/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/010320.MBX T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, March 20, 2001, Vol. 50, No. 55 Headlines A U S T R A L I A CENTAUR MINING: Negotiates with Noteholders on DSR CABLE & WIRES: Gov't Stake in Relation to Bid Questioned HIH INSURANCE: APRA Appoints Its Own Inspector HIH INSURANCE: ASIC Explains Possible Affects on Coverage RECKON LIMITED: Posts $27M Loss RECKON LIMITED: Announces Annual Meeting Schedule C H I N A & H O N G K O N G CHINADOTCOM CORP.: Reports Net Loss of $133.2 Million CHINADOTCOM CORPORATION: Stock Spirals After Year-end Results CHINADOTCOM CORP: Lower Revenue Projections Issued SUNDAY TELECOMMUNICATIONS: Net Loss In 2000 Cut To Half I N D O N E S I A DAYA MITRA: To Be Sold To Telkom MERPATI NUSANTARA: IBRA Restructures Airline Services Co. HARGAS INDUSTRIES: IBRA Restructures Chemical Company INDOCOAL: Holdiko Sells Ownership for US$45.5 Million J A P A N MITSUI CHEMICALS: To Invest Y260B In Three Year Plan KAWADEN CORPORATION: To Be Sold To Softbank Investment K O R E A DAEWOO MOTOR: Consultants Propose Main Plant Closure DAEWOO MOTOR: To Drop India, Poland Plants M A L A Y S I A PANGLOBAL BERHAD: Shareholder Serves Winding Up Petition UNIPHONE TELECOMMUNICATIONS: Winding Up Petition Struck Off SENG HUP: Junks Proposal To Acquire BHSB, LSB P H I L I P P I N E S KITA CORPORATION: Suspends Operations Indefinitely URBAN BANK: Clarifies Report on Urbancorp Liquidation URBAN BANK: PDIC Urges Deposit Conversion To Save Bank S I N G A P O R E BRIERLEY INVESTMENTS: First-Half Loss Narrows ASIA PULP: Fitch Downgrades Rating to `DD' T H A I L A N D EASTERN WIRE: Reports Update On Business Reorg Plan BANGKOK FIRST: Announces No Distribution Of Dividends SIAM PATKOL: Patkol Board OKs Capital Reduction Of Siam THAI MILITARY: No Dividend Payments For 2000 - - - - - - - - - - ================= A U S T R A L I A ================= CENTAUR MINING: Negotiates with Noteholders on DSR -------------------------------------------------- Centaur Mining & Exporation Limited informed the Australian Stock Exchange on March 12, 2001 that negotiations were continuing with noteholders for an extension of the obligations to further replenish the Debt Service Reserve (DSR) account. While no further extension has been granted, the company has been advised that the noteholders have no present intention to take any action in respect of the DSR account at this time. The actual payment of interest from the DSR account is not due until June 1, 2001. Further negotiations concerning a possible restructuring of the company's total debt position are taking place between the company and noteholders. CABLE & WIRES: Gov't Stake in Relation to Bid Questioned -------------------------------------------------------- The Australian government is unsure of the role of Singapore government in Singapore Telecommunications (SingTel) (SGX:TELE). It has already planned to investigate the matter, Asiapulse reported, before deciding on SingTel's bid to takeover the country's second largest telecom firm, Cable & Wires Optus Limited (C&W) (ASX:CWO). SingTel is the leading candidate in the sale of C&W, as Lee Hsien Yang of SingTel is wrapping up negotiations with the company's executives in Sydney. C&W's parent company announced last Wednesday that the company may cut 4,000 workers worldwide and issued a profit warning. The Singapore government holds 78 per cent stake in SingTel, and along with the two other bidders, Vodafone Pacific Pty Ltd and Telecom New Zealand, it had to secure foreign investment approval. HIH INSURANCE: APRA Appoints Its Own Inspector ---------------------------------------------- As the supervisor of licensed insurance companies, the Australian Prudential Regulation Authority (APRA) said it is working closely with the provisional liquidator which the court appointed to the HIH Insurance Group March 15, 2001. APRA said it is also in close contact with the other insurance companies that have recently taken over significant parts of HIH's business. These companies are Allianz, QBE and NRMA, which are all secure and strong. Friday APRA said its immediate aim is to issue a comprehensive statement outlining, as far as possible, the position of the various groups of policyholders. APRA appointed its own inspector, Mr David Lombe of Deloittes, to investigate the affairs of HIH and the Australian-authorised insurers in the HIH Group, including the financial condition of the company. This appointment follows the issue of a "show cause" notice to the company by APRA on 1 March and the expiration yesterday of the statutory period for the company to respond to that, APRA said. Lombe will work with the provisional liquidator to ensure that APRA is fully informed of the management of HIH's insurance liabilities and claims and can advise on options to best protect the interests of all policyholders. The provisional liquidator, Mr Tony McGrath of KPMG, has advised that HIH would continue to manage its existing liabilities and claims, but will not be writing any new business. HIH INSURANCE: ASIC Explains Possible Affects on Coverage --------------------------------------------------------- Following the provisional liquidation of the HIH Insurance Group, on March 17, 2001, the Australian Securities and Investments Commission (ASIC) took steps to provide consumers with the latest information available about how the provisional liquidation may affect their coverage. ASIC and the Australian Prudential Regulation Authority (APRA) continue to work together to protect and inform policyholders. APRA has been working with the provisional liquidator to put in place measures that provide alternative insurance arrangements for policyholders of the HIH Insurance Group. These measures, which relate to arrangements with Allianz Australia, QBE Insurance and NRMA, provide continuing or new cover in certain circumstances. The individual companies have released technical details of these arrangements. In a media release Friday, APRA said a statement would be issued outlining the position of various groups of policyholders. This release provides those details. The HIH Insurance Group includes FAI Insurances Limited (FAI), CIC Insurance Limited (CIC), HIH Casualty and General Insurance Limited and World Marine and General Insurance Pty Ltd (WMG). Consumers wishing to check the details of their coverage should call the HIH information hotline at 1800 600 400, which will be open at noon on Monday, March 19. Travel Insurance ASIC advises consumers with existing travel insurance underwritten by HIH, FAI, or CIC that they should immediately check their coverage. Full payment may not be guaranteed for those people who are currently traveling or who have outstanding claims. However, the provisional liquidator has agreed that for the time being claims involving medical and hospital emergencies will be paid. People who need to make a medical or hospital claim should call the Omega emergency number provided on the travel assistance card. It is important to note that much travel insurance is prominently badged by organizations other than the insurer, such as travel agencies or airlines. Some of these policies will have been sold under the name of "Readyplan". Consumers who have not yet traveled but have purchased and hold current travel insurance through: - Jetset; - Qantas; - Air NZ; - STA Travel; - American Express; - Harvey World Travel; - Thomas Cook; - Any AFTA travel agent; or - Other financial institutions should contact these organizations to determine whether the insurance was underwritten by any company in the HIH Group. QBE Insurance (Australia) has advised that these policyholders will have their HIH policies automatically exchanged for identical policies underwritten by QBE Insurance (Australia). No additional fee will be charged for this exchange. Personal & Domestic Insurance Private motor, compulsory third party, private pleasure craft, home building and home and contents insurance policies with HIH, FAI, CIC Insurance Limited and WMG which were current on January 1,2001 or were issued by Allianz Australia Advantage Limited after January 1, 2001 will be covered by Allianz Australia. If you are in doubt about your cover you should call your broker, or contact Allianz at 131 000. Life Insurance Life insurance products have not been affected by the provisional liquidation of the HIH Insurance Group. Small Business, Rural & Commercial Insurance There are a number of different insurance policies that apply in these categories. Holders of certain current small business, rural and commercial insurance policies, such as small business packages or fleet motor policies, will have cover with Allianz. Customers should contact their broker or agent to confirm whether they have cover. Claims under workers' compensation policies are 'guaranteed' under relevant State statutory schemes. Compulsory third party insurance has only been issued by the HIH group in New South Wales and Queensland, and is also 'guaranteed' under relevant state statutory schemes. Corporate customers with concerns about their insurance should contact their brokers, financial or legal advisers. RECKON LIMITED: Posts $27M Loss ------------------------------- Reckon Limited, the troubled financial software company, disclosed to the Australian Stock Exchange an operating loss of $27.251 million over $37.205 million in revenues, for the year ending on December 31, 2000. It is an increase by 255 percent of the figure reported in the preceding year. The holder of the Australian license for Quicken software posted a total of $16.891 million in assets, broken down into $11.19 million current assets and $5.701 non-current assets. It also recorded a total of $9.023 million in liabilities, and thus registering net assets that dropped by a little over 400 percent to $7.868 million. Reckon Limited's first full year as a listed company ended December 31, 2000. During the first half of the year the company had a significant increase in sales due to the need for businesses to upgrade their accounting systems to cope with the implementation of the GST in Australia. Reckon entered the second half of the year buoyed by this performance and ordered significant quantities of stock for the second half of the year in order to take advantage of economics of scale in the product manufacturing. However, the growth in sales in the first half did not continue into the second half as it became apparent that most customers had purchased their new or upgraded software prior to June 30, 2000. Consequently, sales in the second half of the year were poor which, when combined with problems with the sales agent/distributor of the Quicken products that saw significant product returns in the second half of the year, exacerbated the sales position. Reckon has replaced the distributor and while agents conduct sales to major retailers, all remaining sales functions are in house. Inventory levels have been reviewed and are considered appropriate for the level of sales forecast for this year. Significant marketing and promotional costs were incurred during the first half to build the brand and maintain an appropriate market share in the lead up to the introduction of the GST. The marketing and promotional expenditures continued in the second half to maintain the momentum achieved in the first half. However, the level of revenue achieved in the first half was not sustained despite high levels of marketing. Reckon maintained its overseas expansion efforts and continued to build up its on-line activities, which included the integration of The Hubb Organization Pty Ltd acquired at the end of the 1999, in the first part of the year. Following a performance review, an announcement was made to the ASX in October 2000, stating that the scope and size of Reckon was being reduced to bring the cost base into line with the revenue levels being achieved in the second half of the year. Decisions were made to return the Hubb business to its vendors, sell the offshore software businesses to local management and institute a significant redundancy program in both the on-line business and the software business. Reckon Limited will maintain a 20 percent minority stake in these businesses. The abnormal losses arise from redundancy costs, the losses on the offshore businesses and lease rentals for the remainder of the lease period on surplus space at Reckon's Pyrmont headquarters. Marketing expenditures have been significantly reduced in comparison to last year. The on-line business has been reduced to a break-even position. The completion of the sale of the offshore businesses will halt their affect on Reckon's bottom line. Reckon is not a 'dotcom' business. Reckon is again focused on its key business, that of providing personal and business customers with quick and easy solutions to everyday financial problems. RECKON LIMITED: Announces Annual Meeting Schedule ------------------------------------------------- Reckon Limited announced to the Australian Stock Exchange on Tuesday, March 13, that the company has scheduled its annual meeting on April 5, 2001, at 10 AM, at Level 2, 35 Saunders St., Pymont, Sydney. The annual report will be available on April 4, 2001. ================================ C H I N A & H O N G K O N G ================================ CHINADOTCOM CORP.: Reports Net Loss of $133.2 Million ----------------------------------------------------- Chinadotcom Corporation (NASDAQ: CHINA) announced the financial results for its 4th quarter and year ending December 31, 2000. The announcement was made March 14. The company reported a net loss of $59.8 million, or $0.61 per share, compared to a net loss of $18.7 million, or $0.26 per share, for the year ending 1999. Consolidated revenues for the 4th quarter ending December 31, 2000 were $34.4 million, increased from $10.9 million for the same period in 1999. Net loss for the 4th quarter was $133.2 million, or $1.3 per share, compared to a net loss of $13 million, or $0.15 per share, for the 4th quarter of 1999. Selling, General and Administrative expenses increased from $11.6 million in the 4th quarter of 1999 to $27.7 million in the 4th quarter of 2000, excluding non-recurring items. After considering non-recurring expense items, cash losses from operations increased to $22.7 million in the 4th quarter of 2000 from $10.5 million in the 4th quarter of 1999. The full quarter of costs associated with integrating newly acquired companies and higher provisioning for bad debts are credited as primary causes. Personnel costs, the single largest cost item, accounting for 39% of revenues remained the same although the company added 62 staff. Chinadotcom recorded US$128 million in non-cash write-downs and provisions for diminution in the value of investments in marketable securities, cost investments, and impairment of goodwill of assets acquired. US$109 million of these charges were recorded in the 4th quarter of 2000. CFO Daniel Widdicombe said, "We have taken a prudent approach to the value of our investments and assets on the balance sheet. The result is a stronger, more transparent platform for ongoing operations." Chinadotcom is an integrated Internet company offering e-business solutions, portal and e-marketing services. Through its three- dimensional business model, Chinadotcom provides a full range of Internet services around the world that; 1) build e-business strategies and solutions (chinadotcom e-solutions), 2) distribute content via its portal network (chinadotcom media assets), and 3) sell services through online marketing (chinadotcom e-marketing). The company and its subsidiaries have offices in more than 12 markets, including Japan, Korea, Australia, Mainland China, Hong Kong, Taiwan, Singapore, Malaysia, Thailand, UK and the USA. CHINADOTCOM CORPORATION: Stock Spirals After Year-end Results ------------------------------------------------------------- Disappointing year-end results sent internet play Chinadotcom's stock spiralling 11 percent on Nasdaq on Wednesday and led Credit Suisse First Boston (CSFB) to cut its rating for the company. Chinadotcom said it would hack back costs and didn't rule out layoffs. It also floated a cross-media plan for its portal business, similar to rival Tom.com's strategy. CSFB downgraded Chinadotcom from "buy" to "hold" early yesterday. Merrill Lynch cut its rating last week to "neutral" from "accumulate" and other analysts said they were re-evaluating their recommendations on the back of the firm's lower-than- expected results. CHINADOTCOM CORP: Lower Revenue Projections Issued -------------------------------------------------- Asian Internet conglomerate Chinadotcom is warning its revenue will drop by a year-on-year 25 percent in the first quarter, according to company executives. CEO Peter Hamilton said the company had revised its revenue projections for the first quarter of this year due to the softness in core business and lower revenue resulting from changes in the ownership structure of AOL Time Warner's Hong Kong services. Chinadotcom began directly funding the AOL Hong Kong services in the first quarter but was unable to report AOL's US$4 million to US$5 million revenue in Chinadotcom's accounts, he said. The warning came after the Internet portal operator announced worse- than-expected fourth-quarter results. On Wednesday, Chinadotcom said it recorded a US$133.2 million net loss for the three months to December 31 last year, due to a substantial US$109 million non-cash write-down and provisions on goodwill impairment and diminished value of investments. The company also announced a surprise 5.7 percent drop in fourth- quarter revenue on a quarter-on-quarter basis to US$34.4 percent. The continuing weakness in core business operations has pushed Chinadotcom's break-even target backward. SUNDAY TELECOMMUNICATIONS: Net Loss In 2000 Cut To Half ------------------------------------------------------- Sunday Telecommunications almost halved its net loss to HK$466.56 million last year from HK$923.92 million a year earlier after slashing handset subsidies to customers and beefing up sales. The company, operating wireless services under the name Sunday, cut its year-on-year loss by 77 percent to HK$119M for the 12 months to December 31. Managing Director Craig Ehrlich said a break-even was in the cards for the first six months of this year. The operating loss fell 49.09 percent to HK$380.68 million. Stronger contributions from mobile phone services and sales of mobile handsets and accessories lifted turnover 41.45 percent to HK$1.45 billion. Handset subsidies were reduced to HK$21 million from HK$317 million last year. Growth in the number of subscribers was strong, at 43 percent to 410,000. Nevertheless, Sunday felt the impact of cutthroat competition, with the average revenue per user sliding about 7 percent to HK$272 last year. Interest income surged to HK$51.05 million last year from HK$2.21 million. The group's capital expenditure, mainly on strengthening mobile services and on building a wireless application protocol platform, stood at HK$339 million. Mr. Ehrlich estimated capital expenditure would be slightly less this year. Sunday would bid for a 3G license in Hong Kong, but was undecided about Singapore. Loss per share improved to 16.4 HK cents last year from 40.2 HK cents. No dividend was recommended. ================= I N D O N E S I A ================= DAYA MITRA: To Be Sold To Telkom -------------------------------- PT Telkom (JSX:TLKM), the state-owned telecommunications company, has negotiated to buy 90.32 percent of debt-laden PT Daya Mitra Telekomunikasi. PT Daya is valued at US$121.93 million, Asiapulse reported. When the acquisition becomes finalized, Telkom will be liable for Daya Mitra's debt amounting to US$88.5 million, said Telkom president Muhammad Nazif. Telkom views this acquisition as its opportunity to end negotiations, and to resolve a squabble resulting from the collapse of the KSO system, with a number of foreign consortiums. Devised to develop fixed telephone networks, the KSO system failed as it was downed by the financial crisis in 1997. Daya Mitra is a joint operation partner [KSO] of Telkom in the building of fixed telecommunication networks in Kalimantan. MERPATI NUSANTARA: IBRA Restructures Airline Services Co. --------------------------------------------------------- The Indonesian Bank Restructuring Agency (IBRA) announced on March 9, 2001 that in late February it restructured airlines service company PT Merpati Nusantara Airlines. The company had signed a Memorandum of Understanding (MNA), IBRA said. Merpati's current handling status is as follows: Total outstanding obligations of PT MNA is IDR 206.894 billion to be settled under the following restructuring scheme: - Tranche A (ex loan principal): R154 billion - Up front payment: R4.620 billion - Payment will be done by installments in 10 years with grace period of 2 years - Tranche B (ex loan interest): R52.894 billion - Payment will be made by installments in 5 years. HARGAS INDUSTRIES: IBRA Restructures Chemical Company ----------------------------------------------------- The Indonesian Bank Restructuring Agency (IBRA) announced on March 9, 2001 that in late February it restructured chemical manufacturing company PT Hargas Industries Indonesia. The company had signed a Credit Agreement (PK), IBRA said. Hargas' current handling status is as follows: Total obligations of PT Hargas Industries Indonesia is US$32.1 million or equivalent to R314 billion to be settled under the following restructuring scheme: - Tranche A: US$ 17.898 million: Term Loan Facility - Tranche B: US$ 8,103 million: Working Capital Facility - Tranche C: US$ 6,099 million: Ex-Overdue Interests. INDOCOAL: Holdiko Sells Ownership for US$45.5 Million ----------------------------------------------------- PT Holdiko Perkasa (Holdiko), a holding company established pursuant to the Shareholding Settlement Agreement between the Indonesian Bank Restructuring Agency (IBRA) and the Salim Group, announced on March 12, 2001 that it had sold its entire ownership in Indocoal, a group of coal mining companies located in Kalimantan and Sumatra, for gross proceeds of $US45.5 million to PT Centralink Wisesa International (Centralink). Centralink submitted the highest bid for the purchase of Indocoal assets, which are comprised of two coal producing companies, PT Indominco Mandiri and PT Kitadin Corporation, and two coal exploration companies, PT Trubaindo Coal Mining and PT Barasentosa Lestari. The companies' activities center in East Kalimantan and in South Sumatra. Centralink recently entered into agreements with Banpu Minerals (Singapore) Pte Ltd., the subsidiary of Banpu Public Company Limited of Thailand, who will provide Centralink with technical, marketing and financial support. "We are happy with the price Centralink submitted," stated Dasa Sutantio, IBRA's Director AMI. "Centralink's technical, marketing, and financial support from its regional partner is a positive element in this transaction in terms of the expertise and capital it will bring for the development of Indocoal in the future." Indonesia is at present the world's third largest exporter of thermal coal after Australia and South Africa. "We are pleased that our offer for Indocoal came out as the winning bid in this transaction. We believe Indocoal is a high potential asset, which is why we aim to submit the best offer," remarked Centralink's commissioner, Fredi Chandra. "We are also proud to be able to take part in IBRA's and Holdiko's asset disposal program as our contribution to the recovery of our economy." Centralink is a private Indonesian company operating in the coal business. Banpu Minerals (Singapore) Pte Ltd. is the subsidiary of Banpu Public Company Limited, a publicly listed company in Thailand with core businesses in the production and marketing of coal & minerals, also with operations in the power business. BNP Paribas acts as financial advisor to IBRA and Holdiko for this sale transaction. "This deal marks Holdiko's second asset disposal for this year, after the sale of our final stake in First Pacific Co. Ltd. last month. Total gross proceeds raised in these two deals is more than IDR 500 billion, taking us over 50% towards our goal of raising more than IDR 1 trillion from assets initially scheduled for disposal last year," said Scott Coffey, Director of Holdiko. "With regards to these spill-over assets, Holdiko expects to complete the sale of Indomaret, Sulfindo and Kerismas, as well as Indosiar's refinancing within the next couple of months." Holdiko plans to shortly announce its list of assets to be sold in 2001 and its estimated sales revenue target for the year. PT Holdiko Perkasa was established in relation to the settlement between the Salim Group and IBRA with regard to loans extended by PT Bank Central Asia (BCA) to companies affiliated to the Salim Group. As part of the settlement agreement with IBRA, the Salim Group transferred shares and assets in more than 100 operating companies to PT Holdiko Perkasa. As direct and indirect shareholder of these companies, it is Holdiko's responsibility to supervise each individual company with the aim of disposing of a sufficient amount of these shareholdings. Holdiko will subsequently direct the disposal proceeds to IBRA as part of the settlement agreement. The Indonesian Bank Restructuring Agency (IBRA) is an agency of the government of Indonesia established at the beginning of 1998 as the primary agency to oversee the rehabilitation of the financial sector. IBRA is authorized to take over and control troubled banks and dispose of their assets and collateral. ========= J A P A N ========= MITSUI CHEMICALS: To Invest Y260B In Three Year Plan ---------------------------------------------------- Mitsui Chemicals Incorporated (TSE:4183) will invest Y260 billion within a three-year period starting April 1, Asiapulse reported. This venture, according to the business plan, will engage in functional materials and petrochemical operations, including synthetic fiber materials and resins. Another plan underway is workforce reduction, by way of natural attrition, by 8 percent, or 1,000. Also, concurrent with the three-year plan, the company aims to slash its consolidated interest-bearing debt by Y130 billion, along with the assets by Y165 billion through the planned sale of land and securities holdings, Asiapulse said. KAWADEN CORPORATION: To Be Sold To Softbank Investment ------------------------------------------------------ Part of bankrupt Kawaden Corporation, maker of electronic parts, will be sold to Softbank Investment Corporation, a report to the Tokyo Stock Exchange said. It added that Softbank Investment, the venture capital unit of Softbank Corporation, would create leveraged buy-out (LBO) fund. ========= K O R E A ========= DAEWOO MOTOR: Consultants Propose Main Plant Closure --------------------------------------------------- U.S. consulting firm, Arthur Anderson, released last week a recommendation to close Daewoo Motor's main car plant in Pupyong, the Korea Herald reported. As it is wrapping up its study into restructuring the Korean carmaker, Anderson cited lack of competitiveness and productivity as grounds for the proposed closure. Anderson's report also said that Daewoo's independent survival would rely on the gradual phase out of the Pupyong plant within 3 to 5 years. "Daewoo has overall output capacity of 1.06 million units a year. But this year's output is expected to reach just 560,000 units, representing a facility utilization ratio of 50 percent," the report added. The plant's utilization ratio stands at 30 to 40 percent. The ruling Millennium Democratic Party's special committee on the Daewoo Motor crisis concurred with the Anderson report, however, it also said that the plant's continued existence remained uncertain, even with the planned takeover by General Motors. The Pupyong plant is estimated to have a liquidation value of W1.2 trillion. But, citing a media release in a local daily, the Herald reported that "the figures [were] too discouraging to justify its survival," adding that "the plant [was] plagued by tumbling productivity and antiquated facilities." DAEWOO MOTOR: To Drop India, Poland Plants ------------------------------------------ Troubled Korean carmaker, Daewoo Motor Company, might consider withdrawing from Poland and India as a survival measure should General Motors (GM) decide not to pursue its bid for a takeover, Agence France Presse reported, citing Commerce and Industry Minister Shin Kook-Hwan in a talk with journalists. In the event that General Motors would back out of the negotiations, the minister said that they "would work on ways of helping it survive on its own." Possible recourse, he added, would be to drop Daewoo's operations in Poland and India, along with the overhaul production facilities in South Korea. The government and Daewoo Motor's creditors moved to withdraw from the two overseas operations following the recommendations made by Arthur Anderson, the U.S. consulting firm, to close down Daewoo's main plant. The company, however, raised objections to the proposed closure of the Pupyong plant. Other than the Polish operation, FSO, and the Indian plant, DMIL, also recommended for closure are the company's non-viable operations in Ukraine, Uzbekistan, China and Romania, and six other non-viable distribution branches in Britain, France, Germany, Austria, Canada and Slovakia, the AFP report said. =============== M A L A Y S I A =============== PANGLOBAL BERHAD: Shareholder Serves Winding Up Petition -------------------------------------------------------- In a notice posted on the Kuala Lumpur Stock Exchange website, Panglobal Berhad announced on February 28, 2001 that it has been served with a winding-up petition by shareholder Koh Chit Khoon. Panglobal was incorporated in Malaysia as a private limited company on August 14, 1962 and converted into a public company on June 14, 1969. It was first known as Allied Malayan Development Sdn Bhd and changed its name to Allied Malayan Development Bhd on conversion. It underwent several name changes after that, from Global Equities Bhd on August 2, 1986, PanGlobal Equities Bhd on December 9, 1987, and assumed its present name on November 28, 1995. The company's principal activities include general insurance business, extraction of logs, sawmilling and manufacturing of veneer, coal mining, property investment and development, rental of office and commercial premises and operation of hotel apartments. Background Panglobal was originally a housing developer. In 1966, it disposed of these activities and entered into the towel and yarn manufacturing business. Over the years, it diversified its activities into property development, computers and insurance. It maintains its insurance operations through PanGlobal Insurance Bhd, with head office in Kuala Lumpur and branches in 12 states. It transferred its towel manufacturing operations to one of its subsidiaries in 1987 and became a purely investment holding company. In 1994, it disposed of its property development division and computer division and, in 1995, its textile operations. In early 1995 Panglobal underwent a restructuring, part of which was its acquisition of Limbang Trading Sdn Bhd, which is involved in timber extraction and related activities, and Global Minerals (Sarawak) Sdn Bhd which operates a coal mine. Both companies operate in Sarawak. In addition, it acquired property development land in Johor Bahru. Panglobal obtained a restraining order under Section 176 of the Companies Act, 1965 granted to the company and four of its subsidiaries (PanGlobal Properties Sdn Bhd, Menara PanGlobal Sdn Bhd, Global Minerals (Sarawak) Sdn Bhd and Limbang Trading (Limbang) Sdn Bhd) which has been extended for a final period of six months from April 17, 2000 for the purpose of implementing a plan of arrangement. The plan involved the issuance of redeemable convertible secured and unsecured loan stock, disposal of assets and rights and special issue. On July 17, 1999, Panglobal accepted a conditional offer by Road Builder (M) Holdings Bhd to acquire its 26.67% equity interest in Econstates Bhd for RM80m cash. The company's shareholders approved the proposed Econstates disposal on December 31, 1999. The proposed disposal was in line with the composite scheme to raise cash proceeds to repay certain Group borrowings. On February 2, 2000, the High Court granted a holding over injunction to a shareholder to preserve the status quo of the proposed Econstates disposal, the shares of which had been pledged to an offshore bank for a loan facility granted to Panglobal. On March 21, 2000, the offshore bank gave notice that it would force sell the shares following the expiry of the restraining order on March 20. On March 23, 2000, the company was notified that the shares had been forced sold on March 22, 2000 at RM2.00 per share. Subsequently, on March 27, 2000, the company was served a notice by a shareholder that an ex parte injunction had been obtained to restrain RBH and the offshore bank from completing the force sale. The injunction does not involve the company as the Econstates shares were forced sold by the offshore bank. In view of the action taken by the offshore bank, the SPA dated September 23, 1999 between RBH and Panglobal was terminated. UNIPHONE TELECOMMUNICATIONS: Winding Up Petition Struck Off ----------------------------------------------------------- Uniphone Telecommunications Berhad announced on March 14, 2001, through a posting on the Kuala Lumpur Stock Exchange, that the winding-up petition against the company had been struck on the same date. The petition was served on the company on March 7. SENG HUP: Junks Proposal To Acquire BHSB, LSB --------------------------------------------- The Commerce International Merchant Bankers Berhad (CIMB), on behalf of Seng Hup Corporation Berhad (SHCB), reported to the Kuala Lumpur Stock Exchange on March 14, 2001, that on March 5, 2001, Mr. Tan Kim Leong and Mr. Siew Kah Toong of Messrs. BDO Binder, the Special Administrators of SHCB, had received a letter from the vendors of Brightway Holdings Sdn Bhd (BHSB) and Laglove Sdn Bhd (LSB). The letter stated that the vendors had decided not to participate in the proposed corporate and debt restructuring. After deliberation between the special administrators and Mr. Goh Chin Soon, it was decided that the proposed acquisitions of BHSB and LSB would be aborted. The report also noted that the proposed corporate and debt restructuring and the proposed acquisition of Juriman Sdn Bhd would proceed as planned. In addition, pursuant to the proposed acquisition of Juriman Sdn Bhd announced on 26 February 2001, the relevant Information Circular would be issued to shareholders of SHCB after the receipt of approval from the Securities Commission on the proposed acquisition. ===================== P H I L I P P I N E S ===================== KITA CORPORATION: Suspends Operations Indefinitely -------------------------------------------------- Solid Group, Inc. (SGI) informed the Philippine Stock Exchange on March 15, 2001 that its wholly-owned subsidiary Kita Corporation will suspend its manufacturing operations. The suspension will commence on April 15 for an indefinite period. This is due to the loss of production orders from the company's principal customer, Aiwa Co. Ltd., since December 2000. Aiwa is in the process of re-structuring all of its overseas manufacturing facilities. Aiwa cannot give a definite timetable for the resumption of its production orders to Kita. The Clark Plastics Manufacturing Corporation, also a subsidiary of SGI, which manufactures and supplies components to Kita is likewise going to suspend operation of its EPS (Styropor) Division effective April 15, 2001. Both companies will resume their manufacturing operations as soon as production volume becomes viable for their operations. The management, in accordance with the law and existing company policies, is addressing the concerns of all employees and staff, who might be affected by the closure. URBAN BANK: Clarifies Report on Urbancorp Liquidation ----------------------------------------------------- Urban Bank, Inc. issued a clarification to the Philippine Stock Exchange on March 12, 2001 with reference to a news article entitled "SEC says Urbancorp facing liquidation" published in the February 26, 2001 issue of the Philippine Daily Inquirer. The article reported, "the Securities and Exchange Commission will be forced to order the liquidation of Urbancorp Investments Inc., a subsidiary of the failed Urban Bank, Inc., if no feasible alternative to rehabilitate the group was presented by March 8. SEC Chair Lilia Bautista made the statement following the breakdown of talks for the rehabilitation of UII and Urban Bank through a merger with Bank of Commerce." Philippine Deposit Insurance Corporation, in a letter to the Exchange dated March 6, 2001, stated that: "Please be advised that last February 27, 2001, PDIC met with the UII Receiver together with the representatives from the Bangko Sentral ng Pilipinas and discussed the withdrawal of Bank of Commerce (BOC) from its proposal to rehabilitate Urban Bank, Inc. (UBI) and UII. It also discussed the article purportedly saying that the Securities and Exchange Commission will be forced to order the liquidation of UII if no feasible alternative to rehabilitate UII is presented by 8 March 2001. "As a result of said meeting, PDIC wrote the UII Interim Receiver that in view of the withdrawal of BOC, PDIC has given interested investors until 16 March 2001 to formally signify their interest to rehabilitate UBI. Thus, PDIC looks forward to cooperation and assistance from all parties who are involved or have interests in UBI and UII rehabilitation." URBAN BANK: PDIC Urges Deposit Conversion To Save Bank ------------------------------------------------------ The Philippine Depository Insurance Corporation (PDIC) proposed that a deposit-to-equity conversion could be the last option to save Urban Bank, ABS-CBN News reported. PDIC President Norberto Nazareno called on Urban Bank depositors to take the proposition, lest, the closed bank would be placed for liquidation. "Only you, the depositors, can save Urban Bank [and if you don't] get your acts together, we have no choice but to liquidate that before April 26 because that is a deadline we at PDIC set," Nazareno said. On the other hand, depositors have been urging the Bangko Sentral to save and take over Urban Bank before the April 26 deadline. But the PDIC and BSP, according to Nazareno, "are not allowed by law to invest in any institution," so a takeover by the two institutions would not be possible. The bank has a net worth of negative P1 billion, and it would take an estimated P3.4 billion to reopenorted, according to Nazareno. The Central Bank requires a minimum capital of P2.4 billion for a commercial bank to open. ================= S I N G A P O R E ================= BRIERLEY INVESTMENTS: First-Half Loss Narrows --------------------------------------------- Brierley Investments, a Singapore-based investment company with stakes in airlines, hotels and fishing companies, said its first- half loss narrowed due to new investments. The company told Singapore's stock exchange it lost US$20.8M, or 0.8 cents a share, in the half ended on December 31, compared with a net loss of US$49.8M, or 1.7 cents a share. ASIA PULP: Fitch Downgrades Rating to `DD' ------------------------------------------ Fitch, the international rating agency, has downgraded the Senior Unsecured debt rating of Asia Pulp & Paper Limited (APP) to 'DD' from 'C'. This follows the official announcement by the company that it intends to cease payment of interest and principal on all holding company debt and on debt issued by its subsidiaries and affiliates, the obligations of which are funded by such subsidiaries. The rating indicates that the company and its affiliates are undergoing a debt restructuring process. =============== T H A I L A N D =============== EASTERN WIRE: Reports Update On Business Reorg Plan --------------------------------------------------- Eastern Wire Public Company, Limited, reported to the Stock Exchange of Thailand on Friday that the company had considered the business reorganization plan submitted on February 9, 2001. This happened on March 13, 2001, at 9 AM, as appointed by the official receiver, at the Central Bankruptcy Court. The creditors, according to Planner Dr. Phiraphan Phalusuk, had submitted the petition for editing the plan. The plan would be postponed on March 26,2001, at 1:30 PM at the Central Bankruptcy Court. The company will report any progress of the plan. BANGKOK FIRST: Announces No Distribution Of Dividends ----------------------------------------------------- Bangkok First Investment & Trust Public Company Limited reported to the Stock Exchange of Thailand that the company's board of directors resolved in a meeting on March 13, 2000, that there would be no appropriation of reserve funds, or distribution of dividends because of continued losses. The report said that the shareholder register will be closed in order for the shareholders who are entitled to to attend and vote at the annual general meeting of shareholders no. 36 on Thursday, April 5, 2001 at 12:00 PM. The shareholder register book will remain closed until the meeting is adjourned. The Board also announced a call for the annual general meeting of shareholders no. 36 on April 25, 2001 at 3 PM. at the meeting room, Bangkok Insurance Building 11th floor, 25 Sathon Tai Road, Tung Mahamek, Sathon, Bangkok with the following agenda: 1. To approve the minutes of the extraordinary general meeting of shareholders No. 1/2000; 2. To acknowledge the result of operation and the annual report of the company; 3. To consider and approve the audited balance sheet and statement of profit and loss for the year 2000; 4. To acknowledge the appropriation of reserve funds and distribution of dividends; 5. To consider and appoint the auditor and fix their remuneration; 6. To consider and elect directors to replace the retiring directors who shall retire by rotation and in case of change in the directorship to consider and fix the authorities of directors; 7. To consider the director remuneration; 8. Other business (if any). SIAM PATKOL: Patkol Board OKs Capital Reduction Of Siam ------------------------------------------------------- Patkol Public Company Limited reported to the Stock Exchange of Thailand that its Board of Directors, in a meeting held on March 13, 2001, approved the reduction of the capital of its affiliate Siam Patkol Company Limited fro B217 million to B130 million. The shares will also be reduced from 2.170 million to 1.3 million shares at the value of B100 per share. The reduction of the investment and the number of shares will be in ratio of the original share owning of 99.99 percent. The purpose of the share capital reduction is to restructure the finances of Siam Patkol Company Limited and to reduce its deficit. THAI MILITARY: No Dividend Payments For 2000 -------------------------------------------- Thai Military Bank Public Company Limited reported to the Stock Exchange of Thailand the resolutions of the bank's board of directors made in a meeting on March 13, 2001. A general shareholders' meeting for the year will be held on April 24, 2001 at 2 pm, at the bank's auditorium, Head Office, 3000 Phahonyothin Road, Lardyao Sub-district, Chatuchak district, Bangkok. The meeting will consider and/or approve the following: 1. The minutes of the ordinary general meeting of shareholders for the year 2000 held on April 27, 2000. 2. the Board of Directors' report on the past year's operations, 3. the balance sheets and profit and loss statements as of June 30 and December 31, 2000 and inform the non-payment of dividends, 4. the election of directors to replace the outgoing directors by rotation, 5. the appointment of the auditor for the year 2001 and fixing his remuneration, and 6. other matters arising. The bank shall close the shareholder register in order for the shareholders to exercise the right to attend the ordinary general meeting of shareholders for the year 2001 on April 4, 2001, until the ordinary general meeting of shareholders for the year 2001 is adjourned. 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. Lyndsey Resnick, Ronald Villavelez, Maria Vyrna Nineza, 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 ***