/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/060901.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, September 1, 2006, Vol. 9, No. 174 Headlines A U S T R A L I A & N E W Z E A L A N D 24 HOURS MINI: Court Sets Date to Hear Liquidation Bid 353 WAVERLEY ROAD: Members' Final Meeting Set on September 22 ACE COATINGS: Creditors Appoint Richard Judson as Liquidator ADC (AUSTRALIA) TECHNIQUE: Liquidator to Present Wind-Up Report AMTECH AUSTRALIA: To Declare Priority Dividend on Oct. 1 AWB LIMITED: AWBI Chairman Clarifies Single Desk Agreement BIGGIE RATT: Members and Creditors to Meet on Sept. 22 CAVALIER JOINERY: Enters Wind-Up Proceedings CORPORATE DELIGHTS: Members and Creditors Opt to Shut Down Firm DARK ELF: Court to Hear ACC's Liquidation Bid on Sept. 7 ENOTSDALG PTY: Undergoes Voluntary Liquidation FELTEX CARPETS: Investigation Unsatisfactory, Green Party Says FELTEX CARPETS: Commission Clears Godfrey Hirst Acquisition FLINDERS POWER: Fitch Affirms BB+ LT Issuer Default Rating FORD AUSTRALIA: Fitch Downgrades Issuer Default Rating to 'B' GENESIS LIQUOR: Creditors' Proofs of Claim Due on September 5 GLOBAL 4X4 ACCESSORIES: Creditors Agree to Liquidate Business GREENPAC ENTERPRISE: Liquidation Bid Hearing Set on Oct. 12 H.R HOARE: Members' Final Meeting Scheduled on September 22 INDYWELD PTY: Members and Creditors to Receive Wind-Up Report INDUSTRIAL SWEEPING: Shareholders Opt for Voluntary Liquidation INFORMATION KIOSK: Court to Hear CIR's Liquidation Petition JAMES HARDIE: NSW Government Further Extends FFA to September 30 JOHN STOREY: Liquidator to Present Wind-Up Report on Sept. 22 KEVIN O'SHEA: To Declare Dividend on October 1 KINGDOM BUILDERS: Faces Liquidation Petition LH NOMINEES: Placed Under Members' Voluntary Wind-Up MARN-SOU-KUNG: Members to Hold Final Meeting on September 22 MOLIORPANTON HOLDINGS: Receiver and Manager Ceases to Act NATIONAL INDUSTRIES: Liquidator Rennie to Present Wind-Up Report NAWAB AGRICULTURE: Creditors' Proofs of Claim Due on Sept. 29 NEILSON PRODUCTIONS: Names Anthony Robert Cant as Liquidator ONE HOBSON: Creditors Must Prove Debts by September 15 ORIGIN PACIFIC: To Resume Air Charter and Freight Services PHILIPS BUILDING: Final Meeting Scheduled on September 22 PICCWICK PTY: Faces Liquidation Proceedings PIONEER STEEL: Members to Hear Wind-Up Report on September 22 PRIMELIFE CORPORATION: PrimeLiving Acquires Elliot Gardens SPLASHDOWN HOLDINGS: To Declare Dividend on October 2 STONEHENGE PROPERTIES: Enters Liquidation Proceedings STYLISH SHOPFITTERS: Members Resolve to Close Business SUN MICROSYSTEMS: Members' Final Meeting Scheduled on Sept. 22 SURF CITY: Members and Creditors to Convene on September 22 TARANAKI 55: Appoints Joint and Several Liquidators THEODORE'S ON WINDSOR: Supreme Court Issues Wind-Up Order TRW AERONAUTICAL SYSTEMS: Members and Creditors to Meet Sept. 22 VILLA DEVELOPMENTS: Members Pass Resolution to Wind Up Firm C H I N A & H O N G K O N G CHINA EASTERN: Seeks Austerity Measures to Avert Losses CYBER RESOURCES: Declares Final Dividend GDMR (HONG KONG): Joint Liquidators Step Aside HANG SENG: Members' Final Meeting Fixed on September 21 HODEX DEVELOPMENT: Creditors and Contributories Hold Meeting HOI FUNG ALUMINUM: Creditors & Contributories Meeting Convened HOPEWELL HOLDINGS: Unveils Plans to Boost Property Investment HUNG FUNG: Names New Committee of Inspection Member JOIN-IN SHIRT: Liquidator Ceases to Act for Company KAM FAI: Liquidator Presents Wind-Up Report LEASUM LIMITED: Appoints Joint and Several Liquidators NEW AGE: Final Members' Meeting Set on September 19 OCEAN JET: Creditors and Contributories Hold First Meeting TITAN PETROCHEMICALS: First Half Earnings Drop to HKD65.4 Mil. UNION WAY: Court Appoints Joint Liquidators Y & H ENGINEERING: Names Chung and Man as Joint Liquidators I N D I A AES CORP: Accrues US$12M Liability in 2Q06 for Remediation Costs AES CORP: Plaintiffs File Opening Brief in Calif. Suit Appeal CEMENT CORPORATION: Awaits BIFR's OK on Revamp and Assets Sale DAEWOO INDIA: Assets Sale Attracts One Bidder FORD MOTOR: Executive Committee Chairman Robert E. Rubin Resigns SILICON GRAPHICS: Rosen Slome Hired as Panel's Conflicts Counsel SILICON GRAPHICS: Will Pay US$1.6M Prepetition Custom Duties SILICON GRAPHICS: Will Remit Contract Surcharges for US$75,000 SILICON GRAPHICS: Morgan Lewis Hires CRA Int'l as Consultants I N D O N E S I A INDOSAT: Posts IDR549-Bil. Net Income For the First Half of 2006 MEDIA NUSANTARA: Moody's Affirms (P)B1 Family and Bond Rating MEDIA NUSANTARA: S&P Affirms 'B+' Senior Secured Debt Rating J A P A N DAIEI INC: Marubeni to Sell Part of Stake to Retail Giants LEAR CORP: Faces Consolidated ERISA Violations Suit in Michigan LIVEDOOR: Books JPY6.4-Billion Net Loss in Third Quarter SANYO ELECTRIC: Wants to Delist from Nadaq and 3 Local Bourses XM SATELLITE: June 30 Balance Sheet Shows US$1.035B Deficit K O R E A KOOKMIN BANK: Preliminary Data Show Highest BIS Capital Ratio KYONGNAM BANK: Posts Lowest Capital Ratio Among Regional Banks STANDARD CHARTERED FIRST BANK: Last in BIS Capital Ratio TRIGEM COMPUTER: Gets Letters of Interest from Lenovo & 9 Others * Banks BIS Capital Ratios Up Slightly M A L A Y S I A AYER HITAM: July Default Amount Hits MYR41,517,039 FOREMOST HOLDINGS: Posts MYR12.9M Net Profit in Second Quarter FOREMOST HOLDINGS: Clarifies Disclosure on Unit's Wind-Up FURQAN BUSINESS: Austral Amalgamated Changes Name to EBF Land KIG GLASS: June 30 Balance Sheet Reveals Insolvency SUGAR BUN: Lists Additional 1,500,000 New Shares TENAGA NASIONAL: Lists and Quotes Shares Today P H I L I P P I N E S EQUITABLE PCI: SM Group Files Tender Offer for EPCIB Shares GLOBE TELECOM: S&P Affirms 'BB+' Rating with Stable Outlook MIRANT CORP: Discloses Final Results of Tender Offer PHILIPPINE AIRLINES: Baguio Gold to Finish Due Diligence Yr-end PHILIPPINE LONG DISTANCE: S&P Affirms BB+ For. Currency Rating RIZAL COMMERCIAL BANKING: Appoints and Promotes New Officers S I N G A P O R E DEWHURST PTE: Creditors Must Submit Proofs of Debt by Sept. 25 FLEXTRONICS INTERNATIONAL: To Pick Minority Stake in SEZ Scheme LESCOSING PTE: Pays Third and Final Dividend LKN-PRIMEFIELD: Uses SGD4M from Rights Issue to Repay Debt SEA KING: High Court to Hear Wind-Up Petition on September 8 T H A I L A N D BANK OF AYUDHYA: Acquires JPMorgan's 38.34% Stake in AJF Asset * Large Companies With Insolvent Balance Sheets - - - - - - - - ============================================ A U S T R A L I A & N E W Z E A L A N D ============================================ 24 HOURS MINI: Court Sets Date to Hear Liquidation Bid ------------------------------------------------------ The High Court of Auckland will hear a liquidation petition against 24 Hours Mini Supermarket Ltd on October 19, 2006, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition on July 24, 2006. The Plaintiff's Solicitor can be reached at: P.L. Windsor-Knaap Inland Revenue Department 1 Bryce Street, Hamilton New Zealand Telephone: (07) 959 0432 Inquiries to C. Williams: Telephone: (06) 968 4004 353 WAVERLEY ROAD: Members' Final Meeting Set on September 22 ------------------------------------------------------------- In accordance with Section 509 of the Corporations Act 2001, the final meeting of the members of 353 Waverley Road Pty Ltd will be held on September 22, 2006, at 10:30 a.m. The Troubled Company Reporter - Asia Pacific reported on April 12, 2006, that the company commenced a wind-up of its operations on March 1, 2006. The liquidator can be reached at: P. R. Vince Vince & Associates 51 Robinson Street Dandenong, Australia ACE COATINGS: Creditors Appoint Richard Judson as Liquidator ------------------------------------------------------------ At an extraordinary general meeting held on August 9, 2006, the members of Ace Coatings Pty Ltd resolved to voluntarily wind up the company's operations. Creditors appointed Richard Herbert Judson as liquidator at a separate meeting held later that day. The Liquidator can be reached at: Richard Herbert Judson Judson & Co Chartered Accountants Suite 4, Level 1 10 Park Road Cheltenham Victoria 3192 Australia Telephone: 9585 4155 ADC (AUSTRALIA) TECHNIQUE: Liquidator to Present Wind-Up Report --------------------------------------------------------------- Members of ADC (Australia) Technique Pty Limited will hold a final meeting on September 22, 2006, at 10:00 a.m., to receive the liquidators' report on the company's wind-up and property disposal exercises. The liquidators can be reached at: David J. F. Lombe Peter G. Yates Grosvenor Place 225 George Street Sydney, New South Wales 2000 Australia Telephone:(02) 9322 7000 AMTECH AUSTRALIA: To Declare Priority Dividend on Oct. 1 -------------------------------------------------------- Amtech Australia Pty Ltd will declare its first and final dividend for priority creditors on October 1, 2006. Failure to submit proofs of debt by August 22, 2006, will exclude a creditor from sharing in the company's dividend distribution. The joint and several liquidator can be reached at: T. M. Pogroske Grant Thornton Level 17, 383 Kent Street Sydney, New South Wales 2000 Australia AWB LIMITED: AWBI Chairman Clarifies Single Desk Agreement ---------------------------------------------------------- The Troubled Company Reporter - Asia Pacific reported on July 21, 2006, that the Australian Government backs the country's wheat export monopoly, and that the Western Australian Farmers Federation and the Victorian Farmers Federation have joined growing calls to keep the single desk wheat marketing system. A subsequent TCR-AP report said that concurrent with its profit forecast downgrade, AWB revealed that it is restructuring its monopoly wheat export arm -- AWB (International) -- which would increase the autonomy of its wheat export business. AWBI operates the monopoly -- known as the single desk, the TCR-AP noted. According to the report, though there were calls to strip AWB of its export monopoly, farmers have generally supported a continuation of the single desk, which they believe can win better prices for Australian wheat, but have urged changes to make the export arm more independent of its listed parent. In a statement from its Web site, AWB states that there has been increasing media and industry speculation regarding the services agreement between AWB and AWBI for the operation and management of the Single Desk. AWBI Chairman Ian Donges asserts that the only contentious issue appears to be a break fee clause in the services agreement. According to Mr. Donges, the services agreement reflects normal commercial business practices and the current break fee clause is designed to reimburse AWB for investments made in pool management systems. "The clause was put in place to ensure [AWB] increased investment in the National Pool over the long term. Examples of the long term investments made by [AWB] which have enhanced the Single Desk include Shaping the Future, Golden Rewards, Premium Choice Varieties, IT systems and staff," Mr. Donges explains. "The clause ensures that [AWB] can recover some of its fixed costs on these investments if the agreement ends. It also provides incentive to [AWB] to continue to invest in systems and services which ultimately benefit pool participants," Mr. Donges says. Mr. Donges notes that AWBI will be renegotiating the services agreement with AWB to reflect the recent corporate changes to increase the separation between the two. "The services agreement will have all appropriate legal checks and safeguards as part of functional separation between AWBI and [AWB] and once the new services agreement is completed it will be publicly released," Mr. Donges says. "Any break fee clause would be negotiated by AWBI and [AWB] Board and would take into account the Constitutional requirement to maximize returns to growers," Mr. Donges further says. AWB recounts that it has implemented a number of corporate changes to increase the separation of AWBI as part of its response to the Williams Review. Once completed, the new services agreement will take effect from October 1, 2006. About AWB AWB Limited -- http://www.awb.com.au/-- is Australia's leading agribusiness and one of the world's largest wheat marketing companies. It is also one of Australia's top 100 publicly listed companies. The Company is the exclusive manager and marketer of all Australian bulk wheat exports through what is known as the Single Desk. The Company markets wheat, and a range of other grains, into more than 50 countries, with Australian wheat exports worth up to AU$5 billion per year. AWB's footprint includes more than 430 outlets through its subsidiary landmark and has offices across the world. The company employs more than 2,700 staff reaching over 100,000 customers. AWB is also one of the nation's largest suppliers of rural merchandise, distributors of fertilizer, marketers of livestock, brokers of rural real estate and handlers of wool. In late 2005, AWB was accused of knowingly paying AU$290 million in kickbacks to the Government of Iraq, under Saddam Hussein's administration, through the United Nation's oil-for-food program. A UN report then found out that AWB paid the kickbacks to a Jordanian trucking company linked to Hussein's deposed regime. The Australian Government then appointed a commission, headed by retired judge Terence Cole, to investigate into the Company's role in and the Government's alleged "knowledge" of the scandal. The "Cole Inquiry" is currently underway. The scandal is anticipated to create great political repercussions to the Australian Government, given the country's contribution to military action against President Hussein in the 2003 invasion of Iraq. In the Company's half-year report ended March 31, 2006, Brett Kallio, a partner at Ernst & Young, noted that there is inherent uncertainty surrounding the consolidated entity with regard to matters associated with the Cole Inquiry. As the findings of the Cole Inquiry have not yet been determined and reported, there is uncertainty as to the nature of these findings and the financial effect, if any, on the consolidated entity and its operations, Mr. Kallio stated. * * * The Troubled Company Reporter - Asia Pacific reported on July 12, 2006, that six American wheat farmers have launched a AU$1- billion class action against AWB in the United States, claiming its dealings in overseas markets damaged their own incomes. According to the TCR-AP report, more farmers are considering joining the class action. The TCR-AP also previously reported that Australian law firm Maurice Blackburn Cashman was considering a class action against AWB on behalf of shareholders who lost money in the wake of the Cole Inquiry. The Company's balance sheet as of March 31, 2006, reflected total assets of AU$5.7 billion and total liabilities of AU$4.54 billion, showing total equity of AU$1.16 billion. BIGGIE RATT: Members and Creditors to Meet on Sept. 22 ------------------------------------------------------ A final meeting will be held for the members and creditors of Biggie Ratt Pty Ltd on September 22, 2006, at 10:00 a.m. During the meeting, Liquidators Hellen and Fordyce will present the report on the company's wind-up proceedings and property disposal exercises. As reported by the Troubled Company Reporter - Asia Pacific, the company declared a final priority dividend on December 13, 2005. The Joint and Several Liquidators can be reached at: Bradley Hellen Ann Fordyce Pilot Partners Chartered Accountants Level 5, 175 Eagle Street Brisbane, Queensland 4000 Australia CAVALIER JOINERY: Enters Wind-Up Proceedings -------------------------------------------- Members and creditors of Cavalier Joinery Pty Ltd on August 11, 2006, decided to wind up the company's operations and appoint R. A. Sutcliffe as liquidator. The Liquidator can be reached at: R. A. Sutcliffe Ground Floor 192-198 High Street Northcote, Victoria 3070 Australia Telephone:(03) 9482 6277 CORPORATE DELIGHTS: Members and Creditors Opt to Shut Down Firm --------------------------------------------------------------- Members and creditors of Corporate Delights Pty Ltd met on August 14, 2006, and agreed to shut down the company's business. In this regard, Jonathan Paul McLeod was appointed as liquidator. The Liquidator can be reached at: Jonathan Paul McLeod McLeod & Partners Australia DARK ELF: Court to Hear ACC's Liquidation Bid on Sept. 7 -------------------------------------------------------- The High Court of Auckland will hear the liquidation petition filed against Dark Elf Developments Ltd on September 7, 2006, at 10:45 a.m. The Accident Compensation Corporation filed the petition on July 3, 2006. The Plaintiff's Solicitor can be reached at: Dianne S. Lester Maude & Miller, 2nd Floor McDonald's Building Cobham Court, Porirua City New Zealand ENOTSDALG PTY: Undergoes Voluntary Liquidation ---------------------------------------------- At a general meeting held on August 14, 2006, the members of Enotsdalg Pty Ltd resolved to voluntarily wind up the company's operations and appoint Michael Owen as liquidator. The Liquidator can be reached at: Michael Owen Chartered Accountant BDO Kendalls Level 18, 300 Queen Street Brisbane, Queensland 4000 Australia FELTEX CARPETS: Investigation Unsatisfactory, Green Party Says -------------------------------------------------------------- Feltex Carpets Limited workers and shareholders left devastated by the recent NZ$200 million drop in the company's value deserve more than the unsatisfactory and inappropriate Securities Commission investigation that was recently completed, Green Party Economic Development Spokesperson Sue Bradford says. As reported in the Troubled Company Reporter - Asia Pacific on August 28, 2006, Feltex shares were halted moments before the Securities Commission released its decision clearing the company of prospectus irregularities. The Commission has found no breaches of the securities laws in the Prospectus. Thus, there was no further action taken in regard to the matter, the TCR-AP noted. "The Securities Commission decision to take no further action seems bizarre, particularly in light of the Commission's own vision statement, which purports to want to ensure that 'investors can have confidence in New Zealand's securities markets so that the markets increasingly attract investment.' Surely the wiping of NZ$200 million off the value of one company in such a short time completely undermines this goal," Ms. Bradford contends. According to Ms. Bradford, in 1997, Credit Suisse First Boston Asian Merchant Partners purchased Feltex's shares for NZ$19.5 million, split these into 120 million shares, and floated them in the IPO at between NZ$1.70 and $1.95 a share in 2004, walking away with a cool NZ$200 million profit. The Securities Commission gave Credit Suisse First Boston nine exemptions under the Securities Act for information not included in the flawed IPO Prospectus. Given this involvement, Ms. Bradford relates, it seems highly inappropriate that the Securities Commission should have been the body to investigate the IPO, as its ability to fairly investigate its own actions must be in question. Ms. Bradford says that it is Feltex workers, Feltex shareholders, and the regions and communities where Feltex operates that are the biggest losers after this extraordinary expropriation of wealth. Ms. Bradford notes that it is not the first time that Feltex has been pillaged. It was raided by Equiticorp in the 1980s and almost collapsed at the same time Equiticorp did. The head of Equiticorp, Allan Hawkins, was eventually convicted and jailed for fraud, Ms. Bradford relates, noting that it is a tribute to the workers and local management of Feltex that the company still remains a profitable carpet manufacturer. "I hope that Feltex will be able to conclude an agreement with an investor that keeps the company in kiwi hands, employing kiwi workers," Ms. Bradford says. About Feltex Established over 50 years ago, Feltex Carpets Limited -- http://www.feltex.com/-- has built a reputation for being one of the world's leading manufacturers of superior-quality carpet. The Feltex operation includes a wool scouring plant, six spinning mills, three tufted carpet mills, a woven carpet mill and offices in New Zealand, Australia and the United States. The Company also leads the way in exports, with customers throughout South East Asia, Japan, the United States, the Middle East and other key world markets. Feltex listed on the local stock exchange in mid-2004 in a NZ$254-million initial public offering -- the year's largest in New Zealand. However, the Company fell short of its prospectus earnings projections, reporting a net profit of NZ$11.8 million in the fiscal year to June 30, 2005, about half the forecast NZ$23.9 million. The Company has struggled with losses and earnings downgrades, flogging sales, and a dipping share price. The Company closed plants and in October 2005, axed 235 jobs, mostly in Australia, and by 2006, abandoned merger talks with Australian competitor Godfrey Hirst after it suggested that the apparent "white knight" investor was more interested in a reverse takeover. Godfrey Hirst later sold out its nearly 9% stake in the Company. In February 2006, Feltex reported a first-half after tax loss of NZ$11.83 million, down almost 200% compared with the net loss in the previous year. The Company is currently undergoing negotiations for a capital raising exercise, proceeds of which will be used to ease its NZ$128-million debt to ANZ Bank. FELTEX CARPETS: Commission Clears Godfrey Hirst Acquisition ----------------------------------------------------------- The Troubled Company Reporter - Asia Pacific reported on August 2, 2006, that Feltex Carpets Limited has received a takeover offer from privately owned Australian rival Godfrey Hirst for up to 12 cents per share. Pursuant to an Agreement between the parties, Godfrey Hirst began due diligence, which was completed on August 28, 2006. Subsequently, the Commerce Commission has cleared Godfrey Hirst to acquire some or all of Feltex's assets. CC Chairperson Paula Rebstock says that the Commission was satisfied that the proposed acquisition would not have, or would not be likely to have, the effect of substantially lessening competition in any of the relevant markets. The Commission notes that a public version of its written decision will shortly be available on its Web site, under Public Registers, at: http://www.comcom.govt.nz/ About Feltex Established over 50 years ago, Feltex Carpets Limited -- http://www.feltex.com/-- has built a reputation for being one of the world's leading manufacturers of superior-quality carpet. The Feltex operation includes a wool scouring plant, six spinning mills, three tufted carpet mills, a woven carpet mill and offices in New Zealand, Australia and the United States. The Company also leads the way in exports, with customers throughout South East Asia, Japan, the United States, the Middle East and other key world markets. Feltex listed on the local stock exchange in mid-2004 in a NZ$254-million initial public offering -- the year's largest in New Zealand. However, the Company fell short of its prospectus earnings projections, reporting a net profit of NZ$11.8 million in the fiscal year to June 30, 2005, about half the forecast NZ$23.9 million. The Company has struggled with losses and earnings downgrades, flogging sales, and a dipping share price. The Company closed plants and in October 2005, axed 235 jobs, mostly in Australia, and by 2006, abandoned merger talks with Australian competitor Godfrey Hirst after it suggested that the apparent "white knight" investor was more interested in a reverse takeover. Godfrey Hirst later sold out its nearly 9% stake in the Company. In February 2006, Feltex reported a first-half after tax loss of NZ$11.83 million, down almost 200% compared with the net loss in the previous year. The Company is currently undergoing negotiations for a capital raising exercise, proceeds of which will be used to ease its NZ$128-million debt to ANZ Bank. FLINDERS POWER: Fitch Affirms BB+ LT Issuer Default Rating ---------------------------------------------------------- Fitch Ratings affirms the 'BBB-' senior secured rating on Flinders Power Partnership's -- formerly known as NRG Flinders -- project debt bank facility as well as the its 'BB+' Long-term Issuer Default Rating and removed the ratings from Rating Watch Evolving where they were placed on January 16, 2006. The Outlook for the ratings is Stable. The rating actions follow completion of NRG Energy Inc.'s (rated IDR 'B'/Stable) sale of Flinders Power to Babcock & Brown in accordance with the latter's proposed financial and acquisition structure. The ratings benefit from Flinders Power's importance to the South Australian market as the provider of around 40% of the States' electricity supply. Flinders Power's plants enjoy the lowest marginal cost as the only coal-fired facilities in the region. While Flinders Power relies heavily on two plants in close geographical proximity, a portfolio approach to the six available units, as well as a contract position over the capacity of the Osborne cogeneration facility provides production flexibility and some ability to 'self-insure'. Fitch expects that Flinders Power will continue to exhibit a conservative hedging position, which is expected to stabilize its cash flows. Flinders Power's operating costs are expected to be relatively predictable through its captive long-term coal supply, with reserves sufficient until at least 2017. Flinders Power's relatively high leverage reduces the partnership's financial flexibility. Other risks include Flinders Power's inherited loss-making Osborne contracts, and its counterparty concentration risk to The Australian Gas Light Company Limited, although mitigated somewhat by AGL's investment grade rating from Fitch (rated IDR 'BBB+'/Rating Watch Negative). While Flinders Power's coal-fired plants are not new facilities, Playford was refurbished in 2005 and its performance is improving in its targeted mid-merit role. The senior secured rating of 'BBB-' also reflects the strong structural features of the project finance facility. Key enhancements include: * first ranking senior secured status; * cash flow waterfall (with distribution lock-ups which govern distributions to its shareholder); * debt service cash reserve; * Osborne cash reserve; * loss-making Osborne contract structured separately to project debt; * restrictions on further indebtedness; and * other covenants. Fitch placed its ratings for Flinders Power on RWE on Jan. 16, 2006, after an announcement that its U.S. parent, NRG Energy, was considering various strategic alternatives with respect to its Australian investments, including a potential sale of its assets. On June 2, 2006, NRG Energy entered into a sale agreement to sell Flinders Power to the Australian investment bank Babcock & Brown for approximately AU$317 million (US$238 million). The transaction also includes the assumption of AU$238 million of non-recourse debt. The acquisition of the Flinders Power assets will assist Babcock & Brown in its objective of establishing a Babcock & Brown-managed diversified power generation fund, potentially by the end of 2006. Flinders Power is a South Australia-based electricity generator, originally acquired under 100-year lease by NRG Energy in 2000. Flinders Power's operations comprise of: (a) 960MW of generation capacity, including Northern and Playford power stations; (b) output from Osborne cogeneration facility (long-term power purchase agreement); (c) as well as rights to the Leigh Creek coalfield, responsibility for the township and the railway. FORD AUSTRALIA: Fitch Downgrades Issuer Default Rating to 'B' ------------------------------------------------------------- Fitch Ratings downgrades the Issuer Default Rating of Ford Motor Company and Ford Motor Credit Company to 'B' from 'B+'. Fitch also lowers the Ford's senior unsecured rating to 'B+/RR3' from 'BB-/RR3' and Ford Credit's senior unsecured rating to 'BB-/RR2' from 'BB/RR2'. The Rating Outlook remains Negative. The downgrade is based on the significant production cutbacks in the third and fourth quarter that reflect persistent share losses across key product categories. Negative cash flows, including restructuring costs, could exceed US$7 billion in 2006, including working capital and restructuring outflows. Cash outflows related to restructuring actions will continue in 2007, although operating losses could moderate as cost reduction efforts are realized. Sustained market share losses or a decline in economic conditions through 2007 would result in continued high levels of cash outflows and erosion of liquidity. Although liquidity remains adequate, progress in achieving structural cost reductions and maintaining the confidence of trade creditors will remain critical over the near term. Implicit in the production cutbacks are expectations of continued weak pickup sales that have resulted in extended inventories. Volume declines in Ford's pickup segment, along with continued declines in mid-size and large SUVs, are likely to accelerate revenue declines and negative cash flows in 2006. Although continued share losses and price erosion were anticipated as a result of GM's upcoming refreshed pickup line and the start-up of Toyota's new pickup plant, vulnerability to this segment has increased as a result of high gas prices, a potential slowdown in economic conditions, and a contracting construction segment. Ford has demonstrated recent growth in certain car segments, where industry sales have been migrating, but volumes and profitability in these segments will be insufficient in the short-term to offset the decline in higher- margin mid-size and large SUVs and pickups. Ford's product pipeline is modest over the near term, although two crossover products to be introduced in 2006 (the Ford Edge and Lincoln MKX) are expected to partially offset continued share erosion. Ford's 'RR3' Recovery Rating reflects good recovery prospects of 50-70% in the event that the Company is forced to seek protection under Chapter 11. Recovery values benefit from Ford's holdings in Mazda, operations in Asia and South America, very modest recoveries from Premier Automotive Group operations, and 100% ownership in Ford Credit. Recovery for senior unsecured holders also benefits from being in a superior position to the Capital Trust II securities (which represents approximately 29% of consolidated debt). Recovery values associated with Ford Credit are likely to decline as Ford Credit's balance sheet shrinks and repatriated capital is used to finance operating losses. Fitch's recovery analysis also projects that due to declining market share and low current capacity utilization, at least one additional assembly plant will be shut down (in addition to those already announced). Fitch's recovery scenario incorporates a Chapter 11 filing of North American operations only, and would result in significant claims from working capital liabilities (trade creditors, dealers, fleet customers, etc.) in addition to unsecured debtholders. Fitch also factored in liabilities related to on and off-balance sheet liabilities that could augment claims. Fitch did not factor in claims related to potential termination or alteration of legacy OPEB and pension costs. In the event of a filing, Fitch anticipates that Ford would not attempt to terminate its pension plans (for rationale, please see Fitch's report on General Motors dated March 1, 2006). Changes to OPEB liabilities, are expected to be negotiated as part of a new labor agreement in the event of a Chapter 11 filing (as is taking place at Delphi), without resulting in claims against the estate. The restructured enterprise value includes reduced production volumes, and structural cost reductions to an extent that a 3% operating margin could be achieved in North America. Declining revenues are unlikely to reverse through 2007 due to market share losses and declining mix. Despite modest progress on the cost side, the pace of cost reductions is not expected to keep up with revenue losses (assuming continued high commodity costs), thereby continuing negative cash flows. Over the intermediate-term, reducing inventories and producing closer to demand will enhance even-flow production and production efficiencies, and reduce reliance on ruinous incentive programs. However, lower production levels, coupled with already weak capacity utilization, ill increase short-term cash outflows and heighten the urgency of achieving substantive structural cost reductions. Ford's production cutbacks will also heighten operating and financial stresses throughout the supply chain, increasing the risks of further bankruptcies or other supply disruptions. Supply chain stresses are expected to result in increased risks of financial support and will limit the potential for any cost savings to accrue to Ford over the near term from the restructuring of the supply base. Ford Credit's (FMCC) IDR remains linked to those of Ford due to the close business relationship between them. Fitch expects FMCC's earnings and dividends to decline noticeably in 2006 primarily due to lower receivables outstanding and margins. FMCC has benefited from lower provision expense, as the quality of its receivables pool has increased, but the pace of these improvements is expected to slow going forward. Fitch believes that FMCC maintains a good degree of liquidity relative to its rating. Supporting this is FMCC's ability to sell or securitize a broad spectrum of assets such as retail finance, lease, and wholesale loans. Moreover, FMCC continues to hold high cash balances and its assets mature faster than its debt. FMCC's 'RR2' Recovery Rating indicates superior recovery prospects on unsecured debt resulting from solid unencumbered asset protection, although discounted to account for stressed performance and/or disposition. Fitch downgrades these ratings with a Negative Rating Outlook: * Ford Motor Co. -- Issuer Default Rating to 'B' from 'B+'; -- Senior debt to 'B+' from 'BB-' * Ford Motor Credit Co. -- Issuer Default Rating to 'B' from 'B+'; -- Senior debt to 'BB-' from 'BB'. * FCE Bank Plc -- Issuer Default Rating to 'B' from 'B+-'; -- Senior debt to 'BB-' from 'BB' * Ford Capital B.V. -- Issuer Default Rating to 'B' from 'B+'; -- Senior debt to 'BB-' from 'BB' * Ford Credit Canada Ltd. -- Issuer Default Rating to 'B' from 'B+'; -- Senior debt to 'BB-' from 'BB' * Ford Motor Capital Trust II -- Preferred stock to 'CCC+/RR6' from 'B-/RR6' * Ford Holdings, Inc. -- Issuer Default Rating to 'B' from 'B+'; -- Senior debt to 'B+' from 'BB-' * Ford Motor Co. of Australia -- Issuer Default Rating to 'B' from 'B+'; -- Senior debt to 'B+' from 'BB-'. * Ford Credit Australia Ltd. -- Issuer Default Rating to 'B' from 'B+' -- Senior debt to 'BB-' from 'BB' * PRIMUS Financial Services (Japan) -- Issuer Default Rating to 'B' from 'B+' * Ford Credit de Mexico, S.A. de C.V. -- Issuer Default Rating to 'B' from 'B+' * Ford Motor Credit Co. of New Zealand -- Issuer Default Rating to 'B' from 'B+'; -- Senior debt to 'BB-' from 'BB' * Ford Credit Co S.A. de CV -- Issuer Default Rating to 'B' from 'B+' -- Senior debt to 'BB-' from 'BB' Fitch also affirms these short-term ratings: * Ford Motor Credit Co. -- Commercial Paper 'B' * FCE Bank Plc -- Commercial Paper and short-term debt 'B' * Ford Credit Canada Ltd. -- Commercial Paper 'B' * Ford Credit Australia Ltd. -- Commercial Paper 'B' * Ford Motor Credit Co. of New Zealand -- Commercial Paper 'B' GENESIS LIQUOR: Creditors' Proofs of Claim Due on September 5 ------------------------------------------------------------- Genesis Liquor Distributors Pty Limited notifies parties-in- interest of its intention to declare dividend on October 13, 2006. Liquidator David J. Kerr require the company's to file their proofs of debt by September 5, 2006, for them to share the dividend distribution. Mr. Kerr can be reached at: David J. Kerr RSM Bird Cameron Partners Level 12, 60 Castlereagh Street Sydney, New South Wales 2000 Australia Telephone:(02) 9233 8933 Facsimile:(02) 9233 8521 GLOBAL 4X4 ACCESSORIES: Creditors Agree to Liquidate Business ------------------------------------------------------------- The creditors of Global 4x4 Accessories Pty Ltd convened on July 13, 2006, and decided to liquidate the company's business. Accordingly, Neil Robert Cussen was appointed as liquidator. The Liquidator can be reached at: Neil Robert Cussen Horwath Sydney Partnership Level 10, 1 Market Street Sydney, New South Wales 2000 Australia GREENPAC ENTERPRISE: Liquidation Bid Hearing Set on Oct. 12 ----------------------------------------------------------- A petition to liquidate Greenpac Enterprise Ltd will be heard before the High Court of Auckland on October 12, 2006, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition with the Court on July 24, 2006. The Plaintiff's Solicitor can be reached at: P.L. Windsor-Knaap Inland Revenue Department 1 Bryce Street, Hamilton New Zealand Telephone: (07) 959 0432 Inquiries to C. Williams: Telephone: (06) 968 4004 H.R HOARE: Members' Final Meeting Scheduled on September 22 ----------------------------------------------------------- Members of H.R Hoare Pty Limited will hold a final meeting on September 22, 2006, at 10:00 a.m., to receive Liquidator Sule Arnautovic's report on the company's wind-up proceedings and property disposal exercises. According to the Troubled Company Reporter - Asia Pacific, the company commenced a wind-up of its operations on July 12, 2006. The Liquidator can be reached at: Sule Arnautovic Jirsch Sutherland Chartered Accountants Level 2, 84 Pitt Street Sydney, New South Wales 2000 Australia Telephone:(02) 9233 2111 Facsimile:(02) 9233 2144 INDYWELD PTY: Members and Creditors to Receive Wind-Up Report ------------------------------------------------------------- A final meeting of the members and creditors of Indyweld Pty Limited will be held on September 22, 2006, at 10:00 a.m. During the meeting, Liquidator Danny Vrkic will report on the company's wind-up proceedings and property disposal exercises. As reported by the Troubled Company Reporter - Asia Pacific on October 17, 2005, the company commenced a wind-up of its operations on September 12, 2005. The Liquidator can be reached at: Danny Vrkic c/o Jirsch Sutherland & Co Wollongong PO Box 573 Wollongong, New South Wales Australia INDUSTRIAL SWEEPING: Shareholders Opt for Voluntary Liquidation --------------------------------------------------------------- Shareholders of Industrial Sweeping Ltd resolved on August 16, 2006, to voluntary liquidate the company and appoint Stephen Mark Lawrence and Anthony John McCullagh as joint and several liquidators. In this regard, the company's creditors are required to prove their debts by September 29, 2006, for them to share in any distribution the company will make. According to the Troubled Company Reporter -Asia Pacific, the Commissioner of Inland revenue filed a petition to liquidate the company on May 18, 2006. The petition was scheduled for hearing on August 24, 2006. The Joint Liquidators can be reached: Stephen Mark Lawrence Horwath Corporate (Auckland) Limited P.O. Box 3678, Shortland Street Auckland, New Zealand Telephone: (09) 308 1611 Facsimile: (09) 302 0536 INFORMATION KIOSK: Court to Hear CIR's Liquidation Petition ----------------------------------------------------------- A petition to liquidate Information Kiosk Systems NZ Ltd will be heard before the High Court of Auckland on October 19, 2006, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition with the Court on July 24, 2006. The Plaintiff's Solicitor can be reached at: P.L. Windsor-Knaap Inland Revenue Department 1 Bryce Street, Hamilton New Zealand Telephone: (07) 959 0432 Inquiries to C. Williams: Telephone: (06) 968 4004 JAMES HARDIE: NSW Government Further Extends FFA to September 30 ---------------------------------------------------------------- The Troubled Company Reporter - Asia Pacific had reported that to give time to assess possible options under a Final Funding Agreement between James Hardie Industries Limited and the NSW Government, which was established on December 1, 2005, the parties agreed to extend the deadline to satisfy certain conditions precedent from June 30, 2006, to July 31, then later to August 31. A follow-up report from the Sydney Morning Herald relates that the NSW Government further extended the deadline until September 30, 2006. Premier Morris Iemma said that the extension "will allow further time for all parties to resolve the outstanding taxation issues," the paper says. Asbestos compensation campaigner Bernie Banton argued that James Hardie "shouldn't be given any further extension of time," the Australian Associated Press relates. Still, Mr. Banton is determined reach a compensation deal. About James Hardie James Hardie Industries Limited -- http://www.jameshardie.com/ -- manufactures, markets and distributes fiber cement and gypsum products, fiberglass reinforced plastic and PVC products, sanitary ware and bathroom products, insulating materials and fillers, strippers and adhesives. On July 2, 1998, the then public company announced a plan of reorganization and capital restructuring. James Hardie N.V. was incorporated in August 1998 as an intermediary holding company, with all of its common stock owned by indirect subsidiaries of JHIL. Effective as of November 1998, JHIL contributed its fibre cement businesses, its United States gypsum wallboard business, its Australian and New Zealand building systems businesses and its Australian windows business to JHNV and its subsidiaries. On July 24, 2001, JHIL announced a further plan of reorganization and capital restructuring, which reorganization was completed on October 19, 2001. In connection with the 2001 Reorganization, James Hardie Industries N.V., formerly RCI Netherlands Holdings B.V., issued common shares represented by CHESS Units of Foreign Securities on a one for one basis to existing JHIL shareholders in exchange for their shares such that JHINV became the new ultimate holding company for JHIL and JHNV. Following the 2001 Reorganization, JHINV controls the same assets and liabilities as JHIL controlled immediately prior to the 2001 Reorganization. The Company's troubles began with its "under-funded" allocation for asbestos claims, which were brought in by people who suffer or may have diseases caused by exposure to the asbestos-related products produced by JHIL. In 2001, James Hardie set up an independent entity, Medical Research and Compensation Foundation, to handle asbestos claims. The Foundation has warned that it could run out of money within five years. The Asbestos Diseases Foundation of Australia and workers unions called for all the Company's asbestos profits to be immediately placed in the fund. James Hardie was later accused of topping up the dwindling asbestos fund it established. By 2004, James Hardie's former asbestos manufacturing subsidiaries -- Amaca Pty Ltd, Amaba Pty Ltd, and ABN 60 Pty Ltd -- are three of around 150 defendants in asbestos litigation, and based on the Foundation's own figures, they account for US$1,000,000,000 of the predicted US$6,000,000,000 future asbestos liabilities in Australia. Although James Hardie stopped making asbestos products in 1987, the average 35-year latency of mesothelioma, an asbestos-related disease, means asbestos compensation funds will be needed until mid-century. In a 2005 report by a company-hired actuary from KPMG, it was predicted that 4,915 Australians would contract mesothelioma from exposure to Hardie products in the coming decades. When less serious forms of asbestos-related disease are included, James Hardie should expect to compensate 8,725 victims. On December 1, 2005, the Company announced that the NSW Government and a wholly owned Australian subsidiary of the Company -- LGTDD Pty Ltd -- had entered into a conditional agreement to provide long-term funding to a special purpose fund that will provide compensation for Australian asbestos-related personal injury claims against certain former James Hardie asbestos companies. The amount of the asbestos provision of AU$1 billion, at March 31, 2006, is the Company's best estimate of the probable outcome, which estimate includes an actuarial calculation prepared by KPMG Actuaries Pty Ltd of the projected future cash outflows, undiscounted and uninflated, and the anticipated tax deduction arising from Australian legislation which came into force on April 6, 2006. JOHN STOREY: Liquidator to Present Wind-Up Report on Sept. 22 ------------------------------------------------------------- Members of John Storey Pty Limited will hold a final meeting on September 22, 2006. At the meeting, Liquidator Kenneth John Rennie will report on the company's wind-up proceedings and property disposal exercises. The Liquidator can be reached at: Kenneth John Rennie Ernst & Young Level 37, 680 George Street Sydney, New South Wales 2000 Australia Telephone:(02) 9248 4304 KEVIN O'SHEA: To Declare Dividend on October 1 ---------------------------------------------- Kevin O'Shea & Company Pty Ltd will declare its first and final dividend to creditors on October 1, 2006, to the exclusion of those who were not able to prove their claims by August 22, 2006. The joint and several liquidator can be reached at: D. J. Offermans c/o Offermans PPB Level 7, Suncorp Plaza 62-73 Sturt Street Townsville, Queensland 4810 Australia Telephone:(07) 4724 0000 Facsimile:(07) 4724 0060 KINGDOM BUILDERS: Faces Liquidation Petition -------------------------------------------- A petition to liquidate Kingdom Builders Ltd will be heard before the High Court of Auckland on September 7, 2006, at 10:45 a.m. The Accident Compensation Commission filed the petition with the Court on June 26, 2006. The Plaintiff's Solicitor can be reached at: Dianne S. Lester Maude & Miller, 2nd Floor McDonald's Building Cobham Court, Porirua City New Zealand LH NOMINEES: Placed Under Members' Voluntary Wind-Up ---------------------------------------------------- After a meeting held on June 15, 2006, the members of LH Nominees Pty Limited agreed to voluntarily wind up the company's operations and appoint David M. McCarthy as joint and several liquidator. Mr. McCarthy can be reached at: Christopher R. Campbell Deloitte Touche Tohmatsu Grosvenor Place 225 George Street Sydney, New South Wales 2000 Australia MARN-SOU-KUNG: Members to Hold Final Meeting on September 22 ------------------------------------------------------------ The members of Marn-Sou-Kung Pty Limited will hold a final meeting on September 22, 2006, at 10:00 a.m. to receive the liquidators' report on the company's wind-up proceedings and property disposal exercises. The liquidators can be reached at: Stephen Graham Longley David Laurence Mcevoy PricewaterhouseCoopers Freshwater Place 2 Southbank Boulevard Southbank, Victoria 3006 Australia MOLIORPANTON HOLDINGS: Receiver and Manager Ceases to Act --------------------------------------------------------- Justin Denis Walsh ceased to act on August 7, 2006, as receiver and manager of all the assets and undertakings of Moliorpanton Holdings Pty Ltd. Mr. Walsh can be reached at: Justin Denis Walsh Ernst & Young Level 5, Waterfront Place 1 Eagle Street Brisbane, Queensland 4000 Australia NATIONAL INDUSTRIES: Liquidator Rennie to Present Wind-Up Report ---------------------------------------------------------------- Members of National Industries (NSW) Pty Ltd will hold a final meeting on September 22, 2006, at 10:30 a.m., to receive Liquidator Kenneth John Rennie's report on the company's wind-up proceedings and roperty disposal exercises. The Liquidator can be reached at: Kenneth John Rennie Ernst & Young Level 37, 680 George Street Sydney, New South Wales 2000 Australia Telephone:(02) 9248 4304 NAWAB AGRICULTURE: Creditors' Proofs of Claim Due on Sept. 29 ------------------------------------------------------------- Anthony Charles Harris was appointed official Liquidator of Nawab Agriculture & Horticulture Ltd on August 7, 2006. Mr. Harris requires the company's creditors to submit their proofs of claim by September 29, 2006, for them to share in any distribution the company will make. The Troubled Company Reporter - Asia Pacific reported on August 1, 2006, that the Accident Compensation Commission filed a wind- up petition against the company. The Court heard the petition on August 7, 2006. The Liquidator can be reached at: Anthony Charles Harris Harris Neil & Associates Limited Level Two, 181 Devonport Road Tauranga, New Zealand Telephone: (07) 571 6384 NEILSON PRODUCTIONS: Names Anthony Robert Cant as Liquidator ------------------------------------------------------------ The members of Neilson Productions Pty Ltd convened on August 11, 2006, and agreed to voluntarily wind up the company's operations. In this regard, Anthony Robert Cant was appointed as liquidator. The Liquidator can be reached at: Anthony Robert Cant Romanis Cant Chartered Accountants 106 Hardware Street Melbourne, Australia ONE HOBSON: Creditors Must Prove Debts by September 15 ------------------------------------------------------ Creditors of One Hobson Street Limited are required to submit their proofs of claim to Liquidator Bernard Spencer Montgomerie by September 15, 2006. Failure to prove debts will exclude a creditor from sharing in any distribution the company will make. The Liquidator can be reached at: B.S. Montgomorie Montgomerie & Associates Insolvency Practitioners P.O. Box 65, Auckland New Zealand Telephone: (09) 368 7672 Facsimile: (09) 307 0174 ORIGIN PACIFIC: To Resume Air Charter and Freight Services ---------------------------------------------------------- On August 31, 2006, Origin Pacific Airways advised that it would resume an air charter service, the New Zealand Press Association reports. The report cites Origin founder and managing director Robert Inglis' letter to passengers, as saying that the airline would recommence charter flights, in addition to its freight service, as the division had operated "significantly profitably". The Troubled Company Reporter - Asia Pacific reported on August 11, 2006, that Origin Pacific "has lost its struggle to survive" and has suspended operations, putting most of its 260 staff out of work immediately. Thus, Origin Pacific halted its passenger services on August 10, 2006, after it was unable to secure the capital urgently needed to reduce its debt. Origin Pacific, however, indicated hopes of continuing its freight operations. According to Mr. Inglis, Origin was looking at opportunities for its fleet but was not considering returning to its previous level of regional scheduled flights "whilst our State-owned competitor continues to enjoy such an unfettered dominant position," New Zealand Herald relates. "The airline is considering a range of initiatives for recapitalization and options for future operations," Mr. Inglis notes. A number of interested parties have formally entered into due diligence on both Origin Pacific' freight and passenger businesses, NZPA reveals. About Origin Pacific Origin Pacific Airways -- http://www.originpacific.co.nz/-- was initially launched in 1997 as an air charter service and continues to offer charters tailored to the specific needs of business and groups. Origin Pacific Airways operates from its own purpose-built facilities at Nelson Airport. The Company is 100% New Zealand owned and managed and run by people with extensive knowledge of air travel and proven success in running airline businesses. * * * The Troubled Company Reporter - Asia Pacific reported on August 11, 2006, that Origin Pacific Airways was urgently seeking fresh capital to help reduce debt. The report noted that a capital injection was necessary to ensure that the airline could continue to "provide the competition so sorely needed in regional aviation services." However, a subsequent TCR-AP report noted that Origin Pacific halted its passenger services on August 10, 2006, saying that it has been unable to secure the capital urgently needed to reduce its debt. The action put most of its 260 staff out of work immediately. PHILIPS BUILDING: Final Meeting Scheduled on September 22 --------------------------------------------------------- The members and creditors of Philips Building Pty Ltd will hold a final meeting on September 22, 2006, at 10:00 a.m. At the meeting, the members and creditors will be asked to: -- receive a report from the liquidator on the company's wind-up proceedings that will end on September 22, 2006; -- empower the liquidator to destroy all books and records of the company on completion of all duties; and -- discuss other business. The Liquidator can be reached at: Richard Albarran c/o Hall Chadwick Level 29, 31 Market Street Sydney, New South Wales 2000 Australia PICCWICK PTY: Faces Liquidation Proceedings ------------------------------------------- At an extraordinary general meeting held on August 11, 2006, the members of Piccwick Pty Ltd resolved to voluntarily liquidate the company's business. Subsequently, Laurence A. Fitzgerald was appointed as joint and several liquidators. The Joint and Several Liquidators can be reached at: Laurence A. Fitzgerald Horwath BRI (Vic) Pty Ltd Chartered Accountants Level 30, The Rialto 525 Collins Street Melbourne, Victoria 3000 Australia PIONEER STEEL: Members to Hear Wind-Up Report on September 22 ------------------------------------------------------------- Members of Pioneer Steel Pty Ltd will convene on September 22, 2006, to receive the liquidator's report on the company's wind- up proceedings and property disposal exercises. The liquidator can be reached at: Kenneth John Rennie Ernst & Young Level 37, 680 George Street Sydney, New South Wales 2000 Australia Telephone:(02) 9248 4304 PRIMELIFE CORPORATION: PrimeLiving Acquires Elliot Gardens ---------------------------------------------------------- Primelife Corporation Limited advises that PrimeLiving Trust, an unlisted acquisition trust jointly owned and managed by Primelife, Babcock & Brown Limited and MFS Limited, has completed the acquisition of Elliot Gardens Retirement Village in Port Elliot, South Australia. Jim Hazel, Primelife Managing Director, notes that the development is well underway with community facilities close to completion. "This acquisition takes total units under management by Primelife to 2,278 and total units under development to 509," Mr. Hazel discloses. "This is the Trust's first acquisition in South Australia and will give Primelife an opportunity to grow its business in this state," Mr. Hazel says. Primelife manages three other facilities in Adelaide. Primelife will be responsible for all operational management of Elliot Gardens and will be the development manager for the rollout of the remaining units. Primelife will have an option to acquire Elliot Gardens from the Trust at appropriate market prices. About Elliot Gardens The village is located at Port Elliot, in the South Coast region of South Australia, about 90 kilometers south of Adelaide. Port Elliot is a small coastal township about 6 kilometres east of Victor Harbor and has a permanent population of about 1,000 residents. Elliot Gardens comprises 69 occupied independent living units in a total development of 200 two and three bedroom ILUs. The community and administration facilities are nearing completion, with the completed resident's facilities including a workshop and secure boat/caravan storage yard. Proposed facilities will include an indoor pool and bowling green. About Primelife Headquartered in Melbourne, Australia, Primelife Corporation -- http://www.primelife.com.au-- develops and manages properties catering to a wide range of senior living needs, including independent retirement living, serviced apartments, aged care or low care hostels and high care nursing homes, and in-home care. Primelife almost skidded into insolvency when, on September 23, 2004, the Australian Securities and Investments Commission filed 37 proceedings in the Federal Court of Australia seeking, among other things, orders that an investigating accountant be appointed over managed investment schemes under Primelife to report to the Federal Court to ascertain the position of each of the schemes. ASIC also applied for the schemes to be wound up. ASIC alleged that the schemes are not registered, as required under the Corporations Act. ASIC brought the Federal Court proceedings against Primelife and a number of other defendants including parties who, ASIC alleges, have been involved in promoting and managing the schemes to a large number of investors since 1997. The unregistered schemes are undergoing or were completely wound up starting October 2005. The Company had currently resolved most of the legal issues and was turning the corner after a couple of years. SPLASHDOWN HOLDINGS: To Declare Dividend on October 2 ----------------------------------------------------- Splashdown Holdings Pty Ltd will declare its first and final dividend for ordinary unsecured creditors on October 2, 2006, to the exclusion of those who were not able to prove claims by August 22, 2006. The deed administrator can be reached at: J. P. Mcleod McLeod & Partners Level 3, 380 Queen Street Brisbane, Queensland 4000 Australia STONEHENGE PROPERTIES: Enters Liquidation Proceedings ----------------------------------------------------- After a general meeting held on June 30, 2006, the members of Stonehenge Properties Pty Ltd resolved to voluntarily wind up the company's operations and appoint James Patrick Downey as liquidator. The Liquidator can be reached at: J. P. Downey Cole Downey & Co Chartered Accountants Level 1, 22 William Street Melbourne, Victoria 3000 Australia STYLISH SHOPFITTERS: Members Resolve to Close Business ------------------------------------------------------ At an extraordinary general meeting held on August 1, 2006, the members of Stylish Shopfitters Pty Limited resolved to close the company's business and appoint Veronica O'Hara as liquidator. The Liquidator can be reached at: Veronica O'Hara 15 Watt Place Emu Plains New South Wales 2750 Australia SUN MICROSYSTEMS: Members' Final Meeting Scheduled on Sept. 22 -------------------------------------------------------------- The members of Sun Microsystems Technology Pty Ltd will hold a final meeting on September 22, 2006, at 11:00 a.m., to hear the liquidators' report on the company's wind-up proceedings and property disposal exercises. The Troubled Company Reporter - Asia Pacific reported on May 8, 2006, that the company commenced a wind-up of its operations on March 24, 2006. The liquidators can be reached at: Murray Smith Anthony McGrath McGrathNicol+Partners Level 9, 10 Shelley Street Sydney, New South Wales 2000 Australia Telephone:(02) 9338 2666 Web site: http://www.mcgrathnicol.com/ SURF CITY: Members and Creditors to Convene on September 22 ----------------------------------------------------------- A final meeting of the members and creditors of Surf City Holdings Pty Limited will be held on September 22, 2006, at 3:30 p.m. During the meeting, Liquidator Sule Arnautovic will present accounts of the company's wind-up and property disposal exercises. The Liquidator can be reached at: Sule Arnautovic Jirsch Sutherland Level 2, 84 Pitt Street Sydney, New South Wales 2000 Australia Telephone:(02) 9233 2111 Facsimile:(02) 9233 2144 TARANAKI 55: Appoints Joint and Several Liquidators --------------------------------------------------- Iain Bruce Shephard and Christine Margaret Dunphy were appointed by the shareholders of Taranaki 55 North Ltd -- formerly known as Impossible Mission Ltd and Roseleigh on Oriental Bay Ltd -- on August 15, 2006, as joint and several liquidator of the company. The Joint Liquidators can be reached at: Chris Dunphy Shephard Dunphy Limited, Level 2 Zephyr House, 82 Willis Street Wellington, New Zealand Telephone: (04) 473 6747 Facsimile: (04) 473 6748 THEODORE'S ON WINDSOR: Supreme Court Issues Wind-Up Order --------------------------------------------------------- The Supreme Court of New South Wales has ordered on August 10, 2006, Theodore's on Windsor Pty Ltd to wind up its operations Subsequently, Steven Nicols was appointed as liquidator. The Liquidator can be reached at: Steven Nicols Level 2, 350 Kent Street Sydney, New South Wales 2000 Australia TRW AERONAUTICAL SYSTEMS: Members and Creditors to Meet Sept. 22 ---------------------------------------------------------------- The members and creditors of TRW Aeronautical Systems Australia Limited will convene on September 22, 2006, at 10:30 a.m. At the meeting, the members and creditors will be asked to: -- receive the formal receipts and payments from the liquidator; -- receive formal notice of the end of the administration; -- resolve that the company be dissolved; and -- resolve that the books and records of the company be destroyed. The liquidator can be reached at: Cliff Sanderson CRS Warner Sanderson Level 5, 30 Clarence Street Sydney, New South Wales 2000 Australia VILLA DEVELOPMENTS: Members Pass Resolution to Wind Up Firm ----------------------------------------------------------- At a general meeting held on August 17, 2006, the members of Villa Developments Pty Ltd resolved to voluntarily liquidate the company's business and distribute the proceeds of its assets disposal. Accordingly, Robert Bates was appointed as liquidator. The Liquidator can be reached at: Robert Bates Casey Bates Chartered Accountant Suite 2, Level 6 20 Smith Street Parramatta, Australia ================================ C H I N A & H O N G K O N G ================================ CHINA EASTERN: Seeks Austerity Measures to Avert Losses ------------------------------------------------------- China Eastern Airlines' net loss in the first half of 2006 ended June 30 almost tripled to CNY1.7 billion, or US$213 million, while its fuel costs rocketed 86% year-on-year on the back of rising fuel prices and an expansion of its fleet, China Daily reports. In an attempt to minimize losses, Xu Bin, deputy manager of China Eastern's system operations department, said that the airline is considering cutting the number of in-flight magazines from four to two as it can save an airline millions of dollars a year. "Fewer magazines do not simply mean less subscription fees. It is the equivalent to a fully loaded Airbus 300 plane and the huge amount of fuel it would consume," Mr. Xu said. Mr. Xu explained that as the airline currently has a fleet of 199 planes with 27,800 seats, two magazines per seat would result in an additional weight of 40 tons, China Daily relates. "We can't do much about rising oil prices, but we can always take measures to use less oil and control our costs," said China Eastern Board Secretary Luo Zhuping. Another major measure taken by the airline is the establishment of an airline operations control system. The system -- developed in the United States --promotes efficiency, according to China Daily. In the past, a plane's oil tank was filled with a fixed amount of fuel before take-off, with the figure only adjusted on a seasonal basis, however, the AOC system means that the amount of fuel is now adjusted according to the plane's daily requirements. In another measure to cut costs, pilots are being urged to fly higher to reduce air pressure and close down some unnecessary equipment during flights, China Daily says. In addition, an awards system was also set up to encourage staff to introduce cost-saving measures, the report adds. * * * Headquartered in Shanghai, China, China Eastern Airlines Corporation Limited's -- http://www.ce-air.com- principal activity is operation of domestic and international commercial air transportation. The Group also is involved in the common aircraft industry. Other activities include general aviation, air catering, advertisement, import and export, equipment manufacturing, real estate, hotel business, finance and training. The fleet includes more than 60 large and medium size airplanes, Airbus and Boeing mostly. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. On April 28, 2006, Fitch Ratings downgraded China Eastern's Foreign Currency and Local Currency Issuer Default Ratings to B+ from BB-. The outlook on the IDRs is stable. According to the rating agency, the downgrade primarily reflects China Eastern's substantially declined profitability, caused by a 36.8% hike in operating expenses relative to a 28.4% growth in revenues, and increased debt levels, which substantially weakened the carrier's major credit ratios. CYBER RESOURCES: Declares Final Dividend ---------------------------------------- Cyber Resources and Technology declared its first and final dividend on August 21, 2006. The payment was made at the office of Joint and Several Liquidators Kelvin Edward Flynn and Cosimo Borrelli. The Joint Liquidators can be reached at: Cosimo Borrelli 5/F., Allied Kajima Bldg 138 Gloucester Road Wanchai, Hong Kong GDMR (HONG KONG): Joint Liquidators Step Aside ---------------------------------------------- Lai Kar Yan, Derek and Darach E. Haughey ceased to act as joint and several liquidators of GDMR (Hong Kong) Ltd on August 8, 2006. Mr. Lai and Mr. Haughey can be reached at: Lai Kar Yan, Derek 35/F., One Pacific Place 88 Queensway, Hong Kong HANG SENG: Members' Final Meeting Fixed on September 21 ------------------------------------------------------- Members of Hang Seng Credit Card will convene on September 21, 2006, 10:30 a.m. at the Meeting Room of Hang Seng Bank Ltd, 83 Des Voeux Road Central, Level 8, in Hong Kong. At the meeting, Joint Liquidators Chan Shet Hung, Suzanne and Li Chi Chung will present a report regarding the company's wind-up and property disposal activities. According to the Troubled Company Reporter - Asia Pacific, members resolved on April 28, 2006, to voluntary wind-up the company's operations. HODEX DEVELOPMENT: Creditors and Contributories Hold Meeting ------------------------------------------------------------ The creditors and contributories of Hodex Development Ltd convened for their first meeting on August 29, 2006, at the Official Receiver's office. According to The Troubled Company Reporter - Asia Pacific, Yung Sau Lan filed a wind-up petition against the company in November 2005. Subsequently, the Court issued a wind-up order on July 5, 2006. The Official Receiver can be reached at: E. T. O'Connell 10/F., Queensway Government Offices 66 Queensway Hong Kong HOI FUNG ALUMINUM: Creditors & Contributories Meeting Convened -------------------------------------------------------------- Creditors and contributories of Hoi Fung Aluminum Engineering Co Ltd convened for their first meeting on August 29, 2006. HOPEWELL HOLDINGS: Unveils Plans to Boost Property Investment ------------------------------------------------------------- Hopewell Holdings unveiled its plans for property investment projects in Kowloon Bay and Happy Valley with an estimated total price tag of more than HKD1 billion, The Standard reports. Company Chairman Gordon Wu Ying-sheung was quoted by the paper as saying, the projects were part of its plans to develop its existing land bank to unlock the group's value. The Standard relates that the company is working on a plan to almost double the gross floor area of its property portfolio to more than six million square feet in 2012 from 3.6 million sqft this year. Thomas Jefferson Wu, deputy managing director and the chairman's son, relates that based on the company's current project, The Happy Valley currently require investments of about HKD500 million, or HKD4,500 per square foot. Land purchase has been completed for the site at 12 Broadwood Road, which will be developed as luxury residential rental property, he said. The project will generate a gross floor area of 113,900 square feet when completed in the fourth quarter of 2009. Planning for the revamp of the Hong Kong International Trade and Exhibition Centre in Kowloon Bay into an entertainment and shopping complex has also been finalized, Wu said. Scheduled to open in the second half of 2007, the complex will have a gross floor area of about 900,000 square feet. Analysts estimate the cost of the revamp at between HKD500 million and HKD900 million. Wu said details would be released shortly. Meanwhile, Hopewell recorded its highest net earnings for the past 11 years. Based on the company's financial statement submitted to Hong Kong Stock Exchange, its full-year net profit rose to HKD2.25 billion from HKD1.91 billion a year earlier on higher mainland toll-road income and asset sales. Stripping out revaluation on investment properties, underlying profit rose 16% to HKD1.92 billion - in line with analysts' estimates and the highest since Hopewell earned HKD2.17 billion in the fiscal year ended June 1995. Turnover jumped 19% to HKD2.72 billion. Hopewell increased its final dividend by 26 percent. Meanwhile, the company is planning to get involved in the construction of a bridge linking Hong Kong, Zhuhai and Macau through its unit, Hopewell Highway Infrastructure (0737). The company has yet to finalize plans to seek partners as it is still awaiting a financial proposal by a working group of the three cities, The Standard says. * * * Hopewell Holdings Limited -- http://www.hopewellholdings.com/-- principal activities are investment in infrastructure projects in roads and highway projects; property development and investment, that includes property letting, agency and management; hotel ownership and management,; and restaurant operations and food catering. The Group operates in Hong Kong, Mainland China and Macau. Fitch affirmed on February 27, 2006, Hopewell Holdings' Foreign Currency Long Term Debt rating at BB. HUNG FUNG: Names New Committee of Inspection Member --------------------------------------------------- Wong Chun Hung -- a representative from July First Holdings Co Ltd and a creditor to Hung Fung Holdings Ltd -- was appointed on June 9, 2006, as member to the company's Committee of Inspection. JOIN-IN SHIRT: Liquidator Ceases to Act for Company --------------------------------------------------- E. T. O'Connell ceased to act as Liquidator of Join-in Shirt Ltd on July 27, 2006. Mr. O'Connell can be reached at: E. T. O'Connell 10/F., Queensway Government Offices 66 Queensway Hong Kong KAM FAI: Liquidator Presents Wind-Up Report ------------------------------------------- Members and creditors of Kam Fai International Finance Co Ltd convened for their final meeting on August 29, 2006. At the meeting, Liquidator Bruno Arboit presented a report regarding the Company's wind-up and the manner its properties were disposed of. LEASUM LIMITED: Appoints Joint and Several Liquidators ------------------------------------------------------ The High Court of Hong Kong appointed on July 12, 2006, Wong Man Chung, Francis and Wong Wai Man, Cliff as joint and several liquidators for the wind-up of Leasum Ltd. The Joint Liquidators can be reached at: Wong Man Chung, Francis 19/F., No. 3 Lockhart Road Wanchai, Hong Kong NEW AGE: Final Members' Meeting Set on September 19 --------------------------------------------------- Members of The New Age Foundation Ltd will convene on September 19, 2006, 11:00 a.m. for their final meeting to be held at Liquidator Lam Ying Sui's office. During the meeting, Liquidators Lam will present a report on the company's wind-up proceedings and its property disposal activities. On July 19, 2006, the Troubled Company Reporter - Asia Pacific reported that the company's operations was placed under voluntary wind-up through a members' special resolution passed on July 13, 2006. The Liquidator can be reached at: Lam Ying Sui Room 1005, Allied Kajima Bldg 138 Gloucester Road, Wanchai Hong Kong OCEAN JET: Creditors and Contributories Hold First Meeting ---------------------------------------------------------- Creditors and contributories of Ocean Jet Development Ltd convened for their first meeting on August 30, 2006, at the Official Receiver's office According to The Troubled Company Reporter - Asia Pacific, Win Mode Industries Ltd filed a wind-up petition against the company in June 2005. Subsequently, the Court ordered the company's wind-up on June 27, 2006. The Official Receiver can be reached at: E. T. O'Connell 10/F., Queensway Government Offices 66 Queensway Hong Kong TITAN PETROCHEMICALS: First Half Earnings Drop to HKD65.4 Mil. -------------------------------------------------------------- Titan Petrochemicals Group recorded a 74% drop in its first half net profit earnings due to soaring oil prices and the absence of HKD138-million disposal gain it received in the same period last year, the People Daily reports. Based on the company's financial statement submitted to the Hong Kong Stock Exchange, net profit fell to HKD65.39- million, or HKD1.35 cents per share, for the six months ended June, compared with HKD255 million, or HKD5.26 cents, a year ago. However, its revenue rose 82.4% to HKD6.47 billion. Titan said revenue from its core oil-transportation business jumped 46% to HKD1.08 billion, due to its expanded fleet capacity and a 7% increase in tank rate for Very Large Crude Carriers in the first half. "I expect our growth momentum in the second half will be better than the first half due to the positive outlook of the transportation business," said chairman Berry Cheung Chun-yuen. "We are in a good position to cash in on the booming market - not only the higher freight rate, but also the trend for falling fuel costs in the second half." VLCC rates for July were almost 30 percent higher than in the same period last year and the momentum continued to build, Cheung said. The freight rate for VLCCs is expected to increase more than 7% in the second half as oil consumption reaches the peak season, which will further drive demand. Mr. Cheung said that an increase in transportation capacity of refined oil products would provide steadier income. "Refined oil products will hold a significant weighting over the next two years," he added. Crude-oil transportation accounts for 90% of the company's business, with refined products accounting for the rest, the People Daily relates. Meanwhile, Titan has set aside US$70 million or HKD546 million to US$80 million for capital expenditure this year and 2007, down from US$400 million in 2005. Currently, Titan has HKD786 million in cash. Headquartered in Hong Kong, with strategic business operations in Singapore, Malaysia and China, Titan Petrochemicals Group Limited -- http://www.petrotitan.com-- is an integrated oil service provider, offering a broad range of oil services, including transportation, storage, distribution, including ship refueling (bunkering) and supply. Titan operates and manages a fleet of over 30 oil tankers ranging from 400 to 270,000 deadweight tones. On May 4, 2006, the Troubled Company Reporter - Asia Pacific reported that the Standard & Poor's Ratings Services has revised its outlook on Titan Petrochemicals Group Ltd. to negative from stable. At the same time, it affirmed the "BB-" long-term corporate credit rating on Titan. The "B+" issue rating on the company's senior unsecured notes was also affirmed. Meanwhile, Moody's Investors Service on July 20, 2006, downgraded the corporate family rating of Titan Petrochemicals Group Ltd to B1 from Ba3. At the same time, Titan's senior unsecured bond rating has been downgraded to B2 from B1. The outlook for both ratings is stable. This concludes the ratings review initiated in April 2006. UNION WAY: Court Appoints Joint Liquidators ------------------------------------------- The High Court of Hong Kong appointed on July 27, 2006, Wong Man Chung, Francis and Wong Wai Man, Cliff as joint and several liquidators of Union Way Technology Ltd. The Joint Liquidators can be reached at: Wong Man Chung, Francis 19/F., No. 3 Lockhart Road Wanchai, Hong Kong Y & H ENGINEERING: Names Chung and Man as Joint Liquidators ----------------------------------------------------------- On July 12, 2006, the High Court of Hong Kong appointed Wong Man Chung, Francis and Wong Wai Man, Cliff as joint and several liquidators for the wind-up of Y & H Engineering Co Ltd. The Joint Liquidators can be reached at: Wong Man Chung, Francis 19/F., No. 3 Lockhart Road Wanchai, Hong Kong ========= I N D I A ========= AES CORP: Accrues US$12M Liability in 2Q06 for Remediation Costs ---------------------------------------------------------------- The AES Corporation has accrued US$12 million liabilities for projected environmental remediation costs, as of June 30, 2006. On Nov. 27, 2002, the Company's subsidiary, AES Eastern Energy LLP, informed the New York State Department of Environmental Conservation and the United States Environmental Protection Agency that nitrogen oxide (NOx) exceedances appeared to have occurred on Oct. 30 and 31, and Nov. 1-8 and 10 of 2002. The exceedances were discovered through an audit by plant personnel of the Plant's NOx Reasonably Available Control Technology tracking system. Upon the discovery of the exceedances, the selective catalytic reduction at the Somerset plant was activated to reduce NOx emissions. AES Eastern Energy learned of a notice of violation issued by the NYSDEC for the NOx RACT exceedances through a review of the November 2004 release of the EPA's Enforcement and Compliance History database. However, AES Eastern Energy has not yet seen the NOV from the NYSDEC. AES Eastern Energy is negotiating with NYSDEC concerning this matter. About AES Corp. The AES Corporation (NYSE:AES) -- http://www.aes.com/-- is a power company with operations in South America, Europe, Africa, Asia and the Caribbean. The Company generates 44,000 megawatts of electricity through 124 power facilities, and delivers electricity through 15 distribution companies. AES's business group in Asia & Middle East is comprised of electric utilities and generation plants in China, Kazakhstan, Oman, Qatar, Pakistan, Sri Lanka and India. Fuels include coal, diesel, hydro, gas and oil. * * * As reported in the Troubled Company Reporter on May 25, 2006, Fitch affirmed The AES Corporation's Issuer Default Rating at 'B+'. Fitch also affirmed and withdrew the ratings for the company's junior convertible debt. The Rating Outlook for all remaining instruments is Stable. As reported in the Troubled Company Reporter on March 31, 2006, Standard & Poor's Ratings Services raised its corporate credit rating on diversified energy company The AES Corp. to 'BB-' from 'B+'. S&P said the outlook is stable. As reported in the Troubled Company Reporter on Jan. 11, 2006, Moody's affirmed the ratings of The AES Corporation, including its Ba3 Corporate Family Rating and the B1 rating on its senior unsecured debt. Moody's said the rating outlook remains stable. AES CORP: Plaintiffs File Opening Brief in Calif. Suit Appeal ------------------------------------------------------------- Plaintiffs filed an opening brief in an appeal of the dismissal by the San Diego County Superior Court, California, of a remanded antitrust class action against AES Corp. and other electric companies. In November 2000, the company was named in a purported class action along with six other defendants, alleging unlawful manipulation of the California wholesale electricity market, allegedly resulting in inflated wholesale electricity prices throughout California. The alleged causes of action include violation of the Cartwright Act, the California Unfair Trade Practices Act and the California Consumers Legal Remedies Act. In December 2000, the case was removed from the San Diego County Superior Court to the United States District Court for the Southern District of California. On July 30, 2001, the court remanded the case to San Diego Superior Court. The case was consolidated with five other lawsuits alleging similar claims against other defendants. In March 2002, the plaintiffs filed a new master complaint in the consolidated action, which reasserted the claims raised in the earlier action and names the company, AES Redondo Beach, LLC, AES Alamitos, LLC, and AES Huntington Beach, LLC as defendants. In May 2002, the case was removed by certain cross-defendants from the San Diego County Superior Court to the U.S. District Court for the Southern District of California. The plaintiffs filed a motion to remand the case to state court, which was granted on Dec. 13, 2002. Certain defendants appealed aspects of that decision to the U.S. Court of Appeals for the Ninth Circuit. On Dec. 8, 2004, a panel of the Ninth Circuit issued an opinion affirming in part and reversing in part the decision of the District Court, and remanding the case to state court. On July 8, 2005, defendants filed a demurrer in state court seeking dismissal of the case in its entirety. On Oct. 3, 2005, the court sustained the demurrer and entered an order of dismissal. On Dec. 2, 2005, plaintiffs filed a notice of appeal. Plaintiffs-appellants filed their opening appeal brief on June 16, 2006. Defendants-appellees anticipate filing their responsive brief in or about mid-August 2006. The federal suit is "Gordon v. Reliant Energy Inc., et al., Case No. 3:00-cv-02525-RHW-RBB," filed in the U.S. District Court for the Southern District of California under Judge Robert H. Whaley with referral to Judge Ruben B. Brooks. Representing the plaintiffs is Ralph B. Kalfayan of Krause Kalfayan Benink and Slavens, 1010 Second Avenue, Suite 1750, San Diego, CA 92101, Phone: (619) 232-0331, Fax: (619) 232-4019. Representing the defendants are: (1) Katherine Koransky Pothier of Coughlan Semmer and Lipman, 501 West Broadway, Suite 400, San Diego, CA 92101-3544, Phone: (619) 232-0800, Fax: (619) 232-0107; and (2) Stephen David Raber and Richard Hackney Wiegmann of Williams and Connolly, 725 12th Street North West, Washington, DC 20005, Phone: (202) 434-5000, Fax: (202) 434-5029. About AES Corp. The AES Corporation (NYSE:AES) -- http://www.aes.com/-- is a power company with operations in South America, Europe, Africa, Asia and the Caribbean. The Company generates 44,000 megawatts of electricity through 124 power facilities, and delivers electricity through 15 distribution companies. AES's business group in Asia & Middle East is comprised of electric utilities and generation plants in China, Kazakhstan, Oman, Qatar, Pakistan, Sri Lanka and India. Fuels include coal, diesel, hydro, gas and oil. * * * As reported in the Troubled Company Reporter on May 25, 2006, Fitch affirmed The AES Corporation's Issuer Default Rating at 'B+'. Fitch also affirmed and withdrew the ratings for the company's junior convertible debt. The Rating Outlook for all remaining instruments is Stable. As reported in the Troubled Company Reporter on March 31, 2006, Standard & Poor's Ratings Services raised its corporate credit rating on diversified energy company The AES Corp. to 'BB-' from 'B+'. S&P said the outlook is stable. As reported in the Troubled Company Reporter on Jan. 11, 2006, Moody's affirmed the ratings of The AES Corporation, including its Ba3 Corporate Family Rating and the B1 rating on its senior unsecured debt. Moody's said the rating outlook remains stable. CEMENT CORPORATION: Awaits BIFR's OK on Revamp and Assets Sale -------------------------------------------------------------- The Heavy Industries and Public Enterprises Ministry will sell off Cement Corporation of India's seven defunct units to generate funds for the revival of the firm's three remaining plants, India eNews reports. The disposal, which has recently obtained the cabinet's approval, is expected to raise INR6 billion, the report says. According to India eNews, the Government is waiting for the Board of Industrial and Financial Reconstruction's approval of the company's restructuring package before it could proceed with the proposed sale. Aside from the funds that will be raised through the sale, the Government has drafted an INR18-billion revival package for Cement Corp's remaining viable units -- Tandur in Andhra Pradesh, Bokajan in Assam, and Rajban in Himachal Pradesh, India eNews reveals. The scheme also includes writing off some of the company's high-cost debts. India eNews relates that the units that are up for sale have been non-operational for many years mainly due to financial constraints. The seven units have a total of 300 employees. As reported by the Troubled Company Reporter - Asia Pacific on March 13, 2006, the closure of the seven non-operational units is expected to reduce the outgo on payment of idle wages and enable the Government to sell the assets to meet liabilities and infuse fresh funds for the expansion and modernization of three units to make them self-sufficient and profit generating. About Cement Corporation of India Cement Corporation of India Limited -- http://www.cementcorporation.com/-- was incorporated in 1965 as a wholly owned undertaking of the Government of India. The Corporation started incurring losses since 1984-85 and its net worth was eroded completely in the year 1994-95. In March 2006, the Government has cleared a revival package for the ailing public state utility. The Company's revival package includes: * the closure and sale of assets of seven ailing units; * the expansion of three units at an investment of INR141.11 crore; * the waiver of interests on government loans, worth INR886.22 crore; and * the conversion of loans worth INR355.43 crore into redeemable preference capital. The closure of the seven non-operational units is expected to reduce the outgo on payment of idle wages and enable the Government to sell the assets to meet liabilities and infuse fresh funds for the expansion and modernization of three units to make them self-sufficient and profit generating. Pursuant to the revival plan, Cement Corporation will also get a plan assistance amounting INR30.67 crore and a non-plan assistance of INR153.62 crore. The Company will have to repay loans worth INR304.52 crore to the Government. DAEWOO INDIA: Assets Sale Attracts One Bidder --------------------------------------------- The Ruia Group was the only bidder qualified to acquire Daewoo Motor's entire passenger car unit at Surajpur in Uttar Pradesh, Business Standard reports, citing the Press Trust of India. According to The Standard, other firms like Tatas, Mahandras and Ford are not eligible to bid for Daewoo Motor India as they do not have plans to take over all the assets of the auto-making unit. Money Control relates that auto components maker Jai Bharat Maruti has also evinced interest in Daewoo India's partial assets. General Motors India, which withdrew last year plans to purchase Daewoo India's small car assembly plant, is reportedly planning to revive talks with the Asset Reconstruction Company of India. However, the Debt Recovery Tribunal told ARCIL, which has the mandate to auction the Daewoo plant, that it prefers to sell the unit as a whole and not in pieces, Money Control says. The Troubled Company Reporter - Asia Pacific reported on August 18, 2006, that the reserve price for the entire assets of the defunct carmaker has been maintained at about INR1,100 crore. The TCR-AP further stated that the proceeds of the sale will be shared between the revenue department and Daewoo India's lenders based on the 45:55 ratio that was approved by the Cabinet Committee on Economic Affairs in June 2006. The Government's dues from Daewoo Motor India are primarily in the form of custom duty claims amounting to over INR1,000 crore and also dues resulting from alleged financial mismanagement by the Company. The lenders too have claims of about INR1,000 crore. Meanwhile, the TCR-AP added that workers at the Daewoo facility were hoping for a successful outcome of the bidding process so they could finally claim their dues, according to Business Line. The workers, who have not received their wages since April 2003, have sought payment of approximately INR86 crore from the official liquidator. There are currently about 1,433 workers on the Daewoo payroll. Daewoo Motors India went into liquidation pursuant to a wind-up order issued by the High Court of Delhi on August 28, 2004. The auction for the Daewoo plant had been opened last year by the Debt Recovery Tribunal but since there were was no one party willing to buy all the assets of the unit, the auction was scrapped and a fresh bidding process was restarted. ARCIL is hoping that the Ruia group will cough up INR800 crore to INR1000 crore for all of Daewoo's assets, Money Control relates. FORD MOTOR: Executive Committee Chairman Robert E. Rubin Resigns ---------------------------------------------------------------- Ford Motor Company disclosed that Robert E. Rubin, director and chairman of the Executive Committee and member of the Office of the Chairman of Citigroup Inc., has resigned from the Company's Board of Directors. Mr. Rubin joined the board in 2000. In a letter to Bill Ford, Mr. Rubin said, "As the Board undertakes its upcoming review of strategic options, Citigroup's multi-faceted relationship with Ford could raise a question whether my relationship with Ford and Citigroup creates an appearance of conflict. Although no conflict currently exists and while I would have liked to remain involved, I have with great regret concluded that I should resign from the Board at this time." Commenting on the announcement, Bill Ford, chairman and chief executive officer, said, "I greatly appreciate the many valuable contributions Bob has made to Ford Motor Company during his six- year tenure. He brought strategic thinking to every situation and has been a wise and generous counselor to me and to the company. However, I understand and respect Bob's prudent decision to resign as we continue to explore future strategic options." About Ford Motor Ford Motor Company, headquartered in Dearborn, Michigan, U.S.A., is the world's third largest automobile manufacturer. It has operations all over the world, including India. Fitch Ratings downgraded on August 18, 2006, the Issuer Default Rating of Ford Motor Company and Ford Motor Credit Company to 'B' from 'B+'. Fitch also lowered Ford's senior unsecured rating to 'B+/RR3' from 'BB-/RR3' and Ford Credit's senior unsecured rating to 'BB-/RR2' from 'BB/RR2'. The Rating Outlook remains Negative. Standard & Poor's Ratings Services on August 18, 2006, placed its 'B+' long-term and 'B-2' short-term ratings on Ford Motor Co., Ford Motor Credit Co., and related entities on CreditWatch with negative implications. The 'BB-' long-term rating and 'B- 2' short-term ratings on FCE Bank PLC, Ford Motor Credit's European bank, were also placed on CreditWatch with negative implications, reflecting its linkage to the Ford rating. SILICON GRAPHICS: Rosen Slome Hired as Panel's Conflicts Counsel ---------------------------------------------------------------- The Official Committee of Unsecured Creditors in Silicon Graphics, Inc., and its debtor-affiliates' chapter 11 cases, obtained permission from the United States Bankruptcy Court for the Southern District of New York to retain Rosen Slome Marder LLP as its conflict counsel, nunc pro tunc to June 7, 2006. As reported in the Troubled Company Reporter, July 3, 2006, RSM is expected to: a. represent the Committee in connection with the investigation of liens and claims of the Debtors' prepetition secured lenders against the Debtors' estates, and the pursuit of claims against the lenders; b. represent the Committee with regard to other matters, if any, related to the prepetition secured lenders; c. assist Winston and Strawn in matters relating to the Debtors' proposed debtor-in-possession financing; d. advise the Committee and represent it concerning any other matters with respect to which Winston & Strawn may have a potential conflict of interest; and e. perform other professional services at the request of the Committee, including without limitation, those set forth In Section 1103. RSM will be paid on an hourly basis in accordance with its customary hourly rates, subject to periodic adjustments to reflect economic and other conditions. The firm's current hourly rates are: Partners US$325 to US$380 Paralegals and Associates US$100 to US$285 Neither RSM nor its professionals hold or represent any other entity having an adverse interest with respect the proceedings, assures Thomas R. Slome, a partner of the firm. About Silicon Graphics Headquartered in Mountain View, California, Silicon Graphics, Inc. (OTC: SGID) -- http://www.sgi.com/-- offers high- performance computing. SGI helps customers solve their computing challenges, whether it's sharing images to aid in brain surgery, finding oil more efficiently, studying global climate, providing technologies for homeland security and defense, enabling the transition from analog to digital broadcasting, or helping enterprises manage large data. Silicon Graphics has operations in India, Australia, China, Japan, New Zealand and sales offices in Hong Kong, Korea, Malaysia, Indonesia, the Philippines, Singapore, Thailand, and Vietnam. The Debtor and 13 of its affiliates filed for Chapter 11 protection on May 8, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10977 through 06-10990). Debtor affiliates filing separate chapter 11 petitions: * Silicon Graphics Federal, Inc. * Cray Research, LLC * Silicon Graphics Real Estate, Inc. * Silicon Graphics World Trade Corporation * Silicon Studio, Inc. * Cray Research America Latina Ltd. * Cray Research Eastern Europe Ltd. * Cray Research India Ltd. * Cray Research International, Inc. * Cray Financial Corporation * Cray Asia/Pacific, Inc. * ParaGraph International, Inc. * WTI-Development, Inc. Gary Holtzer, Esq., and Shai Y. Waisman, Esq., at Weil Gotshal & Manges LLP, represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed total assets of US$369,416,815 and total debts of US$664,268,602. SILICON GRAPHICS: Will Pay US$1.6M Prepetition Custom Duties ------------------------------------------------------------ The United States Bankruptcy Court for the Southern District of New York authorizes Silicon Graphics, Inc., and its debtor- affiliates to pay all prepetition Delivery Charges up to an aggregate of US$1,650,000. As reported in the Troubled Company Reporter on May 26, 2006, the Court authorized the Debtors to pay prepetition obligations up to an aggregate of US$1,300,000. Shai Y. Waisman, Esq., at Weil, Gotshal & Manges LLP, in New York, tells the Court that the Debtors have become aware of additional outstanding prepetition Delivery Charges for US$350,000. Majority of the outstanding US$350,000 is owed SSI on account of invoices billed to the Debtors after the Petition Date by several United Parcel Services entities, DHL Worldwide Express and Danzas DHL Freight, who each hold a significant portion of the Debtors' spare parts inventory in over 100 locations worldwide. Mr. Waisman asserts that the satisfaction of obligations owed in respect of the prepetition Delivery Charges will allow the Debtors to minimize costs and comply with customer deadlines. About Silicon Graphics Headquartered in Mountain View, California, Silicon Graphics, Inc. (OTC: SGID) -- http://www.sgi.com/-- offers high- performance computing. SGI helps customers solve their computing challenges, whether it's sharing images to aid in brain surgery, finding oil more efficiently, studying global climate, providing technologies for homeland security and defense, enabling the transition from analog to digital broadcasting, or helping enterprises manage large data. Silicon Graphics has operations in India, Australia, China, Japan, New Zealand and sales offices in Hong Kong, Korea, Malaysia, Indonesia, the Philippines, Singapore, Thailand, and Vietnam. The Debtor and 13 of its affiliates filed for Chapter 11 protection on May 8, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10977 through 06-10990). Debtor affiliates filing separate chapter 11 petitions: * Silicon Graphics Federal, Inc. * Cray Research, LLC * Silicon Graphics Real Estate, Inc. * Silicon Graphics World Trade Corporation * Silicon Studio, Inc. * Cray Research America Latina Ltd. * Cray Research Eastern Europe Ltd. * Cray Research India Ltd. * Cray Research International, Inc. * Cray Financial Corporation * Cray Asia/Pacific, Inc. * ParaGraph International, Inc. * WTI-Development, Inc. Gary Holtzer, Esq., and Shai Y. Waisman, Esq., at Weil Gotshal & Manges LLP, represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed total assets of US$369,416,815 and total debts of US$664,268,602. SILICON GRAPHICS: Will Remit Contract Surcharges for US$75,000 -------------------------------------------------------------- The Hon. Burton R. Lifland of the United States Bankruptcy Court for the Southern District of New York authorizes Silicon Graphics Inc. and its debtor-affiliates to remit: (i) US$50,000 to the General Services Administration representing the Industrial Fund Fees collected from counterparties to their General Services Administration Multiple Schedule contracts; and (ii) US$25,000 to the National Aeronautics and Space Administration representing the outstanding surcharges collected from counterparties to their Scientific & Engineering Workstation Procurement III contracts. As reported in the Troubled Company Reporter on July 11, 2006, the Debtors sought authority from the Court for to remit the amounts they hold on account of the Industrial Fund Fees and Scientific & Engineering Workstation Procurement Surcharges to the GSA and NASA. The contract surcharges currently held by the Debtors are not property of the Debtors' estates and can, therefore, be remitted to NASA and the GSA, as applicable, Shai Y. Waisman, Esq., at Weil, Gotshal & Manges LLP, in New York, told Judge Lifland. The Debtors do not have legal or equitable interest in the Surcharges, he said. The Debtors hold the Surcharges in constructive trust. Mr. Waisman explained that the Surcharges do not reflect payment for goods or services rendered to the Debtors by the GSA and NASA; instead, they are handling fees owed by the Debtors' customers to the GSA and NASA. In transmitting the fees, the Debtors act merely as conduits on the customers' behalf. About Silicon Graphics Headquartered in Mountain View, California, Silicon Graphics, Inc. (OTC: SGID) -- http://www.sgi.com/-- offers high- performance computing. SGI helps customers solve their computing challenges, whether it's sharing images to aid in brain surgery, finding oil more efficiently, studying global climate, providing technologies for homeland security and defense, enabling the transition from analog to digital broadcasting, or helping enterprises manage large data. Silicon Graphics has operations in India, Australia, China, Japan, New Zealand and sales offices in Hong Kong, Korea, Malaysia, Indonesia, the Philippines, Singapore, Thailand, and Vietnam. The Debtor and 13 of its affiliates filed for Chapter 11 protection on May 8, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10977 through 06-10990). Debtor affiliates filing separate chapter 11 petitions: * Silicon Graphics Federal, Inc. * Cray Research, LLC * Silicon Graphics Real Estate, Inc. * Silicon Graphics World Trade Corporation * Silicon Studio, Inc. * Cray Research America Latina Ltd. * Cray Research Eastern Europe Ltd. * Cray Research India Ltd. * Cray Research International, Inc. * Cray Financial Corporation * Cray Asia/Pacific, Inc. * ParaGraph International, Inc. * WTI-Development, Inc. Gary Holtzer, Esq., and Shai Y. Waisman, Esq., at Weil Gotshal & Manges LLP, represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed total assets of US$369,416,815 and total debts of US$664,268,602. SILICON GRAPHICS: Morgan Lewis Hires CRA Int'l as Consultants ------------------------------------------------------------- The United States Bankruptcy Court for the Southern District of New York approved the request of Silicon Graphics, Inc., and its debtor-affiliates to allow Morgan, Lewis & Bockius LLP to employ of CRA International, Inc., as consultants, nunc pro tunc to the Debtors' bankruptcy filing. As reported in the Troubled Company Reporter on Jul 14, 2006, the Debtors acknowledge that it is essential for Morgan Lewis, their special intellectual counsel, to employ consultants because of the nature of their operations and contemplated reorganization. As consultants for Morgan Lewis', CRA will provide analysis, advice, and an expert report, if necessary, with respect to the valuation of certain patents held by the Debtors. To the extent litigation arises with respect to patent issues, CRA will analyze and respond to testimony proffered and provide deposition or expert testimony. In exchange for its services, CRA will be paid based on its customary hourly rates: Position Hourly Rate -------- ----------- Presidents and Vice Presidents US$400 to US$815 Principals US$360 to US$580 Associate Principals US$300 to US$460 Senior Associates US$250 to US$400 Consulting Associates US$225 to US$310 Associates US$185 to US$275 Analysts US$170 to US$200 Other Support US$105 Jonathan D. Yellin, general counsel and vice president of the firm, assured the Court that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code, as modified by Section 1107(b) of the Bankruptcy Code. About Silicon Graphics Headquartered in Mountain View, California, Silicon Graphics, Inc. (OTC: SGID) -- http://www.sgi.com/-- offers high- performance computing. SGI helps customers solve their computing challenges, whether it's sharing images to aid in brain surgery, finding oil more efficiently, studying global climate, providing technologies for homeland security and defense, enabling the transition from analog to digital broadcasting, or helping enterprises manage large data. Silicon Graphics has operations in India, Australia, China, Japan, New Zealand and sales offices in Hong Kong, Korea, Malaysia, Indonesia, the Philippines, Singapore, Thailand, and Vietnam. The Debtor and 13 of its affiliates filed for Chapter 11 protection on May 8, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10977 through 06-10990). Debtor affiliates filing separate chapter 11 petitions: * Silicon Graphics Federal, Inc. * Cray Research, LLC * Silicon Graphics Real Estate, Inc. * Silicon Graphics World Trade Corporation * Silicon Studio, Inc. * Cray Research America Latina Ltd. * Cray Research Eastern Europe Ltd. * Cray Research India Ltd. * Cray Research International, Inc. * Cray Financial Corporation * Cray Asia/Pacific, Inc. * ParaGraph International, Inc. * WTI-Development, Inc. Gary Holtzer, Esq., and Shai Y. Waisman, Esq., at Weil Gotshal & Manges LLP, represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed total assets of US$369,416,815 and total debts of US$664,268,602. ================= I N D O N E S I A ================= INDOSAT: Posts IDR549-Bil. Net Income For the First Half of 2006 ---------------------------------------------------------------- For the half-year period ended June 30, 2006, PT Indosat Tbk recorded operating revenues and operating income amounting to IDR5.77 trillion and IDR1.57 trillion, respectively, according to a company press release. The company posted a net income of IDR548.8 billion, a 30.2% decrease compared with the figure reported for the first half of 2005. For the half-year period ended June 30, 2006, cellular, MIDI, and fixed telecommunication services contributed 74.4%, 16.1% and 9.5% to operating revenues, respectively. Operating Revenues Cellular services revenues In the first half of 2006, Indosat recorded cellular operating revenues of IDR4.29 trillion, a 0.5% decrease from the IDR4.31 trillion posted in the first half of 2005. As of end- June 2006, the company had 13,859,914 subscribers, 95% of which are prepaid subscribers. Following the new marketing initiatives in April and June 2006, subscribers increased by 903,734 and usage revenues increased by 9.4% in the second quarter compared to the first quarter of 2006. Cellular Services 1Q 2006 2Q 2006 ------- ------- Total cellular subscriber 12,956,180 13,859,914 Net add subscriber (1,556,273) 903,734 Cellular revenues (IDR billion) Usage 1,156.1 1,264.5 Features 723.1 703.5 Others 292.7 150.9 ------- ------- Total 2,171.9 2,118.9 MIDI services Operating revenues from MIDI services grew 13.1%, from IDR820.1 billion in the first half 2005 to IDR927.3 billion in first half 2006, despite the increased competition from domestic and international providers. The increase in MIDI revenues is contributed by growth of IP based services (IP VPN), such as Frame relay, IPVPN and Internet access as well of wholesale services. Fixed Telecommunication services Operating revenues from fixed telecommunication services decreased 15.3%, from IDR648.3 billion in the first half of 2005 to IDR548.9 billion in the first half of 2006. Indosat's international call traffic grew especially the incoming traffic, and this made an increase of IDD revenues in the second quarter of 2006. Operating expenses Operating expenses increased by IDR335.0 billion, or 8.7%, from IDR3.864 trillion in the first half of 2005 to IDR4.20 trillion in the first half of 2006, primarily due to increased expenses for depreciation and amortization, marketing, leased circuit, and other cost of services. Depreciation and amortization expenses increased by 17.7% from IDR1.477 trillion in the first half of 2005 to IDR1.738 trillion in the first half of 2006 due to increase in capital expenditure especially for cellular equipments. Leased Circuit expenses increased by IDR23.2 billion, or 33.4%, from IDR69.5 billion in the first half of 2005 to IDR92.6 billion in the first half of 2006 due to increase for Internet circuit and transponder leasing of MIDI and cellular services. Marketing expenses increased by IDR26.9 billion or 17.0%, from IDR158.7 billion in the first half of 2005 to IDR185.6 billion in the 2006 first half due to aggressive campaigns in the second quarter 2006. Other cost of services expenses increased by IDR88.7 billion, or 12.4%, from IDR714.0 billion in the first half of 2005 to IDR802.7 billion in the first half of 2006. Cost of SIM cards & pulse reload vouchers contributed around 30% of total cost of services, and increased by IDR51.5 billion or 27.2% year on year, due to provision for obsolete and net realizable value of inventory. The company recorded a decreased other expenses account from IDR764.7 billion in the first half of 2005 to IDR744.5 billion in the first half of 2006. Status of Debt As of June 30, 2006, the company had outstanding debt of IDR11.63 trillion, which includes Loans payable (including current maturities and unamortized debts issuance cost) of IDR1.70 trillion and bonds payable (including current maturities, unamortized bonds/notes issuance cost and unamortized notes discount) of IDR9.94 trillion. Capital Expenditures In the first half of 2006, Indosat committed IDR2.823 trillion for capital expenditure with this breakdown: i. IDR2.247 trillion for cellular network; ii. IDR421.6 billion for fixed telecom, MIDI and Backbone; iii. IDR104.1 billion for Network and Information Technology; iv. IDR50.0 billion for Region and Property For 2006, Indosat plans to spend for the capital expenditure of around US$700 million of which around 80% will be allocated for cellular business. Indosat's press release includes these financial highlights: Financial Summary For First-Half Ended June 30 In IDR Billion 2005 2006 %Change ---- ---- ------- Operating Revenues 5,780.7 5,767.1 -0.2 Operating Expense 3,864.3 4,199.3 8.7 Operating Income 1,916.4 1,567.8 -18.2 Net Income 786.3 548.8 -30.2 EBITDA 3,393.7 3,306.1 -2.6 Financial Ratios 2005 2006 ---- ---- EBITDA Margin 58.7% 57.3% Interest Coverage 578.9% 536.7% Debt to EBITDA 222.5% 220.8% Net Debt to Equity 42.5% 56.0% Recent Developments Indosat Received Annual Report Award On August 11, 2006, Indosat received the Annual Report Awards for the 2nd winner for Non-Financial Private Listed Category. The Award was conducted by the Ministry of State Own Enterprise, Directorate General Tax, Capital Market Supervisory Agency, Bank Indonesia, Jakarta Stock Exchange, National Committee Good Corporate Governance Regulation and Indonesia Accountant Union. Indosat Launched Starone in Palembang On August 5, 2006, PT Indosat launched Fixed Wireless Access (FWA) through its brand Jagoan and StarOne Postpaid for Palembang area as part of its plan to expand FWA services in 15 cities during year 2006. Besides Palembang, currently StarOne is available in 8 cities in Indonesia, Jakarta, Bogor, Surabaya, Malang, Medan, batam, Pekanbaru and Palembang. Indosat Launched Poin Plus Plus Program On August 29, 2006, Indosat launched the program so called "Poin Plus Plus," an appreciation program for all Indosat's wireless subscribers either those as postpaid subscribers (Matrix, Starone) or prepaid ones (Mentari, IM3, Jagoan), through poin collection based mechanism from usage and voucher reloading as well as the of subscription period. About Indosat PT Indosat Tbk -- http://www.indosat.com/-- is a fully integrated Indonesian telecommunications network and service provider and provides a full complement of national and international telecommunications services in Indonesia. The company is a provider of international long-distance services in Indonesia. It also provides multimedia, data communications and Internet services to Indonesian and regional corporate and retail customers. The company's principal cellular service is the provision of airtime, which measures the usage of its cellular network by its customers. Airtime is sold through postpaid and prepaid plans. It provides a variety of international voice telecommunications services and both international switched and non-switched telecommunications services. MIDI services include high-speed point-to-point international and domestic digital leased line broadband and narrowband services, a high-performance packet-switching service and satellite transponder leasing and broadcasting services. * * * The Troubled Company Reporter - Asia Pacific reported on May 22, 2006, that Moody's Investors Service has affirmed the Ba1 local currency corporate family rating of PT Indosat Tbk, and the Ba3 foreign currency senior unsecured bond rating of Indosat Finance Company B.V. and Indosat International Finance Company B.V. The bonds are irrevocably and unconditionally guaranteed by Indosat. The outlooks for the ratings remain positive. A TCR-AP report on June 7, 2006, stated that Fitch Ratings affirmed PT Indosat Tbk's long-term foreign and local currency Issuer Default Ratings at 'BB-'. The outlook on the ratings is stable. MEDIA NUSANTARA: Moody's Affirms (P)B1 Family and Bond Rating ------------------------------------------------------------- Moody's Investors Service has affirmed its provisional (P)B1 corporate family and bond rating on PT Media Nusantara Citra. This follows the company's announcement that the bond size to be issued will reduce to up to US$182 million from the initial proposed US$230 million. The ratings outlook is stable. Moody's commented that the downsizing does not have any rating impact. "It will moderately improve interest and leverage metrics but not sufficiently to change the rating" said Moody's analyst Angela Choi. Other changes to the company's business including the decision not to proceed with the acquisition of a share in Indovision are also ratings neutral. Moody's expects to affirm the ratings and remove them from their provisional status upon completion of the bond issuance. MNC, headquartered in Jakarta, Indonesia 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. MEDIA NUSANTARA: S&P Affirms 'B+' Senior Secured Debt Rating ------------------------------------- ---------------------- Standard & Poor's Ratings Services affirmed its 'B+' rating on senior secured debt of up to US$182 million to be issued by Indonesia's PT Media Nusantara Citra's wholly-owned subsidiary, Media Nusantara Citra B.V. The notes are unconditionally and irrevocably guaranteed by MNC and some of its subsidiaries, excluding PT Rajawali Citra Televisi Indonesia and PT Cipta Televisi Pendidikan Indonesia. The size of the issue has been reduced from the initial proposed amount of US$230 million as the company delays entering its pay TV business. RCTI and TPI, however, will become subsidiary guarantors of this issuance once RCTI's local currency bonds are fully paid, which is not later than October 2008, TPI is fully acquired by MNC, and TPI's debt is fully repaid, upon completion of the new bond issuance. The proceeds that will be received by Media Nusantara Citra B.V. will be on-lent to RCTI and TPI and these inter- company loans will be assigned to bondholders as security. This will mean that the new bondholders will be the largest creditor at RCTI and the only creditor at TPI until all guarantees are put in place. With the intercompany loans as security, bondholders will have a direct claim to the operating assets of RCTI and TPI for amounts up to the intercompany loans as if they were an unsecured creditor to the company. The rating on the notes is subject to final documentation. "The rating on MNC reflects the concentration of MNC's cash flows from a single source, an aggressive financial profile, intense competition in Indonesia's TV broadcasting industry, and the weaker credit profile of its parent," said Standard & Poor's credit analyst Yasmin Wirjawan. "These weaknesses are, however, partially offset by MNC's leading market position in Indonesia's TV advertising market, its established local language programs that are popular with viewers, and the favorable growth prospects for advertising spending in Indonesia," she added. MNC's flagship broadcasting station is operated by RCTI, which contributed nearly all of MNC's operating EBITDA in the first half of 2006. MNC's reliance on RCTI will remain high in the near to medium term. Indonesia's TV broadcasting industry is highly competitive, with 11 free-to-air TV stations, of which MNC owns three. The industry is also fragmented, and no single TV network captures more than 21% of viewers. The company's financial profile is aggressive, as debt to EBITDA is expected to reach 3.5x-4.0x in the near term, while the ratio of funds from operations to debt could decline to 15%-20%. Including cash programming cost, debt to equalized EBITDA is projected to peak at 5x-6x in the near term. The company also plans to spend US$89 million in 2006 and 2007 for an expansion program that will be mostly financed by debt. The credit profile of MNC is linked to that of its parent, PT Bimantara Citra Tbk., given the latter's full ownership in MNC, shared senior management, and control over MNC's business strategy and financial policy. MNC is the only integrated media company in Indonesia, with its three TV stations capturing 38% of audience share and 32% of advertising expenditures as of May 2006. The company produces and owns more than 50% of its programming, measured by hours, mainly in local language, providing MNC with the flexibility to control the timing, quality, costs, and the ability to tailor specific target audiences suitable to advertisers. The company is likely to benefit from robust growth in advertising spending in Indonesia, which has grown at a compounded annual rate of 24% over the past 10 years. Advertising spending is expected to continue rising steadily in the near to medium term, with the improved domestic economic outlook. TV advertising is the main advertising medium in Indonesia, and accounts for more than 60% of advertising spending. MNC's near-term liquidity is weak. At June 30, 2006, the company had cash balance of about IDR137 billion (US$14.4 million), and IDR400 billion marketable securities (mostly bonds). These were insufficient to cover debt due in one year of IDR728 billion. However, this will be mitigated by the new bond issuance as it will be used to refinance part of the group's debt including short-term loans (US$114 million), acquire the remaining 25% stake in TPI (US$25 million), and the balance to fund working capital as well as other general corporate purposes. ========= J A P A N ========= DAIEI INC: Marubeni to Sell Part of Stake to Retail Giants ---------------------------------------------------------- Trading house Marubeni Corporation is keen on selling part of its 44.6% holding in Daiei Inc. to either Aeon Co or Wal-Mart Stores Inc., Crisscross News reveals. As reported in the Troubled Company Reporter - Asia Pacific on August 18, 2006, Marubeni became Daiei's largest shareholder in August by purchasing shares held by government bailout agency Industrial Revitalization Corporation of Japan. Crisscross reports that the stake sale is in line with Marubeni's plan to tie up with one of the two supermarket chain operators. The partner will become Daiei's third-largest shareholder after Marubeni and Advantage Partners LLP, an investment fund holding a 23.5% stake. Marubeni plans to make a final decision following negotiations with other major retail chain operators, but Aeon is seen as a prime candidate because of its expertise in developing goods and outlets, The Yomiurin Shimbun says. The Mainichi Daily News cited Aeon President Motoya Okada as saying that his company is set to partner with Daiei in October this year by acquiring a 10% stake from Marubeni. Marubeni, meanwhile, has asked Wal-Mart and Aeon to outline how they would rebuild operations and distribution systems and to propose how big a stake they would be willing to take in Daiei, Reuters relates, citing The Nihon Kezai. According to The Japan Times, Aeon -- which had tried unsuccessfully to be picked as the leader or Daiei's rehabilitation -- has been seeking tie-ups with supermarkets in the Tokyo metropolitan area. On the other hand, United States- based Wal-Mart wants to boost its position in the Asian market by tying up with Daiei. But despite what Aeon's president reportedly said, the firm stressed it is not involved in talks with Marubeni over obtaining Daiei shares at present. Daiei also released a statement saying it is not involved in talks with a specific third party. About Daiei Inc. Headquartered in Hyogo, Tokyo, Daiei Incorporated -- http://www.daiei.co.jp/-- operates about 3,000 stores through its subsidiaries and franchisees. Its retail businesses include supermarkets, discount stores, department stores, and specialty shops. Other businesses include restaurants, hotels, and real estate services. Domestic sales make up more than 90% of its revenues. Daiei diversified haphazardly during the 1980s loading up on debt and failing to keep up with new, more efficient competitors. Daiei, with the support of the Industrial Rehabilitation Corporation of Japan, has decided to close 54 stores nationwide, including subsidiaries, as part of its new business reconstruction plan. Daiei has been rehabilitated under the auspices of the Industrial Revitalization Corp. of Japan after accumulating huge debts during the bubble economy of the late 1980s. With the IRCJ's help since late 2004, Daiei's finances have started to show a recovery as it has shut down unprofitable stores and sold subsidiaries. As reported by the Troubled Company Reporter - Asia Pacific on August 18, 2006, Marubeni assumed the leading role in Daiei's turnaround efforts by acquiring the entire 33.67% stake held by the IRCJ in Daiei. Marubeni now holds a 44.6% stake in Daiei. LEAR CORP: Faces Consolidated ERISA Violations Suit in Michigan --------------------------------------------------------------- Lear Corp. is a defendant in a purported consolidated class action filed in the United States District Court for the Eastern District of Michigan that alleges violations of the Employment Retirement Income Security Act. In April 2006, a former employee of the company filed a purported class action against the company, members of its board of directors, members of its Employee Benefits Committee and certain of its human resources personnel alleging violations of ERISA with respect to the company's retirement savings plans for salaried and hourly employees. In the second quarter of 2006, the company was served with three additional purported ERISA class actions, each of which contained similar allegations against the company, its board of directors, members of its Employee Benefits Committee and certain of its members of senior management and its human resources personnel. The complaints allege that the defendants breached their fiduciary duties to plan participants in connection with the administration of those plans. The fiduciary duty claims are largely based on allegations of breaches of the fiduciary duties of prudence and loyalty and of over-concentration of plan assets in the company's common stock. The plaintiffs purport to bring these claims on behalf of the plans and all persons who were participants in or beneficiaries of the plans from 2000 to the present and seek to recover losses allegedly suffered by the plans. The complaints do not specify the amount of damages sought. No determination has been made that a class action can be maintained, and there have been no decisions on the merits of the cases. In June 2006, the court entered an order consolidating these four lawsuits. The company intends to vigorously defend the consolidated lawsuit. The suit is "Malloy v. Lear Corp., et al., Case No. 5:06-cv- 11735-JCO-VMM," filed in the U.S. District Court for the Eastern District of Michigan under Judge John Corbett O'Meara with referral to Judge Virginia M. Morgan. About Lear Corp. Headquartered in Southfield, Michigan, Lear Corporation (NYSE: LEA) -- http://www.lear.com/-- supplies automotive interior systems and components. Lear provides complete seat systems, electronic products and electrical distribution systems and other interior products. Lear has operating facilities in Latin America, Europe and Asia Pacific. In the Asia Pacific, Lears operates in China, India, Philippines, Singapore, Thailand and Japan. * * * As reported in the Troubled Company Reporter on April 21, 2006, Standard & Poor's affirmed the 'B+' rating on the US$1 billion first-lien term loan. Standard & Poor's corporate credit rating on Lear Corp. is B+/Negative/B-2. The speculative-grade rating reflects the company's depressed operating performance caused by severe industry pressures. LIVEDOOR: Books JPY6.4-Billion Net Loss in Third Quarter -------------------------------------------------------- Livedoor Co. registered a JPY6.4-billion net loss in the nine- month period to June 30, 2006, as a result of an alleged accounting fraud scandal that led to the arrest of the company's top executives in January this year, Reuters reports, citing Kyodo News. The company recorded a one-off loss of JPY12.2-billion due to the discontinuation of a range of its business plans including one for an online bank, Reuters says. Livedoor withdrew a license application for the bank from the Financial Services Agency. Livedoor's operating revenue, however, soared 94.6% to JPY101.7 billion after Carchs Co. -- a used-car subsidiary formerly known as Livedoor Auto Co. -- joined the Livedoor group. According to Reuters, the higher revenue was a result of the consolidation of Carch's financial results with Livedoor's. Meanwhile, the group operating profit fell 0.9% to JPY6.1 billion as the recovery process for revenue from Internet advertising on its portal site was delayed with advertisers distancing themselves from the scandal-tainted company, Reuters reveals. * * * Headquartered in Tokyo, Japan, Livedoor Company, Limited -- http://corp.livedoor.com/en/-- is involved in out portal site "livedoor," financial business, corporate web solutions, data center and IP telephony business. The Troubled Company Reporter - Asia Pacific reported that in January 2006, Livedoor ex-president and founder Takafumi Horie, and other Livedoor directors were investigated over allegations that they have conspired to cover up the Company's JPY310- million pre-tax loss for the financial year ended September 2004 by doctoring financial accounts to instead show an inflated pre- tax profit of JPY5.03 billion. Following the accounting scandal surrounding the Company in January 2006, Livedoor's stock price plunged to JPY94 per share from over JPY300 per share. Livedoor was delisted from the Tokyo Stock Exchange on April 14, 2006. SANYO ELECTRIC: Wants to Delist from Nadaq and 3 Local Bourses -------------------------------------------------------------- Sanyo Electric Company is planning to have its stock delisted from the Sapporo Securities Exchange, the Nagoya Stock Exchange and the Fukuoka Stock Exchange due to sluggish trading in its shares, Reuters reports. At about the same time, it will withdraw its American Depositary Receipts from the United States' Nasdaq market while continuing to have its shares traded on the Tokyo Stock Exchange and the Osaka Securities Exchange, Reuters relates. The company expects the delisting to be completed by the end of the year. About Sanyo Electric Incorporated in Japan in 1947, Sanyo Electric Company, Limited -- http://www.global-sanyo.com/-- manufactures a broad range of electronic products grouped into six categories: video equipment, audio equipment, home appliances, industrial and commercial equipment, information systems and electronic devices, and batteries and other products. In its business-restructuring plan, Sanyo planned to downsize its global workforce of 96,000 by 15% to 14, 400 over a three- year period, and to concentrate on developing environment friendly products and technologies and sell 20% of a 2-million square meter property occupied by its factories in Japan. The Company stated that it had completed its downsizing in March 2006, two years ahead of schedule. * * * Standard & Poor's Ratings Services gave Sanyo Electric a 'BB' long-term corporate credit and 'BB+' long-term senior unsecured debt ratings, which were placed on Creditwatch with negative implications after the Company disclosed its plan to form a joint venture with Taiwan's Quanta Computer, Inc., in the flat panel TV business. XM SATELLITE: June 30 Balance Sheet Shows US$1.035B Deficit ----------------------------------------------------------- XM Satellite Radio Inc.'s working capital deficit decreased by about 2.7%, or US$29.18 million, from US$1.064 billion at Dec. 31, 2005 to US$1.035 billion at June 30, 2006. The Company had US$329.14 million in current assets and US$1.364 billion in current liabilities at June 30, 2006, compared with US$285.14 million in current assets and US$1.350 billion in current liabilities at Dec. 31, 2005. For the six months ended June 30, 2006, cash used in operating activities was US$433.4 million, consisting of a net loss of US$378.3 million adjusted for net non-cash expenses of US$264.5 million, US$4.5 million gain on sale of fixed assets and US$315.0 million used in working capital as well as other operating activities. For the same period in 2005, cash used in operating activities was US$85.3 million. For the six months ended June 30, 2006, cash used in investing activities was US$87.2 million, compared with US$102 million for the same period in 2005. For the six months ended June 30, 2006, cash provided by financing activities was US$240.7 million, compared with US$399.8 million for the same period in 2005. On May 1, 2006, XM Satellite Radio Holdings Inc. announced that its subsidiary, the Company, had completed an US$800 million debt offering, consisting of US$600 million of 9.75% Senior Notes due 2014 and US$200 million of Senior Floating Rate Notes due 2013, each at the issue price of 100%. Substantially all of the proceeds of the debt offering have been or are being applied to refinance existing debt or other fixed obligations. On May 5, 2006, the Company entered into a new US$250 million revolving credit facility with a group of banks. It has the right to increase the size of the facility by up to US$100 million, with any increase to be syndicated on a "best efforts" basis with no lender being required to increase its commitment. On April 19, 2006, the Company entered into a series of amendments to arrangements with General Motors Corp. under which it made a prepayment in the amount of US$237 million to General Motors to retire about US$320 million of fixed payment obligations that would have come due in 2007, 2008 and 2009 under the distribution agreement with General Motors. About XM Satellite Headquartered in Washington, D.C., XM Satellite Radio Inc. (Nasdaq: XMSR) -- http://www.xmradio.com/-- is a wholly owned subsidiary of XM Satellite Radio Holdings Inc. XM has been publicly traded on the NASDAQ exchange since Oct. 5, 1999. XM's 2006 lineup includes more than 170 digital channels of choice from coast to coast: the most commercial-free music channels, plus premier sports, talk, comedy, children's and entertainment programming; and 21 channels of the most advanced traffic and weather information. XM has broadcast facilities in New York and Nashville, and additional offices in Boca Raton, Florida; Southfield, Michigan; and Yokohama, Japan. At June 30, 2006, XM Satellite Radio Inc.'s balance sheet showed a stockholders' deficit of US$358,079,000, compared to a deficit of US$362,713,000, at Dec. 31, 2005. * * * As reported in the Troubled Company Reporter on April 21, 2006, Standard & Poor's Ratings Services assigned its 'CCC' rating to XM Satellite Radio Inc.'s proposed US$600 million senior unsecured notes. The senior unsecured notes are rated one notch below the corporate credit rating because of the sizable amount of secured debt in the company's capital structure relative to its asset base. At the same time, Standard & Poor's assigned its 'B-' rating and recovery rating of '1' to XM's proposed US$250 million first- lien secured revolving credit facility, indicating an expectation of full recovery of principal in the event of a payment default. ========= K O R E A ========= KOOKMIN BANK: Preliminary Data Show Highest BIS Capital Ratio ------------------------------------------------------------- Kookmin Bank posted a 15.20% BIS capital adequacy ratio as of the end of June 2006, 2.25 percentage points higher than the 12.95% ratio it held as of the end of 2005, according to a press release from South Korea's Financial Supervisory Commission showing preliminary data. The Korea Herald explains that the capital adequacy ratio is set by the Bank for International Settlements to measure the soundness of 18 banks in Korea. The BIS ratio stood at 13.08% on average in June, up from 13% at the end of December 2005. Kookmin has the highest BIS capital ratio among seven national banks in South Korea and is higher than the average of 12.75% for all nationwide banks, and the 13.08% overall average ratio. Other banks in the same league includes: * Korea Exchange Bank, which posted a 0.21 percentage point improvement to get a 13.89% BIS capital ratio as of the end of June 2006, and; * Citibank Korea with a 14.28% ratio, down 0.75 percentage points. The FSC Preliminary Data also show: BIS Capital Ratio by Bank Dec. Dec. Dec. Dec. June 2002 2003 2004 2005 2006 Change ---- ---- ---- ---- ---- ------ Korea Exchange Bank 9.31 9.32 9.47 13.68 13.89 0.21 Citibank Korea 12.11 10.98 12.42 15.03 14.28 -0.75 Kookmin 10.41 9.81 11.14 12.95 15.20 2.25 About Kookmin Bank Kookmin Bank -- http://inf.kbstar.com/-- provides various commercial banking services, such as deposits, credit cards, trust funds, foreign exchange transactions, and corporate finance. The bank also offers Internet banking services. * * * Moody's Investors Service gave Kookmin Bank a Bank Financial Strength rating of D+ effective March 27, 2006. Fitch Ratings gave the bank a B/C rating. KYONGNAM BANK: Posts Lowest Capital Ratio Among Regional Banks -------------------------------------------------------------- Kyongnam Bank posted an 11.42% BIS capital ratio as of the end of June 2006, according to preliminary data from South Korea's Financial Supervisory Commission. The Korea Herald explains that the capital adequacy ratio is set by the Bank for International Settlements to measure the soundness of 18 banks in Korea. The BIS ratio stood at 13.08% on average in June, up from 13% at the end of December 2005. The data show that the result is 0.83 percentage points higher than the 10.59% BIS capital ratio Kyongnam had at the end of 2005. It is, however, lower than the 11.63% average for all regional banks in South Korea. The FSC press release details BIS Capital Ratios at the end of the years 2002 until 2005 and the end of June 2006 for these regional banks: 2002 2003 2004 2005 2006 Change ---- ---- ---- ---- ---- ------ Daegu 10.85 10.58 10.66 11.33 11.60 0.27 Busan 11.69 11.66 10.84 12.25 11.61 -0.64 Kwangju 11.03 10.72 11.81 11.60 11.89 0.29 Jeju 11.71 10.96 10.91 11.71 12.22 0.51 Jeonbuk 11.35 10.79 10.72 11.53 11.54 0.01 About Kyongnam Bank Kyongnam Bank -- http://www.kyongnambank.co.kr/-- has served as a regional financial center of South Gyeongsang Province from its stronghold bases in Masan, Changwon and Ulsan, the three major industrial centers in Korea. Fitch Ratings gave Kyongnam Bank an individual rating of 'C' effective April 25, 2006. STANDARD CHARTERED FIRST BANK: Last in BIS Capital Ratio -------------------------------------------------------- Woori Bank has the lowest BIS capital ratio as of the end of June 2006 among nationwide banks with 10.22%, 0.17 percentage points lower than the 10.74% as of the end of 2005, states a press release from South Korea's Financial Supervisory Commission. The preliminary results show that Woori Bank has a lower BIS capital ratio than the average of 12.75% for all nationwide banks, and 13.08% for all South Korean banks. The Korea Herald explains that the capital adequacy ratio is set by the Bank for International Settlements to measure the soundness of 18 banks in Korea. The BIS ratio stood at 13.08% on average in June, up from 13% at the end of December 2005. The FSC press release details BIS Capital Ratios for these nationwide banks at the end of the years 2002 until 2005 and the end of June 2006: BIS Capital Ratio by Bank 2002 2003 2004 2005 2006 Change ---- ---- ---- ---- ---- ------ Shinhan 10.92 10.49 11.94 12.23 11.77 -0.46 Woori 11.59 11.23 12.20 11.65 11.48 -0.17 SC First Bank 11.55 12.00 11.91 10.74 10.22 -0.52 Hana 10.30 11.17 11.83 13.29 11.70 -1.59 About SC First Bank Standard Chartered First Bank Korea Ltd. -- http://www.scfirstbank.com/-- is a commercial bank that offers a wide range of financial services. The company's offerings include loans, deposits, credit card, trust accounts, financial derivative transactions, corporate banking, consumer banking, and investment banking services. SC First Bank is the sixth largest commercial bank in Korea with total assets of KRW60.2 trillion as of March 31, 2006. Through its nationwide network of 404 branch offices, SC First Bank serves some 3.5 million clients in Korea. Moody's Investors Service gave SC First Bank a Bank Financial Strength Rating of 'D+'. Fitch Ratings gave the bank a 'C' Individual Rating. TRIGEM COMPUTER: Gets Letters of Interest from Lenovo & 9 Others ---------------------------------------------------------------- TriGem Computer, Inc., has received letters of interest from Lenovo Group, Ltd., and nine other interested parties as of August 25, 2006, Bloomberg News reports, citing the Korean Economic Daily. Japanese PC maker MCJ Co., Ltd., also expressed interest to buy TriGem, according to Reuters, citing the same Korean newspaper. Bang Yeong Il, an official at Zoomee Communication, TriGem's public relations agency, confirmed to Bloomberg that 10 bids were received, but refused to reveal the potential buyers' names or the bid amounts. The Suwon District Court, Bankruptcy Division, in South Korea, has estimated TriGem's value at KRW200 billion to KRW250 billion -- US$209 million to US$261 million -- Reuters relates. As reported in the Troubled Company Reporter - Asia Pacific on June 7, 2006, TriGem put its assets up for sale pursuant to a corporate reorganization plan agreed to by TriGem's creditors and shareholders, and approved by the Suwon District Court on January 5, 2006. TriGem will use the sale proceeds for a "single lump repayment" of reorganization debt and normalization of the company's operations. TriGem has retained the consortium of Samjong KPMG FAS, Inc., Samhwa Accounting Corp. and Barun Law in connection with the sale. TriGem and its M&A Advisors will select a number of prospective bidders who will be allowed to conduct due diligence before submitting binding offers. Only Qualified Bidders will be allowed to conduct preliminary due diligence, which includes factory visit and management presentation from September 6 to 19, 2006. Qualified Bidders must submit binding offers to Samjong KPMG FAS by September 27, 2006. A preferred bidder will be selected on September 29, Mr. Bang said, according to Bloomberg. TriGem has not yet scheduled an auction. About TriGem Headquartered in Ansan City, Kyunggi-Do, Korea, TriGem Computer Inc. -- http://www.trigem.com/-- manufactures desktop PCs, notebook PCs, LCD monitors, printers, scanners, other computer peripherals, and PIDs and supplies over four million PCs a year to clients all over the world. The Troubled Company Reporter - Asia Pacific reported on June 20, 2005, that the Suwon District Court has authorized TriGem's receivership and gave it a chance to revive its operations. The Suwon Court then appointed the Company's former president and chief executive officer Park Il-hwan as supervisor. Mr. Park, also as TriGem's Foreign Representative, filed a chapter 15 petition on Nov. 3, 2005, with the United States Bankruptcy Court for the Central District of California (Bankr. C.D. Calif. Case No. 05-50052), seeking recognition of TriGem's case pending under the Corporate Reorganization Act in Korea as a foreign main proceeding. Charles D. Axelrod, Esq., at Stutman Treister & Glatt, P.C., represents the Foreign Representative in the U.S. TriGem America Corporation, an affiliate of the Debtor, filed for chapter 11 protection on June 3, 2005 (Bankr. C.D. Calif. Case No. 05-13972). TriGem Texas, Inc., another affiliate of the Debtor, also filed for chapter 11 protection on June 8, 2005 (Bankr. C.D. Calif. Case No. 05-14047). (TriGem Bankruptcy News, Issue No. 3 Bankruptcy Creditors' Service, Inc., 215/945- 7000). * Banks BIS Capital Ratios Up Slightly -------------------------------------- Preliminary figures show that banks' BIS capital ratios averaged 13.08% at the end of June 2006, compared with end-2005 average of 13.00%, according to a press release from South Korea's Financial Supervisory Commission. The Korea Herald explains that the capital adequacy ratio is set by the Bank for International Settlements to measure the soundness of 18 banks in Korea. Bank capital rose KRW9.1 trillion or 8.8% on robust net income totaling KRW8.1 trillion for the first half of 2006, compared with KRW64.6 trillion or 8.2% jump in risk-weighted assets. Tier-1 capital rose 11.0% (KRW8.1 trillion) versus a 3.3% increase (KRW1.0 trillion) for tier-2 capital. The press release details BIS Capital Ratios for the end of the years 2001 until 2005 and the end of June 2006: 2001 2002 2003 2004 2005 2006 ---- ---- ---- ---- ---- ---- BIS capital ratio 11.68 11.33 11.16 12.08 13.00 13.08 Tier-1 capital ratio 7.70 7.16 6.95 7.97 9.32 9.57 The capital ratio rose for nine banks but fell for the others. Banks with higher capital ratios were helped by strong earnings. Kookmin Bank and the National Agricultural Cooperative Federation increased their tier-2 capital by KRW1.9 trillion and KRW800 billion, respectively, with subordinated debt issues. For most of the banks with lower capital ratios than at end of 2005, capital increases did not keep pace with increases in risk-weighted assets. Capital ratio for Shinhan Bank fell modestly following its merger with Chohung Bank on April 1, 2006. All the banks reported BIS capital ratio higher than 10% at end-June. =============== M A L A Y S I A =============== AYER HITAM: July Default Amount Hits MYR41,517,039 -------------------------------------------------- As of June 30, 2006, Ayer Hitam Tin Dredging Malaysia Group has a total default in principal sums plus interest of MYR41,517,039. Of the total default amount, MYR28,192,822 is owed by Ayer Hitam's wholly owned subsidiary Motif Harta Sdn Bhd to: * Alliance Bank Malaysia Berhad; * EON Bank Berhad; * Kewangan Bersatu Berhad; and * Malayan Banking Berhad. The remaining MYR13,324,218 is owed by Ayer Hitam's 100% owned subsidiary Pembinaan AHT Sdn Bhd to AmBank Berhad. The principal sum is based on the amount owed to the syndicated lenders as of September 30, 2004, as per judgment dated May 9, 2005. Pursuant to the judgment, interest is chargeable at the rate of 3.5% per annum above base lending rate until full settlement of the amount outstanding. Interest comprises of default interest from October 1, 2004, to June 30, 2006. About Ayer Hitam Headquartered in Kuala Lumpur, Malaysia, Ayer Hitam Tin Dredging Malaysia Berhad -- http://www.ahtin.com.my/-- is involved in property development and the trading of promotional products and services in Malaysia. The Company is also engaged in the trading of uninterrupted power supply equipment and magnetic fuel treatment systems and the provision of investment holding, nominee services, hotel development and management and renovation services. The Company has been incurring losses in the past years and has defaulted on several loan facilities. As of June 30, 2006, Ayer Hitam's total default amounts MYR41,517,039. The Company has presented a restructuring proposal, which was rejected by the Securities Commission after determining that the Scheme is not a comprehensive proposal capable of resolving all the financial issues faced by the Company. FOREMOST HOLDINGS: Posts MYR12.9M Net Profit in Second Quarter -------------------------------------------------------------- Foremost Holdings Berhad released on August 28, 2006, its unaudited financial report for the second quarter ended June 30, 2006. For the quarter under review, the group recorded a net profit of MYR12,863,000 on MYR5,975,000, compared with a net loss of MYR451,000 on MYR34,224,000 revenue in the same quarter last year. As of June 30, 2006, the group accumulated MYR34,220,000 in losses. Based on the June 30, 2006, balance sheet, the group has MYR26,615,000 in current assets available to pay MYR13,569,000 in current liabilities coming due within the next 12 months. The group has total assets of MYR35,853,000, total liabilities of MYR13,823,000, and total stockholders' equity of MYR22,030,000. There was no dividend paid or declared during the current financial quarter ended June 30, 2006. The group's financial report and its accompanying notes are available for free at: http://bankrupt.com/misc/tcrap_foremostholdings083106.xls http://bankrupt.com/misc/tcrap_foremostholdingsnotes083106.pdf About Foremost Holdings Foremost Holdings Berhad manufactures and sells automobile speakers, home audio speakers, general-purpose speakers and speaker wooden cabinets. The Company is also engaged in the trading of auto accessories, investment holdings and the provision of management services. Products are distributed in Malaysia, Singapore, United Kingdom, Italy, Taiwan, the United States, other Asian countries, other European countries and other countries. Foremost was classified as an affected listed issuer under Bursa Malaysia Securities Berhad's Practice Note 17 because it has "insufficient financial position to warrant continued listing". As an affected issuer, the Company is required to draft a plan to regularize its finances to avoid being delisted from the Official List. FOREMOST HOLDINGS: Clarifies Disclosure on Unit's Wind-Up --------------------------------------------------------- Foremost Holdings Berhad clarified an earlier announcement regarding the wind-up of its wholly owned subsidiary, Kenn Kenn Auto Accessories & Services Sdn Bhd, which was wound up on June 13, 2006, by the Kuala Lumpur High Court. As reported by the Troubled Company Reporter - Asia Pacific on August 24, 2006, a wind-up petition was served to Kenn Kenn on February 23, 2006, by Citibank Berhad. The petition was heard on May 9, 2006, and the order to wind-up Kenn Kenn's operations was issued on June 13, 2006. In an update on August 28, Foremost Holdings clarified that the notice was served on December 14, 2005. About Foremost Holdings Foremost Holdings Berhad manufactures and sells automobile speakers, home audio speakers, general-purpose speakers and speaker wooden cabinets. The Company is also engaged in the trading of auto accessories, investment holdings and the provision of management services. Products are distributed in Malaysia, Singapore, United Kingdom, Italy, Taiwan, the United States, other Asian countries, other European countries and other countries. Foremost was classified as an affected listed issuer under Bursa Malaysia Securities Berhad's Practice Note 17 because it has "insufficient financial position to warrant continued listing". As an affected issuer, the Company is required to draft a plan to regularize its finances to avoid being delisted from the Official List. FURQAN BUSINESS: Austral Amalgamated Changes Name to EBF Land ------------------------------------------------------------- Furqan Business Organization Berhad's wholly owned subsidiary, Austral Amalgamted Assets Sdn Bhd, has changed its name to EBF Land Sdn Bhd effective August 23, 2006. About Austral Amalgamated Austral Amal is a wholly owned subsidiary of Furqan Business and was incorporated in Malaysia under the Companies Act, 1965, on June 5, 1995. The authorized and issued and paid up capital of Austral Amal is MYR100,000 divided into 100,000 ordinary shares of MYR1.00 each and MYR2.00 divided into two ordinary shares of MYE1.00 each, respectively. About Furqan Business Organization Headquartered in Kuala Lumpur, Malaysia, Furqan Business Organization Berhad formerly known as Austral Amalgamated Berhad is engaged in property development and investment, tour and travel services, and financial services. Other activities include contractor, leasing and hire purchase financing facilities. The Group's operations are substantially carried out in Malaysia. Rating Agency Malaysia has downgraded the rating of the Company's MYR37.66 million Redeemable Convertible Loan Stocks, from BB3 to B1, with a negative outlook. At the same time, the rating agency is maintaining the Rating Watch on the Company. The downgrade is premised on the deterioration in Furqan's business profile, especially in its leasing business, which is currently the main revenue contributor to the Group. KIG GLASS: June 30 Balance Sheet Reveals Insolvency --------------------------------------------------- KIG Glass Industrial Berhad submitted for public release its unaudited financial report for the second quarter ended June 30, 2006. The group recorded lower revenues of MYR1.84 million for the quarter under review as compared to MYR17.44 million in the quarter ended June 30, 2005. The decrease was due to the fact that the KIG Glass and its subsidiary, Zibo Jiali Glass Industry Co. Ltd, have both ceased production operations. However, the Group recorded a lower loss before taxation of MYR1.81 million for the current quarter as compared to MYR15.33 million in the same quarter last year. The lower loss was mainly attributable to: -- the deconsolidation of its loss making subsidiary, Zibo Jiali Glass Industry; and -- lower depreciation charge due to recognition of impairment losses on property, plant and equipment in the last financial year ended December 31, 2005. The group's turnover decreased to MYR1.84 million for the current quarter as compared to MYR2.95 million in the preceding quarter. Loss before taxation increased to MYR1.81 million as compared to MYR1.71 million in the preceding quarter due to lower sales. As of June 30, 2006, the group's accumulated losses reached MYR289,365,000. The group's June 30, 2006, balance sheet revealed strained liquidity with current assets of MYR12,844,000 available to pay current liabilities of MYR153,683,000 coming due within the next 12 months. The group has a net current deficit of MYR140,839,000. As of June 30, 2006, the group has total assets of MYR57,173,000 and total liabilities of MYR153,698,000, resulting into a stockholders' deficit of MYR96,525,000. There was no dividend paid or declared since the end of fiscal 2005. The scale of losses incurred by KIG Glass over the years have significantly eroded its share capital base and the current net liability position of the company has demonstrated its lack of working capital to support its existing operations. In this regard, the company's board of directors are compelled to protect the long-term interests of the shareholders and creditors, to prevent delisting of the Company. Due to insolvency, the company has recently been classified under Practice Note 17. Accordingly, the directors are of the opinion that the prospects for the rest of the year are not expected to improve. The company's second quarter report and its accompanying notes are available for free at: http://bankrupt.com/misc/tcrap_kigglass083106.xls http://bankrupt.com/misc/tcrap_kigglassnotes083106.doc About KIG Glass Industrial Headquartered in Johor Darul Ta'zim, Malaysia, KIG Glass Industrial Berhad -- http://www.kedaung.com/-- manufactured and sold glassware, glass blocks and carton boxes. The firm's other activities included manufacturing of ceramic roof tiles. Its operations were carried out in Malaysia and China. Due to its inability to pay debts, the Company ceased operation in May 2005. As of December 31, 2005, the KIG Group's accumulated losses stood at almost MYR300 million. The shareholders' funds of the KIG Group was in deficit of approximately MYR93 million while its total borrowings amounted to approximately MYR104 million. As of June 30, 2006, the group has total assets of MYR57,173,000 and total liabilities of MYR153,698,000, resulting into a stockholders' deficit of MYR96,525,000. SUGAR BUN: Lists Additional 1,500,000 New Shares ------------------------------------------------ Sugar Bun Corporation Berhad's additional 1,500,000 new ordinary shares of MYR1 each will be granted listing and quotation today, September 1, 2006. The new shares were derived from the exercise of 1,500,000 warrants 2002/2012. According to the Troubled Company Reporter - Asia Pacific, Sugar Bun's additional 1,000,000 new ordinary shares derived from the exercise of 1,000,000 warrants 2002/2012 were granted listing and quotation on August 24, 2006. About Sugar Bun Corp. Sugar Bun Corporation Bhd -- http://www.sugarbun.com/-- is engaged in the operation and franchising of restaurants, bakeries, and confectioneries. Its other activities include general trading of machinery, spare parts and phone cards, investment holding and provision of administrative, management and marketing services. Operations of the Group are carried out mainly in Malaysia. The Company is currently undertaking a corporate and debt restructuring program to wipe out its accumulated losses. As of April 30, 2006, the Company has accumulated losses of MYR46,190,000. TENAGA NASIONAL: Lists and Quotes Shares Today ---------------------------------------------- Tenaga Nasional Berhad's additional 1,092,147 new ordinary shares of MYR1 each will be granted listing and quotation today, September 1, 2006. The new shares were derived from the conversion of USD2,328,000 nominal value of the five-year (2002/2007) guaranteed exchangeable bonds issued by Tenaga's wholly owned subsidiary, TNB capital (L) Limited. About Tenaga Nasional Headquartered in Kuala Lumpur, Malaysia, Tenaga Nasional Berhad -- http://www.tnb.com.my/-- is engaged in the generation, transmission, distribution and sale of electricity. The Company also manufactures, sells and repairs transformers and switchgears. It is also involved in provision of project management, consultancy, engineering works, contracting, trading, risk management, risk surveys, insurance, research and development, property management, energy project development and investment holding services. It also undertakes repairs and maintenance of motor vehicles. The Group operates in Malaysia and Mauritius. The Company is currently undertaking liability management exercises, which are expected to extend the Company's debt maturity profile and reduce refinancing risk. Moody's gave the Company a 'Ba' rating due to the Company's relatively high financial leverage and significant PPA obligations. ===================== P H I L I P P I N E S ===================== EQUITABLE PCI: SM Group Files Tender Offer for EPCIB Shares ----------------------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on August 31, 2006, the Sy Family presented a binding offer to buy all the Equitable PCI Bank common shares owned by EBC Investments, Inc., for PHP92 per share or a total consideration of PHP7,250,253,016, payable in cash. Simultaneously, the Sy Family intended to commence a tender offer to purchase Equitable PCI shares of common stock pursuant to the Tender Offer Rules of the Securities and Regulation Code of the Philippines, and its amended Implementing Rules and Regulations, the TCR-AP noted. According to a release with the Philippine Stock Exchange, the Board of Directors of SM Investments Corp. approved the filing of a Tender Offer Report, in consortium with its affiliates, with the Securities and Exchange Commission with respect to its plan to purchase the remaining shares of common stock of Equitable PCI Bank. The offer covers all of EPCIB's shares not already owned by the SM Group and the offer price has been set at PHP92/share payable as: * 10% payable on October 2, 2006 -- Cross and Settlement Date, * 10% on June 2, 2007, * 10% on February 2, 2008, and * 70% on October 2, 2008 The total consideration for the tender offer is estimated at up to PHP36.9 billion. The SM Group also offered to purchase, on a negotiated basis, EBCII's 10.8% stake in EPCIB, valued at PHP7.25 billion. SMIC disclosed that it is undertaking the tender offer to consolidate SM Group's holdings in EPCIB. SMIC said that it is willing to put in more funds in EPCIB to meet its capital requirements and prepare it for Basle II and the new reporting standards. It also said that it is keeping its option to merge EPCIB with another bank, if the business case for it is present, to further strengthen EPCIB's balance sheet. The merger will, however, be subject to approval of EPCIB shareholders and regulators. The tender offer commenced on August 31, 2006, and will end on September 28, 2006. The transaction is expected to be completed on October 2, 2006. Banco de Oro Supports SMIC Tender Offer In a filing with the PSE, Banco De Oro Universal Bank advises that it has been informed of SMIC's Tender Offer report with the Securities and Exchange Commission with respect to SMIC's plan to purchase the remaining shares of common stock of Equitable PCI Bank, Inc. In this regard, its Board of Directors has expressed full support to the SMIC Tender Offer. As reported in the Troubled Company Reporter - Asia Pacific on July 28, 2006, Banco de Oro Universal Bank decided to forego on merger plans with Equitable PCI Bank, Inc. About SM Group The SM Group is one of the largest conglomerates in the country. It is engaged in shopping mall development, retail merchandising, financial services, and real estate development, and tourism. SMIC has total assets of PHP182.45 billion and stockholders' equity of PHP105.14 billion as of June 30, 2006. About Equitable PCI Equitable PCI Bank, Inc. -- http://www.equitablepci.com/-- is a universal bank formed from the consolidation of Equitable Banking Corporation and PCI Bank on September 2, 1999. EBC and its subsidiaries provide a wide range of commercial, corporate, and retail banking and financial services, including lending and deposit taking, branch banking, international banking, electronic banking, trade finance, cash management, and trust and treasury services. Aside from commercial banking, the Bank also capitalizes in credit card, investment banking, leasing, trust banking, and remittance business. * * * Moody's Investors Service gave Equitable PCI Bank's Subordinated Debt and Long-Term Bank Deposits 'Ba3' ratings effective May 25, 2006. Standard & Poor's Rating Service gave Equitable PCI Bank's senior unsecured debt a 'B' rating and its subordinated debt a CCC+ rating. GLOBE TELECOM: S&P Affirms 'BB+' Rating with Stable Outlook ----------------------------------------------------------- Standard & Poor's Ratings Services affirms its ratings on Globe Telecom Inc. at 'BB+', a major cellular telephone operator in the Philippines. The outlook is stable. "The ratings on Globe reflect its steady market position and solid cash flow protection measures, although these strengths are offset by declining domestic subscriber growth and intense price competition," Standard & Poor's credit analyst Yasmin Wirjawan, says. "The stable outlook reflects the company's steady market position, improving financial profile, and higher operating efficiency." Globe is one of two leading wireless service providers in the Philippines. At June 30, 2006, the company had a subscriber base of about 13.9 million, or a market share of 36%. "We expect Globe to maintain its favorable market position in the near to medium term given its established customer base and improved network," Ms. Wirjawan says. Globe is expected to generate steady funds from operations (FFO) averaging PHP25 billion (US$473 million) to PHP30 billion per year in the medium term. The company is expected to maintain positive free cash flows, as future capital expenditures are lower after the completion of its 2G network expansion. Globe's liquidity is strong. The company had cash of PHP14 billion, more than sufficient to cover short-term debts of PHP7 billion at June 30, 2006. Nevertheless, Globe faces slowing new subscriber growth, amid greater market penetration, which reached 44% as at June 30, 2006. In addition, pricing competition is expected to remain intense, as operators pursue aggressive pricing and promotions to build market share. The stable outlook reflects the company's steady market position, improving financial profile, and higher operating efficiency. An upward revision of the transfer and convertibility risk assessment for the Philippines will be required before an upgrade of the foreign currency ratings on Globe may be considered. Conversely, any downgrade in the sovereign rating could prompt a reduction in the T&C risk assessment or deterioration in country risk factors, which in turn could result in a downgrade of the ratings on Globe. The outlook or rating on Globe could be negatively affected if heightened competition significantly weakens the company's market position. In addition, the ratings may also be pressured if initiatives to increase shareholders' returns, like significant dividend payouts or significant debt-funded investments, deteriorate Globe's current financial metrics, such as when FFO to debt drops below 35%. MIRANT CORP: Discloses Final Results of Tender Offer ---------------------------------------------------- Mirant Corporation discloses the final results of its modified "Dutch auction" tender offer to purchase up to 43,000,000 shares of the company's common stock, which expired at 5:00 p.m., New York City time, on August 21, 2006. Mirant has accepted for payment an aggregate of 43,000,000 shares of its common stock at a purchase price of US$28.50 per share. These shares represent approximately 14% of the shares outstanding as of June 30, 2006. Mirant has been informed by Mellon Investor Services, the depositary for the tender offer, that the final proration factor for the tender offer is approximately 85.6%. Based on the final count by the depositary (and excluding any conditional tenders that were not accepted due to the specified condition not being satisfied), 50,218,254 shares were properly tendered and not withdrawn at or below a price of US$28.50 per share. Payment for the shares accepted for purchase, and return of all shares tendered and delivered and not accepted for purchase, will be carried out promptly by the depositary. As a result of the completion of the tender offer, Mirant has approximately 257,068,663 shares of common stock outstanding (basic). Any questions with regard to the tender offer may be directed to: * the Information Agent for the Offer: Innisfree M&A Incorporated at 1 877750 5836; or * the Dealer Manager for the Offer: J.P. Morgan Securities Inc. at 1 877 371 5947 About Mirant Headquartered in Atlanta, Georgia, Mirant Corporation (NYSE: MIR) -- http://www.mirant.com/-- is an energy company that produces and sells electricity in North America, the Caribbean, and the Philippines. Mirant owns or leases more than 18,000 megawatts of electric generating capacity globally. Mirant Corporation filed for Chapter 11 protection on July 14, 2003 (Bankr. N.D. Tex. 03-46590), and emerged under the terms of a confirmed Second Amended Plan on Jan. 3, 2006. Thomas E. Lauria, Esq., at White & Case LLP, represented the Debtors in their successful restructuring. When the Debtors filed for protection from their creditors, they listed US$20,574,000,000 in assets and US$11,401,000,000 in debts. The Debtors emerged from bankruptcy on Jan. 3, 2006. * * * As reported in the Troubled Company Reporter on July 17, 2006, Moody's Investors Service downgraded the ratings of Mirant Corporation and its subsidiaries Mirant North America, LLC and Mirant Americas Generation, LLC. The Ba2 rating for Mirant Mid- Atlantic, LLC's secured pass through trust certificates was affirmed. Additionally, Mirant's Speculative Grade Liquidity rating was revised to SGL-2 from SGL-1. The rating outlook is stable for Mirant, MNA, MAG, and MIRMA. Moody's downgraded Mirant Americas Generation, LLC's Senior Unsecured Regular Bond/Debenture, to B3 from B2. Moody's also downgraded Mirant Corporation's Corporate Family Rating, to B2 from B1, and Speculative Grade Liquidity Rating, to SGL-2 from SGL-1. Mirant North America, LLC's Senior Secured Bank Credit Facility, was also downgraded to B1 from Ba3 and its Senior Unsecured Regular Bond/Debenture, to B2 from B1. As reported in the Troubled Company Reporter on July 13, 2006, Fitch Ratings placed the ratings of Mirant Corp., including the Issuer Default Rating of 'B+', and its subsidiaries on Rating Watch Negative following its announced plans to buy back stock and sell its Philippine and Caribbean assets. Ratings affected are Mirant Corp.'s 'B+' Issuer Default Rating and Mirant Mid-Atlantic LLC's 'B+' Issuer Default Rating and the Pass-through certificates' 'BB+/Recovery Rating RR1'. Fitch also placed Mirant North America, Inc.'s Issuer Default Rating of 'B+', Senior secured bank debt's 'BB/RR1' rating, Senior secured term loan's 'BB/RR1' rating, and Senior unsecured notes' 'BB-/RR1' rating on Rating Watch Negative. Mirant Americas Generation, LLC's Issuer Default Rating of 'B+' and Senior unsecured notes' 'B/RR5' rating was included as well. Standard & Poor's Ratings Services also placed the 'B+' corporate credit ratings on Mirant Corp. and its subsidiaries, Mirant North American LLC, Mirant Americas Generating LLC, and Mirant Mid-Atlantic LLC, on CreditWatch with negative implications. PHILIPPINE AIRLINES: Baguio Gold to Finish Due Diligence Yr-end ---------------------------------------------------------------- The Troubled Company Reporter - Asia Pacific reported on August 2, 2006, that Baguio Gold Holdings Corp. was planning to acquire a majority stake in Philippine Airlines Inc., and considering several options in bidding for the stake. According to The Manila Times, Pol Holdings Inc., Cube Factor Holdings Inc., Ascot Holdings Inc., Sierra Holdings and Equities Inc., Network Holdings and Equities Inc., and Maxell Holdings Corp., hold the shares Baguio Gold wants to acquire. The paper relates that Baguio Gold expects to complete its due diligence on the airline by the end of 2006. Baguio Gold's planned acquisition will pave the way for Philippine Airlines' backdoor listing, the paper cites an official, as saying. Jaime J. Bautista, PAL president and chief operating officer, disclosed that Baguio Gold began its due diligence before buying about 82% of the airline. Mr. Bautista estimated that the total book value of the company is about US$201.548 million (PHP10 billion) or PHP1 a share, The Manila Times says. Mr. Bautista noted that the acquisition may be done through a share swap or through the assumption of the shareholders' liabilities, adding "most likely it will be done through assumption of liabilities [of the six companies]," The Manila Times relates. About Philippine Airlines Philippine Airlines -- http://www.philippineairlines.com/-- is the Philippines' national airline. It was the first airline in Asia and the oldest of those currently in operation. With its corporate headquarters in Makati City, Philippine Airlines flies both domestic and international flights. As of 2005, it claims to serve 21 domestic airports and 31 foreign cities. Its main hub is the Ninoy Aquino International Airport in the capital city of Manila. Following labor problems and its failure to settle debts, PAL filed for rehabilitation in June 1998, and is slated to complete its 10-year debt rehabilitation program in 2009. A March 21, 2006 report by the Troubled Company Reporter - Asia Pacific stated that the airline company will continue a government-led rehabilitation program even as creditors neither approved nor rejected the program to leave the protection of the Securities and Exchange Commission. A report by the Manila Times in July 2006 said that since its corporate rehabilitation in 1998, PAL reduced its debts to PHP237.23 billion from PHP496.02 billion by selling assets and using the proceeds to pay off maturing debts. The Troubled Company Reporter - Asiat Pacific on August 28, 2006, cited a report from the Philippine Daily Inquirer, which said that Philippine Airlines reported an April-June 2006 net income of US$22.7 million, down 17% from the US$27.5 million reported in the same quarter of 2005, with increased fuel and maintenance costs. PHILIPPINE LONG DISTANCE: S&P Affirms BB+ For. Currency Rating -------------------------------------------------------------- Standard & Poor's Ratings Services affirms its 'BB+' foreign currency rating on Philippine Long Distance Telephone Co. The outlook is stable. At the same time, the rating on PLDT's existing series III preferred stock has been withdrawn as the preferred stocks have been fully converted into common equity. The rating on PLDT, a major telecommunications operator in the Philippines, reflects its leading market position and improving financial profile. Nevertheless, these strengths are offset by declining domestic subscriber growth and high price competition. PLDT's total debt as at June 30, 2006, declined 47% to PHP101 billion (US$1.9 billion) from PHP196 billion in fiscal 2003. As a result, cash flow protection measures have continued to improve, as reflected in the annualized funds from operation (FFO) to total debt of 61% as at June 30, 2006, compared with its three-year (2003-2005) average of 34%. "The ratio (FFO to total debt) is expected to remain above 50% as the growth in cash flow from wireless services is likely to remain solid and cash flow from its fixed-line services remains stable," Standard & Poor's credit analyst Yasmin Wirjawan, says. "However, new subscriber growth in the Philippine wireless market has subsided, as wireless penetration reached 44% as at June 30, 2006," Ms. Wirjawan notes. Future growth is expected to come from the mass-market segments, particularly those in the outskirts of Manila. PLDT's liquidity is strong. At June 30, 2006, the company had PHP26 billion in cash, more than enough to cover PHP19 billion of debt due in one year. In addition, the company has about equivalent to PHP5 billion in committed credit facilities. The stable outlook reflects the company's dominant market position, stronger credit measures and expected sustainable free cash flow position. An upward revision of the Transfer and Convertibility Risk Assessment for the Philippines (foreign currency BB-/Stable/B, local currency BB+/Stable/B) will be needed before an upgrade of PLDT's foreign currency ratings may be considered. Conversely, any downward movement of the sovereign rating could prompt a reduction in the T&C Risk Assessment or deterioration in country risk factors, which in turn could result in downgrade of the rating on the company. The outlook or rating on PLDT could be negatively affected if heightened competition affects the company's market position significantly. In addition, they will also be pressured if its shareholders return initiatives, like significant dividend payouts or additional significant debt-funded investments, worsen its current financial metrics, including FFO to debt dropping below 35%. RIZAL COMMERCIAL BANKING: Appoints and Promotes New Officers ------------------------------------------------------------ On August 29, 2006, Rizal Commercial Banking Corporation advised The Philippine Stock Exchange, Inc., that it has: (a) appointed two officers, noting that these officers do not have shareholding in the bank: 1. Manuel G. Ahyong, Jr., as Senior Vice President/Wealth Segment Head; and 2. Marcel E. Ayes as Senior Vice President/Global Distribution & Advisory Division Head; and (b) promoted Lope M. Fernandez, Jr., as Senior Vice President/Seconded as President of RCBC Savings Bank retroactive July 1, 2006. The bank also advised that in connection with its Board of Directors and stockholders' approval of the amendment to the bank's Articles of Incorporation, the Securities and Exchange Commission: "approved the amendment of Article Seventh of RCBC's Amended Articles of Incorporation allowing the issuance of preferred shares either in Philippine Peso or US Dollar as evidenced by the attached SEC Certificate dated August 25, 2006." About RCBC Rizal Commercial Banking Corporation -- http://www.rcbc.com/-- is a universal bank principally engaged in all aspects of banking. It provides services such as deposit products, loans and trade finance, domestic and foreign fund transfers, treasury, foreign exchange and trust services. In addition, the Bank is licensed to enter into forward currency contracts to service its customers and as a means of reducing and managing the Bank's foreign exchange exposure. * * * Moody's Investors Service gave Rizal Commercial Banking a 'Ba3' Long-Term Bank Deposit Rating effective May 25, 2006. ================= S I N G A P O R E ================= DEWHURST PTE: Creditors Must Submit Proofs of Debt by Sept. 25 -------------------------------------------------------------- Liquidator Lau Chin Huat requires the creditors of Dewhurst Pte Ltd to submit their proofs of debt by September 25, 2006. Failure to comply with the requirement will exclude a creditor from sharing in the company's distribution of dividend. Mr. Lau can be reached at: Lau Chin Huat c/o 6 Shenton Way #32-00 DBS Building Tower Two Singapore 068809 FLEXTRONICS INTERNATIONAL: To Pick Minority Stake in SEZ Scheme --------------------------------------------------------------- Flextronics International Ltd will take a minority stake in the SemIndia's proposed chip manufacturing facility near Hyderabad for US$100 million According to the report apart from Flextronics, Advanced Micro Devices is also planning to invest about US$500 million in SemIndia's Special Economic Zone "SEZ Scheme". SEZ Scheme, which will manufacture silicon chips, will need a total investment of approximately US$3 billion. Around US$1 billion will come through equity and the rest through debt. Besides equity, Advaced Micro Devices will also provide technology to SemIndia for the manufacturing facility. About Flextronics International Headquartered in Singapore, Flextronics International Ltd. -- http://www.flextronics.com/-- provides electronics manufacturing services through a network of facilities in over 30 countries worldwide. Its global locations include operations in Brazil and Mexico. * * * Moody's Investors Service assigned a Ba2 rating to Flextronics International Ltd.'s new US$500 million 6.25% senior subordinated notes, due 2014. At the same time, the company was assigned a liquidity rating of SGL-1, reflecting Flextronics' significant on-hand liquidity, unfettered access to the sizeable US$1.1 billion revolver and the expectation for generating moderately positive free cash flow (pre-Nortel payments) over the next twelve months. Standard & Poor's Ratings Services assigned its 'BB-' rating to Flextronics' private offering of US$500 million, senior subordinated notes due 2014. The notes were offered under Rule 144A, with registration rights. Proceeds of the offering will be used to repay outstanding debt under its revolving credit facilities and for general corporate purposes. The company's 'BB+/Stable/--' corporate credit rating was affirmed. LESCOSING PTE: Pays Third and Final Dividend -------------------------------------------- Lescosing Pte Ltd has paid its third and final dividend to creditors on August 28, 2006. Liquidators paid 7.625 cents to a dollar on all admitted claims. The liquidators can be reached at: c/o PricewaterhouseCoopers 8 Cross Street #17-00 PWC Building Singapore 048424 LKN-PRIMEFIELD: Uses SGD4M from Rights Issue to Repay Debt ---------------------------------------------------------- LKN-Primefield Limited disclosed on July 4, 2006, that the company has raised net proceeds of approximately SGD134.8 million after deducting estimated expenses of approximately SGD0.6 million from the Rights Issue. In addition, the company announced on June 20, 2006, that the the HEM Disposal was completed on June 20, 2006, and SGD15.2 million out of the net sale proceeds of SGD16.2 million is to be applied towards the redemption of the Existing Bonds. The company intends to use SGD115.9 million out of the SGD134.8 million net proceeds from the Rights Issue to redeem the balance of approximately SGD115.9 million in principal amount of Existing Bonds and the balance of approximately SGD18.9 million of the net proceeds for working capital purposes of the Group In and update on August 29, 2006, the company said it had utilized approximately SGD4.8 million from the balance net proceeds of the Rights Issue amounting to approximately SGD18.9 million to increase the paid-up capital of Augustland Sdn Bhd -- a wholly owned subsidiary of the company. The proceeds from the increase in the paid-up capital of Augustland together with the internal funds from Augustland were used to repay in full a bank loan of approximately MYR11.77 million -- equivalent to approximately S$5.05 million -- owed by Augustland. About LKN - Primefield Ltd LKN-Primefield Ltd is a Singapore-based company involved in investment holding and investing in property for rental. Through a number of subsidiaries, the company is engaged in building and civil engineering construction; the construction of crude oil tanks and piping systems; commercial and home repair works and the provision of related maintenance services; property development, investment and management; property rental; the operation of hotels and restaurants, and the provision of hotel management and consultancy. LKN is also involved in the manufacture, retail sale, distribution, import and export of computer hardware (including computer peripherals) and software, and the development of multimedia transactional payphone kiosks. In addition, it is an ESDN (electronic service delivery network) provider that owns and operates a large network of public broadband transactional terminals. The company's operations are mainly concentrated in Singapore, China and Indonesia. * * * On November 29, 2004, LKN-Primefield and certain of its subsidiaries entered into a debt restructuring plan with the company's bondholders. HSBC Trustee (Singapore) Ltd. acted as the trustee for the bondholders; KPMG Business Advisory Pte. Ltd. acted as New Restructuring Agent/Independent Special Consultant/Paying Agent. SEA KING: High Court to Hear Wind-Up Petition on September 8 ------------------------------------------------------------ On August 16, 2006, Marine Harvest Singapore Pte Ltd has filed an application to wind up Sea King Manufacturer Pte Ltd. The High Court of Singapore will hear the wind-up petition on September 8, 2006, at 10:00 a.m. The solicitors for the applicant can be reached at: Shook Lin & Bok 1 Robinson Road #18-00, AIA Tower Singapore 048542 =============== T H A I L A N D =============== BANK OF AYUDHYA: Acquires JPMorgan's 38.34% Stake in AJF Asset -------------------------------------------------------------- Bank of Ayudhya has acquired an additional 38.34% shareholding in AJF Asset Management from the JPMorgan group, making BAY the biggest shareholder of AJF, with a 76.67% stake, or 1,149,997 shares, the Bangkok Post reports. According to a statement filed with the Stock Exchange of Thailand on August 30, 2006, Bank of Ayudhya disclosed that it had spent THB10 million to acquire new shares from JPMorgan, which doubled its stake in AJF from 38.33% to 76.67%. Moreover, remaining shares in AJF are owned by the bank's associated companies - Ayudhya Securities Plc, Ayudhya Insurance Plc and Ayudhya Allianz CP Life Plc, The Nation relates. The Nation also notes that JPMorgan now has only one business remaining in Thailand, JPMorgan Securities (Thailand). The paper recounts that in 2001, it divested its holding in JF Thanakom to Bangkok Bank. Bank of Ayudhya said that it is committed to a long-term investment in AJF. It also said the purchase was not subject to rules related to acquisitions and disposition of assets or connected transactions, the Post relates. The bank also said its increased shareholding in AJF is consistent with its strategy of moving to a universal banking model where it can offer a complete range of financial services to its customers. In late 2003, Bank of Ayudhya came to the rescue of AJF after it faced a run of THB4 billion in redemptions from fixed-income funds, The Nation recounts. Then last year, AJF was one of several asset management firms that fell victim to delayed payment by embattled Picnic Corp on its bills of exchange. Based on the recent filing of AJF, the company posted an unaudited second-quarter 2006 net loss of THBB273.3-million, compared to a THB85.96-million profit in the same quarter a year ago. The mutual fund firm now manages THB29.87 billion in assets, representing 3.26% of the country's combined assets under mutual fund management. * * * Headquartered in Bangkok, Thailand, Bank of Ayudhya Public Co. Ltd. -- http://www.krungsri.com/-- provides a full range of banking and financial services. The bank offers corporate and personal lending, retail and wholesale banking; international trade financing asset management; and investment banking services to customers through its branches. It has branches in Hong Kong, Vietnam, Laos, and the Cayman Islands. Moody's Investors Service gave Bank of Ayudha an E+ bank financial strength rating. Fitch Ratings gave the bank a 'BB+' Long-Term Foreign Currency Issuer Default Rating, a 'B' Short-Term Foreign Currency Rating, a 'BB' Foreign Currency Subordinated Debt Rating, and a 'D' Individual Rating. * Large Companies With Insolvent Balance Sheets ----------------------------------------------- Total Total Shareholders Assets Equity Company Ticker ($MM) ($MM) ------ ------ ------ ------------ AUSTRALIA Acma Engineering & Const. Group Limited ACX 21.39 -2.24 Allstate Explorations NL ALX 12.65 -51.62 Austar United Communications Ltd. AUN 231.54 -52.58 Global Wine Ventures Limited GWV 22.04 -0.84 Hutchison Telecommunications (Aust) Ltd. HTA 1696.65 -786.31 Indophil Resources NL IRN 37.79 -69.96 Intellect Holdings Limited IHG 23.98 -11.13 Namberry Limited NMB 15.12 -4.26 Orbital Corporation Limited OEC 14.01 -4.86 RMG Limited RMG 22.33 -2.16 Stadium Australia Group SAX 135.23 -41.84 Tooth & Company Limited TTH 99.25 -74.39 Tourism, Hotels & Leisure Ltd. TLC 15.76 -0.66 CHINA AND HONG KONG Artel Solutions Group Holdings Limited 931 29.19 -18.65 Asia Telemedia Limited 376 10.89 -5.50 Anhui Feicai Vehicle Co. Ltd. 887 129.80 -7.00 Bestway International 718 25.00 -0.67 Chang Ling Group 561 77.48 -76.83 Chengdu Book - A 600083 21.50 -3.07 China Liaoning International Cooperation Holdings Ltd. 638 25.79 -43.45 China Kejian Co. Ltd. 35 54.71 -179.23 Datasys Technology Holdings 8057 14.10 -2.07 Eforce Holdings Limited 943 10.31 -0.51 Everpride Biopharmaceutical Company Limited 8019 10.16 -2.16 Fujian Changyuan Investment Holdings Limited 592 31.36 -54.04 Gold-Face Holdings Limited 396 40.60 -63.11 Guangdong Meiya Group Company Ltd. 529 107.16 -49.54 Guangdong Sunrise Group Company Ltd-A 30 35.98 -182.94 Guangdong Sunrise Group Co. Ltd-B 200030 35.98 -182.94 Guangxi Wuzhou Zhongheng Group Co Ltd. 557 62.19 -115.50 Hainan Dadonghai Tourism 613 19.74 -5.81 Hainan Dadongh-B 200613 19.74 -5.81 Hainan Overseas Chinese Investment Co. Ltd. 600759 32.70 -15.28 Hans Energy Company Limited 554 94.75 -10.76 Heilong Jiang Long Di Co. Ltd. 832 134.62 -61.22 Heilongjiang Sun & Field Science & Tech. 620 29.96 -49.18 Heilongjiang Black Dragon Co. Ltd. 600187 121.30 -74.45 Hualing Holdings Limited 382 242.26 -28.15 Huda Technology & Education Development Co. Ltd. 600892 17.29 -0.19 Hunan Anplas Co., Ltd. 156 94.17 -65.04 Hunan GuoGuang Ceramic Co., Ltd. 600286 87.44 -68.55 Innovo Leisure Recreation Holdings Ltd. 703 13.68 -2.01 Jiangsu Chinese.com Co. Ltd. 805 15.86 -34.56 Jiangxi Paper Industry Co. Ltd 600053 19.58 -12.80 Loulan Holdings Limited 8039 13.01 -1.04 Magnum International Holdings Limited 305 10.35 -5.83 Mindong Electric Group Co., Ltd. 536 21.63 -1.50 New City (Beijing) Development Limited 456 151.61 -19.15 New World Mobile Holdings Ltd 862 215.47 -126.57 Orient Power Holdings Ltd. 615 176.86 -64.20 Plus Holdings Ltd 1013 24.00 -3.15 Prosperity International Holdings (HK) Limited 8139 10.73 -2.45 Shandong Jintai Group Co. Ltd. 600385 19.58 -12.18 Shanghai Xingye Housing Company Ltd 600603 14.90 -72.98 Shenyang Hejin Holding Company Ltd. 633 83.18 -20.87 Shenz China Bi-A 17 39.13 -224.64 Shenz China Bi-B 17 39.13 -224.64 Shenzhen Dawncom Business Tech And Service Co., Ltd 863 79.84 -37.30 Shenzhen Shenxin Taifeng Group Co. Ltd. 34 95.27 -44.65 Shenzen Techo Telecom Co., Ltd. 555 14.84 -6.25 Sichuan Changjiang Packaging Holding Co. Ltd. 600137 13.11 -72.76 Sichuan Topsoft Investment Company Limited 583 113.12 -148.61 SMI Publishing Group Ltd. 8010 10.48 -7.83 Songliao Automobile Co. Ltd. 600715 49.56 -3.76 Sun's Group Manufacturing Company Limited 988 103.02 -72.80 Taiyuan Tianlong Group Co. Ltd 600234 13.47 -87.63 Theme International Holdings Limited 990 22.46 -0.77 UDL Holdings Limited 620 12.48 -7.15 Wealthmark International (Holdings) Limited 39 11.32 -2.43 Winowner Group Co. Ltd. 600681 38.03 -62.88 Xinjiang Hops Co. Ltd 600090 101.34 -135.99 Yantai Hualian Development Group Co. Ltd. 600766 59.99 -7.66 Yueyang Hengli Air-Cooling Equipment Inc. 622 49.89 -17.71 Zarva Technology Co. Ltd. 688 101.76 -102.01 INDIA PT Dharmala Intiland DILD 197.91 -6.62 INDONESIA Ades Waters Indonesia Tbk ADES 21.35 -8.93 Bukaka Teknik Utama Tbk BUKK 44.45 -107.00 Hotel Sahid Jaya SHID 71.05 -4.26 Jakarta Kyoei Ste JKSW 44.72 -38.57 Mulialand Tbk MLND 160.45 -19.82 Multibreeder Adirama Indonesia MBAI 64.54 -2.31 Pakuwon Jati Tbk PWON 188.41 -50.78 Panca Wiratama Sakti Tbk PWSI 39.72 -18.82 PT Steady Safe SAFE 19.65 -2.43 PT Toba Pulp Lestrari Tbk INRU 403.58 -198.86 PT Unitex Tbk UNTX 29.08 -5.87 PT Voksel Electric Tbk VOKS 44.01 -11.74 PT Wicaksana Overseas International Tbk WICO 84.36 -32.88 Sekar Bumi Tbk SKBM 23.07 -41.95 Steady Safe Tbk SAFE 19.65 -2.43 Suba Indah Tbk SUBA 85.17 -9.18 Surya Dumai Industri Tbk SUDI 105.06 -30.49 Unitex Tbk UNTX 29.08 -5.87 JAPAN Hanaten Co., Ltd. 9870 167.79 -1.63 Mamiya-OP Co., Ltd. 7991 152.37 -67.11 Montecarlo Co. Ltd. 7569 66.29 -3.05 Nihon Seimitsu Sokki Co., Ltd. 7771 23.82 -1.10 Sumiya Co., Ltd. 9939 89.32 -11.57 Tenryu Lumber Co., Ltd. 7904 187.75 -44.48 Tokai Aluminum Foil Co., Ltd. 5756 106.49 -12.55 Yakinikuya Sakai Co., Ltd. 7622 79.44 -11.14 MALAYSIA Antah Holdings Bhd ANT 241.10 -39.36 Ark Resources Berhad ARK 25.91 -28.35 CHG Industries Bhd CHG 25.95 -41.38 Cygal Bhd CYG 58.47 -69.79 Comsa Farms Bhd CFB 63.60 -5.00 Consolidated Farms Berhad CFARM 36.32 -17.21 Emico Holdings Bhd EMI 42.56 -1.92 Jin Lin Wood Industries Berhad JLW 21.68 -1.74 Kig Glass Industrial Berhad KIG 15.76 -24.61 Lankhorst Bhd LKHT 25.91 -28.35 Mentiga Corporation Berhad MENT 22.13 -18.25 Metroplex Bhd MEX 323.51 -49.28 Mycom Bhd MYC 227.68 -114.64 Lityan Holdings Bhd LIT 22.22 -19.11 Olympia Industries Bhd OLYM 255.84 -227.85 Panglobal Bhd PGL 189.92 -50.36 Park May Bhd PMY 11.04 -13.58 PSC Industries Bhd PSC 62.80 -116.18 Polymate Holdings Bhd PYMT 64.73 -7.28 Setegap Berhad STG 19.92 -26.88 Tru-Tech Holdings Berhad TRU 15.86 -16.71 Wembley Industries Holdings Bhd WMY 111.72 -204.61 PHILIPPINES APC Group Inc. APC 67.04 -163.14 Atlas Consolidated Mining and Development Corp. AT 33.59 -57.17 Cyber Bay Corporation CYBR 11.54 -58.06 East Asia Power Resources Corp. PWR 92.55 -64.61 Fil-Estate Corporation FC 33.30 -5.80 Filsyn Corporation FYN 19.20 -8.83 Filsyn Corporation FYNB 19.20 -8.83 Global Equities Inc. GEI 24.18 -1.81 Gotesco Land, Inc. GO 17.34 -9.59 Gotesco Land, Inc. GOB 17.34 -9.59 Prime Media Holdings Inc. PRIM 11.12 -15.52 Prime Orion Philippines Inc. POPI 98.36 -74.34 Swift Foods Inc. SFI 26.95 -8.23 Unioil Resources & Holdings Company Inc. UNI 10.64 -9.86 United Paragon Mining Corp. UPM 21.19 -21.52 Universal Rightfield Property Holdings Inc. UP 45.12 -13.48 Uniwide Holdings Inc. UW 61.45 -30.31 Victorias Milling Company Inc. VMC 127.83 -32.21 Vitarich Corporation VITA 75.04 -4.27 SINGAPORE ADV Systems Auto ASA 14.32 -8.54 China Aviation Oil (Singapore) Corporation CAO 211.96 -390.07 Compact Metal Industries Ltd. CMI 54.36 -25.64 Digiland Intl. DIGI 31.32 -11.94 Falmac Limited FAL 10.90 -0.73 Gul Technologies Singapore Limited GUL 152.80 -27.74 Informatics Holdings Ltd INFO 22.30 -9.14 L&M Group of Companies LNM 56.91 -10.59 Liang Huat Aluminium Ltd. LHA 19.30 -76.43 Lindeteves-Jacoberg Limited LJ 225.52 -53.23 LKN-Primefield Limited LKN 150.70 -12.72 Mae Engineering Ltd MAE 11.42 -7.79 PDC Corporation Limited PDC 0.72 -12.07 Pacific Century Regional PAC 1381.26 -107.11 See Hup Seng Ltd. SHS 17.36 -0.09 SOUTH KOREA BHK Inc 3990 24.36 -17.38 C & C Enterprise Co. Ltd. 38420 28.05 -14.50 Cenicone Co. Ltd. 56060 36.82 -1.46 Cheil Entech Co. Ltd. 53330 37.25 -0.31 Dewell Elecom Inc. 32590 10.93 -6.92 Everex Inc. 47600 23.15 -5.10 EG Greentech Co. 55250 186.00 -1.50 EG Semicon Co. Ltd. 38720 166.70 -12.34 Inno Metal Inc. 70080 25.61 -1.41 KP&L Company Limited 9810 15.03 -3.81 Radix Co. Ltd. 16160 53.78 -17.69 Quality & Tech 15260 32.33 -1.14 Shinil Industrial Co., Ltd. 2700 41.51 -3.44 SungKwang Co., Ltd. 41140 19.06 -1.60 Tong Yang Major 1520 2332.81 -86.95 TriGem Computer Inc 14900 629.32 -292.96 THAILAND Bangkok Rubber PCL BRC 70.19 -56.98 Bangkok Rubber PCL BRC/F 70.19 -56.98 Central Paper Industry PCL CPICO 40.41 -37.02 Central Paper Industry PCL CPICO/F 40.41 -37.02 Circuit Electronic Industries PCL CIRKIT 20.37 -64.80 Circuit Electronic Industries PCL CIRKIT/F 20.37 -64.80 Daidomon Group Pcl DAIDO 12.92 -8.51 Daidomon Group Pcl DAIDO/F 12.92 -8.51 Datamat PCL DTM 17.55 -1.72 Datamat PCL DTM/F 17.55 -1.72 Diana Department Store Pcl DIANA 12.71 -1.71 Diana Department Store Pcl DIANA/F 12.71 -1.71 Everland Public Company Ltd EVER 56.71 -311.47 Everland Public Company Ltd EVER/F 39.12 -12.05 Hantex PCl HTX 7.51 -7.88 Hantex PCl HTX/F 7.51 -7.88 Kuang Pei San Food Products Public Co. POMPUI 12.51 -9.87 Sahamitr Pressure Container Public Co. Ltd. SMPC 20.77 -28.13 Sri Thai Food & Beverage Public Company Ltd SRI 18.29 -43.37 Sri Thai Food -F SRI/F 18.29 -43.37 Tanayong PCL TYONG 178.27 -734.30 Tanayong PCL -F TYONG/F 178.27 -734.30 Thai-Denmark PCL DMARK 21.37 -18.88 Thai-Denmark -F DMARK/F 21.37 -18.88 Thai-Wah PCL TWC 91.56 -41.24 Thai-Wah PCL -F TWC/F 91.56 -41.24 ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Asia Pacific is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Catherine Gutib, Valerie Udtuhan, Francis Chicano, 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 ***