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/raid1/www/Hosts/bankrupt/TCRAP_Public/000117.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 Monday, January 17, 2000, Vol. 3, No. 11 Headlines * C H I N A & H O N G K O N G * GUANGDONG ENTERPRISES: Bankers resigned to GDE agreement GUANGDONG INVESTMENT: Chief quits to take Sun Hung Kai post HONG KONG & SHANGHAI INSUR.: S&P lowers credit ratings ROYAL & SUN ALLIANCE: S&P lowers credit ratings * I N D O N E S I A * PT PERTAMINA: Wahid appoints new board * J A P A N * NISSAN DIESEL MOTOR CO.: To unveil restructure by month end OKAMOTO MACHINE TOOL WORKS: To slash 5.1B Yen debt in FY99 * K O R E A * DAEWOO CORP.: Chaebol eyeing Daewoo's construction unit DAEWOO MOTORS: May get fresh line of credit DAEWOO MOTORS: Ford Motor wants all passenger car ops DAEWOO MOTOR: Ford willing to assume some debt * M A L A Y S I A * CLOB INT'L.: Effective Cap extends CLOB plan closing date * P H I L I P P I N E S * BELLE CORP.: Ongpin seen mounting `proxy way' BENPRES HOLDINGS CORP.: Expects net profit after losses METROPOLITAN BANK AND TRUST: Credit downgrade non-impactful MINDANAO PORTLAND CEMENT: Bucks stockholders' receiver plea PHILIPPINE NAT. BANK: Tan expected to bid for gov't stake UNIVERSAL RIGHTFIELD PROPERTY: To raise new capital VICTORIAS MILLING CO.: 5 buyers show interest in purchasing * T H A I L A N D * KULTHORN KIRBY PLC: To present its rehab plan this week PHONEPOINT(THAILAND)CO.: TOT to sue for not repaying debts THAI OIL LTD.: Expects creditor vote on rehab in March THAI TEL.& TEL.: Submits debt plan to creditors TOTAL ACCESS COMMUNICATION: Coup as Boonchai ousts Poosana TOTAL ACCESS COMMUNICATION: Announces foreign alliance ============================== C H I N A & H O N G K O N G ============================== GUANGDONG ENTERPRISES: Bankers resigned to GDE agreement -------------------------------------------------------- Bankers yesterday expressed resignation to the fact that the restructuring agreement for Guangdong Enterprises (GDE) is the "best deal" possible. Further details have now been disclosed of the deal agreed in principle on 19 December between the Guangdong government and the 17 major creditors of GDE concerning the restructuring of the troubled group. The details were given in a document made available by the creditors' steering committee this week to the rest of the 126 creditors, who must approve the deal if it is to go ahead. It seems increasingly likely that creditors will accept that this is the best deal that they get under the circumstances. "The working group of banks believes this. There will be a financial contribution by the Guangdong provincial government and the proposed set of terms represents an improvement for financial creditors," said E M (Jake) Williams of Standard Chartered Bank, the chairman of the creditors' steering committee. "I think what has been proposed is a deal to keep both sides happy," according to Standard Chartered Bank executive director E Mervyn Davies. Other bankers said that if the negotiations dragged on much longer debt provisions would have to be raised and the GDE's asset values could depreciate. "From the point of view of negotiations, I think this is the most we can get from the Guangdong government," a banking source said. "From a financial and asset quality viewpoint, this deal is also a good one according to PricewaterhouseCoopers (PwC)." PwC is the financial adviser to the creditors. The following is a summary of the main terms of the deal: --Guangdong provincial government creates a new Hong Kong- registered subsidiary called GDH Ltd and transfers its shares of GDE into the company. --GDE acquires Macau-based Nam Yue (Holdings) Ltd for nominal consideration. Nam Yue's liabilities will be restructured as part of GDE's overall restructuring and Nam Yue will retain its Macau focus. --GDE sets up three new companies: NewCo to hold GDE and Nam Yue's operating businesses, PropertyCo to hold certain Hong Kong properties of GDE and Nam Yue, and TrustCo to hold most of the group's remaining assets. --Guangnan (Holdings) Ltd moves non-core businesses to an asset management subsidiary, GNAMC, leaving core food- related businesses and supermarkets as the principle assets and focus. --Guangnan raises HK$775 million in new equity through a 17 for 2 rights issue, 75 per cent of which is conditionally underwritten by GDH Ltd. --GDH Ltd will sell 81 per cent of a water company holding the Guangdong government's Dongshen Water Supply Business to Guangdong Investment Ltd (GDI) in return for 2.3 billion newly issued GDI shares, potential claims under profit guarantees, and other assets. --Around HK$4.5 billion of GDI direct and guaranteed debt will be rescheduled to carry a five-year repayment period with more than 40 per cent expected to be repaid by the end of the five-year period and the remaining refinanced. --GDI will raise HK$1.6 billion from a five-year asset sale program. (Hong Kong Standard 14-Jan-2000) GUANGDONG INVESTMENT: Chief quits to take Sun Hung Kai post ----------------------------------------------------------- Guangdong Investment (GDI) managing director Herbert Hui Ho-ming is leaving the debt-ridden company to join the Sun Hung Kai group, according to a reliable source. Mr Hui would oversee new business at the group, including information technology, the source said. Market sources said Mr Hui would become a managing director of one of Sun Hung Kai's subsidiaries and be in charge of new business other than property. The appointment would soon be announced by Sun Hung Kai, the sources added. Mr Hui yesterday refused to confirm the report. However, he admitted he had received several offers and would make a final decision soon. "Whichever company I choose it will be a company with an excellent track record," he said. The sources said Mr Hui, who is also a former deputy chief executive of the stock exchange, had been approached by a number of blue-chip companies and the exchange. Meanwhile, GDI yesterday announced that Mr Hui had resigned as managing director of the company and also from his directorships with its subsidiaries, including Guangdong Brewery Holdings and Guangdong Building Industries. Mr Hui's resignation will take effect tomorrow. His duties will be assumed by Kang Dian, now GDI executive deputy chairman. His departure came only a month after the Guangdong provincial government announced it had reached an in-principle agreement with the working group of creditor banks of GDI's parent company, Guangdong Enterprises (Holdings), on its debt-restructuring plan. "I wanted to see the company through the hard times and to see light at the end of the tunnel," Mr Hui said. (South China Morning Post 14-Jan-2000) HONG KONG & SHANGHAI INSUR.: S&P lowers credit ratings ------------------------------------------------------ Standard & Poor's (S&P) has lowered its credit ratings for Hong Kong & Shanghai Insurance due to poor underwriting results last year. S&P reduced its rating from BBBpi to BBpi. The rating was based on public information released by the company, it said. Hong Kong & Shanghai Insurance's rating was lowered to reflect the substantial deterioration in earnings in the year to June 30. The insurer's operating ratio to income was 117% last year, compared with 90% in the previous year. Hong Kong & Shanghai Insurance also had low reserves, although its investment profile was very good, S&P said. ROYAL & SUN ALLIANCE: S&P lowers credit ratings ----------------------------------------------- Standard & Poor's (S&P) has lowered its credit ratings for Royal & Sun Alliance (HK) due to poor underwriting results last year. S&P reduced its rating from BBBpi to BBpi. The rating was based on public information released by the company, it said. Royal & Sun Alliance (HK) saw its rating down-graded due to deterioration in its operating performance. It recorded a loss of $44M and a capital reduction of 28% to $124M last year. ================= I N D O N E S I A ================= PT PERTAMINA: Wahid appoints new board -------------------------------------- Indonesian President Abdurrahman Wahid yesterday installed a new board of commissioners for the state oil company PT Pertamina and said a further shakeup of Pertamina top executives would follow. Wahid named Mines and Energy Minister General Susilo Bambang Yudhoyono as chairman of the board of commissioners, palace officials said. Finance Minister Bambang Sudibyo was named deputy chairman while the members of the board included Coordinating Minister for the Economy, Finance and Industry Kwik Kian Gie, and Legal Affairs Minister Yusril Mahendra. Yudhoyono, speaking after his installation, said his first priority as the new president commissioner would be to replace its current president director, Martiono Hadianto. "The first priority is to find a candidate for the president director of Pertamina to replace the current one," Yudhoyono said at the state palace. "Other issues on the agenda are to put in place general policies to restructure Pertamina so that it is efficient and productive." He said the aim of the restructuring was to implement the findings of a recent audit by international consultancy PricewaterhouseCoopers, which found that Pertamina had lost some four billion dollars due to "inefficiency." They should "have a strategy or a concept for facing the international oil cartel with the principal of making a profit", Wahid said. Export earnings from Indonesia's natural gas and crude oil amounted to some 7.2 billion dollars or 15 percent of total export earnings last fiscal year. (Business Day 14-Jan- 2000) ========= J A P A N ========= NISSAN DIESEL MOTOR CO.: To unveil restructure by month end ----------------------------------------------------------- Nissan Motor Co. expects to be able to announce restructuring steps for its struggling Nissan Diesel Motor Co. affiliate by the end of January, Carlos Ghosn, Nissan's chief executive, said at a news conference at the north American International Auto Show here. Mr. Ghosn didn't discuss specifics, but he said that "within a matter of weeks" he will have worked out a plan "to fix once and for all" the heavy-truck unit's problems. Nissan entertained various suitors for Nissan Diesel in the past couple of years, including Daimler Chrysler AG. But, Mr. Ghosn acknowledged, the unit's heavy debt load "is seen as repellent." When asked whether Nissan Diesel might join in a bus-making venture with Japan's Isuzu Motors Ltd. and Hino Motors Ltd., as has been reported in Japan, Mr. Ghosn wouldn't comment. "We are not looking at making a combination," Mr. Ghosn said. "Some have voiced interest in an acquisition, but I can say that there have been no official contacts. We are concentrating on cleaning it up." After that, he said, Nissan will consider various options, including selling the unit. Separately, Mr. Ghosn said Nissan is studying the subject of creating an electronic marketplace for auto parts using the World Wide Web, much as General Motors Corp. and Ford Motor Co. have done. He said Nissan has met with Oracle Corp. and has been approached by another vendor. If Nissan does proceed to set up such a network, Mr. Ghosn said, it would most likely add France's Renault SA to the system. Renault holds a controlling interest in Nissan. Mr. Ghosn said that Renault's bid for automotive assets in South Korea of Samsung Motor Co. doesn't involve Nissan, even though Nissan helped set up the Samsung factory and provided technology for the Korean company's cars. "If this goes through, this will be a Renault deal," Mr. Ghosn declared, although he said Nissan will provide technical assistance. Mr. Ghosn also said Nissan still wants to sell its 4% holding in Fuji Heavy Industries Ltd., the Japanese auto maker in which GM recently acquired a 20% interest. He said Nissan hasn't sold yet because "this is not a fire sale. we will take our time to get the right price." In a separate interview, Jed Connelly, the vice president and general manager of the Japanese company's Nissan marketing group in the U.S., told Dow Jones Newswires that Nissan's profitability in the U.S. will be "significantly better" in the current fiscal year, ending March 30, than in the prior fiscal year. Mr. Connelly said sales of the new version of the small Sentra sedan, which is being unveiled Tuesday, are likely to exceed 100,000 units this year, compared with last year's sale of the discontinued version of the car of around 50,000. (The Asian Wall Street Journal 13-Jan-2000) OKAMOTO MACHINE TOOL WORKS: To slash 5.1B Yen debt in FY99 ---------------------------------------------------------- Okamoto Machine Tool Works Ltd. (6125) aims to cut interest-bearing liabilities 5.1 billion yen from the March 1999 level to 15.1 billion yen by March 31. At the end of the last fiscal year, Okamoto Machine reported interest-bearing liabilities totaling 20.2 billion yen, an amount equivalent to 1.3 times annual sales. The company has already reduced debt by 2.1 billion yen in the first half of fiscal 1999 by closing time deposit accounts and selling securities. It plans to sell an idle property in Gunma Prefecture and its Yokohama headquarters by March. It will use most of the 2.1 billion yen that it hopes to generate from those sales to repay more loans. It will also use the funds repaid to it by a subsidiary to further reduce debt. (Nikkei 14-Jan- 2000) ========= K O R E A ========= DAEWOO CORP.: Chaebol eyeing Daewoo's construction unit ------------------------------------------------------- Major Korean business groups have apparently shown interest in acquiring the construction division of the ailing Daewoo Corp., the nation's second largest after Hyundai Engineering and Construction Co. Sources said yesterday that major construction companies affiliated with the nation's largest business conglomerates have requested information on the Daewoo Corp. unit, either through the government or Daewoo officials. "Currently Hanwha and Samsung have shown the most interest," a Daewoo official said. Hanwha, built around explosives manufacturing, has a weak construction division. Its chairman Kim Seung-yeon is personally looking over an acquisition, said the Daewoo official. If Samsung should acquire Daewoo's construction, it would pose a serious threat to Hyundai's dominance in the market. The Daewoo official added that Pohang Iron and Steel Co., LG, sand SK groups also appeared interested in the construction unit. Industry watchers attributed the interest in the Daewoo unit to the fact that major downsizing burdens have passed, while the unit possesses both profitability and construction hardware worthy of its ranking. "We expect a sale by October of this year," the Daewoo official said. "Competition to acquire the construction arm will begin after it is spun off from Daewoo Corp." (Korea Herald 14-Jan-2000) DAEWOO MOTORS: May get fresh line of credit ------------------------------------------- Korea Development Bank plans to provide Daewoo Motor Co. with 114 billion won ($99.6 million) of credit to help it finance foreign trading deals, Yonhap news Agency reported. South Korea's government-run bank is providing the new credit to help debt-laden Daewoo Group's car-making unit get trade bills discounted and open import letters of credit, according to Yonhap. Korea Development officials weren't available for comment. The bank is Daewoo Motor's lead creditor. One of South Korea's top three auto makers, Daewoo Motor is among the 12 Daewoo Group companies which domestic creditors put under a debt-restructuring program in late August. Korea Development Bank has said domestic creditors wanted to sell the auto maker through a limited auction and select a buyer by the end of June this year. Meanwhile, final results of a due diligence study of 12 Daewoo Group affiliates showed their liabilities totaled 89 trillion won, higher than an interim figure published in November, South Korea's Financial Commission said Wednesday. The commission said in a report to the National Assembly that the figure topped the interim total of 86.8 trillion won and the firms' own tally of 77.8 trillion won. Financial troubles at what was the country's second-largest business conglomerate surfaced in the middle of last year and its domestic creditors put 12 of the group's affiliates under debt-restructuring programs in August. (The Asian Wall Street Journal 13-Jan-2000) DAEWOO MOTORS: Ford Motor wants all passenger car ops ----------------------------------------------------- Ford Motor Co. officially expressed its wish to take over Daewoo Motor's entire passenger car operations, intensifying the competition for control of Korea's No.2 automaker. "Ford is interested in acquiring the Daewoo Group's passenger car operations in and outside Korea. We're looking at all pieces of Daewoo Motor, including affiliated Ssangyong Motor, as one piece," said Wayne Booker, vice chairman of Ford Motor in a meeting with Korean reporters at Ford's World Headquarters in this city Wednesday. Booker said Ford is willing to assume part of Daewoo Motor's debt to stand a better chance of winning the takeover battle. Yet he declined to reveal the amount of liabilities to be covered by Ford, opting instead to say the value would be finalized through further due diligence. "The debt assumption issue will be resolved on the basis of an in-depth analysis of the company's future cash flows." Commenting on the rumors circulating in the media concerning a possible partnership with Hyundai Motor for the Daewoo carmaker takeover, the top Ford executive said all options remain open. "Ford is in the early stage in reviewing all options, including a consortium with a Korean carmaker, like Hyundai," said Booker. "Whether Ford forms a consortium or goes it alone will depend on the consensus of the Korean government, creditors and people on the settlement of the Daewoo issue." Ford and Hyundai have a long-standing relationship through auto-parts supplies but have not held discussions on forming a consortium as yet, he added. Ford Motor director, Paul Drenkow, is thought to have delivered the firm's wish to form a consortium with a Korean automaker to officials during a visit to Seoul last week. Meanwhile, a Hyundai Motor executive told the Wall Street Journal that the No.1 Korean carmaker was in partnership talks with an unidentified foreign firm. On the question of whether Ford is interested in partial equity stake in Daewoo or full management rights, the vice chairman responded somewhat ambiguously by saying that the resulting company must be able to support Ford's Asian strategy. Similarly, on other aspects of Ford's proposed bid for Daewoo, such as employment guarantees, parts suppliers and targeted equity stake, his comments were less than revealing. "Few things have been concluded with regard to Ford's bidding for Daewoo. But Ford is determined to make Daewoo a world-class automaker," he said, adding that the name of Daewoo will be maintained. "Ford will also be very conscious of Koreans' sentiments toward possible foreign control of a major industrial firm." He strongly denied the speculation, however, that Ford's bid is an attempt to make rival General Motors Corp. pay a higher price for the Korean carmaker. Throughout the news conference, Booker attempted to stay clear of making inflammatory comments and suggested that Ford's eventual withdrawal from the Daewoo race is an option, if the acquisition of the Korean carmaker would weaken the U.S. firm's international competitiveness. Top executives at rival General Motors, meanwhile, said in a news conference on the sidelines of the North America International Auto Show, that the company will bid for Daewoo Motor independently, instead of forming an alliance with a Korean partner. GM officials also unveiled plans to list Daewoo Motor on the Korea Stock Exchange in the event of a successful takeover. (Korea Herald 14-Jan-2000) DAEWOO MOTOR: Ford willing to assume some debt ---------------------------------------------- Ford Motor yesterday said that it is willing to take on parts of Daewoo Motor's debts that were estimated at 18 trillion won in a creditors-initiated due diligence last year, in an effort to overcome its late start in a looming "bidding" war with its rival General Motors. During a press conference with Korean reporters held at Ford's headquarters, Wayne Booker, vice chairman, said, "We are willing to accept the debt structure (of Daewoo Motor) that can be supported by the future cash flow." He didn't specify the amount of debts it would assume saying it is too early to tell. Reports state that GM first showed a reluctance to assume any of Daewoo Motor's debts, intending to take over the Korean auto maker's estimated 12 trillion won in assets for a price between 6 to 7 trillion won. The company recently changed its tack, telling Korean creditors of Daewoo Motor it would take over some of its debts. Booker also made it clear that Ford would bid for all operations of Daewoo Motor, most likely including Ssangyong Motors, an affiliate of Daewoo Motor, when he said, "We look at all pieces of Daewoo Motor as one piece. If we end up with an interest in Daewoo, it would be for the total operations of Daewoo both domestic and international." Referring to the formation of a consortium with a Korean company Ford is said to be favoring, the executive said there have been no discussions with Hyundai Motor but, "We have not closed any options." Some insiders speculate that Hyundai is virtually the only consortium partner available with Samsung Motors, a debt- laden subsidiary of the group which is set to be sold. Some insiders said it is possible the two companies will make a joint announcement for partnership at a motor show in Chicago next month. The Ford vice chairman said it intends to keep the brand name of Daewoo Motor even if it takes over. "Obviously, if we become involved, we will have to be able to develop a global strategy by which both Ford and Daewoo would be stronger." Asked whether Ford is willing to settle for less than a controlling stake, Booker said it is determining what effects foreign ownership of Daewoo Motor would entail in terms of public opinion. "I can make a general observation that any solution on the Daewoo Motor issue should have the acceptance of union, suppliers and the government," he said. He was quite optimistic about meeting the schedule on Daewoo Motor's sale in which the government will select a priority negotiator by March and seal the deal by June. "We have no control but we will respond to whatever schedule the Korean creditor banks and the government would set," he said. But he added that the present time schedule is not final, indicating that it might seek an extension. Presently, Ford is sending a team to conduct a due diligence but many experts believe there is so little time left that Ford may ask for more time. General Motors spent two years conducting a due diligence on Daewoo Motor. (Korea Times 13-Jan-2000) =============== M A L A Y S I A =============== CLOB INT'L.: Effective Cap extends CLOB plan closing date --------------------------------------------------------- Effective Capital Sdn. Bhd. of Malaysia said it has extended the closing date for its proposal to free the frozen Malaysian shares once traded on Singapore's Central Limit Order Book, or CLOB, system, by about three weeks to Feb. 22. In its statement, Effective Capital said the closing date for its Irrevocable Request and Authority proposal has been extended to Feb. 22, from Jan. 31. (The Asian Wall Street Journal 13-Jan-2000) ===================== P H I L I P P I N E S ===================== BELLE CORP.: Ongpin seen mounting `proxy way' --------------------------------------------- Businessman Roberto Ongpin vowed yesterday to mount a proxy fight against the group of stockbroker Benito Tan Guat for control of property and gaming firm Belle Corp. Ongpin said in an interview that he has not given up on retaking control of Belle even if he has set his sights on taking over South Seas Natural Resources and transforming it into an Internet company. "I am not giving up on Belle. It does not mean that just because I am putting up this thing that I have given up on Belle. I am mounting a proxy fight and see who the shareholders really want," Ongpin said. Ongpin and longtime partner Jaime Gonzalez were booted out of the board of Belle last year by a group led by Tan Guat and his son, Willy Ocier. They were eased out after major shareholders expressed dissatisfaction over how the company was being run. The ouster led to the filing of a case with the Securities and Exchange Commission, which sought the nullification of the stockholders meeting. Ongpin, however, said the performance of Belle went downhill since his group was ousted from the board as seen in the decline in the stock prices of Belle, which slid from about P4.20 in July last year to the current market price hovering at P1.80 per share. "I wish them the best of luck because my money is still there. What happened is hurting me because my group is still a major investor. I am mounting the proxy fight because what they did was not right," Ongpin said. Ongpin said his group would continue to fight for Belle even although what happened was "a blessing in disguise" as it forced him to look at other ventures such as the Internet. "The Internet would revolutionize the way we do everything. It is the second industrial revolution. Probably the only thing it would not change is the way we make love," Ongpin said. Ongpin's group has raised some P600 million to take control of dormant mining firm SSO. Negotiations for the buy in were expected to be finalized by Tuesday, when SSO stockholders meet to change its corporate name to PhilWeb and the company's thrust from mining to online business. Ongpin disclosed that his group has taken in Hong Kong- based Phoenix Networks Inc., a subsidiary of AsiaSat, the largest satellite company in the region, as a partner. Ongpin said PhilWeb would be the country's first listed integrated Internet company that would provide access to the Internet as well as other services such as business solutions and e-ventures. "We want to be the leading edge internet company," Ongpin said. (Philippine Daily Inquirer 14-Jan-2000) BENPRES HOLDINGS CORP.: Expects net profit after losses ------------------------------------------------------- Benpres Holdings Corp. (BPC) expects to make profit this year despite covering for losses in the cellular business. BPC said losses of between P2 billion and P2.4 billion will be reflected in the books of 1999 due to capital losses of Bayantel Holdings Corp. in Express Telecommunications Co. amounting to P4.715 billion. Benpres owns 46.39 percent of BayanTel. This, however, will not be enough to drag the company's earnings as it sees at least a 42 percent gain in income for 1999 compared to P1.4 billion in earnings in 1998. BPS said 1999 was a bad year with the crisis. It expects to book at least a 40 percent gain this year from the proceeds of the PCI Bank sale and the Philippine Deposit Receipts (PDR) offering. It said the main drivers for growth would be the communication unit and power but the good performance is being offset by weakness in the telecom sector. To provide for the loss, the BPC will tap into its P4.5 billion cash reserve largely from the sale of its stake in PCI Bank. BPC said its 30 percent stake in the bank to Equitable Banking Corp. With the divestment, as well as improved earnings from its media unit, ABS-CBN Broadcasting Corp. the company's net income for the first nine months of 1999 grew to P4.48 billion. However, BPC will not desert its fixed-line unit despite burdened by higher financing charges and weak returns from Extelcom. Extelcom may be cut off from further cash assistance by BPC although the holding firm will not withdraw non-cash assistance such as the use of facilities. Earlier, BayanTel stopped further infusion into Extelcom and considered plans to pursue its own cellular application. BayanTel holds 46 percent of Extelcom through affiliate holding company Marifil Holdings. Extelcom experienced downfall after a management dispute shook the company. Even with the new management, the mobile company is having difficulty regaining lost market position as it has been overtaken by other cellular firms like Smart Communications, Inc. and Globe Telecom. (Balita News 13- Jan-2000) METROPOLITAN BANK AND TRUST: Credit downgrade non-impactful ----------------------------------------------------------- Bargain hunters nudged up Metropolitan Bank and Trust Co.'s (Metrobank) share price at the Philippine Stock Exchange (PSE) yesterday, ignoring its downgraded credit ratings by two international agencies. Metrobank's share price closed at 265 Philippine pesos (PhP) apiece at the PSE, up from PhP262.50 the other day. The bank's share price rose despite a downgrade to "negative" from "stable" by Moody's Investor Service. The New York-based ratings firm criticized the bank's recent moves to buy smaller banks and increase its asset size. It said the acquired banks would have "marginal" contributions to Metrobank's bottom line, and would only increase its risk exposure because of their poor asset quality. Metrobank recently bought a 51% stake in Solidbank Corp., while its commercial banking arm -- Global Business Bank -- purchased AsianBank Corp. and The Philippine Banking Corp. Standard and Poor's Corp. also downgraded Metrobank, lowering the bank's public information (pi) rating to a single "bpi" from a double "bpi", previously. Like Moody's, S&P cited Metrobank's recent acquisitions, which it said has heightened the bank's risk profile. But local banking analysts said investors yesterday did not ignore the recent downgrade, but had already anticipated it. "The expectation this year is we're not going to see a recovery of the banking sector in a big way," one analyst at a local brokerage firm said. The analyst said the ratings downgrades reflected concerns over Metrobank's short- to medium-term profitability, but noted the banking sector as a whole is not expected to post a strong recovery this year. Thus, investors taking a long-term view would find Metrobank an attractive buy, even if prospects for higher profitability this year remain cloudy. Orion Squire Capital analyst Rodel Domdom said investors taking a long-term view may have snapped up Metrobank shares as part of "bargain hunting". "Investors ignored the downgrade They were looking more at Metrobank's long-term prospects," Mr. Domdom said. He added that some brokerages are advising investors to buy Metrobank shares in case of any weakness, since Metrobank will likely benefit from any recovery in the stock market. Another analyst said there is a "speculative angle" to Metrobank right now, making it attractive to investors with a higher appetite for risk. While a 51% stake allows Metrobank to include Solidbank's assets in its consolidated financial position, it won't be able to merge it into its operations until it secures an agreement from Canada-based Bank of Nova Scotia, which owns 40% of Solidbank. To conclude a merger, Metrobank needs to control two-thirds of Solidbank. The analyst said uncertainty over a future merger with Solidbank is fuelling some speculative interest in Metrobank's shares. Meanwhile, talk continues to persist that Metrobank's next acquisition target is the Aboitiz-controlled Union Bank of the Philippines (Unionbank). George S.K. Ty's bank has said it remains open to further acquisitions even after it has gobbled up three banks in less than a year. Metrobank earlier lost out to Equitable Banking Corp. in its bid for PCIBank and to rival Ayala-controlled Bank of the Philippine Islands (BPI) in its bid for Far East Bank and Trust Co. (FEBTC). Though he did not close Metrobank's doors to further acquisitions, Metrobank president Antonio S. Abacan, Jr. said the Metrobank Group will have to "put everything first in the right perspective" or complete the mergers of Philbank, AsianBank and Globalbank and Metrobank and Solidbank, before it pursues other banks. When asked if Metrobank is interested in Unionbank, Mr. Abacan said, "I'm not saying we are not interested... But we have to put everything first in the right perspective." Mr. Abacan, however, flatly said Metrobank is not interested in semiprivate Philippine National Bank. Mr. Abacan also said profits for 1999 would be lower than earnings in 1998. However, he said the bank has maintained a "comfortable" level of return on equity. (Business World 14-Jan-2000) MINDANAO PORTLAND CEMENT: Bucks stockholders' receiver plea ----------------------------------------------------------- The Mindanao Portland Cement Corp. (MPCC) is opposing the move of its stockholders to have the Securities and Exchange Commission (SEC) appoint a management or receiver committee to take over the operations of the cement company. Through legal counsels ACCRA Law Offices, MPCC asked the SEC to deny the stocholders' petition, saying there is no basis for the SEC to create a receive and that the requirements for the appointment of a receiver do not exist. For one, there is no property or fund which is the subject of the action and which is in danger of being lost. Rather, the case is limited to the validity of the increase of capital stock. Also, the stockholders' assertion of mismanagement "have no factual basis and are mere speculations, surmises and wrong conclusions." MPCC maintained it was management's prerogative to temporarily suspend its cement manufacturing operations in Iligan City, in view of the poor economic and market conditions. It however, continues to run its business by buying cement from other suppliers at prices lower than their own manufacturing costs and supplies them to its customers. Moreover, Zeus Holdings Inc., contrary to stockholders' claims, is a valid stockholder of the company. MPCC said that Zeus already invested P1.198 billion, making it a majority stockholder, representing 99.63 percent of MPCC's outstanding capital stock. MPCC shareholders led by Vicente Ponce said a receiver group is needed to prevent the company from issuing shares of stock taken from the unauthorized increase in its capital stock from P20 million to P2 billion. Ponce said the receiver group will temporarily replace the board members who will have to step down pending the holding of a new stockholders meeting. Earlier, the SEC stopped MPCC from registering any subscription agreement forming part of the increase in the capital stock. MPCC was told to maintain the status quo of the entries in the present stock and transfer book of MPCC until such time as the case is decided with finality. (The Philippine Star 14-Jan-2000) PHILIPPINE NAT. BANK: Tan expected to bid for gov't stake --------------------------------------------------------- Tobacco and beer magnate Lucio Tan will likely end up boosting his stake in semi-private Philippine National Bank (PNB) when the government fully divests by the second quarter of this year. "In all likelihood, he will bid for the government's remaining stake in PNB," a ranking industry source yesterday told BusinessWorld. "After all, that's what everybody is expecting anyway." The source said Mr. Tan is waiting only for the final terms of the privatization before fully committing to acquire a majority in the bank. Last year, he acquired a substantial stake in PNB -- reportedly at 35%, entitling him to five board seats -- primarily through the bank's 9.47-billion Philippine peso (PhP) ($0.234-billion at PhP40.509 = $1) stock rights offering. Mr. Tan was said to be the same party who scooped up the 15.6% stake which the government forfeited when it passed the chance to subscribe to the rights offering. The rights offer was priced at PhP137.86 ($3.40), a hefty premium over the prevailing price on the stock market when the new shares were offered. Both Bangko Sentral (Central Bank) Gov. Rafael B. Buenaventura and former Finance Secretary Edgardo B. Espiritu have defended Mr. Tan's actions, saying his buying price was a bold move at a time when investors were shunning the issue. The source noted, however, that the government is still "running" PNB and behaving like a "majority shareholder, even though it only has a minority stake." "Now, everyone is complaining that the government will not be able to maximize its selling price on PNB," he noted. "The time to maximize on the price was in 1996, when its sold off a portion of its stake." The source said 1996 was the height of the regional bull market and the government would have netted a better price had it decided to completely privatize PNB, instead of holding on to 30%. "They should have sold the whole block if they wanted the best price." By selling only a portion of its holdings, the government lost the inherent leverage afforded by its previously large stake in the bank. "At this point," he said, "the options available to the government are already limited." The government earlier said it was compelled to retain a 30% stake in the bank because of a negative covenant in its $200 million floating rate certificate of deposit (FRCD) issued by the bank earlier. The negative covenant said investors in the FRCD could redeem the instruments anytime before maturity if the government's stake in the bank were to fall below 30%. "That's a weak excuse," the source argued. "They should have pre-terminated and paid off the FRCD issue at that time, and then privatized the whole government holdings," he added. "After all, PNB had lots of dollar assets." The source said Mr. Tan will likely bid for the government's remaining stake through an open-market bidding, after the Department of Finance receives the report of international audit firm Price Waterhouse Coopers within the first half of the year. The other night, Mr. Tan met with Mr. Buenaventura and Finance Secretary Jose T. Pardo, reportedly to clarify the new Finance chief's policies regarding the privatization of PNB. Buenaventura, in a talk with newsmen after Tan's visit, admitted that they assured Tan that the government will proceed with PNB's privatization as scheduled. "It will have to be a transparent open bidding. That's what we told him (Tan)... there are no other alternatives," Buenaventura said. (Business World, Philippine Star 14- Jan-2000) UNIVERSAL RIGHTFIELD PROPERTY: To raise new capital --------------------------------------------------- Universal Rightfield Property Holdings Inc., one of the property developers hit hard by the 1997-98 Asian currency crisis, is seeking some P1.55 billion from new investors for its much-needed corporate restructuring. In a disclosure to the Philippine Stock Exchange, Universal Rightfield assistant corporate secretary Ma. Louisa Gonzales said the company's board of directors approved on Jan. 12 an increase in capital stock from P750 million to P2.3 billion to generate new shares and raise fresh capital from new investors. But to eliminate the corporation's accumulated deficit, the authorized capital stock will first be trimmed from P3 billion divided into 3 billion shares with a par value of P1 to P750 million divided into 750 million shares with a par value of P1. Universal Rightfield shares stood unchanged at P0.27 at the Philippine Stock Exchange yesterday. In line with its capital restructuring, the company also resolved to make a call on all unpaid subscribers to settle their obligations and set the deadline on March 13. Universal Rightfield had suffered from a sharp decline in sales due to the real estate slump since the onset of the Asian turmoil. This was further aggravated by the reluctance of its creditors to extend a credit line to the company. Universal Rightfield is involved principally in property development, targeting the middle and upper class segment of the market. The company holds a 19.25-percent stake in a joint-venture project with DMCI-Project Developers Inc. and Itochu Corp. of Japan for the development of a 21- hectare property in Cavite into a residential complex. Universal Rightfield also maintains a minority stake in the Canlubang Plantation Estates in Laguna and the Batulao Woodlands in Batangas. The company's stockholders earlier approved the reclassification of 843.1 million unissued common shares to preferred shares. The move formed part of Universal Rightfield's efforts to get a strategic partner and raise fresh capital for its operations. Three companies were earlier reported to have expressed interest in acquiring a stake in Universal Rightfield. Metro Pacific Corp. was reported to be among these firms but negotiations with the investment firm bogged down. (Philippine Daily Inquirer 14-Jan-2000) VICTORIAS MILLING CO.: 5 buyers show interest in purchasing ----------------------------------------------------------- Five big groups, including the Gokongwei and Yuchengco conglomerates, have formally expressed interest to take over cash-strapped Victorias Milling Corp., the country's largest sugar mill whose majority control will be auctioned off on March 20. Entities that submitted their letters of intent were listed firms JG Summit Holdings, Inc., and Alliance Global Group, Inc. (AGGI); agribusiness firms Cargill Philippines, Inc. and Binalbagan Isabela Sugar Co. (Biscom); and the Yuchengco's RCBC Capital Corp., VMC management committee chairman and Equitable PCI Bank executive vice-president Isidro C. Alcantara, Jr. said. BusinessWorld earlier reported that Chinese-Filipino tycoon John Gokongwei, Jr., who owns the majority of JG Summit, parent firm of food company Universal Robina Corp., will make a bid for 53.35% of VMC. The taipan also controls three sugar mills which account for 20% of the country's total sugar milling capacity. AGGI, meanwhile, is 35%-owned by George Yang's Yorkshire Holdings, Inc. Mr. Yang is the franchise holder of McDonald's Philippines. AGGI manufactures glass containers for food and beverage products including Pepsi-Cola, Cosmos, Pop Cola, Ginebra and Datu Puti. Last year, the holding firm authorized its management to tap the international equity market so it could expand its glassmaking business and acquire companies engaged in the food and beverage business. A subsidiary of Cargill USA, Cargill Philippines, Inc. is a multinational firm engaged in coconut oil production, seed production, research and commodity trading. Biscom is owned by sugar baron and singer Jose Mari Chan. RCBC Capital Corp., on the other hand, is a subsidiary of Rizal Commercial Banking Corp. Aside from banking and insurance, the Yuchengcos diverse interests under holding firm House of Investments, Inc. include memorial parks, agriculture and aquaculture, construction and development, manufacturing and trading and export. On March 20, creditor banks of the debt-ridden sugar mill will auction off 567 million new VMC shares that will raise 567 million Philippine pesos (US$14 million at PhP40.509:US$1) in fresh capital for the firm. The winning bidder, which will infuse the needed PhP567-million equity in VMC, will secure a controlling 53.35% majority stake in the firm, thus leaving existing shareholders with a minority stake. "It's a good sign. But we don't know whether they will actually join the bidding or not. Remember that this is just an expression of interest," the source said. "They've been issued the guidelines and their application will be evaluated until the end of the month." VMC has PhP3.2 billion ($78.9 million) in unsecured loans and PhP1.3 billion ($32 million) in secured loans. Mr. Alcantara said all five companies "have the resources" for the purchase of VMC. Though the interested parties have to go through the pre-qualification process, he said all of them are qualified. However, when asked if there will be a successful bidding, he said, "we shall see what we shall see." The five bidders have until the end of the month to submit pre-qualification documents. The mancom will announce the list of qualified bidders on February 3. Pre-qualified investors will be given the chance to conduct a due diligence review from February 4 up to March 3, upon payment of PhP50,000 ($1,200) in due diligence fee. The schedule for the submission of all bid documents is on March 10 to 17. By March 20, the bidding date, at least 10% of the base price of the VMC shares to be auctioned off should be deposited in an escrow account with any of the accredited banks, the VMC mancom said. "The bidding committee shall select the winning bid and furnish a notice of award to the winning bidder. However, if there is a failure in the bidding, a notice of failure of bid shall be issued by the bidding committee," the mancom added. VMC had filed a petition for the suspension of debt payments with the SEC in early 1997, saying its operations were impaired by the country's over-importation of cheap sugar. This was henceforth aggravated by the difficult economic environment brought about by the currency crisis. After the bidding, the main components of the original rehab plan will still be pursued by the mancom. Among others, the plan calls for the reduction of the par value of existing share to P1 per share but at the same time, the issuance of 2.9 shares for every existing share to be able to raise the P567 million additional capital needed by VMC. VMC is saddled with more than P5 billion in debts, of which around P1.5 billion will be converted into equity by the banks. Its issuance of new shares will bring its total number of shares to 1.06 million, resulting in the original sharing of percentage control at 46.5 percent to the old shareholders and 53.5 percent to the new shareholders. The creditor-banks have agreed to convert a portion of VMC's debts into equity and restructure the remaining liabilities for a period of 15 years provided a viable rehabilitation plan could be implemented. If there is a winning bidder, the said party will have until March 30 to pay and deposit the remaining balance of the bid offer in the escrow account. On April 5, the winning bidder will execute the subscription agreement, restructuring agreement and memorandum of agreement with VMC. (Business World, Philippine Daily Inquirer 14-Jan- 2000) =============== T H A I L A N D =============== KULTHORN KIRBY PLC: To present its rehab plan this week ------------------------------------------------------- Kulthorn Kirby Public Co., Ltd. and Siam City M.B.Co.,Ltd., KKC's financial advisor, has reported to the Stock Exchange of Thailand that it has arranged for a presentation of the company's rehabilitation plan to analysts on 20 January, 2000, at 10 a.m. at the Srinakarin Room 2, The Royal Princess, Srinakarin. (Stock Exchange of Thailand 14-Jan- 2000) PHONEPOINT(THAILAND)CO.: TOT to sue for not repaying debts ---------------------------------------------------------- The Telephone Organisation of Thailand's (TOT) board of directors yesterday approved the filing of a lawsuit against the defunct Phonepoint (Thailand) Co Ltd, a one-way cordless telephone service operator, for reneging on a Bt85.45-million debt repayment. Earlier, the arbitration committee had ruled on the dispute by asking Phonepoint to give the state agency assets worth Bt319 million and pay compensation of Bt95 million. Neither of these debts have yet been paid. Phonepoint shut down its operations five years ago. (The Nation 14-Jan-2000) THAI OIL LTD.: Expects creditor vote on rehab in March ------------------------------------------------------ Thai Oil Ltd. said it expects a full creditor vote on its $2.25 billion debt-restructuring plan in early March. The unlisted company, Thailand's largest oil refiner, entered bankruptcy court proceedings Monday, after it was unable to reach unanimous creditor approval under the central bank's out-or-court debt restructuring framework, said Thai Oil's managing director, Chulchit Bunyaketu. (The Asian Wall Street Journal 14-Jan-2000) THAI TEL.& TEL.: Submits debt plan to creditors ----------------------------------------------- Thai Telephone and Telecommunication (TT&T) yesterday submitted its plan to restructure debts worth 3.2 billion baht to its creditors for review and consideration before the lenders cast their votes on the proposal at a meeting scheduled for January 16. Sources from TT&T creditor banks told Business Day that TT&T's debt restructuring plan stands a good chance of being approved by the creditors after slight changes and additions. The plan will be also be submitted to the Bank of Thailand (BOT), and the final agreement is expected to be reached within February, the sources said. The sources added the debt restructuring deal had taken a long time up to now because there were significant areas of disagreements, adding that TT&T's difficulties in finding new strategic partners had also prolonged the delay in getting a debt restructuring process on the road. Creditors are expected to give more time to TT&T to find new partners after the debt restructuring plan is approved by the creditors, the sources said. TT&T has indicated in its debt restructuring plan its strategy to swap debt for equity and to ask creditors to write off unpaid interest on the loans they extended. TT&T has a total debt of 4.0 billion baht, but the amount to be restructured is 3.2 billion baht, involving 20 large creditors. Among the creditors are the Thai Farmers Bank, Krung Thai Bank, and the Thai Bank. Meanwhile, TT&T Managing Director Thongchat Honladarom annouced that the company is intending to raise 5-6 billion baht in new capital as part of the debt restructuring plan that the company expects to complete within the first quarter of this year. Thongchat said the debt-to- equity swap will involve common shares as well as convertable debentures. With the bearish stock market, it is doubtful TT&T could succeed with a new share offering. Even Total Access Communication Plc, whose financial position is healthier than TT&T, has not found a strategic partner over the past two years. However, the source quoted an unnamed TT&T executive as saying the telephone company is negotiating with a possible strategic partner and expects to reach an agreement before Feb 16, when the company's creditors meet to vote on the debt restructuring plan. The source would not reveal the name of the proposed strategic partner or the amount of planned recapitalisation. Thai Farmers Bank, Krung Thai Bank, and BankThai are the firm's largest domestic creditors. Credit Agricole, Indo- Suez, Swedish Bank SE, and Sumitomo Bank of Japan are the largest foreign creditors. Alcatel and Ericsson are major supplier creditors. Jasmine International Plc, Thai Farmers Bank (transferred TT&T shares from the now-defunct Phatra Thanakit Plc) and Loxley Plc are the provincial fixed-line operator's major shareholders. TT&T suffers from a sharp decline in revenues because of the recession, fierce competition with mobile phone companies and an unusually high royalty fee. It must pay as much as 43.1 per cent of revenues per annum to the Telephone Organisation of Thailand -- the highest fee among the telecommunications concessionaires. In 1999, TT&T had an interest payment burden of 2.8 billion baht. However, if the debt-restructuring plan is successful, the company will be able to lessen this interest burden by about 30 percent. (Business Day, The Nation 14-Jan-2000) TOTAL ACCESS COMMUNICATION: Coup as Boonchai ousts Poosana ---------------------------------------------------------- Boonchai Bencharongkul, co-founder of the second-largest mobile phone operator, Total Access Communication (TAC), took over the managing director's post yesterday in a surprise bid to take control of the company and end a prolonged management conflict. In a sudden move, the TAC board yesterday passed a resolution to appoint Boonchai, a chairman of the TAC board, as managing director in place of Mustapha Mun-gna. The appointment is a temporary one, until TAC appoints another managing director. The TAC board also appointed Mustapha as deputy chief executive officer and ordered a corporate shake-up which affected the clique of Poosana Preemanoch, the other founder of TAC and the company's most influential figure. Poosana himself was sacked from the post of marketing director but has been allowed to retain his seat as honorary adviser. "Poosana's role will be reduced to giving advice to the company, not formulating management policy," Boonchai said. Boonchai said the shake-up would clear the way for TAC to conclude a long-awaited strategic partnership deal with an European partner. He said TAC would sign the deal in the middle of next month, under which the partner would hold not less than 25 per cent stake. According to an industry source, TAC's new partner would be Telenor of Norway, which won over Bell Canada to secure the deal. The deal value is expected to touch US$400 million. Boonchai resigned from his post as chairman of United Communication Industry Plc (UCOM), a major shareholder of TAC, to take up the managing director's post. His seat at UCOM which will be taken over by his younger brother, Vichai. The TAC board's order caught Poosana and his men unawares. He and the TAC management team immediately cancelled a scheduled visit to The Nation yesterday on being informed of the developments. "I have not heard the news before but I think I am still important to Boonchai as a good friend. However, I realise that he has a full authority to make an order," Poosana said without elaborating on the conflict between him and Boonchai. He added that from now on, he would dedicate his life to social work. Mr Boonchai, chief executive of TAC's parent company, United Communication Industry (Ucom), announced the moves at a tense press conference. Six truckloads of police kept watch around Ucom's headquarters. Reporters saw special branch police combing toilets and likely spots for bombs but nothing was found. Mr Boonchai said he had not sought police security but conceded that there had been "many rumours about bombings". However, a police officer said the security had been requested by Ucom. Mr Boonchai said he had stepped down as Ucom's chief executive so he could clear up mounting debts plaguing TAC, a mobile phone company. After solving the debts, now totalling 20 billion baht, he would be ready to step down as managing director of TAC. Although TAC was co-founded by Boonchai and Poosana, it was Poosana who managed to secure the mobile phone service concession for the company. This resulted in him becoming the most influential figure in TAC, although de jure he is only an adviser. The row between the co-founders erupted over TAC's need for a strategic partner to cushion its debt problem. Despite Boonchai's attempts, TAC has not yet succeeded in reaching a deal because negotiations have been disrupted by some of its excutives who did not want to lose their control. An industry source said Boonchai's sudden move was prompted by pressure from Somers, the UK-based investment company, which owns a major share of 36 per cent in Ucom, which is in turn a major shareholder in TAC. "If Boonchai did not make the move, Somers would have broken in and seized power by itself. Its share value has fallen continually, due mainly to TAC's slow progress in winning a strategic partner," the source said. According to the partnership deal, the new entrant is obliged to buy Somers' share in Ucom as well, apart from TAC's offered shares. Boonchai's takeover also has great impact on Poosana's team and his Hand-in-Hand Foundation, which is located in the TAC building. Workers of the foundation reportedly started moving their belongings out of the building after the board's order. The strained relationship between Boonchai and Poosana is illustrated by the police cordon around the TAC building during the board's meeting and Boonchai's press conference yesterday. The building is widely known to be a long-time empire of Poosana's faction. Boonchai once admitted that some TAC workers in the building are yet to recognise him whenever he is present. "They even misspell my last name. But the situation will change dramatically now. I will soon call in all the executives to listen to my new policy. Anyway, I will not bully anyone," Boonchai said. He added that so far there is no plan by workers to resign after the new shake-up. "From now on, TAC's investment will be transparent. I will shut down all the subsidiaries to consolidate the management structure. TAC will become one of the seven core business of Ucom," Boonchai announced. "I founded this company, so why can I not legitimately come back to reform its operation." He added that TAC would review its social activity policy to focus on one which benefits people the maximum. After TAC gets a new partner, it will make every effort to compete with arch-rival Advance Info Service and safeguard its subscriber base, Boonchai said. Under the deal, US$80 million in new funds would be injected within a month to ease TAC's problems. Mr Boonchai said Ucom would reduce its 67% stake in TAC. The partner would hold more than 25% and have day-to-day management power. (The Nation, Bangkok Post 14-Jan-2000) TOTAL ACCESS COMMUNICATION: Announces foreign alliance ------------------------------------------------------ Total Access Communication (TAC) has announced that it is to sign an agreement with an as yet unnamed strategic partner. Boonchai Bencharongkakul, TAC's newly appointed Managing Director, said the company had reached an agreement with the new strategic partner an expected to sign the transaction by February. Boonchai denied rumors that TAC had chosen TeleNor, a Norwegian telecommunication company, as the new partner, but admitted that the new partner does come from a European country. He said the new partner will take a 25 percent stake in TAC, making the new ally only second in control next to United Communication Industries (UCOM), who own 67 percent. According to TAC's debt restructuring plan, it needs at least US$80 million in order to pay off their outstanding debts and to invest in the expansion of its 1800 digital phone system, said Boonchai. Currently TAC in debt to the tune of $450 million to multiple creditors. Boonchai, former UCOM Chief Executive Officer, also outlined the six principal agendas facing TAC business operations, which include streamlining operations with the new partner, planning the company's direction to increase competitiveness, preparing for liberalization of the telecommunications sector and staying the course with their debt reform. Furthermore, TAC must also deal with debt restructuring planning involving Euro convertible debentures (ECD) and Yankie bonds and, most importantly, work towards getting the company relisted on the local stock market. (Business Day 14-Jan-2000) 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., Trenton, NJ USA, and Beard Group, Inc., Washington, DC USA. Darryl Henning, Managing Editor, Feliz Ordona and Cristina Pernites, Editors. Copyright 2000. 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. The TCR -- Asia Pacific subscription rate is $575 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 301/951-6400. *** End of Transmission ***