/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/061005.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 Thursday, October 5, 2006, Vol. 9, No. 198 Headlines A U S T R A L I A & N E W Z E A L A N D ADRIATIC LEATHER: Will Declare Dividend on Oct. 18 ANGLO ANTARCTIC: Appoints Michael Stephen Royal as Liquidator ANGLO ARCTIC: Members Resolve to Close Business ANGLO INDIAN: Enters Voluntary Liquidation ANSELL LIMITED: S&P Affirms 'BB+' Long-Term Corp. Credit Rating CHERON PTY: Inability to Pay Debts Prompts Wind-Up CLINICALL PTY: To Declare Dividend on October 19 COWRA ABATTOIR: D. Mulligan is Top Priority Creditor DIOSMA PTY: Creditors' Proofs of Claim Due on October 5 DJW HOLDINGS: Enters Wind-Up Proceedings DUNSHEA FINANCIAL: Liquidator to Present Wind-Up Report FELTEX CARPETS: Cuts 124 Jobs and Closes Marton Plant FELTEX CARPETS: ANZ Recovers AU$140 Million Feltex Loan FF SERVICES: Falls into Voluntary Liquidation FREEMONT DESIGN: Liquidation Bid Hearing Slated for Nov.23 FURZER CRESTANI: Members Agree to Liquidate Business H W D BRUCE: Commences Liquidation on September 12 HARMAN CHALLENGE: Supreme Court Orders Wind-Up INTEGRATED PLASTIC: Court to Hear Liquidation Bid on Oct.12 IPF VA: Court to Hear Liquidation Bid on Oct. 9 JADCO INVESTMENTS: Names Burgess as Liquidator FF SERVICES: Falls into Voluntary Liquidation FREEMONT DESIGN: Liquidation Bid Hearing Slated for Nov.23 FURZER CRESTANI: Members Agree to Liquidate Business H W D BRUCE: Commences Liquidation on September 12 HARMAN CHALLENGE: Supreme Court Orders Wind-Up INTEGRATED PLASTIC: Court to Hear Liquidation Bid on Oct.12 IPF VA: Court Sets Date to Hear Liquidation Bid JADCO INVESTMENTS: Names Burgess as Liquidator JAMES HARDIE: Will Protect Officers from ASIC Investigation JUMP START: Shareholders Opt for Voluntary Liquidation KR CONTRACTING: Members' and Creditors' Meeting Set on Oct. 19 LEISURE WOOD: Faces Liquidation Proceedings MACADAMIA KING: Commences Wind-Up of Operations MARSH & PARTNERS: To Distribute Third Dividend on October 13 MCKINLEY COMPANY: To Declare First and Final Dividend MERIDIAN INTERIOR: Members Opt to Close Business NO COMMISSION: Appoints Ward as Official Liquidator P. MCCUBBERY: Placed Under Voluntary Wind-Up PARKES INTERNATIONAL: Court Issues Wind-Up Order PETERPHYL HOLDINGS: Members Agree to Close Business PINNACLE SHEETMETAL: Members and Creditors to Meet on October 20 RAH SERVICES: To Declare First and Final Dividend on October 18 RD MOYLE: Members' Final Meeting Set for October 18 REXUNU PTY: Final Meeting Slated for October 11 RUCKSACK PTY: To Hold Final Meeting on October 18 SPA AT THE SCENE: Hearing of Liquidation Bid Fixed on Nov.2 STOCKFORD BUSINESS: To Declare Third Dividend on October 13 THE RESPONSE STAFFING: Court Issues Wind-Up Order VILLA DEVELOPMENTS: Liquidator Bates to Present Wind-Up Report W.B.M. (HOLDINGS): Members Resolve to Wind Up Operations WAIKAN EMPLOYMENT: To Declare Dividend on October 20 WESTPOINT GROUP: Ann Street Mezzanine Declares First Dividend WORLEY ABB: Members Opt to Shut Down Operations C H I N A & H O N G K O N G ADVANCED WIRELESS: Faces Wind-Up Proceedings AFFILIATED COMPUTER: Asks Dist. Court's "No Default" Declaration ALROCO COMPANY: To Declare First and Final Dividend on Oct. 23 ART DATA: Wind-Up Petition Hearing Set on November 8 BENQ CORP: German Unit Turnaround to Cost Around US$1.07 Billion BENQ CORP: Funding Cut to Unit Has No Sudden Impact on Ratings DR. B.M KOTEWALL: Creditors' Proofs of Claim Due on October 28 EASTERN ALPHA: Appoints Jacky CW Muk as Liquidator EVER SINO: Appoints Lam Tak Keung as Liquidator FAVOUR ART: Annual Meeting Slated for October 6 FERRO CORP: S&P Holds Low-B Corp. Credit & Sr. Unsec. Debt Rtgs. FGX INTERNATIONAL: Moody's Assigns Loss-Given-Default Ratings GB BONTEX: Creditors Must Prove Debts by October 20 HONG KONG OPTICAL: Court Sets Date to Hear Wind-Up Bid KARLSTEAD LTD: Liquidators to Present Wind-Up Report LOYAL FRIEND: Creditors' Proofs of Debt Due on November 10 MAXIPO TECHNOLOGY: Members to Receive Wind-Up Report MEDMIRA INC: Completes Draw Down of Cornell Capital's Equity L/C MONANCE LTD: Members' Final Meeting Set on November 1 PHILIPS MEDICAL: Creditors to Prove Claims on October 31 PRICE WATERHOUSE: Joint Liquidators Step Aside REGENT BONUS: Liquidator Ceases to Act for the Company SINO GREETINGS: Names Lam Tak Keung as Liquidator SOL MELIA: Creditors to Receive Wind-Up Report TREASURE ART: Members and Creditors to Meet on October 6 YUEN KEE: Creditors to Meet on October 18 I N D I A AES CORP: S&P Says Unit's Offering Won't Affect Credit Rating AMERICAN AXLE: Moody's Assigns Loss-Given-Default Ratings BALLY TECH: To Provide Casino Management System to Mohegan Sun BHARTI AIRTEL: Appoints Atul Bindal as Joint President CANARA BANK: To Raise US$300-Million through Bond Issue in Nov. CENTURION BANK: Shareholders Approve Lord Krishna Merger CITY UNION BANK: Board Names Shri N Kantha Kumar as Director EMCO LTD: CoD to Meet on Oct. 9 to Consider Share Allotment I N D O N E S I A FOSTER WHEELER: Secures New US$350-Mil. Domestic Credit Facility PERUSAHAAN LISTRIK: Moody's Assigns B1 Rating to USD Bond Issue PERUSAHAAN LISTRIK: Proposed USD Notes Gets S&P's BB- Rating J A P A N BANK OF IKEDA: JCR Places A- Ratings on Subordinated Bonds CHIBA BANK: Posts JPY13-Billion Net Income For June Quarter EBARA CORP: Completes US$11.7-M Investment in Ballard Power MITSUBISHI MOTORS: North American Sales Soar in September 2006 MITSUBISHI MOTORS: Global Production, Sales Up in August 2006 SOJITZ CORP: Group Forms Alliance with Deutsche Lufthansa SOJITZ CORP: VARIG Injunction Continued Until October 27 K O R E A KOOKMIN BANK: Moody's Confirms Financial Strength Rating at D+ KOREA EXCHANGE: Named 2006 Best Domestic Provider of FX Services PUSAN BANK: Aberdeen Asset Management Increases Stake to 10.38% PUSAN BANK: Loan Delinquency Ratio in 2nd Quarter is 0.88% SK CORP: Adds CZP and EPC Munai to Affiliated Companies * South's Bond Price Reacts to North's Nuclear Test Plans M A L A Y S I A CHIN FOH: Posts MYR3-Million Loss for 2006 2nd Quarter DIGITAL LIGHTWAVE: Has US$58 Million Stockholders' Deficit KIG GLASS: Still Unable to Pay Loan Payment Default LITYAN HOLDINGS: Will Remove Securities from SC on October 13 MENTIGA CORPORATION: Regularizes Financial Condition MOL.COM BERHAD: Subsidiary Inks Sale Deal with Halex Woolton PANGLOBAL BERHAD: Hearing of Restraining Order Moved to Oct. 9 VERIFONE INC: S&P Rates Proposed US$540 Million Facility at BB- P H I L I P P I N E S * Philippine Inflation Likely Eased in September, Economists Say * World Bank Approves US$410-Million Loan Package S I N G A P O R E AAR CORP: Moody's Assigns Loss-Given-Default Ratings ARINC INCORPORATED: Moody's Assigns Loss-Given-Default Ratings DEFAR (S) PTE: UOB Files Wind-Up Petition Against Company LINENCARE LAUNDRY: Court to Hear Wind-Up Petition on Oct. 13 LKN-PRIMEFIELD: Changes Name to HLG Enterprise Limited MAE ENGINEERING: Inks Purchase Agreement with Eligro SEE HUP SENG: Unveils Major Shareholders' Changes of Interest SOUTH-EAST MOTOR: Creditors Must Prove Debts by October 9 T H A I L A N D SRITHAI FOOD: Posts THB30.518-Million Net Loss in 2006 1st Half TOTAL ACCESS: Seeks NTC Action Against AIS Price-Dumping TRUE CORP: Launches Two New Phone Packages for Hearing-Impaired - - - - - - - - ============================================ A U S T R A L I A & N E W Z E A L A N D ============================================ ADRIATIC LEATHER: Will Declare Dividend on Oct. 18 -------------------------------------------------- Adriatic Leather Pty Ltd will declare the first and final dividend for its creditors on October 18, 2006. Creditors who were not able to prove their claims by October 3, 2006, will be excluded in the company's distribution of dividend. According to the Troubled Company Reporter - Asia Pacific, the Company commenced a wind-up of its operations on December 22, 2005. The Liquidator can be reached at: Nicholas Crouch Crouch Insolvency Chartered Accountants Level 28, St Martins Tower 31 Market Street Sydney, New South Wales 2000 Australia ANGLO ANTARCTIC: Appoints Michael Stephen Royal as Liquidator ------------------------------------------------------------- At an extraordinary general meeting held on September 7, 2006, members of Anglo Antarctic Pty Ltd resolved to voluntarily wind up the company's operations. In this regard, Michael Stephen Hawkins Royal was appointed as liquidator at the creditors' meeting held that same day. The Liquidator can be reached at: Michael Stephen Hawkins Royal Business Improvement and Restructuring Services Suite 9, 305-307 The Kingsway Caringbah, New South Wales 2229 Australia Telephone:(02) 9531 8365 Facsimile:(02) 9531 8367 ANGLO ARCTIC: Members Resolve to Close Business ----------------------------------------------- On September 7, 2006, the members of Anglo Arctic Pty Ltd held an extraordinary general meeting and agreed to voluntarily wind up the company's operations. Subsequently, the company's creditors appointed Michael Stephen Hawkins Royal as liquidator. The Liquidator can be reached at: Michael Stephen Hawkins Royal Business Improvement and Restructuring Services Suite 9, 305-307 The Kingsway Caringbah, New South Wales 2229 Australia Telephone:(02) 9531 8365 Facsimile:(02) 9531 8367 ANGLO INDIAN: Enters Voluntary Liquidation ------------------------------------------ Members of Anglo Indian Pty Ltd held an extraordinary general meeting on September 7, 2006, and agreed to close the company's business. Michael Stephen Hawkins Royal was consequently appointed as liquidator at the creditors' meeting held that same day. The Liquidator can be reached at: Michael Stephen Hawkins Royal Business Improvement and Restructuring Services Suite 9, 305-307 The Kingsway Caringbah, New South Wales 2229 Australia Telephone:(02) 9531 8365 Facsimile:(02) 9531 8367 ANSELL LIMITED: S&P Affirms 'BB+' Long-Term Corp. Credit Rating --------------------------------------------------------------- On October 3, 2006, Standard & Poor's Ratings Services affirmed its 'BB+' long-term corporate credit rating on Ansell Ltd. and revised the outlook on Ansell to positive from stable. "Ansell's rating could be raised to 'BBB-' over the next 18 months-to-two years if the company is able to provide continued evidence of moderate financial policies and strong cash flow- protection measures while growing the business to strengthen its market positions in key segments and extend its product and geographic diversity," Standard & Poor's credit analyst Brenda Wardlaw said. Ansell has maintained its strong and stable cash flow-protection measures over recent years despite the significant upward pressure in key raw material prices and competitive challenges in some businesses. Latex prices rose significantly during fiscal 2006, while synthetic raw materials were also up due to higher oil prices. Ansell also completed the sale of its 50% shareholding in South Pacific Tyres, a key legacy from its Pacific Dunlop Ltd. heritage. The AU$122 million sale proceeds were used to fund an AU$100 million share buyback, given Ansell's modest gearing level. The acquisition of a 75% shareholding in Wuhan Jissbon Sanitary Products, a Chinese condom importer and distributor, for US$18.5 million provides a low-risk opportunity to expand Ansell's sales into this region. The company's decision to cease the proposed bid for Polish condom manufacturer Unimil further demonstrated Ansell's prudent growth strategy. Ansell's ability to maintain a conservative financial profile, despite the sharp rise in raw material prices, is a key rating strength. Ansell's operating lease-adjusted funds from operations to debt was 35.1% in fiscal 2006, down only slightly from 38.1% in 2005, despite the tough operating conditions. CHERON PTY: Inability to Pay Debts Prompts Wind-Up -------------------------------------------------- On September 7, 2006, members and creditors of Cheron Pty Ltd passed a special resolution to voluntarily wind up the company's operations due to its inability to pay debts when they fall due. Accordingly, Richard Albarran and Blair Pleash were appointed as liquidators. The Liquidators can be reached at: Richard Albarran Blair Pleash c/o Hall Chadwick Level 29, 31 Market Street Sydney, New South Wales 2000 Australia CLINICALL PTY: To Declare Dividend on October 19 ------------------------------------------------ Clinicall Pty Ltd will declare the first and final dividend for its unsecured priority and ordinary creditors on October 19, 2006. Creditors who were able to admit their debts by October 3, 2006, are included in the benefit of the dividend. The Deed Administrator can be reached at: Manfred Holzman Holzman Associates GPO Box 3667 Sydney, New South Wales 2001 Australia Telephone:(02) 9222 9070 Facsimile:(02) 9222 9071 COWRA ABATTOIR: D. Mulligan is Top Priority Creditor ---------------------------------------------------- Cowra Abattoir's owner, David Mulligan, has made himself the company's top priority creditor, while the 200 redundant workers are yet to receive a cent of their entitlements, Joe Hildebrand of the Daily Telegraph reports. Mr. Mulligan's personal company has taken over a AU$1 million debt the abattoir owed to National Australia Bank. Thus, instead of the bank being the first to get money it will be P.D. Mulligan Pty Ltd, the report says. The Daily cites a letter to creditors stating liquidator Frasers Insolvency said P.D. Mulligan, a guarantor of the National Australia Bank loan, had discharged the abattoir's debt to NAB and now held the mortgage over the abattoir. According to the paper, Frasers' initial report had advised that the charge held by NAB over the abattoir was enforceable, therefore bank would have to be paid off before any money went towards employee entitlements. The Daily discloses that Mr. Mulligan is charging the abattoir interest at 8%, a rate lesser that that charged by the bank, which is at 18%. According to Mr. Mulligan, the new arrangements would save money and make the abattoir more attractive to potential buyers, the Daily relates. Australian Council of Trade Unions secretary, contends "the No.1 priority for everyone should be to ensure that the employees receive their entitlements." According to The Daily, the abattoir's liquidator is referring the transfer and other matters to the Australian Securities and Investments Commission for investigation of possible breaches of the law. Creditors Meeting A creditors meeting was held on October 4, 2006, during which the meatworkers union was expected to tell its members to vote against a proposal for Frasers to take over the administration of P.D. Mulligan. Union secretary Charlie Donzow asserted that there was a potential conflict of interest in the firm acting as liquidator for the abattoir as well as administrator for its priority creditor, the Daily reports. However, Frasers said the move would simply cut costs, the paper notes. * * * As reported in the Troubled Company Reporter - Asia Pacific on September 13, 2006, the Australian Council of Trade Unions secretary, Greg Combet, accused Cowra Abattoir's owner, David Mulligan, of transferring almost AU$2 million from the NSW company before it collapsed. The abattoir's workers have voted to liquidate the business, the TCR-AP said. The TCR-AP cited a report from The Age, stating that Australasian Meat Industry Employees Union organizer Mark Perkins said that Cowra's 200 workers were owed nearly AU$3 million in entitlements. According to Mr. Perkins, by voting to liquidate the company, it was hoped the workers would receive their entitlements sooner. DIOSMA PTY: Creditors' Proofs of Claim Due on October 5 ------------------------------------------------------- Diosma Pty Ltd will distribute the first and final dividend for its creditors on October 19, 2006. Creditors who cannot prove their debts by October 5, 2006, will be excluded from sharing in the dividend distribution. The Liquidator can be reached at: Samuel Richwol O'Keeffe Walton Richwol Suite 3, 431 Burke Road Glen Iris Australia DJW HOLDINGS: Enters Wind-Up Proceedings ---------------------------------------- The members of DJW Holdings Pty Ltd resolved to wind up the company's operations at a general meeting held on September 8, 2006. Subsequently, Neil Wickenden was appointed as liquidator. The Liquidator can be reached at: Neil Wickenden Level 19, 207 Kent Street Sydney, New South Wales 2000 Australia DUNSHEA FINANCIAL: Liquidator to Present Wind-Up Report ------------------------------------------------------- The members and creditors of Dunshea Financial Services Pty Ltd will hold a final meeting on October 16, 2006, at 11:00 a.m. During the meeting, Liquidator Stephen Jay will report the company's wind-up proceedings and the manner of property disposal. The Liquidator can be reached at: Stephen Jay c/o Nicholls & Co Chartered Accountants PO Box 1250 Dubbo, New South Wales 2830 Australia FELTEX CARPETS: Cuts 124 Jobs and Closes Marton Plant ----------------------------------------------------- According to the Troubled Company Reporter - Asia Pacific on October 4, 2006, receivers for Feltex Carpets Limited explained that redundancies at its Kakariki and Christchurch plants are necessary to support the longer-term viability of the business. In an update, a report from The Dominion Post relates that Feltex slashed 124 jobs and closed its Kakariki wool-scouring plant near Marton. On October 3, 2006, 45 workers at Feltex's Marton plant were told to pack up because the plant was closing due to the restructuring. Moreover, up to 79 workers were made redundant in Christchurch, the report notes. The TCR-AP also noted that Godfrey Hirst intends to offer jobs to 85% of Feltex's 820 New Zealand employees and to all 500 employees in Australia. According to the New Zealand Herald, the job losses, which were negotiated as part of the sale, represent 15% of Feltex's New Zealand workforce. The NZ Herald says Godfrey Hirst is not ruling out further cuts. "Over the next few months, we will carefully and closely examine all aspects of the Feltex operation," the paper cites Godfrey Hirst New Zealand general manager Tania Pauling as saying. "We are pleased this matter has finally reached a conclusion. The outcome will ensure that in the immediate future certainty is returned to employees, customers and suppliers," Ms. Pauling adds. However, The Dominion Post quotes one machine operator from Feilding as stating "it's going to have an effect on the communities around here, they're all small and these jobs are important." Council of Trade Unions chief executive Ross Wilson said the job losses were unnecessary, given the offer for Feltex made by the Turner brothers of Sleepyhead to save all the company, the paper relates. 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. 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. The TCR-AP reported on October 4, 2006, that Godfrey Hirst acquired Feltex as a going concern, including its assets and undertakings in New Zealand, Australia, and the United States Proceeds of the sale will be used to ease the company's NZ$128-million debt to ANZ Bank. FELTEX CARPETS: ANZ Recovers AU$140 Million Feltex Loan ------------------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on October 4, 2006, Feltex Carpets Limited's receivers, McGrathNicol and Partners, have accepted Godfrey Hirst's unconditional offer for Feltex. A follow-up report from the New Zealand Herald relates that ANZ Bank will recover its entire AU$140 million loan to Feltex as part of Feltex's sale of its business to Godfrey Hirst, but creditors owed AU$7.5 million will suffer a loss. The report cites receiver Colin Nicol as saying that Godfrey Hirst has agreed to cover ANZ's loan and employee entitlements when it takes over the business next month. As noted in the TCR-AP report, the handover is anticipated to occur in early November 2006. The ANZ's recovery is in sharp contrast to expectations that ANZ would have to write off some of its loan to rid itself of Feltex, NZ Herald notes, adding that the turn-around may in part reflect the statutory protections the bank gets in a receivership. Godfrey Hirst was advised in New Zealand by investment bank UBS, New Zealand Herald notes. 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. 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. The TCR-AP reported on October 4, 2006, that Godfrey Hirst acquired Feltex as a going concern, including its assets and undertakings in New Zealand, Australia, and the United States Proceeds of the sale will be used to ease the company's NZ$128-million debt to ANZ Bank. FF SERVICES: Falls into Voluntary Liquidation --------------------------------------------- Shareholders of FF Services Ltd resolved on September 11, 2006, to voluntary liquidate the company and appointed Liquidator David Leslie Pearson to oversee the liquidation proceedings. In this regard, creditors of the company are required to prove their debt to the Liquidator by October 11, 2006. The Liquidator can be reached at: David Leslie Pearson Pearsons Chartered Accountants 9A Ngaio Road, Waikanae P.O. Box 577, Wellington New Zealand Telephone: (04) 293 4343 Facsimile: (04) 293 4342 FREEMONT DESIGN: Liquidation Bid Hearing Slated for Nov.23 ---------------------------------------------------------- Hearing of the liquidation petition filed against Freemont Design & Construction Ltd will be held before the High Court of Auckland on November 23, 2006, at 10:45 a.m. Natures View Joinery Ltd filed the petition on September 6, 2006. The Solicitor for the Petitioner can be reached at: Michael Talbot McCaw Lewis Chapman, Solicitors Level One, One on London 1 London Street (P.O. Box 9348 or D.X. G.P. 20-020) Hamilton, New Zealand FURZER CRESTANI: Members Agree to Liquidate Business ---------------------------------------------------- On August 7, 2006, the members of Furzer Crestani & Co Pty Ltd decided to voluntarily liquidate the company's business. Accordingly, Peter Ngan was appointed as liquidator. The Liquidator can be reached at: Peter Ngan Ngan & Co Chartered Accountants Level 5, 49 Market Street Sydney, New South Wales 2000 Australia H W D BRUCE: Commences Liquidation on September 12 ------------------------------------------------- The liquidation of H W D Bruce Ltd commenced with the appointment of John Ivan Farac to act as liquidator on September 12, 2006. The Liquidator can be reached at: John Farac P.O. Box 8722, Symonds Street Auckland New Zealand Telephone: (09) 303 2200 Facsimile: (09) 307 2074 HARMAN CHALLENGE: Supreme Court Orders Wind-Up ---------------------------------------------- The Supreme Court of Victoria ordered the wind-up of Harman Challenge Pty Ltd on September 6, 2006. Accordingly, Adrian Brown was appointed as official liquidator. The Official Liquidator can be reached at: Adrian Brown Ferrier Hodgson Level 29, 600 Bourke Street Melbourne, Victoria 3000 Australia INTEGRATED PLASTIC: Court to Hear Liquidation Bid on Oct.12 ----------------------------------------------------------- A petition to liquidate Integrated Plastic Solutions Ltd will be heard before the High Court of Auckland on October 12, 2006, at 10:45 a.m. Proform Plastics Ltd filed the petition with the Court on July 27, 2006. The Solicitor for the Petitioner can be reached at: Travis Browne Offices of Norris Ward McKinnon Seventh Floor, WEL Energy House corner of Victoria and London Streets (Private Bag 3098), Hamilton New Zealand IPF VA: Court to Hear Liquidation Bid on Oct. 9 ----------------------------------------------- The High Court of Rotorua will hear a liquidation petition filed against IPF VA Ltd on October 9, 2006, at 10:45 a.m. Credit Link Factors Ltd filed the petition with the Court on July 12, 2006. The Solicitor for the Petitioner can be reached at: Ian Oliver Caddis Credit Link Factors Limited 19 Meachen Street, Seaview, Lower Hutt P.O. Box 39-123, Wellington Mail Centre New Zealand JADCO INVESTMENTS: Names Burgess as Liquidator ---------------------------------------------- Raymond Gordon Burgess was appointed on September 12, 2006, to act as Liquidator in the liquidation of Jadco investments Ltd. Accordingly, Mr. Burgess requires the creditors of the company to prove their debts by October 17, 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: Raymond Burgess P.O. Box 82-100, Auckland New Zealand Telephone: (09) 576 7806 Facsimile: (09) 576 7263 FF SERVICES: Falls into Voluntary Liquidation --------------------------------------------- Shareholders of FF Services Ltd resolved on September 11, 2006, to voluntary liquidate the company and appointed Liquidator David Leslie Pearson to oversee the liquidation proceedings. In this regard, the company's creditors are required to prove their debt to the Liquidator by October 11, 2006. The Liquidator can be reached at: David Leslie Pearson Pearsons Chartered Accountants 9A Ngaio Road, Waikanae P.O. Box 577, Wellington New Zealand Telephone: (04) 293 4343 Facsimile: (04) 293 4342 FREEMONT DESIGN: Liquidation Bid Hearing Slated for Nov.23 ---------------------------------------------------------- Hearing of the liquidation petition filed against Freemont Design & Construction Ltd will be held before the High Court of Auckland on November 23, 2006, at 10:45 a.m. Natures View Joinery Ltd filed the petition on September 6, 2006. The Solicitor for the Petitioner can be reached at: Michael Talbot McCaw Lewis Chapman, Solicitors Level One, One on London 1 London Street (P.O. Box 9348 or D.X. G.P. 20-020) Hamilton, New Zealand FURZER CRESTANI: Members Agree to Liquidate Business ---------------------------------------------------- On August 7, 2006, the members of Furzer Crestani & Co Pty Ltd decided to voluntarily liquidate the company's business. Accordingly, Peter Ngan was appointed as liquidator. The Liquidator can be reached at: Peter Ngan Ngan & Co Chartered Accountants Level 5, 49 Market Street Sydney, New South Wales 2000 Australia H W D BRUCE: Commences Liquidation on September 12 ------------------------------------------------- The liquidation of H W D Bruce Ltd commenced with the appointment of John Ivan Farac to act as liquidator on September 12, 2006. The Liquidator can be reached at: John Farac P.O. Box 8722, Symonds Street Auckland New Zealand Telephone: (09) 303 2200 Facsimile: (09) 307 2074 HARMAN CHALLENGE: Supreme Court Orders Wind-Up ---------------------------------------------- The Supreme Court of Victoria ordered the wind-up of Harman Challenge Pty Ltd on September 6, 2006. Accordingly, Adrian Brown was appointed as official liquidator. The Official Liquidator can be reached at: Adrian Brown Ferrier Hodgson Level 29, 600 Bourke Street Melbourne, Victoria 3000 Australia INTEGRATED PLASTIC: Court to Hear Liquidation Bid on Oct.12 ----------------------------------------------------------- A petition to liquidate Integrated Plastic Solutions Ltd will be heard before the High Court of Auckland on October 12, 2006, at 10:45 a.m. Proform Plastics Ltd filed the petition with the Court on July 27, 2006. The Solicitor for the Petitioner can be reached at: Travis Browne Offices of Norris Ward McKinnon Seventh Floor, WEL Energy House corner of Victoria and London Streets (Private Bag 3098), Hamilton New Zealand IPF VA: Court Sets Date to Hear Liquidation Bid ----------------------------------------------- The High Court of Rotorua will hear a liquidation petition filed against IPF VA Ltd on October 9, 2006, at 10:45 a.m. Credit Link Factors Ltd filed the petition with the Court on July 12, 2006. The Solicitor for the Petitioner can be reached at: Ian Oliver Caddis Credit Link Factors Limited 19 Meachen Street, Seaview, Lower Hutt P.O. Box 39-123, Wellington Mail Centre New Zealand JADCO INVESTMENTS: Names Burgess as Liquidator ---------------------------------------------- Raymond Gordon Burgess was appointed on September 12, 2006, to act as Liquidator in the liquidation of Jadco investments Ltd. Accordingly, Mr. Burgess requires the creditors of the company to prove their debts by October 17, 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: Raymond Burgess P.O. Box 82-100, Auckland New Zealand Telephone: (09) 576 7806 Facsimile: (09) 576 7263 JAMES HARDIE: Will Protect Officers from ASIC Investigation ----------------------------------------------------------- The Australian Securities and Investments Commission will launch its first actions against some of James Hardie Industries Limited's former and serving officers by February, the Australian Associated Press relates, citing a News Ltd report. As revealed by The Weekend Australian, the ASIC's first actions will launched when the statute of limitations for some of the alleged offences expires, The Australian says. According to AAP, James Hardie will cover any corporate penalties its current and former officers incur over its asbestos funding scandal. The Age recounts that former Hardie chief executive Peter Macdonald, and former chief financial officer Peter Shafron have been accused of breaking corporate laws in setting up an independent asbestos compensation trust in 2001 with what turned out to be a AU$1 billion-plus shortfall. According to the paper, legal experts said the indemnity agreements would be unlawful for an Australian company. The indemnity agreements came to light in a document James Hardie sent to the US Securities and Exchange Commission, The Age notes. But as a Dutch company, James Hardie may believe it can provide its officers with the protection, the paper says. AAP cites Ian Mutton, CSR's former asbestos litigation lawyer, who now runs his own international corporate law practice, as telling News Ltd the indemnities might have been negotiated with some of the company's officers to ensure they would not "turn coat" and give damning information to authorities. The Australian also cites the head of Melbourne University's Centre for Corporate Law, Professor Ian Ramsay, as saying Section 199 (A) of the corporations law specifically prohibited any entity granting indemnities for penalties imposed for breaches of directors' duties or other misconduct. According to The Age, chairwoman Meredith Hellicar played a key role in the cancellation of AU$1.9 billion of partly paid shares James Hardie had promised the NSW Supreme Court, which would meet some potential Australian asbestos liabilities, The Age reveals. The Australian relates that among the alleged breaches, ASIC is investigating whether some company officers engaged in deceptive or misleading conduct in saying the asbestos compensation trust would be "fully funded", and whether James Hardie unlawfully reduced capital in canceling the partly paid shares. As reported in the Troubled Company Reporter - Asia Pacific on October 3, 2006, James Hardie Industries Limited with the United States Securities and Exchange Commission and the Australian Stock Exchange, its annual report on Form 20-F. According to the TCR-AP, appendices to the Form 20-F include the Final Funding Agreement signed by James Hardie and the NSW Government on December 1, 2005, and associated documents. With respect to the ASIC investigation, The Australian cites James Hardie, as saying in its "20-F" SEC filing: "We may be liable for costs, penalties, fees or expenses incurred by current or former directors, officers or employees of the James Hardie Group to the extent that those costs are covered by indemnity arrangements granted by the James Hardie Group to those persons." James Hardie spokesman Cameron Hamilton explained "the company is obliged under the SEC rules to provide in the risks section possible worst case scenarios that could affect the company without recourse to any ameliorating factors," The Australian relates. James Hardie has admitted the ASIC investigation may seriously damage it, AAP says. About James Hardie James Hardie Industries Limited -- http://www.jameshardie.com/ -- manufactures, markets and distributes fiber cement and gypsum products, fiberglass reinforced plastic and PVC products, sanitary ware and bathroom products, insulating materials and fillers, strippers and adhesives. On July 2, 1998, the then public company announced a plan of reorganization and capital restructuring. James Hardie N.V. was incorporated in August 1998 as an intermediary holding company, with all of its common stock owned by indirect subsidiaries of JHIL. Effective as of November 1998, JHIL contributed its fiber cement businesses, its United States gypsum wallboard business, its Australian and New Zealand building systems businesses and its Australian windows business to JHNV and its subsidiaries. On July 24, 2001, JHIL announced a further plan of reorganization and capital restructuring, which reorganization was completed on October 19, 2001. In connection with the 2001 Reorganization, James Hardie Industries N.V., formerly RCI Netherlands Holdings B.V., issued common shares represented by CHESS Units of Foreign Securities on a one for one basis to existing JHIL shareholders in exchange for their shares such that JHINV became the new ultimate holding company for JHIL and JHNV. Following the 2001 Reorganization, JHINV controls the same assets and liabilities as JHIL controlled immediately prior to the 2001 Reorganization. The Company's troubles began with its "under-funded" allocation for asbestos claims, which were brought in by people who suffer or may have diseases caused by exposure to the asbestos-related products produced by JHIL. In 2001, James Hardie set up an independent entity, Medical Research and Compensation Foundation, to handle asbestos claims. The Foundation has warned that it could run out of money within five years. The Asbestos Diseases Foundation of Australia and workers unions called for all the Company's asbestos profits to be immediately placed in the fund. James Hardie was later accused of topping up the dwindling asbestos fund it established. By 2004, James Hardie's former asbestos manufacturing subsidiaries -- Amaca Pty Ltd, Amaba Pty Ltd, and ABN 60 Pty Ltd -- are three of around 150 defendants in asbestos litigation, and based on the Foundation's own figures, they account for US$1,000,000,000 of the predicted US$6,000,000,000 future asbestos liabilities in Australia. Although James Hardie stopped making asbestos products in 1987, the average 35-year latency of mesothelioma, an asbestos-related disease, means asbestos compensation funds will be needed until mid-century. In a 2005 report by a company-hired actuary from KPMG, it was predicted that 4,915 Australians would contract mesothelioma from exposure to Hardie products in the coming decades. When less serious forms of asbestos-related disease are included, James Hardie should expect to compensate 8,725 victims. On December 1, 2005, the Company announced that the NSW Government and a wholly owned Australian subsidiary of the Company -- LGTDD Pty Ltd -- had entered into a conditional agreement to provide long-term funding to a special purpose fund that will provide compensation for Australian asbestos-related personal injury claims against certain former James Hardie asbestos companies. The amount of the asbestos provision of AU$1 billion, at March 31, 2006, is the Company's best estimate of the probable outcome, which estimate includes an actuarial calculation prepared by KPMG Actuaries Pty Ltd of the projected future cash outflows, undiscounted and uninflated, and the anticipated tax deduction arising from Australian legislation which came into force on April 6, 2006. JUMP START: Shareholders Opt for Voluntary Liquidation ------------------------------------------------------ Shareholders of Jump Start Kids Ltd resolved to place the company under voluntary liquidation and appointed John Albert Price and Christopher Robert Ross Horton as liquidators to act jointly and severally. The Liquidators fixed October 2, 2006, as the last day for creditors to prove their debts or claims. The Joint Liquidators can be reached at: J.A. Price Horton Price Limited P.O. Box 9125, Newmarket Auckland, New Zealand Telephone: (09) 366 3700 Facsimile: (09) 366 7276 KR CONTRACTING: Members' and Creditors' Meeting Set on Oct. 19 --------------------------------------------------------------- KR Contracting Services Pty Ltd will hold a final meeting for its members and creditors on October 19, 2006, at 10:00 a.m., to receive Liquidator Tayeh's report on the company's wind-up proceedings and property disposal exercises. The Liquidator can be reached at: Riad Tayeh Level 3, 95 Macquarie Street Parramatta, New South Wales 2150 Australia LEISURE WOOD: Faces Liquidation Proceedings ------------------------------------------- Rosenfeld Kidson & Co Ltd filed a liquidation petition against Leisure Wood Designs Ltd before the High Court of Rotorua on August 15, 2006. The petition will be heard on October 9, 2006, at 10:45 a.m. The Solicitor for the Petitioner can be reached at: Debra M. Law Debtor Management Limited Unit Eleven, 9 Freeman Way Manukau City, Auckland P.O. Box 98-724, South Auckland Mail Centre New Zealand Facsimile: (09) 263 9108 MACADAMIA KING: Commences Wind-Up of Operations ----------------------------------------------- At a general meeting held on August 24, 2006, the members of Macadamia King Pty Ltd resolved to voluntarily wind up the company's operations and appoint Shaun Ian Reeves as liquidator. The Liquidator can be reached at: Shaun Ian Reeves Skaines Reeves & Jones Unit 3/27 South Pine Road Strathpine, Queensland 4500 Australia MARSH & PARTNERS: To Distribute Third Dividend on October 13 ------------------------------------------------------------ Marsh & Partners, which is subject to a deed of company arrangement, will distribute the third dividend for its creditors on October 13, 2006. Creditors who were unable to prove their debts by October 3, 2006, are 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 MCKINLEY COMPANY: To Declare First and Final Dividend ----------------------------------------------------- Mckinley Company Creditors Trust formerly known as Creatable Media Ltd will declare its first and final dividend to its admitted creditors on October 19, 2006. Creditors who were not able to prove their claims on October 3, 2006, are excluded from the benefit of the dividend. The Trustee can be reached at: Manfred Holzman Holzman Associates GPO Box 3667 Sydney, New South Wales 2001 Australia Telephone:(02) 9222 9070 Facsimile:(02) 9222 9071 MERIDIAN INTERIOR: Members Opt to Close Business ------------------------------------------------ At a general meeting held on August 8, 2006, the members of Meridian Interior Solutions Pty Ltd agreed to voluntarily liquidate the company's business. In this regard, Peter Ngan was appointed as liquidator. The Liquidator can be reached at: Peter Ngan Ngan & Co Chartered Accountants Level 5, 49 Market Street Sydney, New South Wales 2000 NO COMMISSION: Appoints Ward as Official Liquidator --------------------------------------------------- Shareholders of No Commission Property Sales Ltd appointed Timothy Patrick Ward on September 11, 2006, to act as liquidator for the company. Mr. Ward directs the company's creditors to file their proofs of claim by November 30, 2006. Failure to prove their debts will exclude creditors from sharing in any distribution the company will make. As reported by the Troubled Company Reporter - Asia Pacific, Associated Press Ltd filed a liquidation petition against the company on August 23, 2006. The Liquidator can be reached at: T. P. Ward BDO Spicers, Lexicon House 123 Spey Street, Invercargill P.O. Box 1206, Invercargill New Zealand Telephone: (03) 218 2959 Facsimile: (03) 218 2092 Email: tim.ward@inv.bdospicers.com P. MCCUBBERY: Placed Under Voluntary Wind-Up -------------------------------------------- At an extraordinary general meeting of P. Mccubbery Pty Ltd held on August 30, 2006, shareholders resolved to voluntarily wind up the company's operations. Jenni Nash was consequently appointed as liquidator. The Liquidator can be reached at: Jenni Nash Archer Gowland Pty Ltd 35 Dalton Drive Maroochydore, Queensland 4558 Australia PARKES INTERNATIONAL: Court Issues Wind-Up Order ------------------------------------------------ The Federal Court of Australia on September 8, 2006, ordered Parkes International Terminal Pty Ltd to wind up the company's operations and appointed Antony de Vries as official liquidator. The Official Liquidator can be reached at: Antony De Vries de Vries Tayeh Level 3, 95 Macquarie Street Parramatta, New South Wales 2125 Australia PETERPHYL HOLDINGS: Members Agree to Close Business --------------------------------------------------- On September 5, 2006, the members of Peterphyl Holdings Pty Ltd resolved to voluntarily wind up the company's operations. Subsequently, Kenneth Whittingham was appointed as liquidator. The Liquidator can be reached at: Kenneth Whittingham BDO Chartered Accountants & Advisers Level 19, 2 Market Street Sydney, New South Wales 2000 Australia PINNACLE SHEETMETAL: Members and Creditors to Meet on October 20 ---------------------------------------------------------------- A final meeting of the members and creditors of Pinnacle Sheetmetal Pty Ltd will be held on October 20, 2006, at 10:00 a.m. During the meeting, Liquidator Daniel I. Cvitanovic will report on the accounts of the company's wind-up proceedings. The Liquidator can be reached at: Daniel I. Cvitanovic Shop 5 Old Potato Shed 74-76 Hoddle Street Robertson, New South Wales 2577 Australia Telephone:(02) 4226 9575 Facsimile:(02) 4225 9293 RAH SERVICES: To Declare First and Final Dividend on October 18 --------------------------------------------------------------- RAH Services Pty Ltd, which is in liquidation, will declare the first and final dividend for its creditors on October 18, 2006. Creditors who were unable to submit their proofs of claim on October 3, 2006, are excluded in the dividend distribution. The Liquidator can be reached at: S. J. Sherman c/o Ferrier Hodgson GPO Box 4114 Sydney, New South Wales 2001 Australia RD MOYLE: Members' Final Meeting Set for October 18 --------------------------------------------------- The final meeting of the members of R D Moyle & Sons Pty Ltd will be held on October 18, 2006, at 11:00 a.m. During the meeting, Liquidator Jones will present the accounts on the company's wind-up proceedings and property disposal exercises. The Liquidator can be reached at: Michael G. Jones c/o Jones Condon Chartered Accountants Level 13, 189 Kent Street Sydney, New South Wales Australia Telephone:(02) 9251 5222 REXUNU PTY: Final Meeting Slated for October 11 ----------------------------------------------- The members of Rexunu Pty Ltd will hold a final meeting on October 11, 2006, at 9:00 a.m. At the meeting, Liquidator Burgess will present the report and give explanations on the company's wind-up proceedings and property disposal exercises. As reported by the Troubled Company Reporter - Asia Pacific, the company was placed under a members' voluntary liquidation on July 7, 2006. The Liquidator can be reached at: Peter John Burgess McPherson, Burgess & Associates Chartered Accountants 7 Macquarie Street Taree, New South Wales 2430 Australia RUCKSACK PTY: To Hold Final Meeting on October 18 ------------------------------------------------- A final meeting of the members and creditors of Rucksack Pty Ltd will be held on October 18, 2006, at 10:30 a.m. During the meeting, Liquidator Warner will give the final accounts on the company's wind-up proceedings. The Liquidator can be reached at: Anthony Warner CRS Warner Sanderson Level 5, 30 Clarence Street Sydney, New South Wales 2000 Australia SPA AT THE SCENE: Hearing of Liquidation Bid Fixed on Nov.2 ----------------------------------------------------------- On July 24, 2006, Dimension Shopfitters (2004) Ltd filed a liquidation petition against The Spa at the Scene Ltd before the High Court of Auckland. The petition will be heard on November 2, 2006, at 10:45 a.m. The Solicitor for the Petitioner can be reached at: C.N. Lord Offices of Craig Griffin & Lord, Solicitors 187 Mt Eden Road, Mt Eden, Auckland P.O. Box 9049, Newmarket, Auckland New Zealand STOCKFORD BUSINESS: To Declare Third Dividend on October 13 ----------------------------------------------------------- Stockford Business Services Pty Ltd will declare the third dividend for its creditors on October 13, 2006. Only those creditors who submitted proofs of debt by October 3, 2006, will be included in the company's distribution of dividend. The Deed Administrator can be reached at: Mark A. Korda KordaMentha Level 24, 333 Collins Street Melbourne, Victoria 3000 Australia THE RESPONSE STAFFING: Court Issues Wind-Up Order ------------------------------------------------- The Supreme Court of Victoria on August 25, 2006, ordered The Response Staffing Group Pty Ltd to wind up its operations and appointed Gregory Stuart Andrews as official liquidator. The Official Liquidator can be reached at: Gregory Stuart Andrews G. S. Andrews & Associates Certified Practising Accountants 22 Drummond Street Carlton, Victoria 3053 Australia Telephone:(03) 9662 2666 Facsimile:(03) 9662 9544 VILLA DEVELOPMENTS: Liquidator Bates to Present Wind-Up Report -------------------------------------------------------------- A final meeting of the members of Villa Developments Pty Ltd will be held on October 18, 2006, at 1:00 p.m. At the meeting, Liquidator Bates will report the accounts of the company's wind-up proceedings and property disposal exercises. The Liquidator can be reached at: Robert George Bates c/o Casey Bates Suite 2, Level 6 20 Smith Street, Parramatta Australia Telephone:(02) 9891 1155 W.B.M. (HOLDINGS): Members Resolve to Wind Up Operations -------------------------------------------------------- On September 7, 2006, the members of W.B.M. (Holdings) Pty Ltd resolved to voluntary wind up its operations. In this regard, Stephen Trevor Bennett was appointed as liquidator. The Liquidator can be reached at: Stephen Trevor Bennett Bentleys MRI Canberra Level 1, 13 London Circuit Canberra ACT 2601 Australia WAIKAN EMPLOYMENT: To Declare Dividend on October 20 ---------------------------------------------------- Waikan Employment & Training Services Ltd will declare the first and final dividend to its creditors on October 20, 2006. Creditors who were not able to formally prove their debts by September 22, 2006, are excluded from the benefit of the dividend. The Troubled Company Reporter - Asia Pacific reported that on December 15, 2005, the company commenced a wind-up of its operations. The Liquidator can be reached at: G. D. Finch KPMG 18 Smith Street Darwin, NT 0800 Australia WESTPOINT GROUP: Ann Street Mezzanine Declares First Dividend ------------------------------------------------------------- On September 25, 2006, PricewaterhouseCoopers partners David McEvoy and Geoff Totterdell, liquidators of Ann Street Mezzanine Pty Limited, advised of their intent to declare a first dividend to unsecured creditors. The notice of the intent was published in the Australian Government Gazette and The Australian newspaper on September 26, 2006. Ann Street Mezzanine is one of the nine mezzanines related to the Westpoint Group of companies that have been placed in liquidation and will be the first to declare a dividend to creditors. Ann Street Mezzanine was the second mortgage financier of the building project known as the 333 Ann Street Brisbane development. Receivers and managers sold the property involved. The receivers and managers were appointed to the real estate owner Ann St Brisbane Pty Limited, a Westpoint related company, by the first mortgage lender -- Permanent Trustees on behalf of the Howard Mortgage Trust. The balance of the sale proceeds paid to Ann St Mezzanine after repayment of the first mortgage debt and associated costs was AU$7.5 million. Ann St Brisbane Pty Limited has no other known assets. "The total claims of the 870 known unsecured creditors is in the order of AU$74.2 million, and we estimate the dividend will be at the rate of 7.4 cents in the dollar," Geoff Totterdell of PricewaterhouseCoopers said. "Funds are being retained by the liquidators to allow for continuing investigation into the conduct of the company and the causes of the company's failure," Mr. Totterdell noted. 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. WORLEY ABB: Members Opt to Shut Down Operations ----------------------------------------------- At a general meeting held on September 6, 2006, the members of Worley Abb Procurement Pty Ltd decided to shut down the company's operations and appointed M. C. Smith as liquidator. The Liquidator can be reached at: M. C. Smith c/o McGrathNicol+Partners Level 9, 10 Shelley Street Sydney, New South Wales 2000 Australia Telephone:(02) 9338 2666 Web site: http://www.mcgrathnicol.com.au ================================ C H I N A & H O N G K O N G ================================ ADVANCED WIRELESS: Faces Wind-Up Proceedings -------------------------------------------- A petition to wind-up Advanced Wireless Group Ltd will be heard before the High Court of Hong Kong on October 18, 2006, at 9:30 a.m. Somacis Korea Co. filed the petition with the Court on August 17, 2006. The petition was amended on September 18. The Solicitors for the Petitioner can be reached at: Richard Healy Oldham, Li & Nie, Solicitors Suite 503, St. George's Building 2 Ice House Street Central, Hong Kong Tel: 2868 0696 Fax: 2810 6796 AFFILIATED COMPUTER: Asks Dist. Court's "No Default" Declaration ---------------------------------------------------------------- Affiliated Computer Services, Inc., received a letter from persons claiming to hold certain of its senior notes advising the company that it was purportedly in default of its covenants under that certain Indenture dated June 6, 2005, with The Bank of New York Trust Company, N.A., as Trustee. The letter alleged that the company's failure to file its Form 10-K by Sept. 13, 2006, was a default under the terms of the Indenture. The company disclosed that its position is that no default has occurred under the Indenture and has filed a lawsuit against the Trustee in the United States District Court for the Northern District of Texas, Dallas Division, seeking a declaratory judgment affirming its position. Headquartered in Dallas, Texas, Affiliated Computer Services, Inc., (NYSE: ACS) -- http://www.acs-inc.com/-- provides business process outsourcing and information technology solutions to commercial and government clients. The company has global operations in China, Brazil, Dominican Republic, India, Guatemala, Ireland, Philippines, Poland and Singapore. * * * Standard & Poor's Ratings Services lowered in June 2006 its corporate credit and senior secured ratings to BB from BB+ for Affiliated Computer Services Inc. The ratings remain on CreditWatch with negative implications, where they were placed Jan. 27, 2006. Fitch Ratings assigned its BB issuer default rating, BB senior secured revolving bank credit facility rating, BB senior secured term loan rating, and BB senior notes rating on Affiliated Computer Services, Inc. The rating outlook is negative. ALROCO COMPANY: To Declare First and Final Dividend on Oct. 23 -------------------------------------------------------------- Alroco Company Ltd will declare its first and final dividend for its creditors on October 23, 2006. Creditors are required to prove their debts or be excluded from sharing in the dividend distribution. ART DATA: Wind-Up Petition Hearing Set on November 8 ---------------------------------------------------- Chow Kit Ming on September 8, 2006, filed before the High Court of Hong Kong a petition to wind up the operation of Art Date Package Co. Ltd. The Court will hear the petition on November 8, 2006, at 9:30 a.m. The Solicitors for the Petitioner can be reached at: Joe Poon 34/F., Hopewell Centre 183 Queen's Road East Wanchai, Hong Kong BENQ CORP: German Unit Turnaround to Cost Around US$1.07 Billion ---------------------------------------------------------------- BenQ Corporation reaffirmed its argument that turning round its German unit, BenQ Mobile GmbH & Co., would have threatened the group's financial survival, Financial Times reports. "BenQ Mobile lost US$1.07 billion during the 12 months following the acquisition on October 1, 2005," Rick Lei, BenQ's chief strategy officer, told the Financial Times. "We would have needed to pour in at least as much again to make it profitable." Mr. Lei's comments followed BenQ's decision last week to put the German mobile unit it bought in 2005 from Siemens AG into insolvency. The paper recounts that BenQ, in an estimate last week, said that the cost of turning round the business would be nearer EUR500 million. Moreover, BenQ estimated that it lost at least US$1.1 billion in the handset business on delays in new models. The parent company decided to place its German unit under insolvency in order to halt three straight quarters of losses since taking over the business, Bloomberg says. * * * Headquartered in Taiwan, Republic of China, BenQ Corporation, Inc. -- http://www.benq.com/-- is principally engaged in manufacturing, developing and selling of computer peripherals and telecommunication products. It is also a major provider of 3G handset, 3G handset, Camera phones, and other products. BenQ Mobile GmbH & Co., the company's wholly owned subsidiary, operates from Munich, Germany. Taiwan Ratings Corp., on August 17, 2006, lowered its long-term corporate credit rating and unsecured corporate bond rating on BenQ Corporation to twBB+ from twBBB. At the same time, the short-term corporate rating on the Company was lowered to twB from twA-3. All ratings remain on CreditWatch with negative implications, where they were placed on March 14, 2006. BENQ CORP: Funding Cut to Unit Has No Sudden Impact on Ratings -------------------------------------------------------------- Taiwan Ratings Corp said on September 29, 2006, that its twBB+ long-term and twB short-term corporate credit ratings on BenQ Corp. would not be immediately affected by the company's decision to discontinue injecting capital into its German mobile phone subsidiary, BenQ Mobile GmbH & Co OHG. The ratings on BenQ remain on CreditWatch with negative implications, where they were placed on March 14, 2006, due to large operating losses from its mobile handset business. BenQ Mobile is considering filing for insolvency protection in Germany following the cessation of funding from BenQ. BenQ is also considering how to appropriately deal with another loss making subsidiary in Brazil. However, the company will maintain its handset operations in Asia and continue to sell the handsets under the 'BenQ-Siemens' brand name. The decision to cut funding to BenQ Mobile is expected to greatly reduce operating losses from BenQ's handset business. The company took over the handset operation of Siemens AG (rated AA-/Watch Neg/A-1+ by Standard & Poor's Rating Services) in October 2005. BenQ incurred operating losses of NT$17 billion in the first half of 2006. * * * Headquartered in Taiwan, Republic of China, BenQ Corporation, Inc. -- http://www.benq.com/-- is principally engaged in manufacturing, developing and selling of computer peripherals and telecommunication products. It is also a major provider of 3G handset, 3G handset, Camera phones, and other products. BenQ Mobile GmbH & Co., the company's wholly owned subsidiary, operates from Munich, Germany. DR. B.M KOTEWALL: Creditors' Proofs of Claim Due on October 28 -------------------------------------------------------------- Liquidator Chan Yu Ling require creditors of Dr. B. M. Kotewall Foundation Ltd to submit their proofs of claim by October 28, 2006. Creditors who cannot prove their claims by the due date will be excluded from the benefit of any distribution the company will make. The Liquidator can be reached at: Chan Yu Ling Room 602, Aon China Building 29 Queen's Road, Central Hong Kong EASTERN ALPHA: Appoints Jacky CW Muk as Liquidator -------------------------------------------------- Pursuant to resolutions of creditors at the adjourned annual meeting held on September 26, 2006, Jacky Chung Wing Muk was appointed liquidator of Eastern Alpha Investment Ltd. EVER SINO: Appoints Lam Tak Keung as Liquidator ----------------------------------------------- Lam Tak Keung was appointed liquidator of Ever Sino Enterprise Ltd by a special resolution of the company passed on September 26, 2006. The Liquidator can be reached at: Lam Tak Keung Suite 504, South Tower World Finance Centre, Harbour City 17-19 Canton Road, Tsimshatsui Kowloon, Hong Kong FAVOUR ART: Annual Meeting Slated for October 6 ----------------------------------------------- Tthe members and creditors of Favour Art Knitting Ltd will each hold their annual meeting on October 6, 2006, at 3:00 p.m. and 3:30 p.m. respectively, at Bridges Executive Centre, Function Room, Unit 3302, 33/F, Lippo Centre Tower Two, 89 Queensway, Admiralty, Hong Kong. At the meeting, Liquidator Victor Chiu will give an account regarding the wind-up of the Company's operations. FERRO CORP: S&P Holds Low-B Corp. Credit & Sr. Unsec. Debt Rtgs. ---------------------------------------------------------------- Standard & Poor's Ratings Services' 'B+' long-term corporate credit and 'B' senior unsecured debt ratings on Ferro Corp. remained on CreditWatch with negative implications, where they were placed Nov. 18, 2005. Standard & Poor's will resolve the CreditWatch after Ferro files its 2005 full year and 2006 quarterly financial statements, which are expected by Sept. 30th and Dec. 31st, respectively. The rating agency could lower the ratings if there are material negative surprises arising from disclosures in any of the financial statements or additional meaningful delays in the filings. "Still, in recent months the company has finalized a new credit facility and strengthened transparency with regard to current results," said Standard & Poor's credit analyst Wesley E. Chinn. "Moreover, the company plans to use proceeds from a pending sale of its specialty plastics business to reduce debt." The ratings on Ferro reflect: * its aggressive debt leverage; * cyclicality of its markets; * vulnerability to raw material costs; * lackluster operating margins and return on capital; and * delays in the filing of the 10-K and 10-Qs for 2005 and 10-Qs for 2006. These negatives are partially offset by: * satisfactory liquidity under a new credit facility; * improving earnings; and * a likely debt reduction from planned asset sales. The filing delays caused by the lengthy accounting investigation and restatement process, as well as still-limited transparency on business conditions and operating results, which have resulted from this review work, are a significant credit quality negative. Standard & Poor's expects that any deficiencies in the company's internal controls regarding financial reporting or other accounting areas are being addressed in a timely manner and will not hamper Ferro's ability to strengthen profitability and its financial condition. Price increases, initiatives to reduce overhead and procurement costs, improved conditions in the electronic materials market, and restructured polymer additives operations should contribute to a modest strengthening of operating margins and earnings in 2006 from weak levels. But the raw material and energy cost environment remains challenging. An earnings rebound would benefit the weak funds from operations to total debt ratio, taking into account capitalized operating leases, an accounts receivable securitization program, and meaningful unfunded pension and other postretirement obligations. That measure would also be bolstered by likely debt reduction using proceeds from the pending sale of the specialty plastics business, which generated revenues of US$270 million in 2005. This divestiture, coupled with other asset sales, could eventually generate total net proceeds of roughly US$200 million. Ferro Corp. has global locations in Argentina, Australia, Belgium, Brazil, China, France, Germany, Indonesia, Italy, Japan, Mexico, Netherlands, Portugal, Spain, Taiwan, Thailand, the United Kingdom, the United States and Venezuela. FGX INTERNATIONAL: Moody's Assigns Loss-Given-Default Ratings ------------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the US Consumer Products, Beverage, Toy, Natural Product Processors, Packaged Food Processors and Agricultural Cooperative sectors, the rating agency confirmed its B2 Corporate Family Rating for FGX International Limited. Additionally, Moody's revised its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$15 million First Lien Revolver B2 B1 LGD3 35% US$150 million First Lien Term Loan B2 B1 LGD3 35% US$50 million Second Lien Term Loan B3 Caa1 LGD5 84% Moody's explains that current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). Based in Smithfield, Rhode Island, FGX International Limited -- http://www.fgx.com/-- is a designer and marketer of non- prescription reading glasses, sunglasses and costume jewelry with a portfolio of brands including Foster Grant and Magnivision. The company has international locations in the United Kingdom, Canada, China and Mexico. GB BONTEX: Creditors Must Prove Debts by October 20 --------------------------------------------------- Liquidator Charles W James Kostelni requires the creditors of GB Bontex Hong Kong Ltd to submit their proofs of debt 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: Charles W James Kostelni 5 Hamilton Drive Lexington, Virginia 24450 U.S.A. HONG KONG OPTICAL: Court Sets Date to Hear Wind-Up Bid ------------------------------------------------------ The High Court of Hong Kong will hear the wind-up petition against Hong Kong Optical Fiber Ltd on November 8, 2006, at 9:30 a.m. Hollywood Palace Company Ltd filed the petition with the Court on September 7, 2006. The Solicitors for the Petitioner can be reached at: Ford, Kwan & Company Suite 1505-1508, 15/F Chinachem Golden Plaza No. 77 Mody Road, Tsimshatsui East Kowloon, Hong Kong Tel: 2366 0688 Fax: 2722 0736 KARLSTEAD LTD: Liquidators to Present Wind-Up Report ---------------------------------------------------- Karlstead Ltd will hold a final meeting for its members on October 31, 2006, at 10:00 a.m. At the meeting, Joint Liquidators Keung and Morris will present final reports on the company's wind-up proceedings. The Joint Liquidators can be reached at: Stephen Liu Yiu Keung Robert Armor Morris 18/F, Two International Finance Centre 8 Finance Street, Central Hong Kong LOYAL FRIEND: Creditors' Proofs of Debt Due on November 10 ---------------------------------------------------------- Creditors of Loyal Friend Ltd must submit their proofs of debt to Liquidator Fu Kwok Ching by November 10, 2006, to be included in the company's distribution of dividend. The Liquidator can be reached at: Fu Kwok Ching Room 609, 6/F, Austin Tower 22-26A Austin Avenue Kowloon, Hong Kong MAXIPO TECHNOLOGY: Members to Receive Wind-Up Report ---------------------------------------------------- The members of Maxipo Technology International Ltd will hold a final meeting on October 31, 2006, 4:00 p.m., at 6th Floor, Kwan Chart Tower, 6 Tonnochy Road, Wanchai, Hong Kong. During the meeting, Liquidator Puen Wing Fai will report on the company's wind-up proceedings and property disposal exercises. MEDMIRA INC: Completes Draw Down of Cornell Capital's Equity L/C ---------------------------------------------------------------- MedMira Inc. has completed the draw down against its equity line of credit with Cornell Capital Partners, LP, which was announced on Sept. 5, 2006. Under the terms negotiated in the equity line, Cornell has purchased 80,506 common shares from MedMira at an average price of US$0.3478 which is 96.5% of the daily volume weighted average price over a 10 day pricing period, beginning on Sept. 6, 2006, and ending on Sept. 19, 2006, for net proceeds of US$28,000. The shares issued are not subject to any hold period by the TSX Venture Exchange or other regulatory bodies. First Purchasers of MedMira common shares issued in relation to this draw down notice have certain statutory rights of rescission or damages for a period of 40 days from the settlement date. The terms of the equity line financing, and the rights of First Purchasers are described in more detail in a prospectus dated November 21, 2005 which is available on the company's web site at www.medmira.com and on SEDAR at www.sedar.com. About MedMira Inc. MedMira Inc. (TSX Venture: MIR, NASDAQ:MMIRF) -- http://www.medmira.com/-- manufactures and markets in vitro flow-through rapid diagnostic tests. MedMira delivers rapid diagnostic solutions to healthcare communities around the globe. Its corporate offices and manufacturing facilities are located in Halifax, Nova Scotia, Canada with a representative office in Guilin and China. * * * At April 30, 2006, MedMira's balance sheet showed a CDN$6,133,000 stockholders' deficit, compared with a CDN$9,805,000 deficit at July 31, 2005. MONANCE LTD: Members' Final Meeting Set on November 1 ----------------------------------------------------- Monance Ltd will hold a final meeting for its members on November 1, 2006, 10:30 a.m., at 35th Floor, One Pacific Place, 88 Queensway, Hong Kong. During the meeting, Liquidator Lai Kar Yan (Derek) and Darach E. Haughey will present a report of the company's wind-up proceedings and property disposal exercises. PHILIPS MEDICAL: Creditors to Prove Claims on October 31 -------------------------------------------------------- The creditors of Philips Medical Systems (PMMS Hong Kong) Ltd are required to submit their proofs of claim by October 31, 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: Chan Wah Tip, Michael Ho Man Kei, Keith 601 Prince's Building Chater Road, Central Hong Kong PRICE WATERHOUSE: Joint Liquidators Step Aside ---------------------------------------------- Ying Hing Chiu and Chung Miu Yin, Diana ceased to act as joint and several liquidators for Price Waterhouse Management Consultants Ltd on September 25, 2006. The Troubled Company Reporter - Asia Pacific reported that on July 10, 2006, members of the Company received the Liquidators' final accounts of the company's wind-up operations. The Joint Liquidators can be reached at: Ying Hing Chiu Chung Miu Yin, Diana Level 28, Three Pacific Place 1 Queen's Road East Hong Kong REGENT BONUS: Liquidator Ceases to Act for the Company ------------------------------------------------------ On September 26, 2006, Gabriel Chi Kok Tam ceased to act as Liquidator of Regent Bonus Investment Ltd. According to the Troubled Company Reporter - Asia Pacific, the members and creditors of the Company received on November 29, 2005, Mr. Tam's report on the company's wind-up proceedings. The former Liquidator can be reached at: Gabriel Chi Kok Tam 8/F, Prince's Bulding 10 Chater Road, Central Hong Kong SINO GREETINGS: Names Lam Tak Keung as Liquidator ------------------------------------------------- On September 28, 2006, Lam Tak Keung was appointed liquidator of Sino Greetings Ltd by a special resolution of the company. The Liquidator can be reached at: Lam Tak Keung Suite 504, South Tower World Finance Centre, Harbour City 17-19 Canton Road, Tsimshatsui Kowloon, Hong Kong SOL MELIA: Creditors to Receive Wind-Up Report ---------------------------------------------- Sol Melia China Ltd will hold a meeting for its creditors on October 31, 2006, 10:30 a.m., at F, Alexandra House, 18 Chater Road, Central, Hong Kong. During the meeting, Liquidator Edward S. Middleton will present an account of the company's wind-up proceedings. TREASURE ART: Members and Creditors to Meet on October 6 -------------------------------------------------------- Members and creditors of Treasure Art Knitters Ltd will have their annual meetings on October 6, 2006, at Bridges Executive Centre, Function Room, Unit 3302, 33/F, Lippo Centre Tower Two, 89 Queensway, Admiralty, Hong Kong, at 4:30 p.m. and 5:00 p.m. respectively. At the meetings, Liquidator Victor Chiu will present the report on the company's wind-up proceedings. YUEN KEE: Creditors to Meet on October 18 ----------------------------------------- Creditors of Yuen Kee Transportation Company Ltd will meet on October 18, 2006, 10:30 a.m., at Rm B, 4/F., Kiu Fu Commercial Building, 300 Lockhart Road in Wan Chai, Hong Kong. In the meeting, creditors will discuss various matters provided under different sections of the Companies Ordinance of Hong Kong. ========= I N D I A ========= AES CORP: S&P Says Unit's Offering Won't Affect Credit Rating ------------------------------------------------------------- Standard & Poor's Ratings Services noted that the announcement of a secondary offering by a wholly owned subsidiary of Brasiliana Energia S.A. is a favorable credit development for Brasiliana's joint owner, The AES Corp. (BB-/Stable/--), but will not affect the ratings or outlook on AES. Brasiliana will use the expected proceeds of nearly US$530 million to US$600 million to repay about US$595 million of debt that has covenants restricting dividend distributions. Elimination of this restrictive debt frees up future cash flow for other AES growth projects. Management estimates incremental cash flow of about US$50 million for AES from Brasiliana's subsidiary distributions. Following completion of the non- voting preferred share transaction, AES will continue to maintain its controlling interest in Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A. (the regulated utility offering the shares) and will have an economic interest of about 18% in Eletropaulo. About AES Corporation AES Corporation -- http://www.aes.com/-- is a global power company. The company operates in South America, Europe, Africa, Asia and the Caribbean countries. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. The company has Asian presence in India, China and Sri Lanka. * * * Fitch affirmed The AES Corporation's Issuer Default Rating at 'B+'. Fitch also affirmed and withdrew the ratings for the company's junior convertible debt. Fitch said the rating outlook for all remaining instruments is stable. In March, Standard & Poor's Ratings Services raised its corporate credit rating on diversified energy company The AES Corp. to 'BB-' from 'B+'. S&P said the outlook is stable. Moody's affirmed the ratings of The AES Corporation, including its Ba3 Corporate Family Rating and the B1 rating on its senior unsecured debt. Moody's said the rating outlook remains stable. AMERICAN AXLE: Moody's Assigns Loss-Given-Default Ratings --------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. automotive sector, the rating agency confirmed its Ba3 Corporate Family Rating for American Axle & Manufacturing, Inc., and its American Axle & Manufacturing Holdings Inc. subsidiary. Additionally, Moody's held its probability-of-default ratings and assigned loss-given-default ratings on two bond issues and a loan: Issuer: American Axle & Manufacturing, Inc. Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- unsecured term loan Ba3 Ba3 LGD4 57% senior unsecured notes Ba3 Ba3 LGD4 57% Issuer: American Axle & Manufacturing Holdings, Inc. (Subsidiary) Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- senior convertible notes Ba3 Ba3 LGD4 57% Moody's explains that current long-term credit ratings are opinions about expected credit loss which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in our notching practices across industries and will improve the transparency and accuracy of our ratings as our research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). About American Axle American Axle & Manufacturing -- http://www.aam.com/-- manufactures, engineers, designs and validates driveline and drivetrain systems and related components and modules, chassis systems and metal-formed products for light trucks, sport utility vehicles and passenger cars. In addition to locations in the United States, AAM also has offices or facilities in Brazil, China, England, Germany, Japan, Mexico, Poland, Scotland and India. * * * Standard & Poor's Ratings Services assigned its 'BB' rating to the new US$50 million senior unsecured term loan of American Axle & Manufacturing Inc. (BB/Negative/--). The corporate credit ratings on American Axle and parent company, American Axle & Manufacturing Holdings Inc., are 'BB'. The rating outlook is negative. The company has about US$717 million of lease-adjusted debt and US$425 million of underfunded employee benefit liabilities. BALLY TECH: To Provide Casino Management System to Mohegan Sun -------------------------------------------------------------- Bally Technologies, Inc., has signed a contract with Mohegan Sun at Pocono Downs to provide a complete casino management system, an advanced suite of Bally Power Bonusing products and an initial order of 1,100 iVIEW touch-screen displays for all of the slot machines planned for the racino resort's opening later this year. In addition, Bally secured an order for more than 20 percent of the initial slot mix, including premium titles such as: -- Hot Shot Progressive, -- Cash Wheel, -- Hee Haw and -- S&H Green Stamps. Mohegan Sun at Pocono Downs also became the first casino to order Bally's new ALPHA Elite S9C games, which are powered by a breakthrough technology that allows dozens of classic Bally reel-spinning titles from its legacy S6000 line to run on the advanced ALPHA OS without any additional game development. The Bally game mix also includes a variety of S9000 reel-spinners, M9000 upright video slots and CineVision wide-screen video slots. Mohegan Sun at Pocono Downs is currently a harness racing facility located on 400 acres in Wilkes-Barre, Pa., and plans to be among the first racing locations in the state to open with slot machines. Currently undergoing a major expansion that will allow for the eventual installation of 2,000 machines, Mohegan Sun at Pocono Downs conducted a thorough competitive review before selecting Bally CMS(R) / SMS(R) and its Bally Power Bonusing technology. Mohegan Sun at Pocono Downs plans to place a high level of emphasis on its player's club, player tracking and player marketing capabilities, including the implementation of Bally Power Rewards, a configurable player-centric bonusing technology that rewards guests using their player's club cards. To complement Bally Power Rewards, Mohegan Sun at Pocono Downs will integrate the iVIEW displays to create a personalized multimedia experience for each patron as they play at the slot machine. "We looked at a number of vendors in our evaluation process and assessed a very detailed list of systems criteria," said Robert Soper, President and General Manager of Mohegan Sun at Pocono Downs. "We chose Bally because of its long-term demonstrated commitment to gaming systems technology, product enhancements and customer service. The Bally Power Bonusing features are excellent tools for creating excitement on the floor, and Bally's comprehensive CMS technology will allow multi-site player card functionality to be used in conjunction with Mohegan Sun, one of the nation's premier gaming destinations located in Uncasville, Conn." "We're very proud to extend our long-standing relationship with Mohegan Sun and help its team succeed in a new market," said Ramesh Srinivasan, Executive Vice President of Systems. "Mohegan Sun is obviously one of the most highly respected names in the gaming industry, partly because of their innovative thinking and creative use of technology. Bally's player-centric design enables them to capitalize on the concept of tailored bonuses for the patron, thereby effectively managing marketing expenses and enhancing the player experience." Headquartered in Las Vegas, Bally Technologies, Inc., -- http://www.BallyTech.com/-- designs, manufactures, operates and distributes advanced gaming devices, systems and technology solutions worldwide. Bally's product line includes reel- spinning slot machines, video slots, wide-area progressives and Class II, lottery and central determination games and platforms. Bally also offers an array of casino management, slot accounting, bonusing, cashless and table management solutions. The company also owns and operates Rainbow Casino in Vicksburg,Miss. Bally Technologies' has operations in Macau, China and India. * * * Standard & Poor's Ratings Services held its ratings on Bally Technologies Inc., including the 'B' corporate credit rating, on CreditWatch with negative implications. BHARTI AIRTEL: Appoints Atul Bindal as Joint President ------------------------------------------------------ Bharti Airtel appoints Atul Bindal as Joint President of Airtel Broadband & Telephone Services. He will report to Manoj Kohli, President of Bharti Airtel, will be a member of the Airtel Management Board, and chair the Broadband & Telephone Services Management Board. Airtel also announced the appointment of Deepak Srivastava as Chief Operating Officer of Airtel Broadband & Telephone Services, North region. He will report to Mr. Bindal. Mr. Bindal, in his new role, will focus on taking Bharti Airtel's Broadband & Telephone services division to new heights with increased town rollouts and introduction of new technologies. He will be supported by Rajiv Sharma (CEO-NCR), Deepak Srivastava (COO-North), Prem Pradeep (CEO-South Central), Deepak Khanna (COO-Central), Randeep Narang (COO-West). Prior to taking on this responsibility, Mr. Bindal was the Executive Director - South for Mobile Services at Bharti Airtel. He has also led a successful stint as the Group Chief Marketing Officer and Director - Mobile Services at Bharti Airtel for over one and half years. Mr. Bindal has successfully led the Mobile Services South Regional Hub and consolidated Bharti Airtel's leadership position in that region. A key feature of Mr. Bindal's leadership and strategic acumen has been his ability to translate strategy into excellent business results. When leading the south regional hub, Mr. Bindal provided strategic direction and thought leadership across various business domains. Not only has Mr. Bindal displayed a high degree of dedication and commitment in establishing Airtel as a strong brand but has also led in building functional excellence. Mr. Kohli said , "I am delighted to announce the appointment of Atul as the Joint President of our Broadband and Telephone services. Atul, with his strategic business sense and people management skills will lead a set of highly talented and competent leaders to take Bharti Airtel's Broadband & Telephone Services division to the next level of excellence in Broadband services in 92 towns." Mr. Kohli added, "Deepak Srivastava has successfully led the Bihar & Jharkhand market to leadership and I am confident that in his new assignment, he will continue to set new standards and scale new heights in North Airtel Broadband & Telephone Services." Before his tenure at Bharti, Mr. Bindal was the Commercial Director, Asia Pacific with DHL at Singapore with executive responsibilities for Sales, Marketing, Customer Service, Pricing and e-Commerce for the US$1.5Bn region. He has also worked for AlliedSignal/Honeywell for almost seven years across India, Asia Pacific and USA in various operating and functional roles. Mr. Srivastava was the Chief Operating Officer, Mobile Services, Bihar & Jharkhand. He joined Bharti Airtel in 2004, and has been instrumental in leading Airtel to leadership in both these markets. Prior to joining Bharti Airtel, Deepak was with leading British multinationals like BOC Group and ICI Plc. About Bharti Airtel Headquartered in New Delhi, India, Bharti Airtel Limited -- http://www.bhartiairtel.in/-- is a telecom services provider. The company has three business units: Mobile Services, Broadband & Telephone Services (B&TS) and Enterprise Services. The Mobile Services business unit offers mobile services in all 23 telecom circles of India. The B&TS business unit provides broadband and telephone services in 90 cities across India. The Enterprise Services business unit has two sub-units: Carriers (long- distance services) and Corporates. Through Enterprise Services- Carriers, Bharti Airtel provides national and international long-distance services. The Enterprise Services-Corporates business unit provides integrated voice and data communications solutions to corporate customers and small and medium-size enterprises. * * * The Troubled Company Reporter - Asia Pacific reported on June 28, 2006, that Fitch Ratings has affirmed Bharti Airtel Limited's long-term foreign currency issuer default rating at BB+. The outlook on the rating remains stable. Additionally, Standard and Poor's Rating Service gave the company's long-term local and foreign issuer credit both a BB+ rating on September 21, 2005. CANARA BANK: To Raise US$300-Million through Bond Issue in Nov. --------------------------------------------------------------- Canara Bank plans to come up with US$300 million through an issue of bonds overseas in November, Reuters reports, citing a statement made by the Bank's Chairman and Managing Director, M.B.N. Rao. According to Business Line, the hybrid capital that the bank intends to raise will be comprised of: -- US$200 million upper tier-II bonds; and -- US$100 in perpetual bonds. The bank intends to use the amount raised for its international operations. The bank would look for fine rates linked to London Inter Bank Offered Rate, the Business Line quotes Mr. Rao as saying. Arrangers for the issue are reportedly Citigroup, UBS, HSBC and ABN Amro. Canara hopes to achieve a capital adequacy ratio of about 12% after the issue, Mr. Rao told Reuters. 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. CENTURION BANK: Shareholders Approve Lord Krishna Merger -------------------------------------------------------- The shareholders of Centurion Bank of Punjab, at their Extraordinary General Meeting on September 30, 2006, at Panjim, and the shareholders of Lord Krishna Bank at their AGM held on the same day at Kochi, approved the proposed merger of the two banks. The share swap ratio has been fixed at 5:7 (i.e. for every 5 shares held of Lord Krishna Bank, its shareholders will receive 7 shares of Centurion Bank of Punjab). The Boards of Directors of both banks had approved the merger proposal on September 4, 2006. The banks will now submit an application to the Reserve Bank of India for the requisite regulatory approvals. Once approved, the merger will result in the creation of a leading private sector bank in the country with a nation-wide presence of 361 branches and 12 extension counters, 446 ATMs, about 3.5 million customers, with an emphatic presence in the State of Kerala. Centurion Bank of Punjab has approvals from the Reserve Bank of India to open a further 30 branches in the current fiscal year, which would take the combined bank's physical footprint to over 400 branches and extension counters. The merged entity will have significant strengths in Retail banking, the SME segment, Transaction Banking, Foreign Exchange Services and NRI banking; in addition to providing modern banking services to customers, as a result of a focused approach and investment in people, systems and marketing. About Lord Krishna Bank Lord Krishna Bank is a leading old private sector bank headquartered at Cochin. Lord Krishna Bank in the last decade has transformed itself from a regional bank to a pan- India bank having a branch network of 112 branches and 44 ATMs. It has emerged as a modern, completely computerized, technology driven entity that is redefining relationship banking with its customers and focusing on retail and SME banking. About Centurion Bank of Punjab Headquartered in Goa, India, Centurion Bank of Punjab Limited -- http://www.centurionbop.co.in/-- is a private-sector bank. The bank provides a range of transaction banking products under cash management services to various customer segments, such as corporates, small and medium enterprises, utility providers and domestic correspondent banks. The bank has entered into an enterprise partnership with Indecomm Global Services to form Centillion Solutions and Services. Centillion will focus on operations and services for banking and related financial services. The Retail Asset servicing operations of the Bank are being transitioned to Centillion. The bank has entered into an arrangement with IL&FS Investsmart Limited for offering equity broking services to its customers. The wholesale banking business is divided into Corporate, SME and Financial Institutions Group. NRI business has been a focus of the bank. In Trade Finance business, the bank provides services, such as export trade, import trade, remittance, domestic trade and structured trade. Fitch Ratings, on November 2, 2005, gave Centurion Bank of Punjab a support rating of 5. CITY UNION BANK: Board Names Shri N Kantha Kumar as Director ------------------------------------------------------------ City Union Bank Ltd's Board of Directors appointed Shri N Kantha Kumar as director, the bank said in a filing with the Bombay Stock Exchange. The Board arrived at the decision in a meeting held on September 30, 2006. About City Union Bank City Union Bank Limited -- http://cityunionbank.com/-- provides savings accounts, current accounts, fixed deposits, cash certificates, monthly savings, VIP deposit schemes, Flexifix deposits, CUB Smart deposits and the insurance linked Multiple Benefits Plan. As reported in the Troubled Company Reporter - Asia Pacific on August 8, 2006, Fitch Ratings affirmed City Union's Individual and Support ratings at 'D/E' and '5', respectively. EMCO LTD: CoD to Meet on Oct. 9 to Consider Share Allotment ----------------------------------------------------------- Emco Ltd's Committee of Board Directors will hold a meeting on October 9, 2006, the company said in a regulatory filing with the Bombay Stock Exchange. At the meeting, the Committee will consider the allotment of 3,00,000 equity shares pursuant to exercise of option. About EMCO Ltd. Headquartered in Jalgaon, India, Emco Ltd. -- http://www.emcoindia.com/-- offers transmission and distribution solutions within the power sector in India. Through its Transformer Division, Emco offers power transformers, specialized rectifier transformers, furnace transformers, and locomotive and traction transformers. Through its Meters Division, the Company offers metering solutions like tamper-proof electronic energy meters, automatic meter reading solutions like drive by, walk by or fixed network, pre-payment metering solutions and high-end metering like trivector meters. It also offers energy and revenue management solutions. Through its Projects Division, Emco offers turnkey solutions from concept to commissioning for electrical substation projects. It also undertakes entire industrial electrification work from designing to execution. Emco offers information technology solutions for power distribution management. Through its International Division, EMCO offers transformers and energy meters confirming to international specifications. Credit Analysis and Research Limited downgraded Emco's senior unsecured debt from A to BB on April 1, 2004. ================= I N D O N E S I A ================= FOSTER WHEELER: Secures New US$350-Mil. Domestic Credit Facility ---------------------------------------------------------------- Foster Wheeler Ltd. has executed an agreement for a new US$350 million, five-year senior secured domestic credit facility. The company expects to close on the new facility in October 2006. When the new facility closes, the company will be able to utilize the facility by issuing letters of credit up to the full $350 million limit. The company will also have the option to use up to US$100 million of the US$350 million limit for revolving borrowings, an option which the company has no immediate plans to use. The new facility will replace an existing credit facility that otherwise would not have expired until March 2010. The existing facility allows the company to issue letters of credit up to a US$250 million limit with the option to use up to US$75 million of the US$250 million limit for revolving borrowings. "This new agreement will provide the increased bonding capacity and financial flexibility that we require to support our growing operations and increased volume of business," said John T. La Duc, executive vice president and chief financial officer. "At current usage levels, this new facility will also reduce our bonding costs by approximately US$8 million per year, a substantial cost saving compared with our previous agreement. This latest accomplishment provides us with an even stronger platform to continue to grow our business by winning new orders, building quality backlog, and delivering best-in-class products and services which consistently meet or exceed our clients' expectations." BNP Paribas is the sole lead arranger and bookrunner. With operational headquarters in Clinton, New Jersey, Foster Wheeler Ltd. -- http://www.fwc.com/-- offers a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The company has offices in china, India, Indonesia, Malaysia, Singapore, Thailand, and Vietnam. * * * Standard & Poor's Ratings Services assigned its 'BB-' bank loan rating and '1' recovery rating on Foster Wheeler Ltd.'s proposed five-year, US$350 million senior secured credit facilities due 2011, reflecting a high expectation of full recovery of principal (100%) in the event of a payment default. PERUSAHAAN LISTRIK: Moody's Assigns B1 Rating to USD Bond Issue --------------------------------------------------------------- Moody's Investors Service has assigned a B1 senior unsecured rating to PT Perusahaan Listrik Negara's proposed U.S. dollar bond issuance. At the same time, Moody's has assigned its B1 corporate family rating to PLN. The rating outlook is stable. This is the first time that Moody's has assigned ratings to PLN. The B1 rating reflects the application of Moody's Joint Default Analysis methodology on government-related issuers, given PLN's 100% ownership by the Ministry of State-Owned Enterprises. In accordance with this methodology, its rating reflects the combination of these inputs: -- Baseline credit assessment of 14 (on a scale of 1 to 21, where 1 represents lowest credit risk) -- B1 local currency rating of the Indonesian government, the support provider -- High dependence, which reflects its close operating and financial proximity to the government and PLN's heavy reliance on government subsidies -- High support, reflecting its strategic importance to the economy and status as wholly government owned. It also takes into account the track record of government support, which includes ongoing subsidies and government loans. "The BCA of 14 reflects PLN's importance as Indonesia's only vertically integrated electricity utility and expectations of sustained government support - through subsidies - to ensure its financial viability and operational soundness. Such an expectation is underpinned by its strong links with the government, which is its 100% owner," says Moody's lead analyst Jennifer Wong, adding, "Furthermore, subsidies to PLN are part of the state budget. As such, Moody's views PLN's rating as closely integrated and strongly linked to the government's credit quality." "The BCA has incorporated the above factors, notwithstanding the fact that its standalone credit metrics are modest, due to the large gap between average sales prices and costs of supply as well as major capex requirements -- which includes the projected US$9 billion investments from 2006-2010 under the Fast Track Program to develop 9,000MW coal-fired power generation capacities for the country," says Ms. Wong. Given the close integration of PLN's rating with the sovereign rating, an upgrade in the latter would trigger a rating upgrade of PLN. Similarly, a downgrade in the sovereign rating would also trigger a rating downgrade for PLN. Furthermore, a partial privatization of PLN or any government plan to cease subsidy support -- a scenario that Moody's considers unlikely in the near to medium term -- would impact the support and dependence level and pressure the rating. PT Perusahaan Listrik Negara is an Indonesian state-owned vertically integrated electricity utility with a generation capacity of over 22,000MW. It is a monopoly operator of transmission and distribution networks and is the country's largest electricity producer. The government -- represented by the Ministry of State-Owned Enterprises -- has complete ownership. PERUSAHAAN LISTRIK: Proposed USD Notes Gets S&P's BB- Rating ------------------------------------------------------------ Standard & Poor's Ratings Services assigned its 'BB-' foreign currency rating and 'BB' local currency rating to Indonesia's PT Perusahaan Listrik Negara (Persero). The outlook on the ratings is stable. At the same time, Standard & Poor's assigned its 'BB-' issue rating to the proposed U.S. dollar senior unsecured notes issued by PLN's wholly owned subsidiary, Majapahit Holding B.V. The notes are irrevocably and unconditionally guaranteed by PLN, which is fully owned by the Indonesian government. As the size and exact terms are being finalized, this issue rating is subject to final documentation. "The ratings on PLN reflects its overall weak financial profile, uncertainties related to tariff revision and funding of its ambitious 9,000 MW expansion plan, its relatively inefficient capacity-mix and high cost of generation and substantial foreign currency exposure," said Standard & Poor's credit analyst Anshukant Taneja. PLN owns and operates about 85% of the electricity generation capacity and the entire power transmission and distribution network in Indonesia. For the year ended Dec. 31, 2005, PLN had operating revenues of IDR76.5 trillion (US$7.8 billion), EBITDA of IDR10.2 trillion, and net loss of IDR4.91 trillion. "PLN's credit profile benefits significantly from strong government support, demonstrated through 100% government ownership. The company also has regulatory protection, being the only nominated state-owned enterprise under Indonesia's electricity act," added Mr. Taneja. In addition, PLN gets subsidies as compensation for performing government-mandated electricity provision services, he said. "The company's dominant integrated position in the Indonesian electricity sector and the favorable outlook for electricity demand also support its ratings," Mr. Taneja noted. Nevertheless, government support for PLN is not guaranteed, considering some delays in subsidy payments, limited evidence of cash infusion, and absence of noteworthy attempts to improve the weak financial position of the company. "The stable outlook reflects our expectation that the government would step in to support PLN, should it face a cash flow crisis, given its role and its rising social and political importance, as an integral part of government's policy to provide subsidized electricity in Indonesia," said Mr. Taneja. A material reduction in government ownership of PLN and major restructuring of PLN's integrated operations could place downward pressure on the outlook or the rating. "PLN's credit profile and ratings is directly linked to the outlook and ratings for the Republic of Indonesia," he said. ========= J A P A N ========= BANK OF IKEDA: JCR Places A- Ratings on Subordinated Bonds ---------------------------------------------------------- The Japan Credit Rating Agency, on September 20, 2006, assigned an 'A-' rating to Bank of Ikeda Ltd's subordinated bonds. The JPY15 billion subordinated callable bonds issue has a September 29, 2006 issue date, and will mature on September 29, 2016. It has a 1.78% per annum coupon until September 29, 2011, when it will switch to Euroyen6 million at 1.99%. According to the JCR, Bank of Ikeda is a regional bank with funds totaling more than JPY2 trillion on a daily average basis. It has expanded business and the core operating profit in Osaka and Kobe where other regional and second-tier regional banks have been grouped into large banks. Bank of Ikeda increased capital by issuing common shares publicly in March 2006. JCR will watch carefully the bank's credit costs and interest rate risk. Headquartered in Osaka, Japan, the Bank of Ikeda, Ltd. -- http://www.ikedabank.co.jp/-- is a regional bank that operates in four main business segments. The banking segment provides banking, loan, stock investment and currency exchange services through a network of 66 branches and five offices. The leasing segment is engaged in the leasing of industrial machinery, construction machinery, computers and office equipments, among others. The credit guarantee segment provides credit guarantee services for housing loans. The card segment is engaged in the credit card-related business. Other businesses include venture capital business, investment consulting business, the development and sale of computer software, as well as the provision of information services. * * * Fitch Ratings upgraded Bank of Ikeda's individual rating to C/D on March 28, 2006. At the same time, Fitch placed a BB+ rating on the bank's subordinated debt. CHIBA BANK: Posts JPY13-Billion Net Income For June Quarter ----------------------------------------------------------- The Chiba Bank, Ltd., posted a consolidated net income of JPY12.93 billion for the quarter ending June 30, 2006, a 9.8% increase against the JPY11.77-billion net income the bank posted for the quarter ending June 30, 2005, the bank said in a press release. The bank's ordinary income increased 5.5% to JPY20.27 billion for the quarter ending June 30, 2006, while ordinary expenses amounted to JPY43.71 billion. The bank's loans as of June 30, 2006, amounted to JPY6.24 trillion, while deposits amounted to JPY8.09 trillion. The bank's press release includes these financial data (in JPY millions): For the quarter ended 06/30/2006 06/30/2005 ---------- ---------- Ordinary income 63,978 54,952 Ordinary expenses 43,708 35,742 Ordinary profits 20,269 19,210 Net income 12,927 11,772 As of 06/30/2006 06/30/2005 ---------- ---------- Total assets 9,897,416 9,028,148 Total liabilities 9,364,942 8,591,746 Net assets 532,473 428,585 The bank's disclosed claims under the Financial Reconstruction Law decreased by JPY0.60 billion from March 31, 2006, to JPY225.7 billion. As of June 30, 2006, the bank had JPY27.5 billion in bankrupt and substantially bankrupt claims, JPY84.90 billion in doubtful claims and JPY113.2 billion in substandard claims. The proportion of disclosed claims to total claims stands at 3.52%, down 0.07 percentage points. The bank's estimated capital ratio as of September 30, 2006, stands at 10.50%, from the 11.19% it posted as of March 31, 2006. About Chiba Bank Headquartered in Chiba, Japan, the Chiba Bank Limited -- http://ir.chibabank.co.jp/english-- is the largest regional bank in Chiba Prefecture. The Troubled Company Reporter - Asia Pacific reported on May 24, 2006, that Moody's Investors Service upgraded the bank financial strength rating of The Chiba Bank Limited to D+ from D. Additionally, Fitch Ratings gave Chiba Bank a C individual rating on March 24, 2006. EBARA CORP: Completes US$11.7-M Investment in Ballard Power ----------------------------------------------------------- Ballard Power Systems has received the second half of a US$11.7-million equity investment from Ebara Corp. of Japan, the Vancouver Sun reports. Ballard issued 1,022,549 common shares in exchange for the US$5.85-million investment. Ebara Corp. had paid the first half in September 2005 as part of a transaction between the two companies and their jointly owned Ebara Ballard Corp. About Ballard Ballard Power Systems (TSX: BLD)(NASDAQ: BLDP) -- http://www.ballard.com/-- is recognized as a world leader in the development, manufacture and sale of zero-emission proton exchange membrane fuel cells. Ballard's mission is to make fuel cells a commercial reality. About Ebara Ballard Ebara Ballard Corp. is based in Tokyo, Japan, and its mandate is to develop, manufacture and sell fuel cell power generators incorporating the Ballard(R) fuel cell to customers in Japan. EBARA BALLARD is working with the largest natural gas company in Japan, Tokyo Gas, and is also working with Nippon Oil, the leading Japanese oil company, on a kerosene-fueled cogeneration system. Tokyo Gas began commercialization in February 2005, and Nippon Oil began commercialization in March 2006. About Ebara Corp. Headquartered in Tokyo, Japan, Ebara Corp. -- http://www.ebara.co.jp/-- is Japan's largest manufacturer of pumps, a major fluid machinery producer and an integrated environmental engineering service company. It also has technologies for semiconductor polishing, cleaning and plating. Headquartered in Tokyo, the Company has 107 subsidiaries and 17 associated companies. The company has operations in Italy, Philippines, Thailand, Singapore and Vietnam. The Troubled Company Reporter - Asia Pacific reported that Fitch Ratings Agency, on June 21, 2006, assigned stable BB+ foreign and local currency Issuer Default Ratings and a BB+ senior unsecured local currency debt rating to Ebara Corp. MITSUBISHI MOTORS: North American Sales Soar in September 2006 -------------------------------------------------------------- Mitsubishi Motors Corporation's North American Unit, Mitsubishi Motors North America, Inc., reported September 2006 sales of 10,287 units, an increase of 13.6% over September 2005's total of 9,054, according to a press release. MMNA's sales have shown consistent growth over the past six months, the first six months of the business year. Sales for the April-September period are up 4.5% over the same period in 2005. July-September period sales were also up 4.5% over the same quarter in 2005. September marked the seventh consecutive month that Mitsubishi U.S. sales topped the 10,000 mark and the third consecutive month of year-over-year increases. MMNA President & CEO Hiroshi Harunari said, "Sales increases month-after-month are a true indicator that customers are confident in the quality of our products and their styling, performance, and value. We expect our sales to accelerate further with the introduction of our all-new fuel-efficient Outlander crossover SUV in November." September sales highlights: * Eclipse continues to be the volume leader at 2,485, up 42.0% calendar year-to-date. * Lancer closed at 2,169 units in September, up 50.1% from last September's volume. * Eclipse Spyder September sales were 607 units, up 209.7% from last year's volume. About Mitsubishi Motors North America Mitsubishi Motors North America, Inc. - http://media.mitsubishicars.com-- is responsible for all manufacturing, finance, sales, marketing, research and development operations of the Mitsubishi Motors Corporation in the United States. Mitsubishi Motors sells coupes, convertibles, sedans, sport utility vehicles, and light trucks through a network of approximately 540 dealers. About Mitsubishi Motors Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation -- http://www.mitsubishi-motors.co.jp/-- is one of the few automobile companies in the world that produces a full line of automotive products ranging from 660-cc mini cars and passenger cars to commercial vehicles and heavy-duty trucks and buses. The company also operates consumer-financing services and provides this to its customer base. MMC adopted the "Mitsubishi Motors Revitalization Plan" on January 28, 2005, as its three- year business plan covering fiscal 2005 through 2007, after investor DaimlerChrysler backed out from the Company. The main objectives of the plan are "Regaining Trust" and "Business Revitalization." The company has operations worldwide, covering the United States, Germany, the United Kingdom, Italy, the Netherlands, the Philippines, Indonesia, Malaysia, China and Australia. Its products are sold in over 170 countries. As reported by the Troubled Company Reporter - Asia Pacific on September 29, 2006, Standard & Poor's Ratings Services raised its long-term corporate credit and senior unsecured debt ratings on Mitsubishi Motors Corp. to B- from CCC+, reflecting progress in the company's revitalization efforts and reduced downside risks in its earnings and financial profile. The outlook on the long-term rating is stable. As reported by the Troubled Company Reporter - Asia Pacific on August 4, 2006, Rating & Investment Information Inc. has upgraded its issuer rating on Mitsubishi Motors Corp. from CCC+ to B with a stable outlook and its commercial paper rating from c to b, and has removed the rating from its monitor at the same time. As reported by the Troubled Company Reporter - Asia Pacific on July 19, 2006, Japan Credit Rating Agency, Ltd. upgraded the rating of Mitsubishi Motors Corp.'s senior debts to BB- from B-, with a stable outlook. The agency also affirmed the NJ rating on CP program of the Company, while upgrading its rating on the Euro Medium Term Note Program of MMC and subsidiaries Mitsubishi Motors Credit of America, Inc. and MMC International Finance (Netherlands) B.V. to B+ from CCC. MITSUBISHI MOTORS: Global Production, Sales Up in August 2006 ------------------------------------------------------------- Mitsubishi Motors Corporation has announced global production, as well as domestic sales and export results, for August 2006, according to a company press release. Total global production totaled 93,971 units, 90.6% of the total for August 2005. Japanese production reached 47,738 units, up 4.1% year-on-year. Total vehicle sales in Japan came to 13,925 units, a solid 11.1% increase over the previous period. August was the sixteenth consecutive month of year-on-year sales growth in Japan. Total sales for passenger cars sales were 9,220 units, 14.8% higher than the total last year on sales of new models such as Colt RALLIART Version-R. Commercial vehicle sales totaled 4,705 units, 104.5% of the August 2005 total with growth in commercial-use minicars overcoming lower sales of Pajero and Delica, which will undergo full model changes later this fiscal year. Overseas production for the month totaled 46,233 units, 79.8% of the total for the same period last year. European production rose 38.8% year-on-year to 6,364 units due to the strong sales of Colt CZC Cabriolet this fiscal year. Asian production dropped to 26,466 units, a 36.3% decline over the August 2005 total due to continued unfavorable economic conditions in Indonesia, Malaysia, Taiwan and other markets. Lastly, production in North America increased to 10,120 units, 111.7% of the total for the previous year. Total exports from Japan fell year-on-year to 28,426 units, 84.1% of the year ago total. Exports to Europe decreased to 8,252 units, 82.3% of the August 2005 total due in part to lower Pajero shipments ahead of a full model change later this fiscal year. Exports to Asia totaled 1,815 units, 77.5% of the year ago total again due to unfavorable economic conditions in Asian markets. Exports to North America declined a small 5.7% year- on-year, to 4,710 units, due to lower shipments of Lancer and Outlander ahead of full model changes for those models later this fiscal year. About Mitsubishi Motors Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation -- http://www.mitsubishi-motors.co.jp/-- is one of the few automobile companies in the world that produces a full line of automotive products ranging from 660-cc mini cars and passenger cars to commercial vehicles and heavy-duty trucks and buses. The company also operates consumer-financing services and provides this to its customer base. MMC adopted the "Mitsubishi Motors Revitalization Plan" on January 28, 2005, as its three- year business plan covering fiscal 2005 through 2007, after investor DaimlerChrysler backed out from the Company. The main objectives of the plan are "Regaining Trust" and "Business Revitalization." The company has operations worldwide, covering the United States, Germany, the United Kingdom, Italy, the Netherlands, the Philippines, Indonesia, Malaysia, China and Australia. Its products are sold in over 170 countries. As reported by the Troubled Company Reporter - Asia Pacific on September 29, 2006, Standard & Poor's Ratings Services raised its long-term corporate credit and senior unsecured debt ratings on Mitsubishi Motors Corp. to B- from CCC+, reflecting progress in the company's revitalization efforts and reduced downside risks in its earnings and financial profile. The outlook on the long-term rating is stable. As reported by the Troubled Company Reporter - Asia Pacific on August 4, 2006, Rating & Investment Information Inc. has upgraded its issuer rating on Mitsubishi Motors Corp. from CCC+ to B with a stable outlook and its commercial paper rating from c to b, and has removed the rating from its monitor at the same time. As reported by the Troubled Company Reporter - Asia Pacific on July 19, 2006, Japan Credit Rating Agency, Ltd. upgraded the rating of Mitsubishi Motors Corp.'s senior debts to BB- from B-, with a stable outlook. The agency also affirmed the NJ rating on CP program of the Company, while upgrading its rating on the Euro Medium Term Note Program of MMC and subsidiaries Mitsubishi Motors Credit of America, Inc. and MMC International Finance (Netherlands) B.V. to B+ from CCC. SOJITZ CORP: Group Forms Alliance with Deutsche Lufthansa --------------------------------------------------------- Sojitz Corporation and the Sojitz Group Share Jet LLC have signed an agreement with Germany's largest airline, Deutsche Lufthansa AG, the Company said in a press release. The agreement involves comprehensive marketing operations regarding business aircraft operations, and will mutually utilize the networks that both groups have in Europe and Asia, including Japan. In March 2003, Sojitz established Share Jet LLC in partnership with ACI Pacific LLC (Head office: United States Territory of Guam) with the purpose of undertaking business aircraft flight operations, mainly in Asia, and has since been engaged in business aircraft flight, maintenance and management operations. On the other hand, Deutsche Lufthansa AG commenced the Lufthansa Private Jet service in Europe in April 2005. This service offers customers, who arrive in Germany via regular Lufthansa flights from all over the world, transport to destinations in Europe using business aircraft, thus saving on time spent for the transfer of flights, and shortening the lengths of stay. The number people using the LPJ service has been steadily increasing. Building on the success of the LPJ service in Europe, Deutsche Lufthansa AG assumed that there would be demand for a similar service from customers arriving in major cities in Asia via Lufthansa regular flights, with intention of visiting cities in those countries. Thus, the company had been looking for a strategic partner who was capable of undertaking operations from business aircraft flight operations to the sale of charter flight services. An agreement has been reached that the alliance will start with the reciprocal sale of charter flight services with the Sojitz Group, which has an eye to expanding its business related to business aircraft, and will plan joint flight operations in the future. The Sojitz Group will provide information on customer trends in Asia and abundant know how on issues related to the business aircraft operations that it has cultivated in the region. Concerning the air craft chartering business, Sojitz and Share Jet LLC will utilize their individual marketing expertise, while at the same time deepening their ties with users, and will further develop their aircraft related business. About Share Jet LLC After having obtained a US license for their chartering business, Share Jet LLC offers programs such as joint ownership and the sharing of aircraft and chartering services, all performed under operation and maintenance systems of high standard, which systems are based on Federal Aviation regulations. Guam is in an ideal location to be an operation base for business aircraft from Asian countries. Further, Sojitz operational hubs located in Asian countries undertake sales activities for Share Jet programs. Share Jet LLC also offers aircraft management and flight operation outsourcing services to aircraft owners. Although it is not easy to maintain aircraft in Japan, due to the difficulty in securing aircraft parking space and to the fact that the cost for flight operations and aircraft maintenance are relatively high compared with those in Europe and the US, the Sojitz Group provides corporations and individuals who are considering the ownership of a business aircraft, with a consistent service; from the sale and management of business aircraft to flight operations. About Sojitz Corp. The Sojitz Group was essentially formed through the business integration between Nichimen Corporation and Nissho Iwai Corporation, two companies with over a century of history. This business integration took shape in December 2002 and was followed on April 1, 2003, by the incorporation of a joint holding company. As a public listed company, this holding company was incorporated to pursue business integration, management supervision and comprehensive disclosure. Heralding a new era, the principal operating arms of the Group, Nichimen Corporation and Nissho Iwai Corporation were merged to form a new single entity, Sojitz Corporation on April 1, 2004. On October 1, 2005, the final phase of business integration was completed through the merger of the holding company and Sojitz Corporation * * * The Troubled Company Reporter - Asia Pacific reported on Oct. 3, 2006, that Standard & Poor's Ratings Services raised its long- term corporate credit rating on Sojitz Corp. to 'BB' from 'BB-' and its long-term senior unsecured debt rating on the company to 'BBB-' from 'BB+', reflecting Sojitz's improved capitalization and profitability. The corporate credit rating remains on CreditWatch with positive implications, while the long-term senior unsecured debt rating was removed from CreditWatch. Japan Credit Rating on August 8, 2006, assigned a BBB- rating to bonds to be issued under the shelf registration of Sojitz Corporation. The bonds will be issued on August 17, 2006, and will mature on August 17, 2006. SOJITZ CORP: VARIG Injunction Continued Until October 27 -------------------------------------------------------- The Honorable Robert D. Drain of the United States Bankruptcy Court for the Southern District of New York continues the preliminary injunction imposed in VARIG S.A. and its debtor- affiliates' Section 304 cases through and including Oct. 27, 2006, overriding Sojitz Corporation's earlier objections on the extension. The Court will hold a hearing on Oct. 26, 2006, at 10:00 a.m., to consider whether to extend the Preliminary Injunction or, if appropriate, convert it into a Permanent Injunction. About 14 parties-in-interest had objected to the extension of the Preliminary Injunction or entry of a Permanent Injunction: * Sojitz Corporation of Japan; * Willis Lease Finance Corporation; * Mitsui & Co. Ltd.; * U.S. Bank National Association; * Wells Fargo Bank Northwest, N.A., as Trustee; * Wells Fargo Bank National Association, as Trustee; * International Lease Finance Corporation; * Aircraft SPC-6, Inc.; * The Boeing Company; * Ansett Worldwide Aviation U.S.A., et al.; * GATX Capital; * The Port Authority of New York and New Jersey; * Los Angeles World Airports; and * The United States of America by the U.S. Attorney for the Southern District of New York The Objectors consented to the continuation of the existing Preliminary Injunction, provided their Objections will be deemed carried over to the October 26 hearing. Any other objections must be filed with the Court by Oct. 23, 2006. Sojitz leases to VARIG two Boeing model 767-300ER aircraft and two General Electric model CF6-80C2B6F spare aircraft engines under a Lease Agreement dated as of Oct. 27, 1989, as amended. Sojitz asked the Bankruptcy Court to deny the Permanent Injunction Motion and, instead, direct VARIG to return its aircraft. About VARIG S.A. Headquartered in Rio de Janeiro, Brazil, VARIG S.A. is Brazil's largest air carrier and the largest air carrier in Latin America. VARIG's principal business is the transportation of passengers and cargo by air on domestic routes within Brazil and on international routes between Brazil and North and South America, Europe and Asia. VARIG carries approximately 13 million passengers annually and employs approximately 11,456 full-time employees, of which approximately 133 are employed in the United States. Varig, along with two affiliates, filed for a judicial reorganization proceeding under the New Bankruptcy and Restructuring Law of Brazil on June 17, 2005, due to a competitive landscape, high fuel costs, cash flow deficit, and high operating leverage. The Debtors may be the first case under the new law, which took effect on June 9, 2005. Similar to a chapter 11 debtor-in-possession under the U.S. Bankruptcy Code, the Debtors remain in possession and control of their estate pending the Judicial Reorganization. Sergio Bermudes, Esq., at Escritorio de Advocacia Sergio Bermudes, represents the carrier in Brazil. Each of the Debtors' Boards of Directors authorized Vicente Cervo as foreign representative. In this capacity, Mr. Cervo filed a Sec. 304 petition on June 17, 2005 (Bankr. S.D.N.Y. Case Nos. 05-14400 and 05-14402). Rick B. Antonoff, Esq., at Pillsbury Winthrop Shaw Pittman LLP represents Mr. Cervo in the United States. As of March 31, 2005, the Debtors reported BRL2,979,309,000 in total assets and BRL9,474,930,000 in total debts. About Sojitz Corp. The Sojitz Group was essentially formed through the business integration between Nichimen Corporation and Nissho Iwai Corporation, two companies with over a century of history. This business integration took shape in December 2002 and was followed on April 1, 2003, by the incorporation of a joint holding company. As a public listed company, this holding company was incorporated to pursue business integration, management supervision and comprehensive disclosure. Heralding a new era, the principal operating arms of the Group, Nichimen Corporation and Nissho Iwai Corporation were merged to form a new single entity, Sojitz Corporation on April 1, 2004. On October 1, 2005, the final phase of business integration was completed through the merger of the holding company and Sojitz Corporation * * * The Troubled Company Reporter - Asia Pacific reported on Oct. 3, 2006, that Standard & Poor's Ratings Services raised its long- term corporate credit rating on Sojitz Corp. to 'BB' from 'BB-' and its long-term senior unsecured debt rating on the company to 'BBB-' from 'BB+', reflecting Sojitz's improved capitalization and profitability. The corporate credit rating remains on CreditWatch with positive implications, while the long-term senior unsecured debt rating was removed from CreditWatch. Japan Credit Rating on August 8, 2006, assigned a BBB- rating to bonds to be issued under the shelf registration of Sojitz Corporation. The bonds will be issued on August 17, 2006, and will mature on August 17, 2006. ========= K O R E A ========= KOOKMIN BANK: Moody's Confirms Financial Strength Rating at D+ -------------------------------------------------------------- Moody's Investors Service confirmed Kookmin Bank's D+ bank financial strength rating with a stable outlook. This rating action concludes the review for possible downgrade which was initiated on the BFSR on March 27, 2006, following the selection of Kookmin Bank as preferred bidder for the acquisition of Korea Exchange Bank (KEB; rated Baa2/Prime-2/D). All other Kookmin Bank ratings are unaffected and are listed below. The confirmation of Kookmin Bank's D+ BFSR is underpinned by the recovery in the bank's earnings -- attributable to reduced credit costs and restructuring efforts -- that enabled capital to build up. With the additional resources, Kookmin Bank is now able to implement the significant acquisition with less threat of financial dilution, in Moody's view. While Kookmin Bank's post-transaction economic capital will be lower due to the acquisition goodwill, the financial metrics are sufficiently strong to allow it to maintain its D+ BFSR. Despite the uncertainty hanging over the acquisition due to the Korean supervisory investigations, Moody's believes that the downside risk to the BFSR confirmation is marginal. Clearly, if the transaction were to be cancelled, the BFSR should revert to its pre-announcement level. If, however, the transaction were to proceed, Moody's analysis incorporates sufficient buffer in the form of a number of severe scenarios including the purchase of a larger stake, a higher purchase price and all debt funding. On March 23, 2006, Kookmin Bank was selected as preferred bidder for the acquisition of KEB. The transaction will further enhance the bank's systemic significance as the combined entity will control a 28% share of system deposits, a substantial market position that augurs well for increased systemic support to the institution. Finally, Moody's views the acquisition of KEB as synergistic to Kookmin Bank's franchise, particularly in the corporate banking and foreign exchange sectors where KEB is strong. However, potential synergies from the transaction will most likely materialize in the medium term given the magnitude of the entities and the expected integration challenges. Kookmin Bank was established in 1963 and is the largest commercial bank in Korea, having secured the dominant ranking through a merger with Housing & Commercial Bank in November 2001. The bank operates a strong retail banking franchise, controlling a fifth of system loans and deposits. The following rating was confirmed, with stable outlook: * BFSR of D+ The following ratings were unaffected: * Senior/subordinated debt of A3/Baa1. Outlook positive; * Short-term debt of Prime-1. Outlook stable; * Foreign currency long-term/short-term deposit of A3/Prime-2. Outlook for the long-term rating is positive and for the short- term rating is stable. KOREA EXCHANGE: Named 2006 Best Domestic Provider of FX Services ---------------------------------------------------------------- KEB was named the 2006 Best Domestic Provider of FX Services in Korea by Asiamoney. Each year Asiamoney conducts a poll to name best providers of FX services in each country. This year a total of 940 financial institutions and companies across the Asian region participated in the poll to pick KEB as the Best Domestic Provider of FX Services in Korea. In addition to winning the award, this year the bank was also named the Best Bank in Korea and the Best Local Bank Trading Korean Won by Euromoney, the Best Domestic Provider for Structured Currency Products in Korea and the Best Local Cash Management Bank in Korea (polled by medium-sized companies) by Asiamoney and the Top 10 Asian Regional Banks of the 7th Annual End User Survey by Asia Risk. An official of the bank said, "This award signifies that our bank is the leading player in the domestic FX market, providing a wide array of competitive FX products and services to corporate customers as well as in the inter-bank market". He added, "we will continue to sustain our leading position and make a contribution to the development of the FX market while offering products and services that cater to the needs of customers." 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. PUSAN BANK: Aberdeen Asset Management Increases Stake to 10.38% --------------------------------------------------------------- Aberdeen Asset Management Asia Limited increased its shareholdings in Pusan Bank by 1% -- from 9.38% to 10.38%. Headquartered in Singapore, Aberdeen Asset is an international investment management group, managing assets for both institutions and private individuals. According to Pusan Bank's Web site, Aberdeen Asset has been holding the Bank's shares since 2004. Aberdeen increased its investment in the Bank from 5.16% to the current 10.38% during the last three years. About Pusan Bank Pusan Bank -- http://www.pusanbank.co.kr/-- provides retail banking services including telephone banking, savings deposits, personal and business loans, credit card financing, foreign currency exchanges, and wire transfer services. The bank mainly serves Pusan metropolitan area through its network of branches. * * * Moody's Investors Service gave Pusan Bank a 'D' Bank Financial Strength Rating effective on March 30, 2006. Fitch Ratings gave Pusan Bank an Individual Rating of 'B/C' effective on September 6, 2005. PUSAN BANK: Loan Delinquency Ratio in 2nd Quarter is 0.88% ---------------------------------------------------------- Pusan Bank reported a 0.88% delinquency ratio for its loans in the second quarter of 2006, its lowest 11 quarters starting from the fourth quarter of 2003. Delinquents in this sector amounted to KRW116 billion out of a total loans amount of KRW13.13 billion. Delinquency ratios for the second quarter of 2006, broken down by sectors, are: Sector Total Loans Delinquents Ratio ------------------ ----------- ----------- ----- Large Corporations 1,155.4 0.1 0.01% SMEs 8,167.2 72.9 0.89% Household 3,495.2 31.9 0.91% Credit Card 313.7 11.1 3.53% About Pusan Bank Pusan Bank -- http://www.pusanbank.co.kr/-- provides retail banking services including telephone banking, savings deposits, personal and business loans, credit card financing, foreign currency exchanges, and wire transfer services. The bank mainly serves Pusan metropolitan area through its network of branches. * * * Moody's Investors Service gave Pusan Bank a 'D' Bank Financial Strength Rating effective on March 30, 2006. Fitch Ratings gave Pusan Bank an Individual Rating of 'B/C' effective on September 6, 2005. SK CORP: Adds CZP and EPC Munai to Affiliated Companies ------------------------------------------------------- SK Corp., in a regulatory filing, discloses its addition of two corporate affiliates: 1. DZP (De Zwarte Pont B.V.) 2. EPC Munai LLP SK Corp. holds 50% of DZP while LG International Corp. owns the other 50%. DZP is into exploration or production of oil and gas. DZP has Total Assets of KRW22,201,200 and has Shareholder's Equity and Paid-in Capital of the same amount, according to the Company filing. DZP owns 100% of EPC Munai. The Company filing provides this financial summary for EPC Munai: Total Assets: KRW751,770 Total Liabilities: - Shareholder's Equity: KRW751,770 Paid-in Capital: KRW751,770 With the additions, total affiliates of SK Corp. increased from 166 to 168 as of August 29, 2006. About SK Corporation Headquartered in Seoul, South Korea, SK Corporation -- http://eng.skcorp.com/-- is an energy and petrochemical company with 4,916 employees and 22 offices around the world in 2005. The company is strategically positioned as Korea's largest and Asia's leading refiner next to Sinopec and PetroChina. SK Corp. currently explores, develops and produces oil in 13 nations that span Africa, Asia and the Americas. Moody's Investors Service gave SK Corp. a 'Ba1' Foreign Currency Long-Term Debt Rating effective February 17, 2006. * South's Bond Price Reacts to North's Nuclear Test Plans --------------------------------------------------------- South Korean bond price heavily reacted to news regarding North Korea's plans to test nuclear weapons and a rating agency's say on the effect of that test to the South. On October 3, when the North Korean Government announced plans of nuclear testing, the price of South Korea's five-year credit- default swaps rose, Bloomberg News reported. However, the following day, when Standard & Poor's Ratings Services said that the North's testing won't hurt the South 's debt rating, the risk of owning South's bonds reduced, Bloomberg observed, citing compiled data. Bloomberg pointed out that the price of credit-default swaps based on $10 million of South Korea's dollar-denominated bonds dropped to US$23,550 on October 4 from US$23,900 a day earlier. The five-year contracts pay the buyer face value in exchange for the notes if the South Korean government fail pay its obligations on time, Wes Goodman of Bloomberg explains. Credit default swaps are used to speculate on a country's ability to repay debt, Bloomberg added. =============== M A L A Y S I A =============== CHIN FOH: Posts MYR3-Million Loss for 2006 2nd Quarter ------------------------------------------------------ On August 29, 2006, Chin Foh Berhad submitted to Bursa Securities its unaudited financial report for the second quarter ended July 31, 2006. For the 2006 2nd Quarter, the company's registered revenue was MYR84.732 billion, higher than the MYR81.927-billion revenue it posted for the same quarter last year. Chin Foh recorded a loss before tax of MYR2.669 billion for the 2006 2nd Quarter, a significant reduction compared with the MYR43.440-billion loss before tax for the 2005 2nd Quarter. The company's financials for the quarter ended July 31, 2006, also revealed a MYR2.71-billion loss, compared with the MYR43.76-billion loss posted for the quarter ended July 31, 2005. There is no dividend paid in the current quarter ended July 2006. About Chin Foh Berhad Malaysia-based Chin Foh Berhad is principally involved in trading and distribution of metal base and non-metal base products, construction materials, panels and non-ferrous metal products. Its other activities include manufacturing of glass, aluminium extrusions, stainless steel and related products, rotary aluminium ventilators, providing, cutting and slitting of metal and other related services, general contracting, design, fabrication, supply and installation of curtain wall and cladding and holding properties and investments. Operations are carried out in Malaysia, Australia, and China. The Company started posting losses in fiscal 2002 due to high operating expenses and has not recovered since. Chin Foh's financials for the quarter ended June 30, 2006, revealed a MYR2.71-billion loss, compared with the MYR43.76-billion loss posted for the quarter ended June 30, 2005. It also reported a higher cash flow deficit of MYR30,816,000 as of April 30, 2006, compared to a cash flow deficit of MYR17,701,000 on April 30, 2005. DIGITAL LIGHTWAVE: Has US$58 Million Stockholders' Deficit ---------------------------------------------------------- At June 30, 2006, Digital Lightwave Inc.'s balance sheet showed US$58,504,000 in total stockholders' deficit from total assets of US$6,394,000 and total liabilities of US$64,898,000. The company's balance sheet at June 30, 2006, also showed strained liquidity resulting from total current assets of US$6,162,000 and total current liabilities of US$64,564,000. For the three months ended June 30, 2006, the company's net loss decreased to US$4,862,000 from net loss of US$8,090,000 in the three months ended June 30, 2005. The company's net sales for the quarter ended June 30, 2006, also decreased to US$1,992,000 from net sales of US$2,670,000 in the same period last year. A full-text copy of the company's financial report for the three months ended June 30, 2006 is available for free at: http://researcharchives.com/t/s?119e Based in Clearwater, Florida, Digital Lightwave Inc. designs, develops and markets products for installing, maintaining and monitoring fiber optic circuits and networks. The company's product lines include: Network Information Computers, Network Access Agents, Optical Test Systems, and Optical Wavelength Managers. The company's wholly owned subsidiaries are Digital Lightwave (UK) Limited, Digital Lightwave Asia Pacific Pty, Ltd., and Digital Lightwave Latino Americana Ltda. The company has presence in Malaysia, Australia, Canada, Denmark, France, Greece, Hong Kong, India, Indonesia, Korea, Mexico, Singapore, Thailand, among others. KIG GLASS: Still Unable to Pay Loan Payment Default --------------------------------------------------- KIG Glass Industrial Berhad and its subsidiaries were unable to service loan repayments to banks and financial institutions as KIG Glass and one of its subsidiaries -- Ziabo Jiali -- had ceased operations. As of August 31, 2006, KIG Glass' defaults totaled to MYR79,346,425. The defaulted payments of KIG Glass' subsidiary KIG Ceramics Industrial Sdn. Bhd. also form part of the MYR79-million unpaid balance. As of August 31, 2006, KIG Ceramics is in default to four banks for principal and interest totaling MYR28,090,593. About KIG Glass Industrial Headquartered in Johor Darul Ta'zim, Malaysia, KIG Glass Industrial Berhad -- http://www.kedaung.com/-- manufactured and sold glassware, glass blocks and carton boxes. The firm's other activities included manufacturing of ceramic roof tiles. Its operations were carried out in Malaysia and China. Due to its inability to pay debts, the Company ceased operation in May 2005. As of December 31, 2005, the KIG Group's accumulated losses stood at almost MYR300 million. The shareholders funds in the KIG Group were in deficit of approximately MYR93 million while its total borrowings amounted to approximately MYR104 million. As of June 30, 2006, the group has total assets of MYR57,173,000 and total liabilities of MYR153,698,000, resulting into a stockholders' deficit of MYR96,525,000. LITYAN HOLDINGS: Will Remove Securities from SC on October 13 ------------------------------------------------------------- The securities of Lityan Holdings Berhad will be removed from the official list of the Bursa Securities at 9:00 a.m. on October 13, 2006. However, Lityan's securities will continue to remain deposited with the Bursa Depository. As reported by the Troubled Company Reporter - Asia Pacific on Oct. 3, 2006, the Securities Commission has rejected Lityan's application for a review of the company's Proposed Restructuring Scheme. An earlier TCR-AP report stated that the Securities Commission denied Lityan Holdings' restructuring proposal as there were issues that raised concerns regarding the Scheme. About Lityan Holdings Headquartered in Selangor Darul Ehsan, Malaysia, Lityan Holdings Berhad -- http://www.lityan.com.my/-- sells and provides maintenance services and rental of computer equipment, peripherals, telecommunication equipment and related services. The Company's other activities include provision of building maintenance and management services, developing and marketing of new client-server programming tools and application software, operation of public mobile data network, property investment and investment holding. The Group carries out its operations in Malaysia and the Philippines. On May 10, 2005, the Company was classified as an affected listed issuer pursuant to Bursa Malaysia Securities Berhad's Practice Note 17 category. On January 16, 2006, the Company entered into a conditional Restructuring Agreement to undertake the Proposed Restructuring Scheme with the intention of restoring the Company onto stronger financial footing via an injection of new viable businesses. Lityan's consolidated balance sheet as of June 30, 2006, revealed current assets of MYR38,695,000 available to pay total liabilities of MYR142,144,000 coming due within the next 12 months. The company has total assets of MYR70,551,000 and total liabilities of MYR145,676,000, resulting into a stockholders' deficit of MYR78,839,000. MENTIGA CORPORATION: Regularizes Financial Condition ---------------------------------------------------- On October 2, 2006, Mentiga Corporation Berhad has regularized its financial condition and no longer triggers any of the criteria under paragraph 2.0 of Practice Note 4/2001 of the Listing Requirements of Bursa Securities. Mentiga Corporation's entire issued and paid-up share capital comprising 60,000,000 Shares were quoted on the Main Board. In a report by the Troubled Company Reporter - Asia Pacific, Mentiga Corporation Berhad disclosed on September 28, 2006, that it has completed its corporate exercises after the listing and quotation of: -- 12,500,000 new ordinary shares of MYR1.00 each issued pursuant to the Debt Settlement; and -- 10,000,000 new ordinary shares of MYR1.00 each issued pursuant to the conversion of 10,000,000 RCPS. Moreover, the TCR-AP recounts that Mentiga Corporation's restructuring or corporate exercise comprised these proposals: (i) revaluation of the Property Assets of Mentiga and its subsidiaries; (ii) debt settlement via the issuance of 12,500,000 new ordinary shares at an issue price of MYR1.00 per share to Amanah Saham Pahang Berhad, a major shareholder, as settlement to the amount owed by the Company to ASPA which amounted to MYR12,500,000; (iii) restricted issue of 20,000,000 new redeemable convertible preference shares of MYR1.00 each at an issue price of MYR1.00 per RCPS to ASPA. (iv) Disposal of 18,900 ordinary shares of by Selat Bersatu Sdn Bhd in PT Rebinmas Jaya "PTRJ" representing an entire 90% equity interest in PTRJ to Delloyd Plantation Sdn Bhd and Taipan Hectares Sdn Bhd, for a cash consideration of MYR61,200,000. About Mentiga Corp. Headquartered in Pahang Darul Makmur, Malaysia, Mentiga Corporation Berhad is engaged in the trading of timber products, construction and property development and management and advisory services to oil palm plantations. In 2003, the Company proposed to undertake a debt-restructuring program to settle its debt with creditors. The Group has submitted a revised comprehensive proposal to the Securities Commission on March 16, 2005, to regularize its financial condition and to restore the Group's shareholders' fund from being in a deficit position in order to remove Mentiga from being classified as a Practice Note 4 company. As of June 30, 2006, Mentiga has total assets of MYR85,632,000 and total liabilities of MYR156,970,000, resulting into a stockholders' deficit of MYR71,338,000.- MOL.COM BERHAD: Subsidiary Inks Sale Deal with Halex Woolton ------------------------------------------------------------ LKH Wires & Cables Sdn Bhd, a subsidiary of MOL.COM Berhad, has entered on October 2, 2006, into a sale and purchase agreement with Halex Woolton Sdn Bhd pertaining to a land property. The land property is held under Geran Mukim 826, Lot 142, Mukim of Plentong, in the District of Johor Bahru, Johor, and is together with a single-storey detached factory with an annexed double-storey office building, a single-storey warehouse, a single-storey workshop, a canteen and a guard house. It is located off the 18.5 kilometre post of the Johor Bahru - Kota Tinggi main road, at the rear of the weighbridge of Jabatan Pengangkutan Jalan in Ulu Tiram, Johor. The land property was sold by LKH Wires to Halex Woolton for MYR10.111 million, to be paid by this manner: -- MYR2.0222 million will be paid upon the execution of the sale and purchase agreement; and -- MYR8.0888 million will be paid within two months from the unconditional date. The property has been charged as part of MOL's collateral for a loan facility amounting to MYR16.65 million, granted by Alliance Bank (M) Berhad. In order to facilitate the proposed disposal, LKH Wires will use the consideration of MYR10.111 million to pay the redemption amount so as to procure the discharge. The proceeds from the proposed disposal of MYR10.111 million will be utilized for the partial repayment of the loan facility extended to MOL. The application for the proposed property disposal is expected to be submitted to the Securities Commission by December. Moreover, the parties expect to complete the proposed property disposal by the first quarter of 2007. About MOL.com Berhad Headquartered in Selangor Darul Ehsan, Malaysia, MOL.com Berhad -- http://www.mol.cc/-- is an investment holding company focused in Internet and Internet related companies in Malaysia. The company is listed on the Malaysia Exchange. The Group's principal activities are manufacturing and selling of electrical components, equipment, apparatus, audio visual, security systems and related products. It also imports electrical and theatrical machinery and apparatus for lighting; provides Internet related services, interactive learning portal; Internet media and e- commerce; sells lamps, bulbs and electrical appliances. MOL has been hit hard by the downturn in the Internet sector, particularly since many of its investments were in Web properties. Its shares are listed on the Kuala Lumpur Stock Exchange, but due to very low liquidity, a sale to the public market is very difficult. In March 1, 2002, the Company was categorized under Bursa Practice Note 4 and was ordered to immediately regularize its financial condition. The Company was able to come out of the PN4 Category on May 5, 2003, after implementing a rights issue exercise. On May 8, 2006, the Company was again ordered to formulate a financial regularization plan pursuant to its recent admission to the Bursa Malaysia Securities Berhad's Practice Note 17 category. PANGLOBAL BERHAD: Hearing of Restraining Order Moved to Oct. 9 -------------------------------------------------------------- Panglobal Berhad has disclosed that the hearing of the Restraining Order filed by Taisho Company Sdn Bhd has been moved to October 9, 2006. The hearing, which was originally scheduled on Sept. 18, 2006, had been first postponed to Oct. 3. Both Panglobal and Taisho have applied for the extension of the hearing of Restraining Order. Pursuant to Section 176 (10) of the Companies Act 1965, the High Court of Malaya granted PanGlobal a restraining order on January 5, 2006. In a report by the TCR-AP on Sept. 11, 2006, the solicitors of Taisho filed a sealed summons-in-chambers, together with a supporting affidavit against PanGlobal. Taisho seeks to, among others: -- intervene in the Restraining Order proceedings; -- include Mr. Yip Wai Keong and Mr. Toh Choe Gim as co- defendants; and -- set aside the Restraining Order and extension previously granted. Taisho also requests for leave to commence execution proceedings including winding-up proceedings against PanGlobal. About PanGlobal Berhad Headquartered in Kuala Lumpur, Malaysia, Panglobal Berhad -- http://home.panglobal.com.my/-- is engaged in underwriting all classes of general insurance business, extracting of logs, sawmilling, manufacturing of veneer and extraction of coal. Other activities include property investment and development and leasing of real estate, investment holding, business management, building and fitness club management. PanGlobal is a Practice Note 4/2001 company. The Bursa Malaysia Securities has required the Company to regularize its financial condition, curb huge losses and settle debts in order to continue operating. The Company has already submitted a Proposed Restructuring Scheme to the Securities Commission on September 9, 2005. On April 6, 2006, the Securities Commission approved PanGlobal Berhad's proposed restructuring scheme. The Company's June 30, 2006 balance sheet revealed total assets of MYR692.907 million and total liabilities of MYR905.548 million, resulting to a stockholders' deficit of MYR354.833 million. VERIFONE INC: S&P Rates Proposed US$540 Million Facility at BB- ------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB-' corporate credit rating on San Jose, California-based VeriFone, Inc., and assigned its 'BB-' debt rating, with a recovery rating of '3', to the proposed US$540 million first-lien bank facility. The bank facility consists of a US$40 million revolving credit facility and a US$500 million term loan. Proceeds from the facility, along with approximately US$475 million of cash and equity, will be used to fund the acquisition of Lipman Electronic Engineering Ltd. The outlook is negative. "The ratings on VeriFone reflect the company's increased debt leverage, acquisitive growth strategy, and relatively short financial history as an independent entity," said Stndard & Poor's credit analyst Martha Toll-Reed. These factors are partially offset by VeriFone's leading position in the niche market for electronic payment solutions, a diversified customer base and, pro forma for the proposed acquisition, expanded market and product base. VeriFone designs, markets and services system solutions that enable secure electronic payments. Organic revenue growth has accelerated over the past two years, benefiting from management's focus on increasing penetration of electronic payments in international markets, replacement of existing solutions to accommodate newer payment applications, and an overall market shift from paper-based transactions to electronic transactions at the point of sale. The company reported revenues of US$148 million in the quarter ended July 31, 2006, up 17% over the prior year period. EBITDA margins have benefited from increased operating leverage and are currently in the low-20% range. However, the Lipman acquisition will be VeriFone's largest to date, and could pose integration and operational challenges. VeriFone Inc. is headquartered in Santa Clara, California, and is a global market leader in the development and sale of point- of-sale electronic payment systems. The company has operations in Malaysia, Argentina, Australia, Brazil, China, France, India, Poland, the United Kingdom, the United States, among others. The Moody's Investors Service has affirmed the Corporate Family Rating of B1 of VeriFone and revised the rating outlook to stable from negative. At the same time, Moody's assigned ratings to new bank credit facilities that VeriFone will use to finance its pending acquisition of Lipman Electronic Engineering Ltd. ===================== P H I L I P P I N E S ===================== * Philippine Inflation Likely Eased in September, Economists Say ---------------------------------------------------------------- Inflation in the Philippines likely eased for the sixth straight month in September on the back of a stronger peso and lower oil prices, economists say. According to economists polled by XFN-Asia, the consumer price index in September probably rose by 5.7%-6.2% year-on-year compared to the 6.3% rise recorded in August. Banco de Oro market strategist Jonathan Ravelas projects inflation in September to come in at around 6.0%-6.1%. "Lower oil prices weighed on inflation and this was helped by the continued strengthening of the peso," Mr. Ravelas says. The peso closed at 50.21 to the US dollar on September 27, 2006, the last trading day for the month, from 50.80 at the end of August. It rallied to as high as 49.95 on October 2, 2006 -- its strongest since May 2002 -- on the back of continued strong remittances from Filipinos abroad. Singapore-based economist Song Seng Wun of CIMB-GK Research is looking at a September CPI rise of 6.2%, the same rate projected by DBS Bank's research group. University of Asia and the Pacific economist Victor Abola sees inflation in September easing to 6.0%, while ATR Kim Eng Securities research head Luz Lorenzo sees an even lower figure of 5.7%. "Oil prices are going down and are coming from a high base in the previous year as pump level increases last month were lower," Abola says. Mr. Abola says that except for the last week of September when typhoon Xangsane devastated parts of Luzon and the Visayas, favorable weather prevailed during the month, which ensured enough supply and stable prices of major food staples. The continuing appreciation of the peso has also had a positive impact on inflation, Mr. Abola adds. "I don't really believe prices of imported commodities have gone down last month, but the rise was offset by the strong peso. The effect will be reflected on utilities that have currency exchange rate adjustment components like water, electricity, and telephone. That's why inflation will be lower," Mr. Abola explains. "Oil prices are going down; that's it, mainly," Ms. Lorenzo says, adding that inflation could even slow further to 5.4% in October. David Cohen, director of Asian economic forecasting at Action Economics in Singapore, sees September inflation settling at a moderate 6.2%. "Our forecast is in line with consensus and the central bank's projections, with a stronger peso and declining oil prices helping to ease inflationary pressure on the supply side," DBS Bank says in a note. Central Bank governor Amando Tetangco Jr., notes that annual inflation in September likely eased to as low as 5.7%, given lower domestic oil and food prices and a stronger peso. The central bank's September inflation forecast ranges from 5.7% to 6.4%. * * * "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." * World Bank Approves US$410-Million Loan Package ------------------------------------------------- Buoyed by the sustained improvements in the country's fiscal position, the World Bank has granted a US$410-million loan package to the Philippines to finance the Government's health, education, and local development and investment projects. The loan package is broken down into: -- US$200 million for National Program Support for Basic Education; -- US$110 million for National Sector Support for Health Reform Project; and -- US$100 million for the Strategic Local Development and Investment Project. The low-interest loan is payable in 20 years. According to WB Country Director Joachim von Amsberg, the loan, which is the biggest extended by the bank to the country in 10 years was "made possible because of the improved fiscal situation of the country." The loan agreement was signed on October 3, 2006, at the Rizal Hall of Malacanang by Von Amsberg and Finance Secretary Margarito Teves in the presence of President Gloria Macapagal- Arroyo. The President hoped that the approval of the loan package signified the World Bank's "confidence in the things that we have been doing in our economic reforms." The loans follow a new modality under which the World Bank directly finance high-priority line items under the regular national budget. This modality was introduced in response to the Philippine government's request to move away from traditional project-based development assistance and toward a more programmatic and streamlined approach to support national priority programs. * * * "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 ================= AAR CORP: Moody's Assigns Loss-Given-Default Ratings ---------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology, the rating agency confirmed its B1 Corporate Family Rating for AAR Corp. Additionally, Moody's revised its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- 6.875% Notes Payable due 2007 B2 B1 LGD4 55% 2.875% Conv. Notes Payable due 2024 B2 B1 LGD4 55% Sr. Unsecured Notes Shelf (P)B2 (P)B1 LGD4 55% Sr. Subordinated Notes Shelf (P)Caa1 (P)B3 LGD6 97% Preferred Stock Shelf (P)Caa3 (P)B3 LGD6 97% Moody's explains that current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). AAR Corp., (NYSE: AIR) -- http://www.aarcorp.com/-- provides products and value-added services to the worldwide aviation/aerospace industry. With facilities and sales locations around the world, AAR uses its close-to-the-customer business model to serve airline and defense customers through Aviation Supply Chain; Maintenance, Repair and Overhaul; Structures and Systems and Aircraft Sales and Leasing. In Asia Pacific, the company has offices in Singapore, China, Japan and Australia. * * * As of August 31, 2006, the company's balance sheet showed total assets of US$978.80 million and total liabilities of US$544.24, resulting into US$434.66 million in shareholders' equity. ARINC INCORPORATED: Moody's Assigns Loss-Given-Default Ratings -------------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology, the rating agency confirmed its Ba3 Corporate Family Rating for Arinc Incorporated. Additionally, Moody's revised its probability-of-default ratings and assigned loss- given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- Sr. Secured Revolving Credit Facility due 2009 Ba3 Ba3 LGD3 48% Sr. Secured Term Loan B due 2011 Ba3 Ba3 LGD3 48% Moody's explains that current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). Annapolis, Maryland-based, ARINC Inc. -- http//www.arinc.com/ -- provides communications and IT services to the global aviation industry and the U.S. military and other government agencies. The company has locations in Germany, Spain, China, Japan, Taiwan, Thailand and Singapore, among others. DEFAR (S) PTE: UOB Files Wind-Up Petition Against Company --------------------------------------------------------- On September 7, 2006, United Overseas Bank Limited has filed an application to wind up Defar (S) Pte Ltd. Creditors are required to submit proofs of debts to the solicitors of the petitioner. The Petitioner's Solicitors can be reached at: Rajah & Tann 45 Maxwell Road #05-11/#06-11 The URA Centre (East Wing) Singapore 069118 LINENCARE LAUNDRY: Court to Hear Wind-Up Petition on Oct. 13 ------------------------------------------------------------ Ho Kum Chin filed an application to wind up Linencare Laundry & Drycleaning Services Pte Ltd on September 21, 2006. The High Court of Singapore will hear the wind-up petition on October 13, 2006, at 10:00 a.m. The Petitioner's Solicitors can be reached at: Tanlim Partnership 101 Cecil Street #19-02 Tong Eng Building Singapore 069533 LKN-PRIMEFIELD: Changes Name to HLG Enterprise Limited ------------------------------------------------------ LKN-Primefield Company Pte Ltd disclosed on October 2, 2006, that its shareholders approved a resolution to change its name from LKN-Primefield to HLG Enterprise Limited during their extraordinary general meeting held on Sept. 29, 2006. The company's change of name is effective by September 29, 2006. About LKN-Primefield Company Pte Ltd LKN-Primefield Company Pte Ltd is a Singapore-based company involved in investment holding and investing in property for rental. Through a number of subsidiaries, the company is engaged in building and civil engineering construction; the construction of crude oil tanks and piping systems; commercial and home repair works and the provision of related maintenance services; property development, investment and management; property rental; the operation of hotels and restaurants, and the provision of hotel management and consultancy. LKN- Primefield is also involved in the manufacture, retail sale, distribution, import and export of computer hardware (including computer peripherals) and software, and the development of multimedia transactional payphone kiosks. In addition, it is an ESDN electronic service delivery network provider that owns and operates a large network of public broadband transactional terminals. The company's operations are mainly concentrated in Singapore, China and Indonesia. On November 29, 2004, LKN-Primefield and certain of its subsidiaries entered into a debt restructuring plan with the company's bondholders. HSBC Trustee (Singapore) Ltd. acted as the trustee for the bondholders; KPMG Business Advisory Pte. Ltd. acted as New Restructuring Agent/Independent Special Consultant/Paying Agent. MAE ENGINEERING: Inks Purchase Agreement with Eligro ---------------------------------------------------- Mae Engineering Limited has entered on September 27, 2006, into a sale and purchase agreement with Eligro Sdn Bhd and Lereno Sdn Bhd to acquire 4,768,396 ordinary shares of MYR1 each in the capital of Lereno representing 38% of the 12,548,410 ordinary shares of the issued and paid-up capital of Lereno. Eligro will authorize Mae Engineering to issue and allot the New Mae shares to its shareholder nominess who are David John Beresford-Long, Fong Soon Leong, Giorgio Vanalli, Gian Franco Longhini, Ho Siau Chiang, and Spektra Anggun Sdn Bhd. Subsequently, on Sept. 28, 2006, a Supplemental deed supplementary to the sale and purchase agreement was signed to rectify and supplement certain terms contained in the purchase agreement. Together with the deed, it will form the full agreement between the parties for the sale and purchase of the 38% interest in the share capital of Lereno. The consideration for the Proposed Acquisition is to be satisfied by the issuance and allotment of up to an aggregate of 350 million new ordinary shares in the capital of Mae Engineering to Eligro at an issue price of of SGD0.05 for each new Mae share, representing approximately 29.66% of the enlarged share capital Mae Engineering under the issuance of the new Mae shares. The Proposed Acquisition is in line with Mae Engineering's new stategy. The strategic purchase into Lereno to become its largest single shareholder will enable Mae Engineering to: -- spearhead Mae Engineering move from a highly competitive business which traditionally experiences marginal profits to new business like oleo-chemical production, new generation biofuel production, and oil palm plantations which are capable of commanding higher growth rates and margins, given the increased global demand for alternative and renewable sources of energy; -- capitalize on the technology and Lereno's established and pole position in Asia where the two world's largest palm oil producing countries, Malaysia and Indonesia are located; -- immediate access to technical know-how and specialist skills of Lereno; and -- retain and redeploy some of the specialist engineering skills and expertise in Mae Engineering to support the new venture, so as to develop and to meet the demands of process engineering in the new fields of biotech production. The proposed acquisition s financed by the issuance of new shares of Mae Engineering, thus preserving the cash raised from the Rights Issue. Headquartered in Singapore, MAE Engineering Limited is engaged in the provision of integrated electrical and mechanical engineering services including designing, planning and procurement. These services are categorized into electrical installations, mechanical installations, electrical power supply installations, instrumentation and building automation as well as maintaining electrical and mechanical systems. The Group also offers consulting and specialist services to oceanariums and aquariums. The Group has disposed off its prawn and fish farming as well as edutainment businesses, after suffering accumulated losses of SGD48 million as of September 30, 2005. The company also suffered a liquidity crunch since September 30, 2005, when its total current liabilities of SGD23,695,000 exceeded its total current assets of SGD5,582,000. As of March 31, 2006, the company's balance sheet showed SGD7,404,000 in total assets and SGD27,257,000 in total liabilities, resulting in a SGD19,853,000 stockholders' equity deficit. The Company's March 31 balance sheet also revealed strained liquidity with SGD6,346,000 in total current assets available to pay SGD27,200,000 in total current liabilities coming due within the next 12 months. SEE HUP SENG: Unveils Major Shareholders' Changes of Interest ------------------------------------------------------------- On October 3, 2006, See Hup Seng Limited has posted its shareholders' change of interest with regards to the number of shares the company's shareholders held. Pursuant to the shareholders' agreement, Lim Siok Kwee Thomas, Director and a major shareholder of See Hup Seng transferred his shares. Mr. Lim, holds 13,049,050 shares with 5.8% issued share capital, after the transfer of his shares. Prior to that Mr. Lim held 21,049,050 shares with 9.4% issued share capital. Hsieh Ling Hsien, another major shareholder of See Hup Seng has sold his shares in the open market. Thus, Mr. Hsieh, who holds 2,000,000 shares before with 0.895% issued share capital has reduced his shares to 943,000 shares with 0.422% issued share capital. However, Mr. Hsieh sold all his 943,000 shares by the next day, on Oct. 3, 2006, which left him with no shares in the company. SOUTH-EAST MOTOR: Creditors Must Prove Debts by October 9 --------------------------------------------------------- South-East Motor Supply Company (Pte) Ltd, which was placed under members' voluntary liquidation, requires its creditors to prove their debts by October 9, 2006. Failure to comply with the requirement will exclude the creditor from sharing in the company's distribution of dividend. The company's joint and several liquidators can be reached at: Chia Soo Hien Ng Geok Mui c/o BDO Raffles 5 Shenton Way #07-01 UIC Building Singapore 068808 =============== T H A I L A N D =============== SRITHAI FOOD: Posts THB30.518-Million Net Loss in 2006 1st Half --------------------------------------------------------------- Srithai Food and Beverage Pcl posted a THB30.518-million net loss on THB65.621 million in revenues for the first half period ended June 30, 2006, compared with the THB64.079-million net loss recorded in the first half of 2005. The company's consolidated balance sheet at the end of June 2006 showed strained liquidity with THB24.035 million in current assets available to pay THB2.421 billion in current liabilities coming due within the next 12 months. In addition, Srithai and its subsidiaries are facing solvency problem with THB591.458 million in total assets and THB2.422 billion in total liabilities as of June 30, 2006. The company posted a capital deficiency of THB1.830 billion. Full-text copies of the Company's financials for the first half period ending June 30, 2006, are available for free at: http://bankrupt.com/misc/SRIE2-bs-1h.xls * * * Headquartered in Amphoe Bang Phli Samut Prakarn, Thailand, Srithai Food & Beverage Public Co Ltd -- http://www.srithaifood.thailand.com/-- markets and manufactures seasoning, sauce, beverages, and personal care products. The Troubled Company Reporter - Asia Pacific reported that the securities of Srithai Food & Beverages Public Co Ltd were placed in the "Non-Performing Group" sector of the Stock Exchange of Thailand on August 29, 2006. According to TCR-AP, SRI has been subjected to a rehabilitation plan under the REHABCO sector of the SET since June 9, 2004. The SET, after reviewing the latest financial statements of the Company submitted on August 15, 2006, said that SRI did not resolve its problems in line with the SET criteria. TOTAL ACCESS: Seeks NTC Action Against AIS Price-Dumping -------------------------------------------------------- Total Access Communications, along with True Move, petitioned the National Telecommunications Commission to look into the alleged price-dumping strategy by market leader Advanced Info Service, which is offering rates as low as THB1.00 per call, The Bangkok Post reports. According to The Post, both companies told NTC that the AIS marketing campaign, announced this week, are in breach of competition rules and international market dominance standards. Based on NTC's anti-monopoly regulations, which went into effect last month, unfair competition is defined as an operator with more than 25% market share pricing calls below cost in order to put a squeeze on its rivals, The Nation relates. Supachai Chearavanont, True Move's chief executive officer, told The Nation that AIS is undercutting smaller players by swamping their networks with a flood of calls through its rock-bottom pricing promotions. As a response, NTC Chairman Gen. Choochart Promprasit told The Post that he would summon AIS for discussions within the week, although he said that the existing telecom business law did not stipulate minimum prices but only ceiling prices to prevent collusion by operators and protect consumers. Meanwhile, AIS President Wichian Mektrakarn said that the promotion was for its new subscribers only and the rate was not lower than the company's cost. * * * Total Access Communications, DTAC -- http://www.dtac.co.th/-- is the second-largest cellular operator in Thailand with an approximately 30% market share and strong brand recognition. With Telenor's recent purchase of a 39.9% interest in United Communication Industry Plc and its subsequent tender offers for UCOM and DTAC shares, Telenor lifted its aggregate economic interest in DTAC to 70.2% from 40.3%. DTAC is Telenor's largest acquisition in Asia and it ranks second in terms of EBITDA contribution outside Norway. * * * Standard and Poor's gave the Company a BB+ Long-term local and foreign issuer credit ratings. DTAC's local and foreign issuer credit were both given a Ba1 rating by Moody's Investor Service. Fitch Ratings on July 18, 2006, has affirmed DTAC's Long-term foreign currency Issuer Default Rating at BB+ and National Long- term rating at A(tha). The company's National Short-term rating was also affirmed at F1(tha). The Outlook on the ratings is Stable. TRUE CORP: Launches Two New Phone Packages for Hearing-Impaired --------------------------------------------------------------- True Corp Plc is all set to launch two mobile-phone packages specifically for hearing-impaired people, the first of their kind in Thailand, The Nation reports. Supachai Chearavanont, True Corp's chief executive officer, said the packages would target deaf people who are registered with the Social Development and Human Security Ministry. The Nation relates that there are 200,000 to 300,000 deaf people in Thailand, 89,985 of whom are registered with the ministry. The two packages, one for sending short messages only and another for both SMS and Internet access, each feature two monthly fee choices. Under the SMS-only deals, users can choose between 800 text messages per month for THB250 or 1,600 text messages per month for THB499. The SMS and Internet deals both offer 1,600 SMS per month and subscribers can choose between Internet access at a speed of 56 kilobits per second for THB599 per month or 256 kilobits per second for THB799 per month. Both packages offer a call rate of THB1 per minute, available in case if a deaf subscriber wants someone to make a call for them. Extra messages under both packages are charged at THB1 each. Prior to disclosing the deals, The Nation relates that True connected the national branch of the Thai Deaf Club with the high-speed Internet access free of charge. * * * True Corporation Public Company Ltd's -- http://www.truecorp.co.th/--- principal activities are the provision of telecommunication services and various value-added- services that includes: Digital Data Network Direct Inward Dialing, Integrated Service Digital Network, Public Telephone, Personal Communication Telephone Service, Multimedia and Internet Service Provider. Other activities include training services, online games, rental services and investment holding. Standard & Poor's Ratings Services, on July 27, 2006, affirmed its BB long-term corporate credit rating on True Corp Public Co Ltd. The outlook is stable. True Corp also currently carries Moody's corporate family rating at Ba3, with stable outlook. ********* 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. TCR-AP subscription rate is $575 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***