/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/061114.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 Tuesday, November 14, 2006, Vol. 9, No. 226 Headlines A U S T R A L I A BARRORESH NO. 1: To Hold Final Meeting on December 8 CAMELLIA GROVE: Members' Final Meeting Set on November 25 FLOCCO BROS.: Joint Meeting Slated for December 7 GP & SJ DAVIS: Liquidator Rangott to Present Wind-Up Report JAMES HARDIE: Posts US$68.3 Mln Profit for 2nd Quarter, Up 43% JAMES HARDIE: KPMG Actuaries Provides Asbestos Valuation Report K & M INVESTMENTS: Members and Creditors to Convene on Dec. 7 MAIDSTONE PTY: Final Meeting Fixed for November 25 MR MOOVER: Liquidator W. B. Rangott to Give Wind-Up Report NRG ENERGY: Fitch Rates US$1.1 Billion Senior Notes at B+/RR3 ROLFE MOTOR: Schedules Final Meeting on December 8 SCOTT BROTHERS: Members and Creditors to Meet on November 29 VILLAGE ROADSHOW: To Return AU$131.7 Million to Shareholders VILLAGE ROADSHOW: To Retire AU$90 Million Core Debt with the ANZ C H I N A & H O N G K O N G AGRICULTURAL BANK: Files Revised Reform Plan to State Council BALLY TOTAL: Posts US$5.7 Million Third Quarter 2006 Net Loss BALLY TOTAL: Will Launch Operations in Jacksonville BELLUNO INVESTMENTS: Names Corkhill and Bruce as Liquidators DR. B.M. KOTEWALL: Members to Receive Wind-Up Report on Dec. 4 ENCHANTING (HK): Court to Hear Wind-Up Petition on December 13 ESSERY ESTATES: Final Meeting Slated for December 13 GOSPELS DEBATING: Creditors' Proofs of Claim Due on Dec. 31 GUANGDONG DEVELOPMENT: IBM to Join CitiGroup's Consortium HARBOUR RING: Members Appoint Joint Liquidators MBF CREDIT: Creditors Must Prove Debts by December 4 PETROLEO BRASILEIRO: Extends Contract Renegotiation with Bolivia PETROLEO BRASILEIRO: Refinery Project with Venezuela Under Way SMITHKLINE BEECHAM: Members' Final Meeting Set for December 4 UNICHEM ENTERPRISES: Wind-Up Petition Hearing Set on Dec. 13 YUET KONG: Court Sets Wind-Up Petition Hearing on December 6 I N D I A BALLY TECH: Secures US$131-Million Oregon State Lottery Contract BHARTI AIRTEL: Offers Software Services to SMBs with Microsoft BHARTI AIRTEL: Issues 206,791 Shares on FCCB Conversion CANARA BANK: Discovers Loan Scam; Punishes Five Officers CANARA BANK: Government Nominates Amitabh Verma to Director Post CATHOLIC SYRIAN BANK: To Raise INR35 Crore by Private Placement CITY UNION BANK: Fixes Maximum Foreign Shareholding Limit at 26% CORPORATION BANK: Outsources ATM Management to Euronet GENERAL MOTORS: Higher Costs Result to Car Price Hike in 2007 GENERAL MOTORS: Selling Hybrid Cars to Chinese Market in 2008 UNIVERSAL CORP: Earns US$28.3MM in Quarter Ended Sept. 30, 2006 I N D O N E S I A CORUS GROUP: Tata Steel Offers Cash to Corus Bondholders FOSTER WHEELER: Earns US$75.8MM for Quarter Ended Sept. 29, 2006 INDAH KIAT: Court Ruling May Affect Investor Confidence, FA Says J A P A N FORD MOTOR: To File Third Quarter 2006 Report by November 14 HITACHI ZOSEN: JFE Considers Takeover of Shipbuilding Operations MIZUHO FINANCIAL: To Invest JPY450 Billion in Expansion Plan TIMKEN CO: Expands Manufacturing Presence in India TIMKEN CO: Solves Problem in Indonesian Mill K O R E A DAEWOO ENGINEERING: Sold to Kumho-Asiana Group for KRW6.42 Tril. DURA AUTOMOTIVE: Receives NASDAQ Delisting Notice DURA AUTOMOTIVE: Taps Kirkland & Ellis as Bankruptcy Counsel DURA AUTOMOTIVE: Taps Richards Layton as Local Counsel HANAROTELECOM: To Buy Up to 80% of Onse Telecom's Customers KOREA EXCHANGE: Prosecutors Obtain Evidence Against Lone Star SK CORP: To Sell 30% Stake in Incheon Unit in December SK CORP: Considers Entering China's Petrochemical Market * S&P Affirms South Korea's Credit Ratings M A L A Y S I A ARMSTRONG WORLD: Sept. 30 Balance Sheet Upside-Down by $1.2 Bil. MALAYSIA AIRLINES: Denies Rights Issue Reports OLYMPIA INDUSTRIES: Board's Annual Gen. Meeting Set on Dec. 6 WEMBLEY INDUSTRIES: Bursa Securities Updates on Delisting Plan N E W Z E A L A N D ACTIVE HOMES: Court Sets Liquidation Hearing on December 7 BREWTOPP EARTH: Liquidation Hearing Set on December 19 CHEUNG & HO: Creditors Must Prove Debts by November 27 CORPORATE CLEANING: Faces Liquidation Proceedings FAMOUS BRANDS: Creditors' Proofs of Claim Due on November 30 GAMO HOLDINGS: Names Montgomerie and Cunningham as Liquidators LAM FINANCIAL: Liquidation Petition Hearing Set on Nov. 16 PATTERSON CONSULTING: Court Sets Liquidation Hearing on Nov. 16 TEAMWORK INTELETRAC: Shareholders Appoint Joint Liquidators TOTALLY THERMAL: Creditors to Prove Claims on November 30 P H I L I P P I N E S BANCO DE ORO: To Hold Special Stockholders' Meeting on Dec. 27 MANILA MINING: Signs Letter of Intent with Anglo American MANILA MINING: Appoints SGV as External Auditor & P. Ayson as VP VITARICH CORP: Signs Up Oracle to Enhance Market Efficiency * Net FDI Flows Hit US$1.36 Bln in First Eight Months of 2006 S I N G A P O R E B.T. FROZEN: Court to Hear Wind-Up Petition on Nov. 17 DELL INC: Court Approves US$17M Settlement of Consumer Suits EXABYTE CORP: Wells Fargo Increases Borrowing Base by US$2 Mil. FINSBAY HOLDINGS: Creditors Must File Proofs of Debt by Dec. 4 LINDETEVES-JACOBERG: Posts SGD67-Mil. Profit for 3rd Qtr. 2006 MAE ENGINEERING: Appoints New Directors PETROLEO BRASILEIRO: Refinery Project with Venezuela Under Way SEE HUP SENG: Substantial Shareholder Reduces Shareholding SEE HUP SENG: To Hold General Meeting on Dec. 5 T H A I L A N D NEW PLUS: Auditor Raises Going Concern Doubt On Units' Deficits NFC FERTILZER: Posts THB152.64-Million Net Loss in 3rd Qtr. 2006 TOTAL ACCESS: Joins True Corp in Complain Against AIS * BOND PRICING: For the Week 13 November to 17 November 2006 * Fitch Ratings To Host Asia Conference 2006 in Kuala Lumpur - - - - - - - - ================= A U S T R A L I A ================= BARRORESH NO. 1: To Hold Final Meeting on December 8 ---------------------------------------------------- The members and creditors of Barroresh No. 1 Pty Ltd will hold a final meeting on December 8, 2006. At the meeting, the members and creditors will receive the liquidator's account of the company's wind-up proceedings. The Troubled Company Reporter - Asia Pacific has reported that the members of Barroresh No. 1 passed a special resolution on July 6, 2006, to voluntary wind up the Company's operations. The Liquidator can be reached at: Frank Lo Pilato RSM Bird Cameron Partners Level 1, 103-105 Northbourne Avenue Turner ACT 2612 Australia Telephone: 02 6247 5988 About Barroresh No. 1 Barroresh No 1 Pty Ltd is located at 18 Depot Rd, Dubbo in New South Wales, Australia. The company is into fish and seafoods business. CAMELLIA GROVE: Members' Final Meeting Set on November 25 --------------------------------------------------------- The members of Camellia Grove Nursery (Wholesale) Pty Ltd will convene for their final meeting on November 25, 2006, at 10:00 a.m., to receive the final accounts from Liquidator Geoffrey Neil Walker. The Troubled Company Reporter - Asia Pacific reported that on June 30, 2006, the company's members agreed to liquidate the company's business and appointed Mr. Walker as liquidator. The Liquidator can be reached at: Geoffrey Neil Walker WLM Partners Pty Ltd Level 12, 84 Pitt Street Sydney, New South Wales 2000 Australia About Camellia Grove Nursery Camellia Grove Nursery -- http://www.camelliagrove.com.au/-- was established by the late Professor E.G. Waterhouse in 1939 and has earned a reputation for its quality plants as well as a tourist destination for people from all over the world. The nursery's present location is at Glenorie in Sydney's North- West. FLOCCO BROS.: Joint Meeting Slated for December 7 ------------------------------------------------- The members and creditors of Flocco Bros. Pty Ltd will hold a joint meeting on December 7, 2006, at 10:00 a.m., to receive Liquidator G. T. Hancock's account of the company's wind-up proceedings. According to the Troubled Company Reporter - Asia Pacific the company commenced the wind-up of its operations on October 4, 2005. The Liquidator can be reached at: G. T. Hancock Horwath Sydney Partnership Level 10, 1 Market Street Sydney, New South Wales 2000 Australia About Flocco Bros. Headquartered at 45 Lyons Rd, Lakesland in New South Wales, Australia, Flocco Bros. Pty Ltd is into concrete work. GP & SJ DAVIS: Liquidator Rangott to Present Wind-Up Report ----------------------------------------------------------- GP & SJ Davis Pty Ltd, which is in liquidation, will hold a final meeting for its members and creditors on November 29, 2006, at 10:30 a.m. During the meeting, Liquidator W. B. Rangott will present the report regarding the company's wind-up proceedings. The Liquidator can be reached at: W. B. Rangott Rangott Slaven Chartered Accountants Unit 12, Level 3 Engineering House 11 National Circuit Barton, ACT Australia Web site: http://www.rangottslaven.com.au About GP & SJ Davis GP & SJ Davis Pty Limited is located at 76 Shepherd St, Hume in ACT, Australia. The company is into wood household furniture business. JAMES HARDIE: Posts US$68.3 Mln Profit for 2nd Quarter, Up 43% -------------------------------------------------------------- For the three months ended September 30, 2006, James Hardie Industries Ltd's net operating profit, excluding adjustments to the asbestos provision, increased 43% compared to US$68.3 million from the US$47.6 million recorded for the same period last year. The asbestos provision was increased by AU$55.9 million (US$41.8 million) to reflect the results of the most recent actuarial estimate prepared by KPMG Actuaries Pty Ltd and to adjust for payments made to claimants during the half year. Additionally, the provision was adjusted for the effect of foreign exchange leading to a charge of US$5.4 million for the quarter. These adjustments (with no current cash impact) reduced net operating profit to US$21.1 million, down 56% compared to the same quarter last year. For the half year, net operating profit excluding adjustments to the asbestos provision increased 27% to US$131.0 million from US$103.5 million. Including the adjustments to the asbestos provision of US$74.4 million (of which US$32.6 million related to the effect of foreign exchange for the half year), net operating profit decreased 45% to US$56.6 million. The asbestos provision is based on an estimate of future Australian asbestos-related liabilities in accordance with the Final Funding Agreement that was signed with the New South Wales Government on December 1, 2005. A full-text copy of James Hardie's Second Quarter Financial Results is available for free at: http://ResearchArchives.com/t/s?14e0 Operating performance The 2nd quarter highlights include: -- a 9% lift in net sales to US$411.4 million; and -- a 13% increase in gross profit to US$155.2 million. EBIT decreased 46% from US$76.4 million to US$41.0 million. EBIT for the quarter includes an expense of US$47.2 million related to adjustments to the asbestos provision. EBIT excluding adjustments to asbestos provision increased by 15% to US$88.2 million. Diluted earnings per share for the quarter decreased to US$4.5 cents in the second quarter from US$10.2 cents, and to US$12.1 cents from US$22.3 cents for the half year, compared to the same periods last year. Diluted earnings per share excluding adjustments to the asbestos provision and a tax provision write-back of US$7.4 million increased by 28% from US$10.2 cents to US$13.1 cents for the quarter and by 19% from US$22.3 cents to US$26.5 cents for the half year. The results include Special Commission of Inquiry and other related expenses of US$3.2 million for the quarter and US$5.6 million for the half year (US$3.0 million and US$5.2 million after tax, respectively), a tax provision write- back of US$7.4 million for the quarter and half year, and for the half year only, a make-whole payment of US$6.0 million (US$5.6 million after tax) resulting from the prepayment of US$- denominated debt in May 2006. Net operating profit excluding adjustment to the asbestos provision, SCI, and other related expenses, the make-whole payment and the tax provision write-back, increased 23% for the quarter to US$63.9 million and 19% to US$134.4 million for the half year. Dividend On November 13, 2006, the company disclosed an interim dividend of US$5.0 cents a share. The dividend was declared in United States currency and will be paid on January 8, 2007, with a record date of December 15, 2006. The Australian currency equivalent of the dividend to be paid to CUFS holders will also be announced to the ASX on that date. ADR holders will receive their dividend in United States currency. Income Tax The company's effective tax rate of 49.8% for the quarter and 48.9% for the half year were affected by adjustments to the asbestos provision and the write-back of a tax provision of US$7.4 million that is no longer required. The effective tax rate excluding adjustments to the asbestos provision and the tax provision write-back was 31.7% for the quarter and 33.1% for the half year. Cash Flow Operating cash flow for the half year fell from US$147.8 million to a utilization of US$22.3 million, primarily due to the AU$189.0 million (US$141.4 million) ATO deposit payment. Operating cash flow also decreased as a result of an increase of US$5.7 million in investment in working capital and US$7.8 million higher income tax payments. Capital expenditure for the purchase of property, plant and equipment decreased from US$75.0 million to US$61.4 million for the half year. Outlook In North America, a further softening in demand for new residential housing is expected in the short-term with the US- based National Association of Home Builders reporting that the heavy supply of houses for sale points toward further declines in new starts in the months ahead. The current weakened market conditions reflect lower housing affordability, a large inventory of unsold homes and investors leaving the market. However, regional variances in the impact are expected to continue. Repair and remodeling activity is expected to remain ahead of activity levels in new residential construction in the short- term. Volume growth is likely to be affected further in the 3rd quarter, but the business expects to continue outperforming the market overall by taking more market share from alternative materials and by increasing the proportion of value-added differentiated products in its sales mix. Input costs are expected to remain high in the short-term with the cost of raw materials, particularly pulp, at very high levels. Attractive margins are expected to be maintained in the short-term despite the higher costs. In the Australia and New Zealand business, market conditions are expected to remain challenging with no near-term improvement in sight. Further volume growth is expected due to initiatives to grow primary demand, but the average selling price is expected to remain under pressure due to price competition in Australia. In the Philippines, the building and construction market is expected to remain under pressure for the remainder of the year, but a small improvement in net sales is expected. In addition, the asbestos provision will be updated: 1. annually -- based on the most recent actuarial determinations and claims experience; and 2. quarterly -- to reflect changes in foreign exchange rates. These updates may have a material impact on James Hardie's consolidated financial statements. The current range of analyst earnings estimates for the fiscal year ending March 31, 2007, is for net profit from continuing operations excluding all asbestos related expenses to be US$206 million to US$237 million. While uncertainty surrounding the short-term to medium-term strength of the U.S. housing market remains at its highest level in recent years, the company's current projection for fiscal year 2007 is for net profit from continuing operations excluding asbestos related expenses to fall within this range. About James Hardie James Hardie Industries Limited -- http://www.jameshardie.com/- - manufactures, markets and distributes fiber cement and gypsum products, fiberglass reinforced plastic and PVC products, sanitary ware and bathroom products, insulating materials and fillers, strippers and adhesives. On July 2, 1998, the then public company announced a plan of reorganization and capital restructuring. James Hardie N.V. was incorporated in August 1998 as an intermediary holding company, with all of its common stock owned by indirect subsidiaries of JHIL. Effective as of November 1998, JHIL contributed its fiber cement businesses, its United States gypsum wallboard business, its Australian and New Zealand building systems businesses and its Australian windows business to JHNV and its subsidiaries. On July 24, 2001, JHIL announced a further plan of reorganization and capital restructuring, which reorganization was completed on October 19, 2001. In connection with the 2001 Reorganization, James Hardie Industries N.V., formerly RCI Netherlands Holdings B.V., issued common shares represented by CHESS Units of Foreign Securities on a one for one basis to existing JHIL shareholders in exchange for their shares such that JHINV became the new ultimate holding company for JHIL and JHNV. Following the 2001 Reorganization, JHINV controls the same assets and liabilities as JHIL controlled immediately prior to the 2001 Reorganization. The Company's troubles began with its "under-funded" allocation for asbestos claims, which were brought in by people who suffer or may have diseases caused by exposure to the asbestos-related products produced by JHIL. In 2001, James Hardie set up an independent entity, Medical Research and Compensation Foundation, to handle asbestos claims. The Foundation has warned that it could run out of money within five years. The Asbestos Diseases Foundation of Australia and workers unions called for all the Company's asbestos profits to be immediately placed in the fund. James Hardie was later accused of topping up the dwindling asbestos fund it established. By 2004, James Hardie's former asbestos manufacturing subsidiaries -- Amaca Pty Ltd, Amaba Pty Ltd, and ABN 60 Pty Ltd -- are three of around 150 defendants in asbestos litigation, and based on the Foundation's own figures, they account for US$1,000,000,000 of the predicted US$6,000,000,000 future asbestos liabilities in Australia. Although James Hardie stopped making asbestos products in 1987, the average 35-year latency of mesothelioma, an asbestos-related disease, means asbestos compensation funds will be needed until mid-century. In a 2005 report by a company-hired actuary from KPMG, it was predicted that 4,915 Australians would contract mesothelioma from exposure to Hardie products in the coming decades. When less serious forms of asbestos-related disease are included, James Hardie should expect to compensate 8,725 victims. On December 1, 2005, the Company announced that the NSW Government and a wholly owned Australian subsidiary of the Company -- LGTDD Pty Ltd -- had entered into a conditional agreement to provide long-term funding to a special purpose fund that will provide compensation for Australian asbestos-related personal injury claims against certain former James Hardie asbestos companies. The amount of the asbestos provision of AU$1 billion, at March 31, 2006, is the Company's best estimate of the probable outcome, which estimate includes an actuarial calculation prepared by KPMG Actuaries Pty Ltd of the projected future cash outflows, undiscounted and uninflated, and the anticipated tax deduction arising from Australian legislation which came into force on April 6, 2006. JAMES HARDIE: KPMG Actuaries Provides Asbestos Valuation Report --------------------------------------------------------------- On November 14, 2006, KPMG Actuaries Pty Ltd provided its valuation of asbestos-related disease liabilities of former James Hardie entities, which are to be met by the Special Purpose Fund. The report is effective as at September 30, 2006, and has taken into account claims data and information from The Medical Research and Compensation Foundation and Amaca Claims Services as at September 30. The Liable Entities are: * Amaca Pty Ltd (formerly James Hardie & Coy); * Amaba Pty Ltd (formerly Jsekarb); and * ABN60 Pty Ltd (formerly James Hardie Industries Ltd) The report noted that the Board of James Hardie has agreed that the SPF will also meet Personal Asbestos Claims arising out of mining activities at Baryulguil. Liability Assessment At September 30, 2006, KPMG Actuaries' central estimate of the liabilities of the Liable Entities, taking credit for the anticipated cost savings from the implementation of procedural reforms resulting from the DDT Act 2005 in New South Wales is AU$1,554.8 million (March 2006: AU$1,517.0 million). Within that assessment, KPMG Actuaries estimated that the future cost savings arising from the procedural reforms in NSW as being AU$35.2 million (March 2006:AU$74.5 million). But KPMG noted that the reduction in future cost savings is due to some of the projected cost savings at March 31, 2006, having now been realized owing to internal cost savings initiatives by ACS and the DDT Act 2005 and allowed for in KPMG's base valuation assumptions at September 30, 2006. Accordingly, KPMG Actuaries said that its central estimate of the net liabilities of the Liable Entities before any allowance for future cost savings is AU$1,590.0 million (March 2006: AU$1,591.5 million). If similar reforms as those enacted under the DDT Act 2005 were implemented in States outside of NSW, then KPMG Actuaries' central estimate of the liabilities of the Liable Entities would be AU$1,531.5 million (March 2006: AU$1,468.0 million). That is, KPMG estimated the potential savings from the implementation of procedural reforms in other States at AU$23.3 million (March 2006: AU$49.0 million). However, KPMG noted that there has been no indication of a commitment by the Governments of the other States to accept or implement any procedural reforms at this time. All of the liability figures are discounted and are net of cross-claim recoveries and Insurance Recoveries, KPMG said. KPMG Actuaries further noted that Workers Compensation claims, being claims by current and former employees of the Liable Entities, are included to the extent that a Workers Compensation Scheme or Policy does not meet those liabilities. The amounts of Workers Compensation Claims which are met by the contracts of insurance are not included within the definition of a Personal Asbestos Claim and are therefore not met by the Special Purpose Fund. Workers Compensation claims in excess of the insurance limits of indemnity are included in the definition of Personal Asbestos Claim and therefore, the amounts are met by the SPF. KPMG Actuaries reported that it has not allowed for the future Operating Expenses of the SPF or the Liable Entities in the liability assessments. Uncertainty Estimates of asbestos-related disease liablitites are subject to considerable uncertainty. This includes uncertainty due to: (a) the difficulty in quantifying the extent and pattern of past asbestos exposures and the number and incidence of the ultimate number of lives that may be affected by asbestos related diseases arising from the past asbestos exposures; (b) the propensity of individuals affected by diseases arising from the exposure to file common law claims against defendants; (c) the extent to which the Liable Entities will be joined in the future of common law claims; (d) the fact that the ultimate severity of the impact of the disease and the quantum of the claims that will be awarded will be subject to the outcome of events that have not yet occurred, including: * medical and epidemiological developments; * court interpretations; * the potential for future procedural reforms in other States affecting the legal costs incurred in managing and settling claims in those States; * potential third-wave exposures; and * social and economic conditions like inflation. Therefore, KPMG Actuaries noted it should be expected that the actual emergence of the liabilities will vary from any estimate. Thus, there is no assurance that the actual liabilities of the Liable Entities will not ultimately exceed the estimates contained in the Report and that any variation may be significant. Given this, KPMG Actuaries provided sensitivity tests of the actuarial assessments of the liabilities to changes in some key assumptions. To understand more of these tests and the estimates, a 214-page full-text copy of the Report is available for free at: http://ResearchArchives.com/t/s?14e2 About James Hardie James Hardie Industries Limited -- http://www.jameshardie.com/- - manufactures, markets and distributes fiber cement and gypsum products, fiberglass reinforced plastic and PVC products, sanitary ware and bathroom products, insulating materials and fillers, strippers and adhesives. On July 2, 1998, the then public company announced a plan of reorganization and capital restructuring. James Hardie N.V. was incorporated in August 1998 as an intermediary holding company, with all of its common stock owned by indirect subsidiaries of JHIL. Effective as of November 1998, JHIL contributed its fiber cement businesses, its United States gypsum wallboard business, its Australian and New Zealand building systems businesses and its Australian windows business to JHNV and its subsidiaries. On July 24, 2001, JHIL announced a further plan of reorganization and capital restructuring, which reorganization was completed on October 19, 2001. In connection with the 2001 Reorganization, James Hardie Industries N.V., formerly RCI Netherlands Holdings B.V., issued common shares represented by CHESS Units of Foreign Securities on a one for one basis to existing JHIL shareholders in exchange for their shares such that JHINV became the new ultimate holding company for JHIL and JHNV. Following the 2001 Reorganization, JHINV controls the same assets and liabilities as JHIL controlled immediately prior to the 2001 Reorganization. The Company's troubles began with its "under-funded" allocation for asbestos claims, which were brought in by people who suffer or may have diseases caused by exposure to the asbestos-related products produced by JHIL. In 2001, James Hardie set up an independent entity, Medical Research and Compensation Foundation, to handle asbestos claims. The Foundation has warned that it could run out of money within five years. The Asbestos Diseases Foundation of Australia and workers unions called for all the Company's asbestos profits to be immediately placed in the fund. James Hardie was later accused of topping up the dwindling asbestos fund it established. By 2004, James Hardie's former asbestos manufacturing subsidiaries -- Amaca Pty Ltd, Amaba Pty Ltd, and ABN 60 Pty Ltd -- are three of around 150 defendants in asbestos litigation, and based on the Foundation's own figures, they account for US$1,000,000,000 of the predicted US$6,000,000,000 future asbestos liabilities in Australia. Although James Hardie stopped making asbestos products in 1987, the average 35-year latency of mesothelioma, an asbestos-related disease, means asbestos compensation funds will be needed until mid-century. In a 2005 report by a company-hired actuary from KPMG, it was predicted that 4,915 Australians would contract mesothelioma from exposure to Hardie products in the coming decades. When less serious forms of asbestos-related disease are included, James Hardie should expect to compensate 8,725 victims. On December 1, 2005, the Company announced that the NSW Government and a wholly owned Australian subsidiary of the Company -- LGTDD Pty Ltd -- had entered into a conditional agreement to provide long-term funding to a special purpose fund that will provide compensation for Australian asbestos-related personal injury claims against certain former James Hardie asbestos companies. K & M INVESTMENTS: Members and Creditors to Convene on Dec. 7 ------------------------------------------------------------- The members and creditors of K & M Investments Pty Ltd will hold a final meeting on December 7, 2006, at 10:00 a.m. At the meeting, Liquidator Murray Smith will present an account of the company's wind-up and property disposal activities. The Liquidator can be reached at: Murray Smith McGrathNicol+Partners Level 9, 10 Shelley Street Sydney, New South Wales 2000 Australia Telephone:(02) 9338 2601 Web site: http://www.mcgrathnicol.com About K & M Investments Pty Ltd Headquartered in 246 New Line Rd, Dural in New South Wales, Australia, K & M Investments Pty Ltd is into Industrial Organic Chemicals. MAIDSTONE PTY: Final Meeting Fixed for November 25 -------------------------------------------------- Maidstone Pty Ltd, which is in liquidation, will hold a final meeting for its members and creditors on November 25, 2006, at 10:00 a.m. During the meeting, Liquidator P. G. O' Donoghue will present an account of the company's wind-up proceedings and property disposal exercises. The Liquidator can be reached at: P. G. O'Donoghue O'Donoghue & Co Level 2, 86 Mann Street Gosford, New South Wales 2250 Australia About Maidstone (Australia) Pty Headquartered in New South Wales, Australia, Maidstone (Australia) Pty Limited -- http://www.kendale.com.au-- is trading as Kendale Export. The company's activities include Modular housing, Log Homes, Design, Construction and Architect Design. MR MOOVER: Liquidator W. B. Rangott to Give Wind-Up Report ---------------------------------------------------------- The members and creditors of Mr. Moover Pty Ltd will hold a final meeting on November 29, 2006, at 12:00 p.m. At the meeting, members and creditors will receive Liquidator Rangott's report on the Company's wind-up proceedings. The Liquidator can be reached at: W. B. Rangott Rangott Slaven Chartered Accountants Unit 12, Level 3 Engineering House 11 National Circuit Barton, ACT Australia Web site: http://www.rangottslaven.com.au About Mr Moover Pty Ltd Mr Moover Pty Ltd is located at Lot 2 The Woods The Woods Cl, Murrumbateman in New South Wales, Australia. The company's business involves freight transportation arrangement. NRG ENERGY: Fitch Rates US$1.1 Billion Senior Notes at B+/RR3 ------------------------------------------------------------- On November 10, 2006, Fitch Ratings assigned a rating of 'B+/RR3' on NRG Energy's issuance of US$1.1 billion senior notes due 2011. This issue will rank equally with NRG's other senior unsecured obligations. The Rating Outlook is Stable. On November 3, 2006, Fitch affirmed NRG's ratings following the company's announcement of its hedge reset transaction. The Troubled Company Reporter -- Asia Pacific has reported that Fitch affirmed the issuer default and instrument ratings of NRG after the company's announced hedge reset and capital allocation program. The Rating Outlook is Stable: -- Senior secured term loan B at 'BB'/'RR1'; -- Senior secured revolving credit facility at 'BB'/'RR1'; -- Senior notes to 'B+'/'RR3'; -- Convertible preferred stock at 'CCC+'/'RR6'; and -- Issuer default rating (IDR) at 'B'. Proceeds from the current offering along with cash on hand will be used to fund payments to counter-parties under certain of the company's existing long-term hedging agreements pursuant to agreements to reset the hedge price levels into line with current market prices. While this transaction will increase total debt outstanding, it will also substantially increase cash flow for the 2007 to 2010 period, as well as permit the company to enter into further hedges through 2012. NRG owns and operates a diverse portfolio of power-generating facilities, primarily in Texas and the Northeast, South Central and Western regions of the United States. Its operations include baseload, intermediate, peaking, and cogeneration facilities, thermal energy production, and energy resource recovery facilities. NRG also has ownership interests in generating facilities in Australia and Germany. ROLFE MOTOR: Schedules Final Meeting on December 8 -------------------------------------------------- The final meeting for the members and creditors of Rolfe Motor Corporation No. 2 Pty Ltd, which is in liquidation, has been moved on December 8, 2006, at 10:00 a.m. During the meeting, the members and creditors will receive the final accounts of Liquidator Frank Lo Pilato. The Troubled Company Reporter - Asia Pacific previously reported that the meeting was set on November 17, 2006, at 11:30 a.m. The Liquidator can be reached at: Frank Lo Pilato RSM Bird Cameron Partners Level 1, 103-105 Northbourne Avenue Turner ACT 2612 Australia Telephone: 02 6247 5988 About Rolfe Motor Corporation No 2 Rolfe Motor Corporation No 2 Pty Limited, which is situated at 44 Mort St, Braddon in ACT, Australia, is a dealer of new and used cars. SCOTT BROTHERS: Members and Creditors to Meet on November 29 ------------------------------------------------------------ Scott Brothers Pty Ltd, which is in liquidation, will hold a final meeting for its members and creditors on November 29, 2006, at 12:30 p.m. During the meeting, members and creditors will receive the liquidator's account on the Company's wind-up proceedings and property disposal exercises. The Liquidator can be reached at: W. B. Rangott Rangott Slaven Chartered Accountants Unit 12, Level 3 Engineering House 11 National Circuit Barton, ACT Australia Web site: http://www.rangottslaven.com.au About Scott Brothers Pty Limited Scott Brothers Pty Limited is located at Brinkley Crt, Palmerston in ACT, Australia. The company's line of business is Single-Family Housing Construction. VILLAGE ROADSHOW: To Return AU$131.7 Million to Shareholders ------------------------------------------------------------ With the benefits of its business restructuring and simplification of group structure beginning to flow, Village Roadshow Ltd reveals significant shareholder initiatives in the form of an interim dividend and a return of capital. These two initiatives will result in cash returns to shareholders of AU$131.7 million (approx). In addition, the Company intends to conduct an on-market share buy back of up to 10% of: (a) 10% of outstanding preference shares immediately; and (b) 10% of outstanding ordinary shares in late December 2006. Announcing the initiatives in a joint statement, Village Roadshow's John Kirby, Chairman, and Graham Burke, CEO, said, "after a major restructuring of both our operations and financial base over the last three to five years which has released surplus capital, and with our divisions performing well overall, the Company is in a position to reward shareholders for their understanding during this process." The restructuring and consequent risk mitigation of the Company's businesses has been largely achieved through: 1. the sale of the Company's non-managed exhibition territories now complete with the exit of Italy, UK & New Zealand; 2. the partial sell down of the Company's Austereo holdings during the first quarter of financial 2007 -- the Company intends to maintain its current shareholding of 50.2%; 3. the refinancing last year of the group's film production division with the introduction of Crescent; 4. the acquisition and refinancing of the Warner interest in the Company's Theme Park division; and 5. through the Company's capital management program involving the buy back since March 2004 of 141 million (approx) preference shares and 83 million (approx) ordinary shares as of November 13, 2006. Mr. Kirby further said "with the benefits arising from the restructuring undertaken thus far, the Company, subject always to taking account of trading, capital requirements and circumstances when the dividend is reviewed each year, believes it should be in a position to pay regular dividends in the future." "While the initiatives are earnings per share negative in the current year, we expect substantial EPS growth in the future as we believe the Company's five business units - theme parks, film production, radio, cinema exhibition and film distribution - all have strong underlying cashflows and upside potential for organic and add-on growth," Mr. Kirby noted. Initiatives in Detail The company's new initiatives are: * a fully franked interim dividend to shareholders of 34 cents per ordinary share and 37 cents per A Class preference share to be paid out of profits and reserves totaling AU$92.4 million. The date fixed for the payment is December 4, 2006. The record date to determine entitlement to these dividends will be November 23, 2006; * the Board also proposes a capital return of 15 cents per ordinary share and 15 cents per A Class preference share. This return of capital is subject to the approval by ordinary and preference shareholders of a special resolution at a General Meeting on December 22, 2006. If approved this will total AU$39.3 million. A tax ruling has been sought for the benefit of shareholders to confirm the tax treatment of the capital return. There is a possibility that the tax ruling may result in all or part of the 15 cents per share capital return being deemed to be an unfranked dividend for tax purposes. The return of capital will not involve the cancellation of any shares and, if approved by shareholders, is expected to be paid by early January 2007. The Company does not warrant the outcome of any ruling by the Australian Taxation Office. The record date for the capital return will be set subject To, and following shareholder approval of the special resolution at the General Meeting; * The Directors have approved Village Roadshow commencing an on-market buy back of up to 11 million preference shares in VRL representing 10% of the issued shares in that class. The buy back can commence at any time after the end of the statutory 14-day period after November 13, 2006, and will continue for a maximum period of 12 months (subject to any earlier fulfilment of the buy back limit). Based on the preference share price on November 10, 2006, this would represent a buy back cost of AU$26.4 million to the Company; * the Board disclosed that the Company intends to commence an on-market buy back of up to 15.2 million ordinary shares in VRL, representing 10% of the issued shares in that class. This buy back will be subject to subsequent confirmation by the Board at which time further details in respect of the buy back will be provided to ASX. Based on the ordinary share price on November 10, 2006, this would represent a buy back cost of AU$39.5 million to the Company. It is expected that this buy back will commence in late December 2006; * The independent directors have consulted Village Roadshow's major shareholder, Village Roadshow Corporation Pty Ltd, as to its intention in relation to the ordinary share buy back and have been informed that it is VRC's intention to ensure that its current shareholding percentage in the ordinary share capital of VRL after completion of the ordinary share buy-back will not increase above the current level; * If the buy back of both classes of shares is completed successfully, VRL's combined ordinary and preference shares on issue will total approximately 236 million shares; * The Company has previously stated that its objective is to have between 235 million and 285 million shares on issue so that it can pay dividends on a more regular basis. The successful buy back of an additional 10% of each class of shares of the Company will leave VRL's total shares on issue at 236 million shares. The Company believes that at this level of shares on issue, dividends can be paid more regularly and thus should strengthen and enhance the value of VRL shares. The Company will continue to monitor ongoing capital management opportunities when and if they arise. About Village Roadshow Headquartered in Melbourne, Australia, Village Roadshow Limited -- http://www.villageroadshow.com.au/-- is an international media and entertainment company that operates core businesses in cinema, movie production, film distribution, radio, and theme parks. The Company's troubles began in 2003 when it offered to buy back its preference shares to head off a litigation threat by some preference shareholders who were angered at the Company's suspension of dividend payments. Village Roadshow's reported and budgeted profitability would not allow it to comfortably fund about AU$42 million worth of ordinary and preference share dividends out of annual earnings. For the past years, the Company has been facing major litigation brought by former business partners, who had invested in its film investment scheme. In December 2005, the Film Production division undertook a substantial restructure. As part of this restructure, a US$115 million Promissory Note was issued to Crescent Film Holdings and options to acquire a 50% shareholding in the Hollywood film production and related film exploitation business, Village Roadshow Pictures Group, were granted to Crescent and its affiliates. This initiative, together with the release of a US$70 million security deposit (replaced by a Letter of Credit), returned significant cash reserves to Village Roadshow. By January 2006, Village Roadshow had advised that VRPG had reached agreement with its financiers to increase its film production facility from US$900 million to US$1.4 billion. VRPG will continue to co-produce and co-finance films with its principal production partner, Warner Bros. The revolving period of the facility has also been extended for a further three years. As a result, drawdowns will now be available under the facility until January 2011 (previously February 2008) with the debt now scheduled to be fully repaid by January 2015 (previously January 2012). * * * The Troubled Company Reporter - Asia Pacific reported on March 1, 2006, that Village Roadshow posted a AU$2.21-million loss for the half-year ended December 31, 2006, compared to a net profit of AU$29.99 million in the previous corresponding half. The result is contrary to a profit downgrade in January, which already suggested a break-even figure. The entertainment group blames its poor financial result on lower cinema ticket sales, compounding losses from the restructuring of its movie production business and legal battles. VILLAGE ROADSHOW: To Retire AU$90 Million Core Debt with the ANZ ---------------------------------------------------------------- Based on current market prices, Village Roadshow Limited reports that its on-market buy backs, interim dividend payments, and capital returns will total a cash outflow of approximately AU$198 million which will also be the reduction in total shareholders' equity on completion of the initiatives. On November 10, 2006, Village Roadshow relates that its Theme Parks division successfully signed a new AU$350 million limited recourse debt facility which will be firstly applied to repay the existing Theme Parks debts (AU$115 million) with the balance of AU$235 million repaid to Village Roadshow. The AU$235 million proceeds to be received by Village Roadshow will be used to retire in full its core debt with the ANZ of AU$90 million and the balance of AU$145 million will be added to Village Roadshow's cash reserves. This will result in Village Roadshow's parent company having no material direct recourse external debt facilities with any financier. The completion of the Theme Park financing sees each of Village Roadshow's operating divisions having its own debt facilities secured only against the operating assets of those divisions with no recourse to the company. Village Roadshow will have available for these initiatives cash reserves of approximately AU$230 million including proceeds from the recent sale of Italy and partial sell down of the Company's investment in Austereo. Effect of Capital Management Initiatives Based on the price of Village Roadshow's ordinary shares (AU$2.60) and preference shares (AU$2.40) on November 10, 2006, and prior to any capital return or dividend payment, a buy back of 15.2 million ordinary shares and 11 million preference shares will cost approximately AU$66 million. The combined effect of all three capital management initiatives, if successfully completed, will result in total earnings per share reducing from 11.34 to 9.52 cents per share based on current projections for 2007 profit after tax. Taken in isolation, the impact on earnings per share of the two proposed share buy backs is only marginally negative. The annualized interest revenue foregone after accounting for all three capital management initiatives is not expected to exceed (on an after tax basis) AU$8 million per annum. About Village Roadshow Headquartered in Melbourne, Australia, Village Roadshow Limited -- http://www.villageroadshow.com.au/-- is an international media and entertainment company that operates core businesses in cinema, movie production, film distribution, radio, and theme parks. The Company's troubles began in 2003 when it offered to buy back its preference shares to head off a litigation threat by some preference shareholders who were angered at the Company's suspension of dividend payments. Village Roadshow's reported and budgeted profitability would not allow it to comfortably fund about AU$42 million worth of ordinary and preference share dividends out of annual earnings. For the past years, the Company has been facing major litigation brought by former business partners, who had invested in its film investment scheme. In December 2005, the Film Production division undertook a substantial restructure. As part of this restructure, a US$115 million Promissory Note was issued to Crescent Film Holdings and options to acquire a 50% shareholding in the Hollywood film production and related film exploitation business, Village Roadshow Pictures Group, were granted to Crescent and its affiliates. This initiative, together with the release of a US$70 million security deposit (replaced by a Letter of Credit), returned significant cash reserves to Village Roadshow. By January 2006, Village Roadshow had advised that VRPG had reached agreement with its financiers to increase its film production facility from US$900 million to US$1.4 billion. VRPG will continue to co-produce and co-finance films with its principal production partner, Warner Bros. The revolving period of the facility has also been extended for a further three years. As a result, drawdowns will now be available under the facility until January 2011 (previously February 2008) with the debt now scheduled to be fully repaid by January 2015 (previously January 2012). * * * The Troubled Company Reporter - Asia Pacific reported on March 1, 2006, that Village Roadshow posted a AU$2.21-million loss for the half-year ended December 31, 2006, compared to a net profit of AU$29.99 million in the previous corresponding half. The result is contrary to a profit downgrade in January, which already suggested a break-even figure. The entertainment group blames its poor financial result on lower cinema ticket sales, compounding losses from the restructuring of its movie production business and legal battles. ================================ C H I N A & H O N G K O N G ================================ AGRICULTURAL BANK: Files Revised Reform Plan to State Council ------------------------------------------------------------- The Agricultural Bank of China, has submitted its revised restructuring plan before the State Council, the China Daily says, citing a report from the China Securities Journal on November 10, 2006. The paper cites Han Zhongqi, the bank's vice president, as saying that they are sticking to the plan of listing the whole company instead of breaking it up which could prove more risky. Mr. Han added that the lender will kick off restructuring after spinning off its losses, and will follow up with moves to bring in foreign strategic investors, the Daily relates. On November 9, 2006, the Troubled Company Reporter - Asia Pacific reported that the Chinese Banking Regulatory Commission has rejected a reform plan submitted by the Agricultural Bank. The TCR-AP, citing a report from China Daily said that the lender's reform plan requires the bank to be listed as a whole company instead of being broken into smaller units. Estimated cost of the reform plan was expected to reach US$100 billion. However, the TCR-AP cited China Knowledge saying that regulators have considered breaking the bank up and listing the best parts or listing those areas of the bank that are not in line with government-mandated policy lending. * * * The Agricultural Bank of China -- http://www.abocn.com/-- is the mainland's fourth largest bank. It has lagged behind other major Chinese commercial banks, which have received government injections of new capital and been allowed to link up with foreign partners in preparation for raising money on foreign stock exchanges. Despite posting operating profits of over CNY42.4 billion in 2005, the Bank is still carrying billions of dollars in unpaid loans to state companies, which it says accounted for 26% of its lending at the end of last year. The Troubled Company Reporter - Asia Pacific reported on June 27, 2006, that the National Audit Office found accounting irregularities involving CNY51.6 billion, CNY14.27 billion of which come from deposit business, CNY27.62 billion from loan grants, and CNY9.72 billion from fraudulent bill issuance. Fitch Ratings gave the Bank an 'E' Individual rating. BALLY TOTAL: Posts US$5.7 Million Third Quarter 2006 Net Loss ------------------------------------------------------------- Bally Total Fitness Holding Corp. incurred a US$5.7-million, or 14 cents per share, net loss from continuing operations in the third quarter of 2006, Reuters reports. Reuters relates that Bally Total's net loss increased in the third quarter of 2006, from a net loss of US$214,000, or a penny per share, in the same period of 2006. Bally Total told Reuters that its performance was hurt by unfavorable pricing and membership trends. Bally Total's net revenue increased slightly to US$248.37 million in the third quarter of 2006, from US$247.9 million in the third quarter of 2005, Reuters states. * * * Chicago, Ill.-based Bally Total Fitness Holding Corp. (NYSE: BFT) -- http://www.Ballyfitness.com/-- is a commercial operator of fitness centers, with over 400 facilities located in 29 states, Mexico, Canada, Korea, the Caribbean, and China under the Bally Total Fitness, Bally Sports Clubs, and Sports Clubs of Canada brands. * * * As reported in the Troubled Company Reporter on Oct. 19, 2006, Moody's Investors Service affirmed its junk credit ratings for Bally Total Fitness Holding Corp., including the company's US$235 million 10.5% senior unsecured notes (guaranteed) due 2011 and US$300 million 9.875% senior subordinated notes due 2007. Moody's said the rating outlook remains negative. BALLY TOTAL: Will Launch Operations in Jacksonville --------------------------------------------------- Kevin Craig, a franchisee of Bally Total Fitness, will launch the firm's first health club at the intersection of Baymeadows Road and Philips Highway in Jacksonville, the Florida Times- Union reports. The Times-Union states that the first Bally Total location will be in a new shopping center owned by Ash Properties Inc. Hawk St. John, Ash Properties commercial leasing consultant, told the Times-Union that Bally Total signed the lease for his location on Nov. 3. He said he expects the gym to help attract clients for other tenants in the center. "It will be a perfect complement to the location," Mr. St. John commented to the Times-Union. The Times-Union underscores that the Baymeadows location will open in a temporary, 4,500-square-foot site in January 2007, which will then be expanded to 33,000 square feet. Mr. Craig told the Times-Union, "Our great advantage is that we're buying a successful operations model. We also have a brand awareness from the US$50 million national ad campaign that Bally already airs locally." According to the Times-Union, Mr. Craig hopes to add several locations over the next few years. Bally Total already holds a large share of the health club industry that brought in US$15.9 billion in revenue in 2005, the Times-Union says, citing the International Health, Racquet & Sportsclub Association. Bob Moschorak, Bally Total's managing director of franchising, explained to the Times-Union that until recently the firm's national franchise program was dormant. The company has also struggled financially, almost defaulting on existing debt before creditors kicked in US$284 million in loans to refinance it. The Times-Union relates that Bally Total re-launched its US franchise program in June. It will focus franchising in markets where the firm has no unit. Bally Total's national advertising sometimes makes pent-up demand in markets where locations don't exist, like as Jacksonville, the Times-Union notes, citing Mr. Moschorak. Mr. Moschorak told the Times-Union, "This is a key example of the type of strategy Bally is putting in place. It complements the existing investment we've made in our brand and infrastructure." Officials at other local gyms stated that they don't expect Bally Total to eat into their share of the market, the Times- Union notes. Having more gym-oriented advertising might even boost the percentage of the population that goes to a gym, the Times-Union says, citing Jay Kaplan, chief operating officer of Gold's Gym. Mr. Kaplan told the Times-Union, "It gets people shopping. Whether they stop at a Gold's Gym first or a competitor first, it still gets people off the couch and out looking for health club memberships." Bally Total's move could help attract more clients into health clubs, David Bailey, co-owner of Bailey's Powerhouse Gym, commented to the Times Union. He is, however, concerned customers might confuse the Bally Total with his firm. * * * Chicago, Ill.-based Bally Total Fitness Holding Corp. (NYSE: BFT) -- http://www.Ballyfitness.com/-- is a commercial operator of fitness centers, with over 400 facilities located in 29 states, Mexico, Canada, Korea, the Caribbean, and China under the Bally Total Fitness, Bally Sports Clubs, and Sports Clubs of Canada brands. * * * As reported in the Troubled Company Reporter on Oct. 19, 2006, Moody's Investors Service affirmed its junk credit ratings for Bally Total Fitness Holding Corporation, including the company's US$235 million 10.5% senior unsecured notes (guaranteed) due 2011 and US$300 million 9.875% senior subordinated notes due 2007. Moody's said the rating outlook remains negative. BELLUNO INVESTMENTS: Names Corkhill and Bruce as Liquidators ------------------------------------------------------------ On October 23, 2006, by a special resolution, Thomas Andrew Corkhill and Iain Ferguson Bruce were appointed as joint and several liquidators of Belluno Investments Ltd. The Joint Liquidators can be reached at: Thomas Andrew Corkhill Iain Ferguson Bruce 8/F, Gloucester Tower The Landmark 15 Queen's Road, Central Hong Kong DR. B.M. KOTEWALL: Members to Receive Wind-Up Report on Dec. 4 -------------------------------------------------------------- Members of Dr. B. M. Kotewall Foundation Ltd will hold a final general meeting on December 4, 2006, at 10:00 a.m., to receive Liquidator Chan Yu Ling's account of the company's wind-up proceedings. The Troubled Company Reporter - Asia Pacific reported that Mr. Ling required Company's creditors to submit their proofs of claim on October 28, 2006. The Liquidator can be reached at: Chan Yu Ling Room 602, Aon China Building 29 Queen's Road, Central Hong Kong ENCHANTING (HK): Court to Hear Wind-Up Petition on December 13 -------------------------------------------------------------- The High Court of Hong Kong will hear a wind-up petition filed against Enchanting (Hong Kong) Ltd on December 13, 2006, at 9:30 a.m. Hung Yee Wan June filed the petition with the Court on October 16, 2006. The Solicitors for the Petitioner can be reached at: Joe Poon 34/F, Hopewell Centre 183 Queen's Road East Wanchai Hong Kong ESSERY ESTATES: Final Meeting Slated for December 13 ---------------------------------------------------- On December 13, 2006, Essery Estates Ltd will hold a final meeting: * for its members at 3:00 p.m.; and * for its creditors at 3:30 p.m. During the meetings, Liquidator Kong Chi How, Johnson will present an account of the Company's wind-up and property disposal exercises. As reported by the Troubled Company Reporter - Asia Pacific, the Company's creditors were required to file their proofs of claim on August 17, 2006. The Liquidator can be reached at: Kong Chi How 29/F, Wing On Centre 111 Connaught Road, Central Hong Kong GOSPELS DEBATING: Creditors' Proofs of Claim Due on Dec. 31 ----------------------------------------------------------- Liquidator Wong Leung Wai requires the creditors of Gospels Debating Society Ltd to submit their proofs of claim by December 31, 2006. Failure to comply with the requirement will exclude a creditor from sharing in any distribution the Company will make. The Liquidator can be reached at: Wong Leung Wai Room 2001-4 China Insurance Group Building 141 Des Voeux Road, Central Hong Kong GUANGDONG DEVELOPMENT: IBM to Join CitiGroup's Consortium --------------------------------------------------------- International Business Machines Corp plans to join a consortium led by Citigroup Inc. in a bid for a majority stake in Guangdong Development Bank for US$3 billion, various reports say, citing sources familiar with the matter. Based on the reports, IBM may take 5% of Guangdong Development as part of the deal agreed with the Citigroup. However, IBM, Citigroup, and Guangdong Development declined to comment on the issue. According to the Troubled Company Reporter - Asia Pacific, the bidding for Guangdong Development began last year when Citigroup formed a consortium that was reported to be seeking majority shares in the bank. The Citigroup consortium offered around US$3 billion for 85% of the bank, where Citigroup will take 40% to 45% of the shares negotiated. Bloomberg relates that the alliance may help IBM win contracts from Guangdong Development to upgrade computer systems. "They're not directly in the banking business so their strategy may be more aligned with GDB," Bloomberg cites Maria Xuereb, a partner of Deloitte Touche Tohmatsu in Hong Kong, as saying. Daniel Cohen, Beijing-based vice president of IBM's financial services arm in the country told Bloomberg that financial services account for more than half of IBM's China revenue. IBM's customers include China Minsheng Banking Corp., Bank of Communications Ltd. and Agricultural Bank of China, Mr. Cohen revealed. Rival bidder, Societe Generale, meanwhile, reduces its target stake in the bank to 19.9% from 25%, to comply with Chinese regulations capping foreign investment. Chinese law only allows 25% foreign ownership of a Chinese bank. * * * Guangdong Development Bank -- http://ebank.gdb.com.cn/-- is a bank based in Guangzhou, Guangdong, People's Republic of China. The bank was founded in 1988. Fitch Ratings on August 14, 2006, affirmed Guangdong Development Bank's Individual 'E' and Support '4' ratings. According to Fitch, Guangdong Development Bank's Individual 'E' rating reflects its very weak profitability, large stock of NPLs, low capital and poor disclosure. HARBOUR RING: Members Appoint Joint Liquidators ----------------------------------------------- At an extraordinary general meeting held on October 25, 2006, members of Harbour Ring Dharmala (H.K.) Ltd passed a special resolution to appoint Ying Hing Chiu and Chung Miu Yin Diana as joint and several liquidators. The Joint Liquidators can be reached at: Ying Hing Chiu Chung Miu Yin, Diana Level 28, Three Pacific Place 1 Queen's Road East Hong Kong MBF CREDIT: Creditors Must Prove Debts by December 4 ---------------------------------------------------- Creditors of MBf Credit Ltd are required to submit their proofs of claim by December 4, 2006, to Liquidators Wong Poh Weng and Wong Tak Man Stephen. Failure to prove claims by the due date will exclude a creditor from sharing in any distribution the Company will make. On November 10, 2006, the Troubled Company Reporter - Asia Pacific reported that the company's shareholders resolved to voluntarily wind up the company's operations. The Liquidators can be reached at: Wong Poh Weng Wong Tak Man Stephen 7/F, Allied Kajima Building 138 Gloucester Road Hong Kong PETROLEO BRASILEIRO: Extends Contract Renegotiation with Bolivia ---------------------------------------------------------------- Petroleo Brasileiro, the state-run oil firm of Brazil, said in a statement that it will extend the renegotiation of its gas export contract with Yacimientos Petroliferos Fiscales Bolivianos, its Bolivian counterpart, by 30 days from the Nov. 10 deadline. Business News Americas relates that Petroleo Brasileiro and Yacimientos Petroliferos have twice before delayed negotiations. At first, the two firms decided on a 60-day period, which was then extended to 30 days. The Bolivian government had complained that the export price to Brazil of US$3.6/MBTU (million British thermal unit) is too low. Meanwhile, Petroleo Brasileiro argued the Brazilian clients would not accept a price raise, BNamericas states. Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA 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 on 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. PETROLEO BRASILEIRO: Refinery Project with Venezuela Under Way -------------------------------------------------------------- Eduardo Campos, Pernambuco, Brazil's governor, told the Associated Press that Petroleo Brasileiro's oil refinery project with Petroleos de Venezuela in Pernambuco is under way. El Universal relates that the planned refinery will process equal volumes of Brazilian Marlim crude oil and extra-heavy crude oil from Venezuela Orinoco belt. The cost of the plant has not been disclosed. However, sources told El Universal that the construction of the plant could cost up to US$2.8 billion. Oil authorities of Venezuela hinted that Petroleo Brasileiro and Petroleos de Venezuela will hold a 50% stake each in the plant, el Universal notes. Paulo Roberto Costa, Petroleo Brasileiro's supply and refining director, told el Universal that the firm and Petroleos de Venezuela agreed to process 200,000 barrels per day at the plant. Mr. Campos told El Universal that Brazil's President Luiz Inacio Lula da Silva will be visiting Venezuela to discuss the project with Hugo Chavez, his Venezuelan counterpart. Construction is expected to begin in 2007 and could be completed in 2010 or 2011, El Universal says, citing Mr. Campos. About Petroleos de Venezuela Petroleos de Venezuela SA is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. About Petroleo Brasileiro Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA 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 on 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. SMITHKLINE BEECHAM: Members' Final Meeting Set for December 4 ------------------------------------------------------------- Members of Smithkline Beecham Ltd will hold a final meeting on December 4, 2006, at 10:00 a.m., to receive an account of the Company's wind-up proceedings and property disposal exercises from the Joint Liquidators. According to the Troubled Company Reporter - Asia Pacific, the liquidators required the Company's creditors to lodge their proofs of claims on March 17, 2006. The Joint Liquidators can be reached at: Ying Hing Chiu Chung Miu Yin, Diana Level 28, Three Pacific Plate 1 Queen's Road East Hong Kong UNICHEM ENTERPRISES: Wind-Up Petition Hearing Set on Dec. 13 ------------------------------------------------------------ A wind-up petition filed against Unichem Enterprises Company Ltd will be heard before the High Court of Hong Kong on December 13, 2006, at 9:30 a.m. Ying Hung Din filed the petition with the Court on October 18, 2006. The Solicitors for the Petitioner can be reached at: Joe Poon 34/F, Hopewell Centre 183 Queen's Road East Wanchai Hong Kong YUET KONG: Court Sets Wind-Up Petition Hearing on December 6 ------------------------------------------------------------ A liquidation petition filed against Yuet Kong International Engineering Co Ltd will be heard before the High Court of Hong Kong on December 6, 2006, at 9:30 a.m. Au Malosanto filed the petition with the Court on October 6, 2006. The Solicitors for the Petitioner can be reached at: Joe Poon 34/F, Hopewell Centre 183 Queen's Road East Wanchai Hong Kong ========= I N D I A ========= BALLY TECH: Secures US$131-Million Oregon State Lottery Contract ---------------------------------------------------------------- The Oregon State Lottery Commission has authorized Dale Penn, the lottery director, to enter into a contract to purchase 2,300 machines valued at over US$31 million from Bally Technologies, Inc. Seeking to replace a large number of legacy machines, the Oregon Lottery engaged Bally Technologies and three other companies in an evaluation process. The Oregon Lottery awarded 100% of the procurement to Bally Technologies. The contract will cover the purchase of 2,300 machines -- all in the form of Bally's innovative wide-screen CineVision(TM) cabinet -- and related game software. The first 200 machines will be placed in Oregon Lottery retail locations beginning in June 2007, with the balance to be installed in the following months. Mr. Penn commented, "The Oregon Lottery is excited about the dynamic look of the CineVision VLT and the revenue potential we will have with this new video lottery model and game mix." Richard Haddrill, chief executive of Bally Technologies, said, "Clearly this is a ringing endorsement of Bally's innovative video game offerings and the unique CineVision cabinet. This contract will give us an immediate 20% lottery market share in Oregon and positions Bally to be a long-term partner with the Oregon Lottery as it continues to grow and prosper. I believe this deal is also further proof of Bally's ability to offer innovative products that conform to the technology standards for both traditional and non-traditional markets in North America and beyond." For the past fiscal year ended June 30, 2006, the Oregon Lottery registered US$1.09 billion in sales, marking the first time in the Lottery's 21-year history that sales reached the billion- dollar level. Bolstered by those record sales, an all-time high US$483.6 million of lottery profits were transferred to the State Economic Development Fund this fiscal year. The Oregon Lottery's previous high sales mark was reached in fiscal year 2005 with sales totaling US$937 million. The earlier record transfer to the State was also in fiscal year 2005 with transfers of more than US$415.8 million. Since the Oregon Lottery began in 1985, nearly US$4.8 billion in lottery profits has gone to public education, economic development, state parks, watershed enhancement, and salmon habitat restoration across the state. Looking ahead, in the present biennium alone, the Oregon Lottery is projected to provide US$1.05 billion for these programs. * * * Las Vegas, Nev.-based Bally Technologies, Inc. (NYSE: BYI) -- http://www.BallyTech.com/-- designs, manufactures, operates, and distributes advanced gaming devices, systems, and technology solutions worldwide. Bally Technologies' product line includes reel-spinning slot machines, video slots, wide-area progressives and Class II lottery and central determination games and platforms. Bally Technologies also offers an array of casino management, slot accounting, bonus, cashless, and table management solutions. The company also owns and operates Rainbow Casino in Vicksburg, Miss. The company's South American operations are located in Argentina. The company also has operations in Macau, China and India. * * * As reported in the Troubled Company Reporter on Aug. 16, 2006, Standard & Poor's Ratings Services held its ratings on Bally Technologies Inc., including the 'B' corporate credit rating, on CreditWatch with negative implications. BHARTI AIRTEL: Offers Software Services to SMBs with Microsoft -------------------------------------------------------------- Microsoft and Bharti Airtel Ltd. inked a strategic partnership that will offer a range of software and services for small and medium businesses in India. The partnership will begin by offering to Indian SMBs Microsoft Solutions for Hosted Messaging and Collaboration. It will also offer other hosted applications like CRM, Accounting, ERP, Unified Communications and select Microsoft ISV applications. In unique software cum service solution model, Airtel is working in close co-operation with Microsoft to provide enterprise-class software bundled with connectivity solutions to small businesses that do not have dedicated IT resources. This service is predominantly aimed at companies with five or more employees, and is expected to be available in January 2007. These companies will now be able to enjoy the same experience as large enterprise customers without initial investments using a pay-as- you-go model. This new professional messaging and collaboration service will give small businesses the ability to access secure enterprise grade e-mail, secure instant messaging and intranet portals with rich collaboration capabilities, whether they are in the office or on the road. This follows the strategic partnership between Airtel and Microsoft that enables Airtel customers to access corporate email via direct push technology using Microsoft's Windows Mobile(R) 5.0 platform. Managed entirely by Airtel, these services will allow businesses to communicate more efficiently, reduce administrative and IT overheads and connect employees with business-critical information whenever and wherever they need it. "SMB vertical in India have huge potential and offer an exciting opportunity for Bharti. We estimate total telecom spend in the SMB space to be around INR18,000 Crores. IDC estimates that IT spending by SMBs would grow by 17% which is the highest in Asia Pacific. With integrated capabilities across wire-line, wireless, data & managed services, Bharti is in a unique position to be the preferred partner to provide Telecom and Networking solutions to this segment. We are pleased to partner with Microsoft to offer to Indian SMBs this unique business model." Said Rakesh Bharti Mittal, Vice Chairman, Bharti Enterprises. "Microsoft is thrilled to be working with Bharti to deliver advanced, enterprise-class features once reserved only for corporations with extensive IT budgets," said Steve Ballmer, CEO of Microsoft. "We believe that small and medium businesses will be able to see the benefits of this solution very quickly." About Bharti Airtel Headquartered in New Delhi, India, Bharti Airtel Limited -- http://www.bhartiairtel.in/-- is a telecom services provider. The company has three business units: Mobile Services, Broadband & Telephone Services (B&TS) and Enterprise Services. The Mobile Services business unit offers mobile services in all 23 telecom circles of India. The B&TS business unit provides broadband and telephone services in 90 cities across India. The Enterprise Services business unit has two sub-units: Carriers (long- distance services) and Corporates. Through Enterprise Services- Carriers, Bharti Airtel provides national and international long-distance services. The Enterprise Services-Corporates business unit provides integrated voice and data communications solutions to corporate customers and small and medium-size enterprises. * * * The Troubled Company Reporter - Asia Pacific reported on June 28, 2006, that Fitch Ratings has affirmed Bharti Airtel Limited's long-term foreign currency issuer default rating at BB+. The outlook on the rating remains stable. Additionally, Standard and Poor's Rating Service gave the company's long-term local and foreign issuer credit BB+ ratings on September 21, 2005. BHARTI AIRTEL: Issues 206,791 Shares on FCCB Conversion ------------------------------------------------------- Bharti Airtel Ltd, on October 28, 2006, issued 206,991 fully paid-up equity shares of the company upon conversion of US$1,108,000 Foreign Currency Convertible Bonds. With the share allotment, the equity base of Bharti Airtel increased 1,895,492,748 to 1,895,699,739 shares of INR10 each. About Bharti Airtel Headquartered in New Delhi, India, Bharti Airtel Limited -- http://www.bhartiairtel.in/-- is a telecom services provider. The company has three business units: Mobile Services, Broadband & Telephone Services (B&TS) and Enterprise Services. The Mobile Services business unit offers mobile services in all 23 telecom circles of India. The B&TS business unit provides broadband and telephone services in 90 cities across India. The Enterprise Services business unit has two sub-units: Carriers (long- distance services) and Corporates. Through Enterprise Services- Carriers, Bharti Airtel provides national and international long-distance services. The Enterprise Services-Corporates business unit provides integrated voice and data communications solutions to corporate customers and small and medium-size enterprises. * * * The Troubled Company Reporter - Asia Pacific reported on June 28, 2006, that Fitch Ratings has affirmed Bharti Airtel Limited's long-term foreign currency issuer default rating at BB+. The outlook on the rating remains stable. Additionally, Standard and Poor's Rating Service gave the company's long-term local and foreign issuer credit BB+ ratings on September 21, 2005. CANARA BANK: Discovers Loan Scam; Punishes Five Officers -------------------------------------------------------- Through an internal inquiry, Canara Bank unearthed a loan scam in one its Delhi branches. According to the Times of India, Canara Bank is now initiating disciplinary actions against five of its senior officers who are believed to be involved in the scam. The investigation, the Times relates, revealed that the Delhi branch disbursed loans of INR60 to INR70 lakh each to at least 100 fictitious companies with fake PAN numbers, addresses and non-existing guarantees. Among the five officers is an assistant general manager with the bank in Mumbai who, until June 2006, was one of the senior-most official of the bank posted in the capital, the Times says, citing unnamed sources. The executive purportedly cleared loans worth about INR50 million a month between July 13, 2005, to June 5, 2006, before being promoted and posted to Mumbai. According to the newspaper's sources, the bank initiated the probe after receiving a letter from the Enforcement Directorate seeking information related to the loans disbursed by the assistant GM. The investigative agency is also checking for possible money laundering, the newspaper adds. About Canara Bank Headquartered in Bangalore, India, Canara Bank -- http://www.canbankindia.com/-- provides services to a diverse clientele group with a range of subsidiaries and sponsored institutions. The bank services include networked automated teller machines, anywhere banking, telebanking, remote access terminals Internet, and mobile banking and debit card. The bank's Merchant Banking Division handles assignments as arrangers/lead manager/co-manager/manager to the offer/advisor/share valuator. Bancassurance arm of the Bank has tie up arrangements in both life and non-life insurance segments. Corporate Cash Management Services network of the Bank provides services related to local and upcountry cheque collection, bulk cheques collection and zero balance account facility. Executor, Trustee and Taxation Services of the bank provides services, such as debenture trusteeship, will and executorship, trusteeship, personal tax assistance and power of attorney services. Its Agricultural Consultancy Services handled 60 projects during the fiscal year ended March 31, 2006. Fitch Ratings gave Canara Bank an individual rating of 'D' on June 1, 2005. Moreover, as reported in the Troubled Company Reporter - Asia Pacific on Nov. 13, 2006, Fitch assigned a 'BB' ratings to the proposed hybrid Tier I notes as well as the unsecured subordinated upper Tier II bonds to be issued under the bank's US$1 billion medium-term notes program. CANARA BANK: Government Nominates Amitabh Verma to Director Post ---------------------------------------------------------------- Canara Bank informed the Bombay Stock Exchange that the Central Government of India nominated Shri Amitabh Verma, Joint Secretary, Ministry of Finance Banking Division, as a Director of the Bank. Mr. Verma will be replacing Shri G C Chaturvedi. About Canara Bank Headquartered in Bangalore, India, Canara Bank -- http://www.canbankindia.com/-- provides services to a diverse clientele group with a range of subsidiaries and sponsored institutions. The bank services include networked automated teller machines, anywhere banking, telebanking, remote access terminals Internet, and mobile banking and debit card. The bank's Merchant Banking Division handles assignments as arrangers/lead manager/co-manager/manager to the offer/advisor/share valuator. Bancassurance arm of the Bank has tie up arrangements in both life and non-life insurance segments. Corporate Cash Management Services network of the Bank provides services related to local and upcountry cheque collection, bulk cheques collection and zero balance account facility. Executor, Trustee and Taxation Services of the bank provides services, such as debenture trusteeship, will and executorship, trusteeship, personal tax assistance and power of attorney services. Its Agricultural Consultancy Services handled 60 projects during the fiscal year ended March 31, 2006. Fitch Ratings gave Canara Bank an individual rating of D on June 1, 2005. Moreover, as reported in the Troubled Company Reporter - Asia Pacific on Nov. 13, 2006, Fitch assigned a 'BB' ratings to the proposed hybrid Tier I notes as well as the unsecured subordinated upper Tier II bonds to be issued under the bank's US$1 billion medium-term notes program. CATHOLIC SYRIAN BANK: To Raise INR35 Crore by Private Placement --------------------------------------------------------------- To raise about INR35 crore, Catholic Syrian Bank is negotiating with Mauritius-based investors for the private placement of a 15% stake in the bank, the Business Standard reports. If the Reserve Bank of India permits, Catholic Syrian intends to place the entire 15% interest with a single investor or with just two -- 10% with one investor and 5% with the other -- the Business Standard states, citing unnamed banking sources. Catholic Syrian expects to get RBI's permission soon and complete the deal early December 2006. According to the newspaper's sources, Catholic Syrian will raise another INR35 crore through a rights offering immediately after the private placement. The Bank's shareholders had authorized its board of directors to raise as much as INR100 crore through fresh issue of shares to raise the bank's worth to INR300 crore, the newspaper says. About Catholic Syrian Bank Headquartered in Kerala, India, Catholic Syrian Bank Ltd -- http://www.csb.co.in/-- offers regular banking services and has a strong bancassurance business. At present, the bank has a network of 334 branches/extension counters, which includes five NRI branches, five SSI branches, five industrial Finance branches and four Service branches. The bank also plans to open more number of branches in a phased manner. Fitch Ratings gave Catholic Syrian Bank a support rating of 5 effective on December 22, 2005. CITY UNION BANK: Fixes Maximum Foreign Shareholding Limit at 26% -------------------------------------------------------------- City Union Bank Ltd's board of directors, at its meeting held on October 30, 2006, resolved to fix a maximum investment limit of 26% of the paid up capital of the bank for Foreign Investors. The present shareholding of Foreign Investor is 5.8129% of the Bank's paid up capital. About City Union Bank City Union Bank Limited -- http://cityunionbank.com/-- provides savings accounts, current accounts, fixed deposits, cash certificates, monthly savings, VIP deposit schemes, Flexifix deposits, CUB Smart deposits and the insurance linked Multiple Benefits Plan. As reported in the Troubled Company Reporter - Asia Pacific on August 8, 2006, Fitch Ratings affirmed City Union's Individual and Support ratings at 'D/E' and '5', respectively. CORPORATION BANK: Outsources ATM Management to Euronet ------------------------------------------------------ Corporation Bank entered into an ATM Outsourcing Agreement with Euronet Worldwide Inc. for 915 automated teller machines. Under the deal, Euronet will provide ATM outsourcing services, including 24x7 monitoring, help desk, vendor management, cash forecasting and software distribution along with various field maintenance services to Corporation Bank, Eurone states in a press release. Initially, however, Euronet will not be providing transaction- processing services for Corporation Bank's ATMs. Over time, the parties expect to expand the scope of the services pursuant to the agreement. 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. GENERAL MOTORS: Higher Costs Result to Car Price Hike in 2007 ------------------------------------------------------------- General Motors Corp. has raised prices on about one-third of its 2007 model-year vehicles in the United States to cover increased costs for steel and other commodities, Reuters reports. The price increases range from US$60 to US$425 per vehicle at an average of about 0.5% increase per vehicle, affecting 239 of GM's 681 vehicle models and its variants, the report said. General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the world's largest automaker has been the global industry sales leader since 1931. Founded in 1908, GM employs about 317,000 people around the world. It has manufacturing operations in 32 countries, including India, and its vehicles are sold in 200 countries. * * * As reported in the TCR-Europe on Oct. 11, Standard & Poor's Ratings Services said that its 'B' long-term and 'B-3' short term corporate credit ratings on General Motors Corp. would remain on CreditWatch with negative implications, where they were placed March 29, 2006. As reported in the Troubled Company Reporter on July 27, 2006, Dominion Bond Rating Service downgraded the long-term debt ratings of General Motors Corporation and General Motors of Canada Limited to B. The commercial paper ratings of both companies are also downgraded to R-3 (low) from R-3. As reported in the TCR on June 22, 2006, Fitch assigned a rating of 'BB' and a Recovery Rating of 'RR1' to General Motor's new US$4.48 billion senior secured bank facility. The 'RR1' is based on the collateral package and other protections that are expected to provide full recovery in the event of a bankruptcy filing. In a TCR-Europe report on June 22, Moody's Investors Service assigned a B2 rating to the secured tranches of the amended and extended secured credit facility of up to US$4.5 billion being proposed by General Motors Corporation, affirmed the company's B3 corporate family and SGL-3 speculative grade liquidity ratings, and lowered its senior unsecured rating to Caa1 from B3. Moody's said the rating outlook is negative. GENERAL MOTORS: Selling Hybrid Cars to Chinese Market in 2008 ------------------------------------------------------------- General Motors Corp. will launch its hybrid cars in China beginning 2008, in time for the Beijing Olympics, Geoff Dyer of the Financial Times reports. GM chief executive Rick Wagoner revealed that it will work with its local partner Shanghai Automotive Industry Corp. to provide alternative energy vehicles for the fast-growing Chinese market, FT relates. According to the report, GM would continue its investment in China despite the group's cost pressures. Mr. Wagoner said that the company is buying more parts locally in order to cut costs in its China operations in order to maintain a healthy profit while lowering prices, Gordon Fairclough writes for The Wall Street Journal. General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the world's largest automaker has been the global industry sales leader since 1931. Founded in 1908, GM employs about 317,000 people around the world. It has manufacturing operations in 32 countries, including India, and its vehicles are sold in 200 countries. * * * As reported in the TCR-Europe on Oct. 11, Standard & Poor's Ratings Services said that its 'B' long-term and 'B-3' short term corporate credit ratings on General Motors Corp. would remain on CreditWatch with negative implications, where they were placed March 29, 2006. As reported in the Troubled Company Reporter on July 27, 2006, Dominion Bond Rating Service downgraded the long-term debt ratings of General Motors Corporation and General Motors of Canada Limited to B. The commercial paper ratings of both companies are also downgraded to R-3 (low) from R-3. As reported in the TCR on June 22, 2006, Fitch assigned a rating of 'BB' and a Recovery Rating of 'RR1' to General Motor's new US$4.48 billion senior secured bank facility. The 'RR1' is based on the collateral package and other protections that are expected to provide full recovery in the event of a bankruptcy filing. In a TCR-Europe report on June 22, Moody's Investors Service assigned a B2 rating to the secured tranches of the amended and extended secured credit facility of up to US$4.5 billion being proposed by General Motors Corporation, affirmed the company's B3 corporate family and SGL-3 speculative grade liquidity ratings, and lowered its senior unsecured rating to Caa1 from B3. Moody's said the rating outlook is negative. UNIVERSAL CORP: Earns US$28.3MM in Quarter Ended Sept. 30, 2006 --------------------------------------------------------------- Allen B. King, chairman, president, and chief executive officer of Universal Corp., disclosed that income from continuing operations for the quarter ended Sept. 30, 2006, was US$28.3 million, compared with US$23.1 million last year. After accounting for a loss on the sale of the company's Dutch non-tobacco businesses on Sept. 1, 2006, and the results of those operations prior to the sale, net income for the quarter was US$3.1 million, compared with US$26.5 million last year. Revenues in the quarter were US$630 million, up 6.7% from the same period last year principally due to higher sales prices in Brazil, which were mostly related to currency changes there. For the six months ended Sept. 30, 2006, income from continuing operations was US$13.2 million, including the effect of a US$12.3 million impairment charge on long-lived assets in Zambia, on which no tax benefit was recognized, and a US$4.9 million valuation allowance on deferred tax assets there. The total effect of these issues related to Zambia was a reduction of net income of US$17.2 million. Net income for the six months was US$0.7 million, including the sale of the Dutch non-tobacco businesses and the results of those operations prior to sale. After accounting for preferred dividends, the net loss per diluted share was US$0.25. Revenues for the six months increased by about 9%, to US$1.15 billion, due to strong carryover sales in the current year's first quarter in the United States and higher sales prices in Brazil. On Sept. 1, 2006, Universal Corp. completed the sale of the non- tobacco businesses managed by its wholly owned subsidiary, Deli Universal Inc. Those businesses were in the lumber and building products distribution segment and a portion of the agri-products segment. The total value of the transaction was US$567 million. After selling and other expenses, the company realized a net value of approximately US$552 million, consisting of net cash proceeds of US$398 million and the buyer's assumption of US$154 million in debt of the acquired businesses. Universal Corp.'s financial statements now report the results and financial position of the businesses that were sold as discontinued operations. Those operations earned US$8 million after taxes during the portion of the quarter that the company owned them and US$20.8 million for the five-month period before the sale. During fiscal year 2007, these earnings were a result of improved performance by the lumber and building products distribution group offset by lower results in agri- products. As required by the accounting rules, those results reflect the cessation of depreciation effective July 6, 2006. Interest expense was also allocated to these operations for all periods presented. Universal Corp. recorded a net loss on the sale of approximately US$33 million, which stems primarily from transaction costs, a small discount to book value, and the recognition in earnings of items previously recorded in other comprehensive income. The loss, net of earnings to the date of sale, was US$0.83 per diluted share for the quarter and US$0.48 per diluted share for the six months. The value of the transaction is subject to refinement, which could result in future adjustments. Those adjustments could also affect the loss on the sale. Universal Corp.'s tobacco segment earnings improved by US$9 million, or 16%, in the second fiscal quarter. That improvement occurred despite the effect of approximately US$15 million in additional provisions for farmer receivables caused by the company's reduction of primarily flue-cured crops in Brazil and Africa and short deliveries by poor performing farmers. The company also recorded US$14 million in lower of cost or market inventory adjustments in Africa related to the high cost of flue-cured growing projects there. Shipment delays reduced results of the company's oriental tobacco joint venture during this seasonally low period. The increase in tobacco segment earnings was primarily due to improved sales mix and volumes, as well as benefits from prior actions to reduce costs. An improved sales mix of South American tobaccos and increased volumes of leaf handled in or sold from the United States, Asia, and Europe increased earnings. Dark tobacco operations improved on generally higher volumes and some pricing improvement. The quarter also benefited from US$3 million in gains on the sale of property and equipment, as well as from cost savings from last year's closure of a processing facility and two administrative and sales offices. Finally, the company's results reflect the favorable resolution of a tax case in South America that resulted in the recovery of US$8.5 million in revenue taxes and interest in the quarter. The recovery was recorded as part of sales and other operating revenues. The six-month results for the tobacco segment were largely influenced by the effect of the second quarter performance although the company also recognized benefits from carryover sales of tobaccos from Europe, Asia, and the United States that were partially offset by last year's sales of old crop tobacco from Malawi. Losses incurred in Zimbabwe operations last year prior to their deconsolidation also contributed to the favorable earnings comparisons. Excluding Zimbabwe's losses last year, lower foreign exchange remeasurement gains nearly offset the effect of the US$8.5 million tax recovery in South America for the six-month period. The agri-products segment, which is now composed of the company's dried fruits and nuts business, has continued to post losses in the quarter related to inventory write-downs and legal costs at a California nut processing subsidiary. The net loss for this segment totaled US$8.4 million for the quarter and US$8.6 million for the six months compared to prior year income of US$2.3 million for the quarter and US$4.4 million for the six months. Corporate overhead increased by about US$5 million in the six- month period primarily because of the combined effect of increased costs due to new stock- based compensation accounting rules, professional fees, and last year's exchange gain on withholding taxes. The increased costs were partially mitigated by the increase in investment income from the temporary investment of proceeds of the Deli Sale. Universal Corp.'s consolidated effective income tax rates for continuing operations for the three and six months ended Sept. 30, 2006, were 37% and 70%, respectively. The tax rate for the six months is substantially higher than that of the second quarter because of the effect of the Zambian impairment charge, which had no tax benefit, and the write-off of deferred tax assets related to those operations. Income tax expense for the six months ended Sept. 30, 2006, was approximately US$9.5 million higher than it would have been at the approximately 37% effective tax rate applicable to pretax earnings excluding the charge. The consolidated effective income tax rates for continuing operations for the three and six months ended Sept. 30, 2005, were approximately 42% and 44%, respectively. The effective tax rate expected for the remainder of the fiscal year is lower than the prior fiscal year primarily because of the deconsolidation of the Zimbabwe operations. Mr. King stated, "The remainder of the fiscal year is expected to benefit from stronger shipments from Africa and continued strong results in the United States, especially as we realize more of the savings from the Danville plant closure which was completed in fiscal year 2006. We are reducing our 2007 crop production in Brazil, which caused an increase in bad debt provisions related to accounts receivable from farmers during the first six months of the fiscal year. These provision increases in Brazil should not continue during the second half of the current fiscal year. We will continue our efforts to improve operations and to eliminate unproductive operations and assets worldwide. While it will take time to restore our profitability to prior levels, we continue to believe that these steps are essential, and we have made significant progress." Based in Richmond, Virginia, Universal Corporation, (NYSE:UVV) -- http://www.universalcorp.com/-- has operations in tobacco and agri-products. The company, through its subsidiaries, is one of two leading independent tobacco merchants in the world. Universal Corporation's gross revenues for the fiscal year that ended on March 31, 2006, were approximately US$3.5 billion, which included US$1.4 billion related to operations that were sold on Sept. 1, 2006. The company has operations in India, Brazil, Argentina, the United States, Guatemala, the Netherlands, Belgium and other countries in Europe. Troubled Company Reporter - Asia Pacific reported on Sept. 29, 2006, that 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, Beverage, Toy, Natural Product Processors, Packaged Food Processors and Agricultural Cooperative sectors, the rating agency confirmed its Ba1 Corporate Family Rating for Universal Corporation, and downgraded its Ba1 rating to Ba2 on the company's US$563 million MTN. Additionally, Moody's assigned an LGD5 rating to the debt obligation, suggesting noteholders will experience a 73% loss in the event of a default. ================= I N D O N E S I A ================= CORUS GROUP: Tata Steel Offers Cash to Corus Bondholders -------------------------------------------------------- Tata Steel Ltd. has offered cash to Corus Group plc's bondholders and asked them to convert their bonds into shares before December 28, 2006, Indian Express says. According to the report, Tata Steel's move was in order to "consolidate its grip over Corus Group." Indian Express relates that Tata Steel told the bondholders that the current conversion price of a bond earlier in 2006 is EUR6.55. Thus, for each EUR1,000 principal amount of bonds converted, bondholders will receive approximately 152.7 Corus share. The report recounts that the Tata Steel offer came after Corus Group and Tata Steel decided to the terms of Tata Steel's acquisition of all Corus shares. As previously indicated in the Troubled Company Reporter - Asia Pacific, October 20 was the day when Tata Steel's bid was accepted by Corus' board of directors -- to 465.75 pence -- without any counter offer. Tata Steel then offered 455 pence a share to the Corus shareholders, putting the valuation of the company at over US$10 billion. Tata Steel is expected to post the offer document to the Corus shareholders during the weekend, Indian Express says. According to the report, Tata Steel's offer to Corus bondholders is also concurrent with Corus equity holders' share sale. The TCR-AP stated on Nov. 13, 2006, that large shareholders of Corus are fast selling their shares in the open market. According to the report, three institutional investors -- Alliance Bernstein, Barclays and Jupiter Asset Management -- have sold their shares in the company in order to book profits as the current Corus share price, as shown in the statistics with the London Stock Exchange, is ruling above Tata Steel's 455-pence offer price. Indian Express notes that Corus Group Chief Executive Officer Philippe Varin defended the Tata Steel offer in an industry conference in Germany, saying that the offer came at the right time and will preserve the identity of both companies. Furthermore, the report cites Mr. Varin as stating that consolidation in the steel sector is set to continue, and cited China and Russia in particular as places where merger activity could accelerate. Mr. Varin added that he was confident demand for steel in Europe would remain strong but added that the sector had to keep an eye on imports from China and on energy prices. Corus Group PLC -- http://www.corusgroup.com/-- produces metal from its major operating facilities in the U.K., the Netherlands, Germany, France, Norway, Belgium and Canada. Corus turns over GBP10 billion annually and employs 47,300 in over 40 countries and sales offices and service centers worldwide, including Indonesia and the Philippines. Corus was created through the merger of British Steel plc and Koninklijke Hoogovens N.V. The group suffered six years ago from the crisis in British manufacturing, which prompted it to shake up management, close plants, cut jobs, and sell assets to lower debt. Its debt was thought to stand at GBP1.6 billion in 2002. After posting a net loss of GBP458 million in 2003, it embarked on a restructuring program, signed a new EUR1.2 billion banking facility, and issued GBP307 million worth of shares. It returned to operating profit in the first quarter of 2004. The recent recovery of steel prices and the strength of the euro are expected to help it achieve relatively strong earnings. FOSTER WHEELER: Earns US$75.8MM for Quarter Ended Sept. 29, 2006 ---------------------------------------------------------------- Foster Wheeler Ltd. reported that for the third-quarter period ended Sept. 29, 2006, net income was US$54.6 million, excluding: (i) a gain of US$36.1 million arising from asbestos insurance settlements and a successful appeal relating to the company's subsidiaries' asbestos insurance coverage litigation, and (ii) a charge of US$14.8 million arising from the voluntary termination of the company's former credit agreement. Including these items, net income for the quarter was US$75.8 million, or US$1.07 per diluted share. For the first nine months of 2006, net income was US$110.5 million or US$1.57 per diluted share, excluding: (i) a gain of US$115.7 million arising from asbestos insurance settlements and a successful appeal relating to the company's subsidiaries' asbestos insurance coverage litigation, (ii) a charge of US$14.8 million arising from the voluntary termination of the company's former credit agreement, (iii) a US$12.5 million charge incurred in connection with certain debt reduction initiatives, and (iv) for EPS calculations only, the fair value of additional shares issued in January 2006 as part of certain warrant offers, which has the effect of reducing net income per diluted share by US$0.28. Including these items, net income was US$198.9 million. "I am delighted that we have delivered a second successive record-breaking net earnings quarter and I am particularly pleased with the performance of our Global Engineering and Construction or E&C Group, which continues to drive our record earnings," said Raymond J. Milchovich, the company's chairman, president and chief executive officer. "Comparing the first nine months of 2006 with the first nine months of 2005: -- EBITDA and excluding the items noted above, increased by 32%; -- Operating revenues, measured in Foster Wheeler scope, increased by 41%; -- New orders, measured in scope, increased by 43%; and -- Backlog, measured in scope, increased by 53%." EBITDA Consolidated third-quarter 2006 EBITDA, after excluding: (i) the gain of US$36.1 million arising from asbestos insurance settlements and a successful appeal relating to the company's subsidiaries' asbestos insurance coverage litigation, and (ii) the US$14.8 million charge arising from the voluntary termination of the company's former credit agreement, increased by 22% to US$73.8 million. In comparison, consolidated third-quarter 2005 EBITDA, after excluding a US$40.2 million, primarily non-cash, accounting charge relating to the company's successful equity-for debt exchange concluded in August 2005, was US$60.5 million. Including the above items, consolidated third-quarter 2006 EBITDA was US$95.1 million. For the first nine months of 2006, consolidated EBITDA, after excluding: (i) the gain of US$115.7 million arising from asbestos insurance coverage settlements and a successful appeal relating to the company's subsidiaries' asbestos insurance coverage litigation, (ii) the US$14.8 million charge arising from the voluntary termination of the former credit agreement, and (iii) a US$12.5 million charge incurred in connection with certain debt reduction initiatives, was US$205.1 million, an increase of 32% from US$155.2 million for the first nine months of 2005. Consolidated EBITDA, including the above items, was US$293.5 million for the first nine months of 2006. The company began recording stock option compensation expense in 2006 and US$1.9 million and US$5.6 million, respectively, were expensed in the third quarter and first nine months of 2006. Bookings, Revenues and Backlog The company achieved another very strong bookings quarter. Bookings during the third quarter of 2006, measured in scope, increased to US$924.8 million, up 5% from US$879.3 million in the year-ago quarter. For the first nine months of 2006, bookings measured in scope increased significantly to US$2.67 billion, up 43% from US$1.87 billion for the first nine months of 2005. Operating revenues in the third quarter of 2006, measured in scope, increased by 65% to US$727.1 million, compared with US$440.1 million in the third quarter of 2005. Operating revenues for the third quarter of 2006, including flow through costs, increased to US$910.6 million, up 71% from US$532.4 million in the third quarter of 2005. For the first nine months of 2006, operating revenues, measured in scope, were US$1.87 billion, up by 41% from US$1.33 billion for the first nine months of 2005. Including flow through costs, operating revenues for the first nine months of 2006 were US$2.30 billion, up by 46% from US$1.58 billion for the first nine months of 2005. Backlog, measured in scope, continued to grow, increasing by 53% to US$3.0 billion at the end of the third quarter of 2006, compared with backlog of US$1.95 billion at the end of the third quarter of 2005. Cash and Liquidity The company's total cash and short-term investments at the end of the third quarter of 2006 were US$509.7 million, of which US$372.5 million were held by the company's non-U.S. subsidiaries. This total cash balance compares with US$372.7 million at the end of 2005, and US$342.1 million at the end of the third quarter of 2005. The substantial increase between the end of 2005 and the third quarter of 2006 resulted primarily from cash generated by operations of US$133.6 million, mainly due to a very strong operating performance in the Global E&C Group. Global cash balances increased by US$151.7 million between the end of the second quarter of 2006 and the end of the third quarter of 2006. Movements in working capital accounted for approximately US$90 million of the increase, primarily due to favorable payment terms and collections on new and existing projects. On Oct. 16, 2006, the company announced that it had successfully closed on a new US$350 million, five-year senior secured domestic credit facility. The company will be able to utilize the facility by issuing letters of credit up to the full US$350 million limit. The company also has the option to use up to US$100 million of the US$350 million amount for revolving borrowings, although the company has no current plans to do so. The new credit agreement provides the increased bonding capacity and financial flexibility required to support the company's increased volume of business and, at current usage levels, will also reduce the company's annual bonding costs by approximately US$8 million. During the third quarter of 2006, the company's subsidiaries agreed with three additional insurers to settle disputed asbestos-related coverage. As a result of these settlements, the company recorded a gain of US$16.6 million, increased its insurance asset by US$4.0 million and received cash of US$12.6 million. In addition, during the third quarter of 2006, the company's subsidiaries were successful in their appeal of the trial court decision regarding the state law applicable in their asbestos insurance coverage litigation. As a result, the company further increased its insurance asset and recorded a gain of US$19.5 million. The company has funded US$30.2 million of asbestos liability indemnity payments and defense costs from its cash flow during the first nine months of 2006, net of the cash received from insurance settlements. The company expects net positive cash inflows of approximately US$38.0 million in the fourth quarter of 2006 from its asbestos management program. The estimated positive fourth-quarter 2006 net cash inflow represents the excess of estimated cash receipts from existing insurance settlements over its estimated indemnity and defense payments. For all of 2006, the company forecasts a net cash inflow of approximately US$7.8 million from its asbestos management program. Tax Provision For the first nine months of 2006, the company's consolidated effective tax rate was approximately 21%. During this period, the company reported several items on which there is no tax provision, including the asbestos gain, the charge incurred by the company arising from the voluntary termination of its former credit agreement, and charges associated with the successful debt reduction initiatives. These items reduced the company's effective tax rate for the first nine months of 2006, and are expected to reduce the company's effective tax rate for the full-year 2006. With operational headquarters in Clinton, New Jersey, Foster Wheeler Ltd. -- http://www.fwc.com/-- offers a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The company has offices in china, India, Indonesia, Malaysia, Singapore, Thailand, and Vietnam. * * * As reported in the Troubled Company Reporter on Aug 7, 2006, Standard & Poor's Ratings Services assigned its 'BB-' bank loan rating and '1' recovery rating on Foster Wheeler Ltd.'s proposed five-year, US$350 million senior secured credit facilities due 2011, reflecting a high expectation of full recovery of principal (100%) in the event of a payment default. As reported in the Troubled Company Reporter on May 30, 2006, Moody's Investors Service upgraded Foster Wheeler's corporate family rating to B1 from B3 and assigned a Ba3 rating to the Company's US$250 million senior secured bank revolving credit facility. Moody's said the rating outlook is positive. INDAH KIAT: Court Ruling May Affect Investor Confidence, FA Says ---------------------------------------------------------------- As mentioned in a Troubled Company Reporter - Asia Pacific report on Oct. 9, 2006, Asia Pulp & Paper subsidiary Indah Kiat Pulp & Paper Tbk's US$500 million bond has been ruled null by Indonesia's Supreme Court. According to Finance Asia News, the Supreme Court's decision, which upheld the verdict of a lower court, had put "the country's offshore borrowing prospect in doubt." Finance Asia recounts that in their appeal, Gramercy Advisors and Oaktree Capital Management -- both United States-based hedge funds -- had hoped to overturn the Central Jakarta Court's 2004 ruling, which, in turn, had upheld a civil claim in Bangkalis District Court a year earlier that nullified the bonds on the basis that their issuance via an offshore special purpose vehicle structure was unlawful. Finance Asia cites market analysts as pointing out that the Supreme Court's decision will undermine investor confidence in the country, as a corporate borrower, and the dependability of Indonesia's judicial practices. They say that the ruling endangers Indonesia's ability to raise money offshore. What is significant about the ruling, Finance Asia says, is the precedent it establishes for other Indonesian borrowers. The report notes that structure that has now been deemed illegal in the eyes of the Indonesian judiciary is one of the most widely utilized structures employed for bringing domestic corporate borrowers to the international capital markets. The offshore SPV allows issuers access to foreign funds without having to issue a domestic public offering. The report says that for the time being, the market will await clarification on the decision, hoping that it will be reversed by the Government. According to Finance Asia, if the government allows the ruling to stand, it will mean that companies looking to access the international capital markets will now be hamstrung by much more rigid structures. Structures that will overcompensate the need to protect the rights of investors, while undoubtedly increasing the cost of borrowing. In addition, it will now fall to the investment banks to conduct much deeper due diligence and bring only those borrowers to market with undoubted willingness, not simply the ability, to repay the debt. * * * Headquartered in Jakarta, Indonesia, PT Indah Kiat Pulp & Paper Tbk is a manufacturing company engaged in the production of paper and pulp. Finance Asia said on Nov. 13, 2006, that Indah Kiat, a subsidiary of Asia Pulp & Paper, has almost US$14 billion of debt in default and is one of the world's largest defaulters, if not certainly Asia's. The Widjaja family, the controllers of Asia Pulp, have been struggling with their creditors since they ceased all payments on their debt in 2001. Indonesian ratings company Pefindo gave the company's long-term rating a idD, effective on April 14, 2001. Additionally, Reuters reports that Indah Kiat delayed filing of its first quarter 2006 financials, and that the company will not pay dividends for the FY2005. ========= J A P A N ========= FORD MOTOR: To File Third Quarter 2006 Report by November 14 ------------------------------------------------------------ In a Nov. 9, 2006 filing with the United States Securities and Exchange Commission, Ford Motor Company disclosed that it is restating its financial statements for the third quarter ended Sept. 30, 2005, and finalizing its financial results for the third quarter ended Sept. 30, 2006, to reflect the changes in fair value of its derivative instruments as gains and losses, without recording any offsetting change in the value of the debt it was economically hedging. Because the analysis and preparation of its restated financial information is not yet complete, the company said it will be filing its Quarterly Report on Form 10-Q for the period ended Sept. 30, 2006, on or before Nov. 14, 2006, instead of Nov. 9. The company's indirect wholly owned subsidiary Ford Motor Credit Company became aware of a matter related to the application of paragraph 68 of Statement of Financial Accounting Standards No. 133, Accounting for Derivative Instruments and Hedging Activities, as amended, during the preparation of its response to a comment letter from the Division of Corporation Finance of the Securities and Exchange Commission. Accordingly, the company performed a review of the company and Ford Credit's hedge accounting policies and practices relating to the "assumption of no ineffectiveness" for interest rate swaps pursuant to paragraph 68 of SFAS No. 133. Although the interest rate swaps were and continue to be highly effective economic hedges, the company has determined that nearly all of the trans-actions failed to meet the requirements of Paragraph 68. Preliminary Third Quarter 2006 Results On Oct. 23, 2006, the company issued a press release announcing its preliminary financial results for the third quarter ended Sept. 30, 2006. The company also furnished the preliminary results to the SEC in its Current Report on Form 8-K dated Oct. 20, 2006. For the third quarter of 2006, the company reported a preliminary net loss of US$5.8 billion, compared with a US$284 million net loss for the third quarter of 2005. Excluding special items, the third quarter loss from continuing operations was US$1.2 billion compared with a loss of US$191 million a year earlier. About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Company -- http://www.ford.com/-- manufactures and distributes automobiles in 200 markets across six continents. With more than 324,000 employees worldwide, the company's core and affiliated automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive- related services include Ford Motor Credit Company and The Hertz Corporation. The company has operations in Japan. * * * Standard & Poor's Ratings Services placed its 'B' senior unsecured debt issue ratings on Ford Motor Co. on CreditWatch with negative implications. At the same time, S&P affirmed all other ratings on Ford, Ford Motor Credit Co., and related entities, except the rating on Ford Motor Co. Capital Trust II 6.5% cumulative convertible trust preferred securities, which was lowered to 'CCC-'from 'CCC.' At the same time, Fitch Ratings placed Ford Motor's 'B+/RR3' senior unsecured debt on Rating Watch Negative reflecting Ford's intent to raise secured financing that would impair the position of unsecured debt holders. Under Fitch's recovery rating scenario it was estimated that unsecured holders would recover approximately 68% in a bankruptcy scenario, equating to a Recovery Rating of 'RR3' (50-70% recovery). Moody's Investors Service has disclosed that Ford's very weak third quarter performance, with automotive operations generating a pre-tax loss of US$1.8 billion and a negative operating cash flow of US$3 billion, was consistent with the expectations which led to the September 19 downgrade of the company's long-term rating to B3. Dominion Bond Rating Service placed long-term debt rating of Ford Motor Company Under Review with Negative Implications following announcement that Ford will sharply reduce its North American vehicle production in 2006. DBRS lowered on July 21, 2006, Ford Motor Company's long-term debt rating to B from BB, and lowered its short-term debt rating to R-3 middle from R-3 high. DBRS also lowered Ford Motor Credit Company's long-term debt rating to BB(low) from BB, and confirmed Ford Credit's short-term debt rating at R-3(high). HITACHI ZOSEN: JFE Considers Takeover of Shipbuilding Operations ---------------------------------------------------------------- JFE Holdings Inc. is considering taking over Hitachi Zosen Corp.'s shipbuilding operations, which are handled by Universal Shipbuilding Corp., a joint venture between the two firms, Kyodo News relates. According to the report, JFE's likely purchase of Hitachi Zosen's stake in Universal Shipbuilding would mark Hitachi's effective departure from shipbuilding. Hitachi Zosen has already downsized its shipbuilding business due to fierce competition with overseas rivals. With its exit from shipbuilding, Hitachi will instead focus on bolstering the profitability of its mainline environment equipment and plants business, The Japan Times cites unidentified sources as saying. Moreover, Kyodo notes that the JFE takeover is expected to accelerate reconfiguration of the domestic shipbuilding industry. By turning Universal Shipbuilding into a subsidiary, JFE Holdings intends to explore partnerships with group engineering and steel companies to pare down production costs, Kyodo states. The Times says that demand for shipbuilding has increased amid the strong global economy. However, domestic shipbuilders face cutthroat competition with South Korean and Chinese rivals as well as deteriorating profitability due to rising materials costs. JFE Holdings was created in 2002 through a merger of NKK Corp. and Kawasaki Steel Corp, Kyodo recounts. NKK and Hitachi Zosen set up their 50-50 joint venture Universal Shipbuilding in 2002 by integrating their shipbuilding operations. Universal Shipbuilding is Japan's second-largest shipbuilder after Imabari Shipbuilding Co. About Hitachi Zosen Headquartered in Osaka, Japan, Hitachi Zosen Corporation -- http://www.hitachizosen.co.jp/-- develops, manufactures, sells and maintains machinery and systems. The company has five business segments. The Environment and Plant segment offers refuse incineration plants, industrial waste treatment plants, biomass energy systems, water and sludge treatment plants and others. The Ship and Sea segment is involved in the building, improvement and repair of ships, and the creation of ocean structures. The Steel, Construction and Logistics segment offers bridges, hydraulic gates, steel chimneys, water pressure pipes, offshore engineering, disaster prevention systems, and others. The Machinery and Motors segment includes steel-making machinery, food machines, medical equipment, power generators and internal combustion engines. The Others segment is involved in electronic and control systems, package software, information systems and other businesses. As reported in the Troubled Company Reporter - Asia Pacific on August 31, 2006, Rating and Investment Inc. has affirmed the BB- issuer rating of Hitachi Zosen Corporation with a negative outlook. MIZUHO FINANCIAL: To Invest JPY450 Billion in Expansion Plan ------------------------------------------------------------ Mizuho Financial Group Inc. will concentrate on expanding its retail banking operations in the next three years, Bloomberg News reports. Bloomberg's Takahiko Hyuga relates that Mizuho Financial will use most of its capital for this endeavor, which also includes adding branches and increasing sales. The report cites Mizuho Chief Executive Officer Terunobu Maeda as saying that the bank will invest about JPY450 billion (US$3.8 billion) on 100 new branches and computer systems to help it sell more products and private banking services. Mr. Maeda told Bloomberg that Mizuho "will be left behind unless we focus on Japan where the economy is recovering from deflation." He added, "It's a bit too early to operate an aggressive investment banking business overseas as it would eat capital." Mizuho started trading its shares on the New York Stock Exchange on Nov. 8. As stated in the Troubled Company Reporter - Asia Pacific on Nov. 7, 2006, Mizuho is the second Japanese bank to list in the NYSE -- the first since 1989. Bloomberg says that the listing underscores the revival of Japan's financial firms after repaying public money given in a bailout after the recessions of the 1990s. Mizuho's main focus is to rebuild at home and win a greater share of the JPY1,700 trillion in financial assets held by Japanese citizens, the report notes. About Mizuho Financial Group Headquartered in Tokyo, Japan, Mizuho Financial Group, Inc. -- http://www.mizuho-fg.co.jp/english/-- is a financial institution. The company primarily is engaged in the banking, trust, securities, asset management and credit card businesses, as well as the investment advisory business. Through its subsidiaries, Mizuho Financial Group also is engaged in the consulting, system management, credit guarantee, temporary staffing and office work businesses, among others. Its main subsidiaries and associated companies include Mizuho Bank, Ltd., Mizuho Trust & Banking Co. (USA), Mizuho Trust & Banking (Luxembourg) SA, Mizuho Corporate Bank, Ltd., Mizuho Trust & Banking Co., Ltd., Mizuho Private Wealth Management Co., Ltd., Mizuho Financial Strategy Co., Ltd., Mizuho Capital Markets Corporation, Mizuho Securities Co., Ltd., Mizuho Bank Switzerland Ltd., Mizuho International plc., Mizuho Securities USA, Inc. and Mizuho Investors Securities Co., Ltd. The company has 130 consolidated subsidiaries and 19 associated companies. The Troubled Company Reporter - Asia Pacific reported on November 28, 2005, that Moody's Investors Service upgraded to D+ from D- the bank financial strength ratings of the banks in the Mizuho Financial Group -- Mizuho Bank, Ltd.; Mizuho Corporate Bank, Ltd.; and Mizuho Trust & Banking Co., Ltd. Additionally, on February 8, 2006, Fitch Ratings assigned a C individual rating to Mizuho Financial. TIMKEN CO: Expands Manufacturing Presence in India -------------------------------------------------- The Timken Company (NYSE: TKR) announced plans to build a new bearing manufacturing facility in India. The plant, which will be located in Chennai in the southern state of Tamil Nadu, will produce a range of antifriction bearings for global markets. Timken's new facility will be built in one of India's new Special Economic Zones, which provide a range of tax benefits, including duty-free import of equipment and material used in the manufacture of goods destined for sale outside of India. The facility will be located in Chennai's Mahindra World City, and construction is expected to begin by the end of the year. "The Timken Company is continuing to invest in industrial products and markets where we have the opportunity to drive profitable growth," said Mike Arnold, president of Timken's Industrial Group. "Our new facility in India represents a significant expansion of our manufacturing presence in this important economy, and we will continue to look for strategic opportunities to build on our growing base in Asia." The plant is estimated to cost US$25 million. Production is expected to begin during the fourth quarter of 2007. Timken, which currently employs approximately 1,000 people in India, anticipates adding approximately 300 positions to operate the Chennai plant. Timken's Indian operations currently include a bearing manufacturing plant in Jamshedpur and a Global Innovation Center in Bangalore that has the capability to design, develop and test new friction management and power transmission technologies. Timken, which has had a presence in the Indian market since 1992, also has an extensive and growing network of distributors focused on providing an expanding range of friction management solutions to industrial and automotive aftermarket customers throughout India. 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 in Japan, Argentina, Australia, Belgium, Brazil, Canada, China, Czech Republic, England, France, Germany, India, Italy, Korea, Singapore, South America, Spain, Taiwan, Turkey, United States, 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. TIMKEN CO: Solves Problem in Indonesian Mill -------------------------------------------- The Timken Company (NYSE: TKR) has added PT Essar, the largest private steel producer in Indonesia and part of the Essar Group, to its customer base. Timken is supplying the replacement bearings for one of Essar's mills through an authorized Timken distributor, PT Sumitech. The business came as a result of not only providing product, but also assembling a technical team to assess and improve the mill's performance. Essar was not happy with the bearing performance at one of its mills since it entered service. Essar replaced the original equipment bearings with Timken four-row tapered roller bearings. Then, to solve the pre-existing downtime problem, Timken assembled an international team of technicians, engineers and metallurgists. The team conducted in-depth analyses of the original bearings and their environment and recommended efficient solutions for installation, lubrication and sealing systems. "At Timken, our goal is to use our expertise in friction management to improve our customers' performance," said Kiong Boon Teo, Timken's manager of technical services in the region. "Our work with PT Essar didn't stop with the sale of bearings," Teo said. "We continued to work with the operation to analyze their equipment function and developed a series of installation and maintenance practices that has improved their uptime and reduced their total costs." About PT Essar PT Essar's cold-rolling complex in Indonesia rolls 400,000 metric tons of steel annually. It is part of The Essar Group (www.essar.com), one of India's largest corporate houses with an enterprise value of approximately $15 billion and interests spanning the manufacturing and service sectors in both old and new economies: steel, oil and gas, power, telecommunications, business process outsourcing, shipping and construction. About PT Sumiwreksa Grahaniaga (PT Sumitech) PT Sumitech, one of Timken's authorized distributors in Indonesia, specializes in the steel and other heavy industries. About The Timken Company 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 in Japan, Argentina, Australia, Belgium, Brazil, Canada, China, Czech Republic, England, France, Germany, India, Italy, Korea, Singapore, South America, Spain, Taiwan, Turkey, United States, 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 ========= DAEWOO ENGINEERING: Sold to Kumho-Asiana Group for KRW6.42 Tril. ---------------------------------------------------------------- The Kumho-Asiana Group, on November 10, 2006, gained approval to buy a 72.1% stake in Daewoo Engineering & Construction Co. for a lower price -- KRW6.42 trillion, Agence France-Presse reports. As reported in the Troubled Company Reporter - Asia Pacific on June 27, 2006, the Kumho-Asiana Group was named the preferred bidder to takeover Daewoo Engineering after it reportedly offered KRW6.6 trillion. The Kumho-Asiana Group, led by Kumho Industrial Co., outbid four rivals -- Doosan Group, Eugene Group, Prime Group, and Samwhan Group. The Kuhmo-Asiana Group and Korea Asset Management Corp., which is managing the sale, agreed to lower the price. According to Asia Pulse, Kumho will sign a formal contract for the deal on November 15 and complete its payment by the end of December. About Daewoo Engineering Headquartered in Seoul, South Korea, Daewoo Engineering & Construction Co. -- http://www.daewooenc.com-- has become a world leader in civil engineering, housing construction, power and industrial plant development, architectural services, and construction of liquid natural gas facilities. In addition to large-scale domestic projects, Daewoo has more recently built gas plants in Nigeria, a hospital in Libya, and the Trump World Tower in New York, to name a few. Daewoo Engineering was formed in 2000 by creditors after Daewoo Group, then South Korea's second-largest industrial consortium, collapsed under about KRW85 trillion in debt. In early 2004, Daewoo Engineering's largest shareholder, the Korea Asset Management Company, announced a proposed auction of the construction firm. Daewoo Engineering is the latest part of the bankrupt Daewoo business empire to be sold. The contractor turned around its finances and outlook, posting KRW409.8 billion in net income in 2005, and has a backlog of KRW18.47 trillion worth of orders from regions including Africa, the Middle East and South Korea. The company's market value rose 70% in 2005 to KRW4.5 trillion. Operating profit was KRW432.1 billion in 2005, equal to 8.5% of revenue. Debt accounted for 130% of shareholder equity as of Dec. 31, 2005. DURA AUTOMOTIVE: Receives NASDAQ Delisting Notice ------------------------------------------------- DURA Automotive Systems Inc. received a delisting notification from the Nasdaq Stock Market dated Oct. 30, 2006. Trading of DURA's common stock will be suspended at the opening of business on Nov. 8, 2006. The company does not intend to appeal the decision. NASDAQ indicated in its letter that the delisting determination was prompted in light of DURA's voluntary filing for protection under Chapter 11 of the U.S. Bankruptcy Code and was based on Nasdaq Marketplace Rules 4300, 4450(f), and IM-4300. On Oct. 30, DURA and its U.S. and Canadian subsidiaries filed for protection under Chapter 11 of the U.S. Bankruptcy Code with the U.S. Bankruptcy Court for the District of Delaware. DURA's European and other operations outside of the U.S. and Canada, accounting for around 51% of DURA's revenue, are not part of the filing. Headquarted in Rochester Hills, Michigan, DURA Automotive Systems, Inc. -- http://www.duraauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive and recreation & specialty vehicle industries. DURA, which operates in 63 locations, sells its products to every major North American, Asian and European automotive original equipment manufacturer and many leading Tier 1 automotive suppliers. It currently operates in 63 locations including joint venture companies and customer service centers in 14 countries. The company has three locations in Asia, namely in China, Japan and Korea. * * * The Troubled Company Reporter reported on November 6, 2006, that Fitch Ratings placed one tranche from one public collateralized debt obligation and one tranche from private CDO on Rating Watch Negative following Dura Automotive Corp.'s filing for protection under Chapter 11. As reported by The Troubled Company Reporter - Asia Pacific on Nov. 6, Standard & Poor's Ratings Services lowered Dura Automotive Systems Inc.'s senior secured and subordinated debt ratings to 'D' from 'CC' following the company's announcement that it and its U.S. and Canadian subsidiaries filed for bankruptcy protection. The Debtors filed for chapter 11 petition on October 30, 2006 (Bankr. District of Delaware Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co-counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. (Dura Automotive Bankruptcy News, Issue No. 1; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). DURA AUTOMOTIVE: Taps Kirkland & Ellis as Bankruptcy Counsel ------------------------------------------------------------ DURA Automotive Systems Inc. and its debtor affiliates seek authority from the United States Bankruptcy Court for the District of Delaware to employ Kirkland & Ellis as their bankruptcy counsel, under a general retainer, nunc pro tunc to Oct. 30, 2006. Keith Marchiando, chief financial officer of Dura Automotive Systems, Inc., tells the Court that Kirkland has been actively involved in major reorganization cases, and has represented several debtors, including W.R. Grace & Co., Harnischfeger Indus., Inc., Musicland Holding Corp., Leaseway Motorcar Transport Co., Calpine Corp., Collins & Aikman Corp., Tower Automotive Inc., and UAL Corp. Mr. Marchiando discloses that Kirkland has been counsel to the Debtors on a number of matters for ten years, including the preparation of their Chapter 11 filings, and, accordingly, will be able to quickly respond to any issues that may arise during the Reorganization Cases. Specifically, Kirkland will: (a) advise the Debtors with respect to their powers and duties as debtors-in-possession in the continued management and operation of their business and properties; (b) attend meetings and negotiate with representatives of creditors and other parties in interest; (c) take all necessary action to protect and preserve the Debtors' estates, including prosecuting actions on the Debtors' behalf, defending any action commenced against the Debtors, and representing the Debtors' interests in negotiations concerning all litigation in which the Debtors are involved; (d) prepare all motions, applications, answers, orders, reports, and papers necessary to the administration of the Debtors' estates; (e) take any necessary action on behalf of the Debtors to obtain approval of a disclosure statement and confirmation of the Debtors' plan of reorganization; (f) represent the Debtors in connection with obtaining financing after its filing for Chapter 11 protection; (g) advise the Debtors in connection with any potential sale of assets; (h) appear before the Court, any appellate courts, and the U.S. Trustee, and protect the interests of the Debtors' estates before the courts and the U.S. Trustee; and (i) perform all other necessary legal services to the Debtors in connection with the Reorganization Cases, including: * analyze the Debtors' leases and executory contracts and their assumption or assignment; * analyze the validity of liens against the Debtors; and * advise on corporate, litigation, environmental, and other legal matters. Kirkland will be paid based on the firm's standard hourly rates: Professional Hourly Rate ------------ ------------ Partners US$425 to US$950 Counsel US$325 to US$740 Associates US$245 to US$540 Paraprofessionals US$90 to US$280 Nineteen professionals are expected to have primary responsibility for providing services to the Debtors: Lyndon E. Norley US$975 Richard M. Cieri US$825 Todd F. Maynes, P.C, US$795 Partha Kar US$775 Marc Kieselstein, P.C. US$745 Dennis M. Myers, P.C. US$745 Natasha Watson US$610 Maureen Sweeney US$575 Dr. Bernd Meyer-Lowy US$575 Roger J. Higgins US$545 David A. Agay US$545 Leo Plank US$525 Ryan Blaine Bennett US$510 Michelle Mulkem US$430 Uday Gorrepati US$355 Joy Lyu Monahan US$350 Kathryn Koenig US$350 Thad Davis US$325 Lauren Hawkins US$295 The Debtors will reimburse Kirkland for necessary out-of-pocket expenses. Marc Kieselstein, Esq., a partner at Kirkland, informs the Court that in August 2006, the Debtors advanced US$400,000 to Kirkland as a retainer. In September, the Debtors advanced a further US$900,000 as an increase to the retainer. The Debtors have since then replenished the retainer to US$500,000 on a weekly basis. Mr. Marchiando adds that Kirkland received payments for professional services performed in the 90 days prior to the Petition Date, and additional amounts for the reimbursement of reasonable and necessary expenses incurred. The Debtors have agreed that fees, after the date of filing for Chapter 11 protection, are an advance payment and not a retainer. As of Oct. 30, 2006, the Debtors do not owe Kirkland any amounts for legal services rendered prior to the bankruptcy filing. Mr. Kieselstein assures the Court that his firm is a "disinterested person," as that term is defined in Section 101(14) of the Bankruptcy Code, as modified by Section 1107(b) Kirkland does not hold or represent an interest adverse to the Debtors or their estates, Mr. Kieselstein adds. Headquarted in Rochester Hills, Michigan, DURA Automotive Systems, Inc. -- http://www.duraauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive and recreation & specialty vehicle industries. DURA, which operates in 63 locations, sells its products to every major North American, Asian and European automotive original equipment manufacturer and many leading Tier 1 automotive suppliers. It currently operates in 63 locations including joint venture companies and customer service centers in 14 countries. The company has three locations in Asia, namely in China, Japan and Korea. * * * The Troubled Company Reporter reported on November 6, 2006, that Fitch Ratings placed one tranche from one public collateralized debt obligation and one tranche from private CDO on Rating Watch Negative following Dura Automotive Corp.'s filing for protection under Chapter 11. As reported by The Troubled Company Reporter - Asia Pacific on Nov. 6, Standard & Poor's Ratings Services lowered Dura Automotive Systems Inc.'s senior secured and subordinated debt ratings to 'D' from 'CC' following the company's announcement that it and its U.S. and Canadian subsidiaries filed for bankruptcy protection. The Debtors filed for chapter 11 petition on October 30, 2006 (Bankr. District of Delaware Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co-counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. (Dura Automotive Bankruptcy News, Issue No. 1; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). DURA AUTOMOTIVE: Taps Richards Layton as Local Counsel ------------------------------------------------------ DURA Automotive Systems, Inc., and its debtor affiliates, seek permission from the U.S. Bankruptcy Court for the District of Delaware to employ Richards, Layton & Finger, P.A., as their local counsel, general co-counsel, and conflicts counsel, nunc pro tunc to Oct. 30, 2006. Keith Marchiando, chief financial officer, explains that granting the application will avoid unnecessary litigation and reduce the overall expense of administering the Debtors' bankruptcy cases. Mr. Marchiando relates that RL&F, a Delaware counsel, has extensive experience and knowledge in the field of debtors' and creditors' rights and business reorganizations under Chapter 11 of the Bankruptcy Code. Moreover, Mr. Marchiando says RL&F has become familiar with the Debtors' business and affairs and many of the potential legal issues that may arise in the context of their Chapter 11 cases. RL&F will: * provide legal advice to the Debtors with respect to their rights, powers, and duties as debtors-in-possession in the continued operation of their business and management of their properties; * take all necessary action to protect and preserve the Debtors' estates, including the prosecution of actions on the Debtors' behalf, the defense of any actions commenced against the Debtors, the negotiation of di8sputes in which the Debtors are involved, and the preparation of objections to claims filed against the Debtors' estates; * prepare and pursue confirmation of the Debtors' plan, approval of that plan, and approval of the Debtors' disclosure statement; * prepare necessary applications, motions, answers, order, reports, and other legal papers on behalf of the Debtors; * appear in Court and protect the interests of the debtors before the Court; and * perform all other legal services for the Debtors that may be necessary and proper in the bankruptcy proceeding. The firm will be paid based on their customary hourly rates. The principal attorneys and paralegals presently designated to represent the Debtors and their hourly rates are: Directors US$390 to US$605 Mark D. Collins US$520 Daniel J. DeFranceschi US$465 Associates US$210 to US$350 Jason M. Madron US$270 Mark Kurtz US$225 Paralegals US$125 to US$180 Ann Jerominski US$165 Rebecca V. Speaker US$165 The Debtors will reimburse RL&F for necessary out-of-pocket expenses. Mr. Marchiando discloses that RL&F has received a US$193,638 retainer as an advance against expenses for services to be performed in the preparation and prosecution of the Debtors' Chapter 11 cases, which will be applied to postpetition allowances of compensation and reimbursement of expenses. Daniel J. DeFranceschi, a director of RL&F, assures the Court that his firm is "disinterested person," as that term is defined in Section 101(14) of the Bankruptcy Code. RL&F does not hold or represent an interest adverse to the Debtors or their estates, Mr. DeFranceschi says. Headquarted in Rochester Hills, Michigan, DURA Automotive Systems, Inc. -- http://www.duraauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive and recreation & specialty vehicle industries. DURA, which operates in 63 locations, sells its products to every major North American, Asian and European automotive original equipment manufacturer and many leading Tier 1 automotive suppliers. It currently operates in 63 locations including joint venture companies and customer service centers in 14 countries. The company has three locations in Asia, namely in China, Japan and Korea. * * * The Troubled Company Reporter reported on November 6, 2006, that Fitch Ratings placed one tranche from one public collateralized debt obligation and one tranche from private CDO on Rating Watch Negative following Dura Automotive Corp.'s filing for protection under Chapter 11. As reported by The Troubled Company Reporter - Asia Pacific on Nov. 6, Standard & Poor's Ratings Services lowered Dura Automotive Systems Inc.'s senior secured and subordinated debt ratings to 'D' from 'CC' following the company's announcement that it and its U.S. and Canadian subsidiaries filed for bankruptcy protection. The Debtors filed for chapter 11 petition on October 30, 2006 (Bankr. District of Delaware Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co-counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for. As of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. (Dura Automotive Bankruptcy News, Issue No. 1; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). HANAROTELECOM: To Buy Up to 80% of Onse Telecom's Customers ----------------------------------------------------------- The Troubled Company Reporter - Asia Pacific reported on November 8, 2006, that hanarotelecom Inc. agreed to take over Onse Telecom Corp.'s broadband subscribers. In a report dated November 10, Bloomberg News said that hanarotelecom expects to acquire up to 80% of Onse Telecom's subscribers. The deal may cost KRW54.9 billion (US$59 million), Kevin Cho of Bloomberg estimated. The customer takeover would help hanarotelecom narrow the gap with industry leader KT Industry, Mr. Cho said. Incorporated in July 1996, Onse Telecom provides telecommunication services ranging from international long distance, domestic long distance, broadband ISP, online contents and IDC services. Onse went under court receivership in March 2003 through September 2006. The telecom provider will terminate its broadband services later this year and expects its users to switch to other carriers. About hanarotelecom hanarotelecom Inc. -- http://www.hanaro.com/-- is the second largest player in the Korean local telephone market. It provides high-speed Internet services in Korea. It provides high-speed Internet services in Korea. In June 2001, the company integrated broadband Internet access services which included ADSL, Hybrid Fiber Coaxial cables and Broadband Wireless Local Loop into a single brand called HanaFOS. hanarotelecom offers VoIP services to its broadband business customers as a bundled service and also as a stand alone service. * * * Moody's Investor Service has given hanarotelecom's long-term corporate family and senior unsecured debt 'Ba2' ratings. Standard and Poor's gave both hanarotelecom's long-term foreign issuer credit and long-term local foreign issuer credit 'BB' ratings. KOREA EXCHANGE: Prosecutors Obtain Evidence Against Lone Star ------------------------------------------------------------- South Korea prosecutors secured incriminating evidence that could link United States-based Lone Star Funds to illegal stock manipulation relating to KEB Credit Services Co., Korea Exchange Bank's credit-card unit, The Hankyoreh reports. Among the evidence gathered is a cassette tape of a board meeting, the Korean newspaper points out. Korean prosecutors had been looking into Lone Star's purchase of a 50.5% stake in KEB in 2003, and had been examining whether the acquisition was appropriate. According to the Hankyoreh, the prosecutors alleged that Lone Star representatives on KEB's board intentionally spread false rumors in late 2003, which may have been aimed at preventing a surge in prices ahead of the merger between the KEB and its credit-card unit. Investigators further assert that Lone Star even sent e-mails to KEB employees that falsely predicted a reduction in capital to give the rumor more credibility, the Korean newspaper relates. The Seoul Central District Court recently rejected prosecutors' request to issue a warrant to detain Lone Star executives declaring that additional probe was needed to arrest them, the Troubled Company Reporter - Asia Pacific reported on November 7, 2006. The Lone Star probe is being closely watched by investors who fear prosecutors may be singling out foreign interests, delaying the deal in which Kookmin Bank agreed to buy KEB from Lone Star for US$7.3 billion, a TCR-AP report on November 9, cited Reuters as saying. About Korea Exchange Bank Korea Exchange Bank -- http://www.keb.co.kr/english/index.htm-- was established in January 1967 by the Government originally as a specialist foreign exchange bank. It retains its strength in trade finance and foreign exchange. After being privatized in 1989, the Bank focused into commercial banking. In terms of assets, it ranks sixth among Korea's nationwide commercial banks with 7% of system assets. It operates a branch network of 317 domestic and 28 overseas offices. During the economic crisis, significant exposures to troubled corporate borrowers led to a deterioration in the bank's financial health. However, since then, its operating performance stabilized, and the bank has reported consecutive quarterly profits since the end of 2003. Fitch Ratings gave Korea Exchange Bank a 'C' Individual Rating effective on June 17, 2005. Moody's Investors Service gave KEB a 'D' Bank Financial Strength Rating effective on May 9, 2006. * * * South Korean politicians -- led by the main opposition Grand National Party -- have alleged that the Korea Exchange shares were sold cheap to United States-based Lone Star Funds after the Bank's financial status was incorrectly reported. Korea Exchange denied the allegations in March 2006. The Board of Audit and Inspections and the Supreme Public Prosecutors' Office initiated separate investigations into the matter. On June 20, 2006, the BAI determined that Lone Star's acquisition of Korea Exchange was led by management with the approval of the financial supervisory bureau. BAI found that KEB exaggerated its insolvency and falsely recorded the Bank for International Settlements' capital adequacy ratio at 6.16%, which is below the 8% threshold for healthy banks. Prosecutors are investigating whether there were any transgressions of law in the process of selling KEB and whether bribes were given to officials. If prosecutors will find solid evidence that the data was cooked up, it might lead to the nullification of the KEB sale to Lone Star and the arrest of regulators, policymakers and former KEB executives. SK CORP: To Sell 30% Stake in Incheon Unit in December ------------------------------------------------------ The Troubled Company Reporter - Asia Pacific reported on November 8, 2006, that SK Corp intends raise as much as US$700 million through an initial public offering of its subsidiary, SK Incheon Oil, on the London Stock Exchange. In an update, SK Corp. discloses that its board of directors resolved to sell 30% of the Incheon unit's total outstanding shares. "The exact number of shares shall be decided by the CEO, or a representative designated by the CEO, after taking the market conditions into consideration," SK Corp. points out. The total sales price will also be decided by SK's CEO, or his representative, after taking into account market conditions. SK Corp. promises to make an additional disclosure once the exact number of shares and sales price are confirmed. The expected sale date is December 2006, subject to change on future market conditions. SK Corp., however, forewarns that in the event of a sudden deterioration in the stock market caused by external factors or any other business-related circumstances, the sale of the Incheon stake may be postponed or cancelled. About SK Corporation Headquartered in Seoul, South Korea, SK Corporation -- http://eng.skcorp.com/-- is an energy and petrochemical company with 4,916 employees and 22 offices around the world in 2005. The company is strategically positioned as Korea's largest and Asia's leading refiner next to Sinopec and PetroChina. SK Corp. currently explores, develops and produces oil in 13 nations that span Africa, Asia and the Americas. Moody's Investors Service gave SK Corp. a 'Ba1' Foreign Currency Long-Term Debt Rating effective February 17, 2006. SK CORP: Considers Entering China's Petrochemical Market -------------------------------------------------------- SK Corporation is considering tapping China's petrochemical market with China National Petrochemical Corp. -- SINOPEC -- Yonhap News reports citing a statement made by the Korean company. "As part of our ongoing efforts to seek ways to cooperate with SINOPEC, we're considering pursuing a naphtha cracker operation center (in the Chinese market)," the Korean newspaper quotes the company as saying. Naphtha, Yonhap explains, is an oil-based raw material for petrochemical products. About SK Corporation Headquartered in Seoul, South Korea, SK Corporation -- http://eng.skcorp.com/-- is an energy and petrochemical company with 4,916 employees and 22 offices around the world in 2005. The company is strategically positioned as Korea's largest and Asia's leading refiner next to Sinopec and PetroChina. SK Corp. currently explores, develops and produces oil in 13 nations that span Africa, Asia and the Americas. Moody's Investors Service gave SK Corp. a 'Ba1' Foreign Currency Long-Term Debt Rating effective February 17, 2006. * S&P Affirms South Korea's Credit Ratings ------------------------------------------ Standard & Poor's Ratings Services affirmed its 'A/A-1' long- and short-term foreign currency, and 'A+/A-1' long- and short- term local currency ratings on the Republic of Korea. The outlook on the long-term ratings remains stable. "The affirmation incorporates a balance of factors between Korea's economic, fiscal, and external strengths with high contingent risks and delays in implementing structural reforms such as in the labor market and SME sector," said Standard & Poor's credit analyst Takahira Ogawa. Since Korea's public sector became a net external creditor in 2000, the government's net external position has strengthened because of rising reserves and is projected to reach 48% of current account receipts for 2006. Foreign currency reserves amounted to US$229 billion as of Oct. 31, 2006, and are expected to increase, covering 6.8 months of current account payments by the end of 2006, compared with just under two months in 1997. South Korea has reported a general government surplus since 2000, averaging 1.4% of GDP (including social security and excluding lending to the financial sector). However, debt has risen more than the flows would suggest, and gross general government debt is projected to reach 40% of GDP by the end of 2006, above the 36% median for 'A'-rated sovereigns. Korea's debt burden stems in part from the heavy cost of restructuring the financial sector following the Asian financial crisis, which amounted to more than one-third of 1998 GDP. Despite the 1997-1998 Asian financial crisis and instability in the domestic financial system, Korea's developed economy has remained buoyant and real GDP has grown an average 5.8% a year since 1999. Korea is one of the global leaders in Internet technology and its economy is diversified. Further restructuring of the private and public sectors could raise Korea's trend growth from the current rate of about 4%, which is one of the fastest among OECD countries. Recently, however, one of Korea's strengths, strong fiscal discipline, has shown a slight deterioration. Although the fiscal position has been resilient, it is slowly eroding due to the increasingly expansionary policy of the current government. The fiscal balance, excluding social security surplus and debt transfers from KAMCO and KDIC, is expected to deteriorate to a deficit of 1.8% of GDP in 2006 from a surplus of 0.7% in 2002, when President Roh Moo-hyun took office. Gross general government debt is projected to reach 40% of GDP at year-end 2006 (including government guarantees), which is higher than the 34% recorded in 2002. This rapid increase in the debt to GDP ratio is being caused by, among other factors: -- the government taking over debt from KAMCO and KDIC; -- issuance of foreign exchange stabilization bonds; and -- financing the general account deficit. Reform of the labor market and improving the competitiveness of the SME sector has been slow. As the country's population is ageing rapidly and major Korean companies have started investing heavily abroad, the flexibility of Korea's labor resources and strength of its SMEs are key drivers of Korea's ability to maintain its medium- and long-term growth prospects. A recent nuclear test and missile launches by the Democratic People's Republic of Korea have again highlighted the significant geopolitical risk posed by North Korea, which is the single largest negative factor for the sovereign credit ratings of Korea. Though North Korea has acted provocatively by conducting a nuclear test and missile launches, Standard & Poor's base case scenario is for a peaceful status quo to hold. Six Party Talks, which look likely to resume, will probably be a protracted and inconclusive process, rendering substantial progress on the nuclear disarmament of North Korea remote. The stable outlook reflects the balance of factors affecting the sovereign ratings. Downward pressure stems from the potential contingent costs of reunification and military risk from North Korea, which is offset by the public sector's net external asset position, resilient fiscal position, though it is slightly eroding, and the country's dynamic economy. "In the unlikely event of a military conflict, the ratings on Korea would most likely fall sharply," Mr. Ogawa said. "Another scenario with slightly higher probability, albeit still low, is the collapse of the North Korean economy. The consequent fiscal burden of reunification would result in the ratings on South Korea falling, but to a lesser extent, depending on events surrounding the collapse," Mr. Ogawa added. "Further progress in structural reform in the financial and corporate sectors, an easing of geopolitical tensions due to a multilateral settlement with North Korea, or a reduction in the Korean government's debt burden in anticipation of future reunification costs could lead to an upgrade," Mr. Ogawa explained. =============== M A L A Y S I A =============== ARMSTRONG WORLD: Sept. 30 Balance Sheet Upside-Down by $1.2 Bil. ---------------------------------------------------------------- Armstrong World Industries Inc. reported third quarter 2006 net sales of US$973.6 million that were 4% higher than third quarter net sales of US$937.0 million in 2005, including a US$13 million favorable impact from foreign exchange rates. Reported operating income for the quarter increased to US$67.4 million from US$66.5 million in the third quarter of 2005. Adjusted operating income for the quarter of US$82.5million increased 27% compared with adjusted operating income of US$65.2 million in the prior year quarter. At Sept. 30, 2006, Armstrong World's balance sheet reflected a stockholder's deficit of US$1,189,500,000. Adjusted numbers exclude spending on restructuring charges and related costs, impacts from legal settlements, environmental charges, foreign exchange and certain other gains and losses to allow meaningful comparisons of operating performance. The year-over-year growth in third quarter 2006 adjusted operating income benefited from price increases in excess of manufacturing cost inflation, improved product mix in European businesses, improved direct manufacturing costs in all businesses, and lower manufacturing period expense in our floor businesses. Increased earnings in our WAVE joint venture also contributed to the growth. Notably, the growth was achieved despite significant volume declines in North American resilient business where vinyl declines offset laminate growth. Resilient Flooring net sales were US$304.8 million in the third quarter of 2006 and US$311.5 million in the same period of 2005. Excluding the favorable impact of foreign exchange rates, net sales decreased 4%. The decline was primarily due to decreased volume for vinyl products in North America. A reported operating loss of US$2.9 million in the quarter compared with reported income in the third quarter of 2005 of US$7.7 million. Adjusted operating income of US$4.5 million compared with US$5.9 million on the same basis in the prior year period. The decline is primarily attributable to lower sales. The benefits of increased manufacturing efficiency were greater than the impact of cost inflation in the period. Wood Flooring net sales of US$217.2 million in the current quarter declined 1% from US$220.2 million in the prior year as weakness in the U.S. housing markets drove volume declines in both engineered and solid wood floors. Reported operating income of US$16.5 million in the quarter was below the US$25.7 million reported in the third quarter of 2005. The reduction in operating income was due to the sales volume decline combined with higher lumber prices and increased promotional spending. Production costs improved during the period. Textiles and Sports Flooring net sales in the third quarter of 2006 increased to US$86.3 million from US$79.7 million. Excluding the effects of favorable foreign exchange rates of US$3.9 million, sales grew 3% primarily on higher volume in carpet tiles and better price realization in broadloom carpet. Reported operating income of US$4.2 million in 2006 increased from US$3.2 million in 2005 on the growth in sales. Building Products net sales of US$304.5 million in the current quarter increased from US$268.2 million in the prior year. Excluding the effects of favorable foreign exchange rates of US$5.0 million, sales increased by 12%, primarily due to price increases made to offset inflationary pressures, and improved product mix in both the U.S. and European markets. Volume increased in North America and the Pacific Rim. Reported operating income increased to US$59.7 million from operating income of US$43.1 million in the third quarter of 2005. The growth was driven by improved price realization, better product mix and increased equity earnings in WAVE. Cabinets net sales in the third quarter of 2006 of US$60.8 million increased 6% from US$57.4 million in 2005 on higher selling prices and improved product mix. Volume decreased slightly. Reported operating income for the third quarter of US$3.8 million improved from the prior year's US$0.3 million operating loss, primarily driven by the sales growth, and lower SG&A spending. Year-to-Date Results For the nine-month period ended Sept. 30, 2006, net sales were US$2,795.7 million compared with US$2,696.7 million reported for the first nine months of 2005. Excluding the US$10.4 million impact from unfavorable foreign exchange rates, net sales increased by 4%. The sales growth was due to improved price and product mix on flat volume, and all segments grew sales except Resilient Flooring. Operating income in the first nine months of 2006 was US$188.1 million compared with operating income of US$110.2 million for the same period in 2005. Adjusted operating income of US$209.9 million increased 59% compared with adjusted operating income of US$131.9 million in the prior year period. The improvement in operating income was primarily due to higher sales, improved manufacturing productivity and reduced SG&A expenses. Outlook For the fourth quarter of 2006, commercial markets are expected to remain strong, while the decline in the U.S. housing market will continue to reduce volumes in our residential businesses. On a consolidated basis, improved prices are anticipated to continue to offset cost inflation, and reductions in direct manufacturing costs will be sustained. Due to fresh start reporting adjustments associated with our Oct. 2, 2006, emergence from Chapter 11, reported fourth quarter operating income would not be comparable to prior periods. The following outlook table includes adjusted operating income on a pre-fresh start reporting basis to facilitate comparison to 2005 fourth quarter adjusted operating income. * * * Based in Lancaster, Pennsylvania, Armstrong World Industries, Inc. -- http://www.armstrong.com/-- the major operating subsidiary of Armstrong Holdings, Inc., designs, manufactures and sells interior floor coverings and ceiling systems, around the world. The company also has locations in Malaysia, Australia, China, Hong Kong, Indonesia, Japan, Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam. It also has locations in Colombia, Costa Rica, Greece and Iceland, among others. The company and its affiliates filed for chapter 11 protection on December 6, 2000 (Bankr. Del. Case No. 00-04469). Stephen Karotkin, Esq., at Weil, Gotshal & Manges LLP, and Russell C. Silberglied, Esq., at Richards, Layton & Finger, P.A., represent the Debtors in their restructuring efforts. The Company and its affiliates tapped the Feinberg Group for analysis, evaluation, and treatment of personal injury asbestos claims. Mark Felger, Esq. and David Carickhoff, Esq., at Cozen and O'Connor, and Robert Drain, Esq., Andrew Rosenberg, Esq., and Alexander Rohan, Esq., at Paul, Weiss, Rifkind, Wharton & Garrison, represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Houlihan Lokey for financial and investment advice. The Official Committee of Asbestos Personal Injury Claimant hired Ashby & Geddes as counsel. The Bankruptcy Court confirmed AWI's plan on Nov. 18, 2003. The District Court Judge Robreno confirmed AWI's Modified Plan on Aug. 14, 2006. The Clerk entered the formal written confirmation order on Aug. 18, 2006. The Company's "Fourth Amended Plan of Reorganization, as Modified," has become effective and AWI has emerged from Chapter 11. (Armstrong Bankruptcy News, Issue No. 103; Bankruptcy Creditors' Service,Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * Standard & Poor's Ratings Services raised its corporate credit rating on Armstrong World Industries Inc. to 'BB' from 'D', following the Company's emergence from bankruptcy on Oct. 2, 2006. The outlook is stable. MALAYSIA AIRLINES: Denies Rights Issue Reports ---------------------------------------------- Malaysian Airline System Bhd has denied media reports regarding the alleged shareholders' approval for a rights issue to be implemented some time next year, Reuters reports. According to the report, Malaysian Airline's chief executive officer, Idris Jala, was quoted in local newspapers last week as saying that shareholders had given management approval to consider a rights issue. However, in a statement by the carrier made on November 10, 2006, it said that Mr. Idris had been speaking to reporters at an aviation conference in Singapore and was actually referring to a recently approved issue of a small amount of redeemable preference shares. Headquartered in Selangor, Malaysia, Malaysia Airlines -- http://www.malaysiaairlines.com/-- services domestic and international flights. Its global network comprised 32 domestic and 86 international destinations. Of the 86 international destinations, 17 were operated in collaboration with our airline partners. The carrier made a loss after tax of MYR1.3 billion for fiscal year 2005, due to high fuel and operating costs, and unprofitable routes. In late February 2006, it unveiled a radical rescue plan to raise MYR4 billion to stay afloat and return to profitability by 2007. Under the restructuring plan, the airline pledged to cut its budget by 20% across the board, terminate many unprofitable routes, freeze recruitment except for front-line staff, crack down on corruption by encouraging whistle-blowing and stop corporate sponsorship. OLYMPIA INDUSTRIES: Board's Annual Gen. Meeting Set on Dec. 6 ------------------------------------------------------------- The Board of Olympia Industries Bhd will hold its 25th annual general meeting on December 6, 2006, at 10:00 a.m. The meeting will be held at the Crystal Ballroom, Level 1, Corus Hotel Kuala Lumpur, in Jalan Ampang, Kuala Lumpur. About Olympia Industries Headquartered in Kuala Lumpur, Malaysia, Olympia Industries Berhad organizing and managing numbers forecast pools and public lotteries, operation of recreation clubs, investment holding and property development. Other activities include trading in securities, paint spraying of aluminium, other metal products and architectural products, letting of properties, maintaining and operating internet based transaction facilities and services, food and beverage business, events organizer and project management, travel and tours agency, servicing of oil and gas pipeline, asset management, money lending and stockbroking. Operations are carried out in Malaysia, Papua New Guinea and Singapore. The Company has incurred continuous losses in the past and has also been fined many times by Bursa Malaysia Securities for failing to maintain appropriate standards of corporate responsibility and accountability to the investing public. The company's June 30, 2006 balance sheet revealed a stockholders' deficit of MYR1,041,766,000 resulting from total liabilities of MYR2,035,268,000 exceeding total assets of MYR1,001,289,000. WEMBLEY INDUSTRIES: Bursa Securities Updates on Delisting Plan -------------------------------------------------------------- On November 3, 2006, Bursa Malaysia Securities Bhd disclosed that Wembley Industries Holdings Bhd will be delisted and removed from the Official List of Bursa Securities starting 9:00 a.m. on November 20, 2006. Bursa Securities had announced on March 17, that its decision to delist Wembley depends on the outcome of the company's application to the Securities Commission for an extension of time to implement its regularization plan. However, according to a report from the Troubled Company Reporter - Asia Pacific, the SC, through a letter dated Oct. 18, 2006, rejected the appeal made by the company. Bursa Securities explained that its decision to delist the securities of Wembley is without prejudice as it was stipulated that the company's securities can be delisted from the Official List of Bursa Securities in the event: a. the SC rejects Wembley's application for extension of time to implement its regularization plan; or b. Wembley fails to implement its regularization plan within the time frame stipulated by the SC or such other extended timeframe as stipulated by the SC; or c. Wembley fails to comply with any of the conditions imposed by the SC vide its approval letter and/or any further conditions imposed by the SC. Securities of Wembley Industries, which are currently deposited with Bursa Malaysia Depository Sdn Bhd, may remain deposited with Bursa Depository. It is not mandatory for the securities of a company that has been delisted to be withdrawn from Bursa Depository. Meanwhile, Wembley's shareholders who intend to hold their securities in the form of physical certificates, can withdraw these securities from their Central Depository System accounts maintained with Bursa Depository at anytime after the securities of the above company have been de-listed from the Official List of Bursa Securities. Shareholders are required to submit an application form for withdrawal as prescribed by Bursa Depository. For further information, the shareholders can contact: Bursa Depository's Helpline 03-2034 7711 Upon delisting, Wembley will continue to exist but as an unlisted entity. The company is still able to continue its operations and business and proceed with its corporate restructuring and its shareholders can still be rewarded by the company's performance. Headquartered in Sarawak Malaysia, Wembley Industries Holdings Berhad is a developer of commercial properties and investment holding. Its other activities are the development of the inter- state bus and taxi terminal, the retail podium and the budget hotel. The company has been placed under the Practice Note 4 category due to its tight cash flow position. On January 7, 2003, Malaysia's Foreign Investment Committee approved the company's regularization plan. Subsequently, on April 7, 2003, the FIC revised its approval to include the possible participation of Daewoo Corporation, the former turnkey contractor of Plaza Rakyat Project in the company's Proposed Debt Restructuring. The company's ability to continue as a going concern hinges on the successful implementation of the Scheme. As reported by the Troubled Company Reporter - Asia Pacific, Wembley's balance sheet as of June 30, 2006, revealed strained liquidity with current assets of MYR415,649,000 available to pay current liabilities of MYR1,229,086,000 coming due within the next 12 months. As of June 30, 2006, the group has total assets of MYR422,526,000 and total liabilities of MYR1,229,086,000, resulting into a shareholders' deficit of MYR806,560,000. ===================== N E W Z E A L A N D ===================== ACTIVE HOMES: Court Sets Liquidation Hearing on December 7 ---------------------------------------------------------- Active Contracting Ltd filed with the High Court of Auckland a liquidation petition against Active Homes Ltd on October 9, 2006. The application will be heard before the Court on Dec. 7, 2006, at 10:45 a.m. The Solicitor for the Petitioner can be reached at: Alexander Eric Ashmore Smith & Partners Barristers and Solicitors 293 Lincoln Road (P.O. Box 104-065) Lincoln North, Henderson Auckland New Zealand BREWTOPP EARTH: Liquidation Hearing Set on December 19 ------------------------------------------------------ A hearing of the liquidation petition filed against Brewtopp Earth Movers Ltd will be held before the High Court of Auckland on December 19, 2006, at 10:45 a.m. Sean Lawrence Topping and Sharon Merie Topping filed the petition on September 27, 2006. The Solicitor for the Petitioner can be reached at: Alexander Eric Ashmore Smith & Partners Barristers and Solicitors 293 Lincoln Road (P.O. Box 104-065) Lincoln North, Henderson Auckland New Zealand CHEUNG & HO: Creditors Must Prove Debts by November 27 ------------------------------------------------------ On October 26, 2006, shareholders of Cheung & Ho Ltd appointed Paul Graham Sargison and Gerald Stanley Rea as liquidators. The liquidators require the Company's creditors to submit their proofs of claim by November 27, 2006, for them to share in the Company's distribution. The Liquidators can be reached at: Paul Graham Sargison Gerald Stanley Rea Gerry Rea Associates P.O. Box 3015, Auckland New Zealand Telephone:(09) 377 3099 Facsimile:(09) 377 3098 CORPORATE CLEANING: Faces Liquidation Proceedings ------------------------------------------------- On November 13, 2006, the High Court of Christchurch heard a petition to liquidate Corporate Cleaning Services Ltd. The Commissioner of Inland Revenue filed the petition with the Court on September 26, 2006. The Solicitor for the Petitioner can be reached at: Julia Dykema Inland Revenue Department Technical and Legal Support Group South Island Service Centre Ground Floor Reception 518 Colombo Street (P.O. Box 1782) Christchurch 8140 New Zealand Telephone:(03) 968 0809 Facsimile:(03) 977 9853 FAMOUS BRANDS: Creditors' Proofs of Claim Due on November 30 ------------------------------------------------------------ On October 26, 2006, shareholders of Famous Brands Factory Outlet Ltd resolved by special resolution to liquidate the company's business and appointed Andrew Hill as liquidator. Accordingly, Mr. Hill requires the Company's creditors to submit their proofs of claim by November 30, 2006, or they will be excluded from sharing in the distribution. The Liquidator can be reached at: Andrew Hill BDO Spicers Chartered Accountants 29 Northcroft Street Takapuna, Auckland New Zealand Telephone:(09) 486 2125 Facsimile:(09) 486 4026 GAMO HOLDINGS: Names Montgomerie and Cunningham as Liquidators -------------------------------------------------------------- On October 13, 2006, Bernard Spencer Montgomerie and Stuart James Cunningham were appointed as joint and several liquidators of Gamo Holdings Ltd. The liquidators require creditors of the Company to submit their proofs of claim by November 22, 2006. The Joint Liquidators can be reached at: Bernard Spencer Montgomerie Stuart James Cunningham Montgomerie & Associates Insolvency Practitioners C.P.O. Box 65, Auckland 1015 New Zealand Telephone:(09) 368 7672 Facsimile:(09) 307 0174 LAM FINANCIAL: Liquidation Petition Hearing Set on Nov. 16 ---------------------------------------------------------- On August 29, 2006, the Commissioner of Inland Revenue filed a petition to liquidate Lam Financial Services Ltd. The petition will be heard before the High Court of Auckland on November 16, 2006, at 10:45 a.m. The Solicitor for the Petitioner can be reached at: Simon John Eisdell Moore Crown Solicitor Meredith Connell Level Seventeen, Forsyth Barr Tower 55-65 Shortland Street (P.O. Box 2213 or D.X. C.P. 24-063) Auckland New Zealand PATTERSON CONSULTING: Court Sets Liquidation Hearing on Nov. 16 --------------------------------------------------------------- The High Court of Auckland will hear a liquidation petition filed against Patterson Consulting Worldwide Ltd on November 16, 2006, at 10:45 a.m. The Commissioner of Inland Revenue filed the petition on August 28, 2006. The Solicitor for the Petitioner can be reached at: Simon John Eisdell Moore Crown Solicitor Meredith Connell Level Seventeen, Forsyth Barr Tower 55-65 Shortland Street (P.O. Box 2213 or D.X. C.P. 24-063) Auckland New Zealand TEAMWORK INTELETRAC: Shareholders Appoint Joint Liquidators ----------------------------------------------------------- On October 26, 2006, shareholders of Teamwork Inteletrac Ltd resolved to liquidate the company's business and appointed Stephen Mark Lawrence and Anthony John McCullagh as joint and several liquidators. Accordingly, the joint liquidators fix November 27, 2006, as the last day for the creditors to prove their debts. The Joint Liquidators can be reached at: Stephen Mark Lawrence Anthony John Mccullagh Horwath Corporate (Auckland) Limited P.O. Box 3678, Auckland 1015 New Zealand Telephone:(09) 306 3440 Facsimile:(09) 302 0536 TOTALLY THERMAL: Creditors to Prove Claims on November 30 --------------------------------------------------------- Shareholders of Totally Thermal - Products Ltd appointed Roger Johnstone as liquidator on October 23, 2006. Creditors are required to submit their proofs of claim to Liquidator Johnstone by November 30, 2006, or they will be excluded from sharing in any distribution the Company will make. The Liquidator can be reached at: Roger Johnstone P.O. Box 35-825 Browns Bay, Auckland New Zealand Telephone/Facsimile: (09) 473 1139 ===================== P H I L I P P I N E S ===================== BANCO DE ORO: To Hold Special Stockholders' Meeting on Dec. 27 -------------------------------------------------------------- Banco de Oro Universal Bank filed documents with the Philippine Stock Exchange in response to the PSE's request for additional information in respect of the bank's Plan of Merger with Equitable PCI Bank, Inc. The documents filed with the PSE are: (a) Preliminary Information Statement in connection with Banco de Oro's Special Stockholders' Meeting to be held on December 27, 2006, at 10:00 a.m., at the Quezon Ballroom "B" Makati City Shangri-La, Ayala Avenue corner Makati Avenue, in Makati City. Only stockholders of record in the bank's books as of the close of business on November 20, 2006, are entitled to vote at the meeting; (b) the Plan of Merger; and (c) Articles of Merger. Full-text copies of these documents are available for free at: http://www.pse.org.ph/html/ListedCompanies/pdf/2006/BDO_P20IS_11122006.pdf As reported in the Troubled Company Reporter - Asia Pacific on November 8, 2006, the Boards of Banco de Oro Universal Bank and Equitable PCI Bank, Inc., passed resolutions approving a plan to merge the two companies. Both Boards have endorsed to their shareholders the approved Plan of Merger for final ratification. Completion of the transaction is subject to regulatory approval and is anticipated to close by the first quarter of 2007. About Banco de Oro Banco de Oro Universal Bank -- http://www.bdo.com.ph/-- provides a wide range of corporate, commercial and retail banking services in the Philippines, which include traditional loan and deposit products, as well as treasury, trust banking, investment banking, cash management, insurance, remittance, retail cash cards and credit card services. Banco de Oro is a member of the SM Group of Companies, one of the Philippines' largest conglomerates, and is currently ranked among the top 10 banks in the Philippines in terms of assets, capital, deposits and loans. Its asset quality indicators (non- performing loans & non-performing assets) are among the lowest in the industry. * * * Fitch Ratings Ltd. had on July 27, 2006, upgraded Banco de Oro Universal Bank's Support rating to '3' from '4', and affirmed its Individual rating at 'C/D', following a review of the Bank. MANILA MINING: Signs Letter of Intent with Anglo American --------------------------------------------------------- In a disclosure with the Philippine Stock Exchange dated November 9, 2006, Manila Mining Corporation advised that it has signed a Letter of Intent with Anglo American Explorations (Philippines), Inc. The LOI, subject to finalizing definitive agreements, confirmed the participation of Anglo American Exploration in the exploration and potential development of the Kalaya-an Property, which is part of the contract area of Manila Mining's Exploration Permit pending final renewal with the Department of Environment and Natural Resources. Anglo American Exploration is a wholly owned subsidiary of Anglo-American plc. Anglo American plc Anglo American plc -- http://www.angloamerican.co.uk/-- with its subsidiaries, joint ventures and associates has significant and focused interests in gold, platinum, diamonds, coal, base metals, ferrous metals and industries, industrial minerals and paper and packaging, as well as financial and technological strength. The Group is geographically diverse, with operations and developments in Africa, Europe, South and North America and Australia. Anglo American has excellent growth potential supported by a US$6.2 billion approved project pipeline. Since 1999, Anglo American has completed a significant number of company transforming transactions including acquisitions of US$15 billion and disposals of US$9.7 billion and the Group has a well defined strategy to increase focus on its core mining assets, drive internal efficiencies and deliver higher returns. Anglo American has a strong commitment to safety and the sustainable development of the communities where it operates. About Manila Mining Manila Mining Corporation -- http://www.manilamining.com/-- was incorporated primarily to carry out the business of mining, milling, concentrating, converting, smelting, treating, preparing for market, manufacturing, buying, selling, exchanging and otherwise producing and dealing in precious and semi- precious metals, ores, minerals and their by-products. The Company is an affiliate of Lepanto Consolidated Mining Company. It started its mining operations in Placer, Surigao del Norte in 1981. Up until it suspended its mining and milling operations in July 2001, the Company produced gold bullion through a Carbon-In-Pulp (CIP) Plant. * * * After auditing Manila Mining's annual report for the year ended December 31, 2005, Rodelio A. Acosta, of Isla Lipana & Co., raised substantial doubt on the Company's ability to continue as a going concern, noting the Company's continued losses from operations that resulted to a deficit of PHP936,543,157 and working capital deficiency of PHP729,068,305 in 2005. MANILA MINING: Appoints SGV as External Auditor & P. Ayson as VP ---------------------------------------------------------------- Manila Mining Corporation advises the Philippine Stock Exchange that at the meeting of its board of directors held on Nov. 9, 2006, the Board approved the appointments of: * SyCip Gorres Velayo & Co. as Manila Mining's external auditor; and * Atty. Pablo T. Ayson, Jr., as the company's vice president. About Manila Mining Manila Mining Corporation -- http://www.manilamining.com/-- was incorporated primarily to carry out the business of mining, milling, concentrating, converting, smelting, treating, preparing for market, manufacturing, buying, selling, exchanging and otherwise producing and dealing in precious and semi- precious metals, ores, minerals and their by-products. The Company is an affiliate of Lepanto Consolidated Mining Company. It started its mining operations in Placer, Surigao del Norte in 1981. Up until it suspended its mining and milling operations in July 2001, the Company produced gold bullion through a Carbon-In-Pulp (CIP) Plant. * * * After auditing Manila Mining's annual report for the year ended December 31, 2005, Rodelio A. Acosta, of Isla Lipana & Co., raised substantial doubt on the Company's ability to continue as a going concern, noting the Company's continued losses from operations that resulted to a deficit of PHP936,543,157 and working capital deficiency of PHP729,068,305 in 2005. VITARICH CORP: Signs Up Oracle to Enhance Market Efficiency ----------------------------------------------------------- Vitarich Corporation has signed up the services of Oracle Corporation for its Management Information Systems to enhance the agri-firm's quality service efficiency for its markets nationwide. "Putting in place an advanced and well-streamlined information system assures Vitarich of a highly-efficient and systemized information network for our agri-business operations across the country," Vitarich chairman and president Rogelio Sarmiento, says. The corporation's investment in information technology and management system tools is expected to improve business efficiency, enhance productivity and increase profitability for its customers and Vitarich. "Once the Oracle system is in place and running, access to all relevant data and essential financial information will be quick and easy. With complete up-to the minute accurate information, we shall enhance high-level operational efficiency in distribution, inventory and procurement, finance and accounting," Mr. Sarmiento further says. The project will allow real time updates on payments, distribution, supply inventory and financial reporting through all its offices nationwide. It will also utilize one mechanism that allows check and balance within the system. Management information system manager Rocco Sarmiento and information technology project manager James Garbo spearhead the Oracle database project. Oracle is one of world's leading companies in database management system development operating in more than 145 countries around the globe. Vitarich has harnessed other technology advancements in the agri-business industry for years. The company is the only agrifirm that has a research and development facility which is located in Marilao, Bulacan, Mr. Sarmiento notes. About Vitarich Vitarich Corporation -- http://www.vitarich.com/-- is among the leading integrated producers and wholesalers of poultry and animal feed products in the Philippines. The Company also develops, produces and sells animal health products. It is dedicated to the poultry and feeds industry, committing all of its resources to the production of poultry products, including upstream production activities such as feed milling, and additional ventures where the company's knowledge of the poultry and feeds production process provides it with competitive advantage. In 1988, the Company entered into a joint venture agreement with Cobb-Vantress, Inc. and formed Breeder Master Inc., (formerly Phil-American Poultry Breeders, Inc.) to engage in the production of day-old parent stocks. Cobb-Vantress is 100% owned by Tyson Foods, Inc, the worlds largest chicken company. BMI is 80% owned by Vitarich and 20% owned by Cobb-Vantress. Despite the Company's expansion into other areas, its core business remains rooted in poultry. As of end-2001, contribution to gross sales of the Company's business groups was -- foods 62%, feeds 30%, and farms 8%. VITA is presently engaged in the manufacture and distribution of various poultry products like chicken, animal and aqua feeds, and day-old chicks, among others. * * * The Troubled Company Reporter - Asia Pacific reported on July 10, 2006, that after auditing Vitarich's 2005 annual report, Punongbayan & Araullo raised substantial doubt the Company's ability to continue as a going concern, due to significant losses for the past three years, including net losses worth PHP249.3 million in 2005 and PHP291.2 million in 2004, resulting in significant deficit amounting to PHP1.8 billion as of Dec. 31, 2005. The TCR-AP reported that Vitarich disclosed to the Philippine Stock Exchange that after the Company's annual stockholders' meeting held on June 30, 2006, the company planned to reduce losses by 50% to around PHP125 million in 2006 by continuously shifting the focus to hog and aqua from chicken and poultry feeds -- to break even. As at December 31, 2005, and 2004, the Company holds 100% interests in Philippines' Favorite Chicken, Inc., and Gromax, Inc., both domestic corporations, the TCR-AP noted. * * * The TCR-AP reported on September 19, 2006, that Vitarich has filed a petition for corporate rehabilitation with the Regional Trial Court of Malolos City, Bulacan. * Net FDI Flows Hit US$1.36 Bln in First Eight Months of 2006 ------------------------------------------------------------- Net foreign direct investment flows for August 2006 reached US$207 million, bringing the year-to-date FDI flows to US$1.36 billion, up by 20.6% from the comparable period last year. The sustained FDI flows during the eight-month period drew support from the strength of the country's improved macroeconomic fundamentals (e.g., improved fiscal position with surpluses posted from April-June and August, decelerating inflation rate, peso appreciation) owing to the Government's economic reform program. The inflows also reflected in part the expansion plans of some companies to increase capacity in anticipation of greater demand following continued favorable domestic and global economic outlook. Meanwhile, the recent credit outlook upgrade by the Moody's Investors Service from negative to stable is a confirmation of the positive sentiment by global investors in the Philippines' economic climate, which in turn is expected to further lift FDI flows in the near term. FDI flows during the eight-month period were higher year-on-year by US$232 million as the "other capital" account reversed to a surplus of US$903 million from a net outflow of US$35 million a year ago. The "other capital" account, consisting largely of intercompany borrowing/lending of funds between foreign direct investors and their local subsidiaries, branches or affiliates in the Philippines, showed inflows going into automotive and electronic firms. The surplus in the "other capital" account more than compensated for the net outflows of US$18 million in the reinvested earnings account. Net equity capital managed to post a surplus of US$476 million during the first eight months of the year, notwithstanding the 52.7% decline from the year-ago level. Industries benefited by these inflows comprised mainly of: (a) manufacturing, (b) services, (c) financial intermediation, and (d) real estate The bulk of these inflows was infused by investors from the U.S., Japan, United Kingdom, Hong Kong, Federal Republic of Germany, and Switzerland. * * * "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." On November 3, 2006, the Troubled Company Reporter - Asia Pacific reported that Moody's Investors Service changed to stable from negative the outlook on the Philippines' key ratings due to the progress made in reining in fiscal deficits in 2006 and an easing in dependence on external financing. The affected ratings include the B1 long-term government foreign- and local-currency ratings, the B1 foreign-currency bank deposit ceiling and Ba3 foreign currency country ceiling, the TCR-AP noted. ================= S I N G A P O R E ================= B.T. FROZEN: Court to Hear Wind-Up Petition on Nov. 17 ------------------------------------------------------ On Sept. 15, 2006, Singapore Food Industries Limited filed an application to wind up B.T. Frozen Food Trading Pte Ltd. The wind-up petition will be heard before the High Court of Singapore on Nov. 17, 2006, at 10:00 a.m. The Petitioner's solicitors can be reached at: Tito Isaac & Co 20A Circular Road Singapore 049376 DELL INC: Court Approves US$17M Settlement of Consumer Suits ------------------------------------------------------------ Judge Ronald B. Leighton of the United States District Court for the Western District of Washington granted final approval to a settlement in a class action against: -- Dell, Inc.; -- Dell Financial Services, L.P.; and -- CIT Bank. The class action was filed on behalf of certain Dell customers nationwide. It alleged that the defendants' practices caused consumers to incur excess finance charges and late fees. Under the terms of the settlement, the defendants will pay up to US$17 million to settle claims by customers who bought computers and/or related services and products from Dell and financed their purchases with Dell Financial Services. Dell and Dell Financial Services have also agreed to modify some of their sales and financing practices. "This settlement will provide substantial benefits to past, current, and future Dell customers," said Steven A. Skalet of Mehri & Skalet, one of the law firms representing the plaintiffs. The agreement settled three pending class actions and one unfiled class action in which plaintiffs alleged that consumers were enticed into financing their purchases by promotional offers such as "90 Days Same as Cash," but were not informed when they were approved for credit lines that lacked such promotional features. The actions also alleged that the defendants failed to adequately disclose the terms and conditions associated with its "Dell Preferred Account" lines of credit. As a result, plaintiffs alleged that customers accrued unexpected interest and late charges. All three defendants deny that consumers were misled or that they engaged in any wrongdoing, but agreed to the settlement in order to avoid the cost and uncertainty of continued litigation. Under the terms of the settlement, eligible class members may apply to receive a refund of 75.95% of the estimated interest paid during sixty days following the initial purchase. Class members who paid a late payment fee may receive a refund of 75.95% of the average late fee paid by class members. Dell Financial Services will also make changes to the way it advertises its promotional financing offers and communicates with consumers who receive lines of credit. "The financial settlement, as well as Dell's promise to change certain sales practices, is in Dell's customers' interests in the long run," said Jeffrey Friedman of Lerach Coughlin Stoia Geller Rudman & Robbins LLP. The settlement will bring to an end nearly three years of investigation, negotiation, and litigation. "This settlement puts money back in the pockets of Dell customers and we are very pleased with this result," stated Eric Chaffin of Seeger Weiss LLP. The suit is "Watson et al. v. Dell Inc. et al., Case No. 3:05- cv-05200-RBL," filed in the U.S. District Court for the Western District of Washington under Judge Ronald B. Lei. Representing plaintiffs are: (1) Steve W. Berman and Tyler Weaver both of Hagens Berman Sobol Shapiro LLP, 1301 5th Ave., Ste 2900, Seattle, WA 98101, Phone: 206-623-7292 or Fax: 206-623-0594, E-mail: steve@hbsslaw.com or tyler@hbsslaw.com; (2) Eric T. Chaffin and Stephen A. Weiss both of Seeger Weiss (NY), One William St., 10th Floor, New York, NY 10004, Phone: 212-584-0700, E-mail: echaffin@seegerweiss.com or sweiss@seegerweiss.com; (3) Jeffrey D. Friedman, Reed R. Kathrein and Shana E. Scarlett all of Lerach Coughlin Stoia Geller Rudman & Robbins (SF), 100 Pine St., Ste 2600, San Francisco, CA 94111, Phone: 415-288-4545, Fax: 415-288-4534, E-mail: jfriedman@lerachlaw.com or reedk@lerachlaw.com or shanas@lerachlaw.com; (4) Jeffrey F. Keller and Kathleen R. Scanlan both of Keller Grover, 425 Second St., Ste 500, San Francisco, CA 94107, Phone: 415-543-1305, Fax: 415-296-8891, E-mail: jfkeller@kellergrover.com or kscanlan@kellergrover.com; and (5) Steven A. Skalet of Mehri and Skalet PLLC, 1300 19th St., NW Ste 400, Washington, DC 20036, Phone: 202-822- 5100, E-mail: sskalet@findjustice.com. Representing defendants are: (1) Naomi Jane Gray and Ned N. Isokawa both of Paul Hastings Janofsky & Walker (SF), 55 Second St., 24th Floor, San Francisco, CA 94105, Phone: 415-856-7000 or 415-856-7003, E-mail: naomigray@paulhastings.com or nedisokawa@paulhastings.com; and Barry G. Sher of Paul Hastings Janofsky & Walker (NY), 75 E. 55th St., First Floor, NY 10022, Phone: 212-318-6085, E-mail: barrysher@paulhastings.com; (2) David B. Johnson of Sidley Austin (IL), One South Dearborn, Chicago, IL 60603, Phone: 312-853-7107, E-mail: djohnson@sidley.com; and Jennifer A. Landau of Sidley Austin (CA), 555 W, 5th St., STE 4000, Los Angeles, CA 90013-1010, Phone: 213-896-6000, E-mail: jlandau@sidley.com; (3) David Florian Jurca of Helsell Fetterman LLP, PO BOX 21846, Seattle, WA 98111-3846, Phone: 206-292-1144, Fax: 340-0902, E-mail: djurca@helsell.com; (4) David W. Moon and Lisa M. Simonetti both of Stroock & Stroock & Lavan (CA), 2029 Century Park E, STE 1800, Los Angeles, CA 90067, Phone: 310-556-5800, E-mail: dmoon@stroock.com or LSimonetti@stroock.com; (5) Stephen M. Rummage of Davis Wright Tremaine LLP, 1501 4th Ave., STE 2600, Seattle, WA 98101-1688, Phone: 206- 628-7755, Fax: 628-7699, E-mail: steverummage@dwt.com; and (6) Jeffrey M. Thomas and Jeffrey I Tilden both of Gordon Murray Tilden, 1001 4th Ave., STE 4000, Seattle, WA 98154, Phone: 206-467-6477, E-mail: jthomas@gmtlaw.com or jtilden@gmtlaw.com. Dell, Inc. (NASDAQ: DELL) -- http://www.dell.com/-- designs, develops, manufactures, markets, sells, and provides support for various computer systems and services to customers worldwide. In Asia, Dell is headquartered in Singapore, with manufacturing facilities in Malaysia and China and regional offices in these Asia Pacific countries: Singapore, Australia, China, India, Indonesia, Japan, Korea, Malaysia, Philippines, Taiwan and Thailand. The company disclosed that it is unable to file its quarterly report because of questions raised in connection with an informal investigation by the U.S. Securities and Exchange Commission into certain accounting and financial reporting matters and the subsequently initiated independent investigation by the Audit Committee of its board of directors. On Sept. 26, 2006, the TCR-AP reported that Dell Inc. reported plans to request a hearing before a NASDAQ Listing Qualifications Panel in response to the receipt on Sept. 15 of a NASDAQ Staff Determination letter indicating Dell is not in compliance with the filing requirement for continued listing as set forth in Marketplace Rule 4310(c)(14). EXABYTE CORP: Wells Fargo Increases Borrowing Base by US$2 Mil. --------------------------------------------------------------- Exabyte Corporation entered into a Sixth Amendment to its Credit and Security Agreement with Wells Fargo Business Credit, Inc., dated March 9, 2005. Under the Sixth Amendment, the Company's Borrowing Base was increased by up to US$2 million, which is equal to 100% of the principal amount of the borrowings under the Credit Agreement that may be purchased by Tandberg Data ASA pursuant to a Participation Agreement between Tandberg and Wells Fargo Bank, National Association dated Sept. 22, 2006. The Company disclosed that pursuant to the Asset Purchase Agreement with Tandberg, under certain circumstances Tandberg is obligated to provide WFBC with an irrevocable letter of credit in an amount up to US$2 million to support a further extension of credit by WFBC to the Company. In accordance with a Letter Agreement dated Sept. 22, 2006 between Tandberg and the Company, Tandberg has elected to satisfy the obligation to provide the Company with additional borrowing capacity through the purchase of a participation interest in the Credit Agreement, pursuant to the Participation Agreement. Full text-copies of the Sixth Amendment, the Letter Agreement and the Fifth Amendment may be viewed at no charge at: Sixth Amendment to the Credit and Security Agreement by and between Exabyte Corporation and Wells Fargo Business Credit, Inc., dated Sept. 22, 2006: http://ResearchArchives.com/t/s?12c1 Fifth Amendment to the Credit and Security Agreement by and between Exabyte Corporation and Wells Fargo Business Credit, Inc., dated July 31, 2006: http://ResearchArchives.com/t/s?12c2 Letter Agreement between Exabyte Corporation and Tandberg Data Corp., dated Sept. 22, 2006: http://ResearchArchives.com/t/s?12c3 About Exabyte Exabyte Corporation -- http://www.exabyte.com/-- manufactures tape storage products. The company's products back up and restore critical business information. In Asia Pacific, the company is headquartered in Singapore, with offices in Australia, China and Hong Kong. The company's balance sheet at Dec. 31, 2005, showed total assets of US$34,715,000, total liabilities of US$66,675,000 and Series AA Convertible preferred stock of 38,931,000, resulting in a US$70,891,000 stockholders' deficit. Going Concern Doubt Ehrhardt Keefe Steiner & Hottman PC expressed substantial doubt about Exabyte Corporation and its subsidiaries' ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Dec. 31, 2005, and 2004. The auditing firm pointed to the company's recurring losses and accumulated deficit of US$123,869,000. FINSBAY HOLDINGS: Creditors Must File Proofs of Debt by Dec. 4 -------------------------------------------------------------- Finsbay Holdings Pte Ltd, which was placed under members' voluntary liquidation, will be receiving proofs of debt from its creditors until Dec. 4, 2006. Failure to file a proof of claim will exclude a creditor from sharing in the company's distribution of dividend. The company's liquidators can be reached at: Chee Yoh Chuang Lim Lee Meng 18 Cross Street #08-01 Marsh & McLennan Centre Singapore 048423 LINDETEVES-JACOBERG: Posts SGD67-Mil. Profit for 3rd Qtr. 2006 -------------------------------------------------------------- Lindeteves-Jacoberg Ltd has, on Nov. 10, 2006, filed with the Singapore Stock Exchange Limited its financial statement for the third quarter ended Sept. 30, 2006. For the three months ended Sept. 30, 2006, the group has recorded a SGD10.4-million profit as compared with the SGD1.3-million profit reported for the same quarter last year. The increase was mainly due to higher output, better absorption of labor costs and fixed overheads. Moreover, for the third quarter ended Sept. 30, 2006, group sales recovered from SGD52.8 million in the third quarter of 2005, to SGD67.6 million in third quarter of 2006. During the quarter, the group was also able to increase the production volume of low voltage motors. The advances from the parent company, ATB Austria Autriebstechnik AG, which were also utilized to purchase raw materials and support the working capital requirements of the production plants, had a positive impact on the production volumes. Selling and distribution expenses as well as administrative expenses were lower in the third quarter of 2006 compared to those of the third quarter 2005. In the third quarter of 2005, the group had suffered from penalties for late delivery and late payment of customs, duty and taxes. Other operating expenses decreased a substantial 75.8% to SGD3.8 million in the third quarter of 2006, as compared to SGD15.7 million in the third quarter of 2005. The expenses in the third quarter 2005 included provisions of SGD10 million for write-off if inventory, accounts receivables and other debtors. As of Sept. 30, 2006, the group's balance sheet showed strained liquidity with SGD123 million in total current assets available to pay SGD169 million in total current liabilities. In spite of the reduced principal amounts under the Scheme of Arrangement, which took effect on Dec. 22, 2005, finance costs increased by SGD0.2 million in the third quarter of 2006 from the figure for corresponding period in 2005. This was mainly due to higher interest rate on the US$25 million floating rate note issued by one of the subsidiaries as well as the higher cost of funds incurred on the borrowings of the group in a rising interest rate regime. Exceptional expenses of US$0.1 million in the third quarter of 2006 relates to redundancy cost incurred in the UK. The group will continue to rationalize its operations to bring down operating costs further. Bank borrowings under current Liabilities declined by a substantial SGD202.7 million to SGD28.5 million due to the amount of debts written off and the balance of the debts outstanding were reclassified to an 8-year term loan under the Scheme of Arrangement. Overall bank borrowings decreased by SGD79.7 million of which SGD75 million were due to debts written off. Share capital increased by SGD33.3 million comprising SGD9.9 million arising from shares issued to the creditor banks and SGD3.4 million arising form shares issued to ATB Antriebstechmik AG. At the company level, investment in subsidiaries decreased by approximately SGD43.1 million to SGD116.2 million due mainly to impairment to the company's investment in BCW Electric Motor (Dalian) Corp. Ltd, its subsidiary in China. The company disclosed on Oct. 29, 2006, that it has entered into separate conditional sale and purchase agreements to sell its equity interest in BCW to Dalian Motor Co., Ltd and An Xiao Dan, an Australian citizen who is a business associate of DM based in Australia. The group's current order book is approximately SGD120 million, an increase of 23.3% compared to second quarter of 2006, which is mainly due to the strong recovery in the high voltage motor business. The Rights Issue, which closed on Oct. 30, 2006, raised approximately SGD25.4 million of net proceeds. The group's Rights Issue also reduced the group's negative working capital to approximately SGD18.7 million. The company's directors believe that the current working capital shortfall will not prevent the group from meeting its short-term obligations as and when they fall due. The group continues to receive the support of its major shareholder, ATB, its creditor banks and other financial institutions. The loans and advances received from ATB, which were fully off- set against their subscription monies for the Rights Issue were utilized as working capital for the group. The balance of the proceeds would be used to repay bank borrowings and utilize as working capital. Although the overall liquidity position of the group has improved marginally, it is still not satisfactory as the group failed to raise the full proceeds of approximately SGD29.9 million. The company would be exploring other funding options so as to accelerate the recovery of the group. Full-text copies of the company's financial report for the third quarter ended Sept. 30, 2006, is available for free at: http://bankrupt.com/misc/tcrap-lindetevesjacoberg.pdf 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. The TCR-AP reported on Nov. 10, 2006, that the company has total assets of US$225.52 million and US$53.23 million equity deficit as of Nov. 9. MAE ENGINEERING: Appoints New Directors --------------------------------------- Mae Engineering Ltd disclosed on Nov. 10, 2006, the appointments of these new directors to the company's board of directors. * Suganda Setiadi Kurnia (Non-Executive Director) -- Vice Chairman of the Board and Member of Nominating Committee; * Peter John Farrar (Independent and Non-Executive Director) -- Chairman of Audit Committee; and * Jiro Suzuki -- Non-Executive Director and Member of Remuneration Committee. Suganda Setiadi Kurnia has more than 30 years of experience in the banking and the financial services sector. He is an entrepreneur in the financial business in the region and he manages substantial assets in diverse sectors. Moreover, Mr. Suganda has strong financial background having graduated from London in 1972 majoring in banking and finance and had worked with Standard Chartered Bank, Jakarta. Mr. Suganda is the founder of the P.T. Transpacific Group of Companies, which includes stock broking, insurance, consumer financing, banking and property development businesses. Meanwhile, Peter John Farrar is a fellow of the Institute of Chartered Accountants in England and Wales (1971). He is currently an independent and non-executive director of Bintai Kinden Corporation Berhad, Malaysia, and English Churches Housing Group Ltd and a number of its subsidiaries in England. Mr. Farrar was also a Partner of Price Waterhouse from 1980 to 1996. On the other hand, Jiro Suzuki graduated in Economics from the Keio University, Japan and has a Masters in Business Administration from Wharton School of Business, University of Pennsylvania, USA. Mr. Suzuki is currently the Director of MSC Technology Centre, Managing Director of M&M Consolidated Resources Sdn Bhd, the Chief Operating Officer/Vice President/Director of Motoko Resources Sdn Bhd and the Deputy Managing Director of Hiro Food Packages Manufacturing Sdn Bhd in Malaysia. Mr. Suzuki had received the Award of "Who's hot in Asia, Year 2004: Shakers and Movers in Asia under age 50" by Asia Inc. in the year 2005. The appointment Mr. Suganda, Mr. Farrar and Mr. Suzuki will take effect from Nov. 20, 2006. In accordance with the appointments of the new Directors, the company also unveiled the new Nominating Committee, Remuneration Committee and Audit Committee, which will start from Nov. 20, 2006: Nominating Committee * Yap Boh Pin - (Chairman) * Suganda Setiadi Kurnia * Kong Mun Kwong Remuneration Committee * Tan Sri Dato' Kamaruzzaman Bin Shariff (Chairman) * Wong Heang Fine * Jiro Suzuki Audit Committee * Peter John Farrar (Chairman) * Yap Boh Pin * Wong Heang Fine A separate announcement on the details of the three new Directors pursuant to Rule 704(7) of the Listing Manual will be posted on Nov. 20, 2006, the appointment date. About MAE Engineering Headquartered in Singapore, MAE Engineering Limited is engaged in the provision of integrated electrical and mechanical engineering services including designing, planning and procurement. These services are categorized into electrical installations, mechanical installations, electrical power supply installations, instrumentation and building automation as well as maintaining electrical and mechanical systems. The Group also offers consulting and specialist services to oceanariums and aquariums. The Group has disposed off its prawn and fish farming as well as edutainment businesses, after suffering accumulated losses of SGD48 million as of September 30, 2005. The company also suffered a liquidity crunch since September 30, 2005, when its total current liabilities of SGD23,695,000 exceeded its total current assets of SGD5,582,000. As of March 31, 2006, the company's balance sheet showed SGD7,404,000 in total assets and SGD27,257,000 in total liabilities, resulting in a SGD19,853,000 stockholders' equity deficit. PETROLEO BRASILEIRO: Refinery Project with Venezuela Under Way -------------------------------------------------------------- Eduardo Campos, Pernambuco, Brazil's governor, told the Associated Press that Petroleo Brasileiro's oil refinery project with Petroleos de Venezuela in Pernambuco is under way. El Universal relates that the planned refinery will process equal volumes of Brazilian Marlim crude oil and extra-heavy crude oil from Venezuela Orinoco belt. The cost of the plant has not been disclosed. However, sources told El Universal that the construction of the plant could cost up to US$2.8 billion. Oil authorities of Venezuela hinted that Petroleo Brasileiro and Petroleos de Venezuela will hold a 50% stake each in the plant, el Universal notes. Paulo Roberto Costa, Petroleo Brasileiro's supply and refining director, told el Universal that the firm and Petroleos de Venezuela agreed to process 200,000 barrels per day at the plant. Mr. Campos told El Universal that Brazil's President Luiz Inacio Lula da Silva will be visiting Venezuela to discuss the project with Hugo Chavez, his Venezuelan counterpart. Construction is expected to begin in 2007 and could be completed in 2010 or 2011, El Universal says, citing Mr. Campos. About Petroleos de Venezuela Petroleos de Venezuela SA is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. About Petroleo Brasileiro Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA 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 on 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: Substantial Shareholder Reduces Shareholding ---------------------------------------------------------- See Hup Seng Limited disclosed that its substantial shareholder, Oversea-Chinese Banking Corporation Limited has reduced its shareholding in the company on Nov. 8, 2006. Prior to the change, Oversea-Chinese Banking held 14,900,000 direct shares with 5.62% issued share capital. Presently, Oversea-Chinese Banking holds 12,900,000 direct shares with 4.86% issued share capital. The change of interest was due to the exercise of Call Options by two investors for 1,000,000 shares each on Nov. 8, 2006. 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: To Hold General Meeting on Dec. 5 ----------------------------------------------- See Hup Seng Limited will hold a general meeting on Dec. 5, 2006, at 10:00 a.m., at 81 Tuas South Street 5 in Singapore 637651. At the meeting, these resolutions will be passed: -- to give approval to the company's directors to effect the disposal, on the terms and conditions of the separate conditional share sale agreements dated Sept. 6, 2006, entered between the company, Lesoon Equipment Pte Ltd and Liu Yi Cheng for the sale of the 70% interest and 30% interest held by the company and Lesoon Equipment respectively in See Hup Seng Special Coating Equipment & Engineering (Guangzhou) Co Ltd and See Hup Seng Special Coating Equipment & Engineering (Shanghai) Co Ltd to Liu Yi Cheng; -- to authorize and empower the company's directors to complete, approve, modify and execute all documents and to approve any amendment, alteration or modification to any document as they may consider necessary, desirable or expedient in the interests of the company to give effect to the Conditional Share Sale Agreements; and -- to approve the proposed alterations to the company's existing Memorandum and Articles of Association. 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. =============== T H A I L A N D =============== NEW PLUS: Auditor Raises Going Concern Doubt On Units' Deficits --------------------------------------------------------------- Pornchai Kittipanya-ngam raised substantial doubt on New Plus Knitting Pcl's ability to continue operations as a going concern after auditing the company's financial statement for the third quarter ended September 30, 2006. Mr. Pornchai specifically pointed at the financial statements of two subsidiary companies -- New Plus Industry Co Ltd and New Plus (89) Co Ltd -- for the quarter ended September 30, 2006, showing deficits of THB218,692,772 and THB99,235,469, which exceeded their share capital in the amount of THB138,692,772 and THB54,235,469, respectively. In addition, both subsidiaries have total liabilities in excess of total assets in the amount of THB138,692,772 and THB54,235,469 respectively, which have decreased the financial liquidity of the subsidiary companies causing these as factors to make a material uncertainty to continue as a going concern of the subsidiary companies. New Plus posted a consolidated net loss of THB7.879 million on THB63.006 million in revenues gained for its third quarter operations ended September 30, 2006, compared with the THB3.052-million net loss on THB64.877 million in revenues for the same period ended September 2005. The company and its subsidiaries showed strained liquidity with THB151.783 million in current assets available to pay THB197.598 million in current liabilities coming due within the next 12 months. In addition, New Plus' balance sheet at the end of September 2006 showed total consolidated assets of THB345.788 million and total consolidated liabilities of THB383.600 million, resulting in a shareholders' equity deficit of THB37.812 million. * * * New Plus Knitting Public Company Limited's principal activity is the manufacturing and distribution of textiles and clothing for domestic and export sale. Products include stockings, socks, ladies underwear, ladies pajamas, shorts, pants, skirt, shirts and dolls. The Group markets its products in Thailand and other countries in Asia, as well as in Europe, such as Ireland, England and Germany. It operates solely in the domestic market. The Company has been saddled by a series of net losses since 2002, the highest of which is a THB79.25 million net loss in 2004. In the same year, the Company fell into a capital deficit. New Plus currently carries the Stock Exchange of Thailand's NC -- Non Compliance -- sign and SP -- Suspension -- sign on its stocks. NFC FERTILZER: Posts THB152.64-Million Net Loss in 3rd Qtr. 2006 ---------------------------------------------------------------- NFC Fertilzer Pcl posted a THB152.64-million net loss on THB243.312 million in revenues in the third quarter ended September 30, 2006, compared with a net loss of THB66.239 million on THB1.119 billion in revenues posted in the same period the previous year. At September 30, 2006, NFC Fertilizer's balance sheet showed strained liquidity with THB291.805 million in current assets available to pay THB1.085 billion in current liabilities coming due within the next 12 months. NFC Fertilizer's total assets at the end September 2006 was THB3.770 billion while its total liabilities was THB1,276 billion. Shareholders' equity amounted to THB2.493 billion. The company's auditor, Methee Ratanasrimetha, did not express an audit opinion on the company's reviewed financial statements, however, he pointed out to NFC Fertilizer's former auditor's report dated February 27, 2006, expressing an unqualified opinion on its financial report for the fiscal year ended December 30, 2005. The former auditor, in its report, noted the existence of a material uncertainty about the company and its subsidiary's ability to continue as a going concern because of these matters: a) the company is facing high risks both in business and environmental matters as its factory are suffering from lack of maintenance as a result of insufficient working capital for a long time. In addition, there is government asking to decrease the use of chemical fertilizers, which directly impacts the company's revenues, b) the subsidiary company has incurred significant net loss from operations and capital deficiency, c) the outcome of a lawsuit claimed by the Industrial Estate Authority of Thailand, in which the subsidiary company was in breach of the Agreement for Joint Development of Construction of the Pier Area. The subsidiary company counterclaimed that the Industrial Estate Authority of Thailand had cancelled the agreement unlawfully; and d) the subsidiary company's ability to comply with conditions of the business rehabilitation plan. * * * Headquartered in Bangkok, NFC Fertilizer Public Company Limited -- http://www.nfc.co.th-- produces chemical fertilizer containing nitrogen, phosphate, and potash, under its Nation Fertilizer brand name. Additionally, it imports and distributes urea, ammonium sulfate, and potassium chloride fertilizers. The Company also distributes phosphoric acid and gypsum, which are by-products of its fertilizer production. In the third quarter of 2004, the Company had entered into a debt restructuring in accordance with its business rehabilitation plan. The Company then reported a gain on debt restructuring of THB11.29 billion, which was presented as an extraordinary item in the statement of income for the year ended December 31, 2004. Subsequently, on August 24, 2004, the Plan Administrator made a request to Thailand's Central Bankruptcy Court to cancel its business rehabilitation, which the Court approved on September 13, 2004. Recently, the management proposed to change the Company's business plan toward providing logistic services including all warehouses and related services. Presently, the shareholders have not had a resolution on such proposal. The Company is in the process of reviewing its plan. The Company is currently listed under the "Non-Performing Group" sector of the Stock exchange of Thailand. TOTAL ACCESS: Joins True Corp in Complain Against AIS ----------------------------------------------------- Total Access Pcl filed a joint complaint along with True Move -- a wholly owned subsidiary of True Corp -- against rival Advanced Info Service before the National Telecommunications Office of Thailand and the Information and Communication Technology Ministry, The Bangkok Post reports. Heads of Total Access and True Move held a joint press conference on November 9, 2006, asking both the NTC and ICT Ministry to resolve four issues: * revenue-sharing reduction; * access-charge waiver; * price dumping; and * number portability. DTAC and True Move believe that these issues hinder fair competition and are only beneficial to AIS. "It's a new era right now with the NTC in place, so we think it's time to call for the elimination of unfairness in the industry," True Move CEO Supachai Chearavanont said in a press conference. However, in a separate statement, NTC chairman Choochart Promphrasid said that NTC did not have jurisdiction to look into disputes related to agreements between state concession owners and concessionaires, The Nation relates. According to The Post, both DTAC and True Move operate under concessions with CAT Telecom, and are forced to pay a monthly access charge to TOT Corp for every mobile number to use fixed- line networks. AIS, however, which operates under a concession from TOT, does not have to pay an access charge, and pays a revenue-sharing charge of 20% for the life of its concession through 2015, compared with 20% to 30% for DTAC and True Move. The two operators also called for regulators to investigate the practice of price dumping by AIS, and approve number portability nationwide to help spur industry growth, The Post says. Mr. Supachai of True said that AIS enjoyed significantly lower operating costs than its two competitors, giving the company the power to manipulate the market through lower tariff rates. DTAC and True Move are prepared to take legal action if their grievances were not addressed. "It's the right time and opportunity now for us to raise these unfair conditions with the new government to rebuild the telecom market to be under a free and fair competition mechanism," Sigve Brekke, DTAC's chief executive said. About True Move True Move is a wholly owned subsidiary of True Corporation -- http://www.truecorp.co.th/-- which part of its principal activities are the provision of telecommunication services and various value-added-services that includes: Digital Data Network Direct Inward Dialing, Integrated Service Digital Network, Public Telephone, Personal Communication Telephone Service, Multimedia and Internet Service Provider. Other activities include training services, online games, rental services and investment holding. Standard & Poor's Ratings Services, on July 27, 2006, affirmed its BB long-term corporate credit rating on True Corp Public Co Ltd. The outlook is stable. True Corp also currently carries Moody's corporate family rating at Ba3, with stable outlook. About Total Access Total Access Communications, DTAC -- http://www.dtac.co.th/-- is the second-largest cellular operator in Thailand with an approximately 30% market share and strong brand recognition. With Telenor's recent purchase of a 39.9% interest in United Communication Industry Plc and its subsequent tender offers for UCOM and DTAC shares, Telenor lifted its aggregate economic interest in DTAC to 70.2% from 40.3%. DTAC is Telenor's largest acquisition in Asia and it ranks second in terms of EBITDA contribution outside Norway. * * * Standard and Poor's gave the Company a BB+ Long-term local and foreign issuer credit ratings. DTAC's local and foreign issuer credit were both given a Ba1 rating by Moody's Investor Service. Fitch Ratings, on July 18, 2006, has affirmed DTAC's Long-term foreign currency Issuer Default Rating at BB+ and National Long- term rating at A(tha). The company's National Short-term rating was also affirmed at F1(tha). The Outlook on the ratings is Stable. * BOND PRICING: For the Week 13 November to 17 November 2006 ------------------------------------------------------------ Issuer Coupon Maturity Price ------ ------ -------- ----- AUSTRALIA & NEW ZEALAND ----------------------- Ainsworth Game 8.000% 12/31/09 1 Alinta Networks 5.750% 9/22/10 6 APN News & Media Ltd 7.250% 10/31/08 6 A&R Whitcoulls Group 9.500% 12/15/10 9 Arrow Energy NL 10.000% 03/31/08 1 Babcock & Brown Pty Ltd 8.500% 12/31/49 8 Becton Property Group 9.500% 06/30/10 1 BIL Finance Ltd 8.000% 10/15/07 10 Capital Properties NZ Ltd 8.500% 04/15/07 9 Capital Properties NZ Ltd 8.500% 04/15/09 8 Capital Properties NZ Ltd 8.000% 04/15/10 8 Cardno Limited 9.000% 06/30/08 5 CBH Resources 9.500% 12/16/09 1 Chrome Corporation Ltd 10.000% 02/28/08 1 Clean Seas Tuna Ltd 9.000% 09/30/08 1 Djerriwarrh Investments Ltd 6.500% 09/30/09 4 EBet Limited 10.000% 11/29/06 25 Evans & Tate Ltd 8.250% 10/29/07 1 Fletcher Building Ltd 8.600% 03/15/08 8 Fletcher Building Ltd 7.800% 03/15/09 7 Fletcher Building Ltd 8.850% 03/15/10 8 Fletcher Building Ltd 7.550% 03/15/11 8 Futuris Corporation Ltd 7.000% 12/31/07 2 Hy-Fi Securities Ltd 7.000% 08/15/08 8 Hy-Fi Securities Ltd 8.750% 08/15/08 10 Hutchison Telecoms Australia 5.500% 07/12/07 1 IMF Australia Ltd 11.500% 06/30/10 1 Infrastructure & Utilities NZ Ltd 8.500% 09/15/13 8 Infratil Ltd 8.500% 11/15/15 8 Kagara Zinc Ltd 9.750% 05/06/07 8 Kiwi Income Properties Ltd 8.000% 06/30/10 1 Minerals Corporation Ltd 10.500% 09/30/07 1 Nuplex Industries Ltd 9.300% 09/15/07 8 Pacific Print Group Ltd 10.250% 10/15/09 11 Primelife Corporation 9.500% 12/08/06 1 Primelife Corporation 10.000% 01/31/08 1 Salomon SB Australia 4.250% 02/01/09 7 Silver Chef Ltd 10.000% 08/31/08 1 Software of Excellence 7.000% 08/09/07 1 Speirs Group Ltd. 10.000% 06/30/49 70 Tower Finance Ltd 8.750% 10/15/07 8 Tower Finance Ltd 8.650% 10/15/09 8 TrustPower Ltd 8.300% 09/15/07 8 TrustPower Ltd 8.300% 12/15/08 8 TrustPower Ltd 8.500% 09/15/12 8 TrustPower Ltd 8.500% 03/15/14 8 Vision Systems Ltd 9.000% 12/15/08 4 KOREA ----- Korea Development Bank 7.350% 10/27/21 49 Korea Development Bank 7.450% 10/31/21 49 Korea Development Bank 7.400% 11/02/21 50 Korea Development Bank 7.310% 11/08/21 50 MALAYSIA -------- Aliran Ihsan Resources Bhd 5.000% 11/29/11 1 AHB Holdings Bhd 5.500% 03/06/07 1 Asian Pac Bhd 4.000% 12/21/07 1 Berjaya Land Bhd 5.000% 12/30/09 1 Bumiputra-Commerce 2.500% 07/17/08 1 Camerlin Group Bhd 5.500% 07/15/07 2 Crescendo Corporation Bhd 3.000% 08/25/07 1 Dataprep Holdings Bhd 4.000% 08/06/07 1 Eastern & Oriental Hotel 8.000% 07/25/11 1 Eden Enterprises (M) Bhd 2.500% 12/02/07 1 EG Industries Bhd 5.000% 06/16/10 1 Equine Capital Bhd 3.000% 08/26/08 1 Greatpac Holdings Bhd 2.000% 12/11/08 1 Gula Perak Bhd 6.000% 04/23/08 1 Hong Leong Industries Bhd 4.000% 06/28/07 1 Huat Lai Resources Bhd 5.000% 03/28/10 1 I-Berhad 5.000% 04/30/07 1 Insas Bhd 8.000% 04/19/09 1 Kamdar Group Bhd 3.000% 11/09/09 1 Kosmo Technology Industrial Bhd 2.000% 06/23/08 1 Kretam Holdings Bhd 1.000% 08/10/10 1 Kumpulan Jetson 5.000% 11/27/12 1 LBS Bina Group Bhd 4.000% 12/29/06 1 LBS Bina Group Bhd 4.000% 12/31/07 1 LBS Bina Group Bhd 4.000% 12/31/08 1 LBS Bina Group Bhd 4.000% 12/31/09 1 Media Prima Bhd 2.000% 07/18/08 1 Mithril Bhd 8.000% 04/05/09 1 Mithril Bhd 3.000% 04/05/12 1 Mutiara Goodyear Development Bhd 2.500% 01/15/07 1 Nam Fatt Corporation Bhd 2.000% 06/24/11 1 Pantai Holdings Bhd 5.000% 03/28/07 2 Pantai Holdings Bhd 5.000% 07/31/07 2 Pelikan International Corp Bhd 3.000% 04/08/10 1 Pelikan International Corp Bhd 3.000% 04/08/10 1 Poh Kong Holdings Bhd 3.000% 01/20/07 1 Prinsiptek Corporation Bhd 3.000% 11/20/06 1 Puncak Niaga Holdings Bhd 2.500% 11/18/16 1 Ramunia Holdings 1.000% 12/20/07 1 Rashid Hussain Bhd 3.000% 12/23/12 1 Rashid Hussain Bhd 0.500% 12/24/12 1 Rhythm Consolidated Bhd 5.000% 12/17/08 1 Silver Bird Group Bhd 1.000% 02/15/09 1 Southern Steel 5.500% 07/31/08 1 Tanah Emas Corporation Bhd 2.000% 12/09/06 1 Tenaga Nasional Bhd 3.050% 05/10/09 1 Tradewinds Plantations Bhd 3.000% 02/28/16 1 WCT Land Bhd 3.000% 08/02/09 1 Wah Seong Corp 3.000% 05/21/12 3 YTL Cement Bhd 4.000% 11/10/15 1 SINGAPORE --------- Sengkang Mall 4.880% 11/20/12 1 Sengkang Mall 8.000% 11/20/12 1 Structural System Singapore 11.000% 06/30/07 1 * Fitch Ratings To Host Asia Conference 2006 in Kuala Lumpur ------------------------------------------------------------ Fitch Ratings will host its annual Asia Conference 2006 in Kuala Lumpur at 8:45 a.m. on November 30, 2006. During the half-day conference, senior members of Fitch's sovereign, financial institutions, structured finance and corporate teams will be addressing the audience on the Asian economies, Asian banking sectors, securitisation deals in Asia during 2006, and the outlook for key Malaysian corporate credits. Speakers of note include James McCormack, Senior Director, Head of Sovereign Ratings, Asia, who will discuss the economic outlook for Malaysia as well as the broader region amid slowing global growth. Next, David Marshall, Managing Director, Financial Institutions, Asia, will review the key challenges faced by Malaysian banks. This will be followed by Simon Hu, Senior Director, Insurance Business Development, Asia, who will give Fitch's perspective on the "Malaysian Insurance and Takaful Market: Concept and Practice of Credit Rating". After the break, Siew Huey Loong, Director in the Asian Corporate Finance team, will give an overview of "High-Yield and LBOs in APAC - The Trends", taking a look at Ranhill Berhad as a case study. This will be followed by a guest speaker, Dr. Mohd Daud Bakar, President/CEO, Amanie Business Solutions Sdn Bhd and Member, Syariah Advisory Panel of MARC, who will discuss "Islamic Finance and the Raison D'etre of Islamic Ratings". And finally, Dipesh Patel, Associate Director, Derivative Fitch, Asia, will look at "Rating Domestic CLOs and the Growth of Structured Credit in Asia". Admission is complimentary but pre-registration is required. Please RSVP by Monday, November 20, 2006. The venue details and contacts for the conference are as follows: Kuala Lumpur Thursday, 30 November 2006 8:45AM - 12:40PM Mandarin Oriental, Kuala Lumpur Kuala Lumpur City Centre P.O. Box 10905 50088 Kuala Lumpur, Malaysia Conference Room: Opal & Pearl Room Market participants, please register your interest with Zuraidah Ramli, Singapore, +65 6336 6801/ zuraidah.ramli@fitchratings.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, Rousel Elaine Tumanda, 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 ***