/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/060808.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, August 8, 2006, Vol. 9, No. 156 Headlines A U S T R A L I A & N E W Z E A L A N D 1ST STATE HOME: R. Ferrantino Pleads Guilty to 10 ASIC Charges 35 AYR STREET: Court to Hear CIR's Liquidation Bid on August 24 591 TOORAK: Enters Wind-Up Proceedings AIR-CONDITIONING EXPERTS: Liquidator to Present Wind-Up Report AJL NOMINEES: Placed Under Voluntary Wind-Up AMS INSULATION: Liquidation Process Commenced ARABELLA PTY: Court Orders Wind-Up BMED NOMINEES: Appoints Peter Robert Vince as Liquidator BABY WORLD: Appoints Burgess as Liquidator BREMORE ENGINEERING: To Declare Dividend on August 23 BUMAR PTY: Members Decide to Shut Down Operations CASTLE BROS: Court to Hear Liquidation Bid on Sept. 28 CDSCC SUPERANNUATION: Placed Under Members' Voluntary Wind-Up CHADWICK PLACE: Members Agree to Liquidate Business CHELDARLIN PTY: Members Pass Resolution to Wind Up Firm CHROME STILL: To Declare First and Final Dividend CONTRACT CONTROL: Creditors Appoint McLellan as Liquidator D. H. BUS: Enters Wind-Up Proceedings D.J. BARNES: Members Resolve to Close Business FAIRFIELD INVESTMENTS: Appoints Official Liquidators G.T. COLLECTIVE: Members Agree to Shut Down Business HCOA INTERNATIONAL: Placed Under Voluntary Liquidation HIH INSURANCE: M. Fedora Faces Court for Six Criminal Charges ION LIMITED: Shareholders Wait for SOG Judgment on Creditor Debt ISI NOMINEES: Names Joint and Several Liquidators JANSEEN & DOMETT: Faces Liquidation Proceedings MALCOLM SWAIN: Liquidators to Present Wind-Up Report MULTIPLEX GROUP: Takes Wembley Disputes for Adjudication MWM MANAGEMENT: Members Pass Resolution to Wind Up Firm NATURAL NUTRITION: Appoints James Downey as Liquidator PARKLANDS INVESTMENTS: Creditors Must Prove Debt by August 31 PENDEAN PTY: Creditors' Proofs of Claim Due on August 10 PROACTIVE WORKWEAR: Court to Hear Liquidation Bid on Oct. 19 PROVINCIAL FINANCE: Receivers Provide Interim Statutory Report Q & L BUS: Creditors Appoint Robert Whitton as Liquidator RULA PTY: Members Agree to Wind Up Firm SHARDEL PTY: Placed Under Members' Voluntary Liquidation SIGNATURE BEVERAGES: Enters Wind-Up Proceedings SIMONETTA IMPORTS: Members Opt for Voluntary Liquidation SOY FRANCHISE: Members Appoint Steven Nicols as Liquidator STEWART MCKENZIE: Members Decide to Close Business SWOOVE PTY: Members Pass Resolution to Wind Up Operations TELEON HOLDINGS: Undergoes Voluntary Liquidation TE MAIRE: Court Hears Liquidation Petition TEMPERAIR SERVICES: Creditors Decide to Close Business TP COMMUNICATIONS: Creditors' Proofs of Debt Due on August 18 TRANSAG MANUFACTURING: Court Hears Corus' Liquidation Bid TRIDET PTY: Members and Creditors to Receive Wind-Up Report ULTRA LITE: Court Appoints Official Liquidator VIVIANNES COLLECTION: To Declare Second Dividend on August 11 V & S ENTERPRISES: Liquidation Bid Hearing Set on Aug. 17 WELLINGTON PTY: Inability to Pay Debts Prompts Wind-Up WELLROOFED PTY: Members Agree to Voluntarily Liquidate Business WENTLOCK PTY: Appoints Joint and Several Liquidators Y.M.M YOUL: Enters Wind-Up Proceedings * Trans-Tasman Merger Protocol Agreed C H I N A & H O N G K O N G AGRICULTURAL BANK: To Invest CNY467 Billion in State Program NUCLEAR CONSTRUCTION: Creditors to Convene on August 15 SINO UNICORN: Creditors Must Prove Debts by September 4 TAGO (H.K.) INTERNATIONAL: Court to Hear Wind-Up Bid on Sept. 6 TETRA PAK: Creditors' Proofs of Claim due on September 5 TKF ARCHITECTS: Wind-Up Petition Hearing Slated for Sept. 20 TKR FINANCE: Creditors' Meeting Set on August 15 TI AUTOMOTIVE: Wins Contracts from Three Major Automakers VITELIC (HONG KONG): First Meetings Set on August 15 WAI SUN CONSTRUCTION: Faces Wind-Up Proceedings I N D I A CHALLAKERE URBAN: License Cancelled Due to Insolvency CITY UNION BANK: Fitch Affirms D/E Individual Rating SHRIRAM SAHAKARI: Awaits Official Liquidator I N D O N E S I A MEDIA NUSANTARA: Puts Up Bond Issue Worth IDR2 Trillion J A P A N JAPAN AIRLINES: Trims 1st Quarter Loss by 30% to JPY27 Billion K O R E A DONG-AH CONSTRUCTION: Preferred Bidder To Be Known in September KANA SOFTWARE: Posts US$1-Million Net Loss in First Quarter 2006 LG TELECOM: To Halt Handset Subsidy Hike NCSOFT CORP: Posts Worst-Ever Quarterly Results NETIAN: Internet Portal Shuts Down After Seven Years SANDISK CORP: Posts US$96 Million Second Quarter 2006 Net Income SANDISK CORP: Acquiring msystems in All-Stock Deal SK CORP.: Partners With LG Corp. in Kazakhstan Project M A L A Y S I A ALLIANCE MERCHANT (ASING): Members Opt for Wind-Up ALLIANCE MERCHANT (TEMPATAN): Commences Wind-Up Process ALLIANCE MERCHANT SECURITIES: Placed Under Voluntary Wind-Up ANTAH HOLDINGS: Court Adjourns Hearing of ECK Case to October 2 ANTAH HOLDINGS: Judge Rejects Azam's Injunction Request ANTAH HOLDINGS: HSBC Withdraws Writ of Summons EKRAN BERHAD: Faces Wind-Up Proceedings KRAMAT TIN: Scheme of Arrangement Awaits Court's Approval MALAYSIA AIRLINES: Wins One Suit Against Vantage; Loses Two METROPLEX BERHAD: Has Yet to Submit Restructuring Proposal METROPLEX BERHAD: Deadline to Meet SPA Conditions Extended PAXELENT CORPORATION: Prepares to File Defense Against Writ PROTON HOLDINGS: Creates System to Prevent Management Issues ROTHPUTRA VENTURE MANAGEMENT: Initiates Voluntary Wind-Up ROTHPUTRA VENTURES: Enters Voluntary Wind-Up Proceedings SATERAS RESOURCES: Fails to Submit 2006 Financial Report * Fitch Says More Consolidation Likely in Malaysian Banking P H I L I P P I N E S BENPRES HOLDINGS: Sells Off Minority Stake in Unit LEPANTO CONSOLIDATED: To Spend PHP600 Million to Develop Mine MANILA ELECTRIC: To Agree with Napocor on Customer Choice Deal PHILIPPINE NATIONAL BANK: Monetary Board OKs Capital Notes Issue PHILIPPINE NATIONAL BANK: SC Orders PHP226-Mil LOC Remittance S I N G A P O R E ADVANCED SYSTEMS: Auditor Raises Significant Doubt AVAGO TECHNOLOGIES: Posts US$380M Net Revenue for Second Quarter CHINA AVIATION: Closes September 2006 Fuel Tender MAE ENGINEERING: Receives 361,849,270 Valid Acceptances MIYAMA FOOD: Court to Hear Wind-Up Petition on August 18 NUANSA LEISURE: Creditors' Proofs of Claim Due on August 28 REFCO INC: Chapter 7 Trustee May Reimburse US$749,579 to Group REFCO INC: Court Considers Exclusive Period Requests on Sept. 12 REFCO INC: Seeks Approval of Debt Settlement Stipulation TIONG POLESTAR: Creditors' Proofs of Claims Due on August 18 VANGUARD REALTY: To Pay Dividend to Unsecured Creditors T H A I L A N D KRUNG THAI: To Reveal Business Plan 2nd Half on August 27 KRUNG THAI: Raises Lending and Deposit Interest Rates TONGKAH HARBOUR: Posts THB23-Mil Net Loss in 2006 First Quarter * BOND PRICING: For the Week 7 August to 11 August 2006 - - - - - - - - ============================================ A U S T R A L I A & N E W Z E A L A N D ============================================ 1ST STATE HOME: R. Ferrantino Pleads Guilty to 10 ASIC Charges -------------------------------------------------------------- Rocco Ferrantino of the Gold Coast in Queensland has pleaded guilty before the Southport District Court to 10 charges brought against him by the Australian Securities and Investments Commission. As reported in the Troubled Company Reporter - Asia Pacific on March 29, 2005, Mr. Ferrantino appeared in the Southport Magistrates Court where he was committed to stand trial on 25 charges laid by the ASIC. According to the TCR-AP report, ASIC alleged that between February 1998 and May 2001, Mr. Ferrantino made false or misleading statements to induce superannuants and the administrators and trustees of various superannuation funds to rollover preserved benefits into 1st State Superannuation, a superannuation fund connected to 1st State Home Loans Pty Ltd. The TCR-AP noted that under Commonwealth legislation, the preserved component of superannuation cannot be accessed by a superannuant until retirement after age 55 or when certain other limited criteria prescribed by the legislation are met. Mr. Ferrantino is a former employee of 1st State Home Loans Pty Ltd. He pleaded guilty to dishonestly inducing holders of superannuation benefits to rollover their preserved superannuation benefits into 1st State and causing detriment to clients who had sought his assistance in relation to the purchase of a house. Mr. Ferrantino will reappear in the Southport District Court for sentencing on a date yet to be fixed. The Commonwealth Director of Public Prosecutions is prosecuting the matter, the ASIC notes. * * * The TCR-AP previously reported that the criminal charges against Mr. Ferrantino follow successful civil action taken by ASIC in February 2003 where the Supreme Court of Queensland appointed liquidators to 1st State Home Loans Pty Ltd and the property of related companies, Aynat Gold Nominees Pty Ltd, Ferndune Pty Ltd, United Project Developments Pty Ltd, and Favstor Pty Ltd. The Court's Orders were based on evidence from a receivers' report that 95 investors had approximately AU$1.4 million of their funds released to 1st State Home Loans Pty Ltd. 35 AYR STREET: Court to Hear CIR's Liquidation Bid on August 24 --------------------------------------------------------------- On May 9, 2006, the Commissioner of Inland Revenue filed before the High Court of Auckland a liquidation petition against 35 Ayr Street Ltd. The Court will hear the petition on August 24, 2006, at 10:45 a.m. The solicitor for the plaintiff can be reached at: Jonathan Ridling Solicitor of the Plaintiff Auckland Service Centre 17 Putney Way (P.O. Box 76-198) Manukau City, New Zealand Telephone: (09) 985 7227 591 TOORAK: Enters Wind-Up Proceedings -------------------------------------- On July 19, 2006, the members of 591 Toorak Road Pty Ltd passed a written resolution to voluntarily wind up the Company's operations and appoint John Georgakis as liquidator. The Liquidator can be reached at: John Georgakis Level 26, 8 Exhibition Street Melbourne, Victoria 3000 Australia Telephone:(03) 9288 8000 AIR-CONDITIONING EXPERTS: Liquidator to Present Wind-Up Report -------------------------------------------------------------- Members and creditors of The Air-Conditioning Experts Pty Ltd will hold a combined final and annual general meeting on August 21, 2006, at 10:00 a.m. At the meeting, the members and creditors will be asked to: -- receive Liquidator Graeme Lean's accounts of the Company's wind-up and property disposal exercises; and -- consider and approve, if required, the Liquidator's remuneration to date. The Liquidator can be reached at: Graeme Lean FCPA G. T. Lean & Associates 424 Fitzgerald Street North Perth, Western Australia 6006 Australia AJL NOMINEES: Placed Under Voluntary Wind-Up -------------------------------------------- At a general meeting of the members of AJL Nominees Pty Limited held on June 15, 2006, it was resolved that a voluntary wind-up of the Company's operations is appropriate and necessary. Accordingly, David M. McCarthy was appointed as liquidator. The Liquidator can be reached at: Christopher R. Campbell Deloitte Touche Tohmatsu Grosvenor Place 225 George Street Sydney, New South Wales 2000 Australia AMS INSULATION: Liquidation Process Commenced --------------------------------------------- The liquidation of AMS Insulation Services (2003) Ltd commenced on July 17, 2006, with the appointment of Kim S. Thompson as liquidator. Mr. Thompson required the creditors of the Company to prove their debts by August 22, 2006, for them to share in any distribution the Company will make. The Liquidator can be reached at: Kim Thompson P.O. Box 1027, Hamilton New Zealand Telephone: (07) 834 6027 Facsimile: (07) 834 6064 ARABELLA PTY: Court Orders Wind-Up ---------------------------------- The Supreme Court of New South Wales on July 11, 2006, issued an order to wind up Arabella Pty Ltd. The Court also directed the appointment of Steven Nicols as liquidator. The Liquidator can be reached at: Steven Nicols Level 2, 350 Kent Street Sydney, New South Wales 2000 Australia BMED NOMINEES: Appoints Peter Robert Vince as Liquidator -------------------------------------------------------- Members of BMED Nominees Pty Ltd convened on July 21, 2006, and resolved to wind up the Company's operations. In this regard, Peter Robert Vince was appointed as liquidator. The Liquidator can be reached at: Peter Robert Vince Vince & Associates 51 Robinson Street Dandenong, Victoria 3175 Australia BABY WORLD: Appoints Burgess as Liquidator ------------------------------------------ Shareholders of Baby World in New Zealand Ltd on July 17, 2006, appointed Liquidator Raymond Gordon Burgess to oversee the Company's liquidation. Mr. Burgess subsequently required the creditors of the company to submit their proofs of claim by August 21, 2006, for them to share in any distribution the Company will make. The Liquidator can be reached at: Raymond Burgess P.O. Box 82-100, Auckland New Zealand Telephone: (09) 576 7806 Facsimile: (09) 576 7263 BREMORE ENGINEERING: To Declare Dividend on August 23 ----------------------------------------------------- Bremore Engineering Pty Ltd will declare a first and final dividend for creditors on August 23, 2006. Creditors are required to formally prove their debts by August 22, 2006, for them to share in the dividend distribution. The liquidator can be reached at: M. H. Lyford Lyfords Ogilvie House 12 Kintail Road Applecross, Western Australia 6153 Australia BUMAR PTY: Members Decide to Shut Down Operations ------------------------------------------------- At an extraordinary general meeting of Bumar Pty Ltd, on July 19, 2006, members agreed to voluntarily wind up the Company's operations. In this regard, Stephen Robert Dixon and Laurence Andrew Fitzgerald were appointed as joint and several liquidators. The Joint and Several Liquidators can be reached at: Stephen Robert Dixon Laurence Andrew Fitzgerald Horwath BRI (Vic) Pty Ltd Chartered Accountants Level 30, The Rialto 525 Collins Street Melbourne, Victoria 3000 Australia CASTLE BROS: Court to Hear Liquidation Bid on Sept. 28 ------------------------------------------------------ The High Court of Auckland on July 4, 2006, received from W Stevenson & Sons Ltd a liquidation petition against Castle Bros. Haulage Ltd. The Court is set to hear the petition on September 28, 2006, at 10:00 a.m. Further particulars of the case can be obtained from the plaintiff's solicitor at: C. N. Lord Messrs Craig Griffin & Lord Solicitors, 187 Mt Eden Road Mt Eden, Auckland New Zealand P.O. Box 9049, Newmarket, Auckland CDSCC SUPERANNUATION: Placed Under Members' Voluntary Wind-Up ------------------------------------------------------------- The members of CDSCC Superannuation Fund Pty Limited met at a general meeting on July 21, 2006, and decided to voluntarily wind up the Company's operations. Accordingly, Peter G. Yates and David J. F. Lombe were appointed as joint and several liquidators. The Joint and Several Liquidators can be reached at: Peter G. Yates David J. F. Lombe Deloitte Touche Tohmatsu Grosvenor Place 225 George Street Sydney, New South Wales 2000 Australia CHADWICK PLACE: Members Agree to Liquidate Business --------------------------------------------------- The members of Chadwick Place Pty Ltd convened on June 9, 2006, and resolved to voluntarily liquidate the Company's business. Michael James Humphris and Stephen Robert Dixon were subsequently nominated as liquidators. The Liquidators can be reached at: Michael James Humphris Stephen Robert Dixon Chartered Accountants Horwath BRI (Vic) Pty Ltd Level 30, The Rialto 525 Collins Street Melbourne, Victoria 3000 Australia CHELDARLIN PTY: Members Pass Resolution to Wind Up Firm ------------------------------------------------------- At a general meeting of the members of Cheldarlin Pty Ltd held on July 11, 2006, it was resolved that a voluntary wind-up of the Company's operations is appropriate and necessary. In this regard, Gregory Stuart Andrews was appointed as liquidator. The Liquidator can be reached at: Gregory Stuart Andrews G. S. Andrews & Associates Certified Practising Accountants 22 Drummond Street Carlton, Victoria 3053 Australia Telephone:(03) 9662 2666 Facsimile:(03) 9662 9544 CHROME STILL: To Declare First and Final Dividend ------------------------------------------------- Chrome Still And Motion Investments Pty Ltd will declare a first and final dividend for creditors on August 25, 2006, to the exclusion of those who cannot prove their claims by August 25, 2006. The deed administrator can be reached at: Riad Tayeh de Vries Tayeh PO Box 218 Parramatta, New South Wales 2124 Australia CONTRACT CONTROL: Creditors Appoint McLellan as Liquidator ---------------------------------------------------------- On July 19, 2006, the members Contract Control Constructions Pty Ltd (CCC) met at a general meeting and resolved to voluntarily wind up the Company's operations. Creditors subsequently appointed Andrew McLellan as liquidator at a separate meeting held that same day. The Liquidator can be reached at: Andrew McLellan PPB, Chartered Accountants Level 10, 90 Collins Street Melbourne, Victoria Australia D. H. BUS: Enters Wind-Up Proceedings ------------------------------------- At an extraordinary general meeting of D. H. Bus Pty Ltd, held on July 12, 2006, members resolved to voluntarily wind up the Company's operations. Accordingly, Robert Whitton was named official liquidator. The Liquidator can be reached at: Robert Whitton Lawler Partners Chartered Accountants Level 7, 1 Margaret Street Sydney, New South Wales 2000 Australia D.J. BARNES: Members Resolve to Close Business ---------------------------------------------- The members of D.J. Barnes & Sons Pty Ltd held a meeting on July 18, 2006, and resolved to voluntarily wind up the Company's operations. Creditors subsequently appointed Leigh Dudman as liquidator. The Liquidator can be reached at: Leigh Dudman B.K. Taylor & Co. 8th Floor 608 St Kilda Road Melbourne, Victoria 3004 Australia FAIRFIELD INVESTMENTS: Appoints Official Liquidators ---------------------------------------------------- Members of Fairfield Investments Pty Ltd convened at a general meeting on June 7, 2006, and resolved to voluntarily wind up the Company's operations. In this regard, Stephen Robert Dixon and Laurence Andrew were appointed as joint and several liquidators. The Joint and Several Liquidators can be reached at: Stephen Robert Dixon Laurence Andrew Fitzgerald Chartered Accountants Horwath BRI (Vic) Pty Ltd The Rialto Level 30, 525 Collins Street Melbourne, Victoria 3000 Australia G.T. COLLECTIVE: Members Agree to Shut Down Business ---------------------------------------------------- At an extraordinary general meeting of the members of G.T. Collective Construction Pty Limited held on July 20, 2006, it was decided that a wind-up of the Company's operations is appropriate and necessary. Subsequently, Daniel I. Cvitanovic was appointed as liquidator. The Liquidator can be reached at: Daniel I. Cvitanovic Daniel I. Cvitanovic Chartered Accountant Shop 5, Old Potato Shed 74-76 Hoddle Street Robertson, New South Wales 2577 Australia HCOA INTERNATIONAL: Placed Under Voluntary Liquidation ------------------------------------------------------ The members of HCOA International Holdings Pty Ltd convened on June 30, 2006, and agreed to voluntarily liquidate the Company's business. In this regard, James Patrick Downey was nominated as liquidator. The Liquidator can be reached at: James Patrick Downey Cole Downey & Co Chartered Accountants Level 1, 22 William Street Melbourne, Victoria 3000 Australia HIH INSURANCE: M. Fedora Faces Court for Six Criminal Charges ------------------------------------------------------------- The Troubled Company Reporter - Asia Pacific reported on July 31, 2006, that Dominic Fodera, the former Chief Financial Officer of HIH Insurance Limited, will appear in Downing Centre Court for a committal hearing commencing on August 7, 2006, in relation to four criminal charges of giving misleading information and two charges of failing to act honestly as a director. A follow-up report from The Age relates that Mr. Fodera has already faced a court hearing to determine if he will stand trial on the six charges against him. These charges arise from the Australian Securities and Investments Commission's investigation into the affairs of the HIH group of companies. HIH entered into two agreements in 1999 -- Hannover 1 and Hannover 2 -- with German re-insurer Hannover Re, the Australian Associated Press cites crown prosecutor Tim Game SC as telling the Downing Centre Local Court. Under the agreements, it appeared that HIH would pay money into a managed fund and Hannover Re would carry the risk if the fund failed to grow quickly enough to meet HIH claims, Mr. Game relates. However, other agreements, known as Letters of Credit agreements, were entered into by HIH subsidiary Underwriting and Agency Services Limited, and were not disclosed to the HIH board of directors, Mr. Game reveals. In those LOC agreements, "HIH was in fact guaranteeing the funds would meet the ultimate levels so risk was not being passed to Hannover Re," Mr. Game asserts. Mr. Game adds that in 1999, HIH "were able to produce a profit of AU$92.4 million on their financials because of these transactions." Thus, "[i]n Hannover 1 and 2 agreements, Hannover is bearing the risk, [yet] when you bring in the LOC agreements, Hannover is not bearing the risk, HIH is bearing the risk," Mr. Game concludes. Mr. Game contends that the agreements were "unnecessarily complicated" and difficult to understand "even for people well versed in re-insurance." The three-day committal hearing resumes before Magistrate Antony Townsden today, The Age notes. About HIH Insurance HIH Insurance Limited -- the holding company of the HIH Group -- was a publicly listed company in Australia. Prior to its collapse, the HIH Group was known as the second largest general insurer in Australia, and had operations in many other countries. On March 15, 2001, the HIH Group failed, with a deficiency now believed to be between AU$3.6 billion and AU$5.3 billion. Provisional liquidators were appointed to HIH Insurance Limited and many of its subsidiaries. Other insolvency practitioners were appointed to various group companies incorporated in other parts of the world. In August 2001, the major Australian companies in the HIH Group were placed into liquidation. On March 29, 2006, meetings of the creditors of the eight companies in the HIH Insurance Group approved the Australian Schemes of Arrangement for those companies. Moreover, separate meetings of creditors of four HIH Insurance Group companies with branches in the United Kingdom approved English Schemes for those companies. HIH's collapse is known to be the nation's biggest corporate failure. ION LIMITED: Shareholders Wait for SOG Judgment on Creditor Debt ---------------------------------------------------------------- ION Limited shareholders must wait several months for a High Court ruling that could affect their chances of recovering any funds, The BorderMail reports. The report relates that a year ago, ION's external administrators, McGrath Nicol and Partners, said there was no likelihood of shareholders receiving any cash. Yet, the report says that the position of some shareholders was put in doubt by a case involving Perth miner Sons of Gwalia Limited, which failed in 2004. That case hinged on whether certain shareholders who claimed they had been misled before buying shares could be treated as creditors, The BorderMail explains. The paper recounts that the Federal Court decided in March 2006 that Sons of Gwalia shareholders who purchased shares "on- market" were entitled to "prove" debt as a creditor. According to the Judges, the claims are not postponed until non- shareholder creditors' claims had been paid, The BorderMail relates. McGrath Nicol agree that this could affect ION and, therefore, informs ION shareholders that the Sons of Gwalia administrators would appeal to the High Court. A hearing on the Sons of Gwalia case will be held in Adelaide on August 7 and 8, 2006. McGrath Nicol does not expect judgment for several months after that, The BorderMail says. In their update for shareholders at ION's Web site, the administrators note that once the High Court delivers judgment, they will have certainty about the issue relating to the adjudication of the proofs of debt of ION shareholders. ION Placed in Administration On December 7, 2004, ION Limited was placed in voluntary administration. Trading in its shares has been suspended and Colin Nicol and Peter Anderson of the independent restructuring and corporate advisory firm, McGrath Nicol + Partners, have been appointed as joint and several administrators to the group. The company has been placed in administration by its board of directors primarily as a result of cost overruns and delays associated with three major capital projects, which have absorbed cash. McGrath Nicol Partner Colin Nicol said that they will work towards selling ION's businesses -- where possible as going concerns -- recapitalizing parts of the group. The Administrators expected the existence of sufficient assets within the group to ensure that employee entitlements were secure. A report to creditors dated April 15, 2005, disclosed that administrators have been appointed to ION and each of its 22 Australian subsidiaries: 1) Castalloy Limited, 2) Castalloy Manufacturing Pty Ltd, 3) Castalloy Wheels Pty Ltd, 4) Core Cast Limited, 5) ION Automotive Group Limited, 6) ION Automotive Systems Pty Ltd, 7) ION Light Metal Castings Pty Ltd, 8) ION Transmissions Pty Ltd, 9) XCTA Pty Ltd (formerly Cootes Transport Pty Ltd), 10) XCTS Pty Ltd (formerly Cootes Tanker Service Pty Ltd), 11) XIRC Pty Ltd (formerly I.R. Cootes Pty Ltd), 12) XLC Pty Ltd (formerly Liquip Corp Pty Limited), 13) XLO Pty Ltd (formerly Liquip Overseas Pty Ltd), 14) XLS Pty Ltd (formerly Liquip Sales Pty Ltd), 15) XLSE Pty Ltd (formerly Liquip Service Pty Ltd), 16) XLSV Pty Ltd (formerly Liquip Sales (Vict.) Pty Ltd), 17) XST Pty Ltd (formerly Stevenson Transport Pty Ltd), 18) ION Finance Ltd, 19) ION Holdings Pty Ltd, 20) ION Investments Pty Ltd, 21) Thomson & Scougall Industries Pty Ltd, and 22) XCHO Pty Ltd (formerly Cootes Holdings Pty Ltd) A full-text copy of the report is available free of charge at: http://www.ionlimited.com/images/articles/0504292.pdf ION & Subsidiaries Executed DOCA On May 30, 2005, the Administrators informed creditors that ION and 17 of its subsidiaries executed deeds of company arrangement on May 27, 2005: 1) ION Automotive Group Limited, 2) ION Light Metal Castings Pty Ltd, 3) Core Cast Limited, 4) Castalloy Limited, 5) Castalloy Wheels Pty Ltd, 6) Castalloy Manufacturing Pty Ltd, 7) ION Automotive Systems Pty Ltd, 8) ION Transmissions Pty Ltd, 9) XCTA Pty Ltd, 10) XCTS Pty Ltd, 11) XIRC Pty Ltd, 12) XST Pty Ltd, 13) XLSV Pty Ltd, 14) XLS Pty Ltd, 15) XLSE Pty Ltd, 16) XLC Pty Ltd, and 17) XLO Pty Ltd A full-text copy of the DOCA is available for free at: http://www.ionlimited.com/images/articles/050602.pdf About ION ION Limited -- http://www.ionlimited.com-- is a manufacturer of automotive components and also has an energy services business. It employs around 3,000 people at sites in Australia, New Zealand, and the United States of America and has annual revenues of approximately AU$700 million. ION manufactures wheels and alloy components, transmission assemblies, cylinder heads, oil pans and other automotive products. Its energy services business distributes oil and gas to retail and commercial outlets, undertakes aviation refuelling and manages terminal operations. ION Limited is currently subject to a deed of company arrangement. ISI NOMINEES: Names Joint and Several Liquidators ------------------------------------------------- Members of ISI Nominees Pty Limited convened on June 15, 2006, and decided to voluntarily wind up the Company's operations. Subsequently, David M. Mccarthy and Christopher R. Campbell were appointed as joint and several liquidators. The Joint and Several Liquidators can be reached at: David M. Mccarthy Christopher R. Campbell Deloitte Touche Tohmatsu Grosvenor Place 225 George Street Sydney, New South Wales 2000 Australia JANSEEN & DOMETT: Faces Liquidation Proceedings ----------------------------------------------- A liquidation petition filed against Janssen & Domett will be heard before the High Court of Wellington on August 21, 2006, at 10:00 a.m. Harbour Associates Ltd filed the petition on July 12, 2006. The solicitor for the plaintiff can be reached at: David Scott Galloway Hazelton Law, Level Three Molesworth House 101 Molesworth (P.O. Box 5639) Wellington, New Zealand MALCOLM SWAIN: Liquidators to Present Wind-Up Report ---------------------------------------------------- The members of Malcolm Swain Investments Pty Limited will hold a final meeting on August 22, 2006, at 10:00 a.m.. During the meeting, members will receive the Liquidators Peter Woods and Samantha Bennett's reports on the Company's wind-up and property disposal exercises. The Liquidators can be reached at: Peter Woods Samantha Bennett Peter Woods & Associates Pty Limited 86 Currajong Street Parkes, New South Wales 2870 Australia MULTIPLEX GROUP: Takes Wembley Disputes for Adjudication -------------------------------------------------------- Multiplex Group has taken seven separate disputes, including payments, changes of specification, and time schedules, with Wembley National Stadium Ltd., to adjudication over the past month, the Sydney Morning Herald relates. According to the Sydney Herald, it is the first time that the disputes procedure has been invoked since Multiplex was appointed to build the stadium six years ago and forms the background to last week's issue over completion dates. As reported in the Troubled Company Reporter - Asia Pacific on August 3, 2006, a stand-off between Multiplex and the owners of Wembley Stadium threatens to put the project further behind schedule. WNSL has yet to use the adjudication process against Multiplex, the Herald notes. Although of limited size individually, the disagreements to be adjudicated will set a precedent for deciding other issues, the Herald says. Multiplex has asserted claims in excess of GBP150 million (AU$373 million) against WNSL on a contract worth GBP458 million. The Herald states that the disputes process allows 28 days for resolution and the first adjudications are due this month, noting that if either party disagrees with the finding, it can take the matter to court. However, a Wembley insider says that "[i]f we have to go to court we will, but we have no desire for public spats," the Herald relates. Multiplex is suffering a GBP1 million-a-week penalty for delays on its fixed-price contract and is seeking to blame WNSL for exacerbating its problems. FA Blames Multiplex According to The Observer, the Football Association holds Multiplex responsible for the delays, and privately accuses it of using "blackmail" by constantly pushing back the reopening date. However, the FA also recognizes that only a settlement will let them turn Wembley into a lucrative revenue stream in the foreseeable future, and that Multiplex will not settle unless the FA abandoned all or most of its claims for damages. The TCR-AP report stated that a Multiplex spokesman said that the bulk of WNSL's work had not started and, while Multiplex would complete its own share of work by next month, the final completion date was "very much in the hands of the client." However, WNSL Chief Executive Officer Michael Cunnah countered that "[i]t has always been our view that the stadium's delays are Multiplex's responsibility." Parties May Settle Out of Court Multiplex will escape financial penalties of up to GBP40 million payable to the FA for the late delivery of the project, The Observer reports. The report explains that the FA climb-down is part of a deal with the venue's owners to avoid a lengthy court battle. The FA, whose subsidiary, WNSL, owns the stadium, will agree not to pursue a claim so that the ground can open and start earning money, The Observer relates. The news comes as the FA renegotiates its GBP426-million loan with a consortium of banks led by WestLB. The FA was due to pay GBP40 million to the banks next month, but has been forced to delay payment until March 2007 because of the failure to build the new ground. Wembley should have held May's FA Cup but it might not be completed until next June. The FA has already lost millions of pounds as dozens of football matches and pop concerts have been cancelled or held elsewhere. The Herald relates that WestLB, the German lead-financier of the GBP757-million project, is watching the dispute closely. Repayments on its loan could fall due next month. So far, interest has been rolling up but, as soon as the project is completed, WNSL must make payments, the Herald says. Multiplex investor relations and communications director Peter Murphy says the reports are probably related to approximately GBP38 million in liquidated damages for late delivery, payable under the Wembley construction contract -- of which Multiplex was liable for just GBP14 million, with an insurance company liable for the rest, The Australian relates. The report further relates that although it has provided to pay the full GBP14 million -- and part of that has been deducted from progress payments by WNSL -- Multiplex argues it is entitled to extensions until October 2007, and may not have to pay any damages at all. Mr. Murphy relates that settlement negotiations with WNSL had been under way for months, noting that there have been offers that Multiplex was not satisfied with. According to The Australian, Mr. Murphy rejects as "ridiculous" the suggestion that Multiplex was trying to blackmail WNSL. "We've battled to get the stadium to the point where it's substantially complete," the paper cites Mr. Murphy saying. Mr. Murphy also says that local authorities in London had confirmed that approvals could not be issued until a test event for 90,000 spectators had been held -- and that could not take place until WNSL had completed its own works. "Between now and practical completion, the main hold-up remains the client works," Mr. Murphy asserts. The Observer says Multiplex will already lose up to GBP183 million on a stadium it promised to build for a fixed price of GBP352 million. Both sides are threatening to sue each other over the many setbacks, The Observer notes. About Multiplex Headquartered at Miller's Point, in New South Wales, Australia, Multiplex Group -- http://www.multiplex.biz/-- derives its revenue from property funds management, construction, property development, and facilities management. The Group employs over 2,000 people and has established operations and offices throughout Australia, New Zealand, the United Kingdom and the Middle East. In December 2003, Multiplex Limited listed on the Australian Stock Exchange as a part of the Multiplex Group, raising a total of AU$1.2 billion. Multiplex Group was formed by combining the various businesses of Multiplex Limited and the newly established portfolio of investments held by Multiplex Property Trust. Early in 2005, Multiplex began facing cost pressures on its reconstruction project for the Wembley Stadium in London, prompting it to conduct its own internal investigation into the Wembley difficulties. Its auditor, KPMG, later conducted its own thorough review of the problems, leading to an unpredicted write-down. In February 2005, stunned investors sold down Multiplex shares after the Company reversed its stance on two United Kingdom projects, writing off AU$68.3 million from its profits. This started a series of profit downgrades throughout 2005. The Company's troubles continue with plunging share prices, extortion attempts and threats of class action from disgruntled shareholders. The Roberts family, as founder and controlling shareholder of Multiplex, opted to offer AU$50 million indemnity in a bid to appease dissatisfied shareholders. In May 2005, Multiplex admitted that its troubled Wembley Stadium construction project may end up with a multimillion loss. As of February 2006, the Company is faced with liquidity crisis after posting a massive AU$474 million loss on Wembley and is currently in talks to bring down possible delay fees, pegged at AU$138,000 per day beyond the scheduled March 31, 2006 completion date. MWM MANAGEMENT: Members Pass Resolution to Wind Up Firm ------------------------------------------------------- At a general meeting on July 18, 2006, the members of MWM Management Group Pty Ltd proposed and passed a special resolution to voluntarily wind up the Company's operations. Marc Peskett was subsequently appointed as liquidator. The Liquidator can be reached at: Marc Peskett MPR Group Level 11 499 St Kilda Road Melbourne, Victoria 3004 Australia NATURAL NUTRITION: Appoints James Downey as Liquidator ----------------------------------------------------- Members of Natural Nutrition Pty Ltd convened on July 20, 2006, and resolved to voluntarily wind up the Company's operations. In this regard, James Patrick Downey was appointed as liquidator. The Liquidator can be reached at: James Patrick Downey Cole Downey & Co Chartered Accountants Level 1, 22 William Street Melbourne, Victoria 3000 Australia PARKLANDS INVESTMENTS: Creditors Must Prove Debt by August 31 ------------------------------------------------------------- The High Court of Auckland had appointed Rory Iain Grieve and Peter Reginald Jollands as joint liquidators of Parkland Investments Ltd. Accordingly, the Joint Liquidators require the Company's creditors to prove their debts by August 31, 2006. Failure to comply with the requirement will exclude a creditor from sharing in any distribution the Company will make. The joint liquidators can be reached at: R.I. Grieve Jollands Callander Accountants and Insolvency Practitioners Level Four, 3-13 Shortland Street Auckland, P.O. Box 106-141 Auckland City, New Zealand Web site: www.jollandscallander.co.nz/ PENDEAN PTY: Creditors' Proofs of Claim Due on August 10 --------------------------------------------------------- Pendean Pty Ltd will declare a first and final dividend on August 24, 2006. Creditors who can prove their claims by August 10, 2006, will share in the dividend distribution. The liquidator can be reached at: S. L. Horne Draper Dillon 499 St Kilda Road Melbourne 3004, Australia PROACTIVE WORKWEAR: Court to Hear Liquidation Bid on Oct. 19 ------------------------------------------------------------ The High Court of Auckland will hear a liquidation petition against Proactive Workwear Co NZ Ltd on October 19, 2006, at 10:00 a.m. Red I Ltd filed the petition with the Court on July 14, 2006. The plaintiff's solicitor can be reached at: R. M. Dillon Gaze Burt, Solicitors 1 Nelson Street, Auckland New Zealand PROVINCIAL FINANCE: Receivers Provide Interim Statutory Report -------------------------------------------------------------- The joint receivers for Provincial Finance Limited presented interim updates of the current status of their activities and the Company's affairs. The Company's receivers are John Waller and Maurice Noone, at PricewaterhouseCoopers. According to Mr. Noone, as of July 13, 2006, good progress has been made in strengthening collection processes with a view to reducing the general level of arrears. As of this date, collections have been in line with Provincial Finance's preliminary expectations due to the support of the Company's staff, Mr. Noone notes. New avenues have been explored to dispose of repossessed vehicles, with good success in the recent Receivers' Sale, Mr. Noon relates. Mr. Noone relates that they are continuing to see if restructuring is possible and are currently in discussions with a number of parties that would be involved in the restructure. However, "at this stage we cannot put a time frame on the restructure nor provide any certainty as to whether a restructure will succeed," Mr. Noone clarifies, adding that any restructure must be viable and protect debenture holders. The Receivers are still hopeful that if the collection of the loan book is successful, investors should receive most, if not all, of their initial investment back. As reported in the Troubled Company Reporter - Asia Pacific on July 10, 2006, Provincial Finance's investors who were affected by the Company's collapse will get some of their money back in September 2006. In his update, Mr. Noone says they still expect to make an interim distribution to debenture holders, together with a full update on the status of any restructure by the end of September. He further says that it is likely that any distribution will be in the range of 10-20 cents on the initial investment made. Mr. Noone also notes that in recent publicity, it was alluded that Provincial Finance continued to accept amounts of up to NZ$12 million after its prospectus was withdrawn. Mr. Noone clarifies that all of the amounts received after the prospectus was withdrawn on May 7, 2006, were not accepted and were repaid by Provincial Finance. In addition, amounts received subsequent to the Trustee advising Provincial Finance that it was in breach of its trust deed requirements on April 10, 2006, were held in trust by the Trustee and have been refunded to the investors by the Trustee, Mr. Noone says. About Provincial Finance Provincial Finance Limited -- http://www.provincialfinance.co.nz/-- is a New Zealand finance company that provides consumer and commercial finance to individuals and businesses across New Zealand, and promote a range of investment opportunities. As reported in the Troubled Company Reporter - Asia Pacific, Provincial Finance was put into receivership on June 2, 2006, due to breach of covenants and ratios in its Trust Deed, as well as a multi-million write-down for bad debts. The Company owes NZ$300 million to 14,000 small investors. Q & L BUS: Creditors Appoint Robert Whitton as Liquidator --------------------------------------------------------- At an extraordinary general meeting of the members of Q & L Bus Tours Pty Ltd held on July 12, 2006, the members resolved to voluntarily wind up the Company's operations. Robert Whitton was subsequently appointed as liquidator. The Liquidator can be reached at: Robert Whitton Lawler Partners Chartered Accountants Level 7, 1 Margaret Street Sydney, New South Wales 2000 Australia RULA PTY: Members Agree to Wind Up Firm --------------------------------------- At an extraordinary general meeting of Rula Pty Limited held on July 21, 2006, members resolved to voluntarily wind up the Company's operations. In this regard, that Bryan Collis was appointed as liquidator. The Liquidator can be reached at: Bryan Collis O'Brien Palmer Level 4, 23-25 Hunter Street Sydney, New South Wales 2000 Australia SHARDEL PTY: Placed Under Members' Voluntary Liquidation -------------------------------------------------------- The members of Shardel Pty Ltd convened on July 20, 2006, and agreed to voluntarily liquidate the Company's operations and distribute the proceeds of its assets disposal. In this regard, Peter H. Cary was appointed as liquidator. The Liquidator can be reached at: Peter H. Cary c/o P. H. Cary & Company Level 8, 6-10 O'Connell Street Sydney, New South Wales 2000 Australia SIGNATURE BEVERAGES: Enters Wind-Up Proceedings ----------------------------------------------- Members of Signature Beverages Pty Limited met on July 6, 2006, and resolved to close the Company's operations. In this regard, Martin John Green was appointed as official liquidator. The Liquidator can be reached at: Martin John Green GHK Green Krejci Level 13, 1 Castlereagh Street Sydney, New South Wales 2000 Australia SIMONETTA IMPORTS: Members Opt for Voluntary Liquidation -------------------------------------------------------- At an extraordinary general meeting of the member of Simonetta Imports Pty Ltd held on July 13, 2006, it was agreed that a voluntary liquidation of the Company's business is appropriate and necessary. Robert Molesworth Hobill Cole was appointed as liquidator at a creditors' meeting held that same day. The Liquidator can be reached at: Robert Molesworth Hobill Cole Cole Downey & Co Chartered Accountants Level 1, 22 William Street Melbourne, Victoria 3000 Australia SOY FRANCHISE: Members Appoint Steven Nicols as Liquidator ---------------------------------------------------------- The members of Soy Franchise Pty Ltd convened on July 21, 2006, and agreed to liquidate the Company's business. In this regard, Steven Nicols was appointed as liquidator. The Liquidator can be reached at: Steven Nicols Nicols + Brien Level 2, 350 Kent Street Sydney, New South Wales 2000 Australia Telephone: 9299 2289 Facsimile: 9299 2239 Web site: http://www.bankrupt.com.au/ STEWART MCKENZIE: Members Decide to Close Business -------------------------------------------------- Members of Stewart Mckenzie Pty Limited on July 18, 2006, resolved to voluntarily wind up the Company's operations. Subsequently, Andrew Hugh Jenner Wily and David Anthony Hurst were appointed as liquidators. The Liquidators can be reached at: Andrew Hugh Jenner Wily David Anthony Hurst Armstrong Wily Chartered Accountants Level 5, 75 Castlereagh Street Sydney, New South Wales 2000 Australia SWOOVE PTY: Members Pass Resolution to Wind Up Operations --------------------------------------------------------- The members of Swoove Pty Ltd convened on July 13, 2006, and passed a special resolution to voluntarily wind up the Company's operations. The liquidator can be reached at: David Clement Pratt Timothy James Cuming Level 15, 201 Sussex Street Sydney, New South Wales 1171 Australia TELEON HOLDINGS: Undergoes Voluntary Liquidation ------------------------------------------------ On June 28, 2006, the members of Teleon Holdings Pty Limited held a general meeting and passed a special resolution to wind up the Company's operations and distribute the proceeds of its assets disposal. The liquidator can be reached at: Steven Nicols c/o Nicols + Brien Level 2, 350 Kent Street Sydney, New South Wales 2000 Australia Telephone:(02) 9299 2289 Web site: http://www.bankrupt.com.au/ TE MAIRE: Court Hears Liquidation Petition ------------------------------------------ The Commissioner of Inland Revenue filed a liquidation petition against Te Maire Ruapehu before the High Court of Rotorua on May 8, 2006. The Court heard the petition on August 7, 2006, at 10:45 a.m. Further particulars of the case can be obtained from: Eleanor Duncan-Sittlington Inland Revenue Department 1 Bryce Street, Hamilton New Zealand Telephone: (07) 959 0471 TEMPERAIR SERVICES: Creditors Decide to Close Business ------------------------------------------------------ Creditors of Temperair Services Pty Limited convened on July 20, 2006, and resolved to close the Company's operations. Subsequently, Roderick Mackay Sutherland was appointed as liquidator. The Liquidator can be reached at: Roderick Mackay Sutherland Jirsch Sutherland Chartered Accountants Level 2, 84 Pitt Street Sydney, New South Wales 2000 Australia Telephone:(02) 9233 2111 Facsimile:(02) 9233 2144 TP COMMUNICATIONS: Creditors' Proofs of Debt Due on August 18 ------------------------------------------------------------- Liquidator John Michael Gilbert will is receiving proofs of debt from the creditors of TP Communications until August 18, 2006. The liquidator can be reached at: J.M. Gilbert c/o C & C Strategic Limited Private Bag 47-927, Ponsonby Auckland, New Zealand Telephone: (09) 376 7506 Facsimile: (09) 376 6441 TRANSAG MANUFACTURING: Court Hears Corus' Liquidation Bid --------------------------------------------------------- The High Court of Auckland heard a liquidation petition against Transag Manufacturing Ltd On August 3, 2006, at 10:00 a.m. Corus New Zealand Ltd filed the petition with the Court on May 24, 2006. The solicitor for the plaintiff can be reached at: A.J. Cumming c/o offices of Wilson McKay 1A St Vincent Avenue Remuera, Auckland New Zealand TRIDET PTY: Members and Creditors to Receive Wind-Up Report ----------------------------------------------------------- Members and creditors of Tridet Pty Ltd will hold a general meeting on August 25, 2006, at 11:00 a.m. At the meeting, Liquidator McDermott will present accounts of the Company's wind-up and property disposal activities. The Liquidator can be reached at: Ross McDermott Chartered Accountant Suite 13, 233 Cardigan Street Carlton, Victoria 3053 Telephone:(03) 9347 0411 ULTRA LITE: Court Appoints Official Liquidator ---------------------------------------------- On July 21, 2006, the Supreme Court of New South Wales ordered Ultra Lite Skylights Pty Limited to wind up its business and appoint R. M. Sutherland as liquidator. The Liquidator can be reached at: R. M. Sutherland Jirsch Sutherland Chartered Accountants Level 2, 84 Pitt Street Sydney, New South Wales 2000 Australia Telephone:(02) 9233 2111 Facsimile:(02) 9233 2144 VIVIANNES COLLECTION: To Declare Second Dividend on August 11 ------------------------------------------------------------- Viviannes Collection Australia Pty Ltd will declare its second dividend for creditors on August 11, 2006. Creditors are required to prove their debts by August 10, 2006, for them to share in the dividend distribution. The liquidator can be reached at: G. S. Andrews G. S. Andrews & Assocs 22 Drummond Street Carlton, Victoria 3053 Australia Telephone:(03) 9662 2666 Facsimile:(03) 9662 9544 V & S ENTERPRISES: Liquidation Bid Hearing Set on Aug. 17 --------------------------------------------------------- The hearing of the liquidation petition filed against V & S Enterprises Ltd is set on August 17, 2006, at 10:00 a.m. by the High Court of Auckland. The Court received the petition from South Pacific Tyres NZ Ltd on May 26, 2006. The solicitor for the plaintiff can be reached at: Dianne S. Lester Credit Consultants Debt Services NZ Ltd Level Three, 3-9 Church Street P.O. Box 213 or D.X. S.X. 10 069 Wellington, New Zealand Telephone: (04) 470 5972 WELLINGTON PTY: Inability to Pay Debts Prompts Wind-Up ------------------------------------------------------ Members of Wellington Pty Limited convened on July 19, 2006, and decided to wind up the Company's operations due to its inability to pay its debts. Subsequently, Robert Moodie was appointed as liquidator. The Liquidator can be reached at: Robert Moodie c/o Rodgers Reidy Level 8, 333 George Street Sydney, New South Wales 2000 Australia WELLROOFED PTY: Members Agree to Voluntarily Liquidate Business --------------------------------------------------------------- The members of WellRoofed Pty Ltd convened on July 20, 2006, and decided to voluntarily liquidate the Company's business. Accordingly, 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 WENTLOCK PTY: Appoints Joint and Several Liquidators ---------------------------------------------------- At an extraordinary general meeting of Wentlock Pty Ltd held on July 24, 2006, members resolved to voluntarily liquidate the Company's business. Creditors appointed William Bernard Abeyratne and Loke Ching Wong as joint and several liquidators at the creditors' meeting held that same day. The Joint and Several Liquidators can be reached at: William Bernard Abeyratne Loke Ching Wong Harrisons Insolvency Level 5, 150 Albert Road South Melbourne Victoria 3205 Australia Telephone:(03) 9696 2885 Y.M.M YOUL: Enters Wind-Up Proceedings -------------------------------------- The members of Y.M.M Youl (Fairfield) Pty Ltd convened on June 2, 2006, and decided to voluntarily liquidate the Company's business. In this regard, Stephen Robert Dixon and Laurence Andrew Fitzgerald were appointed as liquidators. The liquidators can be reached at: Stephen Robert Dixon Laurence Andrew Fitzgerald Chartered Accountants Horwath BRI (Vic) Pty Ltd Level 30, The Rialto 525 Collins Street Melbourne Victoria 3000 Australia * Trans-Tasman Merger Protocol Agreed ------------------------------------- The New Zealand Commerce Commission and the Australian Competition and Consumer Commission have agreed to a Cooperation Protocol for Merger Review. The protocol is effective August 7, 2006. It is designed to assist cooperation in merger review between the ACCC and the Commerce Commission. According to Commerce Commission Chairperson Paula Rebstock, and ACCC Chairman Graeme Samuel, the protocol "will reduce compliance costs for businesses, and save taxpayers money by reducing the costs of making merger decisions". They also note that the protocol is consistent with both governments' shared objective of streamlining the trans-Tasman business environment." In a statement posted at the ACCC's Web site, the ACCC and the Commerce Commission will apply this protocol to the greatest possible extent, consistent with their priorities, aims, functions and respective laws, interests and enforcement responsibilities, when they: * review the same merger transaction; * exchange information for use in a merger review being conducted by either agency; or * otherwise exchange information with the aim of assisting the respective agencies in carrying out their merger review processes and functions. ================================ C H I N A & H O N G K O N G ================================ AGRICULTURAL BANK: To Invest CNY467 Billion in State Program ------------------------------------------------------------ The Agricultural Bank of China said it plans to inject CNY467 billion with in the next five years in support of the government's initiative to build the "Socialist New Countryside", The Standard reports. According to The Standard, the Chinese government launched the "New Countryside" initiative last year in a bid to promote the development of its vast rural areas, where 800 million of its 1.3 billion population live. A spokesperson of the Bank told the paper that "New Countryside" initiative is providing a big chance for commercial banks, as it is estimated that the initiative will use up some CNY20 trillion by 2020. The source explained that though the Government will increase spending on agriculture and rural development, majority of the funds would have to be sourced from the banks. In addition, the Bank's spokesperson said that compared with other banks, the Agricultural Bank's strength is its extensive coverage of the rural areas and its familiarity with farmers and agriculture. Currently the Bank has 6,389 outlets in county towns, and 8,672 outlets in smaller towns. * * * The Agricultural Bank of China -- http://www.abocn.com/-- is the mainland's fourth largest bank. It has lagged behind other major Chinese commercial banks, which have received government injections of new capital and been allowed to link up with foreign partners in preparation for raising money on foreign stock exchanges. Despite posting operating profits of over CNY42.4 billion in 2005, the Bank is still carrying billions of dollars in unpaid loans to state companies, which it says accounted for 26% of its lending at the end of last year. The Troubled Company Reporter- Asia Pacific on June 27, 2006, the National Audit Office found accounting irregularities involving CNY51.6 billion which CNY14.27 billion of the amount come from deposit business, CNY27.62 billion on loan grants, and CNY9.72 billion in fraudulent bill issuance. NUCLEAR CONSTRUCTION: Creditors to Convene on August 15 ------------------------------------------------------- The creditors of Nuclear Construction and Engineering Co Ltd will convene on August 15, 2006, 2:30 p.m. at Room 203, Duke of Windsor Social Service Building, No.15 Hennessy Road, in Wanchai, Hong Kong. The meeting was called for the purposes provided in different sections of the Companies Ordinance of Hong Kong. On August 1, 2006, The Troubled Company Reporter - Asia Pacific reported that the Company is facing a wind-up petition filed before the High Court of Hong Kong by Guangzhou Aluminum Fluro- Carbon Coated Ltd. The Court will hear the petition on September 13, 2006. SINO UNICORN: Creditors Must Prove Debts by September 4 ------------------------------------------------------- The creditors of Sino Unicorn Trading Ltd are required to submit their proofs of claim by September 4, 2006, to Liquidator Ho Wai Ip. 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: Ho Wai Ip c/o Alliance & Associates, CPA's Rooms 1903, 19/F., World Wide House 19 Des Voeux Road Central Hong Kong TAGO (H.K.) INTERNATIONAL: Court to Hear Wind-Up Bid on Sept. 6 -------------------------------------------------------------- The High Court of Hong Kong will hear a wind-up petition against Tago (H.K.) International Ltd on September 6, 2006, at 9:30 a.m. John Swire & Sons (H.K.) Ltd filed the petition with the Court on July 10, 2006. The solicitor for the plaintiff can be reached at: Johnson Stokes & Master 18th Floor Prince's Bldg 10 Chater Road, Central Hong Kong TETRA PAK: Creditors' Proofs of Claim due on September 5 -------------------------------------------------------- The creditors of Tetra Pak East Asia Ltd are required to file their proofs of claim with Joint Liquidators John James Toohey and Rainier Hok Chung Lam by September 5, 2006. Failure to comply with the requirement will exclude a creditor from sharing in any distribution the Company will make. The Joint Liquidators can be reached at: Rainier Hok Chung Lam 22/F., Prince's Building Central, Hong Kong TKF ARCHITECTS: Wind-Up Petition Hearing Slated for Sept. 20 ------------------------------------------------------------ A wind-up petition filed against TKF Architects & Engineering Co Ltd will be heard before the High Court of Hong Kong on September 20, 2006, at 9:30 a.m. King's Garden Development Ltd filed the petition on July 19, 2006. The solicitor for the petitioner can be reached at: Messrs King & Company 12th Floor, New World Tower II 18 Queen's Road Central Hong Kong TKR FINANCE: Creditors' Meeting Set on August 15 ------------------------------------------------ The creditors of TKR Finance Ltd will convene for a meeting at the liquidator's office on August 15, 2006, at 10:00 a.m. At the meeting, creditors will be asked to pass an ordinary resolution relating to a certain security claimed by a creditor. The liquidator can be reached at: John Robert Lees c/o John Lees & Associates Limited 1904 Hong Kong Club Building 3A Chater Road Central, Hong Kong Telephone: 2842 5009 Facsimile: 2526 0771 TI AUTOMOTIVE: Wins Contracts from Three Major Automakers --------------------------------------------------------- TI Automotive has been awarded contracts by three major automakers and an automotive supplier to produce brake- and fuel-line components and assemblies, as well as air-bag tubes for more than seven new-model vehicles, according to a company press release. Combined lifetime sales for the new contracts from DaimlerChrysler, General Motors, Ford and TRW total more than US$118.2 million. Production at TI facilities in North America, China and South Korea already has started on several projects, while others are slated to begin this fall and later in 2007. The new business awarded to TI Automotive includes production of brake-jounce lines at the company's De Los Nogales plant in Reynosa, Mexico. TI Automotive's plant in Ossian, Ill., as well as facilities in Mexico, China and South Korea will produce various brake- and fuel-line components and assemblies. The De Los Nogales plant also will supply air-bag tubes. About TI Automotive Based in Warren, Mich., TI Automotive -- http://www.tiauto.com/-- employs over 20,000 people at more than 130 facilities in 29 countries on six continents. * * * Moody's Investors Service assigned a B1 rating to TI Automotive's Long Term Family Rating and Bank Loan Debt effective on April 28, 2004. Standard and Poor's gave the company a BB- rating for its Long Term Foreign Issuer Credit and a BB rating for its Long Term Local Issuer Credit, effective on April 29, 2004. As reported in TCR-Europe on March 6, S&P revised its outlook on U.K.-based automotive supplier TI Automotive Ltd. to negative from stable. At the same time, S&P's affirmed its 'BB-' long- term corporate credit and 'BB' senior secured bank loan ratings on the group VITELIC (HONG KONG): First Meetings Set on August 15 ---------------------------------------------------- The creditors and contributories of Vitelic (Hong Kong) Ltd will convene for their first meetings at 10th Floor, Queensway Government Offices, 66 Queensway, in Hong Kong on August 15, 2006, at 2:30 p.m. and 3:30 p.m. respectively. WAI SUN CONSTRUCTION: Faces Wind-Up Proceedings ----------------------------------------------- A wind-up petition against Wai Sun Construction Engineering Co Ltd will be heard before the High Court of Hong Kong on September 6, 2006, at 9:30 a.m. Serawak (K.T) Co Ltd filed the petition with the Court on July 11, 2006. The solicitors for the petitioner can be reached at: Messrs Chiu, Szeto & Cheng 17th Floor, C. M. A. Building 64 Connaught Road Central Hong Kong Telephone: 2529 9191 Facsimile: 2529 9116 ========= I N D I A ========= CHALLAKERE URBAN: License Cancelled Due to Insolvency ----------------------------------------------------- After determining the insolvent position of The Challakere Urban Co-operative Bank Ltd., Challakere (Karnataka), the Reserve Bank of India decided to cancel CUCB's license on August 3, 2006. The Reserve Bank said that it opted to shut down CUCB's operations as CUCB has already caused inconvenience to its depositors after several attempts to revive its operations failed. The Registrar of Co-operative Societies, Karnataka, has also been requested to issue an order to wind up CUCB and to appoint a liquidator. CUCB was granted a license by the Reserve Bank on December 9, 1987, to commence banking business. However, the statutory inspection of the bank, conducted with reference to its financial position as on September 30, 2003, revealed several irregularities in CUCB's functioning. Due to these irregularities, the Registrar of Cooperative Societies for Karnataka superseded the Board of Directors on October 27, 2003. A further scrutiny of CUCB's books in August 2004 revealed that the bank was facing liquidity problems. A subsequent inspection of the bank conducted by the Reserve Bank with reference to its financial position as on March 31, 2005, revealed further deterioration in the realizable value of capital and reserves leading to erosion of deposits to the extent of 100% of its total deposits. The Reserve Bank issued a notice to the bank on April 13, 2006, asking it to show cause as to why its license should not be cancelled. CUCB's reply to the Show Cause Notice was examined and was found unacceptable. As the realizable value of CUCB's paid-up capital and reserves was negative and the chances of its revival were remote in the absence of a viable action plan, the Reserve Bank decided to cancel CUCB's license to protect the interests of depositors. With the cancellation of its license and after commencement of liquidation proceedings, the process of paying the bank's depositors will be set in motion. Further inquiries may be addressed to: Shri C.R.G. Nair Deputy General Manager Urban banks Department Reserve Bank of India 10/3/8 Nrupathunga Road Bangalore 560 001, India Telephone: (080) 22291696 Fax: (080) 22293668/22210185 e-mail address: crgnair@rbi.org.in CITY UNION BANK: Fitch Affirms D/E Individual Rating ---------------------------------------------------- Fitch Ratings, on August 4, 2006, affirmed the 'A(ind)' National Long-term rating of City Union Bank Limited ("CUB") and the 'A(ind)' rating of its INR500 million subordinated debt programme. The outlook on the ratings is Stable. The Bank's Individual and Support ratings have also been affirmed at 'D/E' and '5', respectively. City Union Bank's ratings reflect its small regional franchise, reasonably high profitability and average, but improving asset quality. Its net interest margin is high due to healthy yields on loans to small- and medium-sized enterprises, despite its higher cost of funds compared to its peers. However, the Bank's expansion plans outside its home state as well as increasing deposit costs are likely to moderate the NIM in future. The high NIM, coupled with relatively low market risk on its treasury portfolio, has translated into above-average return on assets for City Union Bank. Asset quality has been improving on the back of better credit appraisal and loan monitoring procedures, as well as higher recoveries and write-offs. However, the bank's gross NPL ratio and loan loss reserve coverage remain poorer than system medians. The bank plans to tighten its appraisal of smaller exposures and to review delegated sanction limits to reduce slippages. The Bank's capitalization is comfortable in relation to its current scale of operations, and its equity of INR2.9 billion at March 2006 is only marginally less than the INR3 billion regulatory requirement. Higher capital requirements due to business growth and tightening regulations will be met by issuance of subordinated debt. The Bank has also announced plans to make a preferential issue of equity to institutional investors in fiscal 2007. City Union Bank is an "old private bank" set up in 1904 in the south Indian state of Tamil Nadu. The Bank's shareholding is diversified and its shares have been listed on the local bourses since 1998. About 75% of City Union Bank's deposits and loans are sourced from its home state of Tamil Nadu, and 80% of its business is covered by 'core banking' software. SHRIRAM SAHAKARI: Awaits Official Liquidator -------------------------------------------- The liquidation of Shriram Sahakari Bank Ltd has been put on hold pending the appointment of a liquidator by the State Cooperative Department, Business Standard reveals. As reported by the Troubled Company reporter - Asia Pacific on June 19, 2006, the Reserve Bank of India cancelled Shriram Bank's license on June 15, 2006, after all efforts to revive the bank failed. According to Business Standard, Shriram Bank failed to recover outstanding loans worth INR110 crore against a deposit base of INR90 crore. The Reserve Bank had decided to put the Bank in liquidation after determining that the appointment of an administrator will not be enough to revive the Bank's operations, Business Standard says. However, the liquidation process had stalled due to the absence of a liquidator. As of July 28, 2006, the Commissioner of the Co-operative Department has not moved to appoint a liquidator for Shriram Bank despite calls from government authorities, Business Standard adds. ================= I N D O N E S I A ================= MEDIA NUSANTARA: Puts Up Bond Issue Worth IDR2 Trillion ------------------------------------------------------- PT Media Nusantara Citra offered a bond issuance worth IDR2.08 trillion to investors, and has so far attracted IDR1.36 trillion in orders, Reuters News states. According to a report by the Troubled Company Reporter - Asia Pacific on July 28, 2006, proceeds from the bond will mainly be used to refinance existing debt, the planned acquisition of a 40% stake in Indovision, a local pay-TV company, and general corporate purposes. The Company still has to set yield guidance on the five-year bond, which was given a B+ rating by Standard & Poor's Rating Services, although there are speculations that it would produce a yield of up to 10%. The bond is set to be priced next week, Reuters adds. About Media Nusantara Headquartered in Jakarta, PT Media Nusantara Citra - http://www.mnc.co.id/-- is an integrated media company with operations in television broadcasting network, radio and print media. It is the leader in Indonesia's FTA TV broadcasting market, owning 3 FTA TV networks out of a total of 11, and captured the largest audience and ADEX shares in 2005. MNC is 100% owned by PT Bimantara Citra Tbk, which is listed on Jakarta Stock Exchange. Moody's Investors Service assigned a provisional (P)B1 corporate family rating to PT Media Nusantara Citra and a (P)B1 rating with a stable outlook to the Company's proposed IDR2.08-trillion senior secured bonds, which will be guaranteed and secured by the shares of all of MNC's operating subsidiaries except PT Rajawali Citra Televisi Indonesia and PT Cipta Televisi Pendidikan Indonesia. ========= J A P A N ========= JAPAN AIRLINES: Trims 1st Quarter Loss by 30% to JPY27 Billion -------------------------------------------------------------- Japan Airlines Corp. said that it had reduced its first-quarter 2006 loss by 30% to JPY26.78 billion, from a JPY38.38-billion loss for the same quarter in 2005, on a hike in its fuel surcharges and reduced wages, Bloomberg News reports. Crisscross News says that the Company's pre-tax loss for the April-June 2006 period stood at JPY35.6 billion on a 3.7% increase in operating revenues to JPY522.22 billion. According to JAL current president Haruka Nishimatsu, the recent safety mishaps that have caused its clients to shift to rival All Nippon Airways Co. have adversely affected the Company's operations. In order to narrow potential losses, the Company implemented these actions: -- a 10% salary cut for all employees in April 2006, despite strong opposition from labor unions; -- an increase of JPY6,500 for fuel surcharges on international flights as of March 1, 2006, and a JPY1,500 fuel surcharge hike on domestic flights from April 1, 2006; and -- the suspension of four unprofitable overseas routes, and reduction of its Tokyo-London flight to one flight per day. Bloomberg says that the number of JAL's domestic passengers had dropped 1.6% to 10.4 million for the first quarter this year, although revenues rose 0.4% to JPY151 billion on fare increases, which improved sales by JPY7.5 billion. The Company's international passenger volume also dropped 5.8% that same period to 13.19 million passengers, although strong demand for flights to China boosted revenues to JPY167.8 billion. JAL has maintained its forecast to earn a net income of JPY3 billion this year, a sharp turnaround from a JPY47-billion loss posted in 2005. About Japan Airlines Tokyo-based Japan Airlines International Company, Limited -- http://www.jal.com/en/-- was created as a result of the merger of Japan Airlines and Japan Air Systems to boost domestic coverage. As of March 31, 2006, JAL's debt amounted to JPY1.93 trillion, whereas shareholders' equity stood at JPY148.1 billion. The Troubled Company Reporter - Asia Pacific stated on May 12, 2006, that JAL posted a consolidated net loss of JPY47.24 billion for the business year 2005 ended March 31, 2006, due to safety-related incidents in 2005 that caused passengers to shift to its rival All Nippon Airways, and an increase in aviation fuel costs. * * * Fitch Ratings Tokyo analyst Satoru Aoyama said that the Company's debt obligations and expenses for new aircraft have placed it in an unfavorable financial position. Fitch assigned a BB- rating on the Company, which is three notches lower than investment grade, whereas Moody's Investors Service gave Ba3 senior unsecured and issuer ratings for Japan Airlines International Co., Ltd., as well as its Ba3 issuer rating for Japan Airlines Domestic Co., Ltd. On July 20, 2006, Standard & Poor's Ratings Services had affirmed its B+ long-term corporate credit and senior unsecured debt rating on the Company. ========= K O R E A ========= DONG-AH CONSTRUCTION: Preferred Bidder To Be Known in September --------------------------------------------------------------- Creditors of Dong-Ah Construction Industrial Co. are expected to pick a preferred bidder early in September 2006, The Korea Herald says. Korea Asset Management Corp., which s is arranging the Dong-Ah sale along with Samjong KPMG FAS Inc., said in a statement that contenders must hand in their bids by August 29, 2006. The inspection of proposals is expected to last a week. As reported in the Troubled Company Reporter - Asia Pacific on June 21, 2006, Dong-Ah has attracted 14 potential bidders since its creditors announced that they are going to auction a controlling stake in the construction company. According to KAMCO's statement, once the future sales schedule is fixed with the prospective buyer, the creditors will apply for a court receivership to turn around the construction company. A KAMCO official, however, noted that the task of getting the court's approval to put the company under court receivership will be "daunting." The Korea Herald says that although Dong-Ah had to hand over a lucrative construction project in Libya to Korea Express Co., the builder's strong track record in major construction projects and technological prowess should make it an attractive target for an acquisition, industry observers say. The Herald also notes that the builder's strong brand power both at home and offshore markets and its nuclear power plant construction technology should also entice potential buyers. According to a March 8, 2006 TCR-AP report, Triumph Investments Limited, a Goldman Sachs Group Inc. fund based in Ireland, is the biggest creditor in Dong Ah, with 29.06% of the builder's total debt. KAMCO, which is a state-run corporate restructuring agency, is the Company's second-largest creditor, with 19.56%. Both firms put billions of won in public funds into Dong-Ah to rescue the company. If the sale goes smoothly, they will be able to retrieve part of the bailout funds. The Korea Times recounts that creditors originally planned to liquidate Dong-Ah, but KAMCO and Goldman Sachs reached an agreement in late 2005 to revive it, given its potential and know-how in the engineering field. About Dong-Ah Construction Dong-Ah Construction Industrial Co., Ltd. -- http://www.dongah.co.kr/-- is a construction firm that focuses on fields such as civil engineering, architectural and electrical works, and plant constructions. The Company's projects consist of land developments, bridges, tunnels, subways, apartment complexes, and commercial buildings. In addition, Dong-Ah is building the Great Man-made River in Libya. After being hit hard by the 1997-98 Asian financial crisis, the firm underwent debt workout programs, but failed to overcome financial trouble amid soured investor sentiment for the construction industry. It was officially declared bankrupt in May 2001. Dong-Ah's stock was suspended from trading on Feb. 7, 2001, after an accounting firm advised a court that closing the Company would cost less than trying to keep it afloat. Minority shareholders owned 88% of the Company's outstanding shares, according to the Company's financial statements in 1999. In 2005, Goldman Sachs Group Inc. and Korea Asset Management Corp., the main creditors of Dong-Ah, asked a Seoul court to halt bankruptcy filing procedures for the construction company and place it under court receivership, to be sold later. Claims by all creditors against the Company were KRW4.05 trillion, but industry estimates that the Company is valued at more than KRW400 billion, including premiums to business rights. Of Dong-Ah's assets, only KRW289.7 billion have not been pledged as security, according to the Company's financial statement as of March 31, 2006. KANA SOFTWARE: Posts US$1-Million Net Loss in First Quarter 2006 ---------------------------------------------------------------- KANA Software, Inc., filed its first quarter financial report for the three months ended March 31, 2006, with the Securities and Exchange Commission. The Company reported a US$1,078,000 net loss on US$11,433,000 of total revenues for the first quarter ended March 31, 2006, compared with a US$13,800,000 net loss on US$10,071,000 of total revenues for the same period in 2005. At March 31, 2006, the Company's balance sheet showed US$32,454,000 in total assets and US$42,414,000 in total liabilities, resulting in a US$9,960,000 stockholders' deficit. The Company also had a US$4,304,486,000 of accumulated deficit on that date. The Company's March 31 balance sheet also showed strained liquidity with US$18,297,000 in total current assets available to pay US$36,671,000 in total current liabilities coming due within the next 12 months. Full-text copies of the Company's financials are available for free at http://ResearchArchives.com/t/s?efd Going Concern Doubt As reported in the Troubled Company Reporter on July 12, 2006, KANA Software, Inc.'s auditor, Burr, Pilger & Mayer LLP, expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statement for the year ending Dec. 31, 2005. Burr Pilger pointed to the Company's recurring losses from operations, net capital deficiency, negative cash flow from operations and accumulated deficit. KANA Software, Inc., provides multi-channel customer service software applications. KANA's integrated solutions allow companies to deliver service across all channels, including email, chat, call centers and Web self-service, so customers have the freedom to choose the service they want, how and when they want it. The Company's target market is the Global 2000 with a focus on large enterprises with high volumes of customer interactions, such as banks, telecommunications companies, high- tech manufacturers, healthcare organizations and government agencies. The Company is headquartered in Menlo Park, California, with offices in Japan, Hong Kong, Korea and throughout the United States and Europe. LG TELECOM: To Halt Handset Subsidy Hike ---------------------------------------- LG Telecom Ltd. is expected to refrain from increasing handset subsidies in the second half, mindful of the snowballing marketing costs that hurt its earnings in the second quarter, The Korea Herald reports. According to the report, LG Telecom, together with SK Telecom and KTF, posted disappointing earnings in the second quarter largely due to bigger marketing expenses after the Government lifted a three-year ban on the handset subsidies in March 2006. The Herald explains that the Ministry of Information and Communication has long blocked the carriers from offering subsidized handsets in return for restrictive membership conditions such as obligatory subscription for up to two years. The lifting of the ban, however, is just limited to the handset subsidies to existing long-term subscribers, not the one for attracting new users. The three mobile carriers, however, keep increasing handset subsidies to retain their subscribers at a time when the domestic mobile phone market is near a saturation point. LG Telecom raised the handset subsidy for its subscribers by up to KRW100,000 in July 2006. About LG Telecom Headquartered in Kangnam-gu, Seoul, South Korea, LG Telecom Ltd. -- http://www.lgtelecom.com/-- is a telecommunications and mobile phone operator controlled by the LG Group, one of the country's largest chaebol. It is Korea's smallest wireless operator. LG Telecom became one of the first companies to launch a commercial 3G service using PCS technology. In 1997, this was followed up by launching the second PCS network, offering greatly increased data transmission speeds. LG Telecom also offers a variety of internet services. BankOn is one of the most popular mobile banking services in South Korea and Musicon is a popular instant messenger. Moody's Investor Service gave LG Telecom a 'Ba2' Issuer Rating, a 'Ba2' Long-Term Corporate Family Rating and a 'Ba2' Senior Unsecured Rating. Standard & Poor's Ratings Services gave LG Telecom 'BB+' Long- Term Foreign Issuer Credit and Long-Term Local Issuer Credit Ratings. Fitch Ratings gave the Company 'BB' Long-Term Foreign Issuer Default and Foreign Currency Long-Term Default Ratings. NCSOFT CORP: Posts Worst-Ever Quarterly Results ------------------------------------------ Poor sales of new games pushed NCSoft Corp.'s business performance down in the second quarter of 2006, the Chosun Ilbo says. According to the report, NCSoft posted a net loss of KRW200 million in the quarter ending June 30, 3006, compared with the KRW20-billion net profit it posted for the previous corresponding period. Chosun Ilbo notes that the company has been posting net losses for every quarter since it has been listed in 2000, except for the second quarters of 2001 and 2005. Sluggish sales of new games that failed to capture customers' imagination gave NCSoft this worst net loss yet. Operating profit has also been on the decline for seven straight quarters since the fourth quarter of 2004. The Chosun Ilbo reports that no new source of profits is in sight. NCSoft's next big product "Aion" will not be provided on a trial basis until late this year, while the game "Autoassault," which debuted with big fanfare overseas, has lost the company a vast amount of money. A key problem is that consumers' tastes have changed from massive multiplayer online role-play games or MMPORG like "Lineage" to simple and casual soccer, gun fighting and driving games. According to the company's press release, second quarter 2006 sales are at KRW85.5 billion (US$88.6 million), operating income at KRW1.7 billion (US$1.8 million) and a pre-tax income of KRW4 billion (US$ 4.1 million). Compared to the previous quarter, sales increased 10% while operating and pre-tax income declined 81% and 61%, respectively. Sales for the second quarter increased by 7% from the same period last year while operating and pre-tax income declined 90% and 79%, respectively year to year. By region, domestic sales amounted to KRW52.9 billion, a decline of 4% from the previous quarter and 3% from the previous year. Sales in North America and Europe recorded strong growth of 39% and 144% to KRW15.7 billion and KRW9.3 billion, lifted by the successful introduction of Guild Wars Factions. On a year to year comparison, sales in North America grew by 10% and in Europe grew by 192%. Steady sales of the Lineage series and Guild Wars led to sales of KRW 7.5 billion (US$7.8 million) in Japan, similar to the first quarter and the same period one year ago. The percentage breakdown of regional sales show almost half of all sales occurring overseas: Korea with 55% of total sales, North America with 18%, Europe with 11%, Japan with 9% and royalties with 7%. By game, Lineage and Lineage II posted sales of KRW28.5 billion and KRW 28.4 billion, down 5% and 3% respectively from the previous quarter and unchanged year to year. Sales of City of Heroes(R)/City of Villains(R) were down quarter to quarter by 15% to KRW5.5 billion and down 5% year to year. Sales of Guild Wars showed a significant increase quarter to quarter, growing by 160% to KRW16.4 billion while growing 71% year over year. The strong numbers were spurred by the successful April launch of Guild Wars Factions in North America and Europe. About NCsoft Headquartered in Seoul, South Korea, NCsoft -- http://www.ncsoft.com/-- is the world's largest independent online game company. Established in 1997 as a systems integration company, NCsoft leapt forward to become the world's leading online game software company. In Korea, its blockbuster hit game "Lineage" commands a 47% market share and attracts the greatest number of concurrent users in the world. Currently there are more than four million active subscribers worldwide playing Lineage. NCsoft began to suffer from slow sales since late 2005. Its latest game "Auto Assault" did not do as well as expected. Another project, "Tabula Rasa," had also been delayed, affecting the firm's profitability. Identity Theft NCsoft is facing an identity theft class action. The Class Action Reporter stated on March 30, 2006, that 8,574 people are seeking US$1,026 each in damages for their stolen identities. The suit arose after it was discovered that some players of online game "Lineage" were using identities of others that they obtained from the Internet or through other illegal channels. It estimated up to 1.22 million identities theft. The suit accused the company of failing to verify the identifications of members when they registered. Lineage is a multi-player online role-playing game in which gamers can explore a mythical fantasy world and befriend new people while also engaging in combat. In a subsequent report on May 4, 2006, the CAR said that the company plans to appeal a court ruling that ordered it to pay about US$500 each to five players of its popular online game, "Lineage II." According to the CAR report, while the damages awarded were small, the case is dangerous for NCsoft "because it could provide fuel for claimants who are demanding millions of dollars in another, much larger, identity theft case." The company, which has strongly denied liability, would potentially face claims of more than US$1 billion if the class action were to succeed in its present form. NETIAN: Internet Portal Shuts Down After Seven Years ---------------------------------------------------- The fate of Internet portal Netian, is uncertain, the Chosun Ilbo reports. Netian, which recently shut down its operations, is tentatively resuming operations due to strong protests from its seven million e-mail and other service users. The portal is among the oldest of Korea's dot-com startups of the late 1990s. Netian went offline suddenly earlier this month, but resumed services around four days later. According to its Web host provider, Inet Hosting, the shutdown was due to overdue payments. The host said that critical media reports and public opinion persuaded Netian to pay a small amount to temporarily continue its services, according to the JoongAng Daily. The Chosun Ilbo adds that the portal reportedly owes its network host several million dollars in unpaid usage fees. For the sake of its regular users, Netian's services will be available until August 15, but if the company does not pay a certain amount to Inet by that time, the site will be closed permanently. The JoongAng Daily believes that Netian's owners seem to have folded up already. A phone call to its corporate offices merited an automated voice announcing that the number is no longer in service, while The Daily also found out that the company has not been paying utility costs for five months, a bill that now amounts to KRW30 million. About Netian Netian -- http://www.netian.com/-- was founded in 1997 with KRW330 million in capital. It has rapidly become the front- runner in Korea's wire and wireless world, embracing E-Commerce and other customer orientated services with a particular emphasis on Communities of interest. At its peak, it had 7.3 million subscribers, but a lack of new profit sources led to a capital reduction in 2003 and later a takeover by the Kosdaq-listed firm Cosmo CNT, a security products and services provider. Cosmo has not decided what to do with Netian, although it says it is having accounting firms conduct an inspection of the site's debts to see whether the company should continue to support it. SANDISK CORP: Posts US$96 Million Second Quarter 2006 Net Income ---------------------------------------------------------------- SanDisk Corporation reported a net income of US$96 million for the second quarter ended July 2, 2006. The Company disclosed that total second quarter revenues increased 40% on a year-over-year basis to US$719 million. The Company also reported GAAP operating income for the second quarter of 2006 of US$129 million or 18% of revenues and non- GAAP operating income of US$159 million or 22% of revenue compared to US$106 million or 21% of revenue in the second quarter of 2005. Cash flow from operations was US$59 million, and total cash and investments increased sequentially by US$933 million to US$2.7 billion. At July 2, 2006 the Company's balance sheet showed total assets of US$4.8 billion and total liabilities of US$1.7 billion. The Company also disclosed that it signed with Toshiba a definitive agreement to build a new 300-millimeter NAND wafer fabrication facility in Yokkaichi, Japan, with initial production expected to begin in the fourth quarter of 2007. Headquartered in Milpitas, Calif., SanDisk Corp. (NASDAQ:SNDK) -- http://www.sandisk.com/-- manufactures various formats of flash memory cards for use in consumer electronics products, including digital cameras, mobile phones, and game systems. In addition, the company produces devices such as USB drives and MP3 music players. SanDisk has worldwide locations in China, Ireland, India, Israel, Japan, Taiwan and Korea. * * * As reported in the Troubled Company Reporter on May 11, 2006, Standard & Poor's Ratings Services assigned its 'BB-' rating to Sunnyvale, California-based SanDisk Corp.'s proposed issue of $1.0 billion of senior unsecured convertible notes due 2013. The 'BB-' corporate credit rating on SanDisk was affirmed. The rating outlook is stable. SANDISK CORP: Acquiring msystems in All-Stock Deal -------------------------------------------------- SanDisk Corporation and msystems Ltd. have entered into definitive agreements for SanDisk to acquire msystems in an all- stock transaction. In the transaction, each msystems ordinary share will be converted into 0.76368 of a share of the Company's common stock, or a 26% premium over the average closing price of msystems' shares for the last thirty trading days. The transaction is expected to close in the fourth quarter of 2006. Eli Harari, the Company's chairman and chief executive officer said, "SanDisk and msystems, over the past 18 years, have been leading innovators in the flash storage market. This strategic acquisition will give us the critical mass and complementary products, customers, channels, technology and manufacturing base to take our shared vision to the next level. The NAND flash data storage business is in its early stages and we believe the market opportunity is largely untapped." Mr. Harari further said, "msystems is a leader in flash memory systems addressing mobile, portable and embedded markets and they have a strong team, significant IP and important OEM customers. SanDisk has a record of creating new market categories, world-class manufacturing capabilities and leading market share in the retail channel. Both companies are noted for their relentless innovation, and this acquisition is intended to further accelerate our pace of innovation. In the near term, this transaction better positions SanDisk to serve the expanding storage needs of handset manufacturers and mobile network operators. In the long term, the combination with msystems will be a catalyst in the development of next generation flash enabled consumer applications. We are extremely excited about joining forces with the msystems team to achieve our shared vision. We are committed to serving msystems' OEM customers after the transaction closes." msystems also reported its intention to release its second quarter 2006 financial results on Aug. 7, 2006. About msystems Ltd. msystems (NASDAQ:FLSH) has been transforming raw flash into smarter storage solutions since 1989. From embedded flash drives deployed in mobile handsets to U3 USB smart drives designed for leading global brands, msystems creates, develops, manufactures and markets smart personal storage solutions for a myriad of applications. Headquartered in Milpitas, Calif., SanDisk Corp. (NASDAQ:SNDK) -- http://www.sandisk.com/-- manufactures various formats of flash memory cards for use in consumer electronics products, including digital cameras, mobile phones, and game systems. In addition, the company produces devices such as USB drives and MP3 music players. SanDisk has worldwide locations in China, Ireland, India, Israel, Japan, Taiwan and Korea. * * * As reported in the Troubled Company Reporter on May 11, 2006, Standard & Poor's Ratings Services assigned its 'BB-' rating to Sunnyvale, California-based SanDisk Corp.'s proposed issue of $1 billion of senior unsecured convertible notes due 2013. The 'BB-' corporate credit rating on SanDisk was affirmed. The rating outlook is stable. SK CORP.: Partners With LG Corp. in Kazakhstan Project ------------------------------------------------------ SK Corp. and LG Corp. will jointly explore an onshore oil field in Kazakhstan, Yonhap News said, citing LG Corp. The two companies will have a 50% stake each in the project. The oil field, located in Western Kazakhstan, is estimated to have a deposit of 250 million barrels of oil. The possibility of discovering oil in the field is high, because large oil fields with reserves of 20-30 billion barrels are located nearby, LG Corp. said. The companies will conduct a geological survey in the second half of this year and likely engage in drilling early next year, Yonhap adds. About SK Corporation Headquartered in Seoul, South Korea, SK Corporation -- http://eng.skcorp.com/-- is an energy and petrochemical company with 4,916 employees and 22 offices around the world in 2005. The company is strategically positioned as Korea's largest and Asia's leading refiner next to Sinopec and PetroChina. SK Corp. currently explores, develops and produces oil in 13 nations that span Africa, Asia and the Americas, including Russia, Vietnam, Indonesia, Australia, Brazil, Cote d'Ivoire, United States, and Peru. Moody's Investors Service gave SK Corp. a 'Ba1' Foreign Currency Long-Term Debt Rating effective February 17, 2006. =============== M A L A Y S I A =============== ALLIANCE MERCHANT (ASING): Members Opt for Wind-Up -------------------------------------------------- On August 1, 2006, members of Alliance Merchant Nominees (Asing) Sdn Bhd decided to voluntarily wind up the Company's operations. In this regard, Teoh Boon Chuan, of BC Teoh & Co, was named as official liquidator. The Liquidator can be reached at: BC Teoh & Co No. 6-1A, Jalan 9/223E Taman Danau Kota, Setapak Kuala Lumpur 53300 Malaysia Telephone: 03-4142 7633 Fax: 03-4149 7633 ALLIANCE MERCHANT (TEMPATAN): Commences Wind-Up Process ------------------------------------------------------- On August 1, 2006, Alliance Merchant Nominees (Tempatan) Sdn Bhd was placed under members' voluntary wind-up as its operations have been dormant. Accordingly, Teoh Boon Chuan, of BC Teoh & Company, was appointed as liquidator. The Liquidator can be reached at: BC Teoh & Co No. 6-1A, Jalan 9/223E Taman Danau Kota, Setapak Kuala Lumpur 53300 Malaysia Telephone: 03-4142 7633 Fax: 03-4149 7633 ALLIANCE MERCHANT SECURITIES: Placed Under Voluntary Wind-Up ------------------------------------------------------------ Alliance Merchant Securities Holdings Sdn Bhd was placed under members' voluntary wind-up on August 1, 2006, as its operations have been dormant. Accordingly, Teoh Boon Chuan, of BC Teoh & Company, was appointed as liquidator. The Liquidator can be reached at: BC Teoh & Co No. 6-1A, Jalan 9/223E Taman Danau Kota, Setapak Kuala Lumpur 53300 Malaysia Telephone: 03-4142 7633 Fax: 03-4149 7633 ANTAH HOLDINGS: Court Adjourns Hearing of ECK Case to October 2 --------------------------------------------------------------- The Troubled Company Reporter - Asia Pacific reported on June 23, 2006, that the Kuala Lumpur High Court decided to extend the Ad-Interim Injunction it granted to Antah Holdings Berhad's subsidiary until August 1, 2006. The Court also fixed a full Inter-Parte Injunction on that date. In an update, the High Court has adjourned to October 2, 2006, the hearing of the legal matter between Antah Holdings' subsidiary Kaseh Lebuhraya Sdn Bhd and ECK Construction Sdn Bhd. Therefore, the Ad-Interim Injunction obtained by Kaseh Lebuhraya against ECK is extended until the disposal of the matter on October 2. The TCR-AP previously reported that Kaseh Lebuhraya obtained on June 5, 2006, an Ad-Interim Injunction against ECK Construction Sdn Bhd preventing ECK from filing a wind-up petition against Kaseh. ECK is claiming MYR19.8 million from Kaseh as payment for construction fees. ECK served the notice on Kaseh on May 16, 2006. According to the TCR-AP, Kaseh, however, disputed ECK's claim as Kaseh's previous sub-contractor had already settled the full outstanding amount owed to ECK. Thus, Kaseh insisted that there is no debt to which it is liable to ECK. Kaseh asserted that ECK's statutory right under Section 218 of CA 1965 does not arise. The TCR-AP further noted that Kaseh has also commenced a legal action against ECK for a court declaration that it does not owe any amount to ECK. Kaseh is asking MYR300,000 from ECK as payment for damages. About Antah Holdings Headquartered in Petaling Jaya, Selangor Darul Ehsan, Malaysia, Antah Holdings Berhad -- http://www.antah.com.my/-- manufactures and trades pharmaceutical products and fluid engineering and manufacturing. The Company's other activities include retailing of houseware and kitchenware, property development, insurance broking, provision of management services, and investment holding. The Group discontinued its beverage and security services operations. The Group operates in Malaysia, Australia, United Kingdom, and Singapore. The Company's March 31, 2006, balance sheet showed total assets of MYR698,224,000 and total liabilities of MYR1,051,307,000 resulting into a shareholders' deficit of MYR353,083,000. The Company's default on its credit facilities totaled MYR286,442,000, as of April 30, 2006. ANTAH HOLDINGS: Judge Rejects Azam's Injunction Request ------------------------------------------------------- On July 27, 2006, the Learned High Court Judge of the Kuala Lumpur High Court denied an injunction sought by Azam Developer & Construction Sdn Bhd in relation to a Summons in Chambers against Antah Holdings Berhad's wholly owned subsidiary, Kaseh Lebuhraya Sdn Bhd. The Learned Judge has adjourned the hearing of the Summons in Chambers on September 19, 2006. The Troubled Company Reporter - Asia Pacific reported on August 1, 2006, that Kaseh Leburaya had received a Writ of Summons dated July 20, 2006, from Azam Developer & Construction Sdn Bhd. The Plaintiff asserted a MYR19.4-million compensation claim plus interests at a rate determined by the Kuala Lumpur High Court. According to the TCR-AP report, Azam Developer also sought an injunction order restraining Kaseh from proceeding with and completing the sale of its shares in Lebuhraya Kajang Seremban Sdn Bhd to Fancy Celebrations Sdn Bhd without Azam Developer's consent until Kaseh pays the MYR19.4 million. In addition, Azam Developer wants Kaseh barred from selling and dealing with its shareholding in Lekas without Azam Developer's consent until the compensation sum is settled. Azam Development further asked payment for legal costs and any other relief as the Court may deem fit. About Antah Holdings Headquartered in Petaling Jaya, Selangor Darul Ehsan, Malaysia, Antah Holdings Berhad -- http://www.antah.com.my/-- manufactures and trades pharmaceutical products and fluid engineering and manufacturing. The Company's other activities include retailing of houseware and kitchenware, property development, insurance broking, provision of management services, and investment holding. The Group discontinued its beverage and security services operations. The Group operates in Malaysia, Australia, United Kingdom, and Singapore. The Company's March 31, 2006, balance sheet showed total assets of MYR698,224,000 and total liabilities of MYR1,051,307,000 resulting into a shareholders' deficit of MYR353,083,000. The Company's default on its credit facilities totaled MYR286,442,000, as of April 30, 2006. ANTAH HOLDINGS: HSBC Withdraws Writ of Summons ---------------------------------------------- On August 3, 2006, HSBC Bank Malaysia Berhad confirmed that it will withdraw its Writ of Summons dated July 19, 2006, against Antah Holdings Berhad's wholly owned subsidiary, Kaseh Lebuhraya Sdn Bhd. The Troubled Company Reporter - Asia Pacific reported on August 3, 2006, that HSBC served a Writ of Summons on Kaseh Lebuhraya, asserting a MYR30,380,152 claim. The report noted that Antah Holdings said it is negotiating with HSBC to resolve the matter amicably. About Antah Holdings Headquartered in Petaling Jaya, Selangor Darul Ehsan, Malaysia, Antah Holdings Berhad -- http://www.antah.com.my/-- manufactures and trades pharmaceutical products and fluid engineering and manufacturing. The Company's other activities include retailing of houseware and kitchenware, property development, insurance broking, provision of management services, and investment holding. The Group discontinued its beverage and security services operations. The Group operates in Malaysia, Australia, United Kingdom, and Singapore. The Company's March 31, 2006, balance sheet showed total assets of MYR698,224,000 and total liabilities of MYR1,051,307,000 resulting into a shareholders' deficit of MYR353,083,000. The Company's default on its credit facilities totaled MYR286,442,000, as of April 30, 2006. EKRAN BERHAD: Faces Wind-Up Proceedings --------------------------------------- United Overseas Bank reportedly filed a wind-up petition against Ekran Berhad, the New Straits Times reveals. The petition will be heard on September 5, 2006. Under the petition, United Overseas Bank asserts an MYR8,975,649 claim plus interest. The Bank filed the wind-up petition after it rejected the terms and amount of settlement the Company had proposed to pay its debt to the Bank. However, both parties are still in talks to settle the matter. In a statement to the Bursa Malaysia Securities Berhad, the Company says it will work to strike aside the petition on the grounds that it was not properly served on the Company. As of August 3, 2006, none of the Company's directors or officers received the winding-up petition. About Ekran Berhad Ekran Berhad is a Malaysian company engaged in investment holding and the provision of management services to its subsidiary companies. Through its subsidiaries, the Company is engaged in property development; the provision of property management services; timber logging and saw milling; the sale of timber products, and the operation of oil palm plantations. The Company's operations are mainly concentrated in Malaysia, China and the Philippines. KRAMAT TIN: Scheme of Arrangement Awaits Court's Approval --------------------------------------------------------- Kramat Tin Dredging Berhad is waiting for the High Court of Malaya's approval of the Company's scheme of arrangement. As reported by the Troubled Company Reporter - Asia Pacific on July 27, 2006, Kramat Tin's shareholders on July 26, 2006, approved the Scheme, which is part of the Company's restructuring plan. TCR-AP disclosed that the Plan was unveiled on April 24, 2004 and was approved by the Securities Commission on June 9, 2005. About Kramat Tin Dredging Headquartered in Kuala Lumpur, Malaysia, Kramat Tin Dredging Berhad is currently in the process of identifying suitable business opportunities. The Company ceased its mining operations in 1988. In 2001, Bursa Malaysia Securities Berhad classified Kramat Tin as a Practice Note 10 company, given its inadequate level of operations. To avoid being de-listed, Kramat Tin, in 2004, entered into an arrangement to restructure its operational and financial position. On April 24, 2004, the Company's restructuring plan was unveiled and subsequently approved by the Securities Commission on June 9, 2005. For the financial year ended December 31, 2005, Kramat Tin registered a smaller loss of MYR524,000 compared with the MYR1.3-million net loss in 2004. MALAYSIA AIRLINES: Wins One Suit Against Vantage; Loses Two ----------------------------------------------------------- Malaysia Airlines had filed with the Court of First Joint District, Dhaka Bangladesh, a suit against Vantage Aviation Services & Anor in Suit 62/2000 for outstanding dues on passenger and Cargo AWB including interest. Vantage, on the other hand, had counter-claimed Malaysia Airlines in Suit 4/2001 and 259/2000 for a declaration that the termination of Vantage as the GSA for Malaysia Airlines was void and for the recovery of commissions due to Vantage on passenger ticket sales, and AWB as well as general damages. On August 2, 2006, Malaysia Airlines disclosed that a judgment had been entered in favor of Malaysia Airlines for Suit 62/2000 and in favor of Vantage for Suit 4/01 and 259/2000 on 24/5/2006. The Judgment in favor of Malaysia Airlines is for the sum of MYR2,268,037 whilst the judgment against the carrier is for a sum of MYR11,688,971. Both judgments were decreed with interest at the rate of 15% per annum. Malaysia Airlines has since filed an appeal to the High Court against the Judgment. The carrier's solicitors in Dhaka advised that the Company has a meritorious appeal. 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. METROPLEX BERHAD: Has Yet to Submit Restructuring Proposal ---------------------------------------------------------- Metroplex Berhad has until December 2006 to submit its proposed financial regularization scheme to relevant authorities for approval. As reported by the Troubled Company Reporter - Asia Pacific on July 10, 2006, the Company is negotiating with its lenders on the Proposed Composite Scheme of Arrangement to regularize its financial condition. According to the TCR-AP, Metroplex's unaudited quarterly results for the financial year ended January 31, 2006, revealed that the Company has a deficit in the shareholders' equity on a consolidated basis amounting to MYR196.3 million. The deficit in the shareholders' equity is mainly attributable to the Metroplex Group's accumulated losses exceeding the Group's paid- up share capital and reserves. As such, Metroplex is an affected listed issuer pursuant the Listing Requirements of Bursa Securities. As an affected listed issuer, Metroplex is required to submit a regularization plan to relevant authorities for approval and implement the Plan within a timeframe stipulated by the approving parties. About Metroplex Berhad Headquartered in Kuala Lumpur, Malaysia, Metroplex Berhad's activities are hotel and casino operations. Other activities include property investment, property development, provision of administrative services, general and building construction, leasing and financing, trading of building materials and operation of hotel management training school. Operations are carried out in Malaysia, Hong Kong, and the Philippines. On April 28, 2005, Morgan Stanley Emerging Markets Inc. had filed a wind-up petition against the Company with the Kuala Lumpur High Court. In the event the wind-up petition succeeds, the Company will be put into liquidation. Metroplex Berhad's April 30, 2006, balance sheet revealed total liabilities of MYR1,417,778,000 exceeding total assets of MYR1,214,518,000, resulting into a shareholders' deficit of MYR203,260,000. METROPLEX BERHAD: Deadline to Meet SPA Conditions Extended ---------------------------------------------------------- Metroplex Berhad is given until September 15, 2006, to fulfill the conditions of a sale and purchase agreement that the Company signed with Lembaga Kumpulan Wang Simpanan Pekerja. As reported by the Troubled Company Reporter - Asia Pacific on July 7, 2006, Metroplex was initially granted until July 31, 2006, to meet the SPA conditions. The Agreement is in respect of the proposed disposal by Metroplex Berhad's subsidiary, Metroplex Holdings, of a shopping complex known as "The Mall" to Lembaga for a total cash consideration of MYR438 million. The TCR-AP reported on June 23, 2006, that the Proposed Disposal has already gained the approvals of the Foreign Investment Committee and the Company's board of directors. The Proposal is still pending approval of the Kuala Lumpur High Court and Metroplex shareholders. About Metroplex Berhad Headquartered in Kuala Lumpur, Malaysia, Metroplex Berhad's activities are hotel and casino operations. Other activities include property investment, property development, provision of administrative services, general and building construction, leasing and financing, trading of building materials and operation of hotel management training school. Operations are carried out in Malaysia, Hong Kong, and the Philippines. On April 28, 2005, Morgan Stanley Emerging Markets Inc. had filed a wind-up petition against the Company with the Kuala Lumpur High Court. In the event the wind-up petition succeeds, the Company will be put into liquidation. Metroplex Berhad's April 30, 2006, balance sheet revealed total liabilities of MYR1,417,778,000 exceeding total assets of MYR1,214,518,000, resulting into a shareholders' deficit of MYR203,260,000. PAXELENT CORPORATION: Prepares to File Defense Against Writ ----------------------------------------------------------- On September 25, 2006, the Kuala Lumpur High Court will hear an application by Paxelent Corporation and SP Techvance Corporation Sdn Bhd to file its defense against a Writ taken by SP Techvance Corporation Sdn Bhd and Seri Platinum (M) Sdn Bhd in the Kuala Lumpur High Court. The matter was originally filed as an Originating Summons on June 21, 2004, and was converted into a Writ on May 9, 2006. As reported by the Troubled Company Reporter - Asia Pacific on May 19, 2006, each of the Plaintiffs is asserting a MYR1-million claim plus general and special damages costs. According to the TCR-AP, Paxelent and its legal counsel Cheng Kiat & Lim account to the two Plaintiffs all profits made from the disposal of the rights under the provisional allotment of the 5,737,400 rights issue shares. However, Paxelent does not admit liability to the claim and said it will "vigorously" defend itself. In view of the Originating Summons' conversion into a Writ, the Court has struck out the Plaintiff's application to cross- examine Cheng Kiat & Lim's witnesses with costs, the TCR-AP noted. 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. PROTON HOLDINGS: Creates System to Prevent Management Issues ------------------------------------------------------------ Proton Holdings Berhad taps external auditors to review its internal system, and moves to align corporate governance with current best practices, The Edge Daily reports. According to the Star Online, the external auditors will assist Proton in reviewing the Company's internal processes and procedures, to determine potential weaknesses and to identify the means to address the weaknesses. Proton managing director Syed Zainal Abidin Syed Mohamed Tahir tells Business Times that the Company has now adopted tighter systems to check any lapse in corporate governance in the future. He relates that as a first step, the Company had reshuffled its management committee and board at related subsidiaries. The Edge relates that Mr. Syed Zainal was responding to the cover story of The Edge titled "Proton Expose," involving a special investigation into the workings of Proton dating back to 2002 exposing a number of instances, decisions and actions taken by the management without the knowledge and approval of the Proton board. The story highlights several parts of a report by PricewaterhouseCoopers for Proton chairman Datuk Mohammed Azlan Hashim late last year, the Edge further relates. According to Business Times, the report by PwC -- which was hired by Proton on September 2, 2005, to review the period -- mentioned some projects that were implemented without proper consultation or consent. It also said billions of ringgit in expenditure was spent without in-depth discussion and that the previous board was unaware of certain legal problems the firm faced. Meanwhile, Bernama News quotes Proton as saying that it was too early to decide whether any legal action would be taken against the previous management after the third party report may have showed mismanagement in the Company's affairs from 1996 until late 2005. The Bernama notes that the Company did not rule out the possibility of going to court. About Proton Holdings Headquartered in Selangor Darul Ehsan, Malaysia, Perusahaan Otomobil Nasional Berhad or Proton Holdings Berhad -- http://www.proton-edar.com.my/-- is engaged in manufacturing, assembling, trading and provision of engineering and other services in respect of motor vehicles and related products. Its other activities include property development, trading of steel and related products, engine and technologies research, development of automotive related technologies, investment holding, importation and distribution of motor vehicles, related spare parts and accessories, holds intellectual property, provides engineering consultancy, operates single make race series and carries out specific engineering contracts. The Group's operations are carried out in Malaysia, England, Australia, Socialist Republic of Vietnam and the United States of America. Proton was reported to be among Malaysia's worst-performing companies in 2005, after competition from foreign carmakers and a lack of new models lost the firm local market share and subsequently led it into a loss. It has since brought in a new chief, sold its loss-making MV Agusta motorbike firm and pledged to find a new technology partner. The Company has been under increasing pressure, with its share of domestic sales falling to 44% from 75% over the past decade. The Troubled Company Reporter - Asia Pacific reported on May 4, 2006, that Proton was expected to finalize a recovery plan and seal an alliance with a strategic partner by the end of this year. ROTHPUTRA VENTURE MANAGEMENT: Initiates Voluntary Wind-Up --------------------------------------------------------- Rothputra Venture Management Sdn Bhd had commenced a voluntary wind-up of its operations on August 1, 2006. Since the Company has no business activity, it was proposed that it be voluntarily wound up pursuant to the Companies Act 1965 to save on yearly administrative costs. The liquidator can be reached at: BC Teoh & Co No. 6-1A, Jalan 9/223E Taman Danau Kota, Setapak Kuala Lumpur 53300 Malaysia Telephone: 03-4142 7633 Fax: 03-4149 7633 ROTHPUTRA VENTURES: Enters Voluntary Wind-Up Proceedings -------------------------------------------------------- On August 1, 2006, Rothputra Ventures Berhad was placed under members' voluntary wind-up. In this regard, Teoh Boon Chuan, of BC Teoh & Company, was appointed as liquidator. The Liquidator can be reached at: BC Teoh & Co No. 6-1A, Jalan 9/223E Taman Danau Kota, Setapak Kuala Lumpur 53300 Malaysia Telephone: 03-4142 7633 Fax: 03-4149 7633 SATERAS RESOURCES: Fails to Submit 2006 Financial Report -------------------------------------------------------- Sareras Resources Berhad was unable to submit its annual audited accounts for the year ended March 31, 2006, by July 31, 2006, as required by the Bursa Malaysia Securities Berhad's Listing Requirements due to its "severe financial condition". As a result, Sateras is expected to face another delisting action by the Bourse. The Troubled Company Reporter - Asia Pacific reported on March 14, 2006, that Bursa Malaysia had decided to delist Sateras from the Official List for failing to issue its 2004 annual audited accounts, annual report and quaterley report within the stipulated timeframes. However, a subsequent TCR-AP report said that the delisting was deferred pending the disposal of Sateras' application for a judicial review of the Bourse's decision to delist the Company's securities. About Sateras Resources Headquartered in Kuala Lumpur, Malaysia, Sateras Resources (Malaysia) Berhad is principally engaged in investment holding and provision of management and secretarial services. The principal activities of its subsidiary companies are that of property development, investment in real property, investment holding and educational services. The Company has been experiencing losses since the Asian financial crisis in 1997. As of March 31, 2006, the Company's balance sheet revealed accumulated losses of MYR409,473,000 and stockholders' deficit of MYR99,838,000. * Fitch Says More Consolidation Likely in Malaysian Banking ----------------------------------------------------------- Fitch Ratings on August 4, 2006, said that consolidation is likely to be viewed as a key platform to help strengthen the domestic incumbents in Malaysia's banking system given the potential benefits from size and economies of scale, and the stronger leverage it can provide with a larger base of resources, infrastructure and products. The agency expects further changes in Malaysia's financial landscape as the regulators seek to enhance the efficiency and competitiveness of domestic banking institutions, so that they may be better equipped to face the challenges of the liberalization process. The recent acquisition of privately-owned Southern Bank Berhad by government-linked CIMB group, as well as the proposed purchase of the entire Utama Banking Group's stake in Rashid Hussain Berhad, the parent of RHB Bank, by Malaysia's Employees Provident Fund, suggests that the regulators will continue to play an active role in the consolidation process, albeit indirectly, through government-linked financial institutions. As noted in Fitch's recent report on "The Malaysian Banking System", Malaysia's financial landscape has seen some changes in the last two years. Regulatory encouragement towards rationalisation has resulted in the absorption of finance companies by their commercial banking parents over 2004 to 2005 with commercial banks accounting for more than 85% of banking system assets by end-2005, while that for finance companies -- previously the second-largest financial sub-segment -- has shrunk to a share of just 3% at end-2005. A similar exercise is now in progress for capital market intermediaries - ie. merchant banks, stockbroking companies and discount houses - under regulatory efforts to create integrated investment banks. The Malaysian banking sector is currently at the halfway mark of its Financial Sector Masterplan, a ten-year blueprint announced in 2001 that maps the future direction of the Malaysian financial sector. The emphasis has so far been on "domestic capacity building", which entails strengthening the domestic banking incumbents, as well as utilizing the gradual introduction of more domestic competition to spur these banks towards stronger performance and efficiency. This also included the development of a more market-based consumer protection framework through the revamp of the credit bureau in 2002 as well as the introduction of the deposit insurance system in September 2005. Branch restrictions on foreign banks operating in Malaysia have been recently relaxed with the addition of up to four new branches now allowed, subject to location-specific requirements. However, foreign equity participation in domestic commercial banks is still restricted to 30% but raised to 49% for Islamic banks and the newly created investment banks. Fitch's bank systemic risk score for Malaysia is C1. This comprises a Banking System Indicator of C, which is derived from an asset-weighted average of Fitch's Individual bank ratings and reflects the adequate intrinsic strength of the Malaysian banking system while the Macro Prudential Indicator of 1, which is derived from various macro-economic indicators, suggests that the Malaysian banks are not exposed to risks associated with rapid credit growth, excessive equity or property price increases or real effective exchange rate appreciation. Nevertheless, the rapid growth in consumer lending, the high and rising non-performing loans in certain segments such as residential mortgages, as well as the tougher operating conditions, suggest that consumer loan quality still requires continued monitoring. ===================== P H I L I P P I N E S ===================== BENPRES HOLDINGS: Sells Off Minority Stake in Unit -------------------------------------------------- In a disclosure to the Philippine Stock Exchange on Aug. 4, 2006, Benpres Holdings Corp. reveals that it disposed of 12,951,000 shares in its unit Digital Telecommunications Inc. through the Exchange. The Company states that it does not know who bought the shares, which were sold in these increments: Date Volume ---- ------ 07/05/2006 552,000 07/28/2006 7,162,000 07/31/2006 5,237,000 Total 12,951,000 The disposed shares, worth PHP16.8 million, amount to 0.204% of the total issued and outstanding shares of Digitel based on the total outstanding of 6,356,976,310 as of Dec. 31, 2005. However, this number of shares does not reflect the dilution from the parent company zero coupon convertible bonds and DCPL zero coupon convertible bonds as disclosed in the DGTL 2005 financial statements. Benpres Holdings will use the proceeds from the share sale to fund its working capital requirements. About Benpres Holdings Headquartered in Pasig City Philippines, Benpres Holdings Corporation is a 56.22%-owned subsidiary of Lopez, Inc. Both entities were incorporated in the Philippines. Benpres Holdings and its subsidiaries are mainly involved in investment holdings, broadcasting and entertainment, and water distribution. The Company's associates are involved in telecommunications, power generation and distribution, cable television, real estate development and infrastructure. Starting in 2002, Benpres Holdings defaulted on its principal and interest payments on its long-term direct obligations and guarantees and commitments. As proposed in the Company's Balance Sheet Management Plan, all of Benpres' liabilities were computed as of May 31, 2002. Also as proposed in the BSMP, the Company would make good faith semi-annual payments on its direct and contingent obligations. The first payment was made on December 2, 2002, and succeeding payments were made in June and December 2003, June and November 2004, and May and November 2005. As of Dec. 31, 2005, Benpres Holdings' long-term direct obligations due for payment stood at PHP9.96 billion. By virtue of its guarantees and commitments, based on the BSMP, the Company may be liable for certain obligations that already fell due, amounting to approximately PHP10.94 billion as of Dec. 31, 2005, excluding guarantees in its unit, Maynilad Water Services, Inc. As of Dec. 31, 2005, consolidated current liabilities exceeded consolidated current assets by PHP22.12 billion. Net loss attributable to Benpres Holdings' equity holders for the year ended Dec. 31, 2004, amounted to PHP1.2 billion. After auditing the Company's annual report for the period ended December 31, 2005, Sycip Gorres Velayo & Co. raised substantial doubt on Benpres Holdings' ability to continue as a going concern, which would depend on success of the Company's balance sheet management plan. LEPANTO CONSOLIDATED: To Spend PHP600 Million to Develop Mine ------------------------------------------------------------- Lepanto Consolidated Mining Co. is set to spend PHP600 million for its capital expenses, after having doled out PHP289.3 million in the first half of the year for its copper- gold flotation project, BusinessWorld relates. According to the Company, the PHP600 million would go towards the development of its copper-gold project in Mankayan Benguet that would cost PHP375.2 million, whereas PHP31.9 million will go to its underground construction and special project. Lepanto had operated a copper flotation plant from August 2000 to December 2001, but the plant was shut down due to excessive penalty elements found in its copper concentrate. The Company will resume operations at its copper plant this quarter on increased copper prices and to seek more metal recoveries, and plans to begin copper production next month. The Company, which posted a PHP24.6-million net loss in the first semester of 2006 from a PHP172.1-million loss for the same period last year, will issue a one-for-eight stock rights offering in order to raise PHP639 million to settle its debts to banks, shareholders, and employee-related accounts. * * * Lepanto Consolidated Mining Company -- http://www.lepantomining.com/-- was incorporated primarily to engage in the exploration and mining of gold, silver, copper, lead, zinc and all kinds of ores, metals, minerals, oil, gas and coal and their related by-products. The Company was incorporated in 1936 and until 1997 was operating an enargite copper mine. It shifted to gold bullion production that same year through its Victoria Project. Lepanto operated a copper flotation plant from August 2000 to December 2001, when copper operations were suspended due to the presence of excessive penalty elements in the mill feed and copper concentrate. Lepanto sells its gold bullion production to London's Johnson Matthey. Lepanto is now one of the country's top producers of gold and its by-products, copper and silver. The Company also has investments in other areas through its subsidiaries such as hauling business, diamond drilling business, insurance business, manufacturing of industrial diamond tools for mining exploration, marble cutting and the construction industry. The Troubled Company Reporter - Asia Pacific reported on Jan. 27, 2006, that Lepanto Consolidated is working to recover from a PHP400-billion loss incurred in the past two years due to labor disputes. MANILA ELECTRIC: To Agree with Napocor on Customer Choice Deal -------------------------------------------------------------- Manila Electric Co. is slated to sign a memorandum of agreement with National Power Corp. on a proposed customer choice program, wherein customers can choose their power suppliers, to be submitted to the Energy Regulatory Commission this month, ABS- CBN News reports, citing the Manila Times. The Times says that under the program, Meralco's commercial and industrial clients with a minimum power demand of one megawatt can buy power directly from Napocor, and can avail of its time- of-use scheme, where customers can buy power at a cheaper rate on off-peak periods. The Philippine Inquirer states that Meralco President Jesus Francisco has met with Napocor and has provided the firm with loan profiles that would enable it to create simulations on how the proposed customer choice program could be implemented, based on its time-of-use rates. Manila Electric sent a letter to Philippine President Gloria Macapagal-Arroyo of an "unconditional" offer to exclude commercial and industrial clients from its captive market, and later informed its clients about the proposed customer choice program, adding that those who would not be able to avail of such program could still avail of its average mixed generation charges. ABS-CBN adds that despite the offer being "unconditional," Meralco sought that its independent power producers be dispatched on minimum energy quantity to operate their plants efficiently. According to the Inquirer, the Customer Choice Program will be implemented after it has been approved by the ERC. About Manila Electric Headquartered in Ortigas, Pasig City, the Manila Electric Company -- http://www.meralco.com.ph/-- is the largest utility in the Philippines, providing power to 4.1 million customers in metropolitan Manila and more than 100 surrounding communities. As deregulation takes effect, Meralco is reducing its dependence on state-owned National Power Corp. by increasing the amount of power it purchases from independent power producers. Meralco is also preparing for competition by moving into non-regulated activities, including energy consulting, independent power production, engineering, fiber optics, e-commerce, and real estate. * * * A March 31, 2006 report by the Troubled Company Reporter - Asia Pacific stated that the Company posted a 79.7% decrease in its 2005 net losses to PHP411 million from PHP2.03 billion in 2004, due to provisions for probable losses while awaiting a Supreme Court final decision on a pending unbundling rate case, and the adoption of new accounting standards. The TCR-AP further stated on April 27, 2006, that the Company filed a report with the Philippine Stock Exchange, indicating a 66.1% decline in its net loss from January to March 2006 to PHP748 million against a PHP2.2 billion loss for the same period in 2005. According to a subsequent TCR-AP report on April 24, 2006, Manila Electric cannot seek a loan to expand its facilities unless it repays outstanding short-term debts amounting to around PHP4.7 billion. PHILIPPINE NATIONAL BANK: Monetary Board OKs Capital Notes Issue ---------------------------------------------------------------- The Monetary Board of the Bangko Sentral ng Pilipinas authorized Philippine National Bank to issue additional Tier 2 capital notes, bringing its total issuance to PHP5.5 billion from PHP5 billion, the Philippine Star reports. The Company plans to use the proceeds from the notes issue to strengthen its capital base and offset losses from its non- performing assets totaling PHP55 billion, comprised of PHP27 billion in non-performing loans and PHP28 billion in real and other properties owned and acquired. PNB hopes to raise its capital adequacy ratio from 17.2% to 22%. The Star says that PNB increased its net income for the first six months of 2006 by 35% to PHP425 million on foreign exchange and trading gains. 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. PHILIPPINE NATIONAL BANK: SC Orders PHP226-Mil LOC Remittance ------------------------------------------------------------- The Supreme Court ordered the Philippine National Bank to remit PHP226.22 million in a letter of credit issued to businessman Vincent B. Chuidian in 1985, BusinessWorld reveals. Malaya News states that in 1985, Mr. Chuidian, who was an ally of former President Ferdinand Marcos, had persuaded then Philippine Export & Foreign Loan Guarantee Corp. to lend PHP1.28 billion to his firm, Asian Reliability Co. Inc. Philguarantee later assumed ARCI's debts when it defaulted on its loan payments and sued Mr. Chuidian for misuse of the funds. BusinessWorld relates that in 1985, the Marcos Government promised to pay some PHP226.22 million to Mr. Chuidian -- via a letter of credit from PNB -- as well as dropping all civil and criminal charges against him in exchange for the surrender of his businesses to the Government. However, Manila Standard Today adds, the Marcos administration was overthrown in 1986, and a year later, the Government under former President Corazon Aquino filed a case with the Sandiganbayan to recover the ill-gotten wealth of Marcos and his cronies, and sought to attach PNB's letter of credit to Mr. Chuidian for safekeeping. Mr. Chuidian then filed a motion to lift the attachment and sought an order for the Government to deposit the letter of credit to the Sandiganbayan trust account pending judgment of its rightful owner. On Feb. 27, 1987, PNB underwent a rehabilitation and transferred some of its assets to the Government, which assumed its liabilities along with the letter of credit due to Mr. Chuidian. On Jan. 19, 2001, the Supreme Court denied Mr. Chuidian's petition to lift the attachment order, but directed PNB to remit the letter of credit to the Sandiganbayan's escrow account with the Land Bank of the Philippines until its owner could be determined. PNB filed a petition to seek relief from having to pay the PHP226 million to Mr. Chuidian, saying that the amount had been assumed by the Aquino Government when it assumed its liabilities, but the SC ruled that there was no "valid substitution of debtor" in the Bank's deed of transfer with the Government, hence the amount is still due to Mr. Chuidian unless the Sandiganbayan proves otherwise. 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. ================= S I N G A P O R E ================= ADVANCED SYSTEMS: Auditor Raises Significant Doubt -------------------------------------------------- Advanced Systems Automation Limited reported a sales turnover of SGD27.3 million for the fiscal year 2006, largely due to a technical slow down in the semiconductor industry during the year, according to its annual report for 2006. The result translates to a 15% decrease from the recorded sales revenue in fiscal year 2005. On top of the technical slow down, ASA's Beijing factory also suffered from temporary capacity limitations in the second half. Despite the record low sales, the group registered a loss of SGD3.4 million, the lowest since fiscal year 2002. Total expenses went down from SGD48.99 million to SGD29.50 million, year-on-year. Significant Doubt Ernst and Young, the ASA's independent auditors, reported in the company's Annual Report that, "The group has incurred significant losses and has been experiencing severe cash shortage in the past four financial years. The group incurred a net loss of SGD3.4 million for the financial year ended March 31, 2006, and the group's and the company's current liabilities exceeded current assets by SGD20.9 million and SGD22.9 million respectively. As of March 31, 2006, the group and the company were in net shareholders' deficit positions of SGD13.8 million and SGD11.2 million respectively. These matters described above indicate the existence of a material uncertainty which may cast significant doubt about the Group and Company's ability to continue as going concerns." Ernst and Young adds that the ability of the group and the company to continue as going concerns are dependent on the following: i. the completion of the proposed investment with a group of potential investors and renounceable rights issue on the basis of five rights shares for every two existing ordinary shares in the capital of the company which would result in the injection of fresh capital into the company; ii. the banks and creditors not demanding immediate repayment of the amounts due to them; iii. disposal of non-core assets; and iv. the restructuring and generation of significant positive cash flow from the Group's core businesses. About ASA Advanced Systems Automation Limited -- http://www.asa.com.sg-- is a Singapore-based company that is engaged in the design and manufacture of automatic molding machines and other back-ended assembly equipment for the semiconductor industry. The company's subsidiaries include Avalon Technology Pte. Ltd.; Microfits Pte. Ltd.; Beijing Microfits Precision Electronics Engineering Co., Ltd. and Beijing Advanced Precision Electronics Engineering Co., Ltd., both of which are engaged in the manufacture of precision tools, dies and moulds; Acetech Solutions Ltd.; Advanced Systems Automation, Inc., and Advanced Systems Automation (Europe) Limited, which is engaged in the sale and provision of services to the European semiconductor manufacturing market. AVAGO TECHNOLOGIES: Posts US$380M Net Revenue for Second Quarter ---------------------------------------------------------------- Avago Technologies Limited has disclosed its unaudited financial results for the second quarter of fiscal 2006, ended April 30, 2006, according to a company press release. The results as presented in the release exclude, for both the second quarter and first quarter of fiscal 2006, revenue, costs and expenses related to the company's Storage and Printer ASICs operations, sold on February 28 and May 1, 2006 respectively. Net revenue for the second quarter was US$380 million, compared with US$396 million in the first quarter of fiscal 2006. Including amortization of intangibles, gross margin for the second quarter was 32%, compared with 22% in the first quarter. Second quarter operating expenses, including amortization of intangibles, were US$142 million. This compares with first quarter operating expenses of US$159 million. Adjusted EBITDA in the second quarter was US$68 million. This compares with stronger than anticipated Adjusted EBITDA of US$91 million for the first quarter, which reflected lower costs associated with the early stages of corporate infrastructure development. Cash balances at the end of April 2006 were approximately US$210 million, up from approximately US$169 million at the end of January. "I am very pleased with the execution of our transition plans and the progress made to date at improving our operating performance," said Hock E. Tan, President and Chief and Executive Officer of Avago Technologies. "We generated substantial cash from operations during the second quarter, which combined with the proceeds from our divested businesses enabled us to pay off all term loans by May 19, significantly strengthening our capital structure." The Company's Financial Report is available for free at: http://bankrupt.com/misc/tcrap_avagotech080706.pdf About Avago Tech Headquartered both in San Jose, CA, and in Singapore, Avago Technologies Holdings Pte. Ltd. -- http://www.avagotech.com/-- is the world's largest privately held semiconductor company, with approximately 6,500 employees worldwide. Avago provides an extensive range of analog, mixed-signal and optoelectronic components and subsystems to more than 40,000 customers. The company's products serve four end markets: industrial and automotive, wired networking, wireless communications, and computer peripherals. Worldwide Design, Manufacturing and Marketing Centers in the United States, Italy, Germany, Malaysia, Singapore, Korea, China and Japan. Avago Technologies is the successor to the Semiconductor Products Group of Agilent. Avago Technologies purchased the business of SPG as of December 1, 2005, for US$2.6 billion in cash. * * * As the Troubled Company Reporter reported on November 7, 2005, Standard & Poor's Ratings Services assigned its 'B' corporate credit rating to Avago Technologies Holdings Pte. Ltd. The outlook is positive. At the same time, Avago's proposed US$975 million first-lien senior secured bank facility was rated 'B+' with a recovery rating of '1', indicating a high expectation for full recovery of principal in the event of a payment default. Avago Technologies Finance Pte Ltd. and Luxembourg Finance Co. are borrowers under the loan. In addition, Standard & Poor's assigned its 'B' rating to Avago's proposed US$375 million of senior unsecured notes and US$375 million of senior unsecured floating-rate notes. Lastly, Avago's proposed US$250 million of senior subordinated notes were assigned a 'CCC+' rating. Avago Technologies Finance Pte Ltd., Avago Technologies U.S. Inc., and Avago Technologies Wireless Manufacturing Inc. are co-issuers of the notes. CHINA AVIATION: Closes September 2006 Fuel Tender ------------------------------------------------- China Aviation Oil (Singapore) Corporation Ltd. has announced that it had closed its latest physical jet fuel tender for delivery in September 2006, the Company stated in a press release. This was the third jet fuel tender procurement the Company completed on the principal basis since its restructuring exercise. CAO's latest tender received responses from nine physical jet- fuel suppliers, including some oil majors, and oil trading companies. For this tender, a total volume of 434,000 metric tonnes of A-1 Grade Jet Fuel was awarded, including one emergency cargo of 23,000 metric tonnes to be delivered in August. The cover ratio of the tender was approximately 2.8 times. CAO awarded mandates to the most competitive suppliers and confirmed that the tenders received for this latest tender exercise complied with CAO's standard terms and conditions. Also as in the last two Jet Fuel tenders, the Company's business partner - BP, elected not to exercise its pre-emptive rights. The company expresses its appreciation to all suppliers for their continued support of its Jet Fuel procurement business. From January to September in 2006, the total tender volume is 3.13 million metric tonnes, a 61% increase from 1.94 million metric tonnes for the same period in 2005. About China Aviation Oil (Singapore) Incorporated in 1983, China Aviation Oil (Singapore) Corp. Limited -- http://www.caosco.com/-- deals primarily in jet fuel procurement, although it is also active in international oil trading and oil-related investment. The firm commands a near- 100% market share of the procurement of imported jet fuel for China's civil aviation industry, and has expanded its market to include ASEAN countries, the Far East and the United States. The company is currently working with an insolvent balance sheet, according to a TCR-AP report on August 4, 2006, with a US$390.07 million shareholder's equity deficit on total assets of US$211.96 million * * * On December 5, 2005, the Company announced its debt and equity restructuring plan aimed at rehabilitating the company as a going concern and lifting the suspension of trading of the Company's shares on the SGX-ST. The Plan encompasses, inter alia, implementation of the following : i. waiver of a portion of the total outstanding debts by creditors under the Creditors' Scheme; ii. the consolidation of every 5 ordinary shares of the company into 1 ordinary share; iii. the issue of new Shares of the Company to : * CAOHC, BP Investments Asia Limited ("BP") and Aranda Investments Pte. Ltd. ("Aranda") pursuant to the Investment Agreement and Subscription Agreement; and * Tranche B Creditors who have applied for Shares pursuant to the Company's invitation to these creditors to subscribe for Shares in the Company; and iv. the waiver of a portion of the total outstanding debts by CAOHC and the conversion of the remaining debts into new ordinary shares of the Company. The Company's Restructuring Plan was approved by shareholders on March 3, 2006, and sanctioned by the High Court of Singapore on March 21, 2006. It became effective on March 28, 2006. MAE ENGINEERING: Receives 361,849,270 Valid Acceptances ------------------------------------------------------- MAE Engineering Limited on August 2, 2006, received valid acceptances, which totaled to 361,849,270 Rights Shares with Warrants, representing approximately 87.2 % of the total number of Rights Shares with Warrants under the Rights Issue. The Company is undertaking a renounceable rights of up to 415,045,060 new ordinary shares in the Company's capital at an issue price of SGD00.03 for each rights share, with up to 207,522,530 free warrants. Each warrant carries the right to subscribe for one new ordinary share in the Company's capital at an exercise prices of SGD0.05 for each new share. Accordingly, 53,195,790 Rights Shares with Warrants that were not taken up by Entitled Shareholders and their renouncees were used to satisfy the excess applications received for a total of 104,346,245 Rights Shares with Warrants, representing 25.1% of the total number of Rights Shares with Warrants under the Rights Issue. As all 415,045,060 Rights Shares offered under the Rights Issue were fully subscribed, the Company has raised net proceeds of approximately SGD12.1 million (after deducting estimated expenses) from the Rights Issue. 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. MIYAMA FOOD: Court to Hear Wind-Up Petition on August 18 -------------------------------------------------------- The High Court of Singapore will hear a wind-up petition against Miyama Food Pte Ltd on August 18, 2006, at 10:00 a.m. The wind-up petition was filed by Teo Keng Thwan on July 24, 2006. The Plaintiff's Solicitors can be reached at: Messrs Asialegal LLC 20 Cecil Street #18-01 Equity Plaza Singapore 049705 NUANSA LEISURE: Creditors' Proofs of Claim Due on August 28 ----------------------------------------------------------- Creditors of Nuansa Leisure Private Limited are required to submit their proofs of claim by August 15, 2006, for them to share in any distribution the Company will make. On the other hand, contributories and creditors are scheduled to hold separate meetings on August 28, 2006, at 10.00 a.m. and 2.00 p.m. respectively. At the meetings, contributories and creditors will be asked to: -- consider and accept the resignation of Wee Aik Guan as the Company's liquidator; -- release Mr. Wee from all liability in respect of any act or default made by him in the Company's administration or otherwise in relation to his conduct as liquidator. The Liquidators can be reached at: Tam Chee Chong Wee Aik Guan c/o Deloitte & Touche 6 Shenton Way, #32-00 DBS Building Tower Two Singapore 068809 REFCO INC: Chapter 7 Trustee May Reimburse US$749,579 to Group -------------------------------------------------------------- The United States Bankruptcy Court for the Southern District of New York authorizes Albert Togut, the Chapter 7 Trustee appointed to oversee the liquidation of Refco, LLC's estate, to reimburse US$747,579 to Refco Group Ltd., LLC, for payments made to holders of mechanic's lien claims. As reported in the Troubled Company Reporter on July 7, 2006, Mr. Togut, West Loop Associates LLC and the Contractors, Alps Construction, Inc., KCE Ltd. and Griswold, Heckel & Kelly Associates, Inc., reached a comprehensive settlement to resolve West Loop's request, the Mechanic's Liens and the Claims. In a Court-approved stipulation each of the Contractors agreed to: (i) reduce by 5% the outstanding principal amount of each of its Claim pertaining to the Properties; (ii) waive all attorney's fees and accrual of any interest to which each Contractor may be entitled; (iii) take the necessary steps to discharge and release the Mechanic's Liens so that the threatened default against West Loop may be averted; (iv) release Refco LLC from any further claims relating to the Contracts, the Mechanic's Liens, and their Claims; (v) withdraw their Claims against Refco LLC; and (vi) file no additional proofs of claim against Refco LLC. Refco Group will pay the Contractors US$747,579 in the aggregate in full satisfaction of the Mechanic's Liens, the Claims, and any other amounts due in connection with the Contracts. West Loop's Motion to Compel West Loop had asked the Court to compel Refco Group to comply with its postpetition lease obligations. Refco Group leases seven floors of an 18-story office building owned by West Loop in the central business district of Chicago, Illinois. Refco, LLC, occupied some or all of the leased premises. Refco Group continues to occupy the Premises pursuant to a March 2006 Stipulated Order among Debtors, West Loop and Man Financial, Inc. The Stipulated Order contemplates rejection of the Lease effective August 15, 2006. Sidney P. Levinson, Esq., at Hennigan, Bennett & Dorman LLP, in Los Angeles, California, contends that until the effective rejection date, RGL is required "to timely perform all obligations under the Lease to the extent required by Section 365(d)(3) of the Bankruptcy Code. Among those obligations, Mr. Levinson said, is a Lease covenant to either discharge or bond any mechanic's liens filed against the Property as a result of work performed or alleged to have been performed on the Premises. Mr. Levinson noted that Refco LLC has entered into a series of agreements with Alps Construction, Inc., KCE Ltd. and Griswold, Heckel & Kelly Associates, Inc., for the construction work to be performed at the leased Premises. The Contractors have sought relief from the bankruptcy stay to commence a foreclosure action in Illinois against RGL, Refco LLC, and West Loop. The Contractors assert that Refco LLC or RGL failed to pay for the work, leaving a balance in excess of $700,000, including amounts owed for work that was not completed until nearly one month after RGL's bankruptcy filing. The Contractors have filed mechanic's liens of more than $700,000 against the Property. Although the Bankruptcy Court denied the Contractors' request, the ruling did not fully resolve the problems West Loop faced. Mr. Levinson relates that by letter dated April 19, 2006, West Loop's mortgage lender, Greenwich Capital Financial Products, Inc., issued a notice of default to West Loop based on the existence of the Mechanic's Liens. The notice of default provides that, unless the Mechanic's Liens are discharged or bonded, West Loop will be held in default under its purchase money loan agreement dated October 7, 2005. Unless the Court compels RGL to discharge or bond the Mechanic's Liens, West Loop and, by consequence, RGL's estate will suffer substantial damages that could and should otherwise be avoided if RGL complies with its lease obligations, Mr. Levinson told Judge Drain. 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 U.S. 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: Court Considers Exclusive Period Requests on Sept. 12 ---------------------------------------------------------------- The Hon. Robert D. Drain of the United States Bankruptcy Court for the Southern District of New York adjourned, to 10 a.m. on Sept. 12, 2006, the hearing to consider Refco Inc., and its debtor-affiliates' request to extend their: * Exclusive Plan Filing Period to Sept 1, 2006; and * Exclusive Solicitation Period to Oct. 31, 2006. As reported in the Troubled Company Reporter on July 10, 2006, the Court had previously adjourned the hearing from June 27 to July 20, 2006. 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 U.S. 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: Seeks Approval of Debt Settlement Stipulation -------------------------------------------------------- Refco, Inc., and its debtor-affiliates, asks the United States Bankruptcy Court for the Southern District of New York to approve a Stipulation entered into by the Debtors, Refco Securities, LLC, Refco Capital Markets, Ltd., Marc Kirschner, the Court-appointed trustee for RCM, and the Official Committee of Unsecured Creditors, pursuant to Rule 9019 of the Federal Rules of Bankruptcy Procedure. Refco Securities, is a non-debtor subsidiary of Refco Regulated Companies LLC and a registered broker-dealer. According to its books and records, RSL -- which is currently undergoing an orderly out-of-court wind-down -- owes Refco Capital LLC (RCC) an aggregate of $127,459,910, on account of a series of transactions between them that occurred before the Petition Date. Mr. Kirschner asserts that RCM has an ownership interest in the RCC Debt and that RCM has additional claims against Refco Capital. Refco Capital contests the RCM Trustee's assertions. The Official Committee of Unsecured Creditors has stated that it is prepared to take action in the Court to obtain the right to act on Refco Capital's behalf and to collect the RCC Debt. To avert potential litigation, Refco Capital is willing to accept full payment of the RCC Debt over time. RSL Segregated Funds and Sberbank Judgment As of May 31, 2006, RSL maintained approximately US$7,000,000 in segregated funds under Rule 15c3-3 of the Securities Exchange Act of 1934 on account of claims or potential claims of unaffiliated third-party customers. As an RSL customer, RCM asserts that it is owed not less than US$42,900,000 -- RCM-RSL Claim -- from RSL, which currently maintains approximately US$45,900,000 in additional segregated funds on account of claims or potential claims asserted by RCM against RSL. The SEC has informally requested that RSL segregate funds for protection of unknown RSL customers. RSL does not currently have sufficient available liquid assets to satisfy the non- customer claims against it and to segregate additional funds requested by the SEC. Moreover, the Savings Bank of the Russian Federation has a judgment against RSL for $123,733,733, plus interest from June 2, 2006, and costs. RSL and Sberbank have entered into a separate agreement under which RSL will pay the Sberbank Judgment, but on a basis that is pari passu with the RCC Debt. Intercompany Obligations Between RSL and RCM RSL asserts that it is owed approximately US$92,000,000 -- RSL- RCM Claim -- from RCM, but that amount remains subject to further review. RSL has asked the RCM Trustee to consent to a set-off of intercompany debts between RSL and RCM, including the debt related to the RCM-Related Segregated Funds. However, the RCM Trustee has not consented to a set-off of the RCM-RSL Claim, but has agreed to other accommodations to permit the pari passu payment of the RCC Debt with the Sberbank Judgment, on terms and conditions similar to that agreed to by Sberbank. Parties Stipulate Recognizing that RSL lacks current liquidity sufficient to satisfy all of the outstanding claims against it and to meet all segregation requirements and requests, and to avoid possible litigation costs, RSL, Refco Capital, the RCM Trustee, and the Creditors Committee entered into a stipulation dated July 20, 2006. The parties agree that: (1) RSL will pay the $127,459,910 RCC Debt through pro rata distributions to Refco Capital based on available cash amount within two business days after any date on which available cash exceeds $2,000,000. The Stipulation recognizes RSL's obligation to segregate funds for the customers' benefit and accounts for RSL's obligation to pay Refco Capital over time. (2) In any event, RSL is unconditionally obligated to pay Refco Capital at least certain aggregate percentage amounts of the RCC Debt on or before these dates: * within two business days after the execution of the Stipulation, 80% of the RCC Debt equal to $101,967,928; and * by December 22, 2006, 100% of the RCC Debt, plus a 4.98% interest accruing from and after April 30, 2006, on a sum of the unpaid portion of the RCC Debt. (3) All payments made by RSL to Refco Capital are to be held in a separate segregated account designated by Refco Capital until the Stipulation becomes final and no longer subject to review. At that time, 60% of any payments made from RSL to Refco Capital are to be held in a segregated account until disputes related to ownership of the RCC Debt have been determined by Court order. Refco Capital will be free to use the remaining 40% of funds in the ordinary course of administering its estate. All liens and encumbrances on the RCC Debt will attach to all payments made by RSL in respect of the RCC Debt. This provision makes significant assets available to Refco Capital's estate, at the same time preserving disputes related to the ownership of the RCC Debt for a later date. (4) RCC and the Creditors Committee will forebear from taking any and all actions to obtain a judgment or collect on the RCC Debt unless and until approval of the Stipulation is denied by the Court or a defined event of default occurs under the Stipulation. (5) On the occurrence of a defined event of default: -- the entirety of the RCC Debt becomes immediately due and payable; -- Refco Capital and the Creditors Committee are entitled to seek a judgment and otherwise pursue collection on the RCC Debt against RSL's assets; -- certain provisions of the Stipulation terminate without further Court order; and -- Refco Capital and the Creditors Committee reserve all rights to enforce the entirety of the RCC Debt, and all rights reserved by any party under the Stipulation remain reserved. (6) RSL is prohibited from paying or reserving for or granting a lien on collateral to secure any RSL Creditor Claim or any other non-customer claims that may become known to RSL following July 20, 2006, unless RSL contemporaneously makes a pro rata payment or grant of collateral to Refco Capital on the RCC Debt, or unless Refco Capital consents in writing. This provision protects Refco Capital if additional non-customers are asserted against RSL. (7) Pending further Court order, the RCM Trustee is not to seek payment of or from the RCM-Related Segregated Funds, which are to be placed in a separate escrow account bearing interest. RSL, Refco Capital, and the RCM Trustee also reserve their rights with respect to entitlement to the RCM-Related Segregated Funds. In addition, RSL is not to offset the RCM-RSL Claim against the RSL-RCM claim. (8) If RSL's Third-Party Customer Claims exceed the amounts held as Third Party Segregated Funds, the Third-Party Segregated Claims are to be paid first from the Excess Customer Segregated Funds and second from the RCM-Related Segregated Funds. To the extent that any Third-Party Customer Claims are paid from RCM-Related Segregated Funds, RCM's claim will be treated as a non-customer claim. Approval of Stipulation is Necessary J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in New York, tells Judge Drain that the Stipulation harmonizes the payments to be made to Refco Capital with those made to Sberbank pursuant to a similar payment agreement. Although RSL lacks currently available liquid assets sufficient to meet SEC segregation requirements and to satisfy both Sberbank's claim and the RCC Debt in full, Mr. Milmoe asserts that the payment schedules in the Sberbank agreement and the Stipulation facilitate immediate payment to the extent of RSL's currently available liquid assets. Mr. Milmoe also notes that the proposed agreement was negotiated whereby the RCC Debt is to be satisfied in full by the end of 2006, and in the event of non-payment, Refco Capital's remedies are preserved. RCM's claims against RSL and Refco Capital are fully preserved for future resolution and distribution. In addition, Mr. Milmoe asserts, the Debtors' consent to the authority of the Creditors Committee to bring any action necessary to enforce the RCC Debt if there is an Event of Default under the Stipulation is necessary and beneficial for the efficient administration of Refco Capital's estate. Mr. Milmoe explains that the Creditors Committee's advisors have significant involvement in investigating Refco Capital's claims against RSL and have played a key role in negotiating payment terms under the Stipulation on Refco Capital's behalf. Moreover, Refco Capital and RSL, which are related companies, are represented by the same counsel. It would maximize efficiency and expedience to authorize other professional to undertake litigation on Refco Capital's behalf against RSL. 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 U.S. 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). TIONG POLESTAR: Creditors' Proofs of Claims Due on August 18 ------------------------------------------------------------ Tiong Polestar Engineering Private Limited notifies parties-in- interest of its intention to distribute dividend to creditors. In this regard, the Company's creditors are required to submit their proofs of claim by August 18, 2006, to Liquidator Jamshid K Medora, for them to share in the dividend distribution. The Liquidator can be reached at: Jamshid K Medora 22 Malacca Street #08-02 Royal Brothers Building Singapore 048980 VANGUARD REALTY: To Pay Dividend to Unsecured Creditors ------------------------------------------------------- Vanguard Realty & Development Pte Limited will pay the first dividend to its unsecured creditors on August 11, 2006. The creditors will receive 3.25 cents to a dollar to all admitted claims. The liquidator can be reached at: Bob Yap Cheng Ghee c/o KPMG 16 Raffles Quay #22-00 Hong Leong Building Singapore 048581 =============== T H A I L A N D =============== KRUNG THAI: To Reveal Business Plan 2nd Half on August 27 --------------------------------------------------------- Krung Thai Bank will, on August 27, 2006, announce its business plan for the second half of this year and its new managing director, The Bangkok Post reports. According to The Post, Krung Thai plans to boost its asset- management and leasing subsidiaries this year. The bank's president, Apisak Tantivorawong, told The Post that the bank wanted its affiliate, Krung Thai Asset Management, to expand its mutual-fund business. "We need KTAM to be more active in the mutual-fund business. The company's margin is narrow. It can utilize the bank's customer base better than this," Mr. Tantivorawong said. The Post relates that Krung Thai has a deposit base of about seven million accounts, ranking it the country's second largest bank in terms of asset size at THB1.2 trillion as of the first quarter of this year. Moreover, another subsidiary of the bank, KTB Leasing Ltd, is also undergoing a business-model adjustment process to shed its conventional image, Mr. Apisak told the Post. The leasing firm has offered two products, car loans and factoring loans, since it was established last year and recently expanded into motorcycles, machinery, aircraft and office accessories. In addition, Mr. Apisak disclosed that Krung Thai intends to buy about 30% to 40% of another securities company, but no specific time frame has been set. The bank's goal is to become a full financial-services provider, a concept it calls Convenience Bank. Krung Thai also plans to open its busiest branches seven days a week, The Post said. It expects 80% to 90% of branches, located in prime areas, to be open throughout the week by the end of the year. Krung Thai Bank Public Company Limited -- http://www.ktb.co.th/ -- began its operation on March 14, 1966, through the merger of business between the Agricultural Bank Limited and the Provincial Bank Limited with the Ministry of Finance as its major shareholder. The Bank provides financial assistance to large and small business, it also renders financial assistance to other state enterprises, both business oriented and public utility types. Currently the bank is operating 511 domestic and 12 foreign branches and representative offices. * * * On May 30, 2006, The Troubled Company Reporter - Asia Pacific reported that Moody's Investors Service has upgraded KTB's bank financial strength rating to D- from E+. Fitch Ratings, on July 10, 2006, upgraded the individual rating of Krung Thai Bank Public Company Limited to C/D from D. KRUNG THAI: Raises Lending and Deposit Interest Rates ----------------------------------------------------- Krung Thai Bank, on August 3, 2006, disclosed that it will increase its lending and deposit interest rates for a quarter percentage point, The Bangkok Post report. According to the report, Krung Thai's minimum lending rate will increase to 7.75%, with the minimum overdraft rate rising to 8% and the minimum retail rate to 8.25%. Fixed-deposit rates were also increased by a quarter-point for terms from three to 36 months. M.R. Pridiyathorn Devakula, Bank of Thailand Governor, told the Thai News Agency that he is confident that the latest lending rate hike by local commercial banks would not fuel non- performing loans. Problems with NPLs had stemmed chiefly from an inefficient management, Mr. Devakula adds. Furthermore, Mr. Devakula assured that BOT would continue its effort to reduce bad loans to a targeted amount. Krung Thai Bank Public Company Limited -- http://www.ktb.co.th/ -- began its operation on March 14, 1966, through the merger of business between the Agricultural Bank Limited and the Provincial Bank Limited with the Ministry of Finance as its major shareholder. The Bank provides financial assistance to large and small business, it also renders financial assistance to other state enterprises, both business oriented and public utility types. Currently the bank is operating 511 domestic and 12 foreign branches and representative offices. * * * On May 30, 2006, The Troubled Company Reporter - Asia Pacific reported that Moody's Investors Service has upgraded KTB's bank financial strength rating to D- from E+. Fitch Ratings, on July 10, 2006, upgraded the individual rating of Krung Thai Bank Public Company Limited to C/D from D. TONGKAH HARBOUR: Posts THB23-Mil Net Loss in 2006 First Quarter --------------------------------------------------------------- Tongkah Harbour Pcl submitted to the Stock Exchange of Thailand its financial report for the first quarter ended March 31, 2006. The Company's consolidated income statement for the 2006 first quarter shows a net loss of THB23.35 million, slightly lower than the THB23.406-million net loss recorded for the 2005 first quarter. Tongkah Harbour's consolidated liabilities as of March 31, 2006, were up to THB417.54 million, as compared to THB173.95 million in consolidated liabilities as of December 31, 2005. Total assets of the Company as of March 31 totaled THB1.606 billion, compared to THB1.387 billion as of the end of December 2005. The Company's balance sheet as of March 31, 2006, also showed strained liquidity, with total current assets of THB108.38 million available to pay total current liabilities of THB113.308 million coming due within the next 12 months. After auditing Tongkah Harbour's consolidated financial report, Kesree Narondeja, of A.M.T. & Associates, stated that continued operating losses of the Company and its subsidiaries may affect their liquidity status and their going concern position. Accordingly, Mr. Narondeja said, the Company's ability to continue in existence depends upon its ability to get additional financing for the ensuing years, and achieve profitable operations. Full-text copies of the Company's financials for the quarter ending March 31, 2006, are available for free at: http://bankrupt.com/misc/THLE1.doc http://bankrupt.com/misc/THLE2.xls * * * Headquartered in Bangkok, Thailand, Tongkah Harbour Public Company Limited -- http://www.tongkahharbour.co/-- is primarily engaged in mining operations. The Company is engaged in offshore tin mining, gold exploration and mining, igneous rock quarrying, as well as property development and management. The Company had been listed under the Rehabco sector -- Companies under rehabilitation -- until July 3, 2006, when the Thailand Stock Exchange reclassified the whole sector. Currently, SET categorized the Company under the "non-performing group." Companies under the group will retain their listing status and will be obligated to comply with the SET requirements. * BOND PRICING: For the Week 7 August to 11 August 2006 ------------------------------------------------------- Issuer Coupon Maturity Price ------ ------ -------- ----- AUSTRALIA --------- Ainsworth Game 8.000% 12/31/09 1 APN News & Media Ltd 7.250% 10/31/08 5 A&R Whitcoulls Group 9.500% 12/15/10 8 Arrow Energy NL 10.000% 03/31/08 1 Babcock & Brown Pty Ltd 8.500% 12/31/49 8 Becton Property Group 9.500% 06/30/10 7 BIL Finance Ltd 8.000% 10/15/07 8 BIL Finance Ltd 9.250% 10/15/06 9 Capital Properties NZ Ltd 8.500% 04/15/07 8 Capital Properties NZ Ltd 8.500% 04/15/09 8 Capital Properties NZ Ltd 8.000% 04/15/10 8 Cardno Limited 9.000% 06/30/08 4 CBH Resources 9.500% 12/16/09 1 Chrome Corporation Ltd 10.000% 02/28/08 1 Clean Seas Tuna Ltd 9.000% 09/30/08 1 Djerriwarrh Investments Ltd 6.500% 09/30/09 4 EBet Limited 10.000% 11/29/06 24 Evans & Tate Ltd 8.250% 10/29/07 1 Fletcher Building Ltd 7.900% 10/31/06 8 Fletcher Building Ltd 8.300% 10/31/06 8 Fletcher Building Ltd 8.600% 03/15/08 7 Fletcher Building Ltd 7.800% 03/15/09 7 Fletcher Building Ltd 8.850% 03/15/10 7 Fletcher Building Ltd 7.550% 03/15/11 7 Fernz Corp Ltd 8.560% 10/15/06 8 Futuris Corporation Ltd 7.000% 12/31/07 2 Hy-Fi Securities Ltd 7.000% 08/15/08 8 Hy-Fi Securities Ltd 8.750% 08/15/08 11 Hutchison Telecoms Australia 5.500% 07/12/07 1 IMF Australia Ltd 11.500% 06/30/10 1 Infrastructure & Utilities NZ Ltd 8.500% 09/15/13 8 Infratil Ltd 8.500% 11/15/15 8 Kagara Zinc Ltd 9.750% 05/06/07 5 Kiwi Income Properties Ltd 8.000% 06/30/10 1 Minerals Corporation Ltd 10.500% 09/30/07 1 Nuplex Industries Ltd 9.300% 09/15/07 8 Pacific Print Group Ltd 10.250% 10/15/09 10 Primelife Corporation 9.500% 12/08/06 1 Primelife Corporation 10.000% 01/31/08 1 Salomon SB Australia 4.250% 02/01/09 8 Sapphire Securities Ltd 7.410% 09/20/35 7 Sapphire Securities Ltd 9.160% 09/20/35 9 Silver Chef Ltd 10.000% 08/31/08 1 Software of Excellence 7.000% 08/09/07 1 Tower Finance Ltd 8.750% 10/15/07 8 Tower Finance Ltd 8.650% 10/15/09 8 TrustPower Ltd 8.300% 09/15/07 8 TrustPower Ltd 8.300% 12/15/08 8 TrustPower Ltd 8.500% 09/15/12 8 TrustPower Ltd 8.500% 03/15/14 8 Vision Systems Ltd 9.000% 12/15/08 2 Westpac Banking Corporation 6.250% 08/30/11 6 MALAYSIA -------- Aliran Ihsan Resources Bhd 5.000% 11/29/11 1 AHB Holdings Bhd 5.500% 03/06/07 1 Asian Pac Bhd 4.000% 12/21/07 1 Berjaya Land Bhd 5.000% 12/30/09 1 Bumiputra-Commerce 2.500% 07/17/08 1 Camerlin Group Bhd 5.500% 07/15/07 2 Crescendo Corporation Bhd 3.000% 08/25/07 1 Dataprep Holdings Bhd 4.000% 08/06/07 1 Eastern & Oriental Hotel 8.000% 07/25/11 1 Eden Enterprises (M) Bhd 2.500% 12/02/07 1 EG Industries Bhd 5.000% 06/16/10 1 Equine Capital Bhd 3.000% 08/26/08 1 Fountain View Development Sdn Bhd 3.500% 11/03/06 1 Gadang Holdings Bhd 2.000% 12/24/08 1 Greatpac Holdings Bhd 2.000% 12/11/08 1 Gula Perak Bhd 6.000% 04/23/08 1 Hong Leong Industries Bhd 4.000% 06/28/07 1 Huat Lai Resources Bhd 5.000% 03/28/10 1 I-Berhad 5.000% 04/30/07 1 Insas Bhd 8.000% 04/19/09 1 Kamdar Group Bhd 3.000% 11/09/09 1 Killinghall Bhd 5.000% 04/13/09 2 Kosmo Technology Industrial Bhd 2.000% 06/23/08 5 Kretam Holdings Bhd 1.000% 08/10/10 1 Kumpulan Jetson 5.000% 11/27/12 1 Lebar Daun Bhd 2.000% 01/06/07 3 LBS Bina Group Bhd 4.000% 12/29/06 1 LBS Bina Group Bhd 4.000% 12/31/07 1 LBS Bina Group Bhd 4.000% 12/31/08 1 LBS Bina Group Bhd 4.000% 12/31/09 1 Lion Diversified Holdings Bhd 2.000% 06/01/09 3 Media Prima Bhd 2.000% 07/18/08 1 Mithril Bhd 8.000% 04/05/09 1 Mithril Bhd 3.000% 04/05/12 1 Mutiara Goodyear Development Bhd 2.500% 01/15/07 1 Naim Indah Corporation Bhd 0.500% 08/24/06 1 Nam Fatt Corporation Bhd 2.000% 06/24/11 1 Pantai Holdings Bhd 5.000% 07/31/07 2 Pelikan International Corp Bhd 3.000% 04/08/10 2 Poh Kong Holdings Bhd 3.000% 01/20/07 1 Prinsiptek Corporation Bhd 3.000% 11/20/06 1 Puncak Niaga Holdings Bhd 2.500% 11/18/16 1 Ramunia Holdings 1.000% 12/20/07 1 Rashid Hussain Bhd 3.000% 12/23/12 1 Rashid Hussain Bhd 0.500% 12/24/12 1 Rhythm Consolidated Bhd 5.000% 12/17/08 1 Silver Bird Group Bhd 1.000% 02/15/09 1 Southern Steel 5.500% 07/31/08 1 Tanah Emas Corporation Bhd 2.000% 12/09/06 1 Tenaga Nasional Bhd 3.050% 05/10/09 1 Titisan Modal Sdn Bhd. 4.000% 04/28/14 74 Titisan Modal Sdn Bhd. 5.000% 04/28/20 74 Tradewinds Plantations Bhd 3.000% 02/28/16 1 VTI Vintage Bhd 4.000% 08/22/06 1 WCT Land Bhd 3.000% 08/02/09 1 Wah Seong Corp 3.000% 05/21/12 4 YTL Cement Bhd 4.000% 11/10/15 1 SINGAPORE --------- Rabobank Singapore 1.000% 11/03/13 74 Sengkang Mall 8.000% 11/20/12 1 Structural System Singapore 11.000% 06/30/07 1 Tincel Ltd 7.400% 06/13/11 1 ********* 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 ***