/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/060918.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 18, 2006, Vol. 9, No. 185 Headlines A U S T R A L I A & N E W Z E A L A N D 45 PROJECT: Liquidator to Present Wind-Up Report A.C.N. 090 053 259: Inability to Pay Debt Prompts Wind-Up ABORIGINAL AIR: Stops Flights; To Be Placed in Liquidation ABROQUEM PTY: Final Meeting Scheduled for October 3 ADSTEAM MARINE: To Hold Annual General Meeting on November 7 ARIUS PTY: Members to Hold Final Meeting on September 29 ARROW CARDINIA: Enters Voluntary Wind-Up ARROW PRIVATE: Enters Voluntary Liquidation AUSTRALIA ELECTRICAL: Names Robert Moodie as Liquidator BEACHWATER LANDSCAPING: Enters Wind-Up Proceedings BG FREIGHT: Shareholders Opt for Voluntary Liquidation BOUGH DEVELOPMENTS: Court to Hear CIR's Liquidation Bid Nov. 2 CASHMERE HEIGHTS: Court Appoints Liquidators CAIRNS SHELFCO: Final Meeting Slated on October 10 CAMBAY INVESTMENTS: Placed Under Voluntary Liquidation CITY DAY: Final General Meeting Set on October 13 CLAREMONT HOME: Liquidates Business Operations COMMERCIAL & RESIDENTIAL: To Declare Dividend on Nov. 12 CORAL SEA FUNDING: Members to Receive Liquidator's Report CROSSOCEAN FORWARDING: Winds Up Business Operations CUNNINGHAM BRICKLAYING: Members Decide to Close Business DAVYHURST PROJECT: Members Agree on Liquidation DELUXE PLUMBING: Members Opt to Shut Down Operations EXPERT PROPERTY: Federal Court Appoints Liquidator EXPORT PROJECT: Members and Creditors Meeting Set on October 13 FANZONE LIMITED: Creditors Must Prove Debts by Sept. 28 FORTESCUE METALS: G. Toll Gets Rid of 750,000 Shares for AU$6M GEORGE WOODS: Undergoes Voluntary Liquidation INTERACTIVE ADMINISTRATION: Enters Voluntary Liquidation INTERTAX GROUP: Court Orders Scheme Shut Down J KOHLER & SONS: Placed Under Members' Voluntary Liquidation JAMES HARDIE: In Talks With Gov't for Possible FFA Amendments JAMES HARDIE: Will Hold Annual General Meeting on September 19 JOHN PROPERTIES: Names Richardson as Liquidator JOHNSTON MOTOR: Court Orders Liquidation KOALA QUALITY: Schedules Final Meeting for October 13 LIMTAL CONTRACTING: Members Opt for Voluntary Liquidation MARJ PTY: Members and Creditors to Receive Wind-Up Report MELTEMI SERVICES: To Declare First and Final Dividend on Oct. 3 MIKE'S ELECTRICS: Members Agree to Wind Up Business MOFIFU PTY: Final Meeting Set for October 13 ORIGIN PACIFIC: Takes Steps to Wind Up Freight Business ORIGIN PACIFIC: M. Pero Withdraws Freight Takeover Offer PAUL GROB: To Declare Dividend on September 25 PHOENIX CONSTRUCTIONS: Members Resolve to Wind Up Firm PLM FORMWORK: Final Meeting Slated for October 13 RELIABLE REO: Members and Creditors to Receive Wind-Up Report ROBERTSON ROAD: Faces Liquidation Proceedings SABA PERSIAN: Appoints Joint Liquidators SOUTHMET PTY: Members Decide to Cease Operations SPARMANIA PTY: Final Meeting Scheduled for October 12 T J BLATCHFORD: Members Resolve to Wind Up Firm T.Y.D.S.E. LIMITED: Names Nellies and Jenkins as Liquidators VILLAGE ROADSHOW: Records AU35.1 Mln Loss for FY-Ended June 2006 VIXEN VESTMENTS: Appoints Official Liquidator WARRINGTON BUILDERS: Liquidation Process Commenced WEST PORT MACQUARIE: Liquidator to Give Wind-Up Report ZINIFEX LIMITED: Annual General Meeting Set for November 27 C H I N A & H O N G K O N G AGILE PROPERTY: Moody's Keeps (P)Ba3 Corp. Family Rating AGILE PROPERTY: S&P Keeps BB Long-Term Corp. Credit Rating ANYPLACE WORKSHOP: Enters Wind-Up Proceedings BANK OF CHINA: Fitch Keeps Individual Rating at D BESTAR INTERNATIONAL: Appoints Official Liquidator BESTNOON LIMITED: Members Opt for Liquidation B&P INTERTRADE: Joint and Several Liquidators Named BRILLIANT TECHNOLOGY: Court Orders Wind-Up CHINA CONSTRUCTION: Fitch Affirms Bank's Individual D Rating ETTORE NASSETTI: Court to Hear Wind-Up Petition FRANKLIN TEMPLETON: Joint Liquidators Cease to Act for Company GOLDEN HARVEST: Court Favors Wind-Up HALOKING CONSTRUCTION: Court Issues Wind-Up Order HIH MANAGEMENT: To Hold Annual Meetings on October 5 HING FUNG: Liquidation Bid Hearing Slated for September 20 HONGKONG HOTEL: Names Kit as Liquidator HTL GARMENTS: Receives Wind-Up Order from Court IAC BANK: Fitch Affirms Individual D/E Ratings LITAK SHIPPING: Appoints Joint and Several Liquidators MASSEY ENERGY: Earns US$3.2 Million in 2nd Quarter Ended June 30 MIRACLE TIME: Winds Up Business Operations PRODUCT SAFETY (H.K.): Names A.G. Hung as Liquidator PRODUCT SAFETY (INTERNATIONAL): Appoints New Liquidator QING YUAN: Enters Wind-Up Proceedings SANIC INTERNATIONAL: Liquidators Step Aside SUPRA ENGINEERING: Court to Hear Liquidation Petition on Sept.27 VACATION TRAVEL: Court Issues Wind-Up Order WAH SAN: Members Resolve to Wind Up Operations YICK TUNG: Joint Liquidators Cease to Act for the Company YIP FUNG: Faces Liquidation Proceedings Y.S. KNITTING: Liquidation Process Initiated I N D I A CITY UNION BANK: Posts 25.14% Rise in Net Profit CITY UNION BANK: Releases AGM Results CITY UNION BANK: Targets INR10,000 Crore Turnover for 2007 FORD MOTOR: UAW Agrees to Voluntary, System-Wide Buyouts HMT LIMITED: Net Loss Climbs 730.13% in June Quarter IFCI LTD: Loss After Tax for June Quarter Improves 65% IFCI LIMITED: Installs New Director INDUSTRIAL DEVELOPMENT: CRISIL Rates INR30-B Flexi Bonds at AA+ INDUSTRIAL DEVELOPMENT: UWB Merger Has No Effect on Ratings INDUSTRIAL DEVELOPMENT: Books INR15-Crore Profit in 1st Quarter LLOYDS FINANCE: Posts INR5.93M Net Loss in Quarter Ended June 30 LLOYDS FINANCE: Members Pass All AGM Resolutions ORIENTAL BANK: Posts INR940.20-Mil Net Profit for June Quarter ORIENTAL BANK: In Talks for Strategic Association UCO BANK: Posts INR61.5 Crore Net Profit in First Quarter UCO BANK: Nearly 10,000 Staff Face Layoff After Automation I N D O N E S I A BANK MANDIRI: Increases Number of Shares Via MSOP BANK NIAGA: Increases Shares Via Employee Stock Option Program BANK RAKYAT: Increases Shares Via Stock Option Program HM SAMPOERNA: Enters into Trademark License Pact with PM PERUSAHAAN GAS: To Drill in Sumatra to Find Gas in Coal Seams TELKOMSEL INDONESIA: Starts Offering 3G Service * Budget Deficit Will Be 1%-2% of GDP, Finance Minister Says J A P A N ASAHI LIFE: S&P Changes Outlook on BB Ratings to Positive DOANE PET: Posts US$5.4-Million Net Loss in April Quarter KANA SOFTWARE: Files Registration Statement for Stock Sale LIVEDOOR CO: Ex-CEO Says Horie Ordered Accounts Manipulation LIVEDOOR: Prosecutors Demand US$2.5-Million Fine LOPRO CORP: Fitch Affirms BB and B Currency Ratings SOFTBANK CORP: To Sell Hi-tech Handsets to Boost Sales * August Corporate Failures Rise 3.8% on Month, 2.7% on Year K O R E A BALLY TOTAL: Approves Indemnification Agreement with Directors BALLY TOTAL: Shares Drop 17.5% After Posting Second Quarter Loss * Two South Korean Cos. May Delist from U.S., Dow Jones Says * 1st Half 2006 Disclosure Filings for Investment in Listed Cos. * Insurance Cos. Improve Asset Quality in 2ndQ/FY2006, FSS Says M A L A Y S I A DAI HWA: Ends Reorganization Plan; Bourse Delists Securities KIG GLASS: Credit Default Amount Hits MYR79 Million JIN LIN: High Court Approves Restructuring Proposals MALAYSIA AIRLINES: Swampillai Takes Helm of Vietnam Operations MALAYSIA AIRLINES: Launches More Flights to Sabah and Sarawak MALAYSIA AIRLINES: Foreign Carriers Doubt Ability to Meet Demand POLYMATE HOLDINGS: Has Yet to Submit Fourth Quarter Report PROTON HOLDINGS: Shareholders Refuse to Re-elect One Director PROTON HOLDINGS: Subscribes Shares in Subsidiary Companies TECHVENTURE BERHAD: Creditor Demands Payment from Unit TEXCHEM RESOURCES: Incorporates Chinese Subsidiary P H I L I P P I N E S BANK OF CEBU: PDIC Pays PHP79.5 Million to 2,283 Claimants METROPOLITAN BANK: To Raise PHP6.15 Billion from Share Sale MIRANT CORP: Four Groups Vie to Acquire Philippine Assets S I N G A P O R E BIPL PTE: Creditors' Proofs of Debt Due on October 1 GOLDHILL MANAGEMENT: Creditors Must Submit Claims by Oct. 6 JAPAN TRAVEL: To Declare Dividend to Creditors KUBOTA SUPPLIES: Creditors' Proofs of Claim Due on October 9 REALCENTRE PTE: Members' Final Meeting Set on September 23 T H A I L A N D NAKORNTHAI STRIP: Plan Administrators Gain 53.65% Combined Stake * Bad Loans Soar in 2006 Second Quarter, BOT Says - - - - - - - - ============================================ A U S T R A L I A & N E W Z E A L A N D ============================================ 45 PROJECT: Liquidator to Present Wind-Up Report ------------------------------------------------ The members and creditors of 45 Project Management Pty Ltd will convene at a final meeting on October 13, 2006, at 10:00 a.m. During the meeting, Liquidator Richard Albarran will present final accounts of the Company's wind-up operations. The Troubled Company Reporter - Asia Pacific reported on February 23, 2006, that 45 Project sought to liquidate its assets due to its inability to pay debts within 12 months. The Liquidator can be reached at: Richard Albarran Hall Chadwick Level 29, 31 Market Street Sydney, New South Wales 2000 Australia A.C.N. 090 053 259: Inability to Pay Debt Prompts Wind-Up --------------------------------------------------------- At a meeting of members and creditors of A.C.N. 090 053 259 Pty Ltd held on September 1, 2006, it was decided that a voluntary wind-up of the Company's operations is appropriate and necessary since it is unable to pay its debts when they fall due. Subsequently, Richard Albarran was appointed as liquidator for the company. The Liquidator can be reached at: Richard Albarran c/o Hall Chadwick Level 29, 31 Market Street Sydney, New South Wales 2000 Australia ABORIGINAL AIR: Stops Flights; To Be Placed in Liquidation ---------------------------------------------------------- Aboriginal Air Services will close its doors for good after less than a fortnight under voluntary administration, ABC News Online reports. According to ABC News, administrator Austin Taylor does not blame any government for not bailing out the business. "Governments with an interest in the airline have been helpful since being made aware of the issue," the report cites Mr. Taylor as saying. The Troubled Company Reporter - Asia Pacific reported on September 8, 2006, that the South Australian Government has accused Mr. Taylor of making "alarmist" comments. Mr. Taylor has accused the South Australian Government of ignoring an unfolding medical crisis. The TCR-AP noted that the airline operates patient transfers from remote communities and Mr. Taylor says people could die as a direct result of the airline's liquidation. Flights in South Australia, Coober Pedy, Indulkana, and Ernabella were understood to have ended as of September 14, 2006, Mr. Taylor says. "This covers freight, postage. . .these are the lifelines to these communities," Mr. Taylor notes. "Not much goes in on buses or trucks. Some of it does, but most of it goes in on aircrafts because they are just so remote." Flights to remote communities across four states will stop after September 17, 2006, ABC News notes. The Australian says that the airline's assets will be auctioned. "[Aboriginal Air's] ultimate fate will be decided by a second meeting of creditors on September 25, at which it is anticipated the airline will be placed into liquidation," The Daily Telegraph quotes Mr. Taylor. About Aboriginal Air Aboriginal Air Services -- http://www.aboriginalair.com.au/-- is a corporation, which runs four air companies: 1. Ngaanyatjarra Air servicing the Western communities through to Kalgoorlie; 2. Ngurratjuta Air operating North and West of Alice Springs; 3. PY Air is supplying communities in the northern part of South Australia; and 4. Janami Air, the RPT route to Katherine Via communities Aboriginal Air Services also has its own maintenance arm, Aboriginal Aircraft Maintenance Services. The Air and Maintenance companies are owned and controlled by Aboriginal Corporations. The Troubled Company Reporter - Asia Pacific reported on September 6, 2006, that the board of directors of Aboriginal Air Services voted to bring in an administrator. Aboriginal Air has never made a profit in its 20-year history and has been propped up by its shareholders -- four Aboriginal groups from central Australia -- with large management fees, the TCR-AP said, citing a report from The Australian. ABROQUEM PTY: Final Meeting Scheduled for October 3 --------------------------------------------------- A final meeting of the members of Abroquem Pty Ltd, which is in liquidation, will be held on October 3, 2006, at 9:00 a.m. The Liquidator can be reached at: Stephen Neville Hall Forsyths 127 Marius Street Tamworth, New South Wales 2340 Australia Telephone:(02) 6766 5166 ADSTEAM MARINE: To Hold Annual General Meeting on November 7 ------------------------------------------------------------ Adsteam Marine Limited's Annual General Meeting will be held on November 7, 2006, at the Australian National Maritime Museum, Darling Harbour. 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. ARIUS PTY: Members to Hold Final Meeting on September 29 -------------------------------------------------------- Pursuant to Section 509 of the Corporations Law, members of Arius Pty Ltd will hold a final meeting on Sept. 29, 2006, at 9:00 a.m. At the meeting, Liquidator William Inglis will report on the company's wind-up proceedings and property disposal. According to the Troubled Company Reporter - Asia Pacific, members of Arius decided to voluntarily wind up its business operations on June 8, 2006. The Liquidator can be reached at: William Inglis Chartered Accountant Suite 7, Newport Beach Professional Centre 9 Foamcrest Avenue Newport, New South Wales 2106 Australia ARROW CARDINIA: Enters Voluntary Wind-Up ---------------------------------------- At a general meeting on August 31, 2006, the members of Arrow Cardinia Pty Ltd decided to voluntarily wind up the company's operations. The Liquidator can be reached at: Timothy James Cuming David Clement Pratt Level 15, 201 Sussex Street Sydney, New South Wales 1171 Australia ARROW PRIVATE: Enters Voluntary Liquidation ------------------------------------------- At a general meeting of the members of Arrow Private Equity Management Pty Ltd on August 31, 2006, it was agreed that a voluntary wind-up of the Company is appropriate and necessary. The Liquidator can be reached at: Timothy James Cuming David Clement Pratt Level 15, 201 Sussex Street Sydney, New South Wales 1171 Australia AUSTRALIA ELECTRICAL: Names Robert Moodie as Liquidator ------------------------------------------------------- Members of Australia Electrical Electronics Pty Ltd convened on August 30, 2006, and agreed to liquidate the Company's business. Robert Moodie was then appointed as liquidator. The Liquidator can be reached at: Robert Moodie c/o Rodgers Reidy Level 8, 333 George Street Sydney, New South Wales 2000 Australia BEACHWATER LANDSCAPING: Enters Wind-Up Proceedings -------------------------------------------------- The High Court of Wellington appointed on August 21, 2006, John Howard Ross Fisk and Richard Dale Agnew as joint and several liquidators of Beachwater Landscaping & Supplies Ltd. Subsequently, the Liquidators required the company's creditors to file their proofs of claim by September 21, 2006. Failure to prove debt will exclude a creditor from sharing in any distribution the company will make. The Troubled Company Reporter - Asia Pacific reported that the Commission of Inland Revenue filed a wind-up petition against the company on June 23, 2006. The petition was heard on August 21, 2006. The Joint Liquidators can be reached at: John Fisk Care of PricewaterhouseCoopers 113-119 The Terrace (P.O. Box 243) Wellington, New Zealand Telephone: (04) 462 7000 Facsimile: (04) 462 7492 BG FREIGHT: Shareholders Opt for Voluntary Liquidation ------------------------------------------------------ Shareholders of BG Freight Haulage Ltd resolved on August 11, 2006, to put the company under voluntary liquidation. In this regard, Warwyck James Dewe was appointed as liquidator. The Liquidator can be reached at: Warwyck James Dewe 249 Wicksteed Street (P.O. Box 4088), Wanganui New Zealand Telephone: (06) 349 0888 Facsimile: (06) 349 0879 BOUGH DEVELOPMENTS: Court to Hear CIR's Liquidation Bid Nov. 2 -------------------------------------------------------------- The High Court of Auckland will hear a liquidation petition against Bough Developments Ltd on November 2, 2006, at 10:45 a.m. A petition was filed by the Commissioner of Inland Revenue on July 27, 2006. The Solicitor for the Petitioner can be reached at: Justin Berryman Technical and Legal Support Group Auckland North Service Centre Inland Revenue Department 5-7 Byron Avenue (P.O. Box 33-150) Takapuna, Auckland New Zealand Telephone: (09) 984 1538 Facsimile: (09) 984 3116 CASHMERE HEIGHTS: Court Appoints Liquidators -------------------------------------------- On August 21, 2006, the High Court at Christchurch issued a liquidation order against Cashmere Heights Group Ltd. In this regard, Iain Andrew Nellies and Wayne John Deuchrass were appointed joint and several liquidators. According to the Troubled Company Reporter - Asia Pacific, the Commissioner of Inland Revenue filed the petition with the Court on June 29, 2006. The Joint Liquidators can be reached at: Iain Andrew Nellies Wayne John Deuchrass Insolvency Management Limited Level Four, 728 Colombo Street (P.O. Box 13-401) Christchurch, New Zealand CAIRNS SHELFCO: Final Meeting Slated on October 10 -------------------------------------------------- Pursuant to Section 509 of the Corporations Act, a final meeting of the members and creditors of Cairns Shelfco No. 16 Pty Ltd, which is in liquidation, will be held on October 10, 2006, at 11:00 a.m., at the offices of KordaMentha, Level 5 Chifley Tower, 2 Chifley Square, in Sydney, New South Wales. During the meeting, Liquidator Martin Madden will present his report on the Company's wind-up and property disposal. CAMBAY INVESTMENTS: Placed Under Voluntary Liquidation ------------------------------------------------------ Members of Cambay Investments Pty Ltd met on August 22, 2006, and agreed to voluntarily wind up the company's operations. In this regard, Peter Ngan was appointed as liquidator. The Liquidator can be reached at: Peter Ngan Ngan & Co Chartered Accountants Level 5, 49 Market Street Sydney, New South Wales 2000 Australia CITY DAY: Final General Meeting Set on October 13 ------------------------------------------------- The members and creditors of City Day & Night Security Pty Ltd will hold a final meeting on October 13, 2006, at 9:30 a.m., for them to get an account of the manner of the Company's wind-up and property disposal from liquidator Thomas Javorsky. As previously reported in the Troubled Company Reporter - Asia Pacific, members of the Company resolved to voluntarily wind up the Company's operations on May 12, 2005. The Liquidator can be reached at: Thomas Javorsky c/o Jones Condon Chartered Accountants Telephone:(02) 9251 5222 CLAREMONT HOME: Liquidates Business Operations ---------------------------------------------- At a general meeting on August 31, 2006, the members of Claremont Home Units Pty Ltd passed a special resolution to voluntarily wind up the Company's business operations. In this regard, Ian Thomas Stephenson, of Ian Stephenson & Partners, was named liquidator for the Company. The Liquidator can be reached at: Ian Thomas Stephenson Ian Stephenson & Partners Chartered Accountants 200 Pacific Highway Crows Nest, New South Wales 2065 Australia Telephone:(02) 9922 2833 COMMERCIAL & RESIDENTIAL: To Declare Dividend on Nov. 12 -------------------------------------------------------- Commercial & Residential Waterproofing, which is subject to a deed of company arrangement, will declare its first and final dividend to unsecured creditors on November 12, 2006. In this regard, creditors are required to file their proofs of claim by October 3, 2006, for them to share in the dividend distribution. The Deed Administrator can be reached at: Geoffrey Mcdonald Hall Chadwick Level 29, 31 Market Street Sydney, New South Wales 2000 Australia CORAL SEA FUNDING: Members to Receive Liquidator's Report --------------------------------------------------------- The members of Coral Sea Funding Pty Ltd, which is in liquidation, will hold a final meeting on October 10, 2006, at 10:00 a.m. At the meeting, Liquidators Christopher R. Campbell and Peter G. Yates will present a report on the Company's wind-up and disposal of properties. The Liquidators can be reached at: Christopher R. Campbell Peter G. Yates Deloitte Touche Tohmatsu Grosvenor Place, 225 George Street Sydney, New South Wales 2000 Australia Telephone:(02) 9322 7000 CROSSOCEAN FORWARDING: Winds Up Business Operations --------------------------------------------------- At a general meeting on September 1, 2006, members of Crossocean Forwarding Services Pty Ltd agreed that the Company must voluntarily commence a wind-up of its operations. Bryan Collis was then named liquidator. The Liquidator can be reached at: Bryan Collis O'Brien Palmer Level 4, 23-25 Hunter Street Sydney, New South Wales 2000 Australia CUNNINGHAM BRICKLAYING: Members Decide to Close Business -------------------------------------------------------- At a general meeting on August 28, 2006, the members of Cunningham Bricklaying Pty Ltd decided to voluntarily wind up the Company's business operations. Peter Ngan's appointment as liquidator was then confirmed at a creditors meeting held subsequently that day, pursuant to Section 497(1) of the Corporations Act 2001 . The Liquidator can be reached at: Peter Ngan Ngan & Co Chartered Accountants Level 5, 49 Market Street Sydney, New South Wales 2000 Australia DAVYHURST PROJECT: Members Agree on Liquidation ----------------------------------------------- The members of Davyhurst Project Pty Ltd held a general meeting on August 31, 2006, and agreed to shut down the Company's business operations. The Liquidator can be reached at: Timothy James Cuming David Clement Pratt Level 15, 201 Sussex Street Sydney, New South Wales 1171 Australia DELUXE PLUMBING: Members Opt to Shut Down Operations ---------------------------------------------------- At a separate meeting of the members and creditors of Deluxe Plumbing Services Pty Ltd on August 25, 2006, they decided to voluntarily wind up the Company's operations and appoint Ozem Kassem as liquidator. The Liquidator can be reached at: Ozem Kassem Cor Cordis Chartered Accountants Level 8, 50 Carrington Street Sydney, New South Wales Australia Telephone:(02) 8221 8433 Facsimile:(02) 8221 8422 EXPERT PROPERTY: Federal Court Appoints Liquidator -------------------------------------------------- On August 30, 2006, the Federal Court of Australia, New South Wales District Registry, entered an order appointing Christopher J. Palmer as official liquidator of Expert Property Maintenance Pty Ltd. The Liquidator can be reached at: Christopher J. Palmer O'Brien Palmer Level 4, 23 Hunter Street Sydney, New South Wales 2000 Australia EXPORT PROJECT: Members and Creditors Meeting Set on October 13 --------------------------------------------------------------- In Accordance with Section 509(2) of the Corporations Act 2001, members and creditors of Export Project Finance Pty Ltd, which is in liquidation, will hold a final meeting on October 13, 2006, at 10:00 a.m. At the meeting, Liquidator P. Ngan will present accounts of the company's wind-up proceeding and property disposal exercises. The Liquidator can be reached at: P. Ngan Ngan & Co Level 5, 49 Market Street Sydney, New South Wales 2000 Australia FANZONE LIMITED: Creditors Must Prove Debts by Sept. 28 ------------------------------------------------------- Joint and Several Liquidators Gerald Stanley Rea and Paul Graham Sargison require the creditors of Fanzone Limited to file their proofs of debt on September 28, 2006. Failure to present proofs of debt by the due date will exclude a creditor from sharing in any distribution the company will make. The Joint Liquidators can be reached at: P. G. Sargison Gerry Rea Associates P.O. Box 3015, Auckland New Zealand Telephone: (09) 377 3099 Facsimile: (09) 377 3098 FORTESCUE METALS: G. Toll Gets Rid of 750,000 Shares for AU$6M -------------------------------------------------------------- Gordon Toll, who shares the chairmanship at Fortescue Metals Limited with Andrew Forrest, dumped 750,000 shares in a number of on-market trades beginning on September 8, 2006, The Australian reports. According to the report, the sale saw Mr. Toll pocket AU$6.31 million through an average share price of AU$8.41. The Australian, however, notes that Mr. Toll did not explain his move to dump his holdings in Fortescue, which reportedly left other shareholders confused as to his relationship with Fortescue. The Australian relates that the Fortescue shares were held in a company called Coffee House Group, in which Mr. Toll holds a 50% interest. A search of the Australian Securities and Investments Commission database showed that the company is not registered in Australia, The Australian reveals. The paper cites Fortescue director of operations, Graeme Rowley, as saying that the board had no warning that Mr. Toll would be selling his shares. The shares were bought many years ago, well before they reached heights of AU$10 a piece, Mr. Rowley disclosed. "Mr. Toll is still the chairman of the company and we have had no indication to confirm otherwise," Mr. Rowley said. According to The Australian, before the share-dump, Mr. Toll was Fortescue's eighth-biggest shareholder. About Fortescue Headquartered in West Perth, Western Australia, Fortescue Metals Group Limited -- http://fmgl.com.au/-- is involved in the exploration of iron ore through a project to mine iron ore in the Chichester Ranges, in the Pilbara region of Western Australia and exporting it from Port Hedland. In 2005, Fortescue's chief executive officer, Andrew Forrest, admitted to a AU$500-million blowout on the cost of port and rail infrastructure in the Pilbara Project because of price hikes for steel, fuel, construction materials, and contract labor. The Company also disclosed that the hampered progress of the Pilbara Project brings in the possibility that the Company may not meet its ore delivery schedule and pushes up costs at resource developments across Western Australia. In May 2005, the Australian Stock Exchange pressured Fortescue to explain matters about the project and to explain how the Company would be able to dispose of its lower grade order for 95% of the price obtained by rivals BHP Billiton and Rio Tinto for their top- quality products. The ASX then referred the matter to the Australian Securities and Investments Commission, which commenced a legal action against the Company. The ASIC alleges that Fortescue is engaged in misleading and deceptive conduct and has failed to comply with its continuous disclosure obligations when it announced various contracts with Chinese entities on August 23 and November 5, 2004. In particular, Fortescue did not disclose that the Chinese parties had not reached a concluded agreement on fundamental aspects of the projects and they had merely agreed that they would in the future jointly develop and agree on the "agreed" matters. The ASIC is seeking civil penalties of up to AU$3 million against Fortescue. * * * Fortescue reported total assets of AU$221 million and total liabilities of AU$84 million as of June 30, 2006. Fortescue reported a net loss for the past two fiscal years. Net loss for the year ended June 30, 2005, was AU$4.52 million and net loss for the year ended June 30, 2006, was AU$2.15 million. GEORGE WOODS: Undergoes Voluntary Liquidation --------------------------------------------- At a general meeting held on September 1, 2006, the members of George Woods Investments Pty Ltd resolved to voluntarily liquidate the company's business and appoint Ian Douglas Haigh as liquidator. The Liquidator can be reached at: Ian Douglas Haigh Level 19, 207 Kent Street Sydney, New South Wales 2000 Australia INTERACTIVE ADMINISTRATION: Enters Voluntary Liquidation -------------------------------------------------------- Members of Interactive Administration Services Pty Ltd convened on August 29, 2006, and agreed that the Company should wind up its operations voluntarily. Peter Charles Hicks was subsequently appointed as liquidator. The Liquidator can be reached at: Peter Charles Hicks Forsythes Chartered Accountants Level 5, 175 Scott Street Newcastle INTERTAX GROUP: Court Orders Scheme Shut Down --------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on August 29, 2006, the Australian Securities and Investments Commission and the Supreme Court of Queensland at Brisbane declared that David Jeremiah Palmer and companies related to him -- the Intertax Group -- operated an unregistered managed investments scheme in breach of the Corporations Act. The Honorable Justice Fryberg also ordered the appointment of Gerald Collins and Matthew Joiner, of Jefferson Collins Joiner Chartered Accountants, as joint and several liquidators to wind up the members of the Intertax Group and the Scheme, the TCR-AP said. In an update, the Supreme Court of Queensland ordered Maxwell Donald Collins, of Sanctuary Cove, Queensland, and Philip James Trudgeon, of Cornubia, Queensland, to stop operating an unregistered managed investment scheme. The Court granted permanent injunctions against Messrs. Collins and Trudgeon restraining them from further promoting or operating the unregistered managed investments scheme conducted by the 17 companies known as the Intertax Group. The orders also restrain Messrs. Collins and Trudgeon from further promoting or operating any other managed investment scheme that is required to be registered under the Corporations Act. Justice Fryberg was satisfied that Messrs. Collins' and Trudgeon's involvement in the operation of the scheme constituted a contravention of the Act and that they had been knowingly involved in the unlawful conduct of the scheme. "We have taken action to close down this scheme, which was not registered with ASIC, to protect investors. It is a timely reminder that people should only accept financial or investment advice from people who are properly licensed and only invest in schemes that comply with the law," Jan Redfern, the ASIC's Executive Director of Enforcement says. The ASIC's investigation in relation to the conduct of the scheme revealed that: * prior to November 2005, a company, of which Messrs. Collins and Trudgeon are directors, called Lifeland Pty Ltd had been involved in property development and had borrowed money from the Intertax Group; * in November 2005, Lifeland, Messrs. Collins and Trudgeon entered into a Deed where they acknowledged they were indebted to Intertax Holdings Pty Ltd for AU$2.1 million with ongoing accruing interest; * in November 2005, Messrs. Collins and Trudgeon, and David Jeremiah Palmer discussed a proposal on behalf of Intertax Holdings and other related entities, which lead to Messrs. Collins and Trudgeon and two companies, Lifeland Developments Pty Ltd and Park Developments Pty Ltd entering into management agreements whereby Lifeland and Park Developments would undertake property development projects with the Intertax Group; * the sole director of Lifeland Developments was Mr. Trudgeon and Park Developments sole director was Mr. Collins; and * between November 2005 and May 2006, Messrs. Collins and Trudgeon through Park Developments and Lifeland, issued unit certificates in trusts which they had purportedly established, to investors in the scheme. The Court also ordered that Messrs. Collins and Trudgeon to provide assistance to the liquidators of Lifeland Developments and Park Developments as might be reasonably requested by them in the winding up of the scheme, provided they are not required to answer any question that may tend to incriminate them in any way. Messrs. Collins and Trudgeon were ordered to pay the ASIC's costs of the hearing on September 12, 2006. About Intertax Group Intertax Group -- http://www.intertax.com.au/-- headquartered in Springwood, Queensland, is a family of companies that offers a range of services for growth, pleasure, and profit in all areas of life. The ASIC sought and obtained the approval of the Supreme Court of Queensland to wind up an unregistered investment scheme being operated by the Intertax Group. Investigative accountants were appointed to prepare a report for the Court in relation to matters concerning the affairs of the Intertax Group. The investigative accountants concluded that: * the scheme was insolvent; * the investors in the scheme were owed in the order of AU$14 million; * there were grounds to suspect that David Jeremiah Palmer and the Intertax Group had contravened the Act and ASIC Act; and * the liabilities of the scheme exceeded its assets by AU$9.7 million. The Court also declared that Mr. Palmer and the Intertax Group had operated an unregistered managed investments scheme in breach of the Act and ordered that Mr. Palmer be permanently restrained from doing so. J KOHLER & SONS: Placed Under Members' Voluntary Liquidation ------------------------------------------------------------ On August 29, 2006, the members of J Kohler & Sons Pty Ltd convened at a general meeting and agreed to voluntarily liquidate the Company's business. In this regard, John Duncan Green was appointed as liquidator. The Liquidator can be reached at: John D. Green BDO Chartered Accountants & Advisers Level 19, 2 Market Street Sydney, New South Wales 2000 Australia JAMES HARDIE: In Talks With Gov't for Possible FFA Amendments ------------------------------------------------------------- James Hardie Industries Limited discloses that it is currently in discussions with the NSW Government in relation to potential and limited amendments to the Final Funding Agreement and related agreements to achieve a satisfactory outcome for all stakeholders which would enable the substantive obligations agreed in the FFA to be implemented in full. James Hardie says progress is being made towards achieving this outcome. The company has also held meetings with the Australian Taxation Office to seek fresh binding rulings in relation to the tax treatment of the SPF, once the proposed amendments have been agreed. The ATO has been cooperative and has indicated that it will treat the determination of the tax treatment as a priority. James Hardie notes there is goodwill among all stakeholders to remove any remaining barriers to the implementation of the FFA. On the assumption that a satisfactory outcome is achieved with the NSW Government and the ATO confirms the parties' understanding of the tax outcomes, James Hardie will hold an extraordinary general meeting of shareholders within 10 weeks of an agreement being reached. According to James Hardie, work to satisfy the other conditions precedent to the FFA is well advanced, including: (a) the preparation of an independent expert's report; (b) an Explanatory Memorandum for shareholders; (c) discussions with lenders and an updated actuarial report by KPMG Actuaries Pty Limited. James Hardie also reveals that there are indications the Medical Research and Compensation Foundation currently has sufficient funds to pay asbestos claims until early 2007. James Hardie relates that it has begun investigating options for providing interim assistance to the MRCF to obtain funding if negotiations with the NSW Government and ATO are more protracted than is currently expected and, as a result, the existing funding available to the MRCF is exhausted before the FFA is implemented in full. About James Hardie James Hardie Industries Limited -- http://www.jameshardie.com/- - manufactures, markets and distributes fiber cement and gypsum products, fiberglass reinforced plastic and PVC products, sanitary ware and bathroom products, insulating materials and fillers, strippers and adhesives. On July 2, 1998, the then public company announced a plan of reorganization and capital restructuring. James Hardie N.V. was incorporated in August 1998 as an intermediary holding company, with all of its common stock owned by indirect subsidiaries of JHIL. Effective as of November 1998, JHIL contributed its fiber cement businesses, its United States gypsum wallboard business, its Australian and New Zealand building systems businesses and its Australian windows business to JHNV and its subsidiaries. On July 24, 2001, JHIL announced a further plan of reorganization and capital restructuring, which reorganization was completed on October 19, 2001. In connection with the 2001 Reorganization, James Hardie Industries N.V., formerly RCI Netherlands Holdings B.V., issued common shares represented by CHESS Units of Foreign Securities on a one for one basis to existing JHIL shareholders in exchange for their shares such that JHINV became the new ultimate holding company for JHIL and JHNV. Following the 2001 Reorganization, JHINV controls the same assets and liabilities as JHIL controlled immediately prior to the 2001 Reorganization. The Company's troubles began with its "under-funded" allocation for asbestos claims, which were brought in by people who suffer or may have diseases caused by exposure to the asbestos-related products produced by JHIL. In 2001, James Hardie set up an independent entity, Medical Research and Compensation Foundation, to handle asbestos claims. The Foundation has warned that it could run out of money within five years. The Asbestos Diseases Foundation of Australia and workers unions called for all the Company's asbestos profits to be immediately placed in the fund. James Hardie was later accused of topping up the dwindling asbestos fund it established. By 2004, James Hardie's former asbestos manufacturing subsidiaries -- Amaca Pty Ltd, Amaba Pty Ltd, and ABN 60 Pty Ltd -- are three of around 150 defendants in asbestos litigation, and based on the Foundation's own figures, they account for US$1,000,000,000 of the predicted US$6,000,000,000 future asbestos liabilities in Australia. Although James Hardie stopped making asbestos products in 1987, the average 35-year latency of mesothelioma, an asbestos-related disease, means asbestos compensation funds will be needed until mid-century. In a 2005 report by a company-hired actuary from KPMG, it was predicted that 4,915 Australians would contract mesothelioma from exposure to Hardie products in the coming decades. When less serious forms of asbestos-related disease are included, James Hardie should expect to compensate 8,725 victims. On December 1, 2005, the Company announced that the NSW Government and a wholly owned Australian subsidiary of the Company -- LGTDD Pty Ltd -- had entered into a conditional agreement to provide long-term funding to a special purpose fund that will provide compensation for Australian asbestos-related personal injury claims against certain former James Hardie asbestos companies. The amount of the asbestos provision of AU$1 billion, at March 31, 2006, is the Company's best estimate of the probable outcome, which estimate includes an actuarial calculation prepared by KPMG Actuaries Pty Ltd of the projected future cash outflows, undiscounted and uninflated, and the anticipated tax deduction arising from Australian legislation which came into force on April 6, 2006. JAMES HARDIE: Will Hold Annual General Meeting on September 19 -------------------------------------------------------------- James Hardie Industries NV will hold an Annual General Meeting on September 19, 2006, at 10:00 a.m., in Westin Sydney, 1 Martin Place, in Sydney, New South Wales. This is the company's Australian information meeting. About James Hardie James Hardie Industries Limited -- http://www.jameshardie.com/- - manufactures, markets and distributes fiber cement and gypsum products, fiberglass reinforced plastic and PVC products, sanitary ware and bathroom products, insulating materials and fillers, strippers and adhesives. On July 2, 1998, the then public company announced a plan of reorganization and capital restructuring. James Hardie N.V. was incorporated in August 1998 as an intermediary holding company, with all of its common stock owned by indirect subsidiaries of JHIL. Effective as of November 1998, JHIL contributed its fiber cement businesses, its United States gypsum wallboard business, its Australian and New Zealand building systems businesses and its Australian windows business to JHNV and its subsidiaries. On July 24, 2001, JHIL announced a further plan of reorganization and capital restructuring, which reorganization was completed on October 19, 2001. In connection with the 2001 Reorganization, James Hardie Industries N.V., formerly RCI Netherlands Holdings B.V., issued common shares represented by CHESS Units of Foreign Securities on a one for one basis to existing JHIL shareholders in exchange for their shares such that JHINV became the new ultimate holding company for JHIL and JHNV. Following the 2001 Reorganization, JHINV controls the same assets and liabilities as JHIL controlled immediately prior to the 2001 Reorganization. The Company's troubles began with its "under-funded" allocation for asbestos claims, which were brought in by people who suffer or may have diseases caused by exposure to the asbestos-related products produced by JHIL. In 2001, James Hardie set up an independent entity, Medical Research and Compensation Foundation, to handle asbestos claims. The Foundation has warned that it could run out of money within five years. The Asbestos Diseases Foundation of Australia and workers unions called for all the Company's asbestos profits to be immediately placed in the fund. James Hardie was later accused of topping up the dwindling asbestos fund it established. By 2004, James Hardie's former asbestos manufacturing subsidiaries -- Amaca Pty Ltd, Amaba Pty Ltd, and ABN 60 Pty Ltd -- are three of around 150 defendants in asbestos litigation, and based on the Foundation's own figures, they account for US$1,000,000,000 of the predicted US$6,000,000,000 future asbestos liabilities in Australia. Although James Hardie stopped making asbestos products in 1987, the average 35-year latency of mesothelioma, an asbestos-related disease, means asbestos compensation funds will be needed until mid-century. In a 2005 report by a company-hired actuary from KPMG, it was predicted that 4,915 Australians would contract mesothelioma from exposure to Hardie products in the coming decades. When less serious forms of asbestos-related disease are included, James Hardie should expect to compensate 8,725 victims. On December 1, 2005, the Company announced that the NSW Government and a wholly owned Australian subsidiary of the Company -- LGTDD Pty Ltd -- had entered into a conditional agreement to provide long-term funding to a special purpose fund that will provide compensation for Australian asbestos-related personal injury claims against certain former James Hardie asbestos companies. The amount of the asbestos provision of AU$1 billion, at March 31, 2006, is the Company's best estimate of the probable outcome, which estimate includes an actuarial calculation prepared by KPMG Actuaries Pty Ltd of the projected future cash outflows, undiscounted and uninflated, and the anticipated tax deduction arising from Australian legislation which came into force on April 6, 2006. JOHN PROPERTIES: Names Richardson as Liquidator ----------------------------------------------- On August 18, 2006, shareholders of John Properties Ltd appointed Anthony Murray Richardson as liquidator. In this regard, Mr. Richardson will be distributing the company's dividend to creditors, excluding those who were unable to prove their claims by September 15, 2006. The Liquidator can be reached at: Anthony Richardson Capital Accounting Associates Limited Level Two, Waterside House 220 Willis Street, Wellington New Zealand P.O. Box 6696, Marion Square Wellington Telephone: (04) 385 4146 Facsimile: (04) 385 4246 e-mail: julie@tonyrichardson.biz JOHNSTON MOTOR: Court Orders Liquidation ---------------------------------------- The High Court at Christchurch has ordered Johnston Motor Company Ltd to liquidate its business. In this regard, Iain Andrew Nellies and Wayne John Deuchrass were appointed as joint and several liquidators. According to the Troubled Company Reporter - Asia Pacific, Fair City Finance Ltd filed the liquidation petition with the Court on July 25, 2006. The Joint and Several Liquidators can be reached at: Iain Andrew Nellies Wayne John Deuchrass c/o Insolvency Management Limited Level Four, 728 Colombo Street (P.O. Box 13-401) Christchurch, New Zealand KOALA QUALITY: Schedules Final Meeting for October 13 ----------------------------------------------------- Members and creditors of Koala Quality Produce Pty Ltd, which is in liquidation, will hold a final meeting on October 13, 2006, at 10:15 a.m., for them to receive Liquidator Peter Ngan's final account showing how the Company was wound up and how its property was disposed of. The Liquidator can be reached at: Peter Ngan Ngan & Co Level 5, 49 Market Street Sydney, New South Wales 2000 Australia LIMTAL CONTRACTING: Members Opt for Voluntary Liquidation ----------------------------------------------------------- The members of Limtal Contracting Pty Ltd met on September 1, 2006, and passed a special resolution to voluntarily liquidate the company's business. Subsequently, Brent Kijurina, of Smith Hancock, was appointed as liquidator at the creditors meeting held that same day. The Liquidator can be reached at: B. Kijurina Smith Hancock, Chartered Accountants Level 4, 88 Phillip Street Parramatta, New South Wales 2150 Australia MARJ PTY: Members and Creditors to Receive Wind-Up Report --------------------------------------------------------- The members and creditors of Marj Pty Ltd, which is in liquidation, will hold a final meeting on October 3, 2006, at 11:00 a.m. During the meeting, Liquidator Stephen Jay will present a report regarding the Company's wind-up and property disposal. The Liquidators can be reached at: Stephen Jay c/o Nicholls & Co Chartered Accountants PO Box 1250 Dubbo, New South Wales 2830 Australia MELTEMI SERVICES: To Declare First and Final Dividend on Oct. 3 --------------------------------------------------------------- Meltemi Services Pty Ltd, which is in liquidation, notifies parties-in-interests of its intention to declare a first and final dividend on October 3, 2006. Unsecured creditors are required to file their proofs of claim by October 2, 2006. Failure to file POCs will exclude creditors from any dividend distribution. The Liquidator can be reached at: Murray Godfrey RMG Partners Level 12/88 Pitt Street Sydney, New South Wales 2000 Australia Telephone:(02) 9231 0889 MIKE'S ELECTRICS: Members Agree to Wind Up Business --------------------------------------------------- The members of Mike's Electrics Pty Ltd convened on August 30, 2006, and agreed to wind up the Company's business operations. Subsequently, Michael John Morris Smith, of Smith Hancock, was appointed as liquidator at a creditors meeting held that same day. The Liquidator can be reached at: Michael John Morris Smith Smith Hancock, Chartered Accountants Level 4, 88 Phillip Street Parramatta, New South Wales 2150 Australia MOFIFU PTY: Final Meeting Set for October 13 -------------------------------------------- Pursuant to Section 509 of the Corporations Act 2001, the members of Mofifu Pty Ltd, which is in liquidation, will hold a final meeting on October 13, 2006, at 10:30 a.m. At the meeting, Liquidator Richard Albarran will present accounts of the company's wind-up proceedings and property disposal. The Liquidator can be reached at: Richard Albarran Hall Chadwick Level 29, 31 Market Street Sydney, New South Wales 2000 ORIGIN PACIFIC: Takes Steps to Wind Up Freight Business ------------------------------------------------------- Origin Pacific Airways disclosed that it had attempted but failed to find a buyer for its freight business. Thus, it is now taking steps to wind up the company, the New Zealand Press Association reports. Origin Pacific notes that it cannot make further comment at this stage. According to the NZPA, several parties have checked the books and two had placed conditional offers, but the parties were unable to negotiate mutually satisfactory terms in the time available. The Troubled Company Reporter - Asia Pacific noted that on August 31, 2006, Origin Pacific advised that it would resume an air charter service, in addition to its freight service, as the division had operated "significantly profitably". Stuff.co.nz notes that the freight business largely consisted of the rights to the cargo space on Qantas domestic Boeing 737 services and a nightly Qantas 767 freighter between Auckland and Christchurch. About Origin Pacific Origin Pacific Airways -- http://www.originpacific.co.nz/-- was initially launched in 1997 as an air charter service and continues to offer charters tailored to the specific needs of business and groups. Origin Pacific Airways operates from its own purpose-built facilities at Nelson Airport. The Company is 100% New Zealand owned and managed and run by people with extensive knowledge of air travel and proven success in running airline businesses. As reported in the Troubled Company Reporter - Asia Pacific on August 11, 2006, Origin Pacific "has lost its struggle to survive" and has suspended operations, putting most of its 260 staff out of work immediately. Thus, Origin Pacific halted its passenger services on August 10, 2006, after it was unable to secure the capital urgently needed to reduce its debt. Origin Pacific had earlier indicated hopes of continuing its freight operations. ORIGIN PACIFIC: M. Pero Withdraws Freight Takeover Offer -------------------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on August 15, 2006, mortgage broking millionaire Mike Pero, who bought a 25% stake Origin Pacific Airways and took a seat on its board of directors, was prepared to take over Origin Pacific's freight business, and to pay the cost to keep it operating in the short term. A report from The Nelson Mail relates that Mr. Pero has pulled the plug on purchasing Origin's freight business, blaming an unfair bidding process. Mr. Pero believed relationships and contracts with Origin's freight suppliers were not secure, the report adds. The report further says Mr. Pero was one of several parties doing due diligence on Origin's freight business it. According to Mr. Pero, the process was taking longer than it should have. He asserted that he was disadvantaged because of favoritism toward other parties interested in the freight division, stuff.co.nz relates. However, The Nelson Mail cites an Origin spokesman, as saying Mr. Pero was subject to the same process of due diligence as other parties. Due diligence is still continuing and offers, including Mr. Pero's, remained on the table, the spokesman said. The spokesman noted that Origin is bound to accept the best offer and hoped to have a result in the next few days, The Nelson Mail says. About Origin Pacific Origin Pacific Airways -- http://www.originpacific.co.nz/-- was initially launched in 1997 as an air charter service and continues to offer charters tailored to the specific needs of business and groups. Origin Pacific Airways operates from its own purpose-built facilities at Nelson Airport. The Company is 100% New Zealand owned and managed and run by people with extensive knowledge of air travel and proven success in running airline businesses. As reported in the Troubled Company Reporter - Asia Pacific on August 11, 2006, Origin Pacific "has lost its struggle to survive" and has suspended operations, putting most of its 260 staff out of work immediately. Thus, Origin Pacific halted its passenger services on August 10, 2006, after it was unable to secure the capital urgently needed to reduce its debt. Origin Pacific, however, indicated hopes of continuing its freight operations. PAUL GROB: To Declare Dividend on September 25 ---------------------------------------------- Paul Grob Bricklaying Pty Ltd, which is in liquidation, will declare its first and final dividend on September 25, 2006. Creditors who are not able to prove their claims by Sept. 24, 2006, will be excluded from sharing in any distribution the Company will make. The Liquidator can be reached at: Peter Hicks Forsythes Level 5, 175 Scott Street Newcastle, New South Wales 2300 Australia PHOENIX CONSTRUCTIONS: Members Resolve to Wind Up Firm ------------------------------------------------------ After a general meeting on August 29, 2006, members of Phoenix Constructions (NSW) Pty Ltd decided to voluntarily wind up the Company's operations. Subsequently, Peter Charles Hicks was appointed as liquidator. The Liquidator can be reached at: Peter Charles Hicks Forsythes Chartered Accountants Level 5, 175 Scott Street Newcastle PLM FORMWORK: Final Meeting Slated for October 13 ------------------------------------------------- A final meeting of the creditors and members of PLM Formwork Pty Ltd, which is in liquidation, will be held on October 13, 2006, at 9:00 a.m. At the meeting, Thomas Javorsky will present a report regarding the Company's wind-up and property disposal activities. The Liquidator can be reached at: Thomas Javorsky c/o Jones Condon Chartered Accountants Level 13, 189 Kent Street Sydney, New South Wales Australia Telephone:(02) 9251 5222 RELIABLE REO: Members and Creditors to Receive Wind-Up Report ------------------------------------------------------------- Members and creditors of Reliable Reo Pty Ltd, which is in liquidation, will hold a final meeting on October 13, 2006, at 11:30 a.m. At the meeting, Liquidator Richard Albarran will present his report on the Company's wind-up and property disposal. The Liquidator can be reached at: Richard Albarran Hall Chadwick Level 29, 31 Market Street Sydney, New South Wales 2000 Australia ROBERTSON ROAD: Faces Liquidation Proceedings --------------------------------------------- A petition to liquidate Robertson Road Development Co Ltd will be heard before the High Court of Auckland on September 21, 2006, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition with the Court on June 20, 2006. The Solicitor for the Petitioner can be reached at: Justin Berryman Technical and Legal Support Group Auckland North Service Centre Inland Revenue Department 5-7 Byron Avenue (P.O. Box 33-150) Takapuna, Auckland New Zealand Telephone: (09) 984 1538 Facsimile: (09) 984 3116 SABA PERSIAN: Appoints Joint Liquidators ---------------------------------------- Shareholders of Saba Persian Cafe Ltd resolved on August 18, 2006 to liquidate Company's business. Subsequently, Iain Andrew Nellies and Paul William Gerrard Jenkins were appointed as joint and several liquidators. The Liquidators can be reached at: Iain Andrew Nellies Paul William Gerrard Jenkins Insolvency Management Limited Level Three, Burns House 10 George Street (P.O Box 1058) Dunedin, New Zealand SOUTHMET PTY: Members Decide to Cease Operations ------------------------------------------------ At an extraordinary general meeting of Southmet Pty Ltd on August 31, 2006, members agreed that it is in the Company's best interests to wind up its operations. Keiran William Hutchison and John Raymond Gibbons were subsequently appointed to oversee the Company's wind-up proceedings. The Liquidators can be reached at: Keiran William Hutchison John Raymond Gibbons Ernst & Young 680 George Street Sydney, New South Wales 2000 Australia Telephone:(02) 9248 5864 SPARMANIA PTY: Final Meeting Scheduled for October 12 ----------------------------------------------------- A final meeting of members of Sparmania Pty Ltd, which is in liquidation, will be held on October 12, 2006, at 10:00 a.m., at the office of Borough Mazars, Level 6, 77 Castlereagh Street, in Sydney, New South Wales. At the meeting, Liquidator John D. Scarfe will report on the company's wind-up proceedings and property disposal exercises. T J BLATCHFORD: Members Resolve to Wind Up Firm ----------------------------------------------- At a general meeting held on August 17, 2006, the members of T J Blatchford Pty Ltd resolved to voluntarily wind up the company's operations. Accordingly, Ronald James Hare was appointed as liquidator. The Liquidator can be reached at: Ronald James Hare Level 2, 55 York Street Sydney, New South Wales Australia T.Y.D.S.E. LIMITED: Names Nellies and Jenkins as Liquidators ------------------------------------------------------------ The High Court at Nelson ordered T.Y.D.S.E. Ltd to liquidate its operations on August 31, 2006. Iain Andrew Nellies and Paul William Gerrard Jenkins were subsequently appointed as joint and several liquidators. According to the Troubled Company Reporter - Asia Pacific, the Commissioner of Inland Revenue filed the petition with the Court on July 4, 2006. The Joint and Several Liquidators can be reached at: Iain Andrew Nellies Paul William Gerrard Jenkins c/o Insolvency Management Limited Level Three, Burns House 10 George Street (P.O Box 1058) Dunedin, New Zealand VILLAGE ROADSHOW: Records AU35.1 Mln Loss for FY-Ended June 2006 ---------------------------------------------------------------- Village Roadshow Limited recorded an after tax loss of AU$35.1 million for the year ended June 30, 2006, consistent with guidance previously provided by the Company. The result compares to a profit re-stated under Australian Equivalents to International Financial Reporting Standards of AU$49.3 million for the year ended June 30, 2005. Excluding material items and discontinued businesses, Village Roadshow recorded attributable net profit of AU$20.1 million compared to AU$35.1 million for the prior year. Reported EBITDA excluding material items and discontinued operations remained strong at AU$174.2 million in the current year, compared to the previous year's AU$197.4 million. During the 2006 financial year a number of material items and losses from discontinued businesses were recorded as a result of substantial progress in relation to the Company's restructuring program. Significant achievements in this program include: (a) the sale of Argentina, the remaining United Kingdom sites, New Zealand and Fiji cinema circuits; (b) settlement of a substantial legal claim; and (c) the financial restructure of the Film Production division. After tax, material items totaled a loss of AU$37.4 million or AU$49.7 million before tax. Approximately AU$39.0 million of this relates to the Film Production division restructure and settlement of legal claims, the company explains. In addition there was an immediate write-off of AU$4.9 million upon the acquisition of a shareholding in Sydney Attractions Group, and other corporate expenses associated with the Film Production restructuring. Discontinued Operations in the period generated a net loss of AU$17.8 million including: * trading losses for Austria and the UK; * trading profits for NZ/Fiji; and * a combined net loss on sale of Argentina and UK partially offset by a profit on sale of New Zealand and Fiji. Further restructuring was completed subsequent to year end, when Village finalized the previously announced acquisition of Warner Bros.' 50% interest in the Theme Parks division, resulting in Village Roadshow owning 100% of the main Theme Parks operations. Village Roadshow has also agreed with the landlords in Austria to hand back the company's two cinemas in that country by the end of September 2006. The financial restructure of the Film Production business involving Crescent Entertainment and extension of the financing facility will enable this business to increase the number of films it produces and has substantially reduced Village Roadshow's cash investment in this business. Village Roadshow asserts that the sale of Cinema Exhibition territories -- Argentina, the remainder of UK, New Zealand/Fiji and the agreement to exit Austria -- will enable the company to focus on core territories where there is strong cash flow and management control, as well as substantially reducing its lease commitments. Moving to 100% ownership of the Theme Parks brings significant strategic and operational benefits to VRL as it simplifies the structure and allows access to 100% of free cash flow, whilst retaining access to the Warner Bros. brand and expertise. The VRL group also made an investment in Sydney Attractions Group during the year which is complementary to the existing Theme Parks business. Austereo produced earnings growth this year, despite the impact of new licences during the year in Sydney and Melbourne. Austereo has achieved strong audience growth, which is a testament to its programming and marketing strategies in a competitive market, and reduced overheads. The Film Distribution division produced a very solid result for the year, down marginally from the previous year's record result. Blockbuster performances from Harry Potter and the Goblet of Fire and Charlie and the Chocolate Factory drove substantially higher box office revenues for Roadshow titles. A full-text copy of Village Roadshow's Financial Report is available for free at: http://www.villageroadshow.com.au/press_releases/pdf/VRL%202006% 20full%20year%20accounts.pdf No Dividend Payment During the period, VRL completed on-market buy backs aggregating approximately 10% of ordinary shares for a total of AU$45.4 million. There are currently 152.6 million ordinary shares and 109.6 million preference shares on issue. The Board of Directors has resolved not to pay a dividend, based on the results for the 2006 financial year. This policy will continue to be reviewed based on the performance of the Company. About Village Roadshow Headquartered in Melbourne, Australia, Village Roadshow Limited -- http://www.villageroadshow.com.au/-- is an international media and entertainment company that operates core businesses in cinema, movie production, film distribution, radio, and theme parks. The Company's troubles began in 2003 when it offered to buy back its preference shares to head off a litigation threat by some preference shareholders who were angered at the Company's suspension of dividend payments. Village Roadshow's reported and budgeted profitability would not allow it to comfortably fund about AU$42 million worth of ordinary and preference share dividends out of annual earnings. For the past years, the Company has been facing major litigation brought by former business partners, who had invested in its film investment scheme. In December 2005, the Film Production division undertook a substantial restructure. As part of this restructure, a US$115 million Promissory Note was issued to Crescent Film Holdings and options to acquire a 50% shareholding in the Hollywood film production and related film exploitation business, Village Roadshow Pictures Group, were granted to Crescent and its affiliates. This initiative, together with the release of a US$70 million security deposit (replaced by a Letter of Credit), returned significant cash reserves to Village Roadshow. By January 2006, Village Roadshow had advised that VRPG had reached agreement with its financiers to increase its film production facility from US$900 million to US$1.4 billion. VRPG will continue to co-produce and co-finance films with its principal production partner, Warner Bros. The revolving period of the facility has also been extended for a further three years. As a result, drawdowns will now be available under the facility until January 2011 (previously February 2008) with the debt now scheduled to be fully repaid by January 2015 (previously January 2012). * * * The Troubled Company Reporter - Asia Pacific reported on March 1, 2006, that Village Roadshow posted a AU$2.21-million loss for the half-year ended December 31, 2006, compared to a net profit of AU$29.99 million in the previous corresponding half. The result is contrary to a profit downgrade in January, which already suggested a break-even figure. The entertainment group blames its poor financial result on lower cinema ticket sales, compounding losses from the restructuring of its movie production business and legal battles. VIXEN VESTMENTS: Appoints Official Liquidator --------------------------------------------- Shareholders of Vixen Investments Ltd appointed Rowan Kingstone as the company's liquidator on August 18, 2006. The Liquidator can be reached at: R. Kingstone KDB Chartered Accountants Limited Chartered Accountants P.O. Box 9200, Auckland New Zealand Telephone: (09) 303 3007 Facsimile: (09) 303 1600 WARRINGTON BUILDERS: Liquidation Process Commenced -------------------------------------------------- The High Court of Christchurch on August 21, 2006, ordered Warrington Builders (2004) Ltd to liquidate its business. In this regard, Iain Andrew Nellies and Wayne Deuchrass were appointed as joint and several liquidators. The Troubled Company Reporter - Asia Pacific reported on August 11, 2006, that Williams Hickman Electrical Ltd filed the petition on July 17, 2006. The Liquidators can be reached at: Iain Andrew Nellies Wayne Deuchrass c/o Insolvency Management Limited Level Four, 728 Colombo Street (P.O. Box 13-401) Christchurch, New Zealand WEST PORT MACQUARIE: Liquidator to Give Wind-Up Report ------------------------------------------------------ Pursuant to Section 509 of the Corporations Act 2001, the members and creditors of West Port Macquarie Bowling Club Ltd, which is in liquidation, will hold a meeting on October 11, 2006, at 11:00 a.m. At the meeting, Liquidator G.A. Russell will report regarding the Company's wind-up and property disposal. The Liquidator can be reached at: G. A. Russell Russell Corporate Advisory Suite 304, Level 3 97 Pacific Highway North Sydney, New South Wales 2060 Australia ZINIFEX LIMITED: Annual General Meeting Set for November 27 ----------------------------------------------------------- Zinifex Ltd will hold its Annual General Meeting on November 27, 2006, at 10:30 a.m., in Zinc Function Centre, Federation Square, Melbourne. About Zinifex Zinifex Limited, one of the world's largest integrated zinc and lead companies -- http://www.zinifex.com/-- is headquartered in Melbourne, Australia. The company owns and operates two mines and four smelters. The mines and two of the smelters are located in Australia and supply the growing industrial markets of the Asian-Pacific region, including China. The company also has a zinc smelter in the Netherlands and the United States. The company sells a range of zinc metal, lead metal, and associated alloys in 20 countries. More than 80% of our products are distributed outside Australia, particularly in Asia, which is experiencing significant growth in construction activity and vehicle production. Zinc is used for steel galvanizing and die-casting and lead for lead acid batteries used mainly in cars and other vehicles. * * * The Troubled Company Reporter - Asia Pacific reported on August 9, 2006, that Fitch Ratings assigned Zinifex a Long-term foreign currency Issuer Default Rating of 'BB+' with a Stable Outlook. ================================ C H I N A & H O N G K O N G ================================ AGILE PROPERTY: Moody's Keeps (P)Ba3 Corp. Family Rating -------------------------------------------------------- Moody's Investors Service affirmed on September 15, 2006, Agile Property Holdings Limited's (P)Ba3 local currency corporate family rating and foreign currency senior unsecured bond rating. The ratings outlook is stable. The affirmation follows the company's decision to increase the size of its bond issuance to US$400 million from US$350 million. "Although the increased debt will slightly raise Agile's projected leverage and weaken its corresponding debt service coverage metrics, it will help improve somewhat its debt maturity profile," says lead analyst Kaven Tsang. Moody's expects to remove the provisional designations for both ratings once the bond issuance has been successfully completed. * * * Agile Property Holdings Limited -- http://www.agile.com.cn-- is a land developer of Guangdong Province, China. It was established in 1985 as a furniture maker in Zhongshan City, and entered the property business in 1992. On December 15, 2005, Agile Property was listed on the Hong Kong Stock Exchange. Agile has a current land bank of 8.3 million square metres. As at July 1, it had 26 property development projects in major cities in the Pearl River Delta region; including Zhongshan, Guangzhou, Huizhou, and Foshan. Agile holds a range of properties, such as villas, duplexes, apartments and condominiums. Besides residential property business, Agile is also engaged in the development of commercial properties, including retail shops and commercial complexes. Moody's Investors Service assigned on September 4, 2006, Agile Property's proposed US$350 million bond issue a provisional Ba3 rating. Standard & Poor's Ratings Services on September 4, 2006, assigned its 'BB' long-term corporate credit rating to Agile Property Holdings Ltd. The outlook is stable. At the same time, it assigned its 'BB' issue rating to a proposed issue of seven-year US$350 million unsecured fixed-rate notes, redeemable after four years. AGILE PROPERTY: S&P Keeps BB Long-Term Corp. Credit Rating ---------------------------------------------------------- Standard & Poor's Ratings Services disclosed on September 15, 2006, that its BB/Stable long-term corporate credit rating and outlook on China-based Agile Property Holdings Limited remain unchanged following the US$50 million increase in the company's 'BB' rated senior notes due 2013. The issue is now upsized to US$400 million and carries a semiannual coupon rate of 9%. The proceeds will be used for land acquisitions. * * * Agile Property Holdings Limited -- http://www.agile.com.cn-- is a land developer of Guangdong Province, China. It was established in 1985 as a furniture maker in Zhongshan City, and entered the property business in 1992. On December 15, 2005, Agile Property was listed on the Hong Kong Stock Exchange. Agile has a current land bank of 8.3 million square metres. As at July 1, it had 26 property development projects in major cities in the Pearl River Delta region; including Zhongshan, Guangzhou, Huizhou, and Foshan. Agile holds a range of properties, such as villas, duplexes, apartments and condominiums. Besides residential property business, Agile is also engaged in the development of commercial properties, including retail shops and commercial complexes. Standard & Poor's Ratings Services on September 4, 2006, assigned its 'BB' long-term corporate credit rating to Agile Property Holdings Ltd. The outlook is stable. At the same time, it assigned its 'BB' issue rating to a proposed issue of seven-year US$350 million unsecured fixed-rate notes, redeemable after four years. ANYPLACE WORKSHOP: Enters Wind-Up Proceedings --------------------------------------------- The High Court of Hong Kong issued a wind-up order against Anyplace Workshop Ltd's operations on August 23, 2006. According to the Troubled Company Reporter - Asia Pacific, Solicitors Leung and Wan filed a wind-up petition against the company on June 27, 2006. BANK OF CHINA: Fitch Keeps Individual Rating at D ------------------------------------------------- Fitch Ratings affirmed on September 15, 2006, Bank of China's: * Long-term foreign currency IDR at A-; * Short-term rating at F2; * Individual affirmed at D; and * Support at 1. The Outlook was revised to Positive from Stable. This action follows the revision in the Outlook on the Long-term foreign and local currency IDRs of the People's Republic of China to Positive from Stable while affirming the ratings at A+ and A, respectively. * * * Headquartered in Beijing, China, the Bank of China -- http://www.bank-of-china.com/-- provides corporate banking, retail banking and investment banking. Other activities include provision of corporate deposits, corporate loans, foreign exchange business, savings deposits, consumer credit and bankcards. It has 12,967 domestic branches and 559 overseas branches. The bank received a US$22.5 billion capital injection from the Government in 2003 to restructure state-owned banks. * * * Moody's Investors Service on August 11, 2006, affirmed the bank's BFSR at D-. BESTAR INTERNATIONAL: Appoints Official Liquidator -------------------------------------------------- Members of Bestar International Industries Ltd on August 21, 2006, passed a special resolution to wind-up the company's operations and appoint Lau Wing Ling as liquidator. By the virtue of an ordinary resolution, an audit of the liquidator's accounts is not required. The Liquidator can be reached at: Lau Wing Ling Unit C, 16/F, Chinaweal Centre 414-424 Jaffe Road Wanchai, Hong Kong BESTNOON LIMITED: Members Opt for Liquidation ---------------------------------------------- On August 18, 2006, members of Bestnoon Ltd passed a special resolution to voluntarily wind up the company's operations and appoint Natalia K M Seng and Susan Y H Lo as joint and several liquidators. By the virtue of an ordinary resolution, an audit of the Liquidators' statements of account is not required. B&P INTERTRADE: Joint and Several Liquidators Named --------------------------------------------------- Chiu Wai Hon and Lau Wai Ming were appointed joint and several liquidators of B&P Intertrade Ltd on August 21, 2006. The Joint and Several Liquidators can be reached at: Chiu Wai Hon Lau Wai Ming Rooms 603-4 6/F, Hang Seng Wanchai Building 200 Hennessy Road Wanchai, Hong Kong BRILLIANT TECHNOLOGY: Court Orders Wind-Up ------------------------------------------ Brilliant Technology Development Ltd received a wind-up order from the High Court of Hong Kong on August 23, 2006. According to the Troubled Company Reporter - Asia Pacific, Steve Julianto Santoso filed the wind-up petition with the court on June 26, 2006. CHINA CONSTRUCTION: Fitch Affirms Bank's Individual D Rating ------------------------------------------------------------ Fitch Ratings affirmed on September 15, 2006, China Construction Bank's: * Long-term foreign currency IDR at A-; * Short-term rating at F2; * Individual at D; and * Support at 1. The Outlook was revised to Positive from Stable. This follows the revision in the Outlook on the Long-term foreign and local currency IDRs of the People's Republic of China to Positive from Stable while affirming the ratings at A+ and A, respectively. * * * The China Construction Bank -- http://www.ccb.cn/-- is one of the "big four" banks in the People's Republic of China. It was founded on October 1, 1954 under the name of "People's Construction Bank of China" and later changed to "China Construction Bank" on March 26, 1996. Standard and Poors ratings on October 19, 2005, upgraded Bank of China's LTFC rating to A-, STFC rating affirmed at F2, Individual rating affirmed at D/E, Support rating upgraded to 1. Fitch Ratings on June 21, 2006, has affirmed China Construction Bank's (CCB) Individual rating at D/E, support rating at 2. On August 28, 2006, the Troubled company Reporter - Asia Pacific reported that Moody's Investors Service affirmed the ratings of China Construction Bank Corporation on the announcement of its plan to acquire 100% of Hong Kong-based Bank of America (Asia) Ltd. China Construction has an A2 long-term deposit rating with a positive outlook and a bank financial strength rating of D- with a stable outlook. At the same time, Moody's has put Bank of America Asia's A1/Prime-1 foreign and Aa3/Prime-1 local currency deposit ratings on review for possible downgrade. ETTORE NASSETTI: Court to Hear Wind-Up Petition ----------------------------------------------- A wind-up petition filed against Ettore Nassetti (Asia) Ltd will be heard before the High Court of Hong Kong on September 13, 2006, at 9:30 a.m. Travelex Hong Kong Ltd filed the petition on July 21, 2006. The Solicitors for the Petitioner can be reached at: S. K. Lam, Alfred Chan & Co. 202, 2nd Floor Dina House, Ruttonjee Centre 11 Duddell Street Central, Hong Kong FRANKLIN TEMPLETON: Joint Liquidators Cease to Act for Company -------------------------------------------------------------- Chan Wah Tip, Michael and Ho Man Kei, Keith ceased to act as joint and several liquidators for Franklin Templeton Institutional Asia Ltd on August 22, 2006. According to the Troubled Company Reporter - Asia Pacific, shareholders received the Joint Liquidators' wind-up report on August 22, 2006 The Joint Liquidators can be reached at: Chan Wah Tip, Michael Ho Man Kei, Keith 601 Prince's Building Chater Road, Central Hong Kong GOLDEN HARVEST: Court Favors Wind-Up ------------------------------------ The High Court of Hong Kong issued a wind-up order against Golden Harvest Film Productions Ltd on August 23, 2006. According to the Troubled Company Reporter - Asia Pacific, United Harvest Asia Ltd filed the petition before the Court on June 23, 2006. HALOKING CONSTRUCTION: Court Issues Wind-Up Order ------------------------------------------------- Haloking Construction Company Ltd was ordered on August 23, 2006, by the High Court of Hong Kong to wind up its operations. The Troubled Company Reporter - Asia Pacific reported that Sellmax Ltd filed the petition on June 19, 2006. HIH MANAGEMENT: To Hold Annual Meetings on October 5 ---------------------------------------------------- Members and creditors of HIH Management (Asia) Ltd will convene for their annual meetings at 20/F, Prince's Building, 10 Chater Road, Central, Hong Kong on October 5, 2006, 10:00 a.m. and 10:30 a.m. respectively. At the meetings, Liquidator Jan G W Blaauw will present accounts of the Company's wind-up proceedings and the manner its properties were disposed of. HING FUNG: Liquidation Bid Hearing Slated for September 20 ---------------------------------------------------------- The High Court of Hong Kong will hear a liquidation petition against Hing Fung Precious Metals Company Ltd on September 20, 2006, at 9:30 a.m. Law Chun Wai filed the petition with the Court on July 24, 2006. The Solicitor of the Petitioner can be reached at: Joe Poon 34/F, Hopewell Centre 183 Queen's Road East Wanchai, Hong Kong HONGKONG HOTEL: Names Kit as Liquidator --------------------------------------- Members of Hong Kong Hotel Entertainment Associate Trade Ltd appointed Tsang Wai Kit as liquidator on August 26, 2006. Mr. Tsang can be reached at: Tsang Wai Kit 6/F, May May Building Nos. 683-685 Nathan Road Mongkok, Hong Kong HTL GARMENTS: Receives Wind-Up Order from Court ----------------------------------------------- The High Court of Hong Kong issued a wind-up order against HTL Garments Company Ltd on August 23, 2006. According to the Troubled Company Reporter - Asia Pacific, South China Garments Company Ltd filed the petition with the court on June 5, 2006. The petition was heard before the court on August 23, 2006. IAC BANK: Fitch Affirms Individual D/E Ratings ---------------------------------------------- Fitch Ratings affirmed on September 15, 2006, Industrial and Commercial Bank of China's: * Long-term foreign currency IDR at A-; * Individual at D/E; and * Support affirmed at 1. The Outlook was revised to Positive from Stable. This action follows the revision in the Outlook on the Long-term foreign and local currency IDRs of the People's Republic of China to Positive from Stable while affirming the ratings at A+ and A, respectively. * * * The Industrial and Commercial Bank of China -- http://www.icbc.com.cn-- is the largest state-owned commercial bank, and is authorized by the State Council and the People's Bank of China (PBOC). ICBC conducts operations across China as well as in major international financial centers. ICBC operates through more than 22,000 domestic outlets, 71 overseas branches and offices and about 1,000 correspondent banks worldwide. The bank has approximately 100 million personal customers, 2.8 million consumer credit clients, and approximately 400 million personal savings accounts in China. ICBC also conducts business through its overseas holding subsidiaries such as ICBC (Asia), Industrial and Commercial International Capital and Industrial and Commercial East Asia Finance holding. LITAK SHIPPING: Appoints Joint and Several Liquidators ------------------------------------------------------ On August 28, 2006, Ricky P.O. Chong and Cordelia Tang were appointed as joint liquidators of Litak Shipping Company Ltd. The Joint Liquidators can be reached at: Ricky P. O. Chong Cordelia Tang 905 Silvercord, Tower 2 30 Canton Road, Tsimshatsui Kowloon, Hong Kong MASSEY ENERGY: Earns US$3.2 Million in 2nd Quarter Ended June 30 ---------------------------------------------------------------- Massey Energy Company reported net income of US$3.2 million compared to US$37 million in 2005. The Company disclosed that produced coal revenues for its second quarter ended June 30, 2006, increased to US$492.5 million from US$487.1 million in the second quarter of 2005. EBITDA was US$77.5 million in the second quarter of 2006 compared to US$112.0 million in the second quarter of 2005. The Company said that the second quarter volume and financial results continued to be impacted by the fire-related idling of the Aracoma longwall and the productivity performance that has challenged Massey's room and pillar deep mines for several quarters. "The good news is that the Aracoma longwall returned to production July 19th and is operating normally," said Don L. Blankenship, Massey Chairman and CEO. "I would like to personally thank all the management staff and hourly personnel who worked so tirelessly to return the Aracoma mine to production." With the Aracoma longwall in operation again, the Company is taking a fresh look at all other mining operations. Massey has elected to idle four underground mining sections and to discontinue production at the Rockhouse longwall after it completes its current panel, in mid-August. The Company is also reducing staff and new miner training at a number of other higher cost mines to decrease costs at those operations. "Central Appalachia coal mining has been, and continues to be, under significant cost pressure," said Mr. Blankenship. "Labor, productivity, environmental, and regulatory factors are increasingly difficult to forecast. We are disappointed that these pressures continue to impact our financial performance and we are determined to implement a variety of cost reduction initiatives." Nevertheless, Massey continues to lead Central Appalachia in produced and shipped tonnage and reserve holdings and believes it continues to be the low cost producer. "Our focus continues to be on enhancing shareholder value," said Mr. Blankenship. "The restart of the Aracoma longwall and the start-up of the Twilight dragline, along with the other steps we are taking to control costs, should expand margins going forward." Liquidity and Capital Resources Massey ended the second quarter with available liquidity of $303.5 million, including US$69.5 million available on its asset-based revolving credit facility and US$234.0 million in cash. Total debt at the end of the quarter was US$1,107.6 million compared to total debt of US$1,113.3 million at Dec. 31, 2005. Massey's total debt-to-book capitalization ratio increased to 61.1% at June 30, 2006 from 59.8% at Dec. 31, 2005. The capitalization ratio for Dec. 31, 2005, has been adjusted to reflect the impact of the non-cash adjustment to retained earnings required by the adoption of Emerging Issues Task Force Issue 04-6 on Jan. 1, 2006. After deducting available cash of US$234.0 million and restricted cash of US$105.0 million, which supports letters of credit, net debt totaled US$768.6 million. Total net debt-to-book capitalization was 52.2% at June 30, 2006, compared to 48.0% at Dec. 31, 2005, as adjusted. Capital expenditures, which totaled US$85.3 million in the second quarter of 2006 compared to US$111.8 million in the second quarter of 2005, were US$161.6 million in the first half of 2006 versus US$197.8 million in the first six months of 2005. Excluding estimated lease buyouts of US$28 million, capital spending is expected to total between US$260 and US$270 million for 2006. Depreciation, depletion and amortization (DD&A) was US$57.2 million in the second quarter of 2006 compared to US$60.5 million in the second quarter of 2005. For the year to date, DD&A totaled US$113.9 million compared to US$118.9 million for the first six months of 2005. DD&A is expected to total between US$235 and US$245 million for the full year 2006. Based in Richmond, Virginia, Massey Energy Company (NYSE: MEE) - - http://www.masseyenergyco.com/-- produces Central Appalachian coal, with subsidiaries serving more than 125 utility, industrial and metallurgical customers around the world. The company has operations in China. * * * As reported on the Troubled Company Reporter on Aug. 2, 2006, Standard & Poor's Ratings Services lowered its corporate credit rating on Richmond, Virginia-based Massey Energy Co. to 'B+' from'BB-', reflecting its expectation of weaker-than-anticipated financial performance; increased debt leverage; and concerns about aggressive shareholders. The outlook is stable. MIRACLE TIME: Winds Up Business Operations ------------------------------------------ At a general meeting of the members of Miracle Time Investment Ltd on August 21, 2006, it was agreed that a voluntary wind-up of the Company's operations is appropriate and necessary. In this regard, Simon Blade and Bruno Arboit were appointed as Joint and Several Liquidators. The Joint and Several Liquidators can be reached at: Simon Blade Bruno Arboit Room 1203-13 12/F, China Merchants Tower Shun Tak Centre 168-200 Connaught Road Central, Hong Kong PRODUCT SAFETY (H.K.): Names A.G. Hung as Liquidator ---------------------------------------------------- On August 25, 2006, shareholders of Product Safety Coordination (International) Ltd resolved to voluntary wind up the Company's operations. Accordingly, Andrew George Hung was named Liquidator of the Company. The Liquidator can be reached at: Andrew George Hung Unit 801B, Dina House Ruttonjee Centre 11 Duddell Street, Central Hong Kong PRODUCT SAFETY (INTERNATIONAL): Appoints New Liquidator ------------------------------------------------------- On August 25, 2006, shareholders of Product Safety Coordination (International) Ltd resolved to voluntary wind up the Company's operations. Subsequently, Andrew George Hung was appointed liquidator of the company. The Liquidator can be reached at: Andrew George Hung Unit 801B, Dina House Ruttonjee Centre 11 Duddell Street, Central Hong Kong QING YUAN: Enters Wind-Up Proceedings ------------------------------------- The High Court of Hong Kong will hear a wind-up petition against Qing Yuan Enterprises Ltd on September 13, 2006, at 9:30 a.m. Umbrella Finance Company Ltd filed the petition with the Court on July 21, 2006. The Solicitors for the Petitioner can be reached at: Clifford Chance 29/F, Jardine House One Connaught Place Central, Hong Kong SANIC INTERNATIONAL: Liquidators Step Aside ------------------------------------------- Lai Kar Yan Derek and Darach E. Haughey ceased to act as Liquidators of Sanic International Ltd on August 22, 2006. According to the Troubled Company Reporter - Asia Pacific, the presentation of Liquidators' wind-up report were conducted on the same day. The Liquidator can be reached at: Lai Kar Yan, Derek Darach E. Haughey 35/F, One Pacific Place 88 Queensway Hong Kong SUPRA ENGINEERING: Court to Hear Liquidation Petition on Sept.27 ---------------------------------------------------------------- A liquidation petition filed against Supra Engineering Ltd will be heard before the High Court of Hong Kong on September 27, 2006, at 9:30 a.m. Yeung Kim Ho filed the petition with the court on July 26, 2006. The Solicitor for the Petitioner can be reached at: Joe Poon 34/F, Hopewell Centre 183 Queen's Road East Wanchai, Hong Kong VACATION TRAVEL: Court Issues Wind-Up Order ------------------------------------------- On August 23, 2006, the High Court of Hong Kong ordered Vacation Travel Company Ltd to wind up its operations. The Troubled Company Reporter - Asia Pacific previously reported that on June 28, 2006, Pang San Ming filed a petition before the court to wind-up the company's operations. WAH SAN: Members Resolve to Wind Up Operations ---------------------------------------------- On August 18, 2006, members of Wah San Diecasting Company Ltd resolved to voluntarily wind up its operations and appoint Lau Yuen Yee as liquidator. The Liquidator can be reached at: Lau Yuen Yee Room 1702, 17/F Tung Hip Commercial Building 248 Des Voeux Road Central, Hong Kong YICK TUNG: Joint Liquidators Cease to Act for the Company --------------------------------------------------------- Lai Kar Yan Derek and Darach E. Haughey ceased to act as joint and several liquidators for Yick Tung (China) Bonded-Warehousing & Trading Co. Ltd on August 22, 2006. According to the Troubled Company Reporter - Asia Pacific the Joint Liquidators presented a report on the company's wind-up proceedings, on that day. The Joint Liquidators can be reached at: Lai Kar Yan Derek Darach E. Haughey 35/F, One Pacific Place 88 Queensway Hong Kong YIP FUNG: Faces Liquidation Proceedings --------------------------------------- On July 26, 2006, Elitak Machinery Ltd filed before the High Court of Hong Kong a liquidation petition against Yip Fung Textiles Company Ltd. The petition will be heard before the court on September 27, 2006, at 9:30 a.m. The Solicitor for the Petitioner can be reached at: C. K. Mok & Co. 1st Floor, O.T.B. Building No. 259-265 Des Voeux Road Central Hong Kong Y.S. KNITTING: Liquidation Process Initiated --------------------------------------- On August 23, 2006, the High Court of Hong Kong issued a wind-up order against the operations of Yiu Sing Knitting Company Ltd. The Troubled Company Reporter - Asia Pacific previously reported that Wong Chi Keung, Joe filed a petition to wind-up the company's operation before the court on June 23, 2006. ========= I N D I A ========= CITY UNION BANK: Posts 25.14% Rise in Net Profit ------------------------------------------------ City Union Bank Ltd. reported a 25.14% rise in net profit from INR125.11 crore for the quarter ending June 30, 2005, to INR156.56 crore for the quarter ending June 30, 2006, according to the bank's financials submitted to the Mumbai Stock Exchange. Operating income increased by 19.91% from INR739.55 crore for the first quarter 2005-06 to INR886.78 crore for the first quarter 2006-07, spurred by 25.81% increase in interest on advance, 7.26% increase in investment income to INR674.87 crore and INR206.00 crore, respectively. The bank's total income amounted to INR981.67 crore for the first quarter ended June 30, 2006, a 20.89% improvement against the INR812.02 crore it recorded a year ago. As of June 30, 2006, the bank has a 12.65% capital adequacy ratio, way above the prescribed 9.00%. The bank's financial results for the quarter ended June 30, 2006, are available for free at: http://bankrupt.com/misc/tcrap_cityunion091506.pdf About City Union Bank City Union Bank Limited -- http://cityunionbank.com/-- provides savings accounts, current accounts, fixed deposits, cash certificates, monthly savings, VIP deposit schemes, Flexifix deposits, CUB Smart deposits and the insurance linked Multiple Benefits Plan. As reported in the Troubled Company Reporter - Asia Pacific on August 8, 2006, Fitch Ratings affirmed City Union's Individual and Support ratings at 'D/E' and '5', respectively. CITY UNION BANK: Releases AGM Results ------------------------------------- Members of City Union Bank Limited, at the company's Annual General Meeting on August 18, 2006, approved: -- the adoption of the Profit & Loss Account for the year ended March 31, 2006, the Balance Sheet as on that date, the Report of the Directors and Auditors; -- the declaration of dividend at the rate of INR4 per equity share for the financial year ended March 31, 2006; -- re-appointment Shri VR Arunachalam, Dr S Kasinathan, Shri M Mahalingam & Shri P Vaidyanathan as directors of the bank; and -- the appointment of M/s Abarna & Ananthan, Chartered Accountants, Bangalore as the Statutory Central Auditors of the bank from the conclusion of this Annual General Meeting until the conclusion of the next Annual General Meeting, on remuneration, terms & conditions. The members also authorized the board of directors to: * make application to the Central Government for exemption from Branch Audit; * arrange for audit of such branches as are not exempted; and * appoint the Branch Auditors for audit of such of the branches for the year 2006-07 in consultation with bank's Statutory Central Auditors and fix their remuneration. In addition, members also appointed Shri S Bernard as director of the bank, liable to retire by rotation. About City Union Bank City Union Bank Limited -- http://cityunionbank.com/-- provides savings accounts, current accounts, fixed deposits, cash certificates, monthly savings, VIP deposit schemes, Flexifix deposits, CUB Smart deposits and the insurance linked Multiple Benefits Plan. As reported in the Troubled Company Reporter - Asia Pacific on August 8, 2006, Fitch Ratings affirmed City Union's Individual and Support ratings at 'D/E' and '5', respectively. CITY UNION BANK: Targets INR10,000 Crore Turnover for 2007 ---------------------------------------------------------- City Union Bank Ltd. is targeting to achieve INR10,000 crore in turnover by the end of financial year 2006-07, the bank said in a press release. The Bank expects to have additional 24 branches before March 2007, taking the entire network to 170 branches to facilitate achieving the turnover target. As part of the plan, City Union Bank has appointed Integrated Enterprises (India) Ltd., as a business facilitator for marketing its fixed deposits. Integrated Enterprises is a 30-year old company with a network of 106 branches across the country. This association would benefit the bank to garner more deposits from the public, even from locations where the bank does not have a branch. City Union Bank is in the process of setting up "Integrated Advisory Kiosks" at select branches of City Union Bank with the help of Integrated Enterprises, through which mutual funds and other financial products will be sold to the bank's customers. About City Union Bank City Union Bank Limited -- http://cityunionbank.com/-- provides savings accounts, current accounts, fixed deposits, cash certificates, monthly savings, VIP deposit schemes, Flexifix deposits, CUB Smart deposits and the insurance linked Multiple Benefits Plan. As reported in the Troubled Company Reporter - Asia Pacific on August 8, 2006, Fitch Ratings affirmed City Union's Individual and Support ratings at 'D/E' and '5', respectively. FORD MOTOR: UAW Agrees to Voluntary, System-Wide Buyouts -------------------------------------------------------- Ford Motor Company and the United Auto Workers has reached an agreement on voluntary, system-wide buyouts for more than 75,000 UAW-represented hourly workers at Ford Motor Company. "Once again, our members are stepping up to make hard choices under difficult circumstances," said UAW President Ron Gettelfinger. "Now, it's Ford Motor Company's responsibility to lead this company in a positive direction -- which means using the skills, experience and dedication to quality that UAW members demonstrate every day in order to deliver quality vehicles to customers." A variety of buyout and incentive packages will be available, depending on the length of service and other eligibility factors. All active UAW Ford hourly workers will be eligible for at least one of the programs, which will be offered on a one-time basis only due to current conditions in the industry, including Ford's continued loss of market share. The buyout packages include retirement incentives, early retirement, pre-retirement leave, incentives for workers to terminate their employment at Ford and special educational opportunities. UAW Ford workers currently assigned to Automotive Components Holding facilities will have the opportunity to flow back to any job openings created at Ford as a result of the buyout packages. No UAW Ford hourly worker will have his or her contractual rights compromised as a result of these buyout packages, and no worker will be involuntarily separated from Ford Motor Company, the union disclosed. A summary of the terms and conditions of the packages is available for free at http://researcharchives.com/t/s?11ad The buyouts are part of Ford's move to accelerate its "Way Forward" turnaround plan initiated early this year. 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. On Aug. 22, 2006, Dominion Bond Rating Service placed long-term debt rating of Ford Motor Company Under Review with Negative Implications following announcement that Ford will sharply reduce its North American vehicle production in 2006. DBRS lowered on July 21, 2006, Ford Motor Company's long-term debt rating to B from BB, and lowered its short-term debt rating to R-3 middle from R-3 high. DBRS also lowered Ford Motor Credit Company's long-term debt rating to BB(low) from BB, and confirmed Ford Credit's short-term debt rating at R-3(high). 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. On July 24, 2006, Moody's Investors Service lowered the Corporate Family and senior unsecured ratings of Ford Motor Company to B2 from Ba3 and the senior unsecured rating of Ford Motor Credit Company to Ba3 from Ba2. The Speculative Grade Liquidity rating of Ford has been confirmed at SGL-1, indicating very good liquidity over the coming 12-month period. The outlook for the ratings is negative. HMT LIMITED: Net Loss Climbs 730.13% in June Quarter ---------------------------------------------------- HMT Limited reports a net loss of INR1,295 lakhs for the quarter ended June 30, 2006, a 730.13% increase from the net loss it reported in the previous corresponding period. Income from operations more than halved from INR4,904 lakhs for the three months ending June 30, 2005, to INR1,994 lakhs in the same period this year. That and the absence of non-operational income brought down the company's total income to INR2,254 lakhs for the quarter ending June 30, 2006, from INR5,942 lakhs a year ago. HMT Limited's Profit/Loss Statements for the quarter ended June 30, 2006, includes these financial data (In INR Lakhs) Quarter ended June 30, 2006 June 30, 2005 ------------- ------------- Income from operations 1,994 4,904 Other operational income 260 301 Other non-operational income - 737 Total income 2,254 5,942 Total expenditure 3,398 5,917 Interest 39 65 Depreciation 105 110 Loss before tax 1,288 150 Net loss 1,295 156 About HMT Limited HMT Limited -- http://www.hmtindia.com/-- is an engineering conglomerate. The company retains the Tractor's Business, which develops tractors ranging from 25 horsepower to 75 horsepower. It has an installed capacity of 18,000 tractors for manufacturing and assembly operations. The Company has three tractor manufacturing units in India located at Pinjore in Haryana, Mohali in Punjab, and Hyderabad in Andhra Pradesh. The subsidiaries of the company include HMT Machine Tools Limited, HMT Watches Limited, HMT Chinar Watches Limited, HMT (International) Limited, HMT Bearings Limited and Praga Tools Limited. The principal segments include Machine tools, Watches, Tractors, Bearings and Exports. The Company has a Joint Venture with SUDMO HMT Process Engineers (India) Limited, Bangalore. * * * Credit Analysis and Research Limited downgraded HMT's long term bond issue of INR310 crore to CARE BB(SO) on February 18, 2005. At the same time, the company's medium term bond issue of INR40.40 crore was likewise downgraded to CARE BB(SO). Instruments rated 'Double B' are considered to be speculative, with inadequate protection for interest and principal payments. IFCI LTD: Loss After Tax for June Quarter Improves 65% ------------------------------------------------------ IFCI Ltd. registered a loss after tax of INR15.61 crore for the quarter ended June 30, 2006, a 65% improvement against the INR44.83 crore loss after tax it posted in the previous corresponding quarter, according the company's financials. The result was driven by a 67.33% decrease in write-offs and provisions for bad accounts. IFCI only provided INR67.87 crore in the first quarter of 2006, as opposed to the INR207.76 crore for the first quarter of 2005. The company reported a 33.33% decline in total income, from INR384.49 crore in the first quarter of 2005 to INR256.31 crore in the first quarter of 2006. Operating expenses amounted to INR8.15 crore, almost unchanged from the year before. IFCI Ltd.'s Profit/Loss Statements for the quarter ended June 30, 2006, include these financial data (in INR crore) Quarter ended June 30, 2006 June 30, 2005 ------------- ------------- Operational income 252.01 381.83 Other income 4.30 2.66 Total income 256.31 384.49 Cost of borrowings 193.57 210.85 Operating expenses 8.15 8.09 Total expenditure 271.85 429.28 Loss before tax 15.54 44.79 Loss after tax 15.61 44.83 About IFCI Limited IFCI Limited -- http://www.ifciltd.com/-- is established to cater the long-term finance needs of the industrial sector. The principal activities of IFCI include project finance, financial services, non-project specific assistance and corporate advisory services. Project finance involves providing credit and other facilities to green-field industrial projects (including infrastructure projects), as well as to brown-field projects. Financial services covers a range of activities wherein assistance is provided to existing concerns through various schemes for the acquisition of assets, as part of their expansion, diversification and modernization programs. Non- project specific assistance is provided in the form of corporate/short-term loans, working capital, bills discounting, etc to meet expenditure, which is not specifically related to any particular project. Its investment portfolio includes equity shares, preference shares, security receipts and government securities. * * * Fitch Ratings, on June 29 2006, affirmed IFCI Limited's support rating at '4'. The outlook on the rating is stable. Additionally, on February 15, 2006, Credit Analysis and Research Limited retained a CARE D rating to the long and medium term debt aggregating INR248 crore. Instruments carrying this rating are judged to be of the lowest category. They are either in default or likely to be in default soon. IFCI LIMITED: Installs New Director ----------------------------------- IFCI Limited has informed the Bombay Stock Exchange in a regulatory filing that Shri Thomas Mathew T, MD LIC, has been appointed as director to fill the casual vacancy and Sh P G Muralidharan, IAS Officer (Retd), has been appointed as additional director of the Board. IFCI Limited -- http://www.ifciltd.com/-- is established to cater the long-term finance needs of the industrial sector. IFCI's principal activities include project finance, financial services, non-project specific assistance and corporate advisory services. Project finance involves providing credit and other facilities to green-field industrial projects (including infrastructure projects), as well as to brown-field projects. Financial services covers a range of activities wherein assistance is provided to existing concerns through various schemes for the acquisition of assets, as part of expansion, diversification and modernization programs. Non-project specific assistance is provided in the form of corporate/short- term loans, working capital, bills discounting, etc to meet expenditure, which is not specifically related to any particular project. Its investment portfolio includes equity shares, preference shares, security receipts and government securities. * * * Fitch Ratings, on June 29 2006, affirmed IFCI Limited's support rating at '4'. The outlook on the rating is stable. Additionally, on February 15, 2006, Credit Analysis and Research Limited retained a CARE D rating to the long and medium term debt aggregating INR248 crore. Instruments carrying this rating are judged to be of the lowest category. They are either in default or likely to be in default soon. INDUSTRIAL DEVELOPMENT: CRISIL Rates INR30-B Flexi Bonds at AA+ --------------------------------------------------------------- CRISIL has assigned AA+/Stable rating to INR30 billion Flexi Bonds and the INR10 billion Lower Tier II Bonds of Industrial Development Bank of India. Furthermore, it has re-affirmed AA+/Stable rating to bonds Issue (including the aggregated of INR1.45 billion subordinated bonds of the erstwhile IDBI Bank), INR30 billion Flexi Bonds, INR89.45 billion Omni Bonds and the certificate deposit Programme. It has also affirmed AA+/Stable rating to INR55.25 billion Omni Bonds, which has been enhanced from INR50 billion. The Fixed Deposit Programme has been re-affirmed as FAAA/Stable and the Certificate of Deposit Programme as P1+. The INR50 billion Short Term Debt Programme, which has been enhanced from INR25 million has also been affirmed P1+. About Industrial Development Bank Headquartered in Mumbai, India, Industrial Development Bank of India -- http://www.idbi.com/-- is a commercial bank that offers a range of products, including secured loans, such as housing loans, mortgage loans and loan against securities, and unsecured loans, such as personal loans, educational loans and overdrafts to merchant establishments. It also distributes third-party products, such as insurance and mutual fund products to its retail customers. IDBI also offers project financing, film financing, equipment financing, asset credits, corporate loans, working capital loans, direct discounting, financing of receivables, venture capital funds, bill rediscounting, rehabilitation financing, foreign exchange and merchant banking. * * * The Troubled Company Reporter - Asia Pacific reported on July 28, 2006, that Moody's Investors Service has assigned a financial strength rating of D- and long- and short-term foreign currency deposit ratings of Ba2/Not-Prime to Industrial Development Bank of India Limited. All ratings have stable outlooks. The bank's existing Baa2 foreign currency senior unsecured debt rating is unaffected by this action. Additionally, Standard & Poor's Ratings Services gave Industrial Development Bank of India's long-term foreign issuer credit a BB+ rating on April 19, 2006. INDUSTRIAL DEVELOPMENT: UWB Merger Has No Effect on Ratings ----------------------------------------------------------- Standard & Poor's Ratings Services on September 14, 2006, said that its ratings and outlook on public sector bank Industrial Development Bank of India Ltd (BB+/Positive/B) are not affected by the Reserve Bank of India clearing a merger proposal between United Western Bank Ltd. and IDBI. The merger proposal requires IDBI to pay INR28 for each UWB share, amounting to a total of INR1.50 billion, and to assume the assets and liabilities of UWB according to the conditions in the proposal. This is the first instance in India where an acquirer bank is required to compensate the shareholders of a bank under moratorium. UWB's branch network in the affluent western Maharashtra region in India and its wide depositor base is expected to boost IDBI's distribution network and grow its retail portfolio. The UWB purchase will have a negligible impact on IDBI's reported shareholders' funds of INR66.59 billion as of March 31, 2006. Standard & Poor's, however, expects UWB's weaker asset quality to impact IDBI's financial profile negatively. UWB's loan quality and recovery from its INR40 billion loan portfolio is a concern, given its regulatory net NPL ratio of 5.66% as of March 31, 2006, is significantly above the peer group average of about 2%. Standard & Poor's will continue to monitor the impact on IDBI's financial profile. About UWB United Western Bank Limited -- http://www.uwbankindia.com/-- operates a network of over 200 banks in India. The group's banks provide a full range of services, including retail and merchant banking, investment management, treasury and NRI services, credit card services and assorted ATM facilities. Credit Analysis and Research Limited has placed the CARE B+ (very high credit risk/susceptible to default) rating to the outstanding INR86.2 crore subordinated Tier II bond issues of United Western Bank under "credit watch" with developing implications. About Industrial Development Bank Headquartered in Mumbai, India, Industrial Development Bank of India -- http://www.idbi.com/-- is a commercial bank that offers a range of products, including secured loans, such as housing loans, mortgage loans and loan against securities, and unsecured loans, such as personal loans, educational loans and overdrafts to merchant establishments. It also distributes third-party products, such as insurance and mutual fund products to its retail customers. IDBI also offers project financing, film financing, equipment financing, asset credits, corporate loans, working capital loans, direct discounting, financing of receivables, venture capital funds, bill rediscounting, rehabilitation financing, foreign exchange and merchant banking. * * * The Troubled Company Reporter - Asia Pacific reported on July 28, 2006, that Moody's Investors Service has assigned a financial strength rating of D- and long- and short-term foreign currency deposit ratings of Ba2/Not-Prime to Industrial Development Bank of India Limited. All ratings have stable outlooks. The bank's existing Baa2 foreign currency senior unsecured debt rating is unaffected by this action. Additionally, Standard & Poor's Ratings Services gave Industrial Development Bank of India's long-term foreign issuer credit a BB+ rating on April 19, 2006. INDUSTRIAL DEVELOPMENT: Books INR15-Crore Profit in 1st Quarter --------------------------------------------------------------- Industrial Development Bank of India posted a net profit of INR151 crore for the first quarter of fiscal year 2006-07, against INR109 crore in the same quarter last fiscal year, reflecting an increase of 39%, the bank said in a press release. Highlights of Q1 FY07 financial results: * Net profit at INR151 crore (INR109 crore in Q1 of 2005-06) * Total business up 27% to INR81,733 as of end of June 2006 * Deposits increase by 73% in the first quarter * Advances up by over 10% year-on-year * Cost of funds declines to 6.61& from 7.14% as of end of June 2005 * Net NPAs down to 1.02% as of end of June 2006 (1.51% as of end of June 2005). Operating profit rose by over 22% to INR192 crore in the reported quarter against INR158 crore a year ago. Profit form sales of investments went up by 22% to INR148crore, and accounted for 52% of other income reported in the quarter. The bank decreased its operating expenses by 6% to INR190 crore compared to INR201 crore in the previous corresponding period. Business As of June 30, 2006, IDBI's total business stood at INR81,733 crore against a INR64,490 crore as of June 30, 2005. In the reporting quarter, deposits increased by 73% to INR29,096 crore, while retail assets go up from INR658 crore to nearly INR9,270 crore. Investment portfolio follows the upward trend to INR27,243 crore. Total assets as of June 30, 2006, stood at INR89,615 crore, 8% better than the INR82,659 crore a year before. Non-Performing Assets Sustained recovery efforts during the quarter saw IDBI's sticky assets decline by INR98 crore, giving the bank a gross NPA to gross advances ratio of 2.09% as of June 30, 2006, from 2.47% a year ago. Net NPA also declined to 1.02%. Capital Adequacy Ratio IDBI continued to maintain a sound capital base as indicated by its capital adequacy ratio. The bank's CAR stood at 14.00%, with its Tier-I CAR at 11.44% as of the end of June 2006. RBI's stipulated norm is 9%. The bank's financial report for the quarter ended June 30, 2006, is available for free at: http://bankrupt.com/misc/tcrap_IDBI091506.pdf About Industrial Development Bank Headquartered in Mumbai, India, Industrial Development Bank of India -- http://www.idbi.com/-- is a commercial bank that offers a range of products, including secured loans, such as housing loans, mortgage loans and loan against securities, and unsecured loans, such as personal loans, educational loans and overdrafts to merchant establishments. It also distributes third-party products, such as insurance and mutual fund products to its retail customers. IDBI also offers project financing, film financing, equipment financing, asset credits, corporate loans, working capital loans, direct discounting, financing of receivables, venture capital funds, bill rediscounting, rehabilitation financing, foreign exchange and merchant banking. * * * The Troubled Company Reporter - Asia Pacific reported on July 28, 2006, that Moody's Investors Service has assigned a financial strength rating of D- and long- and short-term foreign currency deposit ratings of Ba2/Not-Prime to Industrial Development Bank of India Limited. All ratings have stable outlooks. The bank's existing Baa2 foreign currency senior unsecured debt rating is unaffected by this action. Additionally, Standard & Poor's Ratings Services gave Industrial Development Bank of India's long term foreign issuer credit a BB+ rating on April 19, 2006. LLOYDS FINANCE: Posts INR5.93M Net Loss in Quarter Ended June 30 ---------------------------------------------------------------- Lloyds Finance Ltd posted a net loss of INR5.93 million for the quarter ending June 30, 2006, almost half of the previous year's net loss of INR10.86 million, the company said in a regulatory filing to the Bombay Stock Exchange. Total income increased to INR0.39 million during the quarter in review, from INR0.09 million the previous year, while operating expenses decreased to INR6.32 million. The regulatory filing included these financial data (in INR millions): Quarter ended June 30, 2006 June 30, 2005 ------------- ------------- Total income 0.39 0.09 Operating expenses 6.32 7.19 Operating loss 5.93 7.10 Net loss 5.93 10.86 About Lloyds Finance Lloyds Finance Ltd. provides financial services including leasing, hire purchase, merchant banking, equity research, corporate finance, portfolio management, forex and other advisory services. The company's fixed deposits and senior unsecured debt carry Credit Analysis and Research Limited's CARE D rating. Additionally, Lloyds Finance's short-term FD 3800, long-term NCD 217 and OFCD 517 all carry a CARE D rating effective on August 31, 2006. LLOYDS FINANCE: Members Pass All AGM Resolutions ------------------------------------------------ Members of Lloyds Finance Limited approved all resolutions tabled at the company's Annual General Meeting held on August 18, 2006. During the meeting, members approved: -- the adoption of the Profit & Loss Account for the period ended March 31, 2006, and the Balance Sheet as at that date and the Directors Report and Auditors Report; -- the reappointment of Shri. Basant Bhoruka as director of the company; -- the appointment of M/s. Vijay H Shah & Co., Chartered Accountants, Mumbai, as auditors of the company to hold office from the conclusion of the meeting until the conclusion of the next Annual General Meeting of the members of the company, on remuneration, terms & conditions; and -- the reappointment of Shri. Pankaj R Desai as Managing Director of the company, for a period of five years with effect from November 1, 2006, on remuneration, terms and conditions. About Lloyds Finance Lloyds Finance Ltd. provides financial services including leasing, hire purchase, merchant banking, equity research, corporate finance, portfolio management, forex and other advisory services. The company's fixed deposits and senior unsecured debt carry Credit Analysis and Research Limited's CARE D rating. Additionally, Lloyds Finance's short-term FD 3800, long-term NCD 217 and OFCD 517 all carry a CARE D rating effective on August 31, 2006. ORIENTAL BANK: Posts INR940.20-Mil Net Profit for June Quarter -------------------------------------------------------------- Oriental Bank of Commerce recorded a net profit of INR940.20 million for the quarter ended June 30, 2006, as compared with the INR435.30-million net profit for the quarter ended June 30, 2005, the bank said in a regulatory filing with the Bombay Stock Exchange. Total income has increased from INR10.83 billion for the quarter ended June 30, 2005, to INR13.04 billion for quarter ended June 30, 2006. Oriental Bank's financial report is available for free at: http://bankrupt.com/misc/tcrap_orientalbank091506.pdf About Oriental Bank of Commerce Headquartered in New Delhi, India, Oriental Bank of Commerce -- http://www.obcindia.com/-- is a scheduled commercial bank. The company's domestic services include deposits, comprised of term deposits, savings accounts, current accounts and the Suvidha deposit scheme; advances, which consist of corporate advances, a range of retail credit products and specialty schemes, and government business, comprised of direct tax collection, pension disbursement and savings bonds. It also provides non-resident Indian banking solutions, including non-resident external accounts, non-resident ordinary accounts, foreign currency non- resident accounts and resident foreign currency accounts. It also offers debit card services. The bank also provides treasury services and merchant banking services. The bank has introduced products and services, such as Anywhere Branch Banking, Cash Management Service, Telebanking, automated teller machines and Internet banking through select branches. During the fiscal year ended March 31, 2006, the Bank had a total of 1,148 branches. * * * The Troubled Company Reporter - Asia Pacific reported on August 21, 2006, that Fitch Ratings assigned a Long-term foreign currency issuer default rating of BB+ to Oriental Bank of Commerce. The Bank's individual and support ratings have been affirmed at C/D and 4, respectively. The outlook on the ratings is stable. ORIENTAL BANK: In Talks for Strategic Association ------------------------------------------------- Oriental Bank of Commerce has informed the Bombay Stock Exchange that the chairman and managing director of the bank, as well as CMDs of the Corporation Bank and Indian Bank, are meeting on September 15, 2006. The three banks are to discuss a strategic business association for their customer's mutual benefit. About Oriental Bank of Commerce Headquartered in New Delhi, India, Oriental Bank of Commerce -- http://www.obcindia.com/-- is a scheduled commercial bank. The company's domestic services include deposits, comprised of term deposits, savings accounts, current accounts and the Suvidha deposit scheme; advances, which consist of corporate advances, a range of retail credit products and specialty schemes, and government business, comprised of direct tax collection, pension disbursement and savings bonds. It also provides non-resident Indian banking solutions, including non-resident external accounts, non-resident ordinary accounts, foreign currency non- resident accounts and resident foreign currency accounts. It also offers debit card services. The bank also provides treasury services and merchant banking services. The bank has introduced products and services, such as Anywhere Branch Banking, Cash Management Service, Telebanking, automated teller machines and Internet banking through select branches. During the fiscal year ended March 31, 2006, the Bank had a total of 1,148 branches. * * * The Troubled Company Reporter - Asia Pacific reported on August 21, 2006, that Fitch Ratings assigned a Long-term foreign currency issuer default rating of BB+ to Oriental Bank of Commerce. The Bank's individual and support ratings have been affirmed at C/D and 4, respectively. The outlook on the ratings is stable. UCO BANK: Posts INR61.5 Crore Net Profit in First Quarter --------------------------------------------------------- UCO Bank posted a net profit of INR61.50 crore for the first quarter of fiscal year 2007, a jump of 36% from INR45 crore in the previous corresponding period, the bank said in a press release. Operating profit also rose by 29% to INR233.70 from INR181 crore in the first quarter of the previous financial year. Interest income posted a growth of 22.18% during the same period and it grew to INR1,223 crore from INR1,001 crore. Total income recorded a Year-on-Year growth of 23% during the quarter and grew to INR1336 crore from INR1,084 crore. Interest income from advances registered an increase of INR204.36 crore with a higher growth of 35.11%. Non-interest income also increased by INR23.26 crore, the growth rate being 34.44%. Deposits increased from INR47,277 crore to INR55,595 crore registering a growth of 17.60% year-on-year. The growth rate in Advances is more robust at 29.02%. Advances increased from INR28,687 crore as of June 30, 2005 to INR37,014 crore. UCO BANK achieved a total business level of INR92,609 crore as of June 30, 2006, as against INR75,964 crore as of June 30, 2005, recording a year-on-year growth of 21.91%. The gross NPAs and net NPAs have come down in absolute terms during the period from INR1,362 crore and INR836 crore to INR1,267 crore and Rs.763 crore respectively. The Gross NPA Ratio declined to 3.42% as of June 30, 2006, as against 4.75% as on June 30, 2005, The Net NPA Ratio is also down to 2.09% as of June 30, 2006 from 2.95% a year ago. The capital adequacy ratio improved to 11.91% compared to 10.53% a year ago and is well above the minimum required level of 9%. The bank raised capital by INR230 crore through the issue of Innovative Perpetual Debt Instruments ranking for tier -I capital and another amount of INR500 crore by issuance of bonds ranking for upper tier -II Capital during the quarter ended June 30, 2006. During the quarter in review, the bank has also launched Core Banking Solution at six branches. The bank has targeted to introduce CBS facility in 20 more branches by September 2006. "Anywhere-Branch-Banking" has been introduced at 155 branches. UCO Bank's financial report is available for free at: http://bankrupt.com/misc/tcrap_ucobank091506.pdf About UCO Bank UCO Bank Limited -- http://www.ucobank.in/-- is a commercial bank that also operates in two international financial centers, Hong Kong and Singapore. It has approximately 2000 service units spread all over India. It undertakes foreign exchange business in more than 50 centers in India. The company also has foreign exchange dealing operations at four centers. It caters to the segments of economy, such as agriculture, industry, trade & commerce, service sector and infrastructure sector. * * * The Troubled Company Reporter - Asia Pacific reported on June 20, 2006, that Fitch Ratings upgraded UCO Bank's Individual rating to 'D' from 'D/E'. At the same time, Fitch affirms the bank's support ratings at 4. All ratings are with a stable outlook. UCO BANK: Nearly 10,000 Staff Face Layoff After Automation ---------------------------------------------------------- UCO Bank expects that 40% of its current staff will be rendered redundant once all of its branches are automated and networked, the Business Standard reports. The bank has recently implemented a core banking solution, and expects nearly 10,000 out of its more than 25,000 workers to be laid off with in the next two to three years as the CBS system gets completed. As early as now, the bank is re-deploying the "excess" workforce. The staff that would become surplus would go through re-orientations for undertaking sales and marketing responsibilities, which are key to success of any universal bank in a competitive market. The Standard explains that the bank took the first steps at tackling the issue of surplus staff with the launch of a dedicated sales force for small enterprises and businesses in Bangalore. It plans to replicate this move in the rest of the country over a period. The major focus of the sales force will be on financing traders, and small players in real estate. The team will also mobilize current accounts and sell insurance and MF products to businessmen. About UCO Bank UCO Bank Limited -- http://www.ucobank.in/-- is a commercial bank that also operates in two international financial centers, Hong Kong and Singapore. It has approximately 2000 service units spread all over India. It undertakes foreign exchange business in more than 50 centers in India. The company also has foreign exchange dealing operations at four centers. It caters to the segments of economy, such as agriculture, industry, trade & commerce, service sector and infrastructure sector. * * * The Troubled Company Reporter - Asia Pacific reported on June 20, 2006, that Fitch Ratings upgraded UCO Bank's Individual rating to 'D' from 'D/E'. At the same time, Fitch affirms the bank's support ratings at 4. All ratings are with a stable outlook. ================= I N D O N E S I A ================= BANK MANDIRI: Increases Number of Shares Via MSOP ------------------------------------------------- PT Bank Mandiri increased the number of its shares through a Management Stock Option Program at the Surabaya Stock Exchange beginning September 14, 2006, Antara News reports, citing the stock exchange's division head, Umi Kulsum. According to the report, the MSOP raised the number of Bank Mandiri shares by 379,909 to 20,107,737,342 at the Stock Exchange. Headquartered in Jakarta, Indonesia, PT Bank Mandiri (Persero) Tbk's -- http://www.bankmandiri.co.id/-- services include: Internet banking, consumer banking, commercial banking and corporate banking. The bank's subsidiaries consist of: Bank Mandiri (Europe) Limited, which is the bank's representative in Europe; PT Bank Syariah Mandiri, which is a bank within the syariah banking system; PT Usaha Gedung Bank Dagang Negara, which is a property management company; PT Mandiri Sekuritas, which is an investment management company, and PT Bumi Daya Plaza, which is a property management company. The bank is supported by 10 regional offices, 54 hub offices, 98 community offices, 334 spoke offices, 423 cash offices, four international offices and one representative office. The bank has overseas operations in the Cayman Islands, China, Hong Kong, London, and Singapore. * * * The Troubled Company Reporter - Asia Pacific reported on May 22, 2006, that Moody's Investors Service upgraded Bank Mandiri's long-term deposit rating to B2 from B3, with a stable outlook. Bank Mandiri's short-term deposit rating of Not-Prime, and bank financial strength rating of E+ are unaffected. A subsequent TCR-AP report on May 29, 2006, stated that Moody's upgraded these ratings for Bank Mandiri Persero (P.T.), Cayman Islands, under the revised foreign currency ceilings: -- Subordinated debt rating: to Ba3 from B1 with stable outlook; and -- Senior debt rating: to Ba3 from B1 with stable outlook. A TCR-AP report on May 24, 2006, said that Fitch Ratings affirmed Bank Mandiri's: * Long-term Foreign and Local Currency Issuer Default Ratings at 'BB-'; * Short-term rating at 'B'; * Individual rating at 'D'; and * Support rating at '4'.The outlook for the ratings is stable. BANK NIAGA: Increases Shares Via Employee Stock Option Program -------------------------------------------------------------- PT Bank Niaga Tbk increased the number of its shares at the Surabaya Stock Exchange through an Employee Stock Option Program, Antara News reports. According to Antara, the number of Bank Niaga shares went up by 23,776,000 to 11,884,110,679 at the Stock Exchange. About Bank Niaga Headquartered in Jakarta, Indonesia, PT Bank Niaga Tbk -- http://www.bankniaga.com-- has a license to operate as a commercial bank, a foreign exchange bank and a bank engaged in activities based on Syariah principles. The bank's products and services include: Funding, Consumer Financing, Business Financing, Credit and Debit Cards, Private Banking, Preferred Circle, e-Banking, Corporate Trust, Bancassurance and Treasury Indicator. The bank's subsidiaries consist of: PT Niaga Aset Manajemen and PT Saseka Gelora Finance. As of January 31, 2006, the Bank operates 54 domestic branches, 145 domestic supporting branches, 22 domestic payment points, seven Syariah units and one overseas branch. * * * As reported by the Troubled Company Reporter - Asia Pacific on July 6, 2006, Moody's Investors Service has placed Bank Niaga's E+ bank financial strength rating on review for possible upgrade. These ratings were unaffected: -- Issuer rating of Ba3. Outlook stable; -- Subordinated debt rating of Ba3. Outlook stable; and -- Long-term/short-term deposit ratings of B2/Not Prime. Outlook stable. Additionally, Fitch Ratings on June 30, 2005 assigned a B+ rating to Bank Niaga's proposed USD100m, 10 year subordinated debt issue. At the same time, Fitch has affirmed the bank's existing ratings including Long-term Senior foreign currency rating of 'BB-' (BB minus), Individual rating of D, and Support rating of 4. The Outlook remains Positive. BANK RAKYAT: Increases Shares Via Stock Option Program ------------------------------------------------------ PT Bank Rakyat Indonesia multiplied its shares through a Management Stock Option Program at the Surabaya Stock Exchange beginning September 14, 2006, Antara News says, citing the stock exchange's listing division head, Umi Kulsum. The MSOP had raised the number of Bank Rakyat shares by 547,500 to 12,081,794,450 at the Surabaya Stock Exchange. About Bank Rakyat Indonesia Headquartered in Jakarta, Indonesia, PT Bank Rakyat Indonesia (Persero) Tbk's -- http://www.bri.co.id/-- clients services comprise Savings, Credits and Syariah. In addition, the bank divides its financial and business services into three groups: Business Services, consisting of bank guarantees, bank clearance, automatic teller machines and safe deposit boxes; Financial Services, consisting of bill payments, CEPEBRI, INKASO, deposit acceptance, online transactions and transfers, and Other Services, consisting of tax and fine payments, donations, Western Union and zakat contributions. During the year ended December 31, 2005, the bank had one branch office in Cayman Islands and two representative offices in New York and Hong Kong, respectively. * * * A Troubled Company Reporter - Asia Pacific report on May 24, 2006, stated that Fitch Ratings affirmed Bank Rakyat Indonesia's: -- Long-term Foreign Currency Issuer Default Rating 'BB-'; -- Short-term 'B'; -- Individual 'C/D'; -- Support '4'. The outlook for the ratings is stable. A subsequent TCR-AP report on July 6, 2006, indicated that Moody's Investors Service has placed Bank Rakyat Indonesia's D- bank financial strength rating on review for possible upgrade. BRI's other ratings were unaffected: -- Subordinated debt of Ba3; and -- Long-term/short-term deposit ratings of B2/Not Prime. Outlook stable. HM SAMPOERNA: Enters into Trademark License Pact with PM -------------------------------------------------------- PT Hanjaya Mandala Sampoerna Tbk and Philip Morris Products SA signed a Trademark License Agreement on September 11, 2006, Antara News says, citing corporate secretary Suartini Harintho as telling the Jakarta Stock Exchange. According to the report, Sampoerna has licensed Philip Morris to produce cigarettes both under direct and indirect agreements in specific areas. The agreement came into effect from Sept 11 indefinitely, Antara notes. It will cease to be effective when either of the parties agree to end the contract. The Troubled Company Reporter - Asia Pacific reported on May 20, 2005, that 97% of Indonesian cigarette maker Sampoerna has been acquired by U.S. firm Philip Morris. About Philip Morris PT Philip Morris Indonesia is an affiliate of Philip Morris International and was established in 1998 when PMI took over full control of its production facilities in Malang, East Java. PMI currently controls 14.5% of the global cigarette market share and employs over 60,000 people worldwide. PMI's brands are made in more than 50 factories around the world and are sold in more than 160 markets. In 2005, PMI's cigarette production reached 43 billion pieces, or 5.7%, to 804.5 billion pieces driven primarily by the acquisition of Sampoerna and Coltabaco in Colombia, volume growth across Eastern Europe and in Turkey, and a one time inventory sale in Italy. The acquisition of Sampoerna allowed PMI to become the majority sharholder or 97.95% of one of Indonesia's leading cigarette producing companies. About HM Sampoerna Surabaya, East Java-based PT Hanjaya Mandala Sampoerna Tbk -- http://www.sampoerna.com/-- manufactures hand rolled and machine-rolled clove-blended cigarettes. The company distributes its products in the domestic and international market. Through its subsidiaries, the company also develops properties. Standard and Poors gave HM Sampoerna's Long Term Foreign Issuer Credit a 'BB+' rating effective on November 3, 2005. PERUSAHAAN GAS: To Drill in Sumatra to Find Gas in Coal Seams ------------------------------------------------------------- PT Perusahaan Gas Negara is planning to drill as many as five exploration wells in South Sumatra in 2007 to study the possibility of extracting gas from coal seams, Bloomberg News relates. PGN aims to use the gas to secure supply in 2009 for pipelines that will connect South Sumatra province to Java, where demand for the fuel is rising, Bloomberg says, citing PGN President Director W.M.P. Simandjuntak. "We want to see whether the gas can be developed economically," Mr. Simandjuntak said after signing an agreement with the Musi Rawas regency government on the development of coal-bed methane. Bloomberg explains that factories and power stations in Indonesia are shifting to gas due to the rise in global oil prices. The Indonesian Government, which is encouraging the use of alternative energy sources, said that South Sumatra province has an estimated 183 trillion cubic feet of coal-bed methane reserves, of which 30% is located in the Musi Rawas area. PGN plans to extract at least 200 million cubic feet of gas from the coal seams once development is completed, Mr. Simandjuntak said. About Perusahaan Gas Negara Headquartered in Jakarta, Indonesia, PT Perusahaan Gas Negara (Persero) Tbk -- http://www.pgn.co.id-- is a gas and energy company that is comprised of two core businesses: distribution and transmission. For distribution, PGN signs long-term supply agreements with upstream operators, which give the company scheduled and reliable gas volumes and fixed gas prices. These volumes are subsequently sold to commercial and industrial customers under gas sales agreements. Under these agreements, sales volumes are take-or-pay and the gas pricing is fixed and in US dollar. On the transmission business, PGN ships gas on behalf of the upstream suppliers under a fixed US dollar tariff with ship-or-pay volumes agreements. The company is 59.4% owned by the Government of Indonesia. * * * The Troubled Company Reporter - Asia Pacific reported on June 28, 2006, that Fitch Ratings Agency assigned these ratings to PT Perusahaan Gas Negara Tbk on June 27: -- Long-term foreign currency Issuer Default Rating 'BB-'; -- Long-term local currency IDR 'BB-'; and -- PGN Euro Finance 2003 Limited's IDR1.12-trillion notes due 2014 and IDR1.35-trillion notes due 2013 guaranteed by PGN and its subsidiaries 'BB-'. Additionally, the TCR-AP said on May 23, 2006, that Moody's Investors Service has upgraded the foreign currency debt rating of PGN Euro Finance 2003 Ltd. and guaranteed by PT Perusahaan Gas Negara to Ba3 from B1. This rating action follows Moody's decision to upgrade Indonesia's foreign currency sovereign rating for bonds from B2 to B1. At the same time, Moody's has affirmed the Ba2 corporate family rating of PGN. The rating outlook is stable. Standard & Poor's Rating Services had, on Nov. 24, 2005, affirmed its 'B+' rating on PGN. TELKOMSEL INDONESIA: Starts Offering 3G Service ----------------------------------------------- PT Telekomunikasi Selular Indonesia has officially begun offering first high-speed wireless service for mobile phones following its successful trial operation in August, Xinhua News reports, citing local press. According to the report, the third-generation, or 3G, service allows users to download video clips and surf the Internet on their mobile phones at high speed. Currently, the 3G service is only available in Jakarta, The Jakarta Post notes. Bambang Riadhy Oemar, PT Telkomsel's director for planning and development, said that the cellular phone operator had "built 300 base transceiver stations in Jakarta to provide 3G service." Telkomsel would soon expand coverage to other cities, including Bandung in West Java, Surabaya in East Java and Medan in North Sumatra, Mr. Bambang added. He also said that Telkomsel would increase the number of base transceiver stations to 600 by the end of 2006 so as to be able to provide high-speed wireless service in these cities. Furthermore, Mr. Bambang stated that Telkomsel will invest about IDR3 trillion to increase the number of base transceiver stations to 3,000 within three years as it expands its 3G coverage. As many as 60,000 customers have registered for the service since Telkomsel launched the trial operation, Mr. Bambang noted. Xinhua relates that Telkomsel is one of five companies that won licenses to operate 3G mobile telecommunications services in Indonesia. Aside from Telkomsel, the Government also awarded 3G service operating rights to PT Indosat, PT Excelcomindo Pratama, PT Natrindo Telepon Seluler and PT Hutchison CP Telecommunications. About Telkomsel PT Telekomunikasi Selular Indonesia -- http://www.telkomsel.com/ -- is the leading operator of cellular telecommunications services in Indonesia by market share. By the end of June 2006, Telkomsel had close to 29.3 million customers which based on industry statistics represented a market share of more than 50%. Telkomsel provides GSM cellular services in Indonesia, through its own nationwide Dual band 900/1800 MHz GSM network, and internationally, through 259 international roaming partner in 153 countries as of June 2006. The company provides its subscribers with the choice between two prepaid cards-simPATI and kartuAs of a pre-paid simPATI service, or the post-paid kartuHALO service, as well as a variety of value-added services and programs. * * * A Troubled Company Reporter - Asia Pacific report on Dec. 20, 2005 stated that Standard & Poor's Ratings Services raised the foreign currency corporate credit ratings of PT Telekomunikasi Selular from BB- to BB+ with a stable outlook, and its local currency corporate rating from BB to BB+ with a stable outlook, following a review of the impact of risk factors such as economic structure, growth prospects, political stability, depth and liquidity of capital markets and transfer and convertibility risk. Another TCR-AP report said that Fitch Ratings gave Telekomunikasi Selular a BB long term issuer default rating, effective on August 18, 2006. The outlook is stable. Additionally Fitch Ratings gave the company a BB+ local currency rating and a BB- foreign currency rating. Both ratings carry a positive outlook. * Budget Deficit Will Be 1%-2% of GDP, Finance Minister Says ------------------------------------------------------------ Indonesia's budget deficit in 2006 will be around 1% to 2% of its gross domestic product, Bloomberg News cites Finance Minister Sri Mulyani Indrawati as saying. Minister Mulyani said that growth is "picking up very fast" and government spending in the second half is expected to be healthy. Indonesia expects growth of 6.3% in 2007, Minister Mulyani adds. Indonesia needs to boost spending after a doubling of fuel prices and a surge in borrowing costs slowed consumer spending in the nation. Growth in the US$276 billion economy may slow to 5.2% this year from 5.6% in 2005, the IMF said in a report last week. * * * As reported in the TCR-AP on July 27, 2006, Standard & Poor's Ratings Service raised its long-term foreign currency rating for Indonesia to 'BB-' from 'B+', and the long-term local currency rating to 'BB+' from 'BB'. S&P also affirmed the country's 'B' short-term rating. ========= J A P A N ========= ASAHI LIFE: S&P Changes Outlook on BB Ratings to Positive --------------------------------------------------------- Standard & Poor's Ratings Services, on September 15, 2006, revised its outlook to positive from stable on its 'BB-' long- term counterparty and financial strength ratings on Asahi Mutual Life Insurance Co., reflecting the company's improving financial profile, competitive position, and customer base. The long-term ratings were affirmed. Asahi Life has adopted a new business model focusing on highly profitable individual insurance, buoying its financial position. The company's surrender and lapse ratio is on a declining trend, indicating improvement in its customer base and competitive stance in the market. The insurer's latent profit on domestic stock holdings jumped to JPY220.4 billion in fiscal 2005 (ended March 31, 2006) from JPY14.1 billion a year earlier, due to a surge in stock prices. The company's self-defined core capital -- excluding unrealized gains on stock, plus contingency and price fluctuation reserves -- also increased by JPY32.8 billion. Asahi Life's capitalization is improving at a moderate pace, but it is still below an investment grade-level. The company's new annualized premiums continued to fall in fiscal 2005, albeit at a slower rate, declining 0.5%. Asahi Life is putting a midterm focus on turning around its business in- force, and its surrender and lapse ratio improved to 6.82% in fiscal 2005 from 8.13% the previous year. For the year, premium income from new policies finally exceeded the income lost on surrendered and lapsed policies. As a mutual company, Asahi Life's access to capital markets is limited. As a result, the company will likely attempt to strengthen its capitalization by retaining earnings and cutting stock holdings to reduce investment risk. The ratings may be raised if the insurer is able to maintain the recovery trend in its market position and customer base while continuing to accumulate retained earnings and reduce investment risk. DOANE PET: Posts US$5.4-Million Net Loss in April Quarter --------------------------------------------------------- Doane Pet Care Company recorded a US$5,406,000 net loss for the quarter ended April 1, 2006, versus a net income of US$7,176,000 earned during the same period in the prior fiscal year. Net sales in the first quarter of fiscal 2006 decreased 11.0%, or US$29.4 million, to US$237.7 million from US$267.1 million in the first quarter of fiscal 2005. The decrease in net sales was primarily due to lower domestic sales volumes, including lower promotional activity, the discontinuation of domestic non- manufactured product distribution services, and unfavorable foreign currency exchange rate fluctuations. At April 1, the Company's balance sheet showed total assets of US$1,106,822,000 and total liabilities of US$805,641,000. A full-text copy of the Company's quarterly report is available for free at http://researcharchives.com/t/s?c97 Headquartered in Brentwood, Tennessee, Doane Pet Care Company -- http://www.doanepetcare.com/-- is the largest manufacturer of private label pet food and the second largest manufacturer of dry pet food overall in the United States. The company sells to approximately 550 customers around the world and serves many of the top pet food retailers in the United States, Europe and Japan. The company offers its customers a full range of pet food products for both dogs and cats. * * * As reported in the Troubled Company Reporter on April 28, 2006, Standard & Poor's Ratings Services placed its ratings on Doane Pet Care Co. on CreditWatch with positive implications. This included the 'B+' corporate credit rating and other ratings on the company. Doane Pet's 10-5/8% Senior Subordinated Notes due 2015 carry Moody's Investors Service's Caa1 rating. KANA SOFTWARE: Files Registration Statement for Stock Sale ---------------------------------------------------------- KANA Software, Inc., filed with the United States Securities and Exchange Commission on Sept 8, 2006, a registration statement on Form S-1 relating to the offer and sale of up to 5,277,665 outstanding shares of the common stock and 2,393,233 shares of common stock that may be issued on the exercise of outstanding warrants by: * NightWatch Capital Partners, LP; * NightWatch Capital Partners II, LP; and * RHP Master Fund, Ltd. including an additional 478,647 shares of common stock of which may be issued on the exercise of the warrants that may be issued upon the occurrence of an event of dilution resulting from stock splits, stock dividends or similar transactions or change in the exercise price by the selling stockholders. KANA will not receive any of the proceeds from the sales by the Selling Stockholders of the shares covered by the September 8 prospectus. The Company will pay the expenses related to the registration of the Shares covered by this prospectus. The Selling Stockholders will pay commissions and selling expenses, if any, incurred by them. As of Aug. 31, 2006, there were 34,517,637 shares of common stock outstanding and issued, excluding shares exercisable under warrants that KANA has issued. The Shares offered in the prospectus, represents 22.2% of the total outstanding and issued shares of the Company's common stock as of Aug. 31, 2006, excluding shares exercisable under warrants that the Company has issued. A full-text copy of the prospectus is available for free at: http://researcharchives.com/t/s?11a0 Going Concern Doubt As reported in the Troubled Company Reporter on July 12, 2006, KANA Software, Inc.'s auditor, Burr, Pilger & Mayer LLP, expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statement for the year ending Dec. 31, 2005. Burr Pilger pointed to the Company's recurring losses from operations, net capital deficiency, negative cash flow from operations and accumulated deficit. About KANA KANA Software, Inc., provides multi-channel customer service software applications. KANA's integrated solutions allow companies to deliver service across all channels, including email, chat, call centers and Web self-service, so customers have the freedom to choose the service they want, how and when they want it. The Company's target market is the Global 2000 with a focus on large enterprises with high volumes of customer interactions, such as banks, telecommunications companies, high- tech manufacturers, healthcare organizations and government agencies. The Company is headquartered in Menlo Park, California, with offices in Japan, Hong Kong, Korea and throughout the United States and Europe. LIVEDOOR CO: Ex-CEO Says Horie Ordered Accounts Manipulation ------------------------------------------------------------ Former Livedoor Company Chief Financial Officer Ryoji Miyauchi on September 15, 2006, appeared before the Tokyo District Court to testify at Takafumi Horie's fifth hearing, Kyodo News reports. Mr. Horie -- Livedoor's former president -- and Mr. Miyauchi are among the former Livedoor executives accused of tampering with the company's financial statements for the year ended Sept. 30, 2004, and spreading false information on a subsidiary's takeover of a publisher in October-November 2004 to raise the subsidiary's stock price and corporate value, Kyodo says. According to the report, Mr. Horie has pleaded not guilty to the charges against him, while Mr. Miyauchi, who had admitted to the charges against him and insisted that Mr. Horie played the central role in the allegations. Mr. Miyauchi told the court that Mr. Horie directed efforts to falsify Livedoor's financial information, Bloomberg News relates. "There would have been no need to manipulate earnings without an order from Horie, right?" Mr. Miyauchi said in an interview with Bloomberg News. "As I already testified at my trial, the company didn't have to do it." Mr. Horie's counsel, however, denied the charges, saying Horie was not a "dictator of Livedoor" and he was on an equal footing with Miyauchi within the company, Bloomberg says. Mr. Miyauchi, a certified tax accountant, joined Livedoor's predecessor, Livin' on the Edge, as a director in July 1999, Kyodo News reports. He was in charge of financial transaction matters and expanded the corporate group through corporate acquisitions. He is scheduled to testify as a key witness for the prosecution at Mr. Horie's trial through the ninth hearing slated for Sept. 29. As reported in the Troubled Company Reporter - Asia Pacific on August 21, 2006, Mr. Horie's trial kicked off on Sept. 4. The court is slated to hold a total of 26 hearings by Nov. 28 in an attempt to hand down a ruling before next March. * * * Headquartered in Tokyo, Japan, Livedoor Company, Limited -- http://corp.livedoor.com/en/-- is involved in out portal site "livedoor," financial business, corporate web solutions, data center and IP telephony business. The Troubled Company Reporter - Asia Pacific reported on January 18, 2006, that former Livedoor President Takafumi Horie and other Livedoor directors were found to have conspired to cover up the Company's JPY310-million pre-tax loss for the business year ended September 2004, by tampering financial accounts to instead show an inflated pre-tax profit of JPY5.03 billion. Moreover, Mr. Horie and the Company executives allegedly relayed false information on a merger, with the intent to boost the stock price of Livedoor Marketing Co. Following the accounting scandal surrounding the Company in January 2006, Livedoor's stock price plunged to JPY94 per share from over JPY300 per share. Livedoor was delisted from the Tokyo Stock Exchange on April 14, 2006. LIVEDOOR: Prosecutors Demand US$2.5-Million Fine ------------------------------------------------ Prosecutors are seeking US$2.5-million payment from Livedoor Company for breaching securities laws by inflating stock prices and doctoring company books, The Associated Press says. The prosecutors also demanded a US$425,000-fine against Livedoor subsidiary Livedoor Marketing. Prosecutors have argued that Livedoor executives used dubious methods to buy up other companies, declare profits when there were actually big losses, set up "dummy" companies and jack up stock prices to raise the capital value of their corporate group, AP says. As reported by the Troubled Company Reporter - Asia Pacific on January 18, 2006, former Livedoor President Takafumi Horie and other Livedoor directors were found to have conspired to cover up the Company's JPY310-million pre-tax loss for the business year ended September 2004, by tampering financial accounts to instead show an inflated pre-tax profit of JPY5.03 billion. Moreover, Mr. Horie and the Company executives allegedly relayed false information on a merger, with the intent to boost the stock price of Livedoor Marketing Co. The TCR-AP further reported that Mr. Horie had pleaded not guilty to the charges hurled against him. Livedoor, on the other hand, did not fight the charges, and its attorneys filed a guilty plea on behalf of the company. Former executive Ryoji Miyauchi has also hinted the company was in the wrong, AP adds. * * * Headquartered in Tokyo, Japan, Livedoor Company, Limited -- http://corp.livedoor.com/en/-- is involved in out portal site "livedoor," financial business, corporate web solutions, data center and IP telephony business. The Troubled Company Reporter - Asia Pacific reported that in January 2006, Livedoor ex-president and founder Takafumi Horie, and other Livedoor directors were investigated over allegations that they have conspired to cover up the Company's JPY310- million pre-tax loss for the financial year ended September 2004 by doctoring financial accounts to instead show an inflated pre- tax profit of JPY5.03 billion. Following the accounting scandal surrounding the Company in January 2006, Livedoor's stock price plunged to JPY94 per share from over JPY300 per share. Livedoor was delisted from the Tokyo Stock Exchange on April 14, 2006. LOPRO CORP: Fitch Affirms BB and B Currency Ratings --------------------------------------------------- Fitch Ratings, on September 14, 2006, affirmed Lopro Corporation's 'BB' long-term foreign and local currency IDRs and 'B' short-term foreign and local current IDRs. The Outlook for the ratings is stable. Fitch Ratings also affirmed the ratings of other Japanese non- bank finance companies: Acom Co. Ltd., Aiful Corporation, Credit Saison Co. Ltd, Lopro Corporation, Promise Co. Ltd. and Sanyo Shinpan Finance Co. Ltd. The other ratings and Outlook are: Acom: Long-term foreign and local currency Issuer Default ratings ("IDRs") 'A'/Stable Outlook, Short-term foreign and local currency IDRs 'F1'; Aiful: Long-term foreign and local currency IDRs 'A-' (A minus) /Negative Outlook, Short-term foreign and local currency IDRs 'F2'. Credit Saison: Long-term foreign and local currency IDRs 'A'/Stable Outlook, Short-term foreign and local currency IDRs 'F1' Promise: Long-term foreign and local currency IDRs 'A'/Negative Outlook, Short-term foreign and local currency IDRs 'F1'; Sanyo Shinpan: Long-term foreign and local currency IDRs 'BBB+'/Negative Outlook, Short-term foreign and local currency IDRs 'F2'. This affirmation follows the publication of a draft memorandum on the auditing policy by the Japanese Institute of Certified Public Accountants, relating to the reserves for reimbursement claims against excess interest payments. JICPA published the draft memorandum on Sept. 13 for public comments. The draft proposes that from the interim period ending this month, auditors require non-bank finance companies to set up their reserves for reimbursement reflecting the actual rate of reimbursement costs each posted in the past over the estimated average length of their loans. Such reserves were first set for end-March 2006, when the JICPA recommended that the reserves been equivalent to the estimation of such costs for the coming year. If the draft is to be adopted as it is, the non-bank finance companies which have loan products with an interest rate in the "grey zone" (i.e. an interest rate in excess of the Interest Rate Restriction Law - "IRRL"- of between 15% and 20% depending on the size of a loan) need to make provisions which can be several times what they have made for the fiscal year ended March 2006. For example, pre-tax profits projected by Acom, Aiful, Promise and Sanyo Shinpan in aggregate for the half year ending September 2006 are slightly over twice such provisions for FYE06. Depending on their past losses and the average length of loans in their portfolios, some of these companies may post net losses for the interim period, although for the second half year to end-March 2007, most, if not all, of the losses will be covered by profits. Fitch says that setting up conservative reserves is always welcome, and believes that these companies will face limited problems given their abundant capital. The Money Lending Business Law is likely to be revised early next year, and politicians are currently discussing how to implement suggestions made by the council of the ruling Liberal Democratic Party earlier this year. The current 29.2% ceiling is likely to be lowered to match the IRRL. But, timing for actual implementation of the change and exceptional cases for a higher rate, which are important factors influencing Fitch's ratings, are as yet undecided. The agency underscores however, that the rating Outlook indicates the direction of Fitch's Long- term IDRs for the next one to two years. Fitch notes that the new, lower ceiling will force the consumer finance companies to urgently overhaul their business models in the meantime. The agency will publish commentary on the likely consequences from the revisions in the law and take any necessary rating action, when the new provisions and schedule of the changes are made clear. * * * Headquartered in Kyoto, Japan -- http://www.lopro.co.jp/-- Lopro Corporation is involved in the provision of lending services and commercial bills, as well as the leasing of real estate. It principally offers its services to small- and medium-sized companies, as well as small-scale businesses. Its major products include commercial bill discounts, as well as unsecured loans on notes and deeds. As of April 1, 2006, the Company merged with a consolidate subsidiary, which is primarily engaged in the provision of credit assurance services. SOFTBANK CORP: To Sell Hi-tech Handsets to Boost Sales ------------------------------------------------------ Softbank Corporation's wireless carrier, Vodafone K.K., will introduce to the market this year new handsets equipped with Microsoft Corporation's Windows Mobile operating system, The China Post reports. Vodafone K.K. and rivals NTT DoCoMo Inc. and KDDI Corp. are introducing new mobile phones to keep and lure users after new rules that allow subscribers to switch providers while keeping their phone number. Handsets that use Windows Mobile may attract users who want a cell phone that links easily to their personal computer, the Post relates. The Troubled Company Reporter - Asia Pacific reported on September 15, 2006, that Softbank Corporation has begun offering an Apple Computer iPod nano packaged with one of its own mobile phones in a bid to retain its 16% share in Japan's lucrative mobile market. According to the TCR-AP, the new promotion is aimed at keeping customers for at least two years as Softbank would require them to refund the cost for the handsets if they cancel their subscription before the contract expires. Softbank is rolling out new services and products before a rule change from October 24, 2006, that lets customers switch carrier while keeping their numbers, the TCR-AP added. About Softbank Corp. Based in Tokyo, Japan, Softbank Corporation -- https://www.softbank.co.jp/ -- is a leading Japanese telecommunications and media corporation, with operations in broadband, fixed-line telecommunications, e-Commerce, Internet, broadmedia, technology services, finance, media and marketing, and other businesses. SoftBank was established on September 3, 1981, and had a market capitalization of approximately US$32.8 billion at February 28, 2006. SoftBank's corporate profile includes various other companies such as Japanese broadband company Cable & Wireless IDC, cable company BB-Serve, and gaming company GungHo Online Entertainment. On March 17, 2006, SoftBank announced its agreement to buy Vodafone Japan, giving it a stake in Japan's US$78 billion mobile market. * * * According to a Troubled Company Reporter - Asia Pacific report on April 18, 2006, Standard & Poor's Rating Services agency affirmed its 'BB-' long-term corporate credit rating on the Company, with negative implications. Moody's Investors Service had, on August 9, 2006, upgraded Softbank Corp.'s stable long-term debt rating and issuer rating to Ba2 from Ba3, concluding a review initiated on March 17, 2006, when the Company announced that it would acquire a 97.7% stake in mobile phone giant Vodafone Group's Japanese unit, Vodafone K. K. * August Corporate Failures Rise 3.8% on Month, 2.7% on Year ------------------------------------------------------------ The number of corporate bankruptcies in Japan rose 3.8% to 774 in August from 746 in July 2006, private credit research agency Teikoku Databank reveals. On year-over-year basis, the number of bankruptcies increased 2.7% from 754 in August 2005. In July, bankruptcies increased 0.3% on month. Liabilities left behind by insolvent companies rose 1.7% to JPY360.93 billion in August 2006 from JPY354.84 billion in July, and 10.0% from JPY328.05 billion in August last year. Only five companies with liabilities of JPY10 billion or more went bankrupt. Large-scale bankruptcies remained low. The number of corporate failures of companies with liabilities of JPY1 billion or more was 65, while bankruptcies of companies with liabilities of JPY5 billion or more was 14. Kanto, with 340 cases, up 14.9% year-on-year, reported the highest number of corporate failures for the current year. Bankruptcies in service industry and the wholesale industry increased both from the last month and the corresponding period last year. According to Teikoku, the major cause of bankruptcy was recession. The number of recession-induced bankruptcies rose 4.8% to 584 from the same period a year earlier, contributing 75.5% to the total number of bankruptcies. ========= K O R E A ========= BALLY TOTAL: Approves Indemnification Agreement with Directors -------------------------------------------------------------- Bally Total Fitness Holding Corp. approved on Sept. 8, 2006, an Indemnification Agreement with members of the Board of Directors of the Company. The company will enter into Indemnification Agreements with the following directors: -- Charles J. Burdick, -- Barry M. Deutsch, -- Barry R. Elson, -- Don R. Kornstein, -- Eric Langshur, -- Steven S. Rogers and -- John W. Rogers, Jr. Under the Indemnification Agreements, Bally Total will be obligated to indemnify each director in certain circumstances and upon certain conditions against expenses, judgments, fines and settlement amounts incurred by such director. The Indemnification Agreements also establish procedures and other agreements pertaining to such obligations of the company. The Board also authorized the company to enter into a similar agreement with its Senior Vice President, Secretary and General Counsel, Marc D. Bassewitz. About Bally Total Bally Total Fitness Holding Corp. -- http://www.Ballyfitness.com/-- is the largest and only United States-wide commercial operator of fitness centers, with over 400 facilities located in 29 states, and in Mexico, Canada, Korea, the Caribbean, and China under the Bally Total Fitness, Bally Sports Clubs and Sports Clubs of Canada brands. Bally offers a unique platform for distribution of a wide range of products and services targeted to active, fitness-conscious adult consumers. * * * The Troubled Company Reporter - Asia Pacific reported on August 15, 2006 that Moody's Investors Service affirmed all the credit ratings of Bally Total Fitness Holding Corporation. The rating outlook remains negative. BALLY TOTAL: Shares Drop 17.5% After Posting Second Quarter Loss ---------------------------------------------------------------- Bally Total Fitness Holding Corp.'s shares fell 17.5% on Tuesday last week after it reported a second-quarter 2006 loss due to weaker membership sales and the possibility of defaulting on debt payment, the Associated Press relates. According to AP, Bally Total stock closed down 47 cents, at US$2.22 on the New York Stock Exchange, dropping as much as US$2.17. The stock traded US$9.61 in May. However, it has been falling due to failure to sell the firm as well as questions about its management. AP states that Paul Toback, the former chairperson and chief executive of Bally Total, resigned on Aug. 11. He was replaced by Don Kornstein -- who now acts as interim chairperson -- and Barry Elson, who is the interim chief executive officer. They were two of the three board members who had successfully been nominated by Pardus Capital Management LP, a shareholder of Bally Total. Mr. Kornstein told the press that Bally Total is focusing on seeking capital after failing to complete a sale or merger on favorable terms. "The biggest issues facing Bally are its significant debt load and the need to create financial flexibility for its operations," AP says, citing Mr. Kornstein. Bally disclosed that it has revised its second-quarter average number of members to 3.598 million from the 3.581 million it reported on Monday, AP states. About Bally Total Bally Total Fitness Holding Corp. -- http://www.Ballyfitness.com/-- is the largest and only United States-wide commercial operator of fitness centers, with over 400 facilities located in 29 states, and in Mexico, Canada, the Caribbean, China and Korea under the Bally Total Fitness, Bally Sports Clubs and Sports Clubs of Canada brands. Bally offers a unique platform for distribution of a wide range of products and services targeted to active, fitness-conscious adult consumers. * * * The Troubled Company Reporter - Asia Pacific reported on August 15, 2006, that Moody's Investors Service affirmed all the credit ratings of Bally Total Fitness Holding Corporation. The rating outlook remains negative. * Two South Korean Cos. May Delist from U.S., Dow Jones Says ------------------------------------------------------------ Two South Korean companies may opt to delist from the United States stock markets, Dow Jones reports, citing Jeong Yong-Won, an officer at South Korea's Financial Supervisory Service. According to Mr. Jeong, the two companies would consider removal from the U.S. stock exchange if costs of maintaining their listings will increase by more than half. Mr. Jeong based the information from a survey conducted by the FSS on U.S.-listed South Korean companies. Currently, Dow Jones notes, 15 South Korean companies on the New York Stock Exchange and the Nasdaq. Regardless of listing costs going up, the other companies will maintain their listing as they see the advantage of being in the list, Mr. Jeong told Dow Jones. The New York Stock Exchange presently lists eight South Korean Companies: 1. Kookmin Bank (KB) 2. Korea Electric Power Corporation (KEP) 3. KT Corporation (KTC) 4. LG.Philips LCD Co., Ltd. (LPL) 5. POSCO (PKX) 6. Shinhan Financial Group (SHG) 7. SK Telecom Co., Ltd. (SKM) 8. Woori Finance Holdings Co., Ltd. (WF) To date, Nasdaq lists seven: 1. Gmarket Inc. (GMKT) 2. Gravity Co., Ltd. (GRVY) 3. hanarotelecom incorporated (HANA) 4. Mirae Corporation (MRAE) 5. Pixelplus Co., Ltd. (PXPL) 6. Webzen Inc. (WZEN) 7. WiderThan Co., Ltd. (WTHN) * 1st Half 2006 Disclosure Filings for Investment in Listed Cos. ---------------------------------------------------------------- For the first six months of 2006, 2,397 investors held 5% or more equity interests in 1,624 listed companies (700 Stock Market-listed and 924 KOSDAQ-listed) according to a press release from South Korea's Financial Supervisory Service. The FSS arrived at the information from its analysis of disclosure filings for investment in listed companies. During the same six-month period, the FSS noted two tender offers and 122 proxy solicitations made. The FSS analysis further revealed that during the 2nd Half: -- disclosures filed under the five-percent reporting rule totaled 4,157; -- by investment purpose, filings for exercising influence on the management totaled 1,609 (1,580 companies: 666 Stock Market-listed, 914 KOSDAQ-listed) as of the end of June 2006; -- as with foreign investors, 307 (288 legal entities and 19 individuals) held five percent or more equity interests in 505 listed companies, of which 242 were Stock Market- listed and 263 KOSDAQ-listed); and -- two tender offer filings involving Choong Nam Spinning Co., Ltd., were made during the first six months of the year. There were no tender offers intended for enhancing management control or going private during the period, the FSS adds. * Insurance Cos. Improve Asset Quality in 2ndQ/FY2006, FSS Says --------------------------------------------------------------- The asset quality of insurance companies show continued improvement in the second quarter of 2006, the Financial Supervisory Service states in its most recent weekly newsletter. Pursuant to a quality analysis of assets including loans, securities and receivables, the FSS determined that as of the end of June 2006, bad assets -- classified as substandard or below -- fell to KRW2.455 trillion from the KRW2.553 trillion in the first quarter. Securities accounted for a majority, or 61.2% of the assets reviewed. Cash, deposits and real properties are not included in the asset quality analysis. Out of securities totaling KRW181.8 trillion, KRW216.9 billion were bad assets, down to 0.12% from 0.13% last March 2006. The decrease, according to the FSS, was mainly due to continuous increases in low-risk investments like government and special bonds. =============== M A L A Y S I A =============== DAI HWA: Ends Reorganization Plan; Bourse Delists Securities ------------------------------------------------------------ Bursa Securities had decided and informed Dai Hwa Holdings (M) Berhad on February 10, 2006, that, given the fact that the company had submitted its regularization plan to the relevant authorities for approval, Bursa Securities would await the outcome of the company's application to the relevant authorities. Dai Hwa announced on August 1, 2006, that the Securities Commission had rejected its regularization plan. Dai Hwa further announced on August 29, 2006, that it has decided not to appeal against the SC's decision. It was also announced that the restructuring agreements have been terminated and the company would not proceed with the regularization plans. In the circumstances and in accordance with Bursa Securities' earlier decision, the securities of the company was removed from the Official List of Bursa Securities on September 11, 2006. About Dai Hwa Holdings Headquartered in Johor, Malaysia, Dai Hwa Holdings (M) Berhad's principal activity is investment holding. The Company ceased its entire operations on August 15, 2003, and remained dormant since then. The Company was subsequently classified under the Bursa Malaysia Securities Berhad's Practice Note 10 category. On November 18, 2006, Bursa Malaysia Securities Bhd delisted Dai Hwa Holdings (M) Bhd since it failed to ensure its level of operations is adequate. On January 27, 2006, the Company submitted its revised restructuring proposal to the Securities Commission for approval. In this regard, on February 10, 2006, the Bourse decided not to commence the listing procedures against the Company pending the outcome of the decision from the relevant authorities on the Company's application of its regularization plan. Yet, Dai Hwa revealed on August 29, 2006, that it has decided to terminate its restructuring agreements and not to proceed with its regularization plans. Thus, in the circumstances and in accordance with Bursa Securities' earlier decision, the securities of the company was removed from the Official List of Bursa Securities on September 11, 2006. KIG GLASS: Credit Default Amount Hits MYR79 Million ---------------------------------------------------- KIG Glass Industrial Berhad provides an update of the Company's default status of principals and interests pursuant to Practice Note 1/2001 of the Bursa Malaysia Securities Berhad's Listing Requirements. KIG Glass reports defaults, as of July 31, 2006, as totaling MYR79,202,274. More than MYR54 million of the total defaults represent amount KIG Glass owes to Bumiputra Commerce Berhad: Total Principal and Type of Facility Interest in Default ---------------- ------------------- Bankers Acceptances MYR29,665,114 Term Loans 20,714,515 Trust Receipts 60,423 Revolving Credit & Letter of Credit 1,879,418 Overdraft 1,967,938 ------------- MYR54,287,408 ============= The defaulted payments of KIG Glass' subsidiary KIG Ceramics Industrial Sdn. Bhd. also form part of the MYR79 million unpaid balance. As of July 31, 2006, KIG Ceramics is in default to four banks for principal and interest totaling MYR24,914,866: Total Principal and Lender Type of Facility Interest in Default ------ ---------------- ------------------- Bumiputra Commerce Bank Berhad Term Loans MYR9,260,800 Overdraft 1,164,267 Overseas Union Bank Berhad Overdraft 3,250,276 Bankers Acceptance 736,000 Bumiputra Commerce Bank (Labuan) Ltd. Term Loan 9,611,122 RHB Bank Berhad Overdraft 892,401 As reported by the Troubled Company Reporter - Asia Pacific, KIG Glass subsidiary Zibo Jiali Glass Industry Co. Ltd owes United Overseas Bank Limited, China, USD1.4 million in term loan. To date, the updated figures for the term loan is not yet available. Zibo filed a voluntary winding-up application with the Court in the People's Republic of China. About KIG Glass Industrial Headquartered in Johor Darul Ta'zim, Malaysia, KIG Glass Industrial Berhad -- http://www.kedaung.com/-- manufactured and sold glassware, glass blocks and carton boxes. The firm's other activities included manufacturing of ceramic roof tiles. Its operations were carried out in Malaysia and China. Due to its inability to pay debts, the Company ceased operation in May 2005. As of December 31, 2005, the KIG Group's accumulated losses stood at almost MYR300 million. The shareholders' funds of the KIG Group was in deficit of approximately MYR93 million while its total borrowings amounted to approximately MYR104 million. As of June 30, 2006, the group has total assets of MYR57,173,000 and total liabilities of MYR153,698,000, resulting into a stockholders' deficit of MYR96,525,000. JIN LIN: High Court Approves Restructuring Proposals ---------------------------------------------------- The Malaya High Court approves Jin Lin Wood Industries Berhad's proposed scheme of arrangement with shareholders and proposed restructuring scheme of arrangement with creditors. The approval, granted on September 8, 2006, also permitted the reduction in the issued and paid-up share capital of Jin Lin pursuant to the Proposed Scheme of Arrangement. Jin Lin's shareholders have already given their nods to both proposals at a court-convened meeting on August 25, 2006. About Jin Lin Headquartered in Kuala, Lumpur Malaysia, Jin Lin Wood Industries Berhad is engaged in the manufacture and trade of timber and related timber products. The Company is also involved in warehousing, chemical treatment, and investment holding. As of June 30, 2006, the Company's balance sheet showed total assets of MYR66,849,000 and total liabilities of MYR100,292,000, resulting into a stockholders' deficit of MYR33,443,000. MALAYSIA AIRLINES: Swampillai Takes Helm of Vietnam Operations -------------------------------------------------------------- The outgoing manager of Malaysian Airlines in Vietnam, Sabarudin Ismail, formally turned over his post to his successor Terence Krish Swampillai at a dinner held September 14, 2006, The Saigon Times reveals. Mr. Ismail leaves after four years serving as head of Malaysia Airlines in Vietnam to make room for Mr. Swampillai, who has been working with the carrier for 16 years, the report says. Meanwhile, Malaysia Airlines announced at the farewell and welcome function the relaunching of its "Flights of Shopping" program, during which passengers will be able to take advantage of 15-20% discounts at all 'Eraman' retail outlets at Kuala Lumpur, Kota Kinabalu, Kuching and Penang international airports. The period promotion is valid until end-March next year and for Malaysian Airlines passengers who have purchased tickets from the carrier in ASEAN countries. The airline achieved a big success for a similar three-month shopping program two years ago, The Saigon Times says. About Malaysia Airlines Headquartered in Selangor, Malaysia, Malaysia Airlines -- http://www.malaysiaairlines.com/-- services domestic and international flights. Its global network comprised 32 domestic and 86 international destinations. Of the 86 international destinations, 17 were operated in collaboration with our airline partners. The carrier made a loss after tax of MYR1.3 billion for fiscal year 2005, due to high fuel and operating costs, and unprofitable routes. In late February 2006, it unveiled a radical rescue plan to raise MYR4 billion to stay afloat and return to profitability by 2007. Under the restructuring plan, the airline pledged to cut its budget by 20% across the board, terminate many unprofitable routes, freeze recruitment except for front-line staff, crack down on corruption by encouraging Whistle-blowing and stop corporate sponsorship. MALAYSIA AIRLINES: Launches More Flights to Sabah and Sarawak ------------------------------------------------------------- Malaysia Airlines is reinstating services on domestic non-trunk routes in Sabah and Sarawak today, September 18, 2006, following a government request for more flights in Sabah and Sarawak, Bernama News reports. The carrier will introduce two flights daily on the Kota Kinabalu-Miri route as well as a daily flight on the Kuching- Bintulu route, Bernama says. Malaysia Airlines had stopped flying the two routes after the implementation of its domestic rationalization exercise on August 1, 2006, which trimmed the carrier's domestic routes from 118 to 19. Malaysia Airlines Managing Director and Chief Executive Officer Idris Jala said the airline had earlier responded to the government's call to reinstate flights on Johor Bahru-Kuching, Penang-Langkawi, KL-Sandakan and KL-Tawau routes. "We are happy to step in again to the needs of customers with the much needed capacity and connectivity on the non-trunk routes and also increase our frequencies on the trunk routes in East Malaysia," Mr. Jala said. Malaysia Airlines said it would mount additional daily frequency between KK-Tawau and KK-Sandakan, bringing the total number of flights on those routes to four a day while it would increase Kuching-Miri return flights to three times a day. The national carrier told Bernama it had deployed an additional 144-seater B737-400 aircraft which will be based in KK, in line with the carrier's on going initiative to further develop the Sabah state capital as one of its secondary hubs in Malaysia. It would also increase flights on the KK-Labuan route to three flights daily on Sept. 18 and up to four flights a day from Oct.1. It currently has a twice daily flight on the KK-Labuan route. About Malaysia Airlines Headquartered in Selangor, Malaysia, Malaysia Airlines -- http://www.malaysiaairlines.com/-- services domestic and international flights. Its global network comprised 32 domestic and 86 international destinations. Of the 86 international destinations, 17 were operated in collaboration with our airline partners. The carrier made a loss after tax of MYR1.3 billion for fiscal year 2005, due to high fuel and operating costs, and unprofitable routes. In late February 2006, it unveiled a radical rescue plan to raise MYR4 billion to stay afloat and return to profitability by 2007. Under the restructuring plan, the airline pledged to cut its budget by 20% across the board, terminate many unprofitable routes, freeze recruitment except for front-line staff, crack down on corruption by encouraging Whistle-blowing and stop corporate sponsorship. MALAYSIA AIRLINES: Foreign Carriers Doubt Ability to Meet Demand ---------------------------------------------------------------- Malaysia Airlines' failure to meet demand of the country's tourism sector, especially in accommodating the needs of the international market, was a major issue raised by several foreign airlines at meetings with the Tourism Ministry on September 15, 2006, Bernama News reveals. Minister Datuk Seri Tengku Adnan Tengku Mansor told Bernama the foreign airlines questioned the ministry's rationale in asking for their cooperation to meet the increasing international demand despite Malaysia having its own national airline. He said the issue was the main topic raised by foreign airlines, including Iran Air, at meetings he had with their representatives to discuss the possibility of them introducing or increasing flights from their respective countries to Kuala Lumpur, Bernama relates. "They asked why, if the demand is high, Malaysia did not get our own airline to fly here," Mr. Tengku Adnan said. Mr. Tengku Adnan added Malaysia Airlines' image would not be affected despite its capability being questioned by the foreign airlines. He said he explained to the foreign airlines that Malaysia Airlines was undergoing a revamp and implementing new strategies to improve its operations, previously affected by internal problems. According to Bernama, the foreign airlines agreed to cooperate with Malaysia and also hoped for reciprocal action from the national carrier. About Malaysia Airlines Headquartered in Selangor, Malaysia, Malaysia Airlines -- http://www.malaysiaairlines.com/-- services domestic and international flights. Its global network comprised 32 domestic and 86 international destinations. Of the 86 international destinations, 17 were operated in collaboration with our airline partners. The carrier made a loss after tax of MYR1.3 billion for fiscal year 2005, due to high fuel and operating costs, and unprofitable routes. In late February 2006, it unveiled a radical rescue plan to raise MYR4 billion to stay afloat and return to profitability by 2007. Under the restructuring plan, the airline pledged to cut its budget by 20% across the board, terminate many unprofitable routes, freeze recruitment except for front-line staff, crack down on corruption by encouraging Whistle-blowing and stop corporate sponsorship. POLYMATE HOLDINGS: Has Yet to Submit Fourth Quarter Report ---------------------------------------------------------- Polymate Holdings Berhad was still unable to submit its financial report for the quarter ended June 30, 2006, by September 8, 2006, as the company's management has determined that further provisions and written-offs need to be made for its subsidiaries. The figures are now being finalized and are expected to be significant. The fourth quarter report is expected to be completed and submitted to Bursa Securities by September 29, 2006. About Polymate Holdings Headquartered in Selangor Malaysia, Polymate Holdings Berhad -- http://www.polymate.com.my/-- is engaged in the manufacturing and marketing of lead acid batteries for the automotive and related industries. It is also engaged in the manufacturing and dealing of plastic articles and products, corrugated carton boxes and related products, manufacturing and trading of door closers and trading of building materials, investment holding, and provision of corporate and financial support services. The Group operates in Malaysia, Australia, New Zealand, and Europe. Polymate is negotiating with its lenders to restructure the Group's credit facilities and is working on various schemes to regulate its financial position. PROTON HOLDINGS: Shareholders Refuse to Re-elect One Director ------------------------------------------------------------- Proton Holdings Berhad's shareholders passed all resolutions tabled in the company's Third Annual General Meeting, which was duly convened on September 8, 2006, except for the resolution re-electing Lt. Gen (R) Dato' Seri Mohamed Daud bin Abu Bakar as director. About Proton Holdings Headquartered in Selangor Darul Ehsan, Malaysia, Perusahaan Otomobil Nasional Berhad or Proton Holdings Berhad -- http://www.proton-edar.com.my/-- is engaged in manufacturing, assembling, trading and provision of engineering and other services in respect of motor vehicles and related products. Its other activities include property development, trading of steel and related products, engine and technologies research, development of automotive related technologies, investment holding, importation and distribution of motor vehicles, related spare parts and accessories, holds intellectual property, provides engineering consultancy, operates single make race series and carries out specific engineering contracts. The Group's operations are carried out in Malaysia, England, Australia, Socialist Republic of Vietnam and the United States of America. Proton was reported to be among Malaysia's worst-performing companies in 2005, after competition from foreign carmakers and a lack of new models lost the firm local market share and subsequently led it into a loss. It has since brought in a new chief, sold its loss-making MV Agusta motorbike firm and pledged to find a new technology partner. The Company has been under increasing pressure, with its share of domestic sales falling to 44% from 75% over the past decade. The Troubled Company Reporter - Asia Pacific reported on May 4, 2006, that Proton was expected to finalize a recovery plan and seal an alliance with a strategic partner by the end of this year. PROTON HOLDINGS: Subscribes Shares in Subsidiary Companies ---------------------------------------------------------- Proton Holdings Berhad, on September 7, 2006, subscribed to an additional 255,000,000 Redeemable Convertible Preference Shares of MYR0.10 each in Proton Marketing Sdn Bhd at an issue price of MYR1 per RCPS for a total cash consideration of MYR255,000,000. Proton Marketing on September 7, 2006, subscribed to an additional 24,000,000 Redeemable Ordinary Shares of GBP each in Proton Cars (UK) Limited, a wholly owned subsidiary of Proton Marketing, for a total cash consideration of GBP24,000,000. On the same date, Proton Marketing also subscribed to an additional 32,100,000 shares of AUD1 each in Proton Cars (Australia) Pty Limited by way of novation of debts vide a Deed of Novation and Deed of Waiver both dated September 7, 2006, between the parties. The purpose of the subscription of shares was to facilitate the recaplitalization and debt restructuring exercise of Proton Cars Australia and Proton Cars (UK). The subscriptions do not have an effect on the share capital and shareholding structure of the Company, neither will it have an effect on the net assets or earnings of the Group. About Proton Holdings Headquartered in Selangor Darul Ehsan, Malaysia, Perusahaan Otomobil Nasional Berhad or Proton Holdings Berhad -- http://www.proton-edar.com.my/-- is engaged in manufacturing, assembling, trading and provision of engineering and other services in respect of motor vehicles and related products. Its other activities include property development, trading of steel and related products, engine and technologies research, development of automotive related technologies, investment holding, importation and distribution of motor vehicles, related spare parts and accessories, holds intellectual property, provides engineering consultancy, operates single make race series and carries out specific engineering contracts. The Group's operations are carried out in Malaysia, England, Australia, Socialist Republic of Vietnam and the United States of America. Proton was reported to be among Malaysia's worst-performing companies in 2005, after competition from foreign carmakers and a lack of new models lost the firm local market share and subsequently led it into a loss. It has since brought in a new chief, sold its loss-making MV Agusta motorbike firm and pledged to find a new technology partner. The Company has been under increasing pressure, with its share of domestic sales falling to 44% from 75% over the past decade. The Troubled Company Reporter - Asia Pacific reported on May 4, 2006, that Proton was expected to finalize a recovery plan and seal an alliance with a strategic partner by the end of this year. TECHVENTURE BERHAD: Creditor Demands Payment from Unit ------------------------------------------------------ Techventure Berhad's wholly owned subsidiary, Kotak Kajang Industries Sdn Bhd, has on September 8, 2006, received a notice as principal debtor from Snapp Packaging (M) Sdn Bhd in respect of an amount of MYR250,183 being balance outstanding sum for goods sold and delivered. Kotak Kajang will refer the matter to its solicitors for legal counsel and if necessary, will negotiate with Snapp to resolve the debt. Further developments will be announced in due course. About Techventure Bhd Techventure Berhad is based in Selangor, Malaysia. Apart from being a corrugated cartons manufacturer, the Group is also involved in the production of rubber insulation materials and roto-molded plastic products like septic tanks, playground equipment, traffic barriers, and water tanks. It markets its entire corrugated cartons and plastic products locally while about 80% of the rubber insulation materials are exported. In addition, the Group also manufactures ice cream. In June 2003, the Company proposed a debt-restructuring program to its financial institution lenders to avoid liquidation. In May 2006, the Company was categorized under the Amended Practice Note 17 category of the Bursa Malaysia Securities Berhad's Listing Requirements. As an affected listed issuer, the Company is required to regularize its financial condition or risk being delisted from the Official List of Companies. TEXCHEM RESOURCES: Incorporates Chinese Subsidiary -------------------------------------------------- Texchem Resources Berhad's wholly owned subsidiary, Texchem Materials Sdn Bhd, recently received a Certificate of Approval for the proposed incorporation of a wholly owned subsidiary in Wuxi, the People's republic of China to be known as Texchem Trading Company Limited, or such other name as may be approved by the relevant authorities in the People's Republic of China, the Troubled Company Reporter - Asia Pacific reported on April 7, 2006. In an update, Texchem advised that it received on September 8, 2006, a business license from the Jiangsu Wuxi Industrial and Commerce Administration Bureau for the incorporation of Texchem Trading. As such, Texchem Trading was incorporated and registered under the laws of the People's Republic of China on September 7, 2006, with the registered capital of CNY500,000, or around MYR230,950. About Texchem Resources Headquartered in Penang Malaysia, Texchem Resources Berhad -- http://www.texchemgroup.com/-- is principally engaged in trading in industrial chemicals and other products. Its other activities include manufacturing of family care products and household insecticides and distribution and marketing of a wide range of consumer and family care products; manufacturing and marketing of raw surimi, fishmeal, feedmeal and seafood products; manufacturing and selling of packaging products for the electronics, electrical, semiconductor and disk drive industries and investment holding. The Group's operations are located in Malaysia,Thailand, Singapore, Indonesia, China, Vietnam, Myanmar and Italy. Texchem is currently undergoing a financial rationalization and restructuring program, which involves the disposal of a number of dormant subsidiaries. ===================== P H I L I P P I N E S ===================== BANK OF CEBU: PDIC Pays PHP79.5 Million to 2,283 Claimants ---------------------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on September 14, 2006, the Philippine Deposit Insurance Corporation has started servicing The Bank of Cebu depositors' claims for insured deposits on September 8, 2006. In an update, the PDIC has paid PHP79.5 million to 2,283 claimants and 2,085 accounts of the Bank of Cebu as of September 15, 2006, Cebu News reports. According to PDIC media relations chief, Carol Cagalingan, the amount is increasing everyday because of the depositors' continuous claims filing. "We will proceed with the processing of claims unless there is an order from the court for us to stop. It's business as usual everyday," Ms. Cagalingan notes. Former Bank Officials Refuses to Pay PHP50 Mln Loan Bank of Cebu President Ephraim Cuadra Salcedo suspected that the BSP examiners and PDIC officials are in cahoots with the Bank's former officials who allegedly refused to pay their loans totaling about PHP50 million, Cebu News relates. The TCR-AP recently reported that on September 12, 2006, the Bank filed a petition for certiorari before the Court of Appeals in Cebu asking for a writ of temporary restraining order to reopen the bank. According to the TCR-AP, Bank of Cebu accuses the Bangko Sentral ng Pilipinas and PDIC of grave abuse of discretion when they closed the bank. Ricardo Angeles, the representative of majority stockholder Peninsula and Realty Assets, said he received reports that PDIC officials took out documents taken out of the bank premises for no valid reason, Cebu New says. However, Ms. Cagalingan contends that if ever there are documents taken out of the bank, these are related to claims and payments to depositors, the paper further says. PDIC Took Over Employees' Retirement Funds Ms. Cagalingan refuses to comment on Mr. Angeles' allegations that PDIC took over the employees' retirement funds deposited with Rizal Commercial Banking Corporation. Ms. Cagalingan says she will clarify the matter with Deputy Receiver Benefico Magday, Cebu New relates. The employees owned the fund, the report says. PDIC's takeover of the bank has caused the families of the 108 employees, some of whom have already worked for 15 to 25 years with the institution, to suffer financially, Mr. Angeles asserts, adding that "they fired the employees in violation of their rights." However, Ms. Cagalingan explains that the dismissal was needed to cut expenses to prevent the erosion of assets. * * * The Troubled Company Reporter - Asia Pacific previously reported that on September 1, 2006, the Bank of Cebu was deemed insolvent by the Bangko Sentral ng Pilipinas. Thus, BSP closed all seven branches of the bank located in: 1. Carcar, 2. Consolacion, 3. Lapu-Lapu City, 4. Mandaue City, 5. Mactan Economic Zone, and 6. Tabunok According to the TCR-AP, the bank may reopen depending on its board members' rehabilitation plan. The bank's owners were given 90 days to present a viable rehabilitation plan, which PDIC will evaluate to determine their capacity manage the bank, the TCR-AP noted. The Bank of Cebu's main office address is at: The Bank of Cebu (A Development Bank) Contact: Ephraim C. Salcedo Position: Officer-In-Charge Address: The Bank of Cebu Bldg., 131 V. Gullas St. cor. Osme a Blvd., Cebu City 6009 Contact: (032) 253-9552; 255-6070 Fax: (032) 255-5147 METROPOLITAN BANK: To Raise PHP6.15 Billion from Share Sale ---------------------------------------------------------------- Metropolitan Bank & Trust Co., expects to raise up to PHP6.15 billion from its planned sale of primary shares. The proceeds of the sale will be used to boost its capital adequacy ratio, Erik de la Cruz of Xinhua Financial News Service reports. The Philippine Inquirer relates that Metrobank postponed the plan to sell shares earlier this year due to unfavorable market conditions. But bank officials recently said it may be revived within the year, the paper notes. According to the report documents submitted by Metrobank to the Securities and Exchange Commission, the planned sale assumes an offering price of PHP36.43 per share, of which: * up to 252.5 million will be offered by the bank and other selling shareholders outside the Philippines; and * another 13.3 million will be made available by selling shareholders to local investors. The final offer price would be within a range of plus or minus 10% of the 10-day weighted average price of the bank's share price, the Inquirer says. Metrobank disclosed that the proceeds would become part of its Tier 1 capital and will improve its CAR, which stood at 18.4% at the end of March, the Philippine Inquirer relates. The paper explains that current regulations require banks operating in the country to maintain a CAR of at least 10%, noting that while this minimum CAR requirement is to be maintained, the central bank has approved major methodological revisions to the calculation of minimum capital that banks should hold against actual credit risk exposures. These revisions are consistent with new international standards under the Basel II framework, which will take effect in 2007, the Inquirer notes. 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. MIRANT CORP: Four Groups Vie to Acquire Philippine Assets --------------------------------------------------------- Four groups are vying to acquire the power generating assets of Atlanta-based Mirant Corp. in the Philippines, Manila Standard reports citing an unidentified source. According to the report, the source named the interested parties as: (1) Marubeni-Tokyo Electric-First Gen, (2) Korea Electric Power Corp./Chubu Electric, (3) One Energy with China Light and Power, and (4) Mitsubishi Corp., Mitsui/International Power Group Mirant dropped investment companies Avenue Capital and Carlyle Group from the list due to the absence of technical expertise as well as operations and maintenance partners, Manila Standard says, further citing the source, as saying. "Mirant sets criteria and chose candidates from those that have strong O&M track record for power facilities and those deemed to be acceptable to Philippine government," the source said. Credit Suisse, Mirant's financial advisor for the sale of its shares in Mirant Philippines Inc., is set to shortlist the potential bidders within the week, Manila Standard notes. "They are eyeing to finalize the shortlist before end of this weekend and correspondingly inform the bidders," the source added. About Mirant Headquartered in Atlanta, Georgia, Mirant Corporation (NYSE: MIR) -- http://www.mirant.com/-- is an energy company that produces and sells electricity in North America, the Caribbean, and the Philippines. Mirant owns or leases more than 18,000 megawatts of electric generating capacity globally. Mirant Corporation filed for Chapter 11 protection on July 14, 2003 (Bankr. N.D. Tex. 03-46590), and emerged under the terms of a confirmed Second Amended Plan on Jan. 3, 2006. Thomas E. Lauria, Esq., at White & Case LLP, represented the Debtors in their successful restructuring. When the Debtors filed for protection from their creditors, they listed US$20,574,000,000 in assets and US$11,401,000,000 in debts. The Debtors emerged from bankruptcy on Jan. 3, 2006. * * * As reported in the Troubled Company Reporter on July 17, 2006, Moody's Investors Service downgraded the ratings of Mirant Corporation and its subsidiaries Mirant North America, LLC and Mirant Americas Generation, LLC. The Ba2 rating for Mirant Mid- Atlantic, LLC's secured pass through trust certificates was affirmed. Additionally, Mirant's Speculative Grade Liquidity rating was revised to SGL-2 from SGL-1. The rating outlook is stable for Mirant, MNA, MAG, and MIRMA. Moody's downgraded Mirant Americas Generation, LLC's Senior Unsecured Regular Bond/Debenture, to B3 from B2. Moody's also downgraded Mirant Corporation's Corporate Family Rating, to B2 from B1, and Speculative Grade Liquidity Rating, to SGL-2 from SGL-1. Mirant North America, LLC's Senior Secured Bank Credit Facility, was also downgraded to B1 from Ba3 and its Senior Unsecured Regular Bond/Debenture, to B2 from B1. As reported in the Troubled Company Reporter on July 13, 2006, Fitch Ratings placed the ratings of Mirant Corp., including the Issuer Default Rating of 'B+', and its subsidiaries on Rating Watch Negative following its announced plans to buy back stock and sell its Philippine and Caribbean assets. Ratings affected are Mirant Corp.'s 'B+' Issuer Default Rating and Mirant Mid-Atlantic LLC's 'B+' Issuer Default Rating and the Pass-through certificates' 'BB+/Recovery Rating RR1'. Fitch also placed Mirant North America, Inc.'s Issuer Default Rating of 'B+', Senior secured bank debt's 'BB/RR1' rating, Senior secured term loan's 'BB/RR1' rating, and Senior unsecured notes' 'BB-/RR1' rating on Rating Watch Negative. Mirant Americas Generation, LLC's Issuer Default Rating of 'B+' and Senior unsecured notes' 'B/RR5' rating was included as well. Standard & Poor's Ratings Services also placed the 'B+' corporate credit ratings on Mirant Corp. and its subsidiaries, Mirant North American LLC, Mirant Americas Generating LLC, and Mirant Mid-Atlantic LLC, on CreditWatch with negative implications. ================= S I N G A P O R E ================= BIPL PTE: Creditors' Proofs of Debt Due on October 1 ---------------------------------------------------- The creditors of BIPL Pte Ltd are required to submit their proofs of debt by October 1, 2006, for them to share in the company's dividend distribution. The liquidator can be reached at: Wee Aik Guan c/o 6 Shenton Way #32-00 DBS Building Tower Two Singapore 068809 GOLDHILL MANAGEMENT: Creditors Must Submit Claims by Oct. 6 ----------------------------------------------------------- Liquidator Goei Beng Kiong Alan will be receiving proofs of claim from the creditors of Goldhill Management Services Private Limited until October 6, 2006. Failure to comply with the requirement will exclude the creditor from sharing in the company's dividend distribution. The Liquidator can be reached at: Goei Beng Kiong Alan 1 Coleman Street #06-10 The Adelphi Singapore 179803 JAPAN TRAVEL: To Declare Dividend to Creditors ---------------------------------------------- Japan Travel Bureau Asia Pte Ltd notifies parties-in-interest of its intention to distribute dividend to creditors. In this regard, creditors are required to submit their proofs of claim until September 25, 2006, for them to share in the dividend distribution. The liquidator can be reached at: Lim Say Wan c/o 6 Shenton Way #32-00 DBS Building Tower Two Singapore 068809 KUBOTA SUPPLIES: Creditors' Proofs of Claim Due on October 9 ------------------------------------------------------------ The creditors of Kubota Supplies & Engineering (Asia) Pte Ltd must prove their claim by October 9, 2006, for them to share in the company's dividend distribution. The liquidator can be reached at: Lau Chin Huat c/o Blk 150A Mei Chin Road #02-00 Singapore 140150 REALCENTRE PTE: Members' Final Meeting Set on September 23 ---------------------------------------------------------- Members of Realcentre Pte Ltd will hold a final meeting on September 23, 2006, at 11:00 a.m., at 133 New Bridge Road in #10-04 Chinatown Point, Singapore 059413. At the meeting, the members will be asked to: -- receive a report on the company's wind-up proceedings from Liquidator Kuek Buck Hiong; -- hear the manner of the property disposal exercises; and -- direct by special resolution the manner in which the books, accounts, documents of the company shall be disposed of. =============== T H A I L A N D =============== NAKORNTHAI STRIP: Plan Administrators Gain 53.65% Combined Stake ---------------------------------------------------------------- Nakornthai Strip Mill Plc's rehabilitation plan administrator, together with five partners, disclosed that they had obtained a combined 53.65% shareholding in the company, the Bangkok Post reports. Maharaj Planner informed the Stock Exchange of Thailand that it had increased its stake in Nakornthai Strip by 18.73% to 19.38% on Sept 11, 2006. On the same date, Great Western Ltd obtained 7.67%, Eastgate Ltd 6.7%, Newhaven Ltd 5.78%, Bethlehem International Ltd 8.87% (in addition to the 8.88% already held), and New Eagle Securities Ltd 5.9%. In related development, the Post says that, according to G Steel Plc on September 14, 2006, it had sold 1.4 billion capital- increase shares to creditors of Nakornthai Strip in exchange for US$60 million worth of secured receivables convertible into common shares of NSM at THB1.51 each. The buyers are Rochelle Finance Ltd (500.58 million shares), Eastgate Ltd (179.91 million), Great Western Ltd (271.24 million), Newhaven Ltd (177.73 million), Bethlehem International Ltd (223.73 million), and On City Holdings Ltd (41.79 million shares). About G Steel G Steel Public Company Ltd, headquartered in Bangkok, produces hot rolled coils (HRC) in different grades and gauges. G Steel is a stand-alone operating entity with no related group companies. Standard & Poor's Ratings Services on June 27, 2006, placed its ratings on Thailand's G Steel Public Co. Ltd., including the B+ corporate credit rating, on CreditWatch with negative implications. On June 27, 2006, Moody's Rating Agency announced that it had placed the B1 corporate family rating and senior unsecured bond rating of G Steel Public Company Limited on review for possible downgrade. This rating action follows G Steel's announcement it will purchase approximately US$180 million in convertible bonds issued by Nakornthai Strip Mill PLC. About Nakornthai Strip Nakornthai Strip Mill Public Company Limited is a Thailand-based manufacturing company. The Group's principal activities are manufacturing and selling of hot-rolled coil steel. These products can be used in downstream industries such as structural steel industry, container industry, steel pipe industry and gas tank industry. The Troubled Company Reporter - Asia Pacific reported on May 4, 2006, that Nakornthai has announced a recapitalization plan involving THB4 billion in debt restructuring to ensure a US$50- 75 million credit line for working capital. * Bad Loans Soar in 2006 Second Quarter, BOT Says ------------------------------------------------- Manufacturing, commerce and personal-consumption sectors experienced a significant increase in non-performing loans in the second quarter of 2006, the Bangkok Post relates citing reports from the Bank of Thailand. Based on BoT's report, NPLs in the manufacturing sector rose by THB29 billion from the previous quarter, the biggest increase in all sectors. Re-entry NPLs accounted for THBB11.7 billion. Bad loans increased by only THB16.1 billion in the first quarter. In the second quarter, the manufacturing sector restructured some debts and transferred others to asset-management companies. This accounted for THB15.2 billion of NPLs, lower than the THB22.5 billion in the first quarter. NPLs in the manufacturing sector rose by 7.3% from the first quarter to THB157.4 billion, accelerating the 2.5% growth of overall NPLs. Manufacturing NPLs accounted for almost 10% of total loans, compared with 9.5% in the previous quarter. In terms of total NPLs, the sector represented 32.5%, up from 31%. Meanwhile, NPLs in financial institutions jumped in the second quarter by THB71.7 billion, of which THBB42.2 billion were new NPLs. After restructuring, bad loans dropped by THBB58.4 billion, leaving the net increase in NPLs at THB13.3 billion. Krirk Vanikkul, BOT assistant governor, said the increase in NPLs was due to the economy being in the doldrums, however debt restructuring, and transfers had helped the situation. A central bank source said rising interest rates, oil-price hikes and the economic slowdown were reasons for the acceleration of NPLs. The slowdown in the global economy also caused foreign debtors difficulties in paying their loans. The commerce sector also saw its bad loans rise by THB13.4 billion in the second quarter, up from THB11.2 billion. But it succeeded in restructuring loans of THB12.3 billion, higher than the THB9.9 billion of the previous quarter. In the commerce sector, NPL's amounted to THB89.6 billion, up 0.6%. Its NPLs accounted for 9.1% of total loans, down from 9.2%. NPLs in the personal-consumption sector also increased by THB10.7 billion, most were new NPLs. Bad loans rose by THB9.9 billion in the first quarter, restructuring and transfers, however accounted for THB9.6 billion of NPLs in the sector, up from THB7.9 billion. The sector's net NPLs in the second quarter rose by THB1.1 billion. The sector's total NPLs were THB67.8 billion in the second quarter, or 6% of total loans, up from 5.98% in the previous quarter. ********* 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. Nolie Christy Alaba, Valerie Udtuhan, Francis Chicano, Catherine Gutib, Tara Eliza Tecarro, 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 ***