/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/060925.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 25, 2006, Vol. 9, No. 190 Headlines A U S T R A L I A & N E W Z E A L A N D ADVANCE SECURITIES: Final Meeting Slated for October 12 ANNEX TECHNOLOGY: To Declare Dividend on October 10 BERWICK INN: Enters Voluntary Liquidation CENTURION CORPORATE: Creditors Decide to Cease Operations COLEBATCH PTY: Creditors Resolve to Close Shop DAVID MCCARTHY: To Hold Final Meeting on October 10 DIVINE NURSERIES: Final Meeting Set on October 13 DUNN & WILSON: Members to Hear Wind-Up Report on October 11 DVR DEVELOPMENTS: Official Assignee to Act as Liquidator EAST COAST GRAPHICS: Placed Under Voluntary Wind-Up FAST FORWARD: Members Agree to Close Business FELTEX CARPETS: Placed in Receivership by ANZ Bank FELTEX CARPETS: Continues Melbourne Cup Sponsorhip FIRST DISTRIBUTORS: Court Appoints Joint Liquidators FIRSTBASE HOLDINGS: Members and Creditors Set to Meet on Oct. 13 GARDNER INVESTMENT: Appoints Official Assignee as Liquidator GENERAL MORTGAGE: Appoints Official Liquidator GOLDEN ENTERPRISES: Court Set to Hear ACC's Liquidation Bid GREEN PACIFIC: Federal Court Orders Wind-Up GUDU WONDJER: Enters Voluntary Liquidation H & T CARPENTRY: Placed Under Voluntary Liquidation HALWIN INVESTMENTS: Members Agree to Liquidate Business INTELICOAT TECHNOLOGIES: Members Decide to Wind Up Operations JO JO'S HAULAGE: NSW Court Upholds J. Dadisho's Appeal KCGM ENGINEERING: To Declare Dividend for Unsecured Creditors M.D.M CONSTRUCTIONS: Liquidator to Present Wind-Up Report MACKS SEAFOODS: Names van Delden and Woods as Liquidators MARKWICK INVESTMENTS: Inability to Pay Debts Prompts Wind-Up MARSU LIMITED: Liquidation Commenced on September 4 MJM MANAGEMENT: Liquidator Tolcher to Present Wind-Up Report ORIGIN PACIFIC: Directors Appointed Receiver, Report Says PAPATOETOE AUTOMOTIVE: Court to Hear ACC's Liquidation Bid PEABODY ENERGY: Fitch Rates New US$2.75 Bln Sr. Facility at BB+ PEABODY ENERGY: Completes New US$2.75 Bln Senior Credit Facility PEPAR PTY: Schedules Final Meeting on October 12 PLEGA HEALTHCARE: Faces Liquidation Proceedings QUEANBEYAN COMMUNITY: Undergoes Wind-Up Proceedings RICHO'S GLASS: To Declare Final Priority Dividend on Oct. 17 SABC PROJECT: Appoints Hugh Martin as Official Liquidator SAVILLE INVESTMENTS: Appoints PricewaterhouseCoopers as Receiver STOCKFORD CENTRAL: To Declare Third Dividend on October 13 STOCKFORD GROUP: Creditors' Proofs of Claim Due on October 3 SUPREME CPA: Prepares to Declare Dividend to Creditors TASMANIAN MOTELS: Members Opt to Shut Down Operations TRANSAX INT'L: June 30 Balance Sheet Upside-Down by $3.7 Million TREBBEL PTY: To Declare First and Final Dividend TYMCALL PTY: Shuts Down Business Operations VANTAGE INVESTMENTS: Members' Final Meeting Set for October 11 WESTPOINT GROUP: Slater & Gordon Sues Advisers in Class Action WHITE DECORATORS: Official Assignee to Act as Liquidator WINTERHAUS PTY: Members Opt for Voluntary Wind-Up C H I N A & H O N G K O N G A P CONSULTING: Members' Final Meeting Set for October 27 BOOKHAM INC: Ernst & Young Raises Going Concern Doubt BOOKHAM INC: Getting US$31M Gross Proceeds in Private Placement CARDINAL (INTERNATIONAL): Creditors' Proofs of Claim Due Oct. 16 CHAPTEAM INVESTMENTS: Court to Hear Wind-Up Bid on Oct. 18 COMBI-LINE: Schedules Final Meeting on October 16 CHUNG FULL: Wind-Up Petition Hearing Fixed for October 18 DAIMLERCHRYSLER: Tougher Market Conditions Spur Outlook Changes FORMAX LTD: Members and Creditors to Hear Wind-Up Report HARTCOURT COS: Kabani & Company Raises Going Concern Doubt HOME CROWN: Members to Get Liquidator's Wind-Up Report on Oct. 8 INTERNATIONAL XIAMEN: Appoints Joint and Several Liquidators GOODLOY FOOD: Wind-Up Petition Hearing Slated for October 18 LERIC INTERNATIONAL: Court to Hear Wind-Up Bid on October 25 MAYSON ENGINEERING: Court to Hear Wind-Up Bid on October 18 OVERSEAS CROWN: Members Final Meeting Slated on October 18 POINT HARVEST: Appoints Jeffy as Liquidator SAMPOERNA HK: Proofs of Debts Due on October 18 SINO MEDIA: Members & Creditors to Receive Wind-Up Report SUNCO MANUFACTURING: Final Members Meeting Set on October 17 TWIN WORLD HOLDINGS: Creditors' Proofs of Claim Due on Oct. 20 TWIN WORLD LTD: Creditors Must Prove Debts by October 20 WINFIELD LEGEND: Creditors Proofs of Claim Due on October 16 XINXING (HONG KONG): Faces Wind-Up Proceedings YORK ELECTRONIC: To Declare First and Final Dividend on Oct. 14 I N D I A BAUSCH & LOMB: Cuts 400 Temporary Manufacturing Jobs CANARA BANK: Asserts INR11.75-Crore Claim from Actress' Family KOTAK MAHINDRA BANK: Posts 125% Higher Profit for June Quarter KOTAK MAHINDRA BANK: To Double Private Equity Fund KOTAK MAHINDRA BANK: Allots Equity Shares Under ESOP NTPC LTD: Aims 75,000 MW Production Capacity by 2017 NXP BV: Moody's Assigns P(Ba2) Ratings to EUR3-Bln Senior Notes NXP BV: Langlois Named Senior VP of Global Sales PRIDE INTERNATIONAL: S&P Affirms BB Corporate Credit Rating PRIDE INTERNATIONAL: Appoints Rodney Eads as EVP & COO SILICON GRAPHICS: New York Court Confirms Plan of Reorganization SILICON GRAPHICS: Enters Into US$115 Mil. Commitment Letter SILICON GRAPHICS: Court Approves Revised KPMG Hourly Rates STATE BANK OF INDIA: Plans to Add 5.5 Lakh New Customers SYNDICATE BANK: Gains More Than 1M Customers from New Scheme UNITED WESTERN BANK: Depositors Petition High Court * Reserve Bank Names Five Potentially Troubled Banks * DFID Approves Restructuring of 34 Sick PSUs I N D O N E S I A BHARAT PETROLEUM: Workers Go on Nationwide Strike EXCELCOMINDO PRATAMA: Selects Ericsson to Build 3G Network * JCR Upgrades Indonesia's Long-Term Senior Debt Ratings to BB- J A P A N AIFUL CORPORATION: Pays JPY260-Million Back Taxes APOGEE TECH: Accumulated Deficit Tops US$14.3 Million at June 30 APOGEE TECH: Dr. Andrianov Named VP for Research & Development DOLE FOOD: S&P Holds Ratings on Neg Watch After Product Warning DOLE FOOD: Supports Recall of Packaged Fresh Spinach Products FORD MOTOR: Buying Rover Brand Name From BMW FORD MOTOR CREDIT: R&I Places BB Rating on Monitor HERBALIFE LIMITED: Names Stacy Brovitz as Sr. VP of Global Ops HERBALIFE INT'L: S&P Rates US$300-Million Bank Financing at BB+ XM SATELLITE: D.C. Court Consolidates Securities Fraud Lawsuits * R&I Affirms Japan's AAA Rating with Negative Outlook K O R E A ARAMARK CORP: Moody's Lowers $250MM Senior Notes to B2 from Baa3 HYUNDAI ENGINEERING: Gets US$780-Mil Saudi Aramco Contract KOREA EXCHANGE: Stock-Price Manipulation Probe Confirmed * U.S.-listed Korean Cos. Prepared for Stricter SEC Requirements M A L A Y S I A AVANGARDE RESOURCES: FY2005 Report Due June 30, Still Not Filed AYER HITAM: August Default Amount Tops MYR41,715,961 FORMIS MALAYSIA: Changes Name to Perduren (Malaysia) Berhad KOMARKORP BERHAD: Buys Back 20,100 Shares METROPLEX BERHAD: Wind-Up Petition Hearing Adjourned to Oct. 10 NORTH BORNEO: Has Yet to Submit Annual Report for 2005 POLYMATE HOLDINGS: Receives Writ of Summons from HSBC Bank SUGAR BUN: To List and Quote 500,000 Shares on Sept. 26 TRADEWINDS CORP: Warrants to Exit Official SE List on Oct. 27 P H I L I P P I N E S GLOBE TELECOM: Deploys Nokia MSC Server Mobile Softswitch NATIONAL POWER: PSALM to Auction Two Decommissioned Power Plants VITARICH CORPORATION: Court Appoints Rehabilitation Receiver * PSE to Implement Backdoor Listing Rules on September 28, 2006 S I N G A P O R E AMARANTH ADVISORS: Announces Loss, Reels From Falling Gas Prices AMARANTH ADVISORS: Transfers Energy Trades to Citadel & JPMorgan COLLINS & AIKMAN: Court OKs Settlement with Valiant and MOBIS COLLINS & AIKMAN: Will Sell Laminates Asset to SW Foam DELL INC: Faces Lawsuits Over Alleged Accounting Overstatements FREESCALE SEMICONDUCTOR: Develops Multi-Chip Products with ELMOS LINDETEVES-JACOBERG: Places Unit Under Voluntary Liquidation MYHOME FURNITURE: Creditors' Proofs of Debt Due on October 3 TASS SPECIALITY: Creditors Must Prove Debt by October 9 T H A I L A N D ADVANCE AGRO: Ratings Unaffected by Military Coup, Moody's Says BANGKOK BANK: Moody's Keeps Ratings Amid Military Coup BANK OF AYUDHYA: Coup No Immediate Impact on Moody's Ratings BANK OF AYUDHYA: Shareholders Approve GE Deal G STEEL: Moody's Shaves Bond Ratings to B2 from B1 GOVT. HOUSING BANK: Ratings Unaffected by Coup, Moody's Says KASIKORN BANK: Moody's Says Coup No Immediate Impact on Ratings KRUNG THAI: Military Coup no Immediate Impact on Moody's Ratings - - - - - - - - ============================================ A U S T R A L I A & N E W Z E A L A N D ============================================ ADVANCE SECURITIES: Final Meeting Slated for October 12 ------------------------------------------------------- A final meeting for the members and creditors of Advance Securities NT Pty Ltd will be held on October 12, 2006, at 10:00 a.m. At the meeting, Liquidator A.C. Matthews will report on the Company's wind-up proceedings and property disposal. According to the Troubled Company Reporter - Asia Pacific, the Company declared dividend on February 7, 2006. The Liquidator can be reached at: A. C. Matthews Anthony Matthews & Associates Chartered Accountants Ground Floor, 91 Hutt Street Adelaide, South Australia 5000 Australia Telephone:(08) 8232 8885 Facsimile:(08) 8232 8886 e-mail: info@matthewsassociates.com.au ANNEX TECHNOLOGY: To Declare Dividend on October 10 --------------------------------------------------- Annex Technology (Australia) Pty Ltd, which is in liquidation, will declare its first and final dividend for creditors on October 10, 2006 In this regard, creditors are required to submit their proofs of claim by October 6, 2006, for them to share in the dividend distribution. The Liquidator can be reached at: Adrian Brown Ferrier Hodgson Level 29, 600 Bourke Street Melbourne, Victoria 3000 Australia BERWICK INN: Enters Voluntary Liquidation ----------------------------------------- Members of Berwick Inn Pty Ltd met on September 4, 2006, and agreed to voluntarily liquidate the Company's business. In this regard Liquidator Mansell requires the creditors of the company to submit their proofs of claim by October 3, 2006. The Liquidator can be reached at: Richard Mansell R. G. Mansell & Associates Level 3, 118 Queen Street Melbourne Australia Telephone:(03) 9603 0090 Facsimile:(03) 9603 0099 CENTURION CORPORATE: Creditors Decide to Cease Operations --------------------------------------------------------- At a general meeting on September 1, 2006, the creditors of Centurion Corporate Protection Group Pty Ltd agreed that it is in the Company's best interests to wind up its operations. Subsequently, Ezio Marco Senatore and Stephen Brennan were appointed as joint and several liquidators. The Joint and Several Liquidators can be reached at: Ezio Marco Senatore Stephen Brennan Senatore Brennan Rashid Level 7, 28 University Avenue Canberra, Australian Capital Territory 2601 Australia COLEBATCH PTY: Creditors Resolve to Close Shop ---------------------------------------------- The creditors of Colebatch Pty Ltd resolved on September 1, 2006, to wind up the Company's operations. Accordingly, James Patrick Downey was appointed as liquidator. The Liquidator can be reached at: James Patrick Downey Cole Downey & Co Chartered Accountants Level 1, 22 William Street Melbourne, Victoria 3000 Australia DAVID MCCARTHY: To Hold Final Meeting on October 10 --------------------------------------------------- Members and creditors of David McCarthy & Associates Pty Ltd will hold their final meeting on October 10, 2006, at 10:00 a.m., to receive Liquidator John Feddema's final accounts of the Company's wind-up proceedings and property disposal exercises. According to the Troubled Company Reporter - Asia Pacific, the company commenced a wind-up of its operations on January 13, 2005. The Liquidator can be reached at: John Feddema Cranstoun & Hussein Level 2, 102 Adelaide Street Brisbane, Queensland 4000 Australia Web site: http://www.cah.com.au/ DIVINE NURSERIES: Final Meeting Set on October 13 ------------------------------------------------- Members and creditors of Divine Nurseries Pty Ltd will convene on October 13, 2006, at 12:00 p.m., to get an account of the manner of the Company's wind-up and property disposal activities from Liquidator R.W. Whitton. The Liquidator can be reached at: R. W. Whitton c/o Lawler Partners Level 7, 1 Margaret Street Sydney, New South Wales 2000 Australia Telephone:(02) 8346 6000 DUNN & WILSON: Members to Hear Wind-Up Report on October 11 ----------------------------------------------------------- Members of Dunn & Wilson (Australia) Pty Ltd -- which is in liquidation -- will convene on October 11, 2006, at 10:00 a.m. During the meeting, Liquidator Robyn Mckern will report on the Company's wind-up and property disposal exercises. As reported by the Troubled Company Reporter - Asia Pacific, the members of the Company resolved to wind up the company's operations on July 11, 2005. The Liquidator can be reached at: Robyn McKern McGrathNicol+Partners Level 8, IBM Centre 60 City Road Southbank Victoria 3006 Australia Telephone:(03) 9038 3137 Web site: http://www.mcgrathnicol.com/ DVR DEVELOPMENTS: Official Assignee to Act as Liquidator -------------------------------------------------------- The Official Assignee was on September 4, 2006, appointed as official liquidator of DVR Developments Ltd. As reported by the Troubled Company Reporter - Asia Pacific, Larnach Private Ledger No.1 Ltd filed a wind-up petition against on August 4, 2006. The petition was heard on September 4, 2006. The Liquidator can be reached at: Official Assignee Insolvency and Trustee Service Private Bag 4714, Christchurch New Zealand Telephone: 0508 467 658 Web site: http://www.insolvency.govt.nz/ EAST COAST GRAPHICS: Placed Under Voluntary Wind-Up --------------------------------------------------- On September 1, 2006, the creditors of East Coast Graphics Australia Pty Ltd resolved to voluntarily wind up the Company's operations. Subsequently, H. A. MacKinnon and K. L. Sutherland were appointed as joint and several liquidators. The Joint and Several Liquidators can be reached at: H. A. MacKinnon K. L. Sutherland Bent & Cougle Pty Ltd Chartered Accountants 332 St Kilda Road Melbourne, Victoria 3004 Australia FAST FORWARD: Members Agree to Close Business --------------------------------------------- Members of Fast Forward Motors Service Centre Pty Ltd met on September 4, 2006, and agreed to close the Company's business. Accordingly, Nicholas Martin was appointed liquidator at the creditors' meeting held that same day. The Liquidator can be reached at: Nicholas Martin PPB Chartered Accountants Level 10, 90 Collins Street Melbourne, Victoria 3000 Australia FELTEX CARPETS: Placed in Receivership by ANZ Bank -------------------------------------------------- Feltex Carpets Ltd. was placed in receivership by its bankers, two years after being sold in a public offer by a private equity arm of Credit Suisse Group, Bloomberg News reports. On September 22, 2006, Australia & New Zealand Banking Group Ltd. named Colin Nicol, Peter Anderson and Kerryn Downey, of McGrathNicol+Partners, were appointed as receivers and managers of Feltex Carpets, Bloomberg says. The appointment of receivers and managers follows the deterioration in Feltex's financial performance, which has led to unsustainable debt levels and a share price collapse. Bloomberg relates that Feltex failed to repay its NZ$135-million debt to ANZ Bank. Accordingly, Feltex applied for the suspension of trading in its shares. In addition, Messrs. Nicol and Anderson have been appointed as receivers and managers of Feltex's Australian subsidiaries, the New Zealand Stock Exchange stated in a press release. The receivers and managers cannot immediately comment on either of Feltex's operational or exact financial position. "Feltex is a New Zealand icon and we are moving quickly to ensure that it continues to operate as normal," Mr. Nicol states. Mr. Nicol advises that he has taken control of discussions with parties who have expressed interest in acquiring Feltex, noting that "Feltex's strong household brand names, excellent customer base and outstanding employees provide [him] with confidence that a going concern sale of Feltex will be achieved." "Continued support from Feltex's employees, unions, suppliers and customers is vital to maintaining operations and business value. Over the next few days, we will be communicating with all key stakeholders," Mr. Nicol notes. ANZ Bank Demands Repayment of Borrowings Feltex has signaled to the market and to ANZ Bank the process of reducing debt by recapitalizing its balance sheet. The ANZ Bank had earlier accepted the process and the timetable and provided a conditional statement of "no action" until September 30, 2006, subsequently extended to October 20, 2006. However, ANZ Bank has served notice that it was withdrawing its "no action" letter and issued a default notice demanding immediate repayment of all Feltex's borrowings. In its letter to Feltex, ANZ Bank noted the discussions with both Godfrey Hirst and the Turners -- who offered to take over the carpet maker -- but stated, "You have been unable to complete a transaction which will enable the ANZ to be repaid its debt in full. The progress of negotiations is no longer satisfactory to the ANZ." Turner Proposal Still Viable However, the Feltex Board of Directors believes that an opportunity to recapitalize the company and provide a future for it, is still viable under the Turner proposal. Further, Feltex shareholders will now be denied the opportunity of voting on the future ownership of the company. The directors have been working to protect the various interests of the major stakeholders in the company being its creditors, its employees, and its shareholders, the majority of whom are New Zealanders, as well as its customers and suppliers. The Board firmly believes that Feltex's debt to ANZ Bank would have been repaid, or restructured, satisfactorily as an outcome of Feltex's recent efforts, and that shareholders would have been given the opportunity to vote on their future engagement with the company. Bruce Sheppard, chairman of the New Zealand Shareholders Association, a lobby group for investors, said his organization had sought to have Feltex's Board removed and has written to the Securities Commission and the New Zealand Institute of Chartered Accountants to complain about the company's performance, Bloomberg News reports. Mr. Sheppard however, declined to comment on the receivership and said he can't predict whether shareholders, most of them individuals, would consider a lawsuit, Jonathan Underhill of Bloomberg News relates. ANZ Bank Confirms Receiver Appointment ANZ confirmed that it has appointed receivers to Feltex Carpets Limited. The appointment will secure the company's position -- and that of its staff in New Zealand and Australia. ANZ National Bank Chief Executive Officer, Graham Hodges said: "ANZ has at all times carefully considered solutions developed by the company to address its precarious financial position in the interests of all stakeholders including employees, creditors, customers and shareholders. However a proposal could not be finalized. Although ANZ does not normally comment on customer relationships, the bank has made these comments given the recent developments and the announcement from Feltex. "ANZ has been ready to support a transaction to recapitalize the company," Mr. Hodges said in a statement e-mailed to Bloomberg News. "Despite lengthy discussions this has not been successful and there has been no choice but to appoint receivers." Bloomberg cites Mr. Hodges as stating McGrathNicol will commence a sale process that "best preserves the business's value for the benefit of Feltex, its stakeholders and the bank." Godfrey Hirst, which has previously withdrawn its offer for Feltex, has made a direct offer to the ANZ Bank, Bloomberg cites Feltex, as saying. The bank refused to say why it isn't proceeding with the Turner- led investment package and may have received an offer from Godfrey Hirst for some of the Feltex plants, Bloomberg cites Graeme Turner, as telling Radio New Zealand. Agreements the bank made last week are enforceable and the bidding group may consider taking legal action, Mr. Turner said. About Feltex Headquartered in Auckland, New Zealand, and established over 50 years ago, Feltex Carpets Limited -- http://www.feltex.com/-- has built a reputation for being one of the world's leading manufacturers of superior-quality carpet. The Feltex operation includes a wool scouring plant, six spinning mills, three tufted carpet mills, a woven carpet mill and offices in New Zealand, Australia and the United States. The Company also leads the way in exports, with customers throughout South East Asia, Japan, the United States, the Middle East and other key world markets. Feltex listed on the local stock exchange in mid-2004 in a NZ$254-million initial public offering -- the year's largest in New Zealand. However, the Company fell short of its prospectus earnings projections, reporting a net profit of NZ$11.8 million in the fiscal year to June 30, 2005, about half the forecast NZ$23.9 million. The Company has struggled with losses and earnings downgrades, flogging sales, and a dipping share price. The Company closed plants and in October 2005, axed 235 jobs, mostly in Australia, and by 2006, abandoned merger talks with Australian competitor Godfrey Hirst after it suggested that the apparent "white knight" investor was more interested in a reverse takeover. Godfrey Hirst later sold out its nearly 9% stake in the Company. In February 2006, Feltex reported a first-half after tax loss of NZ$11.83 million, down almost 200% compared with the net loss in the previous year. The Company underwent negotiations for a capital raising exercise, proceeds of which will have been used to ease its NZ$128-million debt to ANZ Bank. However, these negotiations failed. ANZ Bank placed the Company in receivership on September 22, 2006, and named Colin Nicol, Peter Anderson and Kerryn Downey, of McGrathNicol+Partners, as receivers and managers. FELTEX CARPETS: Continues Melbourne Cup Sponsorhip -------------------------------------------------- Feltex Carpets Limited remains committed to sponsoring a Melbourne Cup race, despite being placed in receivership, ShareChat News reports. The NZ$101,000 sponsorship of race 11 at the carnival in November was a commitment the business had for some time, the New Zealand Press Association cites Feltex spokesman John Walsh, as saying. The commitment was made when circumstances were different and since then Feltex had pared back its marketing and promotions budget to an appropriate level but there were some things it could not pare back, NZPA relates. Mr. Walsh did not have the details but acknowledged some retailer hospitality would also be involved with the cup event, ShareChat relates. NZPA cites the National Business Review as reporting that Feltex was understood to be inviting between 70 and 80 retailers and flying many of them to Melbourne. But Mr. Walsh said that to suggest it was a trade junket with no benefit was completely wrong, NZPA notes. It was possible the receivers appointed could decide to cut the event but the matter was unlikely to be a particularly high priority for them, ShareChat cites Mr. Walsh, as saying. A spokeswoman for the receivers from McGrathNicol & Partners was unsure immediately whether the receivers had considered the matter yet, NZPA says. The race sponsorship is a promotion for a new carpet range called Redbook Total, which is based on a stain resistant technology, ShareChat reveals. About Feltex Headquartered in Auckland, New Zealand, and established over 50 years ago, Feltex Carpets Limited -- http://www.feltex.com/-- has built a reputation for being one of the world's leading manufacturers of superior-quality carpet. The Feltex operation includes a wool scouring plant, six spinning mills, three tufted carpet mills, a woven carpet mill and offices in New Zealand, Australia and the United States. The Company also leads the way in exports, with customers throughout South East Asia, Japan, the United States, the Middle East and other key world markets. Feltex listed on the local stock exchange in mid-2004 in a NZ$254-million initial public offering -- the year's largest in New Zealand. However, the Company fell short of its prospectus earnings projections, reporting a net profit of NZ$11.8 million in the fiscal year to June 30, 2005, about half the forecast NZ$23.9 million. The Company has struggled with losses and earnings downgrades, flogging sales, and a dipping share price. The Company closed plants and in October 2005, axed 235 jobs, mostly in Australia, and by 2006, abandoned merger talks with Australian competitor Godfrey Hirst after it suggested that the apparent "white knight" investor was more interested in a reverse takeover. Godfrey Hirst later sold out its nearly 9% stake in the Company. In February 2006, Feltex reported a first-half after tax loss of NZ$11.83 million, down almost 200% compared with the net loss in the previous year. The Company underwent negotiations for a capital raising exercise, proceeds of which will have been used to ease its NZ$128-million debt to ANZ Bank. However, these negotiations failed. ANZ Bank placed the Company in receivership on September 22, 2006, and named Colin Nicol, Peter Anderson and Kerryn Downey, of McGrathNicol+Partners, as receivers and managers. FIRST DISTRIBUTORS: Court Appoints Joint Liquidators ---------------------------------------------------- The High Court of Auckland on September 7, 2006, appointed Henry David Levin and David Stuart Vance as joint and several liquidators of First Distributors Ltd. Accordingly, the creditors of the company are required to prove their debts by October 5, 2006, to the Liquidators. Failure to present proofs of claim will exclude a creditor from sharing in any distribution the company will make. The Joint Liquidators can be reached at: Henry Levin McCallum Petterson, Level Eleven Forsyth Barr Tower, 55-65 Shortland Street P.O. Box 6916, Wellesley Street Auckland, New Zealand Telephone: (09) 336 0000 Facsimile: (09) 336 0010 FIRSTBASE HOLDINGS: Members and Creditors Set to Meet on Oct. 13 ---------------------------------------------------------------- A final meeting of the members and creditors of Firstbase Holdings Pty Ltd, which is in liquidation, will be conducted on October 13, 2006, at 2:00 p.m. The Liquidator can be reached at: D. McLay Next Building, Level 5 16 Milligan Street Perth, Western Australia 6000 Australia GARDNER INVESTMENT: Appoints Official Assignee as Liquidator ------------------------------------------------------------ The Official Assignee was on September 4, 2006, appointed as official liquidator of Gardner Investments Homes Ltd. The Troubled Company Reporter - Asia Pacific reported on Aug. 17, 2006, that Christchurch Ready-Mix Concrete Ltd filed a wind-up petition against the company. The petition was heard on August 21, 2006. The Liquidator can be reached at: Official Assignee Insolvency and Trustee Service Private Bag 4714, Christchurch New Zealand Telephone: 0508 467 658 Web site: http://www.insolvency.govt.nz/ GENERAL MORTGAGE: Appoints Official Liquidator ---------------------------------------------- On September 4, 2006, the General Mortgage Nominees Ltd appointed the Official Assignee as its liquidator. According to the Troubled Company Reporter - Asia Pacific, the Commissioner of Inland Revenue filed a liquidation petition against the company on May 24, 2006. The petition was heard before the Court on July 10, 2006. The Liquidator can be reached at: Official Assignee Insolvency and Trustee Service Private Bag 4714, Christchurch New Zealand Telephone: 0508 467 658 Web site: http://www.insolvency.govt.nz/ GOLDEN ENTERPRISES: Court Set to Hear ACC's Liquidation Bid ----------------------------------------------------------- The High Court of Auckland will hear a liquidation petition filed against Golden Enterprises Ltd on October 5, 2006, at 10:00 a.m. The wind-up petition was filed by the Accident Compensation Commission on July 17, 2006. The Solicitor for the Plaintiff can be reached at: Dianne S. Lester Maude & Miller, Second Floor McDonald's Building Cobham Court (P.O. Box 50-555 or D.X. S.P. 32-505) Porirua City, New Zealand GREEN PACIFIC: Federal Court Orders Wind-Up ------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on July 4, 2006, the Australian Securities and Investments Commission has conducted a formal investigation into the affairs of Sydney-based energy provider, Green Pacific Energy Limited, after a surveillance review identified concerns that the Company was continuing to trade and incur debt while insolvent. According to the TCR-AP, after its investigation, the ASIC filed applications with the Federal Court in Brisbane to wind up Green Pacific and its controlled entities, Green Pacific Energy Capital Pty Ltd., and Green Pacific Energy Stapylton No. 1 Pty Ltd. The ASIC sought to wind up Green Pacific on the grounds of insolvency, and on just and equitable grounds after allegations that its Chairman and Chief Executive Officer, Alfred Chi Wai Wong, had acted in his own interest rather than in the interests of the Company's members as a whole. The allegations were focused on two main events: 1. the use of AU$4.8 million, out of AU$6.3 million invested in Green Pacific by JF Capital Partners Ltd, a specialist wholesale Australian equities manager, for the repayment of debts owed to companies related to Mr. Wong. This was done without the knowledge or approval of the Green Pacific Board of Directors and contrary to the direct representations that were made to investors, and the representations made to the public via announcements to the Australian Stock Exchange, that the funds would be "applied to the roll out of Green Pacific's pipeline of renewable energy projects;" and 2. the promotion of promissory notes in Green Pacific at public seminars and the issue of these promissory notes to members of the public, under the direction of Mr. Wong, to raise capital for the company, when the Board of Directors had clearly resolved not to issue any promissory notes to the public until Green Pacific had a firm business strategy in place. "ASIC will not hesitate to take action where it has concerns that a company is being run contrary to the interests of members and creditors and where it continues to trade and incur debts while insolvent," the ASIC's Executive Director of Enforcement, Jan Redfern, says. Accordingly, in an update, the Federal Court of Australia in Brisbane has ordered the wind-up of Green Pacific and its subsidiary Green Pacific Energy Capital Pty Ltd. The Honorable Justice Greenwood was satisfied that the conduct of Mr. Wong was improper and misleading and stated in his judgment that: "Public interest in the governance of corporations and particularly corporations listed on the Australian Stock Exchange demands engagement by the Board in material questions which affect or are likely to affect the affairs of the company and the interests of the members and creditors." The TCR-AP also reported that the ASIC sought the appointment of Greg Hall, of PricewaterhouseCoopers, as liquidator for the Green Pacific group. A statement from the ASIC discloses that Mr. Hall has been appointed as the liquidator of Green Pacific and its subsidiary. The ASIC commenced a surveillance review of Green Pacific and its related entities after receiving a notice from its external auditor, which raised concerns about the solvency of the company and corporate governance issues. Green Pacific Energy Limited -- http://www.greenpacific.com.au/ -- is a Sydney-based company listed on the Australian Stock Exchange (ASX code GPE). The company specializes in developing renewable energy power stations and also provides related products and services that are commercially viable and carry maximum environmental benefits. The Company controls all stages in developing its power stations, including identifying appropriate sites, obtaining government and EPA approvals, negotiating power purchase agreements and fuel supply contracts, securing project finance and supervising all ongoing operational matters. GUDU WONDJER: Enters Voluntary Liquidation ------------------------------------------ The members of Gudu Wondjer (Sea Women) Aboriginal Corporation met on September 5, 2006, and agreed to voluntary wind-up the Company's operations. In this regard, William Balfour Rangott was appointed as liquidator. The Liquidator can be reached at: William Balfour Rangott Rangott Slaven Hundy Level 3, Engineering House 11 National Circuit Barton, Australian Capital Territory Australia H & T CARPENTRY: Placed Under Voluntary Liquidation --------------------------------------------------- At a general meeting on September 19, 2006, the members of H & T Carpentry Pty Ltd resolved to voluntarily liquidate the Company's business. In this regard, Michael Edward Slaven was appointed as liquidator. The Liquidator can be reached at: Michael Edward Slaven Rangott Slaven Hundy Unit 12, Level 3, Engineering House 11 National Circuit Barton, Australian Capital Territory 2600 Australia HALWIN INVESTMENTS: Members Agree to Liquidate Business ------------------------------------------------------- Members of Halwin Investments Pty Ltd convened on August 31, 2006, and resolved to voluntarily liquidate the Company's business and distribute the proceeds of its assets disposal. The Liquidator can be reached at: F. J. Hegarty Chartered Accountant 43 Dogwood Drive Palm Beach, Queensland Australia INTELICOAT TECHNOLOGIES: Members Decide to Wind Up Operations ------------------------------------------------------------- At a general meeting held on September 1, 2006, the members of Intelicoat Technologies Australia Pty Ltd agreed to voluntarily wind up the company's operations. Michael Gerard McCann was subsequently appointed as liquidator. The Liquidator can be reached at: Michael Gerard McCann Grant Thornton Chartered Accountants Level 4, Grant Thornton House 102 Adelaide Street, Brisbane Australia JO JO'S HAULAGE: NSW Court Upholds J. Dadisho's Appeal ------------------------------------------------------ The Criminal Court of Appeal of New South Wales has upheld an appeal by Joseph Dadisho, of Kemps Creek in NSW, on his conviction of three charges in relation to Jo Jo's Haulage Australia Pty Limited. As reported in the Troubled Company Reporter - Asia Pacific on February 16, 2006, the Sydney Local Court convicted Mr. Dadisho of three charges brought by the Australian Securities and Investments Commission after its investigation, charging him with: 1. two counts of fraudulently removing part of the property of the company; and 2. one count of failing to assist the liquidator when required. According to the TCR-AP, the court sentenced Mr. Dadisho to perform 100 hours community service and to pay AU$50,000 to the liquidator of Jo Jo's Haulage Australia. Mr. Dadisho received a two-year good behavior bond in the sum of AU$2,000 for failing to assist the liquidator. On November 20, 2001, Jo Jo's Haulage Australia Pty Limited went into liquidation, during which Mr. Dadisho was the company's director, the TCR-AP said. The Commonwealth Director of Public Prosecutions prosecuted the matter. KCGM ENGINEERING: To Declare Dividend for Unsecured Creditors ------------------------------------------------------------- KCGM Engineering Services Pty Ltd, will declare the first dividend for its ordinary unsecured creditors on October 18, 2006. Creditors who cannot prove their claims by September 26, 2006, will be excluded from sharing in the dividend distribution. The Liquidator can be reached at: Brian McMaster KordaMentha Level 11, 37 St Georges Terrace Perth, Western Australia 6000 Australia M.D.M CONSTRUCTIONS: Liquidator to Present Wind-Up Report --------------------------------------------------------- Members and creditors of M.D.M. Constructions Pty Ltd will convene at a joint final meeting on October 13, 2006, at 10:00 a.m. During the meeting, Liquidator R.W. Whitton will present accounts of the company's wind-up and property disposal. A previous report from the Troubled Company Reporter - Asia Pacific, said that the members decided to voluntarily wind up M.D.M. Constructions' operations on February 22, 2006. The Liquidator can be reached at: R. W. Whitton Lawler Partners Chartered Accountants Level 7, 1 Margaret Street Sydney, New South Wales 2000 Australia MACKS SEAFOODS: Names van Delden and Woods as Liquidators --------------------------------------------------------- On September 8, 2006, shareholders of Macks Seafoods (1997) Ltd appointed Boris van Delden and Dennis Wood as Joint and Several Liquidators. Subsequently, the liquidators required the company's creditors to be filed their proofs of claim by October 20, 2006. Failure to prove a debt will exclude a creditor from sharing in any distribution the company will make. The Joint Liquidators can be reached at: Boris van Delden McDonald Vague, P.O. Box 6092 Wellesley Street Post Office Auckland, New Zealand Telephone: (09) 303 0506 Facsimile: (09) 303 0508 Web site: www.mvp.co.nz MARKWICK INVESTMENTS: Inability to Pay Debts Prompts Wind-Up ------------------------------------------------------------ On September 4, 2006, the members of Markwick Investments Pty Ltd formerly trading as Dlux Nectar resolved to wind up the company's operations due to its inability to pay debts. In this regard, T. J. Clifton and M. C. Hall were named joint and several liquidators. The Joint and Several Liquidator can be reached at: T. J. Clifton M. C. Hall Chartered Accountants Level 10, 26 Flinders Street Adelaide, South Australia Australia MARSU LIMITED: Liquidation Commenced on September 4 --------------------------------------------------- The liquidation of Marsu Ltd commenced with the appointment of John M. Scutter as liquidator on September 4, 2006. In this regard, the creditors of the company are required to file their proofs of claim by September 30, 2006. Failure to prove debts will exclude a creditor from sharing in any distribution the company will make. The Liquidator can be reached at: John Scutter Active Chartered Accountants Level Two, 330 High Street (P.O Box 31-040), Lower Hutt New Zealand Telephone: (04) 586 4645 Facsimile: (04) 569 6079 MJM MANAGEMENT: Liquidator Tolcher to Present Wind-Up Report ------------------------------------------------------------ Members and creditors of MJM Management Consultants Pty Ltd will hold a joint final meeting on October 12, 2006, at 10:30 a.m., to receive Liquidator R.G. Tolcher's final accounts of the company's wind-up proceedings and property disposal activities. According to the Troubled Company Reporter - Asia Pacific, the Company declared dividend on July 19, 2006. The Liquidator can be reached at: R. G. Tolcher Lawler Partners Chartered Accountants 763 Hunter Street, Newcastle West, New South Wales 2302 Australia ORIGIN PACIFIC: Directors Appointed Receiver, Report Says --------------------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on September 21, 2006, Origin Pacific Airways was placed in receivership, with Christchurch chartered accountant Murray Allott as the receiver. However, media reports did not disclose who appointed Mr. Allot. A follow-up report from The Nelson Mail reveals that Origin Pacific founder Robert Inglis and business partner Nicki Smith appointed the receiver. Mr. Allot confirmed the report but noted that it "did not mean they would receive the 'significant sum' owed to them ahead of other secured creditors," the paper relates. Origin Pacific has stopped trading on September 15, 2006. According to Mr. Allot, he still does not know how much money was owed to creditors, but noted that passengers who did not receive refunds after the airline's collapse are now unsecured creditors, and not at the top of the priority list for payment, the Nelson Mail relates. Two Remaining Directors The Nelson Mail relates that Mr. Inglis and Nelson lawyer and coroner Ian Smith are the only two remaining directors of Origin Pacific. Two others, Howard Clentworth and John de Vries have resigned as directors, a few days before the company went into receivership. The paper cites Mr. Smith as explaining that Messrs. Clentworth and de Vries resigned as directors only because as the company was about to go into receivership, they saw no point in carrying on. Mr. Smith, who was not a shareholder in Origin, further explains that his decision to carry on with being a director, a post he had held for the past year, is to support Mr. Inglis through the receivership. Mr. Inglis owned a 40.6% shareholding in Origin, 5.2% of which was held through his company Northwood Hop Company Ltd., the Nelson Mail reveals. The paper also relates that when asked why Origin's executive directors did not stop trading earlier to avoid mounting debt, Mr. Smith said they were continually looking for investors to come in and help the company. 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. A subsequent TCR-AP report on Sept. 18, 2006, stated that Origin Pacific admitted that its attempts at finding a buyer for its freight business had failed, and is thus taking steps to wind up its operations. PAPATOETOE AUTOMOTIVE: Court to Hear ACC's Liquidation Bid ---------------------------------------------------------- On July 4, 2006, the Accident Compensation Commission filed before the High Court of Auckland a liquidation petition against Papatoetoe Automotive Ltd. The petition will be heard on September 28, 2006, at 10:00 a.m. The Solicitor for the Petitioner can be reached at: Malcolm David Whitlock Whitlock & Co. Level Two, Baycorp Advantage House 15 Hopetoun Street, Auckland New Zealand PEABODY ENERGY: Fitch Rates New US$2.75 Bln Sr. Facility at BB+ --------------------------------------------------------------- Fitch Ratings lowered the ratings of Peabody Energy Corporation's Issuer Default Rating as well as its US$650 million senior notes due 2013 and its US$250 million senior notes due 2016 to 'BB+' from 'BBB-' and rated the company's new US$2.75 billion senior unsecured bank facility 'BB+'. The ratings are removed from Negative Rating Watch where they were placed July 6, 2006, following the announcement of the debt financed acquisition of Excel Coal Limited. The Rating Outlook is stable. On July 5, 2006, Peabody announced an agreement to acquire Excel Coal Limited for a total acquisition price of approximately US$1.34 billion plus assumed debt of approximately US$170 million. The transaction is to be an all cash deal and be debt financed. The financing will double Peabody's current debt load and increase total debt/Operating EBITDA from 1.6x to 3.0x pro forma for the latest 12 months ended June 30, 2006. Peabody has significant employee-related liabilities, some of which related to past operations, and significant reclamation obligations. The transaction is subject to customary regulatory and shareholder approvals and is expected to close early in the fourth quarter of 2006. Excel has three near term development projects which will lead to growth in cash flows for 2007 and 2008. The transaction diversifies Peabody's Australian operations and increases its scale in this fast growing market. The ratings reflect Peabody's large, well diversified operations, good control of low cost production, strong liquidity and moderate leverage. The outlook is for coal producers to continue to benefit from a strong pricing environment over the near term. Peabody is the largest US coal producer fueling 10% of domestic electricity generation. Pro forma for the Excel acquisition and completed development, the company will be the fifth largest coal producer in Australia. Peabody's operations are well diversified with new activity concentrated in the Powder River Basin and the Illinois Basin where it dominates. Peabody has over 9 billion tons of coal reserves. PEABODY ENERGY: Completes New US$2.75 Bln Senior Credit Facility ---------------------------------------------------------------- Peabody Energy completed its financing of a new senior credit facility on an unsecured basis. The facility includes US$1.8 billion in revolving credit and a US$950 million Term Loan A. "Peabody is replacing its existing secured credit facility with a substantially larger unsecured facility, to provide the company with greater financial flexibility to pursue its growth strategies," Richard A. Navarre, chief financial officer and executive vice president of Business Development, said. "This new facility reflects our financial strength and the confidence of the credit markets in Peabody." The new facility will be used in part to fund the company's planned acquisition of Excel Coal, which is on track for completion in Oct.. Bank of America and Citigroup served as lead arrangers for the new credit facility. Headquartered in St. Louis, Missouri, Peabody Energy Corp., (NYSE: BTU) -- http://www.peabodyenergy.com/-- is the world's largest private-sector coal company, with 2005 sales of 240 million tons of coal and U.S.US$4.6 billion in revenues. Its coal products fuel 10% of all U.S. and 3% of worldwide electricity. The company has coal operations in Australia. * * * Standard & Poor's Rating Services assigned its 'BB' rating to Peabody Energy Corp.'s proposed US$2.75 billion of senior unsecured credit facilities, consisting of a US$1.8 billion revolving credit facility and US$950 million Term Loan A. The rating outlook is stable. Moody's Investors Service assigned a Ba1 senior unsecured rating to Peabody Energy Corp.'s US$1.8 billion Revolving Credit Facility and US$950 million Term Loan A. At the same time, Moody's raised the senior unsecured rating on the company's existing senior unsecured notes to Ba1 from Ba2. Moody's also affirmed Peabody's Ba1 corporate family rating and its SGL-1 Speculative Grade Liquidity rating. The rating outlook remains negative. Fitch Ratings lowered Peabody's Issuer Default Rating as well as its US$650 million senior notes due 2013 and its US$250 million senior notes due 2016 to 'BB+' from 'BBB-' and rated the company's new US$2.75 billion senior unsecured bank facility 'BB+'. PEPAR PTY: Schedules Final Meeting on October 12 ------------------------------------------------ A joint final meeting of the members and creditors of Pepar Pty Ltd will be held on October 12, 2006, at 10:30 a.m., to receive Liquidator C.M. Williamson's final accounts of the Company's wind-up proceedings and property disposal exercises. According to the Troubled Company Reporter - Asia Pacific, the Company commenced a wind-up of its operations on April 12, 2006. The Liquidator can be reached at: C. M. Williamson SimsPartners Level 12, Dwyer Durack House 40 St George's Terrace Perth, Western Australia 6000 Australia PLEGA HEALTHCARE: Faces Liquidation Proceedings ----------------------------------------------- A liquidation petition filed against Plega Healthcare New Zealand Ltd will be heard before the High Court of Auckland on September 28, 2006, at 10:45 a.m. Telecom New Zealand Ltd filed the petition with the Court on July 6, 2006. The Solicitor for the Petitioner can be reached at: Malcolm David Whitlock Whitlock & Co. Level Two, Baycorp Advantage House 15 Hopetoun Street, Auckland New Zealand QUEANBEYAN COMMUNITY: Undergoes Wind-Up Proceedings --------------------------------------------------- At an extraordinary general meeting held on September 1, 2006, the members of Queanbeyan Community Training Centre Inc., agreed to voluntarily wind up the company's operations. Subsequently, Daniel I. Cvitanovic was appointed as liquidator at the creditors' meeting held that same day. The Liquidator can be reached at: Daniel I. Cvitanovic Daniel I. Cvitanovic Chartered Accountant Shop 5 Old Potato Shed 74-76 Hoddle Street Robertson, New South Wales 2577 Australia RICHO'S GLASS: To Declare Final Priority Dividend on Oct. 17 ------------------------------------------------------------ Richo's Glass Pty Ltd will declare the final priority dividend to creditors on October 17, 2006, to the exclusion of those who cannot prove their claims by October 3, 2006. The receiver and manager can be reached at: N. C. Malanos Star Dean-Willcocks Level 1, 32 Martin Place Sydney, New South Wales 2000 Australia SABC PROJECT: Appoints Hugh Martin as Official Liquidator --------------------------------------------------------- Members of SABC Project Management Pty Ltd convened on September 1, 2006, and appointed Hugh Martin as liquidator. The Liquidator can be reached at: Hugh Martin Bernardi Martin Level 1, 195 Victoria Square Adelaide Australia SAVILLE INVESTMENTS: Appoints PricewaterhouseCoopers as Receiver ---------------------------------------------------------------- On September 21, 2005, Malcolm Hollis and John Fisk of PricewaterhouseCoopers were appointed as receivers of Saville Investments Limited and Savvy Enterprises Limited. These companies operate a number of hotels and bars in the South Island. Saville Investments Limited traded the Best Western Saville International Hotel -- formerly known as Bentley's Hotel -- at 137 St. Andrews Street, Dunedin. Savvy Enterprises Limited traded the Outback Inn in 101 Great King Street, Dunedin; the Terminus Hotel -- also known as the Creek Hotel -- in 161 King Street, Timaru; and the Outback Sports Bar in 291 Lincoln Road, Christchurch. All businesses will remain open while the receivers assess the financial position and viability of each business. The receivers are currently working with staff and key suppliers to ensure that business operations are not disrupted in the short term. The receivers advise that parties interested in purchasing all or any of these businesses, or creditors who hold securities over company assets, should contact: Rhys Cain PricewaterhouseCoopers Christchurch STOCKFORD CENTRAL: To Declare Third Dividend on October 13 ---------------------------------------------------------- On October 13, 2006, Stockford Central Services Pty Ltd will declare the third dividend for its creditors. Creditors who are unable to lodge their claims by October 3, 2006, will be excluded from sharing in the dividend distribution. The Deed Administrator can be reached at: Mark A. Korda KordaMentha Level 24, 333 Collins Street Melbourne, Victoria 3000 Australia STOCKFORD GROUP: Creditors' Proofs of Claim Due on October 3 ------------------------------------------------------------ Stockford Group of Companies will declare the third dividend on October 13, 2006. Creditors are required to formally prove their debts by October 3, 2006, for them to share in the dividend distribution. The Deed Administrator can be reached at: Mark A. Korda KordaMentha Level 24, 333 Collins Street Melbourne, Victoria 3000 Australia The Troubled Company Reporter - Asia Pacific previously reported that on February 23, 2003, Stockford Limited and 82 of Stockford Limited's subsidiary companies (the Stockford Group) were placed into voluntary administration. Accordingly, Mark Korda and Mark Mentha of KordaMentha were appointed as administrators of all Stockford Group companies. On May 20, 2003, creditors of the Stockford Group resolved that the Group should execute a Deed of Company Arrangement. Thus, on May 26, 2003, KordaMentha executed a Deed of Company Arrangement on behalf of each of the Stockford Group companies. SUPREME CPA: Prepares to Declare Dividend to Creditors ------------------------------------------------------ Supreme CPA Pty Ltd, which is in liquidation, will declare the first and final dividend on October 15, 2006. Creditors who cannot prove their claims by September 25, 2006, will be excluded from sharing in the distribution the Company will make. The Liquidator can be reached at: G. S. Andrews G. S. Andrews & Assocs 22 Drummond Street Carlton, Victoria 3053 Australia Telephone:(03) 9662 2666 Facsimile:(03) 9662 9544 TASMANIAN MOTELS: Members Opt to Shut Down Operations ----------------------------------------------------- The members of Tasmanian Motels Ltd held a general meeting on September 4, 2006, and decided to shut down the Company's operations. Accordingly, John William Woods was appointed as liquidator. The Liquidator can be reached at: John W. Woods Wilson Woods & Partners Chartered Accountant 30 Davey Street Hobart Tasmania 7000 Australia Telephone:(03) 6223 4343 TRANSAX INT'L: June 30 Balance Sheet Upside-Down by $3.7 Million ---------------------------------------------------------------- Transax International Limited's balance sheet at June 30, 2006 showed a US$3,717,316 total stockholders' deficit from total assets of US$2,196,551 and total liabilities of US$5,913,867. The Company's balance sheet at June 30, 2006 also showed negative working capital with US$1,085,530 in total current assets and US$4,943,668 in total current liabilities. Net loss for the three months ended June 30, 2006, rose to US$1,302,259, from net loss of US$167,041 in the three months ended June 30, 2005. Revenues also increased to US$1,034,844 in the current quarter compared to revenues of US$861,023 in the same period last year. Full-text copies of the Company's financial statements for the quarter ended June 30, 2006 are available for free at: http://researcharchives.com/t/s?1201 Based in Miami, Florida, Transax International Limited (OTCBB: TNSX) -- http://www.transax.com/-- provides health information management systems to hospitals, physicians and health insurance companies. The Company's subsidiaries, TDS Telecommunication Data Systems LTDA provides services in Brazil; Transax Australia Pty Ltd. operates in Australia; and Medlink Technologies Inc. initiates research and development. As reported in the Troubled Company Reporter on July 14, 2006, Moore Stephens, P.C., in New York, raised substantial doubt about Transax International Limited's ability to continue as a going concern after auditing the Company's consolidated financial statements for the year ended December 31, 2005. The auditor pointed to the Company's losses, and working capital and stockholders' deficiencies. TREBBEL PTY: To Declare First and Final Dividend ------------------------------------------------ Trebbel Pty Ltd will declare its first and final dividend to creditors on November 11, 2006. Creditors are required to submit their proofs of debts by October 3, 2006 to be included in the benefit of dividend. According to the Troubled Company Reporter - Asia Pacific, members of the Company decided to close the company's operations on March 30, 2006. The Liquidator can be reached at: Gregory Moloney c/o Ferrier Hodgson (Queensland) Level 7, 145 Eagle Street Brisbane, Queensland 4000 Australia TYMCALL PTY: Shuts Down Business Operations ------------------------------------------- On September 1, 2006, members of Tymcall Pty Ltd resolved to voluntarily wind up the company's operations and appoint Simon Meagher Dorahy as liquidator. The Liquidator can be reached at: Simon Meagher Dorahy Elliott House Pty Ltd 6 Elliott Street North Sydney, New South Wales 2060 Australia VANTAGE INVESTMENTS: Members' Final Meeting Set for October 11 -------------------------------------------------------------- The members of Vantage Investments Pty Ltd, which is in liquidation, will hold a final meeting on October 11, 2006, at 11:00 a.m. During the meeting, members will receive from Liquidator Robyn Beverley McKern, an account of the company's wind-up proceedings and property disposal exercises. The Liquidator can be reached at: Robyn Mckern McGrathNicol+Partners Level 8, IBM Centre 60 City Road, Southbank Victoria 3006 Australia Telephone:(03) 9038 3137 Web site: http://www.mcgrathnicol.com WESTPOINT GROUP: Slater & Gordon Sues Advisers in Class Action -------------------------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on August 22, 2006, 500 people have signed up in a class action being organized by Slater & Gordon and funded by IMF Australia concerning the collapse Westpoint Corp., against financial planners including Professional Investment Services. A follow-up report from The Australian relates that Slater & Gordon is suing Professional Investment Services on behalf of 22 investors who lost an average of AU$100,000 in Westpoint's collapse. The report cites Slater & Gordon director Ken Fowlie as saying that the court action would be seen as a test case for other investors who lost more than AU$300 million. "The fundamental question which we hope this case will answer is the extent of the obligation planners have to their clients to understand the product they are placing (clients) in to," The Australian cites Mr. Fowlie as saying. Slater & Gordon's central allegation was that Professional Investment had failed to appropriately match the needs of investors with the type of schemes they were placed into, The Australian says. Mr. Fowlie asserts "there was misleading conduct by the (PIS) advisers because they at no time appropriately disclosed that Westpoint was a high-risk product, it was more disclosed as low- risk." Professional Investment to Defend Action However, PIS managing director Grahame Evans contends that "[a]ll the products placed on to our product list actually go through an external research process," and notes that the group would "vigorously defend" the action. The Australian cites Mr. Evans, as saying the case is "inappropriate" as a class action. "Every case is quite individual, some are quite complex, and we can't see how a class action actually fits with these circumstances," Mr. Evans says. The paper also cites Mr. Fowlie disclosing that Professional Investment invested AU$19.2 million of client money in Westpoint, which represented only 0.001% of the group's total funds under management. Mr. Fowlie said "most" of the people PIS had placed into Westpoint had made positive returns despite the collapse because PIS recommended diversified investments, The Australian relates. Mr. Fowlie said the group had only received commissions of "2.5 to 3%" for placing clients in Westpoint, the paper relates. The Australian states that financial planners have been criticized in the wake of the Westpoint collapse after it was revealed some were paid commissions as high as 10% for placing investors in the group. About Westpoint Group Headquartered in Perth, Western Australia, the Westpoint Group -- http://westpoint.com.au/-- is engaged in property development and owns or manages retail and commercial properties with a total value of over AU$300 million. The Group's troubles began in 2005 when the Australian Securities and Investments Commission commenced investigations on 160 companies within the Westpoint Group. The ASIC's investigation led to ASIC initiating action in late 2005 in the Federal Court of Australia against a number of mezzanine companies in the Westpoint Group, including winding up proceedings. The ASIC contends that Westpoint projects are suffering from significant shortfall of assets over liabilities so that hundreds of investors are at serious risk of not receiving repayment of their investments. The ASIC also sought wind-up orders after the Westpoint companies failed to comply with its requirement to lodge accounts for certain financial years. These wind-up actions are still continuing. In February 2006, the Federal Court in Perth issued a wind-up order against Westpoint Corporation Pty Ltd. The ASIC had applied to wind up the company on grounds of insolvency. The ASIC believes that Westpoint Corporation is responsible for arranging, managing and coordinating Westpoint Group's property projects as well as holding money for other group companies. The ASIC was concerned that Westpoint Corporation was unable to pay its debts, including its obligations under the guarantees given to the mezzanine companies to make good expected shortfalls in the repayment of amounts owed to investors. The Westpoint Group's collapse is considered by many as the largest of its type in recent years, with small investors being the biggest group affected. Investors are currently joining forces to commence a class action against Westpoint and its advisors. WHITE DECORATORS: Official Assignee to Act as Liquidator -------------------------------------------------------- On September 4, 2006, White Decorators Ltd named its Official Assignee as its liquidator. The Troubled Company Reporter - Asia Pacific reported on August 29, 2006, that the company was facing a liquidation proceeding from a petition filed by the Commissioner of Inland Revenue. The petition was heard on September 7, 2006. The Liquidator can be reached at: Official Assignee Insolvency and Trustee Service Private Bag 4714, Christchurch New Zealand Telephone: 0508 467 658 Web site: www.insolvency.govt.nz WINTERHAUS PTY: Members Opt for Voluntary Wind-Up ------------------------------------------------- On September 7, 2006, members of Winterhaus Pty Ltd resolved to voluntarily wind up the company's operations. Consequently, Ezio Senatore and Stephen Brennan were nominated as joint and several liquidators. The Joint and Several Liquidators can be reached at: Ezio Senatore Stephen Brennan Senatore Brennan Rashid Level 7, 28 University Avenue Canberra ACT 2601 Australia Telephone:(02) 6214 6700 Facsimile:(02) 6214 6799 ================================ C H I N A & H O N G K O N G ================================ A P CONSULTING: Members' Final Meeting Set for October 27 --------------------------------------------------------- A final meeting of the members of A P Consulting Ltd will be held on October 27, 2006, 10:30 a.m., at: 35th Floor, One Pacific Place 88 Queensway Hong Kong During the meeting, Liquidators Lai Kar Yan, Derek and Darach E. Haughey will present accounts of the Company's wind-up proceedings. BOOKHAM INC: Ernst & Young Raises Going Concern Doubt ----------------------------------------------------- Ernst & Young LLP expressed substantial doubt about Bookham, Inc.'s ability to continue as a going concern after auditing the Company's financial statements for the fiscal year ended July 1, 2006. The auditing firm pointed to the Company's recurring operating losses. Bookham posted an US$87.5 million net loss for the fiscal year ended July 1, 2006, compared with a net loss of US$248 million in fiscal 2005. Net revenue for fiscal 2006 was US$231.6 million, compared with US$200.3 million in fiscal 2005. "We achieved 16% revenue growth in fiscal 2006 and significantly improved our overall financial structure with the elimination of our long-term debt," said Dr. Giorgio Anania, president and chief executive officer of Bookham. "On the operations front, we extended our supply agreement with Nortel through calendar 2006 and completed the move of our assembly and test manufacturing to Shenzhen, which is already delivering better performance and substantial cost savings. In addition, we introduced several new products, including wideband tunable laser products, next generation high power 980 pumps, new optical amplifiers and extended temperature XFPs and SFP DWDM transceiver products, all of which, we believe, will be key to our revenue growth in fiscal 2007." Revenue in the fourth quarter of fiscal 2006 was US$55 million, compared with US$53.4 million in the third quarter of fiscal 2006 and US$61 million in the fourth quarter of fiscal 2005. Revenue from customers other than Nortel increased 25% sequentially to US$36.5 million from US$29.3 million last quarter. Revenue from Nortel in the fourth quarter declined as previously forecast to US$18.5 million compared with US$24.1 million in the prior quarter. Net loss in the fourth quarter was US$270 million. Included in fourth quarter GAAP net loss are restructuring charges of approximately US$5.2 million. Fourth quarter net loss compares with a net loss of US$48 million in the third quarter and a net loss of US$39 million in the fourth quarter of fiscal 2005. "We are making good progress on the cost reduction plans we announced in May. Our lasers prototype line with associated engineering support will be transferring to our Shenzhen, China facility in the August to October timeframe, and our chip-on- carrier line will be starting up in Shenzhen in September with the move to be completed before year-end. We are also in the process of transferring a certain number of development, manufacturing support and administrative functions to Shenzhen to continue driving down our overhead cost structure. This will result in significant reductions in Western-world staff, especially in our Paignton, UK site, which will occur between the middle of August and November of this year," said Dr. Anania. "We initially expected these moves would result in quarterly cost savings of between US$5 million and US$6 million per quarter. We now expect cost savings of about US$4 million per quarter in the December quarter with an additional US$1.5 million to US$2.5 million achieved by the March 2007 quarter," added Dr. Anania. A full-text copy of the Company's annual report is available for free at http://researcharchives.com/t/s?11fa Outlook and Guidance "The market outlook for telecom optical components remains strong and as a key player in the telecom optical components space we are experiencing the benefits from this positive momentum," said Dr. Anania. "We are seeing solid demand for our new products and believe this will translate into additional growth for these products over the next several quarters." About Bookham Inc. Bookham, Inc. -- http://www.bookham.com/-- designs, manufactures and markets optical components, modules and subsystems that generate, detect, amplify, combine and separate light signals principally for use in high-performance fiber optics communications networks. The company has manufacturing facilities in the UK, US, Canada, China and Switzerland; and offices in the US, UK, Canada, France and Italy and employs approximately 2000 people worldwide. BOOKHAM INC: Getting US$31M Gross Proceeds in Private Placement --------------------------------------------------------------- Bookham, Inc., disclosed Tuesday that certain institutional investors have exercised their right to purchase 2,898,667 shares of common stock and warrants to purchase up to 724,667 shares of common stock pursuant to a second closing of a private placement contemplated by a securities purchase agreement dated Aug. 31, 2006. In the initial closing on Sept. 1, 2006, investors purchased 8,696,000 newly issued shares of common stock at US$2.70 per share, and warrants to purchase up to 2,174,000 shares of common stock. The warrants have a term of five years and become exercisable after March 1, 2007, at an exercise price of US$4.00 per share. In the second closing, Bookham will receive additional gross proceeds of US$7.9 million resulting in total gross proceeds of US$31.4 million for this private placement. Cowen and Company, LLC, acted as the sole placement agent for this offering. Pursuant to an agreement with the investors, the Company will file a registration statement with the U.S. Securities and Exchange Commission covering the resale of the shares of common stock issued to the investors as well as the shares of common stock issuable upon exercise of the warrants, subject to certain terms and conditions. The securities offered in the private placement were not registered under the Securities Act of 1933, as amended or any state securities laws, and may not be offered or sold in the United States absent registration, or an applicable exemption from registration, under the Act and applicable state securities laws. * * * Bookham, Inc. -- http://www.bookham.com/-- designs, manufactures and markets optical components, modules and subsystems that generate, detect, amplify, combine and separate light signals principally for use in high-performance fiber optics communications networks. The company has manufacturing facilities in the UK, US, Canada, China and Switzerland; and offices in the US, UK, Canada, France and Italy and employs approximately 2000 people worldwide. Troubled Company Reporter - Asia Pacific reports that Ernst & Young LLP expressed substantial doubt about Bookham, Inc.'s ability to continue as a going concern after auditing the company's financial statements for the fiscal year ended July 1, 2006. The auditing firm pointed to the company's recurring operating losses. CARDINAL (INTERNATIONAL): Creditors' Proofs of Claim Due Oct. 16 ---------------------------------------------------------------- Creditors of Cardinal (International) Investment Ltd are required to submit their proofs of claim to Liquidator Lo Chi Kin, Tony by October 16, 2006, for them to share in any distribution the Company will make. According to the Troubled Company Reporter - Asia Pacific, shareholders of the Company resolved to voluntarily wind up the company's operations on September 15, 2006. The Liquidator can be reached at: Lo Chi Kin Tony 21/F, Fee Tat Commercial Centre No. 613 Nathan Road Kowloon, Hong Kong CHAPTEAM INVESTMENTS: Court to Hear Wind-Up Bid on Oct. 18 ---------------------------------------------------------- The High Court of Hong Kong will hear a wind-up petition against Chapteam Investments Ltd on October 18, 2006, at 9:30 a.m. Bank of China (Hong Kong) Ltd filed the petition with the Court on August 17, 2006. The Solicitors for the Petitioner can be reached at: W. I. Cheung & Co. Rooms 2505-10 Wing On House 71 Des Voeux Road Central Hong Kong COMBI-LINE: Schedules Final Meeting on October 16 ------------------------------------------------- Members of Combi-Line Far East Ltd will hold a final meeting on October 16, 2006, 10:00 a.m. at 8th Floor, Gloucester Tower, The Landmark, 11 Pedder Street, Central, Hong Kong. During the meeting, Liquidator Thomas Andrew Corkhill will report on the manner by which the company's wind-up has been conducted and the property of the company disposed of. According to the Troubled Company Reporter - Asia Pacific, members of the Company passed a resolution to voluntarily liquidate the Company's business on June 2, 2006. CHUNG FULL: Wind-Up Petition Hearing Fixed for October 18 --------------------------------------------------------- The High Court of Hong Kong is set to hear a wind-up petition filed against Chung Full International Trading Ltd on Oct. 18, 2006, at 9:30 a.m. Bank of China (Hong Kong) Ltd filed the petition with the Court on August 17, 2006. The Solicitors for the Petitioner can be reached at: W. I. Cheung & Co. Rooms 2505-10 Wing On House 71 Des Voeux Road Central Hong Kong DAIMLERCHRYSLER: Tougher Market Conditions Spur Outlook Changes --------------------------------------------------------------- DaimlerChrysler lowered its operating profit forecast for full- year 2006 to be in the magnitude of EUR5 billion (US$6.4 billion) based on an expected full-year operating loss of approximately EUR1 billion, or US$1.2 billion, for its ChryslerGroup. Chrysler Group had earlier announced an anticipated operating loss of up to EUR0.5 billion, or US$0.6 billion, in the third quarter that is now expected to be at EUR1.2 billion, or US$1.5 billion. The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures - particularly on light trucks - by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. Chrysler Group will take additional production cuts in the third and fourth quarters to reduce dealer inventories and make way for its current product offensive. In the third quarter, the Chrysler Group was unable to follow customer demand with its existing product portfolio, as customers shifted towards smaller vehicles. However, in the second half of the year, the Chrysler Group will introduce a total of eight new vehicles, of which many are in the growing small vehicle segment. Like the Dodge Caliber, which was launched in second quarter 2006, the Jeep Compass, Jeep Patriot and the new Chrysler Sebring are equipped with the fuel-efficient, 2.4 liter, four cylinder World Engine and offer better than 30 miles per gallon highway mileage. Also this year, the Chrysler Group will offer the smallest Dodge SUV in history, the Dodge Nitro as well as an all-new version of the quintessential Jeep Wrangler. After the anticipated loss of EUR1.2 billion, or US$1.5 billion, in the third quarter the Chrysler Group strives to achieve positive results in the fourth quarter. DaimlerChrysler is forecasting that the Chrysler Group will end 2006 as a whole with a loss in the magnitude of approximately EUR1 billion, or US$1.2 billion. Earnings development at the Mercedes Car Group, the Truck Group, Financial Services and Van, Bus, Other segment is fully in line with planning. As a result of this reassessment of the earnings situation at the Chrysler Group, the earnings forecast for the DaimlerChrysler Group must also be adjusted. DaimlerChrysler is now assuming that the operating profit for 2006 will be in the magnitude of EUR5 billion, or US$6.4 billion. This figure includes charges for the implementation of the new management model (EUR 0.5 billion; US$0.6 billion), the focus on the smart for two (EUR 1 billion; US$1.2 billion), the staff reductions at the Mercedes Car Group (EUR0.4 billion; US$0.5 billion), as well as gains on the disposal of the off-highway business (EUR 0.2 billion; US$ 0.2 billion), on the sale of real estate no longer required for operating purposes (EUR 0.1 billion; US$0.1 billion) and the release of provisions for retirement-pension obligations (EUR 0.2 billion; US$0.2 billion). In its half-year report, EADS indicated that the review of the Airbus program could lead to a reduction of earnings. DaimlerChrysler's updated earnings forecast does not yet include these potential effects on its earnings. In order to improve the earnings situation of the Chrysler Group as quickly, comprehensively and sustainably as possible, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well. The positive development of volumes and earnings in Mexico and Canada as well as in other international markets also offer opportunities for further improvements. About DaimlerChrysler Headquartered in Stuttgart, Germany, DaimlerChrysler AG -- http://www.daimlerchrysler.com/-- engages in the development, manufacture, distribution, and sale of various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. DaimlerChrysler has operations in Australia, China, Indonesia, Japan, Korea, Malaysia, and Thailand. FORMAX LTD: Members and Creditors to Hear Wind-Up Report -------------------------------------------------------- Members and creditors of Formax Ltd will hold a meeting on October 16, 2006, at 10:00 a.m. for them to receive Liquidator Kuen's final account showing how the Company was wound up and how its property was disposed of. The Liquidator can be reached at: Yim Ping Kuen Liquidator Unit 3515, 35/F, West Tower Shun Tak Centre, 168-200 Connaught Road Central Hong Kong HARTCOURT COS: Kabani & Company Raises Going Concern Doubt ---------------------------------------------------------- Kabani & Company, Inc., in Los Angeles, California, United States, raised substantial doubt about The Hartcourt Companies, Inc.'s ability to continue as a going concern after auditing their consolidated financial statements for the year ended May 31, 2006. The auditor pointed to the Company's negative cash flow from operations and accumulated deficiencies. The Company reported a comprehensive net loss of US$2,723,608 on US$42,089,683 of net sales for the year ended May 31, 2006. At May 31, 2006, the Company's balance sheet showed US$9,533,233 in total assets, US$5,928,701 in total current liabilities, US$738,977 in minority interests, and US$2,865,555 in total shareholders' equity. A full-text copy of the Company's annual report is available for free at http://ResearchArchives.com/t/s?1220 * * * Headquartered in Shanghai, China, The Hartcourt Companies Inc. was incorporated in Utah. The Company specializes in the Chinese information technology market. In August 2006, the Company decided to enter the post-secondary education market in China. HOME CROWN: Members to Get Liquidator's Wind-Up Report on Oct. 8 ---------------------------------------------------------------- Members of Home Crown Trading Ltd, which is in liquidation, will meet on October 8, 2006, 11:00 a.m., at Unit 503, Dina House, Ruttonjee Centre, 11 Duddell Street, Central, Hong Kong. During the meeting, Liquidators Yu King Tin and Ng Wai Cheong will report on the Company's wind-up and property disposal exercises. INTERNATIONAL XIAMEN: Appoints Joint and Several Liquidators ------------------------------------------------------------ On September 6, 2006, Desmond Chung Seng Chiong and Roderick John Sutton were appointed joint and several liquidators of International Xiamen (H.K.) Ltd. The Joint and Several Liquidators can be reached at: Desmond Chung Seng Chiong Roderick John Sutton Ferrier Hodgson Limited 14/F., Hong Kong Club Building 3A Chater Road, Central Hong Kong GOODLOY FOOD: Wind-Up Petition Hearing Slated for October 18 ------------------------------------------------------------ A wind-up petition against Goodloy Food & Beverages Investment Ltd will be heard before the High Court of Hong Kong on October 18, 2006, at 9:30 a.m. Lau Pak Yan filed the petition with the Court on August 18, 2006. The Solicitor for the Petitioner can be reached at: Joe Poon For Director of Legal Aid 34/F, Hopewell Centre 183 Queen's Road East Wanchai, Hong Kong LERIC INTERNATIONAL: Court to Hear Wind-Up Bid on October 25 ------------------------------------------------------------ The High Court of Hong Kong will hear a wind-up petition against Leric International Ltd on October 25, 2006, at 9:30 a.m. Show Win Industries Ltd filed the petition with the Court on August 21, 2006. The Solicitor for the Petitioner can be reached at: Lee Chan Cheng 16/F, Fung House 19-20 Connaught Road, Central Hong Kong MAYSON ENGINEERING: Court to Hear Wind-Up Bid on October 18 ----------------------------------------------------------- The wind-up petition filed against Mayson Engineering Company Ltd will be heard before the High Court of Hong Kong on October 18, 2006, at 9:30 a.m. Chan Kim Lun filed the petition with the Court on August 18, 2006. The Solicitors for the Petitioner can be reached at: Joe Poon For Director of Legal Aid 34/F, Hopewell Centre 183 Queen's Road East Wanchai, Hong Kong OVERSEAS CROWN: Members Final Meeting Slated on October 18 ---------------------------------------------------------- Members of Overseas Crown Development Ltd will convene for their final meeting at 1902 MassMutual Tower, 38 Gloucester Road, Wanchai, Hong Kong on October 18, 2006, at 10:00 a.m. At the meeting, Liquidator Ngan Lin Chun, Esther will present accounts of the Company's wind-up and property disposal exercises. The Troubled Company Reporter - Asia Pacific previously reported that creditors were required to submit their proofs of claim by August 21, 2006. The Liquidator can be reached at: Ngan Lin Chun, Esther 1902, MassMutual Tower 38 Gloucester Road, Wanchai Hong Kong POINT HARVEST: Appoints Jeffy as Liquidator ------------------------------------------- On September 4, 2006, members of Point Harvest Ltd resolved to wind up the Company's operations and appointed Chu Jeffy as liquidator. The Liquidator can be reached at: Chu Jeffy Flat B, 1/F., Wah Lai Court 19-23 Cedar Street, Kowloon Hong Kong SAMPOERNA HK: Proofs of Debts Due on October 18 ----------------------------------------------- Liquidator Cheung Po Kwan requires creditors of Sampoerna Hong Kong Co. Ltd to submit their proofs of debts on October 18, 2006. Failure to comply with the requirement will exclude a creditor from sharing in any distribution the Company will make. The Troubled Company Reporter - Asia Pacific reported that on September 4, 2006, members of the company appointed Cheung Po Kwan as Sampoerna's liquidator. The Liquidator can be reached at: Cheung Po Kwan 20/F, Euro Trade Centre 21-23 Des Voeux Road Central Hong Kong SINO MEDIA: Members & Creditors to Receive Wind-Up Report --------------------------------------------------------- The members and creditors of Sino Media Group (SMG) Ltd will hold separate meetings on September 26, 2006, at Room 32B1, 32nd Floor, One Pacific Place, 88 Queensway, Hong Kong. During the meetings, Liquidators Lai Kar Yan, Derek and Darach E. Haughey will report on the Company's wind-up and property disposal exercises. SUNCO MANUFACTURING: Final Members Meeting Set on October 17 ------------------------------------------------------------ The final meeting of the members of Sunco Manufacturing Ltd will be held on October 17, 2006, 3:00 p.m., at Flat F, 28th Floor, Block 3, Kwai Fong Terrace, No. 15 Kwai Yi Road, Kwai Chung, New Territories, Hong Kong. At the meeting, Liquidator Fung Chi Keung will report on the Company's wind-up and property disposal exercises. The Troubled Company Reporter - Asia Pacific reported that on July 6, 2006, members of the company appointed Fung Chi Keung to manage the Company's liquidation. The Liquidator can be reached at: Fung Chi Keung Flat F., 28th Floor, Block 3 Kwai Fong Terrace, No 15 Kwai Yi Road, Kwai Chung New Territories, Hong Kong TWIN WORLD HOLDINGS: Creditors' Proofs of Claim Due on Oct. 20 -------------------------------------------------------------- The liquidation of Twin World Holdings Ltd commenced with the appointment of Cheng Faat Ting, Gary as its liquidator on September 4, 2006. Mr. Cheng now requires the company's creditors to submit their proofs of claim by October 20, 2006. Failure to comply with the requirement will exclude a creditor from sharing in any distribution the Company will make. The Liquidator can be reached at: Cheng Faat Ting, Gary 8/F, Richmond Commercial Building 109 Argyle Street, Mongkok Kowloon, Hong Kong TWIN WORLD LTD: Creditors Must Prove Debts by October 20 -------------------------------------------------------- Liquidator Cheng Faat Ting Gary requires the creditors of Twin World Ltd to submit their proofs of debt by October 20, 2006, or be excluded from sharing in any distribution the company will make. Members of the company resolved on September 4, 2006, to voluntarily wind up its operations. The Liquidator can be reached at: Cheng Faat Ting Gary 8/F, Richmond Commercial Building 109 Argyle Street, Mongkok Kowloon, Hong Kong WINFIELD LEGEND: Creditors Proofs of Claim Due on October 16 ------------------------------------------------------------ Liquidator Tse Wai Hing requires the creditors of Winfield Legend Ltd to submit their proofs of claim by October 16, 2006. Failure to comply with the requirement will exclude a creditor from sharing in any distribution the Company will make. According to the Troubled Company Reporter - Asia Pacific, members of the Company agreed to voluntarily wind up the company's operations September 13, 2006. The Liquidator can be reached at: Tse Wai Hing 1403-4, 14/F, Nan Fung Tower 173 Des Voeux Road, Central Hong Kong XINXING (HONG KONG): Faces Wind-Up Proceedings ---------------------------------------------- A petition to wind up Xinxing (Hong Kong) Ltd will be heard before the High Court of Hong Kong on October 18, 2006, at 9:30 a.m. The Bank of China (Hong Kong) Ltd filed the petition with the Court on August 18, 2006. The Solicitors for the Petitioner can be reached at: Tsang, Chan & Wong 16/F, Wing On House No. 71 Des Voeux Road Central Hong Kong YORK ELECTRONIC: To Declare First and Final Dividend on Oct. 14 --------------------------------------------------------------- York Electronic Works Ltd will declare its first and final dividend on October 14, 2006. Creditors who were unable to prove their claims will be excluded from sharing in any distribution the Company will make. The Troubled Company Reporter - Asia Pacific reported that creditors were required to submit their proofs of debt by July 17, 2006. The Liquidator can be reached at: Andrew George Hung Yau Sun Yu, Sonia Room 1603, 16/F., Grand Centre 8 Humphreys Avenue, Tsimshatsui Hong Kong ========= I N D I A ========= BAUSCH & LOMB: Cuts 400 Temporary Manufacturing Jobs ---------------------------------------------------- Bausch & Lomb Inc. has said that it will cut about 400 contact lens manufacturing jobs, with most of the cuts coming from plants in Europe and the United States, Reuters reports. The eye-care company said that most of the jobs were temporary positions. The company employs about 13,700 people worldwide. According to Reuters, the adjustments, which were made as the company shifts to newer contact lens designs, affect plants in Waterford, Ireland; Livingston, Scotland; and Rochester, New York. Bausch said it might rehire some of the temporary employees next year as it adopts more automated, advanced manufacturing technologies in its contact lens lines. The company said it had added to its temporary work force to ramp up production of its PureVision silicone hydrogel contact lens. Reuters relates that Bausch has been plagued with problems ranging from accounting irregularities at foreign subsidiaries to failure to file its financial results on time. The company also slashed its 2006 financial outlook last month after being hit with a massive worldwide recall of a popular contact lens solution. Reuters adds that in August 2006, Bausch had said that it expects 2006 earnings of US$70 million to US$80 million before taxes, on net sales of US$2.33 billion to US$2.4 billion. Product Recall Worldwide The Class Action reporter stated on May 18, 2006, that Bausch & Lomb has decided to permanently remove the ReNu with MoistureLoc product worldwide after a meeting with the United States Food & Drug Administration. The CAR report explained that on May 11, 2006, a team from Bausch & Lomb met with FDA officials to share information resulting from the company's internal investigation into cases of Fusarium keratitis associated with ReNu with MoistureLoc. Bausch & Lomb has proposed that unique characteristics of the formulation of the ReNu with MoistureLoc product in certain unusual circumstances can increase susceptibility to the Fusarium infection. The FDA will continue to review cultures and epidemiological data and if there is new information that adds to or changes the company's current understanding, the company will act on it in a timely and appropriate manner. As part of the joint Center for Disease Control & Prevention and the FDA investigation, field officers have been inspecting the Bausch & Lomb plant and facilities in Greenville, South Carolina, since Mar. 22, 2006. While the plant inspection is being finalized, there is still some additional testing to be completed. The agency plans to issue observations from the inspections imminently. ReNu with MoistureLoc contact lens solution, manufactured in the Greenville, plant, was voluntarily withdrawn from the market in the U.S. on Apr. 13, 2006. To date, a majority of the confirmed Fusarium cases have been associated with the ReNu with MoistureLoc ReNu with MoistureLoc had annual sales of US$100 million. Analysts have estimated that the company may face US$500 million to US$1 billion in potential liability from the infection. About Bausch & Lomb Based in Rochester, New York, Bausch & Lomb Inc. -- http://www.bausch.com/-- is engaged in the development, manufacture and marketing of eye health products. Its core businesses include soft and rigid gas permeable contact lenses and lens care products, and ophthalmic surgical and pharmaceutical products. The company is organized into three geographic segments: the Americas; Europe, Middle East and Africa, and Asia (including operations in India, Australia, China, Hong Kong, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand. Its additional operating segments, which are managed on a global basis, are the Research, Development and Engineering organization and the Global Supply Chain Organization. In each geographic segment, Bausch & Lomb markets products in five product categories: contact lenses, lens care products, ophthalmic pharmaceuticals, cataract and vitreoretinal surgery, and refractive surgery. CANARA BANK: Asserts INR11.75-Crore Claim from Actress' Family -------------------------------------------------------------- Canara Bank is demanding from actress Amisha Patel and her family payment of MYR11.75 crore, which they obtained from the bank in 2001 to finance their business, The Times of India reveals. According to the report, Canara Bank's lawyer, Nishit Dhruv, issued on September 9, 2006, a claims payment notice to the Patel family and their Nashik-based firm, Jai Electronics. The Patel family were requested to settle the amount within seven days from Sept. 9, according to The Times. Canara Bank warned that it will take legal action against the family and the firm if the amount is not fully paid by the due date. Amisha's mother, Asha Patel, however, said that she was not aware of this legal notice. "There are attempts to malign our family and some vested interests are behind this," she told The Times. About Canara Bank Headquartered in Bangalore, India, Canara Bank -- http://www.canbankindia.com/-- provides services to a diverse clientele group with a range of subsidiaries and sponsored institutions. The bank services include networked automated teller machines, anywhere banking, telebanking, remote access terminals Internet, and mobile banking and debit card. The bank's Merchant Banking Division handles assignments as arrangers/lead manager/co-manager/manager to the offer/advisor/share valuator. Bancassurance arm of the Bank has tie up arrangements in both life and non-life insurance segments. Corporate Cash Management Services network of the Bank provides services related to local and upcountry cheque collection, bulk cheques collection and zero balance account facility. Executor, Trustee and Taxation Services of the bank provides services, such as debenture trusteeship, will and executorship, trusteeship, personal tax assistance and power of attorney services. Its Agricultural Consultancy Services handled 60 projects during the fiscal year ended March 31, 2006. Fitch Ratings gave Canara Bank an individual rating of D on June 1, 2005. KOTAK MAHINDRA BANK: Posts 125% Higher Profit for June Quarter -------------------------------------------------------------- For the quarter ended June 30, 2006, Kotak Mahindra Bank Ltd posted a consolidated profit after tax of INR104.43 crore, up 125% as compared with the INR46.47-crore profit after tax for the quarter ended June 30, 2005, the bank announced in a press release. Consolidated total income for the first quarter of fiscal year 2006-07 was up 70% to INR776.58 crore as compared with INR455.51 crore in first quarter of fiscal year 2005-06. During current first quarter, consolidated fee income (including life insurance premium) increased 87% to INR367.85 crore from INR196.68 crore in first quarter of the previous fiscal year. Significant contributors to the growth in fee income were securities broking income, fees from investment banking, fees on distribution of financial products and premium income from life insurance business. Consolidated advances were up 38% to INR10,652.65 crore as on June 30, 2006 (INR7,204.27 crore as on June 30, 2005), with retail loans comprising 86% of the portfolio. Consolidated net NPAs as on June 30, 2006, were 0.26% of consolidated net advances (0.33% as on June 30, 2005). Consolidated net interest margins for first quarter of fiscal year 2006-07 were 5.3%, compared with the 5.1% in the first quarter of fiscal year 2005-06. Consolidated book value per share as on June 30, 2006, was INR86.71, compared with INR49.10 as on June 30, 2005. In April 2006, the bank raised INR450 crore (approximately US$ 100 million) through an issue of 15,000,000 Global Depository Shares. Each GDS represents one underlying equity share of INR10 each. Unaudited Bank Stand-Alone Results The PAT of Kotak Mahindra Bank on a stand-alone basis for the first quarter of fiscal year 2006-07 grew by 21% to INR23.91 crore as compared with INR19.68 crore in the first quarter of fiscal year 2005-06. The above PAT is after considering additional provision of INR2.96 crore on standard assets and a provision of INR5.06 crore on account of liability for employee benefits in accordance with AS 15. Net interest income of the Bank for the first quarter of fiscal year 2006-07 was INR111.41 crore, up 61% from INR69.30 crore in the first quarter of fiscal year 2005-06. Other income of the Bank for the first quarter of fiscal year 2006-07 increased by 78% year-on-year to INR64.29 crore. The bank had 65 full-fledged branches across 43 towns and cities in India as on June 30, 2006. The bank proposes to have around 110 branches by March 2007 across 65 towns and cities. As of June 30, 2006, Kotak Mahindra's deposits were INR7,648.93 crore up 57% as compared to INR4,881.86 crore as on June 30, 2005. The bank had around 200,000 deposit accounts as of June 30, 2006 (86,300 deposit accounts as of June 30, 2005). Advances of the bank grew by 67% YoY to INR7,251.53 crore as of June 30, 2006. Capital adequacy ratio of the Bank as of June 30, 2006, was 14.66% (12.52% as of June 30, 2005). Business Highlights * Kotak Mahindra Bank emerged winner in 33 categories in the Asiamoney Private Banking Poll 2006; including the Best Private Bank award in Southern Asia. * Kotak Investment Bank was awarded "Best Investment Bank In India" for 2006 by FinanceAsia. * Kotak Securities clocked average daily volumes of over INR4,040 crore during first quarter of fiscal year 2007 (INR1,460 crore in first quarter of fiscal year 2006). * Total assets managed/ advised by the group as of June 30, 2006, were INR18,230 crore (INR10,530 crore as of June 30, 2005). * Kotak Life Insurance total premium income was INR123.66 crore in first quarter of fiscal year 2007 (INR59.2 crore in first quarter of fiscal year 2006). * The group employee strength was around 7,800 as of June 30, 2006 (around 4,800 employees as of June 30, 2005). * On May 31, 2006, Kotak Mahindra Group completed the buy-out of 25% stake held by Goldman Sachs Mauritius LLC in Kotak Mahindra Capital Company Limited and Kotak Securities Limited for an aggregate consideration of INR333 crore. The transaction has resulted in an increase in consolidated net worth by INR28.15 crore. Proposed Internal Restructuring The board of directors of the bank have granted an "in- principle" approval for the restructuring of its subsidiaries of the bank, subject to necessary approvals: * De-merger of the Trading and Principal (including Primary Dealership) division of KMCC into the Bank. * De-merger of the Trading and Clearing operations and strategic investments division of Kotak Mahindra Securities Limited into KMCC. Post the restructuring, KMSL shall carry on fund management business for alternate asset classes. * Making the five indirect subsidiaries as direct subsidiaries of the bank. As a result of the abovementioned restructuring, it is envisaged that net worth of around INR175 crore will get consolidated into the bank. About Kotak Mahindra Headquartered in Mumbai, India, Kotak Mahindra Bank Limited -- http://www.kotak.com/-- is a commercial bank. The Commercial Banking segment includes money market, forex market, derivatives and investments; wholesale borrowings and lendings and services; retail borrowings covering savings and current accounts and banking branch network and services, and commercial vehicle finance, personal loans, home loans, agriculture finance and other loans/services. Corporate Centre segment includes strategic investment and activities. Car Finance segment offers car financing. Broking segment includes brokerage related to secondary market transactions, services rendered in connection with primary market subscription mobilization. Investment Banking segment includes advisory and transactional services providing financial advisory services. Trading/Principal Investments segment includes dealing in debt, equity, money market and loans/deposits. Insurance segment offers life insurance. Others segment includes forex broking, asset management services and others. Fitch Ratings assigned a '5' Support rating to Kotak Mahindra Bank. KOTAK MAHINDRA BANK: To Double Private Equity Fund -------------------------------------------------- Kotak Mahindra Bank Limited is looking to almost double the size of its private equity funds -- the India Growth Fund and the Kotak Realty Fund -- by the end of the year, DNA Money reports. Together worth US$325 million at present, the fund house is set to touch US$700 million. Almost half the money raised will go towards tapping investment opportunities in the real estate sector, with individual deal sizes ranging between US$5 million and US$10 million, Nitin Deshmukh, head of private equity at Kotak Mahindra Bank, said. The US$225-million IGF was launched in late 2004 in partnership with SEAF Management LLC, USA. It was aimed to invest primarily in dynamic and fast-growing sectors. Kotak Realty Fund, which has got capital commitments worth US$100 million and is still in the market, was launched in May 2005 to seek equity investments in development projects, enterprise level investments in real estate operating companies and real estate intensive businesses. Competition for real estate investments is set to get aggressive with ICICI Ventures' US$300 million property fund, the INR1,464- crore HDFC Property Fund, and the INR500-crore Anand Rathi Realty Fund. Kotak's IGF has concluded seven transactions so far with almost 70% of its initial corpus yet to be invested. The realty fund has already closed three deals in the range of US$10 million each, Mr. Deshmukh told DNA Money. "We are seeing excellent deal flows in the real estate sector and our focus will be on it," said Mr. Deshmukh. However, the strategy is to invest in projects that are mostly in non-metro centers and away from mainline activity with lower entry points, unlike in cities like Hyderabad where property prices have skyrocketed over the past few months, Mr. Deshmukh explained. About Kotak Mahindra Headquartered in Mumbai, India, Kotak Mahindra Bank Limited -- http://www.kotak.com/-- is a commercial bank. The Commercial Banking segment includes money market, forex market, derivatives and investments; wholesale borrowings and lendings and services; retail borrowings covering savings and current accounts and banking branch network and services, and commercial vehicle finance, personal loans, home loans, agriculture finance and other loans/services. Corporate Centre segment includes strategic investment and activities. Car Finance segment offers car financing. Broking segment includes brokerage related to secondary market transactions, services rendered in connection with primary market subscription mobilization. Investment Banking segment includes advisory and transactional services providing financial advisory services. Trading/Principal Investments segment includes dealing in debt, equity, money market and loans/deposits. Insurance segment offers life insurance. Others segment includes forex broking, asset management services and others. Fitch Ratings assigned a '5' Support rating to Kotak Mahindra Bank. KOTAK MAHINDRA BANK: Allots Equity Shares Under ESOP ---------------------------------------------------- Kotak Mahindra Bank Ltd has informed the Bombay Stock Exchange in a regulatory filing that the ESOP Allotment Committee of the bank, at a meeting on September 14, 2006, has allotted 20,212 equity shares of INR10 each, pursuant to exercise of Employees Stock Options granted under the Kotak Mahindra Equity Options Plan 2002-03. The bank had earlier allotted 50,000 equity shares on Sept. 1, 2006, and another 30,657 equity shares on Aug. 31, 2006. All previously allotted equity shares goes for INR10 each. About Kotak Mahindra Headquartered in Mumbai, India, Kotak Mahindra Bank Limited -- http://www.kotak.com/-- is a commercial bank. The Commercial Banking segment includes money market, forex market, derivatives and investments; wholesale borrowings and lendings and services; retail borrowings covering savings and current accounts and banking branch network and services, and commercial vehicle finance, personal loans, home loans, agriculture finance and other loans/services. Corporate Centre segment includes strategic investment and activities. Car Finance segment offers car financing. Broking segment includes brokerage related to secondary market transactions, services rendered in connection with primary market subscription mobilization. Investment Banking segment includes advisory and transactional services providing financial advisory services. Trading/Principal Investments segment includes dealing in debt, equity, money market and loans/deposits. Insurance segment offers life insurance. Others segment includes forex broking, asset management services and others. Fitch Ratings assigned a '5' Support rating to Kotak Mahindra Bank. NTPC LTD: Aims 75,000 MW Production Capacity by 2017 ---------------------------------------------------- NTPC Ltd has revised upwards its capacity addition programme for the 12th Plan period to become a 75,000-megawatt company from the present 26,194 mw, the Financial Express reports. The company, last month scaled up its capacity addition target for the 11th Plan period of 2007-12 to 21,941 mw from 17,333 mw. According to NTPC's projections, its installed capacity will be more than 75,000 mw by 2017 instead of 66,000 mw fixed earlier. NTPC informed the Bombay Stock Exchange that it has started work on 23 power plants, with a total capacity of 21,941 mw. Of these, 12 are coal-fired projects with a total capacity of 18,940 mw. Besides, it is working on three gas-based projects with a capacity of 4,550 mw, three hydro projects with a capacity of 1,920 mw and five joint ventures with a capacity of 2,791 mw. NTPC earlier reworked its plan to commission nuclear power projects with the total capacity of 2,000 mw by 2013-14, from the originally planned in 2017. The company has already sought approval for its foray into nuclear power. NTPC has already tied up with Bharat Heavy Electricals Ltd to bid for a 4,000 mw ultra mega power project. About NTPC Ltd. Headquartered in New Delhi, India, NTPC Limited -- http://www.ntpc.co.in/-- formerly known as National Thermal Power Corporation Limited, is engaged in generation and sale of bulk power. It operates in two business segments: Generation and Other business. The company is also engaged in providing consultancy, project management and supervision, oil and gas exploration and coal mining. NTPC Limited operates coal stations and Gas stations. On February 2, 2005, Standard and Poor's Ratings Service gave NTPC Ltd's long-term foreign issuer credit a BB+ rating. NXP BV: Moody's Assigns P(Ba2) Ratings to EUR3-Bln Senior Notes --------------------------------------------------------------- Moody's Investors Service assigned a Corporate Family Rating of Ba3 to NXP B.V., the semiconductor operations spun-off by Royal Philips. At the same time, Moody's has also assigned a provisional P(Ba2) rating to the prospective EUR3 billion senior secured notes as well as a provisional P(B2) rating to the prospective EUR1.5 billion senior unsecured notes issued by NXP B.V. and NXP Funding LLC under joint and several liability. The debt is being issued in connection with the acquisition of NXP by an investor consortium including KKR, Silver Lake, Bain Capital, Apax Partners and Alpinvest. Royal Philips is expected to retain a 19.9% share in the company, but the ratings do not assume any implicit or explicit credit support from Philips. The rating outlook is stable. The Ba3 corporate family rating reflects: -- the company's broad portfolio of application-specific integrated circuits (ASICs) with strong, diversified customer relationships in the mobile phone, consumer electronics and automotive industries; -- an expectation of further material improvement in NXP's operating metrics in the course of comprehensive restructuring efforts initiated in 2005; -- the anticipation of solid liquidity resulting from about EUR700 million cash retained initially from the refinancing, a EUR500 million revolving credit facility, and a very long-dated maturity profile for its debt; and -- the expectation that the targeted level of operating cost flexibility and profitability will be substantially achieved to make the company more resilient to semiconductor industry volatility and allow for strong free cash flows. The ratings are constrained primarily by the significant increase in leverage following the recapitalization: NXP will be one of the more highly leveraged semiconductor companies, with about EUR5.0 billion gross debt compared to EUR4.3 billion unrestricted, tangible assets, which could limit the company's financial flexibility in anticipation of the next cyclical downturn. Compared to the financing strategies of other semiconductor companies, NXP's adjusted leverage - as measured by a pro-forma net debt/EBITDA at 4.0-times for FYE 2005 - is high. The risk of elevated leverage levels is further exacerbated by: -- the execution risk relating to management's business program; -- uncertainty regarding management's assumption of strong, sustained revenue growth, which drives the targeted profitability improvements of the fixed cost intensive operations; -- a history of revenue volatility and operating losses in the years 2001 -2003; -- and an only modest 2.6% operating margin in 2005 rising to 5.2% in the last twelve months, so that evidence for the upturn in operating flexibility and performance is only gradually emerging. Moody's notes that management targets an asset-light semiconductor company, focusing on research, development, design and marketing of semiconductors while outsourcing the manufacturing of additional chip volumes to foundries in lower- cost countries primarily in Asia. At the same time, it targets a significant reduction of the break-even point for the own operations, industry leading profit margins and strong cash flows benefiting from reduced capital expenditure requirements into the company's own asset base. The ratings also take into consideration the challenges related to the realization of such a strategy, while at the same time having to develop a corporate infrastructure reflective of a globally operating, EUR5 billion sales company. The 1-notch uplift for the senior secured notes at (P)Ba2 reflects a sufficient cushion over debt ranking junior to the notes as well as the benefit of the security giving priority claim on essentially all assets-but-cash of the NXP group and any disposal proceeds related to operating subsidiaries to the secured debt holders, albeit ranking junior to a EUR500 million unrated syndicated revolving credit facility. The 2-notch difference of the senior unsecured notes rated (P)B2 compared to the Ba3 CFR primarily reflects the substantial amount of debt ranking effectively ahead of senior unsecured claims. The outlook for all ratings is stable, based on the expectation that the financial profile will only begin to show significant improvements in line with the company's business plan in fiscal year 2008. Downward pressure could arise if, for instance, the company were to lose major customers or if the semiconductor market were to significantly contract with NXP revenues declining by more than 5% p.a., or if the company were to fail reaching a double-digit- EBITA-margin and a material free cash flow in 2007. The assigned ratings assume that there will be no material variations to the draft legal documentation reviewed by Moody's and that these agreements are legally valid, binding and enforceable. The provisional ratings will need to be affirmed once final documentation is in place. Headquartered in Eindhoven, Netherlands, NXP B.V. -- http://www.nxp.com/-- is one of the largest semiconductor companies worldwide, focusing on the designs and manufacture of application-specific integrated circuits for the home electronics, mobile communications, automotive and identification technology application markets. Next to that, NXP is focusing via its multimarket product business on general purpose and application specific standard semiconductor products. Revenues were EUR4.8 billion The company has sales offices in these Asia Pacific countries: India, Australia, China, Hong Kong, Indonesia, Japan, Korea, Malaysia, New Zealand, Pakistan, Philippines, Singapore, Taiwan, and Thailand. NXP BV: Langlois Named Senior VP of Global Sales ------------------------------------------------ NXP Semiconductors (formerly Philips Semiconductors) has named Pascal Langlois Senior Vice President of Global Sales, the company announced in a press release. Mr. Langlois will lead NXP's worldwide sales effort across all markets and business units and report directly to CEO Frans van Houten. "Pascal is a world-class executive who brings great semiconductor industry experience and a proven track record to this important role at NXP," said Mr. van Houten. Mr. Langlois previously served as Senior Vice President Channel Management and Sales for Multimarket Semiconductors at NXP. Under his leadership, Philips Semiconductors significantly improved its leadership position in distribution and the Electronics Manufacturing Services (EMS) channel by creating one of the largest and strongest partner networks in the industry. Prior to his role as Senior Vice President Channel Management and Sales for Multimarket Semiconductors, Mr. Langlois served as Vice President and General Manager of Sales and Marketing for the company's Automotive business unit, achieving significant business growth globally. It was also during his tenure that Philips Semiconductors played a primary role in the creation of the FlexRay Consortium, an alliance of automotive, semiconductor and electronic system manufacturers. Mr. Langlois started his career with Arrow-Jermyn and National Semiconductors 22 years ago, also undertaking the role of Vice President and General Manager Europe and Asia at VLSI Technology before joining Philips Semiconductors. Mr. Langlois replaces Maria Marced who has left NXP Semiconductors for personal reasons. Headquartered in Eindhoven, Netherlands, NXP B.V. -- http://www.nxp.com/-- is one of the largest semiconductor companies worldwide, focusing on the designs and manufacture of application-specific integrated circuits for the home electronics, mobile communications, automotive and identification technology application markets. Next to that, NXP is focusing via its multimarket product business on general purpose and application specific standard semiconductor products. Revenues were EUR4.8 billion The company has sales offices in these Asia Pacific countries: India, Australia, China, Hong Kong, Indonesia, Japan, Korea, Malaysia, New Zealand, Pakistan, Philippines, Singapore, Taiwan, and Thailand. NXP, the semiconductor operations spun-off by Royal Philips, carries Moody's Investors Service's 'Ba3' Corporate Family Rating. At the same time, Moody's has also assigned a provisional P(Ba2) rating to the prospective EUR3-billion senior secured notes as well as a provisional P(B2) rating to the prospective EUR1.5 billion senior unsecured notes issued by NXP B.V. and NXP Funding LLC under joint and several liability. PRIDE INTERNATIONAL: S&P Affirms BB Corporate Credit Rating ----------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB' corporate credit rating on contract driller Pride International Inc. and removed the rating from CreditWatch with negative implications. The outlook is stable. As of June 30, 2006, Houston, Texas-based Pride had US$1.01 billion in adjusted debt. The rating action follows Pride's successfully filing of its financial statements. The company delayed its filing after announcing earlier in the year that it would conduct an internal investigation related to improper payments to foreign government officials in its Latin American division. "Although we view the ongoing investigation with restrained concern, we believe management is taking appropriate steps to address this issue and remediate internal control deficiencies," said Standard & Poor's credit analyst Jeffrey Morrison. Operationally, Pride continues to generate stronger cash flow and has meaningfully reduced debt leverage over the past two years. As a result, the company's credit metrics have improved to more favorable levels for the ratings. The stable outlook on Pride reflects our expectation that recent financial profile improvement will allow the company to perform to a level consistent with expectations for the current ratings through the cycle. Headquartered in Houston, Texas, Pride International, Inc. -- http://www.prideinternational.com/-- is a drilling contractor. The company provides onshore and offshore drilling and related services in more than 25 countries, operating a diverse fleet of 278 rigs, including two ultra-deepwater drillships, 12 semisubmersible rigs, 28 jackup rigs, 18 tender-assisted, barge and platform rigs, and 218 land rigs. The company has worldwide operations, including India and Malaysia. PRIDE INTERNATIONAL: Appoints Rodney Eads as EVP & COO ------------------------------------------------------ Pride International, Inc., has named Rodney W. Eads to the position of Executive Vice President and Chief Operating Officer, where he will assume responsibility for the Company's worldwide offshore operations and Eastern Hemisphere land assets. Mr. Eads will join the Company immediately from Diamond Offshore Drilling, Inc. where, since 1997, he has been Senior Vice President, Worldwide Operations and responsible for Diamond's offshore drilling fleet. Mr. Eads previously was employed by Exxon Corporation from 1980 to 1997 where he held several executive and operations management positions, primarily in international assignments, including Drilling Manager, Exxon Company International. Prior to that, Mr. Eads was a Senior Drilling Engineer with Arabian American Oil Company and a Petroleum Engineer with Cities Service Company. He holds a Bachelor of Science degree in Chemical Engineering from the West Virginia Institute of Technology and a Master of Business Administration degree from Rice University. Louis Raspino, President and Chief Executive Officer, commented, "We are happy to welcome Rodney to the Company and are excited to benefit from his broad offshore and executive management experience, including an extensive background in international and deepwater operations from both an Operator and Drilling Contractor perspective. Rodney brings to our organization a sharp focus on operational excellence and customer satisfaction, and he will play a major leadership role in the continuing transformation of Pride." Headquartered in Houston, Texas, Pride International, Inc. -- http://www.prideinternational.com/-- is a drilling contractor. The company provides onshore and offshore drilling and related services in more than 25 countries, operating a diverse fleet of 278 rigs, including two ultra-deepwater drillships, 12 semisubmersible rigs, 28 jackup rigs, 18 tender-assisted, barge and platform rigs, and 218 land rigs. The company has worldwide operations, including in India and Malaysia. * * * Standard & Poor's Ratings Services affirmed its 'BB' corporate credit rating on contract driller Pride International Inc. and removed the rating from CreditWatch with negative implications. The outlook is stable. As of June 30, 2006, the Houston, Texas- based Pride had US$1.01 billion in adjusted debt. Fitch Ratings raised Pride International's Issuer Default Rating to 'BB' from 'BB-'. Fitch also raised the ratings on Pride's senior secured revolving credit facility, senior unsecured notes and their convertible senior notes. SILICON GRAPHICS: New York Court Confirms Plan of Reorganization ---------------------------------------------------------------- The Plan of Reorganization of Silicon Graphics Inc. received judicial confirmation, setting the stage for the company's emergence from Chapter 11 in October 2006. At a Sept. 19, 2006 hearing, the Hon. Burton R. Lifland ruled that all the necessary requirements have been met for SGI to implement its Plan of Reorganization. Every voting class of creditors voted overwhelmingly in favor of the plan. "This is a great day for SGI," said Dennis P. McKenna, CEO and Chairman. "We have accomplished so much in just five months, reaching our confirmation on the fast track that we expected. As we emerge, the recapitalization of the company will be complete. We have eliminated the legacy debt, improved our liquidity and stabilized the business. We have also taken out significant costs -- US$150 million on an annualized basis. We have re-engineered the company and have a strong leadership team that will be executing this plan. Also of significance to the growth of the company is that during this time, we retooled and aligned our product portfolio to the strategic direction of the company. I want to thank our customers, vendors and employees for supporting the company through this challenging period." Exit Financing SGI also received commitments for exit financing. The financing facility consists of an US$85 million term loan from Morgan Stanley Senior Funding Inc. and a US$30 million line of credit from General Electric Capital Corp. that will be used to pay off the existing DIP financing, make distributions pursuant to the plan, and provide working capital for the Company's ongoing operations. A full-text copy of the First Amended Plan of Reorganization is available for free at http://ResearchArchives.com/t/s?11f2 About Silicon Graphics Headquartered in Mountain View, California, Silicon Graphics, Inc. (OTC: SGID) -- http://www.sgi.com/-- offers high- performance computing. SGI helps customers solve their computing challenges, whether it's sharing images to aid in brain surgery, finding oil more efficiently, studying global climate, providing technologies for homeland security and defense, enabling the transition from analog to digital broadcasting, or helping enterprises manage large data. Silicon Graphics has operations in India, Australia, China, Japan, New Zealand and sales offices in Hong Kong, Korea, Malaysia, Indonesia, the Philippines, Singapore, Thailand, and Vietnam. The Debtor and 13 of its affiliates filed for Chapter 11 protection on May 8, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10977 through 06-10990). Debtor affiliates filing separate chapter 11 petitions: * Silicon Graphics Federal, Inc. * Cray Research, LLC * Silicon Graphics Real Estate, Inc. * Silicon Graphics World Trade Corporation * Silicon Studio, Inc. * Cray Research America Latina Ltd. * Cray Research Eastern Europe Ltd. * Cray Research India Ltd. * Cray Research International, Inc. * Cray Financial Corporation * Cray Asia/Pacific, Inc. * ParaGraph International, Inc. * WTI-Development, Inc. Gary Holtzer, Esq., and Shai Y. Waisman, Esq., at Weil Gotshal & Manges LLP, represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed total assets of US$369,416,815 and total debts of US$664,268,602. As of July 28, 2006, the company has total assets of US$352,980,000 and total liabilities of US$662,258,000 resulting into a stockholders' deficit of US$309,278,000. SILICON GRAPHICS: Enters Into US$115 Mil. Commitment Letter ----------------------------------------------------------- The Honorable Burton R. Lifland of the U.S. Bankruptcy Court for the Southern District of New York authorized Silicon Graphics, Inc., and its debtor-affiliates to: -- enter into a commitment letter with Morgan Stanley Senior Funding, Inc., and one or more of its affiliates, and General Electric Capital Corporation, and one or more of its affiliates, in connection with a proposed several, not joint, commitment for a senior secured facility of up to US$115,000,000; and -- pay the fees related to the Senior Secured Facility Letter. As reported in the Troubled Company Reporter on Sept. 7, 2006, the Debtors need an exit financing facility to: (a) repay their existing indebtedness under their DIP Financing Facility; (b) fund payments required to be made under the Plan on the effective date; and (c) meet the working capital and other corporate needs of the Reorganized Debtors. Under the Court-approved Plan, the Debtors' exit financing facility will consist of two facilities -- a revolving line of credit and a term loan facility. A full-text copy of the Commitment Letter is available for free at http://researcharchives.com/t/s?112f About Silicon Graphics Headquartered in Mountain View, California, Silicon Graphics, Inc. (OTC: SGID) -- http://www.sgi.com/-- offers high- performance computing. SGI helps customers solve their computing challenges, whether it's sharing images to aid in brain surgery, finding oil more efficiently, studying global climate, providing technologies for homeland security and defense, enabling the transition from analog to digital broadcasting, or helping enterprises manage large data. Silicon Graphics has operations in India, Australia, China, Japan, New Zealand and sales offices in Hong Kong, Korea, Malaysia, Indonesia, the Philippines, Singapore, Thailand, and Vietnam. The Debtor and 13 of its affiliates filed for Chapter 11 protection on May 8, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10977 through 06-10990). Debtor affiliates filing separate chapter 11 petitions: * Silicon Graphics Federal, Inc. * Cray Research, LLC * Silicon Graphics Real Estate, Inc. * Silicon Graphics World Trade Corporation * Silicon Studio, Inc. * Cray Research America Latina Ltd. * Cray Research Eastern Europe Ltd. * Cray Research India Ltd. * Cray Research International, Inc. * Cray Financial Corporation * Cray Asia/Pacific, Inc. * ParaGraph International, Inc. * WTI-Development, Inc. Gary Holtzer, Esq., and Shai Y. Waisman, Esq., at Weil Gotshal & Manges LLP, represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed total assets of US$369,416,815 and total debts of US$664,268,602. As of July 28, 2006, the company has total assets of US$352,980,000 and total liabilities of US$662,258,000 resulting into a stockholders' deficit of US$309,278,000. SILICON GRAPHICS: Court Approves Revised KPMG Hourly Rates ---------------------------------------------------------- The United States Bankruptcy Court for the Southern District of New York allowed Silicon Graphics, Inc., and its debtor- affiliates to supplement and clarify its application to employ KPMG LLP, solely with respect to the rates under which the firm will provide accounting and audit services. As reported in the Troubled Company Reporter on Aug. 24, 2006, the Debtors and KPMG executed a revised engagement letter to accurately reflect the firm's customary hourly rates. The revised rates are: Professional Hourly Rate ------------ ----------- Partners/Directors US$660 to US$780 Directors/Senior Managers/Managers US$495 to US$750 Senior/Staff Accountants US$250 to US$470 Paraprofessionals US$100 to US$195 About Silicon Graphics Headquartered in Mountain View, California, Silicon Graphics, Inc. (OTC: SGID) -- http://www.sgi.com/-- offers high- performance computing. SGI helps customers solve their computing challenges, whether it's sharing images to aid in brain surgery, finding oil more efficiently, studying global climate, providing technologies for homeland security and defense, enabling the transition from analog to digital broadcasting, or helping enterprises manage large data. Silicon Graphics has operations in India, Australia, China, Japan, New Zealand and sales offices in Hong Kong, Korea, Malaysia, Indonesia, the Philippines, Singapore, Thailand, and Vietnam. The Debtor and 13 of its affiliates filed for Chapter 11 protection on May 8, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10977 through 06-10990). Debtor affiliates filing separate chapter 11 petitions: * Silicon Graphics Federal, Inc. * Cray Research, LLC * Silicon Graphics Real Estate, Inc. * Silicon Graphics World Trade Corporation * Silicon Studio, Inc. * Cray Research America Latina Ltd. * Cray Research Eastern Europe Ltd. * Cray Research India Ltd. * Cray Research International, Inc. * Cray Financial Corporation * Cray Asia/Pacific, Inc. * ParaGraph International, Inc. * WTI-Development, Inc. Gary Holtzer, Esq., and Shai Y. Waisman, Esq., at Weil Gotshal & Manges LLP, represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed total assets of US$369,416,815 and total debts of US$664,268,602. As of July 28, 2006, the company has total assets of US$352,980,000 and total liabilities of US$662,258,000 resulting into a stockholders' deficit of US$309,278,000. STATE BANK OF INDIA: Plans to Add 5.5 Lakh New Customers -------------------------------------------------------- Buoyed by a INR578-crore profit earned in Madhya Pradesh and Chhattisgarh in 2005-06, the State Bank of India plans to add 5.5 lakh new customers in the coming year to raise its deposits by INR3,200 crore in the two states, the Hindustan Times reports Deposits in the circle up to end of August 2006 amounted to INR18,756 crore and advances stood at INR12,080 crore, SBI Chief General Manager S Bhattacharya told reporters, adding that the bank would inject INR1,515 crore in commercial advances and INR1,200 crore in retail segment. In the field of agriculture, where its credit has grown to INR2,471 crore, the bank plans to pump INR900 crore, while INR250 crore is sought to be injected by small scale industries and INR230 crore in small business enterprises, Mr. Bhattacharya said. Mr. Bhattacharya added that the bank also intends to credit link more than 11,000 micro-finance units in the entire geography of the circle, for which the work of opening of savings bank accounts of self-help groups had already started at its branches. With the present focus on personal banking, advances to individuals have gone up by more than 381% since 2001 -- from INR846 crore in March 2001 to INR4,069 crore as of August 31, 2006, adding such advances now contribute nearly 5% of the total non-food advances compared to 16.40% in 2001. For the convenience of farmers, SBI has issued 37,782 kisan credit cards during 2006-07, taking the total number of cards issued by it in the circle to 2,00,000, Mr. Bhattacharya said, adding the bank has also issued 1,278 kisan gold cards to farmers in the twin states during the current year. Under the manufacturing, trade and services sectors, the loan portfolio stands at INR3,918 crore as of August 31, 2006, being more than 38% of the overall asset portfolio of the circle, while fresh sanctions to the tune of INR300 crore was made to the sector under regular schemes this year, Mr. Bhattacharya said. On modernization, the CGM said the bank is rapidly moving towards a centralized database with a state-of-the-art core banking solution to enable on-line, real-time transaction. Internet banking for retail customers, using which the customer can view his account, make request for drafts, cheque books and carry out other transactions has been rolled out in 286 branches in the circle, facilitating easier access to bank's services, Mr. Bhattacharya said. Besides, Internet banking facilities are being offered to corporates in 96 branches. About State Bank of India State Bank of India Ltd -- http://www.sbi.co.in/-- is the oldest and largest bank in India. SBI, along with its associate banks, offers a wide range of banking products and services across client markets. In 2005-06, SBI has embarked on implementing a business process re-engineering project to enhance customer service and profitability levels. The bank has branches in Bahrain, Japan, Mauritius and the United States. * * * The Troubled Company Reporter - Asia Pacific reported on April 21, 2006, that Fitch Ratings has affirmed State Bank of India's Long-term Issuer Default rating at BB+, Short-term rating at "B", Individual rating at "C" and Support rating at '3'. The outlook on the ratings is stable. Additionally, Standard and Poor's Rating Service gave State Bank of India a BB+ long-term foreign issuer credit rating on February 2, 2005. Moody's Investors Service placed a Ba2/Not Prime rating on State Bank of India's foreign currency bank deposits, a Ba2/Not Prime rating on its domestic currency bank deposits, and a D Bank Financial Strength Rating in June 2006. SYNDICATE BANK: Gains More Than 1M Customers from New Scheme ------------------------------------------------------------ Syndicate Bank has launched a campaign to reach out to at least 1 million customers in the "underprivileged" sector of the society, Cybernoon News reports. According to the report, the bank introduced a new no-frill account called SyndSamanya to enable underprivileged individuals to reap the benefits of banking by accepting their accounts even with a zero balance. The bank targets 500 new account holders to each one of its 2,100 branches including newly opened branches. Syndicate Bank Chairman & Managing Director C.P. Swarnkar motivated the Regional and Branch Heads of the branches to fan out to the remotest village in their area of operation to bring these persons to banking fold. Cybernoon says that the campaign has been successful and bank has in fact added 1.1 million accounts in just two month's time. Most of these accounts are of persons who were not been able to take the benefit of banking institutions so far. These accounts will help them in availing credit facilities also in times of need. While about 100 branches have added more than 1000 accounts per branch, about 1000 branches have added more than 500 underprivileged customers to their fold, the report says. In addition, the bank has launched a hassle free farmer friendly credit scheme called SyndJaikisan. It is a simplified system of credit delivery to the farmers taking a holistic view of their credit requirements, the report adds. Meanwhile, the Syndicate Bank has begun targeting a large number of private educational institutions n Agra by offering to open ATMs on the institution premises, Vishal Sharma reports, citing a bank official. Executive Director George Joseph confirmed the plan while inaugurating the bank's ATM at Anand Engineering College, located on the Agra-Mathura highway. Talking to Business Standard, K P Singh, senior manager of Syndicate Bank's Agra main branch, said Anand Engineering College was part of the Sharda Group of Institutions, which was a major client of the Syndicate Bank. About Syndicate Bank Syndicate Bank Ltd. -- http://syndicatebank.in-- provides a range of banking services. The bank's services include deposits, loans, recoveries and electronic funds transfer. The bank has also tied up with United India Insurance Company to provide general insurance. As of March 31, 2006, the bank had 2006 branches. The bank has 38 specialized branches, which focus on business segments, such as small and medium enterprises. Fitch Ratings, on June 1, 2005 gave Syndicate Bank a 'D' individual rating. UNITED WESTERN BANK: Depositors Petition High Court --------------------------------------------------- Depositors have filed a petition with the Bombay High Court alleging that the United Western Bank Limited had informed them regarding its amalgamation with state-run Industrial Development Bank of India ltd, IndLaw.Com reports. The report explains that a division bench comprising justices R M S Khandeparkar and V M Kanade were told that even the Reserve Bank of India, which was aware that in the last two years the UWB had made losses running to almost INR100 crore, did not inform the depositors as to why a moratorium was imposed recently on the UWB. A Troubled Company Reporter - Asia Pacific report on Sept. 15, 2006, stated that the Union Government placed United Western under a moratorium based on an application from the Reserve Bank of India, after the bank posted huge losses in the last two years due to inefficient management. The losses led to net worth erosion and a negative capital adequacy ratio. The moratorium will run from September 2, 2006, to December 1, 2006, under which depositors will be allowed to withdraw a maximum of INR10,000 at any of the bank's branches, but not through the use of ATMs. The TCR-AP report adds that in exceptional circumstances including, medical treatment, higher education, marriage expenses or any other emergency, depositors will be allowed to withdraw more than INR10,000. The petitioners contended that they had tried to obtain information from the UWB but were denied the same. They contended that the amalgamation is not required, as more than 70% of the customers were satisfied with the services of the bank. 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, the 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' long term foreign issuer credit a BB+ rating on April 19, 2006. About United Western Bank 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. * Reserve Bank Names Five Potentially Troubled Banks ---------------------------------------------------- The Reserve Bank of India has identified at least five commercial banks that show symptoms of being troubled, The Financial Express reveals. The report says that among the potentially troubled banks are: 1) Sangli Bank; 2) Ratnakar Bank; 3) Lakshmi Vilas Bank; 4) Dhanalakshmi Bank; and 5) Development Credit Bank. According to the Reserve Bank, a quick look at the net worth and financial statements of these banks in the last two years, the capital adequacy ration, and the net performing assets ratio indicates they are borderline cases. The banks, however, have not reached the stage where a moratorium is necessary to protect the interests of shareholders, The Financial Express says. Another political indicator of these banks' weakness is the clamor by Left parties, which are demanding a merger or a takeover by stronger public sector banks, the report says. They believe that the regulator must move fast and facilitate this before these banks fail. Weak banks present the only window of opportunity to foreign banks to expand quickly in India. According to the Reserve Bank, only weak banks specifically identified by it will be available for acquisition by banking entities in the run-up to opening up of the banking sector, The Financial Express adds. * DFID Approves Restructuring of 34 Sick PSUs --------------------------------------------- The British Government's Department of International Development has approved the West Bengal Government's package for restructuring the 34 sick public sector units that will be taken up in the second phase of PSU reforms in the state, Express India reports. According to Express India, the state government prepared the detailed package about six months back and sent it to the Union Government's ministry of economic affairs for their clearance. The DFID approved the package after the ministry gave its clearance. "The DFID's New Delhi office has approved the plans and sent them to their department at London for their approval," Ardhendu Sen, principal secretary, department of public sector enterprises and industrial reconstruction, said. In order to implement its restructuring plans, the government will have to spend INR900 crore, and has asked the DFID for INR700 crore, Express India notes. "We have asked for INR700 crore but the DFID said they would not be able to give us that amount of money. However, the remaining amount will be paid by the state government," Mr. Sen further said. The report says that a team of DFID officials headed by Chris Chalmers had come to Kolkata and had a series of meetings spanning over the last three days to make an assessment of the state government's performance in the first phase of restructuring that included 34 sick PSUs. "The officials reviewed the situation in the four concerns that were retained by the state government-Britannia Engineering, Gluconet Health, Saxby Weston and Durgapur Chemicals. They also took stock of the situation in the three companies for which the state government went in for joint ventures-Angel India, West Bengal Industries and Great Eastern Hotel. And after making an assessment of the situation in the process of restructuring they expressed their happiness," Mr. Sen said. The DFID also made an assessment of the work done by Social Safety Net Programme, the agency hired by the state government to reskill the employees of the sick PSUs, Express India relates. Hyderabad-based Institute of Public Enterprises was roped in to make an assessment of SSNP and IPE made presentation on its observations and recommendations on SSNP to the DFID. ================= I N D O N E S I A ================= BHARAT PETROLEUM: Workers Go on Nationwide Strike ------------------------------------------------- More than 15,000 Bharat Petroleum Corporation Limited workers went on a nationwide strike on September 19 and 20, The Hindu reported last week. According to press reports, the workers were protesting against the management's "rigid stand and refusal" to remove the wide disparity in payment of performance-linked incentive by changing the established practice against them and in favor of senior managers. The strike call, given by various Bharat Petroleum unions, covered all refineries and the marketing network. Chennai Online relates that the 48-hour strike by a section of the BPCL employees in Tamil Nadu did not affect the functioning of the organization. In the city, only a group joined the strike and protection was offered to those who wished to work, Chennai Online says. According to Indlawnews.com, the Madras High Court had restrained the Bharat Petroleum Employees Union and Petroleum Workers Union, Chennai, from stopping employees who were willing to work. Indlawnews notes that Justice M E N Patrudu, who passed the interim order, also directed the Commissioner of Police -- at Bharat Petroleum's request -- to give full protection to the employees who went to work. About Bharat Petroleum Headquartered in Maharashtra, India, Bharat Petroleum Corporation Limited -- http://www.bharatpetroleum.com/-- is engaged in refining and marketing petroleum, liquefied petroleum gas and petrochemical products including middle distillates, light distillate, lubricants, benzene and toluene. During the year 2002, the Group introduced Petro Card and SmartFleet Card and had around 700,000 customers enrolled in 28 cities. There are 4,711 retail outlets and 1,729 LPG distributors that operate in the country. The plants of the Group are located in Mahul and Mallet Road in Mumbai and in Budge. Bharat Petroleum is currently working to reverse its losses resulting from the Government's mandate to sell kerosene, liquefied petroleum gas, petrol and diesel way below market rates. On September 23, 2005, the Company delisted its shares from the Madras Stock Exchange Ltd, Calcutta Stock Exchange Association Ltd and Delhi Stock Exchange Association Ltd. In November 2005, Bharat Petroleum's November 2004 profits dissipated and the Company registered a INR203-crore (US$45.7 million) net loss. By the end of the third quarter ending December 31, 2005, the Company posted a US$231-million net loss. In January 2006, Bharat Petroleum entered into a merger with Koichi Refineries Ltd, which shareholders for both companies accepted. Even with its expansion moves, Bharat Petroleum has decided to put aside a US$1.4-million expansion project due to losses brought about by oil subsidies, as the Company -- and the entire industry -- suffered huge losses and has difficulty implementing expansion activities due to the Government's refusal to allow oil companies to raise fuel prices despite global crude oil price crossing US$70 a barrel. On February 20, 2006, the Petroleum Ministry proposed an increase of INR3 per liter each in petrol and diesel prices and INR20 per cylinder increase in liquefied petroleum gas price to save the oil companies from going bankrupt. EXCELCOMINDO PRATAMA: Selects Ericsson to Build 3G Network ---------------------------------------------------------- Ericsson has been selected by PT Excelcomindo Pratama Tbk to build its 3G/WCDMA network in Indonesia by providing High-Speed Packet Access to enhance the end-user experience, The Edge Daily reports. In a statement on Sept 21, Ericsson said it would also supply Excelcomindo with its Mobile Softswitch Solution for nationwide deployment, as well as business consulting services. Moreover, under its agreement with Excelcomindo, Ericsson will supply radio access products and be responsible for the performance and improvement of the radio network, as well as providing operations and maintenance services. It said the 3G network deployment included Java, Bali and Lombok, with a focus on six major cities. Ericsson will also provide business consulting to support Excelcomindo in its preparation for the launch of its 3G network. The Edge quotes Excelcomindo president director Hasnul Suhaimi as saying: "Our decision to form this mutually beneficial partnership with Ericsson is based on Ericsson's experience in providing cutting-edge telecommunication technology and reliability in delivering its services." About Excelcomindo Headquartered in Jakarta, Indonesia, PT Excelcomindo Pratama Tbk -- http://www.xl.co.id/-- provides wireless telecommunications services, leased lines and corporate services, which include Internet Service Provider (ISP) and Voice over Internet Protocol (VoIP) services. In addition, Excelcomindoprovides voice, data and other value-added cellular telecommunications services. Its product lines include jempol, bebas and xplor. The company also provides services that allow its customers to purchase electronic voucher reloads at all of its centers and outlets, automated teller machines of various major banks and through its call centers. Excelcomindo starter packs and voucher reloads are also sold by independent retailers. Excelcomindo is Indonesia's third-largest cellular operator; as at the first quarter of 2006 the company had 8.2 million subscribers representing total market share of around 15% but with cellular revenue market share of approximately 10%. TM and its parent Khazanah together hold 73.7% in XL. * * * A May 23, 2006 report of the Troubled Company Reporter - Asia Pacific stated that Moody's Investors Service has upgraded the foreign currency senior unsecured bond rating of Excelcomindo Finance Company B.V. to Ba3 from B1. The outlook is stable. At the same time, Moody's has affirmed PT Excelcomindo Pratama's Ba2 local currency corporate family rating. The rating outlook remains stable. A subsequent TCR-AP report says that Fitch Ratings, on June 5, 2006, upgraded PT Excelcomindo Pratama's Long-term foreign currency and local currency Issuer Default Ratings to 'BB-' from 'B+'. The outlook on the ratings is stable. * JCR Upgrades Indonesia's Long-Term Senior Debt Ratings to BB- --------------------------------------------------------------- Japan Credit Rating Agency has upgraded the rating on the foreign currency and local currency long-term senior debts of the issuer from B+ and B+ to BB-/Stable and BB/Stable, respectively. The upgrade reflects Indonesia's improved resilience to external shocks due to steadily declining levels of external and government debts on the backdrop of stabilized macro-economy and improved fiscal structures of government. Although the still high level of external debts and relatively heavy debt service burden renders the country susceptible to fluctuation of the exchange rate induced by private capital flows, levels of the debts are likely to stay on a gradual decreasing path supported by prudent macro-economic management. The stable outlooks on the ratings balance prospect of continued decrease in levels of both external and government debts, against remaining vulnerability associated with still high level of debts and heavy debt service burden. If the government will succeed to improve the mid-to-long term growth prospects by reinvigorating both foreign direct and private domestic investment through various reforms, the ratings could be further upgraded. 1. Amid robust economic growth, relative stability of exchange rate and persistent central government primary surpluses, level of general government debts has been decreasing, and gross debts (including IMF loans) at end-June was 44% of GDP, much lower than 103% at end-2000. Fiscal position of the government, which once deteriorated markedly due in part to heavy interest burden of rupiah denominated bonds issued from 1999 by the government to recapitalize devastated banks, are stabilizing. With steady economic recovery and replacement of a part of variable interest bonds with fixed ones, outstanding of the former bonds relative to GDP decreased to 6% at end-August 2006 from 19% at end-1999, making the fiscal position more resilient to domestic interest hikes. In addition, substantial reduction in fuel subsidies, carried out in 2005 despite its political sensitivity, rendered the fiscal position much less affected by international oil price hikes. 2. While the fiscal deficit remains small, amounting to 0.5% of GDP in 2005 and expected to be within 1.2% in coming years, gross financing needs (i.e. fiscal deficits plus gross debt amortization) will be large with relatively heavy debt redemptions, making its estimated ratio to GDP around 3.5% in 2006 and 2007. As the remaining assets in the Asset Management Company and state assets with near term prospects for privatizations are limited, the government has to increasingly rely on bond financing in coming years. In views of facilitating smooth and stable bond issuance, it is important to develop deep and liquid secondary markets of rupiah denominated government bonds. Some market turbulences have been seen in the past years induced by huge and abrupt redemptions of mutual funds investing in government bonds. JCR thinks it desirable to prevent recurrence of such incidents by putting an appropriate regulatory system in place. On the other hand, JCR acknowledges commendable achievements in domestic debt management, which effectively lengthened maturity profile while containing the portions of variable interest rate bonds. 3. The contingent risk stemming from banking sector is becoming moderate as banks' financial standing is improving amid steady economic growth. Although a substantial increase in non-performing loans at big state-owned commercial banks has been seen, these are isolated incidents at these weakly governed banks with insufficient risk management, and thus not indicate any system-wide deterioration of banking assets, in JCR's view. JCR thinks that the authority has been taking steps in the right direction aiming at expediting clean-up of these banks' balance sheet, by tightening asset classification guideline and introducing measures to facilitate restructurings of loans held by state owned banks. With regard to liabilities associated with sub-national governments, lack of information regarding fiscal and debts positions, and financial performance of entities owned by them make it difficult for the central government to monitor and control the direct and contingent liabilities of consolidated general government. For effective debt management, the government needs to establish data collection systems, with technical assistance from multinational institutions. 4. Although still high, level of external debts has been steadily decreasing in past years. Debts net of liquid assets (i.e. international reserves and external assets of deposit money banks) was US$78.0 billion at end-June, 2006, amounting to 79% of annual export of good and services in 2005, far lower than 207% at end-1998. Nevertheless, Indonesia remains vulnerable to fluctuation of the exchange rate associated with capital flows because of high level of external debts and relatively heavy debt service burden. As debt services relief provided by Paris Club creditors following tragic tsunami in December 2004 expires, external debt service burden increases from 2006. Gross external debt service (including interest) of public and private sector in 2006 and 2007 will be more than US$20 billion, exceeding 20% of goods and services export in 2005, although it is expected to decline slowly through 2009 thereafter. 5. In the late August of 2005, rupiah exchange rate depreciated sharply, driven by sudden and large private capital outflow, partly induced by loss of investors' confidence in face of an inadequate coordination of macro-economic policies such as failure to respond promptly to surging inflationary pressures. In May 2006, rupiah exchange rate depreciated much more sharply than its counterparts of neighboring countries amid world-wide capital outflow from emerging markets countries. Due in part to remaining restrictions on short term foreign exchange swap transactions, foreign exchange markets are thin and susceptible to private capital flows induced by shifts in investors' sentiment, easily translating into higher level of external debt and its service burden. Right after market turbulence in August 2005, fuel subsidies were substantially reduced in view of improving fiscal structure, and the central bank implemented successive rounds of monetary tightening. In addition, highly respected technocrats assumed important posts of economic coordinating minister and finance minister in limited-scale cabinet reshuffle in December 2005. These events, being perceived as signs of government's firm commitment to prudential macro-economic management, brought about a dramatic reversal of investors' sentiment, which led to substantial portfolio capital inflow. In order to avoid a recurrence of balance-of-payment pressures possibly emanating from outflow of these capitals, effective macro-economic policy coordination is required. Amid easing inflationary pressures, the central bank started gradual monetary easing from May 2006, effectively disseminating their policy intentions to financial markets and discreetly controlling the pace of easing while paying close attentions to global capital markets conditions. To date, they have succeeded to avoid inviting any slight balance-of-payment pressures by monetary easing while many other central banks keeping tightened monetary conditions. 6. The stable outlooks on the ratings balance prospect of continued decrease in levels of both external and government debts, against remaining vulnerability associated with still high level of debts and heavy debt service burden. Although relatively robust, economic growth in recent years has failed to create sufficient employment to fully absorb growing entrants to labor force, leading to surging unemployment rate. While the government made various efforts to improve economic structure, reduce corruption, and improve investment climate, the outcome of these efforts to date is mixed. Labor market reform and electricity price hike, for example, have been met with strong oppositions and forced to be postponed. If the government succeeds to improve the mid-to- long term growth prospects by reinvigorating both foreign direct and private domestic investment through various reforms, the ratings could be further upgraded. On the other hand, ratings will be under downward pressure if many of the reform measures aiming at enhancing economic structure stall at oppositions from various parties including vested interests, or if policy coordination failures among various parts of the government surfaces again like in 2005 and obstructs prompt and appropriate response to emerging adverse macroeconomic developments. ========= J A P A N ========= AIFUL CORPORATION: Pays JPY260-Million Back Taxes ------------------------------------------------- Aiful Corporation has paid around JPY260 million in back taxes after failing to report its JPY850-million income for the year ended March 2005, CrissCross News reports. The company has agreed to pay in full the arrears to the Osaka Regional Taxation Bureau despite its different opinion regarding the matter, the report says. According to CrissCross, the tax bureau alleged the moneylender recorded loan losses although it was actually collecting loan money from borrowers. As reported by The Japan Times, Aiful and other Japanese consumer loan companies have been criticized for "using" borrowers' lives as collateral for loans. Consumer loan companies often purchase group life insurance contracts after providing credit to borrowers. If the debtor dies of illness or commits suicide, the lender collects on the policy. In response to the criticism, life insurers are expected to ask moneylenders to be more careful in obtaining borrowers' consent when buying life insurance, prompting concern among lenders about administrative costs and higher premiums as the number of insured borrowers falls, The Japan Times says, Aiful, however, decided to stop taking out life insurance policies on borrowers, citing the criticism, higher costs and premium hikes, the report adds. Meanwhile, shares of Japanese consumer lenders including Aiful Corp. dropped after Nikko Citigroup Ltd. lowered profit and price estimates for the companies citing increased costs and a deteriorating outlook for loan growth, Bloomberg News reveals. Aiful slid JPY170, or 3.9%, to 4,160 on September 21, 2006. * * * Aiful Corporation -- http://www.ir-aiful.com/english/-- is the largest Japanese consumer finance company. The Company provides financial services such as unsecured/non-guaranteed loans and commerical/real estate collateral loans. Currently the company is based in Kyoto and has annual profits of close to JPY100 billion on over JPY2 trillion worth of loans. As reported by the Troubled Company Reporter - Asia Pacific on April 21, 2006, the Financial Services Agency had suspended Aiful's operations in March as punishment for intimidation and illegal collection practices. As a result of the business suspension, Aiful expects its group net profit to fall 20.2% to JPY52.54 billion for 2006. APOGEE TECH: Accumulated Deficit Tops US$14.3 Million at June 30 ---------------------------------------------------------------- Apogee Technology, Inc., posted a US$931,633 net loss on US$340,799 of net revenues for the three months ended June 30, 2006, compared to a US$1,598,982 net loss on US$1,314,639 of net revenues in 2005, the Company disclosed in its second quarter financial statements on Form-10QSB to the Securities and Exchange Commission. As of June 30, 2006, the Company's accumulated deficit widened to US$14,345,194 from a US$12,684,559 deficit at Dec. 31, 2005. A full-text copy of the Company's Quarterly Report is available for free at http://researcharchives.com/t/s?118f About Apogee Technology Headquartered in Norwood, Massachusetts, Apogee Technology (AMEX: ATA) -- http://www.apogeemems.com/-- designs, develops and markets proprietary sensor and medical device products using its MEMS and nanotechnology for the automotive, industrial, consumer and medical markets. The Company operates a worldwide marketing and sales organization. In Japan, the company runs an office in Yokohama City. Going Concern Doubt Miller Wachman, LLP, expressed substantial doubt about Apogee Technology, Inc.'s ability to continue as a going concern after auditing the Company's financial statements for the years ended Dec. 31, 2005 and 2004. The auditing firm pointed to the Company's recurring operating losses and negative cash flows from operations. APOGEE TECH: Dr. Andrianov Named VP for Research & Development -------------------------------------------------------------- Apogee Technology Inc. disclosed on September 6, 2006, that Alexander Andrianov has joined the company as the Vice President of Research and Development. Dr. Andrianov will support the design and development of novel drug coating and encapsulation technologies for the Company's PyraDerm(TM) intradermal drug delivery system. Dr. Andrianov brings over 20 years experience in applications of polymers as biomaterials and drug delivery systems. Most recently he was the founder Chief Scientific Officer of Parallel Solutions from 2001 until 2005, where he developed biodegradable polymers for protein delivery and discovered a new class of potent vaccine immunoadjuvants. Prior to starting Parallel, he worked for Physical Science, Inc., as Principal Research Scientist and at Avant Immuonotherapeutics, Inc., as Director of Polymer Synthesis and Formulation. Dr. Andrianov is listed as an inventor on over 35 patents and patent applications and has published numerous technical papers. Dr. Andrianov received his Ph.D. in Polymer Science from Moscow State University in 1985 and served as a faculty member until 1991. He continued his academic training at the Massachusetts Institute of Technology working with Professor Robert Langer. About Apogee Technology Headquartered in Norwood, Massachusetts, Apogee Technology (AMEX: ATA) -- http://www.apogeemems.com/-- designs, develops and markets proprietary sensor and medical device products using its MEMS and nanotechnology for the automotive, industrial, consumer and medical markets. The Company operates a worldwide marketing and sales organization. In Japan, the company runs an office in Yokohama City. Going Concern Doubt Miller Wachman, LLP, expressed substantial doubt about Apogee Technology, Inc.'s ability to continue as a going concern after auditing the Company's financial statements for the years ended Dec. 31, 2005 and 2004. The auditing firm pointed to the Company's recurring operating losses and negative cash flows from operations. DOLE FOOD: S&P Holds Ratings on Neg Watch After Product Warning --------------------------------------------------------------- Standard & Poor's Ratings Services' ratings for Westlake Village, California-based Dole Food Co. Inc. remained on CreditWatch with negative implications following the company's announcement that consumers should dispose of Dole-branded packaged fresh spinach products (including "Spinach," "Baby Spinach," and "Spring Mix" names) stamped with a Best-If-Used-By date of Aug. 17, through Oct. 1, 2006. The warning follows an outbreak of E. coli in several states that was believed to have originated from spinach products. "The ratings initially were placed on CreditWatch with negative implications on Aug. 9, 2006, following materially weaker-than- expected financial performance in the first half of fiscal 2006, which typically represents a substantial portion of cash flow" said Standard & Poor's credit analyst Alison Sullivan. On Sept. 15, 2006, a voluntary recall was issued by Natural Selection Foods LLC of packaged fresh spinach that the company produced and packaged under 28 different brand names, including Dole. All spinach items under the Dole label were produced and packaged by Natural Selection Foods. As part of Standard & Poor's resolution of the CreditWatch listing, the rating agency will monitor the investigation for further developments and any impact on future pre-packaged salad sales or damage to the Dole brand image. Standard & Poor's also will review Dole's operating and financial plans with management before resolving the CreditWatch listing. About Dole Headquartered in California, U.S.A., Dole Food Company Inc. -- http://www.dole.com/-- is a producer and marketer of fresh fruit, fresh vegetables and fresh-cut flowers, and markets a line of packaged foods. The Company has four primary operating segments. The fresh fruit segment produces and markets fresh fruit to wholesale, retail and institutional customers worldwide. The fresh vegetables segment contains operating segments that produce and market commodity vegetables and ready- to-eat packaged vegetables to wholesale, retail and institutional customers primarily in North America, Europe and Asia. The packaged foods segment contains several operating segments that produce and market packaged foods, including fruit, juices and snack foods. Dole's fresh-cut flowers segment sources, imports and markets fresh-cut flowers, grown mainly in Colombia and Ecuador, primarily to wholesale florists and supermarkets in the United States. In March 2003, Dole was acquired by its Chairman and Chief Executive Officer in a going- private merger agreement. Dole Japan Inc. is headquartered in Tokyo, Japan. * * * The Troubled Company Reporter reported on May 29, 2006, that Fitch Ratings removed Dole Food Company, Inc. from Rating Watch Negative, where it was placed on April 10, 2006, and downgraded the company's Issuer Default Rating to B- from B and unsecured debt to CCC+/RR5 from BB-/RR2 with Negative Outlook. On August 11, 2006, Standard & Poor's Ratings Services placed its corporate credit and other ratings on Dole Food Co. Inc. (B+/Watch Neg/B-2) on CreditWatch with negative implications, meaning that the ratings could be lowered or affirmed following the completion of S&P's review. Total debt outstanding at the company was about US$2.3 billion as of June 17, 2006. On September 15, 2006, the TCR reported that Moody's Investors Service placed the long-term ratings of Dole Food Company Inc. and the B1 corporate family rating of its wholly owned subsidiary Solvest Ltd. under review for possible downgrade. DOLE FOOD: Supports Recall of Packaged Fresh Spinach Products ------------------------------------------------------------- Dole Food Company Inc. disclosed that it supports the voluntary recall issued by Natural Selection Foods LLC of packaged fresh spinach that Natural Selection Foods produced and packaged with Best-If-Used-By dates from Aug. 17, 2006, through Oct. 1, 2006. These packages were sold under 28 different brand names, one of which was DOLE(R). Natural Selection Foods produced and packaged all spinach items under the DOLE label (with the names "Spinach," "Baby Spinach" and "Spring Mix"). Dole has no ownership or other economic interest in Natural Selection Foods. Consumers should dispose of any DOLE-branded packaged fresh spinach products stamped with a Best-If-Used-By date of Aug. 17 through Oct. 1 as a precautionary measure in keeping with Dole's commitment to consumer safety. The Natural Selection Foods recall and the U.S. Food and Drug Administration (FDA) statement do not impact any Dole products other than DOLE Spinach, Baby Spinach and Spring Mix with Best- If-Used-By dates from Aug. 17 through Oct. 1. Products that do not contain spinach are not a part of the Natural Selection Foods recall. Dole is committed to assisting the FDA, the California Department of Health Services and other regulatory agencies in their investigation and this recall by Natural Selection Foods. The full text of the Food and Drug Administration statement is available on-line at: http://www.fda.gov/bbs/topics/NEWS/2006/NEW01450.html About Dole Headquartered in California, U.S.A., Dole Food Company Inc. -- http://www.dole.com/-- is a producer and marketer of fresh fruit, fresh vegetables and fresh-cut flowers, and markets a line of packaged foods. The Company has four primary operating segments. The fresh fruit segment produces and markets fresh fruit to wholesale, retail and institutional customers worldwide. The fresh vegetables segment contains operating segments that produce and market commodity vegetables and ready- to-eat packaged vegetables to wholesale, retail and institutional customers primarily in North America, Europe and Asia. The packaged foods segment contains several operating segments that produce and market packaged foods, including fruit, juices and snack foods. Dole's fresh-cut flowers segment sources, imports and markets fresh-cut flowers, grown mainly in Colombia and Ecuador, primarily to wholesale florists and supermarkets in the United States. In March 2003, Dole was acquired by its Chairman and Chief Executive Officer in a going- private merger agreement. Dole Japan Inc. is headquartered in Tokyo, Japan. * * * The Troubled Company Reporter reported on May 29, 2006, that Fitch Ratings removed Dole Food Company, Inc. from Rating Watch Negative, where it was placed on April 10, 2006, and downgraded the company's Issuer Default Rating to B- from B and unsecured debt to CCC+/RR5 from BB-/RR2 with Negative Outlook. On August 11, 2006, Standard & Poor's Ratings Services placed its corporate credit and other ratings on Dole Food Co. Inc. (B+/Watch Neg/B-2) on CreditWatch with negative implications, meaning that the ratings could be lowered or affirmed following the completion of S&P's review. Total debt outstanding at the company was about US$2.3 billion as of June 17, 2006. On September 15, 2006, the TCR reported that Moody's Investors Service placed the long-term ratings of Dole Food Company Inc. and the B1 corporate family rating of its wholly owned subsidiary Solvest Ltd. under review for possible downgrade. FORD MOTOR: Buying Rover Brand Name From BMW -------------------------------------------- Ford Motor Co. will exercise its right to purchase the "Rover" brand name from BMW AG, in order to prevent confusion regarding the brand among customers, Newratings.com reports. Ford purchased the Land Rover brand from BMW in 2000 and holds the option to acquire the Rover brand as part of that deal. Land Rover is part of Ford's Premier Automotive Group, which includes other brands like Volvo, Jaguar and Aston Martin. The segment incurred a US$180 million net loss in Ford's second quarter results. According to Newratings.com, BMW has agreed to sell the Rover brand to Shanghai Automotive Industry Corp for GBP11 million if Ford won't exercise its right. SAIC had previously acquired the right to the designs for the Rover cars from BMW. James Doran, writing for The Times, reports that while Ford does not intend to roll out the Rover in its original form, the company is planning to introduce Rover vehicles under the Land Rover series. 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 Japan. 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 Service 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. FORD MOTOR CREDIT: R&I Places BB Rating on Monitor -------------------------------------------------- Rating and Investment Information, Inc., has placed Ford Motor Credit Company's BB rating on the Rating Monitor with a view to downgrading. The parent company of Ford Motor Credit Company, Ford Motor Company, announced additional restructuring measures on September 15. The measure is to deal with prolonged sales slump in trucks and SUVs, amid the high gas prices and delays in cost cutting measures because of price hikes in raw materials. In the first eight months of 2006 Ford saw the sales unit decline by 9.8% against the same period of the previous year. The plan includes the elimination of about 14,000 salaried- related positions, two additional facility closures and the reduction of production capacity by 26%. Furthermore, Ford has accelerated by four years its previously announced goal of reducing hourly employees by the end of 2012. It plans to renew approximately 70% of all models by the end of 2008, and will strengthen the popular crossover lineups in an attempt to bump up sales. Nevertheless, Ford expects that its bottom line will not turn black until 2009 due to increases in structural adjustment costs. Ford has ample liquidity of US$280 billion on a consolidated basis as of June 30, 2006, but the consolidated business performance in 2006 seems severe. The first-half saw losses as a result of special losses in automobile business in spite of dividends from Ford Motor Credit. The full year result is likely to remain in red. Automotive business will remain in red for the second consecutive year. It will be necessary to pay attention to the affect the declining creditworthiness of the parent company will have on funding costs of Ford Motor Credit. Ford Motor Credit is a wholly owned subsidiary under Ford Motor Company and positions as one of the most crucial companies of the Group; therefore the rating reflects the creditworthiness of Ford Group as a whole. R&I will announce a new rating after making a thorough research on Ford's business and financial outlooks including the impact of these additional restructuring measures, its competitiveness in the market, market evaluation towards Ford Motor Credit and the possible future strategy as to the group's structure. About Ford Motor Credit Ford Motor Credit Co. -- http://www.fordcredit.com/-- is one of the world's largest auto financing companies, and funds autos for and through some 12,500 Ford, Lincoln, Mercury, Jaguar, Land Rover, Mazda, Aston Martin, and Volvo dealerships. Ford Motor Credit Co. finances new, used, and leased vehicles (including about 40% of new Fords sold in the U.S.) and provide wholesale financing, mortgages, and capital loans for dealers. The Company also offers individual and business fleet financing, while its insurance operations offer extended service contracts, automobile insurance, wholesale inventory insurance, and credit life and disability insurance. The Company has operations in the Asia-Pacific region, including Japan. HERBALIFE LIMITED: Names Stacy Brovitz as Sr. VP of Global Ops -------------------------------------------------------------- Herbalife Ltd. appointed Stacy Brovitz as senior vice president of global operations. He will oversee the company's global supply chain and strategic sourcing, manufacturing, process improvement and technology, distribution and transportation, and global licensing, and will report to President and COO Gregory L. Probert. "We have more than 1.4 million Herbalife Independent Distributors worldwide and serving them is our highest priority," said Mr. Probert. "As head of our worldwide operations, Stacy will provide the experienced operations leadership we require to provide best-in-class products and service to our Distributors. We are very pleased to announce his appointment." Mr. Brovitz has over 16 years experience in operations, supply chain management, manufacturing, information technology and finance. Since 1992, he has served as chief operating officer of Dormont Manufacturing Company, a manufacturer of stainless steel gas appliance connectors and tubing sold in major home improvement stores and used commercially by restaurant chains, and major commercial cooking and residential appliance manufacturers. He played a key role on the company's management team after its Dec. 2005 purchase by Watts Water Technologies, Inc., a US$1.2 billion industrial products manufacturing company. During his 16 years with Dormont, Brovitz successfully managed the company through a period of rapid growth. Most recently, Brovitz was responsible for operations, new product development, all staff functions and the company's three strategic business units. Previously, Mr. Brovitz served as vice president of the capital markets group for J.P.Morgan Chase, a position he held for three years. For four years prior, Brovitz was a financial analyst for the firm. He holds a Bachelor of Science degree in accounting, Summa Cum Laude, from Ohio State University, and a Master of Science in Industrial Administration from Carnegie- Mellon University. About Herbalife Ltd. Herbalife Limited -- http://www.herbalife.com/-- is a global network marketing company that sells weight-management, nutritional supplements and personal care products intended to support a healthy lifestyle. Herbalife products are sold in 62 countries through a network of more than one million independent distributors. The company supports the Herbalife Family Foundation -- http://www.herbalifefamily.org/-- and its Casa Herbalife program to bring good nutrition to children. Herbalife of Japan K.K. is headquartered in Minato-ku, Tokyo. * * * Standard & Poor's Ratings Services rated Herbalife Ltd.'s long- term foreign and local issuer credit ratings at BB+. HERBALIFE INT'L: S&P Rates US$300-Million Bank Financing at BB+ --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its bank loan and recovery ratings to Herbalife International Inc.'s US$300-million bank financing. Herbalife International Inc. is the borrower under the facility, which is comprised of a US$200-million six-year first-lien term loan and a US$100 million six-year first-lien revolving credit facility. The first-lien loans are rated 'BB+', the same as the corporate credit rating, with recovery ratings of '3', indicating the expectation of meaningful (50%-80%) recovery of principal in the event of default. Proceeds from the facilities will be used to redeem the company's US$165 million 9.5% notes due 2011 and pay the related accrued interest. All obligations under the credit facility are unconditionally guaranteed by Herbalife Ltd., the parent company, and its direct and indirect wholly owned subsidiaries except certain non-U.S. subsidiaries. The facility is secured by a first-priority security interest in substantially all present and future tangible and intangible assets of the company, including a pledge of 100% of the stock of domestic subsidiaries and 66% of the stock of non-U.S. subsidiaries. Ratings List: Herbalife International Inc.: * Corporate credit rating: BB+/Stable/-- Ratings Assigned: * $200 mil first-lien term loan: BB+ * Recovery rating: 3 * $100 million first-lien credit facility: BB+ * Recovery rating: 3 About Herbalife Herbalife -- http://www.herbalife.com/-- is a global network marketing company that sells weight-management, nutritional supplements and personal care products intended to support a healthy lifestyle. Herbalife products are sold in 62 countries through a network of more than one million independent distributors. The company supports the Herbalife Family Foundation -- http://www.herbalifefamily.org/-- and its Casa Herbalife program to bring good nutrition to children. Herbalife of Japan K.K. is headquartered in Minato-ku, Tokyo. * * * As reported in the Troubled Company Reporter on July 4, 2006, Moody's Investors Service rated the proposed bank loan of Herbalife International, Inc. at Ba1 and upgraded the corporate family rating to Ba1. Herbalife will use proceeds from the new debt to repay the existing term loan and to redeem the $165 million issue of 9.5% senior subordinated notes. At the same time, Standard & Poor's Ratings Services raised its ratings on Herbalife International Inc., including its corporate credit rating to 'BB+' from 'BB'. Standard & Poor's also raised its ratings on Herbalife's parent, Herbalife Ltd., including the corporate credit rating to 'BB+' from 'BB'. The outlook is stable. XM SATELLITE: D.C. Court Consolidates Securities Fraud Lawsuits --------------------------------------------------------------- The United States District Court for the District of Columbia has set a Sept. 26, 2006 deadline for lead plaintiffs in the consolidated securities fraud class action against XM Satellite Radio Holdings, Inc., to file a consolidated complaint. On May 8, 2006, an investor sued XM Satellite seeking damages for violations of federal securities laws on behalf of all investors who acquired XM securities from July 28, 2005 through and including Feb. 15, 2006. The lawsuit claims that XM and Hugh Panero, its president and chief executive officer, violated Sections 10(b) and 20(a) of the U.S. Securities Exchange Act of 1934, Sections 78j(b) and 78t of the U.S. Commerce and Trade Code, and U.S. Securities and Exchange Commission Rule 10b-5, 17 Code of Federal Regulations Section 240.10b-5, promulgated thereunder. According to the complaint, Washington-based XM and Mr. Panero violated the federal securities laws by issuing materially false and misleading statements during the class period that artificially inflated the company's stock price. Specifically, the complaint says defendants led the market to believe that XM would grow its subscriber base to 6 million by year-end 2005, while lowering two of its "key metrics:" Subscriber Acquisition Costs and Cost Per Gross Addition. In reality, however, the company was allegedly well aware that costs, especially SAC and CPGA, would skyrocket in the fourth quarter of 2005 due to a US$25 million promotional campaign to combat the debut of the popular "Howard Stern Show" on Sirius Satellite Radio, XM's chief competitor. On Feb. 16, 2006, the company announced a net loss of US$268.3 million for the fourth quarter of 2005, compared with US$188.2 million a year earlier. For the full 2005 year, XM's net loss was US$666.7 million, compared to US$642.4 million in 2004. In addition, the company announced that both SAC and CPGA were much higher than the market had been led to believe. The market reacted swiftly to those revelations, sending the price of XM's common stock down 5.03%, from a close of US$25.25 per share on Feb. 15, 2006, to US$23.98 per share the next day. The company's stock price fell a further 10.05% to US$21.57 per share at the close of trading Feb. 17, 2006, the complaint says. According to the complaint, Mr. Panero and other insiders engaged in highly suspicious stock sales during the class period, with Mr. Panero selling approximately 413,334 shares, or 98.71% of his personally held XM stock, for approximately US$8,841,161. Collectively, company insiders sold approximately 2,769,516 of personally held XM stock during the fourth quarter of 2005, reaping proceeds of approximately US$73,325,009. On June 7, 2006, Judge Ellen Huvelle signed a Consolidation Order, consolidating all related cases into one class action as "In re XM Satellite Radio Holdings Securities Litigation, C.A. No. 06-0802." On July 3, 2006, competing motions for the appointment of lead plaintiff and lead counsel were filed with the court. On Aug. 1, 2006, Judge Huvelle issued a Memorandum Opinion and Order appointing lead plaintiffs and lead counsel. Pursuant to a Sept. 8, 2006 Stipulation and Order, lead plaintiffs have until Sept. 26, 2006 to file a consolidated complaint. Meanwhile, on Aug. 31, 2006, the company said it received a letter from the staff of the SEC requesting that the company voluntarily provide documents to the Staff regarding the company's subscriber targets, costs associated with attempting to reach those targets, and related matters during the third and fourth quarters of 2005. Representing the plaintiffs are: (1) Kimberly Anne Chadwick of Doherty, Sheridan & Persian, 8408 Arlington Boulevard, Fairfax, VA 22031, Phone: (703) 698-7700, Fax: (703) 641-9645, e-mail: kchadwick@dsp-law.com; (2) Donald J. Enright and Karen Jennifer Marcus both of Finkelstein Thompson & Loughran, 1050 30th Street, NW Washington, DC 20007, Phone: (202) 337-8000, Fax: (202) 337-8090, e-mail: dje@ftllaw.com or kjm@ftllaw.com; (3) Burton John Fishman of Fortney & Scott, 1750 K Street, NW, Suite 325, Washington, DC 20006, Phone: (202) 689- 1200, Fax: (202) 776-7801, e-mail: fishman@fortneyscott.com; (4) Nancy M. Juda of Lerach Coughlin Stoia Geller Rudman & Robbins LLP, 1100 Connecticut Avenue, NW, Suite 730, Washington, DC 20036, Phone: (202) 822-2024, e-mail: nancyj@lerachlaw.com; (5) Gary Edward Mason of The Mason Law Firm, 1225 19th Street, NW, Suite 500, Washington, DC 20036, Phone: (202) 429-2290, Fax: (202) 429-2294, e-mail: gmason@masonlawdc.com; (6) Arthur L. Shingler, III of Scott & Scott LLC, 600 B Street, Suite 1500, San Diego, CA 92101, Phone: (619) 233-4565, Fax: (619) 233-0508, e-mail: ashingler@scott-scott.com; and (7) Daniel S. Sommers and Steven J. Toll both of Cohen Milstein Hausfeld & Toll, PLLC, 1100 New York Avenue, NW, West Tower, Suite 500, Washington, DC 20005, Phone: (202) 408-4600, Fax: (202) 408-4699, e-mail: dsommers@cmht.com or stoll@cmht.com. Representing the defendants are Charles Edward Davidow and Michael A Mugmon both of Wilmer Cutler Pickering Hale & Dorr LLP, 1875 Pennsylvania Avenue, NW, Washington, DC 20006, Phone: (202) 663-6241 or (202) 663-6101, Fax: (202) 663-6363, e-mail: harles.davidow@wilmerhale.com or michael.mugmon@wilmerhale.com; and Christopher J. Herrling of Wilmer Cutler Pickering Hale & Dorr LLP, 2445 M Street NW, Washington, DC 20037-1420, (202) 663-6000, Fax: (202) 663-6363, e-mail: cherrling@wilmer.com. About XM Satellite Headquartered in Washington, D.C., XM Satellite Radio Inc. (Nasdaq: XMSR) -- http://www.xmradio.com/-- is a wholly owned subsidiary of XM Satellite Radio Holdings Inc. XM has been publicly traded on the NASDAQ exchange since Oct. 5, 1999. XM's 2006 lineup includes more than 170 digital channels of choice from coast to coast: the most commercial-free music channels, plus premier sports, talk, comedy, children's and entertainment programming; and 21 channels of the most advanced traffic and weather information. XM has broadcast facilities in New York and Nashville, and additional offices in Boca Raton, Florida; Southfield, Michigan; and Yokohama, Japan. At June 30, 2006, XM Satellite Radio Inc.'s balance sheet showed a stockholders' deficit of US$358,079,000, compared to a deficit of US$362,713,000, at Dec. 31, 2005. * * * As reported in the Troubled Company Reporter on April 21, 2006, Standard & Poor's Ratings Services assigned its 'CCC' rating to XM Satellite Radio Inc.'s proposed US$600 million senior unsecured notes. The senior unsecured notes are rated one notch below the corporate credit rating because of the sizable amount of secured debt in the company's capital structure relative to its asset base. At the same time, Standard & Poor's assigned its 'B-' rating and recovery rating of '1' to XM's proposed US$250 million first- lien secured revolving credit facility, indicating an expectation of full recovery of principal in the event of a payment default. * R&I Affirms Japan's AAA Rating with Negative Outlook ------------------------------------------------------ Japan's economy, which escaped from its long adjustment phase and has been on a recovery track since 2002, still continues to grow. Although fiscal conditions still required special attention, the Government is maintaining its stance to seriously undertake measures to restore fiscal health. Considering factors such as Japan's strong economic base, the excellent tax- bearing capability of the private sector, the low national burden rate compared with advanced European countries and ample domestic savings, Rating and Investment Information, Inc. judges there is a sufficient possibility for Japan to improve fiscal condition to a sustainable position. Based on these considerations, R&I has affirmed the Domestic Currency Issuer Rating and Foreign Currency Issuer Rating both at AAA. The Outlook is negative. A decision to revise Japan's Rating Outlook to Stable will depend on whether the favorable economic and business climate continues, and on whether the government steadily implements expenditure reduction and tax increase measures in line with the Basic Policy. For that reason alone, should economic growth slow because the United States economy stalls, or growth in newly emerging economies slows, or for any other reason, there is a possibility the government will find it more difficult to adopt tax increase measures, and hopes of fiscal reconstruction will fade, putting further downward pressure on Japan's creditworthiness. Together with the economic trend, R&I will follow whether the government more specifically hammers out a fiscal reconstruction plan and is able to build a national consensus on that plan. A full-text copy of this media release is available for free at: http://bankrupt.com/misc/tcrap_japansovereignrating092206.pdf ========= K O R E A ========= ARAMARK CORP: Moody's Lowers $250MM Senior Notes to B2 from Baa3 ---------------------------------------------------------------- Moody's Investors Service downgraded the 5% senior notes due 2012 of ARAMARK Services, Inc. to B2 from Baa3, confirmed the Baa3 ratings on the senior notes due 2007 and 2008, and assigned a corporate family rating of Ba3 to ARAMARK Corporation, ARAMARK Services' holding company parent. The B2 rating on the 5% senior notes due 2012 and the Ba3 corporate family rating are under review for possible downgrade. Moody's placed all the credit ratings of ARAMARK on review for possible downgrade on May 1, 2006 following the announcement that it received a proposal from the company's CEO and a group of investors to acquire all of the outstanding shares of common stock. In August 2006, ARAMARK signed a definitive merger agreement under which the company's Chairman and Chief Executive Officer and a group of investment funds will acquire the company in a transaction valued at approximately $8.3 billion, including the assumption or repayment of approximately $2 billion of debt. The merger agreement was approved by the board of directors based on the unanimous recommendation of a special committee consisting of independent directors. In August, Moody's confirmed the Baa3 rating on the 7.1% senior notes due 2006 of ARAMARK Services and left all other senior note issues on review for possible downgrade. This rating action reflected the uncertainty as to whether the senior notes maturing in 2007-2012 would be refinanced in connection with the acquisition. ARAMARK recently disclosed the expected financing package for the acquisition in its proxy statement filed with the U.S. Securities and Exchange Commission. The assignment of a Ba3 corporate family rating to ARAMARK reflects the substantial increase in debt levels and weakening of credit metrics expected in the post-acquisition capital structure. Based on information included in ARAMARK's proxy statement, Moody's believes that pro forma Debt to EBITDA will likely exceed 6 times and that a corporate family rating in the single B rating category is possible upon conclusion of the review. The rating review will focus on ARAMARK'S post-acquisition capital structure, liquidity position and operating strategies. The confirmation of the Baa3 rating on the senior notes due 2007-2008 reflects the company's intention to refinance these notes in connection with the acquisition. Based on disclosure in ARAMARK's proxy statement, Moody's understands that the company does not intend to refinance its 5% senior notes due 2012, which lack guarantees from ARAMARK's major operating subsidiaries. The downgrade of the 5% senior notes due 2012 to B2, two notches below the corporate family rating, reflects the expected structural subordination of those notes to high levels of secured and guaranteed debt in the post-acquisition capital structure. The acquisition is expected to be completed by late 2006 or early 2007, subject to receipt of stockholder approval. The investor group has obtained equity and debt financing commitments for the transactions contemplated by the merger agreement. There is no financing condition to the proposed transaction. Moody's took these rating actions: * Affirmed $125 million senior unsecured notes due 2006, rated Baa3 * Confirmed $300 million senior unsecured notes due 2007, rated Baa3 * Confirmed $31 million senior unsecured notes due 2007, rated Baa3 * Confirmed $300 million senior unsecured notes due 2008, rated Baa3 * Downgraded $250 million senior unsecured notes due 2012, to B2 from Baa3 * Downgraded senior unsecured shelf registration, to (P) B2 from (P)Baa3 * Downgraded senior subordinated shelf registration, to (P) B2 from (P)Ba1 * Assigned corporate family rating, rated Ba3 These ratings remain on review for possible downgrade: * $250 million senior unsecured notes due 2012, rated B2 * Senior unsecured shelf registration, rated (P) B2 * Senior subordinated shelf registration, rated (P) B2 * Corporate family rating, rated Ba3 About ARAMARK Corporation Headquartered in Philadelphia, Pennsylvania, ARAMARK Corporation (NYSE:RMK) -- http://www.aramark.com/-- is a leader in professional services, providing award-winning food services, facilities management, and uniform and career apparel to health care institutions, universities and school districts, stadiums and arenas, and businesses around the world. In FORTUNE magazine's 2006 list of "America's Most Admired Companies," ARAMARK was ranked number one in its industry, consistently ranking since 1998 as one of the top three most admired companies in its industry as evaluated by peers and industry analysts. The company was also ranked first in its industry in the 2006 FORTUNE 500 survey. ARAMARK has approximately 240,000 employees serving clients in 20 countries, including Japan and Korea. HYUNDAI ENGINEERING: Gets US$780-Mil Saudi Aramco Contract ---------------------------------------------------------- Hyundai Engineering & Construction Company Ltd, in partnership with global engineering firm Foster Wheeler Ltd., won a US$780- million contract to build a gas-processing facility in Saudi Arabia for Saudi Aramco. The Saudi Aramco deal is part of Saudi Arabia's mega-project to develop its Khurais oil field, some 180 kilometers northeast of Riyadh, Yonhap News says, citing Hyundai's statement. According to KBS Global, the Khurais Gas Facility will process 550,000,000-cubic feet of natural gas and 70,000 barrels of liquefied natural gas daily. The Khurais Facility is scheduled for completion in April 2009, Asia Pulse Data Source notes. In a press release, Foster Wheeler said that the Facility is one of the main contract packages that make up the Khurais Crude Increment Program, the largest project to be developed under Saudi Aramco's expansion program aimed at increasing oil production by the end of the decade. It is one of the most important oil projects in the world today, Foster Wheeler pointed out. "This program is one of the largest industrial projects being undertaken in the world today and is the largest crude increment program undertaken in the history of Saudi Aramco. This program is challenging because of the scope and complexity of the facilities, the extensive and diverse work locations and the short timescales involved," commented Mr. A. A. Al-Ajmi, vice president, project management, Saudi Aramco. "We are confident that the Foster Wheeler and Hyundai joint venture has the skills and track record to manage this challenge and to deliver a world-class gas plant." About Hyundai Engineering Headquartered in Seoul, South Korea, Hyundai Engineering & Construction Company Limited -- http://www.hdec.co.kr/-- is involved in civil engineering, housing development projects and other contracted construction works in South Korea and internationally. Its operations fall into the following key areas: building, civil works, plant and power works. Within the building and housing section, HDEC is involved in construction and architecture, and has been involved in residential, commercial and institutional building projects. The Troubled Company Reporter - Asia Pacific reported on December 17, 2003, that the creditor banks of Hyundai Engineering agreed to roll over its debts, which amount to KRW6 trillion, starting 2004. The debt extension is valid until 2006 and applies to KRW1.72 trillion in loans that come due in 2004 and about KRW4 trillion in loan guarantees related to construction activities. The TCR-AP stated that Hyundai Engineering ran into a liquidity problem in 2000 after extending massive subsidies to prop up its weak subsidiaries and loss-making businesses. Huge outstanding debts in Iraq further strained the contractor's finances. Creditors of Hyundai Engineering & Construction Co. relinquished direct control of Korea's top builder in May 2006. KOREA EXCHANGE: Stock-Price Manipulation Probe Confirmed -------------------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on September 21, 2006, the Financial Supervisory Service has been probing into Korea Exchange Bank over allegations of stock price-manipulation. According to local newspaper agency Chosun Ilbo, the FSS suspects KEB executives of manipulating the stock price of KEB Credit Services during their 2003 merger. The FSS investigation will be concluded at the Securities & Futures Commission meeting on September 29, the newspaper says, citing a senior official at the FSS. The Securities & Futures Commission, an arm of the Financial Supervisory Commission, is tasked is to investigate market abuses, including insider trading and market manipulation in the securities and futures markets. The FSS thinks it is possible that KEB executives manipulated stock prices by mentioning a possible capital reduction of the bank's credit card unit, which did not take place, but it is the prosecutors' job to prove that KEB's largest shareholder Lone Star intentionally manipulated KEB's stock prices, the official told the newspaper. If KEB is found to be involved in the scam, the FSS would hand over related documents to prosecutors, Chosun Ilbo points out. As reported in the TCR-AP, KEB denies the allegations of stock price manipulation. About Korea Exchange Korea Exchange Bank -- http://www.keb.co.kr/english/index.htm-- was established in January 1967 by the Government originally as a specialist foreign exchange bank. It retains its strength in trade finance and foreign exchange. In terms of assets, it ranks sixth among Korea's nationwide commercial banks with 7% of system assets. It operates a branch network of 317 domestic and 28 overseas offices. During the economic crisis, significant exposures to troubled corporate borrowers led to a deterioration in the bank's financial health. However, since then, its operating performance stabilized, and the bank has reported consecutive quarterly profits since the end of 2003. Fitch Ratings gave Korea Exchange Bank a 'C' Individual Rating effective on June 17, 2005. Moody's Investors Service gave KEB a 'D' Bank Financial Strength Rating effective on May 9, 2006. * * * South Korean politicians -- led by the main opposition Grand National Party -- have alleged that the Korea Exchange shares were sold cheap to United States-based Lone Star Funds after the Bank's financial status was incorrectly reported. Korea Exchange denied the allegations in March 2006. The Board of Audit and Inspections and the Supreme Public Prosecutors' Office initiated separate investigations into the matter. On June 20, 2006, the BAI determined that Lone Star's acquisition of Korea Exchange was led by management with the approval of the financial supervisory bureau. BAI found that KEB exaggerated its insolvency and falsely recorded the Bank for International Settlements' capital adequacy ratio at 6.16%, which is below the 8% threshold for healthy banks. Prosecutors are investigating whether there were any transgressions of law in the process of selling KEB and whether bribes were given to officials. If prosecutors will find solid evidence that the data was cooked up, it might lead to the nullification of the KEB sale to Lone Star and the arrest of regulators, policymakers and former KEB executives. * U.S.-listed Korean Cos. Prepared for Stricter SEC Requirements ---------------------------------------------------------------- A survey carried out by the Financial Supervisory Service showed that most Korean companies whose shares are traded in the United States stock markets are adequately prepared to comply with stricter rules under the Sarbanes-Oxley Act of 2002. The survey was conducted over 15 U.S.-listed Korean companies: a. Listed in the New York Stock Exchange: 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) b. Listed in Nasdaq: 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) Section 404 of Sarbanes-Oxley requires companies to report annually on the adequacy and effectiveness of their internal financial controls. Exemptions of that requirement, previously granted to foreign companies, expired beginning this business year. The surveyed companies, however, are concerned of high compliance cost of staying listed in the U.S. markets, the FSS said. Two of the 15 companies may consider delisting if compliance cost increases by more than 50% going forward. According to the FSS, listing and other compliance costs incurred by U.S.-listed Korean companies since 2003 have are at around KRW120 billion, approximately KRW30 billion a year. Of the total, 65% or KRW78.3 billion were related to auditing, the FSS pointed out. =============== M A L A Y S I A =============== AVANGARDE RESOURCES: FY2005 Report Due June 30, Still Not Filed --------------------------------------------------------------- Avangarde Resources Berhad failed to submit its annual report for the financial year ended December 31, 2005, to Bursa Malaysia Securities Berhad for public release within the stipulated timeframe under the Bursa Securities' Listing Requirements. The 2005 Report was due on June 30, 2006. Pursuant to the Listing Requirements, if a listed issuer fails to file the outstanding financial statements within three months from the expiry of the required timeframes, the Bourse will suspend trading of that issuer's securities in addition to any enforcement action that it may take. The suspension will take effect on the market day after the expiry of the suspension deadline. Yet, Avangarde Berhad's securities has already been suspended from trading since April 2004 because of its failure to issue its Annual Audited Accounts and Annual Report for the financial year ended December 31, 2002 -- due April 30, 2003, and June 30, 2003, respectively. Accordingly, is Avangarde fails to issue the outstanding financial statements within six months from the expiry of the relevant timeframes, the Bourse will commence de-listing procedures against the Company. About Avangarde Resources Headquartered in Kuala Lumpur, Malaysia, Avangarde Resources Berhad is involved in the construction and development of housing projects. The Group has incurred huge losses due to provision of doubtful debts and writing off of bad debts. It was delisted from the Official List of Bursa Malaysia Securities Berhad due to its inadequate financial condition and its failure to meet with the requirements of the Bourse. The Company is now preparing the Proposed Scheme of Arrangement pursuant to the Section 176 of the Companies Act to regularize its financial condition. The Company will unveil its Proposed Scheme once it is finalized. The Company's balance sheet as of June 30, 2006, showed total assets of MYR20.349 million and total liabilities of MYR147.824 million, resulting into a stockholders' deficit of MYR127.475 million. AYER HITAM: August Default Amount Tops MYR41,715,961 ---------------------------------------------------- As of August 31, 2006, Ayer Hitam Tin Dredging Malaysia Group has a total default in principal sums plus interest of MYR41,715,961. Of the total default amount, MYR28,391,743 is owed by Ayer Hitam's wholly owned subsidiary Motif Harta Sdn Bhd to: * Alliance Bank Malaysia Berhad; * EON Bank Berhad; * Kewangan Bersatu Berhad; and * Malayan Banking Berhad. The remaining MYR13,324,218 is owed by Ayer Hitam's 100% owned subsidiary Pembinaan AHT Sdn Bhd to AmBank Berhad. The principal sum is based on the amount owed to the syndicated lenders as of September 30, 2004, as per judgment dated May 9, 2005. Pursuant to the judgment, interest is chargeable at the rate of 3.5% per annum above base lending rate until full settlement of the amount outstanding. Interest comprises of default interest from October 1, 2004, to June 30, 2006. About Ayer Hitam Headquartered in Kuala Lumpur, Malaysia, Ayer Hitam Tin Dredging Malaysia Berhad -- http://www.ahtin.com.my/-- is involved in property development and the trading of promotional products and services in Malaysia. The Company is also engaged in the trading of uninterrupted power supply equipment and magnetic fuel treatment systems and the provision of investment holding, nominee services, hotel development and management and renovation services. The Company has been incurring losses in the past years and has defaulted on several loan facilities. As of August 31, 2006, Ayer Hitam's payment default has reached MYR41,715,961. The Company has presented a restructuring proposal, which was rejected by the Securities Commission after determining that the Scheme is not a comprehensive proposal capable of resolving all the financial issues faced by the Company. FORMIS MALAYSIA: Changes Name to Perduren (Malaysia) Berhad ----------------------------------------------------------- Formis (Malaysia) Berhad is now under a new name -- Perduren (Malaysia) Berhad. The Company received the Certificate of Incorporation on Change of Name dated September 19, 2006, from the Companies Commission of Malaysia. Accordingly the change to the Perduren (M) Berhad became effective on September 19. About Formis (Malaysia) Formis Malaysia Berhad -- http://www.formis.net/-- was incorporated in Malaysia under the Companies Act, 1965 on March 23, 1992, under the name of Orlando Holdings Berhad. The Company was first listed on the Second Board of Bursa Malaysia Securities Berhad on December 28, 1992, and subsequently, on March 20, 2000, changed to its present name before being transferred to Main Board of Bursa Securities on March 30, 2000. Formis is principally an investment holding company and through its subsidiaries, is involved in the provision of hardware, software, maintenance and consultancy services in information technology business, computer networking solutions and systems integration as well as the wholesale and retail of full range of "Orlando" ready-made menswear and related accessories. Formis was admitted into Bursa Malaysia Securities Berhad's Practice Note 17 category on March 10, 2006, due to a deficit in its adjusted shareholders' equity and the impending cessation of its major business. Formis is in the process of completing the disposal of its IT Business to My-InfoTech (M) Berhad. Furthermore, it had also entered into a conditional sale and purchase agreement dated January 6, 2006, to dispose of Orlando Corporation Sdn Bhd. After the disposal of its IT Business and the proposed disposal of OCSB, Formis will not have any business operations. KOMARKORP BERHAD: Buys Back 20,100 Shares ----------------------------------------- Komarkorp Berhad has repurchased a total of 20,100 shares from Bursa Malaysia Securities Berhad on September 8-15, 2006. The minimum price paid for each share purchased was MYR0.320, while the maximum price is MYR0.335. Hence, the tota amount paid for the shares was MYR6,567. About Komarkcorp Komarkcorp Berhad -- http://www.komark.com.my/-- is engaged in investment holding and provides management services through its subsidiaries. The Company operates in two business segments: manufacturing of self-adhesive labels and trading of related products, and manufacture of automatic labeling machines. Manufacturing of automatic labeling machineries is operated in Malaysia. The company has been incurring losses in the past three years. For the fourth quarter ended April 30, 2006, the Group incurred a net loss of MYR30,000, as against a net loss of MYR226,000 in the same quarter last fiscal year. As of April 30, 2006, the Company's balance sheet revealed strained liquidity with current assets of MYR73,224,000 available to pay liabilities of MYR84,324,000 due in the next 12 months. The Company has a net current deficit of MYR11,100,000. METROPLEX BERHAD: Wind-Up Petition Hearing Adjourned to Oct. 10 --------------------------------------------------------------- The Court postpones to October 10, 2006, the hearing to consider Morgan Stanley Emerging Markets' winding-up petition against Metroplex Berhad. The hearing, which was previously scheduled on Sept 20, will also cover: -- Morgan Stanley's application for the appointment of a provisional liquidator for Metroplex Berhad; and -- Metrolex's request to strike out the winding-up petition. As reported by the Troubled Company Reporter - Asia Pacific reported on September 20, 2006, the Court had previously ruled that the remuneration of the Provisional Liquidator is to be paid out of Metroplex's assets. About Metroplex Berhad Headquartered in Kuala Lumpur, Malaysia, Metroplex Berhad's activities are hotel and casino operations. Other activities include property investment, property development, provision of administrative services, general and building construction, leasing and financing, trading of building materials and operation of hotel management training school. Operations are carried out in Malaysia, Hong Kong, and the Philippines. On April 28, 2005, Morgan Stanley Emerging Markets Inc. had filed a wind-up petition against the Company with the Kuala Lumpur High Court. In the event the wind-up petition succeeds, the Company will be put into liquidation. Metroplex Berhad's April 30, 2006 balance sheet revealed total liabilities of MYR1,417,778,000 exceeding total assets of MYR1,214,518,000, resulting into a shareholders' deficit of MYR203,260,000. As of August 31, 2006, Metroplex's payment default reached MYR1,790,952,181. NORTH BORNEO: Has Yet to Submit Annual Report for 2005 ------------------------------------------------------ The North Borneo Corporation Berhad has not submitted to Bursa Malaysia Securities Berhad its annual report for the financial year ended December 31, 2005, which was due on April 30, 2006. Auditors Pannell Kerr Forster has commenced has commenced their audit on the AAA 2005, after their appointment was approved at the Extraordinary General Meeting held on 29 June 2006. They are still in the process of finalizing the AAA 2005. As a consequence of the non-compliance of the Listing Requirement, Bursa Securities may take action against the Company. The Troubled Company Reporter - Asia Pacific reported that on July 31, 2006, Bursa Malaysia Securities Berhad publicly reprimanded and imposed a fine on The North Borneo Corporation Berhad for breaching the Bourse's Listing Requirements. The Company violated the Listing Rules by failing to issue for public release its annual audited accounts for the financial year ended December 31, 2005, by the April 30, 2006 deadline. As of July 31, 2006, the Company has yet to submit its AAA 2005 to Bursa Securities. About The North Borneo Headquartered in Sabah, Malaysia, The North Borneo Corporation Berhad engages in the management of forest management unit and investment holding. The Group operates in Malaysia and Bermuda. Due to its continuous losses, the Kuala Lumpur Stock Exchange placed the Company under the Practice Note 4/2001 category in April 2001 and was ordered to start regularizing its financial condition. On April 28, 2005, the Securities Commission has agreed to North Borneo's proposal to dispose of its business as part of the Company's efforts to regularize its finances and restructure its debts. The Plan, however, met objections from creditors. On March 6, 2006, two scheme creditors of North Borneo Corp. -- Sabah Development Bank and Prokhas Sdn Bhd -- withdrew their support of the Company's proposed debt restructuring, saying that they are no longer agreeable to the terms of the planned business disposal as part of the restructuring program. The Company's March 31, 2006, balance sheet showed total assets of MYR1,662,000 and total liabilities of MYR163,379,000 resulting into a MYR161,717,000 deficit in shareholders' funds. POLYMATE HOLDINGS: Receives Writ of Summons from HSBC Bank ---------------------------------------------------------- On September 20, 2006, Polymate Holdings Berhad and its wholly owned subsidiary, Polymate Industries (M) Sdn Bhd, were served with a Writ of Summons and Statement of Claim dated August 18, 2006, by HSBC Bank Malaysia Berhad. HSBC is asserting against Polymate Holdings: -- a judgment sum of MYR534,644 as of May 1, 2006, under the Overdraft Facility plus an annual interest of 2.5% from May 2, 2006, until full payment and debit monthly to Polymate's current account; and -- a judgment sum of MYR2,836,246 as of May 1, 2006, under the Term Loan Facility plus an annual interest of 2.5% from May 2, 2006, until full settlement. On the other hand, HSBC is demanding from Polymate Industries payment of: -- MYR3,000,000 as of May 1, 2006, under the Overdraft Facility and Term Loan Facility plus annual interest of 8% from May 2, 2006, until full payment; and The plaintiff is also claiming from the two defendants payment for legal costs and other relief as deemed fit by the Kuala Lumpur High Court. 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. SUGAR BUN: To List and Quote 500,000 Shares on Sept. 26 ------------------------------------------------------- Sugar Bun Corporation Berhad's additional 500,000 new ordinary shares of MYR1 each will be granted listing and quotation on September 26, 2006. The shares were derived from the exercise of 500,00 warrants 2002/2012. About Sugar Bun Corp. Sugar Bun Corporation Bhd -- http://www.sugarbun.com/-- is engaged in the operation and franchising of restaurants, bakeries, and confectioneries. Its other activities include general trading of machinery, spare parts and phone cards, investment holding and provision of administrative, management and marketing services. Operations of the Group are carried out mainly in Malaysia. The Company is currently undertaking a corporate and debt restructuring program to wipe out its accumulated losses. As of April 30, 2006, the Company has accumulated losses of MYR46,190,000. TRADEWINDS CORP: Warrants to Exit Official SE List on Oct. 27 ------------------------------------------------------------- Tradewinds Corporation Berhad's warrants 1996/2006 will expire on October 26, 2006. In this regard, trading in the company's warrants will be suspended from October 9, 2006, in order to facilitate the exercise of the Warrants. Subsequently, the warrants will be removed from the Official List of the Securities Exchange on October 27, 2006. About Tradewinds Corp. Tradewinds Corporation Berhad -- formerly known as Pernas International Holdings Berhad -- is focused on a diverse range of business activities, which include plantations, hotels, manufacturing, and properties, and aims to be the premier investment company. The Group has entered into a restructuring scheme to settle debts, curb losses and streamline its operations. In 2004, the Group's debt was significantly restructured with the reorganization of the hotel businesses. The Company also unveiled a new logo after its change of name in July 2004, in line with its corporate re-branding exercise. The Group divested some non-core assets in line with its objective to streamline its businesses. In February 2005, the acquisitions of property development land to diversify earnings and improve cash flow were completed. Tradewinds' 2005 accounts revealed a net loss of MYR48.4 million. ===================== P H I L I P P I N E S ===================== GLOBE TELECOM: Deploys Nokia MSC Server Mobile Softswitch --------------------------------------------------------- Nokia has signed a nationwide supply contract with Globe Telecom Inc. This network modernization deal includes an upgrade of the Globe Telecom circuit switched core network, also enabling fixed mobile convergence. Under the agreement Nokia will renew the core network of Globe Telecom including the upgrade of Nokia mobile switching center into Nokia MSC Server mobile softswitch. Included are also the unique, multitechnology Nokia NetAct(TM) network and service management solution, Nokia Voice over IP Server, and Nokia IP Multimedia Subsystem (IMS). In addition, Nokia will provide implementation, commissioning, systems integration and training services. The deliveries have already started. "The contract with Nokia for an upgrade of our existing MSC to an integrated 2G/3G MSC Server mobile softswitch will enable Globe to offer a whole suite of innovative services to our customers in a cost-efficient manner," says Gerardo C. Ablaza Jr, Chief Executive Officer, Globe Telecom. "These include voice and data applications that can be seamlessly offered across both the 2G and 3G network as well as between the fixed and mobile networks. Services like VoIP, video conferencing, video sharing and other applications will enable Globe to build the digital communities within the Philippines and between the families of overseas Filipino workers." "We are pleased to continue our long-term collaboration with Globe Telecom and enable them to introduce 3G services in the Philippines," says Tapani Sairanen, Account Director, Networks, Nokia. "The Nokia mobile softswitch is an excellent solution for core network optimization, bringing significant cost-savings for operators." Nokia is creating seamless user experiences in converging networks thanks to mobile softswitching and IMS for fixed and mobile. With over 100 customers for its mobile softswitching and over 50 live networks, Nokia is clearly the most experienced mobile softswitching supplier worldwide. Nokia is also the front-runner in IMS for fixed and mobile networks, with over 120 references. Nokia's IMS for fixed and mobile has been in commercial use since 2005. With 20 convergence trials, enabling personalized VoIP and multimedia, Nokia is paving the way for the renewal of fixed networks and the usage of access technologies like WLAN. About Nokia Nokia -- http://www.nokia.com/-- is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia connects people to each other and the information that matters to them with easy-to-use and innovative products like mobile phones, devices and solutions for imaging, games, media and businesses. Nokia provides equipment, solutions and services for network operators and corporations. About Globe Telecom Globe Telecom, Inc. -- http://www.globe.com.ph/-- is one of the country's major telecommunications companies. It was incorporated on January 15, 1935 as a traditional provider of telex/telegram and VSAT services. Thereon, it diversified its business into a cellular, landline and international gateway facility services provider for long distance telephone calls. The Company offers a wide range of telecommunications services to business and residential subscribers, including wireless, wireline and carrier services. It has introduced innovative features like text messaging, Infotext and Handyphone Mobile Office. It also offers caller ID, voice mail, call forwarding and data/fax capabilities. Recently, it launched various services like video messaging, streaming video, wireline data services, over-the-air loading and its latest, MyGLobe G-TV service, which allows subscribers to view selected TV programs on mobile phones, among others. * * * Standard and Poors gave Globe Telecom's Long Term Foreign Issuer Credit and Long Term Local Issuer Credit both a BB+ rating, effective November 3, 2005 and June 23, 2004, respectively. On September 1, 2006, the Troubled Company Reporter - Asia Pacific reported that Standard & Poor's affirmed its ratings on Globe Telecom Inc. at 'BB+', with a stable outlook. NATIONAL POWER: PSALM to Auction Two Decommissioned Power Plants ---------------------------------------------------------------- The Power Sector Assets and Liabilities Management Corp. said that several steel-manufacturing companies have expressed interests in two of National Power Corp.'s decommissioned power plants, Niel V. Mugas of Manila Times reports. The plants are: -- the 225-megawatt Bataan plant; and -- the 200-MW Manila thermal plant According to Manila Times, Froilan Tampinco, PSALM vice president, disclosed a possible auction for the plants by year- end. The paper explains that decommissioned plants are non-operating facilities, and cites PSALM as saying that the sale is intended to raise money out of the scrap materials. Proceeds of the sale of these assets will be used to pay up Napocor's remaining debts, Manila Times notes. Manila Times cites Mr. Tampinco as saying that some 40 foreign and local firms, mostly Chinese companies engaged in the steel and manufacturing industry, have already expressed interest in buying the plants. However, Mr. Tampinco admitted that PSALM has yet to firm up the terms of reference for the bidding, noting that PSALM is studying the possibility of putting up a substantial bid bond to determine bidders who have enough money to participate as a major part of the TOR. PSALM will also conduct a bidders forum for the retired assets on September 29, 2006, to get feedback for valuation and future plans, Manila Times reveals. The paper further reveals that a third-party auctioneer assists PSALM in formulating an appropriate sale strategy for the decommissioned power plants. Besides the Bataan thermal facilities, Napocor also has other decommissioned facilities including the 54-MW Cebu II diesel plant, the 22.3-MW General Santos diesel, and the 108-MW Aplaya diesel power plant, Manila Times relates. About National Power Headquartered in Quezon City, Philippines, National Power Corporation -- http://www.napocor.gov.ph/-- is a state-owned utility that builds and operates nuclear, hydroelectric, thermal, and alternative power generating facilities. It works with independent producers under a build-operate-transfer program. With a generating capacity of more than 11,500 megawatts, Napocor sells electricity to distributors and industrial companies. To comply with the privatization bill approved by the Philippine Congress, the Company has begun selling off its generation assets to help pay for its estimated debt of PHP600 billion. It also separated its transmission operations into a new subsidiary, the National Transmission Corporation. * * * National Power first incurred losses in 1998 after the Asian financial crisis and expensive contract terms from independent power producers. The Company posted a PHP29.9 billion loss in 2004, after a net loss of PHP117 billion in 2003. The Government absorbed National Power's PHP200 billion debt, which was incurred when the government-owned-and-controlled corporation adopted international accounting standards, forcing the Company to report its foreign exchange losses. The Troubled Company Reporter - Asia Pacific reported on April 5, 2006, that for 2005, National Power posted a PHP16- million profit for the first time in seven years, on the Energy Regulation Commission's approval of a rate increase, the use of improved fuel mix and better fuel prices. VITARICH CORPORATION: Court Appoints Rehabilitation Receiver ------------------------------------------------------------ On September 19, 2006, the Regional Trial Court of Malolos, Bulacan, Branch 7, has issued a Stay Order after finding the Petition for Corporate Rehabilitation filed by Vitarich Corporation to be sufficient in form and substance. Accordingly, the Court appointed Eduardo T. Rondain as Rehabilitation Receiver with a bond of PHP500,000. The Troubled Company Reporter - Asia Pacific previously reported that Vitarich has filed a petition before the Court entitled "In the matter of the Petition for Corporate Rehabilitation of Vitarich Corporation," docketed as Civil Case No. 592M-2006. The Stay Order revealed that Vitarich proposed two strategies to effect a viable rehabilitation so that within the proposed period, it will not only be able to pay off its liabilities to its creditors but it, at the termination of the rehabilitation, will have an ample supply of cash to support its operations. The proposed strategies are: 1. restructuring of Vitarich's liabilities in favor of several creditor-banks; and 2. conversion of Vitarich's debts into a receiver's capital notes. The strategies are supported by three programs, which involve a reorganization of Vitarich's operations and product lines, the possible entry of a white knight, and the overhaul of the company's distribution system towards developing a nationwide farmer's enterprise. The rehabilitation plan and the strategies will not disturb the imposed terms and conditions of the creditor-banks because under the plan, interest rates will be graduated and the term of the loans will be increased from 12 years to 15 years. The Order: 1. stays the enforcement of all claims, whether for money or otherwise and whether the enforcement is by court action or otherwise, against petitioner, its guarantors, and sureties not solidarily liable with it; 2. prohibits Vitarich from selling, encumbering, transferring, or disposing in any manner of its properties except in the ordinary course of business; 3. prohibits Vitarich from making any payment of its liabilities outstanding as of September 15, 2006; 4. prohibits Vitarich's suppliers from withholding supply of goods and services in the ordinary course of business for as long as the petitioner makes payment for the services are goods supplied after the issuance of the Order; 5. directs the payment in full of all administrative expenses incurred after the issuance of the Order; 6. directs Vitarich to publish the Order in a newspaper of general circulation in the Philippines once a week for two consecutive weeks; 7. directs all creditors and all interested parties to file and serve the Court and on Vitarch a verified comment on or against the petition, not later than ten days before November 7, 2006. Failure to comply with this requirement will bar creditors from participating in the proceedings. The Court will convene an initial hearing on November 8, 2006, at 8:30 a.m. About Vitarich Vitarich Corporation -- Http://www.vitarich.com/ -- is among the leading integrated producers and wholesalers of poultry and animal feed products in the Philippines. The Company also develops, produces and sells animal health products. It is dedicated to the poultry and feeds industry, committing all of its resources to the production of poultry products, including upstream production activities such as feed milling, and additional ventures where the company's knowledge of the poultry and feeds production process provides it with competitive advantage. In 1988, the Company entered into a joint venture agreement with Cobb-Vantress, Inc. and formed Breeder Master Inc., (formerly Phil-American Poultry Breeders, Inc.) to engage in the production of day-old parent stocks. Cobb-Vantress is 100% owned by Tyson Foods, Inc, the worlds largest chicken company. BMI is 80% owned by Vitarich and 20% owned by Cobb-Vantress. Despite the Company's expansion into other areas, its core business remains rooted in poultry. As of end-2001, contribution to gross sales of the Company's business groups was -- foods 62%, feeds 30%, and farms 8%. VITA is presently engaged in the manufacture and distribution of various poultry products like chicken, animal and aqua feeds, and day-old chicks, among others. * * * The Troubled Company Reporter - Asia Pacific reported on July 10, 2006, that after auditing Vitarich's 2005 annual report, Punongbayan & Araullo raised substantial doubt the Company's ability to continue as a going concern, due to significant losses for the past three years, including net losses worth PHP249.3 million in 2005 and PHP291.2 million in 2004, resulting in significant deficit amounting to PHP1.8 billion as of Dec. 31, 2005. The TCR-AP reported that Vitarich disclosed to the Philippine Stock Exchange that after the Company's annual stockholders' meeting held on June 30, 2006, the company planned to reduce losses by 50% to around PHP125 million in 2006 by continuously shifting the focus to hog and aqua from chicken and poultry feeds -- to break even. As at December 31, 2005, and 2004, the Company holds 100% interests in Philippines' Favorite Chicken, Inc., and Gromax, Inc., both domestic corporations, the TCR-AP noted. * * * The Troubled Company Reporter - Asia Pacific reported on September 19, 2006, that Vitarich Corporation has filed a petition for corporate rehabilitation with the Regional Trial Court of Malolos City, Bulacan. * PSE to Implement Backdoor Listing Rules on September 28, 2006 --------------------------------------------------------------- The Philippine Stock Exchange will implement its rules on backdoor listing on September 28, 2006, after the Securities and Exchange Commission's approval, James A. Loyola of Manila Bulletin reports. Under the rules, the PSE will allow backdoor listing if the subject firm agrees to fully disclose the details of the transaction entered by it and complies with the suitability requirements for listing, minimum public ownership, and continuing listing requirements of the bourse. These rules will apply concurrently with the SRC rules on mandatory tender offer and other pertinent sections of the PSE's Revised Listing and Disclosure Rules. Malaya also reveals that fees almost equivalent to a fresh initial public offer are also set, for corporations trying backdoor listing. According to Malaya, some corporation resort to backdoor listing to dodge payment of high listing fees and strict disclosure requirements. The term "backdoor listing" refers the purchase or merger with a listed company by an unlisted corporation, Malaya explains. Malaya states that under the new rules, companies buying listed companies will be required to comply with the full disclosure requirements, suitability requirements, rule on minimum public ownership, continuing listing requirements of the Exchange, submission of proof of stockholders' approval, and payment of the appropriate fees, the PSE said in a statement. The listed fee and processing fee payments is equivalent to one- tenth of 1% of the market capitalization of the new shares issued covering the transaction. The listed company will also pay a non-refundable processing fee of PHP250,000 plus other incidental expenses, Malaya notes. At present listing fees while graduated do not veer away much from the new fees, Malaya notes. A full-text copy of the rules is available for free at: http://www.pse.org.ph/html/NewsRoom/pdf/backdoor-MemoforBrokers- final%20rule.pdf * * * "Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured rating to the Republic of Philippines' proposed new bond issue that will mature in 2024, as well as the new debt under the series of 7.75% Global Bonds due in 2031. The government is offering these bonds in exchange for some of its existing debt. At the same time, Standard & Poor's also affirmed its 'BB-' ratings on the bonds that are eligible for exchange." ================= S I N G A P O R E ================= AMARANTH ADVISORS: Announces Loss, Reels From Falling Gas Prices ---------------------------------------------------------------- Hedge fund manager Amaranth Advisors has informed its investors of significant losses in their energy-related investments after a dramatic move in natural gas prices. The slump in natural gas prices could cost more than 35% of the fund's investment, Matthew Robinson at Reuters reports. Industry analysts have speculated the loss could hurt Amaranth and drive investors away, CNNMoney disclosed. In the wake of Amaranth's losses, Connecticut Attorney General Richard Blumenthal renewed his call for greater transparency in the hedge fund industry. Mr. Blumenthal said Tuesday he is collecting evidence and reviewing facts concerning the large losses at Amaranth Advisors. "We are collecting evidence and reviewing facts relevant to recent hedge fund losses," Blumenthal said. "Particularly problematic are alleged representations made to investors in recent weeks by the management of Amaranth that may be contrary to apparent facts. Such claims -- if made -- would contradict the spirit and letter of current law. The facts about mammoth losses by Amaranth offer additional powerful and compelling evidence about the need to reform disclosure and oversight requirements," Mr. Blumenthal said. Amaranth Advisors, based in Greenwich, Connecticut with offices in Toronto, Canada, London, England and Singapore, is an investment management firm. Amaranth specializes in a broad spectrum of alternative investments and trading strategies, through a multi-strategy investment fund and fund dedicated to long-short equities. Amaranth Advisors has approximately US$3.2 billion under management. AMARANTH ADVISORS: Transfers Energy Trades to Citadel & JPMorgan ---------------------------------------------------------------- Amaranth Advisors has transferred its energy portfolio to Citadel Investment Group and J.P. Morgan Chase & Co., Ann Davis at the Wall Street Journal reports. In a letter to investors obtained by Reuters, Nick Maounis, Amaranth's founder and CEO, confirmed the completion of the transfer to a third party. Amaranth intends to provide additional information on the transfer soon. News of Amaranth's move to transfer its entire energy investment portfolio follows the Fund's announcement on Monday that it has incurred significant losses in energy-related investments after a dramatic move in natural gas prices. Ms. Davis reports that negotiations to divest Amaranth's energy investment began before news of the loss came out. According to Ms. Davis, the transfer is designed to minimize the risk that Amaranth has to close down its entire fund. Mathew Goldstein, writing for TheStreet.com, points to brewing speculation that Amaranth may be close to closing its operations. Reuters reported Tuesday that Amaranth sold over EUR1 billion of its European loan portfolio to cover losses sustained from the natural gas price plunge. However, according to Dow Jones Newswires, The New York Mercantile Exchange said that Amaranth's clearinghouse is not currently in trouble. Amaranth Advisors, based in Greenwich, Connecticut with offices in Toronto, Canada, London, England and Singapore, is an investment management firm. Amaranth specializes in a broad spectrum of alternative investments and trading strategies, through a multi-strategy investment fund and fund dedicated to long-short equities. COLLINS & AIKMAN: Court OKs Settlement with Valiant and MOBIS ------------------------------------------------------------- The United States Bankruptcy Court for the Eastern District of Michigan approved a stipulation resolving disputes over a claim asserted by Valiant Tool & Mold, Inc., against Collins & Aikman Corporation and its debtor-affiliates. As reported by the Troubled Company Reporter on Aug. 16, 2006, MOBIS Alabama, LLC, ordered various tooling, molds and other personal property from the Debtors pursuant to certain purchase orders. The Debtors out-sourced the manufacture of the Mold to Valiant Tool & Mold, Inc., and Valiant manufactured and delivered the Mold to the Debtors prepetition. Valiant said that US$64,780 remains due and owing from the Debtors for the Mold. Valiant also said that it holds valid and perfected liens in the Mold. The Debtors also possessed certain other Tooling that is separate and distinct from the Mold. The Debtors believe that US$2,318,843 remains due and owing from MOBIS for receivables related to the Tooling. Marc J. Carmel, Esq., at Kirkland & Ellis LLP, in Chicago, Illinois, related that MOBIS wants to assume ownership of the Tooling and related data, drawings, specifications and other information. MOBIS also wants the right to demand and take possession of the Tooling and copies of the Debtors' maintenance, repair and engineering change records. Moreover, General Electric Capital Corporation asserted that it has a perfected first priority lien in all of the Debtors' prepetition receivables until it is paid for all amounts outstanding under an Amended and Restated Receivables Purchase Agreement dated as of Dec. 20, 2001. After conducting extensive arm's-length negotiations, the Parties agreed to enter a Stipulation, which provides that: (a) In full satisfaction of Valiant's US$64,780 claim for the Mold, MOBIS will pay to Valiant, on the Debtors' behalf, US$57,280 and Valiant will repay to the Debtors all amounts that they have already paid; (b) In satisfaction of GECC's receivable from the Debtors under the Receivables Purchase Agreement, MOBIS will pay, on the Debtors' behalf, US$2,261,563 to GECC; (c) The Mold Payment and the Receivable Payment are in full, final and complete satisfaction of the Debtors' claim that US$2,318,843 remains due and owing from MOBIS to the Debtors for the Receivable; (d) The Debtors will waive their right to: (i) commence avoidance actions against Valiant solely on account of the alleged Valiant Liens in the Mold or the Mold Payment and; (ii) challenge the perfection of the Valiant Liens; and (e) MOBIS will take title to the Tooling and related data, drawings, specifications and other information, free and clear of all liens, claims, encumbrances and other interests. About Collins & Aikman Headquartered in Troy, Michigan, Collins & Aikman Corporation -- http://www.collinsaikman.com/-- is a supplier of instrument panels, automotive fabric, plastic-based trim, and convertible top systems. The Company has a workforce of approximately 23,000 and a network of more than 100 technical centers, sales offices and manufacturing sites in 17 countries throughout the world. The Company and its debtor-affiliates filed for chapter 11 protection on May 17, 2005 (Bankr. E.D. Mich. Case No. 05- 55927). Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represents C&A in its restructuring. Lazard Freres & Co., LLC, provides the Debtor with investment banking services. Michael S. Stammer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors Committee. When the Debtors filed for protection from their creditors, they listed US$3,196,700,000 in total assets and $2,856,600,000 in total debts. (Collins & Aikman Bankruptcy News, Issue No. 38; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) COLLINS & AIKMAN: Will Sell Laminates Asset to SW Foam ------------------------------------------------------ The United States Bankruptcy Court for the Eastern District of Michigan allowed Collins & Aikman Corporation and its debtor- affiliates to: -- sell certain assets of Southwest Laminates, Inc., to SW Foam, L.P. pursuant to the terms of an Purchase Agreement; -- pay a US$29,600 break-up fee to SW Foam in the event a sale is consummated with another bidder; and -- reject the lease of the SW Laminates facility. SW Laminates, part of the Debtors' Fabrics Business Unit, laminates rolled textile goods for the North American automotive industry. The salient terms of the Purchase Agreement are: (1) The aggregate cash consideration for the acquired assets is equal to US$740,000. (2) The Acquired Assets include all of the assets and properties that are being sold and transferred to SW Foam, including a Technology License Agreement, Permit No. 38517, any Intellectual Property of SW Laminates relating exclusively to the Acquired Assets and all of the fixed assets of the business of SW Laminates at its facility. (3) Assets that are being retained by the Debtors and are not being sold or transferred to SW Foam include cash, certain claims and causes of action, rights under insurance policies and certain corporate documents. (4) SW Foam will assume a US$19,795 administrative penalty assessed against SW Laminates by the Texas Commission on Environmental Quality. (5) Excluded liabilities in the sale include accounts payable, certain tax liabilities, employee liabilities and environmental claims. (6) SW Laminates has the right to market the Acquired Assets to third parties and is entitled to consider and enter into alternative transactions with them. (7) In the event that SW Laminates accepts an Alternative Transaction and the Purchase Agreement is terminated, SW Laminates will pay to SW Foam $29,600, which is 4% of the Purchase Price. The Break-Up Fee will constitute an allowed administrative expense and will be paid from the proceeds of an Alternative Transaction, at the time that transaction is consummated. About Collins & Aikman Headquartered in Troy, Michigan, Collins & Aikman Corporation -- http://www.collinsaikman.com/-- is a supplier of instrument panels, automotive fabric, plastic-based trim, and convertible top systems. The Company has a workforce of approximately 23,000 and a network of more than 100 technical centers, sales offices and manufacturing sites in 17 countries throughout the world. The Company and its debtor-affiliates filed for chapter 11 protection on May 17, 2005 (Bankr. E.D. Mich. Case No. 05- 55927). Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represents C&A in its restructuring. Lazard Freres & Co., LLC, provides the Debtor with investment banking services. Michael S. Stammer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors Committee. When the Debtors filed for protection from their creditors, they listed US$3,196,700,000 in total assets and US$2,856,600,000 in total debts. (Collins & Aikman Bankruptcy News, Issue No. 38; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) DELL INC: Faces Lawsuits Over Alleged Accounting Overstatements --------------------------------------------------------------- The law firm of Stull, Stull & Brody announces that securities fraud class actions have been commenced against Dell, Inc. over allegations that the company reported inflated financial results for certain fiscal periods. Stull, Stull & Brody is also investigating whether fiduciaries of the Dell Inc. 401(k) Plan and the Dell Financial Services LP 401(k) Plan (Dell's 401(k) retirement plans may have violated the Employee Retirement Income Security Act of 1974 by failing to disclose the company's true financial condition to participants in the company's 401(k) plans, and by offering Dell common stock as an investment option under the company's 401(k) plans when it was not prudent to do so. For more details, contact Edwin J. Mills, Esq. or Tzivia Brody, Esq. of Stull, Stull & Brody, Phone: (800) 337-4983, Fax: (212) 490-2022, E-mail: ssbny@aol.com, Web site: http://www.ssbny.com. About Dell Inc. Dell, Inc. (NASDAQ: DELL) -- http://www.dell.com-- designs, develops, manufactures, markets, sells, and provides support for various computer systems and services to customers worldwide. In Asia, Dell is headquartered in Singapore, with manufacturing facilities in Malaysia and China and regional offices in these Asia Pacific countries: Australia, China, India, Indonesia, Japan, Korea, Malaysia, Philippines, Taiwan, Thailand and Singapore. Troubled Company Reporter - Asia Pacific reports that the company disclosed that it is unable to file its quarterly report because of questions raised in connection with an informal investigation by the United States Securities and Exchange Commission into certain accounting and financial reporting matters and the subsequently initiated independent investigation by the Audit Committee of its board of directors. FREESCALE SEMICONDUCTOR: Develops Multi-Chip Products with ELMOS ---------------------------------------------------------------- Freescale Semiconductor and ELMOS Semiconductor are joining forces to deliver innovative multi-chip products designed to embed a higher level of intelligence into next-generation automotive systems. The two industry leaders plan to co-develop application-specific semiconductor products or ASSPs that combine Freescale's high-performance 16-bit microcontroller architectures with ELMOS' high-voltage CMOS ASSPs. The jointly developed and manufactured semiconductor products are expected to provide reliable, cost-effective solutions for the global automotive market. As nodes in the car grow more intelligent, automotive customers will benefit from intelligent distributed control products designed to bring high performance to localized applications in the car. In addition, the alliance will enable the development and manufacturing of smart sensor and actor nodes with direct bus-link functionality. "Freescale and ELMOS are partnering to create significant value for our automotive customers and drive innovation in the automotive industry," said Paul Grimme, senior vice president and general manager of Freescale's Transportation and Standard Products Group. "When the first jointly developed IDC products reach the market, Freescale's and ELMOS' customers will reap the benefits of greater design flexibility, reliability and faster time to market." The first multi-chip development projects are planned to integrate Freescale's well-established 16-bit S12/S12X architecture with an ELMOS ASSP design. As the most widely adopted 16-bit MCU architecture for the automotive market, Freescale's S12-based devices are now shipping at a rate of more than 100 million units per year. Freescale's collaboration with ELMOS expands the market reach of the S12 architecture into ELMOS' IDC solutions based on multi-chip devices. "Freescale and ELMOS ultimately plan to drive a dedicated line of intelligent co-integrated products for a broad range of automotive applications," said Dr. Anton Mindl, CEO of the ELMOS Semiconductor AG. "The combination of Freescale's and ELMOS' complementary semiconductor design and manufacturing expertise is expected to accelerate the introduction of next-generation system-in-package control devices." The key focus of the collaboration is the jointly developed interface that combines integrated circuits from both companies. At each stage of development, Freescale and ELMOS engineers plan to work closely together to enable innovative multi-chip solutions designed to meet high quality standards. The drivers of the Freescale/ELMOS alliance include Juergen Weyer, vice president and general manager of Freescale's transportation business in Europe, and Dr. Frank Rottmann, member of the board for sales and development of ELMOS. Freescale and ELMOS are focusing development efforts on a wide range of target applications, including body control solutions, remote motor control units for comfort functions, and safety applications. The first jointly developed products are planned to enter the automotive market in 2007. About Freescale Based in Austin, Texas, Freescale Semiconductor, Inc. (NYSE:FSL) (NYSE:FSL.B) -- http://www.freescale.com/-- designs and manufactures embedded semiconductors for the automotive, consumer, industrial, networking and wireless markets. Freescale became a publicly traded company in July 2004. The company has design, research and development, manufacturing or sales operations in more than 30 countries. In Latin America, Freescale has operations in Argentina, Brazil and Mexico. Freescale Semiconductor's 7-1/8% Senior Notes due 2014 carry Moody's Investors Service's Ba1 rating. LINDETEVES-JACOBERG: Places Unit Under Voluntary Liquidation ------------------------------------------------------------ Lindeteves-Jacoberg Ltd on September 21, 2006, disclosed that its wholly owned subsidiary, Lindeteves Marketing Services Pte Ltd, was placed under a members' voluntary liquidation pursuant to Section 290(1) of the Companies Act (Cap. 50). In this regard, Lau Chin Huat care of 6 Shenton Way, #32-00, DBS Building Tower Two, Singapore 068809, was appointed as liquidator. LMS was placed under a voluntary liquidation because since 2003, it has remained dormant. The liquidation of LMS won't have any material impact on the company. About Lindeteves-Jacoberg Limited Lindeteves-Jacoberg Limited - http://www.linjacob.com/-- was incorporated in Singapore on December 11, 1947 as part of a Dutch international trading group. Its principal activities consist of investment holding, provision of warehousing and rental services and acting as specialist mechanical and electrical contractor for environmental engineering projects. * * * The company is currently working out further debt restructuring plans for its liabilities, in addition to an earlier approved Scheme of Arrangement with its creditors. PricewaterhouseCoopers, Lindeteves-Jacoberg's independent auditors, raised a significant doubt on the group's ability to continue as a going concern, citing the company's recurring losses and liabilities. MYHOME FURNITURE: Creditors' Proofs of Debt Due on October 3 ------------------------------------------------------------ Myhome Furniture Myhome Furniture & Design Pte Ltd notifies parties-in-interest of its intention to declare its first dividend to creditors. In this regard, the company's creditors are required to file their proofs of claim by October 3, 2006, to Liquidator Timothy James Reid, for them to share in the dividend distribution. The Liquidator can be reached at: Timothy James Reid c/o Ferrier Hodgson 50 Raffles Place #16-06 Singapore Land Tower Singapore 048623 TASS SPECIALITY: Creditors Must Prove Debt by October 9 ------------------------------------------------------- At an extraordinary general meeting held on August 10, 2006, the shareholders of Tass Speciality Products Pte. Ltd. agreed to voluntarily wind up the company's operations and appoint Lau Chin Huat as liquidator. In this regard, creditors are required to submit their proofs of debt by October 9, 2006, for them to share in any distribution the company will make. The Liquidator can be reached at: Lau Chin Huat Lau Chin Huat & Co Blk 150A, Mei Chin Road #02-00 Singapore 140150 =============== T H A I L A N D =============== ADVANCE AGRO: Ratings Unaffected by Military Coup, Moody's Says --------------------------------------------------------------- Moody's Investors Service said on September 20, 2006, that the military coup in Thailand should have no immediate effect on the ratings of Advance Agro Pcl. Advance Agro currently carries Moody's corporate family and senior unsecured bond ratings at B3, with stable outlook. Moody's will closely monitor developments and assess the resultant impact - if any - on the credit profile of the company. Moody's further comment that company's with refinancing requirements in the near term may face higher refinancing risk, should limitations on their accessibility to the bank and capital markets emerge, the rating agency however, will accordingly continue to evaluate the situation and keep the market informed of any rating impact. For government related issuers, principally the PTT group, Moody's does not expect that their ratings -- which have factored in government support -- will be affected, even with a change in the sovereign rating, a scenario that the rating agency does not contemplate at this stage. BANGKOK BANK: Moody's Keeps Ratings Amid Military Coup ------------------------------------------------------ Moody's Investors Service announced on September 20, 2006, that the military coup in Thailand should have no immediate effect on its ratings of the Bangkok Bank. Bangkok Bank currently carries Moody's Bank financial strength rating of D+, and foreign currency long-term/short-term deposit ratings of Baa1/P-2. Moody's will closely monitor developments and assess the resulting impact -- if any -- on the credit profile of Bangkok Bank. Any prolonged, significant slowdown in the economy could weaken the Thai banks' ability to improve profitability and reduce non- performing assets, which are key to the strengthening of their recovering capital bases. Political uncertainty over the past several months has already slowed Thailand's economic growth. The coup will certainly slow it further. It is still too early to tell whether the coup will have a sufficiently negative impact on the economy as to weaken the intrinsic safety and soundness of Thailand's banks. Moody's will accordingly continue to evaluate the situation and keep the market informed of any rating impact. For Export-Import Bank of Thailand, which is a government related issuer (GRI), Moody's does not expect the bank's ratings - which have factored in government support - to be affected unless there is a change in the sovereign rating, a scenario that the rating agency does not contemplate at this stage. BANK OF AYUDHYA: Coup No Immediate Impact on Moody's Ratings ------------------------------------------------------------ Moody's Investors Service announced on September 20, 2006, that the military coup in Thailand should have no immediate effect on Bank of Ayudhya's ratings. BAY currently carries Moody's Bank financial strength rating of E+ (on review for possible upgrade), and foreign currency long- term/short-term deposit ratings of Baa3/P-3. Moody's will closely monitor developments and assess the resulting impact -- if any -- on the credit profile of Bangkok Bank. Any prolonged, significant slowdown in the economy could weaken the Thai banks' ability to improve profitability and reduce non- performing assets, which are key to the strengthening of their recovering capital bases. Political uncertainty over the past several months has already slowed Thailand's economic growth. The coup will certainly slow it further. It is still too early to tell whether the coup will have a sufficiently negative impact on the economy as to weaken the intrinsic safety and soundness of Thailand's banks. Moody's will accordingly continue to evaluate the situation and keep the market informed of any rating impact. For Export-Import Bank of Thailand, which is a government related issuer (GRI), Moody's does not expect the bank's ratings -- which have factored in government support -- to be affected unless there is a change in the sovereign rating, a scenario that the rating agency does not contemplate at this stage. BANK OF AYUDHYA: Shareholders Approve GE Deal --------------------------------------------- Bank of Ayudhya's shareholders approved on September 20, 2006, the issuance of 1.391 billion new shares to GE Capital for THB16 per share, the Bangkok Post reports, citing bank chairman Krit Ratanarak. According to the deal, GE has to pay within 10 days a total of THB22.2 billion for the investment, giving the company a 29.5% stake in Bank of Ayudhya. Shareholdings could be diluted to 25.4% if 1.217 billion warrants are fully exercised by September 2008. The payment is expected to increase the bank's capital to THB42.62 billion from THB28.71 billion. Furthermore, GE also has the right to purchase an additional 609 million common shares over the next five years. If purchased within the first 12 months, the sale price would be at THB16 or based on market prices if purchased later. "I feel good and relieved of any worries about the bank. I have no regrets. As the name says, we are a public company, Mr. Krit said about the deal. Tier-one capital would increase to 14% to 15% of risk assets from 7%, with the bank's overall capital adequacy ratio increasing to 19% to 20% of assets, the Post relates. The central bank requires financial institutions to maintain a minimum capital ratio of 8.5% of assets, with at least half in the form of tier-one capital. * * * Headquartered in Bangkok, Thailand, Bank of Ayudhya Public Co. Ltd. -- http://www.krungsri.com/-- provides a full range of banking and financial services. The bank offers corporate and personal lending, retail and wholesale banking; international trade financing asset management; and investment banking services to customers through its branches. It has branches in Hong Kong, Vietnam, Laos, and the Cayman Islands. * * * Moody's Investors Service gave Bank of Ayudha an 'E+' bank financial strength rating. Fitch Ratings gave the bank a 'BB+' Long-Term Foreign Currency Issuer Default Rating, a 'B' Short-Term Foreign Currency Rating, a 'BB' Foreign Currency Subordinated Debt Rating, and a 'D' Individual Rating. G STEEL: Moody's Shaves Bond Ratings to B2 from B1 -------------------------------------------------- Moody's Investors Service on September 21, 2006, downgraded G Steel's corporate family and senior unsecured bond ratings from B1 to B2. This rating action follows the company's announcement that it has completed the purchase of up to US$180 million in NSM convertible bonds, which will allow G Steel to convert into approximately 33% stake in NSM over the next 18 months. The ratings outlook is stable. This concludes the review for possible downgrade begun on June 27, 2006. "Despite the potential synergies and improved domestic market position arising from the alliance with NSM, the downgrade reflects Moody's concern over G Steel's weakened financial profile as a result of additional US$120 million debt on balance sheet and its aggressive growth appetite," says lead analyst Angela Choi. The latter includes, for example, the company's interest in a majority debt-funded investment in NSM -- an entity undergoing debt restructuring. At the same time, G Steel is implementing its own expansion plan. Accordingly, integration risk is apparent coupled with the possibility that it may have to extend financial support to NSM, given its commitment and deep involvement in terms of operations and management for the next 10 years. In accordance with Moody's global rating methodology for steel companies, G Steel's overall performance measurements, relative to the rating methodology, indicate a low Ba rating category, however, its B2 final rating is constrained by the following: * execution risk of its expansion program; * aggressive growth appetite; * limited track record of profitable operations across the industry cycle; * history of debt restructuring; and * lack of long-term sales contracts which is partially mitigated by its long-established relationships with customers. The rating further considers its ownership structure, which may entail some uncertainty, given potential major shareholder pressure for capital up-streaming. Such concern is, however, partially mitigated by the bond indenture that limits dividend payouts to below 50% of consolidated net income. Moody's notes that G Steel has funded the debt portion of NSM investment through a one-year bridge loan, leading to a refinancing risk in the next 12 months. The stable outlook incorporates Moody's expectation that G Steel will put in place an appropriate refinancing plan over the next 6 to 9 months Failure to do so will increase pressure on the rating. Downward rating pressure could also emerge if: 1) its operating and liquidity profiles weaken further due to poor management of working capital or negative impact from a prolonged military coup in Thailand, 2) the capex program does not proceed as planned, with substantial cost overruns and delay in completion, 3) HRC prices decline, such that steel prices fall beyond Moody's expectations, or 4) G Steel provides financial support to NSM, or undertakes further aggressive debt-funded capital investment plans. The key credit metrics that Moody's would consider for a downgrade include average EBIT/interest falls below 1.0 -- 1.2x and average Adj.Debt / EBITDA rises above 4.5x over the cycle. On the other hand, upside potential for the rating is limited in the near term. But, positive rating pressure would emerge over time if G Steel: 1) demonstrates its ability to satisfactory complete its capex program underway; 2) improve its working capital management and profitability through the industry cycle; and 3) successfully integrate and achieve synergies from its strategic alliance with NSM. G Steel Public Company Ltd, headquartered in Bangkok, Thailand, produces HRC in different grades and gauges. G Steel is a stand-alone operating entity with no related group companies. GOVT. HOUSING BANK: Ratings Unaffected by Coup, Moody's Says ------------------------------------------------------------ Moody's Investors Service announced on September 20, 2006, that the military coup in Thailand should have no immediate effect on Government Housing Bank of Thailand's ratings. The bank currently carries Moody's Bank financial strength rating of E+, and foreign currency long-term/short-term deposit ratings of Baa1/P-2. Moody's will closely monitor developments and assess the resulting impact -- if any -- on the credit profile of Bangkok Bank. Any prolonged, significant slowdown in the economy could weaken the Thai banks' ability to improve profitability and reduce non- performing assets, which are key to the strengthening of their recovering capital bases. Political uncertainty over the past several months has already slowed Thailand's economic growth. The coup will certainly slow it further. It is still too early to tell whether the coup will have a sufficiently negative impact on the economy as to weaken the intrinsic safety and soundness of Thailand's banks. Moody's will accordingly continue to evaluate the situation and keep the market informed of any rating impact. For Export-Import Bank of Thailand, which is a government related issuer (GRI), Moody's does not expect the bank's ratings - which have factored in government support - to be affected unless there is a change in the sovereign rating, a scenario that the rating agency does not contemplate at this stage. KASIKORN BANK: Moody's Says Coup No Immediate Impact on Ratings --------------------------------------------------------------- Moody's Investors Service announced on September 20, 2006, that the military coup in Thailand should have no immediate effect on Kasikorn Bank's ratings. The bank currently carries Moody's Bank financial strength rating of D+, foreign currency long-term/short-term deposit ratings of Baa1/P-2 and foreign currency subordinated debt rating of Baa2. Moody's will closely monitor developments and assess the resulting impact -- if any -- on the credit profile of Bangkok Bank. Any prolonged, significant slowdown in the economy could weaken the Thai banks' ability to improve profitability and reduce non- performing assets, which are key to the strengthening of their recovering capital bases. Political uncertainty over the past several months has already slowed Thailand's economic growth. The coup will certainly slow it further. It is still too early to tell whether the coup will have a sufficiently negative impact on the economy as to weaken the intrinsic safety and soundness of Thailand's banks. Moody's will accordingly continue to evaluate the situation and keep the market informed of any rating impact. For Export-Import Bank of Thailand, which is a government related issuer (GRI), Moody's does not expect the bank's ratings -- which have factored in government support -- to be affected unless there is a change in the sovereign rating, a scenario that the rating agency does not contemplate at this stage. KRUNG THAI: Military Coup no Immediate Impact on Moody's Ratings ---------------------------------------------------------------- Moody's Investors Service announced on September 20, 2006, that the military coup in Thailand should have no immediate effect on Krung Thai Bank's ratings. The bank currently carries Moody's Bank financial strength rating of D, and foreign currency long-term/short-term deposit ratings of Baa1/P-2. Moody's will closely monitor developments and assess the resulting impact -- if any -- on the credit profile of Krung Thai Bank. Any prolonged, significant slowdown in the economy could weaken the Thai banks' ability to improve profitability and reduce non- performing assets, which are key to the strengthening of their recovering capital bases. Political uncertainty over the past several months has already slowed Thailand's economic growth. The coup will certainly slow it further. It is still too early to tell whether the coup will have a sufficiently negative impact on the economy as to weaken the intrinsic safety and soundness of Thailand's banks. Moody's will accordingly continue to evaluate the situation and keep the market informed of any rating impact. For Export-Import Bank of Thailand, which is a government related issuer (GRI), Moody's does not expect the bank's ratings -- which have factored in government support -- to be affected unless there is a change in the sovereign rating, a scenario that the rating agency does not contemplate at this stage. ********* 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 James 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. 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