Mojo Mushrooms Pty Limited met on
April 12, 2006, and agreed to wind up the Company's operations,
as it is unable to pay its debts when they fall due.
Blair Pleash was subsequently appointed as liquidator.
Contact: Blair Pleash
Liquidator
c/o Hall Chadwick
Level 29, 31 Market Street
Sydney, New South Wales 2000
Australia
PACIFIC FINE: Names Danny Vrkic as Liquidator
---------------------------------------------
At a meeting of the creditors of Pacific Fine Furniture Pty
Limited on April 12, 2006, Danny Vrkic was appointed as
liquidator to wind up the Company's operations.
Contact: Danny Vrkic
Liquidator
Jirsch Sutherland & Co. Chartered Accountants
PO Box 572, Wollongong
New South Wales 2500, Australia
SANDKERR BUILDING: Members Opt for Liquidation
----------------------------------------------
Members of Sandkerr Building Company Pty Limited resolved, on
April 10, 2006, to liquidate the Company's business.
Contact: Neil Cribb
c/o RSM Bird Cameron Partners Chartered
Accountants
8 St. Georges Terrace, Perth
West Australia 6000
Australia
Telephone: (08) 9261 9100
Fax: (08) 9261 9340
SPORT NUMBERS: Members Agree to Wind Up Firm
--------------------------------------------
At a general meeting of Sport Numbers Pty Limited held on
April 11, 2006, members opted to voluntarily wind up the
Company's business operations.
In this regard, Stephen John Hundy of Rangott Slaven Hundy was
appointed as liquidator.
Contact: Stephen J. Hundy
Liquidator
Rangott Slaven Hundy
Unit 12, Level 3 Engineering House
11 National Circuit, Barton
Australian Capital Territory
Australia
STANILITE PACIFIC: Liquidator Initiates Action vs. Ex-Directors
---------------------------------------------------------------
The liquidator for Stanilite Pacific Limited has initiated an
action against the Company's former directors for insolvent
trading, stating that if the case succeeds, there will be return
to shareholders.
Stanilite Gets Wind-Up Order
The Troubled Company Reporter - Asia Pacific recounts that on
November 13, 1995, Stanilite issued a statement saying that it
was experiencing some revenue shortfalls.
In May 1996, the Company was suspended from quotation.
Subsequently, a receiver and manager was appointed.
In August 1996, Stanilite was removed from the Official List of
the Australian Stock Exchange after failing to lodge its Annual
Listing Fees for the fiscal year ended June 30, 1996. That same
month, the Federal Court ordered the wind-up of the company and
appointed Kenneth Rennie of Ernst & Young as liquidator.
Liquidator Commences Legal Battle With Auditors
The liquidator then commenced preference and damages actions
against the auditors of Stanilite Pacific and its subsidiary,
S.L. Electronics, in 2001, in respect of their performance of
the 1994 and 1995 audits. A year later, the liquidator admitted
that he does not have a clear picture as to whether there will
be a distribution to shareholders.
In summary, it was found by the Court that in completing the
accounts for the year ended June 30, 1995, the Company's
auditors had applied accounting standard AASB 1009 incorrectly,
which lead to profits being overstated. The overstated profit
was the catalyst for Stanilite declaring a dividend of AU$1.576
million in December 1995, which could not have been declared if
accounting standard AASB 1009 had been applied correctly.
The Court entered orders in favor of Stanilite and S.L.
Electronics, wherein:
1. The auditors were directed to pay damages of AU$1.576
million plus interest of AU$1.56 million to Stanilite;
2. The auditors will return costs of AU$2,150,000 previously
paid in the lower court proceedings to Stanilite and S.L.
Electronics, plus interest of AU$265,598; and
3. The auditors will pay one-third of Stanilite's and S.L.
Electronic's costs of the proceedings at first instance,
and one-half of their costs of the appeal.
Funds of AU$5,549,950 were received on December 23, 2005, and
have been invested at a competitive rate.
Litigation Funding Proposals
In May 2002, the Committee of Inspection asked the liquidator to
seek litigation funding proposals to free up funds to pay an
interim dividend to creditors. Several litigation lenders were
approached, but they preferred to review the case only after the
liquidator's expert witness reports were filed. The experts'
reports took longer than anticipated to finalize and were filed
in court in December 2002.
The litigation lenders are currently reviewing the six expert
witness reports together with other documentation in relation to
the proceedings. From initial discussions with the litigation
lenders, the liquidator said that it is likely that they will
propose funding only future costs in respect of the litigation
whilst taking a large portion of any damages awarded. In these
circumstances, the liquidator believes that self-funding may be
the best course of action as he has already paid the majority of
pre-trial costs out of funds on hand and have adequate funds to
continue with the litigation.
Current Status
In a report to creditors and shareholders as of December 31,
2005, the liquidator discloses that he had recovered over AU$12
million in funds in S.L. Electronics both from National
Australia Bank and a number of legal actions outlined as:
* 78 unfair preference actions, the majority of which have
now been settled with a net recovery after legal costs of
approximately AU$1.8 million;
* AU$1.5 million was received as result of settlement with
Tenix Defence Systems (Hagenuk) in September 2001; and
* In May 2000, the Supreme Court of NSW released funds of
AU$2.6 million to the liquidator, previously paid into the
court by NAB, on settlement of a claim to these funds with
Export Finance and Investment Corporation. In February
2002, NAB released funds of AU$1.97 million when EFIC
confirmed it had no claim on funds held by NAB. In
addition, NAB has retained approximately AU$616,000 to
cover three outstanding bank guarantees. The liquidator is
actively seeking release of the three guarantees and hoped
that the additional funds will be released by NAB.
Payments to date in the Company's liquidation have amounted to
approximately AU$7.7 million, comprising mainly of legal fees --
AU$3.9 million -- and liquidators' remuneration -- AU$1.97
million.
The liquidator relates that he is currently holding
approximately AU$4.8 million in cash for S.L. Electronics.
The liquidator said that he had realized approximately
AU$400,000 in Stanilite Pacific as a result of a dividend paid
by S.L. Properties Pty Limited. He is also currently holding
approximately AU$130,000 in cash in the Stanilite Pacific
account.
Return to Creditors and Shareholders
Due to the outstanding cost issues relating to the ongoing
proceedings against the directors, the liquidator is unable to
specify a date on which a dividend will be paid to the unsecured
creditors of both Stanilite and S.L. Electronics. He indicated
that his best estimate at this time is that the dividend payment
process will commence in the second half of 2006.
Moreover, until the proceedings against the directors are
resolved, the liquidator is reluctant to declare a loss to the
shareholders as it is possible that if the case is successful,
there may be a small return to shareholders. He hopes to be
able to determine whether there will be a return to shareholders
before the end of 2006.
* * *
Stanilite Pacific Ltd. produced and distributed emergency
lighting, security control, magnetic card access control and
data systems. The Company also designed and manufactured
defense electronic equipment and develops electronic gaming
terminals, as well as provided service and repair facilities for
communications and electronic equipment.
It is currently under liquidation.
Contact: Kenneth J. Rennie
Official Liquidator
Stanilite Pacific Limited
S. L. Electronics (NSW) Pty Limited
STARLING DEVELOPMENTS: Receiver Ceases to Act for Company
---------------------------------------------------------
Justin Walsh ceased to act as receiver and manager of the
property of Starling Developments Pty Limited on April 4, 2006.
SYDNEY SUNRISE: Schedules Final Meeting on June 2
-------------------------------------------------
The members and creditors of Sydney Sunrise Developments Pty
Limited will convene at a final meeting on June 2, 2006, where
Liquidator Peter P. Krejci will present an account on the manner
of the Company's wind-up and property disposal.
Contact: Peter P. Krejci
Liquidator
GHK Green Krejci
Level 9, 179 Elizabeth Street
Sydney, New South Wales 2000
Australia
W. A. FISHER: Members Agree to Wind Up Firm
-------------------------------------------
At an extraordinary general meeting of W.A. Fisher (Holdings)
Pty Limited on April 10, 2006, members decided to wind up the
Company's operations voluntarily.
Justin Dennis Walsh and Richard John Dennis of Ernst & Young
were appointed as liquidators.
Contact: Justin D. Walsh
Richard J. Dennis
Liquidators
Ernst & Young
Level 5, 1 Eagle Street
Brisbane, Queensland 4000
Australia
Telephone: (07) 3243 3707
WANSEY PROPERTY: Appoints Mark Byrnes as Liquidator
---------------------------------------------------
The members of Wansey Property Pty Limited met on April 10,
2006, and concurred that a wind-up of the Company's business is
appropriate and necessary.
Mark Stafford Byrnes was appointed as liquidator.
Contact: Mark S. Byrnes
Liquidator
Summerhill
Mitchell Highway, Orange
New South Wales 2800, Australia
WESTPOINT GROUP: ASIC Accuses Boss of Giving False Testimony
------------------------------------------------------------
The Australian Securities and Investments Commission told the
Federal Court in Perth that Westpoint Group's boss, Norm Carey,
has given false evidence in his affidavits, the Sydney Morning
Herald reports.
According to the Australian Associated Press, ASIC's lawyer,
Stephen Owen-Conway, asserted that Mr. Carey falsely indicated
in his affidavit that he does not own a car and a house, does
not have control over any bank accounts, and only had
shareholdings of minimal value. Mr. Carey also claimed that his
only asset was a 16% share in a racehorse called Great Nation.
Mr. Owen-Conway told the Court that how Mr. Carey's AU$4,000-a-
week lifestyle, which the Court heard of last week, was being
funded was a concern. Also of concern was a proposed jump in
Mr. Carey's living expenses to more than AU$5,000 a week just
eight days later.
Mr. Owen-Conway contended that there was evidence Mr. Carey had
exerted undisclosed control over two companies to have
AU$875,000 transferred out of a Westpoint Group company, and
could still be exerting influence on other companies within the
group, AAP relates.
As reported in the Troubled Company Reporter - Asia Pacific on
May 26, 2006, Westpoint company Keypoint Developments Pty Ltd
was directed by Justice Robert French to immediately transfer
back AU$875,000 to Richstar Enterprises Pty Ltd -- which is the
fifth defendant in ASIC's proceedings against Westpoint and
whose property is subject to the receivership orders entered by
the Court on April 20, 2006. The TCR-AP stated that Mr. Carey
transferred the amount from Richstar to Keypoint shortly after
March 2006 when the Court froze Richstar's assets.
The ASIC notes that Mr. Carey's sister is a director of
Keypoint.
The Court ordered that Keypoint join the ASIC-led proceedings
and appointed KordaMentha as receivers.
About Westpoint Group
Headquartered in Perth, Western Australia, the Westpoint Group
-- http://westpoint.com.au/-- is engaged in property
development and owns or manages retail and commercial properties
with a total value of over AU$300 million. The Group's troubles
began in 2005 when the Australian Securities and Investments
Commission commenced a series of legal proceedings in relation
to a number of companies within the Westpoint Group. ASIC
contends that Westpoint projects are suffering from significant
shortfall of assets over liabilities so that hundreds of
investors are at serious risk of not receiving repayment of
their investments. These investigations were then followed by
the winding up of a number of Westpoint's mezzanine companies.
ASIC also sought wind-up orders after the Westpoint companies
failed to comply with ASIC's requirement to lodge accounts for
certain financial years. These wind-up actions are still
continuing.
In February 2006, a wind-up order was issued by the Federal
Court in Perth against Westpoint Corporation Pty Ltd. ASIC had
applied to wind up the company on grounds of insolvency. ASIC
believes that Westpoint Corporation is responsible for
arranging, managing and coordinating Westpoint Group's property
projects as well as holding money for other group companies.
ASIC was concerned that Westpoint Corporation was unable to pay
its debts, including its obligations under the guarantees given
to the mezzanine companies to make good expected shortfalls in
the repayment of amounts owed to investors. The Westpoint
Group's collapse is considered by many as the largest of its
type in recent years, with small investors being the biggest
group affected. Investors are currently joining forces to
commence a class action against Westpoint and its advisors.
WILSON METAL: To Distribute Dividend on June 9
----------------------------------------------
Wilson Metal Works Pty Limited will distribute its first and
final dividend on June 9, 2006.
Creditors who failed to submit their proofs of claim are
excluded from sharing in the dividend distribution.
Contact: R. G. Tolcher
Liquidator
Lawler Partners Chartered Accountants
763 Hunter Street, Newcastle West
New South Wales 2302, Australia
WORMALD (VICTORIA): Liquidator to Present Wind-up Report June 2
---------------------------------------------------------------
At the upcoming final meeting of the members of Wormald
(Victoria) Pty Limited on June 2, 2006, Liquidator Barry R. Cook
will present the way in which the Company was wound up and its
property disposed of.
Contact: Barry R. Cook
Liquidator
c/o 54 Beechwood Avenue, Greystanes
New South Wales 2145,
Australia
XTENDREACH LIMITED: Creditors' Proofs of Claim Due on June 26
-------------------------------------------------------------
Creditors of Xtendreach Limited are required to submit their
proofs of claim to Joint Liquidators John Albert Price and
Christopher Robert Horton on or before June 26, 2006.
Failure to comply with the requirement will exclude any creditor
from sharing in any distribution the Company will make.
Contact: C.R.R. Horton
Horton Price Limited
PO Box 9125, New Market
Auckland, New Zealand
Telephone: (09) 366 7000
Facsimile: (09) 366 7276
ZINC LIMITED: Court to CIR's Liquidation Petition on June 8
-----------------------------------------------------------
An application to put Zinc Limited into liquidation will be
heard before the High Court of Auckland on June 8, 2006, at
10:00 a.m.
The Commissioner of Inland Revenue filed the application before
the High Court on March 23, 2006.
Contact: K. L. Gallagher
Auckland Service Centre
17 Putney Way, Manukau City
New Zealand
Telephone: (09) 985 7148
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C H I N A & H O N G K O N G
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EASTERN BROADCASTING: Fitch Puts Ratings on Watch Positive
----------------------------------------------------------
Fitch Ratings on May 30, 2006, assigned on Rating Watch Positive
Eastern Broadcasting Company Limited's:
* BB- Long-term foreign and local currency Issuer Default
Ratings;
* BBB National Long-term rating; and
* F3 National Short-term rating.
The rating agency also placed the BB- and BBB ratings of the
Company's TWD300 million senior unsecured National bond maturing
in July 2008 on Watch Positive.
Subsequently, the agency assigned expected ratings of BB- and
BBB to Eastern Broadcasting's two-year TWD110 million senior
unsecured bond scheduled to be issued in June 2006, and
simultaneously, placed the ratings on Watch Positive.
Fitch said that the ratings on the new issue are contingent upon
receipt of final documents conforming to information already
received as well as issuance approval from local authorities.
These actions follow the Company's launch of a private offering
of over 100 million common shares and also reflect Eastern
Broadcasting's positive underlying performance which has shown
an improving trend over the past several years.
Fitch expects the Watch Positive to be resolved within the next
three to six months once the proceeds from the planned capital
injection have been received. Fitch added that should the
ratings be upgraded, the potential is for a one-notch upgrade to
BB and BBB+. The private offering is likely to be completed in
the third quarter of 2006, but is currently waiting for approval
from the stockholders and the local authorities.
The Watch Positive reflects the potential strengthening of the
Company's capital structure with less reliance on debt financing
over the medium term as well as the company's conservative
financial strategy. The Company hopes to raise around TWD1.9
billion in new funds from the private offering, half of which
will be used to pay down its debt, and the remaining to fund its
working capital needs.
Eastern Broadcasting's ratings reflect the Company's leading
market position in the cable television channel operation
segment, and the stability of the CATV channel fee income.
Kevin Chang, associate director in Fitch's Corporate Finance
Group in Taiwan said "notwithstanding an 8% decline in Taiwan's
CATV advertising spending, the Company managed to raise
recurring channel advertising income by 3.1% in 2005, through
developing and penetrating market segments at the expense of
other CATV operators and the island's free-to-air broadcasters".
Mr. Chang added that using the proceeds of the private offering
to reduce debt could bring Eastern Broadcasting's leverage ratio
in terms of total debt net of cash/operating EBITDAR down to
below 2.0x, which is likely to result in a rating upgrade.
* * *
Located in Taiwan, Eastern Broadcasting Company Ltd
--http://www.ettv.com.tw/ettv2003/01/engindex1-3.htm-- and its
subsidiaries currently operate eight analogue cable channels,
four digital channels, a radio station (ETFM), a website
(ETtoday.com), a regional newspaper (Commons Daily) and a
merchandising and licensing division focused on child education
and lifestyle in Taiwan. The Company is also gradually
expanding its operation abroad with overseas broadcasting via
satellite, cable network, and internet protocol. In 2005, EBC
generated revenues of TWD6.1 billion and EBITDA of TWD2.3
billion.
ELEPHANT TALK: Posts $487,146 Net Loss in 2006 First Quarter
------------------------------------------------------------
Elephant Talk Communications Incorporated filed its first
quarter financial statements for the three months ended March
31, 2006, with the Securities and Exchange Commission on May 22,
2006.
The Company reported a $487,146 net loss on $2,173,260 of
revenues for the three months ended March 31, 2006.
At March 31, 2006, the Company's balance sheet showed
$14,559,744 in total assets, $11,259,757 in total liabilities,
$950,016 in minority interest, and $2,349,971 stockholders'
equity.
The Company's March 31 balance sheet also showed strained
liquidity with $4,051,485 in total current assets available to
pay $7,833,427 in total current liabilities coming due within
the next 12 months.
Full-text copies of the Company's financial statements for the
three months ended March 31, 2006, are available for free
http://ResearchArchives.com/t/s?a07
Going Concern Doubt
Hong Kong's Jimmy C. H. Cheung & Co. raised substantial doubt
about Elephant Talk Communications Inc.'s ability to continue as
a going concern after auditing the Company's consolidated
financial statements for the year ended Dec. 31, 2005. The
auditor pointed to the Company's loss, negative working capital,
and stockholders' and accumulated deficiencies.
* * *
Elephant Talk Communications Inc. -- www.elephanttalk.com/ -- is
a voice-over-Internet-protocol telecommunications and mobile
short message service and other value added telecom services
provider in China. With its completion of acquisition of
Beijing China Wind, the Company provides its mobile value added
services to over 1 million customers in China. Its services
include short message service, ring tone/wall-paper downloads
and mobile e-commerce services. Its international call services
are provided through an integrated network infrastructure
comprising both the packet-switched system and circuit switched
system focusing on the Asia Pacific region and the United
States.
HONGDA CONTAINERS: Court to Hear Winding-up Petition on June 7
--------------------------------------------------------------
The High Court of Hong Kong will hear a petition to wind up
Hongda Containers Ltd on June 7, 2006, at 9:30 a.m.
The Secretary of Justice filed the petition with the High Court
on March 29, 2006.
Contact: Tam Che Wai
Counsel for the Petitioner
Department of Justice
2/F., High Block
Queensway Government Offices
66 Queensway, Hong Kong
HONG KONG-SV.COM: Liquidators to Present Wind-up Report
-------------------------------------------------------
Liquidators Lee Sik Wai and Luk Wai Yin will present to the
members of Hong Kong-SV.Com.Limited their final accounts
regarding the Company's wind-up operations.
The presentation will be made at Rooms 2005-7, Bank Centre, 636
Nathan Road, Kowloon, Hong Kong on June 28, 2006, at 10:30 in
the morning.
HUTCHISON TELECOM: Liquidators Cease to Act for the Company
-----------------------------------------------------------
On May 19, 2006, Ying Hing Chiu and Chung Miu Yin ceased to act
as joint and several liquidators for Hutchison
Telecommunications (China) Limited.
INTERASIAN RESOURCES: Members Appoint Liquidators
-------------------------------------------------
Members of Interasian Resources (H.K.) Ltd, on May 11, 2006,
appointed Liu Chi Tat as liquidator to oversee the Company's
winding up.
Contact: Liu Chi Tat
Room 1304, 13/F.,
C C Wu Building
302-308 Hennessy Road
Wanchai, Hong Kong
GOSI COMPANY: Shareholders Decide to Wind Up Operations
-------------------------------------------------------
At an extra ordinary general meeting on May 16, 2006, members of
Gosi Company Ltd passed a resolution to voluntarily wind up the
Company and appoint Chan Mau Sau as liquidator.
Contact: Chan Mau Sau
Room A, 3/F., Centre Mark II
305-313 Queen's Road Central
Hong Kong
K&FUNG INDUSTRY: Wong Named as Liquidator
-------------------------------------------
Members of K&Fung Industry Company Ltd had appointed Wong Shing
Kay as liquidator on May 20, 2006.
Contact: Wong Shing Kay
17/F., Yam Tze Commercial Bldg
23 Thomson Road, Wanchai
Hong Kong
MORRISON INVESTMENT: Members Final Meeting Set on June 20
---------------------------------------------------------
A final general meeting of Morrison Investment Ltd's members
will be held on June 30, 2006, 11:00 in the morning at
Liquidator Chan Sin Yu's office.
During the meeting, the Liquidator will present final accounts
of the Company's wind-up operations.
Contact: Chan Sin Yu
Room 1506, 15/F., Takshing House
20 Des Voeux Road C., Central
Hong Kong
NICE LOOK: Creditors Must Prove Debts by June 30
------------------------------------------------
Liquidator Cheuk Yee Man is receiving proofs of debt from the
creditors of Nice Look Investment Ltd until June 30, 2006.
Failure to comply with the requirement will exclude any creditor
from sharing in any distribution the Company will make.
Contact: Cheuk Yee Man
Room 2810, 28/F.,
113 Argyle Street
Kowloon, Hong Kong
OAKWOOD INVESTMENTS: Members Final Meeting Set on June 30
---------------------------------------------------------
Members of Oakwood Investments Ltd will hold a final general
meeting on June 30, 2006, at 10:30 in the morning.
During the meeting, Liquidator Ng Wing Hang will present final
accounts of the Company's wind-up operations.
Contact: Ng Wing Hang
20/F., Hong Kong Trade Centre
161-167 Des Voeux Road,
Central, Hong Kong
REFCO FOREX: Appoints Joint and Several Liquidators
---------------------------------------------------
Members of Refco Forex Ltd, on May 19, 2006, appointed Kennic
Lai Hang and David Winterbottom as liquidators to act jointly
and severally for the Company.
Contact: Kennic Lai Hang Lui
5/F., Ho Lee Commercial Bldg
38-44 D'Aguilar Street
Central, Hong Kong
SILVER SPREAD: Joint Liquidators Step Aside
-------------------------------------------
Ying Hing Chiu and Chung Miu Yin ceased to act as joint and
several liquidators for Silver Spread Company Ltd on May 19,
2006.
SOUTEC HOLDINGS: Faces Winding up Proceedings
---------------------------------------------
A petition to wind up Soutec Holdings Ltd will be heard before
the High Court of Hong Kong on June 7, 2006, at 9:30 a.m.
The Court received the application from Orix Asia Ltd on
April 24, 2006.
Contact: Fairbairn Catley Low & Wong
43/F., Gloucester Tower
The Landmark, 11 Pedder Street
Central, Hong Kong
TEEMVICTORY LIMITED: Wind-up Petition Hearing Set on June 28
------------------------------------------------------------
A petition to wind up Teemvictory Limited will be heard before
the High Court of Hong Kong on June 28, 2006, at 9:30 a.m.
Bank of China (H.K.) Limited filed the petition with the High
Court on April 27, 2006.
Contact: Messrs. Wat & Co.
12/F., Chuang's Tower
30-32 Connaught Road,
Central, Hong Kong
TRIWAY INVESTMENT: Liquidator to Present Wind-up Report
-------------------------------------------------------
A final general meeting of Triway Investments Limited will be
conducted at Room B, 19/F., Wing Hang Insurance Building, 11
Wing Kut Street, Hong Kong on June 30, 2006, at 11:00 in the
morning.
During the meeting, Liquidator Ngan Fai Wong will present final
accounts of the Company's winding up.
T.S. PROMOTIONS: Court to Hear Wind-up Application on June 7
------------------------------------------------------------
A petition to wind up T.S. Promotions Ltd will be heard before
the High Court of Hong Kong on June 7, 2006, at 9:30 a.m.
Unitec Tooling (H.K.) Ltd filed the petition with the High Court
on March 3, 2006.
Contact: K.Y. Lo
Rooms 2513-14, 25/F.,
Cosco Tower, 181-183
Queen's Road Central
Hong Kong
* Chinese Banks on Right Track in Dealing with NFL, Fitch Says
--------------------------------------------------------------
In a special report on Chinese banks' non-performing loan
challenges entitled "China: Taking Stock of Banking System
NPLs", Fitch Ratings highlighted that Chinese banks are moving
in the right direction in terms of dealing with the banking
system's non-performing loans and mountains of bad debt.
The rating agency added that though the Chinese banking system's
asset quality remains weak on an internationally comparative
basis, it is clear that substantial strides have been made on
this front.
"Asset quality indicators for China's largest banks and, by
extension, the banking system as a whole have improved
considerably, as illustrated by the more than 50% reduction in
average NPL ratios over the last few years," said Charlene Chu,
director in Fitch's Financial Institutions team in Beijing.
Fitch notes that discussions of Chinese bank asset quality often
fail to distinguish clearly between loans that are classified as
non- performing and loans still performing but on the banks'
"watchlist", as well as loans that have been removed from the
books of the banks by the government. Adding all these together
would produce a total of close to US$700 billion but this would
overstate the current asset quality problems of the banks.
In its own analysis, Fitch takes account of potential recoveries
on non-performing loan workouts, as well as existing loan loss
reserves, and makes assumptions that some, but not all of the
watchlist loans default: on this basis Fitch estimates there is
approximately US&220 billion in total unfunded losses on the
books of China's banks.
"This figure is close to one-third larger than the stock of
capital in the entire banking system, underscoring the extent of
asset quality weaknesses that still remains," said Ms. Chu.
"However, it is important to note that exposure to losses is
highly concentrated at institutions that have yet to be
restructured - for example, Agricultural Bank of China - while
the reformed banks are less exposed."
"The current state of affairs is much improved from just a few
years ago when unfunded losses exceeded total banking system
equity by several multiples," Ms. Chu also noted.
Fitch concludes that the current asset quality problems are
readily manageable by the banks and the government. Of greater
concern to Fitch is the likely creation of new nonperforming
loans given banks' still underdeveloped risk management
practices and internal controls.
"We believe Chinese banks remain acutely vulnerable to an
economic slowdown, although both banks and the government are
more equipped today than in the past to deal with problems that
may arise," said Ms. Chu.
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I N D I A
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DUNLOP INDIA: Management and Workers Dispute Delays Production
--------------------------------------------------------------
The ongoing dispute between Dunlop India's new management and
its workers has further delayed commercial production at the
Company's Sahagunj plant in West Bengal, The Economic Times
says.
The clash was over payment of arrears to workers of the Sahagunj
facility, which was closed in August 2001 and reopened in April
this year.
As reported by the Troubled Company Reporter - Asia Pacific on
May 2, 2006, 4,378 Dunlop workers were not pleased with the
Company's partial payment of INR30,000 arrears at the Sahagunj
plant. The workers were expecting a paycheck of INR5,000, but
were greeted with a pay-out ranging between INR3,000 and
INR4,500 on the basis of the payment being pro-rated to their
attendance. The workers claimed that the new management was
paying them much less than what was agreed on.
The TCR-AP said that the Ruia management had already approached
the labor commissioner to sort out the arrear payment crisis,
which has already hampered the complete reopening of the
Shahgunj factory.
The Economic Times says that since the tripatrite meeting held
on May 29, 2006, failed to settle the labor issue, the Dunlop
management scheduled another meeting on June 5.
About Dunlop India
Headquartered in Kolkota, India, Dunlop India Limited is
involved principally in manufacturing and distributing
automotive tires and tubes. The firm's other activities include
manufacturing high-pressure hoses, steelcord belting and
vibration isolators. The company had reported profit until
March 1997. In January 1998, the Board of Directors decided
that the Company had become sick due to the necessity of
reversing the earlier decision for sale of some real estate
property of the company through a subsidiary, Dunlop Investment
Limited. This decision required a reversal of corresponding
entry of INR1,700 million and its reflection in the accounts of
the financial year 1997-98. After taking this into account, the
Board of Directors decided to refer the Company to Board of
Industrial and Financial Reconstruction and abruptly announced
suspension of Dunlop's operations in both Sahagunj and Ambattur
in February 1998. The Ministry for Law, Justice and Company
Affairs had also come to the conclusion after inspection of the
Books of Accounts of Dunlop India that there were serious
irregularities and had moved the Company Law Board for
appointment of Government Directors. In January 2006, the Ruia
Group took over the Company and voted to reopen its plants.
Both the Sahagunj and Ambattur plants were reopened in April
2006.
IBP COMPANY: Merger with Indian Oil Pushes Through in November
--------------------------------------------------------------
Indian Oil Corporation Ltd has received shareholders' approval
to merge with its subsidiary, IBP Company Ltd, Bombay Stock
Exchange reveals.
Indian Oil's stakeholders gave their consent to the merger
proposal at a meeting convened by the Ministry of Company
Affairs on May 29, 2006.
Indian Oil planned the merger earlier this year, the Troubled
Company Reporter - Asia Pacific recounts. In April, the Indian
Oil board met and gave the merger proposal an in-principle
approval. The plan was subsequently referred for endorsement to
the Ministry of Company Affairs, which convened the meeting of
Indian Oil shareholders.
The merger with Indian Oil, which is expected to materialize in
November this year, is seen pulling IBP Company out of the red,
The Financial Express says. However, with the merger now being
put to a later date from the original May 2006 target, IBP will
continue to make losses on account of selling petroleum products
below cost, Financial Express adds.
Post merger, all the employees of IBP will be absorbed into the
merged entity. Currently, IBP has 897 officers and 1,202 staff,
while Indian Oil has 5,435 officers and 9,875 staff.
According to Financial Express, IBP will be retained as a brand
and will be a separate division of Indian Oil like the oil
refiner's other divisions.
About IBP Company Limited
Headquartered in West Bengal, India, IBP Company Limited
-- http://www.ibpoil.com/-- is engaged in the storage,
distribution and marketing of petroleum, chemicals and aluminum
cryogenic containers. The Company operates in three segments:
Petroleum, Chemicals and Engineering. The Company has been
suffering from a string of losses since last year due to a
Government mandate to sell fuel to the public at subsidized
prices. In September 2005, IBP warned the Government that it
would go bankrupt if it will not raise petrol, diesel, liquefied
petroleum gas and kerosene prices. The Company had reported a
79% decline in net profit at Rs 12.44 crore for the year ended
March 31, 2006 as compared with Rs 58.87 crore in FY05. The
Government recently granted the Company INR400 crore in oil
bonds to offset losses.
LML LIMITED: Opts to Extend Financial Year
------------------------------------------
LML Limited's board of directors, at its meeting on May 30,
2006, decided to extend the Company's current financial year
from 12 months -- April 1, 2005, to March 31, 2006 -- to 18
months -- April 1, 2005 to September 30, 2006.
The Company's announcement posted on the Bombay Stock Exchange
did not specify the reason for the planned fiscal year
extension.
The proposal is subject to the approval of the Registrar of
Companies of Uttar Pradesh and Uttaranchal, Kanpur.
About LML Limited
Headquartered in Uttar Pradesh, India, LML Limited manufactures
two wheeler vehicles particularly scooters and spares and
accessories. The Group's products include geared scooters,
gearless scooters, motorcycles and mopeds. The Company has been
incurring consecutive losses since 2004. As on March 31, 2005
LML had capacity to manufacture 0.45 million scooters and 0.18
million motorcycles per annum. During the 18 month period ended
March 2005, LML reported turnover of INR5.97 billion and a net
loss of INR956.06 million. The Company is currently in a
restructuring mode -- for the second time in less than a year --
and is struggling to overcome working capital problems. Labor
unrest and a lack of working capital have practically stopped
production and dispatches at its sole Kanpur plant in the past
few weeks.
OK PLAY: Board Meeting Adjourned to June 16
-------------------------------------------
The meeting of OK Play India Limited's board of directors has
been adjourned to June 16, 2006.
The meeting was originally scheduled for March 29, 2006.
During the meeting, the directors will consider and allot equity
shares to its promoters and associates according to the
rehabilitation scheme sanctioned by the Board for Industrial and
Financial Reconstruction.
About OK Play India Limited
Headquartered in New Delhi, India, OK Play India Limited
-- http://www.okplayindia.com/-- was one of the leading plastic
molding companies in India. It was booking nominal profits
until its registered a INR748 lakh-loss in the nine months ended
March 31, 1998. In August 1999, the Board for Industrial and
Financial Reconstruction appointed Canara Bank as operating
agency for OK Play India Limited. The Bank's role was to
ascertain the extent of OK Play's sickness. The Company was
referred to the BIFR after it shortened its financial year to
nine months and revealed deviations in its balance sheet. The
Company eventually drafted a rehabilitation scheme, which was
approved by the BIFR in December 2005.
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I N D O N E S I A
=================
GARUDA INDONESIA: To Meet with Creditors on Restructuring
---------------------------------------------------------
National airline PT Garuda Indonesia said that it would meet
with its European Credit Agency creditors to discuss its debt
restructuring plan, Antara News reports.
According to AFX News, Garuda spokesman Pudjobroto said that the
creditors decided to come to Indonesia after they met with
Garuda officials in London on May 22, 2006, where the Company
presented a revised debt restructuring plan for approval. No
date for the meeting has been set, but Bisnis Indonesia cited
Garuda president Emirsyah Satar as saying that the talks with
creditors are expected next week.
Antara News reveals that Garuda Indonesia's debt totals IDR7.32
trillion, with IDR4.6 trillion owed to its European Credit
Agency creditors, according to Mr. Pudjobroto, who did not
reveal the details of the revised plan. Fierce competition from
rival budget airlines and rising aviation fuel prices have made
it difficult for the Company to pay its yearly debt installments
of US$100 million.
Transport Minister Hatta Rajasa had said that the Indonesian
Government wants to reduce Garuda Indonesia's debts to US$274
million, partly through the sale of a 30% stake in the Company,
AFX News relates.
About Garuda Indonesia
Headquartered in Jakarta, Indonesia, government-owned airline PT
Garuda Indonesia -- http://www.garuda-indonesia.com/--
currently has a fleet of about 77 aircraft offering service to
some 27 domestic and 33 international destinations. Under its
Citilink brand, it serves another 10 domestic routes. Garuda
also ships about 200,000 tons of cargo a month and operates a
computerized tracking system.
The carrier has been hard-hit by plunging arrivals on the resort
island of Bali, where tourists have been killed in bomb attacks
in 2002 and 2005. It has also suffered from soaring global oil
prices, a weakening of the Indonesian rupiah and rising interest
rates. At present, Garuda is concentrating its efforts on
repaying its debts with foreign creditors under the European
Credit Agency, which were due last December 31, 2005. Garuda
Indonesia's debt totals IDR7.32 trillion, with IDR4.6 trillion
owed to its ECA creditors.
In March 2006, the Indonesian Government proposed to infuse
IDR2.3 trillion for PT Garuda Indonesia's debt restructuring, or
set up a "special-purpose vehicle" in a bid to pay the airline's
debts. Sugiharto, the state-owned enterprises minister, said
that if the second option was agreed, the special-purpose
vehicle would repay debt principal and interest of IDR735.7
billion annually within a 10- year period. Mr. Sugiharto added
that the financial sources would be from the airline's leasing
revenues of IDR275.8 billion a year and from the Government's
fund of IDR459.7 billion a year. The carrier posted a
SGD46.5 billion net loss in January, versus a net loss of
IDR56.1 billion in the same period last year.
INDOFOOD SUKSES: Posts 48% Rise in Net Income for First Quarter
---------------------------------------------------------------
PT Indofood Sukses Makmur released its financial results for the
first quarter ended March 31, 2006. The Company revealed net
sales of IDR4.9 trillion, a 14.3% growth over the same period in
2005. Export revenues of US$60.8 million, or 11% of total
sales, was achieved. The Company's Board of Directors
attributes this increase to increases in both sales volumes and
revenues of noodles of 19.0% and 17.6%, respectively.
Several factors, particularly the effect of the increase in fuel
cost in late 2005, caused increases in production and
transportation costs, and increase in raw material costs
affected both gross and operating margins, causing these to
decline to 21.9% and 8.8% in the first quarter.
On the positive side, the financial report reveals that the
Company's net income increased 48.3% to IDR173.9 billion, from
the IDR117.3 billion in the same quarter in 2005. The
strengthening of the rupiah in the first quarter 2006 resulted
in net foreign exchange gains of IDR125 billion for the Company.
Together with lower interest expenses and other financing
charges, the Indofood Board notes, the net profit for the first
quarter of 2006 improved significantly.
Indofood's balance sheet shows that total assets as of March 31,
2006, remained unchanged at IDR14.8 trillion, whereas
shareholders' equity slightly increased to IDR4.5 trillion, from
the IDR4.3 trillion as of December 31, 2005.
The Company's balance sheet reflects these key figures:
(in IDR Millions)
03/31/2006 12/31/2005
---------- ----------
Current Assets 6,611 6,202
Total Assets 14,810 15,090
Current Liabilities 4,082 4,571
Total Liabilities 14,810 15,090
Moreover, outstanding U.S. dollar-denominated debts as of
March 31, 2006, increased to around US$212 million -- from the
US$190.6 million as of December 31, 2005 -- due mainly to the
increase of Trust Receipts Payable of US$30.4 million. However,
the Company's total outstanding debts in Rupiah equivalent
remains about the same at IDR6.8 trillion, mainly due to the
Rupiah appreciation. As a result, Debt-to-Equity ratio slightly
improved to 1.52 times while Net Gearing ratio improved to 1.30
times.
On the planned redemption of outstanding 10.375% Eurobond
totaling US$143.7 million at the end of March 2006, following
the decision of the United Kingdom High Court issued in early
March 2006 in favor of Indofood's appeal, the Company will
proceed with the redemption, once all required legal procedures
have been completed.
The Board of Directors believe that Indofood is "well positioned
to face present or future challenges with its strong and
diversified businesses and market leading brands, provided that
macro economic conditions remains conducive." Continuous
product innovation, prudent management of debts, as well as the
implementation of significant changes in the supply and
distribution chains, improvement in operating systems and
procedures, and manpower rationalization will make the Company
more effective and efficient in its operations, thereby
delivering better results, the Board adds.
Indofood's Annual General Meeting is scheduled to be held in the
first week of June 2006. The Board will propose dividend
payments from the 2005 net income.
* * *
PT Indofood Sukses Makmur Tbk -- http://www.indofood.co.id/--
is Indonesia's premier processed foods company. Its products,
including instant noodles, wheat flour, branded edible oils and
fats, baby foods, snack foods, food seasoning, lead domestic
market shares. Indofood is currently the largest instant
noodles manufacturer and the largest flour miller in the world,
with installed capacities of approximately 13 billion packs and
3.6 million tons per annum, respectively. Indofood's products
are distributed mainly through its subsidiaries, including
Indomarco, independent distributors, as well as some
cooperatives, that bring the Company's products to more than
150,000 retail outlets in the country. A combination of
shrinking profits, escalating costs, losses, competition and a
declining rupiah prompted the Company to cut around 2,000 or
4.4% of its workforce and slash 40 products from its range in
2005.
In 2005, PT Indofood's total outstanding debt fell to IDR6.8
trillion from IDR7.9 trillion in 2004. The United States dollar
denominated debts also fell to US$190.6 million in the same
period from US$317.4 million in 2004.
PT Indofood has bought back US$166.3 million of its US$280
million Eurobonds due in 2007. The Company also plans to redeem
all the outstanding balance of the Eurobonds this year.
On March 1, 2006, Moody's Investors Service placed on review for
possible upgrade the B2 foreign currency issuer rating of
Indofood Sukses and the senior unsecured bond rating of Indofood
International Finance Limited.
=========
J A P A N
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KOBE STEEL: Fitch Upgrades IDR to 'BB+' from BB
-----------------------------------------------
Fitch Ratings has upgraded the Long-term foreign and local
currency Issuer Default Ratings of Japanese steel-maker Kobe
Steel to 'BB+' from 'BB'. At the same time, the agency affirmed
Kobelco's Short-term IDR at 'B'. The Outlook on the ratings is
Positive.
The rating upgrade reflects the ongoing consistent improvement
in the company's credit metrics, with total adjusted
debt/operating EBITDAR having improved to 2.6x at FYE06 from
9.3x at FYE02. Kobelco's business model emphasizes stability,
and focuses on its core steel business, while at the same time
benefiting from diversification across steel-related and other
businesses. The agency notes that although this model has led
to lower growth in profitability than if the company had a
greater focus on steel, it has protected Kobelco to some extent
against periodic volatility in steel prices.
Going forward, Kobelco intends to increase further the
proportion of high-margin "Only One" products -- which the
company defines as original, value-added products -- within its
product mix. Fitch notes that this should protect the company's
margins and underpin its cash flow generation capacity. Kobelco
seeks to avoid being drawn into price wars and has already
reduced volumes in certain product categories in order to
prevent price erosion. This margin pressure in the steel
business is mitigated in the short term by improving margins in
some of the company's non-steel product categories.
Kobelco's credit profile has been positively affected by the
repayment of more than JPY500 billion of debt since 2000. The
company's recently announced results for FYE06 saw its net
income increase by 35% year-on-year to JPY84.6bn, mainly due to
higher average steel prices. Additionally, the company's
machinery business is recovering in line with the broad economic
recovery in Japan and increased demand abroad; its LCD material
business is benefiting from the robust demand for consumer
electronics.
The company's new three-year management plan is targeting
further steady growth and margin stability. Fitch is of the
opinion that the planned increase in CAPEX to JPY152 billion
this year could help the company to meet its medium-term targets
even though the investment will temporarily strain its cash
flow. As margin pressure is likely to increase even in medium
grade steel products, an increase in the production capacity for
Kobelco's value-added products is considered a sensible move as
it should help to protect the quality of its earnings and cash
flow.
Kobelco's Positive Outlook reflects Fitch's expectations that
the company is on track to achieve continuing improvements in
its profitability and credit metrics during the next few years,
with targeted additional debt reduction designed to reduce the
debt/equity ratio to 0.8x in 2008.
Kobelco is Japan's fourth-largest steel manufacturer. Its
annual crude steel production is more than 7.5 million tonnes.
More than 40% of its revenue is generated from non-steel
products, notably from aluminium and machinery. Sales in FYE06
were JPY1667 billion.
NISSIN COMPANY: S&P's BB+ Rating Unchanged by Share Issue
---------------------------------------------------------
Standard & Poor's Ratings Services said that there would be no
impact on the BB+ rating, with stable outlook, on Nissin Co.
Ltd. from the company's capital increase through an JPY8 billion
third-party allocation of new shares to Sumitomo Mitsui Banking
Corp., announced on May 25, 2006.
Compared to preferred stock, common stock has more capacity to
absorb losses, so Standard & Poor's believes the share issuance
will enhance Nissin's capital to some degree. But the resulting
1.7% increase in the Company's capital ratio is not enough to
warrant a rating upgrade. The transaction strengthens the
company's relationship with Sumitomo Mitsui Financial Group, and
while this is a positive development, it will likely take some
time for their business cooperation to yield material benefits.
Nissin is increasing its investment in comparatively risky
businesses, such as equity investments, in line with its growing
number of tie-ups and its greater investment in real estate
finance. Standard & Poor's will monitor Nissin's capitalization
to see if it remains adequate to the increase in risk volume.
=========
K O R E A
=========
DAEWOO GROUP: Court Sentences Founder to 10 Years in Prison
-----------------------------------------------------------
On May 30, 2006, the Seoul Central District Court sentenced
Daewoo Group's founder, Kim Woo-choong, to a 10-year jail term
for massive fraud and embezzlement, The Seoul Times reports.
According to BBC News, the court said that a "severe sentence
was unavoidable" after Mr. Kim was found guilty of ordering his
executives to inflate the group's assets by KRW41 trillion
between 1997 and 1998, and of illegally borrowing about KRW10
trillion from local banks by manipulating accounting figures and
forging letters of credit. Mr. Kim was also found guilty of
diverting KRW25 trillion won in slush funds overseas by
manipulating import-export transaction records.
Michigan Wire notes that the court also ordered Mr. Kim to pay a
fine of KRW10 million and forfeit more than KRW21 trillion.
As reported in the Troubled Company Reporter - Asia Pacific on
May 12, 2006, prosecutors earlier sought a 15-year prison
sentence form Mr. Kim, as well as a KRW23 trillion fine. Mr.
Kim was indicted last year.
The Seoul Times further relates that Mr. Kim was not physically
detained immediately as he was permitted by the Court to stay
out for medical treatment until July 28, 2006. He is currently
hospitalized at the Yongdong Severance Hospital due to heart
problems.
BBC News recounts that Mr. Kim, has been on the run for six
years.
* * *
The Troubled Company Reporter - Asia Pacific reported on
February 20, 2006, that Daewoo Group collapsed after borrowing
heavily to finance expansion. The blow to the Group came with
the 1997 Asian financial crisis, with a debt of around US$80
billion as of July 1999.
As stated in that TCR-AP report, five former affiliates of
Daewoo Group, which individually went bankrupt and were
separated from the group in 1999, had been up for sale:
1. Daewoo Engineering & Construction Co.,
2. Daewoo International Corp.,
3. Daewoo Shipbuilding & Marine Engineering Co.,
4. Daewoo Electronics Corp., and
5. Daewoo Precision Industries Co.
HYUNDAI MOTOR: Court Proceedings for Chief to Start on June 1
-------------------------------------------------------------
A judge at the Seoul Central District Court said that the
hearing for Hyundai Motor Co. Chairman Chung Mong-koo, indicted
for embezzlement and breach of trust earlier this month, will
start on June 1, 2006, Bloomberg reports.
The Troubled Company Reporter - Asia Pacific reported on May 17,
2006, that Mr. Chung was indicted following charges of
embezzling about US$106 million since 2002 to create a slush
fund to bribe banks and government officials, as well as of
incurring about US$320 million in damages to Hyundai.
District Court Judge Kim Dong Oh will preside over the hearing
for Mr. Chung's case and for his request for bail, Bloomberg
relates.
About Hyundai Motor
Headquartered in Seoul, South Korea, Hyundai Motor Company --
http://www.hyundai-motor.com/-- has been selling cars in the
United States since 1986, but it only started selling its heavy
trucks stateside in 1998. Hyundai produces 14 models of cars
and minivans, as well as trucks, buses, and other commercial
vehicles. The Company reestablished itself as Korea's leading
carmaker in 1998 by acquiring a 51% stake in Kia Motors -- since
reduced to about 45%. The Company also manufactures machine
tools for factory automation and material- handling equipment.
The Troubled Company Reporter - Asia Pacific reported that the
Hyundai Automotive Group is facing its deepest crisis since
chairman Chung Mong-koo took over in 1999, with problems like
the falling United States dollar, high oil prices and union
demands aggravated by a sweeping criminal investigation
regarding the carmaker's alleged creation of slush funds that
were used by at least two lobbyists to bribe government
officials for business favors, including having KRW55 billion
of Hyundai's bad debts written off.
Chairman Chung has been indicted early in May 2006 for fraud
charges.
Some of the group's official business has been on hold since the
probe on the slush fund started and several top executives were
summoned for questioning.
Kia Motor President Chung Eui-sun, the group chairman's son, is
currently under a travel ban. Other affiliates are also feeling
the pinch. Amid all this, Hyundai Motor's labor union is
demanding a wage increase of 9.1% or KRW125,524 (US $125),
significantly more than 2005's 6.9% or KRW89,000. The union is
expected to capitalize on the slush fund allegations in support
of its case and make matters worse for management.
===============
M A L A Y S I A
===============
AMTEK HOLDINGS: Unit Divests Property for MYR400,000
----------------------------------------------------
Amtek Holdings Berhad's wholly owned subsidiary, Amtek Holdings
Berhad, on May 26, 2006, entered into a Sale and Purchase
Agreement to sell a piece of leasehold land with an industrial
building for a total cash consideration of MYR400,000.
The purchasers are:
* Kong Sing Keong;
* Kwan Hong Wai;
* Kong Sin Loong; and
* Yeong Pui Kuan.
On May 25, 2006, Amtek Holdings' board of directors approved and
accepted the Proposed Disposal as per the terms and conditions
of the said Agreement.
The Proposed Disposal is expected to realize a gain of
approximately MYR268,595 and the sale proceeds will be used for
the Group's working capital.
About Amtek Holdings Berhad
Headquartered in Kuala Lumpur, Malaysia, Amtek Holdings Berhad's
principal activities are the marketing and distribution of
garments and electrical goods. Its other activities include
manufacture of shoes, garments and food products, trade of
fabrics and related accessories, marketing and distribution of
jeans wear, property investment, provision of management
services and investment holding. Operations are carried out in
Malaysia, Europe, Australia, Singapore, United States and other
Asian countries. The Company is currently undergoing a business
reorganization program to curb losses. For the quarter ended
December 31, 2005, the Company booked a net loss of MYR1.7
million due to the poor performances in its apparels and
electrical divisions. The prospects for the remaining quarters
are not expected to improve as the apparels and electrical
divisions are undergoing business reviews and revamp exercises.
AVANGARDE RESOURCES: Posts MYR1.3 Million Loss for First Quarter
----------------------------------------------------------------
Avangarde Resources Berhad, on May 26, 2006, filed with Bursa
Malaysia Securities Berhad its financial report for the first
quarter ended March 31, 2006,
The Group has achieved a turnover of MYR0.013 million and a loss
before tax of MYR1.304 million for the first quarter of 2006.
It reported a loss before tax of MYR1.304 million for the
current quarter compared to a loss before tax of MYR1.7 million
in the preceding quarter.
Basic loss per share for the quarter under review is 2.98 sen.
The directors did not recommend any dividend for the quarter
ended March 31, 2006
The Company's balance sheet as of March 31, 2006, showed
strained liquidity, with current liabilities of MYR147,506,000
exceeding current assets of MYR9,289,000. The Company has a
current net deficit of MYR138,217,000.
Summary of Key Financial Information
Individual Period Cumulative Period
Current Year Preceding Year Current Year Preceding Year
Quarter Corresponding to Date Corresponding
Quarter Period
31-03-2006 31-03-2005 31-03-2006 31-03-2005
MYR'000 MYR'000 MYR'000 MYR'000
* Revenue
13 107 13 107
* Profit/(loss) before tax
-1,304 -1,743 -1,304 -1,743
* Profit/(loss) after tax and minority interest
-1,304 -1,743 -1,304 -1,743
* Net profit/(loss) for the period
-1,304 -1,743 -1,304 -1,743
* Basic earnings/(loss) per shares (sen)
-2.98 -3.98 -2.98 -3.98
* Dividend per share (sen)
0.00 0.00 0.00 0.00
* As at end of As at Preceding
Current Quarter Financial Year End
-2.9066 0.8189
The Company's First Quarter Report, and its accompanying notes
are available for free at:
http://bankrupt.com/misc/tcrap_avangarderesources053006.xls
http://bankrupt.com/misc/tcrap_avangardenotes053006.pdf
About Avangarde Resources Berhad
Headquartered in Kuala Lumpur, Malaysia, Avangarde Resources
Berhad is involved in the construction and development of
housing projects. The Group has incurred huge losses due to
provision of doubtful debts and writing off of bad debts. It
was delisted from the Official List of Bursa Malaysia Securities
Berhad due to its inadequate financial condition and its failure
to meet with the requirements of the Bourse. The Company is now
preparing the Proposed Scheme of Arrangement pursuant to the
Section 176 of the Companies Act to regularize its financial
condition. The Company will unveil its Proposed Scheme once it
is finalized.
CONSOLIDATED FARMS: To Halt Shares Trading on June 5
----------------------------------------------------
Consolidated Farms Berhad has failed to regularize its financial
condition within the prescribed timeframe stipulated by Bursa
Malaysia Securities Berhad pursuant to the Listing Requirements.
In this regard, the Bourse has decided to suspend the Company's
securities effective June 5, 2006, until further notice.
About Consolidated Farms Berhad
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. As of March 31, 2006, Confarm said
that it will not be able to settle all its debts in full when
they fall due within the next 12 months and hence, the Company
is unable to provide a solvency declaration.
FOUNTAIN VIEW: Auditors Note Variance in Financial Results
----------------------------------------------------------
The auditors of Fountain View Development Berhad have noted that
the unaudited results of the group, as disclosed on February 27,
2006, has deviated by more than 10% from the audited results for
the financial year ended December 31, 2005.
The Group's unaudited accounts revealed a net loss of
MYR5,364,000, while the audited report showed a net loss of
MYR68,488,000. The variance is MYR63,124,000.
According to Fountain View, the variance is mainly due to
allowance of doubtful debts in respect of the receivables made
by the Company on a prudent basis and over provision of
taxation.
The Variance in Loss After Taxation for the Unaudited and
Audited Income Statement are detailed in this table:
Unaudited Audited
Year Ended Year Ended
Dec. 31, 2005 Dec. 31, 2005 Variance
MYR'000 MYR'000 MYR'000
Revenue 70,444 68,901 (1,543)
Expenses (70,130) (132,666) (62,536)
Other Operating
Income 1,472 1,560 88
Profit/(Loss)
from Operation 1,786 (62,205) (63,991)
Finance Cost (4,325) (4,285) 40
Loss Before Taxation (2,539) (66,490) (63,951)
Taxation (2,825) (1,999) 826
Loss After Taxation (5,364) (68,489) (63,125)
Minority Interest - 1 1
Loss for the year (5,364) (68,488) (63,124)
A full-text copy of the Company's unaudited report for the year
ended December 31, 2005, is available for free at:
http://bankrupt.com/misc/tcrap_fountainview053006.xls
Headquartered in Selangor Darul Ehsan, Malaysia, Fountain View
Development Berhad's principal activity is property development.
The Company's other activities include plantation and production
of crude palm oil and palm kernel and investment holding. The
group principally operates in Malaysia.
MITHRIL BERHAD: Books MYR1.034-Mln Pre-tax Loss in Third Quarter
----------------------------------------------------------------
Mithril Berhad, on May 25, 2006, submitted its financial report
for the third quarter ended March 31, 2006, to the Bursa
Malaysia Securities Berhad.
According to the report, the Group achieved a turnover of
MYR14.599 million for the quarter ended March 31, 2006, as
compared to MYR10.799 million in the same quarter last year.
The increase of the Group's turnover was attributed to increase
in turnover reported by the subsidiary Mithril Saferay Sdn Bhd
manufacturing and selling polyurethane architectural moldings
and the initial contribution from Mithril FRP Industries Sdn
Bhd, a wholly owned subsidiary that is involved in fiber
reinforced plastic fabrications.
For the quarter under review, the Group recorded a loss before
taxation of MYR1.304 million as compared to a loss before
taxation of MYR1.610 million for the same period last year. The
improvement is due to the higher contribution from the
manufacturing operation.
The recent pre-tax loss of MYR1.304 million was higher compared
to a loss before taxation of MYR0.645 million in the immediate
preceding quarter ended December 31, 2005. The higher loss was
due to the increase in prices of petroleum-based raw materials
for Mithril Saferay Sdn Bhd.
Turnover for the current quarter as of March 31, 2006, is
MYR14.599 million as compared to MYR19.576 million as reported
in the preceding quarter ended December 31, 2005. The decrease
in the turnover during the current quarter is mainly due to the
inherent cyclical factors that demand and shipment for
architectural mouldings made of polyurethane are lower during
the month of January to March due to winter months of the
northern hemisphere.
A fire that broke out on the tunnel kiln of Tajo Berhad had also
contributed to the decrease in sales as brick operations have
been suspended and this had been announced in the last quarter.
Barring unforeseen circumstances, the Company's directors
anticipated a slight improvement in the performance of the Group
for the coming quarter due to seasonal increase in demand of
polyurethane products and on-going cost-saving measures.
No dividends have been paid since the beginning of the current
financial year, and the directors do not recommend any dividend
for the quarter under review.
Summary of Key Financial Information
Individual Period Cumulative Period
Current Year Preceding Year Current Year Preceding Year
Quarter Corresponding to Date Corresponding
Quarter Period
31-03-2006 31-03-2005 31-03-2006 31-03-2005
MYR'000 MYR'000 MYR'000 MYR'000
* Revenue
14,599 10,799 53,487 36,631
* Profit/(loss) before tax
-1,304 -1,610 -352 -5,601
* Profit/(loss) after tax and minority interest
-1,522 -1,642 -1,462 -6,301
* Net profit/(loss) for the period
-1,522 -1,642 -1,462 -6,301
* Basic earnings/(loss) per shares (sen)
-1.40 -1.97 -1.35 -7.58
* Dividend per share (sen)
0.00 0.00 0.00 0.00
* As at end of As at Preceding
Current Quarter Financial Year End
1.3944 1.4509
The Company's Third Quarter Report, and its accompanying notes
are available for free at:
http://bankrupt.com/misc/tcrap_mithrilbhd053006.xls
http://bankrupt.com/misc/tcrap_mithrilnotes053006.pdf
About Mithril Berhad
Headquartered in Kota Kinabalu, Malaysia, Mithril Berhad
-- http://www.mithril.com.my/-- manufactures bricks and
polyurethane products. Its other activities include dealing and
distribution of bricks and building materials, development of
properties, property management and investment holding. Mithril
was incorporated as a shell company in April 2002 to facilitate
the proposed restructuring exercise of Tajo Berhad, which was an
affected listed issuer pursuant to the Kuala Lumpur Stock
Exchange's Practice Note 4/2001. The restructuring exercise
involved the proposed capital reconstruction and cancellation of
share premium account of Tajo, a scheme of arrangement, fund
raising exercise, acquisition of Saferay (M) Sdn Bhd (Saferay) &
Menara MAA in Kota Kinabalu and Kuching, and debt settlement of
Tajo's secured and unsecured creditors. Upon the completion of
the restructuring exercise, Mithril held a 100% stake in Tajo
and assumed the latter's listing status. Mithril, however,
started to incur losses since its listing and has so far failed
to turn the business around. For the quarter ended March 31,
2006, the Company registered a net loss of MYR1.5 million.
PAN MALAYSIA CORP: Seeks to Renew Authority to Buy Back Shares
--------------------------------------------------------------
Pan Malaysia Corporation Berhad intends to seek shareholders'
approval on the proposed renewal of authority from the Company's
shareholders for the purchase by the Company of its own shares.
The board of directors will table the matter at Company's
forthcoming Annual General Meeting.
A circular to shareholders containing details of the proposal
will be dispatched to the shareholders in due course.
About Pan Malaysia Corporation
Headquartered in Kuala Lumpur, Malaysia, Pan Malaysia
Corporation Berhad provides management services and the
manufacturing, marketing and distribution of confectionery and
cocoa-based and other food products. The Company also operates
departmental and specialty stores, construction and property
investment and investment holding. The Group operates in
Malaysia, Australia and the rest of Asia-Pacific. Pan Malaysia
has suffered consecutive losses in the past due to skyrocketing
operating expenses. The group has been selling assets to curb
losses. In the fiscal year ending December 31, 2005, the
Company booked a net loss of MYR6.8 million.
PARACORP BERHAD: Incurs MYR12.3-Mln Net Loss in First Quarter
-------------------------------------------------------------
Paracorp Berhad, on May 26, 2006, filed its financial report for
the first quarter ended March 312, 2006, with the Bursa Malaysia
Securities Berhad.
Turnover for the current quarter compared to that of the same
quarter last year increased by MYR0.83 million. The increase is
mainly due to increase in orders from the electronics sector.
Loss from operations of MYR12.2 million increased by MYR8.33
million from MYR4.02 million in the same quarter last year. The
Group reported a higher loss due to:
-- the write down of the remaining Research and Development
cost and the net book value of fixed assets of a
subsidiary amounting to approximately MYR5.84 million;
and
-- provision made on non-current assets held for sale
amounting to approximately MYR3.26 million.
For the quarter under review, the Company recorded a net loss of
MYR12.3 million and a basic loss per share of 9.26 sen. The
Company did not propose any dividend during the financial
quarter.
As of March 31, 2006, the Company's balance sheet revealed total
assets of MYR106,347,000 and total liabilities of
MYR110,465,000, resulting in a MYR41,180,000 stockholders'
equity deficit.
The Company's March 31 balance sheet also showed strained
liquidity with MYR50,909,000 in total current assets available
to pay MYR101,857,000 in total current liabilities coming due
within the next 12 months.
Summary of Key Financial Information
Individual Period Cumulative Period
Current Year Preceding Year Current Year Preceding Year
Quarter Corresponding to Date Corresponding
Quarter Period
31-03-2006 31-03-2005 31-03-2006 31-03-2005
MYR'000 MYR'000 MYR'000 MYR'000
* Revenue
18,760 17,934 18,760 17,934
* Profit/(loss) before tax
-12,250 -4,024 -12,250 -4,024
* Profit/(loss) after tax and minority interest
-12,317 -4,048 -12,317 -4,048
* Net profit/(loss) for the period
-12,317 -4,048 -12,317 -4,048
* Basic earnings/(loss) per shares (sen)
-9.26 -3.11 -9.26 -3.11
* Dividend per share (sen)
0.00 0.00 0.00 0.00
* As at end of As at Preceding
Current Quarter Financial Year End
-0.0309 0.0618
The Company's Financial Report and its accompanying notes are
available for free at:
http://bankrupt.com/misc/tcrap_paracorpbhd053006.xls
http://bankrupt.com/misc/tcrap_paracoprnotes053006.pdf
About Paracorp Berhad
Paracorp Berhad's principal activities are the manufacture and
trading of printed graphic overlay, printed electronic circuits,
electroluminescent display, telemetry monitoring system,
electronic circuit components, corrugated plastic sheets,
corrugated carton boxes and plain boards. Its other activities
include the provision of management services, investment
holding, property investment, property management, money
lending, technology management and research and development
services. The Group operates in Malaysia, Oceanic countries,
European countries, American countries and other Asian
countries.
PSC INDUSTRIES: Lower Turnover Leads to MYR13.9-Mln Pre-tax Loss
----------------------------------------------------------------
Bursa Malaysia Securities Berhad had, on May 26, 2006, received
PSC Industries Berhad's financial report for the first quarter
ended March 31, 2006.
The Group's turnover for the quarter ednded March 31, 2006, is
lower at MYR15,472,000 as compared to a turnover of
MYR51,543,000 for the same quarter last fiscal year.
The decline in the Group's turnover for the quarter under review
that led to a pre-tax loss was of MYR13,910,000 million resulted
from:
-- no contribution from PSC-Naval Dockyard Sdn Bhd as it
has ceased to be a subsidiary of the Group in the last
quarter of year ended December 31, 2005;
-- lower contribution from marine engineering, construction
and oil and gas sectors; and
-- high financing costs.
The lower loss for the quarter under review as compared with the
preceding quarter's MYR33,160,000 loss was mainly due to write
offs for impairment of assets, goodwill, deferred assets and
expenses, doubtful debts and cost overruns at PSCND in the last
quarter of 2005.
There was no dividend paid for the current financial quarter
ended March 31, 2006.
As of March 31, 2006, the Company's balance sheet showed
MYR212,330,000 in total assets and MYR677,272,000 in total
liabilities, resulting in a MYR464,942,000 stockholders' equity
deficit.
The Company's March 31 balance sheet also revealed weak
liquidity with MYR68,773,000 in total current assets available
to pay MYR673,409,000 in total current liabilities coming due
within the next 12 months.
Summary of Key Financial Information
Individual Period Cumulative Period
Current Year Preceding Year Current Year Preceding Year
Quarter Corresponding to Date Corresponding
Quarter Period
31-03-2006 31-03-2005 31-03-2006 31-03-2005
MYR'000 MYR'000 MYR'000 MYR'000
* Revenue
15,472 51,543 15,472 51,543
* Profit/(loss) before tax
-13,429 -37,519 -13,429 -37,519
* Profit/(loss) after tax and minority interest
-13,910 -33,160 -13,910 -33,160
* Net profit/(loss) for the period
-13,910 -33,160 -13,910 -33,160
* Basic earnings/(loss) per shares (sen)
-7.99 -19.05 -7.99 -19.05
* Dividend per share (sen)
0.00 0.00 0.00 0.00
* As at end of As at Preceding
Current Quarter Financial Year End
-2.7000 -2.5500
The Company's First Quarter Report and its accompanying notes
are available for free at:
http://bankrupt.com/misc/tcrap_pscindustries053006.xls
http://bankrupt.com/misc/tcrap_pscindustriesnotes053006.pdf
About PSC Industries Berhad
PSC Industries Berhad's principal activities are shipbuilding
and ship repairing. It is also involved in heavy engineering
construction, provision of shipping management services,
manufacturing of aluminium fast passenger sea ferries, supplies
equipment and machineries, marketing and distributing Exocet
Weapon system, manufacturing of confectioneries, snack food and
related products, general trading, power plant construction and
its support activities, printing, property development, and
property and investment holding. The Group operates in
Malaysia, Australia and the Republic of Ghana. The Company is
currently formulating a regularization plan for the Group
pursuant to Practice Note 17/2005 of the Bursa Malaysia
Securities Berhad's Listing Requirements. The Company is also
looking at various measures to improve its financial solvency.
POLYMATE HOLDINGS: Details Wind-up Petition Against Unit
--------------------------------------------------------
Polymate Holdings Berhad's wholly owned subsidiary, Polymate
Industries (M) Sdn Bhd was, on May 18, 2006, served with a
petition dated March 3, 2006, by Commercial Plastic Industries
Sdn Bhd.
In its Petition, Commercial Plastic requests that:
-- Polymate Industries be wound-up by the Court under the
provisions of the Companies Act, 1965;
-- the Official Receiver be appointed as Provisional
Liquidator of the Defendant;
-- the costs of the Petition be paid out of the assets of the
Defendant; and
-- such other order may be made in the premises as will be
just and equitable.
Polymate Holdings explained that the winding-up petition was
first presented on March 25, 2005, and served upon Polymate
Industries on April 8, 2005, by Commercial Plastic.
Under the petition, Commercial Plastic claimed MYR262,578.43 as
of September 29, 2004, together with a monthly interest of 2%
for the payment of goods sold and delivered.
The Petitioner had reached a settlement with the Defendant
whereby the sum of MYR177,730-00 would be paid to Commercial
Plastic. The said payment was made without prejudice nor in
derogation to Polymate Industries' rights to dispute and
challenge the interest rate of 2% per month imposed by
Commercial Plastic amounting to MYR84,848-43 in a civil suit
that shall be subsequently filed by the Petitioner's solicitors
in the subordinate courts.
Polymate, which has a total investment of MYR13.5 million in
Polymate Industries, is of opinion that the winding-up
proceedings has no significant financial and operational impact
on the Group as Polymate Industries has temporarily ceased
operation and is an insolvent company.
Currently, Polymate Industries' solicitors are looking into the
matters and settlement of the outstanding sum.
About Polymate Holdings Berhad
Headquartered in Selangor Malaysia, Polymate Holdings Berhad
-- http://www.polymate.com.my/Hprofile_html.htm-- is engaged in
the manufacturing and marketing of lead acid batteries for the
automotive and related industries. It is also engaged in the
manufacturing and dealing of plastic articles and products,
corrugated carton boxes and related products, manufacturing and
trading of door closers and trading of building materials,
investment holding and provision of corporate and financial
support services. The Group operates in Malaysia, Australia,
New Zealand and Europe. Polymate Holdings is in the process of
working out possible plans to regularize its condition.
Operations in its subsidiaries will be revived when a workable
restructuring scheme is formalized with its lenders and when
fresh working capital can be injected into the operations. On
April 28, 2006, Bursa Malaysia Securities Berhad publicly
reprimanded and imposed a total fine of MYR84,000 on Polymate
Holdings Berhad for breach of the Bourse's Listing Requirements.
This was followed by another public reprimanded on May 26, 2006.
Meanwhile, Polymate says that it is still negotiating with its
lenders to restructure the Group's credit facilities and is
working on various schemes to regulate its financial position.
TALAM CORPORATION: Unable to File Annual Audited Accounts
---------------------------------------------------------
Talam Corporation Berhad's Annual Audited Accounts for the
financial year ended January 31, 2006, will not be ready for
release to Bursa Malaysia Securities Berhad by May 31, 2006, the
Company disclosed in a statement to the Bourse on May 26, 2006.
The Company explained that it failed to submit its Annual
Audited Accounts on the due date since it is presently
experiencing an acute shortage of personnel in the Accounts
Department and it has seriously affected the timely finalization
of the financial statements of the Company and its Group of
Companies. This is further compounded by the fact that certain
key personnel are tasked to special assignments in the Group's
debt restructuring and the proposed scheme of arrangement
pursuant to Section 176 (10) of the Companies Act, 1965
undertaken by Maxisegar Sdn Bhd, a major wholly owned subsidiary
of the Company.
This has invariably delayed the progress of the audit work
presently carried out by the external auditors. The completion
of the audit is also pending the confirmations and certain
valuation reports from external parties, the Company said.
Talam is currently working very closely with the external
auditors to have its Audited Accounts finalized and this will be
submitted to Bursa Securities and relevant authorities as soon
as possible.
About Talam Corporation
Headquartered in Kuala Lumpur, Malaysia, Talam Corporation
Berhad is principally engaged in property development. Its
other activities include trading building materials,
manufacturing of ready mixed concrete, provision for higher
educational programs, development and management of hotel, golf
and country club horticulturists, agriculturists and landscaping
designers and contractors and investment holding. Operations of
the Group are carried out in Malaysia and China. The Company
has accumulated mounting losses and debt in the past few years.
In a bid to cut back on its borrowings, the firm has agreed to
sell off some of its assets. The sales are expected to slash
the Company's short-term debts, which amounted to MYR1.8 billion
as of January 31, 2005.
TECHVENTURE BERHAD: Balance Sheet Shows Strained Liquidity
----------------------------------------------------------
The Bursa Malaysia Securities Berhad, on March 31, 2006,
received Techventure Berhad's financial report for the quarter
ended March 31, 2006.
According to the report, trading conditions for all the Group's
products remained unpromising. Price cutting by competitors in
the rubber insulation division continued unabated with the
result that margins were further eroded. Against high raw
material costs and intense competition, all the major operating
divisions continued to suffer losses.
The Group recorded a turnover of MYR7.527 million and a loss
after tax of MYR4.323 million before exceptional items for the
quarter and financial year-to-date ended March 31, 2006.
For the quarter under review the Group incurred a loss before
taxation of MYR4.323 million on a turnover of MYR7.527 million
compared to a loss before taxation and exceptional items of
MYR4.064 million on a turnover of MYR8.238 in the immediate
preceding quarter. Lower turnover due to the cessation of the
corrugating operations with yet to be matched lower overheads
has made operating margins poorer. Overheads for the
corrugating operations are expected to come down in the next
quarter after all redundant costs cease.
The Company's balance sheet as of March 31, 2006, showed
strained liquidity, with MYR17,729,000 in current assets
available to pay current liabilities of MYR143,285,000 coming
due in the next 12 months. The Company has a net current
deficit of MYR125,556,000.
There was no dividend declared or recommended for the quarter
under review.
Summary of Key Financial Information
Individual Period Cumulative Period
Current Year Preceding Year Current Year Preceding Year
Quarter Corresponding to Date Corresponding
Quarter Period
31-03-2006 31-03-2005 31-03-2006 31-03-2005
MYR'000 MYR'000 MYR'000 MYR'000
* Revenue
7,527 9,037 7,527 9,037
* Profit/(loss) before tax
-4,323 -3,281 -4,323 -3,281
* Profit/(loss) after tax and minority interest
-4,323 -3,281 -4,323 -3,281
* Net profit/(loss) for the period
-12,796 -3,281 -12,796 -3,281
* Basic earnings/(loss) per shares (sen)
-25.47 -6.53 -25.47 -6.53
* Dividend per share (sen)
0.00 0.00 0.00 0.00
* As at end of As at Preceding
Current Quarter Financial Year End
1.3944 1.4509
The Company's First Quarter Report is available for free at:
http://bankrupt.com/misc/tcrap_techventurebhd053006.pdf
About Techventure Berhad
Techventure Berhad is based in Selangor, Malaysia. Apart from
being a corrugated cartons manufacturer, the Group is also
involved in the production of rubber insulation materials and
roto-molded plastic products such as septic tanks, playground
equipment, traffic barriers, and water tanks. It markets its
entire corrugated cartons and plastic products locally while
about 80% of the rubber insulation materials are exported. In
addition, the Group also manufactures ice cream.
In June 2003, the Company proposed a debt-restructuring program
to its financial institution lenders in order to avoid
liquidation. The proposed Scheme comprises composite schemes to
be carried out by eight companies within the Techven Group. The
Scheme, when implemented, would allow the beneficiaries to
participate in the future profitability of the Group. A
successful implementation of the Scheme would also ensure the
going concern of the Group and therefore preserve business and
employment opportunities for the Group's vendors and employees.
In May 2006, the Company was categorized under the Amended
Practice Note 17 category of the Bursa Malaysia Securities
Berhad's Listing Requirements. As an affected listed issuer,
the Company is required to regularize its financial condition or
risk being delisted from the Official List of Companies.
=====================
P H I L I P P I N E S
=====================
AGP INDUSTRIAL: Management Expresses Going Concern Doubt
--------------------------------------------------------
AGP Industrial Corporation submitted its financial report for
the quarter ended March 31, 2006, to the Philippine Stock
Exchange. In the report, the Company's management has expressed
doubts on AGP's ability to continue as a going concern due to
these factors:
* The company has not generated income and has instead
incurred significant losses since the year 2003 up to the
present;
* The Company is dependent on the continuing support of its
major stockholder, Trans-Philippines Investment Corp. The
Company has difficulty in meeting its current obligations
due to the lack of support from TPIC;
* The Company may not be able to generate income from its
investment in Atlantic, Gulf and Pacific Company of Manila,
Inc.;
* The ongoing negotiations between DMCI Holdings, AG&P and
the Company--which would have ironed out issues in a
stalled merger of AG&P and the Company--is currently
suspended, pending the resolution of a legal issue
concerning TPIC; and
* The Company's documents and control are in the hands of
directors who have taken over the affairs of the Company to
pave the way for the entry of new investors. The new
management is in the process of complying with all the
requirements of the said investors.
An opinion from an independent auditor is not available in the
financial report.
Insolvent
AGP Industrial's balance sheet as of September 30, 2005, showed
that the Company is insolvent, with a capital deficiency figure
of PHP295.68 million. It also has a recurring loss of PHP0.43
million, which highlights an expense account of the same amount
for professional fees and annual listing maintenance fees.
AGP Industrial Corporation
Balance Sheet Accounts
(in PHP millions)
as of September 30, 2005
Current Assets 0.34
Current Liabilities 272.80
Total Assets 2.12
Total Liabilities 297.80
Capital Deficiency 295.68
AGP's first quarter report is available for free at:
http://bankrupt.com/misc/AGP_17Q_Mar2006.pdf
About AGP Industrial
Incorporated in 1970, AGP Industrial Corporation is an
investment and management company organized for the purpose of
acquiring the controlling stock of the Atlantic Gulf & Pacific
Company of Manila, Inc., the leading construction firm in the
Philippines. It is currently the oldest and among the largest
diversified engineering and general construction firms in the
Philippines. The company's primary activity is to engage in
industrial and infrastructure projects both locally and abroad,
particularly in the Middle East. The company went on to
diversify its operations in 1987 when it ventured into the
manufacture and sale of foundation garments.
PHILCOMSAT HOLDINGS: Warring Groups Settle Dispute
--------------------------------------------------
The dispute between a group of minority shareholders and the
current management of Philcomsat Holdings Corp. has been
settled, with both groups seeking to hold its annual
stockholders' meeting as soon as possible, the Manila Times
reveals.
PHC minority shareholder Victor Africa said in a phone interview
with the paper that he had informed the Securities & Exchange
Commission that his group and the group under Philcomsat
president Manuel Nieto Jr. had settled their differences, and
had requested for an immediate schedule of its annual
stockholders' meeting. He told the Times that the parties had
"agreed in principle" to put aside their differences and to
write down their agreement in a document.
In the memorandum of understanding, both groups agreed that each
of the six stockholder-families would appoint a representative
to the Company's board of directors. They also agreed that Mr.
Nieto, one of the incorporators of Philcomsat Holdings' parent
firm, Philippine Overseas Telecommunications Corp., would be the
chairman emeritus of Philcomsat Holdings.
The parties also agreed to withdraw any pending cases between
them or the stockholders, and not to publish any press release
against any Company stockholder.
The Troubled Company Reporter - Asia Pacific reported on May 10,
2006, that the Company has not held any shareholders' meeting
since 2004, when Mr. Nieto and his nephew, Benito Araneta, were
elected to the board of directors. While Mr. Nieto is the
Company's president, Mr. Araneta is chairman of the board.
Mr. Africa had accused the Nieto group of using company funds
and corporate manipulations to retain their positions in
Philcomsat. A report by the Philippine Star states that Mr.
Nieto did not recognize the proxy presented by Mr. Africa at the
Company's 2004 meeting, and prevented him from voting 81%
Philcomsat shares in the election.
Mr. Nieto and Mr. Araneta reportedly refused to hold an annual
stockholders' meeting in May last year, prompting stockholders
to seek intervention by the Securities and Exchange Commission.
The SEC ordered Philcomsat to hold a stockholders' meeting on
April 17, 2006, the Manila Standard Today relates, to enable
shareholders to decide whether to let the Nieto group stay on to
manage the Company. The Nieto group countered with a proposal
to hold the meeting on April 18, 2006, which excluded the
election of the Board and extended their term as board members.
The SEC rejected the counterproposal and ordered the Company to
hold a shareholders' meeting on May 4, 2006. Mr. Nieto filed a
petition with the Court of Appeals to seek a temporary
restraining order to halt the May 4 Meeting. A later TCR-AP
report, on May 17, 2006, citing the Manila Times, stated that
the SEC had delayed its decision on when the Company should hold
its ASM, as it has been ordered to submit a report of the
Supreme Court decision on the Company's confiscated shares.
* * *
Philcomsat Holdings Corporation -- formerly Liberty Mines, Inc.,
-- was incorporated on May 10, 1956. During the 70s and early
80s when the country experienced a boom in geophysical and
drilling activities both offshore and onshore, Philcomsat
Holdings was one of the active participants in search of oil.
The Company has since withdrawn from oil exploration because
there was no commercial discovery of oil.
On January 10, 1997, the Company approved amendments to its
Articles of Incorporation, changing its primary purpose from
embarking in the discovery, exploitation, development and
exploration of mineral oils, petroleum in its natural state,
rock or carbon oils, natural oils and other volatile mineral
substances to a holding company.
PHIL. NATIONAL CONSTRUCTION: Reduced Costs Cut Net Loss by 21%
--------------------------------------------------------------
Philippine National Construction Corporation posted a net loss
for the three months ended March 31, 2006, equal to PHP508.26
million -- PHP136.73 million or 21.20% lower than the PHP644.99
million loss recorded in the corresponding period in 2005. The
Company says that the decrease is due to reduced operating and
maintenance costs specifically brought about by the turnover of
the North Luzon Tollway operation to the Manila North Tollway
Corporation on February 10, 2005.
The quarter's net loss was attributed to:
* the loss from operation totaling PHP87.53 million;
* the interests and financing charges accruing from the
Company's unpaid obligations with the Philippine National
Bank and Toll Regulatory Board amounting to PHP136.42
million; and
* the related amortization of the appraisal increase in North
Luzon Tollway assets, which accounts for the rest.
Management intends to write-off the sound value of these
assets due to the turnover of the North Luzon Tollway
operations to the MNTC, pending the approval of the
Commission on Audit's approval.
The Company's financial report for the first quarter reflects
these key figures:
Philippine National Construction Corporation
Financial Highlights
(in PHP millions)
Quarter Ending
03/31/2006 12/31/2005
---------- ----------
Current Assets 2,071.85 1,964.96
Current Liabilities 6,543.02 6,418.20
Total Assets 8,040.77 8,493.62
Total Liabilities 7,076.33 6,962.25
Stockholders' Equity 964.44 1,531.37
Quarter Ending
03/31/2006 03/31/2005
---------- ----------
Net Loss 508.26 644.99
Revenues 211.82 252.76
Cost and Expenses 262.21 283.28
PNCC's first quarter 2006 report is available for free at:
http://bankrupt.com/misc/PNC_17Q_Mar2006.pdf
Headquartered in Mandaluyong City, Philippine National
Construction Corporation -- http://www.pnccweb.net/-- is a
government-owned and controlled corporation whose principal
business activities include construction, real estate
development, and operation and maintenance of the North and
South Luzon Tollways. It is the government's main partner in
infrastructure development and construction projects. Also, it
is the sole operator and franchise-holder of the North and South
Luzon Tollways and has entered into several joint venture
agreements to upgrade and expand said expressways. Among the
construction projects that are in its pipeline are the Rizal
Avenue Bridge, the DENR Environment Center, the Central Business
Park Package 1 (SM Project), and SLT Rehab (Nichols-Alabang).
The Company's revenues are derived mostly from construction
projects and the collection of tollway fees.
Loan Default
Difficulties in collecting receivables from various government
agencies have made the PNCC unable to settle outstanding
obligations with both the Toll Regulatory Board and the
Philippine National Bank.
PNCC has paid TRB a total of PHP23 million representing initial
payment of PHP15 million and concession fee amortization of PHP8
million for the months of January and February 2006. The
formulation of payment plan on the cumulative balance, however,
has yet to be finalized.
The Company was not able to repay any current portion of its
long-term debt from the Philippine National Bank. Interests and
penalty charges accruing from both the TRB and PNB loans are
continuously recognized in the books.
The Company had fully paid its PHP11.2 million loan plus
interests in the amount of PHP0.864 million (inclusive of 10%
value added tax) with the National Development Company in
February 2006.
Material Lawsuits and Contingent Liabilities
The Company is involved in continuing litigations relating to
labor and civil cases.
The labor cases consist of those filed against the Company
involving mostly of illegal dismissal, back wages, and
separation pay. While the Labor Arbiter has ruled in favor of
the complainant for most of these cases, they are on appeal
before the National Labor Relation Commission.
On the other hand, the civil cases filed against the Company
consist of cases involving damages, collection of money, and
attorney's fees. These cases are still ongoing.
Both the management and its legal counsels believe that the
final resolutions of these claims will have a material effect on
the Company's financial position.
PNCC also has these contingent liabilities:
* Asiavest Merchant Bankers (M) Berhad -- A Writ of Execution
dated August 8, 2002 was issued by the RTC-Pasig City
ordering the implementation/execution of the judgment
rendered by the Supreme Court of the Philippines directing
the defendant PNCC to pay the amount adjudged by the High
Court of Malaysia in Kuala Lumpur dated September 13, 1985,
in the estimated amount of PHP254.16 million, inclusive of
interests. This resulted to the RTC's issuance of Notice
of Garnishment on September 24, 2002.
* Radstock Securities Limited -- The RTC-Mandaluyong City, in
its Decision dated December 10, 2002, ordered PNCC to
direct payment in the total amount of PHP13.15 billion,
inclusive of interests and attorney's fees. The RTC, in
its order dated January 23, 2001, also granted the
Complainant's prayer for the issuance of a Writ of
Preliminary Attachments against PNCC, resulting in the
garnishment of PNCC's bank accounts and attachment of
substantial portion of its real properties. The said case
is now pending with the Supreme Court which issued a
Temporary Restraining Order on March 14, 2003, directed
against any further proceedings in the lower courts.
* The Philippine Bureau of Treasury has written PNCC with
regard to the PHP2.53 billion advances as of December 31,
2005, inclusive of PHP1.30 billion interest, made by the
Bureau to settle PNCC's foreign obligations with creditors.
The loans are included in the Equity Adjustment under Rehab
Plan which are among the accounts transferred by the PNCC
to the National Government through the Asset Privatization
Trust, now Privatization Management Office, pursuant to
PNCC's rehabilitation plan of 1987 and are no longer
recorded as liabilities in the books.
A recent strategic plan designed by the PNCC Management
aims to address the Bureau's advances by way of conversion
of equity or long-term notes.
Tax Matters
The Company was assessed by the Philippine Bureau of Internal
Revenue of its deficiencies in various taxes. These tax
deficiencies include:
* PHP101.46 million income tax and documentary stamp tax
deficiency. PNCC is seeking the reversal of the BIR's
resolution for this matter;
* A PHP64 million business tax deficiency due the Belgian
Consortium of which the Company was a partner;
* Another PHP709 million income tax, value-added tax and
withholding tax deficiency. Management requested for a
clarification on the issue, but the Bureau has not
responded to date; and
* A PHP125.44 million account for unpaid withholding taxes on
compensation, creditable withholding taxes, withholding
value-added tax, and final income taxes on fringe benefits.
No provision for any liability has been made yet in the
financial statements.
PHILIPPINE NATIONAL BANK: Net Income Rises 26% to PHP190 Million
----------------------------------------------------------------
In a disclosure to the Philippine Stock Exchange, Philippine
National Bank disclosed a net income of PHP190 million for the
first quarter ended March 31, 2006, a 26% rise from its net
income of PHP151 million for the same period last year.
The increase in net income is attributed to a 23% increase in
non-interest income to PHP2.15 billion from foreign exchange and
securities gains, as well as prudent management of interest
expenses, improved investment portfolio and effective management
of its non-performing assets.
As of March 31, 2006, PNB's non-performing loan level dropped to
PHP28 billion from PHP37.4 billion last year. The Bank's total
resources were worth PHP224 billion, while its non-performing
loan coverage ratio reached almost 70%.
For 2006, Philippine National Bank aims to serve the corporate
market through its responsive products with distinct value
propositions, and plans to launch business solutions via cash
management products later in the coming months.
Philippine National Bank -- http://www.pnb.com.ph/-- is the
Philippine's first universal bank established on July 22, 1916.
The Bank's core business consists of lending and deposit-taking
activities from corporate, middle market and retail customers,
as well as various government units. Its other principal
activities include bill discounting, fund transfers, remittance
servicing, foreign exchange dealings, retail banking, trust
services, treasury operations and trade finance. Through its
subsidiaries, PNB engages in a number of diversified financial
and related businesses such as international merchant banking,
investment banking, life/non-life insurance, leasing, financing
of small-and-medium-sized industries, and financial advisory
services. It introduced innovations such as the bank on wheels,
computerized banking, ATM banking, mobile money changing and
domestic travelers' checks.
The Company has not declared any cash dividends on its common
equity for the fiscal years 2004 and 2005.
PNB is on the fourth year of its five-year rehabilitation plan,
which was approved by the Bangko Sentral ng Pilipinas. The
rehabilitation plan, which was signed in May 2002, stipulated
these financial components/conditions:
* PHP7.8 billion of the PHP25 billion assistance extended by
the BSP and Philippine Deposit Insurance Corp. would be
converted into equity;
* PNB will partially settle PHP10 billion of its obligation
by way of dacion en pago through the assignment of
government and government-related receivables; and
* PNB will maintain PHP6.1 billion as a 10-year loan at an
interest rate equivalent to the 91-day T-Bill rate plus 1
percentage point to be re-priced quarterly.
Subsequently, PNB secured the approval of the Securities and
Exchange Commission in July 2002 to undergo quasi-
reorganization, which reduced the par value of its shares from
PHP60 per share to PHP40 per share. This was done in order to
accommodate the PHP7.8 billion debt-to-equity conversion of the
PDIC through the issuance of 195,175,444 preferred shares.
The Parent Company's deficit before and after the quasi-
reorganization:
(in PHP thousands)
Deficit before the quasi-reorganization
(balance at December 31, 2001) 8,877,094
Reduction in par value during the year (7,561,409)
Application of translation adjustment to
deficit on quasi-reorganization (1,626,430)
Deficit after the quasi-reorganization (310,745)
Transfer to capital paid in excess of par value 310,745
In 2002, convertible preferred shares were issued to the PDIC as
payment for the PHP7.8 billion borrowed by the Parent Company
from the PDIC.
On July 30, 2002, the Parent Company and the PDIC signed an
agreement wherein the Parent Company transferred and conveyed by
way of "dacion en pago", or payment in kind, its rights and
interests to the loans of and certain debt securities issued by
various government agencies to the PDIC.
After the completion of these corporate actions and
rehabilitation, the balance of the Parent Company's outstanding
obligations to the PDIC was PHP6.1 billion. This balance was
restructured into a 10-year term loan, with interest payable at
91-day treasury bills (T-bills) rate plus 1.00%
In the third quarter of 2005, the Philippine Government and the
Lucio Tan Group completed the joint sale of their 67% stake in
PNB. The Lucio Tan Group exercised its right to match the share
bid offered by the Union Bank consortium and purchased the
shares owned by the government. The Lucio Tan Group thus gained
about 77% ownership of PNB.
VICTORIAS MILLING: Going Concern Depends on Rehabilitation
----------------------------------------------------------
Victorias Milling Corp. posted a consolidated net loss of
PHP236.4 million for the financial year ended August 31, 2005,
against a PHP305.85 million loss for financial year 2004, the
Troubled Company Reporter - Asia Pacific discovers from the
Company's financial statements submitted to the Philippine Stock
Exchange.
As of Aug. 31, 2005, Victorias Milling's consolidated balance
sheer showed strained liquidity, with PHP1.48 billion in current
assets available to pay PHP1.59 billion in current liabilities.
Its net capital deficiency stood at PHP1.8 billion.
The Company's financial report for the year ended August 31,
2005, reflects these key figures:
Victorias Milling Corporation
Consolidated Financial Highlights
(in PHP thousands)
As of As of
08/31/2005 08/31/2004
---------- ----------
Current Assets 1,484,705 1,509,836
Total Assets 7,185,947 7,301,764
Current Liabilities 1,589,685 1,266,888
Total Liabilities 8,996,867 8,876,224
Stockholders' Equity (1,800,523) (1,564,063)
For the Year Ending
08/31/2005 08/31/2004 08/31/2003
---------- ---------- ----------
Revenue 3,018,820 2,707,650 2,569,768
Net Income (Loss) (236,402) (305,854) 34,991
Continued losses had forced the Company to default on payments
of its maturing liabilities to creditors under its debt-
restructuring program. All its consolidated subsidiaries --
except Victorias Foods Corp. -- have suffered significant
losses, which have adversely affected their financial condition
and cash flow position.
About VMC
Headquartered in Victorias City, Bacolod, Victorias Milling
Company Inc. -- http://www.victoriasmilling.com/-- was
organized in 1919 and is engaged in the acquisition,
construction, maintenance and operation of sugar mills, as well
as other related business activities. Through the years, the
company has expanded its operations to include a foundry, a
machine shop, a fabrication shop, a food canning company, an
organic fertilizer plant and a piggery. However, the company
has incurred significant losses from operations, which adversely
affected its financial condition and cash flow position. On
July 4, 1997, the Company filed an application with the
Securities and Exchange Commission to suspend payments to
creditors. On July 8, 1997, the SEC issued a stay order
restraining all VMC creditors or any of its subsidiaries from
enforcing their claims, to allow the Company or any of its
subsidiaries to continue to their normal business operations.
The SEC also ordered the formation of a Management Committee to
oversee the Company's operations and rehabilitation.
VMC's has an accumulated deficit of PHP3.7 billion, PHP3.6
billion and PHP3.3 billion as of August 31, 2005, 2004, and
2003, respectively, and capital deficiency of PHP1.8 billion and
PHP1.6 billion as of August 31, 2005 and 2004, which adversely
affected its financial condition and cash flow position.
Consequently, VMC defaulted on payments of its maturing
liabilities to creditors which are currently under a
debt restructuring program. Except for Victorias Foods
Corporation, VMC's other consolidated subsidiaries namely,
Canetown Development Corporation, Victorias Quality Packaging
Company Inc., and Victorias Agricultural Land Corporation, have
also incurred significant losses from operations, and have
accumulated deficits and capital deficiencies, which have
adversely affected their financial condition and cash flow
position. Moreover, the other related companies namely, North
Negros Marketing Co., Inc., has declared bankruptcy, while
Caneland Sugar Corporation has ceased milling operations in
April 1997.
* * *
Rehabilitation Plan as of Sept. 25, 1998:
The salient features of the Company's original rehabilitation
plan are:
* Reduction in VMC's authorized capital stock from P2.7
billion consisting of 270 million shares of common stock at
PHP10 par value per share to PHP2.6 billion consisting of
2.6 billion shares of common stock at PHP1 par value per
share;
* Fresh capital infusion of around PHP567 million via a
public bidding. This was a failure as no bids were
submitted when the deadline for submission of bids had
expired;
* The stockholders will have no pre-emptive right to the
increase of 1.5 billion shares of common stock or any
shares to be issued to accommodate the conversion of any
interests earned on the convertible notes to common shares;
* VMC will honor its contractual obligations to the MJ
Ossorio Pension Foundation, Inc.;
* Implementation of a business strategy for operating
improvements, including manpower reduction, upgrading of
certain mills and other equipment, and divestment of non-
profitable business units;
* Sale of non-strategic assets and subsidiaries;
* Restructuring of loans from banks; and
* Debt-to-equity conversion.
On the Company's failure to raise PHP567 million capital via a
public bidding, the Manamgement Committee had on May 11, 2000,
submitted a revised rehabilitation plan, which was approved by
the SEC on Nov. 29, 2000. The basic features of the alternative
plan are:
* Increase in the authorized capital stock from PHP2.7
billion consisting of 270 million shares of common stock at
PHP10 par value per share to PHP4.6 billion consisting of
4.6 billion shares of common stock at PHP1 par value per
share. The new capital stock of PHP4.6 billion will be
allocated among the initial paid-in capital of PHP1.6
billion, conversion of convertible notes into common shares
of VMC in the amount of PHP2.4 billion, and contingent
Refined Sugar Invoice/Delivery Orders of PHP609,128,626;
* Conversion into equity of all unpaid interest and part of
the principal of the unsecured loan amounting to PHP1.1
billion;
* Conversion of a portion of unsecured loan into convertible
notes amounting to PHP2.4 billion;
* Restructuring of the secured and unsecured loans into a 15-
year loan, including a 3-year grace period as to principal,
at 10% annual interest; and
* Call for an acceptable joint venture partner to provide
additional cash of approximately PHP300 million, payable in
three years at 1.5% annual interest, and an option to
manage VMC during the three-year life of the loan.
All other terms and conditions of the original rehabilitation
that were approved by the SEC remain. The 15-year debt
restructuring agreement took effect on Sept. 1, 2003.
Victorias Milling's former management and three creditor banks
were opposed to the alternative rehabilitation plan, and filed
their opposition with the SEC, which subsequently denied the
appeal in an order dated Feb. 28, 2001. The Management
Committee then took over VMC's management on March 7, 2001. On
Aug. 23, 2001, the SEC affirmed its previous orders on Nov. 29,
2000 and Feb. 28, 2001, directing the Management Committee to
implement the alternative rehabilitation plan. The Court of
Appeals later affirmed the SEC Order on Feb. 11, 2002. VMC's
former management went to the Supreme Court on July 3, 2002, to
seek a review of the Court of Appeals decision; the resolution
is still pending.
On May 5, 2004, VMC filed a manifestation informing the Supreme
Court that its former management participated and voted their
shares in the election of the members of the Company's Board of
Directors for the year 2004 during the Annual Stockholders'
Meeting on April 30, 2004, in accordance with the rehabilitation
plan, which was assailed by VMC's former management. The
Supreme Court noted the manifestation on May 31, 2004.
VMC's continued losses and obstacles to its rehabilitation plan
raise substantial doubt about the Company's ability to continue
as a going concern for a reasonable period of time. In its
continuing efforts to achieve successful operations and
effective implementation of the rehabilitation plan, VMC has
focused its corporate objectives, goals, strategies, and
measures to attain sustainable financial stability through:
(a) synchronization of the refined sugar and raw sugar
operations;
(b) expansion of the boiling house to balance capacity with that
of the A and C mill;
(c) enhancement of mill efficiency;
(d) increase profitability by addressing cost efficiency (which
include, among others, trimming down of corporate overtime
expenses, minimizing contracted labor/services, and sourcing
out and maximizing use of cheaper fuel substitutes instead
of bunker fuel) and improving tolling fees; and
(e) ongoing program of rightsizing manpower.
Moreover, the Management Committee has undertaken these action
plans to improve VMC's financial position and its corporate
governance structure:
1. Recapitalization and quasi-reorganization to reduce the
deficit through reduction in capital stock and application of
appraisal increment;
2. Conversion of debt into equity;
3. Conversion of debt into convertible notes; and
4. Improvement of cash flows.
Debt Restructuring Agreement:
Under the alternative rehabilitation plan, VMC and its secured
and unsecured creditors executed a debt restructuring agreement
on April 29, 2002, which calls for, among others:
Conversion of PHP1.1 billion loans into equity: loans from
unsecured creditors of PHP1.1 billion were converted into
common stock of at a ratio of PHP1 of debt to PHP1 of common
stock on Oct. 9, 2002;
Conversion of PHP2.4 billion loans into convertible notes: the
unsecured creditors had on Sept. 1, 2003, proportionately
converted, on a mandatory basis, PHP2.4 billion of their
principal loans into convertible notes with 8% annual interest
cumulative and payable only in respect of those convertible
notes which have not been actually converted into common VMC
stock. As of Aug. 31, 2004, the 8% annual interest has been
accrued in respect of all outstanding convertible notes. The
convertible notes provide for a term of payment of 15 years
from the effectivity date of the DRA. These unsecured
creditors shall have second mortgage on VMC's fixed assets
(excluding identified non-core assets for disposal), in
addition to their second mortgage under the secondary Mortgage
Trust Indenture, pursuant to the terms and conditions of the
DRA. The secured creditors would still maintain their first
mortgage on VMC's fixed assets (exclud ing identified non-core
assets for disposal) under the MTI, pursuant to the terms and
conditions of the DRA;
Restructuring of the remaining balance of the loans: on
Sept. 1, 2003, the unsecured and secured creditors
restructured the remaining balance of their loans (after the
debt-to-equity conversion and the debt conversion to
convertible notes), with annual interest of 10% for Philippine
peso-denominated loans and 6% for the U.S. dollar-denominated
loans payable quarterly in arrears. The restructuring
provides for a term of payment of 15 years from the
restructuring date, with a 3-year grace period from the
restructuring date; and
Restructuring of the trade liabilities as follows:
-- 25% during the first year of rehabilitation;
-- 37.5% during the second year of rehabilitation; and
-- 37.5% during the third year of rehabilitation.
The DRA became effective on Sept. 1, 2003.
When the unsecured creditors converted PHP1.1 billion of their
loans into common VMC stock at a ratio of PHP1 of debt to PHP1
of common stock, creditor banks controlled a 69% stake in
Victorias Milling as of Oct. 9, 2002, while existing
stockholders held a 31% stake in the Company.
VMC entered into a PHP300-million loan agreement with strategic
investor Tanduay Holdings, Inc., which provides for, among
others:
* Annual interest of 1.5% payable semi-annually in arrears for a
five-year period;
* Balloon payment of PHP300 million at the end of the fifth
year, unless earlier converted at the end of the third
year from April 8, 2003 into common VMC shares at the
conversion rate of 1 common share for each PHP1 of the
principal based on the par value of PHP1 per share; and
* The availment of the conversion option is conditional and
subject to SEC approval. Upon availment of the conversion
option, VMC shall be discharged of its obligations for any
payment of the loan amount and any further interest.
Total interest expense due to THI amounted to PHP4.5 million as
at August 31, 2005 and 2004, respectively, while total annual
interest payments amounted to PHP4.5 million and PHP3.725
million at August 31, 2005 and 2004, respectively.
As of August 31, 2005, VMC has complied with the provisions of
the DRA.
=================
S I N G A P O R E
=================
D&B STEEL: Wind-up Process Commenced
------------------------------------
A winding-up order was served on D&B Steel Pte Limited on
May 19, 2006.
All creditors of the Company are requested to file their proofs
of debt with the Official Receiver who will be administering the
Company's liquidation.
As reported by the Troubled Company Reporter - Asia Pacific on
April 4, 2006, the wind-up petition was presented by Shi Ca
Company on March 20, 2006.
The Petition was initially herd before the High Court on
April 21, 2006.
Contact: The Official Receiver
Insolvency & Public Trustee's Office
45 Maxwell Road #05-11/#06-11
The URA Centre, East Wing
Singapore 069118
DIGILAND INTERNATIONAL: To Hold EGM on June 13
----------------------------------------------
Digiland International Limited will hold an extraordinary
general meeting on June 13, 2006, at 10:00 a.m. at The
Grassroots Club, 190 Ang Mo Kio Avenue 8, Private Room,
Singapore 568046.
During the meeting, members will be asked:
-- to approve the Company's renounceable rights issue; and
-- to authorize the Company's directors to allot and issue
the rights shares, the warrants and the new shares
arising from the Rights Issue.
About Digiland International Limited
Digiland International Limited -- http://www.digiland.com.sg/--
is a major distributor of IT products and provider of IT
services in the Asia-Pacific. The Digiland International group
of Companies was set up initially as the distribution arm of GES
International Limited to handle sales, marketing and
distribution of GES products, specifically the Datamini brand of
Personal Computer, designed and manufactured by GES
International Limited. It was renamed Digiland International
Private Ltd in 1998 and has since expanded geographically to
cover most countries in Asia-Pacific. The Company has been
reporting a string of losses in the recent years due to the
negative impact of the highly cyclical nature of the computer
industry. Sales were adversely affected by the shortening
product cycles of IT products and downward pressure on selling
prices as newer and more technologically advanced products enter
mass production. Aside from recurring losses, the Company's
subsidiaries have also been bombarded by wind-up petitions filed
by creditors.
MAE ENGINEERING: Books Lower Revenue in FY05
--------------------------------------------
MAE Engineering has released its unaudited financial results for
the year ended March 31, 2006.
The report revealed that the Group's revenue for the year ended
March 31, 2006, was SGD11.5 million compared to SGD22.2 million
for the previous year. The decrease was mainly due to lower
construction income, and a refocusing and gradual development of
business outside Singapore -- mainly in Malaysia.
The Group incurred a loss of SGD7 million for the year ended
March 31, 2006, an improvement of SGD1.6 million compared to the
loss of SGD8.6 million for the year ended March 31, 2005. The
reduction in loss for the current year was mainly due to the
reduction in other operating expenses of SGD5.7 million from
SGD10.3 million in the previous year.
There was no dividend declared or recommended for the current
financial period.
As of March 31, 2006, the Company's balance sheet showed SGD
7,404,000 in total assets and SGD27,257,000 in total
liabilities, resulting in a SGD19,853,000 stockholders' equity
deficit.
The Company's March 31 balance sheet also revealed strained
liquidity with SGD6,346,000 in total current assets available to
pay SGD27,200,000 in total current liabilities coming due within
the next 12 months.
A full-text copy of the Company's financial report is available
for free at:
http://bankrupt.com/misc/tcrap_maeengineering053006.pdf
About MAE Engineering Limited
Headquartered in Singapore, MAE Engineering Limited is engaged
in the provision of integrated electrical and mechanical
engineering services including designing, planning and
procurement. These services are categorized into electrical
installations, mechanical installations, electrical power supply
installations, instrumentation and building automation as well
as maintaining electrical and mechanical systems. The Group
also offers consulting and specialist services to oceanariums
and aquariums. The Group has disposed off its prawn and fish
farming as well as edutainment businesses, after suffering
accumulated losses of SGD48 million as of September 30, 2005.
The Company also suffered a liquidity crunch since September 30,
2005, when its total current liabilities of SGD23,695,000
exceeded its total current assets of SGD5,582,000.
MEDIASTREAM LIMITED: Creditors' First Meeting Set June 20
---------------------------------------------------------
The first meeting of MediaStream Limited's creditors will be
held at 50 Raffles Place, #16-06 Singapore Land Tower, in
Singapore, on June 20, 2006, at 10:00 a.m.
During the meeting, creditors will be asked to consider and, if
thought fit, approve the management proposals presented by
Judicial Manager Timothy James Reid of Ferrier Hodgson.
Creditors are asked to establish proof by June 19, 2006, in
order to vote at the said meeting.
About MediaStream Limited
With operations in Singapore, Malaysia and the Philippines,
MediaStream Limited licenses, produces and distributes music
records in cassette, compact disc and video format. The Company
also collects recording copyright royalties, provides audio and
video recording and editing services and facilities, and
manufactures, sells and rents portable cabins, prefabricated
structures and temporary buildings. The Company was placed
under judicial management since April 2005.
MEDIASTREAM LIMITED: Seeks Extension on Acquisition Deal
--------------------------------------------------------
MediaStream Limited had, on August 23, 2005, entered into an
acquisition agreement with Wong Juat Joing, Koh Chin Hin, Ang
Lay Leong, Yom Yoon Chong, Wong Wai Kin, Wong Wee Meng and ATWK
Pte Limited to acquire the entire issued and paid-up share
capital of Opus IT Services Private Limited, the Troubled
Company Reporter - Asia Pacific recounts.
In an update, Judicial Manager Tim Reid disclosed that on May
19, 2006, the Company entered into a second supplemental
agreement with the Vendors to extends the cut-off date for the
proposed acquisition for another three months from March 19.
About MediaStream Limited
With operations in Singapore, Malaysia and the Philippines,
MediaStream Limited licenses, produces and distributes music
records in cassette, compact disc and video format. The Company
also collects recording copyright royalties, provides audio and
video recording and editing services and facilities, and
manufactures, sells and rents portable cabins, prefabricated
structures and temporary buildings. The Company was placed
under judicial management since April 2005.
QUEST UNITED: Creditors Must Prove Debts by June 9
--------------------------------------------------
Assistant Official Receiver Kamala Ponnampalam will be receiving
proofs of claim from creditors of Quest United Limited until
June 9, 2006.
Failure to comply with the requirement will exclude a creditor
from sharing in the Company's dividend distribution.
Contact: The Official Receiver
The URA Centre (East Wing)
45 Maxwell Road #06-11
Singapore 069118.
TOP ONE MOTOR: Supreme Court Declares Bankruptcy
------------------------------------------------
Top One Motor Trading was, on May 5, 2006, declared bankrupt by
the Supreme Court of Singapore.
Contact: Audrey Lim
Senior Assistant Registrar
Supreme Court,
Singapore
===============
T H A I L A N D
===============
PICNIC CORP: SET Lift SP Sign But Warns Investors
-------------------------------------------------
The Stock Exchange of Thailand, on May 30,2006, lifted the
suspension sign it placed on Picnic Corporation Plc's stock
earlier this month, but will attach a notice pending sign to the
stock warning investors to be cautious when evaluating the
Company's first quarter financial statement, the Nation reports.
According to the Nation, SET urged investors to take care
because Picnic's auditor was unable to issue a disclaimer of
opinion on the Company's first quarter financial statement.
This means that, as a result, the financial statement might not
reflect the Company's true financial status and operations, the
SET explained.
On May 16, 2006, SET put a suspension sign on the stock of the
Company because it failed to file its first quarter financial
statement on time.
Picnic submitted the delayed financial statement to the SET on
May 29, 2006, showing a net loss of THB381.8 million in the
three months ended March 31, 2006, the Bangkok Post relates.
This was from a net profit of THB71.3 million in the
corresponding period last year.
The Post adds that the Company attributed the loss to higher
interest expenses, losses from the discontinuation of
operations, a charge of THB57.99 million for bad debt, as well
as higher sales and administration expenses.
The SET said that because Picnic's auditor was unable to
summarize its review of the Company's financial statements, the
numbers, which represent the Company's financial status and
operating results, could fail to adequately or properly reflect
the actual position of the company.
"Due to these discrepancies, the Securities and Exchange
Commission is considering requiring the company to amend its
financial statements on the issues raised by its auditor," the
SET said.
Meanwhile, Picnic had appointed Prasit Petkhart as its new
managing director following the resignation of Nattachai
Aramrasamewanich. The board also appointed Numpon Ngurnnumchoke
as a director and new chairman of the company's audit committee
after the resignation of Suwalee Sangkanchanavanich, the Post
adds.
* * *
Headquartered in Bangkok, Thailand, Picnic Corporation Public
Company Limited -- http://www.picniccorp.com/-- is engaged in
liquefied petroleum gas trading business under "Picnic Gas"
trademark transferred from Union Gas and Chemicals Company Ltd.
Picnic's financial troubles began in the middle of last year
when its two major shareholders and former executives, Supaporn
and Theeratchanon Lapvisuthisin, were charged with accounting
fraud and dishonest management. Troubles add up as it it took
over B Grimm Engineering Plc, a company that had languished in
the Stock Exchange of Thailand's rehabilitation sector since the
financial crisis.
*********
S U B S C R I P T I O N I N F O R M A T I O N
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Copyright 2006. All rights reserved. ISSN: 1520-9482.
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