/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/060726.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, July 26, 2006, Vol. 9, No. 147 Headlines A U S T R A L I A & N E W Z E A L A N D AIP AUST: Enters Voluntary Liquidation BILL FORAN: Opts to Liquidate Business BLUE POINT: Liquidator Davies to Give the Wind-Up Report CENTIK PTY: Members Opt to Shut Down Business Operations CHEFS PTY: Appoints Joint and Several Liquidators D'ANGELOZ LIMITED: Official Liquidator Named DENBUR PROJECT: Faces Liquidation Proceedings DOLOMITE ALPINE: Members and Creditors to Receive Wind-Up Report EDGAR DEVELOPMENTS: Enters Liquidation Proceedings ELECTRUM ENERGY: Placed Under Voluntary Liquidation EVERETT & STEELE: To Declare Dividend for Priority Creditors FANNINGS PAINT: Members Decide to Wind Up Business FELTEX CARPETS: Restructuring Talks with Investors Continue G.B.R. MAINTENANCE: Creditors' Proofs of Claim Due on August 3 JAMES BRYANT: Shuts Down Business Operations JOSA LAND: Wind-Up Process Commenced KARDEN INVESTMENTS: Inability to Pay Debt Prompts Wind-Up LARSA PTY: Members and Creditors to Hear Wind-Up Report LAUCAM DESIGNS: Completes Liquidation Exercise LOGOS HOLDINGS: Appoints Official Liquidator MAC-FLY PTY: Supreme Court Issues Wind-Up Order MERAK PTY: Members Agree to Voluntary Wind Up MERIMCP PTY: Members to Receive Wind-Up Report OLIVER TRANSPORT: Shuts Down Business Operations PETRIG HOLDINGS: Members Initiate Wind-up Proceedings REAT PTY: Prepares to Suspend Operations RSB DEVELOPMENTS: Undergoes Voluntary Liquidation SANDOR DEVELOPMENT: Members Agree on Voluntary Liquidation SANTAVAN FARMS: Liquidator Finch to Present Wind-Up Report SEIDEL BROS: Members Decide on Voluntary Wind-Up S & M FARRUGIA: Appoints Joint and Several Liquidators SOMERDALE PTY: Files for Voluntary Liquidation STAHPAK LIMITED: Receivers and Managers Named TAMNAMORE PTY: Members Pass Resolution to Wind Up Business TIWARRIE PTY: Placed Under Members' Voluntary Wind-Up W.A. COMMERCIAL: Liquidates Business Operations WESTPOINT GROUP: Court Stops Mr. Burnard from Disposing Assets * AU & NZ Governments Agree on Merger Protocol * NZ Dollar Gains as Higher Bond Yields Boost Demand * Speculation on Interest Rates Increase Boosts AU Dollar * Euler Hermes Enters AU & NZ Through Lumley General Acquisition C H I N A & H O N G K O N G CELION LIMITED: Enters Voluntary Liquidation CHAMPION DATA LTD: Winds Up Business and Appoints Liquidators FARGO CHEMICALS: To Give Final Liquidation Report on August 22 FIRMIANA LIMITED: Creditors' Proofs of Claim Due on August 28 GOLDEN CHEER CONSTRUCTION: To Give Final Report on August 23 OCEAN GRAND HOLDINGS: S&P Whips Long-Term Credit Rating to 'D' OPENET INFORMATION TECHNOLOGY: Appoints Official Liquidator RESOUND LIMITED: Proofs of Claim Due on August 10 SITI CHINA: To Hold Final General Meeting on August 21 VERTEX CHINA INVESTMENT: Claim Particulars Due on August 24 WISE FAVOUR TRANSPORTATION: To Hold Final Meeting on August 23 XCAN ASIA LIMITED: Winds Up Business and Names Liquidator * Moody's Sees Stable To Positive Outlook For Chinese Banks I N D I A FORD MOTOR: William Clay Ford, Jr., Named President and COO INDIAN OIL: Warns of Depleting LPG Inventories UTI BANK: Fitch Assigns C/D Individual Rating I N D O N E S I A PERUSAHAAN LISTRIK: Implements Second Day of Power Cuts J A P A N KEIYO CO: JCR Affirms BB+ Senior Debts Rating MITSUBISHI MOTORS: Posts June 06 Production, Sales & Exports SKYLARK CO: S&P Lowers Corporate Credit & Debt Ratings to BB K O R E A HYNIX SEMICONDUCTOR: Judge Halves Rambus Award LG CARD: Offers from Potential Bidders Welcome Until August 11 LG TELECOM: Loses 3G Service License; CEO Urged to Step Down WOORI BANK: Gets KRW448 Billion in Internet Banking Deposits WOORI BANK: Finance Ministry Okays HK Unit Launch M A L A Y S I A AVANGARDE RESOURCES: Fails to Submit FY2005 Audited Report DATUK KERAMAT: Revamp Plan Delays Submission of 2005 Accounts GEORGE TOWN: Unable to Submit 2005 Accounts on Time MANGIUM INDUSTRIES: Sawmilling Arm Defaults on Bank Facilities MBF CORPORATION: Lists and Quotes 124,000 New Shares MBF HOLDINGS: CEO Intends to Deal in Securities at Closed Period MENTIGA CORPORATION: Incorporated Computer Service Unit NORTH BORNEO: Buys More Time to Complete Restructuring Scheme NORTH BORNEO: Faces Delisting Over Failure to File 2005 Report SBBS CONSORTIUM: Faces Further Suspension or Delisting TRU-TECH HOLDINGS: Decides to Scrap Proposed Revamp Deal * Malaysia's Consumer Asset Quality of Some Concern, Fitch Says P H I L I P P I N E S ALLIED BANK: Posts PHP440-Million Net Income in First Quarter BANKARD INC: GE Unit to Buy Bankard BENPRES HOLDINGS: Appoints Audit Committee Members & Officers DEVELOPMENT BANK: Full-Year Net Income Rises 41.4% DEVELOPMENT BANK: Appoints Patricia Sto. Tomas as Chairwoman PSI TECHNOLOGIES: Gets Notice of Failure to Comply with Nasdaq S I N G A P O R E DIGILAND INTERNATIONAL: Posts Details of Ximeta Transaction INFORMATICS HOLDINGS: Subsidiary Changes Name INFORMATICS HOLDINGS: Gains $338,000 from Sale of ICE Property MDR LIMITED: Notes Director's Change of Interest SEE HUP SENG: Enters Into Placement Agreement with Subscribers SPIN VIDEO: Enters Wind-Up Proceedings * Upcoming Meetings, Conferences and Seminars - - - - - - - - ============================================ A U S T R A L I A & N E W Z E A L A N D ============================================ AIP AUST: Enters Voluntary Liquidation -------------------------------------- At a general meeting of AIP AUST Pty Limited on June 29, 2006, members resolved that a voluntary wind-up of the Company's business operations is appropriate and necessary. David John Cranstoun and John Feddema were subsequently appointed as liquidators. The Liquidators can be reached at: David John Cranstoun John Feddema Cranstoun & Hussein Chartered Accounts & Business Advisers Level 2, 102 Adelaide Street Brisbane, Queensland 4001 Australia BILL FORAN: Opts to Liquidate Business -------------------------------------- At an extraordinary general meeting of Bill Foran Pty Limited held on June 30, 2006, members decided to liquidate the Company's business. In this regard, Robert Elliott was appointed as liquidator. The Liquidator can be reached at: Robert Elliott c/o Hall Chadwick Level 29, 31 Market Street Sydney, New South Wales 2000 Australia BLUE POINT: Liquidator Davies to Give the Wind-Up Report -------------------------------------------------------- Members of Blue Point Products Pty Limited will hold a final meeting on August 11, 2006, at 11:00 a.m., to hear Liquidator S. C. Davies' report on the Company's wind-up and property disposal exercises. The Troubled Company Reporter - Asia Pacific recounts that the members agreed to close the Company's operations on February 6, 2006. The Liquidator can be reached at: S. C. Davies c/o McGrathNicol+Partners Level 11, 115 Grenfell Street Adelaide South Australia 5000 Australia Telephone:(08) 8468 3700 Web Site: http://www.mcgrathncol.com.au/ CENTIK PTY: Members Opt to Shut Down Business Operations -------------------------------------------------------- The members Centik Pty Limited convened on June 16, 2006, and decided to shut down the Company's business operations. In this regard, Liquidator Sutherland will be receiving creditors' proofs of claim by July 26, 2006. Creditors who cannot prove their claims will be excluded from sharing in the Company's dividend distribution. The Liquidator can be reached at: R. M. Sutherland Jirsch Sutherland Chartered Accountants Level 2, 84 Pitt Street Sydney, New South Wales 2000 Australia Telephone:(02) 9233 2111 Facsimile:(02) 9233 2144 CHEFS PTY: Appoints Joint and Several Liquidators ------------------------------------------------- At a general meeting of Chefs Pty Limited held on June 7, 2006, Jason Bettles and Susan Carter were appointed to manage the Company's wind-up activities. The Liquidators can be reached at: Jason Bettles Susan Carter Worrells Solvency & Forensic Accountants Level 6, 50 Cavill Avenue Surfers Paradise, Queensland 4217 Australia D'ANGELOZ LIMITED: Official Liquidator Named -------------------------------------------- Shareholders of D'Angeloz Limited on June 29, 2006, appointed insolvency practitioner Robert Laurie Merlo to oversee the Company's liquidation. In this regard, Mr. Merlo requires the Company's creditors to file their proofs of debt by August 1, 2006, for them to share in any distribution the Company will make. The Liquidator can be reached at: R. L. Merlo Liquidator Merlo Burgess & Co. Limited P.O. Box 51-486, Pakuranga Auckland, New Zealand Telephone: (09) 520 7101 Facsimile: (09) 529 1360 e-mail: merloburgess&co@xtra.co.nz DENBUR PROJECT: Faces Liquidation Proceedings --------------------------------------------- Members of Denbur Project Managements Pty Limited met at a general meeting on June 28, 2006, and resolved to liquidate the Company's business. Danny Vrkic was consequently appointed as liquidator. The Liquidator can be reached at: Danny Vrkic Jirsch Sutherland & Co - Wollongong Chartered Accountants Level 3, 6-8 Regent Street Wollongong, New South Wales 2500 Australia Telephone:(02) 4225 2545 Facsimile:(02) 4225 2546 DOLOMITE ALPINE: Members and Creditors to Receive Wind-Up Report ---------------------------------------------------------------- A final meeting of the members and creditors of Dolomite Alpine Ski Club Pty Limited will be held on August 14, 2006, at 9:15 a.m. During the meeting, members and creditors will receive accounts showing how the Company was wound up and how its property was disposed of from the Company's liquidator. The Troubled Company Reporter - Asia Pacific reported that on July 5, 2005, the Company commenced a wind-up of its operations. The liquidator can be reached at: Peter Goodin Brooke Bird & Co Chartered Accountants 471 Riversdale Road East Hawthorn Victoria 3123 Australia Telephone: 9882 6666 EDGAR DEVELOPMENTS: Enters Liquidation Proceedings -------------------------------------------------- Neil Raymond Donnell of Grant Thorton Auckland Limited was appointed as liquidator of Edgar Developments Limited on June 23, 2006. The Liquidator will distribute the Company's assets to creditors, to the exclusion of those who were not able to prove their claims by July 21, 2006. The Liquidator can be reached at: Neil Raymong Donnell Grant Tjorton Auckland Limited 97 101 Hobson Street, Auckland New Zealand Telephone: (09) 308 2570 ELECTRUM ENERGY: Placed Under Voluntary Liquidation --------------------------------------------------- At general meeting on June 30, 2006, members of Electrum Energy Pty Limited agreed that the Company must voluntarily commence a wind-up of its operations. Subsequently, Danny Vrkic was appointed as liquidator. The Liquidator can be reached at: Danny Vrkic Jirsch Sutherland & Co - Wollongong Chartered Accountants Level 3, 6-8 Regent Street Wollongong, New South Wales 2500 Australia Telephone:(02) 4225 2545 Facsimile:(02) 4225 2546 EVERETT & STEELE: To Declare Dividend for Priority Creditors ------------------------------------------------------------ Everett & Steele Pty Limited will declare a final dividend for its priority creditors on August 3, 2006, to the exclusion of those who were unable to prove their claims. As reported by the Troubled Company Reporter - Asia Pacific, the Company declared its first and final dividend on June 7, 2006. The liquidator can be reached at: Kimberley S. Wallman K. S. Wallman & Co PO Box 4055 Wembley, Western Australia 6014 Australia FANNINGS PAINT: Members Decide to Wind Up Business -------------------------------------------------- The members of Fannings Paint and Wallpaper Pty Limited convened on June 28, 2006, and decided to wind up the Company's operations. Furthermore, the Company decided it will pay dividend to its creditors to the exclusion of those who failed to file their proofs of claim by July 19, 2006. The liquidator can be reached at: Andrew Mclellan PPB Chartered Accountants Level 10, 90 Collins Street Melbourne, Victoria 3000 Australia FELTEX CARPETS: Restructuring Talks with Investors Continue ----------------------------------------------------------- As reported in The Troubled Company Reporter - Asia Pacific on July 5, 2006, an unnamed investor, which was into talks with Feltex Carpets Limited regarding the injection of new capital, has withdrawn its proposal. Yet, the TCR-AP noted that Feltex has received expressions of interest from other potential investors and that the Company is holding discussions with them and has continued to work on capital raising options. At Feltex's request, the New Zealand Stock Exchange halted the trading in the Company's shares on July 24, 2006, pending restructuring negotiations, Stuff.co.nz reports. Feltex spokesman John Walsh had declined to say who the talks were with or what might happen if the negotiations failed, The Dominion Post relates. According to Rachel Pannett of Dow Jones Newswires, Feltex says there is no certainty of reaching a deal. Feltex also warned that if an agreement is reached, the value to shareholders arising from the restructuring would be "materially below that at which the shares last traded," Dow Jones notes. The New Zealand Herald cites industry sources as saying that two bidders are vying to put Feltex back on a sound financial footing. However, the names of the potential buyers are not known, although Australian carpet-maker Godfrey Hirst has been speculated as one, the Herald notes. Godfrey Hirst last year suggested a merger with Feltex but was rebuffed, the Herald recounts. "Upon conclusion of the negotiations full and detailed information will be provided to the market and shareholders," Feltex assures. * * * The New Zealand Stock Exchange says that as of July 26, 2006, the trading halt in Feltex shares has been lifted, and indicates that the restructuring talks are still ongoing. About Feltex Established over 50 years ago, Feltex Carpets Limited -- http://www.feltex.com/-- has built a reputation for being one of the world's leading manufacturers of superior-quality carpet. The Feltex operation includes a wool scouring plant, six spinning mills, three tufted carpet mills, a woven carpet mill and offices in New Zealand, Australia and the United States. The Company also leads the way in exports, with customers throughout South East Asia, Japan, the United States, the Middle East and other key world markets. Feltex listed on the local stock exchange in mid-2004 in a NZ$254-million initial public offering -- the year's largest in New Zealand. However, the Company fell short of its prospectus earnings projections, reporting a net profit of NZ$11.8 million in the fiscal year to June 30, 2005, about half the forecast NZ$23.9 million. The Company has struggled with losses and earnings downgrades, flogging sales, and a dipping share price. The Company closed plants and in October 2005, axed 235 jobs, mostly in Australia, and by 2006, abandoned merger talks with Australian competitor Godfrey Hirst after it suggested that the apparent "white knight" investor was more interested in a reverse takeover. Godfrey Hirst later sold out its nearly 9% stake in the Company. In February 2006, Feltex reported a first-half after tax loss of NZ$11.83 million, down almost 200% compared to the net loss in the previous year. G.B.R. MAINTENANCE: Creditors' Proofs of Claim Due on August 3 -------------------------------------------------------------- G.B.R. Maintenance & Electrical Services Pty Limited will declare its first and final dividend on August 4, 2006. Creditors are required to file their proofs of claim by August 3, 2006, for them to share in the dividend distribution. The Troubled Company Reporter - Asia Pacific reported that on November 2, 2005, the Company commenced a voluntary wind-up of its operations. The liquidator can be reached at: Robert Molesworth Hobill Cole Cole Downey & Co Chartered Accountants Unit 2, 6 Moorabool Street Geelong, Victoria 3220 Australia JAMES BRYANT: Shuts Down Business Operations -------------------------------------------- At a general meeting on June 30, 2006, members of James Bryant Holdings Pty Limited resolved to close the Company's business operations and distribute the proceeds of its assets disposal. Subsequently, Mark Christopher Hall and Timothy James Clifton were appointed as liquidators. The Liquidators can be reached at: Mark Christopher Hall Timothy James Clifton Chartered Accountants Level 10, 26 Flinders Street Adelaide, Australia JOSA LAND: Wind-Up Process Commenced ------------------------------------ On June 29, 2006, shareholders of Josa Land Company Limited passed a special resolution to wind up the Company's operations. In this regard, Stephen James Scott and Joseph Craig McNeill of Feilding Chartered Accountants were appointed as joint and several liquidators. The Liquidators can be reached at: S.J. Scott J.C. McNeil Feilding Chartered Accountants 53-55 Manchester Street P.O. Box 40, Feilding New Zealand Telephone: (06) 323 6114 Facsimile: (06) 323 5007 KARDEN INVESTMENTS: Inability to Pay Debt Prompts Wind-Up --------------------------------------------------------- On June 22, 2006, creditors of Karden Investments Pty Limited passed a resolution to wind up the Company's operations since it will not be able to pay its debts as they fall due. Subsequently, Chris Chamberlain was appointed as liquidator. The Liquidator can be reached at: Chris Chamberlain Suite 103, 1st Floor Wollundry Chambers, Johnston Street Wagga Wagga, New South Wales 2650 Australia LARSA PTY: Members and Creditors to Hear Wind-Up Report ------------------------------------------------------- The members and creditors of Larsa Pty Limited will hold a final meeting on August 9, 2006, at 9:30 a.m. During the meeting, Liquidator Holbrook will present accounts of the Company's wind-up and property disposal activities. The Troubled Company Reporter - Asia Pacific reported that the creditors resolved to wind up the Company's operations on September 5, 2005. The Liquidator can be reached at: Kim David Holbrook Holbrook & Associates Chartered Accountants Level 2, 19 Pier Street (GPO Box M925) Perth, Western Australia Australia LAUCAM DESIGNS: Completes Liquidation Exercise ---------------------------------------------- Laucam Designs has completed its liquidation and an application for the removal of the Company from the Register was filed on June 30, 2006. Moreover, the final reports and statement of receipts and payments in respect of the liquidation were already sent to the Registrar. The Company's liquidator can be reached at: David Vance Liquidator McCallum Petterson Level Eight, The Todd Building 95 Customhouse Quay, Wellington New Zealand LOGOS HOLDINGS: Appoints Official Liquidator -------------------------------------------- At an extraordinary general meeting on June 30, 2006, members of Logos Holdings Pty Limited resolved to voluntarily wind up voluntarily the Company's operations. In this regard, Robert Whitehouse was appointed as liquidator. The Liquidator can be reached at: Robert Whitehouse Chartered Accountants 1st Floor, 160 Collins Street Hobart Tasmania 7000 Australia Telephone:(03) 6223 6155 MAC-FLY PTY: Supreme Court Issues Wind-Up Order ----------------------------------------------- The Supreme Court of Victoria issued a wind-up order against Mac-Fly Pty Limited on June 28, 2006. The Court, likewise, ordered the appointment of Gregory Stuart Andrews as liquidator. The Liquidator can be reached at: Gregory Stuart Andrews G. S. Andrews & Associates Certified Practising Accountants 22 Drummond Street Carlton Victoria 3053 Australia Telephone:(03) 9662 2666 Facsimile:(03) 9662 9544 MERAK PTY: Members Agree to Voluntary Wind Up --------------------------------------------- After an extraordinary general meeting on June 30, 2006, the members of Merak Pty Limited decided to voluntarily wind up the Company's operations. Robert Eugene Murphy and David James Hambleton were subsequently appointed as liquidators. The Liquidators can be reached at: Robert Eugene Murphy David James Hambleton Chartered Accountants R.E. Murphy & Co. Level 9, 46 Edward Street Brisbane, Queensland 4000 Australia MERIMCP PTY: Members to Receive Wind-Up Report ---------------------------------------------- The members of MERIMCP Pty Limited will convene on August 14, 2006, to receive Liquidator David H. Scott's report on the Company's wind-up and property disposal. As reported by the Troubled Company Reporter - Asia Pacific, members agreed to voluntarily wind up the Company's operations on December 15, 2005. The Liquidator can be reached at: David H. Scott Jones Condon Chartered Accountants 77 Station Street Malvern, Victoria 3144 Australia OLIVER TRANSPORT: Shuts Down Business Operations ------------------------------------------------ After an extraordinary general meeting on June 28, 2006, the members of Oliver Transport Pty Limited decided to voluntarily wind up the Company's operations. Creditors subsequently appointed Robert Molesworth Hobill Cole as liquidator. The Liquidator can be reached at: Robert Molesworth Hobill Cole Cole Downey & Co Chartered Accountants Unit 2, 6 Moorabool Street Geelong, Victoria 3220 Australia PETRIG HOLDINGS: Members Initiate Wind-up Proceedings ----------------------------------------------------- Members of Petrig Holdings Pty Limited convened on July 5, 2006, and opted to wind up the Company's business operations voluntarily. In this regard, E. R. Verge, G. A. Lopez and C. A. L. Huxtable were appointed as liquidators. The Liquidators can be reached at: C. A. L. Huxtable G. A. Lopez E. R. Verge Liquidators Jones Condon Chartered Accountants Unit 44B, Level 1, Piccadilly Square West 7 Aberdeen Street, Perth Western Australia 6000 Australia REAT PTY: Prepares to Suspend Operations ---------------------------------------- The members of Dellkent Pty Limited had on June 29, 2006, appointed Jason Bettles of Worrells Solvency & Forensic Accountants as liquidator to oversee the Company's wind-up operations. The Liquidator can be reached at: Jason Bettles Liquidator Worrells Solvency & Forensic Accountants Level 6, 50 Cavill Avenue Surfers Paradise, Queensland 4217 Australia Web site: http://www.worrells.net.au/ RSB DEVELOPMENTS: Undergoes Voluntary Liquidation ------------------------------------------------- On June 29, 2006, the members of RSB Developments Pty Limited held a general meeting and decided to wind up voluntarily the Company's business operations and distribute its assets. Accordingly, Robert Bates was appointed as liquidator. Creditors who were not able to prove their claims by June 30, 2006, will be excluded from sharing in the dividend distribution. The Liquidator can be reached at: Robert Bates Casey Bates Suite 2, Level 6 20 Smith Street Parramatta Australia SANDOR DEVELOPMENT: Members Agree on Voluntary Liquidation ---------------------------------------------------------- The members of Sandor Development Pty Limited held a general meeting on June 30, 2006, and agreed to liquidate the Company's business and distribute the proceeds of its assets disposal. Hugh Robertson Docker was consequently appointed as liquidator. The Liquidator can be reached at: Hugh R. Docker Liquidator 11 Chesterfield Avenue, Malvern Victoria 3144, Australia SANTAVAN FARMS: Liquidator Finch to Present Wind-Up Report ---------------------------------------------------------- The members of Santavan Farms Pty Limited will hold a final meeting on August 31, 2006, at 9:00 a.m., to receive Liquidator Finch's accounts of the Company's wind-up and property disposal. The Troubled Company Reporter - Asia Pacific reported that on May 19, 2006, the Company commenced a wind-up of its operations and appointed Geoffrey Donald Finch as liquidator. The Liquidator can be reached at: Geoffrey Donald Finch KPMG 18 Smith Street, Darwin Northern Territory 0800 Australia SEIDEL BROS: Members Decide on Voluntary Wind-Up ------------------------------------------------ At a general meeting on June 30, 2006, members of Seidel Bros. Well Drilling Co. Pty Limited agreed that the Company must voluntarily commence a wind-up of its operations. Accordingly, Darryl Newitt was nominated as liquidator to manage the wind-up activities. The Liquidator can be reached at: Darryl Newitt Liquidator Rowe McGee 193 Wakefield Street, Adelaide South Australia 5000, Australia S & M FARRUGIA: Appoints Joint and Several Liquidators ------------------------------------------------------ At a general meeting on June 26, 2006, the members of S & M Farrugia Pty Limited, resolved to voluntarily wind up the Company's operations. Antony de Vries and Riad Tayeh were subsequently appointed as liquidators. The Liquidators can be reached at: Antony de Vries Riad Tayeh de Vries Tayeh Level 3/95, Macquarie Street Parramatta, New South Wales 2150 Australia SOMERDALE PTY: Files for Voluntary Liquidation ---------------------------------------------- The members of Somerdale Pty Limited passed a special resolution on June 27, 2006, to wind up the Company's business operations. In this regard, M. J. Whitbread was appointed as liquidator. The Liquidator can be reached at: M. J. Whitbread Liquidator c/o Deloitte Touche Tohmatsu GPO Box 1969, Adelaide South Australia, Australia STAHPAK LIMITED: Receivers and Managers Named --------------------------------------------- North Kaipara Nominees Limited on June 6, 2006, appointed Gerald Stanely Rea and John Maurice Leonard as receivers and manager of the entire property of Stahpak Limited. The Receivers and Managers can be reached at: Gerry Rea Associates P.O. Box 3015, Auckland New Zealand Telephone: (09) 377 3099 Facsimile: (09) 377 3098 e-mail: grea@gerryrea.co.nz TAMNAMORE PTY: Members Pass Resolution to Wind Up Business ---------------------------------------------------------- Members of Tamnamore Pty Limited met at a general meeting on June 20, 2006, and passed a special resolution to wind up the Company's business operations. Subsequently, Ross Reginald Stanton Mathews was appointed as liquidator. The Liquidator can be reached at: Ross Reginald Stanton Mathews Evans & Ayers Chartered Accountants Level 11, 101 Grenfell Street Adelaide, South Australia 5000 Australia TIWARRIE PTY: Placed Under Members' Voluntary Wind-Up ----------------------------------------------------- The members of Tiwarrie Pty Limited held a meeting on June 23, 2006, and passed a special resolution to wind up the Company's business operations. Alfred McCarthy was consequently appointed as liquidator. The Liquidator can be reached at: Alfred Mccarthy Gregory & McCarthy 75 Lead Street Yass, New South Wales 2582 Australia W.A. COMMERCIAL: Liquidates Business Operations ----------------------------------------------- At a general meeting on June 29, 2006, the members of W.A. Commercial Cleaning Pty Limited decided to wind up the Company's business operations. Ronald Derek Gamble was subsequently named liquidator at a creditors' meeting held later that day. The Liquidator can be reached at: Ronald Derek Gamble BDO Level 8, 256 Street George's Terrace Perth, Western Australia 6000 Australia Telephone: 9360 4200 WESTPOINT GROUP: Court Stops Mr. Burnard from Disposing Assets -------------------------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on June 6, 2006, the Australian Securities and Investment Commission sought and obtained an order from the Supreme Court of New South Wales freezing the assets of Neil Austin Burnard, the sole director of Palentia Pty Ltd. -- formerly known as Kebbel Pty Ltd. -- and who reportedly promoted Westpoint schemes to investors. The TCR-AP noted that Mr. Burnard was forced to return to Sydney on June 4, 2006, after authorities blocked his entry into the United States. He was also forced to surrender his passport and unused airline tickets. Moreover, the Supreme Court froze his personal assets, as well as that of Palentia and another related company, Tenala. According to the TCR-AP report, ASIC had alleged that Mr. Burnard, through Palentia, helped raise more than AU$100 million for Westpoint from small investors, mainly in NSW and Queensland, adding that Palentia earned AU$6.5 million in commissions in the process. However, Palentia had recently stopped trading and abandoned its registered office. ASIC believes the company may be insolvent. In an update, Justice Reginald Barrett of the NSW Supreme Court has extended the court orders against Mr. Burnard, stopping him from disposing of his assets or leaving Australia until October 23, 2006, and from coming within 100 meters of an Australian point of overseas departure, the Australian Associated Press reports. Justice Reginald Barrett has continued orders preventing Palentia assets from being sold, News.com.au says. The AAP notes that the parties have the liberty to apply to the Court in relation to the Orders. News.com.au cites ASIC as saying that the Orders permit Mr. Burnard and Palentia to pay expenses including ordinary living and operating expenses, school fees for Mr. Burnard's children, legal expenses incurred in these proceedings up to set amounts, and payments servicing loan facilities with arms length financial institutions. The matter returns to Court on October 23, 2006. About Westpoint Group Headquartered in Perth, Western Australia, the Westpoint Group -- http://westpoint.com.au/-- is engaged in property development and owns or manages retail and commercial properties with a total value of over AU$300 million. The Group's troubles began in 2005 when the Australian Securities and Investments Commission commenced investigations on 160 companies within the Westpoint Group. The ASIC's investigation led to ASIC initiating action in late 2005 in the Federal Court of Australia against a number of mezzanine companies in the Westpoint Group, including winding up proceedings. The ASIC contends that Westpoint projects are suffering from significant shortfall of assets over liabilities so that hundreds of investors are at serious risk of not receiving repayment of their investments. The ASIC also sought wind-up orders after the Westpoint companies failed to comply with its requirement to lodge accounts for certain financial years. These wind-up actions are still continuing. In February 2006, a wind-up order was issued by the Federal Court in Perth against Westpoint Corporation Pty Ltd. The ASIC had applied to wind up the company on grounds of insolvency. The ASIC believes that Westpoint Corporation is responsible for arranging, managing and coordinating Westpoint Group's property projects as well as holding money for other group companies. The ASIC was concerned that Westpoint Corporation was unable to pay its debts, including its obligations under the guarantees given to the mezzanine companies to make good expected shortfalls in the repayment of amounts owed to investors. The Westpoint Group's collapse is considered by many as the largest of its type in recent years, with small investors being the biggest group affected. Investors are currently joining forces to commence a class action against Westpoint and its advisors. * AU & NZ Governments Agree on Merger Protocol ---------------------------------------------- New Zealand's Commerce Commission and the Australian Competition and Consumer Commission agree to work more closely on reviews of business mergers involving companies operating in both countries, The Associated Press reports. The AP relates that the merger protocol follows agreement earlier this year between New Zealand Finance Minister Michael Cullen and Australian Treasurer Peter Costello to speed up removing barriers between the two economies. According to the report, the Governments agree to amend New Zealand's Commerce Act 1986 and Australia's Trade Practices Act 1974. The amendments now allow the two agencies to exchange information gathered in the course of investigating competition and consumer protection issues, The AP says. The agreement covers: (a) general cooperation and information exchange; (b) specific transactions being considered by both agencies; and (c) merger reviews being considered by one agency, where the other may be able to assist. The two agencies believe that closer cooperation could be useful, particularly for tackling cartels and for regulating energy and telecommunication sectors, the AP relates. The AP cites NZ Commerce Commission Chairperson Paula Rebstock as saying that the deal with the ACCC would build on a number of practices already "routinely employed" by the two bodies. The AP adds that Australia and New Zealand have also committed to expanding the economic benefits from the 30-year-old free trade agreement linking their economies. Two-way trade in the year ended May 2006 totaled NZ$14.3 billion, The AP relates. * NZ Dollar Gains as Higher Bond Yields Boost Demand ---------------------------------------------------- The New Zealand dollar gained on speculation that the central bank will keep its benchmark interest rate at a record high this year as inflation accelerates, stoking demand for the nation's high yields, Tracy Withers of the Bloomberg News reports. The gap between yields on New Zealand government bonds and United States Treasuries has widened since July 17, 2006, when a report showed annual inflation was the fastest in more than five years, Bloomberg recounts. Bloomberg cites all 14 economists it has surveyed last week noting that Reserve Bank Governor Alan Bollard will probably leave the official cash rate at 7.25% on June 27 and for the rest of the year. "The yield spread has widened further in the New Zealand dollar's favor," Bloomberg relates citing Michael Gordon, currency strategist at Westpac Banking Corp. in Wellington. Mr. Bollard "will be careful not to unravel the recent tightening," Mr. Gordon adds. Bloomberg relates that consumer prices rose 4% in the year ended June 30, 2006, according to government figures. The surge in inflation pushed three-year bond yields to a four-year high as investors bet Mr. Bollard would delay rate cuts until the second half of 2007. Rising bond yields prompted some banks to raise their home-loan interest rates, while the local dollar has surged 2.5% this month. Bloomberg recounts that last month, Mr. Bollard, who is required to keep annual inflation between 1% and 3%, said inflation will not fall below 3% until the fourth quarter next year. According to Bloomberg, nine of the economists it surveyed expect that the central bank will wait until March 2007 before starting to lower interest rates. Five expect a cut in the second quarter, Bloomberg notes. * Speculation on Interest Rates Increase Boosts AU Dollar --------------------------------------------------------- The Australian dollar gained as speculation that the central bank will raise interest rates next week, helping push the premium for holding the nation's debt instead of United States Treasuries to a six-month high, Chris Young of the Bloomberg News reports. The currency has climbed 3% in the past month, Bloomberg notes. According to Caroline Adam of the Sydney Morning Herald, strong wholesale inflation data has boosted the Australian dollar, although concerns about slowing global economic growth kept a lid on gains. The Herald cites RBC Capital Markets senior economist Su-Lin Ong saying that the dollar rallied slightly after stronger than expected producer price index data led to increased expectations of an August interest rate rise. "We've had a string of stronger-than-expected Australian data and the market is much more convinced the RBA will hike next week," Bloomberg cites Danica Hampton, a currency strategist at Bank of New Zealand Ltd., in Wellington, saying. "This has widened the yield spread and been Australian-dollar supportive," Ms. Hampton adds. The Bureau of Statistics found the producer price index at the final stage of production rose 1.6% in the quarter and at an annual pace of 4.5% its worst level since the December quarter of 2000, the Australian Associated Press relates. The AAP says that the outcome exceeded market expectations for quarterly growth of 1.1% and annual growth of 4.1%. The Reserve Bank raised its overnight cash rate target a quarter-percentage point to 5.75% in May to curb inflation, Bloomberg says, adding that since the increase, reports have shown record home-lending, a rebound in consumer confidence, and the unemployment rate at a 30-year low. * Euler Hermes Enters AU & NZ Through Lumley General Acquisition ---------------------------------------------------------------- Euler Hermes has finalized its acquisition of Lumley General Insurance's credit insurance portfolio in Australia and New Zealand, Business Credit Management reports. On June 22, 2006, Euler Hermes has signed a letter of intent with Lumley General to acquire its credit insurance activities in Australia and New Zealand. Business Credit relates that the Euler Hermes group has gained a foothold in both countries with its two subsidiaries: 1) Euler Hermes Trade Credit Underwriting Agents, based in Sydney; and 2) Euler Hermes Trade Credit, in Auckland. Lumley General is a subsidiary of the Australian Group Wesfarmers, which ranks among the top 20 listed companies in Australia. It has successfully developed its credit insurance activity during the last five years with a specialized team of credit insurance professionals, Euler said in a statement on June 22, 2006. Euler further said that the credit insurance portfolio in Australia and New Zealand is worth AU$7 million. According to Business Credit, the development of the credit portfolio will ensure Euler Hermes benefits from the strong economic growth in the area. The estimated GDP growth for Australia and New Zealand is 5% to 6% in 2006 and the two countries proved to have attractive economic environment over the last 20 years, Euler said. About Euler Hermes Euler Hermes is the world-wide leader in credit insurance and one of the leaders in bonding and guarantees. With 5,400 employees in 43 countries, Euler Hermes offers a complete range of services for the management of customer receivables. The group posted a EUR2 billion turnover in 2005. Euler Hermes, subsidiary of AGF and a member of Allianz, is listed on Euronext Paris. The group and its principal credit insurance subsidiaries are rated AA- by Standard & Poor's. ================================ C H I N A & H O N G K O N G ================================ CELION LIMITED: Enters Voluntary Liquidation -------------------------------------------- On July 17, 2006, Celion Limited's shareholders have decided to voluntarily wind up the Company's operations. Accordingly, Chiu Wai Hon and Lau Wai Ming were appointed joint and several liquidators for the Company. They will divide any part of Celion Limited' assets among its members as they think fit. The liquidators can be reached at: Chiu Wai Hon Lau Wai Ming Joint and Several Liquidators Rooms 603-4, 6/F., Hang Seng Wanchai Building, 200 Hennessy Road, Wanchai, Hong Kong CHAMPION DATA LTD: Winds Up Business and Appoints Liquidators ------------------------------------------------------------- Shareholders of Champion Data Limited have agreed to wind up the company pursuant to a resolution passed on July 17, 2006. Chiu Wai Hon and Lau Wai Ming were then appointed joint and several liquidators of the Company and were authorized to dispose of the Company's assets and divide the proceeds among the members. The liquidators can be reached at: Chiu Wai Hon Lau Wai Ming Joint and Several Liquidators Rooms 603-4, 6/F., Hang Seng Wanchai Building, 200 Hennessy Road, Wanchai, Hong Kong FARGO CHEMICALS: To Give Final Liquidation Report on August 22 -------------------------------------------------------------- The Troubled Company Reporter - Asia Pacific reported that on March 4, 2006, Fargo Chemicals Marketing Limited's members voted to wind up the Company. Andrew David Ross and Robin Frederick Keppel Radcliffe were then appointed as liquidators. In an update, Fargo Chemicals notifies parties-in-interest that a final general meeting will be held on August 22, 2006, at the 12th Floor, China Merchants Tower, Shun Tak Centre, 168-200 Connaught Road, Central, Hong Kong, in order for members to receive a final report regarding the Company's wind-up and property disposal. The Liquidators can be reached at: Andrew David Ross Robin Frederick Keppel Radcliffe 12th Floor, China Merchants Tower Shun Tak Centre, 168-200 Connaught Road Central, Hong Kong FIRMIANA LIMITED: Creditors' Proofs of Claim Due on August 28 ------------------------------------------------------------- The Troubled Company Reporter - Asia Pacific reported on July 25, 2006, that Firmiana Limited was placed under members' voluntary liquidation through a special resolution dated July 12, 2006. Law Kwan Wah, George, was then appointed as liquidator for Firmiana, and authorized to distribute the Company's assets among its members. Mr. Law now requests the Company's creditors to submit their proofs of claim by August 28, 2006, so as to be included in any distribution. The Liquidator can be reached at: Law Kwan Wah, George George of Room 802, 8th Floor, Chinachem Tower, 34-37 Connaught Road Central, Hong Kong GOLDEN CHEER CONSTRUCTION: To Give Final Report on August 23 ------------------------------------------------------------ Golden Cheer Construction Engineering Company Limited, which is in members' voluntary wind-up, will hold a final general meeting on August 23, 2006, at Level 28, Three Pacific Place, in 1 Queen's Road East, Hong Kong, pursuant to Section 239 of the Companies Ordinance. At the meeting, Golden Cheer's liquidator, Man-Kou Tan, will present to the Company's members a report on its wind-up and disposal of property. The Liquidator can be reached at: Man-Kou Tan Liquidator Flat P, 12th Floor, Kaiser Estate Phase 3, 11 Hok Yuen Street Hung Hom, Kowloon OCEAN GRAND HOLDINGS: S&P Whips Long-Term Credit Rating to 'D' -------------------------------------------------------------- Standard & Poor's Ratings Services had lowered its long-term corporate credit rating on Ocean Grand Holdings Ltd. to 'D' from 'B'. At the same time, it lowered its issue rating on US$160-million senior unsecured notes due 2010 to 'D' from 'B'. The ratings were removed from CreditWatch, where they had been placed with negative implications on July 12, 2006. The downgrades follow an announcement that the Hong Kong Securities and Futures Commission is investigating OGH and its subsidiary, Ocean Grand Chemical Holdings Ltd., in connection with activities that may prove to be fraudulent. The commission is in contact with the police on this matter. The rating action also follows a company announcement that it has appointed a provisional liquidator. "Given a deterioration in the group's cash position, OGH does not have sufficient cash to repay short-term debt past due," said Standard & Poor's credit analyst Bei Fu. OPENET INFORMATION TECHNOLOGY: Appoints Official Liquidator ----------------------------------------------------------- Openet Information Technology Co., Limited, has been placed under members' voluntary liquidation, in accordance with a special resolution passed on July 8, 2006. Chak Chun Keung Thomas has been appointed as liquidator. The Liquidator can be reached at: Chak Chun Keung Thomas Liquidator Room 603, Alliance Building, 130-136 Connaught Road, Central, Hong Kong RESOUND LIMITED: Proofs of Claim Due on August 10 ------------------------------------------------- The Troubled Company Reporter - Asia Pacific reported that on April 7, 2006, Resound Limited's shareholders placed the Company in liquidation and appointed Jacky Chung Wing Muk and Edward Simon Middleton as official liquidators. The liquidators now require creditors of Resound Limited to file proofs of claim by August 10, 2006, to be included in any distribution. The Liquidators can be reached at: Jacky Chung Wing Muk Edward Simon Middleton Joint and Several Liquidators 8/F., Prince's Building 10 Chater Road, Central Hong Kong SITI CHINA: To Hold Final General Meeting on August 21 ------------------------------------------------------ The Troubled Company Reporter - Asia Pacific reported on July 14, 2004, that Siti China Limited has been placed under members' voluntary liquidation and that Nicholas Timothy Cornforth Hill and Stephen Briscoe, of RSM Nelson Wheeler Corporate Advisory Services Limited, have been appointed liquidators. Pursuant to Section 239 of the Companies Ordinance, Siti China will hold a final general meeting of members on August 21, 2006, at 5/F, Allied Kajima Building, 138 Gloucester Road, in Wanchai, Hong Kong, so that they may receive Mr. Briscoe's report on The Company's wind-up and property disposal. The Liqiodator can be reached at: Stephen Briscoe Joint and Several Liquidator 7/F, Allied Kajima Building, 138 Gloucester Road, Wanchai, Hong Kong VERTEX CHINA INVESTMENT: Claim Particulars Due on August 24 ----------------------------------------------------------- Creditors of Vertex China Investment Management Limited, which is undergoing voluntary liquidation, are required to submit the particulars of their claims to the liquidators by Aug. 24, 2006. The creditors may be required by the liquidators to file proofs of claim, via a written notice. Vertex China Investment's liquidators can be reached at: Lai Kar Yan (Derek) Darach E. Haughey Joint and Several Liquidators 35th Floor, One Pacific Place 88 Queensway, Hong Kong WISE FAVOUR TRANSPORTATION: To Hold Final Meeting on August 23 -------------------------------------------------------------- Pursuant to Section 239 of the Companies Ordinance, Wise Favour Transportation Company Limited, which is undergoing a members' voluntary wind-up, will hold a final meeting on August 23, 2006, at Level 28, Three Pacific Place, in 1 Queen's Road East, Hong Kong. At the meeting, members will get a final account of the Company's wind-up and property disposal from Liquidator Man-Kou Tan. The Liquidator can be reached at: Man-Kou Tan Flat P, 12th Floor, Kaiser Estate Phase 3, 11 Hok Yuen Street Hung Hom, Kowloon XCAN ASIA LIMITED: Winds Up Business and Names Liquidator --------------------------------------------------------- Shareholders of XCAN Asia Limited agreed to wind up the Company through a special resolution passed on July 7, 2006. The shareholders' decision was in accordance with Section 116B of the Companies Ordinance and Article 24 of the Articles of Association of XCAN Asia. Subsequently, Lai Kar Yan, Derek, and Darach E. Haughey were named liquidators of the Company. XCAN's creditors must submit proofs of claim by August 7, 2006, so as to be included in any distribution the Company will make. The Liquidators can be reached at: Darach E. Haughey Lai Kar Yan (Derek) Joint and Several Liquidators 35th Floor, One Pacific Place 88 Queensway, Hong Kong * Moody's Sees Stable To Positive Outlook For Chinese Banks ----------------------------------------------------------- Moody's Investors Service says it continues to hold a stable to positive outlook for China's banking sector as its competitive and regulatory environment undergoes increasing change. "Moody's earlier revised the deposit and senior bond ratings of 6 large banks to positive following similar action on China's sovereign rating and country deposit and bond ceilings," says May Yan, a Moody's VP/Senior Credit Officer and the author of the rating agency's latest annual outlook on the Chinese banking sector. "The positive outlooks reflect the strong government support which Moody's expects for the policy banks and big banks. However, the degree of support accorded other banks is likely to differ," she adds. "Meanwhile, the average bank financial strength rating of E+ remains one of the lowest on Moody's global scale, due to the system-wise weak financial fundamentals including relatively low capital, provisioning and profitability," Yan says, noting, "The sector's recently improved financials have not been tested by any downturn." The new report, entitled "Reform and Transformation in an Increasingly Liberalized and Competitive Environment", covers a broad range of topics -- the economic and regulatory outlooks, government support, recent banking sector trends, reform, loan growth, profitability, performances by each banking sector, the role of foreign banks and new businesses. The weighted average for Moody's universe of Chinese banks is A3 for foreign currency deposit and bond ratings and E+ for bank financial strength ratings. "Reform of the large banks is on track, while some shareholding banks have introduced strategic investors and are poised for overseas listings," says Yan, adding, "Moreover, similar reforms have spread to city commercial banks, rural banks and credit coops, while reforms and regulatory initiatives to strengthen operations and lower systemic risk are apparent." Reported NPLs -- a major concern for the sector -- fell in 2005, largely due to the government's carve-out of Industrial and Commercial Bank of China's legacy bad debt. Otherwise, NPL amounts rose a moderate 16.9% YoY at end-March 2006, while NPL ratios were largely flat as banking assets grew rapidly. "However, the banks, particularly the large reformed entities, continue to show very high ratios for special-mention loans, or 2-5x of NPLs. These loans will be vulnerable to changes in economic conditions," the report says. On the closely watched WTO-mandated opening of the Chinese banking sector, the report says the impact will be gradual and will not cause an immediate system collapse. Foreign banks are likely to target high-end retail and multinational corporates in the more affluent coastal regions, and are unlikely to have any plans to replicate the broad network and clientele of the Chinese banks. ========= I N D I A ========= FORD MOTOR: William Clay Ford, Jr., Named President and COO ----------------------------------------------------------- Ford Motor Company's Chairman and Chief Executive Officer, William Clay Ford, Jr., was elected President and Chief Operating Officer effective July 13, 2006, after the retirement of James J. Padilla, the Company's President and Chief Operating Officer, on July 1, 2006. The Company disclosed that Mr. Ford, age 49, has been a director since 1988 and his principal occupation is Chairman of the Board of Directors, CEO, President and Chief Operating Officer. He held a number of management positions within Ford, including Vice President-Commercial Truck Vehicle Center, Chair of the Finance Committee from 1995 until October 30, 2001, elected Chairman of the Board of Directors effective January 1, 1999, and was elected Chief Executive Officer effective October 30, 2001. The Company's Compensation Committee and William Clay Ford, Jr. agreed to amend Mr. Ford's compensation arrangements such that he will forego any new compensation until such time that the Company's Automotive sector has achieved sustainable profitability. Reduction of Board Fees of Non-Employee Directors The Company's board of directors also disclosed that it voluntarily reduced Board fees of non-employee directors by half effective July 13, 2006. The new fees of non-employee directors are: Annual Board membership fee - US$100,000 Annual Committee chair fee - US$2,500 Annual presiding director fee - US$5,000 Some 60% of a director's annual Board membership fee will continue to be mandatorily deferred in the form of common stock units. About Ford Motor Ford Motor Company, headquartered in Dearborn, Michigan, U.S.A., is the world's third largest automobile manufacturer. It has operations all over the world including India. The Troubled Company Reporter - Asia Pacific reported on July 3, 2006, that Moody's Investors Service lowered the Corporate Family and senior unsecured ratings of Ford Motor Company to B2 from Ba3. Standard & Poor's Ratings Services, on the other hand, lowered its corporate credit rating on Ford Motor Co. and its related units to 'B+' from 'BB-' and affirmed its 'B-2' short-term rating. On June 12, 2006, Fitch Ratings downgraded Ford Motor's issuer default rating to B+ from BB, and its senior unsecured ratings to BB- from BB. INDIAN OIL: Warns of Depleting LPG Inventories ---------------------------------------------- Indian Oil Corporation warned that India is likely to experience liquefied petroleum gas shortage following inadequate fuel supply from Reliance Industries Limited's refinery at Jamnagar, The Financial Express reports. State-owned India Oil informed the Government that the LPG production shortfall at sources has resulted in significant depletion of its inventories that have now come to about 2,40,000 metric tonne level as against the month's opening of 275 tmt. LPG retailer India Oil told The Express that it is already in talks with Reliance and had already requested the Petroleum Ministry to instruct Reliance to meet the LPG production targets. Meanwhile, Indian Oil is arranging for additional fuel imports to make up for the LPG deficit and boost its inventories, The Express says. As a state-owned marketing firm, Indian Oil is pressured to look for ways to address the LPG shortfall problem. About Indian Oil Corporation Indian Oil was established as Indian Oil Company Limited in 1959. Indian Oil Corporation was formed in 1964 with the merger of Indian Refineries Limited with the Indian Oil Company Ltd. Indian Oil's countrywide network of over 22,000 sales points is backed for supplies by its extensive, well spread out marketing infrastructure comprising 167 bulk storage terminals, installations and depots, 94 aviation fuelling stations and 87 LPG bottling plants. Its subsidiary, IBP Co. Ltd, is a stand- alone marketing company with a nationwide network of over 3,000 retail sales points. According to press reports, in spite of its large production capacity and smooth operations, Indian Oil incurred huge losses as a result of a Government mandate, which prohibits public sector oil marketing firms from raising fuel prices despite high global prices. For years, Indian Oil has been selling fuel at subsidized prices, which is way below the costs it pays for importing fuel from overseas markets. The Company has not been able to pass on the high prices leading to large under- recoveries and losses. In early 2006, the Government has offered a bailout package to help rescue oil companies, including Indian Oil, from going bankrupt. Under the package, the Government issued Indian Oil, Bharat Petroleum, Hindustan Petroleum and IBP oil bonds worth INR10,000 crore to INR12,000 crore to compensate them for not raising LPG and kerosene prices. The move was expected to improve their balance sheets. UTI BANK: Fitch Assigns C/D Individual Rating --------------------------------------------- Fitch Ratings, on July 26, 2006, assigned an individual rating of 'C/D' to UTI Bank Limited. At the same time, the agency affirmed UTI Bans's national long-term rating at 'AA+(ind)', support rating at '4', and the 'AA+(ind)' national long-term rating assigned to the Bank's INR25 billion subordinated debt programme. The Outlook on the ratings is stable. The ratings of UTI Bank reflect its improved asset quality ratios and diversified income streams. They also take into account the volatility in profits that could result from market risk on its corporate bond portfolio in a rising interest rate scenario. UTI Bank's loan portfolio grew by 43% in the financial year ending March 2006, and has more than quadrupled since fiscal 2002 on the back of an expanding branch network and an enhanced product suite in both its retail and corporate banking. The Bank's net interest margin at 2.6% in FY06, remains lower than its peers; fee income has been a strong contributor to UTI Bank's profitability and has helped to mitigate potential volatility in its earnings due to market risk since FY05. Fitch notes that the Bank's fee income is expected to continue to grow strongly and to support profitability as it did in the first quarter of fiscal 2007 when the Bank booked an INR884 million mark-to-market loss on its treasury portfolio in a rising interest rate scenario. Fitch, however, notes that further steep increases in the interest rate could affect the bank's FY07 profitability through the depreciation on its INR80-billion corporate bond portfolio. UTI Bank's gross non-performing loans remain low at 1.7% of gross loans as of March 2006. This reflects improvements in the Bank's risk management systems, especially for its retail loans, as well as a benign economic environment. The agency, however, notes that its exposure to the commercial real estate sector -- 7.4% of loans -- remains somewhat vulnerable to a steep fall in property prices. Although the Bank's loan loss reserve coverage is lower than its peers -- 42% at FY06 -- its net NPLs remain lower than 10% of its equity. Strong loan growth in FY06 and 1Q/FY07 resulted in a decline in UTI Bank's capital adequacy ratio -- 10.3% at June 2006, Tier 1: 6.7%. Fitch notes that the bank plans to issue hybrid capital instruments to support its loan growth and to meet the tightening prudential norms for capital in the next 12 months. UTI Bank's focus on increasing its stable low-cost funding resulted in an improvement in its average low-cost deposits to total deposits ratio. Fitch, however, notes that its reliance on wholesale funds -- 70% of deposits -- has resulted in some short-term asset-liability mismatches. UTI Bank, which was promoted by government-owned institutions, has fostered the efficiencies of a private bank in its functioning and today is one of the better mid-sized banks in India. Its physical infrastructure includes a network of 355 branches and 1891 ATMs. Retail loans now account for 29% of its loan portfolio. ================= I N D O N E S I A ================= PERUSAHAAN LISTRIK: Implements Second Day of Power Cuts ------------------------------------------------------- PT Perusahaan Listrik extended its power cuts from July 24, 2006, to 4:00 p.m. of July 25, 2006, on the late unlading of fuel supplies for its gas-fired Muara Tawar power plant in North Jakarta, Antara News writes. The Troubled Company Reporter - Asia Pacific stated on July 24, 2006, that PLN had announced that rotational power blackouts would occur in some areas of Jakarta due to the lack of fuel supplies for its power plant. The Company had encouraged consumers to be more efficient in their power use so as to avoid affecting other areas. On July 25, PLN spokesman Mulyo Aji said that the Company apologizes for the inconvenience, but said that it has to extend the power cuts up to 4:00 p.m., when the Muara Tawar power plant would resume operations. Normally PLN uses diesel fuel as backup for its gas-fired power plants during the peak hours from 5:00 p.m. to 10:00 p.m. However, increased power consumption prompted the Company to use its diesel oil generator in the morning as well, using up its fuel supplies ahead of schedule. * * * 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 an IDR4.92-trillion net loss in 2005, against a net loss of IDR2.02 trillion in 2004. As reported in the Troubled Company Reporter - Asia Pacific on June 30, 2006, the Indonesian Government had offered to settle PLN's debt to state oil and gas firm PT Pertamina, which Pertamina claimed has totaled IDR23.9 trillion. However, PLN acting president Djuanda Nugraha Ibrahim said that the Company owes PHP17 trillion to Pertamina. ========= J A P A N ========= KEIYO CO: JCR Affirms BB+ Senior Debts Rating --------------------------------------------- Japan Credit Rating Agency Ltd. had, on July 24, 2006, affirmed its BB+ rating on the senior debts of Keiyo Co., Ltd. with a possible outlook. Keiyo Co. turned profitable on an operating profit basis for fiscal year ended February 28, 2006, on increased same-store sales and the closure of loss-making stores. The Company's earnings are now on the rise. Although the increased capital spending and write-downs deteriorated Keiyo's financial structure significantly for the fiscal year, the Company plans to focus its efforts on reducing its interest-bearing debt for the time being. It is difficult for the Company to establish competitive edge in the face of fierce competition with peer home center operators and other types of operators. JCR will monitor Keiyo's future developments, to determine whether it can establish a management culture that allows it to retain good cash flow generation capability and capital structure. Headquartered in Chiba, Keiyo Co. Ltd. -- http://www.keiyo.co.jp/-- is a home improvement store chain operator. The Company's products include do-it-yourself goods, hardware and tools, health and beauty care goods, clothing and footwear, home electrical appliances, gardening goods, household products, interior goods, car and leisure products, pet products, stationery and toys, home improvement-related merchandise and miscellaneous goods. Through its subsidiaries, the Company is also engaged in the petroleum business, provision of automobile services, home refurbishment business and the operation of shopping centers. Keiyo has six subsidiaries and two associate firms, and operates 160 stores throughout Japan as of February 20, 2006. MITSUBISHI MOTORS: Posts June 06 Production, Sales & Exports ------------------------------------------------------------ Mitsubishi Motors Corporation had, on July 24, 2006, revealed its global production and domestic sales and export results for June 2006, and the first half of the year. Total global production totaled 109,245 units, which is 91.3% of the total for June 2005, whereas local production stood at 60,300 units, 8.5% higher than a year ago, thus marking the thirteenth consecutive month of year-on-year growth in the category. Total domestic vehicle sales came to 19,593 units, a 4.0% rise over last year's level; June was the fourteenth consecutive month of year-on-year sales growth for Japan. Registered vehicle sales declined slightly at 1.0% year-on-year, reflecting weakness in the registered vehicle segment in the Japanese market overall. Minicar sales continued to grow by 6.4% from the June 2005 total. Total passenger car sales sales amounted to 12,560 units, or a 5.0% increase over the previous period, while commercial vehicle sales rose to 7,033 units, or 102.3% of the year ago period total. Overseas production for June 2006 totaled 48,945 units, a 23.7% decline year-on-year. European production increased 26.8% to 10,169 units over last year's total, due to lower production in June 2005 as the European Colt series models were still in the production ramp-up phase last year. Asian production totaled 29,216 units, 65.9% of last year's figure corresponding to weakness in Asian markets such as Indonesia and Taiwan where economic conditions are not favorable for the industry. North American production dropped 16.2% to 6,185 units over the previous period due to a yearly one week summer holiday in June for factory staff (the holiday occurred in July in 2005). Total exports from Japan remained steady at 31,259 units, 99.9% of last year's total. Exports to Europe fell 8,807 units, down 39.3% year-on-year due to inventory rebalancing efforts, while exports to Asia came to 3,446 units, 115.1% of the export volume in the same period last year. Exports to North America, however, grew 200.6% year-on-year, to 5,580 units, on continued normal production levels of the outgoing Outlander (Airtrek) and Lancer models. The June period usually sees a drop in export totals as dealer orders fall before the introduction of new model year versions of vehicles in production. The Outlander (Airtrek) and Lancer models are undergoing full model changes later this fiscal year however, so there will be no new model year versions for these two vehicles. Thus, the 'new model year version' effect described above did not occur. The first six months of 2006 saw total global production of 668,474 units, or 101.3% of last year's levels. Japanese production came to 373,385 units, a 22.2% increase year-on-year. Japanese vehicle sales in the period totaled 144,896 units, up 12.4% from the same period last year, showing evidence of recovery in the domestic market. Passenger car volume came to 104,052 units, or 122.1% of the total for the January - June 2005 period. Commercial vehicle volume dropped to 40,844 units, 93.4% of the previous period's total. Market share for the period improved to 4.9%, an increase of 0.7 percentage points over the market share in the same period last year. Globally, production in Europe for the year totaled 44,486 units, 117.8% of the previous period's total again due to the fact that the Colt series models were still in the production ramp-up phase last year. Production in Asia declined to 188,393 units, or 73.8% of the previous year's due to weak economic conditions in Indonesia, Taiwan, and other markets. Production in North America for the period rose 6.9% year-on-year to 42,333 units. Exports to Europe rose 24.5% over the January - June 2005 period to 66,986 units on continued strong sales growth in Russia and the Ukraine. Shipments to North America fell slightly to 18,021 units, 97.3% of the 2005 totals, and exports to Asia totaled 17,140 units, 91.8% from last year. About Mitsubishi Motors Corp. Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation -- http://www.mitsubishi-motors.co.jp/-- is one of the few automobile companies in the world that produces a full line of automotive products ranging from 660-cc mini cars and passenger cars to commercial vehicles and heavy-duty trucks and buses. The Company also operates consumer-financing services and provides this to its customer base. MMC adopted the "Mitsubishi Motors Revitalization Plan" on January 28, 2005, as its three-year business plan covering fiscal 2005 through 2007, after investor DaimlerChrysler backed out from the Company. The main objectives of the plan are "Regaining Trust" and "Business Revitalization." * * * Japan Credit Rating Agency, Ltd. had on July 18, 2006, upgraded the Company's senior debts rating to BB- from B- with a stable outlook, as its restructuring has been going well as planned, with Mitsubishi group firms increasing their stakes in MMC to 34.3% as of March 31, 2006. SKYLARK CO: S&P Lowers Corporate Credit & Debt Ratings to BB ------------------------------------------------------------ Standard & Poor's Ratings Services had, on July 24, 2006, lowered its long-term corporate credit and senior unsecured debt ratings on Skylark Co. Ltd. by two notches to 'BB' from 'BBB-', on expectations of weakening profitability and a deterioration in the Company's debt structure over the next one to two years, due to an increase in bank borrowings to carry out a management buyout and to enhance the profitability of its existing restaurants. At the same time, S&P removed Skylark's ratings from CreditWatch where they were placed with negative implications on June 9, 2006, after its announcement that it would conduct an MBO through a tender offer for Skylark shares, aimed at privatizing the Company. SNC Investment Co. Ltd., a special purpose company jointly held by Nomura Principal Finance Co. Ltd. (63.33%) and Asia Eateries Holding NV (36.67%), conducted the takeover bid, which was completed in July 2006. Skylark will be delisted from the Tokyo Stock Exchange in late September 2006 and absorbed by SNC in January 2007. SNC financed JPY120 billion out of the JPY280-billion tender offer through bank borrowings, which will increase newly privatized Skylark's debt. The Company will also incur expenses for closures and renovations of existing restaurants, which will decrease funds from operations. This is likely to lower the ratio of FFO to debt to about 10% in the next one to two years from the current level of about 30%. It will also deteriorate Skylark's debt-to-capital ratio to about 60% from 53%, even before the deduction of new goodwill worth JPY200 billion from capital. Another concern is the committed credit line of JPY200 billion, which is to be cancelled. With the Japanese restaurant industry facing increased competition and rising hourly wages and utility charges, organic growth of profitability and cash flow is unlikely. Although Skylark's new management may promote drastic reforms, its plans to close and renovate existing restaurants and develop new business formats are still unclear, and it is too early to incorporate the plans into the ratings assessment as a positive factor. The stable outlook reflects Standard & Poor's expectations that the deterioration in profitability will be temporary. Skylark has strong cost competitiveness, facilitated by its own network of food procurement and delivery centers nationwide, which helps the Company to introduce new restaurant formats and menus. Except for new restaurant openings, capital investment needs are small, and Skylark has established upper limits on new investments. However, the ratings could be downgraded if the post-MBO plan adversely affects the company's competitiveness, or if additional M&A activities further deteriorate the company's financial profile. Conditions and procedures for pre-maturity redemption of outstanding bonds have been disclosed, but the bonds are still unsecured, and their priorities among the company's debt remain unchanged. Therefore, Standard & Poor's maintains its ratings on the senior unsecured debt at a level equal to the corporate credit rating on Skylark. * * * Headquartered in Tokyo, Skylark Co. Ltd. -- http://www.skylark.co.jp/-- operates a chain of family restaurants in Japan through the following divisions: Restaurants and food; Construction and maintenance and Other. The Restaurants and food division engages in restaurant chain operations, sale of food materials and prepared foods, food transportation and cleaning. The Construction division deals with design, construction and repairs of restaurants and maintenance of building facilities. The Other business division deals with wall paper, manufacture and sale of automobile goods, real estate buying and selling and hotels and condominium operations. ========= K O R E A ========= HYNIX SEMICONDUCTOR: Judge Halves Rambus Award ---------------------------------------------- Hynix Semiconductor Inc. gets a reprieve as a federal judge reduced a damage award to Rambus to US$133.4 million from US$307 million for patent infringement, leaving Rambus Inc. the choice of accepting the reduced amount or holding a new trial on damages, the International Herald Tribune reports. A federal court jury in April 2006 awarded Rambus the US$307 million, finding that Hynix had infringed on patents for aspects of dynamic random access memory, the main memory used in computers. Hynix won the reduction in a ruling by Judge Ronald Whyte of the United States District Court for the Northern District of California. Forbes.Com explains that in his order dated July 14, 2006, Judge Whyte ruled that evidence submitted in the case supports a maximum of US$133.6 million in damages, which reflects royalty rates applied in an earlier agreement between Rambus and Hitachi. Hynix Defies Ruling Hynix Semiconductor said that it may end up paying no penalty regarding a patent infringement lawsuit filed against it by the U.S.-based Rambus. Hynix spokesman, Park Hyun told The Korea Times in a telephone interview that "the previous ruling may be overturned in the next trial in August." Hynix and other plaintiffs in the case have argued that Rambus' claims on the patents are invalid. Mr. Park adds that, "the next trial will take place around August when the court will investigate the anti-trust activities of Rambus. If the court rules that Rambus' claims are unreasonable, then all previous rulings will have no meaning." The Rambus Case The Troubled Company Reporter - Asia Pacific reported on June 23, 2006 states that Hynix is a defendant to certain lawsuits brought by Rambus with respect to alleged infringements of Rambus patents by the Company's manufacture, sale, offer for sale, use or otherwise disposal of Single Data Rate Synchronous Dynamic Random Access Memory and Double Data Rate SDRAM products. These litigations have been brought in Germany, France, the United Kingdom and the United States. Rambus is a developer of high-bandwidth chip connection technologies. In 2004, the European Patent Office revoked Rambus' certain key patent asserted against Hynix in the European territory. Accordingly, the litigation in the United Kingdom was dismissed in 2005. Also in 2004, Rambus filed a lawsuit against the Company, its subsidiary in the United States, and other major memory chip manufacturers, alleging that these companies kept Rambus Dynamic Random Access Memory products from entering the market. Moreover, in 2005, Rambus brought another lawsuit against Hynix and its subsidiary in the United States, alleging that the Company and its subsidiary's DDR2 and Graphic DDR SDRAM products have infringed on its patents. In an update, the Financial Times relates that the Hynix/Rambus intellectual property disputes reached a "potential turning point" when a U.S. jury directed the South Korean Company to pay California-based Rambus US$307 million in damages. Yet, Hynix indicated that it would continue to push a separate claim that the patents on which Rambus based its case were anti- competitive, and so should be ruled unenforceable. The report stated that Hynix has set aside about KRW170 billion (US$180 million) to cover various patent suits filed against it. However, analysts believe that the Company may need an additional KRW200 billion if the damages are confirmed in the final ruling. The report notes that Hynix has said it would appeal any negative ruling. About Hynix Semiconductor Headquartered in Ichon, South Korea, Hynix Semiconductor Inc. -- http://www.hynix.com/-- is a semiconductor manufacturer. Through a merger with LG Semiconductor in 1999, Hynix Semiconductor now has the world's largest dynamic random access memory chip production capacity as well as the industry's best technical development capacity by fully exploiting synergies resulting from the historical integration of both companies. Standard & Poor's Ratings Services gave Hynix, and its U.S. subsidiary, Hynix Semiconductor Manufacturing America Inc., a 'B+' long-term corporate credit rating. LG CARD: Offers from Potential Bidders Welcome Until August 11 -------------------------------------------------------------- LG Card Co.'s main creditor, Korea Development Bank, has sent invitations to potential bidders for the credit-card company, kicking off an acquisition deal with an estimated value of more than US$5 billion, the Wall Street Journal reports. According to the WSJ report, the deadline for the bids is on August 11, 2006, and KDB hopes to select a buyer late that month. After LG Card's 14 creditors, led by KDB, have named the winning bidder for a controlling stake in the Company, the selected buyer will purchase the shares through a public tender offer. KDB is acting as a joint-lead manager along with J.P. Morgan Chase & Co. WSJ says that potential bidders include Shinhan Financial Group Co., the Korean unit of Standard Chartered PLC; National Agricultural Cooperative Federation; Hana Financial Group Inc.; and local fund MBK Partners. KDB said that post-acquisition management capability will be a key factor in addition to the acquisition price. The Troubled Company Reporter - Asia Pacific reported on July 12, 2006, that KDB, which holds a 23% stake in LG Card, and the other major creditors, managed to narrow key differences and have formally agreed on the methods of the sale. This after South Korea's Financial Supervisory Service ruled that LG Card should be sold through a public tender instead of a stake sale. According to the Korean security trading regulations, if more than 10 shareholders sell shares in a company outside the market within six months, it should be a tender offer. A tender offer is a takeover bid in the form of a public invitation to shareholders to sell their stock, generally at a price above the market price. Under the public tender offer rule, bidders for a controlling stake should ask minority shareholders about their intention to sell. If the shareholders say yes, they should also buy their shares, along with a controlling stake. In this case, bidders should buy more than a controlling stake to acquire LG Card, and they face a higher price tag. The Korea Times recounts that the reins of the card firm were handed over to KDB and other creditors in 2004 after they rescued it from bankruptcy through a KRW5-trillion debt-for- equity swap and a further KRW1 trillion in bailout funds. About LG Card Co. Headquartered in Seoul Korea, LG Card Co. -- http://www.lgcard.com/-- provides installment finance services and credit card, as well as leasing services to credit worthy companies while acquiring valuable assets from merchant banks and leasing firms. LG Card also finances families wishing to purchase big ticket items such as automobiles, appliances and computers. At the end of October 2003, LG Card had KRW3.24 trillion more debt than assets and had faced threats of liquidity crisis and court receivership. LG Card has been in the hands of creditors since it was rescued from bankruptcy through a KRW5-trillion (US$4.78 billion) debt-for-equity swap and a further KRW1 trillion bailout in late 2004. Creditors are hoping to recover the bailout amount through a sale of the credit card issuer in 2006. LG TELECOM: Loses 3G Service License; CEO Urged to Step Down ------------------------------------------------------------ The South Korean Government has decided to cancel LG Telecom Ltd.'s business license for third-generation services in the country, TechWhack News reports. Bloomberg News cites Rho Jun Hyong, minister of information and communication, as saying that the Government's revocation of the license comes after the Company abandoned plans to develop the 3G wireless communication technology. AFX News Limited relates that the ministry holds LG Telecom's current chief executive officer, Nam Yong, accountable and is seeking for his immediate resignation. The 3G Business License The Korea Times explains that the services associated with 3G provide the ability to transfer both voice data and non-voice data. Video telephony is typically used as the differentiator of the next-generation offerings against traditional 2G applications. LG was forced to buy the license after the Government rejected its bid for the right to operate services based on technology known as wideband code division multiple access, which has emerged as the most common type of 3G technology adopted today worldwide, Bloomberg relates. The WCDMA licenses were awarded to SK Telecom and KT Corp., the parent of KT Freetel, in 2000 for US$1.1 billion each. LG Telecom's Withdrawal of Plan AFX News notes that LG Telecom's withdrawal of plans is due to the project's large investment burden. LG Telecom acquired the license to develop and provide the technology in 2001 for KRW1.15 trillion. The Company has paid KRW220 billion as initial payment, and, under the agreement, would have to pay off the remaining KRW930 billion over 15 years. According to AFX News, LG Telecom failed to comply with its promise to start the 3G services in the 2-gigahertz bandwidth by the end of June 2006. Techwhack explains that LG Telecom saw a lack of interest and business viability in the venture, making it reconsider the decision. LG Telecom reveals that it is now concentrating on its own Evolution Data Optimized technology, which it claims is more economical and viable for the markets around the world. AFX News says that the Government plans to give back KRW100 billion to LG Telecom. Yet, Bloomberg cites Kang Dai Young, who heads telecommunications policy as deputy minister, as saying that the Company will probably have to pay about KRW100 billion for use of the 2 gigahertz frequency it was granted in 2002. CEO Asked to Resign Bloomberg says that CEO Nam, who's been heading LG Telecom since 1998, will have to step down from his job, as stipulated by domestic telecommunications law. The Times recounts that CEO Nam had announced that LG Telecom will not comply with the pledge of its 3G launch in consideration of technical trends in the global wireless market. The license cancellation and CEO Nam's ouster will be completed following a hearing on the matter soon, Minister Rho said, without saying when. About LG Telecom Headquartered in Kangnam-gu, Seoul, South Korea, LG Telecom Ltd. -- http://www.lgtelecom.com/-- is a telecommunications and mobile phone operator controlled by the LG Group, one of the country's largest chaebol. It is Korea's smallest wireless operator. LG Telecom became one of the first companies to launch a commercial 3G service using PCS technology. In 1997, this was followed up by launching the second PCS network, offering greatly increased data transmission speeds. LG Telecom also offers a variety of internet services. BankOn is one of the most popular mobile banking services in South Korea and MusicOn is a popular instant messenger. Moody's Investor Service gave LG Telecom a 'Ba2' Issuer Rating, a 'Ba2' Long-Term Corporate Family Rating and a 'Ba2' Senior Unsecured Rating. Standard & Poor's Ratings Services gave LG Telecom 'BB+' Long- Term Foreign Issuer Credit and Long-Term Local Issuer Credit Ratings. Fitch Ratings gave the Company 'BB' Long-Term Foreign Issuer Default and Foreign Currency Long-Term Default Ratings. WOORI BANK: Gets KRW448 Billion in Internet Banking Deposits ------------------------------------------------------------ Woori Bank has attracted KRW448 billion worth of deposits through its Internet time deposits one year after the release of the product, The Korea Times reports. Woori Bank's online service currently has 24,900 accounts, and provides an interest rate of up to 5%, about 0.5 of a percentage point higher than off-line deposits. According to the report, this comes as Internet banking picks up in South Korea due to the preferential deposit and lending rates depositors get if they do various banking deals via the Internet. The Korea Times states that, according to the National Computerization Agency, the number of customers registered for Internet banking services reached almost 27 million in 2005, or 56% of the South Korea's entire population. As of the end of 2005, Internet banking users registered with the nation's 18 banks and Korea Post, the state-run postal service agency, increased 5.2% from the previous year to 26.74 million. The number of certificates for Internet banking issued by the Korea Financial Telecommunications & Clearings Institute came to 7.69 million last year, up 13.4% from a year earlier. Daily banking transactions via the Internet amounted to 11.12 million, including 9.2 million, or 82.7% of the total, for checking account balances and 1.92 million, or 17.3%, for money transfers, says The Times. The number of daily mobile banking service transactions -- services through mobile handsets such as cellular phones -- taking place in the nation's banks and Korea Post more than doubled to 300,000 last year, the NCA said. About Woori Bank Woori Bank -- http://www.wooribank.com/-- is a government-owned bank headquartered in Seoul, Korea. The bank was established in 2002, and includes the former Hanbit Bank, Sangup Bank and Hanil Bank. It is a part of the Woori Financial Group. It has branches all over the world, including New York, Los Angeles, Beijing, Tokyo, Hong Kong, Indonesia, Bahrain, Singapore, Moscow, London, and Dhaka. * * * Fitch Ratings gave Woori Bank an individual rating of 'B/C' effective July 20, 2005. Moody's Investors Service gave Woori a 'D+' Bank Financial Strength Rating effective March 14, 2006. Standard & Poor's Ratings Services gave Woori Bank a 'C+' Bank Financial Strength Rating. WOORI BANK: Finance Ministry Okays HK Unit Launch ------------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on July 25, 2006, Woori Bank has been considering listing its investment banking unit in Hong Kong -- Woori Global Markets Asia Ltd. -- via an initial public offering. Woori Global intends to start HK operations in August 2006, and hopes that the planned IPO could come after three years, in which time it is expected to generate as much as US$300 million in annual profit. In an update, The Korea Times relates that after more than a year of planning, Woori Bank has secured the Finance Ministry's green light yesterday to launch Woori Global Markets Asia Ltd. According to the follow-up report, Woori is seeking to raise as much as 40% of its total initial capital of US$50 million from two global financial institutions in order to compete with high profile investment banks equipped with solid corporate brand image and networking. The Hong Kong unit also plans to hire 15 high-flying investment bankers with work experience for global banking. The Times notes that around 90 Korean banks entered Hong Kong before the 1997-98 financial crisis but a lack of risk management skills and their reckless management styles forced them to shut down the offshore business. To avoid the same missteps, Woori Bank will adopt a strict performance-based pay scheme and its daily operations will be independent from headquarters, Woori Global Markets Head Hyun Sang Soon said. Woori Global Markets aims to cater to both local and foreign companies in the ex-Japan Asian market and other global emerging markets, Mr. Hyun said. Their target clients are in-bound clients hoping to enter the Korean market and Korean companies keen on expanding into the developing countries. About Woori Bank Woori Bank -- http://www.wooribank.com/-- is a government-owned bank headquartered in Seoul, Korea. The bank was established in 2002, and includes the former Hanbit Bank, Sangup Bank and Hanil Bank. It is a part of the Woori Financial Group. It has branches all over the world, including New York, Los Angeles, Beijing, Tokyo, Hong Kong, Indonesia, Bahrain, Singapore, Moscow, London, and Dhaka. * * * Fitch Ratings gave Woori Bank an individual rating of 'B/C' effective July 20, 2005. Moody's Investors Service gave Woori a 'D+' Bank Financial Strength Rating effective March 14, 2006. Standard & Poor's Ratings Services gave Woori Bank a 'C+' Bank Financial Strength Rating. =============== M A L A Y S I A =============== AVANGARDE RESOURCES: Fails to Submit FY2005 Audited Report ---------------------------------------------------------- Avangarde Resources Berhad has failed to submit to Bursa Malaysia Securities Berhad its annual audited accounts for the financial year ended December 31, 2005, which was due on April 30, 2006. The Bourse warns that it may suspend or delist the Company's shares if it fails to issue the outstanding financial statements by July 30, 2006. As reported in the Troubled Company Reporter - Asia Pacific on March 10, 2006, Bursa Malaysia had decided to remove Avangarde's securities from the Official List after the Company failed to submit outstanding financial reports. However, on March 17, 2006, the Bourse deferred its decision to delist the Company's securities after Avangarde submitted its appeal against it. The Company's securities have already been suspended from trading since April 1, 2004, after it failed to issue its 2002 and 2003 Annual Audited Accounts. About Avangarde Resources 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. As of March 31, 2006, the Company's balance sheet showed total assets of MYR20,344,000 and total liabilities of MYR147,506,000 resulting into a shareholders' deficit of MYR127,162,000. DATUK KERAMAT: Revamp Plan Delays Submission of 2005 Accounts ------------------------------------------------------------- Datuk Keramat Holdings Berhad has not issued its Annual Audited Report for fiscal 2005, which was due on July 31, 2006. The Company explains that it is still in the process of working on a proposed restructuring scheme as announced earlier to Bursa Malaysia Securities Berhad. The expected date to submit the Report will depend on the outcome of the proposed restructuring scheme. As reported by the Troubled Company Reporter - Asia Pacific on May 29, 2006, the Company's securities have already been suspended since August 1, 2005, because it has not issued the Annual Audited Accounts and Annual Report for the 15-month period ended December 31, 2004, Quarterly Reports for the periods ended March 31, 2005, June 30, 2005, and September 30, 2005, by the given due dates. The TCR-AP also noted that the Company has failed to submit its quarterly report for the period December 31, 2005, to the Bursa. The report was due on February 28, 2006. Further, on June 6, 2006, the TCR-AP reported that Datuk Keramat has not issued its first quarterly report ended March 31, 2006, which was due on May 31, 2006. About Datuk Keramat Holdings Headquartered in Pulau Pinang, Malaysia, Datuk Keramat Holdings Berhad is engaged in investment and property holding. The Company is also involved in management services; property investment services; project management services and development; credit and financing activities; distribution and publication of magazines; media design and advertising; management of supermarket and departmental store; trading and distribution of pharmaceutical, management of car park, garment manufacturing and financial services. The Group faced numerous suits filed by financiers and trade creditors who have alleged that outstanding debts are owed to them. On January 24, 2005, the Company was served with a wind-up petition by Affin Bank Bhd, who claimed a sum of MYR15.66 million as of May 31, 2002, in respect of revolving credit facilities granted to the Company. The Company has been suffering tight liquidity and is facing delisting due to its failure to submit its financial reports to Bursa Malaysia. In an effort to settle the debts and come to an agreement with the creditors, the Companies had prepared an initial scheme for the purposes of a debt restructuring scheme under Section 176(10) of the Companies Act, 1965. GEORGE TOWN: Unable to Submit 2005 Accounts on Time --------------------------------------------------- George Town Holdings Berhad is unable to submit its Annual Audited Accounts for 2005 due on April 30, 2006, as it is still working on a proposed restructuring scheme to be submitted to Bursa Malaysia Securities Berhad for approval. The Company may be suspended or delisted from the Official List if it fails to submit the reports at the time stipulated by the Bourse. As reported by the Troubled Company Reporter - Asia Pacific on May 26, 2006, the Company's securities have already been suspended since August 1, 2005, because the Company has not issued its Annual Audited Accounts and Annual Report for the 15- month period ended December 31, 2004, Quarterly Reports for the periods ended March 31, 2005, June 30, 2005, and September 30, 2005, by the given due dates. The TCR-AP also reported that the Company has failed to submit its quarterly report for the period ended December 31, 2005, to Bursa Malaysia Securities Berhad for public release on February 28, 2006. The TCR-AP further reported on June 5, 2006, that George Town has not issued its First Quarterly Report ended March 31, 2006, which was due on May 31, 2006. About George Town Holdings Berhad Headquartered at Petaling Jaya, in Selangor Darul Ehsan, Malaysia, George Town Holdings Berhad operates supermarkets, department stores and convenience stores. Its other activities include property development, trading in pharmaceutical products, media design and advertising, management services, goldsmith and jewelers, management of car parks, bakery, pastry and fast food center, financial services, hotel management and investment holding. The Group operates in Malaysia, Continental Europe/Offshore Islands and other countries. The Company has been suffering losses since 1999 due to stiff competition. It had closed over 10 outlets in the past four years. The Company expects cutthroat competition among retailers to put continuous pressure on its margins. The Company is also facing a possible delisting from the official list of the Bursa Malaysia Securities for failing to submit its financial reports on time. The Company is classified under the Bursa Malaysia Securities Berhad's Practice Note 17 category, where it is required to submit a plan to regularize its financial condition. MANGIUM INDUSTRIES: Sawmilling Arm Defaults on Bank Facilities -------------------------------------------------------------- Mangium Industries Berhad's wholly owned subsidiary, Mangium Sawmill Sdn Bhd, has not paid and is deemed to have defaulted in its repayments on unsecured facilities granted by Standard Chartered Bank Malaysia Berhad and Southern Bank Berhad. Mangium Sawmill's estimated total outstanding as of June 30, 2006, amounts to MYR15,518,580. To address the default in payments, both Standard Chartered Bank and Southern Bank have agreed to the Proposed Debt Settlement and Restructuring Scheme announced by Mangium Industries on December 22, 2003. The loan facilities represent Mangium Sawmill's borrowings and as a result of their default, the remaining facilities granted by other lenders to the Subsidiary are all technically in default by virtue of the "Cross Default" clauses in the Letter of Offers. However, the lenders have kept in view further legal action since Mangium Industries is in active negotiations with them to normalize and regularize the accounts. Since Mangium Industries is the guarantor for the loans, it is liable for the full amount and any further interest and financial cost levied or until the settlement of these debts. Due to the unfavorable timber market and depressed prices for timber and timber related products throughout Asia since the financial crisis in 1997, many of the Group's buyers were adversely affected and are facing financial difficulties. The buyers were unable to settle their outstanding balances despite efforts made by the management to collect outstanding debts with the Group. As a result, the cashflow generated from operations was not sufficient to service the interest and principal obligations to the lenders as and when they fell due, the Company explains. About Mangium Industries Berhad Headquartered in Kuala Lumpur, Malaysia, Mangium Industries Berhad -- formerly known as Serisar Industries Berhad -- manufactures and trades timber and timber related products. The Company also provides printing services, publisher, printer consultants and advertisers, trading of alcoholic beverages, general trading of office furniture and investment holding. Due to the unfavorable timber market and depressed prices for timber and timber related products throughout Asia since the financial crisis in the year 1997, many of the MIB Group's buyers were adversely affected and are facing financial difficulties leading to their inability to settle their outstanding balances. As a result, the cash flow generated from operations was not sufficient to service the interest and principal obligations to the lenders as and when they fell due. As of March 31, 2006, the Company registered accumulated losses of MYR16.29 million, as against accumulated losses of MYR19.25 million as of March 31, 2005. For the quarter ended March 31, 2006, the Company has a cash flow deficit of MYR25.9 million. MBF CORPORATION: Lists and Quotes 124,000 New Shares ---------------------------------------------------- MBf Corporation Berhad's additional 124,000 new ordinary shares of MYR1 each will be listed and quoted at Bursa Malaysia Securities Berhad today, July 26, 2006. The additional shares were derived from the conversion of MYR124,000 redeemable convertible secured loan stocks. About MBf Corporation 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 avoid getting delisted. MBF HOLDINGS: CEO Intends to Deal in Securities at Closed Period ---------------------------------------------------------------- MBf Holdings Berhad's chief executive officer, Ninian Mogan Lourdenadin, intends to deal in the securities Company during the closed-period prior to the targeted date of announcement to Bursa Malaysia Securities Berhad of the quarterly results for the second quarter ended June 30, 2006. Dr. Lourdenadin is a substantial shareholder of MBf Holdings. As of July 24, 2006, Dr. Lourdenadin indirectly holds 354,931,169 or 62.26% shares in the Company, and 174,026,512 or 65.65% warrants. Dr. Lourdenadin also indirectly owns: -- US$13,324,549 of 69.27% of the Company's Class A guaranteed floating rate redeemable convertible secured loan stocks; and -- US$1,948,802 of 34.40% of Class B guaranteed floating rate redeemable convertible loan stocks. About MBf Holdings Headquartered in Selangor Darul Ehsan, Malaysia, MBf Holdings Berhad is involved in retailing and wholesaling of merchandise, shipping, automotive and heavy earthmoving equipment and printing of packaging boxes. Its other activities include copra, cocoa, coffee and tea production, issuing of credit cards, acquiring merchants and other related services, provision of financial services, provision of property management, investment in properties, property development including dealing in land and estate management, club management, development and sale of membership of a recreational club, education and investment holding. The Group's operations are carried out in Malaysia, other Asean countries including Singapore, Thailand and Philippines, Hong Kong, South Pacific Islands, Australia and United States of America. Over the years of 1997 and 1998, the ravages of the Asian economic crisis adversely affected the operations of the MBf Group. Given the substantial debt and accumulated losses suffered, MBf Holdings sought protection under Section 176(1) of the Companies Act 1965. MBf Holdings obtained court orders to propose a scheme of arrangement to restructure its borrowings with its lenders and selected creditors and to restrain its creditors from commencing recovery action. The Scheme was completed on June 30, 2003. Included in the Scheme was a debt- restructuring scheme, which excluded the lease, hire-purchase liabilities, general unsecured liabilities and amounts owing to subsidiary and associated companies. The lease, hire-purchase and general liabilities were to be addressed in the ordinary course of business. However, the Scheme made no provision for the settlement of the Inter-company Loans, which the Group is now having problems with. MENTIGA CORPORATION: Incorporated Computer Service Unit ------------------------------------------------------- Mentiga Corporation Berhad has incorporated Mentiga Innovation Sdn Bhd on July 21, 2006. Mentiga Innovation is principally engaged in providing telecommunication application services and other computer- related services. It has an issued and paid-up share capital of MYR2 comprising two ordinary shares of MYR1 each. The subscribers' shares of Mentiga Innovation were registered under the name of these nominees, with one subscribers' share each: * Muhammad Nasir Bin Puteh; and * Abu Bakar Bin Jani The Troubled Company Reporter - Asia Pacific reported on July 24, 2006, that Mentiga Corporation had incorporated its mining subsidiary, Mentiga Mining Sdn Bhd. About Mentiga Corporation Headquartered in Pahang Darul Makmur, Malaysia, Mentiga Corporation Berhad is engaged in the trading of timber products, construction and property development and management and advisory services to oil palm plantations. In 2003, the Company proposed to undertake a debt-restructuring program to settle its debt with creditors. The Company has been suffering losses in the past years and is currently working to avert a possible delisting from the Official List of Bursa Malaysia Securities. The Group has submitted a revised comprehensive proposal to the Securities Commission on March 16, 2005, to regularize its financial condition and to restore the Group's shareholders' fund from being in a deficit position in order to remove Mentiga from being classified as a Practice Note 4 company. As of March 31, 2006, the Company's balance sheet revealed total assets of MYR86,233,000 and total liabilities of MYR152,048,000, resulting in a shareholders' deficit of MYR65,815,000. NORTH BORNEO: Buys More Time to Complete Restructuring Scheme ------------------------------------------------------------- The North Borneo Corporation Berhad seeks to extend the time within which it must complete the implementation of its Revised Restructuring Scheme from July 23, 2006, to January 22, 2007. The withdrawal of support by two of the Company's creditors has delayed its restructuring, the Company explains. As reported in the Troubled Company Reporter - Asia Pacific on April 28, 2005, the Securities Commission has agreed to North Borneo's proposal to dispose of its business as part of efforts to regularize its finances. The Plan, however, met objections from two creditors -- Sabah Development Bank and Prokhas Sdn Bhd. Sabah Development Bank said that it is no longer agreeable to the terms of the planned North Borneo Group disposal as part of the restructuring program. Prokhas Sdn Bhd also took back its pledge to participate in the Company's rehabilitation, TCR-AP recounts. The Bursa Securities has reminded the Company that it must continue to comply with the various obligations imposed under Paragraph 8.14 of the Bursa Securities Listing Requirements and Practice Note 4 to regularize its financial conditions within the time frames prescribed by the Securities Commission About The North Borneo Headquartered in Sabah, Malaysia, The North Borneo Corporation Berhad engages in the management of forest management unit and investment holding. The Group operates in Malaysia and Bermuda. Due to its continuous losses, the Kuala Lumpur Stock Exchange placed the Company under the Practice Note 4/2001 category in April 2001 and was ordered to start regularizing its financial condition. On April 28, 2005, the Securities Commission has agreed to North Borneo's proposal to dispose of its business as part of the Company's efforts to regularize its finances and restructure its debts. The Plan, however, met objections from creditors. On March 6, 2006, two scheme creditors of North Borneo Corp. -- Sabah Development Bank and Prokhas Sdn Bhd -- withdrew their support of the Company's proposed debt restructuring, saying that they are no longer agreeable to the terms of the planned business disposal as part of the restructuring program. The Company's March 31, 2006, balance sheet showed total assets of MYR1,662,000 and total liabilities of MYR163,379,000 resulting into a MYR161,717,000 deficit in shareholders' funds. NORTH BORNEO: Faces Delisting Over Failure to File 2005 Report -------------------------------------------------------------- Bursa Malaysia Securities Berhad is likely to suspend or delist the securities of The North Borneo Corporation Berhad if the Company fails to submit its financial report for fiscal year ended December 31, 2005, by July 30, 2006. The Report was supposedly due on April 30, 2006. The Company explains that the resignation of its auditors, Ernst & Young's caused its inability to comply with the requirement. The resignation prompted The North Borneo to apply for extension of time to table its 2005 Accounts on July 30 instead of April 30, the Troubled Company Reporter - Asia Pacific reported on May 5, 2006. The Company has recently nominated a new firm to replace Ernst & Young as its auditors. Once its shareholders confirm the appointment of new auditors, the Company will be able to issue its outstanding accounts in compliance with statutory requirements. Meanwhile, the Bourse informed that the Company's securities has been suspended from trading since April 19, 2002, since the Company had failed to make a Requisite Announcement pursuant to Practice Note 4/2001 which was due on February 26, 2002. About The North Borneo Headquartered in Sabah, Malaysia, The North Borneo Corporation Berhad engages in the management of forest management unit and investment holding. The Group operates in Malaysia and Bermuda. Due to its continuous losses, the Kuala Lumpur Stock Exchange placed the Company under the Practice Note 4/2001 category in April 2001 and was ordered to start regularizing its financial condition. On April 28, 2005, the Securities Commission has agreed to North Borneo's proposal to dispose of its business as part of the Company's efforts to regularize its finances and restructure its debts. The Plan, however, met objections from creditors. On March 6, 2006, two scheme creditors of North Borneo Corp. -- Sabah Development Bank and Prokhas Sdn Bhd -- withdrew their support of the Company's proposed debt restructuring, saying that they are no longer agreeable to the terms of the planned business disposal as part of the restructuring program. The Company's March 31, 2006, balance sheet showed total assets of MYR1,662,000 and total liabilities of MYR163,379,000 resulting into a MYR161,717,000 deficit in shareholders' funds. SBBS CONSORTIUM: Faces Further Suspension or Delisting ------------------------------------------------------ SBBS Consortium Berhad has failed to submit its annual audited accounts for the fiscal year ended December 31, 2005, to Bursa Malaysia Securities Berhad for public release by the April 30, 2006, deadline. Pursuant to the Bourse's Listing Requirements, a listed issuer may face suspension or delisting if it fails to issue the outstanding financial statements within three months from the stipulated deadline. SBBS Consortium's securities had already been suspended since March 31, 2006, due to a wind-up order issued by the High Court on March 29, 2006. About SBBS Consortium Headquartered in Kuala Lumpur, Malaysia, SBBS Consortium Berhad is engaged in the trade, manufacture and sale of molded and sawn timber and other wood-based products. Its other activity is investment holding. Due to its inability to service loan facilities, the Company had entered into various negotiations with its bank creditors, and in order to ensure that these creditors are treated on a pari passu basis, the Company had ceased making repayments to its bank creditors on an ad-hoc basis. As a consequence of this treatment, its bank creditors have taken various measures to recover their outstanding loans. Negotiations between the Company and its bank creditors are nonetheless, still continuing. The Company is considering various sources of new business and funds to address its financial position, and had on June 24, 2005, appointed Covenant Equity Consulting Sdn Bhd to advise on its options. Currently, the Company is working to implement corporate rehabilitation exercises to turn its business around. On May 9, 2006, the SBBS acknowledged that it belongs to Bursa Malaysia Securities Berhad's Practice Note 17/2005 category because it is insolvent by virtue of the wind-up order granted by the Kuala Lumpur High Court on March 29, 2006. TRU-TECH HOLDINGS: Decides to Scrap Proposed Revamp Deal -------------------------------------------------------- After an in-depth consideration and deliberation, Tru-Tech Holdings Berhad decides not to proceed with a proposed restructuring agreement with Mahabuilders Sdn Bhd. The Troubled Company Reporter - Asia Pacific reported on June 22, 2006, that Tru-Tech Holdings had on June 15, 2006, received and accepted a letter of intent from Mahabuilders to commence negotiations and endeavor to reach a definitive agreement on the terms and conditions of a restructuring proposal for Tru-Tech. According to the TCR-AP, Mahabuilders is a property development and construction company with the necessary profit track record and other quantitative requirements for compliance with the Securities Commission Policies and Guidelines on Issue/Offer of Securities for undertaking the takeover of listed distressed companies. A restructuring plan was proposed to be discussed based on: * a capital reduction and consolidation of the existing share capital of Tru-Tech; * an acquisition of the existing share capital of Mahabuilders and its related companies based on a pro forma net asset valuation; * a scheme of arrangement with existing creditors of Tru-Tech; * a placement of shares offer for sale to public shareholders; and * a transfer of the listing status of Tru-Tech to a NewCo to be set up for the purposes of the restructuring proposal. About Tru-Tech Holdings Headquartered in Ulu Tiram Johor, Malaysia, Tru-Tech Holdings Berhad's principal activity is the manufacturing of electronic components and products. Its other activities include development and distribution of switch-mode power supplies and investment holding. The Group operates in Malaysia, Singapore, United States and United Kingdom. On May 27, 2004, Tru-Tech announced a series of proposed corporate exercises to address its losses. These include the incorporation of a new entity as Tru-Tech's holding company, and the disposal of its existing contract-assembly business to a third party. Much of Tru-Tech's future performance will hinge on its ability to restructure its debts and resolve its poor liquidity. Bursa Malaysia Securities Berhad, on May 26, 2006, decided to suspend trading in the securities of Tru-Tech Holdings Berhad from June 5, 2006, as the Company has failed to regularize its financial condition pursuant to the Bourse's Listing Requirements. The Company's March 31, 2006, balance sheet showed total assets of MYR43,930,000 and total liabilities of MYR131,614,000, resulting into a stockholders' deficit of MYR87,684,000. * Malaysia's Consumer Asset Quality of Some Concern, Fitch Says --------------------------------------------------------------- Fitch Ratings said on July 24, 2006, that while Malaysia's banking system remained generally healthy over 2005 and the first quarter of fiscal 2006, pockets of weakness exist in the consumer loan segment. The agency said that this has been compounded by the rapid growth in consumer lending in recent years as well as the high level of non-performing loans in the residential mortgage segment, the largest loan segment at 27% of system loans. Fitch made these cautionary remarks while noting that Malaysia's banks saw profitability sustained, system non-performing loans lower and capital ratios reduced but generally still adequate. "While structural factors are at work including the challenge of unresolved legacy loans from the crisis days as well as some amount of directed lending to the low-cost housing loan segment, Fitch is of the opinion that more fundamental improvement in the area of credit controls and risk management practices among some of the Malaysian banks are also required," said Tan Lai Peng, director, Financial Institutions Asia. The acquisition of Southern Bank by government-linked Bumiputra- Commerce Holdings could mark the start of a new round of consolidation among Malaysia's 10 banking groups. Notwithstanding regulators' reiteration that the pace of M&A will be driven more by the market, Bumiputra's move on Southern Bank suggests that government-linked banking entities will remain active participants in the consolidation process. Fitch believes that this corresponds to regulators' initiatives undertaken to enhance the efficiency and competitiveness of domestic financial institutions, in order that they become better equipped to face the challenges of liberalization under the Financial Sector Master Plan. While consolidation is generally viewed as positive as it can result in smaller banks being absorbed by stronger entities, the agency highlights the need to be mindful of the potential execution risk and its effect on the acquiring bank's capital ratios. In a just released report on "Malaysian Banks - Performance in 2005, Outlook and Other Key Issues', Fitch provides an overview of the Malaysian banks' performance in calendar year 2005, the outlook for lending and asset quality this year, and discusses some salient issues on consumer lending, highlighting some of Fitch's concerns over the high and increasing NPLs in the residential mortgage segment (gross NPL ratio of 9.4% at end- 2005). While the situation requires monitoring, Fitch also recognizes the mitigating effects on potential systemic risks from the generally benign macroeconomic conditions in Malaysia. ===================== P H I L I P P I N E S ===================== ALLIED BANK: Posts PHP440-Million Net Income in First Quarter ------------------------------------------------------------- Allied Banking Corp. reported a net income of PHP440.94 million for the quarter ended March 31, 2006, from a net income of PHP339.53 million for the quarter ended March 31, 2005. Allied Banking's and its subsidiaries' consolidated total assets as of March 31, 2006, was PHP147.93 billion, compared with the PHP146.77 billion in total assets as of December 31, 2005. Allied Bank's consolidated total liabilities as of March 31, 2006, was PHP132.73 billion, compared with the total liabilities of PHP131.76 billion as of December 31, 2005. The Group's capital adequacy ratio covering the combined credit and market risks reported to the Bangko Sentral Ng Pilipinas of 19.30% surpassed the 18.55% recorded as at December 2005. Return on assets increased to 1.20% as of March 2006 from 0.94% as of December 2005, and return on equity grew to 14.01% as of March 2006 from 9.80% as of December 2005. Allied Bank's non-performing loan ratio dropped to 9.37% from 12.80%, as its non-performing loans dropped to PHP5.26 billion from PHP7.96 billion, since the Company had sold PHP2.63 billion of its NPLs to SPV. The ratio of total operating expenses to total income improved to 79.56% in March 2006 from 82.54% in March 2005. Allied Bank has various commitments and contingent liabilities such as guarantees, forward exchange contracts, commitments to extend credit and standby letters of credit amounting to PHP40.11 billion, but the Company believes that the ultimate liability, if any, from these cases will not affect its financial position or operations. About Allied Banking Corp. Allied Banking Corporation -- http://www.alliedbank.com.ph/-- is a universal bank incorporated in the Philippines on April 4, 1977. The Company and its subsidiaries/affiliates are engaged in all aspects of banking, financing and leasing to personal, commercial, corporate and institution clients. Allied Bank offers a full range of domestic and international banking products and services including deposit taking, lending and related services, domestic and foreign fund transfer, treasury, foreign exchange and trust services. In addition, the Bank is licensed to enter into regular financial derivatives as a means of reducing and managing the bank's and its customers' foreign exchange exposure. Allied Bank has international offices in Australia, China, Guam, Hong Kong, Singapore, the Middle East, United Kingdom, Germany, Italy, Spain, and the United States. * * * Fitch Ratings gave Allied Bank a 'D' Individual Rating. Moody's Investors Service rated Allied Bank's Long-Term Bank Deposits 'B1' with a negative outlook. Moody's also gave the Bank an 'E+' Bank Financial Strength Rating. BANKARD INC: GE Unit to Buy Bankard ----------------------------------- Bankard Inc. said that its board has accepted the proposal of GE Consumer Finance, a unit of General Electric Co., to purchase the Company's assets and assume all business-related liabilities, the Philippine Daily Inquirer reports. Bankard said in a statement that the purchase offer would be submitted to stockholders for approval in a meeting set on July 28, 2006, although it did not reveal the purchase price. About GE Money With US$163 billion in assets, GE Money -- http://www.geconsumerfinance.com/-- is a unit of General Electric Company and is a leading provider of credit services to consumers, retailers and auto dealers in approximately 50 countries around the world. GE Money, based in Stamford, Connecticut, offers a range of financial products, including private label credit cards, personal loans, bank cards, auto loans and leases, mortgages, corporate travel and purchasing cards, debt consolidation and home equity loans and credit insurance. More information can be found at http://www.gemoney.com/ General Electric's financial services unit GE Money launched its banking operations in the country with the opening of a 30- branch network under GE Money Bank Philippines. The GE subsidiary acquired Keppel Bank Philippines late last year from Keppel Corp. of Singapore for 1.45 billion pesos, and rebranded the bank. About Bankard Bankard, Inc. -- http://www.bankard.com/-- is a 67%-owned subsidiary of RCBC Capital Corporation. It was organized by PCIBank on 04 December 1981 as Philippine Commercial Credit Card, Inc. to engage in domestic credit card operation. Thereon, it issued the country's first credit card by a commercial bank. On July 8, 1992, PCCCI changed its corporate name to Bankard Inc.. Bankard is a licensee of Mastercard International Incorporated, JCB International Co., Ltd. and VISA International Service Association to issue credit cards accepted by affiliated banks and merchant establishments worldwide. The Company markets a line of credit cards, which includes Bankard MasterCard, Bankard Visa, Bankard JCB Standard and Premiere and its latest, myDream JCB. Bankard's total current assets as of March 31, 2006, stood at PHP3.58 billion, while its total current liabilities amounted to PHP4.44 billion. Bankard's total assets amounted to PHP4.48 billion, and its equity was pegged at PHP32.17 million. The Company posted a PHP242.59-million net loss for the quarter ended March 31, 2006, on total revenues of PHP494.33 million, and expenses of PHP736.93 million. About RCBC Rizal Commercial Banking Corporation -- http://www.rcbc.com/ -- is a universal bank principally engaged in all aspects of banking, and provides services such as deposit products, loans and trade finance, domestic and foreign fund transfers, treasury, foreign exchange and trust services. In addition, the Bank is licensed to enter into forward currency contracts to service its customers and as a means of reducing and managing the Bank's foreign exchange exposure. Moody's Investors Service gave Rizal Commercial Banking's Long Term Bank Deposits a Ba3 rating effective May 25, 2006. BENPRES HOLDINGS: Appoints Audit Committee Members & Officers ------------------------------------------------------------- In a disclosure to the Philippine Stock Exchange, Benpres Holdings corp. informs that at its organizational meeting held on July 14, 2006, the Company appointed these persons as officers and members of its Audit Committee: Oscar M. Lopez - Chairman & Chief Executive Officer Manuel M. Lopez - Vice Chairman Angel S. Ong - President & Chief Operating Officer Eugenio Lopez III - Treasurer Elpidio L. Ibanez - Chief of Staff with rank of Executive Vice-President Augusto Almeda-Lopez - General Counsel with rank of Executive Vice-President Federico R. Lopez - Executive Vice-President, Regulatory Management Felipe B. Alfonso - Executive Vice-President, Human Resources Development Peter D. Garrucho - Executive Vice-President, Power Generation Pearl Catahan - Group Comptroller with rank of Executive Vice-President Pedro Chanco - Senior Vice President, Communications Nestor J. Padilla - Senior Vice President, Property Development Arthur de Guia - Senior Vice president, Manufacturing & Portfolio Investment Salvador G. Tirona - Chief Finance Officer Cielito R, A. Diokno - Vice-President, Human Resources Enrique I. Quiason - Corporate Secretary Maria Amina O. Amado - Assistant Secretary & Compliance Officer The Company also appointed these persons as members of its Audit Committee: Vicente T. Paterno - Chairman Washington Z. Sycip - Member Manuel M. Lopez - Member About Benpres Holdings 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. 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. 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. DEVELOPMENT BANK: Full-Year Net Income Rises 41.4% -------------------------------------------------- Development Bank of the Philippines posted a 2005 full-year net income of PHP3.21 billion, an increase of 41.41% over the previous year's PHP2.27 billion net income, according to DBP's President and Chief Executive Officer Reynaldo G. David. DBP's gross income for the year 2005 increased by 15.25% to PHP16.7 billion, from the PHP14.03 billion reported for the year 2004. The Bank's gross loan portfolio registered a 31.26% gain, reaching PHP111.53 billion, from PHP84.97 billion in 2004. Past due ratio was recorded at 7.43% compared with the industry average of 10.27% as of September 2005. The Bank's total assets stood at PHP210.51 billion, up 33.98% from PHPP157.12 for the same period last year, whereas net worth grew 15.11% from PHP19.85 billion in 2004 to PHP22.85 billion in 2005. Plans for 2006 Mr. David revealed that the Bank is still deciding on whether to continue the second tranche of its tier 2 notes capital offering, or to go into hybrid 1 offering. In the first tranche of the tier 2 notes capital offering, DBP raised PHP2.35 billion. The Bank is also looking at disposing its acquired assets in August, with Ernst and Young as financial adviser. Other plans for the year include the establishment of remittance centers in four to five key areas worldwide, such as Hong Kong, Singapore, Saudi Arabia, Italy, and the United States. DBP will also be active in economic pump-priming, with the Bank partaking in some PHP4 billion in funds to be lent out to the countryside during the first quarter, Mr. David disclosed. About DBP Development Bank of the Philippines -- http://www.devbankphil.com.ph/-- is the Philippines's most progressive development banking institution, providing for the medium and long-term financing needs of enterprises, with emphasis on small and medium-scale industries, particularly in the countryside. * * * Fitch Ratings gave BDP a C/D Individual Rating on September 3, 2001. Moody's Investors Service gave DBP's Foreign Long-Term Bank Deposits a B1 rating and Local Long-Term Bank Deposits a Ba2 rating effective February 16, 2005. DEVELOPMENT BANK: Appoints Patricia Sto. Tomas as Chairwoman ------------------------------------------------------------ Development Bank of the Philippines disclosed in a press release on July 21, 2006, that it appointed Patricia Sto. Tomas as its chairwoman, replacing former Chairman Antonio L. Alindogan Jr. Chairwoman Sto. Tomas took her oath of office on July 12 at the DBP Board Room. The Bank notes that Ms. Sto. Tomas is a proven leader in the areas of public administration, human resource development and management, organizational development and development communications, built on more than three decades of solid work in the bureaucracy and the academe. Prior to her appointment to DBP, Ms. Sto. Tomas was secretary of the Philippine Department of Labor and Employment from February 2001 to June 2006, where she reoriented the department towards achieving its core mandates of employment facilitation, enhancement and promotion of industrial peace, worker's welfare and protection, and commitment to service delivery. She was also chairwoman of the Civil Service Commission, the Philippine Overseas Employment Administration, the Technical Education and Skills Development Authority, National Wages and Productivity Commission, Overseas Workers' Welfare Administration, Philippine Overseas Employment Administration, Employees Compensation Commission, Occupational Safety and Health Center, and the National Maritime Polytechnic. Moreover, Ms. Sto. Tomas had been a board member of the National Economic and Development Authority, Social Security System, National Housing Authority, National Home Mortgage Mutual Fund, Land Bank of the Philippines, Philippine Health Insurance Corporation, Philippine Economic Zone Authority, National Agriculture and Fishery Council, National Anti-Poverty Commission and Export Development Council. She had also been consultant of many government agencies and UN organizations, including the World Bank and the International Labor Organization. She likewise served as secretary general of the Eastern Regional Organization for Public Administration. Ms. Sto. Tomas has earned numerous citations for her distinguished career in the public sector. She was named Outstanding Woman in Government Service by the National Council of Women of the Philippines and was among the Ten Outstanding Women in the Nation's Service in 1982. She was an Edward Mason fellow at Harvard University and fellow of the International Visitors program of the US International Communication Agency. She has honorary degrees from the Cagayan Valley State University, Western Mindanao University, Ateneo de Davao University, and Far Eastern University. In the academe, she has been lecturer and professor at the Ateneo University Graduate School of Governance and the University of the Philippines. About DBP Development Bank of the Philippines -- http://www.devbankphil.com.ph/-- is the Philippines's most progressive development banking institution, providing for the medium and long-term financing needs of enterprises, with emphasis on small and medium-scale industries, particularly in the countryside. * * * Fitch Ratings gave BDP a C/D Individual Rating on September 3, 2001. Moody's Investors Service gave DBP's Foreign Long-Term Bank Deposits a B1 rating and Local Long-Term Bank Deposits a Ba2 rating effective February 16, 2005. MARIWASA MANUFACTURING: Posts PHP51.4-Million Loss in 2Q -------------------------------------------------------- Mariwasa Manufacturing Inc. reported a loss of PHP51.26 million for the second quarter this year compared to a profit of PHP22.8 million for the same period in 2005, The Manila Times says. According to the Company, reduced sales and higher costs led to the loss. An increase in the cost of goods sold to 78.17% from 72.59% led to a 5.8% drop in gross profit percentage to net sales for the quarter. Lower production volume led to a rise in variable costs per unit, due to price increases, which, in turn, increased manufacturing overhead costs. Costs in the second quarter rose to 13.06% from 12.24% for the same period last year, despite efforts to reduce them, since Mariwasa had set aside funds for advertising and promotion costs offered to distributors in order to increase sales. The Company also agreed to raise costs for handling and delivery in order to recover losses of haulers from the recent rise in oil prices. Mariwasa executive vice president Ferdinand Edwin Co Seteng said, however, that they expect to turn around and post a profit for the rest of the year on new products and a boom in real estate, the Times reports. The Company is targeting to spend from PHP30 million to PHP30 million to bring down operational costs and improve product quality, according to Mr. Co Seteng. * * * Incorporated on November 5, 1963, Mariwasa Manufacturing Corporation -- http://www.mariwasa.com/-- manufactures and sells glazed ceramic floor tiles in various sizes, colors and designs via a distribution network that spans the whole archipelago. The Company has 76 distributors and a significant number of exclusive distributors nationwide. Aside from the local market, Mariwasa tiles also exports to foreign markets such as the United States and Hong Kong, among others. Going Concern Doubt After auditing the Company's 2005 Annual Report, Aileen Saringan of Sycip Gorres Velayo and Co. raised substantial doubt on the Company's ability to continue as a going concern. According to Ms. Saringan, "the Parent Company and its subsidiaries have incurred recurring net losses and have a working capital deficiency. In addition, the Parent Company and its major subsidiary have not complied with certain loan covenants with creditor banks." Mariwasa has deferred payments pending the approval of its proposed restructuring scheme. Loan restructuring has been initiated and with the completion of the loan restructuring, the Group expects to reduce its interest expense and achieve more flexibility in its cash management. The Group has also implemented these measures: * Tightening credit control to avert potential bad debts; and * Continuously improving production efficiencies and cutting down overall costs by optimizing capacities and reducing downtime. PSI TECHNOLOGIES: Gets Notice of Failure to Comply with Nasdaq -------------------------------------------------------------- PSi Technologies Holdings, Inc., a leading independent provider of assembly and test services for the power semiconductor market, had on July 18, 2006, disclosed that it received a Nasdaq Staff Determination letter indicating that the Company failed to submit Form 20-F for the period ended June 30, 2006, as required by Marketplace Rule 4320(e)(12), and that its securities are, therefore, subject to delisting from The Nasdaq Small Cap Market. On June 30, 2006, the Company filed a Form 12b-25 with the U.S. Securities and Exchange Commission that indicated the Company expects to file its Form 20-F no later than 45 days after June 30, 2006. The Company will request a hearing before a Nasdaq Listing Qualifications Panel to review the Staff Determination, which will stay the delisting action pending the issuance of a final decision by the Panel. However, there is no assurance the Panel will grant the Company's request for continued listing. PSi Technologies received a Nasdaq Staff Deficiency letter on July 17, 2006, indicating that it had failed to comply with the minimum bid price requirement for continued listing set forth in Marketplace Rule 4320(e)(2)(E)(i). The Company will be provided 180 calendar days, or until January 16, 2007, to regain compliance with the minimum bid price requirement of US$1.00 per American Depositary Share of the Company for a minimum of 10 consecutive business days. If the minimum bid price requirement is not met by Jan. 16, 2007, Nasdaq Staff will provide the Company with an additional 180 calendar-day compliance period, only if the Company meets certain other listing criteria. About PSi Technologies PSi Technologies Holdings Inc. - http://www.psitechnologies.com/ -- is a focused independent semiconductor assembly and test service provider to the power semiconductor market. The Company provides comprehensive package design, assembly and test services for power semiconductors used in telecommunications and networking systems, computers and computer peripherals, consumer electronics, electronic office equipment, automotive systems and industrial products. Their customers include most of the major power semiconductor manufacturers in the world such as Infineon Technologies, ON Semiconductor, Philips Semiconductor, and ST Microelectronics. ================= S I N G A P O R E ================= DIGILAND INTERNATIONAL: Posts Details of Ximeta Transaction ----------------------------------------------------------- Digiland International Limited on July 24, 2006, provided additional information regarding the distribution agreement and option to subscribe shares in Ximeta Inc. The Troubled Company Reporter - Asia Pacific reported on June 16, 2006, that on November 19, 2005, and January 16, 2006, Digiland International Limited entered into an agreement and an addendum agreement with Ximeta, Inc., for the grant by Ximeta to Digiland of manufacturing rights and distribution rights in respect of Ximeta's products. In connection with the grant of the manufacturing and distribution rights, Ximeta, on June 14, 2006, granted Digiland an option to subscribe for shares in Ximeta constituting 6.96% of the enlarged issued share capital of Ximeta, TCR-AP said. Under the Agreement, the consideration for the grant of manufacturing and distribution rights was US$1.5 million which was payable in three installments on Nov. 19, 2005, Dec. 31, 2005, and January 31, 2006, TCR-AP added. In an update, Digiland disclosed that the consideration for the grant of the manufacturing and distribution rights was determined on a willing buyer-willing seller basis. The determination of the price was based on: -- the new technology used in Ximeta's products; -- the market potential; -- the possible margins; -- the authority given to Digiland to appoint sub-agents; -- the territorial and geographical extent of the manufacturing and distribution rights granted; and -- the tenure of the Distribution Agreement. Furthermore, the consideration was arrived at after taking into account that Ximeta was a loss-making firm. Based on the management accounts of Ximeta as of December 31, 2005, the net tangible liabilities was US$6.68 million, and the net loss for the year ended December 31, 2005 was US$3.91 million. Ximeta's strength is in research and development and Digiland's strength is in distribution. Accordingly, Digiland and Ximeta could complement each other and it was felt that Digiland should be amply rewarded for providing its complementary distribution strength to Ximeta's business. Based on the management accounts of Ximeta as of December 31, 2005, the net tangible liabilities figure of Ximeta was US$6.68 million, and the net loss of Ximeta for the period from July 1, 2005, to December 31, 2005, was US$1.854 million. No valuation of the manufacturing or distribution rights, Option or shares in Ximeta which are the subject of the Option was commissioned. The source of funds for the acquisition of the manufacturing and distribution rights, the Option and the Option Shares is from the Digiland's working capital. The Ximeta transaction -- assuming that the grant of the manufacturing and distribution rights and the Option and the exercise of the Option had been effected on June 30, 2005 -- is expected to increase the Company's net tangible liabilities to US$14,144,000, as against US$12,644,000 before the transaction. Net losses before and after the transaction are US$18,656,000 and US$19,156,000 respectively. Digiland entered into the Ximeta deal in line with efforst to phase out its old strategy of distributing products that yield about 2% margin, to a new business strategy of distributing higher margin products and providing higher value-added services. The obtaining of the manufacturing and distribution rights tie in with Digiland's new business strategy for these reasons: * the distribution rights form part of Digiland's core business and allows Digiland to widen its portfolio of information technology products which it distributes; * Ximeta's products are expected to bring much better margins; * the signing of the Distribution Agreement gives Digiland quick access to the United States of America and the European markets for the Ximeta products; and * the obtaining of the manufacturing rights is in line with the strategy of Digiland to have value-add distribution with vertical integration of the supply chain. The manufacturing rights are ancillary to the distribution rights, and allow Digiland to complement and add value to its distribution function. Digiland said that the Option was an added bonus. The Company's primary objective was the distribution and manufacturing rights. The Option is incidental to the distribution and manufacturing arrangements and was granted with a view to strengthening the business relationship between Digiland and Ximeta. The relationship with Ximeta is an important business relationship as Digiland, after becoming a shareholder of Ximeta via exercising the Option, may be allowed a board seat in Ximeta. Ximeta informally indicated to Digiland that it proposed to offer one board seat to Digiland. If at the invitation of Ximeta, Digiland nominates one director to the board of Ximeta, such nominee director will not have any executive functions and Digiland will not have anycontrol over the Ximeta board or management. Nevertheless, Digiland believes that with a nominee director on the board of Ximeta, it will be able to provide its inputs to the Ximeta board on product development. 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. INFORMATICS HOLDINGS: Subsidiary Changes Name --------------------------------------------- Informatics Holdings Limited subsidiary, Informatics Children Education Pte Ltd, has changed its named to Informatics Franchise and Licensing Pte Ltd. About Informatics Holdings Informatics Holdings Ltd -- http://www.informatics.edu.sg/-- was established in 1983, in response to Asia's economic growth fostering tremendous demands for skilled Information Technology manpower and knowledge-based workers to build and sustain the rapid economic development in the region. Informatics' core business activities are training and education, IT-related services and franchise operations. Informatics was at the center of a scandal that began in mid-April 2004 when it admitted that it has overstated profits and understated costs for the nine months ended December 2003 in its quarterly financial statement. The scandal started a string of losses for the education services provider. Informatics Holdings, however, managed to cut its losses for the fourth successive quarter in its third-quarter financial results for the fiscal year 2006. Due to continued financial support from majority shareholder Berjaya and efforts to sell non-core assets, Informatics Holdings hopes to get back to black by continuing to increase revenue and control costs. The Company is currently looking into agreements with underwriters on an earlier proposed rights issue, in order to raise working capital. As reported by the Troubled Company Reporter- Asia Pacific, on June 1, 2006, Informatics Holdings slashed its net losses by 68% or SGD48.4 million from SGD71.2 million in fiscal year ended March 31, 2005, to SGD22.8 million in fiscal year ended March 31, 2006. INFORMATICS HOLDINGS: Gains $338,000 from Sale of ICE Property -------------------------------------------------------------- Informatics Holdings Limited has gained $338,000 from the disposal of its property located at 1 Jalan Anak Bukit #B1-52 Bukit Timah Plaza, Singapore 588996. As reported by the Troubled Company Reporter - Asia Pacific on July 25, 2006, Boss Coaches Pte Limited has purchased the Company's leasehold asset known as the "ICE Property" for S$650,000 The said property, which was held under its wholly owned subsidiary Informatics Children Education Pte Limited, has a net book value of $312,000 as of March 31, 2006. The transaction was arrived at by private treaty on a willing- seller-willing-buyer basis, and the completion of the sale transaction is expected within 12 weeks from the exercise of the option, to October 9, 2006. No valuation report has been commissioned on the property. About Informatics Holdings Limited Informatics Holdings Ltd -- http://www.informatics.edu.sg/-- was established in 1983, in response to Asia's economic growth fostering tremendous demands for skilled Information Technology manpower and knowledge-based workers to build and sustain the rapid economic development in the region. Informatics' core business activities are training and education, IT-related services and franchise operations. Informatics was at the center of a scandal that began in mid-April 2004 when it admitted that it has overstated profits and understated costs for the nine months ended December 2003 in its quarterly financial statement. The scandal started a string of losses for the education services provider. Informatics Holdings, however, managed to cut its losses for the fourth successive quarter in its third-quarter financial results for the fiscal year 2006. Due to continued financial support from majority shareholder Berjaya and efforts to sell non-core assets, Informatics Holdings hopes to get back to black by continuing to increase revenue and control costs. The Company is currently looking into agreements with underwriters on an earlier proposed rights issue, in order to raise working capital. As reported by the Troubled Company Reporter- Asia Pacific, on June 1, 2006, Informatics Holdings slashed its net losses by 68% or SGD48.4 million from SGD71.2 million in fiscal year ended March 31, 2005, to SGD22.8 million in fiscal year ended March 31, 2006. MDR LIMITED: Notes Director's Change of Interest ------------------------------------------------ mDr Limited's director and substantial shareholder, Philip Eng Heng Nee, on July 24, 2006, increased the number of options held by him. Before the change, Mr.Eng held 7,000,000 options with 0.728% percentage issued share capital. Recently, Mr. Eng increased his holdings to 11,238,000 options with 0.730% percentage of issued share capital. Thus, Mr. Eng currently holds 11,238,00 outstanding options. About mDR Limited mDR Limited -- formerly Accord Customer Care Solutions -- is the leading provider of after market services for consumer mobile communication and digital electronic devices in Asia Pacific. ACCS is a spin-off from supply network solutions provider Accord Express Holdings Pte Limited. ACCS provides a wide spectrum of after market services to both its trade partners and end consumers. ACCS provides professional, efficient and convenient services to its end consumers by establishing one-stop single brand or multi-brand proximity centers that are conveniently and strategically located. ACCS has been posting consecutive losses since the first quarter of 2005 due to bad investments, when it incurred a net loss of SGD3.79 million. Meanwhile, 12 of its former executives are facing an ongoing case over a cheating scam involving mobile phone giant Nokia. The executives were accused of falsifying phone repair claims to cheat Nokia out of SGD4.3 million. They were also charged with falsifying financial documents and overstating profits. The Company is currently in negotiations with its lenders to restructure its financial obligations. As part of the negotiations with the lenders, these obligations are intended to be repaid out of the proceeds from the Company's recovery of its investments in non-operational assets. The timing of receipt of proceeds from the recovery is dependent on stock market conditions and conclusion of negotiations. SEE HUP SENG: Enters Into Placement Agreement with Subscribers -------------------------------------------------------------- Valerie/verbatim http://info.sgx.com/webcorannc.nsf/437de11c8b2eedc248256fc800090 7cb/94621f051bfaa263482571b50038a441?OpenDocument# See Hup Seng Limited on June 7, 2006, entered into a placement agreement with the Company's subscribers, pursuant to which the subscribers agreed to take an aggregate of 18,800,000 new ordinary shares in the capital of the Company at S$0.11 per Placement Share. The names of the subscriber with the corresponding number of placement of shares are: * Aw Yong Wee -- 2,000,000; * Chan Hiang Ngee -- 1,000,000; * Koh Kok Leong -- 1,000,000; * Lee See Kee -- 2,800,000; * Loke Chee Choong -- 1,000,000; * Pek Choon Heng -- 1,000,000; and * Yap Sew -- 10,000,000. The total number of placement shares subscribed is 18,800,000. In consideration of the Subscribers subscribing for the Placement Shares and subject to the completion of the Placement, the Company also granted to each of the Subscribers an option to subscribe for the same number of option shares at the option exercise price of S$0.12 per Option Share. Each of the Options may be exercised by the relevant Subscriber at any time and from time to time during the option period commencing from June 7, 2006, and expiring on June 6, 2009. The Singapore Exchange Securities Trading Limited has given its in-principle approval for the Company's application for the listing and quotation of the Placement Shares and the Option Shares. The in-principle approval of the SGX-ST is not to be taken as an indication of the merits of the Placement, the Placement Shares, the Option Shares, the Company or its subsidiaries. The completion of the Placement Agreement is expected to take place by August 4, 2006, and the date of the listing and quotation of the Placement Shares on the official list of the Stock Exchange of Singapore Dealing and Automated Quotation System will be announced in due course. About See Hup Seng Limited See Hup Seng Limited -- http://www.seehupseng.com.sg/-- is engaged in the provision of corrosion prevention services through a range of marine and industrial blasting and coating methods. Its other activities are the provision of tank cleaning, painting and coating, ship repair, shipbuilding and scaffolding services, trading and manufacturing of blasting and painting equipment and investment holding. The Group is domiciled in Singapore and markets its products and services domestically and in the People's Republic of China, Hong Kong and Cayman Islands. The Group's balance sheet as of December 31, 2005, revealed strained liquidity, with SGD12.8 million in current assets available to pay SGD28.5 million of current liabilities coming due within the next 12 months. As of December 31, 2005, the Group incurred accumulated losses of SGD28 million. As reported in the Troubled Company Reporter - Asia Pacific on May 24, 2006, See Hup Seng Limited's auditors, Messrs Moore Stephens, highlighted a going concern issue for the Company after auditing its financial statements for the year ended December 31, 2005. According to the Auditor, the ability of the Group and the Company to continue as going concerns is dependent on these factors: * successful completion of the proposed debt restructuring exercise; * reduction of discretionary operating costs and disposal of non-core assets; and * the generation of significant positive cash flows. SPIN VIDEO: Enters Wind-Up Proceedings -------------------------------------- An application for the wind-up of Spin Video Pte Limited will be heard before the High Court of the Republic of Singapore on August 4, 2006, at 10:00 a.m. Comic Ritz Production Co. Ltd, Catalyst Logic Co. Ltd, Speedy Video Distributors Sdn Bhd, and Alliance Entertainment Singapore Pte Ltd filed the wind-up petition. Parties wishing to attend at the hearing must serve or send a notice to the solicitors for the plaintiffs by August 3, 2006, at 12:00 p.m. The solicitors for the plaintiffs can be reached at: M/s Infinitus Law Corporation 77 Robinson Road #16-00, SIA Building Singapore 068896 * Upcoming Meetings, Conferences and Seminars --------------------------------------------- July 27, 2006 Turnaround Management Association - Australia TMA-ANZ Great Debate Australia Bondi Room, Sydney, Australia Telephone: 0438-653-179 e-mail: tma_aust@bigpond.net.au August 3, 2006 Beard Audio Conferences Homestead Exemptions under BAPCPA Audio Conference Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ August 9, 2006 Turnaround Management Association Professional Development Meeting Sydney, Australia Telephone: 0438 653 179 Web site: http://www.turnaround.org/ August 9, 2006 Turnaround Management Association - Australia PD Meeting - Panel - Work Choices Australia Sydney, Australia Telephone: 0438-653-179 e-mail: tma_aust@bigpond.net.au August 17, 2006 Insolvency Practitioners Association Of Australia Study Group Meetings Chartered Accountants House, Sydney, Australia Telephone: 9416-2395 e-mail: amanda_taylor@aapt.net.au September 8-9, 2006 American Bankruptcy Institute International Insolvency Symposium London, England Web site: http://www.turnaround.org/ September 13, 2006 Turnaround Management Association - Australia Networking Function Australia Parramatta, Australia Telephone: 0438-653-179 e-mail: tma_aust@bigpond.net.au September 21, 2006 Insolvency Practitioners Association Of Australia Study Group Meetings Chartered Accountants House, Sydney, Australia Telephone: 9416-2395 e-mail: amanda_taylor@aapt.net.au September 26-27, 2006 American Bankruptcy Institute Airline Restructuring Helmsley Park Lane Hotel, New York, NY Telephone: 1-703-739-0800 Web site: http://www.abiworld.org/ October 5, 2006 Turnaround Management Association - Australia UTS Fundamentals of Turnaround Management Australia Mecure Hotel - Haymarket Telephone: 0438-653-179 e-mail: tma_aust@bigpond.net.au October 11, 2006 INSOL INSOL Lenders, Australia Technical Day Brisbane, Australia Web site: http://www.insol.org/ October 11-14, 2006 Turnaround Management Association - Australia 2006 Annual Convention JW Marriott Grande Lakes, Orlando, FL, USA e-mail: livaldi@turnaround.org October 11, 2006 Turnaround Management Association - Australia Professional Development Meeting Australia TBA Telephone: 0438-653-179 e-mail: tma_aust@bigpond.net.au October 12, 2006 Insolvency Practitioners Association Of Australia IPAA National Conference 2006 Stamford Plaza, Brisbane City, Queensland, Australia Telephone: 07-3367-0500 e-mail: corinne.templeton@invigorate.com.au October 12, 2006 Turnaround Management Association - Australia UTS Fundamentals of Turnaround Managment Australia Melbourne, Australia Telephone: 0438-653-179 e-mail: tma_aust@bigpond.net.au October 19, 2006 Insolvency Practitioners Association Of Australia Study Group Meetings Chartered Accountants House, Sydney, Australia Telephone: 9416-2395 e-mail: amanda_taylor@aapt.net.au October 31 - November 1, 2006 International Women's Insolvency & Restructuring Confederation IWIRC Annual Conference San Francisco, CA, USA Web site: http://www.iwirc.com/ November 9-10, 2006 Turnaround Management Association - Australia TMA Australia National Conference Australia TBA Telephone: 0438-653-179 e-mail: tma_aust@bigpond.net.au November 15, 2006 LI TMA Formal Event TMA Australia National Conference Long Island, New York, USA Web site: http://www.turnaround.org/ November 16, 2006 Insolvency Practitioners Association of Australia Study Group Meetings Chartered Accountants House, Sydney, Australia Telephone: 9416-2395 e-mail: amanda_taylor@aapt.net.au December 13, 2006 Turnaround Management Association - Australia Christmas Function Australia GE Commercial Finance, George Street, Sydney, Australia Telephone: 0438-653-179 e-mail: tma_aust@bigpond.net.au February 2007 American Bankruptcy Institute International Insolvency Symposium San Juan, Puerto Rico Telephone: 1-703-739-0800 Web site: http://www.abiworld.org March 27-31, 2007 Turnaround Management Association - Australia 2007 TMA Spring Conference Four Seasons Las Colinas, Dallas, TX, USA e-mail: livaldi@turnaround.org April 11-15, 2007 American Bankruptcy Institute ABI Annual Spring Meeting J.W. Marriott, Washington, DC, USA Telephone: 1-703-739-0800 Web site: http://www.abiworld.org/ October 16-19, 2007 Turnaround Management Association - Australia TMA 2007 Annual Convention Boston Marriott Copley Place, Boston, MA, USA e-mail: livaldi@turnaround.org March 25-29, 2008 Turnaround Management Association - Australia TMA Spring Conference Ritz Carlton Grande Lakes, Orlando, FL, USA e-mail: livaldi@turnaround.org October 28-31, 2008 Turnaround Management Association - Australia TMA 2008 Annual Convention New Orleans Marriott, New Orleans, LA, USA e-mail: livaldi@turnaround.org October 5-9, 2009 Turnaround Management Association - Australia TMA 2009 Annual Convention JW Marriott Desert Ridge, Phoenix, AZ, USA e-mail: livaldi@turnaround.org October 4-8, 2010 Turnaround Management Association - Australia TMA 2010 Annual Convention JW Marriot Grande Lakes, Orlando, FL, USA e-mail: livaldi@turnaround.org Beard Audio Conferences Coming Changes in Small Business Bankruptcy Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Audio Conferences CD Beard Audio Conferences Distressed Real Estate under BAPCPA Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Changes to Cross-Border Insolvencies Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Healthcare Bankruptcy Reforms Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Calpine's Chapter 11 Filing Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Changing Roles & Responsibilities of Creditors' Committees Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Employee Benefits and Executive Compensation under the New Code Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Dana's Chapter 11 Filing Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Reverse Mergers-the New IPO? Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Fundamentals of Corporate Bankruptcy and Restructuring Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences High-Yield Opportunities in Distressed Investing Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Privacy Rights, Protections & Pitfalls in Bankruptcy Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences When Tenants File -- A Landlord's BAPCPA Survival Guide Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Clash of the Titans -- Bankruptcy vs. IP Rights Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* 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. Catherine Gutib, Valerie Udtuhan, Francis Chicano, Erica Fernando, Reiza Dejito, Freya Natasha Fernandez, and Peter A. Chapman, Editors. Copyright 2006. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is $575 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***