/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/060804.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, August 4, 2006, Vol. 9, No. 154 Headlines A U S T R A L I A & N E W Z E A L A N D ACM FLOORING: Members and Creditors Decide to Liquidate Business AGLASS SALES: Creditors Resolve to Wind Up Firm AUSTRALISIAN ROAD: Appoints Joint Liquidators BANSTEAD CONSULTANTS: Court to Hear Liquidation Bid on Sept. 14 BLUE & GREEN: Creditors' Proofs of Claim Due on August 15 BORIS METAL: Placed Under Members' Voluntary Liquidation CAMBAY ADMINISTRATION: Members Pass Resolution to Wind Up Firm CASHMERE HEIGHTS: Faces Liquidation Proceedings DA COOKE & COMPANY: Enters Wind-Up Proceedings DIESEL NET: Creditors Appoint Official Liquidator EASTVIEW CONSTRUCTION: Liquidation Bid Hearing Fixed on Sept. 28 FELTEX CARPETS: Turners to Challenge Godfrey Hirst Proposal FELTEX CARPETS: Issue Raised Over G. Hirst's Rejected 2005 Offer HUON CORPORATION: J. Schulz Surrenders Assets to Administrator IDRONE PTY: Placed Under Members' Voluntary Liquidation INTEC COMMERCIAL: Members and Creditors to Convene on August 31 JK GROUP: To Declare Dividend on September 21 LORNDELL HOLDINGS: Liquidator Holbrook to Present Wind-Up Report LOXTON SERVICES: Placed Under Members' Voluntary Wind-Up MI CONSULTING: Names Kenneth Whittingham as Liquidator MALLEE FINANCIAL: Winds Up After Going Into Administration N ENTERPRISES: Court to Hear Liquidation Application on Aug. 7 NATIONAL SNOWBOARD: Inability to Pay Debt Prompts Wind-Up NEOLIDO HOLDINGS: Court Dismisses Directors' Wind Up Appeal NEWTON CONSTRUCTION: Appoints Brown and Hart as Liquidators NUMBER 1 CYCLES: Wind-Up Petition Hearing Slated for August 31 NYALBRIDGE PTY: Undergoes Voluntary Wind-Up ONE RED DOG: Faces Wind-Up Proceedings P.M.B. HOLDINGS: Court to Hear CIR's Liquidation Bid on Sept. 7 PETER HOLM: Members to Hear Liquidator's Report PORT BREAKWALL: Court Issues Wind-Up Order PROFESSIONAL KITCHENS: Creditors' Must Prove Debts by Aug. 21 REVUE DESIGN: Members Resolve to Wind Up Firm ROSBAN HOTELS: Appoints Joint Liquidators ROTHSCHILD PROPERTIES: Names Managh as Official Liquidator RYDGE PUBLICATIONS: Members Pass Resolution to Wind Up Business SAMSON PTY: Federal Court Appoints Receivers SOLLAISE PTY: Supreme Court Issues Wind-Up Order SOUTH AUSTRALIAN REAL: Members Opt for Wind-Up STRUCTURAL CONCRETE: Members Agree to Liquidate Business STYLECRAFT FURNITURE: Appoints Ozem Kassem as Liquidator TDH RETAIL: Inability to Pay Debt Prompts Wind-Up W DAVIES: Enters Voluntary Liquidation WESTERN BAY: In Receivership, with NZ$53 Mln Loan Portfolio YALLOURN FRIENDLY: Appoints Peter James Hedge as Liquidator C H I N A & H O N G K O N G A.O. SMITH CORP: Earns US$25.1 Million in Second Quarter of 2006 AXIMAGE INTERNATIONAL: Members' Final Meeting Slated for Aug. 28 BANK OF COMMUNICATIONS: Overseas Investment Plan Gets Nod CHINA CONSTRUCTION: SAFE Approves US$2-Bln Offshore Investments ELRA (HONG KONG): Liquidator to Present Wind-Up Report FAR MANOR: Members to Receive Wind-Up Report on August 28 JOYFINE LIMITED: Members Final Meeting Slated for September 1 KENFIELD CORPORATION: Creditors Must Prove Debts by August 21 LC EPICURE: Members to Receive Wind-Up Report QUERRINGTON LIMITED: Final Members Meeting Set on August 29 SK GLOBAL: Joint Liquidators Step Aside SOUTHERN FORTUNE: Faces Wind-Up Proceedings WELRISE HOLDINGS: Creditors' Proofs of Claim Due on August 29 * CBRC Punishes Financial Staff Involved in Bank Crimes I N D I A HINDUSTAN PETROLEUM: Mulls Entry Into Power Sector LML LIMITED: Allots 6.99-Lakh Shares Upon FCCB Conversion UTI BANK: S&P Assigns BB+/B Credit Ratings With Positive Outlook I N D O N E S I A BANK TABUNGAN: Moody's Revises 'E' BFSR Outlook to Positive HM SAMPOERNA: Net Income Rises to IDR947 Trillion HM SAMPOERNA: Agrees to Sell 23.4% Stake in Retail Unit PAN INDONESIA: Moody's Raises 'D-' BSFR Outlook to Positive J A P A N FORD MOTOR CREDIT: JCR Pulls Down Senior Debts Rating to BB- MITSUBISHI MOTORS: R&I Upgrades CCC+ Rating to B SOFTBANK CORPORATION: Sells 7.5% Stake in Unit for JPY50 Billion K O R E A BOWATER INC: Reports US$10.6 Mil. Net Loss for 2nd Quarter 2006 EUGENE SCIENCE: March 31 Balance Sheet Upside Down by US$11.3M INDUSTRIAL BANK OF KOREA: Plans to Buy LIG Unit KOREA EXCHANGE BANK: Stake Sales Hack Up Net Income LG CARD: Net Profit Falls 40% in Second Quarter * BSI Slips to Lowest Level This Year * Korea Sees Recession of Construction Industry in June M A L A Y S I A AYER HITAM: Default Amount Tops MYR41 Million CONSOLIDATED FARMS: Defaults on Over MYR148-Million Loans DATUK KERAMAT: Bourse Halts Trading of Securities FOREMOST HOLDINGS: Fined and Reprimanded for Breach of Rules JIN LIN: To Discuss Restructuring at Meetings JOHAN CERAMICS: Still Working to Finalize Regularization Scheme KIG GLASS: Updates on Group's Default Status MALAYSIA AIRLINES: Sees Lower Losses in Second Quarter PAXELENT CORPORATION: Has Yet to Submit Regularization Plan SBBS CONSORTIUM: Bourse Gives Public Reprimand and Imposes Fine SUREMAX GROUP: Posts Lower Revenue, Higher Loss in Third Quarter TAP RESOURCES: Unit Receives Payment Demand from Hilti WEMBLEY INDUSTRIES: Wants One More Year to Complete Rehab Scheme P H I L I P P I N E S DEVELOPMENT BANK: Looks to Raise PHP6.7-Billion Tier 1 Issuance PHILIPPINE NATIONAL BANK: Bad Loans Comprise 27% of Total Loans UNION BANK: H1 Non-Performing Loan Ratio Rises 9.46% UNION BANK: Net Income Falls 27% to PHP1.1 Billion in June 2006 S I N G A P O R E INFORMATICS HOLDINGS: Cuts Losses by 29% in First Quarter FY07 INTEGRATED ENVIRONMENTAL: Court to Hear Wind-Up Petition MAE ENGINEERING: Appoints Financial Officer and Vice President REFCO INC: Chap 7 Trustee Wants Court to Wind Down Refco Trading REFCO INC: Files June 2006 Statement of Cash Disbursements SEE HUP SENG: Welcomes New Executive Director & Chief Executive SNP RETAIL: Liquidator to Present Wind-Up Report on August 28 UNITY BUILDER: Creditors' Proofs of Debt Due on August 11 T H A I L A N D THAI PETROCHEMICAL: Units Delay Financial Report Submission * Large Companies With Insolvent Balance Sheets - - - - - - - - ============================================ A U S T R A L I A & N E W Z E A L A N D ============================================ ACM FLOORING: Members and Creditors Decide to Liquidate Business ---------------------------------------------------------------- At a general meeting held on July 17, 2006, the members and creditors of ACM Flooring Pty Ltd decided to liquidate the Company's business. In this regard, Terry Van Der Velde and David Stimpson were appointed as joint and several liquidators. The Liquidators can be reached at: Terry Van Der Velde David Stimpson SV Partners Level 16, 120 Edward Street Brisbane, Queensland 4000 Australia AGLASS SALES: Creditors Resolve to Wind Up Firm ----------------------------------------------- The creditors of Aglass Sales Pty Ltd convened on July 18, 2006, and agreed to wind up the Company's operations. Accordingly, Daniel I. Cvitanovic was appointed as liquidator. The Liquidator can be reached at: Daniel I. Cvitanovic Shop 5 Old Potato Shed 74-76 Hoddle Street Robertson, New South Wales 2577 Australia Telephone:(02) 4885 2500 Facsimile:(02) 4885 2995 AUSTRALISIAN ROAD: Appoints Joint Liquidators --------------------------------------------- Karen Betty Mason and Lloyd James Hayward were on July 20, 2006, appointed as joint and several liquidators for Australisian Road Markers (NZ) Ltd. The Joint Liquidators will be accepting proofs of claim from the Company's creditors until August 8, 2006. The Joint Liquidators can be reached at: K.B. Mason Meltzer Mason Heath Chartered Accountants P.O. Box 6302, Wellesley Street Auckland, New Zealand Telephone: (09) 357 6150 Facsimile: (09) 357 6152 BANSTEAD CONSULTANTS: Court to Hear Liquidation Bid on Sept. 14 --------------------------------------------------------------- The High Court of Auckland will hear a liquidation petition against Banstead Consultants Ltd on September 14, 2006, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition with the Court on June 21, 2006. The plaintiff's solicitor can be reached at: David Weaver Technical and Legal Support Group Auckland North Service Centre Inland Revenue Department 5-7 Byron Avenue, Takapuna Auckland, New Zealand P.O. Box 33-150 Auckland Telephone: (09) 984 1595 Facsimile: (09) 984 3116 BLUE & GREEN: Creditors' Proofs of Claim Due on August 15 --------------------------------------------------------- Blue & Green Tour Service Pty Ltd will declare its first and final dividend on September 19, 2006. Creditors are required to formally prove their debts by August 15, 2006, for them to share in the dividend distribution. The liquidator can be reached at: John Park KordaMentha (Queensland) Level 2, Corporate Centre One 2 Corporate Court Bundall, Queensland 4217 Australia Telephone:(07) 5574 1322 Facsimile:(07) 5574 1433 BORIS METAL: Placed Under Members' Voluntary Liquidation -------------------------------------------------------- After a general meeting held on July 3, 2006, the members of Boris Metal Works Pty Ltd agreed to voluntarily liquidate the Company's business. In this regard, Joseph Sleiman was appointed as liquidator. The Liquidator can be reached at: Joseph Sleiman Certified Practising Accountant Sleiman & Co Level 8, 65 York Street Sydney, Australia CAMBAY ADMINISTRATION: Members Pass Resolution to Wind Up Firm -------------------------------------------------------------- Members of of Cambay Administration Pty Limited on July 14, 2006, passed a special resolution to voluntarily wind up the Company's operations. Subsequently, Peter Ngan was appointed as liquidator. The Liquidator can be reached at: Peter Ngan Ngan & Co Chartered Accountants Level 5, 49 Market Street Sydney, New South Wales 2000 Australia CASHMERE HEIGHTS: Faces Liquidation Proceedings ----------------------------------------------- An application to liquidate Cashmere Heights Group Ltd will be heard before the High Court of Christchurch on August 21, 2006, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition with the Court on June 29, 2006. The solicitor for the plaintiff can be reached at: Julia Dykema Inland Revenue Department Technical and Legal Support Group South Island Service Centre Ground Floor Reception 518 Colombo Street (P.O. Box 1782) Christchurch 8140, New Zealand Telephone: (03) 968 0809 Facsimile: (03) 977 9853 DA COOKE & COMPANY: Enters Wind-Up Proceedings ---------------------------------------------- The members of DA Cooke & Company Pty Ltd met on July 11, 2006, and resolved to voluntarily wind up the Company's operations. In this regard, Jason Bettles and Susan Carter were appointed as liquidators. The Liquidators can be reached at: Jason Bettles Susan Carter Worrells Level 6, 50 Cavill Avenue Surfers Paradise Queensland 4217 Australia DIESEL NET: Creditors Appoint Official Liquidator ------------------------------------------------- Members of Diesel Net Pty Limited decided to voluntarily wind up the Company's operations during an extraordinary general meeting held on July 18, 2006. Subsequently, Barry Keith Taylor was named official liquidator. The Liquidator can be reached at: Barry Keith Taylor, B. K. Taylor & Co. 8th Floor, 608 St Kilda Road Melbourne, Australia EASTVIEW CONSTRUCTION: Liquidation Bid Hearing Fixed on Sept. 28 ---------------------------------------------------------------- A liquidation petition against Eastview Construction Ltd will be heard before the High Court of Auckland on September 28, 2006, at 10:00 a.m. Power Quality Services Ltd filed the petition with the Court on July 3, 2006. The solicitor for the plaintiff can be reached at: D.J.G. Cox Offices of Rennie Cox Level Fifteen 126 Vincent Street Auckland, New Zealand FELTEX CARPETS: Turners to Challenge Godfrey Hirst Proposal ----------------------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on August 2, 2006, Feltex Carpets Limited has received a takeover offer from Australian rival Godfrey Hirst for up to 12 cents per share. In an update, The National Business Review relates that Graeme and Craig Turner, who run bed-makers Sleepyhead, are set to challenge Godfrey Hirst's bid. ShareChat News says that the Turners, who share a NZ$70-million family fortune according to the NBR Rich List, want Feltex Carpets to issue preference shares that would have priority if the Company was wound up. As well as keeping local ownership, the Turners believe that issuing preference shares would give existing investors the opportunity to enjoy any Feltex recovery, ShareChat notes. The NBR relates that the Turners have been interested in Feltex since the shares started going down and have been working on a bid for 10 months. The New Zealand Press Association also says that the Turners want to underwrite a third of a rescue rights issue for the business and keep Feltex listed on the NZX. They estimate that Feltex needs between NZ$35 million and NZ$40 million to put it back on an even keel. Furthermore, the NZPA says that the Turners want other well- heeled investors to put up similar sums, and are talking to several institutions and other advisers. According to the NBR, Graeme Turner says there are synergies with his own company's product and manufacturing would remain where it is now if they are successful in acquiring Feltex. He notes that they have a lot of support from other local investors, but that he would not disclose the identities of those investors at this stage. ShareChat News says that Feltex is reportedly trading profitably, has a strong order book, and is servicing its NZ$128-million of debt. The NBR relates that Feltex re-listed in 2004 at NZ$1.70 a share giving it a market capitalization of more than NZ$250 million. As of August 2, 2006, its market cap was less than NZ$13 million -- a fall of more than 90%, the NBR notes. Workers Fear Job Loss on Godfrey Hirst Takeover With Feltex being the second-largest employer in Dannevirke, New Zealand, its workers are worried about job security, Hawke's Bay Today relates. HBToday cites National Distribution Union's national textile secretary Judy Attenberger as saying that they would not know much more about the future of the Dannevirke plant until the union meets with Feltex bosses on August 7, 2006. HBToday says that long-term job security at the Dannevirke plant could hinge on contract negotiations with a new owner in about 12 months, when the current collective employment contract would expire. Feltex spokesman John Walsh discloses that all 820 Feltex jobs and the terms and conditions of employment would be transferred to Godfrey Hirst if the proposed sale went ahead in October. However, Mr. Walsh notes that in the end, Godfrey Hirst would determine the long-term future of jobs. Feltex is trying to keep an "open dialogue" with the union and its management would visit plants over the next week, HBToday notes. Meanwhile, a leading carpet industry executive, speaking on condition of anonymity, says Godfrey Hirst would look to close or mothball at least one New Zealand mill, stuff.co.nz relates. The Dominion Post notes that Feltex has plants in Kakariki near Marton, Lower Hutt, Feilding, Dannevirke, Foxton and Christchurch, with about 890 New Zealand staff. Godfrey Hirst has 550 Kiwi staff at factories in Manukau City, Napier, Christchurch, and Invercargill. 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. FELTEX CARPETS: Issue Raised Over G. Hirst's Rejected 2005 Offer ---------------------------------------------------------------- The Troubled Company Reporter - Asia Pacific reported on August 2, 2006, that Feltex Carpets Limited received a takeover offer from privately owned Australian rival Godfrey Hirst for up to 12 cents per share. Godfrey Hirst's current bid comes about nine months after its earlier takeover offer was rejected by Feltex. The Dominion Post relates that some of Feltex Carpet's larger shareholders are seeking legal opinions, and question whether Feltex directors acted in the interests of shareholders when spurning Godfrey Hirst's previous reverse takeover proposal in October 2005. The shareholders are frustrated that there has been no action from the Securities Commission over Feltex's prospectus disclosure, and are considering establishing a "fighting fund," The Dominion says. The TCR-AP reported on October 19, 2005, that Feltex advised Godfrey Hirst that the Board could not support its proposal to merge their operations. The TCR-AP noted that the Board of Feltex considered advice received from Cameron and Co. in reaching the decision. The Dominion notes that Feltex's prospectus for the June 2004 float projected 2005 profit of NZ$23.9 million and delivered NZ$11.8 million. The Company then lost NZ$11.8 million in the first half of 2006. Stuff.co.nz cites ASB Securities managing director Tim Preston as saying that Feltex shareholders, including those who bought shares for NZ$1.70 each in the float, faced a Hobson's choice, either vote for: (a) Godfrey Hirst's takeover offer of a maximum of 12 cents a share; or (b) see the company placed in receivership. Receivership would see additional costs and an even weaker bargaining position for Feltex, Stuff.co notes. "I think this (Godfrey Hirst's offer) is the best you're going to get, unfortunately," The Dominion cites Mr. Preston, as saying. John Irving, who spent NZ$10,000 on Feltex shares shortly after the initial public offering on co-lead broker Forsyth Barr's recommendation, says that he did not see a choice other than accepting Godfrey Hirst's offer, Stuff.co relates. Shareholders Association chairman Bruce Sheppard says investors would receive less than 12 cents a share, The Dominion notes. Unless Feltex could gain ANZ support, Godfrey Hirst would succeed in gaining control either through its takeover offer or by buying assets from a receiver, The Dominion cites Mr. Sheppard saying. Bank support might be won through the departures of chief executive Peter Thomas and chairman Tim Saunders and the appointment of Ferrier Hodgson partner Michael Stiassny as chairman, Mr. Sheppard suggests. According to Mr. Sheppard and Mr. Preston, Feltex's directors need to explain why they rejected Godfrey Hirst's 2005 takeover offer, Stuff.co.nz notes. 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. HUON CORPORATION: J. Schulz Surrenders Assets to Administrator -------------------------------------------------------------- On August 2, 2006, Huon Corp.'s managing director John Schulz agreed to return AU$13 million of land assets allegedly stripped from the business, The Age reports. Joint administrator Tony Sims of SimsPartners relates that a deal was reached with Mr. Schulz, who agreed to return the lands on which the three former Nylex factories were located -- Empire Rubber in Bendigo, Mills Elastomers in Dandenong, and FRN in Frankston. According to The Bendigo Advertiser, the administrators can now fast-track the sale of the Bendigo car parts business. The paper relates that the deal was reached after three days of court-ordered mediation. The Rural Press Ltd. says that if Mr. Schulz backed-out, it would have forced the administrator to resume its costly Supreme Court action against Mr. Schulz. The Troubled Company Reporter - Asia Pacific reported on July 18, 2006, that Mr. Schulz allegedly diverted Empire Rubber's property holdings into personally linked interests shortly after Huon acquired the factory from Nylex Limited in December 2005. Subsequently, Huon's administrators took Supreme Court action against Mr. Schulz and the other directors, seeking to recover more than AU$30 million in entitlements owed to workers at the Company's three factories. According to Mr. Sims, the Nylex properties were bought in December 2005 for AU$13 million, from which a secure creditor was owed about AU$5 million, The Age relates. That left "a substantial amount of equity" to help the sale process and to go towards workers' entitlements, Mr. Sims notes. Mr. Sims further notes that while he could not guarantee all entitlements of redundant workers, he says that, "[i]f a lot of people manage to retain their jobs through the sale process, then there's clearly going to be a very substantial dividend paid to those who are going to be made redundant." All parties in the mediation have signed a strict confidentiality agreement, The Bendigo Advertiser says. However, administrator Tony Sims states that: "The agreement will result in three commercial properties situated at Bendigo, Frankston, and Dandenong being transferred back to Huon, which will enable the administrator to realize the equity in these properties for the benefit of Huon." National Union of Workers state secretary Antony Thow says that "the next piece in the jigsaw puzzle will be to sell the business as a going concern," Rural Press Ltd., relates. With several parties interested in buying Huon's car parts businesses, including Empire Rubber, the administrator is now confident that he can execute a swift sale, Rural Press says. Selling the businesses with their property assets will greatly increase the proceeds of any sale, ensuring the group's debts to be paid off, Rural Press notes. * * * Based in Victoria, Australia, Huon Corp. manufactures car parts. It has factories that supply parts including air intake hoses, steering column covers, rubber seals, and fuel filler shields to major car companies like Toyota, Holden, Ford, and PBR. Huon Corp. went into voluntary administration after concerns about its financial situation, saying the failure to perform occurred after it purchased Empire Rubber, and Melbourne-based firms FRN and Mills Elastomers from Nylex Ltd., in December 2005. Tony Sims and Ken Sellars of SimsPartners were appointed as administrators. IDRONE PTY: Placed Under Members' Voluntary Liquidation ------------------------------------------------------- At a general meeting on July 15, 2006, the members of Idrone Pty Limited resolved to close the Company's business operations and distribute the proceeds of its assets disposal. Subsequently, Peter Debus was appointed as liquidator. The Liquidator can be reached at: Peter Debus Bridgeway Accountants and Advisers 105 Dubbo Street Warren, New South Wales 2824 Australia Telephone:(02) 6847 4139 INTEC COMMERCIAL: Members and Creditors to Convene on August 31 --------------------------------------------------------------- The members and creditors of Intec Commercial Upholstery Pty Ltd will convene on August 31, 2006, at 4:00 p.m. During the meeting, members and creditors will be asked to: -- receive final receipts and payments from the Liquidator; -- receive formal notice of the end of the Company's administration; and -- discuss other business that may be considered with the foregoing. The liquidator can be reached at: Michael Griffin Worrells Solvency & Forensic Accountants 8th Floor, 102 Adelaide Street Brisbane, Queensland 4000 Australia Telephone:(07) 3225 4377 Facsimile:(07) 3225 4311 Web site: http://www.worrells.net.au/ JK GROUP: To Declare Dividend on September 21 --------------------------------------------- JK Group Pty Ltd will declare its first and final dividend on September 21, 2006. Creditors are required to file their proofs of claim by August 28, 2006, for them to share in the dividend distribution. The liquidator can be reached at: Mark Pearce Pearce & Heers Insolvency Accountants Australia Telephone:(07) 3221 0055 LORNDELL HOLDINGS: Liquidator Holbrook to Present Wind-Up Report ---------------------------------------------------------------- A final meeting of the members and creditors of Lorndell Holdings Pty Limited will be held on August 31, 2006, at 9:30 a.m. During the meeting, Liquidator Kim D. Holbrook will report on the activities that transpired during the wind-up period. The Liquidator can be reached at: Kim D. Holbrook Holbrook & Associates Chartered Accountants Level 2, 19 Pier Street (GPO Box M925) Perth, Western Australia 6001 Australia LOXTON SERVICES: Placed Under Members' Voluntary Wind-Up -------------------------------------------------------- At an extraordinary general on July 11, 2006, members of Loxton Services Pty Limited agreed that the Company must voluntarily commence a wind-up of its operations. Accordingly, R. W. Whitton was appointed as liquidator. The Liquidator can be reached at: R. W. Whitton Lawler Partners Chartered Accountants Level 7, 1 Margaret Street Sydney, New South Wales 2000 Australia Telephone:(02) 8346 6000 MI CONSULTING: Names Kenneth Whittingham as Liquidator ------------------------------------------------------ The members of MI Consulting Group Pty Limited convened on July 11, 2006, and agreed to voluntarily wind up the Company's operations. In this regard, Kenneth Michael Whittingham was appointed as liquidator. The Liquidator can be reached at: Michael Whittingham BDO Chartered Accountants & Advisors Level 19, 2 Market Street Sydney, New South Wales 2000 Australia MALLEE FINANCIAL: Winds Up After Going Into Administration ---------------------------------------------------------- The Mallee Financial Information Service went into voluntary administration after accumulating a debt of more than AU$120,000, the Murray Valley Standard reports. According to the report, the major cause of the insolvency is alleged to be an Ausgrow Training debt of more than AU$50,000 to the State Government. Now, Mallee Financial is being wound up, ABC News Online relates and cites administrator Robert Parker as saying that the business has stopped operating. It has been funded by the federal, state and local governments, local businesses and through fundraising projects, ABC News says. Murray Valley cites an anonymous source telling The Standard that the State Government refused to clear the debt, despite Mallee Financial supposedly unaware of the money owing when it merged with the agricultural training organization in 2004. Mallee Financial provides rural financial counseling, community programs, and access to Federal Government agencies. It was taken over in administration by Freer Parker and Associates on July 4, 2006, Murray Valley relates. The paper notes that some of the Company's programs will continue, but the number of redundancies is still unknown. Mr. Parker says that the debt was likely to be between AU$120,000 and AU$150,000, but could rise to AU$200,000 if employee entitlements were paid. Mr. Parker tells ABC News that "[t]here is a priority distribution of funds and there are various employees who will share initially in that distribution process and further monies will be distributed to other creditors on a pro rata basis depending on how much money is left." Mr. Parker asserts that an investigative report into the cause of the insolvency would determine the organization's future, noting that he does not believe Mallee Financial will "rise from the dead." Creditors are unlikely to receive all their money back, Mr. Parker notes. However, Mr. Parker refused to comment on the Ausgrow Training debt, Murray Valley relates. Mallee Financial office was located in Karoonda, with services also regularly offered in Coonalpyn, Tintinara, Lameroo and Pinnaroo, Murray Valley notes. The Mallee Financial Information Service provides rural financial counseling, education, community housing, youth services and other information to residents in the Mallee area of South Australia. The Administrator can be reached at: Robert Parker Freer Parker Accountants 40 Sturt Street Adelaide, SA 5000 Australia Tel No.: (08) 8211 7177 N ENTERPRISES: Court to Hear Liquidation Application on Aug. 7 -------------------------------------------------------------- The High Court of Rotorua will hear a liquidation petition against N Enterprises Limited on August 7, 2006, 10:45 a.m. Damodar Jewellery Ltd -- trading as Christies Jewellery Papatoetoe -- filed the petition with the Court on June 19, 2006. The solicitor for the plaintiff can be reached at: Malcolm Whitlock Debt Recovery Group NZ Limited 149 Ti Rakau Drive Pakuranga, Auckland New Zealand NATIONAL SNOWBOARD: Inability to Pay Debt Prompts Wind-Up --------------------------------------------------------- At an extraordinary general meeting of National Snowboard Promotions Pty Ltd held on July 7, 2006, members decided to place the Company under creditors' voluntary wind-up due to its inability to pay debts. In this regard, 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 NEOLIDO HOLDINGS: Court Dismisses Directors' Wind Up Appeal ----------------------------------------------------------- The Court of Appeal, Supreme Court of Queensland, dismisses the appeals of former directors Richard Spencer and Silvana Perovich in relation to the winding up of Brisbane-based property developers, Neolido Holdings Pty Ltd and Neo Lido Pty Ltd. Neolido Holdings and Neo Lido were placed into liquidation after the Australian Securities and Investments Commission commenced proceedings. The orders to wind up the Companies on the grounds of insolvency were first made on November 25, 2005, when Ray Richards, of SimsPartners, was appointed liquidator. Mr. Spencer and Ms. Perovich jointly lodged a number of appeals after ASIC's winding up application. They applied before the trial judge for special leave to be heard on behalf of the Companies. The judge refused leave but allowed the former directors to give submissions in their own right. Mr. Spencer and Ms. Perovich refused the opportunity and appealed the point on the basis that the winding up order denied natural justice as a result of the trial judge's order and a refusal for an adjournment. The Court of Appeal dismissed the application, rejecting the contention that the directors did not understand it was open to them to make any argument they wished in opposition to the winding up of the companies. Mr. Spencer and Ms. Perovich also made an application to appeal against the decision of Justice McPherson, who was exercising the powers of the Court of Appeal even though he was sitting alone. Justices Williams, Keane, and Holmes found there was no provision for the appeal. The ASIC also appealed against the orders regarding a condition in the trial judge's orders that required ASIC to pay the costs of the liquidator in the winding up. On July 28, 2006, the Court of Appeal allowed the appeals of the ASIC. In the judgment, it was held that the concerns of the trial judge about further expenses imposed on the Companies in relation to the appointment of a liquidator were erroneous. Mr. Spencer and Ms. Perovich were ordered to pay ASIC's costs in relation to their appeals. Neolido Holdings and Neo Lido were ordered to pay the costs of ASIC's appeals and were also granted an indemnity certificate under the Appeal Costs Fund Act 1973 (Qld). Pursuant to the Act, Neolido Holdings and Neo Lido can recover costs payable to ASIC from the Appeal Costs Fund. * * * Neo Lido Holdings and Neo Lido -- http://www.neolido.com.au/-- are involved in the development of residential and commercial property, mainly in Queensland. According to The Australian, the group began developing inner- city houses but had more recently branched into coastal subdivisions, commercial developments, and affordable housing. The Australian Securities and Investments Commission commenced wind-up proceedings against Neo Lido Holdings and Neo Lido after it identified solvency concerns in April 2005. Because of those concerns, ASIC sought orders for the appointment of a provisional liquidator, as well as final orders to wind up the two companies. NEWTON CONSTRUCTION: Appoints Brown and Hart as Liquidators ----------------------------------------------------------- On July 10, 20063, members of Newton Construction Limited appointed Kenneth Peter Brown and Sheree Ann Hart as joint and several liquidators for the Company. The Joint Liquidators can be reached at: K. P. Brown c/o Rodewald Hart Brown Limited 38C Cavendish Drive, Manukau Auckland, New Zealand Telephone: (09) 262 3634 Web site: www.rhb.co.nz/ NUMBER 1 CYCLES: Wind-Up Petition Hearing Slated for August 31 -------------------------------------------------------------- A wind-up petition filed against Number 1 Cycles Ltd will be heard before the High Court of Auckland on August 31, 2006, at 10:00 a.m. Robert Sidney Bryce Williams filed the petition with the Court on June 20, 2006. The plaintiff's solicitor can be reached at: Natalia Baronian Price Baker Berridge First Floor, 354 Great North Road (P.O. Box 21-463) Henderson Auckland, New Zealand Telephone: (09) 836 1079 Facsimile: (09) 837 2667 NYALBRIDGE PTY: Undergoes Voluntary Wind-Up ------------------------------------------- At a general meeting on July 13, 2006, the members of Nyalbridge Pty Ltd resolved to voluntarily wind up the Company's operations. In this regard, Con Kokkinos was appointed as liquidator. The Liquidator can be reached at: Con Kokkinos O'Keeffe Walton Richwol Chartered Accountants Suite 3, 431 Burke Road Glen Iris 3146, Australia ONE RED DOG: Faces Wind-Up Proceedings -------------------------------------- Crean Foodservice Ltd on June 26, 2006, filed before the High Court of Auckland a wind-up petition against One Red Dog Ponsonby Ltd. The Court will hear the petition on September 21, 2006, at 10:45 a.m. The plaintiff's counsel can be reached at: D.M. Lester Twelfth Floor, Clarendon Tower 78 Worcester Street (P.O. Box 2929) Christchurch, New Zealand Telephone: (03) 366 1465 P.M.B. HOLDINGS: Court to Hear CIR's Liquidation Bid on Sept. 7 --------------------------------------------------------------- The Commissioner of Inland Revenue on June 19, 2006, filed before the High Court of Auckland an application to liquidate P.M.B. Holdings Ltd. The Court is set to hear the petition on September 7, 2006, at 10:45 a.m. The plaintiff's solicitor can be reached at: David Weaver Technical and Legal Support Group Auckland North Service Centre Inland Revenue Department 5-7 Byron Avenue, Takapuna Auckland, New Zealand Postal Address: P.O. Box 33-150 Telephone: (09) 984 1595 Facsimile: (09) 984 3116 PETER HOLM: Members to Hear Liquidator's Report ----------------------------------------------- A final meeting of the members of Peter Holm Investments Pty Limited will be held on August 29, 2006, at 10:00 a.m. During the meeting, Liquidator P. A. Hennessy will report on the Company's wind-up and property disposal exercises. The Liquidator can be reached at: P. A. Hennessy c/o McGrathNicol+Partners Level 32, Central Plaza One 345 Queen Street Brisbane, Queensland 4000 Australia Telephone:(07) 3333 9800 Web site: http://www.mcgrathnicol.com/ PORT BREAKWALL: Court Issues Wind-Up Order ------------------------------------------ On July 14, 2006, the Federal Court of Australia issued an order to wind up The Port Breakwall Group Pty Ltd. In this regard, Antony De Vries was appointed as liquidator. The Liquidator can be reached at: Antony De Vries de Vries Tayeh Level 3, 95 Macquarie Street Parramatta, New South Wales 2126 Australia PROFESSIONAL KITCHENS: Creditors' Must Prove Debts by Aug. 21 ------------------------------------------------------------- Joint Liquidators Kevin David Pitfield and Gareth Russel Hoole require the creditors of The Professional Kitchens Ltd to submit their proofs of claim by August 21, 2006. Failure to comply with the requirement will exclude a creditor from sharing in any distribution the Company will make. According to the Troubled Company Reporter - Asia Pacific, the High Court of Auckland heard a liquidation petition against the Company on July 20, 2006. The Joint Liquidators can be reached at: K.D. Pitfield c/o Leon Tabb, Staples Rodway Limited Chartered Accountants P.O. Box 3899, Auckland New Zealand Telephone: (09) 309 0463 REVUE DESIGN: Members Resolve to Wind Up Firm --------------------------------------------- After a general meeting on July 12, 2006, the members of Revue Design Australia Pty Ltd decided to wind up the Company's operations. In this regard, Robert Eugene Murphy was appointed as liquidator. The Liquidator can be reached at: Robert Eugene Murphy R. E. Murphy & Co., Chartered Accountants Level 9, 46 Edward Street Brisbane, Queensland 4000 Australia ROSBAN HOTELS: Appoints Joint Liquidators ----------------------------------------- The members of Rosban Hotels Pty Limited held a meeting on July 11, 2006, and agreed to shut down the Company's business operations. Creditors appointed Laurence Andrew Fitzgerald and Michael James Humphris as joint and several liquidators at a separate meeting held that same day. The Joint and Several Liquidators can be reached at: Laurence Andrew Fitzgerald Michael James Humphris Horwath BRI (Victoria) Pty Ltd Chartered Accountants Level 30, The Rialto 525 Collins Street Melbourne, Victoria 3000 Australia ROTHSCHILD PROPERTIES: Names Managh as Official Liquidator ---------------------------------------------------------- Shareholders of Rothschild Properties Ltd on July 21, 2006, named John Francis Managh as liquidator for the Company. Mr. Managh requires the creditors of the Company to submit their proofs of claim by August 24, 2006, for them to share in any distribution the Company will make. The Liquidator can be reached at: John Managh Gladstone Chambers 50 Tennyson Street (P.O. Box 1022) Napier, New Zealand Telephone/Facsimile: (06) 835 6280 e-mail: jmanagh@xtra.co.nz RYDGE PUBLICATIONS: Members Pass Resolution to Wind Up Business --------------------------------------------------------------- On July 4, 2006, the members of Rydge Publications Pty Ltd passed a special resolution to voluntarily wind up the Company's operations. In this regard, David Clement Pratt and Timothy James Cuming were appointed as liquidators. The Liquidators can be reached at: David Clement Pratt Timothy James Cuming Level 15, 201 Sussex Street Sydney, New South Wales 1171 Australia SAMSON PTY: Federal Court Appoints Receivers -------------------------------------------- The Federal Court of Australia appointed Mark Korda, Oren Zohar and Brian McMaster as receivers of Samson Food Distributors Pty Ltd on July 7, 2006. The Receiver can be reached at: Brian Mcmaster KordaMentha Level 11, 37 St Georges Terrace Perth, Western Australia 6000 Australia SOLLAISE PTY: Supreme Court Issues Wind-Up Order ------------------------------------------------ On July 17, 2006, the Supreme Court of New South Wales, ordered the wind-up of Sollaise Pty Limited. The Court also directed the appointment of R. J. Porter as liquidator. The Liquidator can be reached at: R. J. Porter Moore Stephens Chartered Accountants Level 6, 460 Church Street Parramatta, New South Wales 2150 Australia SOUTH AUSTRALIAN REAL: Members Opt for Wind-Up ---------------------------------------------- At a general meeting on July 4, 2006, the members of South Australian Real Estate Press Pty Limited decided to shut down the Company's operations. Subsequently, David Clement Pratt and Timothy James Cuming were appointed as liquidators. The Liquidators can be reached at: David Clement Pratt Timothy James Cuming Level 15, 201 Sussex Street Sydney, New South Wales 1171 Australia STRUCTURAL CONCRETE: Members Agree to Liquidate Business -------------------------------------------------------- The members of Structural Concrete Pty Ltd convened on July 12, 2006, and decided to voluntarily liquidate the Company's business. Robert M. H. Cole was consequently appointed as liquidator at the creditors' meeting held that same day. The Liquidator can be reached at: Robert M. H. Cole Cole Downey & Co Chartered Accountants Unit 2, 6 Moorabool Street Geelong, Victoria 3220 Australia STYLECRAFT FURNITURE: Appoints Ozem Kassem as Liquidator -------------------------------------------------------- At separate meetings of the members and creditors of Stylecraft Furniture (Aust) Pty Limited on July 10, 2006, it was resolved that the Company should wind up its operations. Accordingly, Ozem Kassem was appointed as liquidator. The Liquidator can be reached at: Ozem Kassem Cor Cordis Chartered Accountants Level 8 Carrington House 50 Carrington Street Sydney, New South Wales Australia TDH RETAIL: Inability to Pay Debt Prompts Wind-Up ------------------------------------------------- At a general meeting held on July 17, 2006, the members and creditors of TDH Retail Pty Ltd resolved to wind up the company's operations due to its inability to pay outstanding debts. The liquidator can be reached at: G. G. Woodgate c/o Woodgate & Co Australia Telephone: 9233 6088 W DAVIES: Enters Voluntary Liquidation -------------------------------------- At a general meeting held on July 17, 2006, the members of W Davies Pty Limited resolved to voluntarily wind up the Company's operations. Accordingly, John Charles York was appointed as liquidator. The Liquidator can be reached at John Charles York Dixon York & Napper Suite 1, Level 1, 3-5 Railway Street Baulkham Hills, New South Wales 2153 Australia WESTERN BAY: In Receivership, with NZ$53 Mln Loan Portfolio ----------------------------------------------------------- The Troubled Company Reporter - Asia Pacific reported on July 3, 2006, that Standard & Poor's Ratings Services downgraded its insurer financial strength rating on New Zealand general insurer Linsa Insurance Ltd. -- previously named Premium Insurance Ltd. -- to 'CC' from 'B-'. At the same time, Linsa was placed on CreditWatch with negative implications. The report stated that the rating actions follow heightened financial difficulties facing sister company Western Bay Finance Ltd. S&P noted that Western Bay Finance is not rated. A report from the New Zealand Press Association reveals that Western Bay has been put into receivership, leaving more than 3,000 investors in limbo. On August 3, 2006, receivers Ferrier Hodgson were called to assess the quality of Western Bay's loan book, which has about 10,000 loans totaling NZ$53 million. The National Business Review says that according to Ferrier Hodgson, Western Bay's recovery from receivership will depend on what emerges on the quality of its book. According to the NBR, whether loans were sold or collected would depend on the quality of the book and cites receiver Grant Graham saying "[t]hat's what may ultimately drive the recovery." Mr. Graham says that "a good number" of the 30-odd staff would continue working and that the picture for debenture holders would be clearer next week, ShareChat News relates. The NBR relates that Mr. Graham has reassured the remaining 30 staff that "there will be an ongoing need for staff" as the receivership proceeds. Finance Now, a subsidiary of Southland Building Society, has been undertaking due diligence in Western Bay's loan book ShareChat relates. Mr. Graham says they would be evaluating whether a deal could still be worked out, ShareChat notes. The NZPA cites a source close to the situation asserting that debenture holders could do better out of this receivership than other recent finance company collapses. Western Bay stopped granting new loans in June after the supply of funding from retail investors dried up, the NZPA recounts. The NZPA relates that the firm's trustee, Covenant Trustee Company, sounded the alarm over its debt levels on June 20, 2006, when auditors told the finance company it needed to lift equity levels after its provision for doubtful debts rose from NZ$2.67 million to NZ$12.4 million. This placed the finance company in breach of its liabilities-to- assets ratio, which prohibits the company from having debts over 90% of its asset base, the NZPA explains. Covenant's managing director Graham Miller notes that Finance Now had originally considered taking NZ$40 million of the Company's assets but then altered the deal, ShareChat says. "The directors were unable to determine if this offer could reasonably be accepted and in the light of the existing breach. . .have requested the trustee to appoint a receiver," Mr. Miller explains. Ferrier Hodgson will now be asked to assess Finance Now's amended offer, made after due diligence, The NBR relates. According to ShareChat, Western Bay chairman Jim Smylie has reportedly blamed the Company's position on negative publicity from the failures of Christchurch's Provincial Finance and Auckland's National Finance 2000, which meant that Western had no money to lend. YALLOURN FRIENDLY: Appoints Peter James Hedge as Liquidator ----------------------------------------------------------- The members of Yallourn Friendly Society Ltd met on July 14,2006, and decided to voluntarily wind up the Company's operations. In this regard, Peter James Hedge was appointed as liquidator. The Liquidator can be reached at: Peter Hedge Level 27, 363 George Street Sydney, New South Wales 2000 Australia ================================ C H I N A & H O N G K O N G ================================ A.O. SMITH CORP: Earns US$25.1 Million in Second Quarter of 2006 ---------------------------------------------------------------- A. O. Smith Corporation reported US$25.1 million net earnings on record sales of US$594.5 million for the second quarter of 2006. Net earnings for the second quarter of 2005 were US$6.5 million. The Company's revenues for the second quarter were $594.5 million including sales of US$117.8 million from American Water Heater Company and GSW. Revenues for the same period in 2005 were US$437.7 million. For the first six months of 2006, A. O. Smith reported net earnings of US$40.6 million on sales of US$1.1 billion. Net earnings for the first six months of 2005 were US$20.8 million. "Our businesses were able to generate strong results in the second quarter, achieving record sales in both businesses and significantly improved operating profits in spite of large cost increases in raw materials and energy," Chairman and Chief Executive Officer Paul W. Jones commented. Headquartered in Milwaukee, Wisconsin, A. O. Smith Corporation, manufactures and markets residential and commercial water heating equipment. The Company also manufactures electric motors for residential, commercial, and industrial applications. A. O. Smith employs 19,500 people at facilities in the United States, Mexico, China, Canada, and Europe. * * * On July 22, 1985, Moody's Investors Service assigned A. O. Smith Corporation's preferred stock rating at Ba1. AXIMAGE INTERNATIONAL: Members' Final Meeting Slated for Aug. 28 ---------------------------------------------------------------- Members of Aximage International Ltd will convene for their final meeting on August 28, 2006, 10:00 a.m. at 32nd Floor, One Pacific Place, 88 Queensway, Hong Kong. At the meeting, Joint Liquidators Darach E. Haughey and Lai Kar Yan Derek will present their report on the Company's wind-up property disposal activities. BANK OF COMMUNICATIONS: Overseas Investment Plan Gets Nod --------------------------------------------------------- Bank of Communications received central government approval to invest a total of US$1.5 billion of their clients' money overseas under the mainland's qualified domestic institutional investor, or QDII, scheme, The Standard reports. "With the quota, we will launch the first investment product soon," a Bank of Communications spokesperson told China Daily, adding that the bank is well prepared for the service. According to The Standard, the Chinese government had launched the QDII scheme in April in order to ease the upward pressure on the yuan. The scheme would relax the controls of capital outflows by allowing institutions and citizens to invest overseas through the QDII program. The China Daily reports that quotas totaling nearly US$10 billion are expected to be approved for the QDII scheme by the end of the year. The China Banking Regulatory Commission approved the first batch of six banks to start the business over a month ago, China Daily adds. * * * Founded in 1908, Bank of Communications is one of four oldest banks in China and one of the early note-issuing banks of China. BOCOM was also China's first state-owned shareholding commercial bank. With a 20% stake owned by HSBC, BOCOM was listed in Hong Kong in June 2005, becoming the first major commercial bank from the Chinese mainland to be listed overseas. Earlier, the Bank faced a fraud case involving CNY220 million at its Jinzhou branch in Liaoning. According to the National Audit Office, several staff members at the branch had forged documents to deceive the lender's Shanghai headquarter about the cancellation of loans made out to 175 companies. CHINA CONSTRUCTION: SAFE Approves US$2-Bln Offshore Investments --------------------------------------------------------------- The State Administration of Foreign Exchange approved China Construction Bank's overseas investment quota of US$2 billion, the China Daily reports. According to China Daily, the investment would be under the qualified domestic institutional investor, or QDII, scheme. Based on the QDII scheme, banks approved by SAFE are allowed to convert their clients' renminbi funds into foreign currency and invest in overseas capital markets. The China Daily relates that amid expectations of an appreciation of the renminbi, huge amounts of foreign exchange rushed into China in recent years, putting increased upward pressure on the Chinese currency. Thus, the capital outflows resulting from the QDII scheme will help alleviate the pressure on the renminbi and will slow the pace of the expansion of the country's foreign exchange reserves, analysts told China Daily. * * * The China Construction Bank -- http://www.ccb.cn/-- is one of the "big four" banks in the People's Republic of China. It was founded on October 1, 1954 under the name of "People's Construction Bank of China" and later changed to "China Construction Bank" on March 26, 1996. On November 24, 2005, The Troubled Company Reporter - Asia Pacific reported that Moody's Investors Service has upgraded CCB's Bank Financial Strength Rating to D- from E+. Recently, The Troubled Company Reporter - Asia Pacific reported that Zhang Jianguo, former head of China's Bank of Communication, was named president and vice chairman of China Construction Bank. ELRA (HONG KONG): Liquidator to Present Wind-Up Report ------------------------------------------------------ Members of Elra (Hong Kong) Ltd will convene on August 31, 2006, at 10:00 a.m. to hear Liquidator Heing Poi Cher's accounts of the Company's wind-up and property disposal exercises. The Liquidator can be reached at: Heng Poi Cher Liquidator 4404 China Resources Bldg 26 Harbour Road Wanchai Hong Kong FAR MANOR: Members to Receive Wind-Up Report on August 28 --------------------------------------------------------- Members of Far Manor Limited will hold a meeting on August 28, 2006, 3:00 p.m. at 26/F., 88 Lockhart Road, Wanchai, Hong Kong. During the meeting, Liquidator Ng Chi Kin, David will present his report on the Company's wind-up and property disposal activities. JOYFINE LIMITED: Members Final Meeting Slated for September 1 ------------------------------------------------------------- Members of Joyfine Limited will convene for their final meeting at Room A, 3/F., Centre Mark II, 305-313 Queen's Road Central, Hong Kong on September 1, 2006, at 10:00 a.m. At the meeting, Liquidator Chan Man Sau will report on the Company's wind-up proceedings. KENFIELD CORPORATION: Creditors Must Prove Debts by August 21 ------------------------------------------------------------- Liquidator Raymond Tang Wai Man requires the creditors of Kenfield Corporation Ltd to submit their proofs of by August 21, 2006. Failure to comply with the requirement will exclude a creditor from sharing in any distribution the Company will make. The Liquidator can be reached at: Raymond Tang Wai Man Room 1109-10 C C Wu Bldg 302-8 Hennessy Road Wanchai, Hong Kong LC EPICURE: Members to Receive Wind-Up Report --------------------------------------------- On September 12, 2006, members of LC Epicure Ltd will be receiving a report on the Company's wind-up proceedings from liquidator Lee Ho Ming. The presentation will be made at 23/F., Wheelock House, 20 Pedder Street, Central, Hong Kong. QUERRINGTON LIMITED: Final Members Meeting Set on August 29 ----------------------------------------------------------- A final meeting of the members of Querrington Ltd will be held at the office of Liquidator Allan Hon Wing Yu on August 29, 2006, at 11:00 a.m. At the meeting, Mr. Yu will report on the Company's wind-up and property disposal exercises. The Liquidator can be reached at: Allan Hon Wing Yu 23rd Floor, Wing Hang Finance Centre 60 Gloucester Road, Wanchai Hong Kong SK GLOBAL: Joint Liquidators Step Aside --------------------------------------- Choi Byoung Sun and Yim Chi Po, Brian ceased to act as joint and several liquidators of SK Global Hong Kong Ltd on July 18, 2006. The former joint liquidators can be reached at: Yim Chi Po, Bryan Room 702, Hollywood Plaza 610 Nathan Road, Kowloon Hong Kong SOUTHERN FORTUNE: Faces Wind-Up Proceedings ------------------------------------------- The High Court of Hong Kong received a wind-up petition against Southern Fortune Trading (Hong Kong) Ltd from Wong Fuk Po on June 28, 2006. The Court will hear the application on August 23, 2006, at 9:30 a.m. The solicitor for the petitioner can be reached at: Joe Poon For Director of Legal Aid 34/F., Hopewell Centre 183 Queen's Road East Wanchai, Hong Kong WELRISE HOLDINGS: Creditors' Proofs of Claim Due on August 29 ------------------------------------------------------------- Creditors of Welrise Holdings Ltd are required to submit their proofs of claim by August 29, 2006, to Liquidator Lee Chi Keung. Failure to comply with the requirement will exclude a creditor from sharing in any distribution the Company will make. The Liquidator can be reached at: Lee Chi Keung 21/F., Fee Tat Commercial Centre No 613 Nathan Road, Kowloon Hong Kong * CBRC Punishes Financial Staff Involved in Bank Crimes ------------------------------------------------------- The China Banking Regulatory Commission disclosed in a statement that it had since February 2005 punished total of 1,887 bank employees for bank crimes involving a total of CNY8 billion, the Xinhua News reports. In addition, CBRC relates bank crimes dropped by almost a third to 480 cases in the first half of the year, a decline of 240 cases over the same period last year. The CBRC told Xinhua News that this shows scandalous financial crimes is being contained. However, Xinhua News notes that the statement did not provide details on the types of crimes that were committed nor the type of punishment the criminals faced. The Troubled Company Reporter - Asia Pacific reported on July 4, 2006, that CBRC launched a special program to improve bank governance in the country. The commission has urged Chinese banking institutions to establish stricter internal-controls to prevent financial crimes. TCR-AP also noted that China has been rocked by a number of shocking banking scandals in recent years, as the country strives to reform its bank system. According to Xinhua News, analysts attribute the frequent occurrence of these crimes to the old management systems of state-owned banks, traditional banking culture in China as well as weak supervision. ========= I N D I A ========= HINDUSTAN PETROLEUM: Mulls Entry Into Power Sector -------------------------------------------------- Hindustan Petroleum Corporation Limited is planning to venture into the power business despite calls by the Government for oil marketing firms to stick to their core operations, The Financial Express reveals. The state-owned oil firm is keen on offshore and onshore exploration, production of hydrocarbon and the setting up of power plants in India, The Express says. In its "Perspective Plan: Vision 2020" report, Hindustan Petroleum proposes to change its predominantly retail tilt. It wants to increase participation in industrial and government business, buoyed by the fact that one of its core strengths is product availability, the report says. According to The Express, the Company has confirmed that it has already formulated a "vision plan" but there is still no clear plan to enter the power sector as of now. Meanwhile, analysts noted that the implementation of its perspective plan might not be easy, as the petroleum ministry has directed upstream and downstream companies to concentrate on core activities, The Express relates. If Hindustan Petroleum indeed enters the power sector, it will set up plants near natural gas and liquefied natural gas sources. So, the plants could be near HPCL/JVC refineries or where natural gas/LNG is available. Thereafter, the Company may also weigh the option of diversifying into transmission and distribution. About Hindustan Petroleum Mumbai-based Hindustan Petroleum Corporation Ltd -- http://www.hindustanpetroleum.com/-- was formed in 1974 on nationalization of ESSO India operations. The operations of Caltex were merged in 1976. With two refineries at Mumbai and Vizag, Hindustan Petroleum is currently is the second largest player in both the Indian oil sector as well as the highly competitive lubricants market. However, the Company has lately been incurring losses due to a government mandate to sell fuel at subsidized prices. The Company is counting on a Government bailout to save it from bankruptcy. LML LIMITED: Allots 6.99-Lakh Shares Upon FCCB Conversion --------------------------------------------------------- LML Ltd has allotted 6.99 lakh equity shares to Merrill Lynch Capital Markets Espana SASV upon conversion of 500 Foreign Currency Convertible Bonds, the Company revealed in a statement to the Bombay Stock Exchange. At a meeting held on August 2, 2006, 6,99,356 shares of INR10 each were allotted upon conversion of FCCBs (Series B) of US$1,000 each aggregating to US$500,000. Shares were allotted to Merrill Lynch at a premium of INR21.10 per share upon FCCB conversion. The Troubled Company Reporter - Asia Pacific reported that on June 14, 2006, LML allotted 67,15,769 equity shares of INR10 each at a premium of INR28.08 per share to Merrill Lynch Capital. The allotment was made pursuant to the conversion of 5,879 foreign currency convertible bonds of US$1,000 each for a total of US$5,879,000 into equity shares. On July 13, 2006, LML Limited allotted 27,97,427 equity shares of INR10 each to Merrill Lynch Capital Markets Espana S.A.SV. at a premium of INR21.10 per share. The allotment is pursuant to the conversion of 2,000 Foreign Currency Convertible Bonds- Series B due 2010 of US$1,000 each. About LML Limited Headquartered in Uttar Pradesh, India, LML Limited manufactures two wheeler vehicles particularly scooters and spares and accessories. The Group's products include geared scooters, gearless scooters, motorcycles and mopeds. The Company has been incurring consecutive losses since 2004. As on March 31, 2005, LML had capacity to manufacture 0.45 million scooters and 0.18 million motorcycles per annum. During the 18 month period ended March 2005, LML reported turnover of INR5.97 billion and a net loss of INR956.06 million. The Company is currently in a restructuring mode -- for the second time in less than a year -- and is struggling to overcome working capital problems. Labor unrest and a lack of working capital have practically stopped production and dispatches at its sole Kanpur plant in the past months. As reported by the Troubled Company Reporter - Asia Pacific on June 28, 2006, ICRA has downgraded the rating assigned to the INR1,250-million preference share capital program of LML Limited to "LC" from "LBB" following prolonged disruption of manufacturing operations subsequent to lockout at its Kanpur factory. UTI BANK: S&P Assigns BB+/B Credit Ratings With Positive Outlook ---------------------------------------------------------------- Standard & Poor's Ratings Services, on August 2, 2006, assigned its 'BB+/B' counterparty credit ratings to UTI Bank Ltd., a private sector bank based in India. The outlook is positive. S&P also assigned its 'C' bank fundamental strength rating to the Bank. At the same time, S&P assigned its ratings to UTI Bank's proposed debt issues under its EUR1 billion medium-term note program. The agency rated UTI Bank's proposed senior unsecured notes 'BB+', its lower Tier II subordinated notes 'BB', and its upper Tier II subordinated notes 'BB-'. The lower Tier II subordinated notes will have a minimum tenor of five years, and the upper Tier II subordinated notes will have a minimum tenor of 15 years. "The ratings on UTI Bank take into account its competitive interest costs, and the significant contribution of fee income, which stood at 27% of operating revenues in fiscal 2005. In addition, the bank's asset quality is comparable with domestic banks, and it has satisfactory capitalization and adequate liquidity," said S&P credit analyst Nandini Vijayaraghavan. Although UTI Bank's interest expenses rose to 4.75% of interest- bearing liabilities in fiscal 2006 due to higher interest rates, this ratio still compares favorably with domestic peers. "However, the bank's net interest income margin is lower than its domestic peers, and the ratings on UTI Bank are linked to the operating environment and sovereign risk," said Ms. Vijayaraghavan. The ratio of the bank's net interest income to average assets, at 2.47% for the year ended March 31, 2006, is lower than the average 2.7% at domestic banks rated by S&P. Aggressive loan growth since fiscal 2004 has resulted in deterioration in the bank's gross nonperforming asset ratio to 3.65%, and pressure on its capitalization, with a decline in the ratio of adjusted common equity to assets to 5.78% at March 31, 2006. As with other Indian banks, UTI Bank's credit profile is linked to the sovereign credit rating on India (BB+/Positive/B) because banks are subject to government policy and regulation, invest a significant proportion of funds in government securities, and derive a high proportion of revenue from India. A BFSR of 'C' indicates that the bank has adequate fundamental strength. However, the bank is more sensitive to uncertainties and adverse circumstances than higher-rated banks. The proposed senior unsecured debt issue ranks pari passu with all other senior debt obligations of UTI Bank. The differential between the 'BB+' counterparty credit rating, the 'BB' rating on the lower Tier II notes, and the 'BB-' rating on the upper Tier II notes reflects the subordinated nature of the notes. In addition, the 'BB-' rating on the upper Tier II subordinated notes reflects an interest deferral option on the notes. Any missed payments are non-cumulative. The interest deferral feature is linked to the compliance of the regulatory capital adequacy ratio and a liberal profit test, in turn linked to the 'balance in profit & loss account,' which is a component of the reserves and surplus on a bank's balance sheet. A 'net loss' is defined as a negative balance in this account. If the bank is in compliance with the RCAR but registers a 'net loss,' the bank will require the regulator's permission before the bank can make interest payments on the notes. If the bank is not in compliance with the RCAR and registers a 'net loss,' it will be mandatory for the bank to defer interest payments. If the bank is not in compliance with the RCAR but does not have a 'net loss,' UTI Bank has the option to defer interest payments. The upper Tier II notes are not included in Standard & Poor's measure of core capital, which is adjusted common equity. This is in line with S&P's treatment of other forms of hybrid capital, including preference shares, in its analysis of capital. S&P will, however, recognize equity capital credit for the proposed upper Tier II notes in the bank's adjusted total equity of up to 10% (adequate equity content). The positive outlook on UTI Bank reflects the bank's improving profile amid a stronger operating environment. The rating on UTI Bank could be raised if it continues to moderate funding costs despite rising interest rates, the significant contribution of fee income continues to impart stability to earnings, and its asset quality remains comparable with the industry average. Conversely, the rating could be lowered if bank's net interest income, as a proportion of average assets, declines to levels that are significantly lower than the domestic average and asset quality deteriorates due to aggressive loan expansion targets. ================= I N D O N E S I A ================= BANK TABUNGAN: Moody's Revises 'E' BFSR Outlook to Positive ----------------------------------------------------------- Moody's Investors Service had, on Aug. 1, 2006, revised the outlook for Bank Tabungan Negara's 'E' bank financial strength rating to positive from stable. According to Moody's Vice President & Senior Credit Officer Beatrice Woo, the revised outlook reflects Bank Tabungan's level of economic solvency, although it deteriorated in 2005 due to Bank Indonesia's revised regulations. She added, "After adjusting for problem loans on its balance sheet, its economic solvency is positive under less severe loss assumptions. The Bank's profitability ratios have also been relatively modest in the past two years, despite its policy role of providing financing for low- to middle-income housing." * * * Bank Tabungan Negara -- http://www.btn.co.id/-- was established in 1897 under the name Postspaarbank. After several name changes, the Bank assumed its current title in 1963. In 1974, Bank Tabungan was appointed as the financing institution for low- to medium-income housing in an effort to support the Government's housing development program. Nonetheless, BTN suffered huge losses from large corporate lending during the 1997 economic crisis. The Government then recapitalized the Bank, and still wholly owns it. BTN is now the smallest state bank, but retains a dominating 31% share in housing loans as of end-2004. In 2002, the Government directed it to focus on commercial housing loans. Hence, its subsidized housing loans dropped to 44% of its portfolio at July 2005 from 75% at end-2002. HM SAMPOERNA: Net Income Rises to IDR947 Trillion ------------------------------------------------- PT Hanjaya Mandala Sampoerna Tbk's net income for first quarter of 2006 is IDR947.14 trillion, up 25.80% or IDR194.27 trillion from the previous corresponding quarter's net income of IDR752.87 trillion, according to the company's financials. Net sales improved 35.24% to IDR7.13 quadrillion for the first quarter of 2006 from IDR5.27 quadrillion the year before. Cost of goods sold increased by 41.53% to IDR5.12 quadrillion, giving the company a 32.57% improvement in operating income. Total assets as of March 31, 2006, was at IDR12.42 quadrillion while total equity amounted to IDR5.63 quadrillion. HM Sampoerna's financial report for the quarter ended March 31, 2006, is available for free at: http://bankrupt.com/misc/hm_sampoerna_1q2006.pdf About HM Sampoerna Surabaya, East Java-based PT Hanjaya Mandala Sampoerna Tbk -- http://www.sampoerna.com-- manufactures hand rolled and machine-rolled clove-blended cigarettes. The company distributes its products in the domestic and international market. Through its subsidiaries, the company also develops properties. Standard and Poors gave HM Sampoerna's Long Term Foreign Issuer Credit a 'BB+' rating effective on November 3, 2005. HM SAMPOERNA: Agrees to Sell 23.4% Stake in Retail Unit ------------------------------------------------------- PT Hanjaya Mandala Sampoerna Tbk will sell its 23.4% stake in local retail unit PT Alfa Retailindo, Bloomberg News reports. According to a company statement to the Jakarta Stock Exchange, Sampoerna has agreed to sell its stake in Alfa Retailindo to PT Sigmantara Alfindo. However, the Company did not indicate the value for the transaction. Sampoerna signed the sale agreement with Sigmantara on July 14, 2006, and the transaction will be completed by October 5, 2006, at the latest, the Company said. About HM Sampoerna Surabaya, East Java-based PT Hanjaya Mandala Sampoerna Tbk -- http://www.sampoerna.com-- manufactures hand rolled and machine-rolled clove-blended cigarettes. The company distributes its products in the domestic and international market. Through its subsidiaries, the company also develops properties. Standard and Poors gave HM Sampoerna's Long-Term Foreign Issuer Credit a 'BB+' rating effective on November 3, 2005. PAN INDONESIA: Moody's Raises 'D-' BSFR Outlook to Positive ----------------------------------------------------------- Moody's Investors Service had, on Aug. 1, 2006, revised its outlook for Pan Indonesia Bank's D- bank financial strength rating to positive from stable. Moody's Vice President & Senior Credit Officer Beatrice Woo said, "The positive outlook reflects upward pressure on Pan Indonesia's BSFR, arising from its solid economic solvency, even after adjusting for problem loans on its balance sheet. However, its capital strength was off-set by the deterioration in its financial performance during 2005." Traditionally, Pan Indonesia enjoyed financial metrics superior to its peer group, particularly in profitability and asset quality. If the Bank can regain its stronger recurring earnings stream, its BFSR may then move into a higher rating band. Panin, headquartered in Jakarta, is Indonesia's eighth largest bank by assets. During the financial crisis, it was the only listed bank that did not require government recapitalization. Since 1999, Australia's ANZ Bank (rated Aa3) has held a stake in Panin following a technical services agreement. ANZ has increased its ownership and now controls 29%. Panin has a 2.5% share of the deposit market and 2.4% of the loan market. This rating was affected: -- Bank financial strength rating of D-. Outlook revised to positive from stable. These ratings were unaffected: -- Long-term/short-term deposit ratings of B2/Not Prime. Outlook stable. * * * PT Pan Indonesia Bank Tbk. is a commercial bank that was established in 1971 through the merger of three private banks: PT Bank Industri dan Dagang Indonesia, PT Bank Kemakmuran and PT Industri Djaja Indonesia. In 1972, the Bank was granted a license to operate in foreign exchange transactions. The Bank has a network of 100 domestic offices, consisting of 20 main branches and 80 sub-branches in all the important cities in Indonesia and 2 offshore branches in the Cayman Islands and Cook Island. Pan Indonesia also has several international banks as joint-venture partners in local financial services firms. ========= J A P A N ========= FORD MOTOR CREDIT: JCR Pulls Down Senior Debts Rating to BB- ------------------------------------------------------------ Japan Credit Rating Agency, Ltd., has, on August 1, 2006, downgraded the long-term senior debts rating of Ford Motor Credit Co. to BB- with a negative outlook and its long-term senior bonds rating to BB with a negative outlook from BBB-, on the deteriorating credit standing of parent firm Ford Motor Co. With the increasingly competitive situation in the North American auto market, Ford suffered from substantial deteriorating sales mix and erosion in market shares. JCR downgraded the rating by two notches because the agency concluded that, with a weaker sales mix, the level of profit and cashflow to be generated by Ford in the coming years would not be enough to support the former BBB- rating, even with its efforts to revitalize North American auto operation in the mid- term. The rating could be pulled down if further erosion of market shares or deterioration of sales mix will be seen in North America. 1. Ford is still exposed to increased competitive pressure in its key North American market, and is suffering from pressures on profitability emanating from a deteriorating sales mix. While Ford maintained its market shares in North America for the first half of 2006 slightly above 18%, modest decrease in the shares are mainly due to solid market acceptance of its new mid and full-size passenger cars. Sales of mid- to large-size SUVs, which were generating a large share of Ford's auto segment earnings, had rapidly decreased, and consequent deterioration of sales mix put pressures on its profitability. JCR thinks that the decline in sales was mainly due to high gasoline prices and the shift of consumer preference away from mid- to large-size SUVs, and thus is not likely to be reversed in the near future. 2. Ford's cost structure is less competitive due to its relatively generous health insurance benefits. Even as Ford tried to improve its cost structure via employee buyouts and agreement with UAW on reduction of healthcare cost, JCR thinks that the consequent cost reduction will not be sufficient to restore profitability with current level of market shares and sales mix. While further reductions of healthcare cost is necessary, it is not certain whether Ford could reach a meaningful agreement with UAW in labor negotiations in 2007. While Ford derived significant earnings and cashflow from Ford Credit in recent years, Ford Credit's earnings have been decreasing with its funding cost rising and asset portfolio becoming smaller. Earnings and cashflow to be derived from Ford Credit in the coming years will be smaller than in the recent years. 3. Ford is currently implementing North American restructuring ("Way Forward") plan, which aims at regaining long-term profitability of North American auto business by reducing material cost, eliminating excess capacity and accelerating introduction of new models. However, measures such as extensive reduction of capacity and headcounts entail substantial costs and could take more time to implement than initially expected. Ford's credit standing is likely to be undermined with future declining sales mix, before the improvements in cost structure will be materialized. 4. In JCR's view, Ford Credit and Ford have a very close relationship with each other through their operations and shareholding, and thus Ford Credit's credit rating is strongly influenced by its parent's credit standing. While Ford relies on Ford Credit to provide funds to its dealers and retail customers purchasing Ford vehicles, Ford Credit heavily depends on Ford's dealership system and retail customers for financing revenue. Ford Motor Credit Co. -- http://www.fordcredit.com/-- is one of the world's largest auto financing companies, and funds autos for and through some 12,500 Ford, Lincoln, Mercury, Jaguar, Land Rover, Mazda, Aston Martin, and Volvo dealerships. Ford Motor Credit Co. finances new, used, and leased vehicles (including about 40% of new Fords sold in the US) and provides wholesale financing, mortgages, and capital loans for dealers. The Company also offers individual and business fleet financing, while its insurance operations offer extended service contracts, automobile insurance, wholesale inventory insurance, and credit life and disability insurance. MITSUBISHI MOTORS: R&I Upgrades CCC+ Rating to B ------------------------------------------------ Rating & Investment Information Inc. has, on July 31, 2006, upgraded its issuer rating on Mitsubishi Motors Corp. from CCC+ to B with a stable outlook and its commercial paper rating from c to b, and has removed the rating from its monitor at the same time. The Company's efforts to revamp its operational base and launch new models are beginning to pay off and earning power has begun to recover. While the earnings base is still weak and there are several issues to address before a full recovery occurs, grave concerns of a significant deterioration in the financial base have receded. After announcing its Revitalization Plan in January 2005, MMC set about revitalizing its operations. Sales of its new Outlander SUV and the new concept "i" minicar models that were launched locally in March 2006 were satisfactory. The Company has also been earning relatively stable profits in Asia, mainly from pickup trucks produced in Thailand. As a result, operating results have returned to the black to JPY6.8 billion. Operating deficit for the period ended March 2006, however, stood at JPY128.5 billion. Mitsubishi Motors' subsidiary NedCar stopped producing Daimler- Chrysler's compact smart forfour vehicle on June 30, 2006. This left the unit with production of the Colt model, so there is considerable excess production capacity and the Company plans further rationalization and restructuring in the future. However, the impact on earnings at the moment is limited due to compensation from Daimler-Chrysler. There is room for improvement in the Company's global production system and there are still several issues to be tackled before a full-fledged recovery of the earnings base can occur. Mitsubishi Motors also needs to pay more attention to the incidence of further extraordinary losses due to streamlining of operations. In spite of these weaknesses, however, R&I believes that the financial base will probably be maintained at a certain level. R&I will monitor the Company to determine whether it can improve its earnings in Japan and North America, which are still in the red, after the launch of new vehicles and boost of its sales network. Another aspect to monitor is whether the Company can smoothly procure external funds for capital investment and research & development. 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. SOFTBANK CORPORATION: Sells 7.5% Stake in Unit for JPY50 Billion ---------------------------------------------------------------- Softbank Corp. sold 7.5% of its 26.7% stake in unit SBI Holdings Inc. for JPY50 billion, AFX News Limited relates. The shares were valued at JPY45,000 each. The Company said that it will use the proceeds from the share sale to repay a portion of its outstanding debt. The AFX report, however, did not specify who bought the shares. Based in Tokyo, Japan, Softbank Corporation -- https://www.softbank.co.jp/ -- is a leading Japanese telecommunications and media corporation, with operations in broadband, fixed-line telecommunications, e-Commerce, Internet, broadmedia, technology services, finance, media and marketing, and other businesses. SoftBank was established on September 3, 1981, and had a market capitalization of approximately US$32.8 billion at 28 February 2006. SoftBank's corporate profile includes various other companies such as Japanese broadband company Cable & Wireless IDC, cable company BB-Serve, and gaming company GungHo Online Entertainment. On March 17, 2006, SoftBank announced its agreement to buy Vodafone Japan, giving it a stake in Japan's US$78 billion mobile market. * * * According to a Troubled Company Reporter - Asia Pacific report on April 18, 2006, Standard & Poor's Rating Services agency affirmed its 'BB-' long-term corporate credit rating on the Company, with negative implications. ========= K O R E A ========= BOWATER INC: Reports US$10.6 Mil. Net Loss for 2nd Quarter 2006 --------------------------------------------------------------- Bowater Incorporated reported a net loss of US$10.6 million on sales of US$899.4 million for the second quarter of 2006 compared with a net loss of US$3.6 million on sales of US$897.5 million in the second quarter of 2005. "Our second quarter financial results were impacted by additional costs related to scheduled operational maintenance, conversion of a newsprint machine to specialty papers at our Calhoun, Tennessee facility and permanent closure of a market pulp line at our Thunder Bay site," David J. Paterson, president and chief executive officer, said. "However, with these events largely behind us, I look forward to improved operational and financial performance which, when combined with our asset sale program, should lower our debt levels in the second half of the year." The asset sale program of the Company during the second quarter had proceeds of $201.3 million providing an after-tax gain of US$45.7 million resulting to a decline of total debt by US$148 million. During the first quarter of 2006, the Company sold its Degelis sawmill and approximately 24,000 acres of timberlands located in Tennessee and during the second quarter of 2006, it sold its Baker Brook sawmill and approximately 472,000 acres of timberlands located in Tennessee and the Canadian province of New Brunswick. As of June 30, 2006, it has approximately 42,000 acres classified as timberlands held for sale. A full-text copy of the Company's quarterly report is available for free at http://ResearchArchives.com/t/s?e92 Headquartered in Greenville, South Carolina, Bowater Incorporated (TSX: BWX) produces newsprint and coated mechanical papers. In addition, the company makes uncoated mechanical papers, bleached kraft pulp and lumber products. The company approximately has 7,800 employees and has 12 pulp and papermills in the United States, Canada and South Korea and 12 North American sawmills that produce softwood lumber. Bowater also operates two facilities that convert a mechanical base sheet to coated products. Bowater's operations are supported by approximately 1.4 million acres of timberlands owned or leased in the United States and Canada and 30 million acres of timber cutting rights in Canada. Bowater common stock is listed on the New York Stock Exchange, the Pacific Exchange and the London Stock Exchange. A special class of stock exchangeable into Bowater common stock is listed on the Toronto Stock Exchange. * * * As reported in the Troubled Company Reporter on June 27, 2006 Fitch Ratings has assigned a 'BB' rating to Bowater, Inc.'s senior secured bank debt. The company's issuer default ratings, 'BB-' and senior unsecured bond ratings, 'BB-', remain unchanged. The Rating Outlook remains Stable. As reported by the Troubled Company Reporter on June 21, 2006 Moody's Investors Service affirmed the Company's B1 long term debt ratings and SGL-2 speculative grade liquidity rating. The Outlook is Stable. As reported in the Troubled Company Reporter on June 2, 2006, Dominion Bond Rating Service downgraded the rating of Bowater Canadian Forest Products Inc. to BB (low) from BB. The trend remains Negative. Standard & Poor's Ratings Services lowered its ratings on Bowater and subsidiary Bowater Canadian Forest Products Inc., including the corporate credit rating on each entity to 'B+' from 'BB' in December 2005. S&P said the outlook is stable. EUGENE SCIENCE: March 31 Balance Sheet Upside Down by US$11.3M -------------------------------------------------------------- Eugene Science, Inc., fka Ezomm Enterprises, Inc., filed its first quarter financial statements for the three months ended March 31, 2006, with the Securities and Exchange Commission on May 22, 2006. The Company reported a US$1,198,494 net loss on US$122,443 of revenues for the three months ended March 31, 2006. At March 31, 2006, the Company's balance sheet showed US$11,696,088 in total assets and US$23,073,055 in total liabilities, resulting in a US$11,376,967 stockholders' deficit. The Company's March 31 balance sheet also showed strained liquidity with US$1,571,491 in total current assets available to pay US$20,952,649 in total current liabilities coming due within the next 12 months. A full-text copy of the regulatory filing is available for free at http://ResearchArchives.com/t/s?aeb Going Concern Doubt As reported in Troubled Company Reporter on May 18, 2006, SF Partnership, LLP, Chartered Accountants, in Toronto, Canada, raised substantial doubt about Eugene Science, Inc., fka Ezomm Enterprises, Inc.'s ability to continue as a going concern after auditing the Company's consolidated financial statements for the year ended Dec. 31, 2005. The auditor pointed to the Company's recurring losses, negative working capital, and operation in a country whose economy is currently unstable -- South Korea. About Eugene Science Based in Kyonggi Do, South Korea, Eugene Science, Inc., fka Ezomm Enterprises, Inc. (OTCBB: EUSI) is a global biotechnology company that develops, manufactures and markets nutraceuticals, or functional foods that offer health-promoting advantages beyond that of nutrition. Plant sterols are the Company's primary products, which include CZTM Series of food additives and CholZeroTM branded beverages and capsules. In June 2005, the Company received regulatory approval for certain health claims associated with the Company's products from government agencies in the Republic of Korea. INDUSTRIAL BANK OF KOREA: Plans to Buy LIG Unit ----------------------------------------------- The Industrial Bank of Korea, the nation's largest lender to small-sized companies, said that LIG Non-Life Insurance Co.'s life insurance subsidiary is among its potential takeover targets as it seeks to expand, Bloomberg News reports. Bloomberg says that Industrial Bank is in talks with the biggest shareholder of LIG Life Co. to buy a controlling stake. However, according to the report, Lee Do Hee, a spokesman for LIG Non-Life, has denied any talks about a possible sale. About LIG Non-Life Insurance LIG Non-Life Insurance Co., Ltd., offers a variety of non-life insurance services, such as auto, fire, marine, casualty, health, leisure, and travel for individual and institutional customers. The Company also provides specialty purpose insurance services, including e-commerce and Internet service provider businesses. About Industrial Bank of Korea Industrial Bank of Korea -- http://www.kiupbank.co.kr-- is South Korea's largest lender to small-sized companies. It provides commercial banking services to small and mid-sized companies. The Bank provides loans, discount bills, deposits, installment savings deposits, domestic remittances, foreign exchange, safe deposit boxes, and payment acceptances and guarantees. IBK also provides PC banking and telephone banking services. Moody's Investors Service gave Industrial Bank of Korea a Bank Financial Strength Rating of 'D' effective January 24, 2006. KOREA EXCHANGE BANK: Stake Sales Hack Up Net Income --------------------------------------------------- Korea Exchange Bank posted a record KRW928.4 billion net income for the first six months of this year, up 43.72% year-on-year, according to the bank's press release. The Korea Times notes that the result is due to "a steady increase in interest and non-interest income, as well as its sale of a stake in Hynix Semiconductor." The steady increase of net income is attributable to continuous expansion of its earning platform involving ordinary operating activities, KEB said. The bank's strength in earning capacity comes from a continuous increase of its lending, its solid position as a leading bank in foreign exchange and trade finance, as well as high fee income generated by sale of bancassurance products and beneficiary certificates, among others. Furthermore, its industry-top performance in terms of asset quality and recovery of its distressed assets steadily eased its loss provisioning burdens. Pre-tax income of KRW1.29 trillion during the first half of 2006 doubled the performance of the previous corresponding period which recorded a pre-tax income of KRW649.0 billion. Even excluding one-off factors, the bank maintains a normal quarterly profit, at par with its average of more than KRW300 billion every quarter, indicating its solid earning power surpassing that of the preceding year. The bank recorded extraordinary income during the period after partial disposals of debt-equity-swap shares of Hyundai Engineering and Hynix Semiconductor. The Troubled Company Reporter - Asia Pacific reported on June 26, 2006, that KEB has sold a 5.2% stake in Hyundai Engineering & Construction Co. in a block trade on June 20, 2006. The block trade of about 5.7 million shares was done at a price of KRW42,700 per share. The final price marked the mid- point of the initial price range of KRW41,850 and KRW43,600. The KRW241.9-billion block trade was arranged by Morgan Stanley. The Hyundai Engineering stake sale and reversal of impairment loss related to Hyundai Engineering gave the bank an additional KRW364 billion. Another TCR-AP report stated that Hynix Semiconductor and its creditors sold shares and bonds. The sale, according to The Korea Times, gave KRW100 billion to Korea Exchange, after the bank divested a 1.33% stake in Hynix. Better Asset Management KEB now maintains annualized ROA of 2.8% and ROE of 31.0%. With stable asset management, the bank recorded substandard-and-below ratio of 0.65% and delinquency ratio of 0.75% as of June 30, 2006. Its BIS ratio is anticipated to reach 14% level as of June-end, up from 13.67% as of March-end this year. Tier 1 capital ratio of the bank is expected to hover 11% as of June-end, up from 10.06% as of March-end this year. KEB's Financial Report for the First Half of 2006 is available for free at: http://bankrupt.com/misc/KEB_First_Half_2006.pdf Second Quarter Results KEB's second quarter 2006 net income is KRW628.5 billion, up 109.64% from KRW299.8 billion in the first quarter 2006. Net interest income for the three months ended June 30, 2006, amounted to KRW450.8 billion, a difference of KRW4.1 billion, or 0.92% from the first quarter's KRW446.7 billion. About Korea Exchange Korea Exchange Bank -- http://www.keb.co.kr/english/index.htm-- was established in January 1967 by the Government originally as a specialist foreign exchange bank. It retains its strength in trade finance and foreign exchange. In terms of assets, it ranks sixth among Korea's nationwide commercial banks with 7% of system assets. It operates a branch network of 317 domestic and 28 overseas offices in Australia, Bahrain, Canada, China, Hong Kong, France, Germany, Indonesia, Japan, Netherlands, Panama, Philippines, the United States, Singapore, and the United Kingdom. During the economic crisis, significant exposures to troubled corporate borrowers led to a deterioration in the bank's financial health. However, since then, its operating performance stabilized, and the bank has reported consecutive quarterly profits since the end of 2003. Fitch Ratings gave Korea Exchange Bank a 'C' Individual Rating effective on June 17, 2005. Moody's Investors Service gave KEB a 'D' Bank Financial Strength Rating effective on May 9, 2006. * * * South Korean politicians -- led by the main opposition Grand National Party -- have alleged that the Korea Exchange shares were sold cheap to United States-based Lone Star Funds after the Bank's financial status was incorrectly reported. Korea Exchange denied the allegations in March 2006. The Board of Audit and Inspections and the Supreme Public Prosecutors' Office initiated separate investigations into the matter. On June 20, 2006, the BAI determined that Lone Star's acquisition of Korea Exchange was led by management with the approval of the financial supervisory bureau. BAI found that KEB exaggerated its insolvency and falsely recorded the Bank for International Settlements' capital adequacy ratio at 6.16%, which is below the 8% threshold for healthy banks. Prosecutors are investigating whether there were any transgressions of law in the process of selling KEB and whether bribes were given to officials. If prosecutors will find solid evidence that the data was cooked up, it might lead to the nullification of the KEB sale to Lone Star and the arrest of regulators, policymakers and former KEB executives. LG CARD: Net Profit Falls 40% in Second Quarter ----------------------------------------------- LG Card Co.'s second quarter 2006 net profit fell 40%, mainly because of the absence of a large gain it recorded in the second quarter 2005, the Wall Street Journal reports. According to WSJ, LG Card's net profit for the quarter ended June 30, 2006, was KRW287 billion (US$300.5 million), down from the KRW479.79 billion reported a year earlier when it recorded a gain of KRW123.8 billion from selling non-performing loans. The second quarter net profit fell 19% from the first quarter figure. The second quarter 2006 revenue rose 3% to KRW692.79 billion from KRW672.35 billion in the second quarter last year. Kim Jun-Young, an LG Card investor-relations official, explains that the company had set aside more provisions than the previous quarter, despite improving asset quality, due to forecasts that the South Korean economy would not be "as strong" in the first half. WSJ adds that LG Card's delinquency ratio fell to 5.99% in June 2006 from 6.18% a month earlier and 9.69% a year earlier. Its customer numbers rose 6.5% from a year earlier to 10.1 million at the end of June. The huge customer base, which accounts for more than one-fifth of South Korea's 48-million population, has drawn keen interest from several local and foreign retail-finance firms as creditors of LG Card put up a controlling stake for sale. The creditors collectively own 82% of LG Card and plan to sell 51% to 72.1% of the company. A Troubled Company Reporter - Asia Pacific report on July 26, 2006, said that LG Card'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 deadline for the bids is on August 11, 2006, and KDB hopes to select a buyer late that month. 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. * BSI Slips to Lowest Level This Year ------------------------------------- The manufacturing industry's business outlook has plunged to its lowest level this year following a slowdown in the business sector, KBS Global reports. According to a Bank of Korea survey in July 2006 on some 29- hundred domestic firms, the business survey index for July was down six points from June to 77, by far the lowest level this year. The report says that it marked the first time for the figure to slip into the 70's since the index stood at 75 in July of last year. The index has been falling steadily for the five straight months from its tally of 91 in April 2006. A rating of less than a hundred means more companies predict business conditions will worsen rather than improve in the coming six months. A related report by Dong-A Ilbo cites statistics released by the Small and Medium Business Administration, which states that the number of newly established manufacturing businesses fell 26.1% year-on-year from 5,505 to 4,070. The annual number of start-ups in the manufacturing sector has fallen constantly from 12,445 in 2003 to 10,178 in 2004 -- an 11.0% decrease -- and to 9,435 in 2005 -- a 14.8% decrease). Meanwhile, the total annual number of newly established corporations, including those in the manufacturing, service, agriculture, fishery, and construction sectors, has remained constant at around 50,000 since 2003. Accordingly, the share of the manufacturing sector among all of the newly found companies plummeted from 23.6% in 2003 to 15.3% in the first half of this year. It has been analyzed that a lack of profitable business items and excessive regulations were the biggest reasons for the shrinking manufacturing sector, the Dong-A report adds. In a survey conducted by the Korea Federation of Small and Medium Business on 212 venture businesses established since 2002, 45.3% of the respondents said "weakened profitability of manufacturing sector" was the greatest factor discouraging start-ups in the manufacturing sector. Others included "difficulty in securing workforce" (17.9%), "excessive regulations" (16.5%), and "difficulty in raising money" (15.5%). * Korea Sees Recession of Construction Industry in June ---------------------------------------- -------------- Korea's construction industry is having a hard time, the Dong-A Ilbo reports. Korean construction firms received orders worth KRW9.26 trillion in June 2006, 7.7% less than the same period last year. The monthly contraction amount of the construction industry was weaker than the same month last year for four consecutive months since March, the Dong-a report adds. Construction revenue in June 2006 increased to KRW7.23 trillion compared with the figure for June 2005, reflecting the lowest growth rate since February 2006. The Dong-A states that there are even rumors in the curb loan market that some local construction companies face bankruptcy due to their financial difficulties. According to the report, the sluggish construction industry is imposing an adverse effect on economic growth and employment. Quarterly real economic growth in the second quarter, released by the Bank of Korea, was a mere 0.8%, the lowest in five quarters. Private consumption and facility investment increased 0.9% and 2.8% respectively, but investment in the construction sector decreased 3.9%, dragging down overall growth. The Hyundai Research Institute recently released a report arguing that recession of the construction industry would be prolonged. The report estimated that 15,000 jobs vanished in May alone due to this recession. =============== M A L A Y S I A =============== AYER HITAM: Default Amount Tops MYR41 Million --------------------------------------------- As of June 30, 2006, Ayer Hitam Tin Dredging Malaysia Group has a total default in principal sums plus interest of MYR41,339,119. Of the total default amount, MYR27,993,900 is owed by Ayer Hitam's wholly owned subsidiary Motif Harta Sdn Bhd to: * Alliance Bank Malaysia Berhad; * EON Bank Berhad; * Kewangan Bersatu Berhad; and * Malayan Banking Berhad. The remaining MYR13,345,218 is owed by Ayer Hitam's 100% owned subsidiary Pembinaan AHT Sdn Bhd to AmBank Berhad. The principal sum is based on the amount owed to the syndicated lenders as of September 30, 2004, as per judgment dated May 9, 2005. Pursuant to the judgment, interest is chargeable at the rate of 3.5% per annum above base lending rate until full settlement of the amount outstanding. Interest comprises of default interest from October 1, 2004, to June 30, 2006. About Ayer Hitam Headquartered in Kuala Lumpur, Malaysia, Ayer Hitam Tin Dredging Malaysia Berhad -- http://www.ahtin.com.my/-- is involved in property development and the trading of promotional products and services in Malaysia. The Company is also engaged in the trading of uninterrupted power supply equipment and magnetic fuel treatment systems and the provision of investment holding, nominee services, hotel development and management and renovation services. The Company has been incurring losses in the past years and has defaulted on several loan facilities. As of May 31, 2006, Ayer Hitam's payment defaults have reached MYR40 million. The Company has presented a restructuring proposal, which was rejected by the Securities Commission after determining that the Scheme is not a comprehensive proposal capable of resolving all the financial issues faced by the Company. CONSOLIDATED FARMS: Defaults on Over MYR148-Million Loans --------------------------------------------------------- The Consolidated Farms Group has been unable to pay the amount of principal and interest in respect of its credit facilities as of July 31, 2006. The Confarm Group owes a total of MYR148,247,800 to: Creditor Amount Owed -------- ----------- Bank Pertanian Malaysia MYR47,166,900 Bumiputra Commerce Bank Berhad MYR63,546,800 Malayan Banking Berhad MYR24,460,700 AmMerchant Bank Berhad MYR13,073,400 There has been no material development in respect of the Company's plan to regularize its financial position. About Consolidated Farms Headquartered in Kuala Lumpur, Malaysia, Consolidated Farms Bhd -- http://www.confarm.com/-- is engaged in poultry farming which includes operating of breeder farm, production and processing of organic fertilizer, feed milling, and manufacturing and sale of egg trays. Other activities include manufacturing and processing of eggs into pasteurized eggs and de-shelled hard-boiled eggs. The Company is a Practice Note 4 concern currently undergoing a restructuring exercise to address its debt problem. The Company had appointed Deloitte KassimChan Business Services Sdn Bhd as advisor for the restructuring exercise. As of March 31, 2006, Confarm said that it will not be able to settle all its debts in full when they fall due within the next 12 months hence, the Company was unable to provide a solvency declaration. The Company's April 30, 2006, balance sheet showed total liabilities of MYR203,323,000 exceeding total assets of MYR133,822,000, resulting into a stockholders' equity deficit of MYR69,501,000. DATUK KERAMAT: Bourse Halts Trading of Securities ------------------------------------------------- On July 31, 2006, Bursa Malaysia Securities Berhad suspended trading of the listed securities of Datuk Keramat Holdings Berhad for failing to submit for public release the Company's annual audited accounts for the financial year ended Dec. 31, 2005. However, as the Company's listed securities have already been suspended from trading since August 1, 2005, the suspension will continue regardless of the new suspension action. The Bourse also warned that the Company's securities may be delisted in addition to any enforcement action the Bourse may take. 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 in respect of revolving credit facilities granted to the Company. FOREMOST HOLDINGS: Fined and Reprimanded for Breach of Rules ------------------------------------------------------------ On July 31, 2006, Bursa Malaysia Securities Berhad publicly reprimanded and imposed a fine of MYR6,250 on Foremost Holdings Berhad for breach of Listing Requirements. The Company had breached listing rules for failing to furnish its annual audited accounts for the year ended December 31, 2005, to Bursa Securities by the April 30, 2006, deadline. The AAA 2005 was only submitted to the Bourse on May 8, 2006. Moreover, Foremost breached the Listing Requirements for reporting an unaudited loss after taxation and minority interest of MYR7.983 million for the full financial year ended December 31, 2005, in the fourth quarterly report as compared to an audited loss after taxation and minority interest of MYR20.902 million in the AAA 2005. The difference between the Unaudited Results and the Audited Results on the increase of loss after taxation and minority interest of MYR12.919 million represents a 161.8% deviation. Bursa Securities also directs the Company to have its next four quarterly reports reviewed by external auditors before they are disseminated to the public. Bursa Securities cautions the Company on its responsibility to maintain appropriate standards of corporate responsibility and accountability to achieve greater disclosure and transparency to its shareholders and the investing public. About Foremost Holdings Foremost Holdings Berhad manufactures and sells automobile speakers, home audio speakers, general-purpose speakers and speaker wooden cabinets. The Company is also engaged in the trading of auto accessories, investment holdings and the provision of management services. Products are distributed in Malaysia, Singapore, United Kingdom, Italy, Taiwan, the United States, other Asian countries, other European countries and other countries. Foremost was classified as an affected listed issuer under Bursa Malaysia Securities Berhad's Practice Note 17 because it has "insufficient financial position to warrant continued listing". As an affected issuer, the Company is required to draft a plan to regularize its finances to avoid being delisted from the Official List. JIN LIN: To Discuss Restructuring at Meetings --------------------------------------------- Jin Lin Wood Industries Berhad will hold a court-convened meeting of shareholders on August 25, 2006, at 10:00 a.m., to consider the Proposed Scheme of Arrangement with Shareholders in respect of the Company's proposed restructuring scheme. An extraordinary general meeting will also be held on the same date at 10:30 a.m. to discuss and approve matters relating the restructuring proposal. Both meetings will be held at Dewan Berjaya, Bukit KIara Equestrian & Country Resort, Jalan Bukit Kiara, Off Jalan Damansara, 60000 Kuala Lumpur, Malaysia. About Jin Lin Wood Industries Headquartered in Kuala, Lumpur Malaysia, Jin Lin Wood Industries Berhad is engaged in the manufacture and trade of timber and related timber products. The Company is also involved in warehousing, chemical treatment, and investment holding. As of March 31, 2006, the Company's balance sheet showed total assets of MYR68,666,000 and total liabilities of MYR99,706,000 resulting into a shareholders deficit of MYR31,040,000. JOHAN CERAMICS: Still Working to Finalize Regularization Scheme --------------------------------------------------------------- The Troubled Company Reporter - Asia Pacific reported on June 20, 2006, that Johan Ceramics Berhad became an affected listed issuer as it triggered or fulfilled the enhanced prescribed criteria under the Amended Practice Note 17 of Bursa Malaysia Securities Berhad's Listing Requirements. Thus, Johan Ceramics was required to submit a regularization plan to the Securities Commission and to other relevant authorities for approval and implement the Plan within the timeframe stipulated by the approving authority. The report noted that the Company's board of directors was exploring and evaluating various options to formulate the Regularization Plan. In an update, Johan Ceramics discloses that it is still in the process of outlining its financial regularization plan, which once completed will be made available to Bursa Malaysia Securities Berhad. Other than mentioned, there are no significant developments to the Company's plan to regularize its financial condition. About Johan Ceramics Headquartered in Malaysia, Johan Ceramics Berhad principally engages in the manufacture and sale of glazed ceramic wall and floor tiles. The Company's balance sheet as of March 31, 2006, showed accumulated losses of MYR35.5 million in shareholders equity. The Company was classified as an affected listed issuer under the Amended Practice Note 17 category of Bursa Malaysia Securities Berhad's Listing Requirements after its auditors expressed doubt on the Company's ability to continue as a going concern and after its shareholders' equity plunged below the listing requirement. As an affected issuer, the Company is required to formulate and implement a plan to regularize its financial condition. KIG GLASS: Updates on Group's Default Status -------------------------------------------- KIG Glass Industrial Berhad reports that as of June 30, 2006, it owes Bumiputra Commerce Bank Berhad a total of MYR54,041,103 for bankers acceptances, term loans, trust receipts, as well as revolving credit, and letter of credit. On the other hand, KIG Ceramics Industrial Sdn Bhd defaults on: (a) a total of MYR10,496,156 to Bumiputra Commerce; and (b) MYR886,476 as overdraft payment to RHB Bank Berhad. KIG Ceramics also owes Overseas Union Bank Berhad MYR3,905,709, and The Labuan branch of Bumiputra Commerce Bank Limited MYR9,566,973. Meanwhile, United Overseas Bank (Malaysia) Berhad files a wind- up petition against KIG Ceramics, which is set for hearing before the High Court in Kuching on September 7, 2006. The updated figures for KIG's subsidiary Zibo Jiali Glass Industry Co. Ltd. is not available to date because of a voluntary wind-up application against the subsidiary filed with the Court in People's Republic of China. The principal amount Zibo Jiali owes to United Overseas Bank Limited, China, is USD1,400,000. According to the Trouble Company Reporter - Asia Pacific, KIG and its subsidiaries are unable to service the loan repayments to the banks and financial institutions as the Company has ceased operations on May 27, 2005, as well as one of its subsidiaries -- Ziabo Jiali -- on February 15, 2006. The TCR-AP recounts that on May 11, 2006, KIG unveiled its restructuring proposal, which included a debt settlement proposal to resolve the default issue. The Company is in the process of finalizing its restructuring exercise in line with its regularization exercise since the Company is under Practice Note 17 of the Bursa Malaysia Securities Berhad. The Company's board of directors believes that the Group and the Company are insolvent. About KIG Glass Industrial Headquartered in Johor Darul Ta'zim, Malaysia, KIG Glass Industrial Berhad -- http://www.kedaung.com/-- manufactured and sold glassware, glass blocks and carton boxes. The firm's other activities included manufacturing of ceramic roof tiles. Its operations were carried out in Malaysia and China. Due to its inability to pay its debts, the Company ceased operation in May 2005. As of December 31, 2005, the KIG Group's accumulated losses stood at almost MYR300 million. The shareholders' funds of the KIG Group was in deficit of approximately MYR93 million while its total borrowings amounted to approximately MYR104 million. The Company's board of directors has formed the opinion that the Group is insolvent as of March 31, 2006. MALAYSIA AIRLINES: Sees Lower Losses in Second Quarter ------------------------------------------------------ Malaysia Airlines expects to see an improvement in its financial performance after hiking ticket prices, cutting costs and stepping up on restructuring efforts, The Associated Press reports. For the quarter ended June 30, 2006, Malaysia Airlines projects a net loss figure of less than MYR180 million, which is an improvement of a net loss of MYR280.7 million in the same quarter last fiscal year, AP says. According to AP, the Malaysia Airlines has forecast a full-year loss of MYR620 million for fiscal 2006 mainly due to skyrocketing fuel costs. However, the carrier is confident it would reap profits by 2007 under its ongoing three-year business turnaround program. The carrier is scheduled to report the second-quarter earnings later this month, AP adds. About Malaysia Airlines Headquartered in Selangor, Malaysia, Malaysia Airlines -- http://www.malaysiaairlines.com/-- services domestic and international flights. Its global network comprised 32 domestic and 86 international destinations. Of the 86 international destinations, 17 were operated in collaboration with our airline partners. The carrier made a loss after tax of MYR1.3 billion for fiscal year 2005, due to high fuel and operating costs, and unprofitable routes. In late February 2006, it unveiled a radical rescue plan to raise MYR4 billion to stay afloat and return to profitability by 2007. Under the restructuring plan, the airline pledged to cut its budget by 20% across the board, terminate many unprofitable routes, freeze recruitment except for front-line staff, crack down on corruption by encouraging Whistle-blowing and stop corporate sponsorship. PAXELENT CORPORATION: Has Yet to Submit Regularization Plan ----------------------------------------------------------- Paxelent Corporation Berhad is left with five months to submit its financial regularization plan to relevant parties for approval. As of August 1, 2006, the Company says that it is still negotiating with various creditors for the restructuring of its finances. About Paxelent Corporation Paxelent Corporation is engaged in investment holding. The principal activities of the subsidiaries are property investment, provision of information technology solutions, investment holding, marketing and sale of hard disk drive components. The Company is a public limited liability company, incorporated and domiciled in Malaysia, and is listed on the Second Board of Bursa Malaysia Securities Berhad. The Company is actively pursuing various restructuring schemes to address its default issues. These schemes would involve raising funds through partial disposal of assets, potential debts waivers and rescheduling of the debts. SBBS CONSORTIUM: Bourse Gives Public Reprimand and Imposes Fine --------------------------------------------------------------- On July 31, 2006, Bursa Malaysia Securities Berhad publicly reprimanded and imposed a fine on SBBS Consortium Berhad for breaching the Bourse's Listing Requirements. The Company violated the Listing Rules by failing to issue for public release its annual audited accounts for the financial year ended December 31, 2005, by the April 30, 2006 deadline. After taking into consideration various relevant factors including the fact that the Company previously breached the Listing Requirements, the Bourse reprimanded the firm and imposed a fine of MYR1,250 per market day calculated from May 1, 2006, to the date of submission of the AAA 2005. The public reprimand and fine are imposed after taking into consideration various relevant factors including the fact that the Company had previously breached the Listing Requirements. On July 22, 2005, SBBS was publicly reprimanded by Bursa Securities for breach of the Listing Requirements for reporting an unaudited net loss after taxation of MYR378,843 for the financial year ended December 31, 2004, in the fourth quarter report for the financial period ended December 31, 2004, as compared to an audited net loss after taxation of MYR23,950,078 in the annual audited accounts for the financial year ended December 31, 2004. The net loss after taxation reported in the Audited Results showed an increase of MYR23,571,235, or a deviation of 6221.9%, compared to the Unaudited Results. Bursa Securities cautions the Company on its responsibility to maintain appropriate standards of corporate responsibility and accountability to achieve greater disclosure and transparency to its shareholders and the investing public. Trading Suspended On July 31, 2006, Bursa Malaysia Securities Berhad suspended trading of the Company's securities due to its failure to submit its annual audited accounts for the financial year ended December 31, 2005, within the stipulated timeframe. However, as the listed securities of the Company have already been suspended from trading since March 31, 2006, due to a wind- up order made against it, the previous suspension will continue regardless of the recent trading halt action. If the Company fails to issue its outstanding financial reports by October 31, 2006, the Bursa Malaysia may commence delisting procedures in addition to any enforcement action the Bourse may take. 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. SUREMAX GROUP: Posts Lower Revenue, Higher Loss in Third Quarter ---------------------------------------------------------------- On July 31, 2006, Suremax Group Berhad submitted for public release its unaudited financial report for the third quarter ended May 31, 2006. For the quarter under review, the Group registered a revenue figure of MYR12,000, which is lower than the MYR2,785,000 revenue the Company booked in the same quarter last fiscal year. However, turnover for the current quarter has increased marginally from MYR1.82 million in the last quarter to MYR1.83 million for the current quarter. The Group clocked a pre-tax loss of MYR1,410,000 in the quarter ended May 31, 2006, as against a pre-tax loss of MYR1,558,000 in the corresponding quarter in fiscal 2005. For the current year to date, the Group's loss before taxation has increased from MYR1.32 million in the preceding quarter to MYR2.73 million in the current quarter. The Group's accumulated losses as of May 31, 23006, has reached MYR66,835,000. The Company's May 31, 2006 balance sheet revealed total assets of MYR65,469,000 and total liabilities of MYR39,800,000. The Company's board of directors did not recommend any payment of dividend for the current financial quarter ended May 31, 2006. The Company's Third Quarter Report and its accompanying notes are available for free at: http://bankrupt.com/misc/tcrap_suremaxgroup080306.xls http://bankrupt.com/misc/tcrap_suremaxgroupnotes080306.pdf About Suremax Group Headquartered in Kuala Lumpur, Malaysia, Suremax Group Berhad is engaged in property development, construction, trading in construction materials and sub-contracting works. The firm's other activities include the provision of property management services and building construction. The Group is also involved in the manufacture and sale of ready mixed concrete. Suremax Group has suffered losses since 2004 due to sluggish market demand. For the second quarter of the financial year ended August 31, 2006, Suremax booked a pre-tax loss of MYR1.32 million. The Company is also trying to avert a series of winding up actions against its subsidiaries. On May 9, 2006, Suremax was identified as a Practice Note 17 company and was required to regularize its financial condition pursuant to the Bursa Malaysia Securities Berhad's Listing Requirements. TAP RESOURCES: Unit Receives Payment Demand from Hilti ------------------------------------------------------ Hilti (Malaysia) Sdn Bhd asserts a MYR20,000-claim from TAP Resources Berhad's subsidiary company, TAP Construction Sdn Bhd. TAP Construction is required to settle the full amount within 21 days from July 26, 2006. Accordingly, the parties agree to settle at a lump sum of MYR13,000. In return, Hilti's lawyer will withdraw the notice of demand. About TAP Resources TAP Resources Berhad is principally engaged in property development. Its other activities include general contracting; manufacturing and general trading of building materials, construction chemicals, ready mixed concrete and non-baked bricks; installing air-conditioners, process control and switch gear automation; selling of electrical goods; and investment holding. The Group operates wholly in Malaysia. As of April 30, 2006, the Company registered a net loss of MYR3.57 million and a net current deficit of MYR48.56 million. The Company has defaulted in the redemption of the balance of MYR31,734,381 redeemable convertible secured loan stocks. It has also defaulted in the payment of interests, default interests and overdue interests totaling approximately MYR3.1 million. WEMBLEY INDUSTRIES: Wants One More Year to Complete Rehab Scheme ---------------------------------------------------------------- Wembley Industries Holdings Berhad had, on July 3, 2006, submitted to the Securities Commission an application to extend for another year the signing of a supplemental joint venture agreement and completion of the Company's restructuring scheme. The Company has instructed its adviser, Alliance Merchant Bank Berhad, to make a formal application for the extension from July 31, 2006, to July 7, 2007, or the period as advised by Alliance Merchant. The Troubled Company Reporter - Asia Pacific reported on May 4, 2006, that the Securities Commission granted Wembley Industries' wholly owned subsidiary, Plaza Rakyat Sdn Bhd, until July 31, 2006, to sign a supplemental agreement with Dewan Bandaraya in relation to a joint venture agreement, which is part of the Company's restructuring scheme. The restructuring scheme involves a proposed: * capital reduction and consolidation; * debt-restructuring; and * rights issue. A subsequent TCR-AP report noted that Plaza Rakyat and Dewam Bandaraya are still negotiating on the terms and conditions of the supplemental agreement between them. Government ministries and departments are also involved in the discussions. About Wembley Industries Headquartered in Sarawak Malaysia, Wembley Industries Holdings Berhad is a developer of commercial properties and investment holding. Its other activities are the development of the inter- state bus and taxi terminal, the retail podium and the budget hotel. The Company has been placed under the Practice Note 4 category due to its tight cash flow position. On January 7, 2003, Malaysia's Foreign Investment Committee approved the Company's regularization plan. Subsequently, on April 7, 2003, the FIC revised its approval to include the possible participation of Daewoo Corporation, the former turnkey contractor of Plaza Rakyat Project in the Company's Proposed Debt Restructuring. The Company's ability to continue as a going concern hinges on the successful implementation of the Scheme. As of March 31, 2006, the Company's balance sheet revealed total assets of MYR422,729,000 and total liabilities of MYR1,214,178,000, resulting in a MYR791,749,000 stockholders' deficit. The Company's accumulated losses as of March 31, 2006, have reached MYR1,063,555,000. ===================== P H I L I P P I N E S ===================== DEVELOPMENT BANK: Looks to Raise PHP6.7-Billion Tier 1 Issuance --------------------------------------------------------------- Due to favorable market conditions, the Development Bank of the Philippines is considering increasing a scheduled hybrid Tier 1 notes issuance worth PHP6.71 billion, the Philippine Star reveals, citing DBP President Reynaldo David. According to Mr. David, they are evaluating if they could still increase the notes issuance, which is scheduled for next month, since the Bureau of Treasury's offer received a positive response, although they have yet to see by how much the notes would be increased. DBP appointed Deutsche Bank and Barclays to endorse the capital offering, which was approved by the Monetary Board of the Bangko Sentral Ng Pilipinas last June 2006. The Star relates that DBP had issued PHP10 billion worth of Tier 2 notes in January 2006 to improve its capital base. The issuance raised the Bank's capital adequacy ratio to 36%, the highest in the industry. This time, DBP will use the proceeds from the Tier 1 notes issuance to reinforce its capital position and meet capital requirements under revised international accounting standards, and raise funds for priority projects. 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. PHILIPPINE NATIONAL BANK: Bad Loans Comprise 27% of Total Loans --------------------------------------------------------------- Philippine National Bank's non-performing loans accounted for 27% of its total loans as of June 30, 2006, the same level as at March 30, 2006, the Philippine Inquirer relates, citing Xinhua Financial News. In the Bank's statement of condition for the first half of 2006, its non-performing loans amounted to PHP27.8 billion as of end- June, a slight drop from its PHP28.2-bllion NPL level last March. Return on equity was 3.7% for the same period, from 3.3% in the first quarter. The Inquirer states that PNB set aside PHP577.2 million in general provisions and PHP15.7 billion in specific provisions for probable losses on its loans. About Philippine National Bank Philippine National Bank -- http://www.pnb.com.ph/-- is the Philippine's first universal bank established on July 22, 1916. The Bank's core business consists of lending and deposit-taking activities from corporate, middle market and retail customers, as well as various government units. Its other principal activities include bill discounting, fund transfers, remittance servicing, foreign exchange dealings, retail banking, trust services, treasury operations and trade finance. Through its subsidiaries, PNB engages in a number of diversified financial and related businesses such as international merchant banking, investment banking, life/non-life insurance, leasing, financing of small-and-medium-sized industries, and financial advisory services. It introduced innovations such as the bank on wheels, computerized banking, ATM banking, mobile money changing and domestic travelers' checks. Standard and Poor's Ratings Services has given PNB 'B' Short- Term Foreign Issuer Credit and Short-Term Local Issuer Credit Rating, as well as 'B-' Long-Term Foreign Issuer Credit and Long-Term Local Issuer Credit Ratings effective as of April 26, 2006. Moody's Investors Service has assigned a Ba3 rating to PNB's proposed local currency subordinated notes -- Series A and Series B. UNION BANK: H1 Non-Performing Loan Ratio Rises 9.46% ---------------------------------------------------- Union Bank of the Philippines' non-performing loans comprised 9.46% of its total loan portfolio in the first half of 2006, compared with 6.94% in the first quarter this year, the Philippine Inquirer reports, citing Xinhua Financial News Service. According to the Bank, its non-performing loans stood at PHP4.14 billion on March 30, 2006. As of June 30, 2006, its non-performing loans amounted to PHP4.06 billion. Return on equity was pegged at 16.98%. Moreover, the Bank had set aside general provisions worth PHP322.71 million for probable losses on its loans, whereas specific provisions amounted to PHP3.11 billion. About UnionBank Union Bank of the Philippines -- http://www.unionbankph.com/-- offers a wide range of products and services to both corporate and individual clients. Its core businesses are payment services, corporate cash management foreign exchange, capital markets, corporate finance and consumer finance. It is also engaged in investment management, trust banking, insurance brokerage, currency brokerage, private banking, pre-need products marketing, investment banking and financial advisory and real property development and marketing via Union Properties, Inc. Moody's Investors Service gave UnionBank 'Ba3' Senior Unsecured Debt and Long-Term Bank Deposits Ratings effective May 25, 2006. UNION BANK: Net Income Falls 27% to PHP1.1 Billion in June 2006 --------------------------------------------------------------- Union Bank of the Philippines posted a 27% decline in net income for the first half of 2006 to PHP1.1 billion from PHP1.5 billion for the same period last year, the Manila Bulletin states. The Philippine Star reports that, in a disclosure to the Philippine Stock Exchange, Union Bank attributed the earnings drop to expenses related to its acquisition of rival International Exchange Bank as well as falling domestic interest rates, although consumer finance, cash management, and capital markets businesses contributed to income. The Bulletin says that Union Bank had purchased a 98.8% stake in International Exchange Bank on June 5, 2006, in a special block sale through the Stock Exchange. The Bank expects the merger to create the 7th largest private universal bank in the industry with assets close to PHP170 billion and an almost PHP100-billion deposit base. The Bank's non-performing loans cover reached 83% against the industry average of 78% on reserves of PHP140 million for loan losses, the Star relates. Return on average equity stood at 12%, whereas return on average assets was pegged at 2% in the first half this year and total resources increased to PHP108 billion from PHP105 billion last year. Union Bank's net income had increased slightly in 2005 to PHP2.76 billion from PHP2.28 billion the previous year. The Bank aims to be one of the top three universal banks by 2010 on an average annual income growth of up to 30%. About UnionBank Union Bank of the Philippines -- http://www.unionbankph.com/-- offers a wide range of products and services to both corporate and individual clients. Its core businesses are payment services, corporate cash management foreign exchange, capital markets, corporate finance and consumer finance. It is also engaged in investment management, trust banking, insurance brokerage, currency brokerage, private banking, pre-need products marketing, investment banking and financial advisory and real property development and marketing via Union Properties, Inc. Moody's Investors Service gave UnionBank 'Ba3' Senior Unsecured Debt and Long-Term Bank Deposits Ratings effective May 25, 2006. ================= S I N G A P O R E ================= INFORMATICS HOLDINGS: Cuts Losses by 29% in First Quarter FY07 -------------------------------------------------------------- Informatics Holdings Ltd slashed its net losses by 29% or SGD1.15 million in first quarter fiscal year ended 2007, to SGD2.8 million. With the latest quarter's improvement, the Group has managed to cut its net losses in five out of the past six quarters. The Group's loss from operations was down by 34% to SG$2.9 million from SGD4.3 million compared with the same period last year. The operating loss reduction was achieved by a 21.1% reduction in staff costs, fixed asset depreciation and other operating expenses to SGD14.6 million, in spite of a 17% decline in operating revenue to SGD11.7 million. The fall of SGD2.4 million in Group operating revenue was mainly due to the rationalization exercise in the Malaysian operations, disposal of ATS business in November 2005, and poor performance in e-learning business segment. Some of these decreases in revenue were offset by encouraging growth shown in Hong Kong, Singapore and Sri Lanka school operations, as well as the Group's European operations. Mr. Val Ortega, the Group's Acting Chief Executive Officer, says that in spite of the challenging conditions in which the Group continues to operate, its performance during first quarter 2007 had been encouraging. While the tight leash on costs and expenses continues to bear fruits, revenue performance showed further improvement in the key territories of Hong Kong, Singapore and Sri Lanka, at the same time as the validation unit in the United Kingdom has also contributed to the encouraging showing. During this period, fees received in advance (course fee revenue deferred to future periods) increased by SGD0.8 million to SGD19.0 million. The Group's balance sheet reflected a net liability position of SGD17.1 million as at June 30, 2006. However, excluding the deferred course fee revenue, the Group's balance sheet would have shown a net asset position of SGD1.9 million as of June 30, 2006. Consistent with the Group's focus and to better reflect its core business activity, the Company adopted the name Informatics Education Ltd in place of Informatics Holdings Ltd. The name change was approved at its recent Extraordinary General Meeting held on July 31, 2006, and became effective on the same day. The change in name of the Company will provide a clearer identity for the Group with a renewed emphasis on the core business of education and providing a strong foundation to achieve its vision of becoming a global leader in providing quality lifelong learning services for individuals and corporations. Going forward, Mr. Val added that the Group has managed to sustain its improvement in cost control and operational efficiency in first quarter 2007. Efforts will be continued on revenue growth through product development, new market penetration, as well as improvement in financial and operational management control systems. The Board noted that the Group's financial position has improved after the latest rights issue. However, its NTA remains negative, due to current and past losses. It may need to raise additional funds by issuing equity via another rights issue or private placement. The Group may also consider entering into strategic partnerships to enhance its core business, which may entail fresh equity injection into the Company. These efforts may comprise approaching other parties including the Berjaya Companies. 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. INTEGRATED ENVIRONMENTAL: Court to Hear Wind-Up Petition -------------------------------------------------------- On July 17, 2006, Schneider Electric Singapore Pte Ltd filed before the High Court of Singapore a petition to wind up Integrated Environmental Solutions. The wind-up petition will be heard on August 11, 2006, at 11:00 a.m. The Petitioner's solicitor can be reached at: Messrs Axel Chan & Co No. 83 Clemenceau Avenue # 13-02 UE Square Singapore 239920 MAE ENGINEERING: Appoints Financial Officer and Vice President -------------------------------------------------------------- MAE Engineering Ltd has appointed Lim Leong Kiat as the Company's new Chief Financial Officer and Executive Vice President. The appointment will take effect on August 15, 2006. In the past ten years, Mr. Lim held top positions in big firms such as SHC Capital Limited, Cathay Organisation Holdings and Singapore Press Holdings Ltd Group. About MAE Engineering Limited Headquartered in Singapore, MAE Engineering Limited is engaged in the provision of integrated electrical and mechanical engineering services including designing, planning and procurement. These services are categorized into electrical installations, mechanical installations, electrical power supply installations, instrumentation and building automation as well as maintaining electrical and mechanical systems. The Group also offers consulting and specialist services to oceanariums and aquariums. The Group has disposed off its prawn and fish farming as well as edutainment businesses, after suffering accumulated losses of SGD48 million as of September 30, 2005. The Company also suffered a liquidity crunch since September 30, 2005, when its total current liabilities of SGD23,695,000 exceeded its total current assets of SGD5,582,000. As of March 31, 2006, the Company's balance sheet showed SGD7,404,000 in total assets and SGD27,257,000 in total liabilities, resulting in a SGD19,853,000 stockholders' equity deficit. The Company's March 31 balance sheet also revealed strained liquidity with SGD6,346,000 in total current assets available to pay SGD27,200,000 in total current liabilities coming due within the next 12 months. REFCO INC: Chap 7 Trustee Wants Court to Wind Down Refco Trading ---------------------------------------------------------------- Albert Togut, the Court-appointed Chapter 7 trustee for Refco, LLC's estate, seeks the Bankruptcy Court's authority to complete a wind-down and dissolution of Refco Trading Services, LLC's business operations in accordance with Delaware laws. Refco Trading was formed in 2003 when Refco, Inc., acquired United Kingdom-based MacFutures, a day-trading business engaging in commodity futures and options. Refco Trading followed a similar model to MacFutures and became Refco LLC's proprietary trading subsidiary. Most Refco Trading employees traded using accounts funded by Refco LLC, and only a few workers had any customer accounts. Like the Refco Trading proprietary accounts, any third-party customer accounts were settled on a daily basis to the extent that the business day would rarely, if ever, end with Refco Trading having any open trade positions, Scott E. Ratner, Esq., at Togut, Segal & Segal LLP, in New York, relates. Before the Petition Date, Refco Trading had over 100 employees and business operations in Montreal, Canada; Chicago, Illinois; and Miami, Florida. Refco Trading hired employees, trained them using a proprietary training system, and provided an account with which to trade. Most of the employees were paid a flat salary and traded on an account that was settled on a daily basis. The traders also received profit percentages of successful trades as additional remuneration. Consistent with their Acquisition Agreement, Man Financial, Inc., has hired most or all of Refco Trading's former employees. Refco Trading ceased all trading operations after the Petition Date. Refco Trading currently holds approximately $1,600,000 in cash. The company's liabilities are uncertain, but Mr. Togut believes that there may be intercompany obligations. Refco Trading participated in an intercompany cash management system that paid the company's obligations to outside sources and repaid the obligations with intercompany receivables. Mr. Togut also believes that there may be liabilities to Canadian taxing authorities. Specifically, Mr. Togut proposes to direct certain actions as are necessary and appropriate to Refco Trading's dissolution and wind-down, including: (a) preparation of accounting reports, statements of receipts and disbursements and income statements; (b) preparation, signing, and filing of any tax returns in the United States or Canada; (c) appearances before any governmental authority as may be necessary to effectuate a legal wind-down; (d) adjudication and resolution of any claims asserted against Refco Trading and authorization for payment of any allowed claims from Refco Trading's assets to the extent required by law; and (e) performing any other related tasks as may be necessary to effectuate a proper and legal wind-down and dissolution. Mr. Togut also seeks to pay, without further Court order, all necessary costs and expenses incurred in connection with the wind-down, provided that any payments will be made from Refco Trading's assets, and not those of Refco LLC's estate. Furthermore, Mr. Togut asks Judge Drain for qualified immunity from personal liability for his actions in furtherance of Refco Trading's wind-down. According to Mr. Togut, Refco LLC's ownership interest in Refco Trading is an asset of its Chapter 7 estate. To the extent that Refco Trading is solvent, its remaining assets will inure to Refco LLC's benefit. Therefore, Refco Trading's wind-down and dissolution pursuant to Delaware laws is consistent with Mr. Togut's duty to "collect and reduce to money the property of the estate" under Section 704(a)(1) of the Bankruptcy Code. Considering that the scope of Refco Trading's assets and liabilities are unknown, Mr. Togut insists that he must wind down Refco Trading to determine whether there are any residual assets that will flow to Refco LLC's estate. About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal United States and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for Chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its Chapter 11 cases. Refco LLC, an affiliate, filed for Chapter 7 protection on Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a regulated commodity futures company that has businesses in the United States, London, Asia and Canada. Refco, LLC, filed for bankruptcy protection in order to consummate the sale of substantially all of its assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc. Albert Togut, the Chapter 7 trustee, is represented by Togut, Segal & Segal LLP. On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital Markets Ltd.'s Chapter 11 trustee. Mr. Kirschner is represented by Bingham McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda. Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through 06-11262). REFCO INC: Files June 2006 Statement of Cash Disbursements ---------------------------------------------------------- In lieu of comprehensive financial statements, Refco, Inc., and its debtor-affiliates delivered to the Bankruptcy Court a monthly statement of their cash receipts and disbursements for the period from June 1 to 30, 2006. Peter F. James, controller of Refco, reports that the company holds a beginning cash balance of US$1,357,526,000 during the reporting period. Refco received US$36,191,000 and disbursed US$21,584,000 in cash. Refco's ending cash balance totals US$1,372,133,000. As paying agent for certain non-debtors and Refco, LLC, the Debtors disbursed approximately US$3,200,000. Refco also paid $662,000 in gross wages, of which US$354,000 was paid on behalf of and reimbursed by the Non-Debtors and Refco LLC. Mr. James discloses that Refco withheld US$204,000 in employee payroll taxes, of which US$30,000 was remitted to a third party vendor. Mr. James states that all taxes due and owing, as well as tax returns, have been paid and filed for the current period. Refco paid US$7,252,000 for professional fees for June, and US$18,073,000 since the Petition Date. The Debtors did not pay professional fees on Refco LLC's behalf. Mr. James says all insurance policies are fully paid for the current period, including amounts owed for workers' compensation and disability insurance. A full-text copy of Refco's June 2006 Monthly Statement is available at no charge at: http://researcharchives.com/t/s?e19 About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal United States and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for Chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its Chapter 11 cases. Refco LLC, an affiliate, filed for Chapter 7 protection on Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a regulated commodity futures company that has businesses in the United States, London, Asia and Canada. Refco, LLC, filed for bankruptcy protection in order to consummate the sale of substantially all of its assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc. Albert Togut, the Chapter 7 trustee, is represented by Togut, Segal & Segal LLP. On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital Markets Ltd.'s Chapter 11 trustee. Mr. Kirschner is represented by Bingham McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda. Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through 06-11262). SEE HUP SENG: Welcomes New Executive Director & Chief Executive --------------------------------------------------------------- See Hup Seng Limited has appointed Yap Sew as the Company's new executive director and chief executive officer. The appointment will take effect on August 5, 2006. Mr. Yew will be responsible for the overall management and the day-to-day operations of the Group. Before joining See Hup Seng, Mr. Yap was managing director of Speedo Corrosion Control Pte Ltd. He had been with Speedo Corrosion Pte Ltd from 1983 to 2006. Speedo Corrosion Pte Ltd engages in the principal business of contractors for and consultants of corrosion control services for the marine and offshore industries. Mr. Yap and his spouse hold 12,000,000 and 2,000,000 ordinary shares respectively in See Hup Seng. 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. SNP RETAIL: Liquidator to Present Wind-Up Report on August 28 ------------------------------------------------------------- The members and creditors of SNP Retail Pte Ltd will hold a final meeting on August 28, 2006, at 10:00 a.m. At the meeting, creditors will receive Liquidator Chia Soo Hein's account on the liquidation proceedings and the manner of property disposal. The Liquidator can be reached at: Chia Soo Hien c/o BDO Raffles 5 Shenton Way # 07-01 UIC Building Singapore 068808 UNITY BUILDER: Creditors' Proofs of Debt Due on August 11 --------------------------------------------------------- The creditors of Unity Builder Pte Limited are required to prove their debts by August 11, 2006. Failure to comply with the requirement will exclude any creditor from sharing in any distribution the Company will make. The assistant official receiver can be reached at: Moey Weng Foo The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118 =============== T H A I L A N D =============== THAI PETROCHEMICAL: Units Delay Financial Report Submission ----------------------------------------------------------- Thai Petrochemical Industry PLC President Piti Yimprasert says that management teams at five subsidiaries are refusing to hand over their financial results, putting the Company and other subsidiaries shares at risk of being suspended from trading, The Nation reports. Companies listed with the SET are required to submit non- consolidated and consolidated results within a specified time frame, or risk having their share trading suspended with the posting of an "SP" sign, The Nation relates. Thus, according to The Nation, Thai Petrochem had asked the Stock Exchange of Thailand's approval to submit only a non- consolidated financial result for the second quarter of 2006. Mr. Yimprasert told The Nation that the consolidated results should be supplied to the stock exchange after Thai Petrochem completes the registration with the Commerce Ministry of new boards at the five subsidiaries. "We are taking over the five subsidiaries' boards of directors as soon as possible," Mr. Yimprasert said. "So far, we have been unable to do anything -- even to call for a shareholders' meeting to change the directors." In order to call for a shareholders' meeting, consent of at least two directors is required, The Nation notes. However, Mr. Yimprasert relates that they have two directors representing PTT Plc and its partners, who took over a majority stake in Thai Petrochem, at only two of the subsidiaries and only one director at the remaining three. Thai Petrochem exercised its legal right as the major shareholder of the five companies to call for a meeting on July 5. A resolution to revamp the subsidiaries' boards has been presented to the Commerce Ministry, but the registration of the new boards is not yet complete. "If we have problems with the registration of the new boards, within three or four months we will stop supplying raw materials to the subsidiaries," Mr. Yimprasert said. Thai Petrochem is ready to terminate the supply within three or four months, after hearing from the Commerce Ministry. "We won't wait for one or two years. We can handle this immediately, but so far we have done nothing because we don't want to lose the clients," Mr. Yimprasert added. Thai Petrochem had earlier warned TPI Oil Co., a wholly owned subsidiary which owes its parent firm an aggregate of THB1.94 billion, to pay its debts or Thai Petrochem would terminate its oil supply. * * * Headquartered in Bangkok, Thailand, Thai Petrochemical Industry Plc -- http://www.tpigroup.co.th/-- is the leading integrated petrochemical company in the country, producing naphtha, liquefied petroleum gas, and lubricant oils. The Thai Government was reorganizing the bankrupt company, which had defaulted on $2.7 billion in loans, until PTT Plc, Thailand's largest oil and gas group, and Thailand's biggest company, purchased a 31.5% stake in Thai Petrochemical late in 2005. In December 2005, PTT and three other state agencies completed payment for a 61.5% stake on in Thai Petrochemical. The money was used to pay for a bulk of the Company's defaulted loans. The Company has since been trying to get out of restructuring. The Troubled Company Reporter - Asia Pacific reported on April 28, 2006, that the Central Bankruptcy Court of Thailand approved Thai Petrochemical's exit from business rehabilitation. The Court ruled that the business rehabilitation plan of Thai Petrochemical and its six subsidiaries -- Thai ABS Co; TPI Aromatics Plc; TPI Oil Co; TPI Polyol Co; Thai Polyurethane Industry Plc; and TPI Energy Co. -- be terminated. * Large Companies With Insolvent Balance Sheets ----------------------------------------------- Total Total Shareholders Assets Equity Company Ticker ($MM) ($MM) ------ ------ ------------ ------ AUSTRALIA Acma Engineering & Const. Group Limited ACX 21.39 -2.24 Allstate Explorations NL ALX 12.65 -51.62 Austar United Communications Ltd. AUN 231.54 -52.58 Global Wine Ventures Limited GWV 22.04 -0.84 Hutchison Telecommunications (Aust) Ltd. HTA 1696.65 -786.31 Indophil Resources NL IRN 37.79 -69.96 Intellect Holdings Limited IHG 23.98 -11.13 Namberry Limited NMB 15.12 -4.26 Orbital Corporation Limited OEC 14.01 -4.86 RMG Limited RMG 22.33 -2.16 Stadium Australia Group SAX 135.23 -41.84 Tooth & Company Limited TTH 99.25 -74.39 Tourism, Hotels & Leisure Ltd. TLC 15.76 -0.66 CHINA AND HONG KONG Artel Solutions Group Holdings Limited 931 29.19 -18.65 Asia Telemedia Limited 376 10.89 -5.50 Anhui Feicai Vehicle Co. Ltd. 887 129.80 -7.00 Bestway International 718 25.00 -0.67 Chang Ling Group 561 77.48 -76.83 Chengdu Book - A 600083 21.50 -3.07 China Liaoning International Cooperation Holdings Ltd. 638 25.79 -43.45 China Kejian Co. Ltd. 35 54.71 -179.23 Datasys Technology Holdings 8057 14.10 -2.07 Eforce Holdings Limited 943 10.31 -0.51 Everpride Biopharmaceutical Company Limited 8019 10.16 -2.16 Fujian Changyuan Investment Holdings Limited 592 31.36 -54.04 Gold-Face Holdings Limited 396 40.60 -63.11 Guangdong Meiya Group Company Ltd. 529 107.16 -49.54 Guangdong Sunrise Group Company Ltd-A 30 35.98 -182.94 Guangdong Sunrise Group Co. Ltd-B 200030 35.98 -182.94 Guangxi Wuzhou Zhongheng Group Co Ltd. 557 62.19 -115.50 Hainan Dadonghai Tourism 613 19.74 -5.81 Hainan Dadongh-B 200613 19.74 -5.81 Hainan Overseas Chinese Investment Co. Ltd. 600759 32.70 -15.28 Hans Energy Company Limited 554 94.75 -10.76 Heilong Jiang Long Di Co. Ltd. 832 134.62 -61.22 Heilongjiang Sun & Field Science & Tech. 620 29.96 -49.18 Heilongjiang Black Dragon Co. Ltd. 600187 121.30 -74.45 Hualing Holdings Limited 382 242.26 -28.15 Huda Technology & Education Development Co. Ltd. 600892 17.29 -0.19 Hunan Anplas Co., Ltd. 156 94.17 -65.04 Hunan GuoGuang Ceramic Co., Ltd. 600286 87.44 -68.55 Innovo Leisure Recreation Holdings Ltd. 703 13.68 -2.01 Jiangsu Chinese.com Co. Ltd. 805 15.86 -34.56 Jiangxi Paper Industry Co. Ltd 600053 19.58 -12.80 Loulan Holdings Limited 8039 13.01 -1.04 Magnum International Holdings Limited 305 10.35 -5.83 Mindong Electric Group Co., Ltd. 536 21.63 -1.50 New City (Beijing) Development Limited 456 151.61 -19.15 New World Mobile Holdings Ltd 862 215.47 -126.57 Orient Power Holdings Ltd. 615 176.86 -64.20 Plus Holdings Ltd 1013 24.00 -3.15 Prosperity International Holdings (HK) Limited 8139 10.73 -2.45 Shandong Jintai Group Co. Ltd. 600385 19.58 -12.18 Shanghai Xingye Housing Company Ltd 600603 14.90 -72.98 Shenyang Hejin Holding Company Ltd. 633 83.18 -20.87 Shenz China Bi-A 17 39.13 -224.64 Shenz China Bi-B 200017 39.13 -224.64 Shenzhen Dawncom Business Tech And Service Co., Ltd 863 79.84 -37.30 Shenzhen Shenxin Taifeng Group Co. Ltd. 34 95.27 -44.65 Shenzen Techo Telecom Co., Ltd. 555 14.84 -6.25 Sichuan Changjiang Packaging Holding Co. Ltd. 600137 13.11 -72.76 Sichuan Topsoft Investment Company Limited 583 113.12 -148.61 SMI Publishing Group Ltd. 8010 10.48 -7.83 Songliao Automobile Co. Ltd. 600715 49.56 -3.76 Sun's Group Manufacturing Company Limited 988 103.02 -72.80 Taiyuan Tianlong Group Co. Ltd 600234 13.47 -87.63 Theme International Holdings Limited 990 22.46 -0.77 UDL Holdings Limited 620 12.48 -7.15 Wealthmark International (Holdings) Limited 39 11.32 -2.43 Winowner Group Co. Ltd. 600681 38.03 -62.88 Xinjiang Hops Co. Ltd 600090 101.34 -135.99 Yantai Hualian Development Group Co. Ltd. 600766 59.99 -7.66 Yueyang Hengli Air-Cooling Equipment Inc. 622 49.89 -17.71 Zarva Technology Co. Ltd. 688 101.76 -102.01 INDIA PT Dharmala Intiland DILD 197.91 -6.62 INDONESIA Ades Waters Indonesia Tbk ADES 21.35 -8.93 Bukaka Teknik Utama Tbk BUKK 44.45 -107.00 Hotel Sahid Jaya SHID 71.05 -4.26 Jakarta Kyoei Ste JKSW 44.72 -38.57 Mulialand Tbk MLND 160.45 -19.82 Multibreeder Adirama Indonesia MBAI 64.54 -2.31 Pakuwon Jati Tbk PWON 188.41 -50.78 Panca Wiratama Sakti Tbk PWSI 39.72 -18.82 PT Steady Safe SAFE 19.65 -2.43 PT Toba Pulp Lestrari Tbk INRU 403.58 -198.86 PT Unitex Tbk UNTX 29.08 -5.87 PT Voksel Electric Tbk VOKS 44.01 -11.74 PT Wicaksana Overseas International Tbk WICO 84.36 -32.88 Sekar Bumi Tbk SKBM 23.07 -41.95 Steady Safe Tbk SAFE 19.65 -2.43 Suba Indah Tbk SUBA 85.17 -9.18 Surya Dumai Industri Tbk SUDI 105.06 -30.49 Unitex Tbk UNTX 29.08 -5.87 JAPAN Hanaten Co., Ltd. 9870 167.79 -1.63 Mamiya-OP Co., Ltd. 7991 152.37 -67.11 Montecarlo Co. Ltd. 7569 66.29 -3.05 Nihon Seimitsu Sokki Co., Ltd. 7771 23.82 -1.10 Sumiya Co., Ltd. 9939 89.32 -11.57 Tenryu Lumber Co., Ltd. 7904 187.75 -44.48 Tokai Aluminum Foil Co., Ltd. 5756 106.49 -12.55 Yakinikuya Sakai Co., Ltd. 7622 79.44 -11.14 MALAYSIA Antah Holdings Bhd ANT 241.10 -39.36 CHG Industries Bhd CHG 25.95 -41.38 Cygal Bhd CYG 58.47 -69.79 Comsa Farms Bhd CFB 63.60 -5.00 Consolidated Farms Berhad CFARM 36.32 -17.21 Emico Holdings Bhd EMI 42.56 -1.92 Jin Lin Wood Industries Berhad JLW 21.68 -1.74 Kig Glass Industrial Berhad KIG 15.76 -24.61 Lankhorst Bhd LKHT 25.91 -28.35 Mentiga Corporation Berhad MENT 22.13 -18.25 Metroplex Bhd MEX 323.51 -49.28 Mycom Bhd MYC 227.68 -114.64 Lityan Holdings Bhd LIT 22.22 -19.11 Olympia Industries Bhd OLYM 255.84 -227.85 Panglobal Bhd PGL 189.92 -50.36 Park May Bhd PMY 11.04 -13.58 PSC Industries Bhd PSC 62.80 -116.18 Setegap Berhad STG 19.92 -26.88 Tru-Tech Holdings Berhad TRU 15.86 -16.71 Wembley Industries Holdings Bhd WMY 111.72 -204.61 PHILIPPINES APC Group Inc. APC 67.04 -163.14 Atlas Consolidated Mining and Development Corp. AT 33.59 -57.17 Cyber Bay Corporation CYBR 11.54 -58.06 East Asia Power Resources Corp. PWR 92.55 -64.61 Fil-Estate Corporation FC 33.30 -5.80 Filsyn Corporation FYN 19.20 -8.83 Filsyn Corporation FYNB 19.20 -8.83 Global Equities Inc. GEI 24.18 -1.81 Gotesco Land, Inc. GO 17.34 -9.59 Gotesco Land, Inc. GOB 17.34 -9.59 Prime Media Holdings Inc. PRIM 11.12 -15.52 Prime Orion Philippines Inc. POPI 98.36 -74.34 Swift Foods Inc. SFI 26.95 -8.23 Unioil Resources & Holdings Company Inc. UNI 10.64 -9.86 United Paragon Mining Corp. UPM 21.19 -21.52 Universal Rightfield Property Holdings Inc. UP 45.12 -13.48 Uniwide Holdings Inc. UW 61.45 -30.31 Victorias Milling Company Inc. VMC 127.83 -32.21 Vitarich Corporation VITA 75.04 -4.27 SINGAPORE ADV Systems Auto ASA 14.32 -8.54 China Aviation Oil (Singapore) Corporation CAO 211.96 -390.07 Compact Metal Industries Ltd. CMI 54.36 -25.64 Digiland Intl. DIGI 31.32 -11.94 Falmac Limited FAL 10.90 -0.73 Gul Technologies Singapore Limited GUL 152.80 -27.74 Informatics Holdings Ltd INFO 22.30 -9.14 L&M Group of Companies LNM 56.91 -10.59 Liang Huat Aluminium Ltd. LHA 19.30 -76.43 Lindeteves-Jacoberg Limited LJ 225.52 -53.23 LKN-Primefield Limited LKN 150.70 -12.72 Mae Engineering Ltd MAE 11.42 -7.79 PDC Corporation Limited PDC 0.72 -12.07 Pacific Century Regional PAC 1381.26 -107.11 See Hup Seng Ltd. SHS 17.36 -0.09 SOUTH KOREA C & C Enterprise Co. Ltd. 38420 28.05 -14.50 Cenicone Co. Ltd. 56060 36.82 -1.46 Cheil Entech Co. Ltd. 53330 37.25 -0.31 Dewell Elecom Inc. 32590 10.93 -6.92 Everex Inc. 47600 23.15 -5.10 EG Greentech Co. 55250 186.00 -1.50 EG Semicon Co. Ltd. 38720 166.70 -12.34 Inno Metal Inc. 70080 25.61 1.41 KP&L Company Limited 9810 15.03 -3.81 Radix Co. Ltd. 16160 53.78 -17.69 Quality & Tech 15260 32.33 -1.14 Shinil Industrial Co., Ltd. 2700 41.51 -3.44 Tong Yang Major 1520 2332.81 -86.95 THAILAND Bangkok Rubber PCL BRC 70.19 -56.98 Bangkok Rubber PCL BRC/F 70.19 -56.98 Central Paper Industry PCL CPICO 40.41 -37.02 Central Paper Industry PCL CPICO/F 40.41 -37.02 Circuit Electronic Industries PCL CIRKIT 20.37 -64.80 Circuit Electronic Industries PCL CIRKIT/F 20.37 -64.80 Daidomon Group Pcl DAIDO 12.92 -8.51 Daidomon Group Pcl DAIDO/F 12.92 -8.51 Datamat PCL DTM 17.55 -1.72 Datamat PCL DTM/F 17.55 -1.72 Diana Department Store Pcl DIANA 12.71 -1.71 Diana Department Store Pcl DIANA/F 12.71 -1.71 Everland Public Company Ltd EVER 56.71 -311.47 Everland Public Company Ltd EVER/F 39.12 -12.05 Hantex PCl HTX 7.51 -7.88 Hantex PCl HTX/F 7.51 -7.88 Kuang Pei San Food Products Public Co. POMPUI 12.51 -9.87 Sahamitr Pressure Container Public Co. Ltd. SMPC 20.77 -28.13 Sri Thai Food & Beverage Public Company Ltd SRI 18.29 -43.37 Sri Thai Food -F SRI/F 18.29 -43.37 Tanayong PCL TYONG 178.27 -734.30 Tanayong PCL -F TYONG/F 178.27 -734.30 Thai-Denmark PCL DMARK 21.37 -18.88 Thai-Denmark -F DMARK/F 21.37 -18.88 Thai-Wah PCL TWC 91.56 -41.24 Thai-Wah PCL -F TWC/F 91.56 -41.24 ********* 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 ***