/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/061013.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, October 13, 2006, Vol. 9, No. 204 Headlines A U S T R A L I A BURNS PHILP: Rank Group Offer Period Extended to November 3 CREDIT SUISSE: Members' Final Meeting Slated for October 19 CREDIT SUISSE DISCOUNT: Final Meeting Scheduled on October 19 CREDIT SUISSE FINANCIAL: Members to Meet on October 19 CREDIT SUISSE PACIFIC: Members to Receive Wind-Up Report CREDIT SUISSE REGISTERED: Members' Final Meeting Set on Oct. 19 CREDIT SUISSE RESTRUCTURING: Members to Hold Final Meeting CSFB AUSTRALIA: Liquidator to Present Wind-Up Report ELAN TECHNOLOGY: To Declare First and Final Dividend on Oct. 17 FIMISTER PTY: Members Opt for Voluntary Wind-Up HENLEY LODGE: Enters Wind-Up Proceedings HLB (AUSTRALIA): Final Meeting Slated for October 19 HOME OF BRIDES: Creditors Must Prove Debts by October 24 INDUSTRIAL TRADE: To Declare First Priority Dividend on Oct. 20 L K WINES: Faces Wind-Up Proceedings OMEGA AVIATION: Prepares to Declare Priority Dividend on Oct. 30 PLT ENGINEERING: To Distribute First and Final Dividend PSU HOLDINGS: To Declare First Dividend on October 25 RICAND PTY: Inability to Pay Debts Prompts Wind-Up RIVET GROUP: Members Decide to Wind Up Operations SALT INVESTMENTS NO2: Sole Member Resolve to Wind-Up Operations SCC 546: Commences Wind-Up Proceedings SCC 620: Members Opt to Wind Up Operations SCC 737: Members Resolve to Close Business SCW 165: Members Pass Resolution to Wind Up Operations SMART LANDSCAPES: Members Agree on Voluntary Liquidation SOUTHCORP WINES: Commences Wind-Up of Operations STEINER HOLDINGS: Members Agree to Liquidate Business SUN CM PTY: Will Declare Final Dividend on November 6 TEMPLAR CORPORATION: Courts Order Wind-Up of Business TERRA ENTERPRISES: Creditors to Prove Claims on October 31 WYCHWODE INVESTMENTS: Courts Issue Wind-Up Order C H I N A & H O N G K O N G ATOLL EQUITY: Members to Meet on November 10 BALLY TOTAL: Moody's Assigns Loss-Given-Default Ratings BIO-RAD LABORATORIES: Moody's Assigns Loss-Given-Default Ratings BIOPHARM GLOBAL: Members' Final Meeting Fixed on November 6 CHEER LONG: Falls into Wind-Up DADE BEHRING: Moody's Confirms Ba1 Corporate Family Rating FIRST FORTRESS: Creditors' Proofs of Claim Due on November 6 FORTIS INVESTMENT: Members' Meeting Slated for November 6 INVERNESS MEDICAL: Moody's Confirms B3 Corporate Family Rating JIANGXI COPPER: To Take Part in Canada Mine Development KELLY CONSTRUCTION: Court Favors Wind-Up KUKAN INTERIORS: Creditors to Prove Claims on November 6 KWONG YUEN: Intends to Declare Dividend NEW ZEALAND FIRE: Court Appoints Liquidators and Inspectors OCEAN JET: Court Names Joint Liquidators PACIFIC SECURITIES: Fitch Assigns Individual D/E Rating PALMERSTON CONFECTIONERY: Members & Creditors to Meet on Nov. 7 PETROLEOS DE VENEZUELA: Cuts Back Oil Production to Stem Prices PETROLEOS DE VENEZUELA: Spends More on Social Programs SECURE COMPUTING: Moody's Assigns Loss-Given-Default Rating SHANGHAI OFFSHORE: Names Liquidators and Committee of Inspection TECHANCES DEVELOPMENT: First Meetings Scheduled on October 19 TECHNOCITY INTERNATIONAL: Final Members' Meeting Set on Nov. 7 UGS CORP: Moody's Assigns Loss-Given-Default Rating YING KONG: Creditors Must Prove Debts by November 5 YIP FUNG: Court Issues Wind-Up Order I N D I A EMCO LTD: Allocates 3,00,000 Equity Shares to Director S. Jain FEDERAL BANK: To Convert Defunct FBFS to Marketing Arm FEDERAL BANK: To Find Bank for Acquisition This Year FEDERAL BANK: BoD To Meet on Oct. 20 to Consider 2nd Qtr Results * Blue Chips Lead Market Recovery, CRISIL Observes I N D O N E S I A ALCATEL SA: Signs Converge Network Project with Golden Telecom ALCATEL SA: Inks EUR25 Million Next-Generation Network Contract ANIXTER INTERNATIONAL: Moody's Assigns Loss-Given-Default Rating ANIXTER INT'L: Settling Income Tax Liabilities with the IRS AVNET INC: Awaits NYSDEC Final Approval to N.Y. Remediation Plan BEARINGPOINT INC: S&P Holds Corp. Credit & Debt Ratings on Watch BEARINGPOINT: Moody's Cuts Ratings on US$450 Million Bonds to B3 CANWEST MEDIAWORKS: Selling Two Radio Stations for US$15 Million CORUS GROUP: Tata Steel to Launch a GBP5-Bln Takeover Bid DIRECTED ELECTRONICS: Omega's Patent Violation Suit in Discovery DIRECTED ELECTRONICS: Weak Finances Spur S&P to Cut Ratings INCO LTD: CVRD Obtains European Clearance for Inco Offer INCO LTD: Union Steelworkers Ratify Agreement With Voisey's Bay GNC CORP: Reports Strong Same-Store Sales for Third Quarter 2006 MARSH & MCLENNAN: CEO Responds to Putnam Purchase Inquiries J A P A N ADVANCED MEDICAL: Moody's Assigns Loss-Given-Default Ratings AMAZON.COM: Moody's Assigns Loss-Given-Default Ratings BCBG MAX: Moody's Assigns Loss-Given-Default Ratings BRADLEY PHARMA: Costa Brava Seeks Support for Board Nominees JDA SOFTWARE: Moody's Assigns Loss-Given-Default Rating MILLIPORE CORPORATION: Moody's Assigns Loss-Given-Default Rtgs. NUANCE COMMS: Moody's Assigns Loss-Given-Default Rating SHAW GROUP: Prices JPY128.98 Billion Limited-Recourse Bonds SOFTBANK CORP: S&P Affirms BB- Rating on EUR500-Million Notes SOFTBANK CORP: Announces Terms For Issue of Senior Notes SOFTBANK MOBILE: Says Mobile Phone Users Rise 23,400 in Sept. SUMITOMO MITSUI BANKING: Parent Cancels JPY195B Pref. Stock SUMITOMO REALTY: Profit More Than Doubles Year Ending March TAIHEIYO CEMENT: Posted Net Income of JPY616M for First Qtr TAIHEIYO CEMENT: Targest JPY23 Billion for Fiscal Year 2007 TOCHIGI BANK: Posts JPY4-Billion Income for Full Year 2005-2006 K O R E A CONMED CORPORATION: Moody's Assigns Loss-Given-Default Ratings HYNIX SEMICONDUCTOR: Completes Construction of US$2-Bil. Plant WOORI BANK: Most Profitable Lender in 2007, President Says M A L A Y S I A AKTIF LIFESTYLE: Appeals Committee to Rule on Extension Request CYGAL BERHAD: Given Five Days to Show Cause Over Delisting Issue LITYAN HOLDINGS: Appeal Defers Delisting to November 23, 2006 PAN MALAYSIA CAPITAL: Regularizes Financial Condition PAN MALAYSIA HOLDINGS: Regularizes Financial Conditions N E W Z E A L A N D AIR NEW ZEALAND: Airport Services Division Jobs at Risk AM PM CALLING: Court Appoints Joint Liquidators ARCHEFECTS LTD: Creditors' Proofs of Debt Due on October 16 CLINTON TAXATION: Appoints Joint and Several Liquidators DSN HOLDINGS: Creditors' Proofs of Claim Due on October 31 HOWLING LTD: Creditors Must Prove Debts by December 11 INFINITY BAR: Creditors Must Prove Debts by October 16 MOUNTAIN ROAD: Creditors' Proofs of Debt Due on October 20 PILCHERS WATERPROOFING: Creditors' Proofs of Claim Due Oct. 20 RAMJET CONTRACTORS: Creditors' Proofs of Claim Due on Dec. 18 * New Zealand Insolvency Practitioners Rules Up for Discussion P H I L I P P I N E S METROPOLITAN BANK: To Sell 173.62 Million Primary Shares METROPOLITAN BANK: Grants US$40 Million Term Loan to IMI RIZAL COMMERCIAL BANKING: Fitch Gives B- Rating to Hybrid Issue SECURITY BANK: BSP Approves Cash Dividend Declaration STENIEL MANUFACTURING: Chinatrust Offer was Exploratory * ING Bank Expects 2006 Inflation to Hit 6.5% S I N G A P O R E AAR CORP: Settlement Amount For Mich. Plant Violations Pending ADVANCED MICRO: Planned ATI Merger Gets Clearance in Taiwan SERENA SOFTWARE: Moody's Assigns Loss-Given-Default Rating SYNIVERSE TECHNOLOGIES: Moody's Assigns Loss-Given-Default Rtg. TARGUS GROUP: S&P Affirms 'B' Corporate Credit Rating TELCORDIA TECHNOLOGIES: Moody's Assigns Loss-Given-Default Rtg. T H A I L A N D KASIKORN BANK: Expects Drop in Bad Loans by Year End KRUNG THAI: Former Head to Receive Verdict Next Month TANAYONG PCL: Issues 4.2 Billion Shares for Capital Increase * Large Companies With Insolvent Balance Sheets - - - - - - - - ================= A U S T R A L I A ================= BURNS PHILP: Rank Group Offer Period Extended to November 3 ----------------------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on October 3, 2006, Rank Group Limited extended its offer period for shareholders to submit their acceptances to October 20, 2006, at 7:00 p.m. The TCR-AP previously reported that the Foreign Investment Review Board in Australia and the Overseas Investment Office in New Zealand have approved the proposed offer of Burns Philp & Company Limited's major shareholder, Rank Group, for all of Burns Philp's shares it does not already hold. In an update, Rank Group advises the Australian Stock Exchange that it has further extended its offer period. Rank Group's offer is now extended to close November 3, 2006, at 7:00 p.m. (Sydney Time). Pursuant to the Corporations Act 2001, the date for giving notice of the status of the conditions of the Offer is October 26, 2006. Rank Group explains that the extension allows sufficient time for the remaining shareholders to accept since a significant number of shareholders have accepted the Offer. Rank Group assures the shareholders that the offer price of AU$1.10 will not be increased. Rank Group also notes that if it does not reach a 90% relevant interest in Burns Philp, the offer will lapse. As of October 12, 2006, Rank Group notes that: (a) it has not freed the Offer from any of the conditions; (b) the Offer has been satisfied with respect to the Foreign Investment and Overseas Investment's approval; and (c) none of the other conditions to the Offer has been fulfilled. Questions regarding the takeover offer should be directed to the Rank Offer Information Line: * 1300-657-039 -- for callers within Australia, * 0800-555-039 -- for callers within New Zealand, or * +613-9415-4353 -- for callers from outside Australia and New Zealand About Burns Philp Burns Philp & Company Limited -- http://www.burnsphilp.com/-- is an Australian based company involved in the production and distribution of food ingredients and consumer branded food, beverage and related products. The Group operates internationally with products including snack foods, breakfast cereals and meal components. Burns Philp has a 20% interest in Goodman Fielder Limited. * * * The Troubled Company Reporter - Asia Pacific reported on Aug. 24, 2006, that Standard & Poor's Ratings Services placed its 'BB-' long-term corporate credit rating on Burns Philp on CreditWatch with negative implications after the company announced that its major shareholder, Rank Group Ltd., proposed to make an offer for all Burns Philp shares that it does not already hold. Rank Group currently owns 57.6% of Burns Philp. CREDIT SUISSE: Members' Final Meeting Slated for October 19 ----------------------------------------------------------- A final meeting will be held for the members of Credit Suisse First Boston Australia Stockbrokers Ltd, on October 19, 2006, at 12:30 p.m. During the meeting, Liquidators Hutchison and Gibbons will report the company's wind-up proceedings and property disposal exercises. The Liquidators can be reached at: Keiran Hutchison John Gibbons Ernst & Young Level 37 680 George Street Sydney, New South Wales 2000 Australia Telephone: 02 9248 5864 CREDIT SUISSE DISCOUNT: Final Meeting Scheduled on October 19 ------------------------------------------------------------- The members of Credit Suisse First Boston Australia Discount Ltd, which is in liquidation, will hold their final meeting on October 19, 2006, at 9:30 a.m. At the meeting, Liquidators Hutchison and Gibbons will show the accounts on the company's wind-up and property disposal exercises. The Liquidators can be reached at: Keiran Hutchison John Gibbons Ernst & Young Level 37 680 George Street Sydney, New South Wales 2000 Australia Telephone: 02 9248 5864 CREDIT SUISSE FINANCIAL: Members to Meet on October 19 ------------------------------------------------------ A final meeting of the members of Credit Suisse First Boston Australia Financial Products Ltd, which is in liquidation, will be held on October 19, 2006, at 11:30 a.m. At the meeting, Liquidators Hutchison and Gibbons will report on the final accounts of the wind-up proceedings. The Liquidators can be reached at: Keiran Hutchison John Gibbons Ernst & Young Level 37 680 George Street Sydney, New South Wales 2000 Australia Telephone: 02 9248 5864 CREDIT SUISSE PACIFIC: Members to Receive Wind-Up Report -------------------------------------------------------- Members of Credit Suisse First Boston Pacific Capital Markets Ltd, which is in liquidation, will hold a final meeting on October 19, 2006, at 11:00 a.m. Liquidators Hutchison and Gibbons will present an account on the company's wind-up proceedings and property disposal exercises. The Liquidators can be reached at: Keiran Hutchison John Gibbons Ernst & Young Level 37 680 George Street Sydney, New South Wales 2000 Australia Telephone: 02 9248 5864 CREDIT SUISSE REGISTERED: Members' Final Meeting Set on Oct. 19 --------------------------------------------------------------- A final meeting will be held for the members of Credit Suisse First Boston Australia Registered Traders Pty Ltd on October 19, 2006, at 10:30 a.m. During the meeting, Liquidators Hutchison and Gibbons will present the report on the company's wind-up proceedings and property disposal exercises. The Liquidators can be reached at: Keiran Hutchison John Gibbons Ernst & Young Level 37 680 George Street Sydney, New South Wales 2000 Australia Telephone: 02 9248 5864 CREDIT SUISSE RESTRUCTURING: Members to Hold Final Meeting ---------------------------------------------------------- The members of Credit Suisse First Boston Australia Restructuring No. 2 Pty Ltd will hold a final meeting on October 19, 2006, at 12:00 p.m., to receive wind-up accounts from Liquidators Keiran Hutchison and John Gibbons. The Liquidators can be reached at: Keiran Hutchison John Gibbons Ernst & Young Level 37 680 George Street Sydney, New South Wales 2000 Australia Telephone: 02 9248 5864 CSFB AUSTRALIA: Liquidator to Present Wind-Up Report ---------------------------------------------------- Members of CSFB Australia Administration Pty Ltd will convene on October 19, 2006, at 10:00 a.m., to hear the accounts of the company's wind-up proceedings from Liquidators Keiran Hutchison and John Gibbons. According to the Troubled Company Reporter - Asia Pacific, the Company declared a final dividend to creditors on September 26, 2006. The Liquidators can be reached at: Keiran Hutchison John Gibbons Ernst & Young Level 37 680 George Street Sydney, New South Wales 2000 Australia Telephone: 02 9248 5864 ELAN TECHNOLOGY: To Declare First and Final Dividend on Oct. 17 --------------------------------------------------------------- Elan Technology Pty Ltd will declare a first and final dividend for its creditors on October 17, 2006. Creditors who failed to submit their proofs of claim on September 26, 2006, are excluded in the dividend distribution. According to the Troubled Company Reporter - Asia Pacific, the Company declared its first and final dividend to creditors on April 26, 2006. The Liquidator can be reached at: Dean R. Mcveigh Foremans Business Advisors (Southern) Pty Ltd Suite 8, 56-60 Bay Road Sandringham, Victoria 3191 Australia FIMISTER PTY: Members Opt for Voluntary Wind-Up ----------------------------------------------- Members of Fimister Pty Ltd met on September 27, 2006, and decided to voluntarily wind up the company's operations. In this regard, S. J. Hundy was appointed as liquidator. The Liquidator can be reached at: S. J. Hundy Rangott Slaven Hundy Level 3, Engineering House 11 National Circuit, Barton ACT Australia HENLEY LODGE: Enters Wind-Up Proceedings ---------------------------------------- At an extraordinary general meeting held on September 18, 2006, the members of Henley Lodge Pty Ltd formerly trading as MTR Building Services resolved to voluntarily wind up the company's operations. Stan Traianedes was subsequently appointed liquidator at the creditors' meeting held that same day. The Liquidator can be reached at: Stan Traianedes Hall Chadwick Chartered Accountants Level 12, 459 Collins Street Melbourne, Victoria 3000 Australia HLB (AUSTRALIA): Final Meeting Slated for October 19 ---------------------------------------------------- The members of HLB (Australia) Pty Ltd will hold a final meeting on October 19, 2006, at 10:00 a.m. At the meeting, Liquidators David Clement Pratt and Stephen Graham Longley will present a report and give explanations on the company's wind-up proceedings and property disposal exercises. The Liquidators can be reached at: David Clement Pratt Stephen Graham Longley PricewaterhouseCoopers Freshwater Place, 2 Southbank Boulevard Southbank, Victoria 3006 Australia HOME OF BRIDES: Creditors Must Prove Debts by October 24 -------------------------------------------------------- Home of Brides Pty Ltd formerly known as Paddington Hill NewsAgency Pty Ltd will declare the first and final dividend for its creditors. Creditors are required to prove their debts by October 24, 2006, or be excluded from sharing in the distribution. The Troubled Company Reporter - Asia Pacific reported that on May 25, 2006, members of the Company decided to wind up the company's operations due to its inability to pay debts. The Liquidator can be reached at: Daniel Civil Rodgers Reidy Level 8, 333 George Street Sydney, New South Wales 2000 Australia INDUSTRIAL TRADE: To Declare First Priority Dividend on Oct. 20 --------------------------------------------------------------- Industrial Trade Supplies Pty Ltd, which is in liquidation, will declare a first priority dividend to employees on October 20, 2006. Former employees and other priority creditors who were able to admit their debts on September 21, 2006, will share in the dividend distribution. The Official Liquidator can be reached at: I. D. Jessup Jessup & Partners Level 1, 488 Mulgrave Road Earlville, Queensland 4870 Australia L K WINES: Faces Wind-Up Proceedings ------------------------------------ At a general meeting on September 27, 2006, members of L K Wines Pty Ltd decided to voluntarily wind up the company's operations. In this regard, Anthony Wayne Elkerton was appointed as liquidator. The Liquidator can be reached at: Anthony Wayne Elkerton Pitcher Partners Level 3, 60 Castlereagh Street Sydney, New South Wales 2000 Australia OMEGA AVIATION: Prepares to Declare Priority Dividend on Oct. 30 ---------------------------------------------------------------- Omega Aviation Pty Ltd, which is subject to a deed of company arrangement, will declare the first and final priority dividend for its creditors on October 30, 2006. Only those creditors who were able to prove their debts on September 25, 2006, are included from sharing in the dividend distribution. The Joint and Several Deed Administrators can be reached at: J. R. Park L. S. Mcintosh Ramsay Clout Chartered Accountants Suite 2, 63 The Esplanade Maroochydore, Queensland 4558 Australia Telephone:(07) 5479 6411 Facsimile:(07) 5479 6350 PLT ENGINEERING: To Distribute First and Final Dividend ------------------------------------------------------- PLT Engineering Pty Ltd will distribute a first and final dividend for its creditors on October 28, 2006. Creditors who were unable to prove their claims on September 20, 2006, are excluded from the benefit of the dividend. According to the Troubled Company Reporter - Asia Pacific, the Company declared a first and final dividend on June 16, 2006. The Liquidator can be reached at: Adrian Brown Ferrier Hodgson Level 29, 600 Bourke Street Melbourne, Victoria 3000 Australia PSU HOLDINGS: To Declare First Dividend on October 25 ----------------------------------------------------- PSU Holdings Pty Ltd, which is subject to a deed of company arrangement, will declare its first dividend for priority creditors on October 25, 2006. Creditors who were unable to prove their debts on October 10, 2006, are excluded from sharing in the dividend distribution. The Deed Administrator can be reached at: Jack James KordaMentha Level 11, 37 St George Terrace Perth, Western Australia 6000 Australia RICAND PTY: Inability to Pay Debts Prompts Wind-Up -------------------------------------------------- On September 18, 2006, members and creditors of Ricand 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, Andrew James Heard & Timothy James Clifton were appointed as joint and several liquidators. The Joint and Several Liquidators can be reached at: Andrew James Heard Timothy James Clifton PPB Level 10, 26 Flinders Street Adelaide, South Australia 5000 Australia Telephone:(08) 8211 7800 Facsimile:(08) 8211 8922 RIVET GROUP: Members Decide to Wind Up Operations ------------------------------------------------- On September 27, 2006, members of Rivet Group Pty Ltd decided to close the company's operations. Subsequently, Michael Edward Slaven was appointed as liquidator. The Liquidator can be reached at: Michael Edward Slaven Rangott Slaven Hundy Unit 12, Level 3, Engineering House 11 National Circuit, Barton ACT 2600 Australia SALT INVESTMENTS NO2: Sole Member Resolve to Wind-Up Operations --------------------------------------------------------------- On September 15, 2006, the sole member of Salt Investments No 2 Pty Ltd resolved to voluntarily wind up the company's operations and appointed Brian McMaster and Jack James as liquidators. The Liquidators can be reached at: Brian McMaster Jack James KordaMentha Level 11, 35 St Georges Terrace Perth, Western Australia Australia SCC 546: Commences Wind-Up Proceedings -------------------------------------- On September 15, 2006, members of SCC 546 Pty Ltd decided to voluntarily wind up the company's operations. The Liquidator can be reached at: R. A. Ferguson c/o Fergusons Chartered Accountants Level 8, 115 Grenfell Street Adelaide, South Australia 5000 Australia SCC 620: Members Opt to Wind Up Operations ------------------------------------------ On September 15, 2006, members of SCC 620 Pty Ltd resolved by way of special resolution to voluntarily wind up the company's operations. The Liquidator can be reached at: R. A. Ferguson c/o Fergusons Chartered Accountants Level 8, 115 Grenfell Street Adelaide, South Australia 5000 Australia SCC 737: Members Resolve to Close Business ------------------------------------------ On September 15, 2006, members of SCC 737 Pty Ltd passed a special resolution to voluntarily wind up the company's operations. The Liquidator can be reached at: R. A. Ferguson c/o Fergusons Chartered Accountants Level 8, 115 Grenfell Street Adelaide, South Australia 5000 Australia SCW 165: Members Pass Resolution to Wind Up Operations ------------------------------------------------------ On September 15, 2006, members of SCW 165 Pty Ltd passed a special resolution to voluntarily wind up the company's operations. The Liquidator can be reached at: R. A. Ferguson c/o Fergusons Chartered Accountants Level 8, 115 Grenfell Street Adelaide, South Australia 5000 Australia SMART LANDSCAPES: Members Agree on Voluntary Liquidation -------------------------------------------------------- After an extraordinary general meeting on September 25, 2006, the members of Smart Landscapes Pty Ltd decided to voluntarily wind up the company's operations. Consequently, Brent Kijurina was named liquidator at the creditors' meeting held that same day. The Liquidator can be reached at: Brent Kijurina Smith Hancock Chartered Accountants Level 4, 88 Phillip Street Parramatta, New South Wales 2150 Australia SOUTHCORP WINES: Commences Wind-Up of Operations ------------------------------------------------ On September 15, 2006, members of Southcorp Wines Superannuation Fund Pty Ltd passed a special resolution to voluntarily wind up the company's operations. The Liquidator can be reached at: R. A. Ferguson c/o Fergusons Chartered Accountants Level 8, 115 Grenfell Street Adelaide, South Australia 5000 Australia STEINER HOLDINGS: Members Agree to Liquidate Business ----------------------------------------------------- On September 20, 2006, members of Steiner Holdings Pty Ltd resolved to voluntarily liquidate the company's business operations and appointed Eran Weiner as liquidator. The Liquidator can be reached at: Eran Weiner c/o Fulepp & Co PO Box 698, Bondi Junction New South Wales 1355 Australia Telephone: 02 9387 3300 Facsimile: 02 9369 4164 SUN CM PTY: Will Declare Final Dividend on November 6 ----------------------------------------------------- Sun CM Pty Ltd formerly Sunrise Cleaning and Maintenance Pty Ltd, which is in liquidation, will declare the final dividend for priority and ordinary unsecured creditors on November 6, 2006. Creditors who were able to file their proofs of debt on September 29, 2006, are included in the company's distribution of dividend. The Liquidator can be reached at: M. G. Mccann Grant Thornton Level 1, Grant Thornton House 102 Adelaide Street, Brisbane Queensland 4000 Australia Telephone:(07) 3222 0200 Facsimile:(07) 3222 0446 TEMPLAR CORPORATION: Courts Order Wind-Up of Business ----------------------------------------------------- On September 21, 2006, the Supreme Court of New South Wales issued an order to wind up Templar Corporation Pty Ltd. The next day, the Federal Court of Australia also ordered. For that reason, Steven Nicols was appointed as liquidator. The Liquidator can be reached at: Steven Nicols Level 2, 350 Kent Street Sydney, New South Wales 2000 Australia TERRA ENTERPRISES: Creditors to Prove Claims on October 31 ---------------------------------------------------------- On September 6, 2006, Bryan George Pocock was appointed liquidator of Terra Enterprises Ltd. Accordingly, the company's creditors are required to prove their claims by October 31, 2006, or be excluded from participating in any distribution the company will make. The Liquidator can be reached at: Bryan George Pocock Level Seven, 44 Victoria Street (P.O. Box 10-788), Wellington Australia Telephone:(04) 472 3560 Facsimile:(04) 472 3564 WYCHWODE INVESTMENTS: Courts Issue Wind-Up Order ------------------------------------------------ On September 21, 2006, the Supreme Court of New South Wales issued an order to wind up Wychwode Investments Pty Ltd. On September 22, 2006, the Federal Court of Australia also issued an order to wind up the company. Accordingly, Steven Nicols was appointed as liquidator. The Liquidator can be reached at: Steven Nicols Level 2, 350 Kent Street Sydney, New South Wales 2000 Australia ================================ C H I N A & H O N G K O N G ================================ ATOLL EQUITY: Members to Meet on November 10 -------------------------------------------- Members of Atoll Equity Ventures (Asia Pacific) Ltd will hold a final general meeting on November 10, 2006, at 10:35 a.m., to receive Liquidator Gregg Hugh Hutchison's account on the wind-up proceedings and property disposal exercises. According to the Troubled Company Reporter - Asia Pacific, the Company commenced a wind-up process on April 7, 2006. The Liquidator can be reached at: Gregg Hugh Hutchison 59 Renfield Drive Princeton, New Jersey 08540 U.S.A. BALLY TOTAL: 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 Consumer Services sector, the rating agency confirmed its Caa1 Corporate Family Rating for Bally Total Fitness Holding Corp. Moody's also revised its probability-of-default ratings and assigned loss-given-default ratings on these loans facilities: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$100 million Secured Revolver due 2008 B3 B1 LGD1 8% US$136 million Secured Term Loan due 2009 B3 B1 LGD1 8% US$235 million 10.5% Senior Unsecured Notes due 2011 Caa1 Caa1 LGD3 48% US$300 million 9.875% Senior Subordinated Notes due 2007 Ca Caa3 LGD5 87% Moody's explains that current long-term credit ratings are opinions about expected credit loss that 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%). Bally Total Fitness Holding Corp. -- http://www.Ballyfitness.com/-- is a commercial operator of fitness centers, with over 400 facilities located in 29 states, Mexico, Canada, Korea, the Caribbean, and China under the Bally Total Fitness, Bally Sports Clubs and Sports Clubs of Canada brands. BIO-RAD LABORATORIES: 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 Ba2 Corporate Family Rating for Bio-Rad Laboratories Inc. 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 ---------- ------- ------- ------ ---------- 6.125% Senior Unsecured Subordinated Notes Ba3 Ba3 LGD4 67% 7.5% Senior Unsecured Subor. Notes Ba3 Ba3 LGD4 67% 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%). Bio-Rad Laboratories, Inc. (AMEX: BIO) (AMEX: BIOb) -- http://www.bio-rad.com/-- manufactures and distributes life science research products and clinical diagnostics. Based in Hercules, California, Bio-Rad serves more than 70,000 research and industry customers worldwide through a network of more than 30 wholly owned subsidiary offices. The company has operations in Australia, Austria, Belgium, Brazil, China, among others. BIOPHARM GLOBAL: Members' Final Meeting Fixed on November 6 ----------------------------------------------------------- A final general meeting of the members of Biopharm Global (BPG) Ltd will be conducted on November 6, 2006, at 11:00 a.m., to receive Liquidator Lau Hak Lap's final accounts on the company's wind-up proceedings and property disposal activities. The Liquidator can be reached at: Lau Hak Lap Units 1001-4 10/F China Merchants Steam Navigation Building 152-155 Connaught Road Central Hong Kong CHEER LONG: Falls into Wind-Up ------------------------------ On September 27, 2006, the High Court of Hong Kong ordered that Cheer Long Holdings Ltd operations be wound up. According to the Troubled Company Reporter - Asia Pacific, Leung Fung Luen Hing filed the wind-up petition against the Company on July 28, 2006. DADE BEHRING: Moody's Confirms Ba1 Corporate Family Rating ---------------------------------------------------------- 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 Ba1 Corporate Family Rating for Dade Behring Inc., and its Ba1 rating on the company's Senior Unsecured First Lien Revolver due 2010. Moody's assigned those debentures an LGD4 rating suggesting noteholders will experience a 52% loss in case of default. 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%). Headquartered in Deerfield, Illinois, Dade Behring Holdings Inc. -- http://www.dadebehring.com/-- engages in the manufacture and distribution of diagnostics products and services to clinical laboratories worldwide, including those in Australia, Austria, Belgium, Brazil, China, France, Hong Kong, Indonesia, Mexico, Portugal, Taiwan, among others. FIRST FORTRESS: Creditors' Proofs of Claim Due on November 6 ------------------------------------------------------------ Liquidator Lam Ying Sui require creditors of First Fortress Technologies Ltd to submit their proofs of claim by November 6, 2006, to be included in the company's distribution. According to the Troubled Company Reporter - Asia Pacific, shareholders of the Company appointed Liquidator Sui on September 28, 2006. The Liquidator can be reached at: Lam Ying Sui Room 1004-1005, Allied Kajima Building 138 Gloucester Road, Wanchai Hong Kong FORTIS INVESTMENT: Members' Meeting Slated for November 6 --------------------------------------------------------- A final meeting of the members of Fortis Investment Management Asia Ltd will be held on November 6, 2006, at 10:00 a.m. During the meeting, members will receive Liquidator Suen Pui Yee's accounts of the company's wind-up and property disposal exercises. The Liquidator can be reached at: Suen Pui Yee 8/F, Gloucester Tower The Landmark, 11 Pedder Street Central, Hong Kong INVERNESS MEDICAL: Moody's Confirms B3 Corporate Family Rating -------------------------------------------------------------- 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 B3 Corporate Family Rating on Inverness Medical Innovations Inc. and upgraded the company's Caa3 Rating on Senior Unsecured First Lien Revolver due 2010 to Caa2. Moody's assigned those debentures an LGD5 rating suggesting noteholders will experience a 82% loss in case of default. 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 Waltham, Massachusetts, Inverness Medical Innovations, Inc. -- http://www.invernessmedical.com/-- makes diagnostic products including home pregnancy tests and fertility monitors. The company also manufactures consumer vitamins and nutritional products. The company has offices in Australia, Canada, China, Germany, Japan, and the United Kingdom, among others. JIANGXI COPPER: To Take Part in Canada Mine Development ------------------------------------------------------- Jiangxi Copper Co. Ltd will take part in an investment of US$105 million to develop a copper-gold mine in Canada, Reuters reports citing a company's senior executive as saying. According to the executive, the investment, which is awaiting approval from the Chinese government, would help secure supply of raw materials for the company's expansion. "Jiangxi Copper will obtain 50,000 tons of copper in ore from the mine a year. We expect the mine could go into production in three years, as we need resources for more smelting capacities," the executive adds. Reuters recounts that Jiangxi's executive director Wang Chiwei said last month that the firm would produce as much as 33% more refined copper, or 600,000 tons, in 2007 on the back of new capacity, boosting demand for imported concentrate, the raw material. To meet this target, Jiangxi's 49% owned Global International Jiangxi Copper Mining Co. Ltd., agreed to form a joint venture with bcMetals Corp. to develop a mine at Red Chris in northwestern British Columbia, Reuters relates. The Canadian firm now owns the property while Hong Kong-based Global International will own 75% of the venture. It will contribute US$105 million in cash to the venture, which together with a US$110 million project debt facility -- previously arranged with Investec Bank Ltd. -- would fund development of the US$215 million mine, Reuters adds citing bcMetals statement. Meanwhile, Jiangxi Copper's investment as shareholder in the Global International joint venture would total US$51.45 million. Under the agreement, Global International would enter into a offtake contract for the purchase -- at prevailing prices -- of all concentrates produced by the Red Chris project during the mine's life, Reuters says, noting that officials are still waiting for shareholders to approve the agreement. Reuters relates that Jiangxi preferred to invest in the mine through Global International, which was owned 51% by Shanghai Shenxin Investments Ltd., because the Chinese partner had experience in overseas metals markets. "The project is the first mining project for Global International and Jiangxi Copper," Reuters reveals citing another Jiangxi official, as saying. * * * Jiangxi Copper is China's largest copper producer. In 2005, it produced 422 thousand tons of copper, about 16.8% of the total national output. The Company also realized a turnover growth rate of 25.5% and net profit growth rate of 61.9% in 2005. Jiangxi Copper is a constituent of the Xinhua/ FTSE China 200 Index. As of market close on April 28, 2006, its total market capitalization and investable capitalization were CNY17.5 billion and CNY3.5 billion respectively. On July 18, 2006, Xinhua Far East China Ratings has commented that the likelihood of downward surprises on the issuer rating for Jiangxi Copper Co., Ltd. was increasing and changed the Company's rating outlook to negative from stable. Its issuer credit rating remains BB+. KELLY CONSTRUCTION: Court Favors Wind-Up ---------------------------------------- On September 27, 2006, the High Court of Hong Kong issued a wind-up order against Kelly Construction Engineering Ltd. As reported by the Troubled Company Reporter - Asia Pacific, Leung Shiu Ming filed the petition on July 28, 2006. KUKAN INTERIORS: Creditors to Prove Claims on November 6 -------------------------------------------------------- Liquidator Chan Kai Kit require the creditors of Kukan Interiors Ltd to submit their proofs of claim by November 6, 2006, or be excluded from sharing in any distribution the company will make. The Troubled Company Reporter - Asia Pacific reported that on September 29, 2006, shareholders of the Company resolved to voluntarily wind up the company's operations. The Liquidator can be reached at: Chan Kai Kit Unit 1602, 16/F Malaysia Building 50 Gloucester Road Wanchai, Hong Kong KWONG YUEN: Intends to Declare Dividend --------------------------------------- Kwong Yuen Construction Company Ltd, which is in compulsory liquidation, requires its creditors to prove their debts by October 27, 2006, in preparation for its dividend declaration. The Liquidators can be reached at: Nicholas Timothy Cornforth Hill Fan Wai Kuen 5/F, Allied Kajima Building 138 Gloucester Road, Wanchai Hong Kong NEW ZEALAND FIRE: Court Appoints Liquidators and Inspectors ----------------------------------------------------------- The High Court of Hong Kong on September 12, 2006, appointed Ho Kwan Yiu, Junius and Ho Wai Fung as joint and several liquidators of New Zealand Fire Service Engineer Company Ltd. In addition, members of the Committee of Inspection were also appointed: -- Shui On Building Contractors Ltd; -- Sing Lee Fire Engineering Work; -- Shun Shing Electric Co. Ltd; -- Henry Engineering & Supplies; and -- Jumbo Rich Building Supplies Ltd. The Joint Liquidators can be reached at: Ho Kwan Yiu, Junius Ho Wai Fung K. C. Ho & Fong 18/F Henley Building 5 Queen's Road Central Hong Kong OCEAN JET: Court Names Joint Liquidators ---------------------------------------- The High Court of Hong Kong appointed James Wardell and Chan Chi Yuen on September 14, 2006, as joint and several liquidators of Ocean Jet Development Ltd. The Joint Liquidators can be reached at: James Wardell Chan Chi Yuen Room 1601-2, 16/F One Hysan Avenue, Causeway Bay Hong Kong PACIFIC SECURITIES: Fitch Assigns Individual D/E Rating ------------------------------------------------------- Fitch Ratings assigned on October 11, 2006, National ratings to Taiwan-based Pacific Securities Corporation. The ratings are as follows: -- National Long-term BBB-(twn); -- National Short-term F3(twn); -- Individual D/E; and -- Support 5. The Outlook on the ratings is Stable. PSC's ratings reflect its small market presence as well as weak balance sheet and profitability. The ratings also take into account its satisfactory capitalization and an enhanced risk management system. PSC's consecutive years of losses since 2004 were mainly driven by a combination of trading losses and the poor trading volumes of the Taiwanese equity market. The company strived to improve profitability by promoting its on-line brokerage business and by increasing research support to its trading department. Nevertheless, challenges remain for PSC to break even given intense industry competition. PSC is actively involved in trading corporate bonds and reverse repo investments, which may raise credit risk and liquidity concerns particularly as these assets are primarily funded by short-term repos. Following the establishment of a risk control unit and committee, PSC's risk management displayed a noticeable improvement especially in risk control. More advanced measurements such as VaR (Value at Risk) have also been adopted to monitor the overall risk exposure more effectively. While Fitch notes PSC's reported capital adequacy ratio was a still-satisfactory 281% as at H106, the agency remains concerned that any further significant losses may erode its capital position. A failure to maintain capitalization above 200% could trigger downward pressure on its ratings. PSC was established in 1988 after the deregulation of Taiwan's securities industry. The company experienced a major ownership reshuffle in June 2004 and a local entrepreneur Alex Ho emerged to become the key shareholder with a controlling share of 30%. PSC has brokerage market shares of 0.4% and its core operations are brokerage and proprietary trading. PALMERSTON CONFECTIONERY: Members & Creditors to Meet on Nov. 7 --------------------------------------------------------------- Palmerston Confectionery Company Ltd, which is in liquidation, will hold a meeting for its members and creditors on November 7, 2006, 3:00 p.m., at 35th Floor, One Pacific Place, 88 Queensway, Hong Kong. During the meeting, Liquidators Lai Kar Yan Derek and Darach E. Haughey will present an account regarding the company's wind-up and property disposal exercises. PETROLEOS DE VENEZUELA: Cuts Back Oil Production to Stem Prices --------------------------------------------------------------- Venezuela confirmed that state-oil company Petroleos de Venezuela SA's daily oil production would be reduced by 50,000 barrels in order to help curb falling oil prices. The Latin American nation is also encouraging other members of the Organization of Petroleum Exporting Countries to do the same. Nigeria was the first to cut oil output by 120,000 barrels per day. "Venezuela has formally informed the OPEC secretariat of its voluntary decision to cut production by 50,000 barrels per day with effect from Oct. 1, 2006," OPEC spokesman Omar Farouk Ibrahim told Reuters. Oil was selling at a peak of US$78.40 but is now falling below US$60. This has triggered enough warning bells for Venezuela and Nigeria to cut output in order to stem the fall. But despite its drop, the price of oil -- which has trebled since 2002 and is still at historically high levels -- remains of concern to consumer nations, Reuters says. Reuters says that investors brushed off the news and oil fell more than US$1. "People are waiting for evidence that the market is beginning to tighten or that actual cuts are being instigated, rather than just talk before prices can be bid up again," Geoff Pyne, a London-based oil analyst, was quoted by Reuters as saying. "There is still plenty of oil around at the moment." An OPEC official told Reuters that there was no shift in OPEC's policy. "There is definitely no agreement -- whether formal or informal -- within OPEC to cut current production," the unnamed source said. Petroleos de Venezuela SA is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. * * * Standard & Poor's said on July 17 that it may lower the company's B+ foreign-currency debt rating in part because of the absence of timely financial and operating information. PETROLEOS DE VENEZUELA: Spends More on Social Programs ------------------------------------------------------ Petroleos de Venezuela SA, the state-run oil company of Venezuela, told Bloomberg that its investments on social programs surpassed its expenses on oil and natural gas businesses in 2005. Petroleos de Venezuela said in a statement that it spent about US$6.9 billion on social programs in 2005. Investments on its domestic oil and natural gas operations totaled US$3.9 billion. The company's profit for the year was US$6.5 billion. According to Bloomberg, Petroleos de Venezuela said that the situation is a continuing a trend that began in 2004. Alberto Quiros, an oil analyst in Caracas and a former head of the Venezuelan operations of Royal Dutch Shell Plc, told Bloomberg, "This is pure craziness, social spending is greater than investments, greater than profit. The impact is already apparent. Production is falling and there is a lack of professionalism in the company." Bloomberg notes that Venezuela's President Hugo Chavez is using Petroleos de Venezuela to finance the nation's social programs. President Chavez is seeking to avoid the mistakes of former government leaders who neglected social development during past oil booms. The lack of investment caused a string of deadly accidents at Petroleos de Venezuela's refineries and stalled production at about 2.6 million barrels daily, Bloomberg says, citing the critics of President Chavez. Mr. Quiros told Bloomberg, "They aren't investing enough in their energy operations to maintain, let alone grow output. To do that, they need to invest at least US$5 billion to US$6 billion a year." Petroleos de Venezuela said in a filing with the United States Securities and Exchange Commission that it invested about US$4.35 billion on social programs and some US$2.99 billion on operating assets in 2004. Petroleos de Venezuela told Bloomberg that 73% of its investments in 2005 were on exploration and production. Venezuela's total average production in 2005 was 3.27 million barrels per day. Most agencies as well as the Organization of Petroleum Exporting Countries disputed that figure, Bloomberg states, citing Petroleos de Venezuela. Petroleos de Venezuela SA is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. * * * Standard & Poor's said on July 17 that it may lower the company's B+ foreign-currency debt rating in part because of the absence of timely financial and operating information. SECURE COMPUTING: Moody's Assigns Loss-Given-Default Rating ----------------------------------------------------------- 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. Technology Software sectors this week, the rating agency confirmed its B3 Corporate Family Rating for Secure Computing Corporation. Additionally, Moody's revised or held 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$20 Million Senior Secured Revolving Credit Facility due 2012 B2 B2 LGD3 31% US$90 Million Senior Secured First Lien due 2013 B2 B2 LGD3 31% 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%). Headquartered in San Jose, California, Secure Computing Corporation -- http://www.securecomputing.com/-- is a provider of enterprise security products. The company has its international headquarters in Hong Kong, and the United Kingdom. SHANGHAI OFFSHORE: Names Liquidators and Committee of Inspection ---------------------------------------------------------------- The High Court of Hong Kong on February 6, 2006, appointed Jacky Chung Wing Muk and Edward Simon Middleton as joint and several liquidators of Shanghai Offshore Oil Group (HK) Co., Ltd. Subsequently, China Everbright Holdings Company Ltd, China Everbright Holdings (Nominee) Ltd, and Everbright Real Estate Ltd were named members of the Committee of Inspection. The Joint Liquidators can be reached at: Jacky Chung Wing Muk Edward Simon Middleton 27/F, Alexandra House 16-20 Chater Road, Central Hong Kong TECHANCES DEVELOPMENT: First Meetings Scheduled on October 19 ------------------------------------------------------------- The first meetings of creditors and contributories of Techances Development Ltd will be held at Room 1037, 10/F, One Grand Tower, 639 Nathan Road, Kowloon, Hong Kong on October 19, 2006, at 2:30 p.m. and 3:30 p.m., respectively. The Troubled Company Reporter - Asia Pacific reported that the company received a wind-up order from the High Court of Hong Kong on October 2, 2005. The Joint Liquidators can be reached at: Ng Kwok Wai David Nip Eric Ng C.P.A. Limited Unit A, 14/F, JCG Building 16 Mongkok Road, Mongkok Kowloon, Hong Kong Tel: 3582 5933 Fax: 3188 9669 TECHNOCITY INTERNATIONAL: Final Members' Meeting Set on Nov. 7 -------------------------------------------------------------- Members of Technocity International Ltd, which is in liquidation, will convene for their final meeting on November 7, 2006, at 10:00 a.m. At the meeting, Liquidator Julie Siu Shan Edwards will present a report regarding the company's wind-up and the manner its properties were disposed of. The Liquidator can be reached at: Julie Siu Shan Edwards Suite C, 16/F, On Hing Building 1-9 On Hing Terrace, Central Hong Kong UGS CORP: Moody's Assigns Loss-Given-Default Rating --------------------------------------------------- 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. Technology Software sectors this week, the rating agency confirmed its B2 Corporate Family Rating for UGS Corporation. Additionally, Moody's revised or held 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$125 Million Senior Secured Revolving Credit Facility due 2010 B1 Ba2 LGD2 18% US$725 Million Senior Secured First Lien due 2011 B1 Ba2 LGD2 18% US$550 Million Senior Subordinated Notes due 2012 B3 B3 LGD4 66% US$330 Million Senior Unsecured Bonds due 2011 Caa1 Caa1 LGD6 92% 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%). Headquartered in Plano, Texas, UGS Corp. - http://www.ugs.com-- is a provider of product lifecycle management software. The company has offices in Hong Kong and the United Kingdom. YING KONG: Creditors Must Prove Debts by November 5 --------------------------------------------------- Joint Liquidators Wong Man Chung Francis and Leung Lok Ming require creditors of Ying Kong Industrial Group (H.K.) Ltd, which is in liquidation, to submit their proofs of debts by November 5, 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: Wong Man Chung Francis Leung Lok Ming 19/F., No. 3 Lockhart Road Wanchai, Hong Kong YIP FUNG: Court Issues Wind-Up Order ------------------------------------ On September 27, 2006, the High Court of Hong Kong issued an order to wind up Yip Fung Textiles Company Ltd's operations. The Troubled Company Reporter - Asia Pacific reported that Elitak Machinery Ltd filed the petition with the Court on July 26, 2006. ========= I N D I A ========= EMCO LTD: Allocates 3,00,000 Equity Shares to Director S. Jain -------------------------------------------------------------- Emco Ltd.'s Preferential Issue Committee of Board of Directors allotted 3,00,000 equity shares to Promoter and Managing Director Shailesh Jain during an October 9, 2006 meeting. The shares, at INR10 each at a premium of INR275 per share, were issued upon exercise of option attached to warrants previously allotted to Mr. Jain on preferential allotment basis. The equity-share allotment was pursuant to a special resolution passed by members of the company at their Extra-ordinary General Meeting held on March 29, 2005. 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. FEDERAL BANK: To Convert Defunct FBFS to Marketing Arm ------------------------------------------------------ Federal Bank intends to convert its former unit, Federal Bank Financial Services, into its marketing arm, CRISIL Marketwire says, citing the Bank's chief financial officer, George John. FBFS is currently non-operational with the Federal Bank's surrender of its license in 1999. Duplication of work led to the surrender of the license, Mr. John explained. According to CRISIL Marketwire, Federal Bank had sought the Reserve Bank of India's permission in September 2006 to the conversion of FBFS as its direct selling agent. About Federal Bank Headquartered in Aluva, India, the Federal Bank Limited -- http://www.federal-bank.com/-- is engaged in the banking business, offering a number of deposit products to its retail customers, including non-resident Indians, such as savings bank account, current deposits, time deposits and recurring deposits with suitable variations for customized products targeting different groups, including students, salaried employees and senior citizens. Fitch Ratings gave Federal Bank a support rating of '5' on July 22, 2003. FEDERAL BANK: To Find Bank for Acquisition This Year ---------------------------------------------------- Federal Bank is reportedly in the lookout for a bank that they could acquire in 2006. According to Business Line, citing Federal Bank Executive Director K.S. Harshan, the Bank hoped to pick up a majority stake in at least one bank this year. The Bank might need to increase capital if the cash needs of the candidate bank it will acquire would require such, Mr. Harshan pointed out. The Bank has recently merged with The Ganesh Bank of Kurundwad Ltd. As reported by the Troubled Company Reporter - Asia Pacific, the merger took effect on January 25, 2006, pursuant to a scheme of amalgamation. About Federal Bank Headquartered in Aluva, India, the Federal Bank Limited -- http://www.federal-bank.com/-- is engaged in the banking business, offering a number of deposit products to its retail customers, including non-resident Indians, such as savings bank account, current deposits, time deposits and recurring deposits with suitable variations for customized products targeting different groups, including students, salaried employees and senior citizens. Fitch Ratings gave Federal Bank a support rating of 5 on July 22, 2003. FEDERAL BANK: BoD To Meet on Oct. 20 to Consider 2nd Qtr Results ---------------------------------------------------------------- The Board of Directors of Federal Bank Ltd will hold a meeting on October 23, 2006, inter alia, to consider and take on record the Bank's unaudited financial results for the second quarter for the fiscal year 2006-2007 (period ended September 30, 2006). As previously reported by the Troubled Company Reporter - Asia Pacific, the Bank posted a net profit of INR401.80 million for the quarter ended June 30, 2006. About Federal Bank Headquartered in Aluva, India, the Federal Bank Limited -- http://www.federal-bank.com/-- is engaged in the banking business, offering a number of deposit products to its retail customers, including non-resident Indians, such as savings bank account, current deposits, time deposits and recurring deposits with suitable variations for customized products targeting different groups, including students, salaried employees and senior citizens. Fitch Ratings gave Federal Bank a support rating of 5 on July 22, 2003. * Blue Chips Lead Market Recovery, CRISIL Observes -------------------------------------------------- The equity markets continued to advance with the BSE Sensex crossing the 12,000 barrier for the first time since May 17, 2006. The BSE Sensex gained 6.46% during September 2006, while the S&P CNX Nifty gained 5.11%. The NSE benchmark index has now recovered over 35% from the levels in May and June of 2006, when the markets had crashed. Blue chip stocks have led the recovery while midcaps and smallcaps have also benefited. Foreign institutional investors have been the prime movers in the markets. Mutual funds too have increased their equity exposure from a net seller position in July to a net buyer position of INR13.40 billion in September. The mutual funds' net equity investments in the secondary market during the period between April and September of 2006 have far exceeded FII investments during the period: the mutual funds invested INR107.21 billion whereas FIIs invested INR61.08 billion in equities. The major reason for the trend was the large-scale FII selling during the market melt down in May, when mutual funds were net buyers. Mutual fund cash holdings have also reduced over the six-month period as equity markets recovered. These observations were part of the CRISIL FundServices' monthly Risk Adjusted Return Ranking of mutual fund schemes. The rankings covered 12 asset classes and 256 schemes representing almost 62% of the assets managed by domestic mutual funds for the period ended September 2006. The CRISIL-RRR measures the return performance of the schemes over the period of the analysis, adjusted for the risks they took to get those returns. The mutual funds' assets under management fell by over 5% (approx INR160 billion) during the month to INR2.91 trillion after reaching a record INR3.07 trillion in August. The reduced AUM may be linked to the outflow of over INR200 billion on account of corporate advance taxes that were due in September. Money market liquidity was also affected, raising call money rates above the reverse repo rates. New Fund Offers collected INR50.28 billion in 15 schemes including 14 debt schemes during the month. Fixed Maturity Plans continued to lead with a mop up of Rs.45.98 billion or 90% of total collections. In the Equity Diversified category, Sundaram BNP Paribas Select Midcap - Growth continued to top the category at CRISIL-RRR 1. HDFC Growth Fund - Growth moved up 2 notches to CRISIL-RRR 2; UTI Infrastructure Fund - Dividend moved up 3 notches to CRISIL- RRR 3. The benchmark for the Diversified Equity Funds category, CRISIL Fund-eX, generated a return of 29.23% for the year ended September 2006. The Income Funds returns as measured by the CRISIL Fund-dX, were a modest 3.98% for the year ended September 2006. Reliance Income Fund - Growth continued to top the category at CRISIL-RRR 1; Birla Income Plus Plan B - Growth moved up 2 notches to CRISIL-RRR 2; Birla Sun Life Income Fund - Growth was at CRISIL- RRR 3. In the Debt Short-Term category, Reliance Short Term Fund - Growth continued to top the charts at CRISIL-RRR 1; Birla Sun Life Short Term Fund - Growth was at CRISIL-RRR 2; Kotak Bond Short Term Plan - Growth was at CRISIL-RRR 3 position. The CRISIL STBEX, the benchmark for short-term income funds, generated returns of 4.78% for the year ended September 2006. The benchmark for Balanced Fund category, the CRISIL Fund-bX, generated returns of 27.81% for the year-ended September 2006. Sundaram BNP Paribas Balanced Fund - Growth moved up 1 notch to CRISIL-RRR 1; Birla Balanced Fund - Growth moved up 4 notches to CRISIL-RRR 2; while CAN Balanced II was at CRISIL-RRR 3 position. ================= I N D O N E S I A ================= ALCATEL SA: Signs Converge Network Project with Golden Telecom -------------------------------------------------------------- Alcatel S.A. signed a contract with Golden Telecom, subsidiary of Golden Telecom Inc., to deploy a fixed/mobile converged network with a next generation network core and Unlicensed Mobile Access capability. The project is expected to be in commercial operation by end of 2006. "Our intention is to facilitate the access to our services with a single subscription to mobile, fixed and data services, a single access through any device, a selection of access media, personalized services and many other innovative functionalities," Andrii Droniuk, Golden Telecom Ukraine general director disclosed. "This first fixed/mobile convergence network deployment in Ukraine is proof of Alcatel's commitment to fixed-mobile convergence in the telecom industry. Ukraine is an important step toward strengthening our leading position in mobile NGN in the fast developing Eastern Europe market," Johan Vanderplaetse, Vice-president for Alcatel activities in the Commonwealth of Independent States. In the framework of this contract, Alcatel will deliver its mobile NGN core network based on an innovative, standard-based mobile switching solution, the Alcatel 5020 Wireless Call Server that controls distributed media gateways and manages voice and data services. Alcatel will also deliver the Alcatel 8640 Corporate Mobility Manager that will enable to offer advanced fixed/mobile converged services, enhanced voice/multimedia virtual private network services and virtual PBX services for the corporate segment and SOHO users. The company will also supply UMA trial equipment for a GSM/WiFi hybrid phone solution and the Alcatel 1430 Unified HSS equipment to obtain a single repository of all subscriber information coming from any type of network. About Golden Telecom Golden Telecom, Inc. (NASDAQ: GLDN) -- http://www.goldentelecom.com/-- is a leading facilities- based provider of integrated telecommunications and Internet services in major population centers throughout Russia and other countries of the Commonwealth of Independent States. The company offers voice, data and Internet services to corporations, operators and consumers using its overlay network in major cities including Moscow, Kiev, St. Petersburg, Nizhniy Novgorod, Samara, Kaliningrad, Krasnoyarsk, Alma-Ata, and Tashkent, and via intercity fiber optic and satellite-based networks, including approximately 287 combined access points in Russia and other countries of the CIS. The company offers cellular communication services in Kiev and Odessa. About Alcatel Headquartered in Paris, France, Alcatel S.A. (Paris: CGEP.PA and NYSE: ALA) -- http://www.alcatel.com/-- provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or employees. Alcatel brings its leading position in fixed and mobile broadband networks, applications and services, to help its partners and customers build a user-centric broadband world. With sales of EUR13.1 billion and 58,000 employees in 2005, Alcatel operates in more than 130 countries, including Indonesia, Australia, Japan, Korea, Taiwan, the Philippines, Thailand, Singapore, and Vietnam. * * * Moody's Investors Service has placed the Ba1 long-term debt ratings of Alcatel SA on review for possible downgrade following its definitive agreement to merge with Lucent Technologies (rated B1). The ratings placed on review include Alcatel's senior, unsecured Eurobonds, convertible bonds, Euro-medium term notes, its EUR1.0 billion revolving credit facility and its corporate family rating, all at Ba1 currently. Alcatel's rating for short-term debt was affirmed at Not-Prime. In March 2006, Standard & Poor's Services placed its 'BB' long- term corporate credit rating on France-based telecommunications equipment maker Alcatel on CreditWatch with negative implications. ALCATEL SA: Inks EUR25 Million Next-Generation Network Contract --------------------------------------------------------------- Alcatel S.A. has been selected by Maroc Connect, a Moroccan supplier of fixed and mobile telecommunications services, for the deployment of a next-generation network. The first phase of this agreement, which is worth more than EUR25 million, foresees a network deployment in five major Moroccan areas. The services will be commercially deployed in early 2007. The resulting network will help Maroc Connect lower costs, reduce customer churn and generate additional revenue from new services like voice over IP and virtual private networks. Under the terms of the agreement, Alcatel is the systems integrator and primary contractor and will assist the operator in the development, operation and maintenance of the network. "Alcatel is our partner of choice, from its innovative technologies and broad portfolio leadership (WiMAX, NGN, IP and IN) to its extensive experience in integrating and deploying complex solutions", Mr. Karim Zaz, CEO of Maroc Connect, said. "Alcatel's solution will bring us a competitive advantage, with a network that offers better overall performance". "I am glad to see that the major alternative operator in Morocco, with a strategy built on technological leadership, has chosen to partner with Alcatel," said Olivier Picard, President of Alcatel for France, Africa, the Middle East, the South and Central Asia. "This contract further reinforces Alcatel's position as a leader in integrating complex and state-of the art technologies. Furthermore it confirms our major position as a trusted partner with NGN and IP expertise and leadership." Alcatel's complete turnkey solution includes its 7515 Media Gateway (MG) and 5020 Softswitch. These products, which are part of Alcatel's extensive IP Multimedia Subsystem (IMS)- compliant NGN portfolio, provide end-to-end quality of service (QoS) and security functionality that enables service providers to bring innovative, value-added services to their customers. Leveraging the power of IMS, the Alcatel solution enables service providers to quickly develop, test, and launch innovative new user-centric applications - independent of the access technology used. About Maroc Connect ONA (Omnium of North Africa) subsidiary Maroc Connect has won Morocco's third fixed-line licence, paying around MAD 306 million (EUR 27.5 million), reports the country's telecom regulator, ANRT. Maroc Connect is one of Morocco's main ISPs and IP VPN operators. Its new licence includes limited mobility services within an up to 35 km diameter. Maroc Connect must invest MDH 1 billion in the first year. ANRT plans to liberalise the telecoms sector entirely by 2008. The body expects there to be over three million fixed lines, seven million new mobile phone accounts and 500,000 new internet users by 2015. It expects mobile and fixed networks to generate MAD 20 billion and MAD 15 billion of revenue in the same period. About Alcatel Headquartered in Paris, France, Alcatel S.A. (Paris: CGEP.PA and NYSE: ALA) -- http://www.alcatel.com/-- provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or employees. Alcatel brings its leading position in fixed and mobile broadband networks, applications and services, to help its partners and customers build a user-centric broadband world. With sales of EUR13.1 billion and 58,000 employees in 2005, Alcatel operates in more than 130 countries, including Indonesia, Australia, Japan, Korea, Taiwan, the Philippines, Thailand, Singapore, and Vietnam. * * * Moody's Investors Service has placed the Ba1 long-term debt ratings of Alcatel SA on review for possible downgrade following its definitive agreement to merge with Lucent Technologies (rated B1). The ratings placed on review include Alcatel's senior, unsecured Eurobonds, convertible bonds, Euro-medium term notes, its EUR1.0 billion revolving credit facility and its corporate family rating, all at Ba1 currently. Alcatel's rating for short-term debt was affirmed at Not-Prime. In March 2006, Standard & Poor's Services placed its 'BB' long- term corporate credit rating on France-based telecommunications equipment maker Alcatel on CreditWatch with negative implications. ANIXTER INTERNATIONAL: Moody's Assigns Loss-Given-Default Rating ---------------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the Wholesale Distribution (Excluding Healthcare) sector, the rating agency confirmed its Ba1 Corporate Family Rating for Anixter International Inc. Moody's also revised its probability-of-default ratings and assigned loss-given-default ratings on these loans facilities: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$200 million 5.95% Unsecured Notes Ba1 Baa3 LGD2 28% US$155 million Subordinated LYON's notes Ba3 Ba2 LGD6 94% US$100 million Shelf P(Ba1) P(Baa3) LGD2 28% Moody's explains that current long-term credit ratings are opinions about expected credit loss that 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%). Anixter International Inc. -- http://www.anixter.com/-- is the world's largest distributor of communication products and electrical and electronic wire and cable, and a leading distributor of fasteners and other small parts ("C" class inventory components) to original equipment manufacturers. The company has nearly US$725 million in inventory of more than 325,000 products, logistics network of 197 warehouses with more than 5.0 million square feet of space, and our presence in 220 cities in 45 countries, including Indonesia, Australia, China, Hong Kong, India, Malaysia, New Zealand, the Philippines, Singapore, Taiwan, and Thailand. ANIXTER INT'L: Settling Income Tax Liabilities with the IRS ----------------------------------------------------------- Anixter International Inc. has entered into a settlement with the U.S. Internal Revenue Service as to the federal income tax liabilities of Anixter and its subsidiaries for the tax years 1996 through 1998. Under the terms of this settlement, the company will be able to deduct certain losses on its U.S. tax return arising from changes in the IRS regulations that became effective in 1996. The refund associated with this tax issue will be approximately US$13.7 million, plus applicable interest, and will be recorded in the company's third quarter results. As a result of this settlement and the completion of the 2005 federal tax return, the company will also be adjusting its income tax reserves and payables during the third quarter of 2006 (currently expected to be approximately US$4.4 million of additional income tax benefit). The total estimated effect on the third quarter tax provision will be approximately US$18.1 million or 41 cents per diluted share. At the same time Anixter will record as income, net of applicable tax thereon, approximately US$4.8 million or 11 cents per diluted share as the estimated amount of interest to be received on the settlement. The 1996-1998 refund has been approved by the Joint Committee on Taxation of the U.S. Congress and is expected to be received in the next few weeks. About Anixter International Anixter International Inc. -- http://www.anixter.com/-- is the world's largest distributor of communication products and electrical and electronic wire and cable, and a leading distributor of fasteners and other small parts ("C" class inventory components) to original equipment manufacturers. The company has nearly US$725 million in inventory of more than 325,000 products, logistics network of 197 warehouses with more than 5.0 million square feet of space, and our presence in 220 cities in 45 countries, including Australia, China, Hong Kong, India, Malaysia, New Zealand, the Philippines, Singapore, Taiwan, Thailand and Indonesia. In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the Wholesale Distribution (Excluding Healthcare) sector, the rating agency confirmed its Ba1 Corporate Family Rating for Anixter International Inc. Moody's also revised its probability-of-default ratings and assigned loss-given-default ratings on these loans facilities: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$200 million 5.95% Unsecured Notes Ba1 Baa3 LGD2 28% US$155 million Subordinated LYON's notes Ba3 Ba2 LGD6 94% US$100 million Shelf P(Ba1) P(Baa3) LGD2 28% Fitch Ratings affirmed these ratings for Anixter International Inc. and its wholly owned operating subsidiary, Anixter Inc.: Anixter: -- Issuer Default Rating 'BB+' -- Senior unsecured debt 'BB-' AI: -- Issuer Default Rating 'BB+' -- Senior unsecured notes 'BB+' -- Senior unsecured bank credit facility at 'BB+' Fitch's action affects approximately US$700 million of public debt securities. The Rating Outlook is Stable. AVNET INC: Awaits NYSDEC Final Approval to N.Y. Remediation Plan ---------------------------------------------------------------- Avnet Inc. has yet to receive the final approval of the New York State Department of Environmental Conservation for its soil remediation plan for a formerly owned manufacturing site in Huguenot, N.Y. The company was named a potentially responsible party by the NYSDEC for the site, which it owned from the mid-1960s until the early 1970s. The company reached a settlement in litigation to apportion the estimated cleanup costs among it and the current and former owners and operators of the site. In accordance with this agreement, the company has paid a portion of past costs incurred by NYSDEC and the current owner of the site. The company will also pay a percentage of the cost of the environmental clean up of the site; the first phase of which has been estimated to cost a total of US$2.4 million for all parties to remediate contaminated soils. Avnet, Inc., headquartered in Phoenix, Arizona, is one of the largest worldwide distributors of electronic components and computer products, primarily for industrial customers. Revenues for the fiscal year ended July 1, 2006 were US$14.3 billion. It has operations in the following Asia-Pacific countries: Indonesia, Australia, China, Hong Kong, India, Japan, Malaysia, New Zealand, Philippines and Singapore. Moody's Investors Service upgraded the corporate family and senior unsecured debt ratings of Avnet, Inc. to Ba1 from Ba2 and assigned a Ba1 rating to the proposed offering of up to US$250 million senior notes due 2016. The new issue proceeds together with cash-on-hand and other financial resources will be used to repurchase not less than US$250 million of the outstanding US$361.4 million 9.75% senior notes due February 2008. The ratings outlook is stable. BEARINGPOINT INC: S&P Holds Corp. Credit & Debt Ratings on Watch ---------------------------------------------------------------- Standard & Poor's Ratings Services' ratings on McLean, Virginia- based BearingPoint Inc., remained on CreditWatch with developing implications, where they were placed on March 18, 2005, reflecting concerns regarding continued financial reporting problems and a recently announced order entered by the New York State Supreme Court for New York County finding BearingPoint in default under the indenture governing the company's 2.75% Series B Convertible Subordinated Debentures because of a failure to file timely regulatory reports. "This court ruling also introduces the possibility that holders of BearingPoint's other indebtedness could pursue a similar notice of default or acceleration," said Standard & Poor's credit analyst Philip Schrank. Acceleration of the US$200 million Series B debentures has not been sought by the trustee, nor ordered by the court and the company had almost US$300 million in cash at Sept. 25, 2006. While indemnity agreements relating to surety bonds and certain other customer contracts could also be impacted, no other class of bond holder has yet filed a notice of default. Furthermore, senior debt holders can exercise blocking rights on payments, including acceleration, under certain terms of all series of BearingPoint's subordinated debentures. Although the company intends to appeal this ruling, and seek waivers from a majority of each series of debentures, barring either of these outcomes, BearingPoint would also face the possibility that its debt obligations would be classified as current, if it were to file its 10-k currently. Standard & Poor's will continue to monitor BearingPoint's progress toward completing its delayed filings and its discussions with representatives of the holders of all of its debentures and its banks. If progress is not made over the next few weeks in coming to agreements with all creditor groups regarding waivers and forbearance, the ratings will be lowered to the 'CCC' category. Conversely, the ratings could be reviewed for a possible upgrade following the resolution of all financial reporting issues and agreements with all the creditors. Ratings on CreditWatch: BearingPoint Inc.: * Corporate credit rating: B-/Watch Dev./-- * Senior secured: B-/Watch Dev. * Senior unsecured: B-/Watch Dev. * Subordinated debt: CCC+/Watch Dev. Headquartered in McLean, Virginia, BearingPoint, Inc., (NYSE: BE) -- http://www.BearingPoint.com/-- provides of management and technology consulting services to Global 2000 companies and government organizations in 60 countries worldwide. The firm has approximately 17,500 employees, and major practice areas focusing on the Public Services, Financial Services and Commercial Services markets. BearingPoint has global locations in Australia, Austria, Brazil, China, France, India and Indonesia, among others. BEARINGPOINT: Moody's Cuts Ratings on US$450 Million Bonds to B3 ---------------------------------------------------------------- Moody's Investors Service downgraded the ratings of BearingPoint, Inc., and has placed the company's ratings on review for further possible downgrade. The rating actions reflect the company's YTD September 2006 cash outflows, which have largely been driven by higher than expected finance and accounting systems costs, delays in filing its annual financial reports with the SEC, and increased Q2 2006 voluntary employee turnover. The review will focus on the company's prospects for reducing costs to operate its accounting and financial systems, prospects for becoming current on the filing of its SEC periodic reports, reducing its voluntary turnover, and generating free cash flow. As part of the review, Moody's will also assess the company's prospects for either achieving bondholder consents or appealing litigation (or disputing damage claims) stemming from a September 2006 New York State Supreme Court Order, which grants summary judgment to plaintiffs and finds the company in breach under the indenture governing the company's 2.75% Series B convertible subordinated debentures. On Sept. 26, 2006, the company announced it has further delayed the filing of its FY 2005 10-K as a direct consequence of the September 2006 Order and does not expect to be current on the filing of its SEC financial statements until the spring of 2007 at the earliest. The company also announced that it expects 2006 cash will be negatively impacted by unanticipated, unusual, and ongoing costs to operate its accounting and financial systems and by unanticipated and unusual costs to retain its employees. Ratings downgraded and placed on review for further possible downgrade: * Corporate Family Rating --downgraded to B2 from B1 * US$250 million series A subordinated convertible bonds due 2024 --downgraded to B3 from B2 * US$200 million series B subordinated convertible bonds due 2024 --downgraded to B3 from B2 Headquartered in McLean, Virginia, BearingPoint, Inc., (NYSE: BE) -- http://www.BearingPoint.com/-- provides of management and technology consulting services to Global 2000 companies and government organizations in 60 countries worldwide. The firm has approximately 17,500 employees, and major practice areas focusing on the Public Services, Financial Services and Commercial Services markets. BearingPoint has global locations in Australia, Austria, Brazil, China, France, India, Japan, Mexico, Portugal, Singapore and Indonesia, among others. CANWEST MEDIAWORKS: Selling Two Radio Stations for US$15 Million -------------------------------------------------------------- CanWest MediaWorks Inc has entered into an agreement with Corus Entertainment Inc. for the sale of its two existing radio stations in Canada -- 99.1 Cool FM in Winnipeg, Manitoba and 91.5 The Beat FM in Kitchener, Ontario -- for an aggregate cash price of approximately US$15 million, subject to certain customary price adjustments based upon the stations' financial position at the completion date. Completion of the transaction is conditional upon the purchaser obtaining CRTC and any other necessary regulatory approvals. Peter Viner, President and Chief Executive Officer of the company's Canadian operations, noted, "Despite considerable efforts, the company has not established, either through the award of additional radio licences by the CRTC or by acquisition, a sufficient presence in the Canadian radio market to achieve the economies of scale necessary for success in this highly competitive business. In light of that, the company determined that its capital would be better deployed in higher growth opportunities and in supporting its core business requirements." CanWest MediaWorks Inc. -- http://www.canwestmediaworks.com/-- is a wholly owned subsidiary of CanWest Global Communications Corp, Canada's largest media company. In addition to owning the Global Television Network, CanWest is Canada's largest publisher of daily newspapers, and also owns, operates and/or holds substantial interests in conventional television, out-of-home advertising, specialty cable channels, Web sites and radio networks in Indonesia, Canada, New Zealand, Australia, Singapore, Malaysia, Turkey, the United States and the United Kingdom. * * * Dominion Bond Rating Service placed the ratings of CanWest MediaWorks Inc. under review with negative implications due to weakness in more of the company's operating segments, which may lead to a breach in the company's financial covenants under its senior secured bank facilities in the upcoming quarter and year- end. Ratings places under review include the Negative BB Issuer Rating and the Negative B (high) rating on the company's Senior Subordinated Notes. Moody's Investors Service placed Canwest MediaWorks Inc.'s Ba3 corporate family and B2 senior subordinate ratings under review for possible downgrade. At the same time, Moody's lowered CanWest's speculative grade liquidity rating to SGL-3 from SGL- 2. CORUS GROUP: Tata Steel to Launch a GBP5-Bln Takeover Bid --------------------------------------------------------- India's Tata Steel is set to launch a GBP5 billion takeover bid for Corus Group PLC, BBC News reports. According to The Times, speculations on the possible takeover bid rose after Tata told the Stock Exchange that it was considering a number of takeover opportunities, including Corus. It is also believed that Tata may choose Corus's option of a joint venture rather than a full takeover. Tata had prepared a GBP3.5 billion financing deal to make the acquisition, BBC cited Sunday Telegraph. Corus did not comment on Tata's statement of interest, but the Takeover Panel has put the company in an offer period because of the specified interest by the Indian company. Corus is expected to make a definitive statement if it receives a formal offer by Tata. About Tata Steel Headquartered in Mumbai, India, Tata Steel -- http://www.tatasteel.com/-- is Asia's first and India's largest private sector steel company. Tata Steel is among the lowest cost producers of steel in the world and one of the few select steel companies in the world that is EVA+ (Economic Value Added). It is a small steel producer by global standards, but has the backing of the giant Tata Group, one of India's largest companies with interests as diverse as carmaking, communications, tea and oil. About Corus Group Corus Group PLC -- http://www.corusgroup.com/-- produces metal from its major operating facilities in the U.K., the Netherlands, Germany, France, Norway, Belgium and Canada. Corus turns over GBP10 billion annually and employs 47,300 in over 40 countries and sales offices and service centers worldwide, including Indonesia and the Philippines. Corus was created through the merger of British Steel plc and Koninklijke Hoogovens N.V. The group suffered six years ago from the crisis in British manufacturing, which prompted it to shake up management, close plants, cut jobs, and sell assets to lower debt. Its debt was thought to stand at GBP1.6 billion in 2002. After posting a net loss of GBP458 million in 2003, it embarked on a restructuring program, signed a new EUR1.2 billion banking facility, and issued GBP307 million worth of shares. It returned to operating profit in the first quarter of 2004. The recent recovery of steel prices and the strength of the euro are expected to help it achieve relatively strong earnings. * * * Standard & Poor's removed Corus Group PLC's CreditWatch and raised its long-term corporate credit rating to 'BB' from 'BB-', reflecting the group's improved financial risk profile. S&P said the Outlook is stable. Fitch Ratings changed Corus Group PLC's Outlook to Positive from Stable and affirmed the Issuer Default Rating at BB- following the company's announcement of its 2005 results and plan to dispose its aluminium business for EUR826 million. Corus' affirmed debt instruments include: a) Corus Group PLC EUR800 mln 7.5% senior notes B+; b) Corus Group PLC EUR307 mln 3.0% convertible bonds B+; c) Corus Finance PLC GBP200 mln 6.75% guaranteed bonds B+; and d) Corus Finance PLC EUR20 mln 5.375% guaranteed bonds B+. Moody's Investors Service upgraded Corus Group plc's corporate family rating to Ba2, upgraded its senior unsecured and supported unsecured obligations to B1 and raised senior secured bank facility to Ba1. DIRECTED ELECTRONICS: Omega's Patent Violation Suit in Discovery ---------------------------------------------------------------- Discovery is proceeding for Omega Patents LLC's patent infringement suit against Directed Electronics Inc. in the U.S. District Court for the Middle District of Florida. The company did not specify Omega's asserted patents in its latest report with the United States Securities and Exchange Commission. On March 31, 2004, Omega filed suit against Fortin Auto Radio Inc. for breaching a license agreement. On Nov. 11, 2005, Omega amended its complaint and added the company as a defendant for patent infringement. This complaint seeks injunctive relief and damages, as well as exemplary damages, attorneys' fees and costs. On Jan. 17, 2006, the company moved to dismiss or transfer this case to the U.S. District Court for the Southern District of California. On April 27, 2006, the Court denied the company's motion. On May 25, 2006, the company filed an answer to the amended complaint. Directed Electronics, Inc. (Nasdaq: DEIX) -- http://www.directed.com/-- is the largest designer and marketer of consumer branded vehicle security and convenience systems in the United States based on sales and a major supplier of home audio, mobile audio and video, and satellite radio products. As the sales leader in the vehicle security and convenience category, Directed offers a broad range of products, including security, remote start, hybrid systems, GPS tracking and navigation, and accessories, which are sold under its Viper(R), Clifford(R), Python(R), and other brand names. In the home audio market, Directed designs and markets award-winning Definitive Technology(R) and a/d/s/(R) premium loudspeakers. Directed's mobile audio products include speakers, subwoofers, and amplifiers sold under its Orion(R), Precision Power(R), Directed Audio(R), a/d/s/(R), and Xtreme(R) brand names. Directed also markets a variety of mobile video systems under the Directed Video(R), Directed Mobile Media(R) and Automate(R) brand names. Directed also markets and sells certain SIRIUS-branded satellite radio products, with exclusive distribution rights for such products to Directed's existing U.S. retailer customer base. The company has Asian sales offices in Indonesia, India, Japan, Malaysia, Singapore, Korea and Thailand. Standard & Poor's Ratings Services placed its 'BB-' corporate credit rating on consumer electronics maker Directed Electronics Inc. on CreditWatch with negative implications. The rating action follows the company's announcement that it intends to acquire Polk Audio Inc., a provider of loudspeakers and audio equipment for homes and cars, for US$136 million in cash. DIRECTED ELECTRONICS: Weak Finances Spur S&P to Cut Ratings ----------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on consumer electronics maker Directed Electronics Inc. following its acquisition of Polk Audio Inc., a provider of loudspeakers and audio equipment for homes and cars, for US$136 million in cash. The corporate credit rating was lowered to 'B+' from 'BB- ', and was removed from CreditWatch negative where it was placed on Aug. 25. The ratings outlook on Vista, Calif.-based DEI is stable. Pro forma balance sheet debt at June 30, 2006, including the acquisition debt, totaled about US$307 million. "The downgrade reflects DEI's weaker financial position after the Polk acquisition," said Standard & Poor's credit analyst Nancy C. Messer. To fund the acquisition, the company increased the size of its term loan by US$141 million under an amended and restated senior secured credit facility. This amount was an addition to the company's existing US$165.8 million term loan. At the same time that debt is increased, DEI will be required to invest in higher levels of working capital in the next several years to support its product build for the satellite radio accessories market. As a result of the higher cash interest expense and required investment in working capital, the company will generate minimal free cash flow for debt reduction in 2006 and 2007. Beginning in 2008, the company expects to generate sufficient free cash flow to allow for debt reduction. Following the acquisition, DEI is highly leveraged, with lease-adjusted total debt to EBITDA of about 4.4x. Standard & Poor's expects DEI's lease-adjusted leverage to remain at 4x or higher over the intermediate term, as the company expands and diversifies sales through new product introductions and possible periodic acquisitions. The Polk acquisition, which will increase DEI's revenues by a material 25%, adds integration risk to the credit, although mitigating this concern is DEI's successful track record of integrating prior acquisitions. At the 'B+' rating, the rating agency expects funds from operations to total debt in the range of 10%- 15% and lease-adjusted total debt to EBITDA in the range of 4x- 4.5x. The Polk acquisition is consistent with DEI's strategy of growing both organically and through acquisitions in home electronics, mobile electronics, and adjacent product categories to leverage DEI's existing distribution network, customer relationships, and sales force, since the markets are highly fragmented. Directed Electronics, Inc. (Nasdaq: DEIX) -- http://www.directed.com-- is the largest designer and marketer of consumer branded vehicle security and convenience systems in the United States based on sales and a major supplier of home audio, mobile audio and video, and satellite radio products. As the sales leader in the vehicle security and convenience category, Directed offers a broad range of products, including security, remote start, hybrid systems, GPS tracking and navigation, and accessories, which are sold under its Viper(R), Clifford(R), Python(R), and other brand names. In the home audio market, Directed designs and markets award-winning Definitive Technology(R) and a/d/s/(R) premium loudspeakers. Directed's mobile audio products include speakers, subwoofers, and amplifiers sold under its Orion(R), Precision Power(R), Directed Audio(R), a/d/s/(R), and Xtreme(R) brand names. Directed also markets a variety of mobile video systems under the Directed Video(R), Directed Mobile Media(R) and Automate(R) brand names. Directed also markets and sells certain SIRIUS-branded satellite radio products, with exclusive distribution rights for such products to Directed's existing U.S. retailer customer base. The company has Asian Sales offices in Indonesia, India, Japan, Malaysia, Singapore, Korea and Thailand. INCO LTD: CVRD Obtains European Clearance for Inco Offer -------------------------------------------------------- Companhia Vale do Rio Doce disclosed that it has obtained an unconditional clearance from the European Commission under the EC Merger Regulation with respect to its offer to acquire all of the outstanding common shares of Inco Limited. As previously reported in the Troubled Company Reporter on Sept. 26, The Board of Directors of Inco Limited has recommended that Inco shareholders tender their shares to the offer made by Companhia Vale do Rio Doce to purchase all of the outstanding common shares of Inco at a price of CDN$86 in cash per share. The expiry date of CVRD's offer to purchase all of the outstanding common shares of Inco at a price of CDN$86 in cash per share is Oct. 16, Monday, at 8:00 p.m. (Toronto time). About CVRD Headquartered in Rio de Janeiro, Brazil, Companhia Vale do Rio Doce -- http://www.cvrd.com.br/-- engages primarily in mining and logistics businesses. It engages in iron ore mining, pellet production, manganese ore mining, and ferroalloy production, as well as in the production of nonferrous minerals, such as kaolin, potash, copper, and gold. About Inco Ltd. Headquartered in Sudbury, Ontario, Inco Limited (TSX, NYSE:N) -- http://www.inco.com/-- produces nickel, which is used primarily for manufacturing stainless steel and batteries. Inco also mines and processes copper, gold, cobalt, and platinum group metals. It makes nickel battery materials and nickel foams, flakes, and powders for use in catalysts, electronics, and paints. Sulphuric acid and liquid sulphur dioxide are produced as byproducts. The company's primary mining and processing operations are in Indonesia, Canada, and the United Kingdom. * * * Inco Limited's 3-1/2% Subordinated Convertible Debentures due 2052 carry Moody's Investors Service's Ba1 rating. INCO LTD: Union Steelworkers Ratify Agreement With Voisey's Bay --------------------------------------------------------------- Members of the United Steelworkers Local 6480 have said yes to a tentative agreement reached on October 7, 2006, with Inco Ltd. subsidiary Voisey's Bay Nickel Company. Not only does the ratification mean an end to a two-month strike and an immediate return to work, but it also means workers have accepted a settlement that guarantees parity with other Inco sites in Ontario and Manitoba. This first contract for the 120 workers at the remote Labrador mine site provides a 15.5-per-cent increase in wages over three years, a nickel bonus, improved Earnings Compensation Bonus, a cost-of-living allowance, a US$6,000 back-to-work retention bonus, and doubled employer pension contributions. The union also negotiated improved vacation, overtime, bereavement and sick leave, health benefits and a statutory holiday recognizing National Aboriginal Day on June 21. "This agreement is an important milestone for these members and their communities," said USW Ontario/Atlantic Director Wayne Fraser. "Their commitment to gaining parity with other Inco employees was unwavering. Their solidarity, coupled with support from USW members in Sudbury, Port Colborne and Thompson, MB, was able to overcome the isolation of maintaining a picket line in a remote area of Labrador. "It was an amazing struggle with a great outcome." About Inco Ltd. Headquartered in Sudbury, Ontario, Inco Limited (TSX, NYSE:N) -- http://www.inco.com/-- produces nickel, which is used primarily for manufacturing stainless steel and batteries. Inco also mines and processes copper, gold, cobalt, and platinum group metals. It makes nickel battery materials and nickel foams, flakes, and powders for use in catalysts, electronics, and paints. Sulphuric acid and liquid sulphur dioxide are produced as byproducts. The company's primary mining and processing operations are in Indonesia, Canada and the U.K. * * * Inco Limited's 3-1/2% Subordinated Convertible Debentures due 2052 carry Moody's Investors Service's Ba1 rating. GNC CORP: Reports Strong Same-Store Sales for Third Quarter 2006 ---------------------------------------------------------------- GNC Corp., reported strong same store sales results for the third quarter of 2006. Domestic same store sales for the third quarter of 2006 increased 11.7% for corporate stores and 7.0 percent for franchise stores. Corporate store sales include Internet sales, which added 1.5% to corporate same store sales growth. "I am extremely pleased with the continued strong sales performance we are seeing across every major category and in all of our store formats. This quarter is especially encouraging since it not only represents the fourth consecutive quarter of strong single- to double-digit same store sales growth, but also double-digit same store sales growth against positive growth from last year in the third quarter," said President and Chief Executive Officer Joseph Fortunato. Headquartered in Pittsburgh, Pa., GNC -- http://www.gnc.com/-- is the largest global specialty retailer of nutritional supplements, which includes vitamin, mineral and herbal supplements, sports nutrition products, diet and energy products and specialty supplements. GNC has more than 4,800 retail locations throughout the United States, including more than 1,000 domestic franchise locations, and locations in 43 international markets. GNC's Asian operations are in Indonesia, Hong Kong, India, Japan, Philippines, and Thailand, among others. * * * Standard & Poor's Ratings Services affirmed its ratings, including the 'B' corporate credit rating, on Pittsburgh, Pennsylvania-based General Nutrition Centers Inc.The ratings are removed from CreditWatch, where they were placed with positive implications on June 19, 2006. S&P said the outlook is stable. MARSH & MCLENNAN: CEO Responds to Putnam Purchase Inquiries ----------------------------------------------------------- Marsh & McLennan Companies, Inc.'s President and Chief Executive Officer Michael G. Cherkasky disclosed last week that the company has commenced a market check to determine the value others would put on MMC's subsidiary, Putnam Investments. Mr. Cherkasky's statement came in response to repeated inquiries over the last few months from parties interested in either acquiring or partnering with Putnam. Mr. Cherkasky said that the company's Board of Directors has not decided to take any specific action in regard to Putnam at this time. Founded in 1937, Putnam Investments -- http://www.putnam.com/-- is one of the nation's oldest and largest money management firms. As of June 30, 2006, Putnam managed US$180 billion in assets, of which US$119 billion is for mutual fund investors and US$61 billion is for institutional accounts. Putnam has offices in Boston, London and Tokyo. About Marsh & McLennan Marsh & McLennan Companies, Inc. -- http://www.marshmac.com/-- is a New York-based global professional services firm with subsidiaries offering risk management, insurance brokerage, consulting and investment management services to clients in more than 100 countries, including Australia, China, India, Indonesia, Japan, Korea and Singapore. MMC owns the world's largest insurance brokerage and consulting operation. MMC reported total revenues of US$6.0 billion and net income of US$588 million for the first six months of 2006. Shareholders' equity was US$6.0 billion as of June 30, 2006. Moody's Investors Service has affirmed the Baa2 senior unsecured debt rating and the Prime-2 short-term debt rating of Marsh & McLennan Companies, Inc. The rating agency has also assigned provisional ratings to MMC's new universal shelf registration. The rating outlook for MMC remains negative. ========= J A P A N ========= ADVANCED MEDICAL: 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 Advanced Medical Optics Inc. 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 ---------- ------- ------- ------ ---------- Senior secured revolving credit facility B1 Ba1 LGD1 7% 2.5% convertible senior subordinated notes B3 B2 LGD4 66% 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%). Headquartered in Santa Ana, California, Advanced Medical Optics -- http://www.amo-inc.com/-- develops, manufactures and markets ophthalmic surgical and contact lens care products. Sales for the twelve months ended June 24, 2005 were approximately US$921 million. The company has operations in Japan, Germany and Ireland. AMAZON.COM: 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 and Canadian Retail sector, the rating agency confirmed its BA3 Corporate Family Rating for Amazon.com, Inc. Additionally, Moody's revised and held 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$900 million 4.75% Convertible Subordinated Notes B2 B2 LGD5 82% US$306 million 6.75% Premium Adj. Convertible Sec. B2 B2 LGD5 82% Senior Unsecured Shelf Registration (P)B1 (P)Ba2 LGD3 35% Subordinated Shelf Registration (P)B2 (P)B2 LGD5 82% Preferred Stock Shelf Registration (P)B3 (P)B2 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%). Based in Seattle, Wash., Amazon.com, Inc. (Nasdaq: AMZN) a Fortune 500 company, opened on the World Wide Web in July 1995 and offers Earth's Biggest Selection. Amazon.com seeks to be Earth's most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices. Amazon.com and other sellers offer millions of unique new, refurbished and used items in categories such as health and personal care, jewelry and watches, gourmet food, sports and outdoors, apparel and accessories, books, music, DVDs, electronics and office, toys and baby, and home and garden. Amazon.com and its affiliates operate retail sites http://www.amazon.com/ http://www.amazon.co.uk/ http://www.amazon.de/ http://www.amazon.co.jp/ http://www.amazon.fr/ http://www.amazon.ca/and http://www.joyo.com/ The company has fulfillment centers in Japan and China. Other office locations include Germany, India, and the United Kingdom. BCBG MAX: 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 the US and Canadian Retail sector, the rating agency confirmed its B1 Corporate Family Rating for BCBG Max Azria Group, Inc. Additionally, Moody's revised and held 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$150 million Asset-Based Revolver Ba3 Ba2 LGD2 20% US$199.5 million Term Loan B1 B1 LGD3 48% US$80 million Third Lien Term Loan B3 B3 LGD5 76% 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%). Headquartered in Vernon, California, BCBG Max Azria Group, Inc. - http://www.bcbg.com/-- is an apparel retailer and wholesaler. It operates 80 retail stores, 57 factory stores, and 102 partner shops in the United States. In addition, it distributes to over 400 wholesale doors under the BCBGMaxAzria, TO THE MAX, maxime, dorothee bis, Herve Leger, BCBGirls, Parallel, and maxandcleo brand names. The Max Rave acquisition will add a minimum of 450 stores currently under the G+G, Rave, and RaveGirl name plates which will all be converted to the Max Rave name plate. The company has international offices in Japan, Canada and France. BRADLEY PHARMA: Costa Brava Seeks Support for Board Nominees ------------------------------------------------------------ Costa Brava Partnership III L.P. has released an open letter addressed to shareholders of Bradley Pharmaceuticals, Inc., soliciting support for its nominees to the company's Board of Directors. Costa Brava Partnership III L.P. says that it is the largest holder of the outstanding common stock of the company and that a pattern of poor corporate governance at the company led it to nominate three candidates for the company's Board of Directors. Costa Brava tells the company's shareholders that it is not asking for control but for a voice for all public shareholders to insist on change and help the company maximize shareholder value. Costa Brava also tells the company's shareholders that its nominees are Douglas E. Linton, John S. Ross and Seth W. Hamot, are truly independent and have no financial interest in the company other than holdings of the company's shares. Costa Brava also says that it has mailed the company's stockholders a copy of its Definitive Proxy Statement filed with the Securities and Exchange Commission on Sept. 29, 2006 and a blue proxy card that can be used to elect its independent director nominees. Shareholders with questions about Costa Brava's campaign may call its proxy solicitors, MacKenzie Partners, Inc., Toll-Free at 800-322-2885 or 212-929-5500 (call collect) or may e-mail questions to savebradley@mackenziepartners.com/ A full text-copy of Costa Brava's open letter may be viewed at no charge at http://ResearchArchives.com/t/s?133e About Costa Brava Costa Brava Partnership III L.P., which often invests in the debt and equity of companies with troubled capital structures, is managed by Roark, Rearden & Hamot Capital Management, LLC, an Institutional Investment Manager. About Bradley Pharmaceuticals Based in Fairfield, New Jersey, Bradley Pharmaceuticals, Inc. (NYSE: BDY) -- http://www.bradpharm.com/-- was founded in 1985 as a specialty pharmaceutical company marketing to niche physician specialties in the U.S. and 38 international markets. Bradley's success is based on the strategy of Acquire, Enhance and Grow. Bradley Acquires non-strategic brands, Enhances these brands with line extensions and improved formulations and Grows the products through promotion, advertising and selling activities to optimize life cycle management. Bradley Pharmaceuticals is comprised of Doak Dermatologics, specializing in topical therapies for dermatology and podiatry, and Kenwood Therapeutics, providing gastroenterology, respiratory and other internal medicine brands. The company has operations in Australia and Japan. JDA SOFTWARE: Moody's Assigns Loss-Given-Default Rating ------------------------------------------------------- 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. Technology Software sectors this week, the rating agency confirmed its B2 Corporate Family Rating for JDA Software Group, Inc. Additionally, Moody's revised or held 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$50 Million Senior Secured Revolving Credit Facility due 2012 B1 B1 LGD3 30% US$175 Million Senior Secured First Lien due 2012 B2 B1 LGD3 30% 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- umeric 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%). Headquartered in Scottsdale, Arizona, JDA Software Group, Inc., -- http://www.jda.com/-- provides software solutions tailored to the retail industry and their suppliers. The company has offices in Japan, Australia, Singapore and the United Kingdom. MILLIPORE CORPORATION: Moody's Assigns Loss-Given-Default Rtgs. --------------------------------------------------------------- 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 Ba1 Corporate Family Rating for Millipore Corporation. 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 ---------- ------- ------- ------ ---------- Unsecured Notes due 2007 Ba2 Ba2 LGD5 72% Senior Unsecured EURO-Denominated Notes due 2016 Ba2 Ba2 LGD5 72% 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%). Headquartered in Billerica, Massachusetts, Millipore Corporation -- http://www.millipore.com/-- is a bioprocess and bioscience products and services company. The Bioprocess division offers solutions that optimize development and manufacturing of biologics. The Bioscience division provides high performance products and application insights that improve laboratory productivity. The company has worldwide offices, including in Japan, Austria, and Argentina. NUANCE COMMS: Moody's Assigns Loss-Given-Default Rating ------------------------------------------------------- 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. Technology Software sectors this week, the rating agency confirmed its B2 Corporate Family Rating for Nuance Communications, Inc. Additionally, Moody's revised or held 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$75 Million Senior Secured Revolving Credit Facility due 2012 B1 B1 LGD3 30% US$355 Million Senior Secured First Lien due 2013 B1 B1 LGD3 30% 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- umeric 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%). Nuance Communications, Inc., formerly ScanSoft, Inc., is a provider of speech and imaging solutions for business and consumers around the world. Its technologies, applications and services seek to improve user experiences by changing the way people access, share, manage and use information. The company has offices in Japan, Australia, Belgium, Korea, Hong Kong, India, Mexico and the United Kingdom, among others. SHAW GROUP: Prices JPY128.98 Billion Limited-Recourse Bonds ----------------------------------------------------------- The Shaw Group Inc. disclosed that its wholly-owned subsidiary, Nuclear Energy Holdings, L.L.C., has priced its private offering of yen-denominated JPY128.98 billion face amount of limited- recourse bonds being marketed to investors in Japan and elsewhere outside the United States, to be used to finance its acquisition of 20% of the Westinghouse Acquisition Companies. The bonds are to be issued in two tranches, a floating-rate tranche and a fixed-rate tranche; and will mature March 15, 2013. The JPY78 billion (equivalent to approximately US$653 million) floating-rate tranche is to be issued with a floating coupon rate of 0.70% above the six-month Yen LIBOR rate. NEH has entered into a separate hedging transaction that fixes the interest cost on the floating-rate bonds. The JPY50.98 billion (equivalent to approximately US$427 million) fixed-rate tranche is to be issued with a coupon rate of 2.20%. T he bond transaction is expected to close on Friday, October 13, 2006, subject to customary closing conditions. The limited-recourse bonds will be secured by the assets of and 100% of the membership interests in NEH, its shares in the Westinghouse Acquisition Companies, along with the corresponding Toshiba option, a US$36 million letter of credit established by Shaw for the benefit of NEH and a letter of credit to secure the payment of bond interest. The initial Interest LC (previously estimated to be approximately US$91 million) will be established at approximately US$113 million, which now includes an approximately US$14 million withholding tax reserve. NEH will use the proceeds from the bond offering plus approximately US$30 million of cash for the purchase of the 20% interest in the Westinghouse Acquisition Companies. Because of market conditions, the effective interest rate on the bonds is slightly higher than previously estimated. Shaw expects the Westinghouse Acquisition Companies transaction to occur in October, 2006, subject to customary closing conditions. Shaw estimates its fees and expenses for the acquisition transaction, including the bond offering, to approximate US$20 million. In the event the acquisition were not to occur, NEH would repay the proceeds to the bondholders and cancel the related transactions, and would incur certain additional expenses. Headquartered in Baton Rouge, LA, The Shaw Group Inc. -- http://www.shawgrp.com/-- is a global provider of services to the environmental, infrastructure and homeland security markets, including consulting, engineering, construction, remediation and facilities management services to governmental and commercial customers. It is also a vertically integrated provider of engineering, procurement, pipe fabrication, construction and maintenance services to the power and process industries. The company segregates its business activities into four operating segments: Environmental & Infrastructure; Energy & Chemicals; Maintenance, and Fabrication, Manufacturing & Distribution. In January 2005, the company sold substantially all of the assets of its Shaw Power Technologies, Inc. and Shaw Power Technologies International, Ltd. units to Siemens Power Transmission and Distribution Inc., a unit of Siemens AG. The company has operations in Japan, Chile, China, Malaysia, the United Kingdom and, Venezuela, among others. Standard & Poor's Ratings Services placed its 'BB' corporate credit rating and other ratings for The Shaw Group Inc. on CreditWatch with negative implications. SOFTBANK CORP: S&P Affirms BB- Rating on EUR500-Million Notes ------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB-' rating on Softbank Corp.'s EUR500 million euro-denominated senior unsecured notes due Oct. 15, 2013. The coupon rate is 7.75%. The rating on the bonds was assigned on Sep. 27 and the terms and conditions of the subordinated bonds were confirmed [Tues]day. The rating on Softbank reflects the company's weak capital structure, which deteriorated after the company's debt-financed purchase of Vodafone K.K. (now Softbank Mobile Corp.). However, the company's overall earnings are improving, and this should lower the chances of further deterioration in its capital structure. Given the company's relationship with its lender financial institutions and its latent profits on securities, its refinancing and liquidity risks should be limited. SOFTBANK CORP: Announces Terms For Issue of Senior Notes -------------------------------------------------------- Softbank Corporation disclosed that it has determined the terms of issue of its euro-denominated Senior Notes due year 2013, issuance of which was resolved by the company's board of directors on September 26, 2006, according to a company press release. In sum, the terms are: 1. Aggregate amount of issue: EUR500 million (Yen equivalent: approximately JPY74.8 billion, exchange rate: EUR1 = JPY149.69) 2. Price at issue: 99.335% of par 3. Coupon rate: 7.75% (Yen equivalent: approximately 5.2%) 4. Closing date: October 12, 2006. 5. Credit rating: BB - Standard & Poor's Ba2 - Moody's Investors Service The notes will not be registered under the Securities and Exchange Law of Japan, as amended, and will not be offered or sold, directly or indirectly, in Japan or to, or for the benefit of, any resident of Japan (including Japanese corporations), except as permitted under any applicable laws of Japan. The notes will not be registered under the United States federal securities laws or the securities laws of any other jurisdiction. The Notes will be offered and sold only to persons outside the U.S. in accordance with Regulation S under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"). Notes may not be offered or sold in the U.S. absent registration or an exemption from registration under the U.S. Securities Act. This announcement is not an offer of securities for sale in the United States. This disclosure announcement is directed only at persons who: i. are outside the United Kingdom or ii. have professional experience in matters relating to investments or iii. are persons falling within Article 49(2)(a) to (d) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005. About Softbank Corporation Based in Tokyo, Japan, Softbank Corporation -- https://www.softbank.co.jp/ -- is a leading Japanese telecommunications and media corporation, with operations in broadband, fixed-line telecommunications, e-Commerce, Internet, broadmedia, technology services, finance, media and marketing, and other businesses. SoftBank was established on September 3, 1981, and had a market capitalization of approximately US$32.8 billion at February 28, 2006. SoftBank's corporate profile includes various other companies such as Japanese broadband company Cable & Wireless IDC, cable company BB-Serve, and gaming company GungHo Online Entertainment. On March 17, 2006, SoftBank announced its agreement to buy Vodafone Japan, giving it a stake in Japan's US$78 billion mobile market. * * * According to the Troubled Company Reporter - Asia Pacific on April 18, 2006, Standard & Poor's Rating Services agency affirmed its 'BB-' long-term corporate credit rating on the company, with negative implications. Moody's Investors Service had, on August 9, 2006, upgraded Softbank Corp.'s stable long-term debt rating and issuer rating to Ba2 from Ba3, concluding a review initiated on March 17, 2006, when the company announced that it would acquire a 97.7% stake in mobile phone giant Vodafone Group's Japanese unit, Vodafone K. K. SOFTBANK MOBILE: Says Mobile Phone Users Rise 23,400 in Sept. ------------------------------------------------------------- Softbank Mobile Corp., the cellular phone unit of Softbank Corp., has said that it gained a net 23,400 subscribers to its mobile phone service in September 2006. The service, which changed its name from Vodafone on October 1, 2006, had about 15.3 million users as of the end of September, the company said. Subscribers to its third-generation cellular phone service rose a net 227,400 to about 4.56 million. About Softbank Corporation Based in Tokyo, Japan, Softbank Corporation -- https://www.softbank.co.jp/ -- is a leading Japanese telecommunications and media corporation, with operations in broadband, fixed-line telecommunications, e-Commerce, Internet, broadmedia, technology services, finance, media and marketing, and other businesses. SoftBank was established on September 3, 1981, and had a market capitalization of approximately US$32.8 billion at February 28, 2006. SoftBank's corporate profile includes various other companies such as Japanese broadband company Cable & Wireless IDC, cable company BB-Serve, and gaming company GungHo Online Entertainment. On March 17, 2006, SoftBank announced its agreement to buy Vodafone Japan, giving it a stake in Japan's US$78 billion mobile market. * * * According to a Troubled Company Reporter - Asia Pacific report on April 18, 2006, Standard & Poor's Rating Services agency affirmed its 'BB-' long-term corporate credit rating on the Company, with negative implications. Moody's Investors Service had, on August 9, 2006, upgraded Softbank Corp.'s stable long-term debt rating and issuer rating to Ba2 from Ba3, concluding a review initiated on March 17, 2006, when the Company announced that it would acquire a 97.7% stake in mobile phone giant Vodafone Group's Japanese unit, Vodafone K. K. About Softbank Mobile Headquartered in Tokyo, Japan, Softbank Mobile Corp. -- http://www.softbankmobile.co.jp/-- offers mobile voice, data, and wireless Internet services throughout Japan. Formerly known as Vodafone K.K. and operated as Vodafone Japan, the island country's #3 wireless carrier (behind giants NTT Docomo and KDDI) has more than 15 million subscribers with more than 85% also subscribing to Vodafone live!, the company's interactive mobile service. The company also offers innovative "movie sha- mail," its popular photo-messaging service using mobile handsets. UK-based Vodafone Group sold its 98% stake in Vodafone K.K. to SOFTBANK in a deal valued at nearly US$16 billion. The Troubled Company Reporter - Asia Pacific reported on Oct. 4, 2006, that Standard & Poor's Ratings Services said that its 'BB+' long-term ratings on Softbank Mobile Corp., which was renamed from Vodafone K.K. on Oct. 1, 2006, remain on CreditWatch with negative implications. SUMITOMO MITSUI BANKING: Parent Cancels JPY195B Pref. Stock ----------------------------------------------------------- Sumitomo Mitsui Banking Corporation's parent, Sumitomo Mitsui Financial Group, Inc., has announced that SMFG's board of directors decided to acquire and cancel its Type 3 preferred stock, the company said in a press release. The JPY 195-billion preferred stocks are owned by the Resolution and Collection Corporation. RCC holds 195,000 shares of Type 3 Preferred Stock, and the total amount of acquisition is set at JPY222.24 billion. The acquisition of the preferred stock is to be executed within SMFG's own stock acquisition limit approved at its annual general shareholders' meeting held in June 2006. SMFG intends to cancel those shares of the preferred stock upon acquisition. In addition to the preferred stock above, 60,466 shares of SMFG common stock are held by RCC. Those common shares were delivered to RCC as a result of the exercise of its right to request acquisition with respect to part of the Type 3 preferred stock (total issue price: JPY50 billion). Headquartered at Chiyoda-ku, in Tokyo, Japan, Sumitomo Mitsui Banking Corporation -- http://www.smbc.co.jp/-- provides commercial banking services including deposits, loans, foreign exchange transactions, and correspondents banking services around the world. The bank also provides leasing, securities brokerages, credit cards, consumer loans, venture capital, and mortgage securitization services. The Troubled Company Reporter - Asia Pacific reported on July 17, 2006, that Moody's Investors Service has upgraded the bank financial strength rating of Sumitomo Mitsui Banking Corporation to D+ from D. A subsequent TCR-AP report on Oct. 3, 2006, stated that Fitch Ratings has affirmed Sumitomo Mitsui's Individual Rating at C/D. SUMITOMO REALTY: Profit More Than Doubles Year Ending March ----------------------------------------------------------- Sumitomo Realty & Development Co., Ltd., posted a JPY646.5-billion revenue from operations in the fiscal year ending March 31, 2006, up 4.9% from the year before, the company said in its annual report. The cost of revenue from operations rose 3.6% to JPY487.8 billion and gross profit increased 9.1% to JPY158.7 billion. Net income more than doubled, rising 109.1% to JPY32.5 billion. As of March 31, 2006, total assets amounted to JPY2.46 trillion, increasing 15.2% from the previous fiscal year-end. Total liabilities amounted to JPY2.07 billion as of March 31, 2006 Headquartered in Tokyo, Sumitomo Realty & Development Co., Ltd. -- http://www.sumitomo-rd.co.jp/-- is a Japan-based real estate company. The company operates in five business segments. The Real Estate Leasing segment is engaged in the leasing of office buildings and condominiums, as well as providing leasing services for special purpose companies (SPCs). The Real Estate Sales segment is engaged in the sale of condominiums, buildings, detached houses and other properties. This segment also provides real estate maintenance services. The Complete Construction segment is engaged in the construction work of residential homes, as well as refurbishment work. The Real Estate Distribution segment is involved in the provision of real estate brokerage services. The Others segment is engaged in the operation of fitness clubs and restaurants, as well as the finance business. On February 14, 2006, Moody's Investor Service assigned a Ba1 rating on Sumitomo Realty & Development Co Ltd's senior unsecured debt. TAIHEIYO CEMENT: Posted Net Income of JPY616M for First Qtr ----------------------------------------------------------- Taiheiyo Cement Corporation posted a net income of JPY616 million for the first quarter of the fiscal year ending March 31, 2006, a turnaround from the net loss of JPY19.65 billion the company recorded a year before. Net sales went up 2.9% for the quarter in review, from JPY211.06 billion to JPY214.15 billion. Operating income amounted to JPY11.54 billion, an improvement of 17.9%, while ordinary income improved 12.4% to JPY8.20 billion for the first quarter of the fiscal year ending March 31, 2006. As of March 31, 2006, the company had total assets amounting to JPY1.25 trillion, while its shareholders' equity amounted to JPY300.62 billion. About Taiheiyo Cement Headquartered in Tokyo, Japan, Taiheiyo Cement Corporation -- http://www.taiheiyo-cement.co.jp/-- formed by the 1998 merger of Chichibu Onoda Cement and Nihon Cement, is Japan's leading cement manufacturer. Taiheiyo's other interests include minerals and aggregates, construction materials (ready-mix concrete and concrete products), and real estate. The company also operates materials recycling businesses that include the conversion of sewage sludge from power plants. Taiheiyo provides real estate management services in the Tokyo area. The Troubled Company Reporter - Asia Pacific reported on February 9, 2006, that Standard & Poor's Rating Services assigned its 'BB' long-term corporate credit and senior unsecured debt ratings to Taiheiyo Cement Corporation. The outlook on the long-term corporate credit rating on the company is stable. The outlook on the long-term corporate credit rating is stable. TAIHEIYO CEMENT: Targest JPY23 Billion for Fiscal Year 2007 ----------------------------------------------------------- Taiheiyo Cement Corporation forecasts a JPY915.00-billion consolidated sales for the fiscal year ending March 31, 2007, the company announces on its Web site. The company consequently expects operating income of JPY68.84 billion and a net income of JPY23.00 billion for the fiscal year ending March 31, 2007. About Taiheiyo Cement Headquartered in Tokyo, Japan, Taiheiyo Cement Corporation -- http://www.taiheiyo-cement.co.jp/-- formed by the 1998 merger of Chichibu Onoda Cement and Nihon Cement, is Japan's leading cement manufacturer. Taiheiyo's other interests include minerals and aggregates, construction materials (ready-mix concrete and concrete products), and real estate. The company also operates materials recycling businesses that include the conversion of sewage sludge from power plants. Taiheiyo provides real estate management services in the Tokyo area. The Troubled Company Reporter - Asia Pacific reported on February 9, 2006, that Standard & Poor's Rating Services assigned its 'BB' long-term corporate credit and senior unsecured debt ratings to Taiheiyo Cement Corporation. The outlook on the long-term corporate credit rating on the company is stable. The outlook on the long-term corporate credit rating is stable. TOCHIGI BANK: Posts JPY4-Billion Income for Full Year 2005-2006 --------------------------------------------------------------- The Tochigi Bank, Ltd., posted a net income of JPY4.35 billion for the fiscal year ended March 31, 2006, up from the JPY2.43 billion it posted a year before, according to the company's financials. Total income amounted to JPY57.20 billion, while total expenses amounted to JPY49.65 billion. As of March 31,2006, the bank had total assets of JPY2.2 trillion, and total stockholders' equity amounted JPY115.40 billion. The bank had JPY2.09 trillion in deposits, JPY1.36 trillion in loans and bills discounted, and JPY670.22 million in securities as of March 31, 2006. Headquartered in Tochigi Prefecture, The Tochigi Bank, Ltd. -- http://www.tochigibank.co.jp/-- is a regional bank, which mainly provides financial products and services for corporate and individual clients. The bank operates in four business segments. The Banking segment is engaged in the provision of deposit services, fund transfer services, foreign exchange services, loan services, securities investment services, bonds services and other banking services. The Credit Guarantee segment is engaged in the provision of housing loan services. The Leasing segment is engaged in equipment leasing services. The Card segment is engaged in the provision of credit card services. Fitch Ratings gave Tochigi Bank a 'C' individual rating on January 31, 2006. ========= K O R E A ========= CONMED CORPORATION: 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 ConMed Corporation. 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 ---------- ------- ------- ------ ---------- Senior Secured Revolving Credit Facility due 2011 Ba2 Ba2 LGD2 30% Senior Secured Term Loan B due 2013 Ba2 Ba2 LGD2 30% Senior Subordinated Convertible Notes due 2024 B2 B2 LGD5 85% 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%). Headquartered in Utica, New York, Conmed Corp. (Nasdaq: CNMD) -- http://www.conmed.com/-- is a medical technology company with an emphasis on surgical devices and equipment for minimally invasive procedures and monitoring. The company's products serve the clinical areas of arthroscopy, powered surgical instruments, electrosurgery, cardiac monitoring disposables, endosurgery and endoscopic technologies. They are used by surgeons and physicians in a variety of specialties including orthopedics, general surgery, gynecology, neurosurgery, and gastroenterology. The company's 3,100 employees distribute its products worldwide from several manufacturing locations. The company has operations in Australia, Canada, Deutschland, France, Europe, Belgium, Spain, the United Kingdom and Korea, among others. HYNIX SEMICONDUCTOR: Completes Construction of US$2-Bil. Plant -------------------------------------------------------------- Hynix Semiconductor Inc. and STMicroelectronics NV completed the construction of their US$2-bilion front-end memory-manufacturing facility at Wuxi City, in Jiangsu Province, China. The chip-making facility is a joint venture of Hynix and STMicro, which agreement they entered into in November 2004. Under the pact, Hynix will contribute US$500 million for a 67% equity interest and STMicro will contribute US$250 million for the remaining 33% interest. The plant's construction started in April 2005 right after the companies were granted business license for the venture. Citing a construction project manager, Semiconductor Fabtech Web portal describes the plant as having "the size of 22 American football fields and over 700,000 square feet of built and planned manufacturing facilities." The facility is believed to be the largest in China. According to the Korea government's Web site, the companies entered into the deal to grab a bigger slice of the memory chip market in China. "For Hynix, the Wuxi plant was a desperate choice to avoid countervailing tariffs from the United States and Japan," Korean.net points out. Hynix may consider investing more to upgrade the plant's facilities earlier than scheduled, depending on market situations, the Korean site adds. The Troubled Company Reporter - Asia Pacific reported on Aug. 16, 2006, that the joint venture raised US$750 million in syndicated loans to finance the construction of a new memory chip line in the Wuxi plant. About STMicroelectronics STMicroelectronics N.V., headquartered in Geneva, is a global independent semiconductor company that designs, develops, manufactures and markets a range of semiconductor products. It operates through three product segments: Application Specific Product Group, Memory Products Group, and Micro, Linear and Discrete Group. About Hynix Semiconductor Headquartered in Ichon, South Korea, Hynix Semiconductor Inc. -- http://www.hynix.com/-- is a semiconductor manufacturer. Through a merger with LG Semiconductor in 1999, Hynix Semiconductor now has the world's largest dynamic random access memory chip production capacity as well as the industry's best technical development capacity by fully exploiting synergies resulting from the historical integration of both companies. Standard & Poor's Ratings Services gave Hynix, and its U.S. subsidiary, Hynix Semiconductor Manufacturing America Inc., a 'B+' long-term corporate credit rating. WOORI BANK: Most Profitable Lender in 2007, President Says ---------------------------------------------------------- Woori Bank will be the most profitable lender in 2007 with the successful programs it conducted to improve its profitability, The Korea Times reports, citing the Bank's president, Hwang Young-key. In the fourth quarter this year, the Bank will continue to engage in aggressive expansion, Mr. Hwang continued. Mr. Hwang pointed out to the Times how very well the Bank performed in September this year -- having KRW177 trillion in assets by the end of that month, an increase of KRW37 trillion from the end of last year. The Bank president also boasted of its market share in the credit card segment in September -- gaining 80,000 new customers, twice the monthly customer rise. "Our growth will continue through next year," The Times quoted Mr. Hwang as saying. "I will focus more on improving profitability to make Woori a bigger and stronger bank. If plans succeed, Woori will be the most profitable bank." About Woori Bank Woori Bank -- http://www.wooribank.com/-- is a government-owned bank headquartered in Seoul, Korea. The bank was established in 2002, and includes the former Hanbit Bank, Sangup Bank and Hanil Bank. It is a part of the Woori Financial Group. It has branches all over the world, including in New York, Los Angeles, Beijing, Tokyo, Hong Kong, Indonesia, Bahrain, Singapore, Moscow, London, and Dhaka. * * * Fitch Ratings gave Woori Bank an individual rating of 'B/C' effective July 20, 2005. Moody's Investors Service gave Woori a 'D+' Bank Financial Strength Rating effective March 14, 2006. =============== M A L A Y S I A =============== AKTIF LIFESTYLE: Appeals Committee to Rule on Extension Request --------------------------------------------------------------- As previously reported by the Troubled Company Reporter - Asia Pacific, Aktif Lifestyle Corporation Bhd sought to extend to December 30, 2006, the deadline for the company to submit necessary applications to regularize its financial conditions to relevant authorities. The company applied for the extension to identify a new suitable white knight. In an earlier report, the TCR-AP recounted that on June 15, 2006, Aktif Lifestyle and the promoters of Strandcom MSC Berhad executed a restructuring deal to regularize the financial condition of Aktif and its subsidiaries. Strandcom is the white knight in the restructuring exercise. However, the promoters of Strandcom later decided to withdraw from the Restructuring Scheme asserting it was no longer in line with their business plans. Hence, Aktif Lifestyle's search for a new white knight and its extension application continues. Through a letter dated October 6, 2006, Bursa Malaysia Securities Berhad informed the company that the request for extension will be scheduled for consideration by the Bourse's Appeals Committee. The removal of Aktif Lifestyle's securities from the Bourse's Official List will be deferred pending the decision of the Committee, the Bourse said. About Aktif Lifestyle Headquartered in Kuala Lumpur, Malaysia, Aktif Lifestyle Corporation Berhad's principal activities is the operation of specialty retail stores. Other activities include investment holding. The Company has defaulted on several loan facilities and incurred continuous losses. It embarked on various corporate exercises aimed at regularizing its financial condition. In 2005, the Company presented a proposed restructuring scheme, hich did not win the Securities Commission's favor due to uncertainty in assets valuation and concerns on corporate governance issues. An appeal to the SC to review its decision on the Proposed Restructuring Scheme was already submitted. As reported by the Troubled Company Reporter - Asia Pacific, Bursa Malaysia Securities Berhad, on June 8, 2006, commenced delisting procedures against Aktif, which is a Practice Note 10 company. In a statement, Bursa Securities said that Aktif has failed to ensure that its level of operations is adequate in accordance to the listing requirements. CYGAL BERHAD: Given Five Days to Show Cause Over Delisting Issue ---------------------------------------------------------------- The Securities Commission gave Cygal Berhad five market days, starting on October 9, 2006, to make written representations as to why its securities should not be delisted. In the event Bursa Securities decides to delist Cygal, its securities will be removed from the Official List of Bursa Securities upon expiry of seven market days from the date of notification of the delisting decision or on another date as may be specified by the Bourse. If Bursa Securities decides not to delist the company, other appropriate action or penalty may be imposed pursuant to the Listing Requirements of Bursa Securities. As reported by the Troubled Company Reporter - Asia Pacific on September 20, 2006, the SC denied Cygal's application for a final extension of time to implement the company's restructuring plan. Cygal appealed for another extension. The SC's decision on the appeal is currently pending. About Cygal Berhad Headquartered in Kuala Lumpur, Malaysia, Cygal Berhad's principal activity is civil and building construction works. Its other activities include housing development; manufacturing and trading in ready mix concrete; trading in building materials; leasing of aircraft parts and equipment; provision of hotel management services; and investment holding. The Group's activities are located in Malaysia and Hong Kong. On Nov. 19, 2001, Cygal Berhad and its subsidiary companies finalized a debt restructuring agreement with their lenders on involving debts outstanding of approximately MYR230 million. The Troubled Company Reporter - Asia Pacific reported on January 13, 2006, that Cygal has obtained the consent of the majority of its financial institution creditors for a further extension of time within which Cygal is to meet the conditions precedent as stipulated in its Nov. 2001 Settlement Agreement with its creditors. The deal relates to the settlement of Cygal's MYR229,637,109 debt to its lenders. As of June 30, 2006, the company has total assets of MYR225.079 million and total liabilities of MYR500.665 million resulting into a stockholders' deficit of MYR275.586 million LITYAN HOLDINGS: Appeal Defers Delisting to November 23, 2006 ------------------------------------------------------------- The Troubled Company Reporter - Asia Pacific reported that the securities of Lityan Holdings Berhad will be removed from the official list of the Securities Commission on October 13, 2006. In an update, Lityan Holdings informed Bursa Malaysia Securities Berhad that the company has sought judicial review of the Security Commission's delisting decision. The company also asked for an interim order to stay the SC decision. In view of the appeal, the removal of the securities will be deferred until November 23, 2006. 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. PAN MALAYSIA CAPITAL: Regularizes Financial Condition ----------------------------------------------------- Pan Malaysia Capital Berhad on October 10, 2006, has regularized its financial conditions, pursuant to Practice Note 17. The TCR-AP recounts that the Company completed the Par Value Reduction exercises on September 29, 2006, as part of its efforts to regularize its financial condition. Accordingly, upon the completion of the Proposed Par Value Reduction, the Company's present issued and paid-up share capital would be reduced from MYR815.31 million to approximately MYR326.12 million. Based on the reduced share capital, the Company would need to achieve revenue on a consolidated basis of not less than approximately MYR16.34 million per annum, which represents more than 5% of the Reduced Share Capital to regularize its level of operations pursuant to Practice Note 17 of Bursa Malaysia Securities Berhad's Listing Requirements. About Pan Malaysia Capital Berhad Pan Malaysia Capital Berhad is involved in stock and share broking. Its other activities include provision of corporate advisory, research and fund management and nominee and custodian services, options and financial futures broking, property and investment holding and share registration. Operations of the Group are principally carried out in Malaysia. The Company's existing ordinary shares of MYR1.00 each have been trading on the stock exchange substantially below par for a long period of time. The last traded price of PM Cap shares on March 1, 2006, was MYR0.095 per share. The Company has proposed to reduce capital to erase its accumulated losses. Pan Malaysia Capital was categorized by Bursa Malaysia Securities Berhad as a Practice Note 17/2005 company due to its insignificant business operations for the financial year ended December 31, 2005. PAN MALAYSIA HOLDINGS: Regularizes Financial Conditions ------------------------------------------------------- Pan Malaysia Holdings Berhad has regularized its financial condition and no longer triggers any of the criteria under Paragraph 2.0 of Practice Note 17/2005, the company said in a filing with the Bursa Malaysia Securities Berhad. As reported by the TCR-AP, the company has concluded its Capital Reconstruction Exercise on September 29, 2006. The Capital Reconstruction created a credit amounting to approximately MYR870.71 million, which has been utilized to set off the accumulated losses of the Company. Accordingly, the Company's audited accumulated losses of MYR872.86 million as at December 31, 2005, have been reduced to MYR2.15 million. Moreover, the company's financial report for the first quarter ended March 31, 2006, reveals that it has already achieved the requisite revenue of MYR4.66 million in the current quarter as its revenue on a consolidated basis for the current quarter is MYR13.75 million. Thus, the company ceased to be an Affected Listed Issuer under Bursa Malaysia's Practice Note 17. About Pan Malaysia Holdings Berhad Headquartered in Kuala Lumpur, Malaysia, Pan Malaysia Holdings Berhad engaged in the provision of financial services, property and leisure, investment holding and dealing and manufacturing and selling of self-adhesive sticker labels. The Group also manufactures carton boxes and general packaging products. Other activities relating to financial services are stockbroking, options and financial futures broker, research fund management services and money lending. As reported by Troubled Company Reporter - Asia Pacific on March 14, 2006, Pan Malaysia Holdings has drafted a capital reorganization plan following its admission to Bursa Malaysia's Practice Note 17. Pan Malaysia Holdings proposed to cancel 90 sen of the par value of each existing share of MYR1.00 each. On completion of the capital reconstruction, it is expected that the Company's accumulated losses of MYR872.5 million at end-2005 would be reduced to MYR1.8 million. ===================== N E W Z E A L A N D ===================== AIR NEW ZEALAND: Airport Services Division Jobs at Risk ------------------------------------------------------- Nearly 1,700 Air New Zealand jobs are under threat, with the company considering the outsourcing of staff in its Airport Services Division, Newswire.co.nz reports. Unions have advised Air New Zealand that they want to enter a 58-day consultation process over the future direction of its Airport Services Division. Airport Services is the part of Air New Zealand that manages processes ranging from check-in to tarmac operations and loading luggage for Air New Zealand and many other airlines in New Zealand. It employs 1,675 full-time and part-time staff based at Auckland, Wellington, and Christchurch airports. Group General Manager People Vanessa Stoddart says the Airport Services business is currently facing severe challenges. "We have been working with staff representatives for many months to explore ways of improving the competitiveness of Airport Services and to reduce the loss of third-party work as other airlines operating in New Zealand move to other suppliers. To date the speed of progress made has not been sufficient," Ms. Stoddart says. "In the past two weeks, our second largest airline customer here in New Zealand has terminated their contract, because they perceive that Air New Zealand can no longer provide a competitive service. The loss of that contract could jeopardize approximately 160 Airport Services jobs," Ms. Stoddart reveals. On October 5, 2006, the airline met with union leaders to outline the scale and urgency of the problem. According to Ms. Stoddart, the meeting was an opportunity to impress on them that if we can't rapidly address the uncompetitive issues in our business, Airport Services will continue to lose customers and scale, and will struggle to remain viable. "A key issue for Airport Services remains its current lack of flexibility to meet customer needs due to restrictive work practices," Ms Stoddart notes. The union leaders were offered the opportunity to assist Air New Zealand in finding an urgent solution to the problem. Their response has been to advise the airline that it should commence a formal 58-day consultation process to resolve the future direction of Airport Services. "In the event that we can't develop a market competitive in- house solution, which is our strong preference, Air New Zealand will be forced to look to a third party airport services provider to deliver this service, just as all other airlines flying into and out of New Zealand do," Ms. Stoddart says. The Engineering, Printing and Manufacturing Union represents about 1,400 of the Air Services jobs, Newswire.co.nz says, noting that EPMU has been working with the airline for months to address its concerns about becoming more competitive. Newswire.co.nz cites the union's national secretary, Andrew Little, as saying Air New Zealand believes contractors could do the work for about NZ$20 million less, although he disputes that. If Air New Zealand proceeds with an outsource of Airport Services, it would expect the new provider to employ most of the existing staff with more flexible terms and conditions. About Air New Zealand Based in Auckland, New Zealand, Air New Zealand is the country's flag air carrier, with domestic and international passenger and freight operations, and an aviation engineering business. As reported in the Troubled Company Reporter - Asia Pacific on September 2, 2005, Moody's Investors Service affirmed its Ba1 issuer rating on Air New Zealand Limited after the airline announced its annual results for FY2005. Air NZ's rating reflected its dominant position in the New Zealand domestic market, with around 80% market share, and the profitability of domestic operations following their restructuring to a low-cost network model. Also supporting Air NZ's rating was its solid liquidity position, with cash balances of NZ$1.071 billion held as at June 30, 2005. However, while Air NZ has a solid position in New Zealand and other parts of the international network are performing well, intense competition on trans-Tasman routes has resulted in it being unprofitable for Air NZ. International competition also limits Air NZ's ability to expand. Its management is also aware of the airline's vulnerability to external shocks and the actions of key competitors. AM PM CALLING: Court Appoints Joint Liquidators ----------------------------------------------- On September 18, 2006, the High Court at Wellington appointed David Stuart Vance and Barry Phillip Jordan as joint and several liquidators of AM PM Calling Ltd. Subsequently, the Joint Liquidators require the company's creditors to file their proofs of claims by October 16, 2006. Failure to prove debts by the due date will exclude a creditor from sharing in any distribution the company will make. The Joint Liquidators can be reached at: David Stuart Vance Barry Phillip Jordan McCallum Petterson Level Eight, The Todd Building 95 Customhouse Quay (P.O. Box 3156) Wellington, New Zealand Telephone:(04) 499 7796 Facsimile:(04) 499 7784 ARCHEFECTS LTD: Creditors' Proofs of Debt Due on October 16 ----------------------------------------------------------- Liquidators David Stuart Vance and Barry Phillip Jordan require creditors of Archefects Ltd, which is in liquidation, to submit their proofs of debts by October 16, 2006. Failure to show proofs of debt by the due date will exclude a creditor from sharing in any distribution the company will make. The Joint Liquidators can be reached at: David Stuart Vance Barry Phillip Jordan McCallum Petterson Level Eight, The Todd Building 95 Customhouse Quay (P.O. Box 3156) Wellington, New Zealand Telephone:(04) 499 7796 Facsimile:(04) 499 7784 CLINTON TAXATION: Appoints Joint and Several Liquidators -------------------------------------------------------- On September 11, 2006, shareholders of Clinton Taxation Services Ltd appointed Dennis Clifford Parsons and Katherine Louise Kenealy as the company's Joint and Several Liquidators. The Joint Liquidators can be reached at: Dennis Clifford Parsons Katherine Louise Kenealy Indepth Forensic Limited Insolvency Practitioners P.O. Box 278, Hamilton New Zealand Telephone:(07) 957 8674 Facsimile:(07) 957 8677 DSN HOLDINGS: Creditors' Proofs of Claim Due on October 31 ---------------------------------------------------------- On September 6, 2006, shareholders of DSN Holdings Ltd appointed Bryan George Pocock as liquidator. Accordingly, Mr. Pockok fixed October 31, 2006, as the last day for the company's creditors to prove their claims. The Liquidator can be reached at: Bryan George Pocock Level Seven, 44 Victoria Street (P.O. Box 10-788), Wellington Australia Telephone:(04) 472 3560 Facsimile:(04) 472 3564 HOWLING LTD: Creditors Must Prove Debts by December 11 ------------------------------------------------------ On September 11, 2006, Vivian Judith Fatupaito and Richard Dale Agnew were appointed to act as joint and several liquidators of Howling Ltd. Creditors are required to prove their debts to the liquidators by December 11, 2006, or be excluded from the benefit of any distribution the company will make. The Troubled Company Reporter - Asia Pacific previously reported that on September 11, 2006, the High Court of Rotorua heard the liquidation petition filed by Hirepool Ltd against the Company. The Joint Liquidators can be reached at: Vivian Judith Fatupaito Richard Dale Agnew PricewaterhouseCoopers Level Eight, PricewaterhouseCoopers Tower 188 Quay Street, (Private Bag 92-162) Auckland, New Zealand Telephone:(09) 355 8000 Facsimile:(09) 355 8013 INFINITY BAR: Creditors Must Prove Debts by October 16 ------------------------------------------------------ Creditors of Infinity Bar & Niteclub Ltd are required to submit their proofs of debts by October 16, 2006, to Liquidators Vance and Jordan, for them to share in the company's distribution. On September 18, 2006, the High Court at Wellington appointed David Stuart Vance and Barry Phillip Jordan as joint and several liquidators. The Joint Liquidators can be reached at: David Stuart Vance Barry Phillip Jordan McCallum Petterson Level Eight, The Todd Building 95 Customhouse Quay (P.O. Box 3156) Wellington, New Zealand Telephone:(04) 499 7796 Facsimile:(04) 499 7784 MOUNTAIN ROAD: Creditors' Proofs of Debt Due on October 20 ---------------------------------------------------------- On September 15, 2006, Arron Leslie Heath and Michael Lamacraft were appointed as joint and several liquidators of Mountain Road Development Company Ltd. The Joint Liquidators, therefore, required the company's creditors to prove their debts by October 20, 2006, or be excluded from sharing in any distribution the company will make. The Troubled Company Reporter - Asia Pacific reported that on June 20, 2006, the Commissioner of Inland Revenue filed a liquidation petition against the company. The Joint Liquidators can be reached at: Arron Leslie Heath Michael Lamacraft Meltzer Mason Heath Chartered Accountants P.O. Box 6302, Wellesley Street Auckland, New Zealand Telephone:(09) 357 6150 Facsimile:(09) 357 6152 PILCHERS WATERPROOFING: Creditors' Proofs of Claim Due Oct. 20 -------------------------------------------------------------- On September 19, 2006, shareholders of Pilchers Waterproofing Ltd appointed Arron Leslie Heath and Michael Lamacraft as joint and several liquidators. Consequently, the liquidators required the creditors to file proofs of claim by October 20, 2006. Failure to prove their claims will exclude a creditor from sharing in any distribution the company will make. The Joint Liquidators can be reached at: Arron Leslie Heath Michael Lamacraft Meltzer Mason Heath Chartered Accountants P.O. Box 6302, Wellesley Street Auckland 1141 New Zealand Telephone:(09) 357 6150 Facsimile:(09) 357 6152 RAMJET CONTRACTORS: Creditors' Proofs of Claim Due on Dec. 18 ------------------------------------------------------------- Ramjet Contractors Ltd, which is in liquidation, appointed Vivian Judith Fatupaito and Richard Dale Agnew as joint and several liquidators on September 18, 2006. The liquidators then required creditors of the Company to submit their proofs of claim by December 18, 2006, or be excluded from sharing in any distribution the company will make. The Joint Liquidators can be reached at: Vivian Judith Fatupaito Richard Dale Agnew PricewaterhouseCoopers Level Eight, PricewaterhouseCoopers Tower 188 Quay Street, (Private Bag 92-162) Auckland, New Zealand Telephone:(09) 355 8000 Facsimile:(09) 355 8013 * New Zealand Insolvency Practitioners Rules Up for Discussion -------------------------------------------------------------- On October 13, 2006, Commerce Minister Lianne Dalziel released proposals for the regulation of insolvency practitioners, company liquidators, and administrators after earlier submissions on insolvency law reform overwhelmingly supported the establishment of a regulatory framework. "While submitters felt the great bulk of liquidations are carried out by capable and honest practitioners, concerns were expressed about the competence and professionalism of a minority of practitioners," Ms. Dalziel said. Ms. Dalziel said concerns about the lack of a regulatory framework for insolvency practitioners had also been expressed in submissions on the Insolvency Law Reform Bill currently before Parliament, particularly in the proposal to introduce a Voluntary Administration regime. Ms. Dalziel further said that while insolvency practitioners are a relatively small industry in New Zealand, they carried out a specialized task which is crucial to protecting and promoting the integrity of the corporate insolvency system, involving the liquidation of insolvent companies, or the rehabilitation of a company or the viable parts of a business. "Despite undertaking such a crucial role in New Zealand commerce, insolvency practitioners are not required to be licensed or registered by a regulatory body with powers to investigate possible misconduct," Ms. Dalziel clarified. There are some statutory requirements, but practitioners are not required to have particular qualifications or levels of education, nor do they have to belong to any professional organization, Ms. Dalziel noted. "Because of this, there is no official record of the number of insolvency practitioners or their qualifications. This information gap has the potential to create problems as those appointing practitioners may not always know whether practitioners are competent to liquidate or rehabilitate companies," Ms. Dalziel added. Ms. Dalziel also also noted that the government has not decided to introduce a regulatory framework for this small but important profession, but "we have been persuaded to take further advice on the matter." The discussion document is available at http://www.med.govt.nz. A copy of the Insolvency Law Reform Bill as reported back from the Commerce Select Committee is available at: http://www.parliament.govt.nz/ ===================== P H I L I P P I N E S ===================== METROPOLITAN BANK: To Sell 173.62 Million Primary Shares -------------------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on September 18, 2006, Metropolitan Bank & Trust Co. planned to sell primary shares, the proceeds of which will be used to boost its capital adequacy ratio. The TCR-AP noted that the planned sale was postponed earlier this year due to unfavorable market conditions, but may be revived within the year. A follow-up report from ABS-CBN News relates that Metrobank plans to issue up to PHP7.1 billion (US$142 million) worth of shares this week, ABS-CBN News reports. Metrobank now has a market capitalization of nearly US$1.4 billion, the report notes. Metrobank wants to sell up to 173.62 million primary common shares, about a tenth of its existing 1.63 billion shares, mostly to foreign investors. The shares would be taken from the bank's unissued capital stock, ABS-CBN reveals. Pricing of the share offer will be between October 12 and 14, 2006. The price would be within plus or minus 10% of the 10-day weighted average price of the stock, ABS-CBN cites Metrobank as saying. According to Manila Bulletin, Metrobank's international offer will be held between October 18 and 20, 2006, while the domestic sale starts on October 16, and closes on October 20. UBS AG is the sole international underwriter, bookrunner, and stabilizing agent of Metrobank's share offer, while First Metro Investment Corp. is the underwriter for the domestic offering, Manila Bulletin reveals. PSE Suspends Trading As the bank undertakes its share-offering program, the Philippine Stock Exchange suspended trading in Metrobank from October 11, until October 26, 2006, The Manila Bulletin reports. About Metrobank Metropolitan Bank and Trust Company -- http://www.metrobank.com.ph/-- is the flagship company of the Metrobank Group. Metrobank provides a host of deposit, savings, and loan products as well as electronic banking services like internet banking, mobile banking, and phone banking, as well as its huge ATM network. Metrobank is also the leading provider of trade finance in the country, and its overseas branch network has enabled it to service the fund remittances of Filipino overseas contract workers. The Bank has 583 local branches and 35 international branches and offices located in Taiwan, China, Japan, Korea, Guam, United States, Hong Kong, Singapore, Bahamas, and in Europe. * * * On March 3, 2006, the Troubled Company Reporter - Asia Pacific reported that Standard and Poor's Rating Service assigned a CCC+ rating on Metrobank's US$125-million non-cumulative capital securities, whereas Moody's Investors Service Rating Agency issued a B- rating on the same capital instruments. Moreover, Moody's gave Metrobank a Ba3 Foreign Long-Term Bank Deposits and Subordinated Debt Rating effective May 25, 2006. On September 21, 2006, the TCR-AP reported that Fitch Ratings upgraded Metrobank's Individual rating to 'D' from 'D/E'. All the bank's other ratings were affirmed: * Long-term Issuer Default rating 'BB-' -- with a stable Outlook, * Short-term rating 'B,' * Support rating '3. METROPOLITAN BANK: Grants US$40 Million Term Loan to IMI -------------------------------------------------------- In a statement, Metropolitan Bank & Trust Co. disclosed that it has granted a US$40-million term loan to Integrated Microelectronics Inc., a unit of Philippine conglomerate Ayala Corp., ABS-CBN News reports. The report says IMI will use the proceeds from the loan for general operations. According to ABS-CBN News, IMI is an electronics manufacturing solutions provider for equipment manufacturers in Asia, Europe, and the United States. About Metrobank Metropolitan Bank and Trust Company -- http://www.metrobank.com.ph/-- is the flagship company of the Metrobank Group. Metrobank provides a host of deposit, savings, and loan products as well as electronic banking services like internet banking, mobile banking, and phone banking, as well as its huge ATM network. Metrobank is also the leading provider of trade finance in the country, and its overseas branch network has enabled it to service the fund remittances of Filipino overseas contract workers. The Bank has 583 local branches and 35 international branches and offices located in Taiwan, China, Japan, Korea, Guam, United States, Hong Kong, Singapore, Bahamas, and in Europe. * * * On March 3, 2006, the Troubled Company Reporter - Asia Pacific reported that Standard and Poor's Rating Service assigned a CCC+ rating on Metrobank's US$125-million non-cumulative capital securities, whereas Moody's Investors Service Rating Agency issued a B- rating on the same capital instruments. Moreover, Moody's gave Metrobank a Ba3 Foreign Long-Term Bank Deposits and Subordinated Debt Rating effective May 25, 2006. On September 21, 2006, the TCR-AP reported that Fitch Ratings upgraded Metrobank's Individual rating to 'D' from 'D/E'. All the bank's other ratings were affirmed: * Long-term Issuer Default rating 'BB-' -- with a stable Outlook, * Short-term rating 'B,' * Support rating '3. RIZAL COMMERCIAL BANKING: Fitch Gives B- Rating to Hybrid Issue --------------------------------------------------------------- On October 12, 2006, Fitch Ratings assigned an expected rating of 'B-' to Rizal Commercial Banking Corporation's planned hybrid issue of up to US$100 million. The final rating is contingent on the receipt of final documents conforming to information already received. All the bank's other ratings are affirmed: * Long-term Issuer Default rating at 'BB-' (BB minus); and * Individual 'D/E' and Support '3' The Outlook on the IDR rating is stable. The hybrid securities will rank junior to all deposits and other debt obligations including the bank's subordinated debt, pari passu with the most senior class of the bank's preference shares and other hybrid Tier-1 capital instruments of RCBC on a consolidated basis, and senior to other classes of preference shares and ordinary share capital. While potentially perpetual in nature, the securities are redeemable at the option of the bank on the 10th anniversary of their issue. They may also be redeemed under certain circumstances like changes to Philippine tax laws or if the securities no longer qualify as Tier 1 capital of RCBC due to changes in regulatory standards. Nevertheless, any redemption will require prior written consent from the Philippines' central bank, which may insist on the bank issuing new capital for funding the redemption of the above securities, if, in its opinion, the redemption could potentially result in the bank's capital ratios declining below the regulatory minimum. Interest will accrue on the securities at a fixed rate with a step-up margin after 10 years. At that time, interest will change to a floating rate basis pegged to the three-month LIBOR. Interest on the issue can be halted on a non-cumulative basis under certain circumstances, notably if the bank's capital adequacy ratio falls below the regulatory minimum or if its distributable reserves -- from which the interest is to be paid -- becomes insufficient. The bank's CAR stood at 14.98% as of July 2006 (vs an equity-to- assets ratio of c. 7%). It will rise to 18.55% with the hybrids, but then probably decline as the bank adopts more internationally acceptable accounting criteria. However, it is unlikely to decline to the 10% regulatory minimum. Distributable reserves (PHP1,572 million as at June 2006) appear adequate given that the annual servicing requirement. Furthermore, there is an additional incentive for RCBC to service the interest payments in a timely fashion; should a dividend on the issue be missed, RCBC would be precluded from making any cash dividend payments on its common shares. The rating for the issue reflects the risks of non-cumulative interest deferral and its junior legal status in the event of the bank's liquidation. The purpose of the issue is to bolster RCBC's capital base in preparation for Basel II. Established in 1960 and listed on the Philippine stock exchange in 1986, RCBC maintains a network of 294 branches and 252 ATMs. Its majority shareholder is the Yuchengco group (controlled by the Yuchengco family), a Philippine conglomerate with an extensive portfolio of other interests. SECURITY BANK: BSP Approves Cash Dividend Declaration ----------------------------------------------------- On October 10, 2006, the Bangko Sentral ng Pilipinas approved Security Bank Corporation's declaration of a regular semestral cash dividend of PHP0.25 per share and a special cash dividend of PHP0.50 per share. The record date for Security Bank's PHP0.75 per share cash dividend is on October 25, 2006, while the payment date is on November 21, 2006. About Security Bank Security Bank Corporation -- http://www.securitybank.com.ph/-- offers a wide variety of financial products and services. The Bank's services include peso, dollar and third currency deposits, domestic and international fund transfers, deposit pick-up and payroll services, and ancillary services. Security Bank also provides working capital financing, term arrangements and loan syndication services. Fitch Ratings gave Security Bank a 'BB' Long-Term Foreign Currency Issuer Default Rating, a 'BB' Long-Term Local Currency Issuer Default Rating, a 'D' Individual Rating and a '4' Support Rating. STENIEL MANUFACTURING: Chinatrust Offer was Exploratory ------------------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on September 21, 2006, in a response to the request of the Philippine Stock Exchange for the disclosure of the status of Steniel Manufacturing Corporation's rehabilitation proceedings, the company disclosed that it was still contemplating whether or not it: (a) will pursue corporate rehabilitation; and (b) is in the best interest of Steniel and its shareholders. However, a letter from Chinatrust (Phils.) Commercial Bank Corporation to the Securities and Exchange Commission dated October 10, 2006, alleged that Steniel's disclosure is false. According to the letter, Steniel has informed Chinatrust on July 18, 2006, that it had already decided not to seek restructuring of the company's outstanding debts. The letter disclosed that through its president and chief executive officer, Genesis Goldi D. Golingan, the company offered instead to buy out its debts from Chinatrust at 35% of the loan value. In its response to Chinatrust, Steniel reiterates that its disclosure was a response to the PSE's request for an update on its rehabilitation proceedings. There is no falsehood in that statement, the company says, noting that the option to enter into rehabilitation is still a viable option. Steniel explains that its offer to Chinatrust was exploratory and if accepted, would have been one of the factors that it would have considered in deciding whether or not to pursue rehabilitation through the courts. Steniel relates that one of the options it is considering is extra-judicial and entails the buy-out of the company's existing debts at a discount from its creditors. However, given Chinatrust's rejection to its offer, Steniel's buy-out plan cannot be implemented and therefore the company continues to consider all its options, including judicial rehabilitation, should the circumstances warrant. Steniel further explains that because the offer to Chinatrust was merely exploratory, it was not disclosed to the PSE since it did not constitute a perfected agreement. About Steniel Manufacturing Steniel Manufacturing Corporation -- http://www.steniel.com/-- was incorporated in 1963 primarily to engage in manufacturing, processing, and selling all kinds of paper products, paper board and corrugated carton containers, and all other allied products and processes. The Company and its subsidiaries have established a strong foothold in the packaging industry by offering a broad line of packaging products from corrugated carton boxes to paper, plastic containers, and flexible packaging. STN stands as the single largest independent manufacturer of corrugated fibreboard containers in the Philippines. About 99% of its revenues come from the corrugated packaging business while the remaining 1% is from rigid plastics. On October 30, 2000, Metro Pacific Corporation and Philippine International Paper Corporation entered into a Sale and Purchase Agreement with Steniel (Netherlands) Holdings B.V. whereby all the 636,193,025 common shares collectively owned by MPC and PIPC representing approximately 72.6% of the issued and outstanding capital stock of the company were sold to Steniel (Netherlands) in accordance with the terms and conditions provided for in the SPA. * * * Steniel Manufacturing did not meet its maturing obligations due as of December 31, 2005, to certain lender banks. Management has submitted its proposed plans and programs for the repayment of the loans, which include, among others, the disposal of idle assets of subsidiary companies, proceeds of which will be used to pay off the loans, and extension of the repayment term of the loans. * ING Bank Expects 2006 Inflation to Hit 6.5% --------------------------------------------- ING Bank has cut its inflation forecast for the Philippines on continued easing of oil prices, Malaya reports. Malaya relates that in its latest outlook for the country, ING said the Bangko Sentral ng Pilipinas may cut its rates sooner than expected as inflation sustains its downtrend. According to the paper, ING expects inflation to hit 6.5% for 2006, which is lower than the BSP's forecast of 6.9%-7%. For 2007, ING cut its forecast to 4.7% from 5% on "softer crude prices," the paper adds, noting that the BSP is expecting a 4.3%-4.8% average in 2007, within its 4%-5% target. ING said the drop in inflation hikes the chance of the central bank "easing sooner than our December expectation," Malaya relates. "The likelihood of monetary easing rises further if external interest rate environment becomes more favorable," ING further said. Malaya notes that ING expects the U.S. Fed to cut its policy rate by 25 basis points before the year ends. But ING said the peso will continue to remain strong despite a rate cut because of inflows. "The threat of a significant rate cut on the peso would be partially offset with the onset of the seasonally high OFW remittance inflows. These inflows would likely match a gradual reversal of portfolio inflows," Malaya cites ING, as saying. * * * "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: Settlement Amount For Mich. Plant Violations Pending -------------------------------------------------------------- AAR Corp. and its subsidiary, AAR Manufacturing Inc., are waiting for the Michigan Department of Environmental Quality to finalize a settlement amount in settlement of violations at the subsidiary's Cadillac, Michigan, plant. AAR Manufacturing earlier received an "Administrative Order for Response Activity," dated August 7, 2003, from the MDEQ relating to environmental conditions at the Cadillac plant. The order requires AAR Manufacturing to perform environmental investigatory work, prepare a feasibility study and a remedial action plan, and perform interim response actions. A letter dated June 14, 2002 from the MDEQ further demands payment of its environmental response costs of US$525,000 plus interest, and reimbursement of its future unspecified costs. The order and the letter accompanying it threaten the imposition of civil fines up to US$25,000 for each day of violation, plus exemplary damages up to three times the costs incurred by the MDEQ if the subsidiary does not comply with the order. On March 31, 2005, the MDEQ field a complaint in Cadillac, Michigan with the Wexford County Circuit Court. The case, styled "Michigan Department of Environmental Quality v. AAR Cadillac Manufacturing, a division of AAR Manufacturing Group, Inc., an Illinois corporation, and AAR Corp., a Delaware corporation, File No. 05-18853-CE," sought to enforce the order against the subsidiary and to have the Court impose civil fines andexemplary damages on the subsidiary for the alleged failure to comply with the order. The MDEQ sought: -- To recover US$2,200,000 in costs incurred in performing response activities from both AAR Manufacturing and the Company; -- A declaratory judgment that the Company and AAR Manufacturing are liable for all future costs incurred by the State at the facility; and -- Civil fines from AAR Manufacturing for alleged violations of a particular section of a Michigan environmental law. On June 17, 2005, AAR Manufacturing also sought reimbursement of its costs for US$200,000 incurred in complying with the order from the State cleanup and redevelopment fund established under Michigan law, plus costs and attorney fees. As of May 31, 2006, the subsidiary has charged to operations about US$1,275,000 related to this matter. On Jan. 31, 2006, the MDEQ issued a letter of violation to AAR Manufacturing for allegedly failing to timely complete testing of capture and destruction efficiency of emissions at the Cadillac plant. AAR Manufacturing later negotiated a proposed administrative consent order with the MDEQ Air Quality Division to resolve the matter. AAR Manufacturing and the MDEQ subsequently obtained additional testing data indicating possible additional violations. Because of that newly discovered additional data, the MDEQ withdrew the proposed administrative consent order. Meanwhile, the MDEQ has stated that it will demand a larger settlement amount from AAR Manufacturing compared to the US$15,000 under the proposed administrative consent order. However, it has not yet specified how much larger that amount will be. 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. * * * Standard & Poor's Ratings Services assigned its 'BB-' rating to AAR Corp.'s 1.75% US$125 million convertible senior notes due 2026 sold via SEC Rule 144A with registration rights. At the same time, Standard & Poor's affirmed its ratings, including the 'BB-' corporate credit rating, assigned effective June 16, 2003, on the aviation support services provider. S&P said the rating outlook is stable. ADVANCED MICRO: Planned ATI Merger Gets Clearance in Taiwan ----------------------------------------------------------- Advanced Micro Devices, Inc., and ATI Technologies Inc., disclosed that the Fair Trade Commission of Taiwan has cleared the proposed acquisition of ATI by AMD. The proposed acquisition, announced on July 24, 2006, still remains subject to the approval of ATI shareholders, court approval of the plan of arrangement, approval by the Minister of Industry under the Investment Canada Act and other customary closing conditions. Subject to satisfaction or waiver of these conditions, the transaction is expected to be completed prior to the end of October 2006. About ATI ATI Technologies Inc. designs and manufactures 3D graphics, PC platform technologies and digital media silicon solutions. With fiscal 2005 revenues of US$2.2 billion, ATI has approximately 4,000 employees in the Americas, Europe and Asia. About AMD Headquartered in Sunnyvale, California, Advanced Micro Devices, Inc. -- http://www.amd.com/-- designs and manufactures microprocessors and other semiconductor products. The company has a facility in Singapore. It has sales offices in Belgium, France, Germany, the United Kingdom, Mexico and Brazil. Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on Sunnyvale, California-based Advanced Micro Devices Inc. Standard & Poor's removed the rating from CreditWatch negative where it had been placed on July 24, 2006, following the announced acquisition of unrated ATI Technologies Inc. The ratings outlook is negative. At the same time, the rating agency assigned its 'BB-' bank loan rating, one notch above the corporate credit rating, and a '1' recovery rating to the company's proposed US$2.5 billion senior secured term loan, to be used as partial funding of the acquisition. The Troubled Company Reporter - Asia Pacific reported that Standard & Poor's also raised its rating on the company's US$600 million (US$390 million outstanding) senior notes to 'B+' from 'B', because the company plans to withdraw its shelf registration which structurally subordinated the notes. Concurrent with the closing of the new bank loan and pursuant to a debt incurrence test in the indenture for the notes, the notes will become pari passu to the bank loan and the note rating will become 'BB-' with a '1' recovery rating. Moody's Investors Service assigned a Ba3 rating to Advanced Micro Device's US$2.5 billion senior secured bank facility while confirming the Ba3 corporate family rating and Ba3 rating on the company's US$390 million senior notes due 2012. The ratings reflect both the overall probability of default of the company, to which Moody's assigns a PDR of Ba3, and a loss given default of LGD3 for both the new bank facility and the US$390 million senior notes both of which will share the same collateral and security package. The rating outlook is stable. SERENA SOFTWARE: Moody's Assigns Loss-Given-Default Rating ---------------------------------------------------------- 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. Technology Software sectors this week, the rating agency confirmed its B2 Corporate Family Rating for Serena Software, Inc. Additionally, Moody's revised or held 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$75 Million Senior Secured Revolving Credit Facility due 2012 B1 B1 LGD3 33% US$400 Million Senior Secured First Lien due 2013 B1 B1 LGD3 33% US$200 Million Senior Subordinated Note due 2016 Caa1 Caa1 LGD5 87% 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%). Headquartered in San Mateo, California, Serena Software, Inc. -- http://www.serena.com/-- is a software provider focused solely on the design, development, marketing and support of software used to manage and control change in organizations. The company has its international headquarters in Singapore, and the United Kingdom. SYNIVERSE TECHNOLOGIES: Moody's Assigns Loss-Given-Default Rtg. --------------------------------------------------------------- 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. Technology Software sectors this week, the rating agency confirmed its Ba3 Corporate Family Rating for Syniverse Technologies, Inc. Additionally, Moody's revised or held 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$42 Million Senior Secured Revolving Credit Facility due 2011 Ba3 Ba1 LGD2 24% US$240 Million Senior Secured First Lien Ba3 Ba1 LGD2 24% US$175 Million Senior Subordinated Note due 2013 B2 B1 LGD5 80% 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 Tampa, Florida, Syniverse Technologies, Inc. -- http://www.syniverse.com/-- provides technology outsourcing to wireless telecommunications carriers. The company has its international offices in the Netherlands, China, Japan and Singapore, among others. TARGUS GROUP: S&P Affirms 'B' Corporate Credit Rating ----------------------------------------------------- Standard & Poor's Ratings Services revised its rating outlook on laptop case and computer accessory provider Targus Group International Inc. to negative from stable. Ratings on the company, including the 'B' corporate credit rating, were affirmed. As of June 30, 2006, Anaheim, California-based Targus Group had about US$290.2 million of total debt outstanding, which excludes pay-in-kind notes and operating lease obligations. "The revised outlook reflects weaker-than-expected profitability and free cash flow resulting from challenging operating conditions, including an unfavorable working capital environment and higher commodity and fuel costs, in addition to a less favorable product mix -- all of which have contributed to a decline in credit protection measures," explained Standard & Poor's credit analyst Mark Salierno. The 'B' rating on the company reflects Targus' highly leveraged pro forma capital structure. It also reflects: * the highly competitive operating environment and price- sensitive nature of the laptop computer case and accessory business; * technology risk within the accessories product line; * some customer concentration across the three distribution channels; and * vulnerability to weak economic and retail environments. These risks are somewhat mitigated by the company's leading market share in laptop cases and certain computer accessories, existing customer relationships, and favorable trends relating to growth in laptop sales. Targus has operations in the Asia Pacific, specifically in Australia & New Zealand, China, Hong Kong, Japan, Korea, and Singapore. TELCORDIA TECHNOLOGIES: Moody's Assigns Loss-Given-Default Rtg. --------------------------------------------------------------- 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. Technology Software sectors this week, the rating agency confirmed its B1 Corporate Family Rating for Telcordia Technologies, Inc. Additionally, Moody's revised or held 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$100 Million Senior Secured Revolving Credit Facility due 2011 B1 Ba3 LGD3 31% US$570 Million Senior Secured First Lien due 2012 B1 Ba3 LGD3 31% US$300 Million Senior Subordinated Notes due 2013 B3 B3 LGD5 86% 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%). Headquartered in Piscataway, New Jersey, Telcordia Technologies, Inc. -- http://www.telcordia.com/-- provides operations systems support software and network systems products for telecommunications providers. The company has sales offices in Singapore, Mexico, Brazil, and the United Kingdom, among others. =============== T H A I L A N D =============== KASIKORN BANK: Expects Drop in Bad Loans by Year End ---------------------------------------------------- Kasikornbank expect its non-performing loan ratio to fall to 6% or down to THB40 billion by the end of this year, The Bangkok Post reports, citing the bank's president, Prasarn Trairatvorakul. "New-entry NPLs are rising due to high oil prices and business activities dropping," Mr. Prasarn said, adding that they will pull it down. Kasikorn's NPL ratio was 6.7% at the end of June 2006, down from 6.89% at the end of March, The Post notes. The paper also recounts that Mr. Prasarn said last month that the improved lending in the third quarter should make full-year targets achievable after a weak first half during the long political crisis. The bank aimed for loan growth of 6% to 9% this year, he added. Kasikorn Bank Public Company Limited -- http://www.kasikornbank.com/-- otherwise known as the Thai Farmers Bank, was established in 1945 with registered capital of THB5 million and has been listed on the Stock Exchange of Thailand since 1976. It is Thailand's fourth largest bank, with total assets of THB844 billion (US$22 billion) as at end June 2006. The bank currently carries Moody's Bank financial strength rating of D+. Fitch Ratings Services placed on September 19, 2006, the ratings of Kasikorn on Rating Watch Negative pending a resolution of the political crisis that triggered the coup in Thailand. Ratings affected are: * Long-term foreign currency IDR BBB+; * Short-term foreign currency F2; * Individual C; * Support 2; and * Subordinated debt BBB KRUNG THAI: Former Head to Receive Verdict Next Month ----------------------------------------------------- The Administrative Court of Thailand will deliver its verdict regarding the high-profile dispute between Krung Thai Bank's former president, Viroj Nualkhair, and the Bank of Thailand on November 29, 2006, The Bangkok Post reports. In October 2004, The Post recounts, the central bank blacklisted Mr. Viroj from working at any local financial institutions or listed companies due to allegations of improper lending. The order, according to The Nation, came after Mr. Viroj and other KTB executives were implicated in unscrupulous lending of THB9.9 billion to a number of companies whose ability to repay was low. The criminal case, involving loans to property developer Krisdamahanakorn and auto manufacturer, Thonburi Assembly, remains pending with the National Counter Corruption Commission. Subsequently, Mr. Viroj then filed a lawsuit seeking damages of THB201 million against the central bank and then-governor M.R. Pridiyathorn Devakula, charging them with abuse of authority. However, in a court reading held on October 11, 2006, Court Justice Prasak Siripanich said that the central bank's blacklist should be voided as a violation of Mr. Viroj's personal rights. Justice Prasak also said the court would not rule on Mr. Viroj's claim that the Bank of Thailand must pay him compensation of about THB200 million by saying that KTB was the one who caused the damage and not the central bank. Justice Prasak, however, explains that under Administrative Court rules, the court reading is a procedural motion that does not necessarily indicate the verdict. Asked by reporters, Mr. Viroj said that over the past two years, the central bank's order had cost him income of THB7 million a month. "I have been unemployed and reluctant to meet people. Still, I'm confident I will receive justice," Mr. Viroj said, adding that he would not appeal if the ruling on November 29 went against him. "At 59, I'm tired," he said. Krung Thai Bank Public Company Limited -- http://www.ktb.co.th/ -- began its operation on March 14, 1966, through the merger of business between the Agricultural Bank Limited and the Provincial Bank Limited with the Ministry of Finance as its major shareholder. The Bank provides financial assistance to large and small business, it also renders financial assistance to other state enterprises, both business-oriented and public utility types. Currently the bank is operating 511 domestic and 12 foreign branches and representative offices. Fitch Ratings, on September 12, 2006, affirmed the individual C/D rating of Krung Thai Bank Public Company Limited. The bank currently carries Moody's Investors Service's bank financial strength rating of D. TANAYONG PCL: Issues 4.2 Billion Shares for Capital Increase ------------------------------------------------------------ Tanayong Pcl informed the Stock Exchange of Thailand on Oct. 10, 2006, regarding its capital increase proceedings as part of its rehabilitation program. The company issued 4.8 billion new shares where 4.27 billion of them were sold. Each share was priced at THB0.50 and sold mainly to Crossventure Holdings and K2J Holding. The rest were allocated to 43 creditors through a debt-to-equity swap scheme as part of the company's business rehabilitation plan. Tanayong expects to gain THB2.1 billion in the share sale where the proceeds will be used to pay off the company's debts within the next 60 days. As a result of the capital increase activities, Keeree Kanjanapas, executive chairman of Tanayong Plc, and his partners directly and indirectly now hold a 38% stake in the property development company. The company's existing shareholders' ownership in the company was diluted to 10% and Mr. Keeree's direct stake in the firm he founded was reduced to a mere 0.75% after the share allocation. Headquartered in Bangkok, Thailand, Tanayong Public Company Limited -- http://www.tanayong.co.th/-- manages, develops and invests in property for both residential and commercial purposes; investment in various infrastructure projects such as investment in Electric Train Bangkok Mass Transit System; ownership and operation of hotels, apartments, restaurants and clubs; and provision of financial services and investment holding. The Company had been listed under the Rehabco sector -- Companies under rehabilitation -- until July 3, 2006, when the Thailand Stock Exchange reclassified the whole sector. Currently, SET categorized the Company under the "non-performing group." Companies under the group will retain their listing status and will be obligated to comply with certain SET requirements. As reported in the Troubled Company Reporter - Asia Pacific on October 6, 2006, Tanayong has total assets of US$178.27 million and total shareholders' equity deficit of US$734.30 million. * Large Companies With Insolvent Balance Sheets ----------------------------------------------- Total Total Shareholders Assets Equity Company Ticker ($MM) ($MM) ------ ------ ------ ------------ AUSTRALIA Acma Engineering & Const. Group Limited ACX 21.39 -2.24 Allstate Explorations NL ALX 12.65 -51.62 Austar United Communications Ltd. AUN 231.54 -52.58 Global Wine Ventures Limited GWV 22.04 -0.84 Hutchison Telecommunications (Aust) Ltd. HTA 1696.65 -786.31 Indophil Resources NL IRN 37.79 -69.96 Intellect Holdings Limited IHG 23.98 -11.13 KH Foods Ltd KHF 62.30 -1.71 Namberry Limited NMB 15.12 -4.26 Orbital Corporation Limited OEC 14.01 -4.86 RMG Limited RMG 22.33 -2.16 Stadium Australia Group SAX 135.23 -41.84 Tooth & Company Limited TTH 99.25 -74.39 Tourism, Hotels & Leisure Ltd. TLC 15.76 -0.66 CHINA AND HONG KONG Artel Solutions Group Holdings Limited 931 29.19 -18.65 Asia Telemedia Limited 376 10.89 -5.50 Anhui Feicai Vehicle Co. Ltd. 887 129.80 -7.00 Bestway International 718 25.00 -0.67 Chang Ling Group 561 77.48 -76.83 Chengdu Book - A 600083 21.50 -3.07 China Liaoning International Cooperation Holdings Ltd. 638 25.79 -43.45 China Kejian Co. Ltd. 35 54.71 -179.23 Datasys Technology Holdings 8057 14.10 -2.07 Eforce Holdings Limited 943 10.31 -0.51 Everpride Biopharmaceutical Company Limited 8019 10.16 -2.16 Fujian Changyuan Investment Holdings Limited 592 31.36 -54.04 Gold-Face Holdings Limited 396 40.60 -63.11 Guangdong Meiya Group Company Ltd. 529 107.16 -49.54 Guangdong Sunrise Group Company Ltd-A 30 35.98 -182.94 Guangdong Sunrise Group Co. Ltd-B 200030 35.98 -182.94 Guangxi Wuzhou Zhongheng Group Co Ltd. 557 62.19 -115.50 Hainan Dadonghai Tourism 613 19.74 -5.81 Hainan Dadongh-A 200613 19.74 -5.81 Hainan Overseas Chinese Investment Co. Ltd. 600759 32.70 -15.28 Hans Energy Company Limited 554 94.75 -10.76 Heilong Jiang Long Di Co. Ltd. 832 134.62 -61.22 Heilongjiang Sun & Field Science & Tech. 620 29.96 -49.18 Heilongjiang Black Dragon Co. Ltd. 600187 121.30 -74.45 Hualing Holdings Limited 382 242.26 -28.15 Huda Technology & Education Development Co. Ltd. 600892 17.29 -0.19 Hunan Anplas Co., Ltd. 156 94.17 -65.04 Hunan GuoGuang Ceramic Co., Ltd. 600286 87.44 -68.55 Innovo Leisure Recreation Holdings Ltd. 703 13.68 -2.01 Jiangsu Chinese.com Co. Ltd. 805 15.86 -34.56 Jiangxi Paper Industry Co. Ltd 600053 19.58 -12.80 Loulan Holdings Limited 8039 13.01 -1.04 Magnum International Holdings Limited 305 10.35 -5.83 Mindong Electric Group Co., Ltd. 536 21.63 -1.50 New City (Beijing) Development Limited 456 151.61 -19.15 New World Mobile Holdings Ltd 862 215.47 -126.57 Orient Power Holdings Ltd. 615 176.86 -64.20 Plus Holdings Ltd 1013 24.00 -3.15 Prosperity International Holdings (HK) Limited 8139 10.73 -2.45 Shandong Jintai Group Co. Ltd. 600385 19.58 -12.18 Shanghai Xingye Housing Company Ltd 600603 14.90 -72.98 Shenyang Hejin Holding Company Ltd. 633 83.18 -20.87 Shenz China Bi-A 17 39.13 -224.64 Shenz China Bi-B 17 39.13 -224.64 Shenzhen Dawncom Business Tech And Service Co., Ltd 863 79.84 -37.30 Shenzhen Shenxin Taifeng Group Co. Ltd. 34 95.27 -44.65 Shenzen Techo Telecom Co., Ltd. 555 14.84 -6.25 Sichuan Changjiang Packaging Holding Co. Ltd. 600137 13.11 -72.76 Sichuan Topsoft Investment Company Limited 583 113.12 -148.61 SMI Publishing Group Ltd. 8010 10.48 -7.83 Songliao Automobile Co. Ltd. 600715 49.56 -3.76 Sun's Group Manufacturing Company Limited 988 103.02 -72.80 Taiyuan Tianlong Group Co. Ltd 600234 13.47 -87.63 Theme International Holdings Limited 990 22.46 -0.77 UDL Holdings Limited 620 12.48 -7.15 Wealthmark International (Holdings) Limited 39 11.32 -2.43 Winowner Group Co. Ltd. 600681 38.03 -62.88 Xinjiang Hops Co. Ltd 600090 101.34 -135.99 Yantai Hualian Development Group Co. Ltd. 600766 59.99 -7.66 Yueyang Hengli Air-Cooling Equipment Inc. 622 49.89 -17.71 Zarva Technology Co. Ltd. 688 101.76 -102.01 INDIA PT Dharmala Intiland DILD 197.91 -6.62 INDONESIA Ades Waters Indonesia Tbk ADES 21.35 -8.93 Bukaka Teknik Utama Tbk BUKK 44.45 -107.00 Hotel Sahid Jaya SHID 71.05 -4.26 Jakarta Kyoei Ste JKSW 44.72 -38.57 Mulialand Tbk MLND 160.45 -19.82 Multibreeder Adirama Indonesia MBAI 64.54 -2.31 Pakuwon Jati Tbk PWON 188.41 -50.78 Panca Wiratama Sakti Tbk PWSI 39.72 -18.82 PT Toba Pulp Lestrari Tbk INRU 403.58 -198.86 PT Voksel Electric Tbk VOKS 44.01 -11.74 PT Wicaksana Overseas International Tbk WICO 84.36 -32.88 Sekar Bumi Tbk SKBM 23.07 -41.95 Steady Safe Tbk SAFE 19.65 -2.43 Suba Indah Tbk SUBA 85.17 -9.18 Surya Dumai Industri Tbk SUDI 105.06 -30.49 Unitex Tbk UNTX 29.08 -5.87 JAPAN Hanaten Co., Ltd. 9870 167.79 -1.63 Mamiya-OP Co., Ltd. 7991 152.37 -67.11 Montecarlo Co. Ltd. 7569 66.29 -3.05 Nihon Seimitsu Sokki Co., Ltd. 7771 23.82 -1.10 Sumiya Co., Ltd. 9939 89.32 -11.57 Tenryu Lumber Co., Ltd. 7904 187.75 -44.48 Tokai Aluminum Foil Co., Ltd. 5756 106.49 -12.55 Yakinikuya Sakai Co., Ltd. 7622 79.44 -11.14 MALAYSIA Antah Holdings Bhd ANT 184.65 -98.29 Ark Resources Berhad ARK 25.91 -28.35 CHG Industries Bhd CHG 25.95 -41.38 Cygal Bhd CYG 58.47 -69.79 Comsa Farms Bhd CFB 63.60 -5.00 Consolidated Farms Berhad CFARM 36.32 -17.21 Emico Holdings Bhd EMI 42.56 -1.92 Jin Lin Wood Industries Berhad JLW 21.68 -1.74 Kig Glass Industrial Berhad KIG 15.76 -24.61 Lankhorst Bhd LKHT 25.91 -28.35 Mentiga Corporation Berhad MENT 22.13 -18.25 Metroplex Bhd MEX 323.51 -49.28 Mycom Bhd MYC 227.68 -114.64 Lityan Holdings Bhd LIT 22.22 -19.11 Olympia Industries Bhd OLYM 255.84 -227.85 Pan Malay Industries PMRI 199.08 -6.30 Panglobal Bhd PGL 189.92 -50.36 Park May Bhd PMY 11.04 -13.58 PSC Industries Bhd PSC 62.80 -116.18 Polymate Holdings Bhd PYMT 64.73 -7.28 Setegap Berhad STG 19.92 -26.88 Tru-Tech Holdings Berhad TRU 15.86 -16.71 Wembley Industries Holdings Bhd WMY 111.72 -204.61 PHILIPPINES APC Group Inc. APC 67.04 -163.14 Atlas Consolidated Mining and Development Corp. AT 33.59 -57.17 Cyber Bay Corporation CYBR 11.54 -58.06 East Asia Power Resources Corp. PWR 92.55 -64.61 Fil-Estate Corporation FC 33.30 -5.80 Filsyn Corporation FYN 19.20 -8.83 Filsyn Corporation FYNB 19.20 -8.83 Global Equities Inc. GEI 24.18 -1.81 Gotesco Land, Inc. GO 17.34 -9.59 Gotesco Land, Inc. GOB 17.34 -9.59 Prime Media Holdings Inc. PRIM 11.12 -15.52 Prime Orion Philippines Inc. POPI 98.36 -74.34 Swift Foods Inc. SFI 26.95 -8.23 Unioil Resources & Holdings Company Inc. UNI 10.64 -9.86 United Paragon Mining Corp. UPM 21.19 -21.52 Universal Rightfield Property Holdings Inc. UP 45.12 -13.48 Uniwide Holdings Inc. UW 61.45 -30.31 Victorias Milling Company Inc. VMC 127.83 -32.21 Vitarich Corporation VITA 75.04 -4.27 SINGAPORE China Aviation Oil (Singapore) Corporation CAO 211.96 -390.07 Compact Metal Industries Ltd. CMI 54.36 -25.64 Digiland Intl. DIGI 31.32 -11.94 Falmac Limited FAL 10.90 -0.73 Gul Technologies Singapore Limited GUL 152.80 -27.74 Informatics Holdings Ltd INFO 22.30 -9.14 L&M Group of Companies LNM 56.91 -10.59 Liang Huat Aluminium Ltd. LHA 19.30 -76.43 Lindeteves-Jacoberg Limited LJ 225.52 -53.23 LKN-Primefield Limited LKN 150.70 -12.72 Mae Engineering Ltd MAE 11.42 -7.79 PDC Corporation Limited PDC 0.72 -12.07 Pacific Century Regional PAC 1381.26 -107.11 See Hup Seng Ltd. SHS 17.36 -0.09 SOUTH KOREA BHK Inc 3990 24.36 -17.38 C & C Enterprise Co. Ltd. 38420 28.05 -14.50 Cenicone Co. Ltd. 56060 36.82 -1.46 Cheil Entech Co. Ltd. 53330 37.25 -0.31 Dewell Elecom Inc. 32590 10.93 -6.92 Everex Inc. 47600 23.15 -5.10 EG Greentech Co. 55250 186.00 -1.50 EG Semicon Co. Ltd. 38720 166.70 -12.34 Inno Metal Inc. 70080 25.61 1.41 KP&L Company Limited 9810 15.03 -3.81 Radix Co. Ltd. 16160 53.78 -17.69 Quality & Tech 15260 32.33 -1.14 Shinil Industrial Co., Ltd. 2700 41.51 -3.44 SungKwang Co., Ltd. 41140 19.06 -1.60 Tong Yang Major 1520 2332.81 -86.95 TriGem Computer Inc 14900 629.32 -292.96 THAILAND Bangkok Rubber PCL BRC 70.19 -56.98 Central Paper Industry PCL CPICO 40.41 -37.02 Circuit Electronic Industries PCL CIRKIT 20.37 -64.80 Circuit Electronic Daidomon Group Pcl DAIDO 12.92 -8.51 Datamat PCL DTM 17.55 -1.72 Diana Department Store Pcl DIANA 12.71 -1.71 Everland Public Company Ltd EVER 56.71 -311.47 Hantex PCl HTX 7.51 -7.88 Kuang Pei San Food Products Public Co. POMPUI 12.51 -9.87 Sahamitr Pressure Container Public Co. Ltd. SMPC 20.77 -28.13 Sri Thai Food & Beverage Public Company Ltd SRI 18.29 -43.37 Tanayong PCL TYONG 178.27 -734.30 Thai-Denmark PCL DMARK 21.37 -18.88 Thai-Wah PCL TWC 91.56 -41.24 ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Asia Pacific is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. 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 ***