/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/061018.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 Wednesday, October 18, 2006, Vol. 9, No. 207 Headlines A U S T R A L I A ANA ENTERPRISES: Prepares to Declare Dividend on October 19 ANN STREET: Creditors' Proofs of Debt Due on October 17 AWB LIMITED: Nationals Conference Supports Single Desk System BALONGA CONSTRUCTIONS: Liquidators to Present Wind-Up Report CHELTA CONSTRUCTIONS: Prepares to Close Operations COFORDO 249: Members to Hear Wind-Up Report on October 23 EASTBOURNE HOLDINGS: Members to Meet on October 23 EASTBOURNE PTY: Members to Hear Wind-Up Details on October 23 EZI AUTOMATION: To Declare First Interim Dividend on November 24 FRISCO FURNITURE: Enters Voluntary Liquidation G. TRUSCOTT: Undergoes Voluntary Liquidation G.D. KELLY: Creditors Must Prove Debts by October 18 GEB HOLDINGS: Liquidator to Present Report on October 24 GUNBAR PASTORAL: Members' Final Meeting Set on October 23 IT OBJECTIVES: Shuts Down Business Operations IVYCROSS INVESTMENTS: Final Meeting Slated for October 23 LQ20 (EAA): Will Declare Final Dividend on October 19 MAXWELL CORNISH: Members' Final Meeting Scheduled on Oct. 24 MULTIPLEX GROUP: Says Discussions on Wembley Project Progressing NORTH-SOUTH MARKETING: Members to Receive Wind-Up Report PAISLEY ROBERTSON: Members Resolve to Wind Up Business RIVET GROUP: Members Opt for Voluntary Wind-Up RURAL PROFILE: Schedules Final General Meeting on October 23 RW NADER: Creditors' Proofs of Claim Due on October 18 SHELF RETAIL: To Declare First Interim Dividend SINGLETON ACCOUNTING: Court Issues Wind-Up Order SWINBURNE UNIVERSITY: To Declare Final Dividend on October 18 VALLEN RETAIL: Enters Voluntary Wind-Up Process W.C. ELDRIDGE: Members Opt to Shut Down Operations W KELLETT & SONS: Members Resolve to Wind Up Firm WATERCOURSE PLUMBING: Inability to Pay Debt Prompts Wind-Up WESTERN GRAINS: Bank Appoints Receivers and Managers WESTERN GRAINS TRANSPORT: Taps Receivers and Managers C H I N A & H O N G K O N G ASIA TIME: Court Appoints Joint Liquidators BEAUTIFUL MIND: Court Names Arboit and Blade as Liquidators CHIEF RICH: Court to Hear Liquidation Petition on November 29 CHINA HARMONY: Court to Hear Wind-Up Petition on November 22 CHINA SOUTHERN: Buys Six Planes from Boeing for Freighter Fleet COVANTA ENERGY: Moody's Confirms Ba3 Corporate Family Rating CRYSTALTRACE TECHNOLOGY: Members to Hear Wind-Up Report DIAMOND TECHNOLOGY: Creditors to Prove Debts on October 27 DUNHUANG (CHINA): To Pay First Ordinary Dividend on October 18 GEORGIA GULF: Completes Acquisition of Royal Group GROUP LEADER: Final Members' Meeting Set on November 13 JIANGXI COPPER: Third Quarter Profit Tops at CNY1.5 Billion LINK GARMENT: Cheung Yuk Cheung Ceased to Act as Liquidator MAPICS HONG KONG: Members' Final Meeting Set on November 16 NOBLE GROUP: S&P Affirms Long Term Corp. Credit Rating at BB+ OCEAN PETROLEUM: Creditors and Contributories to Hold Meeting PWC CONSULTING: Creditors' Proofs of Claim Due on November 3 STRONG BASE: Faces Wind-Up Proceedings SWIFT & COMPANY: Moody's Confirms B2 Corporate Family Rating TARGET REALTY: Wind-Up Petition Hearing Set on November 29 TAITUNG BANK: Taiwan Ratings Lowers Credit Rating to BB TERRELL LTD: Creditors Must Prove Debts by November 14 TIN SHING: Members to Receive Wind-Up Report on November 15 I N D I A CORPORATION BANK: BoD to Meet on Oct. 26 to Consider Financials ICICI BANK: Proposed U.S. Dollar Notes Get S&P's BB+ Rating NTPC LTD: To Consider Foray Into Equipment Manufacturing RELIANCE INDUSTRIES: Board to Consider 2ndQ Results on Oct. 19 STATE BANK OF INDIA: Invests US$3 Million in Bahrain Branch STATE BANK OF INDIA: Board Meeting Scheduled on Oct. 28 TATA MOTORS: Board of Directors to Hold Meeting on Oct. 30 TATA MOTORS: Reports Sales of 49,157 Vehicles in Sept. 2006 TATA POWER: Appoints Prasad Menon as Managing Director UNION BANK OF INDIA: Names Sreenivasan as Non-Official Director UNION BANK OF INDIA: INR10-Bil. Tier II Bonds Get's CRISIL's AA+ I N D O N E S I A FREEPORT-MCMORAN: Moody's Assigns Loss-Given-Default Rating GOODYEAR TIRE: Moody's Changes Rating Outlook to Negative HILTON HOTELS: Moody's Assigns Loss-Given-Default Rating NUTRO PRODUCTS: Moody's Assigns Loss-Given-Default Ratings J A P A N ALIXPARTNERS LLP: Completes Leveraged Recapitalization BANK OF FUKUOKA: Moody's Affirms D+ Bank Fin'l Strength Rating BANK OF FUKUOKA: Fitch Affirms 'C' Individual Rating RAMBUS INC: Appoints David Shrigley as Independent Director SHINWA BANK: Fitch Affirms 'E' Individual Rating TIMKEN CO: Plans to Exit Seamless Steel Tube Manufacturing in UK K O R E A BURGER KING: Moody's Assigns Loss-Given-Default Rating KOOKMIN BANK: To Hold 2006 3rd Quarter Conference on Oct. 30 * Korean Economy Estimated to Grow 4.3% in 2007 M A L A Y S I A LITYAN HOLDINGS: High Court Grants 90-day Restraining Order PARACORP BERHAD: Subsidiaries Ink Sale and Purchase Agreements PAXELENT CORPORATION: Served with a Notice to Pay Judgment Sum TENAGA NASIONAL: Won't Sell Coal Unit to Interested Buyers N E W Z E A L A N D AIR NEW ZEALAND: Selects Swissport as Preferred Bidder AIR NEW ZEALAND: Unions to Fight Swissport Outsourcing Proposal ADVANCE INTERIORS: Liquidation Petition Hearing Set on Nov. 6 BEN LOMOND: Creditors' Proofs of Claim Due on November 6 CAM-TRANZ CAMBRIDGE: Appoints Joint Liquidators CENTRAL EQUIPMENT: Names Joint Liquidators GENEVA FINANCE: Increases Profit from NZ$2.2 Mln to NZ$3.8 Mln HAMILTON TIMBER: Names Parsons and Kenealy as Liquidators MAINLAND FARMS: Court Sets Liquidation Hearing on October 30 MGAF FERTILISER: Court to Hear Liquidation Petition on Oct. 27 PROSPOUT LTD: Creditors Must Submit Proofs of Debt by Nov. 2 SCRAPPYDOO METAL: Liquidation Petition Hearing Set for Oct. 20 WORLD FIRST: Court to Hear Liquidation Petition on October 30 P H I L I P P I N E S APEX MINING: Appeals MGB's Ruling in Favor of North Davao Mining APEX MINING: Board Authorizes Counsel to File Action with SSC LEPANTO CONSOLIDATED: SGV Appointed as New External Auditor MANILA ELECTRIC: President Arroyo Orders Internal Review of WESM METROPOLITAN BANK: Receives Neutral Rating from Macquarie RIZAL COMMERCIAL BANKING: Kicks Off Roadshows for Hybrid Issue VULCAN INDUSTRIAL: Posts PHP72.75 Mln Deficit as of June 30 VULCAN INDUSTRIAL: Signs Phelps & TVI Confidentiality Agreements * Philippines will be Off IMF Monitoring in April 2007 * President Arroyo Welcomes Possible Rating Upgrade from Moody's S I N G A P O R E AAR CORP: S&P Upgrades Corporate Credit Rating to BB from BB- CHEERS HOLDINGS: Creditors' Proofs of Debt Due on November 6 CONVENIENCE SHOPPER: Creditors Must Prove Debts by November 6 HEXION SPECIALTY: Loan Refunding Prompts Moody's to Hold Ratings LEUN WAH: Will Pay Dividend to Preferential Creditors on Oct. 27 LIANG HUAT: Inks Variation Deed in the Investment Agreement LINDETEVES-JACOBERG: Files OIS with Monetary Authority PERSATUAN KEBAJIKAN: Proofs of Debt Due on October 20 PETROBRAS INT'L: Fitch Rates US$500MM Sr. Notes Due 2016 at BB+ SEE HUP SENG: Issues and Allots Ordinary Shares to Creditors SEE HUP SENG: Unveils Shareholders' Changes of Interest SHENGY TECHNOLOGY: Creditors Proofs of Debt Due on November 6 T H A I L A N D PICNIC CORP: SEC Continues to Investigate Illicit Deals * Upcoming Meetings, Conferences and Seminars - - - - - - - - ================= A U S T R A L I A ================= ANA ENTERPRISES: Prepares to Declare Dividend on October 19 ----------------------------------------------------------- Ana Enterprises Australia Pty Ltd, which is in liquidation, will declare a final dividend to creditors on October 19, 2006. Creditors who cannot prove their debts by October 17, 2006, will be excluded from sharing in the dividend distribution. The Joint and Several Liquidators can be reached at: David J. F. Lombe Peter G. Yates Deloitte Touche Tohmatsu Grosvenor Place, 225 George Street Sydney, New South Wales 2000 Australia Telephone:(02) 9322 7000 ANN STREET: Creditors' Proofs of Debt Due on October 17 ------------------------------------------------------- Liquidator Geoffrey Frank Totterdell requires creditors of Ann Street Mezzanine Pty Ltd to file their proofs of debt by October 17, 2006. Failure to prove claims will exclude a creditor from sharing in any distribution the company will make. The Liquidator can be reached at: Geoffrey Frank Totterdell Level 19, QV1 250 St George's Terrace, Perth Western Australia 6000 Australia AWB LIMITED: Nationals Conference Supports Single Desk System ------------------------------------------------------------- The Nationals conference has passed resolutions supporting Australia's monopoly wheat export system and urging the Federal Government not to review the single desk for four years, ABC News Online reports. A motion was passed to "admonish" any threat to the single desk, with another saying its power of veto over grain exports must be retained, the report says. ABC cites Victorian Nationals delegate, Russell McKenzie, as telling the conference that the single desk is a must for wheat growers, noting that "with the Cole inquiry, we must be careful to note that it isn't the single desk that's on trial here, it's the conduct of employees of the AWB." "The single desk has been subject to so many reviews over the years and passed every one of them," Mr. Mckenzie asserted. However, a Victorian delegate and GrainCorp director, Paul Grigg, argued that the single desk power of veto should be given to an independent authority to maximize returns to growers, ABC News relates. According to Mr. Grigg, the credibility of the National party is at stake if the retention of the veto with the current arrangement has support. Nationals Queensland president and federal MP, Bruce Scott, told the conference that Australia is in the grip of an extreme drought and should consider a wheat system similar to strategic oil reserves held by the United Sates, ABC relates. South Australian delegate Debbie Thiele spoke against the motion, saying "you're actually implying how AWB should carry-on its business, you have no right to do so." About AWB AWB Limited -- http://www.awb.com.au/-- is Australia's leading agribusiness and one of the world's largest wheat marketing companies. It is also one of Australia's top 100 publicly listed companies. The Company is the exclusive manager and marketer of all Australian bulk wheat exports through what is known as the Single Desk. The Company markets wheat, and a range of other grains, into more than 50 countries, with Australian wheat exports worth up to AU$5 billion per year. AWB's footprint includes more than 430 outlets through its subsidiary landmark and has offices across the world. The company employs more than 2,700 staff reaching over 100,000 customers. AWB is also one of the nation's largest suppliers of rural merchandise, distributors of fertilizer, marketers of livestock, brokers of rural real estate and handlers of wool. In late 2005, AWB was accused of knowingly paying AU$290 million in kickbacks to the Government of Iraq, under Saddam Hussein's administration, through the United Nation's oil-for-food program. A UN report then found out that AWB paid the kickbacks to a Jordanian trucking company linked to Hussein's deposed regime. The Australian Government then appointed a commission, headed by retired judge Terence Cole, to investigate into the Company's role in and the Government's alleged "knowledge" of the scandal. The "Cole Inquiry" is currently underway. The scandal is anticipated to create great political repercussions to the Australian Government, given the country's contribution to military action against President Hussein in the 2003 invasion of Iraq. In the Company's half-year report ended March 31, 2006, Brett Kallio, a partner at Ernst & Young, noted that there is inherent uncertainty surrounding the consolidated entity with regard to matters associated with the Cole Inquiry. As the findings of the Cole Inquiry have not yet been determined and reported, there is uncertainty as to the nature of these findings and the financial effect, if any, on the consolidated entity and its operations, Mr. Kallio stated. * * * The Troubled Company Reporter - Asia Pacific reported on July 12, 2006, that six American wheat farmers have launched a AU$1- billion class action against AWB in the United States, claiming its dealings in overseas markets damaged their own incomes. According to the TCR-AP report, more farmers are considering joining the class action. The TCR-AP also previously reported that Australian law firm Maurice Blackburn Cashman was considering a class action against AWB on behalf of shareholders who lost money in the wake of the Cole Inquiry. The Company's balance sheet as of March 31, 2006, reflected total assets of AU$5.7 billion and total liabilities of AU$4.54 billion, showing total equity of AU$1.16 billion. BALONGA CONSTRUCTIONS: Liquidators to Present Wind-Up Report ------------------------------------------------------------ Balonga Constructions Pty Ltd, which is in liquidation, will hold a final meeting for its members and creditors on October 23, 2006, at 9:30 a.m. At the meeting, Liquidators Robyn Erskine and Peter Goodin will report on the company's wind-up proceedings and property disposal exercises. The Joint and Several Liquidators can be reached at: Robyn Erskine Peter Goodin Brooke Bird & Co Chartered Accountants 471 Riversdale Road, Hawthorn East 3123 Australia Telephone:(03) 9882 6666 CHELTA CONSTRUCTIONS: Prepares to Close Operations -------------------------------------------------- At a general meeting of Chelta Constructions Pty Ltd held on October 6, 2006, the members resolved to voluntarily wind up the company's operations and distribute the proceeds of its assets disposal. The Joint and Several Liquidators can be reached at: Barrington Practice Accountants 4/7 Narabang Way Belrose, New South Wales 2085 Australia COFORDO 249: Members to Hear Wind-Up Report on October 23 --------------------------------------------------------- The members of Cofordo 249 Pty Ltd, which is in liquidation, will hold their final meeting on October 23, 2006, at 11:00 a.m. At the meeting, the members will receive the company's wind-up report and property disposal exercises from Liquidator Gerry Mier. The Liquidator can be reached at: Gerry Mier KPMG Level 13, Cairns Corporate Tower 15 Lake Street, Cairns Queensland 4870 Australia Telephone: 07 4046 8888 EASTBOURNE HOLDINGS: Members to Meet on October 23 -------------------------------------------------- A final meeting of the members of Eastbourne Holdings Pty Ltd will be held on October 23, 2006, at 10:30 a.m., to receive Liquidator McKenzie's account on the company's wind-up proceedings and property disposal exercises. As reported by the Troubled Company Reporter - Asia Pacific, the Company commenced a wind-up of its operations on February 10, 2006, due to its inability to pay debts. The Liquidator can be reached at: Donald Hugh McKenzie KPMG 33 George Street Launceston, Tasmania 7250 Australia Telephone:(03) 6337 3737 EASTBOURNE PTY: Members to Hear Wind-Up Details on October 23 ------------------------------------------------------------- Eastbourne Pty Ltd, which is in liquidation, will hold a final meeting for its members on October 23, 2006, at 10:00 a.m., to receive Liquidator McKenzie's accounts on how the company was wound up and how its property was disposed of. The Liquidator can be reached at: Donald Hugh McKenzie KPMG 33 George Street Launceston, Tasmania 7250 Australia Telephone:(03) 6337 3737 EZI AUTOMATION: To Declare First Interim Dividend on November 24 ---------------------------------------------------------------- EZI Automation (Australia) Pty Ltd, which is subject to a deed of company arrangement, will declare the first interim dividend to creditors on November 24, 2006. Those who were unable to prove their claims by October 17, 2006, are excluded from sharing in the distribution. The Deed Administrator can be reached at: B. R. Silvia Ferrier Hodgson GPO Box 4114 Sydney, New South Wales 2001 Australia Telephone:(02) 9286 9999 Facsimile:(02) 9286 9888 FRISCO FURNITURE: Enters Voluntary Liquidation ---------------------------------------------- At a general meeting held on October 5, 2006, the members of Frisco Furniture Pty Ltd resolved to voluntarily wind up the company's business operations. In this regard, W. B. Rangott was appointed as liquidator. The Liquidator can be reached at: W. B. Rangott Rangott Slaven Level 3, Engineering House 11 National Circuit, Barton ACT Australia G. TRUSCOTT: Undergoes Voluntary Liquidation -------------------------------------------- At a general meeting held on October 6, 2006, the shareholders of G. Truscott & Son Pty Ltd passed a special resolution to voluntarily wind up the company's business operations. Accordingly, Stuart Harvey Gow was appointed liquidator. The Liquidator can be reached at: Stuart Harvey Gow Certified Practising Accountant Level 11, 30 Clarence Street Sydney Australia G.D. KELLY: Creditors Must Prove Debts by October 18 ---------------------------------------------------- G.D. Kelly Pty Ltd, which is in liquidation, will declare its final dividend on October 19, 2006. Creditors who cannot prove their debts by October 18, 2006, will be excluded from sharing in the dividend distribution. The Joint and Several Liquidators can be reached at: E. M. Senatore Stephen Brennan Senatore Brennan Rashid Level 7, 28 University Avenue Canberra, ACT 2601 Australia Telephone:(02) 6214 6700 Facsimile:(02) 6214 6799 GEB HOLDINGS: Liquidator to Present Report on October 24 -------------------------------------------------------- GEB Holdings Pty Ltd, which is in liquidation, will hold a final meeting for its members and creditors on October 24, 2006, at 11:00 a.m. During the meeting, Liquidator C. P. White will present the report on the company's wind-up proceedings. The Liquidator can be reached at: C. P. White HLB Mann Judd Chartered Accountants Level 1, 160 Queen Street Melbourne Australia GUNBAR PASTORAL: Members' Final Meeting Set on October 23 --------------------------------------------------------- The members of Gunbar Pastoral Company Pty Ltd, which is in liquidation, will hold a final meeting on October 23, 2006, at 10:30 a.m. During the meeting, Liquidator T.M.S. Holden will present the accounts of the company's wind-up and property disposal activities. The Liquidator can be reached at: T. M. S. Holden INPACT McDonald Carter Level 6, 31 Queen Street Melbourne, Victoria 3000 Australia Telephone:(03) 8613 8888 Facsimile:(08) 8613 8800 IT OBJECTIVES: Shuts Down Business Operations --------------------------------------------- At a general meeting of IT Objectives Management Pty Ltd held on September 25, 2006, the shareholders resolved to voluntarily wind up the company's operations and appointed M. E. Slaven as liquidator. Subsequently, the appointment of Mr. Slaven was confirmed at the creditors' meeting held that same day. The Liquidator can be reached at: M. E. Slaven Rangott & Slaven Unit 2, Level 3, Engineering House 11 National Circuit, Barton ACT 2600 Australia Telephone:(02) 6285 1430 Facsimile:(02) 6281 1966 IVYCROSS INVESTMENTS: Final Meeting Slated for October 23 --------------------------------------------------------- The members and creditors of Ivycross Investments Pty Ltd will meet at a final meeting on October 23, 2006, at 11:00 a.m., to receive the account of the company's wind-up and property disposal from Liquidator C. M. Williamson. The Troubled Company Reporter - Asia Pacific reported that the Company declared the first and final preferential dividend for its creditors on July 11, 2006. The Liquidator can be reached at: Christopher Michael Williamson SimsPartners Chartered Accountants Level 12, 40 St George's Terrace Perth, Western Australia 6000 Australia LQ20 (EAA): Will Declare Final Dividend on October 19 ----------------------------------------------------- LQ20 (EAA) Pty Ltd, which is in liquidation, will declare the final dividend on October 19, 2006. Creditors who cannot prove their claims by October 17, 2006, will be excluded from participating in the distribution of dividend. The Liquidators can be reached at: C. R. Campbell P. G. Yates Grosvenor Place, 225 George Street Sydney, New South Wales 2000 Australia MAXWELL CORNISH: Members' Final Meeting Scheduled on Oct. 24 ------------------------------------------------------------ Members of Maxwell Cornish Pty Ltd will hold a final meeting on October 24, 2006, at 10:30 a.m., to receive the final accounts of the company's wind-up operations from Liquidator D. R. Vasudevan. The Troubled Company Reporter - Asia Pacific reported that the Company commenced a wind-up of its operations and appointed D. R. Vasudevan as liquidator on June 28, 2006. The Liquidator can be reached at: D. R. Vasudevan Pitcher Partners Level 19, 15 William Street Melbourne, Victoria 3000 Australia MULTIPLEX GROUP: Says Discussions on Wembley Project Progressing ---------------------------------------------------------------- In response to recent media speculation in the United Kingdom and Australia surrounding negotiations on the Wembley Stadium project dispute between Multiplex Group and Wembley National Stadium Ltd., Multiplex advises that: (a) discussions in relation to a potential settlement between Multiplex and WNSL are progressing; and (b) the commercial terms remain to be finalized. Multiplex notes that it will advise the market if and when any settlement with WNSL is completed. As reported in the Troubled Company Reporter - Asia Pacific on October 4, 2006, Multiplex Group advised that there has been no material change to the Wembley project status but noted that the installation of more than 90,000 seats was complete. The TCR-AP also reported that Multiplex was pursuing its entitlements against WNSL. An adjudication process has commenced in relation to a number of individual issues with many more adjudications and possible legal proceedings to follow. Multiplex has taken seven separate disputes, including payments, changes of specification, and time schedules with WNSL to adjudication, the TCR-AP noted. About Multiplex Headquartered at Miller's Point, in New South Wales, Australia, Multiplex Group -- http://www.multiplex.biz/-- derives its revenue from property funds management, construction, property development, and facilities management. The Group employs over 2,000 people and has established operations and offices throughout Australia, New Zealand, the United Kingdom and the Middle East. In December 2003, Multiplex Limited listed on the Australian Stock Exchange as a part of the Multiplex Group, raising a total of AU$1.2 billion. Multiplex Group was formed by combining the various businesses of Multiplex Limited and the newly established portfolio of investments held by Multiplex Property Trust. Early in 2005, Multiplex began facing cost pressures on its reconstruction project for the Wembley Stadium in London, prompting it to conduct its own internal investigation into the Wembley difficulties. Its auditor, KPMG, later conducted its own thorough review of the problems, leading to an unpredicted write-down. In February 2005, stunned investors sold down Multiplex shares after the Company reversed its stance on two United Kingdom projects, writing off AU$68.3 million from its profits. This started a series of profit downgrades throughout 2005. The Company's troubles continue with plunging share prices, extortion attempts, and threats of class action from disgruntled shareholders. The Roberts family, as founder and controlling shareholder of Multiplex, opted to offer AU$50 million indemnity in a bid to appease dissatisfied shareholders. In May 2005, Multiplex admitted that its troubled Wembley Stadium construction project may end up with a multimillion loss. As of February 2006, the Company is faced with liquidity crisis after posting a massive AU$474 million loss on Wembley and is currently in talks to bring down possible delay fees, pegged at AU$138,000 per day beyond the scheduled March 31, 2006, completion date. The Troubled Company Reporter - Asia Pacific reported on August 18, 2006, that Multiplex Group financial results for the year ended June 30, 2006, noted that the Wembley project in the United Kingdom incurred a pretax loss of AU$364.3 million or AU$255 million after tax loss. The project loss position has remained unchanged since December 31, 2005. NORTH-SOUTH MARKETING: Members to Receive Wind-Up Report -------------------------------------------------------- North-South Marketing Pty Ltd, which is in liquidation, will hold a final meeting for its members on October 23, 2006, at 10:00 a.m. During the meeting, the members will receive Liquidator J. M. Hamley's report on the company's wind-up proceedings and property disposal exercises. The Liquidator can be reached at: J. M. Hamley Castle Corporate Services Pty Ltd 26 Ellingworth Parade, Box Hill Australia Telephone:(03) 9898 6666 PAISLEY ROBERTSON: Members Resolve to Wind Up Business ------------------------------------------------------ At an extraordinary general meeting held on September 29, 2006, members of Paisley Robertson (Temora) Pty Ltd resolved to voluntarily wind up the company's operations. Stephen Jay was subsequently appointed as liquidator. The Liquidator can be reached at: Stephen Jay Suite 103, 1st Floor Wollundry Chambers, Johnston Street Wagga Wagga, New South Wales 2650 Australia RIVET GROUP: Members Opt for Voluntary Wind-Up ---------------------------------------------- The members of Rivet Group Pty Ltd passed a special resolution on September 27, 2006, to voluntarily wind up the company's operations. Accordingly, M. E. Slaven was named liquidator. The Liquidator can be reached at: M. E. Slaven Rangott & Slaven Unit 2, Level 3, Engineering House 11 National Circuit, Barton ACT 2600 Australia Telephone:(02) 6285 1430 Facsimile:(02) 6281 1966 RURAL PROFILE: Schedules Final General Meeting on October 23 ------------------------------------------------------------ The members and creditors of Rural Profile Pty Ltd, which is in liquidation, will hold their final meeting on October 23, 2006, at 10:00 a.m., to receive Liquidator James Stewart's account on the company's wind-up proceedings and property disposal activities. The Liquidator can be reached at: James Stewart Ferrier Hodgson Level 29, 600 Bourke Street Melbourne, Victoria 3000 Australia RW NADER: Creditors' Proofs of Claim Due on October 18 ------------------------------------------------------ RW Nader Pharmacies Pty Ltd will declare the final dividend to its creditors on October 19, 2006. Those who cannot submit their proofs of claims by October 18, 2006, will be excluded from sharing in the distribution. The Joint and Several Liquidators can be reached at: E. M. Senatore Stephen Brennan Senatore Brennan Rashid Level 7, 28 University Avenue Canberra, ACT 2601 Australia Telephone:(02) 6214 6700 Facsimile:(02) 6214 6799 SHELF RETAIL: To Declare First Interim Dividend ----------------------------------------------- Shelf Retail Equipment Pty Ltd, which is subject to a deed of company arrangement, will declare a first interim dividend on November 1, 2006. Creditors must prove their claims by October 17, 2006, for them to share in the company's distribution of dividend. The Deed Administrator can be reached at: R. L. Duggan c/o Ferrier Hodgson GPO Box 4114 Sydney, New South Wales 2001 Australia SINGLETON ACCOUNTING: Court Issues Wind-Up Order ------------------------------------------------ The Supreme Court of New South Wales on September 29, 2006, ordered Singleton Accounting Pty Ltd to wind up its operations and appointed Roderick Mackay Sutherland as official liquidator. The Official Liquidator can be reached at: Roderick Mackay Sutherland Jirsch Sutherland Chartered Accountants Level 2, 84 Pitt Street Sydney, New South Wales 2000 Australia Telephone: 02 9233 2111 Facsimile: 02 9233 2144 SWINBURNE UNIVERSITY: To Declare Final Dividend on October 18 ------------------------------------------------------------- Swinburne University Sports & Recreation Association, which is in liquidation, will declare its final dividend to creditors on October 18, 2006. Creditors who cannot prove their claims by October 18, 2006, will be excluded from sharing in the dividend distribution. The Liquidator can be reached at: T. M. S. Holden INPACT McDonald Carter Level 6, 31 Queen Street Melbourne, Victoria 3000 Australia Telephone: 8613 8888 Facsimile: 8613 8800 VALLEN RETAIL: Enters Voluntary Wind-Up Process ----------------------------------------------- At an extraordinary general meeting of Vallen Retail Pty Ltd held on October 4, 2006, the members resolved to wind up the company's operations. Subsequently, Brent Kijurina was appointed liquidator at the creditors' meeting held that same day. The Liquidator can be reached at: B. Kijurina Smith Hancock Chartered Accountants Level 4, 88 Phillip Street Parramatta, New South Wales 2150 Australia W.C. ELDRIDGE: Members Opt to Shut Down Operations -------------------------------------------------- At an extraordinary general meeting on September 28, 2006, the shareholders of W. C. Eldridge Pty Ltd resolved to close the company's business operations and distribute the proceeds of its assets disposal. The Liquidator can be reached at: Robert Deutsch 2/580 George Street Sydney, New South Wales 2000 Australia W KELLETT & SONS: Members Resolve to Wind Up Firm ------------------------------------------------- At a general meeting of W Kellett & Sons Pty Ltd held on October 4, 2006, it was resolved that the company should commence a member's voluntary wind-up. Accordingly, Keith Baker was appointed as liquidator. The Liquidator can be reached at: Keith Baker Baker & Brindley Chartered Accountants 87A Market Street Mudgee, New South Wales 2850 Australia WATERCOURSE PLUMBING: Inability to Pay Debt Prompts Wind-Up ----------------------------------------------------------- At a meeting of Watercourse Plumbing Pty Ltd on October 6, 2006, the shareholders passed a special resolution to voluntarily wind up the company's operations due to its inability to pay debts when they fall due. In this regard, Geoffrey Reidy was appointed liquidator. The Liquidator can be reached at: Geoffrey Reidy c/o Rodgers Reidy Level 8, 333 George Street Sydney, New South Wales 2000 Australia WESTERN GRAINS: Bank Appoints Receivers and Managers ---------------------------------------------------- On September 7, 2005, the National Australia Bank Ltd A.C.N. 004 044 937 appointed Wayne Edward Benton as receiver and manager of Western Grains Fertilizer Pty Ltd. The Receiver and Manager can be reached at: Wayne Edward Benton Level 10, 90 Collins Street Melbourne, Victoria Australia WESTERN GRAINS TRANSPORT: Taps Receivers and Managers ----------------------------------------------------- On September 7, 2005, National Australia Bank Ltd appointed Wayne Edward Benton as receiver and manager of all the assets and undertakings of Western Grains Transport (NSW) Pty Ltd. The Receiver and Manager can be reached at: Wayne Edward Benton Level 10, 90 Collins Street Melbourne, Victoria Australia ================================ C H I N A & H O N G K O N G ================================ ASIA TIME: Court Appoints Joint Liquidators ------------------------------------------- On September 6, 2006, the High Court of Hong Kong appointed Desmond Chung Seng Chiong and Roderick John Sutton as joint and several liquidators of Asia Time Technologies Ltd. The Joint Liquidators can be reached at: Desmond Chung Seng Chiong Roderick John Sutton 14/F, Hong Kong Club Building 3A Chater Road, Central Hong Kong BEAUTIFUL MIND: Court Names Arboit and Blade as Liquidators ----------------------------------------------------------- On February 24, 2006, the High Court of Kong appointed Bruno Arboit and Simon Richard Blade as joint and several liquidators of Beautiful Mind WorldWide Ltd. The Joint Liquidators can be reached at: Bruno Arboit Simon Richard Blade 12/F, China Merchants Tower Shun Tak Centre, 168-200 Connaught Road, Central Hong Kong CHIEF RICH: Court to Hear Liquidation Petition on November 29 ------------------------------------------------------------- On September 7, 2006, the High Court of Hong Kong received an application to liquidate Chief Rich Investment Ltd -- from Bank of China (Hong Kong) Ltd. The Court will hear the petition on November 29, 2006, at 9:30 a.m. The Solicitors for the Petitioner can be reached at: Messrs. Deacons 5/F, Alexandra House No. 18 Chater Road, Central Hong Kong CHINA HARMONY: Court to Hear Wind-Up Petition on November 22 ------------------------------------------------------------ On November 22, 2006, the High Court of Hong Kong will hear a petition to wind up the operations of China Harmony Investment Company Ltd. Wu Hon Kee Alfred filed the petition with Court on September 26, 2006. The Solicitors for the Petitioner can be reached at: Poon Yeung & Li Unit 2303, 23/F Golden Center, 188 Des Voeux Road Central, Hong Kong CHINA SOUTHERN: Buys Six Planes from Boeing for Freighter Fleet --------------------------------------------------------------- China Southern Airlines Co. discloses that it has placed an order for six Boeing 777 cargo planes for US$1.39 billion at list prices to expand its freighter fleet, Bloomberg reports. According to the airline's statement the B-777 freighters will be delivered between November 2008 and July 2010, noting China Southern will pay less than the catalog price for the aircraft. Forbes relates that B777 are sold at a market price of US$232 million each. The new freighters will increase China Southern's cargo capacity by 26%, the company said. The airline flew 599,460 metric tons of cargo in the first nine months of the year, an increase of 6.5%, Bloomberg notes. These new purchases, according to The Standard will increase to more than 60 the number of aircraft China Southern has bought this year. On July 17, 2006, the Troubled Company Reporter - Asia Pacific reported that the airline's board had also approved and reached an agreement to purchase 50 Airbus A320 carriers. In addition, China Southern also said its Xiamen Airlines Co. unit ordered six Boeing 737-800 planes valued at US$423 million based on the average list price. Bloomberg recounts that Xiamen Airlines switched an order for three Boeing 787s to six 737-800s in August. Credit Suisse analyst Karen Chan told The Standard that the carrier might face more pressure on interest expense with new airplane purchases. But she said it would not have a negative impact on profit given that jet fuel prices have dropped significantly in the past few months. * * * Headquartered in Guangzhou, China, China Southern Airlines Co Ltd. -- http://www.cs-air.com-- engages in the operation of airlines, as well as in aircraft maintenance and air catering operations in the People's Republic of China and internationally. It provides commercial airlines, cargo services, logistics operations, air catering, utility service, hotel operation, travel services, aircraft leasing, and Internet services. On May 1, 2006, Fitch Ratings has downgraded China Southern Airlines Company Limited's Foreign Currency and Local Currency Issuer Default Ratings to B+ from BB-. The Troubled Company Reporter - Asia Pacific reported in April 2006, that the carrier posted a net loss of CNY1.85 billion for 2005 versus a net loss of CNY48 million a year earlier. COVANTA ENERGY: Moody's Confirms Ba3 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 Ba3 Corporate Family Rating for Covanta Energy Corporation. Additionally, Moody's 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 ---------- ------- ------- ------ ---------- Senior secured revolving credit facility due 2011 B1 B1 LGD4 64% Senior secured term loans 2012 B1 B1 LGD4 64% Senior secured letter of credit facility due 2012 B1 B1 LGD4 64% Second lien senior secured term loan due 2013 B2 B2 LGD5 84% Moody's explains that current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). * * * Headquartered in Fairfield, New Jersey, Covanta Energy Corporation -- http://www.covantaenergy.com/-- is a publicly traded holding company whose subsidiaries develops, own or operate power generation facilities and water and wastewater facilities in the United States and abroad. Covanta has operations in the Philippines, China, Costa Rica, India, and Bangladesh. CRYSTALTRACE TECHNOLOGY: Members to Hear Wind-Up Report ------------------------------------------------------- Members of Crystaltrace Technology International Company Ltd will hold a meeting on November 21, 2006, 3:00 p.m., at 32/F., Morrison Plaza, 5-9A Morrison Hill Road, Wanchai, Hong Kong. At the meeting, members will receive Liquidator Ma Chi Chung's report on the company's wind-up and property disposal exercises. According to the Troubled Company Reporter - Asia Pacific, the Company commenced a wind-up of its operations on August 11, 2006. The Liquidator can be reached at: Ma Chi Chung Room 803, Tung Hip Commercial Bldg 248 Des Voeux Road, Central Hong Kong DIAMOND TECHNOLOGY: Creditors to Prove Debts on October 27 ---------------------------------------------------------- Creditors of Diamond Technology Ltd are required to prove their debts on October 27, 2006, to Joint Liquidators Wong Kwok Man and Alison Wong Lee Fung Ying. Failure to prove their debts on the due date will exclude a creditor from sharing in any distribution the company will make. The Joint Liquidators can be reached at: Wong Kwok Man Alison Wong Lee Fung Ying Grant Thornton Specialist Services Limited 13/F, Gloucester Tower, The Landmark 15 Queen's Road, Central Hong Kong DUNHUANG (CHINA): To Pay First Ordinary Dividend on October 18 -------------------------------------------------------------- Dunhuang (China) Company Ltd will pay its first ordinary dividend to creditors on October 18, 2006. The Troubled Company Reporter - Asia Pacific previously reported that Liquidator Kong Chi How, Johnson required the Company's creditors to prove their debts on October 6, 2006. The Liquidator can be reached at: Kong Chi How, Johnson 29/F, Wing On Centre 111 Connaught Road, Central Hong Kong GEORGIA GULF: Completes Acquisition of Royal Group -------------------------------------------------- On October 3, 2006, Georgia Gulf Corp completed its acquisition of Royal Group Technologies. Under the terms of the definitive agreement, originally announced on June 9, 2006, Georgia Gulf has now acquired all of the outstanding common stock of Royal Group for CDN$13.00 per share in cash. The Troubled Company Reporter - Asia Pacific reported shareholders of Royal Group approved Georgia Gulf's proposal to acquire all of its outstanding shares at CDN$13 per share on August 4, 2006. Existing management team of Georgia Gulf will now serve as executives of the acquired Royal Group. Meanwhile, Georgia Gulf will report its third quarter earnings on October 26, 2006, which will not include Royal Group's third quarter results as the acquisition has closed post quarter end. Georgia Gulf will report fourth quarter results, inclusive of Royal Group, in February of 2007. * * * Based in Atlanta, Georgia Gulf Corporation -- http://www.ggc.com/-- is a commodity chemicals producer. Its product portfolio includes VCM, PVC resin, vinyl compounds, cumene, acetone, and phenol. Georgia Gulf earned approximately US$279 million of EBITDA on sales of US$2.2 billion for the LTM period ended June 30, 2006. The company has a location in Shanghai, China. On October 10, 2006, the Troubled Company Reporter - Asia Pacific reported that Fitch Ratings removed Georgia Gulf Corporation's credit ratings from Rating Watch Negative; downgraded the issuer default rating, senior secured credit facility rating, and senior unsecured note rating; and assigned ratings to new issues, upon the closing of the acquisition of Royal Group Technologies earlier this week. These ratings affect approximately US$2.0 billion of debt. The Rating Outlook is Negative. -- Issuer default rating downgraded to 'BB-' from 'BB' -- Senior secured credit facility downgraded to 'BB+' from 'BBB-' -- Existing senior unsecured notes downgraded to 'BB-' from 'BB' -- New senior unsecured notes 'BB-' -- New senior subordinated notes 'B' An IDR of 'BB-' incorporates: * the benefit of greater integration in the vinyls chain; * the potential for greater earnings and cash flow with less volatility; and * some success in realizing cost synergies. GROUP LEADER: Final Members' Meeting Set on November 13 ------------------------------------------------------- Members of Group Leader Ltd will convene for their final meeting on November 13, 2006 at 10:30 a.m., to receive Liquidator Lee Kwok On, Alexander's accounts of the company's wind-up and property disposal exercises. As reported by the Troubled Company Reporter - Asia Pacific, creditors of the company resolved to wind-up the company's operations on April 26, 2006. The Liquidator can be reached at: Lee Kwok On, Alexander Rooms 1901-2 Park-In Commercial Centre 56 Dundas Street Kowloon, Hong Kong JIANGXI COPPER: Third Quarter Profit Tops at CNY1.5 Billion ----------------------------------------------------------- Jiangxi Copper Co disclosed that its net profit stood at CNY1.5 billion for the third quarter ended September 30, 2006, up from CNY361.4 million in the third quarter period of the previous year, Reuters reports. The paper relates that based on the statement filed by the company with Shanghai Stock Exchange, high sales prices increased the company's core revenue to CNY7.31 billion for the third quarter from CNY3.25 billion in the same period last year. In addition, Jiangxi's earnings per share stood at CNY0.518 compared with CNY0.125 a year earlier. For the first nine months, the company posted a net profit of CNY3.56 billion, up 164.54% year-on-year. Its core revenue rose 74.43% on a yearly basis to CNY17.72 billion for the first nine months, the company said. * * * 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+. LINK GARMENT: Cheung Yuk Cheung Ceased to Act as Liquidator ----------------------------------------------------------- Cheung Yuk Cheung on October 3, 2006, ceased to act as liquidator of Link Garment Manufacturing Company Ltd. According to the Troubled Company Reporter - Asia Pacific, Liquidator Cheung presented a wind-up report at the members' final meeting on September 29, 2006. The former Liquidator can be reached at: Cheung Yuk Cheung Room 1003, Park Tower 15 Austin Road, Tsim Sha Tsui Kowloon, Hong Kong MAPICS HONG KONG: Members' Final Meeting Set on November 16 ----------------------------------------------------------- Members of Mapics Hong Kong Ltd will convene on November 16, 2006, at 11:00 a.m., to receive Liquidator Cheng Chung Por Gordon's report regarding the company's wind-up and the manner its property were disposed of. The Troubled Company Reporter - Asia Pacific reported that on April 3, 2006, members of the Company agreed to wind up the company's operations. The Joint and Several Liquidator can be reached at: Cheng Chun Por Gordon 1902 Mass Mutual Tower 38 Gloucester Road Wanchai, Hong Kong NOBLE GROUP: S&P Affirms Long Term Corp. Credit Rating at BB+ ------------------------------------------------------------- On October 16, 2006, Standard & Poor's Ratings Services said that its BB+ long-term corporate credit rating on Noble Group Ltd was not affected by reported trading losses from its aluminum trading division. The losses raise concerns about the effectiveness of Noble's risk management systems. The systems will remain under close scrutiny pending full details about the cause and discovery of the losses. The rating reflects Noble's exposure to the volatile and low margin commodity trading business, the company's rising debt levels, and its relatively small size compared with its wider global peer group. In addition, the current rating factors in concern about Noble's persistently negative free operating cash flow generation. All these factors are offset by the depth and reach of the company's product mix and rapidly expanding tonnage, which should help to reduce cyclical pressure over the medium term. Noble's business and financial operations remain exposed to commodity cycles, as evidenced by a 58% drop in net profit to US$59.9 million in the six months ended June 30, 2006. Nevertheless, growth in tonnage volume and product expansion are gradually improving the company's business risk profile. Despite weaker results from its logistics and aluminum division in the first half of 2006 compared with the record levels generated in 2004 and 2005, turnover increased by 2.3% while total tonnage remained relatively flat at 43.4 million tons. In the same period, Noble's revenues on a 'port discharge basis' became more diversified, with 35% of revenue generated in China and other Asia-Pacific markets in the six months ended June 30, 2006, compared with 51% as of Dec. 30, 2004. While Noble remains small relative to global commodity traders, it is expected to continue to expand and strengthen its market position, thereby reducing its vulnerability to commodity cycles. The stable outlook anticipates a gradual return to positive free cash flow generation and a reduction in net leverage. The rating could be lowered if the company's ratio of funds from operations to adjusted debt falls below 20%, total debt to EBITDA exceeds 4.5x, or operating cash flow remains persistently negative. While upside potential over the medium term is limited, an improvement in the company's business profile, reduction in financial volatility, maintenance of appropriate risk management systems, and a track record of positive free operating cash flow generation would be positive for the rating. * * * Noble Group Ltd., headquartered in Hong Kong and listed on the Singapore Stock Exchange, is mainly engaged in the sourcing and distribution of a wide range of commodity products in agriculture, energy and metals as well as the logistics management business. It has over 70 offices in 42 countries. OCEAN PETROLEUM: Creditors and Contributories to Hold Meeting ------------------------------------------------------------- Ocean Petroleum Company Ltd will hold meetings for its creditors and contributories on October 24, 2006 at 3:30 p.m. and 4:00 p.m., respectively. During the meeting, the resignation of Yeung Wing Yee as liquidator of the company will be considered. The Joint and Several Liquidators can be reached at: Cheung Chi Yu Yeung Wing Yee Room 908, 9/F One Pacific Place, 88 Queensway Hong Kong PWC CONSULTING: Creditors' Proofs of Claim Due on November 3 ------------------------------------------------------------ Creditors of PWC Consulting Hong Kong Ltd are required to submit their proofs of claim to Joint Liquidators Ying Hing Chiu and Chung Miu Yin, Diana by November 3, 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: Ying Hing Chiu Chung Miu Yin, Diana Level 28, Three Pacific Place 1 Queen's Road East Hong Kong STRONG BASE: Faces Wind-Up Proceedings -------------------------------------- The High Court of Hong Kong will hear a wind-up petition against Strong Base Development Ltd on November 29, 2006. Bank of China (Hong Kong) Ltd filed the petition with the Court on September 7, 2006. The Solicitors for the petitioner can be reached at: Messrs. Deacons 5/F, Alexandra House No. 18 Chater Road, Central Hong Kong SWIFT & COMPANY: Moody's Confirms B2 Corporate Family 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. Consumer Products sector, the rating agency confirmed its B2 Corporate Family Rating for Swift & Company. In addition, Moody's affirmed its probability-of-default ratings and assigned loss-given-default ratings to these notes: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$257.26 million 10.125% Gtd. Global Notes Due Oct. 1, 2009 B3 B3 LGD4 61% US$150 million 12.500% Sr. Sub. Global Notes Due Jan. 1, 2010 Caa1 Caa1 LGD5 77% 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%). * * * Swift & Company -- http://www.swiftbrands.com/-- provides quality beef and pork products to consumers in the United States. The company has foreign sales offices in Hong Kong, Japan, Mexico, South Korea, China, and Taiwan. TARGET REALTY: Wind-Up Petition Hearing Set on November 29 ---------------------------------------------------------- The High Court of Hong Kong is set to hear a wind-up petition filed against Target Realty Ltd on November 29, 2006 at 9:30 a.m. Bank of China (Hong Kong) Ltd filed the petition with the Court on September 7, 2006. The Solicitors for the Petitioner can be reached at: Messrs. Deacons 5/F, Alexandra House No. 18 Chater Road, Central Hong Kong TAITUNG BANK: Taiwan Ratings Lowers Credit Rating to BB ------------------------------------------------------- On October 14, 2006, Taiwan Ratings Corp lowered its long-term counterparty credit rating on Taitung Business Bank to twBB from twBB+. At the same time, the twB short-term counterparty credit rating on the bank was affirmed. The outlook on the long-term rating is negative. The rating action reflects TBB's deteriorating core profitability and increasing uncertainty that the bank will be able to rebuild its capital strength. Both factors are putting increasing pressure on TBB's currently vulnerable financial profile. The ratings reflect TBB's financial profile, specifically its very weak asset quality and poor capitalization. These negative factors are partly offset by the bank's adequate liquidity for current operation. TBB's already low profitability has further deteriorated over the past few months and is likely to remain under pressure over the medium term. This is mainly due to a shrinking base of unsecured high-margin consumer loans. Because of an industry-wide rise in delinquencies on unsecured consumer loans, TBB has reduced such lending and attempted instead to expand mortgage lending, which carries less risk. This self-imposed constraint has effectively squeezed the bank's interest spread and is consequently unlikely to reverse the decline in its profitability. Recognition of up to NT$450 million in unamortized losses annually due to disposals of impaired assets to an asset management company is putting further pressure on TBB's profitability. The bank's annualized preliminary ROA in the first three quarters of 2006 was about negative 4%, compared with negative 1% in 2005 and 2.4% in 2004. TBB's asset quality is very weak. The bank's ratio of impaired assets -- official non-performing loans and foreclosed property -- to total loans stood at 19% at the end of March 2006, up from 15.7% at the end of 2004, and is likely to have risen to above 20% as at the end of September 2006 due to its continuing high level of impaired assets and shrinking loan base. TTB's capitalization has deteriorated since the middle of 2005 as a result of the bank's inability to accumulate profit. At the end of June 2006, the bank reported net worth of NT$90 million and its official BIS ratio was negative 0.19%. To meet regulatory capital requirements, TTB has planned capital raising initiatives, including a recently proposed issue of common equity amounting to NT$2.2 billion and preferred shares amounting to NT$600 million. It remains unclear if the bank can effectively raise sufficient new capital as it would be challenging for TTB to generate a satisfactory return on such capital over the medium term. If TTB is unable to sufficiently restore its capital strength to meet regulatory requirements, the government may restrict, downsize, or take over the bank's operations. The outlook reflects Taiwan Ratings' view that TTB's financial profile could come under further pressure. It may be revised to stable if TTB can raise sufficient new capital and improve its core profitability. The ratings may be lowered if the bank's asset quality and/or core profitability deteriorates further. They may also be lowered if TTB fails to effectively restore its capitalization, leading to regulatory action, or if its liquidity deteriorates beyond Taiwan Ratings' expectations. * * * Headquartered in Taiwan, Taitung Business Bank's principal activities are providing banking, trust and other related financial services to small and medium size enterprise. Its services include accepting checking deposits and other form of deposits, remittances, bills of exchange, loans and guarantee services. TERRELL LTD: Creditors Must Prove Debts by November 14 ------------------------------------------------------ Liquidator Choi Shuk Han requires creditors of Terrell Ltd to submit their proofs of debts by November 14, 2006, or be excluded from sharing in any distribution the company will make. The Liquidator can be reached at: Choi Shuk Han Rooms 502-502, 5/F Sun Hung Kai Centre 30 Harbour Road, Wanchai Hong Kong TIN SHING: Members to Receive Wind-Up Report on November 15 ----------------------------------------------------------- Tin Shing Services Ltd will hold a final general meeting of its members on November 15, 2006, 11:00 a.m., at 20/F, Prince's Building, Central, Hong Kong. During the meeting, members will receive Liquidator Rainier Hok Chung Lam's report on the company's wind-up and property disposal activities. ========= I N D I A ========= CORPORATION BANK: BoD to Meet on Oct. 26 to Consider Financials --------------------------------------------------------------- Corporation Bank has informed the Bombay Stock Exchange that its board of directors will hold a meeting on October 26, 2006. During the meeting, the Board will consider, among others, the Bank's unaudited financial results (subject to limited review) for the quarter and half-year periods ended September 30, 2006. About Corp. Bank Headquartered in Mangalore, India, Corporation Bank -- http://www.corpbank.com/-- offers a range of deposit schemes and loan products to customers. The various products offered by the bank include Corp Pragathi savings bank account, current account products and term deposits. Corporation Bank offers housing loans, education loans, consumer loans for purchase of consumer durables, loans against future rent receivables on leased out building/premises, loans to purchase two wheelers and four wheelers, loans against shares, loans for purchase of medical and other such equipments, loan to acquire office premises/building and furniture, personal loans, loans to women to buy gold/jewelry, and loan against mortgage of property. It also offers a range of non-resident Indian services, as well as debit and credit cards. Fitch Ratings gave Corp Bank a 'C' individual rating on June 1, 2005. ICICI BANK: Proposed U.S. Dollar Notes Get S&P's BB+ Rating ----------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB+' issue rating to the proposed senior unsecured, five-year, fixed-rate U.S. dollar notes to be issued by India's ICICI Bank Ltd. (foreign currency BB+/Positive/B), acting through its Singapore Branch. These notes are being issued under the bank's multi-currency US$1 billion medium-term note issuance program. The senior notes will constitute direct, unconditional, unsubordinated, and unsecured obligations of the bank and will rank pari passu with all of the bank's unsecured and unsubordinated obligations, and ahead of all subordinated debt issues. The issue proceeds will be used to meet the funding requirements of ICICI Bank's international operations and for general corporate purposes, subject to regulatory approvals. Any material change to the terms and conditions of future senior unsecured note issues could affect the rating on the particular issue. Standard & Poor's credit ratings are not recommendations to purchase, hold, or sell any particular security. In addition, a rating does not comment on the suitability of an investment for a particular investor. About ICICI Bank Headquartered in Mumbai, India, ICICI Bank Limited -- http://www.icicibank.com/-- is a financial services group providing a variety of banking and financial services, including project and corporate finance, working capital finance, venture capital finance, investment banking, treasury products and services, retail banking, broking and insurance. It also has interests in the software development, software services and business process outsourcing businesses. The Company's operations have been classified into three segments: Commercial Banking, Investment Banking and Others. It has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain, and representative offices in the United States, China, United Arab Emirates, Bangladesh and South Africa. * * * Fitch Ratings gave ICICI a 'C' Individual Rating. On Aug. 15, 2006, Standard & Poor's assigned its 'BB-' rating to the hybrid Tier-1 securities to be issued by ICICI Bank Ltd. NTPC LTD: To Consider Foray Into Equipment Manufacturing -------------------------------------------------------- NTPC Ltd is considering going into the equipment manufacturing business, The Financial Express reports. According to the report, Indian Power Minister Sushil Kumar Shinde suggested that NTPC undertake the new field, exploring the area that Bharat Heavy Electricals Ltd is into. "Given the huge capacity addition programme in the country, why not have another company like BHEL," the report quotes the Power Minister as saying. BHEL, an engineering and manufacturing enterprise, is the monopoly player in power equipment supplies. Its market share ranges from 50% to 80% in various categories, The Financial Express notes. The country's Power Secretary, RV Shahi, believes there's enough room for a company like BHEL. Mr. Shahi also pointed out to The Financial Express that NTPC has the capacity to reduce the time to execute the new venture by at least nine to 10 months. NTPC chairman and managing director T Shankarlingam is still mum about the subject. "This is still at a preliminary stage and without undertaking further studies I cannot say anything," the CMD told the newspaper. About NTPC Ltd Headquartered in New Delhi, India, NTPC Limited -- http://www.ntpc.co.in/-- formerly known as National Thermal Power Corporation Limited, is engaged in generation and sale of bulk power. It operates in two business segments: Generation and Other business. The company is also engaged in providing consultancy, project management and supervision, oil and gas exploration and coal mining. NTPC Limited operates coal stations and Gas stations. On February 2, 2005, Standard and Poor's Ratings Service gave NTPC Ltd's long-term foreign issuer credit a BB+ rating. RELIANCE INDUSTRIES: Board to Consider 2ndQ Results on Oct. 19 -------------------------------------------------------------- The board of directors of Reliance Industries Limited will hold a meeting on October 19, 2006, the company said in a filing with the Bombay Stock Exchange. At the meeting, the Board will, among others, consider Reliance Industries' unaudited financial results for the quarter and half-year periods ended September 30, 2006. About Reliance Industries Reliance Industries Limited -- http://www.ril.com/-- is engaged in the exploration and production sector. The company is organized into three major business segments, which include Exploration and Production of oil and gas; Refining and Marketing of petroleum products, and Petrochemicals, including the manufacturing and marketing of polymers, polyester, polyester intermediates and chemicals. RIL's operations capture value addition at every stage, from the production of crude oil and gas to polyester, polymer and chemical products, and finally to the production of textiles. RIL also has exploration and production interests in India, Yemen and Oman. The company operates mainly in India but has business activities and customers in more than 100 countries around the world. Fitch Ratings gave Reliance Industries Ltd's foreign currency long-term debt, long-term issuer default and local currency long-term debt BB+ ratings effective on December 15, 2005. Moody's Investors Service gave the company 'Ba2' long-term corporate family, issuer, and senior unsecured debt ratings effective March 17, 2005. STATE BANK OF INDIA: Invests US$3 Million in Bahrain Branch ----------------------------------------------------------- State Bank of India invested US$3 million in its first commercial branch in Bahrain, Gulf Daily News reports. SBI, which opened its first Bahrain office 30 years ago, will open the commercial branch in November, the daily says. The Bahrain commercial branch will be SBI's second branch in the Gulf. U.N. Challu, the Bank's newly promoted chief general manager in the region, told the Gulf Daily that the Bahrain commercial branch will function like any other local bank providing deposits, loans, trade finance, letter of credit and remittance services for non-resident Indians, among others. The US$3 million is just an initial investment to develop the new branch, Mr. Challu added. About State Bank of India State Bank of India Ltd -- http://www.sbi.co.in/-- is the oldest and largest bank in India. SBI, along with its associate banks, offers a wide range of banking products and services across client markets. In 2005-06, SBI has embarked on implementing a business process re-engineering project to enhance customer service and profitability levels. The bank has branches in Bahrain, Japan, Mauritius and the United States. * * * The Troubled Company Reporter - Asia Pacific reported on April 21, 2006, that Fitch Ratings has affirmed State Bank of India's Long-term Issuer Default rating at BB+, Short-term rating at "B", Individual rating at "C" and Support rating at '3'. The outlook on the ratings is stable. Additionally, Standard and Poor's Rating Service gave State Bank of India a BB+ long-term foreign issuer credit rating on February 2, 2005. Moody's Investors Service placed a Ba2/Not Prime rating on State Bank of India's foreign currency bank deposits, a Ba2/Not Prime rating on its domestic currency bank deposits, and a D Bank Financial Strength Rating in June 2006. STATE BANK OF INDIA: Board Meeting Scheduled on Oct. 28 ------------------------------------------------------- State Bank of India informed the Bombay Stock Exchange that its Central Board will hold a meeting on October 28, 2006. The Central Board will take on record the working results of the Bank for the quarter and half-year periods ended September 30, 2006. About State Bank of India State Bank of India Ltd -- http://www.sbi.co.in/-- is the oldest and largest bank in India. SBI, along with its associate banks, offers a wide range of banking products and services across client markets. In 2005-06, SBI has embarked on implementing a business process re-engineering project to enhance customer service and profitability levels. The bank has branches in Bahrain, Japan, Mauritius and the United States. * * * The Troubled Company Reporter - Asia Pacific reported on April 21, 2006, that Fitch Ratings has affirmed State Bank of India's Long-term Issuer Default rating at BB+, Short-term rating at "B", Individual rating at "C" and Support rating at '3'. The outlook on the ratings is stable. Additionally, Standard and Poor's Rating Service gave State Bank of India a BB+ long-term foreign issuer credit rating on February 2, 2005. Moody's Investors Service placed a Ba2/Not Prime rating on State Bank of India's foreign currency bank deposits, a Ba2/Not Prime rating on its domestic currency bank deposits, and a D Bank Financial Strength Rating in June 2006. TATA MOTORS: Board of Directors to Hold Meeting on Oct. 30 ---------------------------------------------------------- A meeting of Tata Motors Ltd's board of directors will be held on October 30, 2006, for it to consider, inter alia, the audited results for the half-year period and second quarter ended September 30, 2006, pursuant to Clause 41 of the Listing Agreement. About Tata Motors Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. During the fiscal year ended March 31, 2006 (fiscal 2006), the Company sold 454,129 vehicles. Its commercial vehicle sales were 245,022 in the domestic and overseas market in fiscal 2006. The Company created a new segment in the domestic commercial vehicle market by launching a mini truck, TATA ACE in May 2005. It achieved a sale of 209,107 passenger vehicles in the domestic and overseas market (including the sale of 209 Fiat cars) in fiscal 2006. Tata Motorfinance (TMF), the vehicle-financing business of the Company financed 96,247 new vehicles during fiscal 2006. A report by the Troubled Company Reporter - Asia Pacific on September 28, 2005, stated that Standard & Poor's Ratings affirmed its 'BB' long-term foreign and local currency corporate credit ratings on Tata Motors. The outlook is stable. Additionally, Moody's Investors Service, on July 26, 2005, gave Tata Motors 'Ba1' long-term corporate family and senior unsecured debt ratings. TATA MOTORS: Reports Sales of 49,157 Vehicles in Sept. 2006 ----------------------------------------------------------- Tata Motors reported a total sale of 49,157 vehicles (including exports) for September 2006, a growth of 23.8% over 39,707 vehicles sold in September 2005. Cumulative sales for the Company at 2,65,829 nos. are growing by 36.3% Commercial Vehicles The Company's sales of commercial vehicles in September 2006 in the domestic market were 26,627 nos., an increase of 39.5% over 19,087 vehicles sold in September last year. M&HCV sales stood at 15,193 nos., a growth of 34.1% over the September 2005 figure while LCV sales were 11,434 nos., a growth of 47.4% over September 2005. Cumulative sales of commercial vehicles in the domestic market for the fiscal were 1,34,372 nos., an increase of 53.8% over the corresponding period last year. Cumulative M&HCV sales stood at 77,394 nos., an increase of 48.7% over the corresponding period last year while cumulative LCV sales for the fiscal were 56,978 nos., an increase of 61.4% over the corresponding period last year. Passenger Vehicles The passenger vehicle business reported a total sale of 18,609 vehicles in the domestic market in September '06, an increase of 15.7% over September '05. The Indica sold 10,694 nos., a growth of 10.6% over September '05. The Indigo family based on the encouraging response to its facelifted version, registered sales of 3,568 nos., an increase of 6.4% over September '05. The Sumo and Safari accounted for sales of 4,347 nos., a growth of 42.3% over September '05. Safari registered its highest ever sales of 1,543 nos. in the month. Cumulative sales of passenger vehicles in the domestic market for the fiscal were 1,04,294 nos., an increase of 24% over the previous year. Cumulative sales of Indica at 67,728 nos. registered a growth of 35.2% over the previous year while cumulative sales of the Indigo family at 16,643 nos. registered a decline of 9.9% over last year. Cumulative sales of Sumo and Safari were 19,923 nos., a growth of 27.8% over last year. Car sales were adversely affected during the month due to a fire led stoppage of production in the last week. October sales are also going to be restrained due to the impact. Exports The Company's sales from exports were 3,921 vehicles in September '06 as compared to 4,542 vehicles in September '05, a decrease of 14%. The cumulative sales from exports in the current period at 27,163 nos. have recorded a 17.6% growth over the corresponding figures for the previous period. About Tata Motors Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. During the fiscal year ended March 31, 2006 (fiscal 2006), the Company sold 454,129 vehicles. Its commercial vehicle sales were 245,022 in the domestic and overseas market in fiscal 2006. The Company created a new segment in the domestic commercial vehicle market by launching a mini truck, TATA ACE in May 2005. It achieved a sale of 209,107 passenger vehicles in the domestic and overseas market (including the sale of 209 Fiat cars) in fiscal 2006. Tata Motorfinance (TMF), the vehicle-financing business of the Company financed 96,247 new vehicles during fiscal 2006. A report by the Troubled Company Reporter - Asia Pacific on September 28, 2005, stated that Standard & Poor's Ratings affirmed its 'BB' long-term foreign and local currency corporate credit ratings on Tata Motors. The outlook is stable. Additionally, Moody's Investors Service, on July 26, 2005, gave Tata Motors 'Ba1' long-term corporate family and senior unsecured debt ratings. TATA POWER: Appoints Prasad Menon as Managing Director ------------------------------------------------------ Tata Power Company Ltd appoints Prasad R. Menon as its Managing Director effective October 16, 2006, the company informed the Bombay Stock Exchange. Before his new assignment, Mr. Menon was the Managing Director of Tata Chemicals Ltd. Part of the Tata Group for over six years, Mr. Menon played an integral role in Tata Chemicals growth and development, including the merger with Hind Lever Chemicals Ltd and its recent acquisition of Brunner Mond in the United Kingdom. A chemical engineer from the Indian Institute of Technology Kharagpur, Mr. Menon has previously worked with the Nagarjuna Group and ICI. The company also appointed of Nawshir Mirza as non-executive independent Director on the Board. Mr. Mirza is the India Advisor for the Jardine Matheson Group and previously was the partner of Ernst & Young. About Tata Power Headquartered in Mumbai, India, Tata Power Company Limited -- http://www.tatapower.com/-- is engaged in the business of generation, transmission and distribution of electricity with operations in the states of Maharashtra, Jharkhand and Karnataka. The company operates two business segments: the power business segment and the other business segment. Its power business segment is engaged in the generation, transmission and distribution of electricity. The company's other business segment includes electronics and project consultancy. During the fiscal year ended March 31, 2006, the power business contributed about 94% of the Company's revenues. On December 2, 2005, it completed the acquisition of 74% equity stake in Maithon Power Limited from Damodar Valley Corporation. * * * The Troubled Company Reporter - Asia Pacific reported on November 10, 2005, that Standard & Poor's Ratings Services affirmed its 'BB+' long-term foreign and local currency corporate credit ratings for Tata Power. The outlook is stable. UNION BANK OF INDIA: Names Sreenivasan as Non-Official Director --------------------------------------------------------------- Union Bank of India informed the Bombay Stock Exchange that the Central Government nominated Shri K S Sreenivasan as part-time non-official Director of the Bank, under Chartered Accountant category. Mr. Sreenivasan will assume the post for three years effective from October 11, 2006. About Union Bank of India Headquartered in Mumbai, India, Union Bank of India -- http://www.unionbankofindia.com/-- is a scheduled commercial bank. The bank offers a range of deposit schemes, including Union Cumulative Deposit Scheme, cumulative deposit schemes, deposit reinvestment certificates, monthly income schemes, Union Flexi Deposit Scheme, capital gains exemption deposit schemes, senior citizen deposit schemes, floating-rate deposit schemes and Multi Gains Current Account scheme. It offers various types of loans, which include home loans, education loans and mortgage loans. It offers Internet banking facility under the name Union E-Banking, which caters to both retail and corporate customers, and individuals. Through its tie-up with HDFC Standard Life Insurance Co., the Bank offers group insurance products under the name Union Suraksha. Moody's Investors Service gave the bank's foreign long-term bank deposits a Ba2 rating. UNION BANK OF INDIA: INR10-Bil. Tier II Bonds Get's CRISIL's AA+ ---------------------------------------------------------------- The Credit Rating Information Services of India Ltd rates Union Bank of India's bond issues: * INR10.0-billion Upper Tier II Bonds Issue: AA+/Stable (Assigned) * INR3.0-billion Perpetual Bonds Issue: AA+/Stable (Assigned) * INR4.0-billion Bonds Issue: AA+/Stable (Assigned) * INR2.0-billion Bonds Issue: AA+/Stable (Reaffirmed) * INR8.0 Billion Bonds Issue: AA+/Stable (Reaffirmed) * INR4.5 Billion Bonds Issue: AA+/Stable (Reaffirmed) * INR2.5 Billion Bonds Issue: AA+/Stable (Reaffirmed) * INR 4.0 Billion Bonds Issue: AA+/Stable (Reaffirmed) * INR1.7 Billion Bonds Issue: AA+/Stable (Reaffirmed) CRISIL's recently assigned rating of 'AA+/Stable' on the Upper Tier II Bonds and Perpetual Bonds Issue of Union Bank of India reflects the bank's comfortable capitalization levels and healthy earnings profile. UBI had a Tier I capital adequacy of 7.32% and an overall capital adequacy, as a proportion of risk- weighted assets, of 11.4%, as on March 31, 2006. For the year ended March 31, 2006, UBI reported Profit After Tax of INR6.7 billion. CRISIL expects large absolute accretions to UBI's net worth to enable it to maintain its overall capital adequacy at comfortable levels over the medium term. However, the bank has limited flexibility in raising fresh equity capital through dilution of the Government of India's holding: GoI has a 55.4% stake in UBI, which is close to the regulatory minimum of 51%. CRISIL's rating on UBI's Lower Tier II bonds continues to be driven by the benefits the bank derives from majority ownership by the Government of India. The bank's good market position, strong resource profile, and healthy earnings position also strengthen the rating. The bank's modest asset quality tempers these rating strengths. In its ratings of Indian public sector banks, including UBI, CRISIL factors in the high likelihood of systemic support from GoI in the event of distress. CRISIL believes that majority ownership creates a moral obligation for GoI to support the PSBs, if the need arises. The rating also takes into account UBI's low-cost resource profile, characterized by a healthy deposit mix, high stability, and reasonable growth in deposits. On an annual average basis, the bank's cost of deposits reduced to 4.64% in 2005-06 (refers to financial year, April 1 to March 31), from 4.82% in 2004-05. Although UBI's profitability in 2005-06 has declined, its earnings profile as measured by Net Profitability Margin (NPM) is comparable to the system average. UBI's NPM, based on yearly average funds, has declined to 1.62% in 2005-06 from 1.79% during 2004-05. This has been mainly because of the fall in yields on its advances portfolio. UBI's asset quality is average, despite the recent improvement in the credit risk profile of its incremental loans and advances. Slippages (additions to NPAs) have increased marginally to 1.9% in 2005-06, leading to an increase in the absolute amount of Gross NPAs. Overall gross NPAs have declined to 3.84% of the portfolio as on March 31, 2006, from 5.01% in the previous year, which is in line with the overall trend in the banking sector. Outlook: Stable CRISIL expects that GoI will continue to extend strong support to all PSBs in India, including UBI. Continued GoI support, coupled with UBI's good business position, will significantly offset the challenges faced by the bank in improving its inherent asset quality. CRISIL expects UBI's overall capital adequacy ratio to remain at comfortable levels. CRISIL further expects UBI to remain profitable over the near to medium term. About the Bank Union Bank is one of the ten largest Indian banks with total assets of over INR800 billion as on March 31, 2006. Union Bank was incorporated in 1919 at Mumbai and was nationalized during the first round of bank nationalization in 1969. Until August 2002, GoI fully owned the bank; currently, GoI has a 55% stake. The bank has a nationwide presence with a geographically diversified branch network. As of March 31, 2006, it had 2,082 branches and 145 extension counters. For the year ended March 31, 2006, Union Bank reported a PAT of INR6.7 billion on total income (net of interest expenses) of INR23.74 billion. For the quarter ended June 2006, the bank reported a PAT of INR1.7 billion (INR2.4 billion for the corresponding period of the previous year) on a total income of INR6.35 billion. * * * Moody's Investors Service gave the bank's foreign long-term bank deposits a Ba2 rating. ================= I N D O N E S I A ================= FREEPORT-MCMORAN: 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 North American Metals & Mining sectors, the rating agency confirmed its Ba3 Corporate Family Rating for Freeport-McMoran Copper & Gold 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$340 Million 6.875% Senior Unsecured Notes due 2014 B1 B1 LGD5 80% US$272 Million 10.125% Senior Unsecured Notes due 2010 B1 B1 LGD5 80% US$55 Million 7.5% Senior Unsecured Notes due 2006 B1 B1 LGD5 80% US$200,000 7.20% Senior Unsecured Notes due 2026 B1 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%). Headquartered in New Orleans, Louisiana, Freeport-McMoRan Copper & Gold, Inc. -- http://www.fcx.com/-- through its subsidiaries, engages in the exploration, mining, and production of copper, gold, and silver. The company has operations in Indonesia. GOODYEAR TIRE: Moody's Changes Rating Outlook to Negative --------------------------------------------------------- Moody's Investors Service has affirmed Goodyear Tire & Rubber Company's B1 Corporate Family rating, but changed the outlook to negative from stable. At the same time, the company's Speculative Grade Liquidity rating was lowered to SGL-3 from SGL-2. These rating actions reflect the increased operating uncertainty arising from the ongoing United Steelworkers strike at Goodyear's North American facilities, and the company's decision to increase cash on hand by drawing-down US$975 million under its domestic revolving credit facility. In the short-term, the extraordinary borrowing confirms liquid resources at the company's disposal, but does so by increasing gross leverage and carrying costs while labor negotiations in its critical North American market remain unresolved. Goodyear's pro forma global cash position of US$2.3 billion limits any near-term default probability, and the anticipated investment of the revolver proceeds in money market securities does not alter its net debt position. However, the uncertain outcome of any negotiations with the USW, the resultant impact on Goodyear's North American cost structure and competitive position, and the potential disruption to its tire production and customer relationships create an additional degree of near- term risk for Goodyear's credit stature. In Moody's view, the decision to draw under the credit facility may reflect the extent of the gap between the parties and the time frame in which a conclusion might be reached. Should the USW negotiations be concluded in a timely and constructive manner, it is likely that the rating outlook would be changed to stable and the Speculative Grade Liquidity rating raised to SGL-2. Ratings affirmed: Goodyear Tire & Rubber Company PDR: B1 * first lien credit facility, Ba1, LGD 2, 10% * second lien term loan, Ba3, LGD 3, 35% * third lien secured term loan, B2, LGD 4, 63% * 11% senior secured notes, B2, LGD 4, 63% * floating rate senior secured notes, B2, LGD 4, 63% * 9% senior notes, B2, LGD 4, 63% * 6 5/8% senior notes, B3, LGD 6, 94% * 8 1/2% senior notes, B3, LGD 6, 94% * 6 3/8% senior notes, B3, LGD 6, 94% * 7 6/7% senior notes, B3, LGD 6, 94% * 7% senior notes, B3, LGD 6, 94% * senior unsecured convertible notes, B3, LGD 6, 94% Goodyear Dunlop Tyres Europe * Euro revolving credit facilities, Ba1, LGD 2, 10% * Euro secured term loan, Ba1, LGD 2, 10% Ratings changed: Goodyear Tire & Rubber Company Speculative Grade Liquidity rating to SGL-3 from SGL-2 Goodyear's announcement of October 13 will increase debt/EBITDA to roughly 5.4 times on a pro forma basis from 5.0 times using June 30 results. Similarly, EBIT/interest would experience a minor deterioration from the 1.5 times achieved at the end of June. However, such calculations would presume a forward run- rate of earnings level with June LTM results. Weak replacement tire demand in North America, challenges to yield management from high and volatile commodity costs and surplus industry capacity, and publicly unspecified rates at which it can replenish tires sold from inventory while USW workers are on strike underscore risks to assumptions for future performance metrics. Moody's would expect Goodyear's international operations, which generate the preponderance of profits and cash flow, to continue to perform well. Any emerging changes to Goodyear's profile must also be considered in the context of the qualitative and quantitative progress the company has made over the last few years, and the room established within the current rating category for any immaterial relapse. While Goodyear currently has tires to satisfy customer requirements in North America, should that capacity diminish over time, its North American enterprise value and cash flows could deteriorate. While these risks are not imminent, they could appear on the horizon with greater certainty before year- end. A resolution of the labor negotiations could clarify the company's prospects beyond the next few weeks, but the time frame to expect an agreement is unknown. As a precaution, the outlook has been changed to negative. This could quickly be reversed should a resolution be announced, its terms assessed, and revolver borrowings unwound. The SGL-3 represents adequate liquidity over the next twelve months. The company's balance sheet resources have been substantially bolstered by the borrowing, but internal cash flow beyond the next few weeks is harder to predict. A labor agreement satisfactory to the company could also involve up- front restructuring expenditures. The trade-off to the increase in cash is the effective exhaustion of remaining unused commitments under the domestic revolving credit facility. The company will have comfortable headroom under its two financial covenants. But, over time, unknown EBITDA generation may start to erode this cushion. A near-term resolution of the labor dispute could also lead to a rapid change in the company's liquidity profile. Consequently, the Speculative Grade Liquidity profile has been lowered to SGL-3. Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company (NYSE: GT) -- http://www.goodyear.com/-- is the world's largest tire company. The company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries. It has marketing operations in almost every country around the world, including Indonesia, Australia, China, India, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan, and Thailand. Goodyear employs more than 80,000 people worldwide. The company's Asia Pacific headquarters is in Shanghai, China. * * * Fitch affirmed The Goodyear Tire & Rubber Company's Issuer Default Rating at 'B'; US$1.5 billion first lien credit facility at 'BB/RR1'; US$1.2 billion second lien term loan at 'BB/RR1'; US$300 million third lien term loan at 'B/RR4'; US$650 million third lien senior secured notes at 'B/RR4'; and Senior Unsecured Debt at 'CCC+/RR6'. Moody's Investors Service assigned a B3 rating to Goodyear Tire & Rubber Company's US$400 million ten-year senior unsecured notes. Moody's also gave the company a B1 corporate family rating. Standard & Poor's Ratings Services assigned its 'B-' rating to Goodyear Tire & Rubber Co.'s US$400 million senior notes due 2015 and affirmed its 'B+' corporate credit rating. HILTON HOTELS: 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 gaming, lodging and leisure sectors, the rating agency confirmed its Ba2 Corporate Family Rating for Hilton Hotels Corporation. 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 ---------- ------- ------- ------ ---------- Senior Notes with an average rate of 8.1% due 2007 - 2031 Ba2 Ba2 LGD4 53% Chilean inflation indexed note effective rate 7.65% due 2009 Ba2 Ba2 LGD4 53% 3.375% Contingently convertible senior notes due 2023 Ba2 Ba2 LGD4 53% Minimum Leases Commitments Ba2 Ba2 LGD4 53% Term Loan A at adjustable rates due 2011 Ba2 Ba2 LGD4 53% Term Loan B at adjustable rates due 2013 Ba2 Ba2 LGD4 53% Revolving loans at adjustable rates, due 2011 Ba2 Ba2 LGD4 53% Senior unsecured debt shelf Ba2 Ba2 LGD4 53% Subordinate debt Shelf Ba3 B1 LGD6 97% Preferred B1 B1 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%). Headquartered in Beverly Hills, California, Hilton Hotels Corp. -- http://www.hilton.com/-- together with its subsidiaries, engages in the ownership, management, and development of hotels, resorts, and timeshare properties, as well as in the franchising of lodging properties in the United States and internationally, including Indonesia, Australia, India, Trinidad and Tobago, Philippines and Vietnam. NUTRO PRODUCTS: Moody's Assigns Loss-Given-Default Ratings ---------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. Consumer Products sector, the rating agency confirmed its B2 Corporate Family Rating for Nutro Products, Inc. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on the company's loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$100 million Sr. Secured Revolving Credit Facility Due Jan. 26, 2012 B1 Ba3 LGD2 29% US$470 million Sr. Sec. Term Loan Due July 26, 2013 B1 Ba3 LGD2 29% US$165 million Sr. Flt. Rt. Global Notes Due Oct. 15, 2013 B3 B3 LGD5 75% US$150 million 10.750% Sr. Sub. Global Notes Due April 15, 2014 Caa1 Caa1 LGD6 91% 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 City of Industry, California, Nutro Products, Inc. -- http://www.nutroproducts.com/-- formulates and manufactures dry and canned food, biscuits, and treats for dogs and cats. The company's brand names include Natural Choice, MAX, and Gourmet Classics. Its products are available in feed stores and pet supply shops, such as Petco and PetSmart, across the US and Canada. Nutro's products are also distributed worldwide, including Indonesia, Peru and Austria, among others. ========= J A P A N ========= ALIXPARTNERS LLP: Completes Leveraged Recapitalization ------------------------------------------------------ AlixPartners LLP has completed a recapitalization in which affiliates of Hellman & Friedman LLC made a significant investment in the firm and AlixPartners' 81 managing directors, along with the remainder of its more than 500 employees, also gained a considerable stake in the enterprise. Together, they now hold a majority interest in the private firm. Jay Alix, who founded the firm in 1981, remains as co-chairman and continues to hold a substantial equity interest in the firm. The other co-chairman is Philip Hammarskjold of Hellman & Friedman. Michael Grindfors continues as CEO. Under terms of the agreement, each of AlixPartners' managing directors was given the opportunity to roll over some of the value of his or her existing interests in the firm into new equity in the recapitalized organization. All elected to do so. In addition, all current employees other than managing directors will participate in a "phantom equity" program. "This transition in the firm's ownership will help prepare for the next phase of AlixPartners' growth and global expansion," said Mr. Grindfors. "I'm particularly pleased that every single MD has decided to join in the recapitalization. That demonstrates our team's strong commitment to our business and our future." At the time the recapitalization was announced, on Aug. 4, the firm noted that it has enjoyed 25 years of uninterrupted revenue growth. In the last 10 years, AlixPartners has grown from two offices in the U.S. to 12 offices in North America, Europe and Asia, with affiliations in South America and Australia, and has achieved organic growth averaging more than 30 percent annually during that time. More than half of its revenue today comes from providing services to healthy companies seeking performance improvement, IT transformation and financial advisory services. About Hellman & Friedman Headquartered in San Francisco, CA, U.S.A., Hellman & Friedman LLC -- http://www.hf.com/-- focuses on investing in superior business franchises and as a value-added partner to management in select industries including financial services, professional services, asset management, software and information, media and energy. Recent investments include: Activant Solutions Inc., Artisan Partners Limited Partnership, DoubleClick, Inc., Gartmore Investment Management plc, GeoVera Insurance Group Holdings, Ltd., LPL Holdings, Inc., Mondrian Investment Partners, Ltd., The Nasdaq Stock Market, Inc. (NDAQ), Texas Genco LLC, Vertafore, Inc. and VNU N.V. About AlixPartners LLP AlixPartners LLP -- http://www.alixpartners.com/-- provides business consulting and advisory firm services in five areas: consulting services financial advisory; performance improvement; turnaround and restructuring; case management; and information technology. The firm has more than 500 employees, with offices in Tokyo, Chicago, Dallas, Detroit, Duesseldorf, London, Los Angeles, Milan, Munich, New York, Paris and San Francisco. * * * As reported in TCR-AP on Sept. 19, Standard & Poor's Ratings Services assigned its 'BB-' corporate credit rating and stable outlook to Southfield, Michigan-based business consulting firm AlixPartners LLP. At the same time, S&P assigned its 'BB-' bank loan rating and recovery rating of '3' to AlixPartners' US$435 million senior secured credit facility, indicating an expectation of meaningful (50%-80%) recovery of principal in the event of a payment default. The credit facility consists of a US$50 million revolving credit facility due 2012 and a US$385 million term loan B due 2013. Moody's Investors Service assigns a B1 first time rating to AlixPartners LLP proposed US$435 million senior secured credit facility -- US$385 million term loan and US$50 million revolver -- and a B1 corporate family rating. The ratings for the secured credit facility reflect both the overall probability of default of the company, to which Moody's assigns a PDR of B2, and a loss given default of LGD 3 for the credit facility. The rating outlook is stable. BANK OF FUKUOKA: Moody's Affirms D+ Bank Fin'l Strength Rating -------------------------------------------------------------- Moody's Investors Service has affirmed The Bank of Fukuoka, Ltd.'s A3 long-term deposit rating, Prime-2 short-term deposit rating, A3 issuer rating, Baa1 subordinated convertible bond rating and D+ bank financial strength rating. The rating outlook remains stable. This affirmation follows the bank's announcement of its planned purchase of JPY7 billion of new common stock to be issued by Kyushu-Shinwa Holdings, Inc. (Kyushu Shinwa Holdings, the holding company of The Shinwa Bank, Ltd.; neither entity is rated by Moody's). The affirmation of Bank of Fukuoka's ratings is based on Moody's view that the JPY7-billion investment will not have a material impact on the bank's credit fundamentals. Also, the rating action is predicated on the bank's announcement that it intends to make a moderately close business tie-up with Kyushu Shinwa Holdings, not a full business integration. Going forward, if Bank of Fukuoka's relationship with Kyushu Shinwa Holdings were to change, such as through additional capital injection or a business integration, it could potentially have a downward impact on the ratings. The Bank of Fukuoka, Ltd., is headquartered in Fukuoka. Its consolidated total asset size was approximately JPY7.7 trillion as of March 2006. BANK OF FUKUOKA: Fitch Affirms 'C' Individual Rating ---------------------------------------------------- Fitch Ratings has affirmed the ratings of Bank of Fukuoka as follows: -- Long-term foreign and local currency Issuer Default ratings at 'BBB+' with Positive Outlook; -- Short-term foreign and local Currency IDRs at 'F2'; -- Individual at 'C'; and -- Support '2'. The affirmation follows Fukuoka's announcement late last week on its plan to inject JPY7 billion of capital to Kyushu Shinwa Holdings which owns 100% of Shinwa Bank. By the end of this month, Fukuoka will become the largest shareholder of the Holdings with a 13% stake. The agency notes that the impact on Fukuoka's total capital ratio (9.65% at end-March 2006) would be limited to 15bp of its risk weighted assets. Fukuoka's ratings affirmation reflects the limited impact on the bank's ongoing improvement in its capital quality. The agency continues to maintain a Positive Rating Outlook on Fukuoka based on the bank's increasingly strong position in Japan's westernmost island of Kyushu, which is seen as a necessary platform for the bank to grow. In 2002, Shinwa Bank and Kyushu Bank, both based in Nagasaki Prefecture, consolidated under the Holdings and subsequently in 2003, the subsidiary banks merged. Earlier in 2002, the government injected JPY30 billion public funds to Kyushu Bank, which was transferred to the Holdings after the consolidation. Shinwa as well as the predecessor banks have been suffering from problem loans and provisioning. Shinwa posted a net loss for the half-year ended September 2006 after a ballooned provisioning of nearly five times its earlier projection for the period. Accordingly, the Holdings posted net loss of JPY41 billion which accounted for over 40% of its Tier 1 capital at end-March 2006. For end-September 2006, Fitch estimates the Holdings' Tier 1 ratio to be below 4% and its total ratio to be less than 6%. In addition to Fukuoka's subscription to the Holding's common stocks, Jay Will Partners, a Japan-based recovery fund, will inject JPY23 billion in the form of preferred stocks to the Holdings. The total injection would raise the Holding's Tier 1 ratio back to a near 6% and its total ratio to a near 8%. The capital injection and business tie-up with Fukuoka are favorable to Shinwa's ratings. The agency will closely monitor the performance of Fukuoka and speed of disposal of problem loans before raising Shinwa's 'E' Individual rating. Fukuoka and Kumamoto Family Bank plan to establish a holding company, Fukuoka Financial Group, in April 2007. Fukuoka has so far taken over Kumamoto Family's Tier 1 public funds earlier this year (JPY30 billion face value). Fukuoka, established in 1945, is the fourth-largest operating bank among Japan's regional banks in terms of assets. Fukuoka has a loan market share in Fukuoka Prefecture of c.30%. Kumamoto Family is relatively small in asset size but its loan share stands at c.20% in Kumamoto Prefecture. Including Shinwa's over 30% loan market share in Nagasaki, Fukuoka's market share in pan-Kyushu would be 20%, and in terms of aggregated assets, the group will become the largest regional banking group in Japan. RAMBUS INC: Appoints David Shrigley as Independent Director ----------------------------------------------------------- Rambus Inc. appointed David Shrigley as an independent director to its board of directors. Mr. Shrigley was also appointed to the compensation committee of the Board. "Dave brings exceptional sales and marketing expertise to the Rambus board and we are delighted to have the benefit of his insight," Kevin Kennedy, chairman of the board of directors, said. "Dave's accomplishments include helping Intel emerge as a leading semiconductor company as well as being a key leader in Bay Networks' rise in the networking space. We look forward to his input as execute on our strategy of bringing world-class technology solutions to the marketplace." Mr. Shrigley served as a general partner at Sevin Rosen Funds, a venture capital firm, from 1999 to 2005. Prior to which, he held the position of executive vice president, Marketing, Sales and Service at Bay Networks. Mr. Shrigley served in various executive positions during his 18 years at Intel, including vice president and general manager of Asia Pacific Sales and Marketing Operations based in Hong Kong, and vice president and general manager, Corporate Marketing. Mr. Shrigley holds a bachelor's degree from Franklin University in Columbus, Ohio. He also serves on the board of SPI Lasers PLC. Headquartered in Los Altos, California, Rambus Inc., (NASDAQ: RMBS) -- http://www.rambus.com/--is a technology licensing company specializing in the invention and design of high-speed chip interfaces. The company has regional offices in Japan, India, Germany, and Taiwan. Rambus, Inc., on Sept. 8, 2006, received a notice of purported defaults from U.S. Bank National Association, trustee for the company's Zero Coupon Convertible Senior Notes due 2010. The Notice asserted that the company's failure to file its Form 10-Q for the quarter ended June 30, 2006 constituted defaults under Sections 7.2 and 14.1 of the Indenture between the company and the Trustee governing the Notes. The Notice indicated that if the company does not cure these purported defaults under the Indenture within sixty days of Aug. 17, 2006 an Event of Default would occur. The company believes that it is not in default under the terms of the Indenture. SHINWA BANK: Fitch Affirms 'E' Individual Rating ------------------------------------------------ Fitch Ratings has affirmed Shinwa Bank's ratings at Individual 'E' and Support '3'. The affirmation follows Bank of Fukuoka's announcement late last week on its plan to inject JPY7 billion of capital to Kyushu Shinwa Holdings, which owns 100% of Shinwa. By the end of this month, Fukuoka will become the largest shareholder of the Holdings with a 13% stake. In 2002, Shinwa Bank and Kyushu Bank, both based in Nagasaki Prefecture, consolidated under the Holdings and subsequently in 2003, the subsidiary banks merged. Earlier in 2002, the government injected JPY30 billion public funds to Kyushu Bank, which was transferred to the Holdings after the consolidation. Shinwa as well as the predecessor banks have been suffering from problem loans and provisioning. Shinwa posted a net loss for the half-year ended September 2006 after a ballooned provisioning of nearly five times its earlier projection for the period. Accordingly, the Holdings posted net loss of JPY41 billion which accounted for over 40% of its Tier 1 capital at end-March 2006. For end-September 2006, Fitch estimates the Holdings' Tier 1 ratio to be below 4% and its total ratio to be less than 6%. In addition to Fukuoka's subscription to the Holding's common stocks, Jay Will Partners, a Japan-based recovery fund, will inject JPY23 billion in the form of preferred stocks to the Holdings. The total injection would raise the Holding's Tier 1 ratio back to a near 6% and its total ratio to a near 8%. The capital injection and business tie-up with Fukuoka are favorable to Shinwa's ratings. The agency will closely monitor the performance of Fukuoka and speed of disposal of problem loans before raising Shinwa's Individual rating. Fukuoka and Kumamoto Family Bank plan to establish a holding company, Fukuoka Financial Group, in April 2007. Fukuoka has so far taken over Kumamoto Family's Tier 1 public funds earlier this year (JPY30 billion face value). Fukuoka, established in 1945, is the fourth-largest operating bank among Japan's regional banks in terms of assets. Fukuoka has a loan market share in Fukuoka Prefecture of c.30%. Kumamoto Family is relatively small in asset size but its loan share stands at c.20% in Kumamoto Prefecture. Including Shinwa's over 30% loan market share in Nagasaki, Fukuoka's market share in pan-Kyushu would be 20%, and in terms of aggregated assets, the group will become the largest regional banking group in Japan. TIMKEN CO: Plans to Exit Seamless Steel Tube Manufacturing in UK ---------------------------------------------------------------- The Timken Company disclosed its intention to exit its European seamless steel tube manufacturing operations located in Desford, England, as part of its strategy to manage its business portfolio to improve performance. Timken will begin consultations with representatives of the 400 associates located at the Desford facility to explore alternative solutions to closure. "The proposed action is part of the company's strategy to focus on lines of business that produce differentiated products while driving profitable growth," said Salvatore J. Miraglia, Jr., president of Timken's Steel Group. "Exiting this business would further advance the focus of the Steel Group on differentiated products that deliver value to both customers and shareholders." The Desford facility generated sales of approximately US$85 million to US$95 million in recent years but has not been profitable. It manufactures seamless steel tube for machining and mechanical applications, primarily serving the bearing industry in Europe. In conjunction with the proposed exit of the business, Timken would intend to sell some portion of the plant's assets and secure a reliable alternative source of steel tube for its European bearing operations. Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR) -- http://www.timken.com/-- is a manufacturer of highly engineered bearings and alloy steels. It also provides related components and services such as bearing refurbishment for the aerospace, medical, industrial and railroad industries. The company has operations worldwide, including in Japan, Australia, Brazil, China, France, Germany, Hungary, India, Korea, Singapore, Taiwan, Turkey and Venezuela and employs 27,000 employees. * * * The company's 7.16% Medium-Term Notes, Series A due 2027 carry Moody's Investors Service's Ba1 rating. ========= K O R E A ========= BURGER KING: 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 restaurant sector, the rating agency revised its Corporate Family Rating for Burger King Corporation to Ba3 from Ba2. Additionally, Moody's held its Ba2 ratings on the company's $150 million Senior Secured Revolver Due 2011 and US$250 million Senior Secured Term Loan A Due 2011. Moody's assigned those loan facilities an LGD3 rating suggesting lenders will experience a 35% loss in the event 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%). About Burger King The Burger King(R) system (NYSE: BKC) -- http://www.bk.com/-- operates more than 11,100 restaurants in all 50 states and in more than 65 countries and U.S. territories worldwide, including Australia, China, Hong Kong and Korea. Approximately 90% of BURGER KING restaurants are owned and operated by independent franchisees, many of them family-owned operations that have been in business for decades. KOOKMIN BANK: To Hold 2006 3rd Quarter Conference on Oct. 30 ------------------------------------------------------------ Kookmin Bank will hold its 2006 Third Quarter Earnings Conference on October 30, 2006, the company said in a regulatory filing with the United States Securities and Exchange Commission. The conference will be Web-cast live in Korean and English throughout the world in the company's Web site -- http://www.kbstar.com/ After the presentation, there will be a Q&A session where investors can participate by telephone at these numbers, using these codes: -- from overseas: 82-31-810-3001 or 82-2-6677-2256 -- from Korea: 1566-2256 or 031-810-3001 -- Pass Code: 6412 -- Q&A Code: 14 About Kookmin Bank Kookmin Bank -- http://inf.kbstar.com/-- provides various commercial banking services, such as deposits, credit cards, trust funds, foreign exchange transactions, and corporate finance. The bank also offers Internet banking services. * * * Moody's Investors Service gave Kookmin Bank a Bank Financial Strength rating of D+ effective March 27, 2006. Fitch Ratings gave the bank a B/C rating. * Korean Economy Estimated to Grow 4.3% in 2007 ----------------------------------------------- Korea's economy will grow 4.3% in 2007, slowing from this year's estimated 5% growth, the Korean Government said on its Web site, citing a report by the Korea Development Institute. "The economy is continuing it slowing pace. Industrial output gain and service sector growth are losing their upward momentum," the KDI report noted. The government's projection for 2007 economic growth is however lower than that of KDI's -- 4.6%. The KDI believes economic slowdown is likely to continue but the pace will not fall sharply if the North Korean nuclear crisis does not worsen. For this year, KDI cut its growth projection to 5% from the previously projected 5.1%. The institute cites slowing domestic consumption for the reduction. =============== M A L A Y S I A =============== LITYAN HOLDINGS: High Court Grants 90-day Restraining Order ----------------------------------------------------------- The Troubled Company - Reporter Asia Pacific reported on April 17, 2006, that the High Court of Malaya gave Lityan Holdings Berhad and its subsidiaries a 180-day extension of the restraining order from April 12 to October 10, 2006. In an update, the High Court of Malaya granted a further extension of the restraining order, for a period of 90 days effective from October 10, 2006, to January 8, 2007, to Lityan and its subsidiaries, which are: * Digital Transmission Systems Sdn Bhd; * Hi Pro Edar (M) Sdn Bhd; * Imagebase Sdn Bhd; * Imageword (M) Sdn Bhd; * Impianas Sdn Bhd; * Integrated Telecommunication Technology Sdn Bhd; * Konsortium Jaya Sdn Bhd; * Lityan Foreign Equities Sdn Bhd; * Lityan Management Sdn Bhd; * Lityan Marketing Sdn Bhd; * Lityan Overseas Sdn Bhd; * Lityan Systems Sdn Bhd; * Sistem Komunikasi Gelombang Sdn Bhd; * Slam Atomised Metal Sdn Bhd; * Kirium Solutions Sdn Bhd; * KJ Mobidata Sdn Bhd; * KJ Telecommunications Sdn Bhd; * Advanced Business Solutions (M) Sdn Bhd; * Teem Business Solutions Sdn Bhd; and * Lityan Applications Sdn Bhd. Moreover, previous TCR-AP reports stated that the Restraining Order was obtained in order to facilitate the Company's Proposed Restructuring Scheme, which involves: -- the proposed acquisition of Guanhong Group; -- the proposed scheme of arrangement with shareholders; -- the proposed scheme of arrangement with creditors; -- the proposed issuance of 50,000,000 new NewCo shares to the existing shareholders of Lityan and identified investors and the public at a minimum issue price of MYR1.00 per share; -- the proposed offer for sale of up to 70,000,000 NewCo Shares to the existing shareholders of Lityan and eligible investors to be identified in order to meet the public spread requirement as stipulated under the Listing Requirements of Bursa Securities; -- the proposed transfer of listing status of Lityan to the NewCo; and -- proposed disposal of the entire issued and paid-up share capital of Lityan comprising 5,140,300 Lityan Shares to the Lityan Group Purchaser at a fair value to be determined by an independent valuer and auditor. 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. PARACORP BERHAD: Subsidiaries Ink Sale and Purchase Agreements -------------------------------------------------------------- Preciplast Sdn Bhd and Capxon Electronic (M) Sdn Bhd, wholly owned subsidiaries of Paracorp Berhad, have entered, on October 11, 2006, into a sale and purchase agreements with: -- Supreme Return Sdn Bhd, to dispose 100 ordinary shares at MYR1.00 each in Gandingan Pelangi (M) Sdn Bhd, a wholly owned subsidiary of Preciplast, for a cash consideration of MYR1.8 million. This will also settle GPSB's indebtedness to Paracorp and Preciplast by SRSB; and -- Sin Yeap Holdings (M) Sdn Bhd, to dispose the Kapar freehold land held under H.S.(M) 12716, Lot PT No. 17761, locality of Batu 5, Jalan Kapar, Mukim of Kapar, District of Klang, State of Selangor Darul Ehsan for a cash consideration of approximately MYR1.9 million. The consideration of MYR1.8 million for the ordinary shares was arrived at a "willing-buyer willing-seller basis" and after taking into consideration the market value of the GPSB Land of MYR4 million as appraised by PPC International Sdn Bhd, an independent valuer appointed to undertake the market valuation of the GPSB Land. Moreover, Kapar Land's consideration price of MYR1.9 million was arrived at a willing-buyer willing-seller basis and after taking into consideration the market value at MYR2 million as appraised by PPC International Sdn Bhd, an independent valuer appointed to undertake the market valuation of the Kapar Land. It contains a single storey detached factory with two-storey office building annex and has been operating for approximately five years. The sale and purchase of the shares is subject to and conditional upon the fulfillment of these conditions: (i) the approval of the Board of Directors of GPSB for the transfer of the shares in accordance with the terms and conditions of the sale and purchase agreement; (ii) waiver from the Securities Commission from compliance with Chapter 12 of the SC Guidelines for the Proposed Disposal of GPSB; and (iii) the delivery by Preciplast to SRSB of the redemption statement from the Alliance Merchant Bank Berhad stipulating the amount required for the redemption. In the event that the redemption amount shall exceed MYR4 million, Paracorp shall forward to SRSB its irrevocable undertaking to pay AMBB the excess; and (iv) the delivery by Preciplast to SRSB of an irrevocable letter of undertaking from Paracorp to redeem the GPSB Land from AMBB and confirming that the payment of the purchase consideration, Paracorp Debt and Debt are to be utilized by the stakeholder -- solicitors to SRSB -- in the redemption; Within 90 days from the date of the sale and purchase agreement with further extension of 30 days, the sale and purchase agreement is subject to full realization of the conditions by Capxon, which are: (i) waiver from the Securities Commission from compliance with Chapter 12 of the SC Guidelines for the Proposed Land Disposal; (ii) approval from shareholders of Paracorp, being the holding company of Capxon; (iii) Capxon to obtain and deliver to SYHSB's solicitor an original duly executed letter of undertaking from Capxon's financier that it is willing to discharge the Kapar Land for a sum of MYR1.9 million only and the remaining balance shall be reverted back to Capxon; and (iv) the release and execution of all discharge documents from Capxon's financier for the Kapar Land upon the balance purchase consideration of MYR1.71 million excluding deposit amount of MYR190,000 being paid to Capxon's financier. The Proposed Disposals will not have any impact on the share capital of Paracorp or the shareholdings of its substantial shareholders, as they will be satisfied entirely in cash. About Paracorp Paracorp Berhad's principal activities are the manufacture and trading of printed graphic overlay, printed electronic circuits, electroluminescent display, telemetry monitoring system, electronic circuit components, corrugated plastic sheets, corrugated carton boxes and plain boards. Its other activities include the provision of management services, investment holding, property investment, property management, money lending, technology management and research and development services. The Group operates in Malaysia, Oceanic countries, European countries, American countries and other Asian countries. The Company has been incurring losses in the past. For the quarter ended March 31, 2006, the Company recorded a net loss of MYR12.3 million. As of March 31, 2006, the Company's balance sheet revealed total assets of MYR106,347,000 and total liabilities of MYR110,465,000, resulting in a MYR41,180,000 stockholders' deficit. The Company is also classified under Practice Note 17 of Bursa Malaysia Securities Berhad's Listing Requirements. As an affected listed issuer, the Company is required to submit a financial regularization plan by January 7, 2007. PAXELENT CORPORATION: Served with a Notice to Pay Judgment Sum -------------------------------------------------------------- Paxelent Corporation Berhad has been served with a Notice to Judgment Debtor of the Registration of a Foreign Judgment and a sealed copy of the Order dated August 10, 2006, by the Johor Bahru High Court. This was in relation to the proceedings commenced by Malayan Banking Berhad against the Company. The Order is for the registration of the Judgment obtained by Malayan Banking against the Company before the High Court of the Republic of Singapore on April 19, 2002, and in respect of a balance judgment sum equal to MYR12,120,417.70 owed by the Company. The Company has referred the matter to its solicitors for advice and further action. About Paxelent Corporation Paxelent Corporation is engaged in investment holding. The principal activities of the subsidiaries are property investment, provision of information technology solutions, investment holding, marketing and sale of hard disk drive components. The Company is a public limited liability company, incorporated and domiciled in Malaysia, and is listed on the Second Board of Bursa Malaysia Securities Berhad. The Company is actively pursuing various restructuring schemes to address its default issues. These schemes would involve raising funds through partial disposal of assets, potential debts waivers and rescheduling of the debts. TENAGA NASIONAL: Won't Sell Coal Unit to Interested Buyers ---------------------------------------------------------- Tenaga Nasional Bhd will keep a majority stake in its coal- producing unit -- TNB Coal International Ltd -- even though it has received some attractive offers, Sharen Kaur of Business Times reports. Business Times notes that Tenaga Nasional holds 92.5% of TNB Coal, which has coal mining rights in Kalimantan, Indonesia. Tenaga Nasional had invested US$11.9 million (MYR43.91 million) in 2003 to purchase the stake and it made an advance payment of US$17 million (MYR62.73 million) to allow the mine to operate. The rest of the firm is held by coal mine concession owner Robert Priantono Bonosusatya. The report cites unidentified sources as saying that Tenaga Nasional has received some very attractive offers from third parties to buy over its shares in TNB Coal, but the group would likely continue holding a majority stake in the mine. It is believed that PT Adaro, Indonesia's largest coal producer, and PT Pamapersada Nusantara, have submitted offers to Tenaga Nasional, Business Times says. PT Adaro, the report states, wants to buy the mining stake in TNB Coal for US$23.75 million (MYR87.63 million). It plans to make an upfront payment of US$5.50 million (MYR20.29 million) and a deferred payment of US$18.25 million (MYR67.34 million) on a staggered basis. Pama, on the other hand, offered to buy TNB Coal by writing off Tenaga Nasional's investments and advances, totaling US$28.9 million (MYR106.64 million). "The TNB Coal investment has never been a losing concern despite newspaper reports stating [Tenaga Nasional] made losses of about MYR300 million from the venture. There has been a misunderstanding," Business Times cites the source as clarifying. The source said that Mr. Bonosusatya had a disagreement in payment of royalty by Tenaga Nasional, thus exposing the group to some potential losses. He gets royalty payments when the mines supply coal to Tenaga Nasional. The source said Tenaga Nasional will resolve all outstanding issues it has with its coal mine partners in Kalimantan amicably to turn its investment in TNB Coal into a profitable entity. About Tenaga Nasional Headquartered in Kuala Lumpur, Malaysia, Tenaga Nasional Berhad -- http://www.tnb.com.my/-- is engaged in the generation, transmission, distribution and sale of electricity. The Company also manufactures, sells and repairs transformers and switchgears. It is also involved in provision of project management, consultancy, engineering works, contracting, trading, risk management, risk surveys, insurance, research and development, property management, energy project development and investment holding services. It also undertakes repairs and maintenance of motor vehicles. The Group operates in Malaysia and Mauritius. The Company is currently undertaking liability management exercises, which are expected to extend the Company's debt maturity profile and reduce refinancing risk. Moody's gave the Company a 'Ba' rating due to its relatively high financial leverage and significant PPA obligations. ===================== N E W Z E A L A N D ===================== AIR NEW ZEALAND: Selects Swissport as Preferred Bidder ------------------------------------------------------ Swissport International and partner company Transfield Services New Zealand Ltd. agreed with Air New Zealand to be the preferred bidders in the potential outsourcing of Air New Zealand's ground handling operations at Auckland, Wellington, and Christchurch airports, Travel Daily News reports. Travel Daily says Swissport Chief Executive Officer Joseph In Albon confirmed the report. The report notes that the nomination is subject to contract after a 58-day consultation period between Air New Zealand and its labor unions. Travel Daily relates that the management of Air New Zealand has been conducting extensive studies over the past few months regarding a potential rearrangement of its present ground services at Auckland, Wellington, and Christchurch airports, including the issue of an international tender invitation to specialist ground handlers. According to the report, Air New Zealand is seeking to enhance the processes and cost structures concerned to ensure that it can continue to offer a competitive product at these three airports. Should the deal go ahead, it would cover passenger-and-ramp services at the airports for a period of up to 10 years handled by Air New Zealand's current workforce of 1,675 employees, Travel Daily says. The agreement follows a tender administered by Air New Zealand in a bid to improve service quality, reduce costs, and increase labor flexibility and competitiveness, Travel Daily relates. 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. AIR NEW ZEALAND: Unions to Fight Swissport Outsourcing Proposal --------------------------------------------------------------- Unions for more than 1,700 Air New Zealand staff will fight a proposal to outsource the work they do to a Spanish company, New Zealand Press Association reports. NZPA relates that Swissport International had put in a formal offer to provide frontline services for NZ$20 million a year less than current costs. NZPA cites Service and Food Workers Union spokeswoman Jill Ovens as saying that the union workers would be challenging Air New Zealand's assumptions that the contractor could do the job NZ$20 million cheaper. "We're also going to be putting pressure on the Air New Zealand board, which has got its AGM next week to basically get rid of this management -- they've run amok," Ms. Ovens says. Ms. Ovens asserts that it would be disastrous for the image of the national airline if they contracted out the frontline staff. Citing leaked documents, The Dominion Post reveals that Swissport could work in a joint venture with Australia-based Transfield Services to provide services including baggage handling and check-in work. According to the paper, the documents set a timetable to hand over operations to Swissport and the airline proposed "that all airport services at Auckland, Wellington, and Christchurch are outsourced to a specialist ground-handling provider, Swissport". Ms. Ovens said if the proposal is accepted it would mean full- time workers would each have to take an average pay cut of about NZ$15,000 a year, Dominion Post relates. Union to Hold Meetings The Dominion Post relates that stopwork meetings would be held this week and next week in Auckland, Wellington, and Christchurch to discuss a response to the proposal. About 1,750 workers from SFWU and the Engineering, Printing and Manufacturing Union would be attending the meetings. SFWU Workers May Go on Strike According to Alan Wood of The Dominion Post, Air New Zealand could face industrial action next week from more than 200 members of the Service and Food Workers Union unhappy at the way they are being treated under proposed cost-cutting moves. Swissport NZ could re-employ staff made redundant, but Air New Zealand had indicated to staff that their attendance record and references could influence that re-employment, Dominion Post cites one union leader, as saying. Stuff.co.nz cites another union leader as saying that the airline's staff had already helped put forward a proposal including more flexible practices. However, it was dismissed as too expensive. Dominion Post reveals that an alternative proposal from the unions identified potential savings of NZ$9.7 million, but Air New Zealand's assessment was the union scheme would save no more than NZ$1.2 million. According to Ms. Ovens, documents given to staff as part of a consultation process had left them feeling harried and mistreated. Andrew Little, of the Engineering, Printing and Manufacturing Union, said New Zealand Chief Executive Officer Rob Fyfe had, a month ago, asked for a submission on workers' ability to change work practices. Mr. Little recounts that Mr. Fyfe's emphasis was on flexibility rather than cost cutting, Dominion Post relates. 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. ADVANCE INTERIORS: Liquidation Petition Hearing Set on Nov. 6 ------------------------------------------------------------- The High Court at Hamilton will hear a liquidation petition filed against Advance Interiors & Construction Ltd on November 6, 2006, at 10:45 a.m. Amstar Interiors Ltd filed the petition on September 21, 2006. The Solicitor for the Petitioner can be reached at: P. P. Buetow Kensington Swan Solicitors 18 Viaduct Harbour Avenue Auckland, New Zealand BEN LOMOND: Creditors' Proofs of Claim Due on November 6 -------------------------------------------------------- On October 4, 2006, shareholders of Ben Lomond Spares Ltd, which is in liquidation, named Robert Laurie Merlo as liquidator for the company. Accordingly, Mr. Merlo requires the creditors to file proofs of claim by November 6, 2006, for them to share in any distribution the Company will make. The Liquidator can be reached at: Robert Laurie Merlo Merlo Burgess & Co. Limited P.O. Box 51-486, Pakuranga Auckland, New Zealand Telephone:(09) 520 7101 Facsimile:(09) 529 1360 E-mail: merloburgess&co@xtra.co.nz CAM-TRANZ CAMBRIDGE: Appoints Joint Liquidators ----------------------------------------------- On October 2, 2006, Dennis Clifford Parsons and Katherine Louise Kenealy were appointed as joint and several liquidators of Cam- Tranz Cambridge Ltd. The Troubled Company Reporter - Asia Pacific reported that the Commissioner of Inland Revenue filed a liquidation petition against the Company and was heard before the High Court of Hamilton on October 2, 2006. 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 CENTRAL EQUIPMENT: Names Joint Liquidators ------------------------------------------ On October 2, 2006, Dennis Clifford Parsons and Katherine Louise Kenealy were appointed as joint and several liquidators of Central Equipment Co. As reported by the Troubled Company Reporter - Asia Pacific, a liquidation petition file by the Commissioner of Inland Revenue against the Company was heard at the High Court of Hong Kong on June 6, 2006. 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 GENEVA FINANCE: Increases Profit from NZ$2.2 Mln to NZ$3.8 Mln -------------------------------------------------------------- Geneva Finance Ltd reported that its net profit after tax for the financial year ended March 31, 2006, rose to NZ$3.8 million from NZ$2.2 million the previous financial year, New Zealand Press Association relates. According to ShareChat News, the profit announcement for the March year coincided with the release of the company's latest prospectus and credit rating. As reported in the Troubled Company Reporter - Asia Pacific on May 3, 2005, Standard & Poor's Ratings Services assigned its 'B+' long-term counterparty credit rating on Geneva Finance with a stable outlook. The TCR-AP also reported that on July 27, 2006, Geneva Finance Limited has secured a NZ$30-million wholesale banking facility with BOS International, a member of the HBOS Australia Group. NZPA cites managing director Glenn Walker as saying the funding was a reflection of confidence in the company's risk management systems, policies, and processes. NZPA says the profit increase was achieved on revenue of NZ$39 million, up from NZ$21 million last year. Operating profit before tax increased from NZ$1.6 million to NZ$5.7 million, NZPA adds. Loan Receivables grew to NZ$110.88 million this year from NZ$54.62 million last year. Total Assets grew to NZ$142.25 million this year from NZ$63.52 million last year, NZPA reveals. About Geneva Finance Geneva Finance Limited -- http://www.genevafinance.co.nz/-- has 21 professionally branded retail finance branches throughout New Zealand to facilitate lending receivables collection and credit management -- mirroring the trading bank consumer retail distribution strategy while affording the company face-to-face contact with applicants and security evaluations. HAMILTON TIMBER: Names Parsons and Kenealy as Liquidators --------------------------------------------------------- On October 2, 2006, Hamilton Timber Processors (2000) Ltd appointed Dennis Clifford Parsons and Katherine Louise Kenealy as joint and several liquidators. As reported by the Troubled Company Reporter - Asia Pacific, the Commissioner of Inland Revenue's liquidation petition was heard before the High Court of Hamilton on October 2, 2006. 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 MAINLAND FARMS: Court Sets Liquidation Hearing on October 30 ------------------------------------------------------------ The High Court at Christchurch will hear a liquidation petition filed against Mainland Farms Ltd on October 30, 2006, at 10:00 a.m. Denny Holdings Ltd filed the petition on September 19, 2006. The Solicitor for the Petitioner can be reached at: Owen Godfrey Paulsen Cavell Leitch Pringle & Boyle Solicitors Level Fifteen, Clarendon Tower corner of Worcester Street and Oxford Terrace (P.O. Box 799), Christchurch New Zealand Telephone:(03) 379 9940 Facsimile:(03) 379 2408 MGAF FERTILISER: Court to Hear Liquidation Petition on Oct. 27 -------------------------------------------------------------- A petition to liquidate MGAF Fertiliser Ltd will be heard before the High Court at Wanganui on October 27, 2006, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition on September 19, 2006. The Solicitor for the Petitioner can be reached at: Kerri Ann Doherty Technical and Legal Support Group Wellington Service Centre First Floor, New Zealand Post House 7-27 Waterloo Quay (P.O. Box 1462) Wellington, New Zealand Telephone:(04) 890 1045 Facsimile:(04) 890 0009 PROSPOUT LTD: Creditors Must Submit Proofs of Debt by Nov. 2 ------------------------------------------------------------ Prospout Ltd on October 2, 2006, appointed joint liquidators Karen Betty Mason and Lloyd James Hayward to oversee the company's liquidation. In this regard, the Liquidators require the company's creditors to submit their proofs of claim by November 2, 2006. Failure to comply with the requirement will exclude a creditor from sharing in any distribution the company will make. The Joint Liquidators can be reached at: Karen Betty Mason Lloyd James Hayward Meltzer Mason Heath Chartered Accountants P.O. Box 6302, Wellesley Street Auckland 1141 New Zealand Telephone:(09) 357 6150 Facsimile:(09) 357 6152 SCRAPPYDOO METAL: Liquidation Petition Hearing Set for Oct. 20 -------------------------------------------------------------- A liquidation petition filed against Scrappydoo Metal Recyclers Ltd will be heard before the High Court at New Plymouth on October 20, 2006, at 10:oo a.m. Blackwoods Paykels filed the petition on September 18, 2006. The Solicitor for the Petitioner can be reached at: Dianne S. Lester c/o Credit Consultants Debt Services NZ Ltd Level Three, 3-9 Church Street (P.O. Box 213 or D.X. S.X. 10 069), Wellington New Zealand Telephone:(04) 470 5972 WORLD FIRST: Court to Hear Liquidation Petition on October 30 ------------------------------------------------------------- A petition to liquidate World First Imports Ltd will be heard before the High Court at Christchurch on October 30, 2006, at 10:00 a.m. Rainbow Confectionery Ltd filed the petition with the Court on August 14, 2006. The Solicitor for the Petitioner can be reached at: Kevin Patrick Mcdonald Eleventh Floor, Global House 19-21 Como Street (P.O. Box 331-065 or D.X. B.P. 66-086) Takapuna, Auckland New Zealand Telephone:(09) 486 6827 Facsimile:(09) 486 5082 ===================== P H I L I P P I N E S ===================== APEX MINING: Appeals MGB's Ruling in Favor of North Davao Mining ---------------------------------------------------------------- Apex Mining Co. has appealed the Mines and Geosciences Bureau's ruling declaring the company's mining claim in Davao "void and illegal," The Manila Times reports. The report cites Apex's statement as asserting that the MGB's decision, which favored North Davao Mining Corp., was a "mistake." The paper relates that in its motion for reconsideration, Apex argued that North Davao Mining's application for a financial and technical assistance agreement should be dismissed because it is "not based on valid and existing mining claims" in Monte de Oro in Compostella Valley. "This judicial mistake will only prolong the already tedious and long-delayed process to return NDMC to the private sector because we will definitely exhaust all legal remedies to protect our interest," Apex stated. According to Manila Times, Apex and NDMC have overlapping claims and the dispute has been with the regional panel of arbitrators since 1996. The paper says Apex has the option to question the ruling through the Mines Adjudication Board, the Court of Appeals, and the Supreme Court. "We have a strong case and are determined to take this all the way to Supreme Court, no matter how long this might drag," Apex asserted. Manila Times recounts that Crew Gold Corp., which owns 40% of the shares sold by the Puyat family in Apex, earlier offered to buy NDMC from the government before but was advised to participate in a bidding process to be handled by the state- owned Natural Resources Mining and Development Corp. However, there have been no signs that the bidding would happen anytime soon, the paper cites Apex, as saying. Apex said it is willing to invest more and take the risk even in the absence of a definitive survey on whether or not NDMC still has viable reserves left. According to Manila Times, Apex alleged that NDMC violated the law for failing to have tie points, or permanent markers, to clearly delineate its boundaries and prevent overlaps and conflicts. Apex also alleged that NDMC's mining claim is much larger than its previous area, the paper relates. About Apex Mining Apex Mining Company, Inc., is majority owned by Norwegian firm Crew Gold Corporation, which is based in the United Kingdom. It owns the Masara gold mine in Compostela Valley on the island of Mindanao. Apex Mining is a corporation that is principally engaged in the business of mining gold, silver, copper, lead and other precious metals. The Company was initially involved in copper mining and shifted to gold mining in the late 70s when copper prices started to plummet. After almost a decade of profitable operations, Apex shut down in March 1991 due to adverse conditions brought about by an illegal strike of its workforce. As peaceful and stable conditions were restored, Apex restored to a Mines Operating Agreement with a foreign-backed outfit. In the hope of getting back on track, the Company launched "Project 200" by the last quarter of 1997. This is to resume operations in the Masara mines using the company's own resources. The new system marked the use of "Corpo" or "Balbag" system, a viable alternative in the area of work relationships wherein the owner and the mines exist in a partner and industrial partner relationship. The Company's Operations were suspended on March 16, 2000, up to the present. However, a mine rehabilitation program was implemented starting July 2000 to re-access the measured ore blocks located at level 850 and level 930. There is a pending negotiation for a joint venture with Argonuat Mining Co., Inc., at 3780 Kilroy Airport Way, Suite 200, in Long Beach, California. The transaction is being delayed by the current peace and order situation in Mindanao. Apex Mining Co., Inc., incurred a net loss of PHP46 million for the year ended December 31, 2005. As of this date, the Company has accumulated a deficit of PHP1.037 billion while current liabilities exceed current assets by PHP86 million. APEX MINING: Board Authorizes Counsel to File Action with SSC ------------------------------------------------------------- At Apex Mining Company, Inc.'s Special Board Meeting held on October 16, 2006, the Board unanimously authorized Atty. Leo Cleto A. Gamolo, as the company's representative, to: (a) file an action or proceeding before the Social Service Commission or another government agency or institution in relation to SSS Case No. 12-16230-05; and (b) verify and sign for and on behalf of the company all necessary documents he may deem beneficial for Apex Mining's best interest. The company did not disclose the details of the Case in its filing with the Philippine Stock Exchange. About Apex Mining Apex Mining Company, Inc., is majority owned by Norwegian firm Crew Gold Corporation, which is based in the United Kingdom. It owns the Masara gold mine in Compostela Valley on the island of Mindanao. Apex Mining is a corporation that is principally engaged in the business of mining gold, silver, copper, lead and other precious metals. The Company was initially involved in copper mining and shifted to gold mining in the late 70s when copper prices started to plummet. After almost a decade of profitable operations, Apex shut down in March 1991 due to adverse conditions brought about by an illegal strike of its workforce. As peaceful and stable conditions were restored, Apex restored to a Mines Operating Agreement with a foreign-backed outfit. In the hope of getting back on track, the Company launched "Project 200" by the last quarter of 1997. This is to resume operations in the Masara mines using the company's own resources. The new system marked the use of "Corpo" or "Balbag" system, a viable alternative in the area of work relationships wherein the owner and the mines exist in a partner and industrial partner relationship. The Company's Operations were suspended on March 16, 2000, up to the present. However, a mine rehabilitation program was implemented starting July 2000 to re-access the measured ore blocks located at level 850 and level 930. There is a pending negotiation for a joint venture with Argonuat Mining Co., Inc., at 3780 Kilroy Airport Way, Suite 200, in Long Beach, California. The transaction is being delayed by the current peace and order situation in Mindanao. Apex Mining Co., Inc., incurred a net loss of PHP46 million for the year ended December 31, 2005. As of this date, the Company has accumulated a deficit of PHP1.037 billion while current liabilities exceed current assets by PHP86 million. LEPANTO CONSOLIDATED: SGV Appointed as New External Auditor ----------------------------------------------------------- Lepanto Consolidated Mining Company advises the Philippine Stock Exchange that on October 16, 2006, the company's Board of Directors, on the recommendation of the Audit Committee, approved the appointment of Sycip Gorres & Velayo as the company's new external auditor. * * * Lepanto Consolidated Mining Company -- http://www.lepantomining.com/-- was incorporated primarily to engage in the exploration and mining of gold, silver, copper, lead, zinc and all kinds of ores, metals, minerals, oil, gas and coal and their related by-products. The Company was incorporated in 1936 and until 1997 was operating an enargite copper mine. It shifted to gold bullion production that same year through its Victoria Project. Lepanto operated a copper flotation plant from August 2000 to December 2001, when copper operations were suspended due to the presence of excessive penalty elements in the mill feed and copper concentrate. Lepanto sells its gold bullion production to London's Johnson Matthey. Lepanto is now one of the country's top producers of gold and its by-products, copper and silver. The Company also has investments in other areas through its subsidiaries such as hauling business, diamond drilling business, insurance business, manufacturing of industrial diamond tools for mining exploration, marble cutting and the construction industry. The Troubled Company Reporter - Asia Pacific reported on January 27, 2006, that Lepanto Consolidated is working to recover from a PHP400-billion loss incurred in the past two years due to labor disputes. MANILA ELECTRIC: President Arroyo Orders Internal Review of WESM ---------------------------------------------------------------- President Gloria Arroyo has recently instructed the members of the Board of the Power Sector Assets and Liabilities Management Corporation to conduct an internal review of PSALM's trading processes and structure in the Wholesale electricity Spot market. The PSALM board members include: * Department of Finance, * Department of Energy, * Department of Trade and Industry, * Department of Justice, and * the National Economic Development Authority The government is making sure that the interest of the public remains its foremost concern, as the government continues to put high priority on the investigations into the power rates issues. Likewise, the Department of Energy maintains its strict vigilance on the WESM as the Administration continues to assert its goal of protecting the consumers and pursuing all institutional means to advance alternative sources of energy. Energy Secretary Raphael Lotilla says internal review of trading processes in WESM is meant to reinforce and not intended to preempt the on-going independent investigation being carried out by the Market Surveillance Committee. The President has instructed to make sure that the conduct of the investigation should be credible, independent, and transparent, Mr. Lotilla adds. Earlier, the passage of the biofuels bill by both houses of congress is a victory for the Philippines as this allows the government to begin the path towards eliminating the nation's extreme dependence on foreign oil by further developing and expanding the areas of alternative and renewable energy sources that can be used throughout the country. About Manila Electric Headquartered in Ortigas, Pasig City, the Manila Electric Company -- http://www.meralco.com.ph/-- is the largest utility in the Philippines, providing power to 4.1 million customers in metropolitan Manila and more than 100 surrounding communities. As deregulation takes effect, Meralco is reducing its dependence on state-owned National Power Corp. by increasing the amount of power it purchases from independent power producers. Meralco is also preparing for competition by moving into non-regulated activities, including energy consulting, independent power production, engineering, fiber optics, e-commerce, and real estate. * * * A March 31, 2006 report by the Troubled Company Reporter - Asia Pacific stated that the Company posted a 79.7% decrease in its 2005 net losses to PHP411 million from PHP2.03 billion in 2004, due to provisions for probable losses while awaiting a Supreme Court final decision on a pending unbundling rate case, and the adoption of new accounting standards. The TCR-AP further stated on April 27, 2006, that the Company filed a report with the Philippine Stock Exchange, indicating a 66.1% decline in its net loss from January to March 2006 to PHP748 million against a PHP2.2 billion loss for the same period in 2005. According to a subsequent TCR-AP report on April 24, 2006, Manila Electric cannot seek a loan to expand its facilities unless it repays outstanding short-term debts amounting to around PHP4.7 billion. METROPOLITAN BANK: Receives Neutral Rating from Macquarie --------------------------------------------------------- Macquarie Research Equities has rated Metropolitan Bank & Trust Co., "neutral," with a 12-month target price of PHP38, saying the bank needs to further clean up its balance sheet, Xinhua Financial News Service reports. According to the report, Macquarie's target price is the same level at which Metrobank is currently offering 174 million new and secondary shares to the public to raise additional capital. The offer price represents a 6.98% discount to the volume weighted average price of Metrobank shares of PHP40.85 per share for the 10 trading days ended October 10, 2006. The Inquirer relates that the bank has voluntarily asked for a shares trading suspension during the offer period, which ends October 25, 2006. "The new shares imply an 11% dilution to the existing shareholder base," Xinhua cites Macquarie analyst Gilbert Lopez, as saying, adding that the dilution means "any entry opportunity is best after the offer." Citing estimates for 2006, Mr. Lopez says Metrobank's headline bad-loan ratio would be the same as the sector average at 6.9%, while the foreclosure rate of 10.6% and restructured rate of 5.3% are "high even by the low standards of Philippine banks." Mr. Lopez expects Metrobank's equity offer to attract investors who are "hungry" for an alternative stock exposure in the Philippines. However, he notes that what investors would get is "a bank which still needs to undertake further clean-up," Inquirer relates. 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: Kicks Off Roadshows for Hybrid Issue -------------------------------------------------------------- As reported in the Troubled Company Reporter - Asia Pacific on October 11, 2006, Rizal Commercial Banking Corporation advised the Philippine Stock Exchange that the Bangko Sentral Pilipinas Monetary Board has approved RCBC's plan to issue up to US$100 million of Hybrid Tier 1 Notes. The joint bookrunners and joint lead managers for the issue are Citigroup and Credit Suisse, the TCR-AP said. In an update, a report from FinanceAsia relates that the notes will have a non-cumulative perpetual non-call 10-year structure, with a step up of 100 basis points over the initial credit spread if not called. According to the report, RCBC will kick off roadshows in Singapore today, October 18, 2006, before heading to Hong Kong on October 18, 2006, and London later in the week. The leads announce that pricing will follow the London roadshow, dependant on market conditions, FinanceAsia says. Last week, XFN-Asia reported that the Singapore Stock Exchange approved in principle the listing of the Notes. According to FinanceAsia, RCBC's perpetual bond issue is the third hybrid tier-1 transaction from a Philippine bank and is the newest bank capital-raising deal to emerge from a very active space in the Asian marketplace. As at July 2006, RCBC had a capital adequacy ratio of 14.98%, versus an equity to assets ratio of around 7%, FinanceAsia reveals. The sale of the bonds will increase its CAR to 18.55%, however it will more than likely decline as the bank adopts the international accounting criteria, FinanceAsia notes. The TCR-AP reported that on October 12, 2006, Fitch Ratings assigned an expected rating of 'B-' to RCBC'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. The TCR-AP subsequently reported that Moody's Investors Service has assigned a B3 rating to RCBC's (RCBC, E+/B1/NP) proposed issuance of USD-denominated perpetual securities, callable with a step-up feature in 2016. The rating outlook is negative, in line with the outlook on the Philippines' sovereign ratings. About RCBC Rizal Commercial Banking Corporation -- http://www.rcbc.com/-- is a universal bank principally engaged in all aspects of banking. It provides services such as deposit products, loans and trade finance, domestic and foreign fund transfers, treasury, foreign exchange and trust services. In addition, the Bank is licensed to enter into forward currency contracts to service its customers and as a means of reducing and managing the Bank's foreign exchange exposure. * * * Moody's Investors Service gave Rizal Commercial Banking a 'Ba3' Long-Term Bank Deposit Rating effective May 25, 2006. On September 21, 2006, the Troubled Company Reporter - Asia Pacific reported that Fitch Ratings affirmed RCBC's ratings at Long-term Issuer Default rating 'BB-', Individual "D/E" and Support "3" after a review of the bank. The Outlook of the Long-term rating is Stable. VULCAN INDUSTRIAL: Posts PHP72.75 Mln Deficit as of June 30 ----------------------------------------------------------- Vulcan Industrial & Mining Corporation's consolidated gross revenue for the six months ended June 30, 2006, amounts to PHP27.87 million compared with PHP21.30 million for the six months ended June 30, 2005, resulting to net loss after minority interest of PHP1.97 million compared to net loss after minority interest of PHP3.66 million in June 30, 2005. The Company's revenue was mainly derived from the sale of aggregates of subsidiary, Vulcan Materials Corporation, since Vulcan Industrial is concentrating on exploration activities and has no active mine at the moment. So far the results of the exploration work in Panaon Island are very encouraging, Vulcan Industrial notes. Vulcan Industrials' total cost and expenses increased to PHP31.84 million as of June 30, 2006, from PHP28.55 million as of June 30, 2005, due to the increase in the sales and increase in power cost. The company's total asset was PHP810.71 million as of June 30, 2006, 3.63% lower than the PHP841.32 million as of December 31, 2005. The inventories decreased due to the increase in sales and production during the period and only one out of two crushers was operating. Accounts receivable increased due to the increase in sales during the quarter. The decrease in investments in associates was used to partially pay the advances to related party and other payables. Deferred charges increased because of the costs incurred in various exploration activities. Liabilities were PHP283.55 million as of June 30, 2006, which is lower by 9.17% compared to PHP312.19 million on December 31, 2005. The decrease was due to the partial payment of some payables and advances to related party as of June 30, 2006. Deficit showed a balance of PHP72.75 million as of June 30, 2006, compared to PHP68.78 million on December 31, 2005. Vulcan Industrial's debt-to-equity ratio as of June 30, 2006, is 0.54:1 compared to a ratio of 0.59:1 as of December 31, 2005. The company's financial results for the period ended June 30, 2006, posted at the PSE is available for free at: http://www.pse.org.ph/html/ListedCompanies/pdf/2006/VUL_17Q_Jun2006.pdf Unpaid Metrobank Loan Vulcan Industrial also disclosed that a loan with Metropolitan Bank & Trust Co., bears interest of 12% per annum under: (a) a pledged agreement by the company; (b) a continuing surety agreement executed by the Company and certain stockholders; (c) an assignment of trade receivables and inventories; and (d) by chattel mortgage on certain machinery and equipment of VMC. VMC failed to pay the full amount of the monthly installments on the principal loan balances starting October 2003. On March 18, 2004, VMC was able to restructure the loan and the maturity of the loan has been extended to March 11, 2006. However, VMC was still unable to pay the loan as of May 12, 2006. About Vulcan Industrial Vulcan Industrial & Mining Corporation is engaged mainly in oil and mineral exploration projects. One of its successful ventures is the concrete aggregate project in Rodriguez, Rizal, which was spun-off into a joint venture company called Vulcan Materials Corporation. VMC is on its tenth year of rock aggregate quarrying, crushing and marketing. VMC has an edge over the other rock aggregates companies due to its captive market in D.M. Consunji, Inc., one of the giants in the construction industry, which owns 49% of VMC, the remaining 51% is owned by Vulcan Industrial. As of December 31, 2001, the Company is still in the exploration stage and no discovery of oil and gas in commercial quantities has been made. The full recovery of deferred petroleum exploration costs is dependent on the discovery of oil and gas in commercial quantities. * * * The Troubled Company Reporter - Asia Pacific reported that after auditing Vulcan Industrial's financial report for the year ended December 31, 2005, Sycip, Gorres, Velayo & Co. raised significant doubt on the Company's ability to continue operating as a going concern due to its difficulty in meeting its obligations to creditor banks. The Company and its subsidiary's current liabilities exceeded current assets by PHP227.1 million in 2005, and by PHP151.8 million in 2004, and its recurring losses are due to its share in the net losses of subsidiary Vulcan Materials Corp. VULCAN INDUSTRIAL: Signs Phelps & TVI Confidentiality Agreements ---------------------------------------------------------------- In a filing with the Philippine Stock Exchange Commission, dated October 12, 2006, Vulcan Industrial and Mining Corporation disclosed that it has signed a Confidentiality Agreement with Phelps Dodge Exploration Corporation - Philippine Branch. On October 6, 2006, Vulcan Industrial also signed a Confidentiality Agreement with TVI Resources. Pursuant to the Agreements, Phelps Dodge and TVI will review Vulcan Industrial's mining data for possible joint venture in the future. Not sure this statement is correct. This are the original: Please be informed that Vulcan Industrial and Mining Corporation has signed a Confidentiality Agreement with Phelps Dodge Exploration Corporation - Philippine Branch for the later to review its mining data for possible joint venture in the future. Please be informed that Vulcan Industrial and Mining Corporation has signed a Confidentiality Agreement with TVI Resources for the later to review its mining data for possible joint venture in the future. About Phelps Dodge Phelps Dodge Exploration Corporation is a subsidiary of Phelps Dodge International Corp. -- http://www.pdic.com/. Phelps Dodge International operates through a group of production facilities and sales units in 19 countries including the Philippines, manufactures and supplies world-class quality products for power, construction, oil and gas, mining, original equipment manufacturers, and telecommunications markets around the world. About Vulcan Industrial Vulcan Industrial & Mining Corporation is engaged mainly in oil and mineral exploration projects. One of its successful ventures is the concrete aggregate project in Rodriguez, Rizal, which was spun-off into a joint venture company called Vulcan Materials Corporation. VMC is on its tenth year of rock aggregate quarrying, crushing and marketing. VMC has an edge over the other rock aggregates companies due to its captive market in D.M. Consunji, Inc., one of the giants in the construction industry, which owns 49% of VMC, the remaining 51% is owned by Vulcan Industrial. As of December 31, 2001, the Company is still in the exploration stage and no discovery of oil and gas in commercial quantities has been made. The full recovery of deferred petroleum exploration costs is dependent on the discovery of oil and gas in commercial quantities. * * * The Troubled Company Reporter - Asia Pacific reported that after auditing Vulcan Industrial's financial report for the year ended December 31, 2005, Sycip, Gorres, Velayo & Co. raised significant doubt on the Company's ability to continue operating as a going concern due to its difficulty in meeting its obligations to creditor banks. The Company and its subsidiary's current liabilities exceeded current assets by PHP227.1 million in 2005, and by PHP151.8 million in 2004, and its recurring losses are due to its share in the net losses of subsidiary Vulcan Materials Corp. * Philippines will be Off IMF Monitoring in April 2007 ------------------------------------------------------ The International Monetary Fund will let the Philippines off its post-program monitoring in April, IMF country representative Reza Baquir says. The government has been working to bring this development about for some time. Mr. Baquir said at a media briefing on mid-2006 post-program monitoring, or PPM, discussions: "The end of the PPM is a sign of the economy's strength and a sign that vulnerabilities continue to fall. . .external viability continues to improve and it is a development that we will welcome." The PPM provides for more frequent consultations between the IMF and member countries whose funding arrangements have expired but which continue to have outstanding credit with the Fund. For the Philippines, it had been stretched out every year since 2001 as a buffer against the government's financial problems. Under this monitoring scheme, the IMF reviews the Philippine economic performance twice a year, the last of which was completed in early August. It can offer advice but may no longer impose on policy, like on public sector borrowings. In a report released on October 13, 2006, in Washington after the end of the mid-2006 PPM discussions, the IMF executive directors commended Philippine authorities for the country's strong macroeconomic performance -- including robust growth, moderating inflation, and an improved external position -- and for progress in structural reforms. "While stronger fundamentals have made the Philippines more resilient and less vulnerable to shocks, [the IMF] cautioned that important vulnerabilities remain," the report said. "Although on a declining path, the public debt is still high, with external commercial borrowing requirements continuing to be sizeable." * * * "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." * President Arroyo Welcomes Possible Rating Upgrade from Moody's ---------------------------------------------------------------- President Gloria Macapagal-Arroyo welcomed reports the Philippines may soon get a credit rating upgrade from Moody's Investors Service, even as she urged the Senate to speed up deliberations on the proposed 2007 budget, which she said would define the development agenda of the government. "We welcome the reports that the Philippines could be due for a credit rating upgrade from Moody's," Pres. Arroyo said in a speech at the 58th charter day of Calbayog City. "Fiscal discipline is winning the day for the Philippines and we urge the Senate to speed up deliberations on the budget so that we can show the world our determination to bring the fruits of reforms to the doorsteps of every Filipino," Pres. Arroyo added. Pres. Arroyo further said the administration's budget would not only define the government's development agenda, but would also signify the "payback" to the people of her administration's "tough reforms." Moody's is expected to upgrade its outlook on the Philippines from "negative" to "stable" by the end of the year. Moody's has retained its "negative" outlook on the Philippines among major international credit rating agencies. * * * "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: S&P Upgrades Corporate Credit Rating to BB from BB- ------------------------------------------------------------- Standard & Poor's Ratings Services raised its ratings on Dale, Illinois-based aviation support services provider AAR Corp., including the corporate credit to 'BB' from 'BB-'. The outlook is stable. About US$300 million of debt is outstanding excluding US$30 million of nonrecourse debt. "The upgrade is based on improved credit protection measures, benefiting from generally better industry environment, expanding scope of services, and increasing operating efficiency," said Standard & Poor's credit analyst Roman Szuper. The global airline industry continues to recover in 2006, spurred by a healthy economy and growing air traffic, although high oil prices have constrained gains at many air carriers. Profit increases in 2005 and 2006 and conversion of debt to equity strengthened credit protection measures to levels overall appropriate for the rating. 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. CHEERS HOLDINGS: Creditors' Proofs of Debt Due on November 6 ------------------------------------------------------------ Cheers Holdings Pte Ltd, which was placed under a members' voluntary liquidation, require creditors to submit their proofs of debt by November 6, 2006. Failure to comply with the requirement will exclude the creditor from sharing in the company's distribution of dividend. The liquidator can be reached at: Tee Ling Zhi c/o 680 Upper Thomson Road NTUC Fairprice Co-operative Singapore 787103 CONVENIENCE SHOPPER: Creditors Must Prove Debts by November 6 ------------------------------------------------------------- Tee Ling Zhi as liquidator for Convenience Shopper Pte Ltd, which was placed under a members' voluntary liquidation, requires creditors of the company to submit their proofs of debt by November 6, 2006. The Liquidator can be reached at: Tee Ling Zhi c/o 680 Upper Thomson Road NTUC Fairprice Co-operative Singapore 787103 HEXION SPECIALTY: Loan Refunding Prompts Moody's to Hold Ratings ---------------------------------------------------------------- Moody's Investors Service affirmed the long term debt ratings of Hexion Specialty Chemicals Inc. and changed the outlook on Hexion's ratings to stable from positive following the company's announcement that it plans to increase the size of its term loan to US$2 billion and refinance its second lien notes, increasing the outstanding amount by US$200 million. Hexion will use the additional proceeds to pay a US$500 million dividend to its existing shareholders. The changes to the capital structure will likely change the Loss Given Default assessments for Hexion's rated debt and may cause the ratings of the second lien debt and the company's small pollution control revenue bonds to be downgraded by one notch; this will be determined once the final structures and documentation are reviewed. Moody's also affirmed the company's SGL-2 speculative grade liquidity rating, but this is also subject to change depending on the covenants in the new credit facility. The B2 corporate family rating of Hexion reflects elevated leverage on a historical EBITDA basis, the expectation that cash flows will be reduced by pension contributions and ongoing restructuring costs, integration risk due to the pace of additional tuck-in acquisitions, and concern over financial metrics in the trough of the cycle. Hexion has significant pension liabilities and modest litigation exposure, which is unusual for a highly leveraged company. The ratings benefit from the company's size, product diversity, global operations and the anticipation of significant additional synergies. The company's metrics would map to the upper end of the "B" rating category using Moody's Chemical Industry ratings methodology. However, the pro forma averages may not adequately reflect the company's through-the-cycle performance. The stable outlook reflects the continuing solid operating environment for thermoset resins that has resulted in substantial earnings growth over the past year and the expectation that trailing debt to EBITDA will remain elevated at over 5x and free cash flow to debt will remain below 5% over the next two years. Moody's believes that 2006 EBITDA will be in excess of US$525 million excluding pro forma adjustments for ongoing acquisitions and planned synergies. Based in Columbus, Ohio, Hexion Specialty Chemicals Inc.-- http://hexionchem.com/-- makes thermosetting resins (or thermosets). Thermosets add a desired quality (heat resistance, gloss, adhesion) to a number of different paints and adhesives. Hexion also makes formaldehyde and other forest product resins, epoxy resins, and raw materials for coatings and inks. The company has 86 manufacturing and distribution facilities in 18 countries. The company has its Asian headquarters in Singapore, with offices in Australia, China, Korea, Malaysia, New Zealand, Taiwan, and Thailand. * * * Standard & Poor's Ratings Services assigned its 'B+' rating and its recovery rating of '3' to Hexion Specialty's US$1.675 billion senior secured term loan and synthetic letter of credit facilities. The rating on the existing US$225 million revolving credit facility was lowered to 'B+' with a recovery rating of '3', from 'BB-' with a recovery rating of '1', to reflect the similar security package as the new term loan and synthetic letter of credit facility. The ratings on the existing senior second secured notes were raised to 'B', with a recovery rating of '3', from 'B-' with a recovery rating of '5'. The ratings on the senior second secured notes reflect the amount of priority claims of the revolving facility and the first-lien term loan lenders. At the same time, Standard & Poor's affirmed its 'B+' corporate credit rating on Hexion and revised the outlook to stable from negative. LEUN WAH: Will Pay Dividend to Preferential Creditors on Oct. 27 ---------------------------------------------------------------- Leun Wah Electric Company (Private) Ltd, which is in liquidation, will pay the first and final dividend to its preferential creditors on October 27, 2006. The amount that will be paid to creditors' admitted claims is 100%. The company's liquidator can be reached at: Tam Chee Chong 6 Shenton Way #32-00 DBS Building Tower Two Singapore 068809 LIANG HUAT: Inks Variation Deed in the Investment Agreement ----------------------------------------------------------- Liang Huat Aluminium Limited has entered into a Variation Deed dated October 13, 2006, with Ho Lee Group Pte Limited to amend certain provisions in an Investment Agreement between both parties. Subsequent to the entry of the Variation Deed and pursuant to the terms of the Investment Agreement, Ho Lee Group has procured a co-investor, Lion Capital Group Limited, on October 13, 2006. This is in line with Ho Lee's strategy to develop Liang Huat's business in the People's Republic of China as Ho Lee believes that the sole director and shareholder of Lion Capital, Zou Jiaru, with her extensive business contacts and experience in China, will be a suitable strategic business partner for Liang Huat and will contribute to the Company's future growth and development in China. Lion Capital will only have rights under the Investment Agreement upon its completion and not prior to its completion. Upon the completion, Lion Capital shall pay Ho Lee the sum of SGD300,000 in consideration for the allotment and issuance of the number of new ordinary shares in the capital of Liang Huat representing 7.0% of the issued and paid-up share capital of Liang Huat at the date of completion. Moreover, upon the completion of the Investment Agreement, Liang Huat will also allot and issue the number of Investor Shares representing 63% instead of 70% of the Enlarged Share Capital to Ho Lee. Accordingly, Ho Lee and Lion Capital will collectively hold 70% of the Enlarged Share Capital upon the completion of the Investment Agreement. In the previous reports of TCR-AP, in the event of non- completion of the Investment Agreement, Lion Capital and Ho Lee, will be entitled to exercise the Conversion Option pursuant to the Investment Agreement, and upon the exercise, Liang Huat will allot and issue to Lion Capital and Ho Lee the Conversion Shares resulting in the holding of 29.0% of Liang Huat's issued share capital. However, Ho Lee and Liang Huat have now agreed that in the event of non-completion of the Investment Agreement, only Ho Lee will be entitled to exercise the Conversion Option pursuant to the Investment Agreement. Ho Lee and Liang Huat will amend the Investment Agreement accordingly to reflect this intention. About Liang Huat Liang Huat Aluminium -- http://www.lianghuatgroup.com.sg/-- is a vertically integrated, professionally run group of companies based in Singapore focusing on producing high quality aluminum products and processed glass for both the industrial and construction industries. It also supplies and installs aluminum and processed glass for major commercial and residential projects mainly in Singapore. Liang Huat was the subject of a wind-up petition filed by Lim Ah Siong trading as Lian Siong Aluminium & Trading on August 26, 2004. Presently, the company is undergoing a financial restructuring exercise. It is also working a Scheme of Arrangement with its major creditor banks. LINDETEVES-JACOBERG: Files OIS with Monetary Authority ------------------------------------------------------ On Oct. 6, 2006, Lindeteves-Jacoberg Limited has filed the Offer Information Statement with the Monetary Authority of Singapore pursuant to the Renounceable Non-underwritten Rights Issue of 248,056,294 new ordinary shares in the capital of the Company. Under the Laws of the Republic of Singapore, the basis of provisional allotment will be one rights share for every two shares held by an entitled shareholder at the books closure date and fractional entitlements will be disregarded. In the allotment of excess rights shares, preference will be given to shareholders for rounding of odd lots, and substantial shareholders and directors will rank last in priority. Up to 248,056,294 rights shares will be issued with a subscription price of SGD0.12 for each rights share. Moreover, on October 13, 2006, the OIS together with a copy of the Application Form for Rights Shares and excess Rights Shares and the Provisional Allotment Letter have been dispatched to the Company's entitled shareholders. The trading period for the nil-paid provisional allotments of Rights Shares on the Singapore Exchange Securities Trading Limited commenced on October 13, 2006, and ends on October 23, 2006. The last day for renunciation and payment of Rights Shares is on October 30, 2006, at Entitled shareholders who do not receive the offer information may obtain copies of the documents from: The Central Depository (Pte) Limited 4 Shenton Way #02-01 SGX Centre 2 Singapore 068807; or Tricor Barbinder Share Registration Services 8 Cross Street #11-00 PWC Building Singapore 048624 About Lindeteves-Jacoberg Lindeteves-Jacoberg Limited - http://www.linjacob.com/-- was incorporated in Singapore on December 11, 1947 as part of a Dutch international trading group. Its principal activities consist of investment holding, provision of warehousing and rental services and acting as specialist mechanical and electrical contractor for environmental engineering projects. * * * The company is currently working out further debt restructuring plans for its liabilities, in addition to an earlier approved Scheme of Arrangement with its creditors. PERSATUAN KEBAJIKAN: Proofs of Debt Due on October 20 ----------------------------------------------------- Persatuan Kebajikan Islam Kampong Bedok Singapura, which is in liquidation, require its creditors to submit their proofs of debt to the Official Receiver by October 20, 2006, to be included in the distribution of dividend. The company's liquidator can be reached at: The Official Receiver The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118 PETROBRAS INT'L: Fitch Rates US$500MM Sr. Notes Due 2016 at BB+ --------------------------------------------------------------- Fitch Ratings assigned a 'BB+' rating to Petrobras' US$500-Million 6.125% Senior Notes due 2016 issued through its wholly owned subsidiary, Petrobras International Finance Company. PIFCo is unconditionally guaranteed by Petrobras. Proceeds are to be used for debt refinancing and other general corporate purposes. The ratings of Petroleo Brasileiro S.A. are supported by substantial proved hydrocarbon reserves and increasing upstream output, recognized leadership in offshore exploration and production, a favorable international product price environment, successful corporate and industry restructuring during the past decade, a transition to more transparent financial standards, and dominant domestic market shares. The company further benefits from material international operations and its shift to a net export position in 2005, which supports the generation of foreign currency cash flow. These factors are tempered by vulnerability to fluctuations in international commodity prices, exposure to local political interference, currency risk, domestic market revenue concentration, and significant medium- term capital-investment requirements linked to the company's ambitious strategic plan. The announced nationalization of Petrobras' Bolivian energy investments, while negative, is not expected to affect materially the company's credit quality or ratings. The combination of ultimate government control, which underscores the ability to influence corporate strategy and long-term policy decisions, and a significant domestic market focus continues to affect the company's rating. Earlier this year, Petrobras announced its 2007-2011 business plan, which primarily reflects new projects to increase production and refining both in Brazil and internationally, the increase in costs of related services and equipment in the productive chain, and a stronger local currency, all of which increases capital spending when expressed in U.S. dollars. Under the new business plan, Petrobras estimates it will invest US$87.1 billion through 2011, an increase of US$34.7 billion (66%) for the comparable period under the previous plan. Approximately US$49 billion (56% of total), up from US$31 billion (59%), has been allocated to exploration and production activities, representing a slight shift in allocation percentage toward downstream activities. Fitch views the planned increase in E&P investment, including additional investment in natural gas E&P, to be positive for the long-term credit quality of the company. Management projects no significant changes on the main corporate strategic targets or pressures on the financial profile, as approximately 87% of Petrobras' funding needs (investments and debt amortizations) should continue to be met via internal cash flows, with the rest to be financed with conventional financing mechanisms, project structures, and special-purpose vehicles. Fitch recognizes the positive credit effect of the market- oriented measures implemented in the past five years as well as improvements in corporate governance. The opening to private participation and deregulation, strong management commitment to increased financial transparency, corporate reorganization and modernization, and aggressive upstream production development, coupled with value-chain strategies, should strengthen credit fundamentals. While there has been close coordination of business plans with federal authorities, it does not appear to have affected market-oriented efforts to improve operational efficiencies, increase upstream production volumes, or adhere to capital discipline guidelines. Petrobras is a mixed-capital company, with the government owning approximately 40% of Petrobras' total capital and 55.7% of its voting capital. The remainder of the shares are publicly traded, and an estimated 40% is held by foreign investors. Despite Fitch's concerns generated by the significant imbalance between local currency revenues and hard currency expenses and liabilities, it is important to note that Petrobras' operations are of vital economic importance to the nation, suggesting the government has a prime incentive to ensure Petrobras' access to hard currency for servicing foreign obligations. Petrobras' financial profile remains strong, with solid credit- protection measures continuing to benefit from increased production and the global rise in hydrocarbon and product prices. The company reported total debt/LTM EBITDA of 0.4 times and EBITDA/interest expense of 26.5x under U.S. GAAP through June 2006. Petrobras maintains strong liquidity in relation to short-term debt obligations. The company ended the second quarter of 2006 with a total consolidated debt of US$19.682 billion, of which approximately 25% was classified as short term. The company's sizeable US$10.4 billion in cash and equivalents resulted in total net debt of US$9.3 billion. Petrobras' management has indicated its preference to maintain a substantial cash balance going forward, partially debt funded, to minimize its exposure to international capital market volatility. The company's EBITDA continues to be favored by the increase in the domestic production of oil and natural gas liquid, even though it was offset by scheduled maintenance stoppages in several production systems during the semester. On July 25, 2006, the company closed its tender for certain outstanding bonds of its subsidiary PIFCo for liability management purposes, which totaled US$866 million. Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro S.A. aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp-- was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. * * * Petroleo Brasileiro SA's long-term corporate family rating is rated Ba3 by Moody's. Fitch Ratings assigned these ratings to Petroleo Brasileiro's senior unsecured notes: Maturity Date Amount Rate Ratings ------------- ------ ---- ------- April 1, 2008 US$400,000,000 9% BB+ July 2, 2013 US$750,000,000 9.125% BB+ Sept. 15, 2014 US$650,000,000 7.75% BB+ Dec. 10, 2018 US$750,000,000 8.375% BB+ Fitch upgraded the foreign currency rating of Petrobras to BB+ from BB, with positive outlook, in conjunction with Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. SEE HUP SENG: Issues and Allots Ordinary Shares to Creditors ------------------------------------------------------------ The Troubled Company Reporter - Asia Pacific previously reported that See Hup Seng Limited has entered into separate settlement agreements with trade creditors for the listing and quotation of up to 31,758,000 new ordinary shares. Subsequently, on October 3, 2006, the Singapore Exchange Securities Trading Limited has approved the application. In an update, See Hup Seng has issued and allotted the new ordinary shares in the capital of the Company to each of its trade creditors: Name of Trade Creditor Number of new ordinary shares ---------------------- ----------------------------- Allinton Engineering & Trading Pte Ltd 130,000 Asia Airblast Pte Ltd 114,000 Aver Asia (S) Pte Ltd 878,000 Cintai (S) Pte Ltd 1,705,000 GI Obuchi Marine and Engineering Services 257,000 Hempel (Singapore) Pte Ltd 2,464,000 Jotun (Singapore) Pte Ltd 450,000 Pan Marine Blasting Abrasive Pte Ltd 518,000 Performance Coatings International Pte Ltd 291,000 Red Eagle Marine Services 1,235,000 Richill Industries Pte Ltd 1,428,000 Rotor Auto Electrical Pte Ltd 40,000 Seamate Engineering Services 142,000 Sin Hoe Heng Pte Ltd 570,000 Star-Ray Pte Ltd 264,000 Tat Seng Marine & Engineering Services 1,507,000 Trek Investigations & Security Management Services 267,000 Y.H.L. Logistics Pte Ltd 500,000 Total: 12,760,000 See Hup Seng has also allotted and issued 18,998,000 new ordinary shares to Thomas Lim Siok Kwee, making an aggregate of SGD2,849,700. This was part of the settlement of the loan owed by the Company to Mr. Lim. The Company has repaid the balance loan amount of SGD75.59 in cash to Mr. Lim. The listing and quotation of the 18,998,000 new ordinary shares of the Company allotted to Mr. Lim is expected to take place on October 18, 2006, at the SGX-Sesdaq, while the listing and quotation of the 12,760,000 new ordinary shares of the Company allotted to the Trade Creditors at the SGX-Sesdaq, will be announced in due course. About See Hup Seng See Hup Seng Limited -- http://www.seehupseng.com.sg/-- is engaged in the provision of corrosion prevention services through a range of marine and industrial blasting and coating methods. Its other activities are the provision of tank cleaning, painting and coating, ship repair, shipbuilding and scaffolding services, trading and manufacturing of blasting and painting equipment and investment holding. The group is domiciled in Singapore and markets its products and services domestically and in the People's Republic of China, Hong Kong and Cayman Islands. Significant Doubt As reported in the Troubled Company Reporter - Asia Pacific on May 24, 2006, after reviewing the company's full year financials for the year 2005, Moore Stephens -- See Hup Seng's independent auditors -- expressed, on April 7, 2006, significant doubt in the company's ability to continue as going concern, citing the company's losses and net current liabilities. Moore Stephens adds that the ability of the group and the company to continue as going concerns is dependent the company's debt restructuring exercise. SEE HUP SENG: Unveils Shareholders' Changes of Interest ------------------------------------------------------- On October 11, 2006, See Hup Seng Limited has unveiled the changes of interest of its substantial shareholders. Lim Siok Kwee Thomas held 13,049,050 shares before the change with 5.8% issued share capital. After the change, Mr. Lim holds 32,047,050 shares with 12.09% issued share capital. The change of interest was due to the allotment of 18,998,000 new ordinary shares to Mr. Lim that was due to conversion of debts and dilution of shareholdings as a result of total allotment of 41,758,000 new ordinary shares in the share capital of the Company. Another substantial shareholder, Tan Ong Huat held 10,500,000 shares before the change with 4.70% issued share capital. After the change, Mr. Tan holds 10,500,000 shares with 3.96% issued share capital. The change of interest was due to the dilution of shareholdings as a result of allotment of 41,758,000 new ordinary shares in the share capital of the Company. Yap Sew held 12,000,000 shares before the change with 5.371% issued share capital. After the change Mr. Yap holds 12,000,000 with 4.525% issued share capital. The change of interest was also due to the dilution of shareholdings as a result of allotment of 41,758,000 new ordinary shares in the share capital of the Company. Oversea-Chinese Banking Corporation Limited, another substantial shareholder also holds 14,900,000 shares before and after the change, but the issued share capital lowered from 6.67% before the change, to 5.62% after the change. About See Hup Seng See Hup Seng Limited -- http://www.seehupseng.com.sg/-- is engaged in the provision of corrosion prevention services through a range of marine and industrial blasting and coating methods. Its other activities are the provision of tank cleaning, painting and coating, ship repair, shipbuilding and scaffolding services, trading and manufacturing of blasting and painting equipment and investment holding. The group is domiciled in Singapore and markets its products and services domestically and in the People's Republic of China, Hong Kong and Cayman Islands. Significant Doubt As reported in the Troubled Company Reporter - Asia Pacific on May 24, 2006, after reviewing the company's full year financials for the year 2005, Moore Stephens -- See Hup Seng's independent auditors -- expressed, on April 7, 2006, significant doubt in the company's ability to continue as going concern, citing the company's losses and net current liabilities. Moore Stephens adds that the ability of the group and the company to continue as going concerns is dependent the company's debt restructuring exercise. SHENGY TECHNOLOGY: Creditors Proofs of Debt Due on November 6 ------------------------------------------------------------- Shengy Technology Co Pte Ltd, which was placed under members' voluntary liquidation, requires its creditors to submit proofs of debt by November 6, 2006, to be included in the company's distribution of dividend. The company's liquidator can be reached at: Hong Rongsheng 20 Collyer Quay #10-03 Tung Centre Singapore 049319 =============== T H A I L A N D =============== PICNIC CORP: SEC Continues to Investigate Illicit Deals ------------------------------------------------------- The Securities and Exchange Commission has sent additional information to the Department of Special Investigation regarding a criminal probe into Picnic Corp, The Bangkok Post reports. According to the SEC's ongoing investigations, Picnic had recorded deposits of THB852 million in its 2004 financial statement from a sales contract for large gas cylinders. However, the SEC relates that in the first quarter of this year, Picnic reported that it had cancelled the cylinder contract, returned a portion of the deposits and booked a loss provision of THB454 million. On July 20, 2006, the Troubled Company Reporter - Asia Pacific reported Picnic's first quarter 2006 financial statement results and stated that the Company attributed its loss mainly due to its provision of THB460 million on these doubtful debts: * THB146 million account receivable in LPG business; * THB254 million account receivable in engineering business; * THB59.98 million worth of other accounts receivable in LPG business. The SEC says Picnic had also booked an asset increase of THB1.9 billion for its 2004 statement stemming from an increase in value of its gas cylinders, stemming partially from a purchase contract worth THB1.32 billion from a single company. Yet in Picnic's third-quarter 2005 statement, it set aside loss reserves of THB1 billion for depreciation of small gas cylinders, the SEC notes. These, according to the SEC, made the commission conclude that the said the cylinder contracts were designed to benefit Picnic executives, including managing director Teeratchanont Larpvisuthisin and deputy managing director Supaporn Larpvisuthisin, at the expense of the company. Headquartered in Bangkok, Thailand, Picnic Corporation Public Company Limited -- http://www.picniccorp.com/-- is engaged in liquefied petroleum gas trading business under "Picnic Gas" trademark transferred from Union Gas and Chemicals Company Ltd. Going Concern Doubt Somchai Kurujitkosol of S.K. Accountant Services Co Ltd, raised substantial doubt regarding the Company's and its subsidiaries' ability to continue as a going concern after auditing their consolidated financial statements for the quarter ended March 31, 2006. Mr. Kurujitkosol said that as of March 31, 2006, the Company's and its subsidiaries' current liability exceeds their current asset by THB1.838 billion. He said that the Company and its subsidiaries are parties to various loan agreements coming from finance institutions and some parts now constitute defaulted liabilities. Mr. Kurujitkosol added that the Company's ability to continue its operation is dependent on its ability to negotiate a debt restructuring agreement, to increase its share capital, and to follow up debt collection from its account receivables. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- October 18-19, 2006 EUROMONEY 2nd Annual Latin America Syndicated Loans Conference JW Marriott Hotel, Miami, FL Contact: http://www.euromoneyplc.com/ October 18, 2006 Turnaround Management Association Dinner Meeting Washington Athletic Club, Seattle, WA Contact: http://www.turnaround.org/ October 19, 2006 Turnaround Management Association TMA of Nevada's 1st Breakfast Meeting The A,B,C's of Valuing and Selling a Business Palace Station, Las Vegas, NV Contact: http://www.turnaround.org/ October 19, 2006 Beard Audio Conferences Surviving the Digital Deluge: Best Practices in e-Discovery and Records Management for Bankruptcy Practitioners and Litigators Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ October 19, 2006 Turnaround Management Association Navigating the Potholes and Speed Bumps on Today's Economic Highway Waller Lansden Dortch & Davis Nashville, TN Contact: http://www.turnaround.org/ October 19, 2006 Insolvency Practitioners Association Of Australia Study Group Meetings Chartered Accountants House, Sydney, Australia Telephone: 9416-2395 e-mail: amanda_taylor@aapt.net.au October 19, 2006 Turnaround Management Association Billards Networking Night - Young Professionals TBA, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ October 21, 2006 Turnaround Management Association Applying Lean Methodology to Manage Operational Turnarounds Oxford Hotel, Denver, CO Contact: http://www.turnaround.org/ October 23, 2006 Turnaround Management Association Annual Meeting and Networking Reception 100th Bomb Group & Banquet Facility Cleveland, OH Contact: http://www.turnaround.org/ October 23, 2006 Turnaround Management Association A View from the Bench: A Panel Discussion Recent Developments in Bankruptcy Sheraton at Four Seasons, Greensboro, NC Contact: http://www.turnaround.org/ October 25, 2006 Beard Audio Conferences Deepening Insolvency - Widening Controversy: Current Risks, Latest Decisions Review Risks, Examine Latest Decisions Affecting Directors, Advisors and Lenders of Troubled Companies Web site: http://www.beardaudioconferences.com/ Telephone: 240-629-3300 October 26, 2006 Turnaround Management Association Breakfast Event "The Latest in Fraud Investigations" with guest speaker Chad Cretney of PricewaterhouseCoopers Ernst & Young Tower Calgary, AB Web site: http://www.turnaround.org/ October 26, 2006 Turnaround Management Association Hedge Funds - Expanded Financing Opportunities in Business Turnarounds Arizona Web site: http://www.turnaround.org/ October 26, 2006 Turnaround Management Association Breakfast Speaker Series #3 TBA, Calgary, Alberta Telephone: 403-294-4954 Web site: http://www.turnaround.org/ October 26, 2006 Turnaround Management Association Breakfast Speaker Series #3 TBA, Calgary, Alberta Telephone: 403-294-4954 Web site: http://www.turnaround.org/ October 27, 2006 Turnaround Management Association Breakfast with Coach Dan Reeves Westin Buckhead, Atlanta, GA Telephone: 678-795-8103 Web site: http://www.turnaround.org/ October 28, 2006 Turnaround Management Association BK/TMA Golf Tournament Orange Tree Golf Resort, AZ Telephone: 623-581-3597 Web site: http://www.turnaround.org/ October 30-31, 2006 Distressed Debt Summit: Preparing for the Next Default Cycle Financial Research Associates LLC Helmsley Hotel, New York, NY Contact: http://www.frallc.com/ October 31, 2006 Turnaround Management Association Luncheon Citrus Club, Orlando, Florida Telephone: 561-882-1331 Web site: http://www.turnaround.org/ October 31 - November 1, 2006 International Women's Insolvency & Restructuring Confederation IWIRC Annual Conference San Francisco, CA, USA Web site: http://www.iwirc.com/ November 1, 2006 Turnaround Management Association Halloween Isn't Over! - Ghosts of turnarounds past who remind you about what you should have done differently Portland, Oregon Web site: http://www.turnaround.org/ November 1-4, 2006 National Conference Of Bankruptcy Judges National Conference of Bankruptcy Judges San Francisco, California Web site: http://www.ncbj.org/ November 2, 2006 Turnaround Management Association TMA UK Annual Conference Millennium Gloucester Hotel, London, UK Web site: http://www.turnaround.org/ November 2-3, 2006 Beard Group & Renaissance American Conferences Third Annual Conference on Physician Agreements & Ventures Successful Strategies for Medical Transactions and Investments The Millennium Knickerbocker Hotel - Chicago Telephone: 903-595-3800; 1-800-726-2524; Web site: http://www.renaissanceamerican.com/ November 3, 2006 Association Of Insolvency & Restructuring Advisors AIRA/NCBJ Breakfast Program Marriott, San Francisco, CA Telephone: 415-896-1600 Web site: http://www.airacira.org/ November 7, 2006 Turnaround Management Association Networking Breakfast Marriott, Bridgewater, New Jersey Telephone: 908-575-7333 Web site: http://www.turnaround.org/ November 7-8, 2006 Euromoney 5th Annual Distressed Debt Investment Symposium Hyatt Regency, London, UK Contact: http://www.euromoneyplc.com/ November 7-8, 2006 International Monetary Fund and the Financial Supervisory Service Macroprudential Supervision: Challenges for Financial Supervisors Seoul, South Korea Telephone: 82-2-3771-5114 Web site: http://www.fss.or.kr/ November 8, 2006 Turnaround Management Association Luncheon & Guest Speaker, Joel Naroff to discuss the economy, lending and M&A markets Davio's Northern Italian Steakhouse, Philadelphia, PA Web site: http://www.turnaround.org/ November 8, 2006 Turnaround Management Association Breakfast Meeting Marriott Tyson's Corner, Vienna, Virginia Telephone: 703-912-3309 Web site: http://www.turnaround.org/ November 9-10, 2006 Turnaround Management Association - Australia TMA Australia National Conference Telephone: 0438-653-179 e-mail: tma_aust@bigpond.net.au November 15, 2006 LI TMA Formal Event TMA Australia National Conference Long Island, New York, USA Web site: http://www.turnaround.org/ November 15-16, 2006 Euromoney Institutional Investor Asia Capital Markets Forum Island Shangri-La, Hong Kong Web site: http://www.euromoneyplc.com/ November 16, 2006 Insolvency Practitioners Association of Australia Study Group Meetings Chartered Accountants House, Sydney, Australia Telephone: 9416-2395 e-mail: amanda_taylor@aapt.net.au November 23-24, 2006 Euromoney Conferences 5th Annual China Conference China World Hotel Beijing, China Web site: http://www.euromoneyconferences.com/ November 30, 2006 Euromoney Conferences Euromoney/DIFC Annual Conference Managing superabundant liquidity Madinat Jumeirah, Dubai Contact: http://www.euromoneyconferences.com/ December 5, 2006 Euromoney Conferences CFO Forum Hyatt Regency, Hangzhou, China Web site: http://www.euromoneyconferences.com/ December 13, 2006 Turnaround Management Association - Australia Christmas Function Australia GE Commercial Finance, George Street, Sydney, Australia Telephone: 0438-653-179 e-mail: tma_aust@bigpond.net.au February 2007 American Bankruptcy Institute International Insolvency Symposium San Juan, Puerto Rico Telephone: 1-703-739-0800 Web site: http://www.abiworld.org March 27-31, 2007 Turnaround Management Association - Australia 2007 TMA Spring Conference Four Seasons Las Colinas, Dallas, TX, USA e-mail: livaldi@turnaround.org April 11-15, 2007 American Bankruptcy Institute ABI Annual Spring Meeting J.W. Marriott, Washington, DC, USA Telephone: 1-703-739-0800 Web site: http://www.abiworld.org/ October 16-19, 2007 Turnaround Management Association - Australia TMA 2007 Annual Convention Boston Marriott Copley Place, Boston, MA, USA e-mail: livaldi@turnaround.org March 25-29, 2008 Turnaround Management Association - Australia TMA Spring Conference Ritz Carlton Grande Lakes, Orlando, FL, USA e-mail: livaldi@turnaround.org October 28-31, 2008 Turnaround Management Association - Australia TMA 2008 Annual Convention New Orleans Marriott, New Orleans, LA, USA e-mail: livaldi@turnaround.org October 5-9, 2009 Turnaround Management Association - Australia TMA 2009 Annual Convention JW Marriott Desert Ridge, Phoenix, AZ, USA e-mail: livaldi@turnaround.org October 4-8, 2010 Turnaround Management Association - Australia TMA 2010 Annual Convention JW Marriot Grande Lakes, Orlando, FL, USA e-mail: livaldi@turnaround.org Beard Audio Conferences Coming Changes in Small Business Bankruptcy Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Audio Conferences CD Beard Audio Conferences Distressed Real Estate under BAPCPA Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Changes to Cross-Border Insolvencies Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Healthcare Bankruptcy Reforms Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Calpine's Chapter 11 Filing Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Changing Roles & Responsibilities of Creditors' Committees Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Employee Benefits and Executive Compensation under the New Code Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Dana's Chapter 11 Filing Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Reverse Mergers-the New IPO? Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Fundamentals of Corporate Bankruptcy and Restructuring Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences High-Yield Opportunities in Distressed Investing Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Privacy Rights, Protections & Pitfalls in Bankruptcy Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences When Tenants File -- A Landlord's BAPCPA Survival Guide Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ Beard Audio Conferences Clash of the Titans -- Bankruptcy vs. IP Rights Audio Conference Recording Telephone: 240-629-3300 Web site: http://www.beardaudioconferences.com/ ********* 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, 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 ***