/raid1/www/Hosts/bankrupt/TCRAP_Public/060904.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
Monday, September 4, 2006, Vol. 9, No. 175
Headlines
A U S T R A L I A & N E W Z E A L A N D
ADSTEAM MARINE: Svitzerwijsmuller to Consider Options
ANDERSON CINEMA: Director Sentenced Over AU$530,000 Fraud
AZTAR PTY: Creditors' Proofs of Debt Due on September 7
BATHROOM KINGDOM: Supreme Court Issues Wind-Up Order
BEIGABE PTY: Appoints Receivers and Managers
BRINDABELLA BATHROOMS: Placed Under Voluntary Liquidation
BUNDEENA SPORTING: Creditors Resolve to Close Business
BURNS PHILP: Forms Committee to Evaluate Rank Group's Offer
CARLING INDUSTRIES: Enters Wind-Up Proceedings
CARR COMPANIES: Court Approves ASIC Wind Up Application
CUTRI PTY: Liquidator Rinaldi to Present Wind-Up Report
DIOSTA PTY: Inability to Pay Debts Prompts Wind-Up
DUNCAN BRICKPAVING: Final Meeting Slated for September 25
ERATEX PTY: Supreme Court Orders Wind Up
FOOD-SHARE AUSTRALIA: To Declare First and Final Dividend
FRUITOLOGIST PTY: Creditors' Final Meeting Set on September 22
GOURMEX ENTERPRISES: Creditors Appoint Official Liquidators
HELLO CLEANING: Members and Creditors to Receive Wind-Up Report
HOUSE & GIFT: Members Opt to Shut Down Firm
JAYTEE MANUFACTURING: Undergoes Voluntary Liquidation
KINGSTON LABOUR: Names Newman and White as Liquidators
LOGEC SYSTEMS: Liquidator Crisp to Present Wind-Up Report
MULTIPLEX GROUP: Provides Wembley Project Update
NATIONWIDE NATIONAL: Federal Court Appoints Palmer as Liquidator
NOELFAYE PTY: Members Pass Resolution to Wind Up Firm
NRG SCAFFOLDING: Creditors' Proofs of Debt Due on September 20
P.B.M. PTY: Commences Wind-Up Proceedings
QURESHI & ASSOCIATION: Appoints Watson as Official Liquidator
SAFE EFFECT: To Declare First and Final Dividend on September 22
STEELFARM ARMIDALE: Faces Liquidation Proceedings
TABLAP PTY: Members' Final Meeting Scheduled on September 22
TEAM CORP: Receiver Steps Aside
TRACKWOOD PTY: To Declare Final Dividend on September 19
VISION PROPERTY: Members Agree to Shut Down Business
XERIUM TECHNOLOGIES: Adopts Personal Stock Trading Plan
XERIUM TECHNOLOGIES: Japan Subsidiary Acquires PMA Shoji Assets
C H I N A & H O N G K O N G
BOVILLE INDUSTRIAL: Appoints Yan and Haughey as Liquidators
BRILLIANT CHOICE: Faces Wind-Up Proceedings
DATON SECURITIES: CSRC Bans Ops on Failure to Meet Requirements
GOLD PLEASURE: Provisional Liquidators Named
GREAT WALL: Court Issues Wind-Up Order
HOMEFIELD INTERNATIONAL: Liquidator Steps Aside
HO CHEUNG: Court Favors Wind-Up
IAC BANK: Regulation Conflicts Delay IPO
LOLLY QUEEN: Court Issues Wind-Up Order
MO & COMPANY: Prepares to Pay Dividend to Creditors
SOUTHERN WISE: Liquidator Ceases to Act for Company
SUNVILLE INVESTMENT: Names Provisional Liquidators
TAI ON ELECTRIC: To Wind-Up Operations
TOPVILLE INDUSTRIAL: Names Yan and Haughey as Joint Liquidators
YI ALLIANCE: Appoints Joint and Several Liquidators
YUE FUNG: Court to Hear Wind-up Bid on September 27
I N D I A
FORD MOTOR: Eyes Sale of Luxury Auto Brands to Investment Group
FORD MOTOR: Appeals Court Upholds Class in Suit Over Minivans
INDIAN OIL: ICRA Reaffirms LAAA /A1+ Ratings on NCD/STD Programs
SILICON GRAPHICS: LGE Wants Stay Lifted to Pursue Court Action
SILICON GRAPHICS: Seeks Entry Into Backstop Agreements
SILICON GRAPHICS: Gets Okay to File Plan Supplements Under Seal
I N D O N E S I A
BANK INTERNASIONAL: Government to Sell Stake
BANK TABUNGAN: Net Incomes Narrows to IDR151 Billion
INDAH KIAT: Posts US$41-Million Net Loss Despite Higher Sales
INTERNATIONAL NICKEL: Sales and Net Earnings Trimmed Down in Q2
J A P A N
SONY BANK: S&P Assigns C Fundamental Strength Rating
KANSAI URBAN: Moody's Assigns 'D' Financial Strength Rating
XM SATELLITE: FCC Grants New Certification for XM Radios
K O R E A
KOREA DEVELOPMENT: Posts Highest Capital Ratio Among All Banks
LG CARD: Shinhan Commences Four-Week Due Diligence Exercise
* Banks' Bad Loan Ratio Falls to Lowest Level in 7 Years
M A L A Y S I A
AYER HITAM: Securities Commission Junks Restructuring Appeal
CHASE PERDANA: Second Quarter Loss Narrows to MYR0.9 Million
LITYAN HOLDINGS: Books MYR7.58-Mil. Net Loss in Second Quarter
PAN MALAYSIAN: Accepts Unsecured Loan from Unit
PILECON ENGINEERING: 2nd Quarter Pre-tax Loss Shrinks to MYR0.7M
PROTON HOLDINGS: Subscribes Shares in Subsidiary
TENCO BERHAD: June 30 Balance Sheet Shows Strained Liquidity
TRU-TECH HOLDINGS: Second Quarter Net Loss Widens to MYR3.37M
UNITED BINTANG: Second Quarter Pre-Tax Loss Drops 34.36%
M O N G O L I A
* Fitch Affirms Mongolia's 'B+' Sovereign Rating
P H I L I P P I N E S
ATLAS CONSOLIDATED: Posts PHP233-Mln Net Loss in 2nd Half 2006
EPIXTAR CORP: Exclusive Plan Filing Deadline Extended to Oct. 1
EQUITABLE PCI: EBC Investments Accepts Sy Family's Tender Offer
METROPOLITAN BANK: Declares PHP980-Million Cash Dividend
METROPOLITAN BANK: Extends PHP3-Bln Term Loan Facility to Globe
METROPOLITAN BANK: Lends PHP5 Bln to Smart for Network Upgrade
PHILIPPINE AIRLINES: To Upgrade Services; Expects Lower Profit
PHILIPPINE NATIONAL BANK: Signs Trust Agreement with AMOSUP
UNION BANK: SEC Approves Merger with International Exchange Bank
* Philippine Gov't Fiscal Gains to Propel Economic Growth
* Central Bank Sees Sustained Peso Strength
S I N G A P O R E
EPL LTD: Creditors' Proofs of Claim Due on September 25
GETRONICS NV: Inks Deal with Banks to Fully Access EUR284 Mil.
JAPAN TRAVEL: Creditors' Proofs of Debt Due on September 25
MICHAEL DE KRETSER: Court to Hear Wind-Up Petition on Sept. 15
SUM YUE: Faces Wind-Up Proceedings
T H A I L A N D
BANGKOK STEEL: Posts THB654.70-Mil Net Loss in First Half 2006
THAI PROPERTY: SET Posts SP Sign for Failure to Submit Report
TMB BANK: S&P Affirms Bank's Ratings After Recapitalization
TMB BANK: Fitch Affirms BB+ Rating after Share Issuance
- - - - - - - -
============================================
A U S T R A L I A & N E W Z E A L A N D
============================================
ADSTEAM MARINE: Svitzerwijsmuller to Consider Options
-----------------------------------------------------
The United Kingdom Office of Fair Trading will refer to the UK
Competition Commission the proposed acquisition of Adsteam
Marine Ltd by SvitzerWijsmuller.
According to an Adsteam press release, SvitzerWijsmuller's offer
to acquire Adsteam is conditional on the proposed acquisition
not being referred to the UK Competition Commission.
SvitzerWijsmuller has advised that it is considering its options
and the implications for its takeover offer for Adsteam.
Adsteam expects to hear further from Svitzerwijsmuller in the
short term. When this advice is received, Directors will make a
further recommendation to Adsteam shareholders.
In its Bidder's Statement, SvitzerWijsmuller stated that it
would either allow the offer to lapse if the OFT decides to
refer the matter to the Competition Commission or alternatively
that if it considers that it is in its best interests to do so,
it reserves the right to waive the United Kingdom Competition
approval condition and proceed with a review by the Competition
Commission (if a referral occurs) and accordingly to extend the
Offer Period as it sees fit in compliance with the Corporations
Act.
Adsteam continues to operate as an ASX-listed entity providing
ship assist services in the key markets of Australia and the UK.
During the offer the Company has continued to run on a
"business as usual" basis.
Adsteam remains a strong, well-managed business. A detailed
update on the business plan strategies, current trading
conditions, and earnings outlook will be provided at the Adsteam
Annual General Meeting on November 7, 2006.
* * *
SvitzerWijsmuller -- http://www.svitzerwijsmuller.com/-- is a
major global towage and salvage company headquartered in
Copenhagen, Denmark with activities in 35 countries within
harbour towage, terminal towage, salvage, emergency response and
rescue, ocean towage and crew boat operations.
SvitzerWijsmuller is a subsidiary of A.P. Moller - Maersk A/S.
Last year, SvitzerWijsmuller had a turnover of US$355 million
and it employs approximately 2,500 people.
About Adsteam
Headquartered in New South Wales, Australia, Australia Adsteam
Marine Ltd -- http://www.adsteam.com.au/-- currently has a
fleet of more than 200 vessels and also offers other maritime
services such as a shipping agency, fuel distribution and
salvage.
The Company had undertaken steps in a plan to divest non-core
businesses since May 2003 as part of its business transformation
program and has raised money to support its rescue plan designed
to trim down debts and repay borrowings. Adsteam's debt was
estimated to be AU$360 million. As of June 30, 2005, the
Company reported an "improved balance sheet" as it was able to
reduce its debt to AU$302 million, achieved through the sale of
non-core assets, improved earnings, improved debtor management
and a tight dividend policy.
ANDERSON CINEMA: Director Sentenced Over AU$530,000 Fraud
---------------------------------------------------------
On August 31, 2006, former Anderson Cinema Group director,
Stephen Michael Anderson, has been sentenced to two years
imprisonment in relation to two charges brought by the
Australian Securities and Investments Commission.
Mr. Anderson pleaded guilty in the Victorian County Court to one
count of obtaining a financial advantage by deception involving
AU$530,000 and one count of false accounting. He was sentenced
on each count to two years imprisonment with 18 months fully
suspended to be served concurrently.
The sentence follows an investigation by the ASIC into Mr.
Anderson's involvement in a cinema formerly operated by the
Anderson Cinema Group in Sunbury, Victoria. The investigation
found that Mr. Anderson had obtained a false invoice, which he
used to obtain a AU$530,000 loan from the owner of the shopping
center where the cinema was located.
The ASIC alleged that the loan was provided upon receipt of the
invoice on the understanding that the shopping center owner held
security over various fixtures and fittings within the cinema.
However, Mr. Anderson had already provided these fixtures and
fittings to the ANZ Bank as security for loans it had made to
the Anderson Cinema Group.
The Commonwealth Director of Public Prosecutions prosecuted the
matter.
The Troubled Company Reporter - Asia Pacific reported on
June 28, 2005, that the Anderson Group was put into receivership
in March 2005 and several key assets have been sold to other
operators.
AZTAR PTY: Creditors' Proofs of Debt Due on September 7
-------------------------------------------------------
Aztar Pty Ltd will declare dividend to creditors on Sept. 11,
2006.
In this regard, creditors are required to submit proofs of debt
by Sept 7, 2006, for them to share in the dividend distribution.
The liquidator can be reached at:
Raj Khatri
Worrells Solvency & Forensic Accountants
8th Floor, 102 Adelaide Street
Brisbane, Queensland 4000
Australia
Telephone:(07) 3225 4312
Facsimile:(07) 3225 4311
Web site: http://www.worrells.net.au/
BATHROOM KINGDOM: Supreme Court Issues Wind-Up Order
----------------------------------------------------
The Supreme Court of New South Wales released on August 10,
2006, an order for the wind-up of Bathroom Kingdom Pty Ltd's
operations.
The Court also directed the appointment of Steven Nicols as
liquidator.
The Liquidator can be reached at:
Steven Nicols
Level 2, 350 Kent Street
Sydney, New South Wales 2000
Australia
BEIGABE PTY: Appoints Receivers and Managers
--------------------------------------------
On August 18, 2006, Mathew Campbell Muldoon and Kenneth Stewart
Sellers were appointed as receivers and managers of Beigabe Pty
Ltd.
The Receivers and Managers can be reached at:
Mathew Campbell Muldoon
Kenneth Stewart Sellers
SimsPartners
Chartered Accountants
Level 2, 446 Collins Street
Melbourne, Victoria 3000
Australia
BRINDABELLA BATHROOMS: Placed Under Voluntary Liquidation
---------------------------------------------------------
At a general meeting held on August 11, 2006, the members of
Brindabella Bathrooms Pty Limited agreed to voluntarily
liquidate the company's business and appoint Schon G. Condon and
Bruce Gleeson as joint liquidators.
The Joint Liquidators can be reached at:
Schon G. Condon
Bruce Gleeson
Jones Condon Chartered Accountants
Level 1, 34 Charles Street
Parramatta, New South Wales
Australia
Telephone:(02) 9893 9499
BUNDEENA SPORTING: Creditors Resolve to Close Business
------------------------------------------------------
Creditors of Bundeena Sporting Adventures Pty convened on
August 10, 2006, and decided to:
-- pass a resolution terminating the company's deed of
arrangement;
-- wind up the company's operations; and
-- appoint Peter George Yates and David John Frank Lombe as
joint and several liquidators.
The Joint and Several Liquidators can be reached at:
Peter George Yates
David John Frank Lombe
Deloitte
Level 3, 225 George Street
Sydney, New South Wales 2000
Australia
BURNS PHILP: Forms Committee to Evaluate Rank Group's Offer
-----------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
August 28, 2006, Burns Philp & Company Limited disclosed that a
letter from the Company's major shareholder, Rank Group Limited,
proposed to make an offer for all the shares of the Company that
it does not currently hold.
The TCR-AP said that the determination of value is assisted by
virtue of Burns Philp's assets primarily comprising cash and
Goodman Fielder shares. The offer price has been calculated at
AU$1.10 per share having regard to the underlying net assets of
the company.
In an announcement to the Australian Stock Exchange Limited,
Burns Philp advises that to evaluate the takeover offer, a
committee of the Burns Philp Board was formed. The members are:
(a) Mark Burrows,
(b) Fred Smith, and
(c) Tom Degnan
These Directors have carefully considered Rank Australia's Offer
and recommended that shareholders accept the Offer, in the
absence of a higher offer.
Rank Group Associated Directors Graeme Hart and Bryce Murray
also believe that the Offer is fair and reasonable and in the
best interests of shareholders not associated with Rank Group
and recommend that the Offer be accepted.
Grant Samuel & Associates Pty Limited, which was engaged to
prepare an independent expert's report in relation to the offer,
has concluded that the Rank Group's Offer is fair and
reasonable. The reasons for the recommendation, and the
independent expert's report, is set out in the Company's
target's statement which has been released to the ASX and will
be mailed to shareholders as soon as possible.
Shareholders should read the target's statement before deciding
how they wish to deal with their Burns Philp shares, the company
notes.
A 70-page full-text copy of the Target's Statement filed with
the ASX is available free of charge at:
http://bankrupt.com/misc/BurnsPhilp_Rank_TargetStatement_31Aug2006.pdf
About Burns Philp
Burns Philp & Company Limited -- http://www.burnsphilp.com/--
is an Australian based company involved in the production and
distribution of food ingredients and consumer branded food,
beverage and related products. The Group operates
internationally with products including snack foods, breakfast
cereals and meal components.
Burns Philp has a 20% interest in Goodman Fielder Limited.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Aug. 24, 2006, that Standard & Poor's Ratings Services placed
its 'BB-' long-term corporate credit rating on Burns Philp on
CreditWatch with negative implications after the company
announced that its major shareholder, Rank Group Ltd., proposed
to make an offer for all Burns Philp shares that it does not
already hold. Rank Group currently owns 57.6% of Burns Philp.
CARLING INDUSTRIES: Enters Wind-Up Proceedings
----------------------------------------------
After a general meeting held on August 11, 2006, the members of
Carling Industries Pty Limited agreed to voluntarily wind up the
company's operations and appoint Schon Condon and Bruce Gleeson
as joint liquidators.
The Joint Liquidators can be reached at:
Schon Condon
Bruce Gleeson
Jones Condon Chartered Accountants
Level 1, 34 Charles Street
Parramatta, New South Wales
Australia
Telephone:(02) 9893 9499
CARR COMPANIES: Court Approves ASIC Wind Up Application
-------------------------------------------------------
The Australian Securities and Investments Commission has
obtained the Supreme Court of Queensland's order to wind up
Brisbane-based Nimshay Pty Ltd, and a declaration that the
company's director, Andrew Carr, carried on a financial services
business without holding an Australian Financial Services
License.
On August 9, 2006, the Troubled Company Reporter - Asia Pacific
reported that the ASIC sought to wind up companies associated
with Mr. Carr:
1. Nimshay Pty Ltd, trading as Superior Wealth Creation and
Superior;
2. Bay Investments Pty Ltd;
3. Baynoosa Pty Ltd;
4. Lenlil Pty Ltd;
5. Baylink Investments Pty Ltd; and
6. Nimshay Holdings Pty Ltd.
The TCR-AP noted that the ASIC sought a declaration that Mr.
Carr carried on a financial services business without holding an
AFSL, as well as an injunction permanently restraining him from
engaging in the same business in the future.
The ASIC's wind-up application was done after an investigation,
which was not opposed by Mr. Carr or the companies.
During its investigation, the ASIC found that a number of
clients had paid large "mentoring fees" for Mr. Carr's financial
and personal development advice, as well as conferences on the
Gold Coast, Brisbane, Singapore, and Hawaii. A number of these
clients subsequently invested in "loans" to the Carr companies.
The ASIC commenced an investigation into Andrew Carr and his
companies after receiving complaints from the investors.
Proceedings were commenced in the Supreme Court of Queensland on
June 5, 2006.
Gregory Michael Moloney and Peter Ivan Felix Geroff of Ferrier
Hodgson Chartered Accountants were appointed official
liquidators of the companies.
A recent TCR-AP report noted that the National Australia Bank
Limited has appointed Ian Richard Hall and Stephen Graham
Longley as the receiver and manager of Nimshay Pty Ltd.
The Receiver and Manager can be reached at:
Ian Richard Hall
Stephen Graham Longley
PricewaterhouseCoopers
Level 17, Waterfront Place
1 Eagle Street, Brisbane
Australia
CUTRI PTY: Liquidator Rinaldi to Present Wind-Up Report
-------------------------------------------------------
Members of Cutri Pty Ltd will hold a final meeting on
September 26, 2006, at 5:00 p.m. to receive Liquidator Dominic
Rinaldi's report on the company's wind-up proceedings and
property disposal exercises.
The Liquidator can be reached at:
Dominic Rinaldi
Rinaldi & Co
Chartered Accountants
Ground Floor, 100 Greenhill Road
Unley, South Australia 5061
Australia
Telephone:(08) 8373 7388
Facsimile:(08) 8383 7366
DIOSTA PTY: Inability to Pay Debts Prompts Wind-Up
--------------------------------------------------
On July 27, 2006, the members of Diosta Pty Limited passed a
special resolution to wind up the company's operations due to
its inability to pay outstanding debts.
In this regard, Mitchell Ball was appointed as liquidator.
The Liquidator can be reached at:
Mitchell Ball
c/o Hall Chadwick
Level 29, 31 Market Street
Sydney, New South Wales 2000
Australia
DUNCAN BRICKPAVING: Final Meeting Slated for September 25
---------------------------------------------------------
A final meeting will be held for the members and creditors of
Duncan Brickpaving Pty Ltd on September 25, 2006, at 3:00 p.m.
During the meeting, Liquidator Oren Zohar will present accounts
of the company's wind-up proceedings.
As reported by the Troubled Company Reporter - Asia Pacific on
December 15, 2005, the company commenced a wind up of its
operations on November 23, 2005.
The Liquidator can be reached at:
Oren Zohar
KordaMentha
Level 11, 37 St Georges Terrace
Perth, Western Australia
Australia
Telephone:(08) 9221 6999
ERATEX PTY: Supreme Court Orders Wind Up
----------------------------------------
The Supreme Court of Victoria issued on August 9, 2006, an order
to wind up Eratex Pty Ltd's operations.
The Court also ordered the appointment Gregory Stuart Andrews as
liquidator.
The Liquidator can be reached at:
Gregory Stuart Andrews
G. S. Andrews & Associates
Certified Practising Accountants
22 Drummond Street
Carlton, Victoria 3053
Australia
Telephone:(03) 9662 2666
Facsimile:(03) 9662 9544
FOOD-SHARE AUSTRALIA: To Declare First and Final Dividend
---------------------------------------------------------
Food-Share Australia Limited will declare its first and final
dividend for creditors on September 19, 2006, to the exclusion
of those who were not able to prove their claims by Sept. 18,
2006.
The liquidator can be reached at:
John Vouris
Lawler Partners
Level 9, 4 O'Connell Street
Sydney, New South Wales 2000
Australia
Telephone: 9232 6800
FRUITOLOGIST PTY: Creditors' Final Meeting Set on September 22
--------------------------------------------------------------
Creditors of Fruitologist Pty Ltd will hold a final meeting on
September 22, 2006, at 11:00 a.m., to receive Liquidator Ginette
Muller's report on the company's wind-up proceedings and
property disposal exercises.
The Liquidator can be reached at:
Ginette Muller
KordaMentha (Queensland)
22 Market Street
Brisbane, Queensland 4000
Australia
Telephone:(07) 3225 4000
Facsimile:(07) 3225 4999
GOURMEX ENTERPRISES: Creditors Appoint Official Liquidators
-----------------------------------------------------------
Members of Gourmex Enterprises Pty Ltd decided on August 9,
2006, to liquidate the company's business.
Accordingly, Stephen Robert Dixon and Laurence Andrew Fitzgerald
were named joint and several liquidators.
The Joint and Several Liquidators can be reached at:
Stephen Robert Dixon
Laurence Andrew Fitzgerald
Horwath BRI (Victoria) Pty Ltd
Chartered Accountants
Level 30, 525 Collins Street
Melbourne, Victoria 3000
Australia
HELLO CLEANING: Members and Creditors to Receive Wind-Up Report
---------------------------------------------------------------
A final meeting will be held for the members and creditors of
Hello Cleaning Services Pty Limited on September 26, 2006, at
10:40 a.m.
During the meeting, members and creditors will receive
Liquidator John Vouris' report on the company's wind-up
proceedings and property disposal exercises.
The Liquidator can be reached at:
John Vouris
Lawler Partners
Level 7, 1 Margaret Street
Sydney, New South Wales 2000
Australia
Telephone:(02) 9232 6800
HOUSE & GIFT: Members Opt to Shut Down Firm
-------------------------------------------
After an extraordinary general meeting held on August 1, 2006,
the members of House & Gift Pty Ltd resolved to shut down the
company's business and appoint Roger David Midgley Smith as
liquidator.
The Liquidator can be reached at:
Roger David Midgley Smith
126 George Street
Morwell, Victoria 3840
Australia
JAYTEE MANUFACTURING: Undergoes Voluntary Liquidation
-----------------------------------------------------
On August 9, 2006, the members of Jaytee Manufacturing Co Pty
met and agreed to voluntarily wind up the company's operations.
In this regard, David Grantley Murdock was appointed as
liquidator.
The Liquidator can be reached at:
David Grantley Murdock
117 Greenhill Road
Unley South Australia 5061
Australia
Telephone:(08) 8272 2500
Facsimile:(08) 8271 1853
e-mail: rjcevans@rjcevans.com.au
KINGSTON LABOUR: Names Newman and White as Liquidators
------------------------------------------------------
At a general meeting held on August 11, 2006, the members of
Kingston Labour Hire Pty Ltd convened and resolved to wind up
the company's operations.
Subsequently, Philip Newman and Clyde Peter White were appointed
as joint and several liquidators.
The Joint and Several Liquidators can be reached at:
Philip Newman
Clyde Peter White
HLB Mann Judd
Chartered Accountants
Level 1, 160 Queen Street
Melbourne 3000
Australia
LOGEC SYSTEMS: Liquidator Crisp to Present Wind-Up Report
---------------------------------------------------------
The members of Logec Systems Pty Ltd will convene on
September 28, 2006, at 9:30 a.m.
On that date, Liquidator Glenn A. Crisp will present the
company's wind-up proceedings and the property disposal
exercises.
The Liquidator can be reached at:
Glenn A. Crisp
RSM Bird Cameron
Chartered Accountants
Level 8, 525 Collins Street
Melbourne, Victoria 3000
Australia
Telephone:(03) 9286 1800
Facsimile:(03) 9286 1899
MULTIPLEX GROUP: Provides Wembley Project Update
------------------------------------------------
The Troubled Company Reporter - Asia Pacific reported on
August 3, 2006, that Multiplex Group's Wembley Stadium project
in London is unlikely to be finished by September. The TCR-AP
also noted that Multiplex and the English Football Association's
Wembley National Stadium were blaming each other.
In an update, Multiplex Group advises that there has been no
material change to the project's status as of September 1, 2006.
As noted previously, works relating to the removal of temporary
works and those for commissioning and cleaning that are required
to achieve practical completion are ongoing. These remaining
works remain on program and will complete prior to the date at
which the stadium becomes operational.
There are a number of critical works and activities that are the
responsibility of the WNSL and the timing of the completion of
these works is under its control. WNSL has not yet begun some
of these Client Works and others, Multiplex reports.
Given the current status of the project, Multiplex intends to
make one further monthly update on Wembley at the end of
September 2006, unless otherwise required by ASX Listing Rule
3.1.
About Multiplex
Headquartered at Miller's Point, in New South Wales, Australia,
Multiplex Group -- http://www.multiplex.biz/-- derives its
revenue from property funds management, construction, property
development, and facilities management. The Group employs over
2,000 people and has established operations and offices
throughout Australia, New Zealand, the United Kingdom and the
Middle East. In December 2003, Multiplex Limited listed on the
Australian Stock Exchange as a part of the Multiplex Group,
raising a total of AU$1.2 billion. Multiplex Group was formed
by combining the various businesses of Multiplex Limited and the
newly established portfolio of investments held by Multiplex
Property Trust.
Early in 2005, Multiplex began facing cost pressures on its
reconstruction project for the Wembley Stadium in London,
prompting it to conduct its own internal investigation into the
Wembley difficulties. Its auditor, KPMG, later conducted its
own thorough review of the problems, leading to an unpredicted
write-down. In February 2005, stunned investors sold down
Multiplex shares after the Company reversed its stance on two
United Kingdom projects, writing off AU$68.3 million from its
profits. This started a series of profit downgrades throughout
2005.
The Company's troubles continue with plunging share prices,
extortion attempts, and threats of class action from disgruntled
shareholders. The Roberts family, as founder and controlling
shareholder of Multiplex, opted to offer AU$50 million indemnity
in a bid to appease dissatisfied shareholders. In May 2005,
Multiplex admitted that its troubled Wembley Stadium
construction project may end up with a multimillion loss. As of
February 2006, the Company is faced with liquidity crisis after
posting a massive AU$474 million loss on Wembley and is
currently in talks to bring down possible delay fees, pegged at
AU$138,000 per day beyond the scheduled March 31, 2006,
completion date.
The Troubled Company Reporter - Asia Pacific reported on August
18, 2006, that Multiplex Group financial results for the year
ended June 30, 2006, noted that the Wembley project in the
United Kingdom incurred a pretax loss of AU$364.3 million or
AU$255 million after tax loss. The project loss position has
remained unchanged since December 31, 2005.
NATIONWIDE NATIONAL: Federal Court Appoints Palmer as Liquidator
----------------------------------------------------------------
On August 11, 2006, the Federal Court of Australia appointed
Christopher J. Palmer as the official liquidator of Nationwide
National Security Services Pty Limited.
The Liquidator can be reached at:
Christopher J. Palmer
O'Brien Palmer
Level 4, 23 Hunter Street
Sydney, New South Wales 2000
Australia
NOELFAYE PTY: Members Pass Resolution to Wind Up Firm
-----------------------------------------------------
At a general meeting held on August 4, 2006, the members of
Noelfaye Pty Ltd passed a special resolution to voluntarily wind
up the company's operations and distribute the proceeds of its
assets.
Accordingly, Geoffrey B. Johnson was appointed as liquidator.
Geoffrey B. Johnson
Suite 12, 602 Whitehorse Road
Mitcham, Victoria 3132
Australia
NRG SCAFFOLDING: Creditors' Proofs of Debt Due on September 20
--------------------------------------------------------------
NRG Scaffolding Pty Limited will declare the first and final
priority dividend for its creditors.
Proofs of debt must be lodged by September 20, 2006, to be
included in the company's distribution of dividend.
The liquidator can be reached at:
Michael G. Jones
c/o Jones Condon
Chartered Accountants
Australia
Telephone:(02) 9251 5222
P.B.M. PTY: Commences Wind-Up Proceedings
-----------------------------------------
On July 26, 2006, the members of P.B.M. Pty Ltd met at a general
meeting and passed a special resolution to wind up the company's
operations.
In this regard, Gregory Stuart Andrews was appointed as
liquidator.
The Liquidator can be reached at:
Gregory Stuart Andrews
G. S. Andrews & Associates
Certified Practising Accountants
22 Drummond Street
Carlton 3053
Australia
Telephone:(03) 9662 2666
Facsimile:(03) 9662 9544
QURESHI & ASSOCIATION: Appoints Watson as Official Liquidator
-------------------------------------------------------------
At separate meetings of the members and creditors of Qureshi &
Association Pty limited both held on August 10, 2006, it was
resolved to close the company's operations and appoint David
Patrick Watson as liquidator.
The Liquidator can be reached at:
David Patrick Watson
Cor Cordis Chartered Accountants
Level 8, 50 Carrington Street
Sydney, New South Wales
Australia
Direct Line:(02) 8221 8449
e-mail: dwatson@corcordis.com.au
SAFE EFFECT: To Declare First and Final Dividend on September 22
----------------------------------------------------------------
Liquidator Gary Anderson will declare the first and final
dividend on September 22, 2006, for the creditors of Safe Effect
Technologies International Ltd.
Failure to submit proofs of claim by September 8, 2006, will
exclude the creditor from sharing in the company's distribution
of dividend.
The Liquidator can be reached at:
Gary Anderson
PO Box 1661
West Perth, Western Australia 6872
Australia
Telephone:(08) 9486 7822
Facsimile:(08) 9226 4250
e-mail: garya@iinet.net.au
STEELFARM ARMIDALE: Faces Liquidation Proceedings
-------------------------------------------------
On August 10, 2006, the members of Steelfarm Armidale Pty Ltd
met at a general meeting and resolved to voluntarily wind up the
company's operations.
In this regard, Anthony Constable was appointed as liquidator.
The Liquidator can be reached at:
Anthony Constable
3 Milpara Court
Tamworth, New South Wales 2340
Australia
TABLAP PTY: Members' Final Meeting Scheduled on September 22
------------------------------------------------------------
Members of Tablap Pty Limited will hold a final meeting on
September 22, 2006, at 10:30 a.m., to receive the report of
Liquidator Roderick Mackay Sutherland on the company's wind-up
proceedings and the property disposal exercises.
As reported by the Troubled Company Reporter - Asia Pacific, on
June 9, 2006, the company commenced a wind-up of its operations
on April 19, 2006.
The Liquidator can be reached at:
Roderick Mackay Sutherland
Jirsch Sutherland
Chartered Accountants
Level 2, 84 Pitt Street
Sydney, New South Wales 2000
Australia
Telephone:(02) 9233 2111
Facsimile:(02) 9233 2144
TEAM CORP: Receiver Steps Aside
-------------------------------
Brian Keith McMaster ceased to act on August 10, 2006, as
receiver of the legal and equitable interests of Team Corp Pty
Ltd.
The former Receiver can be reached at:
Brian Keith McMaster
KordaMentha
Level 11, 37 St Georges Terrace
Perth, Western Australia 6000
Australia
TRACKWOOD PTY: To Declare Final Dividend on September 19
--------------------------------------------------------
A final dividend will be declared for the creditors of
Trackwood Pty Limited on September 19, 2006, to the exclusion of
creditors who cannot prove their debts on that day.
The liquidator can be reached at:
M. J. Chubb
Clout & Associates
Level 1, 144-148 West High Street
Coffs Harbour, New South Wales 2450
Australia
Telephone:(02) 6652 3288
Facsimile:(02) 6651 9393
VISION PROPERTY: Members Agree to Shut Down Business
----------------------------------------------------
The members of Vision Property Group (Western Australia) Pty Ltd
held an extraordinary general meeting on August 4, 2006, and
resolved to shut down the company's business.
Subsequently, Oren Zohar and Brian McMaster were appointed as
liquidators.
The Liquidators can be reached at:
Oren Zohar
Brian McMaster
KordaMentha
Level 11, 37 St Georges Terrace
Perth, Western Australia 6000
Australia
XERIUM TECHNOLOGIES: Adopts Personal Stock Trading Plan
-------------------------------------------------------
Xerium Technologies, Inc., discloses that a trust of the wife of
Thomas Gutierrez, Xerium Technologies' chief executive officer
and president, adopted a personal stock trading plan in August
2006, pursuant to, and intended to comply with, Rule 10b5-1
under the Securities Exchange Act of 1934.
Rule 10b5-1 provides for the adoption of predetermined plans for
selling specified amounts of stock by persons like the directors
and officers of public companies and their families. The plans
may be entered into only when the person adopting the plan is
not in possession of material, nonpublic information. Once the
plan is established, trades may be executed at times when the
person adopting the plan is in possession of material nonpublic
information, based on the application of a formula determined at
the time the plan was entered.
Under the plan adopted by the trust, the trust plans to sell up
to 100,000 shares of Xerium common stock during the period from
September 14, 2006, to December 31, 2008, subject to the price
of Xerium common stock reaching a specified level.
As of August 31, 2006, Mr. Gutierrez owns 347,326 shares of
Xerium common stock, including shares held by the trust and his
wife, but not including additional shares subject to unvested
time-based and performance-based restricted stock unit awards.
About Xerium Technologies
Headquartered in Wesborough, Massachusetts, Xerium Technologies,
Inc. (NYSE: XRM) -- http://xerium.com/-- is a leading global
manufacturer and supplier of two types of products used
primarily in the production of paper: clothing and roll covers.
The company, which operates around the world under a variety of
brand names, owns a broad portfolio of patented and proprietary
technologies to provide customers with tailored solutions and
products integral to production, all designed to optimize
performance and reduce operational costs. With 36 manufacturing
facilities in 15 countries -- including, Japan and Australia --
Xerium Technologies has approximately 3,900 employees.
* * *
As reported in the Troubled Company Reporter on January 24,
2006, Moody's Investors Service changed the outlook on Xerium
Technologies, Inc.'s ratings to negative from stable, and
affirmed the company's corporate family rating at B1. The
change in outlook to negative reflects Xerium's weaker than
expected operating performance primarily due to production
inefficiencies in North America and delays in achieving benefits
from cost reduction initiatives. Moody's believes the impact of
these issues, coupled with a difficult pricing environment for
roll covers and to a lesser extent clothing products, will
continue to negatively affect operating performance over the
intermediate term.
Affirmed ratings are:
* Corporate family rating; B1
* Guaranteed senior secured term loan B; B1
* Guaranteed senior secured revolving credit facility; B1
XERIUM TECHNOLOGIES: Japan Subsidiary Acquires PMA Shoji Assets
---------------------------------------------------------------
Xerium Technologies, Inc. (NYSE: XRM), a leading global
manufacturer of clothing and roll covers used primarily in the
paper production process, relates that its subsidiary, Huyck
Japan Limited, has acquired certain assets, and assumed certain
related liabilities, of PMA Shoji Co. Ltd.
PMA Shoji Co. Ltd. has been a reseller of Xerium products in the
Japanese market and provides high quality service to its
customers. Eight employees of PMA are expected to join Xerium's
Japanese operations in connection with the transaction.
Financial terms of the transaction were not disclosed.
"We expect to improve our competitive position in the Japanese
market by integrating within our existing Japanese operations an
important contributor to our success. Through the transaction,
we expect to provide better customer service and a faster supply
chain, by strengthening our in-country operations," Cheryl
Diuguid, President Xerium-Asia, says.
About Xerium Technologies
Headquartered in Wesborough, Massachusetts, Xerium Technologies,
Inc. (NYSE: XRM) -- http://xerium.com/-- is a leading global
manufacturer and supplier of two types of products used
primarily in the production of paper: clothing and roll covers.
The company, which operates around the world under a variety of
brand names, owns a broad portfolio of patented and proprietary
technologies to provide customers with tailored solutions and
products integral to production, all designed to optimize
performance and reduce operational costs. With 36 manufacturing
facilities in 15 countries -- including, Japan and Australia --
Xerium Technologies has approximately 3,900 employees.
* * *
As reported in the Troubled Company Reporter on January 24,
2006, Moody's Investors Service changed the outlook on Xerium
Technologies, Inc.'s ratings to negative from stable, and
affirmed the company's corporate family rating at B1. The
change in outlook to negative reflects Xerium's weaker than
expected operating performance primarily due to production
inefficiencies in North America and delays in achieving benefits
from cost reduction initiatives. Moody's believes the impact of
these issues, coupled with a difficult pricing environment for
roll covers and to a lesser extent clothing products, will
continue to negatively affect operating performance over the
intermediate term.
Affirmed ratings are:
* Corporate family rating; B1
* Guaranteed senior secured term loan B; B1
* Guaranteed senior secured revolving credit facility; B1
================================
C H I N A & H O N G K O N G
================================
BOVILLE INDUSTRIAL: Appoints Yan and Haughey as Liquidators
-----------------------------------------------------------
On February 17, 2006, Lai Kar Yan, Derek and Darach Haughey were
appointed provisional joint and several liquidators of Boville
Industrial Co Ltd.
According to the Troubled Company Reporter - Asia Pacific,
Beatrice Tsang Sau Hing presented a petition to wind-up the
company's operation on February 1, 2006, before the High court
of Hong Kong. The petition was heard on March 22, 2006.
The Provisional Liquidators can be reached at:
Lai Kar Yan
35/F., One Pacific Place
88 Queensway
Hong Kong
BRILLIANT CHOICE: Faces Wind-Up Proceedings
-------------------------------------------
A petition to wind-up Brilliant Choice Enterprise Ltd will be
heard before the High Court of Hong Kong on September 6, 2006,
at 9:30 a.m.
The Secretary of Justice filed the petition with the Court on
June 21, 2006.
The Solicitor for the petitioner can be reached at:
Fung Mei Fung, Jenny
Department of Justice
2nd/F., High Block
Queensway Government Offices
66 Queensway, Hong Kong
DATON SECURITIES: CSRC Bans Ops on Failure to Meet Requirements
---------------------------------------------------------------
The China Securities Regulatory Commission on August 31, 2006,
disclosed that it has imposed restrictions on the operations of
Daton Securities Co. after it failed to meet regulatory
requirements for net capital and risk controls, Easy Bourse
reports.
Daton Securities won't be allowed to conduct underwriting,
proprietary trading, or asset management businesses, the Chinese
regulator said in a statement on its Web site. In addition the
company will not be allowed to open new businesses or outlets.
Officials at the brokerage weren't immediately available for
comment, Easy Bourse says.
Easy bourse relates that Daton Securities -- a medium-sized
brokerage based in eastern Shandong province -- was established
in 2001 with registered capital of CNY1.12 billion.
The company posted an operating loss of CNY133 million for 2005
and applied to a court in Shandong province in May last year to
declare bankruptcy, Easy Bourse reveals, citing Shanghai
Securities News.
According to the report, the CSRC urged Daton Securities to
complete its restructuring by the end of October 2006 in a bid
to improve its risk controls.
Easy Bourse notes that a multiyear slump in the stock market,
before its upturn this year, had hit China's brokerages hard.
Regulators have been making efforts to clean up the sector by
injecting money into brokerages and issuing a series of new
rules aimed at improving their risk controls and corporate
governance.
* * *
Daton Securities, a medium-sized brokerage based in eastern
Shandong province, was established in 2001 with registered
capital of CNY1.12 billion.
The company posted an operating loss of CNY133 million for 2005
and applied to a court in Shandong province in May last year to
declare bankruptcy.
GOLD PLEASURE: Provisional Liquidators Named
--------------------------------------------
Lai Kar Yan, Derek and Darach Haughey were appointed provisional
joint and several liquidators of Gold Pleasure Industrial Co Ltd
on February 17, 2006.
The Troubled Company Reporter - Asia Pacific reported on
March 7, 2006, that Beatrice Tsang Sau Hing filed a wind-up
petition against the company. The petition was heard before the
Court on March 22, 2006.
The Provisional Liquidators can be reached at:
Lai Kar Yan
35/F., One Pacific Place
88 Queensway
Hong Kong
GREAT WALL: Court Issues Wind-Up Order
--------------------------------------
The High Court of Hong Kong issued a wind-up order against The
Great Wall Industrial Ltd on August 9, 2006.
According to the Troubled Company Reporter - Asia Pacific, Ho Ka
Yi, Alice filed a wind-up petition against the company on June
12, 2006. The petition was heard on August 9, 2006.
HOMEFIELD INTERNATIONAL: Liquidator Steps Aside
-----------------------------------------------
E.T. O'Connell ceased to act as liquidator for Homefield
International Development Ltd on July 5, 2006.
Mr. O'Connell can be reached at:
E.T. O'Connell
10/F., Queensway
Government Offices
66 Queensway
Hong Kong
HO CHEUNG: Court Favors Wind-Up
-------------------------------
The High Court of Hong Kong issued a wind-up order against Ho
Cheung Investment Development Co Ltd on August 9, 2006.
According to the Troubled Company Reporter - Asia Pacific, Tse
Hon Kai filed a petition to wind-up the company's operation on
June 12, 2006. The petition was heard on August 9, 2006.
IAC BANK: Regulation Conflicts Delay IPO
----------------------------------------
Conflict in regulations between Shanghai and Hong Kong has
stalled Industrial & Commercial Bank of China's plan to sell
around US$14 billion worth of shares in Hong Kong and US$7
billion in Shanghai, Bloomberg reports.
According to Bloomberg's sources, ICBC plans to seek waivers
from the government to help sell a record of combined US$21
billion of stock in an initial public offering.
Times Online relates that Chinese regulations demand companies
to provide forecasts of where their stock will trade after an
initial public offer, which conflict with Hong Kong rules that
forbid such guidance.
Times recounts that ICBC announced its plans last year for a
Hong Kong float. It suggested it might also look at a listing
on China earlier this year when China ended a ban on domestic
IPOs.
Several mainland-controlled companies -- dubbed "red-chips" --
have opted to list in Hong Kong to take advantage of the
territory's standing on the world's financial stage. Hong Kong-
listed Chinese companies include China Mobile and PetroChina,
Times add.
About 80% of ICBC's stock sold overseas will be new, Bloomberg's
sources said. The entire company may be valued at as much as
US$116 billion, ranking it seventh in the world, or about the
same size as Zurich-based UBS AG, Europe's biggest bank by
assets.
Meanwhile, Bloomberg notes that ICBC had loans of CNY 3.3
trillion or US$414 billion at the end of last year, 47% more
than rival Bank of China Ltd. Non-performing loans were
CNY154.4 billion, or 4.7% of the total.
* * *
Industrial and Commercial Bank of China
-- http://www.icbc.com.cn/-- headquartered in Beijing, is the
largest commercial bank in China. As of December 2005, it had
total assets of US$799 billion.
On Aug 10, 2006, the Troubled Company Reporter - Asia Pacific
reported that Moody's Investors Service placed on review for
upgrade Industrial and Commercial Bank of China's E+ Bank
Financial Strength Rating. This follows Moody's earlier rating
action in November 2005 when the outlook for ICBC's BFSR was
revised to positive from stable. The A2 long-term deposit and
P-1 short-term deposit ratings, both with a positive outlook,
are unaffected.
LOLLY QUEEN: Court Issues Wind-Up Order
---------------------------------------
The High Court of Hong Kong issued a wind-up order against Lolly
Queen Co Ltd on August 9, 2006.
On July 14, 2006, the Troubled Company Reporter - Asia Pacific
reported that Yuen Pui Chung filed a petition to wind-up the
company's operation before the court on June 12, 2006. The
petition was heard on August 9, 2006.
MO & COMPANY: Prepares to Pay Dividend to Creditors
---------------------------------------------------
Mo & Company -- which is in member's voluntary liquidation -- is
preparing to pay its first and final dividend to the company's
creditors.
In this regard, Kennic Lai Hang Lui and Lau Wu Kwai King, Karen
will be receiving creditors' proofs of claim until today,
September 4, 2006.
The Joint Liquidators can be reached at:
Kennic Lai Hung Lui
5/F., Ho Lee Commercial Bldg
38-44 D' Aguilar Street
Central, Hong Kong
SOUTHERN WISE: Liquidator Ceases to Act for Company
---------------------------------------------------
E.T. O'Connell ceased to act as liquidator for Southern Wise Ltd
on July 4, 2006.
The former Liquidator can be reached at:
E.T. O'Connell
10/F., Queensway
Government Offices
66 Queensway
Hong Kong
SUNVILLE INVESTMENT: Names Provisional Liquidators
--------------------------------------------------
On February 17, 2006, Lai Kar Yan, Derek and Darach Haughey were
appointed as provisional joint and several liquidators of
Sunville Investments Co Ltd.
According to the Troubled Company Reporter - Asia Pacific,
Beatrice Tsang Sau Hing presented a petition to wind-up the
company's operation on February 1, 2006. The petition was heard
before the High Court of Hong Kong on March 22, 2006.
The Provisional Liquidators can be reached at:
Lai Kar Yan
35/F., One Pacific Place
88 Queensway
Hong Kong
TAI ON ELECTRIC: To Wind-Up Operations
--------------------------------------
On August 9, 2006, the High Court of Hong Kong issued a wind-up
order against The Great Wall Industrial Ltd.
According to the Troubled Company Reporter - Asia Pacific, Chow
Wai Kit filed a wind-up petition against the company on June 12,
2006. The petition was heard on August 9, 2006.
TOPVILLE INDUSTRIAL: Names Yan and Haughey as Joint Liquidators
---------------------------------------------------------------
Lai Kar Yan, Derek and Darach Haughey were appointed provisional
joint and several liquidators of Topville Industrial Co Ltd on
February 17, 2006.
According to the Troubled Company Reporter - Asia Pacific,
Beatrice Tsang Sau Hing presented before the High court of Hong
Kong a petition to wind-up the company's operation on Feb. 1,
2006. The petition was heard on March 22, 2006.
The Provisional Liquidators can be reached at:
Lai Kar Yan
35/F., One Pacific Place
88 Queensway
Hong Kong
YI ALLIANCE: Appoints Joint and Several Liquidators
---------------------------------------------------
Ho Kwan Yiu, Junius and Ho Wai Fung were appointed to act as
joint and several liquidators of Yi Alliance Ltd on August 1,
2006.
The Troubled Company Reporter - Asia Pacific reported on
November 29, 2005, that the High Court of Hong Kong issued a
wind-up order against the company's operations on November 16,
2005.
The Joint and Several Liquidators can be reached at:
Ho Kwan Yiu
18th Floor, Henley Building
5 Queen's Road Central
Hong Kong
YUE FUNG: Court to Hear Wind-up Bid on September 27
---------------------------------------------------
A petition to wind-up Yue Fung Industrial Co Ltd will be heard
before the High Court of Hong Kong on September 27, 2006, at
9:30 a.m
Anthony Siu & Co. filed the petition with the Court on July 26,
2006.
The Solicitors for the Petitioner can be reached at:
Anthony Siu & Co.
Room 1604, 16/F
Nine Queen's Road Central
Hong Kong
=========
I N D I A
=========
FORD MOTOR: Eyes Sale of Luxury Auto Brands to Investment Group
---------------------------------------------------------------
Ford Motor Co. is in talks to sell its Jaguar and Land Rover
brands led by its former chief executive officer Jacques Nasser,
Reuters reports, citing Bloomberg News as its source.
According to Bloomberg, the discussions are with JPMorgan Chase
& Co.'s One Equity Partners LLC, where Mr. Nasser is senior
partner for mergers and acquisition.
The talks, which do not involve Volvo, could result in a joint
venture rather than an outright acquisition, the report states.
In October 2001, Mr. Nasser was ousted as Ford's president and
CEO shortly after the company reported a US$692 million third
quarter loss on top of a loss the previous quarter, Reuters
relates.
As reported in Troubled Company Reporter-Europe on Aug. 22, Ford
disclosed plans to close more factories, cut more management
jobs by another 10% to 30% and reduce benefits as it reels from
a US$254 million net loss for the second quarter of 2006. The
original plan called for termination of 30,000 employees and
shutting down of 14 plants by 2012.
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.
FORD MOTOR: Appeals Court Upholds Class in Suit Over Minivans
-------------------------------------------------------------
The Sixth Circuit United States Court of Appeals in Cincinnati
upheld a decision by U.S. District Judge Susan Dlott to certify
a class action filed against Ford Motor over sticking gas pedals
on its 1999 and 2000 Mercury Villager minivans, The Enquirer
reports.
The panel ruled that owners of 1999 and 2000 Mercury Villager
minivans belongs in a single, class-action trial and that class
litigation is the "superior method" of settling the dispute in
court.
"Permitting individual owners and lessees of 1999 or 2000
Villagers to litigate their cases is a vastly inferior method of
adjudication when compared to determining threshold issues of
contract interpretation that apply equally to the whole class,"
the court said.
In 2000, Pat Daffin of West Price Hill, owner of a 1999
Villager, filed suit against Ford Motor Co., alleging that
thousands of Ohioans bought or leased Villagers with throttle
body assemblies that can leave gas pedals stuck in acceleration.
Nearly 60 other Villager owners complained about balky gas
pedals in complaints filed with the National Highway
Transportation Safety Administration as of mid-2004, according
to the report.
Nissan Motor Co. made the power plant for 1999 and 2000
Villagers and Nissan Quest minivans.
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.
INDIAN OIL: ICRA Reaffirms LAAA /A1+ Ratings on NCD/STD Programs
----------------------------------------------------------------
ICRA has reaffirmed the LAAA rating to the INR60-billion long-
term debt program of Indian Oil Corporation Limited. The rating
indicates the highest credit quality.
The rating assigned to the INR40-billion short-term
debt/commercial paper program has also been reaffirmed at A1+,
indicating highest credit quality.
The reaffirmation of the highest safety ratings take into
account Indian Oil's dominant and strategically important
position in the energy sector, favorable outlook for the
refining business over the medium term, its sovereign ownership,
and the financial flexibility enjoyed by the company, due to its
large portfolio of liquid investments.
ICRA is concerned with the lack of pricing autonomy on retail
products, which has resulted in the company incurring
substantial losses in the marketing business. Despite the
government's package of measures announced from time to time to
ensure equitable sharing of the under-recoveries provide some
relief, Indian Oil's ratings will continue to critically depend
on the timeliness and adequacy government's response in a
scenario of further increase in crude prices on sustained basis.
Successful implementation of its petrochemicals projects is
expected to impart greater diversity to Indian Oil's business
portfolio over the medium to long term and partly reduce its
exposure to the risks associated with the retail and management
business.
About Indian Oil Corp.
Indian Oil was established as Indian Oil Company Limited in
1959. Indian Oil Corporation was formed in 1964 with the merger
of Indian Refineries Limited with the Indian Oil Company Ltd.
Indian Oil's countrywide network of over 22,000 sales points is
backed for supplies by its extensive, well spread out marketing
infrastructure comprising 167 bulk storage terminals,
installations and depots, 94 aviation fuelling stations and 87
LPG bottling plants. Its subsidiary, IBP Co. Ltd, is a stand-
alone marketing company with a nationwide network of over 3,000
retail sales points.
According to press reports, in spite of its large production
capacity and smooth operations, Indian Oil incurred huge losses
as a result of a Government mandate, which prohibits public
sector oil marketing firms from raising fuel prices despite high
global prices. For years, Indian Oil has been selling fuel at
subsidized prices, which is way below the costs it pays for
importing fuel from overseas markets. The Company has not been
able to pass on the high prices leading to large under-
recoveries and losses.
In early 2006, the Government has offered a bailout package to
help rescue oil companies, including Indian Oil, from going
bankrupt. Under the package, the Government issued Indian Oil,
Bharat Petroleum, Hindustan Petroleum and IBP oil bonds worth
INR10,000 crore to INR12,000 crore to compensate them for not
raising LPG and kerosene prices. The move was expected to
improve their balance sheets.
SILICON GRAPHICS: LGE Wants Stay Lifted to Pursue Court Action
--------------------------------------------------------------
LG Electronics, Inc., asks the United States Bankruptcy Court
for the Southern District of New York to lift the automatic stay
to allow it to proceed against Silicon Graphics, Inc., in the
appropriate district court for damages and injunctive relief
related to historic, prepetition infringements of its patents.
Lee S. Attanasio, Esq., at Sidley Austin LLP, in New York,
relates that for six years, the Debtors have been on notice that
certain of their products infringed several patents owned by
LGE, including:
* U.S. Patent No. 4,654,484 entitled "Video Compression and
Expansion System"; and
* U.S. Patent No. 4,747,070 entitled "Reconfigurable Memory
System".
The parties engaged in discussions regarding the appropriate
licensing terms for the Patents. An agreement was not reached,
however, and formal discussions between the parties were
discontinued because the Debtors insisted on waiting for the
outcome of then-pending patent lawsuits filed by LGE against
third parties alleging infringement of most of the Patents.
Since 2003, LGE has continued to provide the Debtors with notice
regarding the status of the Infringement Actions and, in 2004,
reiterated its charges of infringement against them.
Ms. Attanasio asserts that the District Court will be able to
provide a complete and efficient resolution of the issues
between LGE and the Debtors. The District Court Action will
involve the same factual circumstances, legal issues and
witnesses for both the pre- and postpetition acts of
infringement. If the stay is not lifted, both parties will be
forced to try the same facts twice, once in District Court and
once in the Bankruptcy Court.
"The interests of judicial economy weigh heavily in favor of
lifting the automatic stay so that both the pre and postpetition
infringements of the Patents can be litigated at the same time,"
Ms. Attanasio notes.
According to Ms. Attanasio, the District Court has the necessary
expertise to resolve these highly specialized issues and is a
universally recognized forum specializing in patent litigation.
Moreover, Ms. Attanasio points out that the balance of harms
weighs in favor of granting LGE relief from the stay because:
(i) it has a strong interest in ensuring that its property
rights are protected from unauthorized use; and
(ii) it has the exclusive right to sell and use the
technology embodied by the Patents.
LGE wants the Court to declare that the stay does not restrict
LGE's ability to commence a District Court Action as it relates
to the Debtors' continuing, postpetition infringement.
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: Seeks Entry Into Backstop Agreements
------------------------------------------------------
Silicon Graphics, Inc., and its debtor-affiliates ask the United
States Bankruptcy Court for the Southern District of New York's
authority to enter into Backstop Commitment Agreements in
connection with rights offering under their Plan of
Reorganization.
The Debtors' Plan of Reorganization contemplates that some of
the New Common Stock to be issued by Reorganized Silicon
Graphics will be issued pursuant to a rights offering.
Under the Rights Offering, each holder of an Allowed Secured
Note Claim will receive subscription rights entitling the holder
to purchase its Ratable Proportion of 6,800,000 shares of the
New Common Stock, while each holder of an Allowed Cray Unsecured
Debenture Claim will receive subscription rights entitling the
holder to purchase its Ratable Proportion of 700,000 shares of
the New Common Stock, each at US$6.67 per share.
The Plan allows Lampe Conway & Co., LLC, to purchase any amount
of New Common Stock not purchased pursuant to the Cray Rights,
in accordance with the Global Settlement Agreement. The Plan
also provides that any amount of New Common Stock not purchased
pursuant to the subscription rights issued and the Lampe Option
will be purchased at the same price provided in the Rights
Offering by the "backstop purchasers" consisting of:
-- QDRF Master Ltd.,
-- Encore Fund, L.P.,
-- Quadrangle Debt Recovery Income Fund Master, Ltd.,
-- Quadrangle Debt Opportunities Fund Master Ltd.,
-- Watershed Technology Holdings, LLC,
-- Watershed Capital Partners, L.P., and
-- Watershed Capital Institutional Partners, L.P., and
-- Watershed Capital Partners (Offshore), Ltd.
The Backstop Commitment Agreements
The salient terms of each Backstop Commitment Agreement are:
* Rights Offering: The Company will distribute subscription
forms for the Rights and the Cray Rights as soon as
reasonably practicable after the entry of orders approving
the Backstop Commitment Agreement and the disclosure
statement related to the Plan. The Rights and the Cray
Rights may be exercised during a period commencing on
the Distribution Date and ending on the date that is the
deadline for voting on the Plan, as specified in the
subscription form, but subject to the Company's right to
extend the date with the Backstop Purchaser's consent.
* Backstop Commitment: Each Backstop Purchaser agrees to
purchase -- at US$6.67 per share -- and at the aggregate
Purchase Price, its Pro Rata Share of:
(i) one share for each Right that was not properly
exercised by its holder as of the Subscription
Expiration Date subject to the maximum number of
shares that may be purchased and the maximum number
of shares identified in each Backstop Commitment
Agreement; and
(ii) one share for each Cray Right that was not properly
exercised by their holders and not purchased by
Lampe Conway, subject to the Cray Share Cap.
With respect to the Notes held by the Backstop Purchaser
On the Record Date, the Backstop Purchaser will exercise
And purchase the Rights distributed with respect to the
Notes.
* Overallotment Shares: In exchange for the Backstop
Commitment, the Backstop Purchaser will have subscription
rights to purchase an additional 1,125,000 total shares of
New Common Stock.
* Backstop Fee: Silicon Graphics, Inc., will pay to the
Backstop Purchasers a US$1,000,000 fee, which may be
Allocated among the Backstop Purchasers. The Backstop
Fee, which will be nonrefundable, will be paid to the
Backstop Purchasers within two business days after the
entry of the Court's order granting the Agreements.
* Additional Fees: Upon entry of the Agreement Order, and
upon demand, the Debtors will reimburse or pay within 10
days after presentation of an invoice approved by the
Backstop Purchaser, without further Court approval, the
Reasonable fees and out-of-pocket expenses of Goodwin
Procter LLC, incurred in connection with the Backstop
Commitment Agreement. Goodwin Procter represents the ad
hoc committee of certain holders of 6.50% Senior Secured
Convertible Notes.
The Debtors also agree to pay the filing fee required
Under the Hart-Scott-Rodino Antitrust Act or any
equivalent period under applicable foreign antitrust laws
on behalf of the Backstop Purchasers when filings under
the HSR Act are made.
* Conditions: The obligations of each Backstop Purchaser are
subject to various conditions precedent including:
-- entry of the Disclosure Statement Order;
-- entry of the Agreement Order;
-- approval by the Backstop Purchaser, prior to the
hearing on the request, a draft of the Plan, the
Disclosure Statement, the Confirmation Order, and any
amendments or supplements;
-- entry of the Confirmation Order on a date that is
on or before 135 days from the Petition Date;
-- entry of a non-appealable Confirmation Order, which
have not been appealed within 10 calendar days of
entry, or which have not been stayed pending appeal,
and which have not been subject to any reversal,
modification or vacatur order entered by any court of
competent jurisdiction;
-- satisfaction of the conditions to confirmation and
conditions to the Effective Date of the Plan;
-- commencement by Silicon of the Rights Offering in
accordance with the terms of the Backstop Agreement;
-- receipt by the Backstop Purchaser of the Backstop Fee;
and
-- the absence of a Material Adverse Effect following the
execution and the delivery of the Backstop Commitment
Agreement, prior to the Closing Date.
* Indemnification: Regardless of whether the Rights Offering
is consummated or whether the Backstop Commitment
Agreement is terminated, the Debtors agree to indemnify
the Backstop Purchaser and certain related parties from
and against all losses arising in connection with the
Rights Offering, the Backstop Commitment, the Backstop
Commitment Agreement, the Plan, the Agreement Order, or
the Confirmation Order.
* Termination: The Backstop Purchaser may terminate the
Backstop Commitment Agreement:
(i) on or after the business day following the date the
Backstop Fee has become payable and has not been
received by the Backstop Purchaser;
(ii) on or after August 24, 2006, if the Agreement Order
will not have been entered by the Court by that
date;
(iii) on or after October 31, 2006;
(iv) upon failure by Silicon to pay the Backstop Fee
when due; or
(v) upon the failure of any of the conditions of the
Backstop Commitment Agreement to be satisfied.
Backstop Agreements are Necessary
Stephen A. Youngman, Esq., at Weil, Gotshal & Manges LLP, in New
York, explains that by entering into the Backstop Commitment
Agreements, the Debtors can be sure that all of the Rights and
the Cray Rights offered pursuant to the Rights Offering are
subscribed and exercised, thus ensuring an infusion of funds of
approximately US$50,000,000.
Moreover, Mr. Youngman informs the Court that the Backstop
Commitment Agreements enable the Backstop Purchasers to purchase
the Overallotment Shares, potentially netting the Debtors an
additional US$7,503,750.
A full-text copy of the master form for the Backstop Commitment
Agreements is available for free at:
http://researcharchives.com/t/s?f32
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: Gets Okay to File Plan Supplements Under Seal
---------------------------------------------------------------
Silicon Graphics, Inc., and its debtor-affiliates sought and
obtained the United States Bankruptcy Court for the Southern
District of New York's authority to file portions of affidavits
of service and supplemental documents to their First Amended
Plan of Reorganization containing lists of their customer
contracts under seal.
The Customer Lists contain highly sensitive commercial
information that, if made available to competitors, would put
the Debtors at an enormous competitive disadvantage and
potentially undermine their entire reorganization effort, Shai
Y. Waisman, Esq., at
Weil, Gotshal & Manges LLP, in New York, explains.
The Debtors will serve copies of the Confidential Information on
the Office of the U.S. Trustee, the attorneys for the Official
Committee of Unsecured Creditors, and the attorneys for the Ad
Hoc Committee of the Debtor' secured bondholders.
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
=================
BANK INTERNASIONAL: Government to Sell Stake
--------------------------------------------
The Indonesian Government is selling its remaining stake in PT
Bank Internasional Indonesia and PT Bank Permata this month,
Bloomberg News says.
According to the report, the move is aimed at raising funds to
plug Indonesia's budget deficit.
Bloomberg recounts that Indonesia has been selling stakes in
banks and other companies acquired after the 1997 Asian
financial crisis to trim its budget deficit forecast this year
to reach IDR42.2 trillion (US$4.6 billion), or 1.4% of gross
domestic product. The Government also aims to recoup part of
the more than IDR450 trillion it spent bailing out the nation's
banks, Bloomberg says.
The Government's 5.5% stake in Bank Internasional was valued at
IDR468.75 billion while its 26.2% stake in Bank Permata was
valued at IDR1.48 trillion.
About Bank Permata
Headquartered in Jakarta, Indonesia, PT Bank Permata Tbk's --
http://www.permatabank.com/-- products and services include
liabilities, asset, credit card and bancassurance, PermataFOREX,
commercial banking, e-channels and preferred banking. The bank
has approximately 318 domestic branches, sub branches and cash
offices throughout the country. The bank's subsidiaries, which
are engaged in the securities industry, the consumer finance and
leasing sector, the general insurance business and the banking
sector, include PT Bali Securities, PT Bali Tunas Finance, PT
Asuransi Permata Nipponkoa Indonesia and Bank Perkreditan
Rakyat.
* * *
The Troubled Company Reporter -- Asia Pacific reported July 5,
2006 that Moody's Investors Service has placed Bank Permata's E+
bank financial strength rating, which carried a positive
outlook.
About Bank Internasional
PT Bank Internasional Indonesia Tbk -- http://www.bii.co.id/--
engages in general banking services and in other banking
activities based on Syariah principles. The bank's services are
divided into three categories: Personal Services, consisting of
Funding, Credit Card Services, Loan, Reksadana and
Bancassurance; Corporate Services, consisting of Funding, Credit
Card Services, Loan and Investment Banking, and Platinum
Services, consisting of Platinum Access, Syariah Platinum Access
and Platinum MasterCard. The bank is headquartered in Jakarta,
Indonesia.
With a total customer deposit base of more than IDR34 trillion
and over IDR47 trillion in assets, Bank Internasional is one of
the largest banks in Indonesia with an international network
that comprises over 230 branches and 700 ATMs across Indonesia,
as well as a banking presence in Mauritius, Mumbai and the
Cayman Islands.
* * *
The Troubled Company Reporter - Asia Pacific reported on May 22,
2006, that Moody's Investors Service has raised Bank
Internasional Indonesia's issuer rating to B1 from B2,
subordinated debt rating to B1 from B2, and long-term deposit
rating to B2 from B3. The outlook for the ratings is stable.
Additionally on May 29, 2006, Moody's Investors Service has
placed Bank Internasional Indonesia's E+ bank financial strength
rating on review for possible upgrade.
Another TCR-AP report on May 24, 2006, said that Fitch Ratings
affirms Bank Internasional's ratings on its:
* Long-term Foreign Currency Issuer Default Rating 'BB-';
* Short-term 'B';
* Individual 'C/D'; and
* Support '4'.
The outlook for ratings is stable.
BANK TABUNGAN: Net Incomes Narrows to IDR151 Billion
----------------------------------------------------
Bank Tabungan Negara (Persero) recorded a IDR150.72-billion net
income for the six months ended June 30, 2006, down from the
IDR275.29 billion it reported for the same period last year,
according to the company's financials submitted to the Surubaya
Stock Exchange.
The bank reported a IDR710.86-billion net interest income for
the first half of 2006, 8.90% higher compared with the
IDR652.78 billion figure for the first half of 2005. However,
the bank reports higher operating expenses and lower non-
operating income, at IDR554.15 billion and IDR3.65 billion in
2006, respectively.
The bank's financials include these financial highlights:
Bank Tabungan Negara (Persero)
(in IDR, millions)
06/30/2006 06/30/2006
---------- ----------
Total assets 30,151,424 26,837,070
Interest revenues 1,959,235 1,391,345
Interest expenses 1,248,373 738,561
Net interest income 710,862 652,784
Other operating income 103,274 74,197
Operating expenses 554,145 465,080
Operating income 258,796 261,187
Non-operating income 3,650 14,105
Income before tax 262,446 275,292
Net income 150,719 275,292
About Bank Tabungan
Headquartered in Jakarta, Indonesia, Bank Tabungan Negara
(Persero) -- http://www.btn.co.id/-- is a state-owned bank
involved in commercial banking. In 1974, Bank Tabungan was
appointed as the financing institution for low- to medium-income
housing in an effort to support the Government's housing
development program. Nonetheless, BTN suffered huge losses from
large corporate lending during the 1997 economic crisis. The
Government then recapitalized the Bank, and still wholly owns
it.
BTN is now the smallest state bank, but retains a dominating 31%
share in housing loans as of end-2004. In 2002, the Government
directed it to focus on commercial housing loans. Hence, its
subsidized housing loans dropped to 44% of its portfolio at July
2005 from 75% at end-2002.
* * *
The Troubled Company Reporter - Asia Pacific reported on
August 4, 2006, that Moody's Investors Service revised the
outlook for Bank Tabungan Negara's 'E' bank financial strength
rating to positive from stable. An earlier TCR-AP report on
May 22, 2006, stated that Moody's has upgraded Bank Tabungan
Negara's long-term deposit rating to B2 from B3, concluding the
review initiated on February 27, 2006. The outlook for the
revised rating is stable.
INDAH KIAT: Posts US$41-Million Net Loss Despite Higher Sales
-------------------------------------------------------------
For the six months ended June 30, 2006, PT Indah Kiat Pulp &
Paper Tbk's net revenues increased 6% to US$758.2 million, as
compared to a year ago, according to the company's financials.
The company reported a net loss of US$41.4 million, versus an
income of US$17.4 million in the previous year.
Revenues reflect increased sales from fine paper and pulp and
industrial paper business segments. Net loss was offset by a
foreign exchange loss of IDR24.5 million vs. a gain of
IDR41.6 million in the prior year.
Headquartered in Jakarta, Indonesia, PT Indah Kiat Pulp & Paper
Tbk is a manufacturing company engaged in the production of
paper and pulp.
Indonesian ratings company Pefindo gave the company's long-term
rating a idD, effective on April 14, 2001. Additionally,
Reuters reports that Indah Kiat delayed filing of its first
quarter 2006 financials, and that the company will not pay
dividends for the FY2005.
INTERNATIONAL NICKEL: Sales and Net Earnings Trimmed Down in Q2
---------------------------------------------------------------
PT International Nickel Indonesia reported sales of
US$258.6 million for the second quarter of 2006, a 1.8% decrease
from the US$263.4 million reported for the same quarter a year
ago, a company press release says.
Net earnings in the quarter ended June 30, 2006, were
US$79.7 million, or US$0.08 per share, down 15.1% from net
earnings of US$93.9 million a year ago.
For the first half, however, sales amounted to US$440.5 million,
a 1.4% increase from US$434.3 million in the same period in
2005. Net earnings for the first half of 2006 decreased 17.1%
to US$123.3 million from US$148.7 million in the first half of
2005.
The company also announced a reduced production goal for 2006,
from 167 million pounds of nickel in matte to approximately 159
million. The move was due to a transformer fire in one of the
company's furnaces in May.
International Nickel President and Chief Executive Officer Arif
Siregar said that the company's balance sheet remains strong.
"After dividend payments of US$109.3 million in the last 12
months, our cash balance at the end of the second quarter stood
at US$170.4 million, compared with US$239.2 million at the end
of the same period last year," Mr. Siregar said.
As of June 30, 2006, the company has current assets amounting to
US$436.92 million, against current liabilities of
US$76.67 million. Total assets were at US$1.64 billion and
total liabilities amount to US$1.32 billion.
The company's press release includes this results summary:
Second Quarter First Half
2006 2005 2006 2005
---- ---- ---- ----
Nickel in matte production
- thousand tonnes 15.90 18.70 33.30 36.00
- million pounds 35.00 41.30 73.30 79.40
Nickel in matte deliveries
- thousand tonnes 17.80 20.20 33.90 35.00
- million pounds 39.20 44.50 74.70 77.20
Average realized price (US$)
- per tonne 14,326 12,897 12,811 12,237
- per pound 6.5 5.85 5.81 5.55
Sales (in US$, millions) 258.60 263.40 440.50 434.30
Net earnings
(in US$, millions) 79.70 93.90 123.30 148.70
About International Nickel
Headquartered in Jakarta, Indonesia, PT International Nickel
Indonesia Tbk -- http://pt-inco.co.id/-- is a nickel producer
with a production facility and mine are in Sorowako, Sulawesi,
where it has a contract agreement until 2025. It produces
nickel matte, an intermediate product, from lateritic ores at
its integrated mining and processing facilities near Sorowako on
the island of Sulawesi. Inco Limited of Canada holds a 60.8%
stake of the company and Sumitomo Metal Mining Co Ltd. holds a
20.1% stake.
* * *
Standard and Poor's gave the company's long-term foreign and
local issuer credit both a BB- rating.
The company carries Fitch Ratings' BB long-term issuer default
and foreign currency long-term debt ratings.
=========
J A P A N
=========
SONY BANK: S&P Assigns C Fundamental Strength Rating
----------------------------------------------------
Standard & Poor's Ratings Services, on August 31, 2006, assigned
its 'C' Bank Fundamental Strength Rating to Sony Bank Inc. A
'C' rating ranks fifth out of nine possible BFSRs. At the same
time, the long-term and short-term counter-party credit ratings
on the 'A-/A-2' bank were affirmed. The outlook on the long-
term rating is stable.
"Sony Bank has been in operations for five years, giving enough
time for it to develop a track record we can use to assess the
bank's business risk and financial profile on a standalone
basis," said Standard & Poor's credit analyst Koichi Iwama.
"The BFSR reflects the stabilization of the bank's
profitability, and its favorable asset quality and
capitalization."
Sony Bank has successfully expanded its franchise by providing
individual customers with highly convenient online deposit
accounts and lending services, mainly housing loans. The bank's
biggest revenue contributors are housing loans and foreign
currency deposit accounts. Although delayed in hitting its
initial targets, Sony Bank first achieved profitability in the
fourth quarter ended March 31, 2005, and it has continued to
record quarterly profits, indicating that earnings are
stabilizing. However, the bank's profit margins are slim, as it
strategically avoids large investment risks and instead focuses
on offering competitive interest rates and transaction fees to
attract individual customers.
The quality of Sony Bank's assets is sound, as the majority of
its lending to individuals is backed by collateral or
guarantees. In addition, the bank uses external credit ratings
to stringently manage risks related to its bond investments.
Moreover, capitalization stands at a healthy level compared to
its risk volume, with Tier 1 capital ratio of 9.2% as of
March 31, 2006.
Capital quality is also good, as the bank has an extremely
limited amount of deferred tax assets, which tend to indirectly
inflate capital, and it does not issue preferred shares, which
Standard & Poor's considers to be low-quality capital.
Moreover, Sony Bank has abundant liquidity, with large holdings
of deposits and highly marketable securities.
BFSRs complement Standard & Poor's counterparty credit ratings
on banks by providing an indicator of the intrinsic credit
profile of a bank. A BFSR indicates the prospect that a bank
would need to seek external assistance in the event of financial
distress. The BFSR does not presume any potential capital
contribution from a parent company, regulator, or government.
The counterparty credit rating on Sony Bank incorporates the
expectation that it would receive backing from the Sony group in
the event of financial distress.
Sony Bank is a Japanese commercial bank established in April
2001. It has neither real branches nor own automated teller
machines and all procedures are done on online banking and
telephone. It is a subsidiary of Sony Financial Holdings and a
member of Sony Group. Foreign currency deposits, investment
trust, and home loan are the main profit-making sources.
KANSAI URBAN: Moody's Assigns 'D' Financial Strength Rating
-----------------------------------------------------------
Moody's Investors Service, on September 1, 2006, assigned its A1
long-term and Prime-1 short-term deposit ratings and D bank
financial strength rating to Kansai Urban Banking Corporation.
The outlook for all the ratings is stable. The deposit ratings
reflect Kansai Urban's D BFSR, as well as its organizational
status as a consolidated subsidiary of Sumitomo Mitsui Banking
Corporation.
The A1/Prime-1 deposit ratings of Kansai Urban are based on
Moody's strong expectation that the management of Sumitomo
Mitsui is highly willing to arrange appropriate financial and
capital support to Kansai Urban as necessary, as evidenced by
the capital injection to the former Kansai Bank from the former
Sumitomo Bank in 1999. Moreover, the rating agency expects
Sumitomo Mitsui Banking to closely and pro-actively monitor the
performance and capital conditions of Kansai Urban so as to
minimize and avoid any possible stress situation. Kansai
Urban's client base is characterized by limited overlap with
Sumitomo Mitsui's, which indicates the strategic importance of
Kansai Urban in Sumitomo Mitsui Banking's overall strategy. In
Moody's view, Sumitomo Mitsui Banking regards Kansai Urban as
its core bank in its aim to cover a broad range of customers in
Osaka and intends to maintain Kansai Urban as a consolidated
subsidiary bank.
Kansai Urban's D BFSR reflects its own financial fundamentals.
The bank, based in Osaka, has been increasing its loans by
capitalizing on its solid customer base in Osaka's SME and
retail loan market and on its credibility as a member of
Sumitomo Mitsui Banking.
As a result of Kansai Urban's quality enhancement initiative and
improvement in the operating environment, Moody's views the
bank's asset quality as having substantially strengthened, with
a reduced possibility of future performance deterioration.
Furthermore, due to its loan growth, Kansai Urban has not needed
to invest excessively in JGB or stocks. Therefore, its market
risk is less than other Japanese regional banks'.
Getting the advice from Sumitomo Mitsui, Kansai Urban is
increasing the sophistication of its credit risk management.
Moody's rating analysis notes that Kansai Urban is in the middle
of introducing integrated risk management.
On the other hand, the BFSR is constrained by Kansai Urban's
relatively low Tier I ratio, although this situation is in turn
partly attributable to its loan growth. The bank's significant
concentration risk - relative to its Tier I capital, especially
its loan exposures to some industries, such as real estate -
also weighs on the rating.
The D BFSR of Kansai Urban differs from that of Sumitomo Mitsui,
reflecting the fact that Kansai Urban is neither a wholly owned
banking subsidiary of the Sumitomo Mitsui Financial Group, nor
of Sumitomo Mitsui Banking.
Possible future positive BFSR drivers include improvements in
capitalization and decreases in concentration risk. On the
other hand, weakening in capital, stemming from possible rise in
concentration risk, or failure to manage market risks could
negatively affect Kansai Urban's BFSR.
Possible future positive credit rating drivers include an
Sumitmo MItusi Banking's credit ratings upgrade. On the other
hand, any developments that indicate a weaker relationship with
Sumitomo Mitsui Banking, such as becoming its non-consolidated
subsidiary or declines in Kansai Urban's strategic importance to
Sumitomo Mitsui Banking, could negatively affect Kansai Urban's
credit ratings. An Sumitomo Mitsui Banking's credit ratings
downgrade would also negatively affect Kansai Urban's credit
ratings.
The stable rating outlook reflects Moody's expectation that the
solid and cohesive relationship between Kansai Urban and
Sumitomo Mitsui Banking will continue, and that Kansai Urban
will maintain its franchise in the Osaka markets.
Headquartered in Osaka, Japan, Kansai Urban Banking Corporation
is a consolidated subsidiary bank of Sumitomo Mitsui Banking
Corporation. Its consolidated total asset size was
JPY2.6 trillion as of March 2006.
XM SATELLITE: FCC Grants New Certification for XM Radios
--------------------------------------------------------
The Federal Communications Commission issued new grants of
authority for three XM Satellite Radio Inc. radios with FM
transmitters after determining that the radios are in compliance
with FCC regulations. These XM plug-and-play radios -- Audiovox
Xpress, Delphi RoadyXT, and XM Sportscaster -- are three of XM's
primary products at retail.
XM is notifying its manufacturers to resume production of these
devices.
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
=========
KOREA DEVELOPMENT: Posts Highest Capital Ratio Among All Banks
--------------------------------------------------------------
Korea Development Bank posted an 18.43% BIS capital ratio as of
the end of June 2006, unchanged from the end of the year 2005,
according to a press release from the 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 result shows that KDB has the highest BIS capital ratio
among all South Korean banks, and is way above the 13.08%
average.
Specialized banks, under which category KDB falls, post an
average of 13.88% BIS capital ratio as of the end of June 2006,
but only KDB is higher than the overall average.
National Agricultural Cooperative Federation posts the highest
improvement, with a 0.21 percentage point improvement to 12.02%
from 11.81% at the end of 2005. Export-Import Bank of Korea, on
the other hand, loses 1.16 percentage points to 12.71% as of the
end of June 2006.
The FSC release showing preliminary data of South Korean bank's
BIS capital ratios include these data for specialized banks:
BIS Capital Ratio by Bank
Dec. Dec. Dec. Dec. June
2002 2003 2004 2005 2006 Change
---- ---- ---- ---- ---- ------
Korea Development
Bank 16.81 16.22 18.08 18.43 18.43 -
Industrial Bank
of Korea 10.43 9.88 11.17 11.11 11.16 0.05
Export-Import
Bank of Korea 14.97 14.41 12.86 13.87 12.71 -1.16
Nat'l Agricultural
Cooperative
Federation 10.77 10.66 11.43 11.81 12.02 0.21
Nat'l Federation of
Fisheries
Cooperatives 10.61 11.71 11.21 12.59 11.96 -0.63
Specialized Banks 13.22 12.77 13.71 14.09 13.88 -0.21
Total 11.33 11.16 12.08 13.00 13.08 0.08
About Korea Development Bank
Korea Development Bank -- http://www.kdb.co.kr/-- is South
Korea's long-term funds provider to major industrial projects.
The company is wholly owned by the Korean Government. KDB also
offers short and long-term loans, investments, guarantees and
trusts to international finance. Its major funding sources are
Industrial Finance Bonds, client deposits, special-purpose funds
and foreign-currency funds.
Moody's Investors Service gave KDB a 'D-' Bank Financial
Strength Rating effective on January 24, 2006.
LG CARD: Shinhan Commences Four-Week Due Diligence Exercise
-----------------------------------------------------------
The Troubled Company Reporter - Asia Pacific reported on
August 17, 2006, that Shinhan Financial Group was chosen to
enter exclusive negotiations for LG Card Co. after offering to
buy an 85.7% stake at KRW68,410 per share, costing an aggregate
of KRW6.7 trillion.
In an update, Na Jeong-ju of The Korea Times relates that
Shinhan has launched due diligence on the card issuer on
August 31, 2006. The due diligence exercise is expected to be
completed in four weeks.
According to The Times, Shinhan set up an ad-hoc team,
comprising more than 50 financial experts and working-level
officials from its banking and card subsidiaries, to evaluate LG
Card's corporate and brand values.
The Times cites a Shinhan official as saying that Shinhan may
extend the due diligence period to ensure a thorough inspection
of LG Card's books.
Depending on the outcome of the due diligence, the final sales
price will be set between KRW65,000 and KRW71,000 per share,
according to Shinhan, explaining that during the evaluation
period, inspectors can find factors that can push the initial
bid price either up or down.
The Times notes that Shinhan and LG Card creditors are expected
to sign an agreement on the sale as early as October.
About LG Card Co.
Headquartered in Seoul Korea, LG Card Co. --
http://www.lgcard.com/-- provides installment finance services
and credit card, as well as leasing services to credit worthy
companies while acquiring valuable assets from merchant banks
and leasing firms. LG Card also finances families wishing to
purchase big ticket items such as automobiles, appliances and
computers.
At the end of October 2003, LG Card had KRW3.24 trillion more
debt than assets and had faced threats of liquidity crisis and
court receivership. LG Card has been in the hands of creditors
since it was rescued from bankruptcy through a KRW5-trillion
(US$4.78 billion) debt-for-equity swap and a further KRW1
trillion bailout in late 2004. Creditors are hoping to recover
the bailout amount through a sale of the credit card issuer in
2006.
* Banks' Bad Loan Ratio Falls to Lowest Level in 7 Years
--------------------------------------------------------
Seoul (ANTARA News/Asia Pulse) -
The bad loan ratio for South Korean banks hit a record low in
the first half of 2006, Antara News reports, citing the
Financial Supervisory Service.
According to Asia Pulse, the ratio fall comes as the amount of
new bad loans decreased and existing bad loans were cut back
with more loan-loss provisions.
The combined non-performing loan ratio for 18 lenders, including
Kookmin Bank and Woori Bank, was at 1.02% as of June 30, 2006,
compared with the 1.22% as of December 31, 2005, the FSS said.
Antara notes that the current bad loan ratio represents the
lowest level since 1999, when it stood at 12.9%.
===============
M A L A Y S I A
===============
AYER HITAM: Securities Commission Junks Restructuring Appeal
------------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
March 28, 2006, Ayer Hitam Tin Dredging Malaysia Bhd filed an
appeal on March 23, pertaining to the Securities Commission's
order rejecting the Company's proposed restructuring scheme.
According to the TCR-AP report, the Securities Commission turned
down the Company's restructuring plan on February 27, 2006,
saying that it was not a comprehensive proposal capable of
resolving all the Company's financial issues.
The proposed scheme includes a capital reduction, a rights
issue, private placement and debt settlement.
In an update, Ayer Hitam disclosed that the SC, on August 22,
2006, rejected the appeal.
About Ayer Hitam
Headquartered in Kuala Lumpur, Malaysia, Ayer Hitam Tin Dredging
Malaysia Berhad -- http://www.ahtin.com.my/-- is involved in
property development and the trading of promotional products and
services in Malaysia. The Company is also engaged in the
trading of uninterrupted power supply equipment and magnetic
fuel treatment systems and the provision of investment holding,
nominee services, hotel development and management and
renovation services.
The Company has been incurring losses in the past years and has
defaulted on several loan facilities. As of May 31, 2006, Ayer
Hitam's payment defaults have reached MYR40 million. The
Company has presented a restructuring proposal, which was
rejected by the Securities Commission after determining that the
Scheme is not a comprehensive proposal capable of resolving all
the financial issues faced by the Company.
CHASE PERDANA: Second Quarter Loss Narrows to MYR0.9 Million
------------------------------------------------------------
Chase Perdana Berhad submitted for public release its unaudited
financial report for the quarter ended June 30, 2006.
The group's revenue increased by MYR25.2 million for the current
quarter to MYR28.8 million as compared with the MYR3.6-million
revenue in the same quarter last year. The increase in revenue
has reduced the group's loss by MYR0.9 million for the current
quarter to MYR2.7 million as compared with the MYR3.6-million
loss in the quarter ended June 30, 2005.
The group registered a revenue of MYR28.8 million for the
current quarter representing a decrease of MYR4.7 million as
compared with the MYR33.5 million for the preceding quarter
mainly due to decrease in construction billings.
The group recorded a lower profit from operating activities of
MYR2 million in the current quarter as compared with
MYR3 million in the preceding quarter mainly due to lower gross
profit margin.
As of June 30, 2006, the group accumulated losses of
MYR156.35 million.
The group's June 30, 2006, balance sheet revealed strained
liquidity with current assets of MYR214.67 million available to
pay current liabilities of MYR275.078 million coming due within
the next 12 months. The balance sheet also showed total assets
of MYR414.51 million, total liabilities of MYR361.8 million and
total shareholders' equity of MYR52.72 million.
There was no dividend declared for the quarter under revenue.
Chase Perdana's Second Quarter Report and its accompanying notes
are available for free at:
http://bankrupt.com/misc/tcrap_chaseperdana090206.xls
http://bankrupt.com/misc/tcrap_chaseperdananotes090206.doc
http://bankrupt.com/misc/tcrap_chaseperdanalitigation090206.pdf
About Chase Perdana
Headquartered in Kuala Lumpur, Malaysia, Chase Perdana Berhad
-- http://www.chaseperdana.com.my/-- is engaged in
construction, property management, property development and
investment holding. Its other activities include oil palm
processing. Operations are carried out in Malaysia, India and
British Virgin Islands.
The Company has been suffering continuous losses since fiscal
1999. As of March 31, 2006, the Company's accumulated losses
stands at MYR138,579,000.
LITYAN HOLDINGS: Books MYR7.58-Mil. Net Loss in Second Quarter
--------------------------------------------------------------
Lityan Holdings Berhad released on August 29, 2006, its
unaudited financial report for the second quarter ended June 30,
2006.
For the quarter under review, the group booked a MYR7.58-million
net loss on MYR9.49-million revenue. The current revenue figure
is an improvement compared to MYR6.55-million revenue in the
same quarter last year. However, the net loss for the quarter
under revenue has increased from MYR4.83 million in the quarter
ended June 30, 2005.
As compared with the preceding financial year to date, the group
had recorded improved revenue of 62% from MYR11.40 million to
MYR18.44 million but its net loss increased 25% from MYR6.56
million to MYR8.18 million.
The higher loss for the quarter under review was mainly due to
the foreign currency translation loss of MYR4.55 million in the
group's Philippine operations and higher interest rate imposed
during the quarter.
The June 30, 2006, balance sheet revealed the group has current
assets of MYR38,695,000 available to pay total liabilities of
MYR142,144,000 coming due within the next 12 months. The
company has total assets of MYR70,551,000 and total liabilities
of MYR145,676,000, resulting into a stockholders' deficit of
MYR78,839,000.
Lityan Holding's Second Quarter report is available for free at:
http://bankrupt.com/misc/tcrap_lityanholdings090106.xls
About Lityan Holdings
Headquartered in Selangor Darul Ehsan, Malaysia, Lityan Holdings
Berhad -- http://www.lityan.com.my/-- sells and provides
maintenance services and rental of computer equipment,
peripherals, telecommunication equipment and related services.
The Company's other activities include provision of building
maintenance and management services, developing and marketing of
new client-server programming tools and application software,
operation of public mobile data network, property investment and
investment holding. The Group carries out its operations in
Malaysia and the Philippines.
On May 10, 2005, the Company was classified as an affected
listed issuer pursuant to Bursa Malaysia Securities Berhad's
Practice Note 17 category. On January 16, 2006, the Company
entered into a conditional Restructuring Agreement to undertake
the Proposed Restructuring Scheme with the intention of
restoring the Company onto stronger financial footing via an
injection of new viable businesses.
The total amount of debts defaulted by Lityan Holdings Berhad
and its subsidiaries as of June 30, 2006, has reached
MYR12,565,005.
PAN MALAYSIAN: Accepts Unsecured Loan from Unit
-----------------------------------------------
Pan Malaysian Industries Berhad, on August 30, 2006, accepted an
unsecured loan of MYR5 million from its subsidiary, Metrojaya
Berhad, for the purpose of financing the company's working
capital requirements. The loan is granted for a period of one
year from the date of drawdown on September 1, 2006, at an
interest rate of 6% per annum.
The loan does not have any material effect on the consolidated
earnings and net assets of Pan Malaysian based on its last
audited financial statements for the financial year ended
March 31, 2006.
The loan also does not have any effect on the share capital and
shareholding structure of Pan Malaysian.
About Pan Malaysian Industries
Headquartered in Kuala Lumpur, Malaysia, Pan Malaysian
Industries Berhad is involved in the operation of departmental
and specialty stores and hypermarket. Its other activities
include investment and property holding. The Group's operation
is predominantly in Malaysia, Hong Kong and Singapore.
The Company has been suffering recurring losses since 1999.
Moreover, as of March 31, 2006, the Company's balance sheet
revealed total assets of MYR733,190,000 and total liabilities of
MYR782,051,000 resulting into a stockholders' deficit of
MYR48,861,000.
PILECON ENGINEERING: 2nd Quarter Pre-tax Loss Shrinks to MYR0.7M
----------------------------------------------------------------
Bursa Malaysia Securities Berhad received on August 29, 2006,
Pilecon Engineering Berhad's unaudited financial report for the
quarter ended June 30, 2006.
During the financial quarter under review, the group recorded a
turnover of MYR6 million with operating loss before share of
profits from associated companies of MYR3.7 million. The group
recorded a six-month turnover of MYR9.6 million with operating
loss before share of profits from associated companies of
MYR9.5 million. The loss of the group is due to lower turnover
recorded by the property division and continued high finance
cost.
The group recorded a turnover in the second quarter of 2006 of
MYR6 million as compared to MYR3.6 million in the first quarter
of 2006. The group's loss before tax in the second quarter of
year 2006 was MYR0.07 million as compared to loss before tax of
MYR3.6 million in the preceding quarter. The lower loss
recorded for the second quarter of 2006 as compared to the loss
recorded for the first quarter of 2006 is due to gain on
deconsolidation of a subsidiary company amounting to
MYR1.4 million.
The group's accumulated losses stood at MYR216.714 million as of
June 30, 2006.
As of June 30, 2006, the group's balance sheet revealed strained
liquidity with current assets of MYR261.39 million available to
pay current liabilities of MYR570.145 million. The group has
total assets of MYR586.354 million, total liabilities of
MYR571.317 million, and total stockholders' equity of
MYR15.1 million.
There was no dividend recommended for the quarter under review.
The company's unaudited financial report is available for free
at:
http://bankrupt.com/misc/tcrap_pileconengineering090106.xls
About Pilecon Engineering
Headquartered in Selangor Darul Ehsan, Pilecon Engineering
Berhad is engaged in building construction and civil engineering
works. The Company is also involved in trading and hiring of
plant and equipment for foundation engineering and civil
engineering works. It also undertakes resort operation and
complex management services. The Group operates in Malaysia,
Hong Kong and Singapore.
The Company is currently undergoing a MYR354-million debt-
restructuring exercise. The scheme, however, was placed in
jeopardy after the Securities Commission's rejection of an
inter-conditional proposal to acquire a piece of land in Johor
for MYR75 million. The Commission also rejected the Company's
scheme of arrangement with certain secured creditors.
PROTON HOLDINGS: Subscribes Shares in Subsidiary
------------------------------------------------
Proton Holdings Berhad subscribed on August 24, 2006, to an
additional 7,168,827 Redeemable Convertible Preference Shares of
MYR0.10 each in its subsidiary, Lotus Advance Technologies Sdn
Bhd, at an issue price of MYR1 per RCPS for a total cash
consideration of MYR7,168,827.
After the subscription, the Proton will now hold a total of
19,176,627 RCPS in Lotus Advance.
Lotus Advance has subscribed to an additional 7,168,827 shares
of MYR1 each in Miyazu (Malaysia) Sdn Bhd, a 51% subsidiary of
Lotus Advance, for a total cash consideration of MYR7,168,827.
Lotus Advance will then hold a total of 8,953,825 shares
representing 51% in Miyazu.
About Proton Holdings
Headquartered in Selangor Darul Ehsan, Malaysia, Perusahaan
Otomobil Nasional Berhad or Proton Holdings Berhad
-- http://www.proton-edar.com.my/-- is engaged in
manufacturing, assembling, trading and provision of engineering
and other services in respect of motor vehicles and related
products. Its other activities include property development,
trading of steel and related products, engine and technologies
research, development of automotive related technologies,
investment holding, importation and distribution of motor
vehicles, related spare parts and accessories, holds
intellectual property, provides engineering consultancy,
operates single make race series and carries out specific
engineering contracts. The Group's operations are carried out
in Malaysia, England, Australia, Socialist Republic of Vietnam
and the United States.
Proton was reported to be among Malaysia's worst-performing
companies in 2005, after competition from foreign carmakers and
a lack of new models lost the firm local market share and
subsequently led it into a loss. It has since brought in a new
chief, sold its loss-making MV Agusta motorbike firm and pledged
to find a new technology partner. The Company has been under
increasing pressure, with its share of domestic sales falling to
44% from 75% over the past decade.
The Troubled Company Reporter - Asia Pacific reported on May 4,
2006, that Proton was expected to finalize a recovery plan and
seal an alliance with a strategic partner by the end of this
year.
TENCO BERHAD: June 30 Balance Sheet Shows Strained Liquidity
------------------------------------------------------------
Tenco Berhad submitted for public release its unaudited
financial report for the first quarter ended June 30, 2006.
The group's revenue of MYR16,986,000 for the quarter under
review was lower by MYR1,598,000 compared with that of the
preceding quarter. Operating profit before interest on
borrowing of the quarter was MYR154,000 compared with the
MYR418,000 profit in the preceding quarter, which was mainly
attributable to impairment loss in respect of goodwill of
MYR501,000. However, the group received a dividend income of
MYR423,000 from its overseas investment.
For the quarter under review, the group registered a revenue of
MYR16,986,000 and a net profit after taxation of MYR54,000 after
accounting for dividend income of MYR423,000. At the operating
level, the Group achieved an operating profit of MYR154,000
compared to an operating profit of MYR232,000 in the same
quarter last year. The decrease was mainly due to impairment
loss in respect of goodwill of MYR501,000.
As of June 30, 2006, the group's balance sheet revealed weak
liquidity with current assets of MYR39,664,000 available to pay
current liabilities of MYR49,204,000 coming due within the next
12 months. The group has a net current deficit of MYR9,540,000.
The group has total assets of MYR51,088,000, total liabilities
of MYR49,309,000, and stockholders' equity of MYR1,779,065.
The group's accumulated losses stood at MYR50,087,840 as of
June 30, 2006.
There was no dividend proposed or paid for the quarter under
review.
Lack of working capital, continuous price hike of petroleum
based raw materials and the stiff competition will continue to
impact the group's performance.
Tenco Berhad's First Quarter Report and its accompanying notes
are available for free at:
http://bankrupt.com/misc/tcrap_tencoberhad090206.xls
http://bankrupt.com/misc/tcrap_tencoberhadnotes090206.doc
About Tenco Berhad
Headquartered in Selangor, Malaysia, Tenco Berhad's principal
activities are manufacturing and selling of polymer, chemicals,
adhesive, decorative coatings and related products, building
materials, equipment and consumer products. Other activities
include investment holding and provision of management services.
The Group operates in Malaysia, Singapore and Canada.
Tenco is classified as a Practice Note 17 company because its
current shareholders' equity on a consolidated basis is less
than 25% of its issued and paid up capital, and it defaulted on
various loan facilities and is unable to provide a solvency
declaration. Tenco is required to submit its financial
regularization plan to relevant authorities not later than
January 8, 2007.
TRU-TECH HOLDINGS: Second Quarter Net Loss Widens to MYR3.37M
-------------------------------------------------------------
Tru-Tech Holdings Berhad has submitted for public release its
unaudited financial report for the second quarter ended June 30,
2006.
For the quarter under review, the group booked revenue of
MYR4,986,000, lower than the MYR5,279,000 revenue it posted in
the same quarter last year. For the six months to June 30,
2006, the group recorded a revenue of MYR10,427,000 as against
MYR10,096,000 in the six months ended June 30, 2005.
The group incurred a net loss of MYR3,368,000 net loss in the
quarter under review, higher than the MYR1,990,000 net loss
recorded in the same quarter last year. As of June 30, 2006,
the group has accumulated MYR170,815,000 in losses.
The group's June 30, 2006, balance sheet showed strained
liquidity with current assets of MYR4,468,000 available to pay
current liabilities of MYR133,902,000 coming due within the next
12 months.
There was no dividend declared or recommended for the period
under review.
Tru-Tech's Second Quarter Report is available for free at:
http://bankrupt.com/misc/tcrap_trutechholdings090106.xls
About Tru-Tech Holdings
Headquartered in Ulu Tiram Johor, Malaysia, Tru-Tech Holdings
Berhad's principal activity is the manufacturing of electronic
components and products. Its other activities include
development and distribution of switch-mode power supplies and
investment holding. The Group operates in Malaysia, Singapore,
United States and United Kingdom.
On May 27, 2004, Tru-Tech announced a series of proposed
corporate exercises to address its losses. These include the
incorporation of a new entity as Tru-Tech's holding company, and
the disposal of its existing contract-assembly business to a
third party. Much of Tru-Tech's future performance will hinge
on its ability to restructure its debts and resolve its poor
liquidity. Bursa Malaysia Securities Berhad, on May 26, 2006,
decided to suspend trading in the securities of Tru-Tech
Holdings Berhad from June 5, 2006, as the Company has failed to
regularize its financial condition pursuant to the Bourse's
Listing Requirements.
The Company's June 30, 2006, balance sheet showed stockholders'
deficit of MYR91,052,000, resulting from total liabilities of
MYR133,902,000 exceeding total assets of MYR42,850,000.
UNITED BINTANG: Second Quarter Pre-Tax Loss Drops 34.36%
--------------------------------------------------------
United Bintang has submitted for public release its financial
report for the second quarter ended June 30, 2006.
For the quarter under review, the group's pre-tax loss dropped
34.36% to MYR0.85 million against a pre-tax loss of
MYR1.295 million in the same quarter last year. The improvement
is due to the gain on disposal of property, plant and equipment
and receipt of machinery rental during the reporting quarter.
Group revenue, meanwhile, has increased by 16.35% from
MYR8.477 million to MYR9.863 million arising from improvement in
export business by 24%.
The second quarter pre-tax loss has increased marginally by
2.78% against the preceding quarter's MYR0.827 million due to
higher overseas auction commission incurred on increased
overseas auctions by 65.12%. As of June 30, 2006, the group has
accumulated MYR28,885,000 in losses.
The Group recorded a revenue of MYR9.863 million for the second
quarter ended June 30, 2006, an increase of 53.20% from the
preceding quarter of MYR6.438 million arising from an increase
of 65.12% in export business but offset by reduction in domestic
business by 48.16%.
The June 30, 2006, balance sheet revealed that the group has
MYR22,630,000 in current assets available to pay MYR15,203,000
in current liabilities. The group has total assets of
MYR40,323,000, total liabilities of MYR15,203,000 and total
shareholders' equity of MYR25,120,000.
There was no interim dividend recommended for the financial
period ended June 30, 2006.
The company's Second Quarter Report and its accompanying notes
are available for free at:
http://bankrupt.com/misc/tcrap_unitedbintang090106.xls
http://bankrupt.com/misc/tcrap_unitedbintang090106.doc
About United Bintang
United Bintang Berhad -- http://www.ubb.com.my/-- is
principally engaged in investment holding, trading in heavy
equipment and spare parts, and rental of heavy machinery. The
Company's wholly owned subsidiary is United Bintang Machinery
Sdn Bhd, which is engaged in trading and rental of heavy
machinery. UBB handles a number of brands, such as Caterpillar,
Komatsu, Hitachi, Kobelco, Case, Terex, P&H and Kato.
The company has been booking continued losses since fiscal 1999.
As of June 30, 2006, the group has accumulated MYR28,885,000 in
losses from MYR28,914,000 at June 30, 2005.
===============
M O N G O L I A
===============
* Fitch Affirms Mongolia's 'B+' Sovereign Rating
------------------------------------------------
Fitch Ratings has today affirmed Mongolia's Long-term foreign
currency Issuer Default Rating of 'B+' and Long-term local
currency IDR of 'B+'. At the same time, the agency affirmed the
country's Short-term IDR of 'B' and a Country Ceiling rating of
'B+'. The Outlook on the ratings is Stable.
Fitch's ratings balance Mongolia's strong external finances and
favorable macroeconomic performance against a high government
debt burden, as well as recent setbacks to the structural reform
agenda.
Mongolia's external finances continue to be a fundamental rating
strength. The current account position is forecast to stay
above 4% of GDP for 2006, thanks to strong commodity exports and
travel receipts. Mongolia's liquidity ratio is forecast to hit
around 601%, thanks to rising official reserves and commercial
bank foreign assets. This compares well with the 170% median
for the 'B' rating category. Foreign exchange reserves are
forecast to climb to a record high of USD557bn at end-2006,
allowing the gross financing requirement to drop to only 3% of
reserves, a sharp improvement from the 130% recorded during the
2003 period of the Russian debt resolution. On the back of
these external strengths, gross external debt to current
external receipts is expected to fall to 85% in 2006 compared
with the 'B' median of 94%. Thanks to the concessionary and
medium to long-term nature of Mongolia's debt, the country's
debt service is forecast to stay manageable at about 6% of CXR.
Accordingly, Mongolia's economy continued to perform well in
2005. GDP growth was 6.2%, higher than the 5.3% median among
Fitch-rated Asian economies. Favorable weather conditions
benefited Mongolia's livestock industry and agricultural
production, which account for 20% of GDP, while the 23% surge in
merchandise exports also provided upside support to the economy.
Fitch forecasts Mongolia's GDP to register growth rates of 5% to
6% in 2006 and 2007.
Nonetheless, Mongolia's ratings remain constrained by public
finance concerns, setbacks to the structural reform agenda and
worries about the banking sector's pace of expansion. While the
cyclical upturn in commodity-related revenue and delayed capital
spending buoyed the general government to a surplus of 3.2% in
2005 ('B' median deficit: 1.5%), upside risk to fiscal spending
in the areas of social assistance as well as current transfers
to the regions may undermine the health of public finances in
the run-up to the 2008 general elections. Extensive tax reforms
render a considerable level of uncertainty to fiscal and public
debt assumptions in 2007. Fitch forecasts the general
government balance to revert to a deficit of 1.6% of GDP and the
public debt burden to register 69% of GDP in 2006, which is
still higher than the 'B' median of 41%. The lack of a domestic
government bond market beyond short-term treasury bills leaves
the government reliant on external creditors.
Mongolia's parliamentary politics have posed setbacks to earlier
market-friendly efforts to spur foreign direct investment and
trade liberalization. 'It is difficult to gauge the extent of
fallout from political uncertainty and sudden policy amendments
that may have shaken foreign investor confidence and delayed
official donor funding,' said Ai Ling Ngiam, associate director
in the Asian Sovereigns team. The newly installed parliament
has succumbed to popular pressure to more "equitably" distribute
recent supernormal profits reaped by the key minerals sector.
Mining legislation has also been overhauled and the sudden
imposition of an onerous windfall profits tax has dealt a severe
blow to foreign companies operating in the sector. An impending
industry shake-up could also lead to greater public sector
involvement, and if handled poorly, the re-emergence of illegal
mining activities. Re-directed FDI efforts towards other non-
mining sectors may take time to bear fruit and face heated
competition from other companies.
Finally, Fitch remains concerned about rapid credit growth in
the banking sector, including foreign currency-denominated
lending, that could represent a challenge for risk management
and threaten future asset quality. Fraudulent activities within
the savings and credit cooperatives segment may be indicative of
signs of stress in the financial system. Increasing
dollarisation of the financial system also imparts a potentially
powerful link from banking sector volatility to external
liquidity risks.
=====================
P H I L I P P I N E S
=====================
ATLAS CONSOLIDATED: Posts PHP233-Mln Net Loss in 2nd Half 2006
--------------------------------------------------------------
Atlas Consolidated Mining and Development Corporation posted a
consolidated net loss of PHP233 million for the second half of
2006, higher by PHP103 million compared to the PHP130-million
net loss posted in the same period last year. The 79% increase
was due mainly to higher operating expenses incurred during the
first two quarters.
Consolidated total assets of the company as of June 30, 2006,
amounted to PHP2.237 billion, an increase of PHP454 million from
the PHP1.783 billion in assets as of December 31, 2005.
Consolidated total liabilities as of June 30, 2006, amounted to
PHP4.094 billion, a decrease of PHP724 million from PHP4.818
billion as of December 31, 2005. This means a shareholders'
equity deficit of PHP1.857 billion as of end-June 2006.
Consolidated current ratio as at the end of the interim period
were recorded at 0.121 as compared to 0.011 as of December 31,
2005.
The company notes that for the quarter ended June 30, 2006, its
cash used in operating activities amounted to PHP409 million.
Net cash inflows during the period was PHP357 million, which
included net cash outflows in investing activities of
PHP123 million and net cash inflows from financing activities of
PHP889 million.
A full-text copy of Atlas Consolidated's financial report is
available for free at:
http://www.pse.org.ph/html/ListedCompanies/pdf/2006/AT_A17Q_Jun2006.pdf
About Atlas Consolidated
Headquartered in Mandaluyong City, Philippines, Atlas
Consolidated Mining and Development Corporation was established
through the merger of assets and equities of three Soriano
controlled pre-war mines, the Masbate Consolidated Mining
Company, IXL Mining Company and the Antamok Goldfields Mining
Company. The Company is engaged in mineral and metallic mining
and exploration that primarily produces copper concentrates and
gold with silver and pyrites as major by-products. The
Company's copper mining operations are centered in Toledo City,
Cebu, where two open pit mines, two underground mines and
milling complexes (concentrators) are located. The Cebu copper
mine ceased operations in 1994. Activities after the shutdown
were limited to safeguarding and maintaining the property, plant
and equipment at the minesite. The closure has brought huge
losses to the mining firm.
In January 2004, Atlas decided to rehabilitate the company and
its assets since copper and nickel prices have recovered.
According to a TCR-AP report on June 1, 2006, Atlas reported a
capital deficiency of PHP3.035 billion for the year ended
December 31, 2005. Moreover the Company's auditor, Jaime F. Del
Rosario, of Sycip Gorres Velayo, raised substantial doubt on the
Company's ability to continue as a going concern.
EPIXTAR CORP: Exclusive Plan Filing Deadline Extended to Oct. 1
---------------------------------------------------------------
The United States Bankruptcy Court for the Southern District of
Florida in Miami gave Epixtar Corp. and its debtor-affiliates
until:
a) Oct. 1, 2006, to file a chapter 11 reorganization plan;
and
b) Nov. 30, 2006, to solicit acceptances of that plan.
In their request, the Debtors told the Court that the size and
complexity of their cases warrant extension of their exclusive
periods.
The Debtors are in negotiations with the Official Committee of
Unsecured Creditors regarding treatment that could be afforded
to the Committee under a proposed plan of reorganization.
In addition, the Debtors' affiliate in the Philippines is in the
process of filing the equivalent of a plan of reorganization,
which will contribute to their reorganization efforts.
About Epixtar
Based in Miami, Florida, Epixtar Corp. fdba Global Assets
Holding Inc. -- http://www.epixtar.com/-- acquires or
establishes companies specialized in mass-market communication
products. Epixtar operates through its subsidiaries, National
Online Services Inc. and One World Public. Epixtar currently
maintains two contact centers in Manila, Philippines, with
developmental plans to expand to additional centers over the
next 24 months. The Company and its debtor-affiliates filed for
Chapter 11 protection on October 6, 2005 (Bank. S.D. Fla. Case
No. 05-42040). Michael D. Seese, Esq., at Kluger, Peretz,
Kaplan & Berlin, P.L., represents the Debtors in their
restructuring efforts. Glenn D. Moses, Esq., at Genovese
Joblove & Battista, P.A., represents the Company's Official
Committee of Unsecured Creditors. When the Debtors filed for
protection from their creditors, they listed total assets of
US$30,376,521 and total debts of US$39,158,724.
EQUITABLE PCI: EBC Investments Accepts Sy Family's Tender Offer
----------------------------------------------------------------
The Troubled Company Reporter - Asia Pacific reported on
August 31, 2006, that 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 for a total
consideration of PHP7,250,253,016, payable in cash.
Accordingly, in a filing with the Philippine Stock Exchange,
Equitable PCI advises that at a special meeting, the Board of
Directors of EBCII resolved that EBCII accepts the offer.
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.
METROPOLITAN BANK: Declares PHP980-Million Cash Dividend
--------------------------------------------------------
Metropolitan Bank & Trust Company discloses that in a special
meeting held on August 11, 2005, its board of directors declared
a 3% cash dividend. The declaration translates to PHP0.60 per
share based on the par value of PHP20 per share.
In a disclosure to the Philippine Stock Exchange, Metrobank
assistant corporate secretary Antonio Viray says the dividends
will be payable to all stockholders of record as of a date to be
fixed by the President after approval by the Bangko Sentral ng
Pilipinas.
Based on the bank's outstanding capital stock of
PHP32.7 billion, the 3% cash dividend will total
PHP980.2 million. For 2005, the bank declared a total of 5%
cash dividends for a total cash value of PHP1.6 billion.
Metrobank President Arthur Ty says, "the bank has shown good
results so far this year and we're happy to share some of these
gains with our shareholders."
The parent company recently reported an increase of
PHP792 million or 35.1% in net income for the first half of the
year with PHP3.04 billion. Metrobank is the Philippines'
largest bank in terms of consolidated total assets with
PHP593.9 billion as of end-June 2006. The bank has a global
presence of over 800 international and domestic branches,
offices, subsidiaries, and affiliates.
About Metrobank
Metropolitan Bank and Trust Company --
http://www.metrobank.com.ph/-- is the flagship company of the
Metrobank Group. Metrobank provides a host of deposit, savings,
and loan products as well as electronic banking services like
internet banking, mobile banking, and phone banking, as well as
its huge ATM network. Metrobank is also the leading provider of
trade finance in the country, and its overseas branch network
has enabled it to service the fund remittances of Filipino
overseas contract workers.
The Bank has 583 local branches and 35 international branches
and offices located in Taiwan, China, Japan, Korea, Guam, United
States, Hong Kong, Singapore, Bahamas, and in Europe.
* * *
On March 3, 2006, the Troubled Company Reporter - Asia Pacific
reported that Standard and Poor's Rating Service assigned a CCC+
rating on Metrobank's US$125-million non-cumulative capital
securities, whereas Moody's Investors Service Rating Agency
issued a B- rating on the same capital instruments.
Moreover, Moody's gave Metrobank a Ba3 Foreign Long-Term Bank
Deposits and Subordinated Debt Rating effective May 25, 2006.
Fitch Ratings Ltd. gave Metrobank a B- Subordinated Debt Rating.
METROPOLITAN BANK: Extends PHP3-Bln Term Loan Facility to Globe
---------------------------------------------------------------
Metropolitan Bank & Trust Company and Globe Telecom recently
signed a PHP3-billion five-year term loan facility to finance
the telecom giant's capital expenditures and regular working
capital requirements.
According to Globe President and Chief Executive Officer Gerardo
C. Ablaza, Jr., bulk of the loan proceeds will be used to roll-
out the infrastructure for its third-generation (3G) network.
"In this business, you never see the end of expansion. Just as
one technology phase ends, another one emerges. We're coming
close to the end of our 2G nationwide network build, and are
shifting more focus on 3G now," Mr. Ablaza says.
3G is an upgraded telecommunications technology that allows
subscribers with 3G-enabled wireless phones to access the
Internet, do video calling, multimedia streaming, and other
online services at high connection speeds.
Apart from the build-up of 3G infrastructure, Metrobank is also
financing a segment of Globe's capital expenditures for its
wireline business, particularly its broadband infrastructure.
"There are interesting new technologies that could enable more
affordable and more accessible broadband services. This is an
opportunity we would like to explore and pursue," Mr. Ablaza
explains.
Metrobank President Arthur Ty says, "We are pleased to do
business with one of the premier companies in the country. The
telecoms business is very capital intensive and we're happy to
assist Globe in expanding its network so they can serve their
customers better."
Mr. Ablaza notes that Metrobank has been their partner in
building up the telecom company's capacity to address customers'
needs via network development and expansion since 2001.
"Metrobank understands our needs and they're able to provide us
financing under competitive terms. That is what makes this
partnership noteworthy," Mr. Ablaza adds.
Prior to this facility, Metrobank granted Globe a PHP2-billion
term loan in 2004, also for its network capital expenditures.
In the last four years, the telecom giant had been spending over
US$300 million annually for its network facilities.
The PHP3 billion term loan is among the major contracts signed
recently by Metrobank as part of its strategy to strengthen its
corporate loans portfolio. Metrobank is the Philippines'
largest bank with consolidated assets of PHP570.47 billion as of
March 31, 2006. The bank enjoys an extensive local distribution
of more than 500 branches and 35 international branches and
offices.
About Metrobank
Metropolitan Bank and Trust Company --
http://www.metrobank.com.ph/-- is the flagship company of the
Metrobank Group. Metrobank provides a host of deposit, savings,
and loan products as well as electronic banking services like
internet banking, mobile banking, and phone banking, as well as
its huge ATM network. Metrobank is also the leading provider of
trade finance in the country, and its overseas branch network
has enabled it to service the fund remittances of Filipino
overseas contract workers.
The Bank has 583 local branches and 35 international branches
and offices located in Taiwan, China, Japan, Korea, Guam, United
States, Hong Kong, Singapore, Bahamas, and in Europe.
* * *
On March 3, 2006, the Troubled Company Reporter - Asia Pacific
reported that Standard and Poor's Rating Service assigned a CCC+
rating on Metrobank's US$125-million non-cumulative capital
securities, whereas Moody's Investors Service Rating Agency
issued a B- rating on the same capital instruments.
Moreover, Moody's gave Metrobank a Ba3 Foreign Long-Term Bank
Deposits and Subordinated Debt Rating effective May 25, 2006.
Fitch Ratings Ltd. gave Metrobank a B- Subordinated Debt Rating.
METROPOLITAN BANK: Lends PHP5 Bln to Smart for Network Upgrade
--------------------------------------------------------------
Metropolitan Bank & Trust Company is extending to Smart
Communications, Inc., a PHP5-billion 5-year multi-currency term
loan that will partially finance its capital expenditure
requirements.
Smart President and Chief Executive Officer Napoleon L. Nazareno
says "the loan is not only Smart's largest local borrowing in
recent history, it is also its largest from a single Filipino
bank."
Smart reported that the loan will be used to support its network
upgrade and expansion. "There is still room for growth in the
business as we continue to expand the range of our products and
services. Smart is no longer just a cellular company, like the
rest of the PLDT Group, we are going broadband," Nazareno
explains.
"The strength of our partnership with Metrobank has proven
itself over the years. Indeed, the list of Metrobank's
businesses with Smart is growing. The bank supports us with
cash management services, trustee services for various Smart
accounts, and participation in the 2014 Smart debt," Mr.
Nazareno adds.
Metrobank president Arthur Ty says "this is the largest deal
Metrobank has underwritten for any corporate borrower in recent
history. We could have easily syndicated this facility but our
taking on the entire PHP5 billion is our way of conveying our
commitment to SMART and PLDT."
First Metro Investment Corporation, the investment banking arm
of Metrobank, is the sole arranger of the term loan.
Recently, Metrobank has been at the forefront of lending
activities to its large corporate accounts in line with its new
growth strategy. The bank remains the industry's largest lender
with PHP264.3 billion in consolidated net loans as of June 30,
2006. The increase in lending activity will improve the bank's
revenues from its core business. The parent company reported a
35.1% increase in net income with PHP3.04 billion as of end-June
2006.
Metrobank is the Philippines' largest bank with consolidated
assets of PHP593.9 billion as of June 2006. The bank enjoys a
global presence of over 800 international and domestic branches,
offices, subsidiaries, and affiliates.
About Metrobank
Metropolitan Bank and Trust Company --
http://www.metrobank.com.ph/-- is the flagship company of the
Metrobank Group. Metrobank provides a host of deposit, savings,
and loan products as well as electronic banking services like
internet banking, mobile banking, and phone banking, as well as
its huge ATM network. Metrobank is also the leading provider of
trade finance in the country, and its overseas branch network
has enabled it to service the fund remittances of Filipino
overseas contract workers.
The Bank has 583 local branches and 35 international branches
and offices located in Taiwan, China, Japan, Korea, Guam, United
States, Hong Kong, Singapore, Bahamas, and in Europe.
* * *
On March 3, 2006, the Troubled Company Reporter - Asia Pacific
reported that Standard and Poor's Rating Service assigned a CCC+
rating on Metrobank's US$125-million non-cumulative capital
securities, whereas Moody's Investors Service Rating Agency
issued a B- rating on the same capital instruments.
Moreover, Moody's gave Metrobank a Ba3 Foreign Long-Term Bank
Deposits and Subordinated Debt Rating effective May 25, 2006.
Fitch Ratings Ltd. gave Metrobank a B- Subordinated Debt Rating.
PHILIPPINE AIRLINES: To Upgrade Services; Expects Lower Profit
--------------------------------------------------------------
For the coming fiscal year, Philippine Airlines, Inc., plans to
abolish its first-class service on long-haul flights, The Manila
Times reports, citing Jaime J. Bautista, PAL President and Chief
Operating Officer.
In compensation, business-class seats will be retrofitted with
cocoon-type seats and audio video on demand inflight
entertainment systems, the paper relates, noting that the AVOD
will also be available in the economy class.
According to Mr. Bautista, the company will allot US$48 million
for the reconfiguration of its four A747 airplanes.
The be more competitive, the airline has contracted up to 20
brand-new Airbus A320-family aircraft, with the first scheduled
for delivery in September, The Manila Times relates.
China & India Flights Expansion
Philippine Airlines also plans to expand its presence in China
and India, which are considered to be two of the fastest-growing
travel markets in the world, Mr. Bautista reveals.
Xiamen flights will be increased to six or seven from five a
week. Beijing flights will be increased to seven from four
flights a week, The Manila Times relates.
Lower Profit Forecast for Fiscal 2007
Mr. Bautista forecasts profits of US$18 million for the fiscal
year ending March 2007 lower than the US$28.7 million the
company earned for fiscal year ending March 2006, due to higher
fuel costs.
The Manila Times cites Mr. Bautista as explaining that lower net
profit forecast is due to the expected reduction in capacity
because of the maintenance check of airplanes, adding that
capacity is likely to go down by 4% to 5% and passenger volume
to average 6 to 7 million.
The company plans to fly 19 routes for domestic and 24 routes
for international in coming fiscal year, the paper notes.
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.
PHILIPPINE NATIONAL BANK: Signs Trust Agreement with AMOSUP
-----------------------------------------------------------
The Philippine National Bank has signed a Trust Agreement with
the Associated Marine Officers and Seaman's Union of the
Philippines. The PNB Trust Banking Group will manage and
administer the AMOSUP International Maritime Employers
Committee, Ltd., total Crew Cost Concept Survivorship Pension
Fund for the beneficiaries of AMOSUP seafarers.
About Philippine National Bank
Philippine National Bank -- http://www.pnb.com.ph/-- is the
Philippine's first universal bank established on July 22, 1916.
The Bank's core business consists of lending and deposit-taking
activities from corporate, middle market and retail customers,
as well as various government units. Its other principal
activities include bill discounting, fund transfers, remittance
servicing, foreign exchange dealings, retail banking, trust
services, treasury operations and trade finance. Through its
subsidiaries, PNB engages in a number of diversified financial
and related businesses such as international merchant banking,
investment banking, life/non-life insurance, leasing, financing
of small-and-medium-sized industries, and financial advisory
services. It introduced innovations such as the bank on wheels,
computerized banking, ATM banking, mobile money changing and
domestic travelers' checks.
* * *
Standard and Poor's Ratings Services has given PNB 'B' Short-
Term Foreign Issuer Credit and Short-Term Local Issuer Credit
Rating, as well as 'B-' Long-Term Foreign Issuer Credit and
Long-Term Local Issuer Credit Ratings effective as of April 26,
2006.
Moody's Investors Service has assigned a Ba3 rating to PNB's
proposed local currency subordinated notes -- Series A and
Series B.
UNION BANK: SEC Approves Merger with International Exchange Bank
----------------------------------------------------------------
As reported in the Troubled Company Reporter - Asia Pacific on
July 31, 2006, UnionBank of the Philippines filed a Tender Offer
Report with the Securities and Exchange Commission for the
acquisition of the International Exchange Bank shares it does
not already own. Specifically, the UnionBank Tender Offer
targets 3,698,100 shares in iBank, or approximately 1.16% of its
total outstanding capital stock.
Union Bank owns 98.84% of iBank's outstanding common shares, the
TCR-AP noted.
The TCR-AP said that the merger was one of the matters voted on
at iBank's Annual Stockholder's meeting on August 3, 2006.
Thus, on that date, the stockholders owning or representing at
least two-thirds of the outstanding capital stock constituent
corporations approved the merger.
Accordingly, Union Bank advises the Philippine Stock Exchange
that the Securities and Exchange Commission issued on August 28,
2006, a certificate of Filing of the Articles and Plan of
Merger, approving the merger of the banks.
Pursuant to the Plan of Merger, iBank's entire assets and
liabilities will be transferred to and absorbed by Union Bank.
About International Exchange Bank
International Exchange Bank - http://www.ibank.com.ph/--
provides products and services such as deposits, cash management
services, commercial and consumer loans, trade finance
facilities, domestic and foreign fund transfers, foreign
exchange, fixed income distribution, derivatives and trust
services. The Bank caters primarily to corporations and
individuals belonging to the Class A, B, and upper C markets.
As of December 29, 2005, the bank was the 17th largest bank in
the Philippines in terms of total resources, with total assets
of PHP58.3 billion. The bank was the 15th largest bank in terms
of total loans, 15th in terms of total capital, and 17th in
terms of total deposits.
About UnionBank
Union Bank of the Philippines -- http://www.unionbankph.com/--
offers a wide range of products and services to both corporate
and individual clients. Its core businesses are payment
services, corporate cash management foreign exchange, capital
markets, corporate finance and consumer finance. It is also
engaged in investment management, trust banking, insurance
brokerage, currency brokerage, private banking, pre-need
products marketing, investment banking and financial advisory
and real property development and marketing via Union
Properties, Inc.
Moody's Investors Service gave UnionBank a 'Ba3' Senior
Unsecured Debt and Long-Term Bank Deposits Ratings effective
May 25, 2006.
* Philippine Gov't Fiscal Gains to Propel Economic Growth
---------------------------------------------------------
The peso nearly broke the PHP50 barrier on account of positive
investor sentiment arising from the government's fiscal gains
and expectations of decent economic growth numbers.
The positive outlook of the international community on the
country is a tacit recognition and a clear indication of
confidence in the Filipino people.
Aside from the strong peso, improvements in the agricultural
sector, higher exports, and robust remittances that drive higher
consumer demand are expected to propel the country's economic
growth.
As this developed, the Philippines is braking the psychological
thresholds in the market as fast as the economic takeoff is
nearing.
According to the Bangko Sentral ng Pilipinas, inflation this
month is within the 5.8% to 6.5% range because of the strong
peso.
Growing stability and burgeoning enterprise will save the day
for the millions of poor who are waiting for the social payback
of the economic reforms. That payback is soon to be realized in
terms of investments, jobs, infrastructure, education, and
better services.
* Central Bank Sees Sustained Peso Strength
-------------------------------------------
The Bangko Sentral ng Pilipinas says it expects the peso, which
hit a four-year high on August 31, 2006, to sustain its upward
momentum with strong remittances from overseas Filipino workers.
"Once you get the continuing flows coming from OFWs then you
will be convinced that the strong peso maybe sustained," Diwa
Guinigundo, deputy central bank governor, tells reporters.
Earlier, the peso strengthened beyond key resistance of 50.88 to
reach 50.80 per dollar, its highest since July 2002.
Economy Grows 5.5% in 2Q
Gross domestic product in the second quarter grew 5.5% year on
year, aided by a robust services sector and improved farm
output, the National Statistical Coordination Board says.
The National Economic Development Authority, Manila's national
planning agency, was expecting a range of 5.3% to 5.8% GDP
growth for the period.
GDP is commonly used as a measurement of the economic health of
a country and its productivity. It grew 5.6% in the first half
of the year, in line with government estimates.
"With this kind of growth, I think we are no longer among the
laggards in Asia," Economic Planning Secretary Romulo Neri tells
a news briefing. "We may not be growing as fast as India and
China, but I don't think we're still the sick man of Asia."
"The domestic economy sustained its strong upturn in the second
quarter led by agriculture and the resilient services sector,"
Mr. Neri says.
"On the demand side, growth was stimulated by household
consumption and strong exports," Mr. Neri says, adding that
manufacturing output exceeded expectations.
By sector, the growth came from the manufacturing sector, which
expanded 6.5 annually, services 5.7%, industrial output 4.5%,
and the farm sector 6.7%.
Economists at DBS Bank in Singapore says that the second quarter
figure beat its forecast for a 5% expansion.
"(The government's) figures suggest that industry and, in
particular, agriculture had performed better than we thought.
This (growth will) make the government's 5.5%-6.1% growth
forecast for the full year look much more achievable," DBS says
in a market note.
Gross national product, which includes remittances from
Filipinos working overseas, expanded 6.6% year-on-year in the
second quarter.
Household consumption grew 5.2% year-on-year in the second
quarter, helped by brisk remittances from Filipino workers
abroad which grew 15.4% to a record US$6.0 billion in the first
half, according to earlier data from the central bank.
Exports in the second quarter surged 22.3% from a year earlier,
Neri notes.
Government spending, however, was weak due to the absence of a
new budget. The government is using the same budget allocated
for 2005 after the Senate shot down the executive department's
budget proposal that was higher than last year's.
As a result, Neri states the government had been exercising
restraint on expenditures, which had affected the flow of public
funds into infrastructure.
Nonetheless, the full-year GDP growth target of 5.5%-6.1%
remains "well within our grasp," Mr. Neri says, despite slower
expansion in the second quarter and potential risks posed by
higher crude oil prices.
According to Mr. Neri, government policymakers believe "the
external environment will remain largely positive in the second
half."
"American markets have shown moderation lately. However, the
recent pause in US interest rate hikes and the current upturn in
Europe and Japan are all positive factors which will help
underpin future export performance," Mr. Neri adds.
Neri further says the agriculture sector is expected to
stabilize in the second half with the end of the La Nina
phenomenon -- characterized by more-than-usual amount of
rainfall -- in May.
Elsewhere, prospects for the mining sector remain bright with
huge investments coming in, while consumer spending "looks set
to grow at a stable rate in the near term," Mr. Neri asserts.
GDP growth in the first quarter was 5.5%. Most economists
expect second quarter GDP growth rate to stay at that level.
The government expects a 5.5% to 6.1% GDP growth rate for the
whole year.
=================
S I N G A P O R E
=================
EPL LTD: Creditors' Proofs of Claim Due on September 25
-------------------------------------------------------
Creditors of EPL Ltd are required to submit their proofs of debt
by September 25, 2006, for them to share in the company's
dividend distribution.
The Joint Liquidators can be reached at:
Lai Seng Kwoon
Hamish Alexander Christie
c/o 16 Raffles Quay #22-00
Hong Leong Building
Singapore 048581
GETRONICS NV: Inks Deal with Banks to Fully Access EUR284 Mil.
--------------------------------------------------------------
Getronics NV has reached an agreement with a banking syndicate
to gain a full access to its EUR284 million until its maturity
in March 2008. This means that the decrease of EUR30 million
has been cancelled by its lending banks which consist of ABN
AMRO, Rabobank, ING Bank,SNS Bank, and NIBC.
The company signed on 2005, a EUR300-million credit facility
agreement with the lenders. As a result of selling certain
assets in 2005, the credit facilities were reduced to EUR284 in
April 2006. The Syndicated Credit Facilities consist of EUR225
million Revolving Credit Facilities and a Term Loan Facility of
EUR59 million for acquisition purposes.
About Getronics N.V.
Headquartered in Amsterdam, Netherlands, Getronics N.V.
-- http://www.getronics.com/-- designs, integrates and manages
ICT infrastructures and business solutions for many of the
world's largest global and local companies and organizations,
helping them maximize the value of their information technology
investments. Getronics has some 27,000 employees in over 30
countries and approximate revenues of EUR3 billion. The
company has regional offices in Boston, Madrid and Singapore.
Its shares are traded on Euronext Amsterdam.
* * *
As reported in Troubled Company Reporter - Asia Pacific, on
August 25, 2006, Getronics N.V.'s 'B' long-term corporate credit
rating, along with the 'CCC+' senior unsecured debt, 'B' bank
loan, and '3' recovery ratings on CreditWatch with negative
implications, where they had originally been placed on Jan.
19.The '3' recovery rating indicates Standard & Poor's
expectation of meaningful (50%-80%) recovery of principal for
secured lenders in the event of a payment default.
The Troubled Company Reporter - Asia Pacific, reported on
August 8, 2006, that Moody's Investors Service downgraded
Getronics' corporate family rating to B2 from B1 and placed the
ratings on review for possible downgrade following the company's
announcement of half year results showing a widening of net
losses and fall in margins below the company's expectations.
Concurrently the rating on the EUR100 million senior unsecured
convertible Dutch bonds due 2008 has been downgraded to Caa1
from B3.
JAPAN TRAVEL: Creditors' Proofs of Debt Due on September 25
-----------------------------------------------------------
Liquidator Lim Say Wan requires the creditors of Japan Travel
Bureau Asia Pte Ltd to submit their proofs of debt by
September 25, 2006.
Failure to comply with the requirement will exclude a creditor
form sharing in the company's dividend distribution.
The Liquidator can be reached at:
Lim Say Wan
c/o 6 Shenton Way #32-00
DBS Building Tower Two
Singapore 068809
MICHAEL DE KRETSER: Court to Hear Wind-Up Petition on Sept. 15
--------------------------------------------------------------
On August 21, 2006, Batey (Pte) Ltd filed an application to wind
up Michael De Kretser Consultants Pte Ltd.
The High Court of Singapore will hear the wind-up petition on
September 15, 2006, at 10:00 a.m.
The Solicitors for the Plaintiff can be reached at:
Legal21 LLC
4 Robinson Road #10-01
Singapore 048543
SUM YUE: Faces Wind-Up Proceedings
----------------------------------
Sum Yue Instrumentation Engineering Pte Ltd has filed a wind-up
petition against Sum Yue Instrumentation Engineering Pte Ltd on
July 21, 2006.
Creditors are required to file their proofs of debt to the
company's liquidator for them to share in any idtribution the
company will make.
The Liquidator can be reached at:
The Official Receiver
URA Centre
East Wing
45 Maxwell Road #05-11/#06-11
Singapore 069118
===============
T H A I L A N D
===============
BANGKOK STEEL: Posts THB654.70-Mil Net Loss in First Half 2006
--------------------------------------------------------------
Bangkok Steel Public Co Ltd's consolidated financial statement
for the first-half period ending June 30, 2006, shows a net loss
of THB654.696 million from its operation, compared with a
THB944.385-million net profit recorded in the first half of
2005.
The company's consolidated balance sheet as of June 30, 2006,
reflects total assets of THB16.591 billion, compared with
THB24.173 billion in total liabilities, resulting to a capital
deficiency of THB8.261 billion.
Meanwhile, consolidated current total assets of the company as
of June 30, 2006, amount to THB4.589 billion, while total
current liabilities coming due within the next 12 months is at
THB678.340 million.
After reviewing the company and its subsidiaries financial
records, Somchai Kurujitkosol of SK Accountant Services Co Ltd
expressed doubt on the Company's going concern.
The company's ability to continue operations is dependent on its
ability to repay debt. Such situation brings substantially
material uncertainty and causes material doubt in respect of the
company's ability to continue as a going concern, Mr. Somchai
said.
* * *
Bangkok Steel Industry Public Company Limited --
http://www.bangkoksteel.co.th/-- manufactures reinforcing steel
bars including deformed steel bars under "BSI" brand name, and
galvanized iron flat sheets under "Singha" brand name.
Additionally, the Company provides steel fabrication services
for machinery installations and large containers, and is a
licensee of "Kone" cranes from Finland.
On December 22, 2003, the Supreme Court ordered the Company to
rehabilitate its business in accordance with Thailand's
Bankruptcy Act. On April 19, 2004, the Central Bankruptcy Court
appointed C.J. Morgan Co., Ltd. and Panya Intellect Co., Ltd. to
be its business rehabilitation planners. The comptroller of
Bankruptcy head invited the debtors, creditors and lenders to
lodge the claim for settlement of debts with the Company. The
total claims lodged by the appellants amounted to approximately
THB59.09 billion which were the outstanding balance in the
Company's accounts approximately THB18.91 billion and
commitments and contingent liabilities of THB40.18 billion.
The Company's business rehabilitation plan, dated December 19,
2004, was accepted three days later, and on February 7, 2005,
Thailand's Central Bankruptcy Court entered an order approving
that plan.
On November 30, 2005, the creditors' meeting moved to amend the
Company's business rehabilitation plan, which the Central
Bankruptcy Court agreed to on December 26, 2005.
The company is currently listed under the "Non-Performing Group"
sector of the Stock Exchange of Thailand.
THAI PROPERTY: SET Posts SP Sign for Failure to Submit Report
-------------------------------------------------------------
Securities of Thai Property Pcl were suspended from trading by
the Stock Exchange of Thailand after it failed to submit its
financial report for the quarter ending June 30, 2006.
According to SET, the SP -- Suspension -- sign on the company's
securities would be effective starting August 16, 2006.
Based on SET's policies, all listed companies are required to
file their financial reports for every quarter of the year.
Failure to present and clarify the financial status of the
company would result to suspension of its securities.
Thai Property, in a letter addressed to the bourse, explained
that the company's auditor could not finish reviewing its
financial statements and asked for an extension of the
submission deadline until September 15, 2006.
* * *
Thai Property Public Company Limited was formerly known as
Rattana Real Estate Public Company Limited. The Company
develops real estate for sale and rental including residential,
commercial, and office buildings.
The economic crisis, which occurred in 1997, significantly
affected the various business sectors, especially the real
estate development sector. This led Thai Property to suspend
its real estate development project in 1997, and as a result,
the Company had consistently suffered operating losses and has a
significant capital deficit. The Company also faces liquidity
problems, and has been unable to fulfill the conditions of
various loan agreements and to repay its debts to its creditors.
In 2003, Thai Property had successfully concluded negotiations
with most of its lenders and creditors to restructure the
conditions and the repayment of its debts. The remaining parts
of its debts are subject to ongoing repayments, which the
Company believes will be concluded successfully.
On August 16, 2002, Thai Property entered into a reciprocal
agreement with a new investor, Great China Millennium (Thailand)
Company Limited, to continue its real estate development
project. The agreement stipulates certain conditions, which the
Company and the new investor must comply.
In the first quarter of 2003, the Company completed its
obligations as stipulated under the agreement, and the new
investor had also fulfilled most of its obligations under the
agreement, such as making significant progress with construction
of the project buildings, the provision of loans to the Company
and payment of remuneration. However, in July 2005,
remuneration of THB150 million was due under the agreement and
the new investor intended to offset such remuneration against
part of the loan balance of THB509 million it had provided to
the Company. The new investor has not been able to offset the
amounts because of certain conditions under the Company's short-
term loan agreement.
Currently, the company is listed under the "Non-Performing
Group" Sector of the Stock Exchange of Thailand.
TMB BANK: S&P Affirms Bank's Ratings After Recapitalization
-----------------------------------------------------------
Standard & Poor's Ratings Services announced that its
counterparty credit ratings on Thailand's TMB Bank Public Co.
Ltd (BBB-/Stable/A-3) remain unchanged following the bank's
completed share issue.
Following the full subscription of the rights issue, TMB Bank
successfully raised new capital of around THB9.6 billion or
US$257 million. Consequently, the bank's capitalization, as
measured by its pro-forma adjusted common equity to adjusted
assets ratio (ACE ratio), improved to 3.48%, from 2.11% -- based
on March 31, 2006 figures.
Nevertheless, TMB Bank's capitalization remains relatively weak
-- its loan quality is lower than industry average due partly to
its legacy loans. In addition, its capitalization may face
further pressure, as it will be used to support any incremental
credit costs on its core business activities. Going forward,
any incremental improvement in the bank's capital position is
expected to hinge on a sustainable improvement in its internal
reserves generation.
TMB Bank remains the fifth-largest bank in Thailand in terms of
assets. The Thai government, through the Ministry of Finance,
owns about 31% of TMB Bank.
* * *
Headquartered in Bangkok, Thailand, TMB Bank Public Co. Ltd --
http://www.tmbbank.com/-- is a commercial bank that renders
financial services to all groups of customers. TMB Bank had
total assets of about THB717 billion as at December 31, 2005.
* * *
Fitch Ratings gave TMB Bank a 'BB+' Long-Term Foreign Currency
Issuer Default Rating; 'B' Short-Term Foreign Currency Rating;
'BB' Foreign Currency Subordinated Debt Rating; 'D' Individual
Rating; and Support rating at 3.
Moody's Investor Service gave TMB Bank a 'Ba1' Junior
Subordinated Debt Rating and an 'E+' Bank Financial Strength
Rating.
Standard & Poor's Ratings Services gave TMB Bank's US$200-
million hybrid Tier 1 securities a 'BB' rating.
TMB BANK: Fitch Affirms BB+ Rating after Share Issuance
-------------------------------------------------------
Fitch Ratings has affirmed TMB Bank Public Company Limited's
ratings following the bank's announcement that its rights issue
has been fully subscribed.
The ratings are affirmed at foreign currency Issuer Default
'BB+' with a Positive Outlook, Short-term foreign currency 'B',
Individual 'D' and Support '3'. Its foreign currency
subordinated debt is affirmed at 'BB' and foreign currency
hybrid Tier 1 securities at 'B+'.
At the same time, Fitch Ratings (Thailand) has affirmed TMB's
National ratings at Long-term 'A(tha)' with a Positive Outlook,
Short-term 'F1(tha)' and its subordinated debt at 'A-(tha)'.
The bank raised THB9.7 billion of new capital via the sale of
3.22 billion new shares at THB3 apiece through the rights issue.
The new capital is likely to see TMB's Tier 1 capital ratio
increase to about 9.7% (including H106 profit) of risk-weighted
assets from 7.4% at end June 2006.
While the capital raising addresses some of Fitch's concerns on
TMB's financial strength, the bank still has low reserves, as
well as weak profitability and franchise relative to its peers.
In H106, TMB reported a net profit of THB3.1 billion, down from
THB4.1billion in H105, as a result of higher provisions and
operating expenses. Net interest margin fell slightly to 2.1%
on an annualised basis in H106 from 2.12% the prior year, which
is significantly lower than its peers, reflecting bad debt
overhang and higher funding costs.
At end-June 2006, TMB reported impaired loans of THB75.5billion,
or about 13.6% of total loans, down slightly from THB77.4
billion (14%) at end-2005, due to bad loan write-offs of
THB2.1billion. Loan loss reserves stood at THB33 billion, which
equated to 43.8 % of impaired loans.
Relatively weak reserve coverage and high restructured loans
could spur further provisioning. TMB's net impaired
loans/equity stood at 79.7% at end-June 2006, although the new
capital would likely reduce the ratio to about 67.5%, which
still appears high when compared with most other peers.
Fitch maintains a Positive Outlook on TMB's ratings as the
agency views the capital raising, together with the
strengthening of the bank's franchise, should result in higher
revenues and improved profitability in the medium term.
However, at this stage, the franchise impact of its 16.1%
strategic shareholder, Development Bank of Singapore ("DBS",
rated 'AA-' (AA minus)/Stable/'F1+'), has been limited.
*********
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 ***