/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/060613.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 Tuesday, June 13, 2006, Vol. 9, No. 116 Headlines A U S T R A L I A & N E W Z E A L A N D CIVONE INVESTMENTS: Court to CIR's Liquidation Bid on June 29 DAVID POLSON CONSULTING: Liquidation Process Commenced FIRST DISTRIBUTORS: CIR Files Liquidation Petition GMJ PLUMBING: Faces Liquidation Proceedings GR PLANT: Court to Hear Liquidation Petition on June 29 HAWKE CONSTRUCTION: Shareholders Appoint Managh as Liquidator LIVESTOCK SOLUTIONS: Creditors' Proofs of Claim Due on June 29 MONACO MOTOR: Court to Hear Liquidation Bid on July 13 OMNIPORT NAPIER: Shareholders Appoint Liquidator C H I N A & H O N G K O N G BANK OF COMMUNICATIONS: Uncovers CNY200-Million Fraud Case BLISS HERO: Faces Winding-up Proceedings EXPRESSWAY INTERNATIONAL: Court to Hear Wind-up Petition July 19 FIBERMARK LIMITED: Creditors' Proofs of Claim Due on July 7 LEADKEEN INDUSTRIAL: Creditors, Contributories to Met on June 29 LEATHER'S BEST: Lui and Purser Cease to Act as Liquidators LUEN YICK WATER: Briscoe Replaces Kennedy as Joint Liquidator MOULIN GLOBAL: Liquidators to Meet with Creditors MOULIN TRADING: Creditors & Contributors Meetings Set on June 29 SOJITZ TRADE: Creditors Must Prove Debts by July 7 SUNTEC FOOTWEAR: Wind-up Petition Hearing Set on July 26 UNITED BUILDING: Court to Hear Wind-up Bid on August 9 YUEN WA ENGINEERING: First Meetings Slated for June 21 YIU FAI WAREHOUSING: Members and Creditors Meetings Set June 20 I N D I A BRITISH INDIA: BMS President Calls for Revival UPTRON INDIA: Gov't Need Not Pay Workers, Supreme Court Says J A P A N ALL NIPPON: Fitch Says Firm Has Strong Lead Over Rival LIVEDOOR CO: Shareholders Support Fund Adviser's Concerns M A L A Y S I A CHG INDUSTRIES: Securities Commission Rejects Appeal CONSOLIDATED FARMS: Unit Receives Writ of Summon from Lee Foong CONSOLIDATED FARMS: Defaults on Debt Payments JIN LIN: Creditors to Meet on June 16 KAMDAR GROUP: To Hold Fourth Annual General Meeting on June 27 KIG GLASS: Updates on Group's Default Status KIG GLASS: AmMerchant Bank Resigns as Adviser KUMPULAN BELTON: Formulates Financial Regularization Plan MBF CORPORATION: Fourth AGM Slated for June 28 METROPLEX BERHAD: In Talks with Lenders on Restructuring TRADEWINDS CORPORATION: 33rd Annual General Meeting Set June 29 P H I L I P P I N E S BENPRES HOLDINGS: Sells 18 Million Shares in Unit to Raise Funds LAFAYETTE MINING: DENR Forms New Team to Decide on Test Run * Banks' Bad Loan Ratio Rises to 8.24% in April S I N G A P O R E DE-DECOR SINGAPORE: Faces Wind-up Proceedings DIGILAND INTERNATIONAL: Details Purpose of Rights Issue EXPANDSHIP HOLDINGS: Court Issues Wind-Up Order GN PACKAGING: Creditors' Proofs of Claim Due on July 8 PORT WELD: Court Hears Wind-up Petition T H A I L A N D THAI GERMAN: Releases Audited Yearly Financial Statement * BOND PRICING: For the Week 12 June to 16 June 2006 - - - - - - - - ============================================ A U S T R A L I A & N E W Z E A L A N D ============================================ CIVONE INVESTMENTS: Court to CIR's Liquidation Bid on June 29 ------------------------------------------------------------- The Commissioner of Inland Revenue on May 8, 2006, filed before the High Court of Auckland a petition to liquidate Civone Investments Limited. The Court will hear the petition on June 29, 2006, at 10:45 a.m. Contact: Justine Berryman Technical and Legal Support Group Auckland North Service Centre Inland Revenue Department 5-7 Byron Avenue, Takapuna Auckland, New Zealand Telephone: (09) 984 1538 Facsimile: (09) 984 3116 DAVID POLSON CONSULTING: Liquidation Process Commenced ------------------------------------------------------ The liquidation of David Polson Consulting Ltd commenced on June 2, 2006. Subsequently, Henry Martin van Dyk and Stephen Alan Dunbar were appointed as liquidators. The Liquidators require the Company's creditors to submit their proofs of claim by July 6, 2006, in order to share in any distribution the Company will make. Contact: Henry Martin van Dyk c/o Nicola Hassan Polson Higgs P.O. Box 5346, Dunedin New Zealand Telephone: (03) 477 9923 FIRST DISTRIBUTORS: CIR Files Liquidation Petition -------------------------------------------------- The High Court of Auckland on May 8, 2006, received an application to liquidate First Distributors Limited from the Commissioner of Inland Revenue. Hearing of the application will be on July 6, 2006, at 10:45 in the morning. Contact: David Weaver Technical and Legal Support Group Auckland North Service Centre Inland Revenue Department 5-7 Byron Avenue, Takapuna Auckland, New Zealand Telephone: (09) 984 1595 Facsimile: (09) 984 3116 GMJ PLUMBING: Faces Liquidation Proceedings ------------------------------------------- An application to put GMJ Plumbing Ltd into liquidation will be heard before the High Court of Auckland on June 15, 2006, at 10:45 a.m. The High Court received the application from Kajes Petroleum Ltd -- trading as Rockgas Waiheke -- on April 6, 2006. Contact: Malcolm David Whitlock Whitlock & Co. C/O Level 2, Baycorp Advantage House 15 Hopetoun Street Auckland, New Zealand GR PLANT: Court to Hear Liquidation Petition on June 29 ------------------------------------------------------- An application to put GR Plant Hire Ltd into liquidation will be heard before the High Court of Auckland on June 29, 2006, at 10:00 a.m. The High Court received the application from the Commissioner of Inland Revenue on April 28, 2006. Contact: David Weaver Technical and Legal Support Group Auckland North Service Centre Inland Revenue Department 5-7 Byron Avenue, Takapuna Auckland, New Zealand Telephone: (09) 984 1595 Facsimile: (09) 984 3116 HAWKE CONSTRUCTION: Shareholders Appoint Managh as Liquidator ------------------------------------------------------------- The shareholders of Hawke Construction Ltd appointed John Francis Managh as liquidator on June 1, 2006. Contact: J.F. Managh Gladstone Chambers 50 Tenneyson Street Napier, New Zealand Telephone: (06) 835 6280 e-mail: jmanagh@xtra.co.nz LIVESTOCK SOLUTIONS: Creditors' Proofs of Claim Due on June 29 -------------------------------------------------------------- Joint liquidators Henry David Levin and David Stuart Vance require the creditors of Livestock Solutions Ltd to submit their proofs of claim by June 29, 2006. Failure to comply with the requirement will exclude a creditor from sharing in any distribution the Company will make. Contact: Henry David Levin C/O Lisa Lee at McCallum Petterson Level 11, Forsyth Barr Tower 55-65 Shortland Street Auckland, New Zealand Telephone: (09) 336 0000 Facsimile: (09) 336 0010 MONACO MOTOR: Court to Hear Liquidation Bid on July 13 ------------------------------------------------------ Cheng Xi Gu, on May 5, 2006, filed before the High Court of Auckland a petition to liquidate Monaco Motor Company Ltd. The Court will hear the application on July 13, 2006, at 10:45 in the morning. Contact: S.J. Ropati Level One, 105 Queen Street P.O. Box 37-396, Parnell Auckland, New Zealand Telephone: (09) 377 1530 Facsimile: (09) 377 1533 OMNIPORT NAPIER: Shareholders Appoint Liquidator ------------------------------------------------ Shareholders of Omniport Napier Ltd on June 2, 2006, resolved to liquidate the Company and appoint Douglas Kim Fisher as liquidator. Subsequently, the Liquidator fixed June 29, 2006, as the last day for creditors to submit their proofs of claim. Contact: D.K. Fisher Private Bag MBD M215 Auckland, New Zealand Telephone: (09) 630 0491 Facsimile: (09) 638 6283 ================================ C H I N A & H O N G K O N G ================================ BANK OF COMMUNICATIONS: Uncovers CNY200-Million Fraud Case ---------------------------------------------------------- Bank of Communications on June 10, 2006, discovered a case of financial fraud involving about CNY200 million or US$25 million in one of its branches in a recent self-examination, the Standard reports. In a news release posted on the bank's website on Saturday, the bank said that the fraud was detected at a branch in Shenyang, capital of Liaoning Province, during a recent exercise aimed at addressing suspected fraud cases and upgrading the customer information management system, the China Daily relates. The Bank of Communication did not specify how much it could lose, The Standard says. Learning from the experience, the bank said that it would try to enforce internal control to avoid similar cases in the future. According to China Daily, an emergency mechanism and other measures have been adopted by the bank to reduce losses, it also promised to enhance internal controls and improve its risk monitoring and control abilities. Meanwhile, China Daily adds that the head of Bank of Communication's Shenyang branch -- Dai Jinggui -- was removed from his post two weeks ago, possibly after getting involved in illegal operations. New branch director Tan Shuguang, however, refused to link his predecessor's removal to the fraud, claiming it was a regular personnel transfer. The paper quotes an unidentified insider saying that quite a few of the branch's officials are involved in the fraud. * * * Founded in 1908, Bank of Communications is one of four oldest banks in China and one of the early note-issuing banks of China. BOCOM was also China's first state-owned shareholding commercial bank. With a 20% stake owned by HSBC, BOCOM was listed in Hong Kong in June 2005, becoming the first major commercial bank from the Chinese mainland to be listed overseas. Earlier, the Bank faced a fraud case involving CNY220 million at its Jinzhou branch in Liaoning. According to the National Audit Office, several staff members at the branch had forged documents to deceive the lender's Shanghai headquarter about the cancellation of loans made out to 175 companies. BLISS HERO: Faces Winding-up Proceedings ---------------------------------------- An application to wind up Bliss Hero Development Ltd will be heard before the High Court of Hong Kong on July 26, 2006, at 9:30 a.m. Ho Kai Yung filed the application before the High Court on May 25, 2006. Contact: Paul W. Tse Solicitors for the Petitioner Rooms 1308-9, 13/F Kwong Wah Plaza 11 Tai Tong Road, Yuen Long New Territories, Hong Kong EXPRESSWAY INTERNATIONAL: Court to Hear Wind-up Petition July 19 ---------------------------------------------------------------- The High Court of Hong Kong will on July 19, 2006, hear a winding-up petition filed against Expressway International Logistics (H.K.) Ltd. Geologistics Ltd filed the application before the Court on May 18, 2006. Contact: C.P. Cheung & Co Solicitors for the Petitioner Room 2301, 23/F., Golden Centre 188 Des Voeux Road Central Hong Kong FIBERMARK LIMITED: Creditors' Proofs of Claim Due on July 7 ----------------------------------------------------------- Liquidators Thomas Andrew Corkhill and Iain Ferguson Bruce require the creditors of Fibermark (H.K.) Ltd to submit their proofs of claim by July 7, 2006. Failure to comply with the requirement will exclude a creditor from sharing in any distribution the Company will make. Contact: Thomas Andrew Corkhill Iain Ferguson Bruce Liquidators 8th Floor, Gloucester Tower The Landmark 11 Pedder Street, Central Hong Kong LEADKEEN INDUSTRIAL: Creditors, Contributories to Met on June 29 ---------------------------------------------------------------- Creditors and contributories of Leadkeen Industrial Ltd will convene for their first meetings on June 29, 2006, at 10:00 a.m. and 11:00 a.m., respectively. The meeting will be held at the Auditorium of Duke of Windsor Social Service Building, 15 Hennessy Road, Wanchai, Hong Kong. LEATHER'S BEST: Lui and Purser Cease to Act as Liquidators ---------------------------------------------------------- Kennic Lai Hang Lui and Rupert James Purser on May 16, 2006, ceased to act as liquidators for Leather's Best international (H.K.) Ltd. LUEN YICK WATER: Briscoe Replaces Kennedy as Joint Liquidator ------------------------------------------------------------- The High Court of Hong Kong on March 27, 2006, ordered the appointment of Stephen Briscoe in place of David John Kennedy as liquidator to act jointly and severally for Luen Yick Water Limited. Contact: Stephen Briscoe 5/F., Allied Kajima Building 138 Gloucester Road, Wanchai Hong Kong MOULIN GLOBAL: Liquidators to Meet with Creditors ------------------------------------------------- Joint and Several Liquidators Roderick John Sutton and Desmond Chung Seng Chiong are scheduled to meet with the creditors of Moulin Global Eyecare Holdings Ltd on June 29, 2006, at 11:30 a.m. A meeting with the Company's contributories will follow at 12:30 p.m. The meetings will be held at the Auditorium of Duke of Windsor Social Service Building, 15 Hennessy Road, Wanchai, Hong Kong. MOULIN TRADING: Creditors & Contributors Meetings Set on June 29 ---------------------------------------------------------------- Creditors of Moulin Global Eyecare Trading Limited will meet with Joint and Several Liquidators Roderick John Sutton and Desmond Chung Seng Chiong on June 29, 2006, at 2:30 p.m. Subsequently, the Liquidators will meet the Company's contributories at 3:30 p.m. The meetings will be held at the Auditorium of Duke of Windsor Social Service Building, 15 Hennessy Road, Wanchai, Hong Kong. SOJITZ TRADE: Creditors Must Prove Debts by July 7 -------------------------------------------------- Liquidators Natalia K. M. Seng and Susan Lo require the creditors of Sojitz Trade and Investment Services (H.K.) Company Ltd to submit their proofs of claim by June 30, 2006. Failure to comply with the requirement will exclude a creditor from sharing in any distribution the Company will make. Contact: Natalia K.M. Seng Joint and Several Liquidators Level 28, Three Pacific Place 1 Queen's Road East Hong Kong SUNTEC FOOTWEAR: Wind-up Petition Hearing Set on July 26 -------------------------------------------------------- An application to wind up Suntec Footwear Corporation Ltd will be heard before the High Court of Hong Kong on July 26, 2006, at 9:30 a.m. The Bank of Ayudhya Public Company filed the application before the High Court on May 26, 2006. Contact: Lau, Wong & Chan Solicitors for the Petitioner 18th Floor, World Trust Tower 50 Stanley Street Central, Hong Kong UNITED BUILDING: Court to Hear Wind-up Bid on August 9 ------------------------------------------------------ An application to wind up United Building Material (H.K.) Ltd will be heard before the High Court of Hong Kong on August 9, 2006, at 9:30 a.m. E Man Construction Company Ltd filed the application before the High Court on May 25, 2006. Contact: Knight & Ho Solicitors for the Petitioner Rooms 2207-2210, 22/F World Wide House 19 Des Voeux Road Central Hong Kong YUEN WA ENGINEERING: First Meetings Slated for June 21 ------------------------------------------------------ Creditors and contributories of Yuen Wa Engineering Company Ltd will convene for their first meetings on June 21, 2006, at 3:00 p.m. and 5:00 p.m., respectively. The meetings will be held at 18/F., Henley Building, 5 Queen's Road Central, Hong Kong. YIU FAI WAREHOUSING: Members and Creditors Meetings Set June 20 --------------------------------------------------------------- Members and creditors of Yiu Fai Warehousing Ltd will hold final meetings on June 20, 2006, at 2:00 p.m. and 2:30 p.m. respectively at the liquidator's office. During the meeting, the Company's members and creditors will decide whether to accept the resignation of Fan Wai Kuen as joint and several liquidator and subsequently appoint Stephen Briscoe as replacement. Contact: Cosimo Borrelli 5/F., Allied Kajima Building 138 Gloucester Road, Wanchai Hong Kong ========= I N D I A ========= BRITISH INDIA: BMS President Calls for Revival ----------------------------------------------- The national president of trade union Bharatiya Mazdoor Sangh is urging the Indian Government to take suitable steps to revive state textile firm British India Corporation Limited, Hindustan Times relates. Girish Awasthi told The Times that British India Corp is "passing through a bad phase" due to mismanagement and absence of proper government policy to upgrade sick textile mills, The Times says. Mr. Awasthi was concerned over a recent show cause notice issued by the Board of Industrial and Financial Reconstruction to British India Corp. He added that laxity of the Company's management brought about the situation. Mr. Awasthi suggested that the BMS take up the issue with the Government to ensure that British India Corp's mills were provided the best management and other support for revival. According to The Times, BMS leaders are set to meet soon to discuss the issue. About British India Corporation The British India Corporation Ltd was taken over by the Government of India in 1981 through the acquisition of all private shares. The Company has two woolen mills -- Cawnpore Woollen Mills Branch (Lalimli) at Kanpur in Uttar Pradesh and New Egerton Woollen Mills Branch at Dhariwal in Punjab -- under its direct control. It also has two cotton subsidiaries, Elgin Mills Co. Ltd. and Cawnpore Textiles Ltd., at Kanpur in Uttar Pradesh. In 1993, the Company was referred to the Board for Industrial and Financial Reconstruction, which declared it a Sick Industrial Company. The BIFR passed orders on October 31, 1994, recommending the winding up of the Company. Against this order of BIFR, the Company filed an appeal before the Appellate Authority of Industrial and Financial Reconstruction on Dec. 26, 1996. The AAIFR also dismissed BIC's appeal on May 9, 1997, as the AAIFR felt that no rehabilitation scheme was feasible for the Company. In 1999, BIC's two cotton subsidiaries were wound up by the High Court. The Company has been implementing a INR214 crore rehabilitation scheme since early 2003 as per BIFR orders. UPTRON INDIA: Gov't Need Not Pay Workers, Supreme Court Says ------------------------------------------------------------ The Supreme Court has stated that the state government has no legal obligation to pay workers' wages of a sick industrial company, even if the firm is state-owned, Business Standard reports. These observations were made in the case between the State of Uttar Pradesh and Uptron Employees' Union where the Board for Industrial and Financial Reconstruction directed the Government to pay wages to employees of the defunct Uptron India Limited. The Government appealed to the Supreme Court and said that the BIFR had no power to pass the order, The Standard relates. The Supreme Court set aside the order and observed it was "most unfortunate" that the BIFR and the Allahabad High Court did not take up the workers' case for 12 years as the appeal was pending before it. The Supreme Court explained that the rights of the workers are governed by the Companies Act. Furthermore, the Supreme Court asked the BIFR and the Allahabad High Court to dispose of the case preferably within six months. Uptron India Limited was the Uttar Pradesh state government's venture in the electronic industry. The firm manufactured black and white, and color television sets. The Company was referred to the BIFR on Dec. 5, 1998. ========= J A P A N ========= ALL NIPPON: Fitch Says Firm Has Strong Lead Over Rival ------------------------------------------------------ Fitch Ratings said on June 9, 2006, that the credit quality gap between Japan's top two airlines continues to widen with All Nippon Airways Co. Limited -- rated 'BB+'/Stable -- benefiting from market improvements while its rival, Japan Airlines Corporation -- rated 'BB-'/Stable -- continues to be grounded by internal woes. The agency adds that going forward, the speed of credit quality improvements and the potential for rating upgrades would depend largely on the airlines' ability to improve efficiency of operations to offset any further increase in oil prices Fitch Tokyo Corporate team director Satoru Aoyama said, "Fuel prices have been rising since April 2006, leading to uncertainty in the airlines' FYE07 profits. However, a superior demand- supply balance and improved operational efficiency are likely to favor All Nippon, and if the shift of passengers to All Nippon from JAL continues, ANA may experience greater revenues gains. These would help alleviate increased fuel costs, while JAL would benefit little from improved market conditions." The agency also explained that the two carriers' strategic and operational differences -- fuel hedging, flight networks, fleet type and operational flexibility -- and the shift of passengers to ANA from JAL led to a greater gap in the two carriers' FYE06 financial performance. All Nippon posted an FYE06 operating profit of JPY88.8 billion, against an estimated JPY74-billion profit by management and a JPY77.7-billion profit for 2005, whereas JAL reported an operating loss of JPY26.8 billion, compared to a profit of JPY3.2 billion for 2005 at FYE05 -- JPY56.1 billion after adjustments caused by change in the pension scheme in FYE05. According to Fitch, although the gap was mainly due to fuel costs, the impact of such cost increases affected the two companies differently, reflecting disparate fuel hedging and operational strategies. All Nippon' s conservative full fuel cost hedging mitigated the fuel cost rises, and its concentration in short-haul flights and its narrow-body and medium-size aircrafts have led to greater fuel efficiency, resulting in the carrier's lower proportion of fuel costs to revenues compared with JAL -- 21.8%. JAL's historically low hedging level -- around 30%-40% -- and its extensive international flight networks with greater use of wide-body aircraft exacerbated the negative effect of the high fuel costs on its already thin profit margins. Adding to the gap in financial was the FYE06 revenue growth. All Nippon's air transportation revenues grew by 6.2% in FYE06, whereas JAL's revenue growth reached 1.9%. The improvement in Japan's air passenger market supported revenue growth in both companies' air transportation businesses, and the recovery of the Japanese economy, as well as solid corporate results and stable private spending supported domestic passenger volumes and higher airfares. Although several anti-Japan demonstrations in China in 2005 reduced tourist passenger volumes in the China routes, the overall international passenger business is growing steadily due to the absence of major external shocks and the general recovery in both business and private travel demands, despite the introduction of fuel surcharges. While both companies reported solid revenue growth in FYE06, a series of safety incidents and internal warring in JAL, which was widely- reported in the media, resulted in its customers choosing to fly with All Nippon. Thus, JAL's domestic passenger volumes recorded a 1.9% decline in FYE06 compared to ANA's 2.2% increase. In the international passenger market, while the China factor has negatively affected both companies, JAL's efforts to cut part of international operations resulted in lower passenger volumes and supply of seats. JAL's international passenger volumes declined by 3.7%, while ANA's increased by 0.4% in FYE06. As the Japanese economy continues to improve, Fitch views that air passenger demand might remain stable in the domestic routes and continue to grow in international routes, despite higher airfares. Fare increases and fuel surcharges are also ongoing, which should increase the two airlines' revenues at FYE07. However, their earnings are under downward pressure due to higher fuel costs while the fuel hedging is unlikely to provide a meaningful protection, as fuel prices remain persistently high. Thus, the speed of credit quality improvement and a possible rating upgrade will be determined by the success of each company in improving the efficiency of their operations, which would mitigate any risk from any adverse events including a further fuel price rise. Headquartered in Tokyo, All Nippon Airways Co., Limited -- http://www.ana.co.jp/eng/-- is Japan's second-largest airline company in terms of revenue. The Company, which was founded in 1952, provides these services: 1. Scheduled air transportation business; 2. Nonscheduled air transportation business and business utilizing aircraft; 3. Business of buying, selling, leasing and maintenance of aircraft and aircraft parts; and 4. Aircraft transportation ground support business, including passenger boarding procedures and loading of hand baggage. All Nippon's core business is domestic passenger transportation, which accounts for 43% of its total revenues before inter- segment adjustments. LIVEDOOR CO: Shareholders Support Fund Adviser's Concerns --------------------------------------------------------- Scion Capital, LLC, a managing member and investment adviser to private investment funds that own a combined 6.75% stake in Japanese Internet firm Livedoor Co. Ltd said that some Livedoor shareholders called to express their support for the firm's concerns about Livedoor's proposals at its upcoming stockholders' meeting on June 14, 2006, PR Newswire reveals. The Troubled Company Reporter - Asia Pacific reported on June 8, 2006, that Scion Capital had rejected these proposals that Livedoor plans to present for shareholder approval: -- the amendment of the Company's Articles of Incorporation; and -- the nomination of individuals who hold clear conflicts of interest to the Company's Board of Directors. Scion plans to vote against these proposals and encouraged Company shareholders to follow suit, as the decisions to be made at the upcoming meeting will greatly affect the Company. The first agendum seeks to extend the term of new members of the Board of Directors from less than one year to less than two years, rendering them safe from a meaningful review by shareholders for the two-year period. The second agendum seeks to allow two officials from Usen Corp., which is in talks with Livedoor for a possible business tie-up and takeover, to join the Company's Board of Directors, thus, a conflict of interest. According to PR Newswire, Livedoor's management commented that non-Japanese shareholders had largely agreed with the proposals subject to approval at the upcoming meeting, which seemed to Scion Capital that only 6.75% of Livedoor's shareholders, incidentally the stake held by the firm, rejected the proposals, whereas it is aware that a higher percentage disagrees with such proposals. Scion Capital is concerned that due to the change in the Company's stockholders since the record date of March 31, 2006, the vote taken at the June 14, 2006 meeting might not reflect the true wishes of current Livedoor shareholders. If the results of the meeting would not benefit shareholders, Scion Capital would look into seeking a second extraordinary general meeting to propose an agenda supported by a majority of Livedoor shareholders. * * * Headquartered in Tokyo, Japan, Livedoor Company, Limited -- http://corp.livedoor.com/en/-- is involved in out portal site "livedoor," financial business, corporate web solutions, data center and IP telephony business. The Troubled Company Reporter - Asia Pacific reported that in January 2006, Livedoor ex-president and founder Takafumi Horie, and other Livedoor directors were found to have conspired to cover up the Company's JPY310 million pre-tax loss for the business year ended September 2004, by doctoring financial accounts to instead show an inflated pre-tax profit of JPY5.03 billion. Moreover, Mr. Horie and the Company executives allegedly relayed false information on a merger, with the intent to boost the stock price of Livedoor's subsidiary, Livedoor Marketing Co. The TCR-AP recounts that following the accounting scandal in January, Livedoor's stock price plunged to JPY94 per share from over JPY300 per share. Livedoor was delisted from the Tokyo Stock Exchange on April 14, 2006. Four Livedoor ex-directors, two external accountants, and both Livedoor and subsidiary Livedoor Marketing Limited, have pled guilty to charges of accounting fraud and violating the Securities Exchange Law at their trial's first hearing on May 26, 2006. This while Mr. Horie denied the charges against him. The directors currently stand trial for the fraud charges, while Mr. Horie is scheduled to stand trial within June 2006. =============== M A L A Y S I A =============== CHG INDUSTRIES: Securities Commission Rejects Appeal ---------------------------------------------------- The Securities Commission, on May 31, 2006, rejected CHG Industries Berhad's appeal of the SC's decision denying the Company's proposed debt and restructuring scheme. The Troubled Company Reporter - Asia Pacific earlier reported that CHG Industries, on June 3, 2004, entered into an agreement with Linmax Group Sdn Bhd to undertake a corporate and debt restructuring exercise, which involves a capital reduction, the injection of fresh assets and a transfer of its listing status. According to the TCR-AP, on April 6, 2006, the Securities Commission disallowed CHG Industries' application in relation to the proposals under the Company's Restructuring Scheme as the revised proposals submitted were not able to address the SC's concerns. Specifically, the SC noted that: -- the Proposals do not provide the appropriate benefits to the shareholders of CHG; -- the Proposals involve, among others, the acquisition of three companies which are involved in businesses in the competitive and unpredictable timber industry; and -- there are conflicting interests with the businesses of the Sinar Tiasa Group as the promoters are also involved in the upstream and downstream businesses in the timber industry in other companies that are both listed and unlisted on Bursa Malaysia Securities Berhad. About CHG Industries Berhad Headquartered in Selangor Darul Ehsan, Malaysia, CHG Industries Berhad -- http://www.chg.com.my/-- is an investment holding company listed on the Main Board of the Kuala Lumpur Stock Exchange, Malaysia. It is the parent company of the CHG Industries Group, whose principal activity is in the manufacture, distribution and export of plywood, LVL (Laminated Veneer Lumber) and other veneer products. The Company's financial problems started when it defaulted on loan facilities in 1999. CHG Industries, on June 3, 2004, entered into an agreement with Linmax Group Sdn Bhd to undertake a corporate and debt restructuring exercise, which involves a capital reduction, the injection of fresh assets and a transfer of its listing status. The plywood and veneer product maker will be transformed into a mechanical and engineering company through the injection of the assets of Linmax Group Sdn Bhd. CHG said the restructuring via Linmax will enable its existing shareholders to participate in Linmax, which has income- generating assets, and keep the company listed on the local bourse. The proposed restructuring scheme had been expected to be completed this year. However, the Securities Commission on April 6, 2006, rejected the Company's restructuring proposal because the Proposals do not provide the appropriate benefits to the shareholders of CHG. On May 8, 2006, the Company submitted an appeal to the Securities Commission with revisions to address the issues raised by the regulator. The revised Proposals are now pending the approval of the Securities Commission and other relevant authorities. CONSOLIDATED FARMS: Unit Receives Writ of Summon from Lee Foong --------------------------------------------------------------- Consolidated Farms Berhad's subsidiary -- Consolidated Liquid Eggs Sdn Bhd -- had been named as defendant in a Writ of Summon dated May 11, 2006, filed by Lee Foong Hardware Supplied & Services Sdn Bhd in the Magistrates Court of Kuala Lumpur. The Writ was served on Consolidated Liquid Eggs on June 1, 2006. The suit is in respect of goods sold and delivered to Consolidated Liquid Eggs. Lee Foong claims: * MYR10,823.35 from Consolidated Liquid Eggs, together with interest of 8.0% per year, from judgment date until full resolution; * other costs; and * any other relief to be granted by the Court. The mention date for the suit has been fixed on September 19, 2006. Consolidated Farms had appointed lawyers to defend the suit. The Company will seek the indulgence of the plaintiff for an abeyance in the proceedings pending the review by the Board of Directors of Confarm to ascertain its financial position before deciding the way forward for the Confarm Group. 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. CONSOLIDATED FARMS: Defaults on Debt Payments --------------------------------------------- Consolidated Farms Berhad and its subsidiaries were unable to pay the amount of principal and interest in respect of its credit facilities on May 31. 2006. The Confarm Group owes a total of MYR144,113,000 to: * Bank Pertanian Malaysia -- MYR46,261,000; * Bumiputra Commerce Bank Berhad -- MYR61,600,000; * Malayan Banking Berhad -- MYR23,347,000; and * AmMercnat Bank Berhad -- MYR12,901,000. There has been no material development in respect of the Company's plan to regularize its financial position. 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. JIN LIN: Creditors to Meet on June 16 ------------------------------------- Pursuant to an order issued by the High Court on April 7, 2006, under Section 176 of the Companies Act 1965, Jin Lin Wood Industries Berhad, on May 24, 2006, issued a notice to convene a meeting of the scheme creditors of the Company on June 16, 2006. During the meeting, members will be asked to consider, and if thought fit, approve the Modified Proposed Scheme of Arrangement with creditors. Jin Lin's advisers are attending to matters necessary to implement the Company's Proposed Restructuring Scheme approved by the Securities Commission. About Jin Lin Wood Industries Headquartered in Kuala, Lumpur Malaysia, Jin Lin Wood Industries Berhad is engaged in the manufacture and trade of timber and related timber products. The Company is also involved in warehousing, chemical treatment and investment holding. Jin Lin was listed in 2000, at the tail end of the timber price rally. It went bust two years later, when demand for wood products and their prices were at their cyclical lows. The Company's management blamed the failure to "bad timing" as the company came in when the market was going down. The Company hopes that its proposed a restructuring scheme, which involves the change of its core business from timber-based to the manufacturing of granite and marble products, will be completed as early as this year. The restructuring also involves schemes of arrangement with shareholders and creditors, disposal of Jin Lin and shares placement. The Proposed Restructuring Scheme is currently in the implementation stage and awaits shareholders' approval. The shareholders are expected to convene and discuss the restructuring scheme in the second quarter of 2006. The Company's balance sheet as of March 31, 2006, revealed strained liquidity with current assets of MYR3.8 million available to pay current liabilities of MYR98.9 million. KAMDAR GROUP: To Hold Fourth Annual General Meeting on June 27 -------------------------------------------------------------- Kamdar Group Berhad's Fourth Annual General Meeting will be held at Cempaka-Raya Room, Mezzanine Floor, Hotel Equatorial Kuala Lumpur, in Jalan Sultan Ismail, Kuala Lumpur, on June 27, 2006, at 10.00 a.m. During the meeting, members will be asked to: -- receive the Company's Audited Financial Statements for the financial year ended December 31, 2005, together with the relevant Directors' and Auditors' Reports; -- approve the payment of a first and final dividend of 5% per ordinary share of MYR1.00 each less 28% Malaysian Income Tax for the financial year ended December 31, 2005; -- approve the payment of Directors' fees for the year ended December 31, 2005; -- re-elect as directors: * Harsukhlal A/L Maganlal Kamdar; * Jayesh R Kamdar A/L Rajnikant; * Hamendra A/L B.M. Kamdar; and * Dato' Mohamed Nizam Bin Abdul Razak; -- reappoint Messrs Shamsir Jasani Grant Thornton as auditors of the Company and to authorize the Directors to fix the auditors' remuneration; -- empower Directors to issue new shares in the Company provided that the aggregate number of shares issued does not exceed 10% of the issued share capital of the Company for the time being and that the authority will continue in force until the conclusion of the next Annual General Meeting of the Company and that the Directors be authorized to obtain the approval from Bursa Securities for the listing and quotation of the additional shares so issued; and -- transact any other business which may properly be transacted at an Annual General Meeting for which due notice will have been given. About Kamdar Group (Malaysia) Berhad Malaysia-based Kamdar Group (Malaysia) Berhad is principally involved in retailing of textile and textile-based products. Its other activities include letting out of properties and investment holding. The Group has been suffering rating downgrades due to its declining comparable store sales, less- than-favorable results, escalated debt level and weaker prospects for future cashflow. In 2005, Kamdar barely broke even at the operating level -- before depreciation, interest and tax -- as listing expenses and loss on the disposal of a subsidiary swamped its operating profits. As such, the Group suffered a pre-tax loss of about MYR4 million. The Group's net gearing ratio tipped over one time following the huge losses and a heavier debt burden of MYR142.56 million. Overall, KGMB's debts are about 30% higher than the expected MYR110 million. The Group's current debt level is deemed high vis-a-vis its relatively weak operating performance. KIG GLASS: Updates on Group's Default Status -------------------------------------------- KIG Glass Industrial Berhad issued an update in relation to defaults of all principals and interests by the Company and its subsidiaries as of April 30, 2006. As of April 30, KIG Glass owes Bumiputra Commerce Bank Berhad a total of MYR51,588,499 for bankers acceptances, term loans, trust receipts, as well as revolving credit and letter of credit. KIG Ceramics, on the other hand, defaulted on a total of MYR10,860,150 to Bumiputra Commerce Bank Berhad. KIG Ceramics also owes Overseas Union Bank Berhad MYR3,905,709, and The Labuan branch of Bumiputra Commerce Bank Limited MYR9,425,537. The Company also defaulted on MYR888,943 as overdraft payment to RHB Bank Berhad. Meanwhile, the updated figures for KIG's subsidiary Zibo Jiali Glass Industry Co. Ltd. is not available to date because of a voluntary wind-up application against the subsidiary filed with the Court in People's Republic of China. The principal amount Zibo Jiali owed to United Overseas Bank Limited, China is USD1,400,000. KIG and its subsidiaries are unable to service the loan repayments to the banks and financial institutions as the Company and one of its subsidiaries -- Ziabo Jiali -- had ceased operations on May 27, 2005, and February 15, 2006, respectively. The Troubled Company Reporter - Asia Pacific recounts that on May 11, 2006, KIG unveiled its restructuring proposal, which includes a debt settlement proposal to resolve the default issue. The Company is in the process of finalizing its restructuring exercise in line with its regularization exercise since the Company is under Practice Note 17 of the Bursa Malaysia Securities Berhad. The Company's board of directors has formed the opinion that the Group and the Company are insolvent. About KIG Glass Industrial Berhad Headquartered in Johor Darul Ta'zim, Malaysia, KIG Glass Industrial Berhad -- http://www.kedaung.com/-- manufactured and sold glassware, glass blocks and carton boxes. The firm's other activities included manufacturing of ceramic roof tiles. Its operations were carried out in Malaysia and China. Due its inability to pay its debts, the Company ceased operation in May 2005. As of December 31, 2005, the KIG Group's accumulated losses stood at almost MYR300 million. The shareholders' funds of the KIG Group was in deficit of approximately MYR93 million while its total borrowings amounted to approximately MYR104 million. To this end, KIG Glass announced its status as an affected listed issuer pursuant to Practice Note 1/2001 and Practice Note 17/2005 of the Listing Requirements. KIG GLASS: AmMerchant Bank Resigns as Adviser --------------------------------------------- AmMercant Ban Berhad has resigned as KIG Glass Industrial Berhad's adviser in relation to the Company's restructuring proposal. The resignation took effect on June 1, 2006. KIG Glass, meanwhile, is finalizing the appointment of another adviser to continue the finalization of the Company's regularization plan as proposed. The Troubled Company Reporter - Asia Pacific recounts that KIG Glass Industrial Berhad, on May 11, 2006, entered into a restructuring agreement with Permintex Holdings Sdn Bhd and Permintex Berhad in respect of the reverse takeover of KIG Glass by Permintex Holdings through Permintex. The restructuring agreement will involve: * acquisitions; * a shareholders' scheme; * a debt settlement; * a placement of the Company's shares; * a transfer of listing status; and * disposal of the company. KIG Glass agreed to the restructuring proposals since it has been unable to repay its debts due to its "poor financial position" and "loss-making businesses" since 2002. KIG Glass has approximately one month from June 2, 2006, to submit a Regularization Plan as to the relevant authorities for approval. In the absence of a plan to regularize its financial condition, KIG Glass would likely face the prospects of delisting. In this respect, the Board has decided to embark on the Proposals formulated to provide a better recovery to the Company's shareholders and creditors. About KIG Glass Industrial Berhad Headquartered in Johor Darul Ta'zim, Malaysia, KIG Glass Industrial Berhad -- http://www.kedaung.com/-- manufactured and sold glassware, glass blocks and carton boxes. The firm's other activities included manufacturing of ceramic roof tiles. Its operations were carried out in Malaysia and China. Due its inability to pay its debts, the Company ceased operation in May 2005. As of December 31, 2005, the KIG Group's accumulated losses stood at almost MYR300 million. The shareholders' funds of the KIG Group was in deficit of approximately MYR93 million while its total borrowings amounted to approximately MYR104 million. To this end, KIG Glass announced its status as an affected listed issuer pursuant to Practice Note 1/2001 and Practice Note 17/2005 of the Listing Requirements. KUMPULAN BELTON: Formulates Financial Regularization Plan -------------------------------------------------------- Kumpulan Belton Berhad is in the process of drawing up a financial regularization plan in compliance with Amended Practice Note 17 of Bursa Malaysia Securities Berhad's Listing Requirements. The Company has another seven months to submit its Regularization Plan to the relevant authorities for approval. As reported by the Troubled Company Reporter - Asia Pacific on May 12, 2006, Kumpulan Belton was identified as an affected listed issuer of Practice Note 17, as its consolidated shareholders' equity as of December 31, 2005, was less than 25% of its issued an paid up capital. As an affected issuer, the Company is required to submit a Regularization Plan to the relevant authorities for approval and implement the Regularization Plan within the timeframe stipulated by the relevant authorities. In the event that the Company fails to comply with the obligation to regularize its condition, all its listed securities will be suspended from trading, as the case may be, and delisting procedures will be commenced against the Company. About Kumpulan Belton Berhad Headquartered in Perak Darul Ridzuan, Malaysia, Kumpulan Belton Berhad -- http://www.beltongroup.com/-- manufactures and sells automotive suspension parts and components. Other activities include property development and investment, provision of machining and heat treatment services and investment holding. Operations of the Group are carried out in Malaysia and Australia. The Company and some of its subsidiaries are involved in litigations and winding-up petitions. These legal actions arose from the Company's inability to meet its payment obligations. MBF CORPORATION: Fourth AGM Slated for June 28 ---------------------------------------------- MBF Corporation Berhad will hold its Fourth Annual General Meeting at Armada Hotel, Laksamana Ballroom, Level 3, Lorong Utara C, Section 52, 46200, ihn Petaling Jaya, Selangor Darul Ehsan, on June 28, 2006, at 10:00 a.m. During the meeting, members will be asked to: -- receive and adopt the Audited Financial Statements for the year ended December 31, 2005, together with the Directors and Auditors Reports; -- approve payment of Directors' fees amounting to MYR120,000 for the year ended December 31, 2005; -- re-elect Datuk Azizan bin Abdul Rahman and Dato' Yap Ping Kon as directors; -- re-appoint Messrs Ernst & Young as auditors of the Company and to authorize the directors to fix the auditors' remuneration; -- empower Directors to issue new shares in the Company provided that the aggregate number of shares issued does not exceed 10% of the issued share capital of the Company for the time being and that such authority will continue in force until the conclusion of the next Annual General Meeting of the Company and that the Directors be authorized to obtain the approval from Bursa Securities for the listing and quotation of the additional shares so issued; -- transact any other business for which due notice will have been given. About MBf Corporation Berhad Headquartered in Kuala Lumpur, Malaysia, MBF Corporation Berhad is principally involved in promoting and selling property, club and timeshare memberships; leasing factoring facilities, credit cards, consumer financing and related products and property development. Other activity include investment holding. The Group operates in three main areas, namely, Malaysia, Indonesia and Hong Kong and Taiwan collectively. The Group's principal activities are mainly operated in Malaysia except for the credit card business, which is carried out in Indonesia. The Group has no significant operations in Hong Kong and Taiwan other than certain residual assets from a subsidiary that has since been liquidated in Taiwan. The Company is classified under Bursa Malaysia Securities Berhad's Practice Note 17 category and is required to formulate a plan to raise its shareholders' equity to meet the Bourse's Listing Requirements. METROPLEX BERHAD: In Talks with Lenders on Restructuring -------------------------------------------------------- Metroplex Berhad is in negotiations with its lenders on the Proposed Composite Scheme of Arrangement to regularize its financial condition. The Scheme will be disclosed at the Bursa Malaysia Securities Berhad upon submission to relevant authorities. As reported by the Troubled Company Reporter - Asia Pacific on April 13, 2006, Metroplex Berhad's unaudited quarterly results for the financial year ended January 31, 2006, revealed that the Company has a deficit in the shareholders' equity on a consolidated basis amounting to MYR196.3 million. The deficit in the shareholders' equity is mainly attributable to Metroplex Group's accumulated losses exceeding the Group's paid-up share capital and reserves. As such, Metroplex is an affected listed issuer of Practice Note No. 17/2005 of the Listing Requirements of Bursa Securities. As an affected listed issuer, Metroplex is required to submit a regularization plan to the relevant authorities for approval or, where the relevant authorities' approvals are not required, obtain all other approvals necessary for the implementation of the Plan within a timeframe stipulated by Bursa Securities. The Company has approximately another six months from June 1, 2006, to submit its Proposed Scheme to the relevant authorities for approval. In the event Metroplex fails to comply with the obligation to regularize its condition, all its listed securities will be suspended from trading on the fifth market day after expiry of the Submission Timeframe or Implementation Timeframe, as the case may be, and delisting procedures will be commenced against Metroplex. About Metroplex Berhad Headquartered in Kuala Lumpur, Malaysia, Metroplex Berhad's activities are hotel and casino operations. Other activities include property investment, property development, provision of administrative services, general and building construction, leasing and financing, trading of building materials and operation of hotel management training school. Operations are carried out in Malaysia, Hong Kong and Philippines. On April 28, 2005, Morgan Stanley Emerging Markets Incorporated had filed a winding-up petition on the Company to the Kuala Lumpur High Court. Morgan Stanley also filed for a summons to appoint a provisional liquidator for the wind up. Until and unless a provisional liquidator is appointed pursuant to the application to the Court by the Petitioner to appoint provisional liquidator for Metroplex, the winding-up petition will not have significant impact on the Group's operations as MB is currently working out a debt-restructuring scheme. In the event the wind-up petition succeeds, the Company will be put into liquidation. TRADEWINDS CORPORATION: 33rd Annual General Meeting Set June 29 --------------------------------------------------------------- The 39th Annual General Meeting of Tradewinds Corporation Berhad will be held at Mahkota Ballroom 2, Hotel Istana Kuala Lumpur, 73, in Jalan Raja Chulan, Kuala Lumpur, on June 29, 2006, at 10:00 a.m. During the meeting, members will be asked to: -- receive the Audited Financial Statements for the financial year ended December 31, 2005, together with the reports of the Directors and Auditors; -- re-elect as directors * Tan Sri Datuk Amar (Dr) Hamid bin Bugo; * Abdul Jabbar bin Abdul Majid; and * Syed Azmin bin Mohd Nursin; -- approve Directors' fees for the financial year ended December 31, 2005; -- reappoint Messrs PricewaterhouseCoopers as Auditors of the Company for the ensuing financial year and to authorize the Directors to determine their remuneration; and -- authorize the Directors to issue shares in the Company at any time to such persons, upon such terms and conditions and for such purposes as the Directors will in their absolute discretion deem fit provided always the aggregate number of shares to be issued will not exceed 10% of the issued share capital of the Company and the relevant approvals of the regulatory bodies will have been obtained. About Tradewinds Corporation Berhad Tradewinds Corporation Berhad -- formerly known as Pernas International Holdings Berhad -- is one of Malaysia's largest and most dynamic investment holding company. The group is focused on a diverse range of business activities, which include plantations, hotels, manufacturing, and properties, and aims to be the premier investment company. The Group has entered into a restructuring scheme to settle debts, curb losses and streamline its operations. In 2004, the Group's debt was significantly restructured with the reorganization of the hotel businesses. The Company also unveiled a new logo after its change of name in July 2004, in line with its corporate re-branding exercise. The Group divested some non-core assets in line with its objective to streamline its businesses. In February 2005, the acquisitions of property development land to diversify earnings and improve cash flow were completed. The Company's March 31 balance sheet showed strained liquidity with MYR1,016,770,000 in total current assets available to pay MYR1,211,706,000 in total current liabilities coming due within the next 12 months. The Company has net current liabilities of MYR194,936,000. ===================== P H I L I P P I N E S ===================== BENPRES HOLDINGS: Sells 18 Million Shares in Unit to Raise Funds ---------------------------------------------------------------- In a disclosure to the Philippine Stock Exchange on June 9, 2006, Benpres Holdings Corp. said that it disposed of a total of 18,786,000 shares in its subsidiary, Digital Telecommunications, through the PSE. The shares disposed on these dates are: Date Volume ---- ------ 05/08/2006 5,000,000 05/09/2006 800,000 05/10/2006 4,000,000 05/11/2006 100,000 05/12/2006 100,000 05/15/2006 1,500,000 05/16/2006 100,000 05/17/2006 4,500,000 05/26/2006 500,000 05/30/2006 2,186,000 ---- ------ Total: 18,786,000 The shares were sold for PHP24.5 million in aggregate, and the proceeds of the share sale will go towards funding the Company's working capital. * * * Headquartered in Pasig City Philippines, Benpres Holdings Corporation is a 56.22%-owned subsidiary of Lopez, Inc. Both entities were incorporated in the Philippines. Benpres Holdings and its subsidiaries are mainly involved in investment holdings, broadcasting and entertainment, and water distribution. The Company's associates are involved in telecommunications, power generation and distribution, cable television, real estate development and infrastructure. Starting in 2002, Benpres Holdings defaulted on its principal and interest payments on its long-term direct obligations and guarantees and commitments. As proposed in the Company's Balance Sheet Management Plan, all of Benpres' liabilities were computed as of May 31, 2002. Also as proposed in the BSMP, the Company would make good faith semi-annual payments on its direct and contingent obligations. The first payment was made on December 2, 2002, and succeeding payments were made in June and December 2003, June and November 2004, and May and November 2005. On March 13, 2003, Benpres Holdings convened a Special Stockholders' Meeting to obtain stockholders' consent to delegate to the Board of Directors the authority to take all actions and matters necessary and desirable for the restructuring of the Company's obligations under the BSMP. The stockholders granted full authority to the BOD to negotiate with the creditors without the need for prior stockholders' approval. As of Dec. 31, 2005, Benpres Holdings' long-term direct obligations due for payment stood at PHP9.96 billion. By virtue of its guarantees and commitments, based on the BSMP, the Company may be liable for certain obligations that already fell due, amounting to approximately PHP10.94 billion as of Dec. 31, 2005, excluding guarantees in its unit, Maynilad Water Services, Inc. As of Dec. 31, 2005, consolidated current liabilities exceeded consolidated current assets by PHP22.12 billion. Net loss attributable to Benpres Holdings' equity holders for the year ended Dec. 31, 2004, amounted to PHP1.2 billion. Benpres announced the BSMP in June 2002 to address all its financial obligations via these methods: -- debt reduction by getting the relevant subsidiaries to repay their debts as guaranteed by the Parent Company; -- raising cash through orderly asset sales; and -- cost reduction and suspension of capital investment. The BSMP is also designed to accommodate various scenarios depending on the success of the Company's asset sale and debt reduction initiatives. In 2005, Ferrier Hodgson Corporate Advisory (WA) Pty Limited was appointed as financial adviser to assist the Company in addressing its long-term direct obligations, as well as contingent obligations arising from outstanding guarantees and commitments. The creditors formed the Benpres Creditors' Committee to facilitate the overall process for the financial restructuring of the Company. After auditing the Company's annual report for the period ended December 31, 2005, Sycip Gorres Velayo & Co. raised substantial doubt on Benpres Holdings' ability to continue as a going concern, which would depend on success of the Company's balance sheet management plan. LAFAYETTE MINING: DENR Forms New Team to Decide on Test Run ----------------------------------------------------------- The Department of Environment & Natural Resources created a team of seven volunteer experts to determine whether the Rapu-Rapu mine of Lafayette Philippines, Inc., should be allowed to conduct a test run after it was shut down in October 2005 due to two spill incidents that allegedly polluted nearby waters, the Manila Bulletin relates. The Troubled Company Reporter - Asia Pacific reported on May 15, 2006, that Lafayette Philippines sought the Philippine Government's approval of a test run of its processing plant in Rapu-Rapu, Albay, before resuming operations. In an interview, DENR Mining Undersecretary Demetri Ignacio said that they are validating whether the Company's lapses can be remediated, and whether there are solutions or not. DENR Secretary Angelo T. Reyes is reading every report on the issue in order to make an informed, responsive decision, the Bulletin notes. The Bulletin states that Lafayette Philippines has shifted operations to copper-zinc production from goldsilver mining, and claimed that it would significantly reduce the use of toxic chemical cyanide, which caused the 2005 spill incidents. The DENR is checking Lafayette's claim that it would need only 25% of cyanide to separate copper and zinc. DENR Mines and Geosciences Bureau metallurgical technology head Juancho Pablo S. Calvez supported Lafayette's claim, saying that the Company would need lesser cyanide for its copper-zinc detoxification process, as its zinc tails that have a maximum cyanide content of 12 parts per million before discharge could be reduced to an acceptable 0.1 parts per million with the use of reagent sodium metabisulfite. The new DENR team will also look into resolving the problem of acide mine drainage in the area. According to Mr. Ignacio, the decision to approve Lafayette's proposed test run depends on whether it has completed the conditions required by the Mine Rehabilitation Fund Committee, which includes the prevention of backflow of tailings, regular pumping of slurry and its maintenance at a minimum level in the pond, a proper re-channeling of storm water from the mill so that the rain water will not go to the active waterways, emergency measures to prevent contamination of marine life, emergency warning and alert system for the local residents, and total systems review. * * * Lafayette Mining Philippines, Incorporated, is a subsidiary of Australian firm Lafayette Mining, Incorporated -- http://www.lafayettemining.com/-- which has been listed on the Australian Stock Exchange since August 1997. Lafayette Philippines is currently developing a polymetallic project involving copper, gold, zinc and silver on the Island of Rapu- Rapu in the Philippines. The Department of Environment and Natural Resources' former secretary, Mike Defensor, ordered the closing of Lafayette Philippines when the Company's mine tailings were accidentally spilled into the Albay Gulf in October 2005, killing thousands of fish and destroying the livelihood of fishermen in the area. The Company was also fined PHP10.7 million for violating the Clean Water Act and its environmental compliance certificate. * Banks' Bad Loan Ratio Rises to 8.24% in April ----------------------------------------------- The Bangko Sentral ng Pilipinas states that the non-performing loan ratio of commercial banks had risen to 8.24% in April 2006 from 8.01% in March, though still lower than a recorded 11.24% ratio in April 2005, BusinessWorld relates. The Philippine Star reports that the rise was due to a slump in interbank lending, which reduced the total loan portfolio by 1.9%, while non-performing loans rose by 0.9%. The bad loans amounted to PHP154.11 billion against a total loan portfolio of PHP1.87 trillion as of April 30, 2006, the Philippine Inquirer adds. Excluding interbank lending, banks' total loan portfolios rose 1.45, resulting in a drop in the non-performing loan ratio to 9.95% in April from 9.99% in March, against last year's 13.3%, according to BusinessWorld. The Philippine Daily Inquirer states that the ratio of restructured loans to total loans climbed to 5.33% in April from the 5.2% in March. Restructured loans which turned sour again fell by 1.4%, therefore improving the ratio to total restructured loans to 46.74%. Of the PHP100 billion in restructured loans, PHP46.88 billion are non-performing. In the report by The Star, provisions set aside for non- performing assets improved to 41.94% in April from 41.65% in March, and 78.76% for non-performing loans from 78.61%. According to the Inquirer, the BSP expects demand for loans to be boosted by favorable domestic interest rates and improved business sentiment as a result of steady progress in fiscal consolidation and other key economic reforms. However, so far, bank lending in the Philippines has remained "anemic" due to banks' high non-performing loans and assets, weak capital base and high lending rates despite falling treasury bill and bond yields, the Inquirer adds. ================= S I N G A P O R E ================= DE-DECOR SINGAPORE: Faces Wind-up Proceedings --------------------------------------------- An application to wind up De-Decor Singapore Pte Limited was filed with the High Court of Singapore on May 31, 2006, by IFS Capital Limited. The wind-up application will be heard before the Court on June 30, 2006, at 10:00 a.m. Contact: Hin Tat Augustine & Partners Solicitors for the Plaintiff 20 Upper Circular Road # 02-10/12 The Riverwalk Singapore 058416 DIGILAND INTERNATIONAL: Details Purpose of Rights Issue ------------------------------------------------------- Digiland International Limited, on April 7, 2006, unveiled a proposed renounceable non-underwritten rights issue of up to 696,296,013 new ordinary shares in the Company, at an issue price of SGD0.005 for each Rights Share with up to three free detachable warrants, on the basis of one Rights Share with three Warrants for every 10 Shares held by Entitled Shareholders as of a books closure date to be determined by the directors of the Company, fractional entitlements to be disregarded. Each Warrant will carry the right to subscribe for one new Share. The Rights Issue has been proposed to raise funds for the working capital of the Company. Fiscal year 2005 was a very difficult year for the Company as it faced severe financial difficulties which resulted in the Company implementing a scheme of arrangement with its scheme creditors which details are set out in the Company's Circular to its shareholders dated0 December 2, 2005. It also started taking steps to return to profitability, which included the Company's revision of its business strategy. The Company began to move away from the traditional high-volume low-margin business of pure hardware distribution to focus on higher value- added distribution and value added services, which yield higher margins. The Rights Issue has been proposed to raise funds for the working capital of the Company for it to execute its revised business strategy. In respect of the aggregate SGD5 million received by the Company pursuant to the investment agreement dated October 3, 2005, entered into between the Company and Dr. Vincent Tan Kim Yong, the Company used the proceeds for working capital, including payments for goods purchased from suppliers, administrative expenses, monthly rental and salaries. The minimum and maximum estimated net proceeds from the Rights Issue after deducting estimated expenses for the Rights Issue are expected to be approximately SGD2.28 million and SGD3.23 million before the exercise of the Warrants. If all the Warrants are exercised, the estimated gross proceeds arising from such exercise of Warrants will range from SGD20,273,240 and SGD27,851,841. The Company intends to use the net proceeds from the Rights Issue and the eventual exercise of the Warrants, if any, for the Company's working capital. Pending the deployment of the proceeds for the purpose mentioned above, such proceeds may be deposited with banks or financial institutions, invested in short-term money markets or marketable securities or used for any other purpose on a short-term basis as the directors of the Company may deem fit. Taking into account the Company's internal resources, operating cash flows and banking facilities and the Company's current plans, the Directors are of the opinion that the minimum proceeds will be sufficient to meet the Company's present funding requirements. 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. EXPANDSHIP HOLDINGS: Court Issues Wind-Up Order ----------------------------------------------- The High Court of the Republic of Singapore has issued a wind-up order against Expandship Holdings (Pte) Limited on May 19, 2006. The wind-up petition was filed by James Logan Swanson before the High Court on April 19, 2006. Contact: The Official Receiver The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118 Ang & Partners Solicitors for the Plaintiff 150 Beach Road #32-00 The Gateway West Singapore 189720 GN PACKAGING: Creditors' Proofs of Claim Due on July 8 ------------------------------------------------------ GN Packaging Industries Pte Limited notifies parties-in-interest of its intention to declare preferential dividend to creditors. The Company's creditors are requested to file their proofs of claim by July 8, 2006, for them to share in the dividend distribution. Contact: Don M. Ho c/o Don Ho & Associates Certified Public Accountants Corporate advisory & Recoveries Equity Plaza20 Cecil Street #12-02 & 03 Singapore 049705 Phone: 6532 0320 Fax: 6532 0331 PORT WELD: Court Hears Wind-up Petition --------------------------------------- The Honorable Judicial Commissioner Sundaresh Menon of the High Court of the Republic of Singapore heard on June 2, 2006, a wind-up petition against Port Weld Engineering Pte Limited. As reported by the Troubled Company Reporter - Asia Pacific, Jade Machine Tool Pte Limited filed the petition on April 21, 2006, with the High Court. Contact: Hoh Law Corporation Solicitors for the Applicant 110 Middle Road #09-00 Chiat Hong Building Singapore 188968 =============== T H A I L A N D =============== THAI GERMAN: Releases Financial Report for Fiscal Year 2005 ----------------------------------------------------------- Thai-German Products Public Company Limited submitted to the Stock Exchange of Thailand a summary of its audited financial statements for the year ended December 31, 2005. Thai German posted a THB29,468,149 net loss for the year ended December 31, 2005, against a THB6,063,875,782 net profit for the year ended December 31, 2004. According to the Company, its gross profit margin dropped from 18% to 11% in 2004 and 2005 respectively. The Company explained that because of limited working capital, it could not directly purchase raw material from manufacturers. The purchase price from agent is higher than manufacturer price. The Company also relates that selling price of finished goods to both local and foreign market decreased to approximately 20-25% due to over supply of raw material in the world market. Consequently, this pushed selling price of finished goods to drop automatically since the third quarter of 2005. The Company's balance sheets as of December 31, 2005, and as of December 31, 2004, reflect these key figures: 2005 2004 ---- ---- Total Current Assets THB1,047,503,658 THB818,423,875 Total Non-Current Assets 1,010,976,622 1,067,701,636 Total Assets 2,058,480,280 1,886,125,511 Total Current Liabilities 640,189,966 372,275,803 Total Non-Current Liabilities 1,327,177,112 1,393,268,357 Total Liabilities 1,967,367,078 1,765,544,160 Total Shareholders Equity 91,113,202 120,581,351 Total Liability & Shareholders Equity 2,058,480,280 1,886,125,511 The Company's income statements for the years 2005 and 2004 show: 2005 2004 ---- ---- Total Revenue 1,636,910,149 1,506,101,013 Total Expenses 1,660,042,402 1,487,595,979 Net Profit (Loss) (29,468,149) 6,063,875,782 * * * Thai-German Products Public Co., Ltd -- http://www.tgpro.co.th/ -- is the manufacturer of stainless steel pipe, tube, and sheet in Thailand under the name of "TGPRO" founded by Pracha Leelaprachakul in 1973. Currently, the Company is listed under the "Rehabco," or Companies under rehabilitation, sector of the Stock Exchange pf Thailand in accordance with Thailand's Bankruptcy Act. * BOND PRICING: For the Week 12 June to 16 June 2006 ---------------------------------------------------- Issuer Coupon Maturity Price ------ ------ -------- ----- AUSTRALIA --------- Ainsworth Game 8.000% 12/31/09 1 Amcom Telecommunications Ltd 10.000% 10/28/07 1 APN News & Media Ltd 7.250% 10/31/08 5 A&R Whitcoulls Group 9.500% 12/15/10 8 Arrow Energy NL 10.000% 03/31/08 1 Babcock & Brown Pty Ltd 8.500% 12/31/49 9 Becton Property Group 9.500% 06/30/10 1 BIL Finance Ltd 9.250% 10/15/06 9 BIL Finance Ltd 8.000% 10/15/07 9 Capital Properties NZ Ltd 8.500% 04/15/07 8 Capital Properties NZ Ltd 8.500% 04/15/09 8 Capital Properties NZ Ltd 8.000% 04/15/10 9 Cardno Limited 9.000% 06/30/08 4 CBH Resources 9.500% 12/16/09 1 Chrome Corporation Ltd 10.000% 02/28/08 1 Clean Seas Tuna Ltd 9.000% 09/30/08 1 Djerriwarrh Investments Ltd 6.500% 09/30/09 4 EBet Limited 10.000% 11/29/06 23 Evans & Tate Ltd 8.250% 10/29/07 1 Fletcher Building Ltd 7.550% 03/15/11 7 Fletcher Building Ltd 7.800% 03/15/09 8 Fletcher Building Ltd 7.900% 10/31/06 8 Fletcher Building Ltd 8.300% 10/31/06 8 Fletcher Building Ltd 8.600% 03/15/08 7 Fletcher Building Ltd 8.850% 03/15/10 8 Fernz Corp Ltd 8.560% 10/15/06 9 Futuris Corporation Ltd 7.000% 12/31/07 2 Hy-Fi Securities Ltd 7.000% 08/15/08 8 Hy-Fi Securities Ltd 8.750% 08/15/08 10 Hutchison Telecoms Australia 5.500% 07/12/07 1 IMF Australia Ltd 11.500% 06/30/10 1 Infrastructure & Utilities NZ Ltd 8.500% 09/15/13 8 Infratil Ltd 8.500% 11/15/15 8 Kagara Zinc Ltd 9.750% 05/06/07 4 Kiwi Income Properties Ltd 8.000% 06/30/10 1 Minerals Corporation Ltd 10.500% 09/30/07 1 Nuplex Industries Ltd 9.300% 09/15/07 8 Pacific Print Group Ltd 10.250% 10/15/09 10 Primelife Corporation 9.500% 12/08/06 1 Primelife Corporation 10.000% 01/31/08 1 Salomon SB Australia 4.250% 02/01/09 8 Sapphire Securities Ltd 7.410% 09/20/35 7 Sapphire Securities Ltd 9.160% 09/20/35 9 Silver Chef Ltd 10.000% 08/31/08 1 Software of Excellence 7.000% 08/09/07 1 Tower Finance Ltd 8.750% 10/15/07 8 Tower Finance Ltd 8.650% 10/15/09 8 TrustPower Ltd 8.300% 09/15/07 8 TrustPower Ltd 8.300% 12/15/08 8 TrustPower Ltd 8.500% 09/15/12 8 TrustPower Ltd 8.500% 03/15/14 8 Vision Systems Ltd 9.000% 12/15/08 2 Westpac Banking Corporation 6.250% 08/30/11 6 MALAYSIA -------- Aliran Ihsan Resources Bhd 5.000% 11/29/11 1 Artwright Holdings Bhd 5.500% 03/06/07 1 Asian Pac Bhd 4.000% 12/21/07 1 Berjaya Land Bhd 5.000% 12/30/09 1 Camerlin Group Bhd 5.500% 07/15/07 2 Crescendo Corporation Bhd 3.000% 08/25/07 1 Dataprep Holdings Bhd 4.000% 08/06/07 1 Eden Enterprises (M) Bhd 2.500% 12/02/07 1 EG Industries Bhd 5.000% 06/16/10 1 Equine Capital Bhd 3.000% 08/26/08 1 Fountain View Development Sdn Bhd 3.500% 11/03/06 1 Greatpac Holdings Bhd 2.000% 12/11/08 1 Gula Perak Bhd 6.000% 04/23/08 1 Hong Leong Industries Bhd 4.000% 06/28/07 1 Huat Lai Resources Bhd 5.000% 03/28/10 1 I-Berhad 5.000% 04/30/07 1 Insas Bhd 8.000% 04/19/09 1 Kamdar Group Bhd 3.000% 11/09/09 1 Killinghall Bhd 5.000% 04/13/09 2 Kosmo Technology Industrial Bhd 2.000% 06/23/08 6 Kretam Holdings Bhd 1.000% 08/10/10 1 Kumpulan Jetson 5.000% 11/27/12 1 LBS Bina Group Bhd 4.000% 12/29/06 1 LBS Bina Group Bhd 4.000% 12/31/07 1 LBS Bina Group Bhd 4.000% 12/31/08 1 LBS Bina Group Bhd 4.000% 12/31/09 1 Lion Diversified Holdings Bhd 2.000% 06/01/09 3 Media Prima Bhd 2.000% 07/18/08 1 Mithril Bhd 8.000% 04/05/09 1 Mithril Bhd 3.000% 04/05/12 1 Mutiara Goodyear Development Bhd 2.500% 01/15/07 1 Naim Indah Corporation Bhd 0.500% 08/24/06 1 Nam Fatt Corporation Bhd 2.000% 06/24/11 1 Pantai Holdings Bhd 5.000% 03/28/07 2 Pantai Holdings Bhd 5.000% 07/31/07 2 Pelikan International Corp Bhd 3.000% 04/08/10 1 Poh Kong Holdings Bhd 3.000% 01/20/07 1 Prinsiptek Corporation Bhd 3.000% 11/20/06 1 Puncak Niaga Holdings Bhd 2.500% 11/18/16 1 Ramunia Holdings 1.000% 12/20/07 1 Ranhill Power Bhd 5,800% 06/27/11 5 Rashid Hussain Bhd 0.500% 12/24/12 1 Rashid Hussain Bhd 3.000% 12/24/12 1 Rhythm Consolidated Bhd 5.000% 12/17/08 1 Senai-Desaru Expressway Bhd 3.500% 12/08/17 72 Silver Bird Group Bhd 1.000% 02/15/09 1 Southern Steel 5.500% 07/31/08 1 Tanah Emas Corporation Bhd 2.000% 12/09/06 1 Tap Resources Bhd 2.000% 06/29/06 1 Tenaga Nasional Bhd 3.050% 05/10/09 1 Titisan Modal Bhd 4.000% 04/29/19 68 Titisan Modal Bhd 5.000% 04/28/20 73 Tradewinds Plantations Bhd 3.000% 02/28/16 1 VTI Vintage Bhd 4.000% 08/22/06 1 WCT Land Bhd 3.000% 08/02/09 1 Wah Seong Corp 3.000% 05/21/12 4 YTL Cement Bhd 4.000% 11/10/15 1 PHILIPPINES ----------- Philippine Government 7.500% 03/30/16 75 SINGAPORE --------- Rabobank Singapore 1.000% 11/03/13 73 Sengkang Mall 4.880% 11/20/12 1 Sengkang Mall 8.000% 11/20/12 1 Structural System Singapore 11.000% 06/30/07 1 Tampines Assets Ltd 5.625% 12/07/06 1 Tincel Ltd 7.400% 06/13/11 1 ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Asia Pacific is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. 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