/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/080612.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, June 12, 2008, Vol. 11, No. 116 Headlines A U S T R A L I A A & E FIREWORKS: Declares Dividend for Creditors ACN 009 757 466: Liquidator Gives Wind-Up Report ACN 009 998 541: Liquidator Gives Wind-Up Report ACN 009 569 399: Liquidator Gives Wind-Up Report ACN 000 785 802: Liquidator Gives Wind-Up Report ACN 000 909 277: Liquidator Gives Wind-Up Report AGRA AGRICULTURAL: Liquidator Presents Wind-Up Report ALLENS MANAGEMENT: Liquidator Presents Wind-Up Report CENTRO PROPERTIES: Unit Completes AU$331 Mil. Debt Refinancing DOWCON PTY: Liquidator Presents Wind-Up Report HARTZ GROUP: Loses Injunction Bid, Sale of Assets to Go On JE FLETCHER: Liquidator Presents Wind-Up Report KRISPY KREME: Reports $4 Mil. Net Income in Quarter Ended May 4 MEWEDA PTY:Commences Liquidation Proceedings N.B.S. INVESTMENTS: Appoints Sneddon as Liquidator NOEL SMITH (YASS): Placed Under Voluntary Liquidation NORTH WESTERN: Liquidator Presents Wind-Up Report TRICOM EQUITIES: Saxo Bank Cautious About Loan Book Issue C H I N A CITIC GROUP: Seeks to Privatize HK Unit for US$1.57 Billion DONGFENG ELECTRON: To Infuse US$4.3MM in Shanghai Electric Firm INNER MONGOLIA: To Merge Unit With Six Companies INNER MONGOLIA EERDUOSI: Paying Dividends to Shareholders PETROCHINA CO: Proposes RMB60 Billion Bond Issue XINHUA: Noteholders OK Sr. Notes Purchase From US$50M Stock Sale H O N G K O N G BREAN DISTRIBUTOR: Creditors' Proofs of Debt Due June 27 CENTRAL FINANCE: Members & Creditors to Meet on July 8 COSMO FIRE: Commences Liquidation Proceedings ENCHANTING INVESTMENT: Creditors Meeting Fixed for July 7 HELPING METAL: Liquidators Quit Post INTEGRITAS MANAGMENT: Liquidator Quits Post MICKY WEATHERWEAR: Creditors' Proofs of Debt Due July 2 MASTERWELL WORLDWIDE: Creditors' Proofs of Debt Due July 11 REDWOOD INT'L: Commences Liquidation Proceedings YETO ACCOUNTING: Creditors Meeting Fixed for July 4 I N D I A SPICEJET: To Cut Flights, FY 2008 Net Loss Seen * INDIA: Soaring Oil Prices Cue RBI's Special Market Operations * INDIA: RBI Increases Repo Rate by 25bp to 8.00% I N D O N E S I A BANK RAKYAT: To Offer IDR3 Tril. Loans to Support PT Telkom MEDCO ENERGI: Signs Pact Selling Apexindo to Mitra Rajasa PERUSAHAAN LISTRIK: Monthly Income Up by IDR260 Billion * INDONESIA: Moody's to Assign Ba3 Rating on Upcoming Bond J A P A N AMPEX CORP: Files Third Amended Disclosure Statement & Plan FORD MOTOR: Trancinda Buys 20MM Shares of Over 1 Bil. Tendered NIS GROUP: JCR Withdraws BB/Negative Senior Debts Rating NISSIN SERVICER: JCR Withdraws BB/Negative Senior Debts Rating KOBE STEEL: Begins Construction of JPY4-Billion Testing Facility KOBE: Unit to Raise Production Capacity of Three Joint Ventures SANYO ELECTRIC: Seeks to Expand Market Share in North America K O R E A * KOREA: April 2008 Interests on Savings Deposits Rose 0.18%p M A L A Y S I A BSA INTERNATIONAL: Unable to Pay Interest on Loan Obligations BSA INTERNATIONAL: Incurs MYR12.88MM Net Loss in 1st Qtr. 2008 MEMS TECHNOLOGY: Bursa Rejects Application for Waiver WONDERFUL WIRE: Total Default Reaches MYR64.86 Mil. as of May 31 N E W Z E A L A N D CHRISCOTT LTD: Commences Liquidation Proceedings HATUMA FOODS: Liquidators Appointed OTARA SECONDHAND: Court Sets July 30 Liquidation Hearing PARKSTONE NURSING: Commences Liquidation Proceedings PERCY DAVIS: Liquidators Fix June 19 as Claims Bar Date PROPERTY FUNDING: Claims Filing Deadline is June 19 SEPI MANAGEMENT: Court Sets June 16 Liquidation Hearing * NEW ZEALAND: Export Price Index Up 4.5% in March 2008 Qtr. P H I L I P P I N E S PHILIPPINE NATIONAL: To Offer PHP3BB Lower Tier 2 Notes in Feb. S I N G A P O R E AXS-ONE INC: March 31 Balance Sheet Upside-Down by US$10,622,000 - - - - - ================= A U S T R A L I A ================= A & E FIREWORKS: Declares Dividend for Creditors ------------------------------------------------ A & E Fireworks Pty Limited, which is in liquidation, declared its dividend for its creditors. Only creditors who were able to file their proofs of debt by May 21, 2008, were included in the company's dividend distribution. The company's liquidator is: E. M. Senatore SBR Insolvency + Reconstruction Level 7, 28 University Avenue Canberra ACT 2601 Australia ACN 009 757 466: Liquidator Gives Wind-Up Report ------------------------------------------------ At the final meeting of the members of ACN 009 757 466 Pty Ltd held May 29, 2008, Allan Blundell, the appointed liquidator, presented an account showing the manner in which the winding up has been conducted and the property of the company disposed. The liquidator can be reached at: Allan Blundell Piers Property Group PO Box 3007 Tweed Heads South DC NSW 2486 Australia ACN 009 998 541: Liquidator Gives Wind-Up Report ------------------------------------------------ At the final meeting of the members of ACN 000 998 541 Pty Ltd held May 29, 2008, Allan Blundell, the appointed liquidator, presented an account showing the manner in which the winding up has been conducted and the property of the company disposed. The liquidator can be reached at: Allan Blundell Piers Property Group PO Box 3007 Tweed Heads South DC NSW 2486 Australia ACN 009 569 399: Liquidator Gives Wind-Up Report ------------------------------------------------ At the final meeting of the members of ACN 009 569 399 Pty Ltd held May 29, 2008, Allan Blundell, the appointed liquidator, presented an account showing the manner in which the winding up has been conducted and the property of the company disposed. The liquidator can be reached at: Allan Blundell Piers Property Group PO Box 3007 Tweed Heads South DC NSW 2486 Australia ACN 000 785 802: Liquidator Gives Wind-Up Report ------------------------------------------------ At the final meeting of the members of ACN 000 785 802 Pty Ltd held May 29, 2008, Allan Blundell, the appointed liquidator, presented an account showing the manner in which the winding up has been conducted and the property of the company disposed. The liquidator can be reached at: Allan Blundell Piers Property Group PO Box 3007 Tweed Heads South DC NSW 2486 Australia ACN 000 909 277: Liquidator Gives Wind-Up Report ------------------------------------------------ At the final meeting of the members of ACN 000 909 277 Pty Ltd held May 29, 2008, Allan Blundell, the appointed liquidator, presented an account showing the manner in which the winding up has been conducted and the property of the company disposed. The liquidator can be reached at: Allan Blundell Piers Property Group PO Box 3007 Tweed Heads South DC NSW 2486 Australia AGRA AGRICULTURAL: Liquidator Presents Wind-Up Report ----------------------------------------------------- Agra Agricultural Holdings Pty. Ltd.'s estate liquidator, met with the company's members on May 29, 2008, and provided them with property disposal and winding-up reports. The liquidator can be reached at: H. J. Kazar Sims Partners 6 Lonsdale Street Braddon ACT 2612 Australia ALLENS MANAGEMENT: Liquidator Presents Wind-Up Report ----------------------------------------------------- At the final meeting of the members and creditors of Allens Management Australia Pty Ltd held May 29, 2008, Frank Lo Pilato, the appointed liquidator, presented an account showing the manner in which the winding up has been conducted and the property of the company disposed. 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 CENTRO PROPERTIES: Unit Completes AU$331 Mil. Debt Refinancing -------------------------------------------------------------- Centro Properties' Centro MCS has completed an agreement to refinance a AU$331 million debt facility for eight syndicates. The facility has been refinanced for two years and will mature in April 2010. Additional funding for forecast operational capital expenditure during the loan term has also been approved. The eight syndicates involved are Centro MCS 2, 3, 4, 5, 6, 8, 11 & 12. About Centro Properties Centro Properties Group -- http://www.centro.com.au/-- is a retail investment organisation specialising in the ownership, management and development of retail shopping centres. Centro manages both listed and unlisted retail property and has an extensive portfolio of shopping centres across Australia, New Zealand and the United States. Centro has funds under management of $24.9 billion. Centro owes its creditors as much as AU$6.6 billion and its deadline to repay these debts has been extended four times since December 2007, when the company's market value plunged. The recent deadline extension given to the Group is December 15, 2008. * * * The Troubled Company Reporter-Asia Pacific reported on Jan. 4, 2008, that Standard & Poor's Ratings Services lowered its issuer credit, senior-unsecured debt and preferred stock ratings to 'CCC+' with negative implications reflecting the potential of the group's assets to be sold in softening market conditions, particularly in the U.S. DOWCON PTY: Liquidator Presents Wind-Up Report ---------------------------------------------- At the final meeting of the members and creditors of Dowcon Pty Ltd held May 29, 2008, H. J. Kazar, the appointed liquidator, presented an account showing the manner in which the winding up has been conducted and the property of the company disposed. The liquidator can be reached at: H. J. Kazar Sims Partners 6 Lonsdale Street Braddon ACT 2612 Australia HARTZ GROUP: Loses Injunction Bid, Sale of Assets to Go On ---------------------------------------------------------- Hartz Group's Mineral Water business in Tasmania is up for sale this Friday to an interstate buyer who cannot be named because of a confidentiality agreement, Mark Worley of Mercury News reports. Hartz managing controller Rick Leighton told Mercury News that contracts had been drawn up and were being finalised with the buyer who wants to keep the business in Tasmania. In April, Mercury News relates, investment firm Business Expansion Capital Pty Ltd appointed controllers to manage Hartz, less than seven months after it provided a AU$600,000 loan to the company. BE managing controllers, who claim Hartz broke the terms of the loan agreement, are selling the company to recoup their loan and a risk fee of at least AU$600,000, the report says. Meanwhile, ABC News says the receiver for Hartz company Mountain Maid, Hall Chadwick, recently called for expressions of interest in the Hartz trademarks, which BE Capital is also pursuing. The receiver is believed to have finalised the sale, says the report. According to Mercury News, Hartz owner Stephen Powell, in a move to save his business, sought an injunction order from the Supreme Court to stop the sale of his business going ahead, but lost the ruling to BE Capital at a hearing held last week. A separate trial, questioning the merits of BE's controllership of the company, has been partly heard but it is not known when it will resume, Mercury News says. In yet another move to revive its business, Hartz recently appointed Allan Branch as its new chief executive officer. Mr. Branch told Mercury News that his tenure as CEO would be determined by the outcome of the sale process and the court trial. About Hartz Group Based in Prince of Wales Bay, Australia, Hartz Group -- http://www.hartz.com.au/-- was initially formed as a manufacturer of chilled juices. It has developed its proprietary brands to include long-life fruit juices and mineral water. JE FLETCHER: Liquidator Presents Wind-Up Report ----------------------------------------------- B. R. Cook, JE Fletcher Pty. Ltd.'s estate liquidators, met with the company's members on June 6, 2008, and provided them with property disposal and winding-up reports. KRISPY KREME: Reports $4 Mil. Net Income in Quarter Ended May 4 --------------------------------------------------------------- Krispy Kreme Doughnuts Inc., in a press statement, reported net income of $4.0 million, for the first quarter ended May 4, 2008, compared to a net loss of $7.4 million in the first quarter last year. According to the Birmingham Business Journal, this is Krispy Kreme's first quarterly gain in three years. Dow Jones says that shares of Krispy Kreme shot up 7.6% in early trading Monday as the company disclosed its fiscal first-quarter earnings of 6 cents a share, up from a loss of 12 cents a share at the same time last year. The company stated in a statement that it was able to report a profit, in part, because the loss in 2008's first quarter was largely due to a $9.6 million charge related to the refinancing of long-term debt. In the 2009 quarter, the company did not report any refinancing charge. "We are pleased to report improved bottom line results in the first quarter of fiscal 2009 compared to the first quarter of last year," Jim Morgan, chairman, president and chief executive officer, said. "Much work remains to be done to achieve the consistent profitability and sustainable growth we envision. "While we continue to face many challenges, I believe more than ever there also are many opportunities ahead of us," Mr. Morgan added. "Although our near term results may be uneven, our employees are working hard to implement the further improvements necessary for us to be successful for the long term." Among the other factors that affected the company's results for the first quarter of fiscal 2009 were a $930,000 non-cash gain on the disposal of equity interests in two franchisees and the related release of the company's guarantees of certain debt and leases; well as a net credit in impairment and lease termination costs of $645,000 resulting from changes in estimated sublease rentals on a closed store and the realization of proceeds on the assignment of another closed store lease. As of May 4, 2008, the company's consolidated balance sheet reflects cash of approximately $29.2 million and debt of approximately $75.7 million. During the first quarter of fiscal 2009, 28 new Krispy Kreme stores, comprised of four factory stores and 24 satellites, were opened systemwide, and seven stores, comprised of six factory stores and one satellite, were closed systemwide. This brings the total number of stores systemwide at quarter end to 470, consisting of 289 factory stores and 181 satellites. The net increase of 21 stores in the quarter reflects a net increase of 27 international stores and a net decrease of six domestic stores. Approximately 75% of total stores are operated by franchisees, and half are located outside the United States. About Krispy Kreme Headquartered in Winston-Salem, North Carolina, Krispy Kreme Doughnuts Inc. (NYSE: KKD) -- http://www.KrispyKreme.com/-- is a retailer and wholesaler of doughnuts. The company's principal business, which began in 1937, is owning and franchising Krispy Kreme doughnut stores where over 20 varieties of doughnuts are made, sold and distributed and where a broad array of coffees and other beverages are offered. As of Feb. 3, 2008, there were 449 Krispy Kreme stores operated systemwide in 37 U.S. states and in the District of Columbia, Australia, Canada, Hong Kong, Indonesia, Japan, Kuwait, Mexico, the Philippines, Qatar, Saudi Arabia, South Korea, the United Arab Emirates and the United Kingdom, of which 105 were owned by the company and 344 were owned by franchisees. Of the 449 total stores, there were 295 factory stores and 154 satellites. Of the Krispy Kreme factory stores and satellites in operation at Feb. 3, 2008, 210 and 35, respectively, were located in the United States. * * * Standard & Poor's placed Krispy Kreme Doughnuts Inc.'s long term foreign and local issuer credit ratings at 'B-' in September 2007. The ratings still hold to date with a negative outlook. MEWEDA PTY:Commences Liquidation Proceedings -------------------------------------------- Meweda Pty Limited's members agreed on April 14, 2008, to voluntarily liquidate the company's business. Graham P. Brown was appointed to facilitate the sale of its assets. The liquidator can be reached at: Graham P. Brown 216 Victoria Street Taree NSW 2430 Australia N.B.S. INVESTMENTS: Appoints Sneddon as Liquidator -------------------------------------------------- N.B.S. Investments Pty Ltd.'s members agreed on April 15, 2008, to voluntarily liquidate the company's business. Graham P. Brown was appointed to facilitate the sale of its assets. The liquidator can be reached at: Kenneth John Sneddon Chartered Accountant Office 1, 11 Swan Street Hamilton NSW 2303 Australia NOEL SMITH (YASS): Placed Under Voluntary Liquidation ----------------------------------------------------- Noel Smith (Yass) Pty Ltd.'s members agreed on April 16, 2008, to voluntarily liquidate the company's business. Graham P. Brown was appointed to facilitate the sale of its assets. The liquidator can be reached at: Cameron Stuart Smith Ann Smith 61 Reservoir Road Crookwell NSW 2583 Australia NORTH WESTERN: Liquidator Presents Wind-Up Report ------------------------------------------------- Keiran William Hutchison and John Raymond Gibbons, North Western Resources Pty. Ltd.'s estate liquidators, met with the company's members on May 29, 2008, and provided them with property disposal and winding-up reports. The liquidators can be reached at: Keiran William Hutchison John Raymond Gibbons Ernst & Young Level 37, 680 George Street Sydney NSW 2000 Australia Telephone: (02) 9248 5555 TRICOM EQUITIES: Saxo Bank Cautious About Loan Book Issue --------------------------------------------------------- Saxo Bank has confirmed its interest in Tricom Group following the completion of the first phase of the group's due diligence, the Australian reports citing Saxo Bank's head of Asia Kevin Ashby. According to the report, Saxo unveiled plans in May 2008 to spend AU$20 million for a 35 per cent stake in Tricom but said it had "ring-fenced" itself against past problems and potential litigation associated with the Sydney stockbroker. Particularly, Saxo expects resolution of the issues relating to some existing investors and the winding down of the securities loan book, the Australian says. As reported in the Troubled Company Reporter-Asia Pacific on April 30, 2008, the Australian Securities Exchange conducted an investigation in February 2008 about securities and margin lending at Tricom. Commenting on the probe, Tricom Managing Director Lance Rosenberg said in February that the company is "working in 100% partnership with the ASX to ensure restoration of confidence in Tricom." As part of ASX�s condition with regards to the probe, Tricom appointed Pricewaterhouse Coopers to conduct an independent review of Tricom�s operating and systems controls. In addition, Tricom reduced its securities lending book from approximately AU$2.4 billion in June 2007 to AU$340 million at close of business on March 17 , 2008. The Australian says Saxo's plans for Tricom do not include a securities lending business. The brokerage firm is staggering under similar debt burdens which forced Opes Prime Stockbroking Ltd. and Lift Capital Ltd. into receivership, said Laura Santini of The Wall Street Journal. According to WSJ, there is a loophole in Australia's regulations that allows brokers to put up customers' shares as loan collateral, without notifying the customers. Tricom termed the practice as securities lending book in which Tricom borrows from counterparties on behalf of clients to fund loans. The borrowing is secured by shares, and remains covered by a significant margin. As the market has corrected, Tricom said lenders have become more conservative about loan to value ratios, and values have simultaneously dropped. This prompted Tricom to commence an orderly sell down in June 2007. Merger Deal In a media release dated February 19, 2008, Tricom disclosed that Bell Financial Group agreed to acquire 100% of Tricom Group, subject to a number of conditions, including satisfactory completion of due diligence prior to March 7, 2008. However, in March 2008, Tricom confirmed that discussions regarding a potential acquisition by Bell Financial Group have ceased after the March 7, 2008 exclusivity period ended. About Saxo Bank Saxo Bank is a global investment bank specialising in online trading in the international capital markets. Saxo Bank does business with partners and clients in over 170 countries. Saxo Bank currently employs more than 1,300 employees from 72 different countries. Saxo Bank is headquartered in Copenhagen with offices in London, Geneva, Zurich, Singapore and Marbella. It also runs a representative office in Beijing and an IT development centre in St. Petersburg. About Tricom Equities Limited Tricom Equities Limited -- http://www.tricom.com.au/-- is an Australian owned global Investment, Advisory and Trading House. Formed in Sydney, Australia in 1994 as a specialist futures broking firm, Tricom now employs over 230 people in 14 offices. Internationally, the firm is located in New Zealand, China, Hong Kong and Switzerland. ========= C H I N A ========= CITIC GROUP: Seeks to Privatize HK Unit for US$1.57 Billion ----------------------------------------------------------- Citic Group proposed to privatize its Hong Kong-based unit Citic International Financial Holdings Limited, various reports say. Chia-Peck Wong of Bloomberg News reports that Citic Group offered Citic International's minority stockholders one China Citic Bank Corp. share plus HK$1.46 for every share they own, potentially valuing the privatization at HK$12.3 billion (US$1.57 billion). As reported by the Troubled Company Reporter - Asia Pacific on May 9, 2008, Banco Bilbao Vizcaya Argentaria SA. will double its stake in Citic Group before July. Banco Bilbao, Bloomberg relates, will spend EUR800 million (US$1.24 billion) to acquire about 30% in Citic International and 10.1% in Citic Bank, once the privatization is completed. According to Bloomberg, about HK$5.1 billion of the funds raised will be used to pay loans of Citic Ka Wah Bank, Citic International's Hong Kong banking unit. Another HK$3 billion will be used to fund Citic Ka Wah Bank's expansion, the report says. Donny Kwok of Reuters reports that based on the closing price of HK$5.44 per China Citic Bank share on June 2, the offer represented a 21% premium over the closing price of HK$5.70 per Citic International. The offer would involve the issue of some 1.75 billion China Citic Bank H shares and HK$2.6 billion cash, Reuters relates. Citic Group owns 62.3% of Citic Bank and 55.2% of Citic International, while Citic International in turn owns 15% of Citic Bank. Bloomberg says the shares owned by Citic Group and BBVA are excluded from the privatization. Lehman Brothers Holdings Inc. is advising Citic Group on the privatization. About CITIC Group State-owned conglomerate CITIC Group -- http://www.citic.com/wps/portal/-- oversees the government's international investments, as well as some domestic ones. Its approximately 45 subsidiaries on four different continents include financial institutions -- more than 80% of its assets -- industrial concerns (satellite telecommunications, energy, manufacturing), and service companies (construction, advertising). Holdings include stakes in CITIC Securities and CITIC International Financial Holdings. * * * The Troubled Company Reporter-Asia Pacific reported that on Feb. 13, 2007, Standard & Poor's Ratings Services removed the BB+ long-term and B short-term foreign currency counterparty credit rating on CITIC Group from CreditWatch. The outlook on the ratings is developing. At the same time, Standard & Poor's also removed the BB+ foreign currency issue rating on the group's senior unsecured debt from CreditWatch. DONGFENG ELECTRON: To Infuse US$4.3MM in Shanghai Electric Firm --------------------------------------------------------------- Dongfeng Electronic Technology Co. Limited will infuse US$4,299,500 in a Shanghai-based electric company, Reuters reports. The report relates that Johnson Controls Automotive Systems Group, which primarily provides vehicle interiors products to automakers, is also investing US$7,700,500 in the same company. Reuters did not disclose the name of the electrical company. According to the report, after the capital injection, the registered capital of the electric company will increase from US$12 million to US$17 million, in which Dongfeng Electronic and Johnson Controls will contribute US$6.8 million and US$10.2 million, respectively. Dongfeng Electronic's shareholding in the electric company will decrease from 50.01% to 40%, the report says. About Dongfeng Electronic Based in Shanghai, Dongfeng Electronic Technology Co., Ltd. -- http://www.detc.com.cn/-- is principally engaged in the manufacture and sale of automobiles and automobile parts and components. The company offers automobiles, instrument sets, sensors, flexible shafts, gasoline supply systems, braking products, die casting products, automobile ornaments, automobile global position system (GPS) navigation parts, automobile remote-controllers and other accessories for motorcycles, passenger cars and trucks. * * * As of June 11, 2008, the company still holds Xinhua Far East China Ratings' BB- LC Long-Term Issuer Credit Rating. INNER MONGOLIA: To Merge Unit With Six Companies ------------------------------------------------ Inner Mongolia Eerduosi Cashmere Products Co. Ltd. plans to merge its 92% owned subsidiary with six companies, Reuters reports. Reuters did not disclose the names of the six companies involved in the transaction. The report relates that two of the six companies is 100% jointly owned by Inner Mongolia Eerduos and its unit's 8% shareholder. Reuters says that under Inner Mongolia's merger plan, the company will: -- purchase a 49% stake in an Inner Mongolia-based cashmere product company from an American company for US$118,700; -- pay CNY11,499,000 to purchase the 49% stake in another Inner Mongolia-based clothing company from a Hong Kong-based trade company; -- acquire a 19% stake in an Inner Mongolia-based textile company from a Japanese company for US$380,000; and -- Pay CNY1,815,700 to purchase the 11% stake in the same Japanese company from another Japanese textile company. After the merger and transaction, the new unit will continue to exist and other six companies will be liquidated, the report says. About Inner Mongolia Eerduosi Cashmere Based in Dongsheng, Inner Mongolia Meng Autonomous Region, the People's Republic of China, Inner Mongolia Eerduosi Cashmere Products Co., Ltd. is principally engaged in the manufacture and sale of cashmere products and de-haired cashmere, cashmere yarn, cashmere sweaters, cashmere coats, silk/cashmere blended products, cashmere fashions, Nano materials, electrically conductive fibers, healthcare fibers and other products. * * * As of June 11, 2008, the company stillholds Xinhua Far East China Ratings's BB+ issuer credit rating. INNER MONGOLIA EERDUOSI: Paying Dividends to Shareholders --------------------------------------------------------- Inner Mongolia Eerduosi Cashmere Products Co. Ltd. paid on June 10, 2008, a dividend of RMB1.5 (before tax) to holders of A shares of record on June 3, 2008, Reuters reports. The report relates that the company will also be paying a dividend of US$0.021496 on June 17, to holders of B shares of record on June 6, 2008, for every 10 shares they hold. Based in Dongsheng, Inner Mongolia Meng Autonomous Region, the People's Republic of China, Inner Mongolia Eerduosi Cashmere Products Co., Ltd. is principally engaged in the manufacture and sale of cashmere products and de-haired cashmere, cashmere yarn, cashmere sweaters, cashmere coats, silk/cashmere blended products, cashmere fashions, Nano materials, electrically conductive fibers, healthcare fibers and other products. * * * As of June 11, 2008, the company stillholds Xinhua Far East China Ratings's BB+ issuer credit rating. PETROCHINA CO: Proposes RMB60 Billion Bond Issue ------------------------------------------------ PetroChina Company Limited's Board resolved to seek shareholders' approval for the proposed issue of the Domestic Corporate Bonds in the PRC with an aggregate principal amount of not more than RMB60 billion in one or more tranches at the EGM to be held on 31 July 2008. The Wall Street Journal said today that PetroChina wants to cut its financing costs as it faces huge refining losses due to soaring oil prices through the bond issue. Proposed Issue of Bonds in PRC * Background To satisfy the operational needs of the company, further improve its debt structure, reduce the financing costs and supplement the working capital of the company, on June 10,2008, the Board resolved to submit to Shareholders for consideration and approval the proposed issue of the Domestic Corporate Bonds with an aggregate principal amount of not more than CNY60 billion in one or more tranches at the extraordinary general meeting to be held on July 31,2008. According to the Company Law of the PRC and the Articles of Association, the Bond Issue is subject to the approval of the Shareholders (including holders of H Shares and A Shares). After Shareholders' approval is obtained, the Bond Issue will still require final approval from the CSRC. The timing of the Bond Issue will depend on the timing of the approval and the conditions of the bond market of the PRC. * Proposed Issue of Domestic Corporate Bonds The proposed arrangements for the Bond Issue are: (1) Issuer: PetroChina Company Limited (2) Place of Issue: People's Republic of China (3) Size of the Bond Issue: The aggregate principal amount of the Domestic Corporate Bonds shall not be more than CNY60 billion. (4) Arrangement for the Bond Issue to the shareholders of A Shares: Subject to the granting of authorization to the Board by the Shareholders, the specific terms and conditions of the Bond Issue (including whether such issuance will be made by way of placing and the proportion of placing) will be determined by the Board after taking into account of the market conditions prior to the issuance and the specific terms and conditions of the Bond Issue. (5) Duration of the Domestic Corporate Bonds: The duration of the Domestic Corporate Bonds shall be not more than 15 years. The Domestic Corporate Bonds may be issued under a single category or mixed categories with different maturities. Subject to the granting of authorization to the Board by the Shareholders, the maturity and the size of each category of the Domestic Corporate Bonds shall be determined by the Board in accordance with the relevant requirements and the market conditions. (6) Use of proceeds: The proceeds of the Bond Issue shall be used to satisfy the demand for mid-term and long- term capital requirements of the Company, further improve its debt structure, supplement the working capital of the Company, and/or investment in projects such as the Second West-East Gas Pipeline project. Subject to the granting of authorization to the Board by the Shareholders, the specific use of proceeds shall be determined by the Board in accordance with the capital needs of the Company. (7) Listing of the Domestic Corporate Bonds: Subject to the satisfaction of the listing requirements, application for listing of the Domestic Corporate Bonds on the domestic stock exchange(s) as approved by the relevant PRC regulatory authorities shall be made. (8) Term of validity of the resolution: The authority granted to the Board by way of special resolution passed at the shareholders meeting with regard to the proposed issue of the Domestic Corporate Bonds will expire two years after the date of the passing of such resolution. * Granting of Board Authorization to Deal w/ Bond Issue Matters To ensure the smooth issue of the proposed Domestic Corporate Bonds and according to the relevant provision of the "Tentative Methods on Issue of Corporate Bonds" promulgated by the CSRC, it is proposed that the Board be authorized by the Shareholders generally and unconditionally and when items (a) to (f) below have been approved and authorized by the Shareholders, the Board shall further authorize the Chief Financial Officer of the Company, Mr. Zhou Mingchun, taking in account the specific needs of the Company and other market conditions, to do: (a) to confirm the category, specific terms, conditions and other matters of the Bond Issue, including but not limited to all matters related to the Bond Issue, such as the issue size, actual sum, maturity, issue prices, coupon rates or method of determination, timing of issuance, whether to issue in tranches and the number of tranches, whether any terms for repurchase and redemption will be in place, rating arrangements, security matters, duration of repayment of the principal and the interests, use of proceeds as approved by the shareholders' meeting, specific placing arrangements etc; (b) to perform all necessary and ancillary actions with respect to the Bond Issue, including but not limited to the appointment of intermediaries, to determine underwriting arrangements and submit applications to the relevant regulatory authorities for approval of the Bond Issue, to engage entrusted manager for the Bond Issue, to execute the agreement for entrusted management and formulate rules for the meetings of bondholders, to deal with other issues related with the issuance and the turnover; (c) to take all necessary actions in relation to the Bond Issue, including but not limited to execute all necessary contracts, agreements and documents and make disclosure of relevant information pursuant to applicable regulatory requirements, and to approve, confirm and ratify such actions and steps undertaken by the Board or any authorized director in relation to the Bond Issue; (d) to make corresponding changes to the specific plan of the Bond Issue based on opinions of the regulatory authorities when there is any change to the policies on the issuance of bonds or market conditions, save for issues which are subject to further approval at shareholders'meeting as required by the relevant laws, regulations and Articles of Association; (e) to deal with any matters relating to the Bond Issue and the listing of the Domestic Corporate Bonds; and (f) if the Company expects it may fail to pay the principal and coupon interests of the Domestic Corporate Bonds on schedule or fails to pay the principal and coupon interests on a due date during the subsistence of the Domestic Corporate Bonds, to authorize the Board to determine not to distribute dividends to the Shareholders in accordance with relevant protection measures for repayment of debts as required under the relevant laws and regulations. Extraordinary General Meeting An Extraordinary General Meeting will be held at Beijing Oriental Bay International Hotel, 26 Anwai Xibinhe Road, Dongcheng District, Beijing, the PRC on Thursday, July 31, 2008, at 9:00 a.m. to approve the proposed issue of the Domestic Corporate Bonds by special resolution. A circular containing details of the proposed issue of the Domestic Corporate Bonds and notice to shareholders convening the Extraordinary General Meeting will be dispatched to Shareholders as soon as practicable. About PetroChina Company PetroChina Company Limited (PetroChina)-- http://www.petrochina.com.cn -- is a producer of crude oil and natural gas in China. The company is engaged in a range of petroleum and natural gas related activities, including the exploration, development, production and sale of crude oil and natural gas; the refining, transportation, storage and marketing of crude oil and petroleum products; the production and marketing of basic petrochemical products, derivative chemical products and other chemical products, and the transmission and storage of crude oil, refined products and natural gas, as well as the sale of natural gas. Substantially all of its crude oil and natural gas reserves and production-related assets are located in China. During the year ended December 31, 2007, PetroChina completed the acquisition of the remaining interest in Jinzhou Petrochemical Co., Ltd. (Jinzhou Petrochemical), Liaohe Jinma Oilfield Co., Ltd. (Liaohe Jinma) and Jilin Chemical Industrial Company Limited (Jilin Chemical). XINHUA: Noteholders OK Sr. Notes Purchase From US$50M Stock Sale ---------------------------------------------------------------- Xinhua Finance disclosed that holders representing more than a majority in aggregate principal amount of its outstanding US$100,000,000-10% Senior Guaranteed Notes due 2011, consented to the proposed amendment to the indenture pursuant to which the Senior Notes were issued and as proposed in the consent solicitation statement that was sent to the holders of the Senior Notes on May 26, 2008. In connection with the consent solicitation, Xinhua Finance had announced on May 26, 2008, that subject to the delivery, on or before June 9, 2008, of the consents required for implementing its proposed amendment to the Indenture, Xinhua Finance would agree to set aside 50% of the proceeds from the sale of capital stock, up to and including proceeds in an aggregate amount of US$50 million, of any of Mergent, Inc., Stone & McCarthy Research Associates, Inc., Market News International, Inc., G-7 Group, Inc., Washington Analysis Corporation and Taylor Rafferty Associates, Inc., to make an offer to purchase Senior Notes at par, plus accrued interest, within 45 days from receipt of any such proceeds, with the remaining 50% of such proceeds to be applied in accordance with the Indenture. Xinhua Finance will allocate up to the first US$25 million of proceeds from the aforementioned sale of stock, if any, to the Noteholders to make an offer to purchase Senior Notes, with the balance of up to and including US$50 million, if any, being applied in accordance with the Indenture. The supplemental indenture implementing the Proposed Amendment will be amended accordingly to reflect these changes. The complete terms and conditions of the Consent Solicitation are set forth in the Consent Solicitation Statement that was sent to the Noteholders. About Xinhua Finance Limited Xinhua Finance Limited � http://www.xinhuafinance.com/-- is China's premier financial information and media service provider and is listed on the Mothers Board of the Tokyo Stock Exchange (symbol: 9399) (OTC ADRs: XHFNY). Xinhua Finance's proprietary content platform, comprising Indices, Ratings, Financial News, and Investor Relations, serves financial institutions, corporations and re-distributors worldwide. Through its subsidiary Xinhua Finance Media Limited (NASDAQ: XFML), XFL leverages its content across multiple distribution channels in China including television, radio, newspaper, magazine and outdoor media. Founded in November 1999, XFL is headquartered in Shanghai, with offices and news bureaus spanning 12 countries worldwide. * * * As reported by the Troubled Company Reporter - Asia Pacific on May 30, 2008, Xinhua Finance Limited commenced a consent solicitation relating to its outstanding US$100,000,000 10% Senior Guaranteed Notes due 2011, ISIN: XS0275685641 and Common Code: 027568564. The Consent Solicitation will expire at 3:00 p.m., London time, on June 9, 2008, unless extended. ================ H O N G K O N G ================ BREAN DISTRIBUTOR: Creditors' Proofs of Debt Due June 27 ------------------------------------------------------- Creditors of Brean Distributor Limited are required to file their proofs of debt by June 27, 2008, to be included in the company's dividend distribution. The company's liquidator is: Stephen Briscoe 1801 Wing On House, 18th Floor 71 Des Voeux Road, Central Hong Kong CENTRAL FINANCE: Members & Creditors to Meet on July 8 ------------------------------------------------------- Central Finance Limited will hold a joint meeting for its creditors and contributors at 9:30 a.m. and 9:45 a.m, respectively on July 8, 2008. During the meeting, the company's liquidator, Stephen Briscoe will provide the attendees with property disposal and winding-up reports. The company's liquidator can be reached at: Stephen Briscoe Admiralty Centre, Tower 1, Level 14 18 Hartcourt Road, Hong Kong COSMO FIRE: Commences Liquidation Proceedings --------------------------------------------- Cosmo Fire Insurance Company Limited's members agreed on May 30, 2008, to voluntarily liquidate the company's business. The company has appointed Chui Wai Hon and Kau Wai Ming to facilitate the sale of its assets. The liquidators can be reached at: Chui Wai Hon Lau Wai Ming Hang Seng Wancahi Building, 6th Floor Room 603-4, Hennessy Road Wanchai, Hong Kong ENCHANTING INVESTMENT: Creditors Meeting Fixed for July 7 --------------------------------------------------------- The creditors of Enchanting Investment Company Limited will have their final meeting on July 7, 2008, at Level 28, Three Pacific Place, 1 Queen's Road East, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The liquidators can be reached at: Ying Hing Chui Chung Mui Yin, Diana Level 28, Three Pacific Place 1 Queen's Road East, Hong Kong HELPING METAL: Liquidators Quit Post ------------------------------------ On May 27, 2008, Wong Man Chung, Francis and Leung Lok Ming stepped down as liquidators for Helping Metal Company Limited. INTEGRITAS MANAGMENT: Liquidator Quits Post ------------------------------------------- On June 6, 2008, Philip Brendan Gilligan stepped down as liquidator for Integritas Management Limited. MICKY WEATHERWEAR: Creditors' Proofs of Debt Due July 2 ------------------------------------------------------- Creditors of Micky Weatherwear Limited are required to file their proofs of debt by June 2, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 2, 2008. The company's liquidator is: Tam Chi Chung Cheong K. Building, Room 804 84-86 Des Voeux Road Central, Hong Kong MASTERWELL WORLDWIDE: Creditors' Proofs of Debt Due July 11 ----------------------------------------------------------- Creditors of Masterwell Worldwide Investments Limited are required to file their proofs of debt by July 11, 2008, to be included in the company's dividend distribution. The company's liquidator is: Lee Sze Ho Island Place Tower, Unit 2605 510 King's Road, North Point Hong Kong REDWOOD INT'L: Commences Liquidation Proceedings ------------------------------------------------ Redwood International Limited's members agreed on May 26, 2008, to voluntarily liquidate the company's business. The company has appointed To Fung Wo to facilitate the sale of its assets. The liquidator can be reached at: To Fung Wo Chinacem Century Tower, 31st Floor 178 Gloucester Road, Wanchai Hong Kong YETO ACCOUNTING: Creditors Meeting Fixed for July 4 --------------------------------------------------- The creditors of Yeto Accounts & Taxation Limited will have their final meeting on July 4, 2008, at Island Place Tower, Unit 2605, 510 King's Road, North Point, in Hong Kong to hear the liquidator's report on the company's wind-up proceedings and property disposal. The liquidator can be reached at: Lam Wing Yi, Jerry Island Place Tower, Unit 2605 510 King's Road, North Point Hong Kong ========= I N D I A ========= SPICEJET: To Cut Flights, FY 2008 Net Loss Seen ----------------------------------------------- SpiceJet plans to cut the number of flights to just 100 per day from 117 by the first week of July as the company's FY 2008 net loss is seen at nearly Rs 100 crore and breakeven is seen delayed by a year to March 2010, moneycontrol.com reports. According to moneycontrol.com, Vijay Mallya, Chairman, UB Group, said there is a need to rationalise fleet services and cut routes if aviation turbine fuel prices are not cut. International operations are on track and the delivery of wide- body aircraft is on June 19, he added. �If there is no tax relief, the only way forward is to rationalise routes and to seriously cut down flights. The aviation industry is suffering heavy losses primarily due to the unprecedented increase in the price of oil. To make matters completely worse, there is a huge element of government taxation on top of this, which makes the position unsustainable,� moneycontrol.com cites Vijay Mallya, CMD of Kingfisher Airlines as saying. As surging oil prices continue to pull down the industry, the government of India asked state-run oil companies to consider a cut in the base price of jet fuel to give immediate relief to airlines, The Telegraph relates. The government will also call upon an empowered group of ministers to discuss likely tax cuts to bail out the sector, The Telegraph says. �This is an extraordinary situation. There is a crisis in the aviation sector and we must all collectively try to find out a solution. Otherwise it is going to affect the overall growth of the sector in a big way,� civil aviation minister Praful Patel was quoted by The Telegraph as saying after meeting Prime Minister Manmohan Singh on the ATF issue. �We have also explained that it is not so easy for a vital sector like aviation go belly up and it will have a cascading effect or multiplied effect on the entire economy.� Meanwhile, sources told the Economic Times that Paramount Airways has expressed interest in SpiceJet and is already in talks for a possible buyout. Jet Airways and Anil Dhirubhai Ambani Group (ADAG) have previously indicated their interest in the SpiceJet, the Economic Times said. �We are looking at raising Rs 400-crore capital, but the mode has not been decided yet. Nor have we yet appointed an advisory firm,� SpiceJet chief financial officer Partha Sarathi Basu told ET. He, however, declined to comment on the airline being in talks with Paramount Airways or other suitors for a buyout, ET said. As to reports on possible Ambani deal, Spicejet clarified in a regulatory filing with the Bombay Stock Exchange on June 6, 2008, that �the Company has till date not received any formal communication from any party.� When contacted by ET, Paramount Airways managing director M Thiagrajan declined to comment. However, company sources told ET that the privately-held airline is actively looking at a pan- India presence, including the competitive northern market. Spicejet will be releasing its fiscal year 2008 results on June 30, 2008. SpiceJet Limited -- http://www.spicejet.com/-- is an airline carrier in India. During the fiscal year ended May 31, 2007 (fiscal 2007), the company increased its fleet size to 11 aircrafts covering 14 destinations and operating 83 daily flights. The aircrafts acquired during fiscal 2007, were the next generation Boeing737-800. The company has also integrated with Tata AIG Insurance Company Limited to commence travel insurance sales, which was launched in May 2007. * * * Spicejet incurred net losses for at least two consecutive years -- INR414.2 million in the year ended May 31, 2006, and INR287.05 million in the year ended May 31, 2005. The company changed its financial year from June-May to April-March. For the ten months ended March 31, 2007, the airline carrier booked a net loss of INR707.43 million. * INDIA: Soaring Oil Prices Cue RBI's Special Market Operations --------------------------------------------------------------- Keeping in view the systemic implications of the liquidity and other related issues currently faced by Public Sector Oil Companies arising from the unprecedented escalation in international crude oil prices, the Reserve Bank of India had decided on May 30, 2008, to put in place Special Market Operations (SMOs), for the smooth functioning of financial markets and for overall financial stability. Accordingly the RBI decided to conduct open market operations (outright or repo at the discretion of RBI) in the secondary market through designated banks in oil bonds held by public sector oil marketing companies in their own accounts subject to an overall ceiling of Rs.1000 crore on any single day. In addition, the RBI decided to provide equivalent foreign exchange through designated banks at market exchange rate to the oil companies. It was emphasized that these measures were adhoc, temporary in nature and were to be reviewed on a continuous basis. On a review of the operations, RBI has been decided to enhance the overall ceiling of open market operations to Rs.1,500 crore on any single day. All other features of the scheme would remain unchanged. * INDIA: RBI Increases Repo Rate by 25bp to 8.00% ------------------------------------------------- The Reserve Bank of India said the Annual Policy Statement for the year 2008-09 (April 29, 2008) had stated, inter alia, that the overall stance of monetary policy in 2008-09 will broadly be to ensure a monetary and interest rate environment that accords high priority to price stability, well-anchored inflation expectations and orderly conditions in financial markets while being conducive to continuation of the growth momentum. Further, it was proposed to respond swiftly on a continuing basis to the evolving constellation of adverse international developments and to the domestic situation impinging on inflation expectations, financial stability and growth momentum, with both conventional and unconventional measures, as appropriate. The year-on-year WPI inflation which was 4.36 per cent on January 12, 2008 (at the time of announcement of the Third Quarter Review for 2007-08) increased to 7.33 per cent on April 12, 2008 (at the time of announcement of the Annual Policy Statement for 2008-09) and to a high of 8.24 per cent on May 24, 2008. Further, various measures of CPI inflation, which ranged from 4.8 to 5.9 per cent in January 2008 have increased to a range of 7.8 to 8.9 per cent in April 2008. The Annual Policy Statement for the year 2008-09 (April 29, 2008) had referred to the unprecedented uncertainties and dilemmas that exist and added "while monetary policy has to respond proactively to immediate concerns, it cannot afford to ignore considerations over a relatively longer term perspective of, say, one to two years, with respect to overall macroeconomic prospects. At the same time, it is critical at this juncture to demonstrate on a continuing basis a determination to act decisively, effectively and swiftly to curb any signs of adverse developments in regard to inflation expectations". Accordingly, and on a review of the current macroeconomic and overall monetary conditions and with a view to containing inflation expectations, the RBI says it is essential to take appropriate action on an urgent basis. The RBI has decided to increase the repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points to 8.00 per cent from 7.75 per cent with immediate effect. There is no change in the reverse repo rate. ================= I N D O N E S I A ================= BANK RAKYAT: To Offer IDR3 Tril. Loans to Support PT Telkom ----------------------------------------------------------- PT Bank Rakyat Indonesia will offer IDR3 trillion (US$330 million) in loans for PT Telkom to finance its capital expenditure, Antara News reports. PT Telkom is still seeking additional funds of IDR9.3 trillion, in which US$2.5 billion will be used to build 3,000 more base transceiver station units and to acquire a telecommunications company in the Middle East, the report says. According to Antara News, the loan is expected to come mainly from Bank Rakyat and Bank Negara Indonesia. About RBI Headquartered in Jakarta, Indonesia, PT Bank Rakyat Indonesia (Persero) Tbk's -- http://www.bri.co.id/-- services comprise Savings, Credits and Syariah. In addition, the bank divides its financial and business services into three groups: Business Services, consisting of bank guarantees, bank clearance, automatic teller machines and safe deposit boxes; Financial Services, consisting of bill payments, CEPEBRI, INKASO, deposit acceptance, online transactions and transfers, and Other Services, consisting of tax and fine payments, donations, Western Union and zakat contributions. During the year ended Dec. 31, 2005, the bank had one branch office in Cayman Islands and two representative offices in New York and Hong Kong, respectively. The Troubled Company Reporter-Asia Pacific reported on Oct. 19, 2007, that Moody's Investors Service raised Bank Rakyat's foreign currency long-term debt rating to Ba2 from Ba3 and its foreign currency long-term deposit ratings to B1 from B2. Fitch Ratings affirmed all the ratings of PT Bank Rakyat Indonesia (Persero) Tbk: * Long-term foreign Issuer Default rating 'BB-', * Short-term rating 'B', * National Long-term rating 'AA+(idn)', * Individual 'C/D', and * Support '4'. MEDCO ENERGI: Signs Pact Selling Apexindo to Mitra Rajasa --------------------------------------------------------- Medco Energi Internasional Tbk PT disclosed in a regulatory filing that on June 9, 2008, it signed an agreement for the sale and purchase of shares of its subsidiary, PT Apexindo Pratama Duta Tbk, with PT Mitra Rajasa Tbk to sell 1,287,045,106 shares representing approximately 48.72% of the total issued shares of Apexindo at the price of Rp 2,450 per share with total transaction value of US$340,893,028. Of the total consideration for the transaction, US$272,714,422 will be paid to the company in cash while US$68,178,606 will be paid by guaranteed secured bonds issued by Sabre Systems International Pte. Ltd, a wholly owned subsidiary of Mitra Rajasa. The sale of Apexindo's shares is one of the company's efforts to implement its strategy to focus the business on oil and gas E&P, power and downstream sectors. Headquartered in Jakarta, Indonesia, Medco Energi Internasional Tbk PT (JAK:MEDC) -- http://www.medcoenergi.com/-- is an integrated energy company. The company is engaged in oil and gas exploration and production, drilling services, methanol production and the power generation industry. The company holds working interests in various exploration and production blocks in Indonesia and overseas, producing more than 21 million barrel of oil and 61 million cubic feet of gas annually. In addition, it has 10 onshore rigs and four offshore rigs (swamp barge) and operates one methanol plant, one liquefied petroleum gas plant and three power plants. The company's Indonesian operations span from Aceh in Indonesia's western border to Papua in the eastern territory. The company's subsidiary, PT Apexindo Pratama Duta Tbk, is a heavy equipment provider. Apexindo Pratama has five subsidiaries, namely PT Antareja Jasatama, Apexindo Asia Pacific B.V., Apexindo Khatulistiwa B.V., Apexindo Offshore Pte. Ltd. and Apexindo Raniworo Pte. Ltd. * * * As of June 11, 2008, Medco Energi continues to carry Moody's �B1� long-term corporate family rating and Standard & Poor's �B+� long-term foreign and local issuer credit ratings. All ratings have negative outlook. PERUSAHAAN LISTRIK: Monthly Income Up by IDR260 Billion ------------------------------------------------------- Perusahaan Listrik Negara's monthly income increased by IDR260 billion following its policy, that took effect in April, of charging consumers of over 6,600 VA with a non-subsidized tariff, Antara News reports citing PLN president director Fahmi Mochtar at a hearing with the House of Representatives' Commission VII which deals with energy affairs. According to Antara News, Mr. Mochtar said the additional income was learned based on a provisional evaluation on the imposition of the non-subsidized tariff on power customers of 6,600 VA and over. "The sensitivity of consumers of over 6,600 VA has not yet been seen over the imposition of the non-subsidized tariff. Customers who consumed electricity below the efficiency limit were only 50 percent," Antara News quotes Mr. Mochtar as saying. He added that with such a condition, a policy of intensifying the imposition of non-subsidy power tariffs needed to be taken. About Perusahaan Listrik Indonesian state utility firm PT Perusahaan Listrik Negara -- http://www.pln.co.id/-- transmits and distributes electricity to around 30 million customers, roughly 60% of Indonesia's population. The Indonesian Government decided to end PLN's power supply monopoly to attract independents to build more capacity for sale directly to consumers, as many areas of the country are experiencing power shortages. * * * The Troubled Company Reporter-Asia Pacific reported on June 18, 2007, that Standard & Poor's Ratings Services affirmed its 'BB-' foreign currency rating and 'BB' local currency rating on Indonesia's PT Perusahaan Listrik Negara (Persero). The outlook is stable. At the same time, Standard & Poor's assigned its 'BB-' issue rating to the proposed senior unsecured notes to be issued by PLN's wholly owned subsidiary, Majapahit Holding B.V. * INDONESIA: Moody's to Assign Ba3 Rating on Upcoming Bond ---------------------------------------------------------- Moody's Investors Service will assign a Ba3 rating with a stable outlook to the Republic of Indonesia's forthcoming US dollar- denominated global bond. The Ba3 government bond rating reflects levels of general government debt and total external debt that are relatively high in comparison respectively to fiscal revenues and current account receipts. However, overall levels of indebtedness are on a marked downward trend. This reduction in the government's debt-to-GDP ratio has been helped by the implementation of cautious fiscal policies and a stronger Rupiah. External resiliency is also improving due to rising foreign exchange reserves that are underpinned in turn by current account surpluses and growing FDI inflows. At the same time, risks arising from a high proportion of foreign currency denominated government debt are limited by its predominantly concessional structure and long duration. On the other hand, the rating incorporates weaknesses in Indonesia's legal and regulatory system, and which heighten business costs and investor uncertainty, and may also be hindering the emergence of a higher growth rate. The stable outlook reflects Moody's view that reasonable policy management and prospects for gradual structural reforms will offset the challenges that the Indonesian authorities will continue to face over the next 12-18 months. This view was validated recently by the authorities' policy response to the intensifying nature of the global oil price shock. Against the backdrop of rising global crude oil prices and a system of domestic fuel price subsidies which still limit the pass-through of world market prices, Indonesia's fiscal position has come under increasing strain. As a result, its budgeted fiscal deficit has been adjusted modestly upwards to 2.1% of GDP. However, the structural composition of the deficit is improving and fiscal credibility remains fairly strong. Moreover, the upward revision in the government's deficit remains consistent with the stable-to-improving trends in its debt ratios. The budgetary improvements are underpinned by: (1) further reductions in government oil price subsidies; (2) higher crude price assumptions in the budget, and which are closer to international benchmarks; and (3) more accurate expenditure projections in line with declining oil output. The government's modifications of budget assumptions and fuel price subsidies were scrutinized in parliamentary deliberations. They will be accompanied by cash transfers that may reduce the realization of projected fiscal savings, but should assist the poorest sections of society in coping with the financial burden of higher fuel prices. As a result, socio-political stability will likely be maintained. Inflationary pressures will rise on account of the greater pass- through of higher oil prices. However, better implementation of fuel price increases (and cash transfers) coupled with expected monetary tightening and a supportive balance of payments should limit the second-round inflationary effects. The financing of Indonesia's higher budget deficit for FY08 relies predominantly on domestic sources. This debt management strategy complements the government's cautious fiscal stance and policy adjustments, and is broadly consistent with maintaining stability in the size, tenor and currency composition of its overall debt ratios. ========= J A P A N ========= AMPEX CORP: Files Third Amended Disclosure Statement & Plan ----------------------------------------------------------- Ampex Corporation and its debtor-affiliates delivered to the U.S. Bankruptcy Court for the Southern District of New York on June 8, 2008, a Third Amended Disclosure Statement explaining their Third Amended Joint Chapter 11 Plan of Reorganization. The Court scheduled a hearing yesterday, June 11, 2008, to consider the adequacy of the Debtors' Disclosure Statement. The Official Committee of Unsecured Creditors filed objection to the Debtors' earlier versions of the disclosure statement and plan. The Committee argued that the plan leaves unsecured creditors with minor equity share in the reorganized Debtors. The Committee's objection to the disclosure statement has not been resolved. As of March 30, 2008, the Debtors issued at least $59.6 million of outstanding notes, wherein $6.9 million represents amounts due under the a certain agreement dated Feb. 28, 2002, as amended, entered between the Debtors and U.S. Bank, National Association. Under the agreement, the Debtors issued 12% senior secured notes due 2008, which are secured by liens on the Debtors' future royalty receipts. The remaining $52.7 million of outstanding indebtedness represents Hillside Capital Incorporated Notes that were issued in connection with its satisfaction of required contribution obligation under the pension plans -- Ampex Corporation Retirement Plan and Quantegy Media Retirement Plan. The pension plans will not be terminated under the Debtors' Plan. The Debtor will continue to fund the pension plans in accordance with the minimum financing standards under the Internal Revenue Code and the Employee Retirement Income Security Act of 1974. The Debtors anticipate making pension plan contributions of at least $52.9 million by 2013. As of Dec. 31, 2007, both pension plans were underfunded by $57.7 million in the aggregate. Overview of the Plan The Plan provides for substantive consolidation of the Debtors' estates for making distributions to the holders of allowed claims and allowed interests. The Plan further provides for the restructuring of the Debtors' liabilities to maximize recovery to all stakeholders and to improve financial viability of the reorganized Debtors. All of the Debtors' existing common stock will have no value and will be canceled. Upon emergence, at least 80% of the reorganized Debtors' new common stock will be owned by Hillside. The new common stock will not be registered and will not be traded on any public exchange. Under the Plan, the disbursing agent is expected to transfer all rights to the appropriate holders free and clear of all liens and interests. The Third Amended Plan classified claims against and interest in the Debtors eight classes. The classification and treatment of claims and interests are: Treatment of Claims and Interests Type of Estimated Estimated Class Claims Treatment Amount recovery ----- ------- --------- --------- --------- unclassified Administrative $100,000 100% Expense Claims unclassified Fee Claims $2,900,000 100% unclassified Priority Tax $200,000 100% Claims 1 Priority Non- unimpaired $0 100% Tax Claims 2 Senior Secured impaired $6,900,000 Note Claims 3 Other Secured unimpaired $0 100% Claims 4 Hillside impaired $11,000,000 100% Secured Claims 5 General impaired $51,600,000 10% Unsecured Claims 6 Existing Common impaired $0 0% Stock 7 Existing impaired $0 0% Securities Laws Claims 8 Other Existing impaired $0 0% Interests If holder of Class 5 general unsecured creditors agrees to a different treatment, holder will receive its pro rata share of the unsecured claim distribution. Distributions of new common stock will be made after the Plan's effective date. Hillside unsecured deficiency claims, if any, will be deemed an allowed unsecured claim in the amount of at least $41.7 million. Holders of claims in classes 2, 4 and 5 are entitled to vote to accept or reject the Plan. A full-text copy of the Third Amended Disclosure Statement is available for free at: http://ResearchArchives.com/t/s?2d9b A full-text copy of the Amended Joint Chapter 11 Plan of Reorganization is available for free at: http://ResearchArchives.com/t/s?2d9c Headquartered in Redwood City, California, Ampex Corp. -- http://www.ampex.com/-- (Nasdaq:AMPX) is a licensor of visual information technology. The company has two business segments: Recorders segment and Licensing segment. The Recorders segment primarily includes the sale and service of data acquisition and instrumentation recorders (which record data and images rather than computer information), and to a lesser extent mass data storage products. The Licensing segment involves the licensing of intellectual property to manufacturers of consumer digital video products through their corporate licensing division. On March 30, 2008, Ampex Corp. and six affiliates filed for protection under Chapter 11 of the Bankruptcy Code with the U.S. Bankruptcy Court for the Southern District of New York (Case Nos. 08-11094 through 08-11100). Matthew Allen Feldman, Esq., and Rachel C. Strickland, Esq., at Willkie Farr & Gallagher LLP, represent the Debtors in their restructuring efforts. The Debtors have also retained Conway Mackenzie & Dunleavy as their financial advisors. In its schedules of assets and liabilities filed with the Court, Ampex Corp. disclosed total assets of $9,770,089 and total debts of $82,488,054. The Debtors have nine foreign affiliates that are incorporated in seven countries -- one each in the United Kingdom, Japan, Belgium, Colombia and Brazil and two each in Germany and Mexico. With the exception of the affiliates located in the U.K. and Japan, none of the other foreign affiliates conduct meaningful business activity. As of March 30, 2008, none of the foreign affiliates have commenced insolvency proceedings. FORD MOTOR: Trancinda Buys 20MM Shares of Over 1 Bil. Tendered -------------------------------------------------------------- Tracinda Corporation disclosed the preliminary results of its cash tender offer for up to 20,000,000 shares of Ford Motor Company common stock, which expired at 5:00 p.m., New York City time, on Monday, June 9, 2008. Based on the preliminary count, subject to final verification, approximately 1,016,959,620 of 2,240,000,000 shares of Ford�s common stock were tendered, including approximately 240,549,802 shares tendered by notices of guaranteed delivery. Tracinda will purchase 20,000,000 shares of Ford�s common stock in the tender offer at a purchase price of $8.50 per share, for a total purchase price of $170,000,000, raising Tracinda's interest in Ford to 5.5% from 4.7%. Because the number of shares tendered exceeded the number of shares that Tracinda offered to purchase, the resulting estimated proration factor is approximately 1.97% of the shares tendered. According to Matthew Dolan of The Wall Street Journal, holders were expected to dump off their shares since Trancinda's offer was a 34% premium to Ford's June 9 trading price on the New York Stock Exchange of $6.36. The number of shares tendered and not withdrawn and the proration factor are preliminary and are subject to verification. The actual number of shares validly tendered and not withdrawn and the final proration factor will be announced promptly following completion of the verification process. Promptly after such announcement, the depositary will issue payment for the shares validly tendered and accepted under the tender offer and will return all other shares tendered. Questions regarding the offer should be directed to the information agent, D. F. King & Co., Inc., at (212) 269-5550 for banks and brokerage firms or (800) 859-8511 for all others. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter on March 28, 2008, Standard & Poor's Ratings Services said that the ratings and outlook on Ford Motor Co. and Ford Motor Credit Co. (both rated B/Stable/B-3) were not affected by Ford's announcement of an agreement to sell its Jaguar and Land Rover units to Tata Motors Ltd. (BB+/Watch Neg/--) for $2.3 billion (before $600 million of pension contributions by Ford for Jaguar-Land Rover). As reported in the Troubled Company Reporter on Feb. 15, 2008, Fitch Ratings affirmed the Issuer Default Ratings of Ford Motor Company and Ford Motor Credit Company at 'B', and maintained the Rating Outlook at Negative. As reported in the Troubled Company Reporter on Nov. 19, 2007, Moody's Investors Service affirmed the long-term ratings of Ford Motor Company (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured, and B3 probability of default), but changed the rating outlook to Stable from Negative and raised the company's Speculative Grade Liquidity rating to SGL-1 from SGL-3. NIS GROUP: JCR Withdraws BB/Negative Senior Debts Rating -------------------------------------------------------- Japan Credit Rating Agency Ltd. has withdrawn its ratings on senior debts, shelf registration and CP program of NIS Group Co. Ltd. and that on senior debts of Nissin Servicer Co. Ltd. at the request of the issuer. NIS Group: Rating Senior Debts BB/Negative Shelf Registration: Preliminaty Rating Maximum:PY Y100 billion BB Valid: two years effective from December 3, 2007 CP: NJ Nissin Servicer: Rating Senior Debts BB/Negative As reported in the Troubled Company Reporter-Asia Pacific on May 13, 2008, JCR affirmed its BB and preliminary BB rating on senior debts and shelf registration of NIS Group Co., Ltd. while revising rating outlook from Stable to Negative. Similarly, JCR has affirmed its BB rating on senior debts of Nissin Servicer Co. Ltd., revising the rating outlook from Stable to Negative. JCR stated that NIS Group revised downwards the forecasts for operating performance for FY2007 ended March 31, 2008. Although NIS Group's net assets will lower than originally forecasted due to the expanded net loss, NIS Group is estimated to have secured net assets amounting about JPY58 billion (as of the end of March 2008 (20% capital to total assets ratio). According to the rating agency, the write-downs on inventory and additional loan loss provisions made the Company's financial risk derived from weakened real estate and stock markets smaller. JCR gave the Company high marks for the increased capital through issue of common stock for JPY20 billion in February this year, the undertakings towards business selection and concentration and also enhancement of governance based on the "management reform program", lowered proportion of consumer finance business to the entire business portfolio and the fact that loss on consumers' claims for refunds of excess interest payments has been limited to the assumptions as supporting factors for the rating for the Company. On the other hand, JCR said changes in lending postures of financial institutions and realization of the growth strategy over the medium term will depend on external environment to a large degree. There are constraints on the rating with respect to these factors. Although risk of deterioration in asset quality was reduced, downward pressures are being put on medium- term business plan and profitability of the real estate related business, which is one of the core businesses for the Company. JCR revised rating outlook for the Company from Stable to Negative, based on the fact that JCR will have to pay more attention to the above. Similarly, JCR revised rating outlook for Nissin Servicer, which has strong unity with the Company in human affairs and fundraising. About NIS Group Japan-based NIS Group Co. Limited -- http://www.nisgroup.jp/-- formerly Nissin Co. Ltd., is mainly engaged in the provision of secured and unsecured loans to individuals, including small business owners, consumers, small- and medium-sized enterprises in Japan. The company operates in four business segments. The Integrated Loan Services segment is engaged in the provision of secured and unsecured loans, trust assurance, leasing and securities services to individuals and corporate clients. The Debt Management and Collection segment is engaged in the purchase, management and collection of debts. The Real Estate segment is engaged in the purchase, sale and development of real estate, as well as the asset management business. The Others segment is engaged in the provision of construction services and enterprise support services, among others. The company has 54 subsidiaries and 10 associated companies. NISSIN SERVICER: JCR Withdraws BB/Negative Senior Debts Rating -------------------------------------------------------------- Japan Credit Rating Agency Ltd. has withdrawn its ratings on senior debts, shelf registration and CP program of NIS Group Co. Ltd. and that on senior debts of Nissin Servicer Co. Ltd. at the request of the issuer. NIS Group: Rating Senior Debts BB/Negative Shelf Registration: Preliminaty Rating Maximum: Y100 billion BB Valid: two years effective from December 3, 2007 CP: NJ Nissin Servicer: Rating Senior Debts BB/Negative As reported in the Troubled Company Reporter-Asia Pacific on May 13, 2008, JCR affirmed its BB and preliminary BB rating on senior debts and shelf registration of NIS Group Co., Ltd. while revising rating outlook from Stable to Negative. Similarly, JCR has affirmed its BB rating on senior debts of Nissin Servicer Co. Ltd., revising the rating outlook from Stable to Negative. JCR stated that NIS Group revised downwards the forecasts for operating performance for FY2007 ended March 31, 2008. Although NIS Group's net assets will lower than originally forecasted due to the expanded net loss, NIS Group is estimated to have secured net assets amounting about JPY58 billion (as of the end of March 2008 (20% capital to total assets ratio). According to the rating agency, the write-downs on inventory and additional loan loss provisions made the Company's financial risk derived from weakened real estate and stock markets smaller. JCR gave the Company high marks for the increased capital through issue of common stock for JPY20 billion in February this year, the undertakings towards business selection and concentration and also enhancement of governance based on the "management reform program", lowered proportion of consumer finance business to the entire business portfolio and the fact that loss on consumers' claims for refunds of excess interest payments has been limited to the assumptions as supporting factors for the rating for the Company. On the other hand, JCR said changes in lending postures of financial institutions and realization of the growth strategy over the medium term will depend on external environment to a large degree. There are constraints on the rating with respect to these factors. Although risk of deterioration in asset quality was reduced, downward pressures are being put on medium- term business plan and profitability of the real estate related business, which is one of the core businesses for the Company. JCR revised rating outlook for the Company from Stable to Negative, based on the fact that JCR will have to pay more attention to the above. Similarly, JCR revised rating outlook for Nissin Servicer, which has strong unity with the Company in human affairs and fundraising. About Nissin Servicer Headquartered in Tokyo, Nissin Servicer Co. Limited -- http://www.nissin-servicer.co.jp/ -- is principally engaged in the credit management and credit collection businesses. The company, along with its subsidiaries, is also engaged in the investment business, the real estate-related business, as well as the management of corporation reconstruction funds. The company has 20 subsidiaries and nine associated companies. KOBE STEEL: Begins Construction of JPY4-Billion Testing Facility ---------------------------------------------------------------- Kobe Steel, Ltd. has begun construction of a large-capacity compressor testing facility at its Takasago Works in Hyogo Prefecture, Japan. Kobe Steel plans to invest JPY4.1 billion in the new facility, which will go into operation in April 2010. The new facility will be able to test large-capacity rotating machinery, mainly turbo compressors, with variable-speed motors rated up to 20,000 kW. Kobe Steel's testing capacity will increase by 50%, in comparison to the current level. Testing facilities are essential to confirm the design performance of compressors, a major product of Kobe Steel's Machinery segment. The new testing facility will enable Kobe Steel to enter the large-capacity turbo compressor market. Kobe Steel anticipates that numerous projects in the future, both in Japan and overseas, will need large turbo compressors. Two examples are oxygen plants in steel mills and the manufacturing of liquid crystal displays. Kobe Steel estimates that it currently has a 10% share of the world market for the integral-gear variety of turbo compressors. The company anticipates that by expanding into large-capacity compressors, it will be able to gain a 20% share of the integral-gear compressor market in the future. In the Kobe Steel Group's Machinery segment, business has been brisk from the oil refining, petrochemical and energy industries. In recent years, Kobe Steel has been developing the global market including the United States, Europe, China and the Middle East. It has also been supplying compressors of higher pressure and with larger capacities. Owing to strong demand, Kobe steel doubled total compressor sales to 700 billion yen between fiscal 2002 and fiscal 2007. Sales in fiscal 2008 are also anticipated to increase further. In 1915, Kobe Steel began production of Japan's first reciprocating compressor. From this start, it has been growing its compressor business for nearly a century. Kobe Steel is Japan's top comprehensive manufacturer of compressors. It currently makes screw, centrifugal and reciprocating compressors - the only company that produces all three types. Headquartered at Chuo-ku, Kobe, in Hyogo, Japan, Kobe Steel, Limited -- http://www.kobelco.co.jp/english/corp/index.html-- is one of Japan's leading steel makers, as well as the top supplier of aluminum and copper products. Other businesses include welding consumables, urban infrastructure and plant engineering services, and industrial machinery. Kobe Steel has offices in New York, Singapore, Bangkok and Beijing. * * * As of June 11, 2008, the company still holds Mikuni Credit Rating's �BB� Mortage Debt and Senior Debt ratings. KOBE: Unit to Raise Production Capacity of Three Joint Ventures -------------------------------------------------------------- Kobelco Construction Machinery Co., Ltd., unit of Kobe Steel, Ltd., will raise the production capacity of three subsidiaries in China by investing approximately JPY10 billion, Reuters reports, citing Jiji Press. According to the report, the three subsidiaries are engaged in the business of hydraulic shovels and small-size shovels. The manufacturing operations will be transferred to a new location, and the production capacity will approximately be tripled, the report says. Headquartered at Chuo-ku, Kobe, in Hyogo, Japan, Kobe Steel, Limited -- http://www.kobelco.co.jp/english/corp/index.html-- is one of Japan's leading steel makers, as well as the top supplier of aluminum and copper products. Other businesses include welding consumables, urban infrastructure and plant engineering services, and industrial machinery. Kobe Steel has offices in New York, Singapore, Bangkok and Beijing. * * * As of June 11, 2008, the company currently holds Mikuni Credit Rating's �BB� Mortage Debt and Senior Debt ratings. SANYO ELECTRIC: Seeks to Expand Market Share in North America ------------------------------------------------------------- Sanyo Electric Co. Ltd. is in talks with Best Buy Co. Inc. and other stores to expand sales channels in North America beyond Wal-Mart stores, Reuters relates, citing Masami Murata, president of Sanyo North America. The report says the company, with the help of its major shareholder Goldman Sachs, hopes to reach an agreement with Best Buy this year, and is also in talks to expand its product lineup with energy-efficient appliances at Wal-Mart. According to Yukari Iwatani Kane of The Wall Street Journal, Sanyo, currently selling television sets only through Wal-Mart, is talking with other retailers, including Costco Wholesale Corp., to offer its television sets. Reuters says Sanyo is fighting to keep pace with undercutting rivals like Vizio Inc. by procuring panels from suppliers such as Sharp Corp. The company, The WSJ relates, aims to more than triple its flat- panel-television shipments in North America to four million units by the end of its fiscal year ending March 2011. The goal is part of Sanyo's plan to nearly double sales of electronics products in the region to JPY220 billion (US$2.1 billion) in the next three years from JPY128 billion in the last fiscal year ended in March, The WSJ says. Mr. Murata told Reuters that the company plans to launch a marketing campaign targeting hotels, movie theatres, gasoline stations and other businesses with its low-power consumption air conditioners, refrigerators and other appliances. "We would like to hit double-digit sales growth this year," Mr. Murata said. "But this year is a year of preparation. Sales will truly take off in the following two years," Mr. Murata was cited by Reuters as saying. About Sanyo Electric Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. -- http://www.sanyo.com/-- is one of the world's leading manufacturers of consumer electronics products. The company has global operations in Brazil, Germany, India, Ireland, Spain, the United States and the United Kingdom, among others. * * * As reported by the Troubled Company Reporter - Asia Pacific on June 6, 2008, Standard & Poor's Ratings Services raised to 'BB' from 'BB-' its long-term corporate credit rating on Sanyo Electric Co. Ltd, reflecting the company's stable cash flow generating ability and improving financial profile. At the same time, Standard & Poor's raised to 'BB+' from 'BB' its issue ratings on Sanyo Electric's senior unsecured debt. The outlook on the ratings is stable. ========= K O R E A ========= * KOREA: April 2008 Interests on Savings Deposits Rose 0.18%p ------------------------------------------------------------- South Korea's average annual interest rates on new - time & savings deposits taken by commercial and specialized banks during April 2008 registered 5.45%, up 0.12%p from the preceding month's 5.33%, the country's Economic Statistics Department said. Interests on savings deposits rose 0.18%p (5.28% to 5.46%), centering around time deposits, led by some banks' setting of high prime rates and special sales of high interest rate deposit products. Interests on new marketable instruments also showed an increase of 0.04%p (5.41% to 5.45%), centering around CDs and Rps. The average annual new lending rates in April 2008 registered 6.91%, up 0.01%p from the preceding month's 6.90%. Interest rates on corporate loans went down (6.92% to 6.91%, -0.01%p), centering around those on loans to Small- and Medium-sized Enterprises (SMEs), while interest rates on household loans went up (6.89% to 6.99%, +0.10%p), reflecting an upward movement in the yield on CDs (91 days). A. Deposit Rates Savings Deposits ---------------- The average annual interest rate on new savings - deposits stood at 5.46%, up 0.18%p from the previous month. By deposit type, interest rates on mutual installment deposits went down (-0.02% p), while those on housing installment deposits remained unchanged from the preceding month. Meanwhile, the rates on both time deposits (+0.18%p) and installment savings (+0.08%p) rose from the preceding month. As for interest rates on time deposits, the portion - of time deposits with rates of 6.0% or higher rose to 14.1% from the preceding month's 3.7%. Marketable Instruments ---------------------- The average annual interest on new marketable - instruments registered 5.45% in April 2008, up 0.04%p from the previous month. Interest rates on new financial debentures (-0.16%p) exhibited a decrease, while those on CDs (+0.10%p), RPs (+0.08%p) and cover bills (+0.07%p) posted increases. B. Lending Rates Corporate Loans --------------- The average annual interest rate on new corporate - loans in April 2008 registered 6.91%, down 0.01%p from the previous month. Interest rates on lending to large businesses remained unchanged from the preceding month, whereas those on lending to SMEs posted a decrease (-0.01%p). Household Loans --------------- The average annual interest rates on new household - loans stood at 6.99% in April 2008, a rise of 0.10%p from the previous month. Interest rates on loans on credit (+0.13%p), on mortgage (+0.10%p), on deposits (+0.07%p) and on guarantee (+0.05%p) all exhibited increases. Weighted Average Interest Rates on Outstanding Amounts As of the end of April 2008, the deposit rates of outstanding amounts increased by 0.02%p from the preceding month, while the lending rates of outstanding amounts fell by 0.07%p. As for deposit rates, rates on demand deposits and instant access savings deposits remained unchanged from the preceding month, while the rates on savings deposits (+0.02%p) and marketable instruments (+0.02%p) went up from the preceding month. As for lending rates, both household lending rates (-0.11%p) and corporate lending rates (-0.04%p) fell from the preceding month. Interest Rates of Non-bank Financial Institutions Interest rates on deposits and loans newly - taken and extended by non-bank financial institutions during April 2008 are as follows: -- Deposit interest rates of mutual savings banks fell by 0.01%p, while their lending rate rose by 0.03%p. -- Deposit rates of credit unions went down by 0.09%p and their lending rates by 0.11%p. -- Deposit rates of mutual credits declined by 0.04%p from the preceding month, while their lending rates rose by 0.01%p. =============== M A L A Y S I A =============== BSA INTERNATIONAL: Unable to Pay Interest on Loan Obligations ------------------------------------------------------------- BSA International Berhad was classified as an affected listed issuer under Practice Note 17 due to its failure to pay the principal plus interest amount owed to certain facilities, including: -- default in payment of interest in respect of MYR150 million Murabahah Commercial Papers/Medium-Term Notes Programme (2004/2011); -- default in payment of interest in respect of MYR45 million loan under Kerisma Berhad�s Collateralised Loan Obligations; -- BSA Manufacturing Sdn. Bhd.'s default in payment of principal plus interest to HSBC Bank Malaysia Berhad amounting to MYR5,168,515.25; and -- CAM Component Alloy Manufacturing Sdn. Bhd.'s default in payment of principal plus interest to HSBC Bank amounting to MYR5,185,597.35. In its regulatory filing, the company stated that the default was due to continuous rise in prices of raw material, its primary raw material of aluminium ingot and fuel as well as the weakening of USD in the recent years which contributed to constraint in working capital. To address the default, the company has appointed FHMH Corporate Advisory Sdn Bhd as its Financial Adviser to undertake a comprehensive review of the company and to consider and recommend options available. As an affected listed, the company is required to: -- regularize its condition and submit a plan to this effect to the Securities Commission and other relevant authorities for approval within eight months; -- implement the Regularization Plan within the timeframe stipulated by the Approving Authorities; and -- make the following announcements: a. the status of BSA�s Regularization Plan and the number of months to the end of the relevant time frames on a monthly basis until further notice from Bursa Securities; b. its compliance or non-compliance with a particular obligation imposed pursuant to PN 17 on an immediate basis; and c. details of the Regularization Plan, which shall include the timeline for the complete implementation of the Regularization Plan. This Requisite Announcement must be made by a merchant banker or a participating organization that may act as a principal adviser under the Securities Commission�s Policies and Guidelines on Issue/Offer of Securities. Status of company's Regularization Plan The company is currently in the process of negotiation with the lenders and noteholders in connection with the facilities defaulted to seek indulgence for a standstill period for the company to come out with a propose restructuring of repayment of the outstanding amount. Thereafter, appropriate steps will be taken pursuant to the guidelines under Securities Commission�s Policies and Guidelines on Issue/Offer of Securities to formalize the Regularization Plan. BSA will make on finalization and completion of the regularization Plan, the requisite announcement outlining the details of its Regularization Plan. About BSA International BSA International Berhad is a Malaysia-based investment holding company. The company operates in two business segments: manufacturing, which is engaged in manufacturing of alloy wheels and related accessories, and trading, which is engaged in trading of alloy wheels, tires and related accessories. Other business segments include investment holding, provision of services and promotion of motor sport events. The company�s subsidiaries include BSA International (Labuan) Plc., CAM International Limited, BS Automotive (M) Sdn. Bhd., BSA Motorsports Sdn. Bhd., CAM Automotive Inc., PT CAM Automotive and BSA Racing Team Sdn. Bhd. BSA INTERNATIONAL: Incurs MYR12.88MM Net Loss in 1st Qtr. 2008 -------------------------------------------------------------- BSA International Berhad incurred a net loss of MYR12.88 million on MYR25.10 million of revenues in the first quarter ended March 31, 2008, as compared to MYR2.61 million net profit on MYR58.4 million of revenues recorded in the same quarter of the preceding year. As of March 31, 2008, the company's balance sheet showed MYR453.48 million in total assets and MYR328.58 million of total liabilities resulting to a shareholders equity of MYR124.9 million. About BSA International BSA International Berhad is a Malaysia-based investment holding company. The company operates in two business segments: manufacturing, which is engaged in manufacturing of alloy wheels and related accessories, and trading, which is engaged in trading of alloy wheels, tires and related accessories. Other business segments include investment holding, provision of services and promotion of motor sport events. The company�s subsidiaries include BSA International (Labuan) Plc., CAM International Limited, BS Automotive (M) Sdn. Bhd., BSA Motorsports Sdn. Bhd., CAM Automotive Inc., PT CAM Automotive and BSA Racing Team Sdn. Bhd. MEMS TECHNOLOGY: Bursa Rejects Application for Waiver ----------------------------------------------------- MEMS Technology Berhad disclosed in a letter dated June 6, 2008, that the Bursa Securities has rejected the company's application for a waiver to submit its regularization plan within eight months since it became an affected company under the Guidance Note No. 3/2006 of the listing requirements of Bursa Securities for the MESDAQ market. The EdgeDaily reports that MEMS had become an affected company after its external auditors had expressed a disclaimer opinion on the company�s consolidated financial results for the financial year ended July 31, 2007. The company's external auditors had �expressed concerns� over certain transactions relating to its revenue, as well as some of its assets. MEMS reported a variation of MYR8.36 million in its audited net profit for FY07 to MYR13.11 million after reversing transactions that their external auditors had objected to, the Edge Daily relates. The deviation of the results in FY07, according to MEMS, was due to the reversal of transactions after it decided not to recognize revenue of MYR19.72 million, the report says. However, external auditors said they were unable to verify the authenticity of the revenue in question, as they were unable to perform audit procedures to satisfy themselves as to the identity of the payers for the sales to two multinational companies, the Edge Daily adds. About MEMS Technology MEMS Technology Berhad is a Malaysia-based investment holding company. The company�s subsidiaries include SensFab Pte.Ltd, which is engaged in the designing, development, testing and manufacture of microelectro-mechanical systems-based sensors products, SenzPak Pte.Ltd and SenzPak (M) Sdn. Bhd., which is engaged in the designing, development, testing and assembly, packaging and manufacturing of micro electromechanical systems. The company manufactures micro electro-mechanical systems (MEMS)-based sensors, sensor modules, and provides manufacturing services. WONDERFUL WIRE: Total Default Reaches MYR64.86 Mil. as of May 31 ---------------------------------------------------------------- Wonderful Wire Berhad disclosed with the Bursa Stock Exchange that together with its subsidiary, WWC Oil & Gas (Malaysia) Sdn. Bhd, the company's total default reached MYR64,865,967.07 as of May 31, 2008, which comprises of: Wonderful Wire's loans: Principal & Interest Lender Facility Outstanding (MYR) ------- -------- -------------------- * CIMB Bank Berhad Term Loan 9,636,662.62 * Malayan Banking Berhad Term Loan 30,631,142.37 * RHB Islamic Bank Berhad Term Loan 20,062,025.70 * CIMB Bank Berhad Leasing 4,229,499.00 -------------------- Total: 64,559,329.69 WWC Oil's loan: Principal & Interest Lender Facility Outstanding (MYR) ------- -------- -------------------- CIMB Bank Berhad Leasing MYRRM306,637.38 WWC and its subsidiary are unable to service the loan repayments to the lending financial institutions as their businesses has suffering operating losses for the last few years. The problem has been compounded by the shortage in working capital and continuing increase in the prices of copper, the main raw material for WWC�s productions. To address the default, the company is considering an appropriate regularization plan which will include a proposed corporate and debt restructuring scheme to be submitted to the authorities for their approval by July 31, 2008 to regularize its financial position. About Wonderful Wire Wonderful Wire & Cable Berhad is a Malaysia-based company that is engaged in the manufacture and trading of all kinds of electrical wires and cables. The principal activities of the company's subsidiaries include the investment holding, provision for oil, gas and petroleum engineering, and design engineers and contractors. Its subsidiaries include Wonderful Industries Sdn. Bhd., WWC Oil & Gas (Malaysia) Sdn. Bhd., WWC Sealing (Malaysia) Sdn. Bhd., Transmission Resources Sdn. Bhd., WWC Engineering (M) Sdn. Bhd. and Wonderful Wire & Cable. In November 2006, the company acquired the remaining 40% interest in WWC Sealing (Malaysia) Sdn Bhd. The principal activity of WWC Sealing (Malaysia) Sdn Bhd is to design, manufacture and market different ranges of industrial seal and gasket. On December 3, 2007, the company was classified as an affected listed issuer pursuant to Bursa Malaysia Securities Berhad's Practice Note 17 category as the company's shareholders' equity on a consolidated basis for the unaudited results is less than 25% of the issued and paid-up capital for the third quarter ended Sept. 30, 2007. ==================== N E W Z E A L A N D ==================== CHRISCOTT LTD: Commences Liquidation Proceedings ------------------------------------------------ The High Court at Wellington convened a hearing on June 3, 2008, to consider an application putting Chriscott Limited into liquidation. The application was filed on April 18, 2008, by the Commissioner of Inland Revenue. The plaintiff can be reached at: Inland Revenue Department Legal and Technical Services 7-27 Waterloo Quay (PO Box 1462), Wellington Telephone: (04) 890 1028 Facsimile: (04) 890 0009 Philip Hugh Brian Latimer is the plaintiff�s solicitor. HATUMA FOODS: Liquidators Appointed ----------------------------------- By a special resolution pursuant to section 241 of the Companies Act 1993, John Richard Palairet and David William Pearson, chartered accountants of Napier, were appointed as liquidators of Hatuma Foods Limited. The company's liquidation commenced on May 12, 2008. For inquiries contact: BDO Spicers Hawke's Bay 86 Station Street (PO Box 944), Napier Telephone: (06) 835 3364 Facsimile: (06) 835 3388 OTARA SECONDHAND: Court Sets July 30 Liquidation Hearing -------------------------------------------------------- On April 3, 2008, an application for putting Otara Secondhand Warehouse Limited fka Leabank Service Station Limited into liquidation by the High Court was filed in the High Court at Auckland. The application is to be heard before the High Court at Auckland on July 30, 2008 at 10:00 a.m. Any person, other than the defendant company, who wishes to appear on the hearing of the application must file an appearance not later than the second working day before that day. The plaintiff, the Commissioner of Inland Revenue, can be reached at: Inland Revenue Department Legal and Technical Services 1 Bryce Street (PO Box 432) Hamilton Telephone: (07) 959 0373 Facsimile: (07) 959 7614 Kay S. Morgan is the plaintiff�s solicitor. PARKSTONE NURSING: Commences Liquidation Proceedings ---------------------------------------------------- The High Court at Wellington convened a hearing on June 3, 2008, to consider an application putting Parkstone Nursing & Care Limited into liquidation. The application was filed on April 18, 2008, by the Commissioner of Inland Revenue. The plaintiff can be reached at: Inland Revenue Department Legal and Technical Services 7-27 Waterloo Quay (PO Box 1462), Wellington Telephone: (04) 890 1028 Facsimile: (04) 890 0009 Philip Hugh Brian Latimer is the plaintiff�s solicitor. PERCY DAVIS: Liquidators Fix June 19 as Claims Bar Date ------------------------------------------------------- The liquidators appointed in Percy Davis Limited and Cairngorm Civils Limited's cases fixed June 19, 2008, as the last day for creditors of the company to make their claims and to establish any priority their claims may have under section 312 of the Companies Act 1993. Robert B. Walker and John M. Scutter, the liquidators, can be reached at: Active Chartered Accountants Level 2, 330 High Street (PO Box 31047) Lower Hutt Telephone: (04) 586 4645 Facsimile: (04) 586 7641 PROPERTY FUNDING: Claims Filing Deadline is June 19 --------------------------------------------------- The creditors of Property Funding Investment Group Limited have until June 19, 2008, to make their claims and to establish any priority their claims may have under section 312 of the Companies Act 1993. Stephen James Higgs and Stephen Alan Dunbar, chartered accountants of Polson Higgs, were appointed liquidators. The liquidation of the company commenced on May 14, 2008. For inquiries, contact Jiahua Su at 139 Moray Place, in Dunedin, or through telephone number (03) 477 9923. The Liquidators can be reached at: Polson Higgs PO Box 5346 Dunedin SEPI MANAGEMENT: Court Sets June 16 Liquidation Hearing ------------------------------------------------------- On April 8, 2008, an application for putting SEPI Management Limited fka Paradise Pies Limited into liquidation by the High Court was filed in the High Court at Tauranga. The application is to be heard before the High Court at Rotorua on June 16, 2008 at 10:45 a.m. Any person, other than the defendant company, who wishes to appear on the hearing of the application must file an appearance not later than the second working day before that day. The plaintiff, the Commissioner of Inland Revenue, can be reached at: Inland Revenue Department Legal and Technical Services 1st Floor Reception 224 Cashel Street (PO Box 1782) Christchurch 8140 Telephone: (03) 968 0807 Facsimile: (03) 977 9853 Julie Newton is the plaintiff�s solicitor. * NEW ZEALAND: Export Price Index Up 4.5% in March 2008 Qtr. ------------------------------------------------------------ The price indexes for both merchandise exports and imports rose in the March 2008 quarter, while volumes for both were down, Statistics New Zealand said. Although volumes fell for both exports and imports in the March 2008 quarter, both have come off the highs set in December 2007, and are still at the second highest levels on record. The export price index rose 4.5 percent in the March 2008 quarter while volumes fell 3.5 percent, with dairy products the main contributor to both movements. The dairy products price index rose 19.7 percent to reach a new high in March 2008, with rises recorded for milk and cream, butter, and cheese. At the same time, volumes fell 10.6 percent (from the record high of the December 2007 quarter), with falls recorded in all dairy products sub-indexes except for butter. The merchandise import price index rose 0.3 percent in the March 2008 quarter while import volumes fell 0.9 percent. The price increase was driven by an 8.3 percent rise in the petroleum and petroleum products index. However, when these products are excluded, the price index for total merchandise imports shows a fall of 1.1 percent. The fall in import volumes follows six consecutive quarterly increases, with the current decrease led by transport equipment, primarily due to reduced volumes of aircraft imports compared with December 2007. Due to export prices rising more than import prices, the merchandise terms of trade index rose 4.1 percent in the March 2008 quarter. The terms of trade have now risen for six consecutive quarters. ===================== P H I L I P P I N E S ===================== PHILIPPINE NATIONAL: To Offer PHP3BB Lower Tier 2 Notes in Feb. --------------------------------------------------------------- Philippine National Bank will offer at least PHP3 billion of Lower Tier 2 notes (LT2) to raise additional capital primarily to re-finance outstanding LT2 Notes callable in February 2009. The bank started offering the Notes on June 3, 2008, and market response to the issue has been very strong with over PHP7 billion in total orders as of June 6, 2008. Indicative interest rate for the Notes is about 8.50%. The final rate will be determined by the Bank early this week. The Notes will have an initial maturity of ten years but are callable by the Bank in 2013. The rate on the Notes will increase if the Bank does not call the Notes after the 5th year. PNB is looking to close the offer peiod on June 18 although it reserves the right to close the offer period subject to discussion with the Arranger. Deutsche Bank AG, Manila Branch is the Arranger and a Selling Agent for the transaction. Other selling agents include Allied Banking Corporation, First Metro Investment Corporation and Multinational Investment Bancorporation. Limited selling agents include PNB and PNB Capital and Investment Corporation. Deutsche Bank AG, Manila is also acting as Registry for the transaction and Development Bank of the Philippines is acting as Public Trustee. The market maker for secondary sales of these Notes is MIB. Philippine National Bank -- http://www.pnb.com.ph/-- is the Philippine's first universal bank established on July 22, 1916. The bank's core business consists of lending and deposit-taking activities from corporate, middle market and retail customers, as well as various government units. Its other principal activities include bill discounting, fund transfers, remittance servicing, foreign exchange dealings, retail banking, trust services, treasury operations and trade finance. Through its subsidiaries, PNB engages in a number of diversified financial and related businesses such as international merchant banking, investment banking, life/non-life insurance, leasing, financing of small-and-medium-sized industries, and financial advisory services. It introduced innovations such as the bank on wheels, computerized banking, ATM banking, mobile money changing and domestic travelers' checks. * * * The TCR-AP reported on May 15, 2008, that Moody's Investors Service affirmed the bank's foreign currency deposit rating of B1/Not-Prime, upgrades bank's financial strength rating to E+. At the same time, the bank's local-currency deposit and subordinated debt ratings have been raised to Ba1/Not-Prime and Ba2 respectively. ================= S I N G A P O R E ================= AXS-ONE INC: March 31 Balance Sheet Upside-Down by US$10,622,000 ---------------------------------------------------------------- AXS-One Inc.'s consolidated balance sheet at March 31, 2008, showed $5,529,000 in total assets and $16,151,000 in total liabilities, resulting in a $10,622,000 total stockholders' deficit. At March 31, 2008, the company's consolidated balance sheet also showed strained liquidity with $5,025,000 in total current assets available to pay $8,341,000 in total current liabilities. The company reported a net loss of $2,205,000, on total revenues of $3,894,000, for the first quarter ended March 31, 2008, compared with a net loss of $2,661,000, on total revenues of $3,694,000, in the same period last year. Revenues increased $200,000 or 5.4% for the three months ended March 31, 2008, as compared to the corresponding prior year period due to a $500,000 increase in service revenue offset somewhat by a $300,000 decrease in license fees. Operating loss decreased to $1,752,000 for the three months ended March 31, 2008, as compared to $2,776,000 in the corresponding prior year period as a result of the reductions in operating expenses of $824,000 and higher sales revenue. Other expense, net, was $453,000 for the three months ended March 31, 2008, as compared to other income of $115,000 in the same period in 2007. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2008, are available for free at http://researcharchives.com/t/s?2d93 Going Concern Doubt As reported in the Troubled Company Reporter on April 25, 2008, Amper, Politziner, & Mattia, P.C., in Edison, N.J., expressed substantial doubt about AXS-One Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Dec. 31, 2007, and 2006. The auditing firm pointed to the company's losses from operations and working capital deficiency. The company has generated losses from operations of $1,752,000 for the three months ended March 31, 2008. Additionally, the company was not in compliance with its quarterly license revenue covenant as of March 31, 2008. The bank waived such violation and changed the covenants for future periods from a minimum license revenue covenant and minimum three month rolling net loss covenant to (a) a minimum three month rolling EBITDA covenant, (b) minimum cash and accounts receivable availability covenant and (c) a minimum equity infusion covenant of $500,000. The company also had a working capital deficiency of $3,316,000 as of March 31, 2008. About AXS-One Inc. Headquartered in Rutherford, N.J., AXS-One (OTC BB: AXSO) -- http://www.axsone.com/-- provides Records Compliance Management software solutions. The AXS-One Compliance Platform enables organizations to implement secure, scalable and enforceable policies that address records management for corporate governance, legal discovery and industry regulations such as SEC17a-4, NASD 3010, Sarbanes-Oxley, HIPAA, The Patriot Act and Gramm-Leach Bliley. AXS-One has offices worldwide including in the United States, Australia, Singapore, United Kingdom and South Africa. ********* 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. Marites M. Claro, Rousel Elaine C. Tumanda, Valerie C. Udtuhan, Marie Therese V. Profetana, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2008. 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 US$625 for 6 months delivered via e- mail. 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