/raid1/www/Hosts/bankrupt/TCRAP_Public/060614.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, June 14, 2006, Vol. 9, No. 117
Headlines
A U S T R A L I A & N E W Z E A L A N D
ACCORD PROJECTS: Members Agree to Halt Firm's Operations
ALLCO CONSTRUCTION: Enters Voluntary Liquidation
BERNACHE PTY: Liquidator to Present Final Meeting on June 19
CAIRNS RESORT: To Declare Final Dividend on June 16
CARLO INVESTMENTS: John Greer Named as Liquidator
CENTRAL COAST: Members to Get Liquidator's Report on June 19
CG SLATER HOLDINGS: Members' Final Meeting Slated for June 16
CHAUCER GROUP: Faces Liquidation Proceedings
COMBINED OUTDOOR: Set to Halt Operations
CREDITCAISSE PTY: Names P. Ngan as Liquidator
EASTERN ROAD: To Declare Dividend on June 16
E&C BUILDERS: Court to Hear Liquidation Bid on June 19
FIX & CLEAN: Creditors Agree on Voluntary Wind-Up
FORTESCUE METALS: Signs Pilbara Iron-Ore Deal with Roche Mining
FUSIONWARE CORPORATION: To Declare Final Dividend on June 28
GRIFFIN MOTOR: Appoints Joint and Several Liquidators
HEAVEN WHOLESALE: To Declare First and Final Dividend on June 22
LANDMARK WAREHOUSING: Liquidator to Submit Report on June 22
MELTEK PTY: Members Agree on Voluntary Wind-up
RB JENKINS: Creditors to Receive Wind-Up Report on June 23
TRACNEY HOLDINGS: Enters Voluntary Liquidation
TURNING COMPANIES: Liquidator Reveals More than $60 Mln in Debts
WALLUNDRY INVESTMENTS: Members Decide to Close Operations
WELLINGTON APARTMENTS: Liquidation Petition Hearing Set June 19
WELLINGTON COLLEGE: Court to Hear Liquidation Matters on June 26
WOLLONGONG ADVANCED: Appoints Liquidator
* Australian Wine Industry Battles Grape Oversupply
C H I N A & H O N G K O N G
CHUNG MING: Briscoe Replaces Kennedy as Joint Liquidator
CONVEN CORPORATION: Creditors' Proofs of Debt Due on June 30
KING SHING: Court to Hear Winding-up Bid on June 21
MANDRA FORESTRY: Moody's Downgrades Ratings To B3 From B1
SOUNDTEX INTERNATIONAL: Creditors Meeting Set on July 4
SUN KWONG: Faces Winding-up Proceedings
SYMPHONY LIMITED: Court to Hear Wind-up Petition on July 19
TOP STAR: Creditors and Contributories Meetings Fixed June 28
WATERCORE LIMITED: Meeting of Members and Creditors Set July 10
I N D I A
INDIA CEMENTS: Results Back to Black in Fourth Quarter
JIK INDUSTRIES: Unveils Extraordinary General Meeting Results
I N D O N E S I A
PERUSAHAAN LISTRIK: Expects To Post FY05 IDR4.9-Trillion Loss
J A P A N
TOSHIBA MACHINE: Moody's to Review Ba1 Rating for Upgrade
* Moody's Gives Major Banks Stable to Positive Ratings Outlook
K O R E A
DAEWOO ENGINEERING: Five Groups Submit Final Bids
HYUNDAI MOTOR: Kia President is Safe From Indictment
M A L A Y S I A
AKTIF LIFESTYLE: Bourse Begins Delisting Procedures
AVANGARDE RESOURCES: Managing Director Sees Turnaround in Oct.
MALAYSIA AIRLINES: Sarawak Would Assist Troubled Staff
PROTON HOLDINGS: Prepares to Unveil New SRM on June 16
P H I L I P P I N E S
BENPRES HOLDINGS: Will Pay $200 Million in Debts Via Asset Sale
LAFAYETTE MINING: Government OKs Plant Reopening for Test Run
MRC ALLIED: First Quarter Net Loss Increases on Interest Expense
METRO PACIFIC: Retains PHP27.48B Deficit Despite 1Q Profit
NATIONAL POWER: Full Operation of Hydropower Plants to Cut Rates
S I N G A P O R E
ASICHEM TRADING: Court to Hear Wind-Up Petition on June 30
GRAND PROPERTY: Completes Liquidation Process
KINGSBURY HOLDINGS: Creditors' Proofs of Claim Due on July 10
MAE ENGINEERING: Shareholders Pass All EGM Resolutions
PORT WELD: Court Orders Wind-Up
- - - - - - - -
============================================
A U S T R A L I A & N E W Z E A L A N D
============================================
ACCORD PROJECTS: Members Agree to Halt Firm's Operations
--------------------------------------------------------
At a general meeting of Accord Projects Pty Limited's members on
May 8, 2006, it was agreed that winding up the Company is
appropriate and necessary.
Subsequently, Ian D. Kellaway was appointed as liquidator to
oversee Accord Projects' wind-up.
Contact: Ian D. Kellaway
Liquidator
Minett & Partners
Level 5, 491 Kent Street
Sydney New South Wales 2001
Australia
ALLCO CONSTRUCTION: Enters Voluntary Liquidation
------------------------------------------------
At a general meeting held on May 11, 2006, members of Allco
Construction Pty Ltd resolved to wind up the Company's
operations and appoint M. C. Smith as liquidator.
Contact: M. C. Smith
Liquidator
c/o McGrathNicol+Partners
Level 9, 10 Shelley Street
Sydney, New South Wales 2000
Australia
BERNACHE PTY: Liquidator to Present Final Meeting on June 19
------------------------------------------------------------
A final meeting for the members of Bernache Pty Limited will be
held on June 19, 2006, at 10:15 a.m.
At the meeting, Liquidator Richard Judson will present a report
regarding the Company's wind-up and property disposal.
Contact: Richard Judson
Liquidator
Members Voluntarys Pty Ltd
1st Floor, 10 Park Road,
Cheltenham 3192
Australia
CAIRNS RESORT: To Declare Final Dividend on June 16
---------------------------------------------------
Cairns Resort Investments Pty Ltd will declare its first and
final dividend on June 16, 2006.
Creditors who were not able to timely prove their claims will be
excluded from any distribution the Company will make.
Contact: Robert Hutson
Liquidator
KordaMentha (Qld)
Level 2, Corporate Centre One
2 Corporate Court
Bundall Qld 4217
Australia
Telephone:(07) 5574 1322
Facsimile:(07) 5574 1433
CARLO INVESTMENTS: John Greer Named as Liquidator
-------------------------------------------------
At a general meeting on May 4, 2006, the members of Carlo
Investments Pty Limited appointed John Greer as the Company's
liquidator.
Contact: John Greer
Liquidator
Level 7, 276 Pitt Street
Sydney, Australia
CENTRAL COAST: Members to Get Liquidator's Report on June 19
------------------------------------------------------------
The members of Central Coast Investments Pty Limited will meet
on June 19, 2006, at 10:00 a.m., to receive Liquidator R.G.
Tolcher's final accounts regarding the Company's wind-up and
property disposal. The meeting will be held at the liquidator's
office.
Contact: R. G. Tolcher
Liquidator
Lawler Partners
763 Hunter Street, Newcastle West,
New South Wales, Australia.
CG SLATER HOLDINGS: Members' Final Meeting Slated for June 16
-------------------------------------------------------------
Members of C G Slater Holdings Pty Limited will convene for a
final meeting on June 16, 2006, at 10:00 a.m., to receive
Liquidator Paul Andrew Fahey's report regarding the Company's
wind-up and property disposal.
Contact: Paul Andrew Fahey
Joint Liquidator
NorthCorp Accountants
51 Cameron Street,
Wauchope, New South Wales 2446
Australia
CHAUCER GROUP: Faces Liquidation Proceedings
--------------------------------------------
An application to put The Chaucer Group Ltd into liquidation
will be heard before the High Court of Auckland on July 20,
2006, at 10:45 a.m.
The High Court received the application from the Commissioner of
Inland Revenue on May 15, 2006.
Contact: P.L. Windsor-Knaap
Inland Revenue Department
1 Bryce Street, Hamilton
New Zealand
Telephone: (07) 959 0432
COMBINED OUTDOOR: Set to Halt Operations
----------------------------------------
During their general meeting on May 10, 2006, members of
Combined Outdoor Advertising Pty Ltd agreed to voluntarily shut
down the Company's operations
In addition, the members appointed Peter Dawkins, of Griffiths,
Forrest & Forrest, as liquidator for the Company.
Contact: Peter J. Dawkins
Liquidator
Griffiths, Forrest & Forrest
Chartered Accountants
Level 7, 276 Pitt Street
Sydney, New South Wales 2000
Australia
CREDITCAISSE PTY: Names P. Ngan as Liquidator
---------------------------------------------
The members of Creditcaisse Pty Ltd. convened on May 12, 2006,
and resolved to close the Company business and liquidate its
assets. They named P. Ngan as liquidator for the Company.
Contact: P. Ngan
Liquidator
Ngan & Co
Chartered Accountants
Level 5, 49 Market Street
Sydney, New South Wales 2000
Australia
EASTERN ROAD: To Declare Dividend on June 16
--------------------------------------------
Eastern Road Profiling Pty Ltd will declare a first and final
dividend on June 16, 2006.
Creditors who have not submitted proofs of claim will be
excluded from any distribution.
Contact: Warren White
Liquidator
Eastern Road Profiling Pty Ltd
c/- PPB Chartered Accountants
Level 10, 90 Collins Street,
Melbourne, Victoria 3000
Australia
E&C BUILDERS: Court to Hear Liquidation Bid on June 19
------------------------------------------------------
An application to put E&C Builders Ltd into liquidation will be
heard before the High Court of Wellington on June 19, 2006, at
10:00 a.m.
The High Court received the application from the Commissioner of
Inland Revenue on April 11, 2006.
Contact: Rachel Laura Roff
Technical and Legal Support Group
Wellington Service Centre,
1/F., New Zealand Post House
7-27 Waterloo Quay, Wellington
New Zealand
Telephone: (04) 890 1116
Facsimile: (04) 890 0009
FIX & CLEAN: Creditors Agree on Voluntary Wind-Up
-------------------------------------------------
On May 11, 2006, members of Fix and Clean Pty Limited agreed to
voluntarily wind up the Company and appoint Samuel Richwol as
liquidator.
Contact: Samuel Richwol
Liquidator
O'Keeffe Walton Richwol
Chartered Accountants, Suite 3
431 Burke Road Glen Iris 3146
Australia
FORTESCUE METALS: Signs Pilbara Iron-Ore Deal with Roche Mining
---------------------------------------------------------------
Fortescue Metals Group Ltd. and Roche Mining entered into an
agreement wherein Roche will develop and mine Fortescue's iron-
ore deposits in the Pilbara region in Western Australia, Mining
Magazine reports.
The two companies have formed the "Pilbara Mining Alliance,"
which will initially focus on developing, building and running
Fortescue' flagship deposits at Cloud Break and Christmas Creak,
Fortescue said in a statement.
Under the alliance, Mining Magazine relates, Roche Mining will
be responsible for mine planning, engineering, site
establishment, pre-production mining and ongoing mining.
Fortescue will provide the equipment for the mine production.
The deal will see Roche manage AU$1.9 billion of Fortescue's
costs over the first five years of operation and move more than
850 Mt of ore.
Last month, Fortescue had appointed WorleyParsons Ltd to manage
the engineering and construction of the Pilbara Project.
However the Company is still seeking funding for the
construction as it plans to begin production in early 2008.
As reported in the Troubled Company Reporter - Asia Pacific on
June 2, 2006, the Australian Government had barred Fortescue
from gaining access to BHP Billiton's Pilbara rail line. The
BHP rail deal would have allowed Fortescue to use its own trains
to cart 60-70 million tonnes of iron ore in the next decade on
BHP's rail line from the small Mindy Mindy deposit to Port
Hedland.
About Fortescue
Headquartered in West Perth, Western Australia, Fortescue Metals
Group Limited -- http://fmgl.com.au/-- is involved in the
exploration of iron ore through a project to mine iron ore in
the Chichester Ranges, in the Pilbara region of Western
Australia and exporting it from Port Hedland.
Fortescue's troubles began when its Chief Executive Officer,
Andrew Forrest, admitted to a AU$500-million blowout on the cost
of port and rail infrastructure in the Pilbara Project because
of price hikes for steel, fuel, construction materials and
contract labor. The Company also disclosed that the hampered
progress brings in the possibility that the Company may not meet
its ore delivery schedule and pushes up costs at resource
developments across Western Australia. In May 2005, the
Australian Stock Exchange pressured Fortescue to explain matters
about the troubled project and to explain how the Company would
be able to dispose of its lower grade order for 95% of the price
obtained by rivals BHP Billiton and Rio Tinto for their top-
quality products. The ASX referred the Fortescue matter to the
Australian Securities and Investments Commission, which recently
commenced a legal action against the Company.
ASIC alleges that Fortescue is engaged in misleading and
deceptive conduct and has failed to comply with its continuous
disclosure obligations when it announced various contracts with
Chinese entities on Aug. 23 and November 5, 2004. In
particular, Fortescue did not disclose that the Chinese parties
had not reached a concluded agreement on fundamental aspects of
the projects and they had merely agreed that they would in the
future jointly develop and agree on the "agreed" matters. ASIC
is seeking civil penalties of up to AU$3 million against
Fortescue.
FUSIONWARE CORPORATION: To Declare Final Dividend on June 28
------------------------------------------------------------
Fusionware Corporation Pty Limited will declare its first and
final dividend on June 28, 2006, for the employees of the
Company.
Employees' debt in respect to the superannuation is obtained
from the Australian Taxation Office.
Contact: S. W. Free
Liquidator
Lawler Partners
Chartered Accountants
763 Hunter Street
Newcastle West, New South Wales 2302
Australia
GRIFFIN MOTOR: Appoints Joint and Several Liquidators
-----------------------------------------------------
During a general meeting among members of the Griffin Motor
Yachts Pty Limited, it was decided that it is appropriate and
necessary for the Company to shut down its operations.
The members also agreed to appoint Schon Condon and Bruce
Gleeson as the Company's liquidators.
Contact: Schon Condon
Bruce Gleeson
Joint Liquidators
Jones Condon Chartered Accountants
Level 1 34 Charles Street
Parramatta, New South Wales
Australia
Telephone:(02) 9893 9499
HEAVEN WHOLESALE: To Declare First and Final Dividend on June 22
----------------------------------------------------------------
R. M. Sutherland, as liquidator for Heaven Wholesale Pty
Limited, will declare a first and final dividend on June 22,
2006.
Creditors who were unable to timely prove their debts are
excluded from any distribution the Company will make.
Contact: R. M. Sutherland
Deed Administrator
Jirsch Sutherland
Chartered Accountants
Level 2, 84 Pitt Street
Sydney, New South Wales, 2000
Telephone: 02 9233 2111
Facsimile: 02 9233 2144
LANDMARK WAREHOUSING: Liquidator to Submit Report on June 22
------------------------------------------------------------
A final meeting among members and creditors of Landmark
Warehousing and Distribution Pty Ltd. will be held on June 22,
2006, at 10:00 a.m.
At the meeting, Liquidator Pino Fiorentino will report on the
Company's wind-up and the manner of disposal of its property.
Contact: Pino Fiorentino
Liquidator
c/o Hamiltons
Chartered Accountants
Level 17, 25 Bligh Street
Sydney, New South Wales 2000
Australia
Telephone:(02) 9232 6611
Facsimile:(02) 9232 6166, DX 1208
MELTEK PTY: Members Agree on Voluntary Wind-up
----------------------------------------------
At a general meeting held on May 12, 2006, members of Meltek Pty
Ltd resolved to voluntarily wind up the Company's operations and
appoint Bruce Robertson as liquidator for the Company.
Contact: Bruce Robertson
Liquidator
53 Marton Crescent, Kings Langley
New South Wales 2147
Australia
RB JENKINS: Creditors to Receive Wind-Up Report on June 23
----------------------------------------------------------
Creditors and members of RB Jenkins Building Services Pty
Limited will convene on June 23, 2006, at 10:00 a.m., to receive
and review Liquidator Danny Vrkic's report regarding the
Company's wind-up and disposal of property.
Contact: Danny Vrkic
Liquidator
Jirsch Sutherland & Co - Wollongong
Level 3, 6 - 8 Regent Street
Wollongong, New South Wales 2500
Australia
Telephone:(02) 4225 2545
Facsimile:(02) 4225 2546
TRACNEY HOLDINGS: Enters Voluntary Liquidation
----------------------------------------------
At a separate meeting, the members and the creditors of Tracney
Holdings Pty Ltd., decided to voluntarily wind-up the Company's
operations and appoint V. R. Dye and N. Giasoumi as joint and
several liquidators.
Contact: V. R. Dye
N. Giasoumi
Joint and Several Liquidators
Dye & Rennie
Chartered Accountants
Suite 8, 260 Auburn Road, Hawthorn 3122
Australia
TURNING COMPANIES: Liquidator Reveals More than $60 Mln in Debts
----------------------------------------------------------------
The Troubled Company Reporter - Asia Pacific previously reported
that on May 5, 2006, the Australian Securities and Investments
Commission obtained orders in the Supreme Court of New South
Wales to appoint a provisional liquidator to three companies
founded by Derek Guise Turner:
1. Turning Investments Pty Limited;
2. Turning Properties Pty Limited; and
3. Turning Holdings Pty Limited.
According to the TCR-AP report, John Melluish, of Ferrier
Hodgson, was named liquidator of the Turning Companies.
In an update, the ASIC relates that on June 9, 2006, Mr.
Melluish filed a report revealing that the Turning Companies are
insolvent, with debts totaling approximately AU$60.5 million.
The ASIC recounts that in 2000, it commenced court proceedings
against Turning Investments, and its director, Mr. Turner, for
having carried on a securities business without a dealer's
license. In November 2000, the court found that Mr. Turner had
breached the fundraising provisions of the Corporations Law and
he was restrained from dealing in securities, carrying on a
futures broking business, and operating an investment advice
business and an unregistered managed investment scheme. The
court also ordered Mr. Turner and Turning Investments to contact
investors and repay any outstanding investments, if requested to
do so by them.
Mr. Turner relocated to the Bahamas in June 2002.
In April 2005, agents of the United States Federal Bureau of
Investigations arrested Mr. Turner in the U.S. The ASIC
reopened its investigation after receiving complaints from
investors in Australia who had invested with Mr. Turner overseas
and assisted the FBI with its inquiries.
In February 2006, Mr. Turner was sentenced in the U.S. to 20
years imprisonment after being found guilty of wire fraud.
Jan Redfern, ASIC's Executive Director of Enforcement, said that
the Commission has "acted to secure all Mr. Turner's remaining
assets in Australia, which will now be available to creditors."
Unfortunately, Mr. Redfern clarifies, the unsecured creditors,
who are primarily investors, will only realize a very small
portion of the funds sent overseas.
The ASIC advise investors to contact Mr. Melluish at (02) 9286
9999, in relation to their investment with any of the Turning
Companies.
WALLUNDRY INVESTMENTS: Members Decide to Close Operations
---------------------------------------------------------
On May 10, 2006, members of Wallundry Investments Pty. Ltd.
convened and decided to wind-up the Company's operations.
John Greer was then appointed as liquidator to oversee the
Company's winding up proceedings.
Contact: John Greer
Liquidator
Level 7, 276 Pitt Street
Sydney, New South Wales
Australia
WELLINGTON APARTMENTS: Liquidation Petition Hearing Set June 19
---------------------------------------------------------------
The Commissioner of Inland Revenue on March 30, 2006, filed
before the High Court of Wellington a petition to liquidate
Wellington Apartments Management Ltd.
The High Court will hear the petition on June 19, 2006, at 10:00
a.m.
Contact: Philip Hugh Brian Latimer
Technical and Legal Support Group
Wellington Service Centre
1/F., New Zealand Post House
7-27 Waterloo Quay, Wellington
New Zealand
Telephone: (04) 890 1028
Facsimile: (04) 890 0009
WELLINGTON COLLEGE: Court to Hear Liquidation Matters on June 26
----------------------------------------------------------------
The Accident Compensation Commission on May 15, 2006, filed
before the High Court of Wellington a petition to liquidate
Wellington College of Languages Ltd.
The Court will hear the said petition on June 26, 2006, at 10:00
in the morning.
Contact: Dianne Lester
Maude & Miller, 2/F
McDonald's Building
Cobham Court, Porirua City
New Zealand
WOLLONGONG ADVANCED: Appoints Liquidator
----------------------------------------
On May 22, 2006, members of Wollongong Advanced Cleaning
Services Pty Limited appointed Danny Vrkic as liquidator to
oversee the Company's wind-up.
Contact: Danny Vrkic
Liquidator
Jirsch Sutherland & Co - Wollongong
Chartered Accountants
Level 3, 6 - 8 Regent Street
Wollongong, New South Wales 2500
Telephone:(02) 4225 2545
Facsimile:(02) 4225 2546
* Australian Wine Industry Battles Grape Oversupply
---------------------------------------------------
The Australian wine industry is experiencing an oversupply of
grapes as it struggles to sell up to one billion liters of wine
kept in storage tanks across the country, Agence France-Presse
reports.
According to AFP, a record output in 2004 and 2005, as well as a
near-record crush this year, have led to the oversupply of wine
that is forcing down prices and pushing producers and growers
into the red.
The Winemakers' Federation of Australia revealed that the
harvest for 2006 stands at 1.85 million tonnes, helped by good
winter rainfall and a favorable summer. The figure is
marginally down from last year's record 1.9 million tonnes, and
similar to the 2004 harvest.
Yet, despite the growth in the export market and a steady
increase in domestic sales, demand cannot keep pace with supply.
Australia has more than 2,000 wineries and is the world's fourth
largest wine exporter behind France, Italy and Spain, the
Department of Foreign Affairs and Trade said.
AFP states that throughout the 1990s, the industry was unable to
keep pace with a growing global demand for so-called "new world"
wines and planted thousands of hectares of vineyards to catch
up. The area under cultivation has more than doubled over the
last 10 years to 154,000 hectares.
However, many believe that overplanting has "tipped the balance
too far," and above average yields for the past three years have
drowned the industry in grapes.
For the year ending May 2006, export volumes grew 10% to a
record 726 million liters, worth AU$2.7 billion dollars,
according to the Australian Wine and Brandy Corporation. Local
drinkers account for about another 430 million liters.
The Wine Grape Growers Council of Australia has called on the
Federal Government last week to help bail out the industry and
compensate growers for not picking their grapes.
However, at an emergency industry summit on June 9, 2006, the
Government rejected pleas for a rescue package and said that
market forces would have to resolve the wine glut.
================================
C H I N A & H O N G K O N G
================================
CHUNG MING: 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 Chung Ming Ltd.
Contact: Stephen Briscoe
5/F., Allied Kajima Building
138 Gloucester Road, Wanchai
Hong Kong
CONVEN CORPORATION: Creditors' Proofs of Debt Due on June 30
------------------------------------------------------------
Liquidator Ou Zhao Ji is receiving proofs of debt from the
creditors of Conven Corporation Ltd until June 30, 2006.
Failure to comply with the requirement will exclude a creditor
from sharing in any distribution the Company will make.
Contact: Ou Zhao Ji
Unit 606-7
Workingfield Commercial Building
408-412 Jaffe Road, Causeway Bay
Hong Kong
KING SHING: Court to Hear Winding-up Bid on June 21
---------------------------------------------------
An application to wind up King Shing Construction Ltd will be
heard before the High Court of Hong Kong on June 21, 2006, at
9:30 a.m.
Mok Wing Kit filed the application before the High Court on
April 21, 2006.
Contact: Betty Chan
For Director of Legal Aid
34th Floor, Hopewell Centre
183 Queen's Road East, Wanchai
Hong Kong
MANDRA FORESTRY: Moody's Downgrades Ratings To B3 From B1
---------------------------------------------------------
Moody's Investors Service, on June 13, 2006, downgraded to B3
from B1 the corporate family rating of Mandra Forestry Holdings
Ltd and the senior unsecured rating of bonds issued by Mandra
Forestry Finance Ltd and guaranteed by Mandra. The rating
action concludes the review for possible downgrade commenced on
March 14, 2006. The outlook for the ratings is negative.
"The downgrade has been prompted by Mandra's much weaker cash
flow generation capability stemming from its slower-than-
expected plantation acquisition schedule. This translates into
a credit profile -- with projected (EBITDDA-Maintenance
Capex)/Interest of around 1x over the next 2 years - which is
more appropriate for a B3 rating when compared to the rated
peers in the region," says Ken Chan, a Moody's AVP/Analyst,
adding, "Liquidity profile of the company remains weak in the
near-term with no back-up bank facilities."
Moody's notes that Mandra has placed US$65 million of deposits
to third parties for its timber trading business. While such
business generates immediate cash flow, the profit margin is
lower than its core plantation business and it exposes the
company to risk of the third parties not returning such deposits
as and when required by Mandra.
Moody's also believes Mandra faces higher execution risk because
its revised plantation acquisition plan involves significant
purchases outside the originally targeted cities in Anhui
Province. These new purchases require the support of local
counties and forestry bureaus, while acquisitions of state-owned
tree farms must also go through a more time-consuming auction
process. Such risk is partially mitigated by the new management
team that was put in place in 1Q06, and has since revamped
Mandra's plantation acquisition capability.
The negative outlook reflects Moody's view of the revised
business model's execution risk and, as such, the possibility
that Mandra will prove unable to comply with its bond covenants
-- complete acquisition of timber ownership rights for at least
140,000ha of commercial forestry plantation by May 2007 -- such
that the remaining amounts in the offshore proceeds and security
accounts will be required to repurchase the bonds at 100% of
their principal value.
The possibility of a rating upgrade is remote, given the current
negative outlook. But, the outlook could stabilize on:
(1) the successful execution of its revised plan and which
would obviate the need for a mandatory offer to
repurchase its bonds;
(2) the improvement in liquidity profile by securing back-up
bank facilities or improving its balance sheet liquidity;
and
(3) strengthening cash generation capability, such that
(EBITDDA-Maintenance Capex)/Interest of around 1.0-1.2x
emerges.
On the other hand, the rating could undergo downward pressure
if:
* Mandra fails to acquire the plantations and secure land-use
rights according to its revised plan, such that the company
needs to make an offer to repurchase its bonds; or
* the company fails to generate cash flow for debt servicing,
such that (EBITDDA-Maintenance Capex)/Interest falls below
1x.
Mandra Forestry Holdings Ltd is a holding company in which
Mandra Capital holds 75%, Sino-Forest 15% and Morgan Stanley
10%. It engages in forestry plantation activities in China's
Anhui and surrounding provinces.
SOUNDTEX INTERNATIONAL: Creditors Meeting Set on July 4
-------------------------------------------------------
Creditors of Soundtex International Ltd will meet on July 4,
2006, 3:00 p.m. at Suites 1801 & 1802, Alliance Building, 130-
136 Connaught Road Central, Hong Kong.
During the meeting, members will be asked to:
-- receive and consider a statement of the position in the
Company's affairs together with a list of creditors and
their estimated claims;
-- appoint a liquidator for the purpose of winding up of
the Compan; and
-- fix remuneration of the liquidator.
SUN KWONG: Faces Winding-up Proceedings
---------------------------------------
An application to wind up Sun Kwong Engineering Co Ltd will be
heard before the High Court of Hong Kong on June 21, 2006, at
9:30 a.m.
Cheung Wan Wah filed the application before the High Court on
April 26, 2006.
Contact: Betty Chan
For Director of Legal Aid
34th Floor, Hopewell Centre
183 Queen's Road East, Wanchai
Hong Kong
SYMPHONY LIMITED: Court to Hear Wind-up Petition on July 19
-----------------------------------------------------------
The High Court of Hong Kong on May 22, 2006, received an
application to liquidate Symphony (H.K.) Ltd from Beautiful
Diamonds Ltd.
The High Court will hear the said application on July 19, 2006,
at 9:30 in the morning.
Contact: Jal N. Karbhari & Co
Solicitors for the Petitioner
15th Floor, Kincheng Commercial Centre
No.2 Carnarvon Road, Tsimshatsui
Hong Kong
TOP STAR: Creditors and Contributories Meetings Fixed June 28
-------------------------------------------------------------
Creditors and contributories of Top Star Garment Ltd will
convene for their first meetings on June 28, 2006, at 10:30 p.m.
and 11:30 p.m. respectively.
The meetings will be held at Auditorium, Duke of Windsor Social
Service Building, G/F., No. 15 Hennessy Road, Wanchai, Hong
Kong.
WATERCORE LIMITED: Meeting of Members and Creditors Set July 10
---------------------------------------------------------------
Members and creditors of Watercore Limited will convene for
their final meeting on July 10, 2006 at 10:00 a.m. at Room 404,
Hong Kong Exhibition Centre, China Resources Building, 26
Harbour Road, Wanchai, Hong Kong.
At the meeting, liquidator Lo Kwok Hung will present final
accounts of the Company's wind-up exercise.
Contact: Lo Kwok Hung
Liquidator
Suites 1801 & 1802
Alliance Building
130-136 Connaught Road Central
Hong Kong
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INDIA CEMENTS: Results Back to Black in Fourth Quarter
------------------------------------------------------
India Cements Limited filed on June 13, 2006, its audited
financial results for the fourth quarter and for the year ended
March 31, 2006.
The Company has posted a net profit of INR270.3 million for the
quarter ended March 31, 2006, as compared to INR737.20 million
for the quarter ended March 31, 2005. Total income has
increased from INR3361.50 million in the same period last year
to INR4245.60 million for the period under review.
The Company has posted a net profit of INR453.1 million for the
year ended March 31, 2006, as compared to INR45.80 million for
the previous fiscal year. Total income has increased from
INR11790.5 million in FY2004-05 to INR1549 million for FY2005-
06.
India Cements and its related companies have posted a
consolidated net profit of INR427.3 million for the year ended
March 31, 2006, as against a net loss of INR4.2 million for the
year ended March 31, 2005. The Group's total income has
increased from INR11835.7 million in FY2004-05 to INR15526.9
million in FY2005-06.
Meanwhile, the Company's board of directors has decided, subject
to the approval of shareholders and other appropriate
authorities, to grant a total of 15,00,000 options under its
Employee Stock Option Scheme to the eligible employees as
determined by the Compensation Committee of the Board entitling
the grantees to subscribe for an aggregate of 15,00,000 equity
shares of INR10 each fully paid up on payment of INR50 per
share, including premium and other terms, as per the prevailing
regulations prescribed by the Securities and Exchange Board of
India, Government of India, and any other relevant authority.
Furthermore, the Company has informed that the Register of
Members and Share Transfer Books of the Company will remain
closed from August 1-7, 2006, for the purpose of the Annual
General Meeting of the Company to be held on August 7, 2006.
About India Cements
Headquartered in Chennai, India, India Cements Limited --
http://www.indiacements.co.in/-- manufactures and markets
cement under the brand name Coromandel cement. The Company was
established in 1946 and the first plant was set up at
Sankarnagar in Tamilnadu in 1949. Since then, it has grown in
stature to seven plants spread over Tamilnadu and Andhra
Pradesh.
The Company was prompted to undertake debt restructuring plans
in 2003. The Company reduced interest costs, improved capacity
utilization, implemented voluntary retirement schemes and raised
equity. All these initiatives helped the firm bring down its
debt under the corporate debt restructuring program from
INR1,700 crore to the current INR400 crore.
The Troubled Company Reporter - Asia Pacific reported on Mar. 8,
2006, that India Cements has successfully reduced its workforce
by 1,400 since it started its revival program. The job cuts are
part of the Company's continuing corporate debt restructuring.
JIK INDUSTRIES: Unveils Extraordinary General Meeting Results
-------------------------------------------------------------
JIK Industries Limited held its Extraordinary General Meeting on
June 10, 2006.
During the meeting, members accorded:
-- authority to the board of directors to offer, issue and
allot up to 3,00,00,000 or more equity shares at the
price to be determined as per Securities and Exchange
Board of India Guidelines for preferential allotment to
the Company's promoters and associates on such terms and
conditions as may be decided and deemed appropriate by
the Board, subject to necessary approvals and
provisions;
-- authority to the Board to offer, issue and allot fully
paid up equity or preference shares at the price to be
determined as per SEBI Guidelines for preferential
allotment to the CDR member banks and financial
institutions in lieu of their debts as mentioned in the
corporate debt restructuring package and on such terms
and conditions as may be decided and deemed appropriate
by the Board, subject to necessary approvals and
provisions;
-- the appointment of Shri. Rajendra G Parikh as managing
director for a period of five years from April 1, 2006,
and on remuneration, terms and conditions, subject to
necessary approvals and provisions;
-- authority to the Board for issue and allotment of equity
shares to the promoters strategic investors and
associates up to such an extent so that their
consolidated holding may be raised to the minimum 51%
and more subject to the stipulation and direction of the
Board for Industrial and Financial Reconstruction, of
the total paid up capital of Company arrived at after
implementation of the Scheme of Arrangement entered into
between the Company and its scheme creditors specified,
approved CDR Package and allotment of shares to CDR
members;
-- an increase in the Company's existing authorized share
capital of INR57,00,00,000 divided into 50,00,00,000
equity shares of INR1 each and 7,00,000 preference
shares of INR100 each be and to INR153,00,00,000 divided
into 150,00,00,000 equity shares of INR1 each and
3,00,000 preference Shares of INR100 each and
consequential amendment in the Company's Memorandum and
Articles of Association.
About JIK Industries
Headquartered in Mumbai, India, JIK Industries Limited --
http://www.jikindustriesltd.com/-- manufactures handmade non-
lead crystalware segment and is the only organized player in the
country. JIK has had over seven years of experience in
manufacturing and marketing crystal. Its products include
crystal glassware such as, glass tumblers, bowls, stemware,
showpieces, vases, etc, manufactured at Balkum, Thane,
Maharashtra. The company had collapsed following accidents at
its chemical waste recycling plant and at its crystal-making
unit. The Company, which had diversified interests -- crystal
making, money changing and chemical waste recycling -- was
forced to exit the money changing business after its net worth
was eroded. Under the Reserve Bank of India stipulations
companies whose net worth was eroded were not allowed to
continue in the money changing business.
On April 17, 2006, the Corporate Debt Restructuring Committee
has approved JIK's debt-restructuring package. The CDR package
has entitled the Company to a INR105-million debt waiver, in
addition to the reduction in loan interest rate to 9% and FITL
interest rate to 6%. The package allowed the Company to
complete the major part of its debt and business restructuring.
So far, the Company's chemical division is shelved closed and
discontinued as whole. Post restructuring, the Company will
remove and reduce approximately 48% of outstanding debt and
increase Share Capital and Network.
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I N D O N E S I A
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PERUSAHAAN LISTRIK: Expects To Post FY05 IDR4.9-Trillion Loss
-------------------------------------------------------------
State-owned PT Perusahaan Listrik Negara is expected to post a
net loss of IDR4.9 trillion for the business year 2005, Antara
News relates, citing State Enterprises Minister Sugiharto.
According to the Office of the Minister of State Enterprises, a
total of 108 state-owned firms posted a combined profit of
IDR40.68 billion in 2005 against 114 firms posting a net profit
of IDR37.7 trillion in 2004. On the other hand, 31 state
companies booked net losses totaling IDR6.11 trillion in 2005,
compared to 27 firms that suffered IDR4.8 trillion in losses in
2004.
The Jakarta Post says state-owned firms accounted for
IDR12.7 trillion of dividend payments for last year's budget,
and are expected to contribute up to IDR23.2 trillion in 2006.
* * *
Indonesian state utility firm PT Perusahaan Listrik Negara --
http://www.pln.co.id/-- transmits and distributes electricity
to around 30 million customers, roughly 60% of Indonesia's
population. The Indonesian Government decided to end PLN's
power supply monopoly to attract independents to build more
capacity for sale directly to consumers, as many areas of the
country are experiencing power shortages. PLN posted a IDR4.92-
trillion net loss in 2005, against a net loss of IDR2.02
trillion in 2004.
The Company received IDR12.51 trillion in subsidies from the
Government last year, almost four times the IDR3.47 trillion in
2004.
The Troubled Company Reporter - Asia Pacific reported on
April 5, 2006, that Perusahaan Listrik is once again under
investigation by the Indonesian National Police for corruption,
connected to equipment price mark-ups and irregular contract
tendering procedures at a gas-fired power plant in Bekasi. This
after being subjected to a probe on an alleged price mark-up of
three generators purchased in 2004. A further report on May 5,
2006, stated that PLN president Eddie Widiono was arrested on
allegations that he had marked up the funds used to buy an
MD2500 generator for an electricity project in Borang regency in
South Sumatra in 2004, which made the state suffer a IDR122-
billion loss.
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J A P A N
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TOSHIBA MACHINE: Moody's to Review Ba1 Rating for Upgrade
---------------------------------------------------------
Moody's Investors Service has on June 9, 2006, placed Toshiba
Machine Co., Ltd.'s Ba1 issuer rating under review for possible
upgrade, seeing that the Company is likely to continue improving
its earnings stability and capital structure over the
intermediate term.
Toshiba Machine shifted its resources to product high-growth
segments with profit margin potential and implemented
(intensive) fixed-cost reductions, thus improving and
stabilizing profitability and cash flow generation; it also used
cash flow to strengthen its capital structure. The Company
posted some 10% operating profit margins in the last two fiscal
years, and its total debt to total capitalization ratio improved
to 37% as of March 31, 2006, from 55% as of March 31, 2004.
Toshiba Machine is currently focusing its resources on products
for growing industries, such as IT, semiconductor-related
fields, automobiles and nanotechnologies. Despite the more or
less cyclical demand from these, current demand remains strong,
with an increasing number of back-orders. Moody's expects that
the Company will use generated cash flow to further reduce debt
and improve its capital structure. The rating review will
(address) the Company's ability to maintain and enhance its
profit margins and the cash flow from its product portfolio, and
will focus on its financial strategy to further improve its
capital structure.
Headquartered in Shizuoka, Japan, Toshiba Machine Co., Ltd. is
one of the world's leading manufacturers of molding equipment
and machine tools.
* Moody's Gives Major Banks Stable to Positive Ratings Outlook
--------------------------------------------------------------
The outlook for financial strength ratings of the rated universe
of Japanese major banks in 2006 is stable to positive, comments
Moody's Investors Service in a new report, "2006 Banking System
Outlook: Japan Major Banks".
"Moody's has upgraded a large number of Japanese major banks'
BFSRs, with the average BFSR among major banks having improved
from D- to D+ in the past two years. These upgrades reflect
substantially reduced burdens from credit expenses, consequent
decreases of non-performing loans, disappearance of equity-
related losses and accelerated retention of solid internally
generated earnings.
Major Japanese banks' fundamentals have turned to a positive
cycle, where reduced balance sheet costs partly due to improved
external environment will enable the banks to accumulate
internal capital rapidly to sustain possible strategic
acquisitions or reduce their large government-held preferred
shares," explains Moody's.
"For the period ending March 2006, major banks reported
substantial turnaround in their net profits," explains Moody's.
"Economic and asset deflation have hit bottom, with reduced
downward pressure on the quality of banks' loan portfolios."
The report also notes that "after continuing these repayments in
2005, all megabanks will likely to repay all of those government
preferred shares during 2006."
Moody's said that, "However, the implementation of risk-adjusted
pricing for corporate credits has not succeeded, as a result of
continued weakness in financing requirements, ongoing
competition for bankable credits and the limited number of
strategic alternatives available for Japanese banks." The
report also pointed that, "Japanese banks are facing the
challenges of raising revenues and margins under a highly liquid
monetary environment, where banking system deposits exceed
demand for banking system retail and wholesale loans."
Moody's notes that "While Basel II will institutionalize a risk-
and economic-cycle-sensitive approach to the Japanese banks'
business management, given their inability to charge risk-
adjusted margins, management will be challenged when the banks
face another economic down-cycle."
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K O R E A
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DAEWOO ENGINEERING: Five Groups Submit Final Bids
-------------------------------------------------
Five groups submitted final bids for Daewoo Engineering &
Construction Co. on June 9, 2006, The Wall Street Journal
reports.
According to press reports, the five consortia are:
1. Kumho Asiana Group;
2. Doosan Group;
3. Eugene Group;
4. Prime Group; and
5. Samwhan Group.
WSJ's Shin Jung-Won relates that the sale of Daewoo Engineering
will be one of Korea's largest acquisition deals and the first
major merger-and-acquisition deal in the domestic construction
sector.
Mr. Shin says that the sale of Daewoo Engineering marks the
latest chapter in the planned sales of former affiliates of the
now-defunct Daewoo Group, including Daewoo Electronics, Daewoo
Precision Industries Co. and Daewoo Shipbuilding & Marine
Engineering, led by main creditor Korea Asset Management Corp.
The Korea Times relates that Kumho Asiana Group joined hands
with its financial consultant, JPMorgan, and attracted investors
both at home and abroad to engage in the bidding competition.
On the other hand, Doosan Group, with Doosan Heavy Industries &
Construction and Doosan Industrial Development, says that it
will raise funds by issuing a repayment of preferred shares at
any given time.
Moreover, Korea Times states that Shinhan and Hana Bank have
known to have partnered with Eugene Group as financial
investors. Eugene's affiliate, Korea Cement Co., received a
bank loan worth up to KRW28.5 billion in preparation for the
bidding process.
Daewoo Engineering's employee stock ownership association teamed
up with Prime Group and submitted a bid. Samsung Securities and
Citigroup Global Markets Korea Securities are managing the sale.
Korea Times cites the association as saying that since the two
sides saw eye-to-eye on employment security, interest values and
mutual cooperation, they applied for a joint bid for Daewoo
Engineering. The association also plans to come up with
KRW300 billion by acquiring loans from financial organizations
for the tender, while Prime Group has already set up a
consortium consisting of Woori Bank, National Agricultural
Cooperative Federation and several construction companies in
Korea.
Meanwhile, Samwhan Group, according to Korea Times, obtained a
KRW300 billion loan from the Korea Exchange Bank and plans to
acquire additional funds.
KAMCO, which holds a 44% stake in Daewoo Engineering will screen
whether the bidders have any experience in mergers and
acquisitions and in operating a construction company.
According to WSJ, Daewoo Engineering's creditors, which
collectively own a 71.1% stake, plan to sell between 50% and
71.1% of the Company.
Yonhap News relates that Daewoo Engineering was bailed out by
its creditors following the 1997-98 Asian financial crisis.
The WSJ report notes that Kamco did not provide further details
on the sale, such as the size of the bids, but based on June 8's
closing price of KRW12,450 a share, the deal will be valued at
between KRW2.11 trillion and KRW3 trillion, or between
US$2.2 billion and US$3.1 billion, depending on the size of the
stake to be sold.
Korea Times explains that the Public Fund Oversight Committee,
under the wing of the Ministry of Finance and Economy, has drawn
up three main areas of evaluations: (i) billing price, (ii)
management skills and (iii) synergy effects.
KAMCO will select the final two preferred bidders by June 23,
2006, after reviewing the report by the committee. The two will
then make an official survey on the take-over of Daewoo
Engineering in July.
The successful bidder, according to Korea Times, will sign the
M&A contract in August 2006.
Headquartered in Seoul, South Korea, Daewoo Engineering &
Construction Co. -- http://www.daewooenc.com/-- has become a
world leader in civil engineering, housing construction, power
and industrial plant development, architectural services, and
construction of liquid natural gas facilities. In addition to
large-scale domestic projects, Daewoo has more recently built
gas plants in Nigeria, a hospital in Libya, and the Trump World
Tower in New York, to name a few. Daewoo Engineering is one of
several Daewoo units that initially survived the 1999 collapse
of the conglomerate Daewoo Group under US$80 billion of debts in
South Korea's largest corporate bankruptcy. In early 2004,
Daewoo Engineering's largest shareholder, the Korea Asset
Management Company, announced a proposed auction of the
construction firm. Daewoo Engineering is the latest part of the
bankrupt Daewoo business empire to be sold. KAMCO's 46% stake
in the Company had been estimated to fetch about KRW800 billion
(US$677 million). The Company has since become a potential
acquisition target in 2006.
HYUNDAI MOTOR: Kia President is Safe From Indictment
----------------------------------------------------
South Korean prosecutors have decided not to indict Chung Eui-
sun, president of Kia Motors Co., over his alleged involvement
in a slush fund scandal surrounding Kia's sister-company,
Hyundai Motor Co., Asia Pulse reports.
The Standard points out that Kia Motor's president is the son of
Hyundai Motor Group's chairman, Chung Mong Koo, who was arrested
in late April 2006 and is on trial on charges of embezzling
company funds.
According to previous reports by the Troubled Company Reporter -
Asia Pacific, the elder Chung is charged of embezzling
about US$106 million since 2002 to create a slush fund used to
bribe banks and government officials, as well as of incurring
about US$320 million in damages to Hyundai. The prosecution had
also claimed that Chairman Chung attempted to transfer
managerial control of Hyundai and its affiliates to his only
son, Eui-sun, through a dubious power transfer scheme.
Asia Pulse cites top prosecution official Chae Dong-wook as
telling reporters that, "[g]iven [Hyundai] Chairman Chung was
arrested, it's harsh to force a father and son to stand trial
together." Mr. Chae said that prosecutors suspended the younger
Chung's indictment in consideration of concerns regarding a
further management vacuum at Hyundai Motors.
"We decided not to indict Chung Eui Sun because, from a legal
point of view, Chung Mong Koo has final responsibility," The
Standard also quotes Kang Chan Woo, a spokesman for the Supreme
Prosecutors' Office in Seoul, as stating.
Pro-business activists had stepped up demands that the
prosecution stop expanding its investigation into Hyundai
Motors, South Korea's largest automaker, and its affiliates,
arguing that it will have a negative effect on the national
economy.
The TCR-AP reported on June 2, 2006, that Kia agents across 24
countries contended that the probe into the Hyundai Group over
its involvement in the slush fund scandal is hurting the sales
and image of the automobile brand. Moreover, some 25,000 Kia
officials in the United States expressed concern over Chairman
Chung's absence and asked for an immediate resolution of the
issue so that Hyundai can grow further in the American market.
According to the TCR-AP, overseas dealers of Kia Motors filed a
petition with the Seoul District Court on May 31, 2006,
requesting Chairman Chung Mong-koo's release.
In 1998, Hyundai Motor acquired the then debt-ridden Kia Motors,
which is now Korea's second-largest automaker.
Asia Pulse relates that on June 9, 2006, the prosecution also
indicted three top Hyundai Motors officials without physical
restraint in connection with the case.
Prosecutors said that they had earlier planned to indict 10
Hyundai Motors officials.
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
===============
AKTIF LIFESTYLE: Bourse Begins Delisting Procedures
---------------------------------------------------
Bursa Malaysia Securities Berhad, on June 8, 2006, commenced
delisting procedures against Aktif Lifestyle Corp -- a Practice
Note 10 company, Business Times reports.
In a statement, Bursa Securities said that Aktif has failed to
ensure that its level of operations is adequate in accordance to
listing requirements.
It also said that Aktif has been served with a notice to make
representations to Bursa Securities, within five market days
from the date of the receipt of the notice, as to why its
securities should not be delisted.
About Aktif Lifestyle Corporation Berhad
Headquartered in Kuala Lumpur, Malaysia, Aktif Lifestyle
Corporation Berhad's principal activities is the operation of
specialty retail stores. Other activity includes investment
holding. The Company has defaulted on several loan facilities
and incurred continuous losses. It embarked on various
corporate exercises aimed at regularizing its financial
condition. Last year, the Company presented a proposed
restructuring scheme, which did not win the Securities
Commission's favor due to uncertainty in assets valuation and
concerns on corporate governance issues. An appeal to SC to
review its decision on the Proposed Restructuring Scheme was
already submitted. The Proposed Restructuring Scheme, if
successfully implemented will have the new listed Group be
involved in the business of quarrying, manufacturing, trading of
granite products as well as the supply and installation of
marble and granite related products.
AVANGARDE RESOURCES: Managing Director Sees Turnaround in Oct.
--------------------------------------------------------------
Avangarde Resources Berhad, which is under Practice Note 17 of
Bursa Malaysia Securities Berhad's Listing Requirements, will
get things in order by October 2006, The Edge Daily relates,
citing the Company's managing director Tamunif Mokhtar.
Mr. Tamunif told The Edge that Avangarde was working with third-
party developers and was stepping up efforts to bag new projects
from the private sector.
For the financial years ended Dec. 31, 2003, and 2004, Avangarde
posted net losses of MYR127.43 million and MYR14.95 million,
respectively, mainly due to provision for doubtful debts and
writing off of bad debts and amount due from contract customers.
Mr. Tamunif said that the Company would issue its audited
financial statements for FY05, which was due on April 30, 2006,
by October this year.
the Troubled Company Reporter - Asia Pacific recounts that the
Avangarde group is in the process of embarking on a scheme of
restructuring to improve its financial conditions.
Regarding the MYR140 million of debts it needed to recover, the
Company had not managed to collect any of the debts, The Edge
says. It was reported earlier this year that Avangarde would
hire professional debt collectors to recover the debts owed by
20 firms.
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.
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.
MALAYSIA AIRLINES: Sarawak Would Assist Troubled Staff
------------------------------------------------------
Sarawak is willing to support more than 500 Malaysia Airlines
employees, who could lose their jobs following rationalization
of the carrier's domestic routes, Borneo Bulletin says.
Sarawak's deputy chief minister Tan Sri Dr. George Chan told the
Bulletin that the Government vowed to help Malaysia Airlines'
workers -- particularly Sarawakians -- following an appeal by
the Airlines' Workers' Union of Sarawak.
However, Mr. Chan said that the Government will only intervene
after Malaysia Airlines has finished sorting out the matter.
Mr. Chan told the Bulletin that the Government will provide
assistance to displaced workers or place them in whatever areas
they are good at. Mr. Chan added that he would bring the matter
for discussion at the weekly state cabinet meeting as soon as
there was a formal request from the union for help.
On the laying off of the workers through the Mutual Separation
Scheme, Mr. Chan said that the move should not be rushed, as it
could jeopardize the livelihood of the people who needed time to
find new employment.
As reported by the Troubled Company Reporter - Asia Pacific on
June 12, 2006, Malaysia Airlines received a total of 4,200
applications for its mutual separation scheme, which closed on
June 7, 2006.
The redundancy package, which was offered to over 18,000
permanent and confirmed Malaysian employees worldwide, is part
of Malaysia Airlines' business turnaround plan to transform
itself into a profitable company, the TCR-AP said.
About Malaysia Airlines
Headquartered in Selangor, Malaysia, Malaysia Airlines
-- http://www.malaysiaairlines.com/-- services domestic and
international flights. Its global network comprised 32 domestic
and 86 international destinations. Of the 86 international
destinations, 17 were operated in collaboration with our airline
partners.
The carrier made a loss after tax of MYR1.3 billion for fiscal
year 2005, and MYR616 million for the nine-month ended Dec. 31,
2005, due to high fuel and operating costs, and unprofitable
routes. In late February 2006, it unveiled a radical rescue
plan to raise MYR4 billion in order to stay afloat and return to
profitability by 2007. Under the restructuring plan, the
airline pledged to cut its budget by 20% across the board,
terminate many unprofitable routes, freeze recruitment except
for front-line staff, crack down on corruption by encouraging
Whistle-blowing and stop corporate sponsorship.
Malaysia Airlines posted a pre-tax loss of MYR309.118 million
for the first quarter ended March 31, 2006, as against a pre-tax
profit of MYR112.017 million in the same quarter of 2005. The
Company's balance sheet as of March 31, 2006, showed strained
liquidity with total current assets of MYR3,328,129,000
available to pay MYR4,913,488,000 in total current liabilities
due in the next 12 months.
PROTON HOLDINGS: Prepares to Unveil New SRM on June 16
------------------------------------------------------
Proton Holdings Berhad will introduce a new model to replace the
two-door compact car, Satria, on June 16, 2006, The Edge Daily
reveals. This will be the Company's first new launch since a
year ago.
A source told The Edge that the Satria replacement model, or
SRM, was named Neon. It will have a Campro engine with capacity
of 1.3 liter and 1.6 liter. The new model is expected to help
shore up its market share.
Auto enthusiasts have been waiting for the SRM project for about
two years, The Edge says. However, Proton has delayed its
launch date for almost a year, despite earlier talk that it was
to unveil the model shortly after the "Savvy" model was
introduced in June last year.
Proton has been under intense scrutiny and facing fierce
competition from local and foreign rivals that snatched Proton's
market share through various launches of new models, the report
says.
According to The Edge, Proton has been criticized for being slow
in coming up with new models. As a result, its market share is
declining, thus benefiting competitors, especially Perodua with
MyVi's waiting list a few months long.
The Troubled Company Reporter - Asia Pacific recounts that
Proton's market share fell to 30% in April.
About Proton Holdings
Headquartered in Selangor Darul Ehsan, Malaysia, Perusahaan
Otomobil Nasional Berhad or Proton Holdings Berhad --
http://www.proton-edar.com.my/-- is engaged in manufacturing,
assembling, trading and provision of engineering and other
services in respect of motor vehicles and related products. Its
other activities include property development, trading of steel
and related products, engine and technologies research,
development of automotive related technologies, investment
holding, importation and distribution of motor vehicles, related
spare parts and accessories, holds intellectual property,
provides engineering consultancy, operates single make race
series and carries out specific engineering contracts. The
Group's operations are carried out in Malaysia, England,
Australia, Socialist Republic of Vietnam and the United States
of America.
Proton was reported to be among Malaysia's worst-performing
companies in 2005, after competition from foreign carmakers and
a lack of new models lost the firm local market share and
subsequently led it into a loss. It has since brought in a new
chief, sold its loss-making MV Agusta motorbike firm and pledged
to find a new technology partner. The Company has been under
increasing pressure, with its share of domestic sales falling to
44% from 75% over the past decade.
The Troubled Company Reporter - Asia Pacific reported on May 4,
2006, that Proton was expected to finalize a recovery plan and
seal an alliance with a strategic partner by the end of this
year.
=====================
P H I L I P P I N E S
=====================
BENPRES HOLDINGS: Will Pay $200 Million in Debts Via Asset Sale
---------------------------------------------------------------
Benpres Holdings Corp. offered to pay US$200 million of its debt
to creditors by offering them shares or proceeds of the sale of
its cable television, phone and toll-road assets, Bloomberg News
relates.
Bloomberg cites Benpres President Angel Ong as saying at the
Company's annual stockholders' meeting on June 9, 2006, that the
Benpres had offered to pay its debt over a 10-year period with
dividends from its power and television units. Ms. Ong added
that the Company hopes to agree with creditors before the next
annual stockholders' meeting.
The Company had sought to reorganize its debt to creditors since
2002.
Benpres Holdings plans to sell its 49% stake in unit First
Philippine Infrastructure Development Corp. and less than 5%
stake in its phone subsidiary Digital Telecommunications
Philippines, Inc., in order to raise US$140 million. The
Company would also sell its shareholdings in Bayan
Telecommunications, Inc., and Beyond Cable Holdings, Inc.
Bloomberg states that the Company said it will earn
PHP15 billion in dividends from its power generation unit First
Philippine Holdings Corp. and media unit ABS-CBN Broadcasting
Corp.
Ms. Ong notes that creditors are slated to complete due
diligence this month, and negotiations will start in the third
quarter this year.
Benpres Chairman Oscar Lopez said that increased sales in its
real estate and toll-road (ventures) would enable them to pay
dividends to the Company starting this year.
* * *
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: Government OKs Plant Reopening for Test Run
-------------------------------------------------------------
The Philippine Government has allowed Lafayette Philippines,
Inc., to reopen its copper-zinc mine located in Rapu-Rapu
Island, Albay, for 30 days to conduct a test run in order to
determine whether it is ready to resume operations, Reuters News
reports.
The Troubled Company Reporter - Asia Pacific reported on
Nov. 14, 2005, that Lafayette Philippines had suspended its
operations due to two spill incidents from its gold, copper and
zinc mine in Rapu-Rapu, which polluted a nearby river. The
Department of Environment and Natural Resources issued a cease-
and-desist order against the Company, prohibiting it from
discharging wastewater into the environment. The Government
then created the Rapu-Rapu Fact Finding Commission in March 2006
to investigate the spills and "evaluate all the facts and
circumstances surrounding the alleged threat to people's health
and environmental safety" and to submit a report before the mine
could be reopened.
In a report by the Philippine Star, the DENR said that the
spills, which were due to human error and operational and
technical blunders, could have been prevented.
The Manila Bulletin notes that, according to DENR Secretary
Angelo Reyes, Lafayette could resume its operations immediately,
under stringent conditions.
The Philippine Government requires the Company to put up an
escrow deposit worth PHP10.7 million before it would lift a stay
order on its Rapu-Rapu mine operations, which were suspended
last year.
The Philippine Inquirer relates that the Government also set
conditions that Lafayette must comply with before it could
conduct its test run:
-- The Company must extend the validity of its surety bond
and install a storm drainage canal to prevent tailings
from spilling over the dam in case of heavy rains;
-- The Company must put up dam monitoring instruments and
emergency control mechanisms to prevent or lessen damage
during the test run; and
-- The test run must be open to the public, and Lafayette
must [commission] independent experts to observe the test
run.
Moreover, the Company must submit a final mine decommissioning
and rehabilitation plan by December this year, and deposit half
of the budget for the plan within six months of its approval.
The Company must also sample the water and its tailings
regularly after the test run.
Lafayette Philippines hailed the Government's decision,
expressing confidence that its repairs would pass inspection,
and it planned to seek approval to resume full operations after
the results of the test run and the inspections.
* * *
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 in 2005 when the Company's mine tailings were
accidentally spilled into the Albay Gulf last October, killing
thousands of fish and destroying the livelihood of fishermen in
the area. The Company was also fined PHP10.7 million for
violating the Clean Water Act and its environmental compliance
certificate.
MRC ALLIED: First Quarter Net Loss Increases on Interest Expense
----------------------------------------------------------------
MRC Allied Industries, Inc., posted a PHP8.32-million net loss
for the quarter ended March 31, 2006, a PHP0.43 million or 5.45%
increase from the PHP7.89-million net loss for the corresponding
quarter in 2005.
Net losses for the first quarters of 2006 and 2005 was mainly
interest expenses on bank loans -- PHP5.83 million and
PHP5.77 million, respectively -- resulting to an increase of
accounts payable and other liabilities from PHP363.10 million in
2005 to PHP391.23 million in 2006.
Operating expenses increased due to payment of annual
maintenance fees.
MRC Allied also reported a consolidated deficit of
PHP732.43 million as of March 31, 2006, and PHP724.11 million as
of December 31, 2005.
Because of financial difficulties, the Company was unable to
meet its principal and interest amortization and has
substantially reduced its development activities.
The Company still provides transportation services and
distribution of water to locators and nearby residents. Income
derived from these is used to cover some daily expenses.
MRC Allied's report for the first quarter of 2006 shows these
key figures:
MRC Allied Industries, Inc.
Financial Highlights
(in PHP millions)
As of As of
03/31/2006 12/31/2005
---------- ----------
Total Assets 625.42 625.15
Total Liabilities 565.35 556.76
Total Equity 60.07 68.39
Quarter Ending
03/31/2006 03/31/2005
---------- ----------
Net Loss 8.32 7.89
Revenues 0.03 0.22
Expense 8.32 7.89
The Company's financial report for the quarter ended March 31,
2006, is available for free at:
http://bankrupt.com/misc/MRC_17Q_Mar2006.pdf
Debt Default
MRC Allied obtained loans from local banks with interest at
prevailing market rates that amounted to PHP145.02 million as of
March 31, 2006. The loans are collateralized by a mortgage on a
portion of the Company's real estate projects. Because of
financial difficulties, the Company was unable to meet the
principal and interest amortizations on these loans.
Accordingly, the loans are currently due.
Except for mention of continued negotiations between the Company
and creditor-banks on the restructuring of the loans, no further
information is available.
Debt to Equity Ratio
The Company's debt-to-equity ratio for the first quarter of 2006
stands at 9.42:1, much higher than the 8.14:1 ratio it had for
the same quarter in 2005.
About MRC Allied Industries
MRC Allied Industries, Inc., formerly known as Makilala Rubber
Corporation, was initially engaged in the processing and export
of baled natural rubber. In 1993, MRC diversified into the
property development business, particularly in industrial estate
and township development.
At present, the Company is concentrating on its two main
projects, the New Cebu Township One in Naga, Cebu, and the
Amihan Woodlands Township in Leyte. Phase One of the New Cebu
Township One, a Philippine Economic Zone Authority- approved
Special EconomiZone in Naga, Cebu, consisting of 123 hectares,
has been developed and is available for sale to investor-
locators.
MRC is also developing 2,312-hectare Amihan Woodlands Township
in San Isidro, Leyte which was proclaimed as another special
Economic Zone by the Office of the President in Malacanang. It
is billed as the Philippines' largest eco-tourism project with
Special Economic Zone status. This project is being developed
as a township based on tourism and incorporating a business park
for non-polluting light industries
The Company continues to explore various investment
opportunities. However, given the present economic conditions,
particularly with respect to increasing fuel and power costs and
uncertainties in the tax system of the government, the Company
has been very prudent on its investment decisions.
Going Concern Doubt
After auditing MRC Allied's 2005 annual report, Emmanuel V.
Clarino of Sycip Gorres Velayo & Co. expressed a significant
doubt on the Company's ability to continue as a going concern.
Mr. Clarino pointed out that:
* The Company and its subsidiary incurred net losses of
PHP35.2 million and PHP34.8 million for the years ended
December 31, 2005, and 2004, resulting in a deficit of
PHP724.1 million and PHP688.9 million as of December 31,
2005, and 2004, because it has substantially reduced its
development activities; and,
* The Company was also unable to pay principal and interest
amortizations on its bank loans.
To address the present financial difficulties, the Company's
management is undertaking these measures:
a. Continuous negotiation with the Company's creditor banks
for the restructuring of its loans;
b. Communication with prospective investors as part of its
marketing efforts;
c. Disposal of saleable assets; and
d. Engaging in other revenue-generating activities like
selling filling materials to raise funds to partially
service loans.
METRO PACIFIC: Retains PHP27.48B Deficit Despite 1Q Profit
----------------------------------------------------------
Metro Pacific Corporation posted a consolidated net income of
PHP28.10 million for the first quarter ended March 31, 2006,
compared to a PHP70.33-million net loss for the same period in
2005. The Company attributed the turnaround to higher gross
profit contributions from its two subsidiaries, as well as the
reversal of an impairment provision against prepaid taxes at the
parent-company level.
Consolidated revenues increased by 8% to PHP755.42 million in
the first quarter this year from PHP698.27 million in the first
quarter last year, reflecting higher revenues subsidiaries.
Meanwhile, consolidated cost of sales dropped 7% to
PHP625.72 million in the quarter ended March 31, 2006, from
PHP671.18 million in the corresponding quarter in 2005.
The 23% decrease in financing charges to PHP33.52 million in the
current quarter versus PHP43.48 million in the first quarter
last year indicates reduced interest expense incurred by MPC
because of lower debt levels, as well as higher interest income
at its property developer subsidiary, Landco Inc.
The key accounts reflected in the Company's consolidated
quarterly report for the three months ended March 31, 2006, are:
Metro Pacific Corporation
Financial Highlights
(in PHP millions)
As of As of
03/31/2006 12/31/2005
---------- ----------
Current Assets 4,227.91 4,154.22
Current Liabilities 4,920.80 5,072.72
Total Assets 7,944.24 8,067.59
Total Liabilities 7,049.01 7,200.04
Deficit 27,459,054 27,482,212
Total Equity 895.23 867.55
Quarter Ending
03/31/2006 03/31/2005
---------- ----------
Net Income 28.10 (70.33)
Revenues 755.42 698.27
Cost of Sales 625.72 671.18
MPC first quarter 2006 report is available for free at:
http://bankrupt.com/misc/MPC_17Q_Mar2006.pdf
About Metro Pacific Corporation
Metro Pacific Corporation -- http://www.metropacific.com/-- is
the flagship publicly listed investment and management company
of the First Pacific Group in the Philippines. The Company,
which was formerly known as Metro Drug, Inc., has since then
evolved from a pharmaceutical and consumer products distribution
company into one of the country's leading corporations.
Metro Pacific has these significant subsidiaries:
* Landco, Inc.
* Metro Tagaytay Land Co. Inc.
* Negros Navigation Co. Inc.
* Lucena Commercial Land Corporation
* First Pacific Realty Partners Corporation
* Landco Pacific Centers, Inc.
In 1995, MPC led the consortium that won the bidding to become
the developer and majority partner with the Bases Conversion
Development Authority in the development of a 214-hectare prime
real estate property in Fort Bonifacio, Metro Manila.
From its beginnings in 1986, MPC has evolved into a diversified
conglomerate with interests in real estate, telecommunications,
transportation, consumer, packaging, and banking. With the sale
of the Company's remaining telecommunication, consumer product
and packaging assets during the year, it is now established as
one of the country's leading property developers and real estate
investors.
Going Concern Doubt
Marydith C. Miguel, of Sycip Gorres Velayo & Co., raised
significant doubts on MPC's ability to continue as a going
concern after auditing the Company's annual report for the
period ended December 31, 2005.
Ms. Miguel noted in the auditors report that MPC suffered
significant losses in prior years leading to its inability to
meet its maturing obligations, on principal and interest, to
certain third-party lenders and to a related company. Although
the Company has generated a PHP194.26-million net income
attributable to equity holders for the year ended December 31,
2005, it continues to reflect a deficit of PHP27.5 billion as of
December 31, 2005, due to prior year's accumulated losses.
In response to these matters, the Company continues to implement
measures geared towards generating liquidity to meet maturing
obligations and profitability, including debt rehabilitation
activities and a capital restructuring plan.
Debt Rehabilitation
Since the start of its debt reduction program in 2001, the
Company has achieved substantial progress in its debt
restructuring negotiations with lenders and concluded
significant debt settlement agreements with various third-party
lenders. As of April 24, 2006, MPC was able to reduce its
interest-bearing debts from PHP11.70 billion in 2001 to
PHP565.80 million (PHP648.80 million as of December 31, 2005).
The Company also expects to settle additional debt of
PH349.30 million via asset-for-debt swap within the third
quarter of 2006. Negotiations are also ongoing to settle the
remaining debts totaling PHP216.50 million.
Corporate Reorganization and Recapitalization Plan
On March 27, 2006, the Company's Board of Directors approved a
comprehensive corporate reorganization and recapitalization
plan involving MPC and property developer subsidiary, Landco.
The Plan is a product of the ongoing initiatives to restructure
and settle MPC's remaining outstanding obligations to create a
new vehicle that can raise funds, to make long-term investments
and to support the continuing expansion of Landco's businesses,
as well as to realize and preserve existing shareholder values.
The Plan contemplates the revitalization and re-launch of MPC's
core business values, following a capital restructuring exercise
that will clean up the Company's balance sheet. The clean-up is
anticipated to result in the elimination of the deficit of
PHP27.48 billion. The re-launch will be effected through Metro
Pacific Investments Corporation, a newly formed corporation
which is presently a wholly-owned subsidiary of MPRI and MPHI,
collectively the existing majority stockholders of Metro
Pacific and affiliates of First Pacific Company Limited, but
which is envisaged to be eventually owned by the existing
stockholders of Metro Pacific.
MPIC will serve as the corporate vehicle to:
(i) continue the real estate business of Metro Pacific;
(ii) accept new investments from both existing and new
investors; and,
(iii) undertake other future projects. After the migration of
the existing MPC shareholders to MPIC, the Company is
expected to be a wholly owned subsidiary of MPIC and will
operate as a mere holding company without any significant
funding requirements.
NATIONAL POWER: Full Operation of Hydropower Plants to Cut Rates
----------------------------------------------------------------
With the start of the rainy season, National Power Corp. will
operate its hydroelectric plants at full capacity, which could
reduce power rates by as much as 35 centavos in Luzon and 27
centavos in Mindanao in the second half of 2006, the Manila
Times says.
The Company's time-of-use scheme is slated to reduce power costs
for distributors and large clients that buy power in off-peak
hours. The Philippine Inquirer cites Napocor President Cyril
del Callar as saying that TOU rates for Luzon could drop to
PHP3.72 per kilowatt-hour from PHP4.07 in the first half of the
year, whereas TOU rates for Mindano could drop to PHP1.97 per
kWh from PHP2.24 in the January-June period. Mr. del Callar
said, however, that the TOU rates for the Visayas region will
remain the same, due to the lack of hydroelectric plants in the
region.
Mr. del Callar added that the reduced TOU rates would lead to
significant savings for Napocor customers, since power
distributors could pass their TOU savings to customers via lower
product prices.
Napocor is operating more hydroelectric plants in order to
reduce its dependence on oil-based power plants and reduce fuel
costs, the Times relates. The Company lowered the use of its
fuel-based plants by 10% in 2005, and plans to reduce it even
further this year.
* * *
Headquartered in Quezon City, Philippines, National Power Corp.
-- http://www.napocor.gov.ph/-- is a state-owned utility that
builds and operates nuclear, hydroelectric, thermal, and
alternative power generating facilities. It works with
independent producers under a build-operate-transfer program.
With a generating capacity of more than 11,500 megawatts,
National Power sells electricity to distributors and industrial
companies.
National Power first incurred losses in 1998 after the Asian
financial crisis and expensive contract terms from independent
power producers, and reported a PHP29.9 billion loss in 2004,
after a PHP117-billion net loss in 2003.
The Troubled Company Reporter - Asia Pacific reported on
April 5, 2006, that National Power posted a PHP16 million profit
in 2005, the first time in seven years, on the Energy Regulation
Commission's approval of a rate increase, the use of an improved
fuel mix and better fuel prices.
A subsequent report by the TCR-AP states that in the first
review of National Power's portfolio, it was projected that the
Philippine Government would have to absorb some PHP600 million
worth of debt. The Government initially absorbed Napocor's
PHP200 billion debt, which was incurred when the state firm
adopted international accounting standards, forcing it to report
its foreign exchange losses. The Department of Finance is
studying the legality of the Government's absorption of the
debt.
To comply with the privatization bill approved by the Philippine
Congress, the Company started selling off its generation assets
to help pay for the utility's total estimated debt. It also
separated its transmission operations into a new subsidiary, the
National Transmission Corporation.
Napocor's remaining debt could still be absorbed by the
Government, but the Development Budget Coordinating Committee
wants to see the Company improve operations and sell off non-
profitable assets in order to reduce its debt, instead of
relying on government aid to do so.
=================
S I N G A P O R E
=================
ASICHEM TRADING: Court to Hear Wind-Up Petition on June 30
----------------------------------------------------------
Interchem 2000 Asia Pte Limited, on June 6, 2006, filed an
application for the wind-up of Asichem Trading (Singapore) Pte
Limited.
The Petition will be heard before the High Court of the Republic
of Singapore on June 30, 2006, at 10:00 a.m.
Contact: Drew & Napier LLC
Solicitors for Interchem 2000 Asia Pte Ltd
20 Raffles Place
#17-00, Ocean Towers
Singapore 048620
GRAND PROPERTY: Completes Liquidation Process
---------------------------------------------
Grand Property Development Pte Limited -- a wholly owned
subsidiary of Hotel Grand Central Limited -- has recently
completed voluntary liquidation proceedings.
The Troubled Company Reporter - Asia Pacific recounts that Grand
Property commenced voluntary liquidation on February 5, 2004.
Wu Wai Hong was the Company's appointed liquidator.
KINGSBURY HOLDINGS: Creditors' Proofs of Claim Due on July 10
-------------------------------------------------------------
The creditors of Kingsbury Holdings Pte Limited are required to
file their proofs of claim by July 10, 2006.
Failure to comply with the requirement will exclude a creditor
from sharing in any distribution the Company will make.
Contact: Chee Yoh Chuang
Lim Lee Meng
Liquidators
18 Cross Street
#08-01 Marsh & McLennan Centre
Singapore 048423
MAE ENGINEERING: Shareholders Pass All EGM Resolutions
------------------------------------------------------
At the Extraordinary General Meeting of MAE Engineering Limited
held on June 12, 2006, the Company's shareholders unanimously
approved all the resolutions set out on the Notice of EGM dated
March 26, 2006.
During the meeting, shareholders approved:
-- the Company's renounceable rights issue of up to
415,045,060 new ordinary shares in the Company's capital
with up to 207,522,530 free warrants;
-- the allotment of entitlements to the Rights Shares with
Warrants not taken up or allotted for any reason or which
represent fractional entitlements disregarded in
accordance with the terms of the Rights Issue;
-- the creation, allotment and issuance of Warrants in
registered form;
-- the creation, allotment and issuance of additional
warrants as may be required or permitted to be issued in
accordance with the terms and conditions of the Deed Poll;
-- the allotment and issuance of up to 207,522,530 new shares
arising from the exercise of Warrants; and
-- the authorization of the Company's directors to do such
acts and things as may be required in connection with or
pursuant to these matters.
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.
As of March 31, 2006, the Company's balance sheet showed
SGD7,404,000 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.
PORT WELD: Court Orders Wind-Up
-------------------------------
The High Court of the Republic of Singapore has issued a winding
up order against Port Weld Engineering Pte Limited on June 2,
2006.
In this regard, creditors are requested to file their proofs of
debt with The Official Receiver, who will be administering all
affairs of the Company.
As reported by the Troubled Company Reporter - Asia Pacific,
Jade Machine Tool Pte Limited filed the wind-up petition before
the High Court on April 21, 2006.
Contact: The Official Receiver
45 Maxwell Road #05-11/#06-11
URA Centre, East Wing
Singapore 069118
How Law Corporation
Solicitors for the Plaintiff
110 Middle Road #09-00
Chiat Hong Building
Singapore 188968
*********
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
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Chapman, Editors.
Copyright 2006. All rights reserved. ISSN: 1520-9482.
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