/raid1/www/Hosts/bankrupt/TCRAP_Public/010517.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, May 17, 2001, Vol. 4, No. 97
Headlines
A U S T R A L I A
ANSETT AUSTRALIA: ACCC Action Credits Frequent Flyers
BHP LIMITED: Welcomes Billiton Vote
FRANKLINS AUSTRALIA: Woolworths Deal Rejection Likely
HIH INSURANCE: Anger Over Public Fund Use Acknowledged
WINE PLANET: Suspended From Official Quotation
C H I N A & H O N G K O N G
CHINA TOP: Winding Up Petition Slated For Hearing
GRAND WAY ELECTRONICS: Faces Winding Up Petition
IREGENT GROUP: Change In Directorship
IREGENT GROUP: Shelves KoreaOnline Disposal Plan
TECHPACIFIC.COM: Dives Into Red
TECHPACIFIC.COM: Write-downs Push Company Into Red
I N D O N E S I A
BENTALA KARTIKA: To Dispose Of Interests In 3 Firms
DIPASENA CITRA: FSPC OKs Debt Workout
SURABAYA STOCK: Imminent Closure Looms
UFJ GROUP: Liquidating Indonesian Leasing Unit
J A P A N
AISIN SEIKI: Posts Net Loss Of Y7.23-B
DAIHATSU MOTOR: Maebashi Plant Closure Set For 2005
SEAGAIA: Plans To Dismiss All Workers
SOGO COMPANY: Case Vs Ex-Chair To Be Established
K O R E A
ASIANA AIRLINES: Posts Q1 Loss Of W103.4-B
DACOM: 187 Workers Sign Up For Voluntary Resignation
HYUNDAI ENGINEERING: Debt-Equity Swap Moves Forward
HYUNDAI ENGINEERING: Minor S-Holders to File Suit
HYUNDAI MERCHANT: Only Five Kumgang Tours Retained
HYUNDAI MOTOR: Ranked Fifth Chaebol With Huge Borrowings
KOREA TELECOM: Divesting Non-Core Operations
M A L A Y S I A
GEAHIN ENGINEERING: Explains Variance In FY2000 Results
KEMAYAN CORP: Unit To Dispose Of Oil Palm Lands
PACIFICMAS BERHAD: Posts Results Of EGM
REPCO HOLDINGS: Posts 9-Month Net Loss Of RM23.68-M
TRANS CAPITAL: Details Breakdown Of Variance
P H I L I P P I N E S
BENPRES HOLDINGS: Swings To A Net Loss Of P362-M
INTERNATIONAL CONTAINER: Posts Q1 Loss Of P16.7-M
METRO PACIFIC: Q1 Loss Trims Down To P162-M
S I N G A P O R E
ASIA PULP: Appoints Gavin Anderson As PR
ASIA PULP: Timetable For Restructuring
LIM KAH NGAM: Confirms Auditor Appointment To Primefield
VICKERS BALLAS: Court Confirms Capital Redux
T H A I L A N D
KULTHORN KIRBY: Reports Progress Re Rehab Plan
SAFARI WORLD: Explains First-Quarter Loss
TANAYONG PUBLIC: Added Info On Unrealized Forex Losses
SIAM CITY CEMENT: Will Sell Off Non-Core Assets
SINO-THAI: Reports Progress Of Rehab Plan
- - - - - - - - - -
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A U S T R A L I A
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ANSETT AUSTRALIA: ACCC Action Credits Frequent Flyers
-----------------------------------------------------
Ansett will credit Global Rewards members who can show they have
been awarded fewer frequent flyer points than they expected for
full-fare economy class travel on Singapore Airlines with the
correct number of points, and 5,000 bonus points, Australian
Competition and Consumer Commission Chairman Professor Allan
Fels said.
"During the ACCC inquiry into frequent flyer schemes, it became
aware that some members traveling on Singapore Airlines since
September 1998, may not have received the full number of Global
Rewards points to which they are entitled. Some members may have
received Global Rewards points for only 70 percent of the
kilometers flown instead of the full 100 percent.
"It is important that advertised rewards are available and that
they are honored. Offering frequent flyer points without
intending to supply those points as offered risks misleading
consumers, and ACCC action under Sections 52 and 54 of the Trade
Practices Act," Professor Fels said.
"The availability and number of frequent flyer points accrued,
particularly for international flights, is an important
consideration for many consumers when choosing between
competitive air travel services. Global Rewards members who have
traveled in full fare economy class on Singapore Airlines will
now be entitled to receive the correct number of frequent flyer
points."
Following an intensive ACCC investigation, Ansett has agreed to:
ú identify Global Rewards members who may have been affected;
ú send a letter to those members stating that if they believe
they have been awarded an incorrect number of points for full
fare economy class travel on Singapore Airlines since September
1998, the member should forward Ansett a copy of the ticket or
boarding pass, or a signed statement (letter) witnessed by
another person giving details of that travel;
ú Ansett will `top up' those members accounts with the correct
number of points;
ú Ansett will also award those members with a bonus 5,000 Global
Rewards points for their inconvenience;
ú Ansett will publish a corrective advertisement in the next
edition of Traveling Life and on its web site explaining this
process to its members; and
ú Ansett will put in place processes to avoid this type of error
in the future.
If a consumer does not receive a letter from Ansett, but
believes he/she has not received the full number of Global
Rewards points to which he/she is entitled for full fare economy
class travel on Singapore Airlines, he/she contact the Ansett
Global Rewards Service Center on telephone 1300 13 22 66.
"The ACCC is currently investigating frequent flyer schemes and
is discussing Ansett's broader trade practices compliance in the
context of its inquiry."
BHP LIMITED: Welcomes Billiton Vote
-----------------------------------
BHP Limited's Board of Directors yesterday welcomed the result
of the Billiton shareholders' vote on the proposed DLC merger
with BHP. All resolutions were passed by Billiton shareholders.
BHP Chairman Don Argus said: "We are pleased with the support
shown by Billiton shareholders and look forward to the BHP
Extraordinary General Meeting (EGM) on Friday where our
shareholders will have the opportunity to play their part in the
creation of the world's leading diversified resources group."
The implementation of the proposed DLC merger is subject to the
outcome of the BHP EGM and receipt of all necessary regulatory
approvals.
FRANKLINS AUSTRALIA: Woolworths Deal Rejection Likely
-----------------------------------------------------
The Australian Competition and Consumer Commission (ACCC) is
likely to disapprove the proposal to sell off 80 Franklins store
by Dairy Farm International to Woolworths, AAP reported Tuesday.
According to ACCC Commissioner Ross Jones, Australia's
competition watchdog is questioning the number of stores
involved in the deal and the sales volume this acquisition would
earn for Woolworths.
Earlier, ACCC turned down two revisions of the proposal, and
both parties have not presented any permutation that would be
doable, the report said. Jones brushed off rumors the ACCC would
hand down its approval yesterday.
Jones told AAP, "If they want a final ACCC view, we would give
it to them easily. We could give it to them tomorrow or
yesterday or last week." He added that if ACCC was to give its
decision it would be a "no".
He continued, "At the moment, I am not sure when there would be
a resolution to this. It's simply the commission's view that it
(a decision) has already been told to them."
The sell-off of the 80 Franklins stores, when materialized, is
expected to fetch a sum of $300 million, the report said. The
rest of the Franklins stores are to be sold off to other
Australian retailers, including Coles Myer.
HIH INSURANCE: Anger Over Public Fund Use Acknowledged
------------------------------------------------------
The government, according to Financial Services Minister Joe
Hockey, understands the public furor over the use of public fund
to fuel the bailout package for collapsed HIH Insurance, AAP
Tuesday reported Tuesday.
Following the insurance giant's downfall in March this year,
with losses reaching over $1 billion, Prime Minister John Howard
promised to extend substantial financial aid to those directly
affected by the HIH collapse, the report said.
According to the AAP report, Hockey told Channel Seven,
"Absolutely and that's why I am at pains to emphasise that the
government is not in the business of bailing out companies. This
is not a bailout for HIH. This is an assistance package to help
those most in need, those enduring hardship in the community."
He continued, "We want to do it so that claims are met as they
would have been if HIH had survived," adding that the government
will give all support necessary to pursue all those responsible
for the collapse of HIH.
WINE PLANET: Suspended From Official Quotation
----------------------------------------------
The securities of Wine Planet Holdings Limited was suspended
from quotation from the close of trading yesterday, May 16,
2001, in accordance with listing rule 17.4, following the
dispatch by Cellarmaster Wines Pty Limited on May 9, 2001 of
compulsory acquisition notices to dissenting offerees of the
Company.
Security Code: WIN
================================
C H I N A & H O N G K O N G
================================
CHINA TOP: Winding Up Petition Slated For Hearing
-------------------------------------------------
The petition to wind up China Top Trading Development Limited is
scheduled to be heard before the High Court of Hong Kong on June
6, 2001. The petition was filed on April 3, 2001 by Construction
Industry Training Authority whose registered office is at No.
95, Yue Kwong Road, Aberdeen, Hong Kong.
GRAND WAY ELECTRONICS: Faces Winding Up Petition
------------------------------------------------
Grand Way Electronics is facing a winding up petition, which
will be heard before the High Court of Hong Kong on May 23, 2001
at 9:30 AM. The petition was filed with the court March 16, 2001
by The Daiwa Bank, Limited, whose office is situated at 2-1
Bingo-Machi, 2-Chome, Chuo-Ku, Osaka, Japan and whose
representative office in Hong Kong at 11th Floor, United Centre,
95 Queensway, Hong Kong.
IREGENT GROUP: Change In Directorship
-------------------------------------
iRegent Group Limited has announced that James Mellon has
resumed the position of Chairman of the Board of the Company as
of April 22, 2001. Mellon stepped aside temporarily since
December 2000 to deal with allegations in relation to Korean
investments undertaken by the Group.
These have now been answered and David Paterson, who stood in
for Mellon during this period, has resigned as a director and
the Chairman of the Board of the Company effective April 22,
2001.
The Board wishes to express its thanks to Mr Paterson for his
valuable contribution during this period. Anthony Baillieu has
joined the Board of the Company as an independent non-executive
director, effective April 22, 2001.
James Mellon is one of the founders of iRegent, an asset
management company based in Hong Kong.
iRegent is focusing on a strategy to grow its asset management
business and to increase the value of its balance sheet
investments. A fuller description of the Company's activities
and growth prospects will be made at the time of its annual
report, due in July 2001.
IREGENT GROUP: Shelves KoreaOnline Disposal Plan
------------------------------------------------
The Directors of iRegent Group Limited have decided to cancel
the Disposal, and the Company will continue to own 18 million
shares in KOL, representing approximately 40.2 percent of its
total issued share capital.
The directors of iRegent Group Limited refer to an announcement
issued by the Company April 24, 2001 in respect of a further
extension of the date, from April 27, 2001 to May 15, 2001, for
the dispatch of a circular containing details of the proposed
disposal of the Company's entire holding of 18 million shares in
KoreaOnline Limited (KOL) to Abraxas Capital Limited for a
consideration of US$180 million (approximately HK$1,404 million)
pursuant to a share sale and purchase agreement dated January 5,
2001 entered into between (i) the Company as vendor; (ii)
Abraxas Capital Limited as purchaser and (iii) KOL, which was
announced by the Company on January 5, 2001.
The Disposal would have constituted a major transaction for the
Company under Chapter 14 of the Rules Governing the Listing of
Securities on The Stock Exchange of Hong Kong Limited and been
subject to, inter alia, shareholders' approval at its
extraordinary general meeting.
The Directors have decided to cancel the Disposal due to a
number of factors, including but not limited to, (i) a marked
change in the circumstances in Korea since the Disposal was
first announced to shareholders on January 5, 2001, including a
number of changes in the management of KOL and its subsidiaries
and associates, which the Directors believe will result in the
long term future success of KOL, (ii) the inability of the KOL
management to satisfy, by the extended deadline to May 15, 2001
2001, the conditions precedent of the Sale and Purchase
Agreement as referred to in the announcement dated January 5,
2001, and (iii) the views of certain shareholders that the
Disposal was not in the best interests of the Company as they
believe that, in the changed circumstances in Korea, a better
long term result would be obtained by the Company in remaining
as a voting shareholder of KOL rather than as its non-voting
bondholder.
Accordingly, the Directors, including the independent non-
executive Directors, believe that it is in the best interests of
shareholders that the Disposal is cancelled forthwith.
Therefore, the Company will continue to own 18 million shares in
KOL, representing approximately 40.2 percent of its total issued
share capital.
The Korean stock market has fallen sharply over the past year
and its currency has fallen too. Conditions in the financial
sector remain difficult. In addition, KOL had to cope with the
particular problems in its 42.4 percent owned merchant banking
affiliate, Regent Merchant Bank (RMB), that was the victim of an
illegal loan.
This, in turn, prevented a necessary capital injection into
KOL's insurance subsidiary, Regent Insurance Co Ltd (RIC). RMB
announced on May 11, 2001 a merger with Tong Yang Investment
Bank, another merchant bank in Korea.
RIC is now under government supervision and KOL expects the full
loss of that business. The loss of RIC business is approximately
US$65 million (approximately HK$507 million) after writing off a
goodwill of US$126 million (approximately HK$982.8 million)
representing RIC's net carrying value in KOL's accounts as at
September 30, 2000.
Such loss has been provided in the accounts of KOL for the year
ended March 31, 2001. The directors of KOL have confirmed that
its two main securities companies, Ileun Securities Co Ltd and
Regent Securities Co Ltd, which represent the most significant
part of the assets of KOL, are both operating normally at the
current time. They also have significant cash resources and no
significant debts.
After completing its restructuring, KOL's core business activity
will comprise its two securities businesses. There is
considerable online capability in Ileun Securities and KOL plans
to build on that capability.
Although the loss of RIC means that selling insurance as
principal will no longer be possible, KOL still intends to
continue online sales of insurance, on an agency basis assuming
the appropriate agency arrangements can be successfully
negotiated.
The online financial integration strategy will therefore
continue to be KOL's goal although the scope of business will be
more limited than before.
The Directors have no present or proposed need or intention to
have the Company offer any financial support to KOL, and on the
basis of information provided to the Company by the directors of
KOL, the KOL group should be capable of financing its own future
activities.
As stated in the announcement dated April 24, 2001, the Sale and
Purchase Agreement will terminate on May 31, 2001. The
cancellation of the Disposal would not result in any material
adverse impact on the financial and operating position of the
Company.
TECHPACIFIC.COM: Dives Into Red
-------------------------------
Techpacific.com nosedived into red, posting a net loss of
US$5.61 million for the first quarter ended March 31, a full
swing from the preceding quarter's net profit of US$61,500,
South China Morning Post reported Tuesday.
The shortfall, the report said, was attributed to a write-down
of about US$2.9 million in investments and the decline of
revenue figures in the corporate finance branch.
The growth enterprise market-listed dotcom firm, moreover,
incurred an operating loss of US$2.61 million on revenues
totaling US$2.27 million.
TECHPACIFIC.COM: Write-downs Push Company Into Red
--------------------------------------------------
Internet investment service and incubation firm Techpacific.com
said yesterday it reversed gains to post a net loss of US$5.61
million in the three months ended March 31, 2001. The first-
quarter result compares with a net profit of US$0.44 million in
the first quarter of 2000. For full year 2000, Techpacific.com
reported a net profit of US$0.89 million.
The company recorded turnover of about US$2.27 million during
the reported period against US$1.55 million a year ago, it said
in a statement.
Techpacific posted an operating loss of US$2.61 million,
reversing an operating profit of US$0.45 million for the same
period last year. "Net earnings were impacted by two non-cash
items - first, the write-down in the value of various
investments made by the group in early 2000; second, a write-off
over a 12-month period of the goodwill resulting from the Spike
Cyberworks acquisition," Techpacific said.
As of March 21, 2001 the group had cash reserves of US$29.6
million versus US$30 million as of December 31, 2000. Cash
committed but uninvested in the two funds under management stood
at US$74 million, the statement added.
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I N D O N E S I A
=================
BENTALA KARTIKA: To Dispose Of Interests In 3 Firms
---------------------------------------------------
PT Bentala Kartika Abadi (Bentala) announced Monday their
decision to dispose of 75 percent of its ownership in three
companies, namely PT. Danamon Asuransi, PT. Primasindo Insurance
Brokers and PT. Dinamika Reinsurance Brokers. The disposal
proceeds will be used to reduce the Bentala Group Loan to IBRA.
Danamon operated in the loss insurance and reinsurance business.
It had an extensive range of products including the insurance of
properties, motor vehicles, marine cargo, marine hull, aviation
hull, satellite, engineering, liability, oil and gas, personal
accident and health, credit and surety, and others.
Danamon was the tenth biggest national loss insurance company in
terms of assets, the eight in terms of equity and the eleventh
in terms of size of premium.
Danamon's operation achieved its peak in 1997 with gross premium
of approximately Rp15.6 billion. Its clients were essentially
financial institutions, and the companies under the Danamon
Group.
Primasindo is an insurance broking company that provides
intermediary services in loss insurance coverage. Primasindo has
a license in insurance brokerage sector based on the Decree of
Minister of Finance Number KEP. 280/KM 13/1991 dated September
17, 1991.
Dinamika is a reinsurance broker and was granted a reinsurance
broking license based on the Decree of Minister of Finance No.
KEP.630/KMK.017/1995 dated December 26, 1995 and began
commercial operations in 1996 under the name of PT Danamon
Reinsurance Brokers.
On September 11, 1998 the company changed its name into PT
Dinamika Reinsurance Brokers, which was validated by the Decree
of Minister of Justice No. C2-13.524.HT.01TH.98.
Bentala has appointed the financial advisory services division
of PricewaterhouseCoopers to act as financial advisers to the
transaction.
Cliff Rees from PT PricewaterhouseCoopers said that any
questions regarding the Danamon, Primasindo and Dinamika - sale
process has to be addressed to him. Other information regarding
sales schedule and procedure will be announced immediately.
PT Bentala Kartika Abadi was established in relation to the
agreement between the Bentala Group (formerly the Danamon Group)
and IBRA with regards to loans extended by Bank Danamon to
companies affiliated to the Bentala Group.
As part of the refinancing agreement with IBRA, the Bentala
Group transferred numerous shares in operating companies to PT
Bentala Kartika Abadi and pledged the shares to IBRA.
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.
DIPASENA CITRA: FSPC OKs Debt Workout
-------------------------------------
The Financial Sector Policy Committee (FSPC), in a meeting
March 29, 2001, issued an approval for five restructuring
schemes for Plasma Farmers of PT Dipasena Citra Darmaja (DCD)
and PT Wachyuni Mandira (WM) with the following points:
First, write-off of interest arrears amount to Rp1.1 trillion.
Second, reduction of plasma farmers' sustainable debt from Rp135
million to a maximum of Rp100 million per farmer.
Third, charging of unsustainable debt of plasma farmers to the
responsibility of the company (DCD) as a consequence of the
company's guarantee to plasma farmer debt. The unsustainable
debt portion of plasma farmers will be restructured at the
corporate level at the amount of Rp1.9 trillion (at exchange
rate of IDR 7.000/1USD). Accordingly the unsustainable debt is
not transferred to shareholder as it was agreed by FSPC in its
meeting dated April 27, 2000.
Fourth, appointment of a reputable Financial Advisor in line
with the prevailing procedure to support IBRA and DCD in
acceleration of the debt restructuring process until its
finalization.
Fifth, due to this restructuring, DCD should comply with
following conditions:
* Company commitment to re-investment/rehabilitation fund
extension;
* Company commitment to provision of working capital for shrimp
cultivation for all plasma farmers;
* Implementation of cooperation scheme between DCD and Plasma in
transparent and beneficial manner for both parties;
* The management of plasma farmer debt and trade transaction
between the Nucleous (DCD) and the Plasma (Farmers) will be
carried out by an appointed independent third party;
* Write-off of total debt of plasma farmers to DCD in accordance
with the debt records of the DCD accounting book;
For the interests of plasma farmers, a new cooperative will be
established to represent plasma farmers' communications with
DCD, creditors, and external parties.
DCD will enhance coordination with the Provincial Government and
the Regency to recover the shrimp cultivation industry.
Concerning irregularities found by the financial and legal due
diligence, the Shareholders (include the Founding Shareholder),
Commissioners and Directors will be held responsible in
accordance to the Indonesian laws.
Debt Proportion of Plasma Farmers
As mentioned above, the decision made by FSPC on April 27, 2000
which was based on the results of financial due diligence by an
independent party has been revised by the new decision made by
FSPC on its meeting dated March 29, 2001. Under the new
decision, sustainable debt proportion for the pasma farmers is
cut down from a maximum of IDR135 million to IDR 100 million per
farmer with repayment period of 10 to 12 years. The reduction in
obligations of the plasma farmers takes into account the
following considerations:
The Government pays special attention and concern to Plasma
farmer prosperity.
The given write-off is an incentive to Plasma farmers to resume
their shrimp cultivation activities.
The decision for total debt proportion is based on the asset
transfer from Bank BDNI Lampung.
The due diligence has helped the determination of feasibility
figure cultivation, which differ sustainable debt from
unsustainable debt portions. Due diligence reports recommend a
maximum of Rp135 million in debt for every plasma farmer.
Subsequently, FSPC cut the number down to IDR 100 million per
Plasma farmer. The Plasma farmers should consider the number as
the fairest amount they can bear. If in the future plasma
farmers can find additional evidence that the debt is they bear
is not the right amount as it supposed to be, a legal evidence
can decrease the debt or even write-off their debt.
A Take-over Alternative
An alternative solution in the form of corporate takeover in
case worsening conditions should consider several consequences.
A direct takeover where the government appoints another party to
run the company will cause the owner (DCD) to get rid off its
responsibility on unsustainable debt portion.
A company takeover will only have to happen in an official
procedure and the government gives its consent over to take over
the company without any misrepresentation from the owner to the
government. Another alternative to take over the company will be
taken should the company/debtor is not cooperative so that a
litigation approach is implemented.
As far as the project management is not under the government
control, in line with the terms and conditions of the
restructuring scheme set by FSPC, DCD is obliged to run settle
the obligations including financial provision for re-
investment/rehabilitation and working capital. Financial sources
are on the hand of DCD in cooperation with Financial
Institutions/Banks.
This debt restructuring scheme fully refers to commercial
considerations in term of the implementation of Indonesian Bank
Restructuring Agency's (IBRA) tasks. The determination of this
debt restructuring is based on results of the due diligence
process (financial and legal) by independent consultants.
As an illustration, the credit extension flow for the Dipasena
plasma farmers run as follows:
In the beginning, one Plasma received a credit facility (in US
Dollar) comprising of:
Investment Credit (KI) - Investment amount to US$42.500 apply to
2 plots of shrimp ponds at 0.20 hectare (ha) included:
waterwheel, pump, generator set and 1 unit house.
Working Capital Credit (KNK) amount to US$22.500 use for
cultivation working capital within 1 year (2 cycles) included
seed, feed, medicine and others.
After Plasma farmers signed the Loan Agreement (PK), the credit
will be transferred to Plasma farmer account and directly debit
to DCD. The disbursement of working capital should be based on
farmer's need for baby shrimp, feeding, medical treatment and
others. These needs are served and recorded by DCD and are
notified to Plasma farmers.
Up to now, Plasma farmer debt is borne by Plasma farmers
themselves who have to repay the debt to Bank BDNI which have a
Corporate Guarantee from DCD. Presently, IBRA is demanding the
certainty on how the owner/debtor can be held responsible on
calculation of sustainable debt that is not borne by Plasma
farmers.
All other process will be run if the Government (IBRA) has the
legal reference on how this debt portion can be claimed back,
through restructuring or another approach.
SURABAYA STOCK: Imminent Closure Looms
--------------------------------------
The Surabaya Stock Exchange (SSX) is facing imminent closure
unless current shareholders agree to infuse fresh capital of
about Rp27 billion into the stock market with base in Java,
Jakarta Post reported yesterday.
SSX Director Hindarmojo Hinuri K. told the Post, "That is one of
the three options that have been forwarded to shareholders to
deal with the exchange's financial difficulties." Another option
being considered is to go on operating with its current
financial capabilities.
Due to the slump in the local stock market, with SSX
transactions volume on a per day average standing at Rp10
billion, SSX have been staying afloat on listing fees alone and
on an encompassing cost-cutting schemed, the Post said.
Hindarmojo further added, "Although we receive stable listing-
fee income of about Rp 100 million per month, this is still far
from enough to cover operating expenses and salaries."
SSX, the first private stock market in the country, is equally
owned by its 23 stock-broking companies.
UFJ GROUP: Liquidating Indonesian Leasing Unit
-----------------------------------------------
UFJ Group intends to liquidate its leasing unit PT Bapindo Loca
Semtra Leasing in October. The unit is based in Indonesia, AFX
reported Monday. The liquidation falls under the company's
restructuring plans.
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J A P A N
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AISIN SEIKI: Posts Net Loss Of Y7.23-B
--------------------------------------
Kyodo reported Tuesday that Aisin Seiki Company posted for
fiscal year 2000 a consolidated net loss of Y7.23 billion, owing
to a write-off of a shortfall in pension and retirement
provisions.
DAIHATSU MOTOR: Maebashi Plant Closure Set For 2005
---------------------------------------------------
According to Daihatsu President Takaya Yamada, a subsidiary of
Daihatsu Motor Company is planning to shut down its main mini-
car producing plant in Maebashi, Gunma Prefecture, in spring
2005, Kyodo reported Monday.
SEAGAIA: Plans To Dismiss All Workers
-------------------------------------
Court-appointed administrator Yasumasa Sato for Phoenix Resort
Limited, the operator of the Seagaia resort complex, is working
out a plan to lay off all employees towards the end of July,
Japan Times Online reported yesterday, citing Seagaia officials.
However, the plan will also call for a rehiring of some of the
laid-off employees later on.
The administrator, the report continued, also assured Seagaia
firms employees that Ripplewood Holdings LLC had been asked to
protect some jobs while cutting others. As of March 1, Seagaia
and its two group firms employed a total of 2,350 workers,
including part-time and temporary workers.
Friday last week, the Miyazaki District Court picked Ripplewood
to spearhead the rehabilitation of the Seagaia resort.
Ripplewood, an American investment firm, has proposed to invest
a total of Y30 billion in the next four years.
SOGO COMPANY: Case Vs Ex-Chair To Be Established
------------------------------------------------
A criminal case is being built by the police against Sogo
Company's former Chairman Hiroo Mizushima. Mizushima is being
accused of allegedly hiding a total of Y155 million worth of
assets from authorities last year, Kyodo reported Tuesday,
citing police sources.
=========
K O R E A
=========
ASIANA AIRLINES: Posts Q1 Loss Of W103.4-B
------------------------------------------
Asiana Airlines, Korea's second-largest carrier, reported a
first-quarter loss as the weak won raised the cost of jet fuel
and servicing foreign currency debt. The Seoul-based airline's
loss was W103.4 billion won in the January-March period compared
with net income of W53.7 billion in the year-earlier period,
Asiana said. First-quarter sales rose 8.4 percent to W514.35
billion.
DACOM: 187 Workers Sign Up For Voluntary Resignation
----------------------------------------------------
A total of 187 employees of fixed-line and Internet service
provider (ISP) Dacom have already availed themselves of the
company's voluntary resignation offer, The Digital Chosun
reported Tuesday. They will be the first to go of the total of
320 employees to be laid off, as part of the company's 1,000
workforce cut program announced in March.
The 187 employees are going to receive, within this month, W3
million to W40 million bonus, apart from regular separation
fees, the report said.
HYUNDAI ENGINEERING: Debt-Equity Swap Moves Forward
---------------------------------------------------
Creditor banks of Hyundai Engineering and Construction Company
(HDEC) is set to pursue its plan to carry out a debt-to-equity
conversion worth W2.9 trillion for the beleaguered Korean
builder, The Korea Herald reported yesterday, citing a senior
official at a creditor bank.
The Herald source said, "A recent due-diligence by accounting
firm Young Wha shows that HEC's losses for 2000 total about 200
billion won more than an earlier estimate. The debt-for-equity
conversion will fully cover the additional loss."
Notwithstanding the announcement in early April by local
accounting firm Samil, saying that the ailing builder incurred a
net loss of W2.9 trillion in 2000, the creditors agreed to go
ahead with the bailout program, the report said.
HYUNDAI ENGINEERING: Minor S-Holders to File Suit
-------------------------------------------------
Some minor shareholders of Hyundai Engineering and Construction
agreed to file criminal suits yesterday against the board of
directors of the beleaguered builder, including the heads of the
Korea Exchange Bank and Korea Development Bank, charging breach
of trust, Business Day Thailand reported, citing the minority
shareholders group's legal counsel William Ha.
The group is opposing a capital reduction move, in which each of
the minority shareholder's 5.99 shares would be melded into one.
This plan, the Day said, was approved last month by the
builder's creditors, in exchange for a bailout package worth
W2.9 trillion.
Minor shareholders, each with stakes of 1 percent or less, in
Hyundai Engineering number 162,000, whose combined stake holding
comprise 75 percent of the company.
HYUNDAI MERCHANT: Only Five Kumgang Tours Retained
--------------------------------------------------
Hyundai Merchant Marine announced early this week that the
company will only retain and proceed with five trips to Mt.
Kumgang starting yesterday until the end of the month, The
Digital Chosun reported Tuesday. Originally, there were 21
scheduled trips within the same period.
Hyundai Merchant, one of the two Hyundai units that operate the
North Korean tourism venture, decided to cancel the rest of the
trips owing to dwindling volume of tourists, the report said.
The company also said it would pull entirely out of the said
venture, citing hefty losses.
HYUNDAI MOTOR: Ranked Fifth Chaebol With Huge Borrowings
--------------------------------------------------------
Hyundai Motor Company and its 15 affiliates have been listed as
one of the 60 chaebols (largest Korean conglomerates) with
excessive debts owed to financial institutions, The Digital
Chosun reported Tuesday. The Hyundai Group ranked fifth in the
list prepared by the Financial Supervisory Service (FSS).
It will be paramount that the Hyundai Group companies work out
their self-rescue plans, which will entail debt repayment
schedules and corporate restructuring.
According to the FSS report, the top five chaebols in the list
comprise 47.7 percent of the total debts owed by the 60 largest
companies in Korea, equivalent to W53.34 trillion. The top five
companies are Hyundai Motor, LG, Samsung, SK and Hyundai, the
report said.
KOREA TELECOM: Divesting Non-Core Operations
--------------------------------------------
The board of directors of Korea Telecom, the state-run
telecommunications firm, have agreed to sell off two of its non-
core operations, namely Korea Telecom International and Korea
Telecom Realty Development and Management, The Digital Chosun
reported yesterday. According to the company announcement, the
former unit is engaged in systems integration operations, which
made W117.1 billion and W4.1 billion in sales and net profit,
respectively. The latter generated sales revenues amounting to
W44.1 billion from management of office buildings owned by Korea
Telecom and real estate properties.
===============
M A L A Y S I A
===============
GEAHIN ENGINEERING: Explains Variance In FY2000 Results
-------------------------------------------------------
Geahin Engineering Berhad announced the following, to explain
the variance between audited and unaudited results for the year
ended December 31, 2000:
Consolidated loss after tax as previously reported: RM35,918,000
Audit adjustments put through by the auditors to reflect fair
value of the carrying assets pending the restructuring exercise:
i) Additional provision for doubtful debts on long outstanding
stale trade debts: RM11,184,000
ii) Net expenditure on abandoned or defunct projects written
off: RM1,100,000
iii) Additional provision of diminution in value in investment:
RM344,000
iv) Addition share of loss in associated company: RM706,000
v) Overdue and default interest expenses now taken up: RM285,000
vi) Other insignificant adjustments (in total): RM170,000
Consolidated loss after tax as per audited accounts:
RM49,707,000
Background
The Company began operations in 1973 with activities mainly
confined to light structural steel fabrication and repairs of
parts and components used in the manufacturing and construction
industries.
After having established a strong foothold in the structural
steel industry, the Company expanded its mainstream activities
in 1978 into the fabrication of larger and more complex steel
structures for power transmission and telecommunication
infrastructural developments. It also diversified into related
civil and structural engineering activities.
At this juncture, the Company was involved in "Build only"
projects. Its range of activities was expanded in 1988 to
"Design, Manage & Build" projects.
Geahin set up in-house engineering design and building services
engineering facilities in 1989. This enabled the Company, in the
same year, to venture further downstream by diversifying into
design, fabrication and erection of space structures.
Over the years, the Company upgraded its manual and semi-
automatic operations into automated manufacturing technology
(AMT) by the addition of computer numerically controlled (CNC)
production facilities. This upgrading exercise increased the
Company's production capacity to its present capacity of 50,000
metric tons per annum.
KEMAYAN CORP: Unit To Dispose Of Oil Palm Lands
-----------------------------------------------
Kemayan Corporation Berhad announced that its wholly owned
subsidiary, Malaysian Agricultural Products Sdn Bhd (MAP) on
May 9, 2001 entered into three inter-conditional sales and
purchase agreements (SPAs) to dispose of its oil palm plantation
lands (MAP Lands) for a total cash consideration of
RM28,415,615.00 as follows:
Name of Purchasers Cash Consideration (RM)
Prosper Palm Oil Mill Sdn Berhad 21,115,615
Winsome Palms Sdn Bhd 3,650,000
Jelma Ikhlas Sdn Bhd 3,650,000
Background information on MAP Lands
MAP Lands are located in Mukim of Bera and Triang, District of
Bera, State of Pahang comprising 3,892.55 acres of oil palm
estate.
Rationale for the Proposed Disposal / Utilization of Proceeds
The Proposed Disposal is in line with Kemayan's commitment to
its bond guarantors as beneficial chargee of MAP Land pursuant
to the Proposed Restructuring Scheme under 176 of the Companies
Act, 1965. The estimated net cash proceed of RM26.3 million
after deducting all direct costs including real property gain
tax shall then be utilised to partially repay Kemayan's
outstanding loans owing to the bond guarantors.
Salient Features of the Sales and Purchaser Agreement (SAP) are:
(a) The cash consideration of RM28,415,615 is receivable as
follows:
i) 10 percent upon signing of the S & P; and
ii) 90 percent within 21 days of the notification of the last
condition precedent having been fulfilled with automatic
extension of 14 days with interest at 8 percent per annum.
(b) The proposed disposal is conditional upon the following:
i) consent of the bond guarantors;
ii) the consent of the High Court of Malaysia for the proposed
disposal;
iii) the consent of the relevant state authority for the
transfer of lands to PPOM;
iv) the approval of the Foreign Investments Committee for
disposal of lands to PPOM;
v) the consent of the Estate Land Board, if required;
vi) the consent of the shareholder of MAP; and
vii) the approval of the shareholders of Kemayan at an
Extraordinary General Meeting to be convened, if required.
Financial Effects of the proposed disposal
a) Net tangible assets (NTA)
The effect on the consolidated NTA of Kemayan on the proposed
disposal is:
Audited as of May 31, 2000 After Proposed
Disposal
RM'000 RM'000
Share Capital 182,302 182,302
Reserves (817,234) (815,665)
Shareholders' Fund (634,932) (633,363)
NTA per share (1.741) (1.737)
b) Earnings
The proposed disposal is expected to give rise to an estimated
exceptional gain after tax of RM1,569,000 to both MAP and
Kemayan group. The gain is not expected to have any material
effect on the consolidated earnings of Kemayan for the financial
year ending May 31, 2001. However, future earnings of Kemayan
group is expected to improve through the relief of debt gearing
ratio as a result of lower outstanding loans.
c) Share holding structure
The proposed disposal will not have any effect on the
shareholding structure of Kemayan.
Directors' Statement
The directors of Kemayan are of the opinion that the terms and
conditions for the proposed disposal is fair and reasonable and
in the best interests of Kemayan group.
Directors' and Substantial Shareholders' Interests
None of the directors nor substantial shareholders nor persons
connected to them have any interests direct or indirect in the
conditional disposal.
Background
The Company originated as a plantation concern developing oil
palm plantations in Pahang and cocoa plantations in Sabah. It
undertook corporate exercises from 1993 to 1995 focusing on
construction and property related activities via the acquisition
of companies and projects. Besides these, the Group is also
involved in other activities like timber logging and saw-
milling, food manufacturing, retailing and trading, education,
aviation, hotel and tourism.
Subsequently, the Company is now undertaking a composite scheme
of arrangement with the objective of returning the Group to
profitability. The scheme involves a proposed capital
reconstruction, rights issue and acquisition/settlements. The
Company obtained a restraining order August 12, 1998 from the
High Court for an initial period of nine months. This has been
extended to September 30, 2000.
PACIFICMAS BERHAD: Posts Results Of EGM
---------------------------------------
PacificMas Berhad announced that its shareholders had at an
extraordinary general meeting held May 14, 2001 (EGM) approved
the following proposals, for which Malaysian International
Merchant Bankers Berhad (MIMB) is acting as adviser:
(i) Proposed bonus issue of 341,987,000 new ordinary shares of
RM1.00 each on the basis of one new share for every one existing
share held; and
(ii) Proposed return of capital to shareholders amounting to
RM512,980,500 on the basis of RM0.75 for every one existing
ordinary share of RM1.00 each held following the listing of the
Proposed Bonus Issue shares on the KLSE, by the cancellation of
RM0.75 from every one existing ordinary share of RM1.00 each and
the consolidation of every four resultant ordinary shares of
RM0.25 each into one ordinary share of RM1.00 each.
The Proposed Bonus Issue and the Proposed Return of Capital are
now subject to the approvals of, inter-alia, the following:
(a) the Securities Commission, for the Proposed Bonus Issue and
the utilization of part of the proceeds from the disposal by
PacificMas of its banking business and related assets and
liabilities amounting to RM512,980,500 for the Proposed Return
of Capital;
(b) the KLSE, for the listing of and quotation for the new
PacificMas shares to be issued pursuant to the Proposed Bonus
Issue, and the consolidated shares of PacificMas pursuant to the
Proposed Return of Capital;
(c) the High Court of Malaya, pursuant to Section 64 of the
Companies Act, 1965 for the Proposed Return of Capital; and
(d) any other relevant party: The consent of creditors of the
Company may be necessary in the event that the Court directs an
inquiry into creditors under Section 64(2) of the Companies Act,
1965. The Company however intends to apply to Court for a
dispensation of such an inquiry).
In addition to the above, the Board of Directors of PacificMas
wishes to announce that the shareholders of PacificMas had at
the AGM/EGM also approved the following:
* the proposed renewal of authority for PacificMas to purchase
its own shares;
* the proposed amendments to the Articles of Association of
PacificMas; and
* all the other resolutions stated in the Notice of AGM dated
April 17, 2001.
REPCO HOLDINGS: Posts 9-Month Net Loss Of RM23.68-M
---------------------------------------------------
Repco Holdings Berhad incurred a net loss of RM23.68 million in
the three-quarter period ended March 31, a drop by around 23
percent from RM30.93 million made in the corresponding period in
the previous year, The Edge Daily reported Tuesday.
Its pre-tax profit dropped 28 percent to RM14.55 million from
RM20.22 million in the same period the other year. Turnover
stood at RM162.23 million, as opposed to RM185.17 in the
preceding year.
Background
Special Administrators (SA) were appointed over the Company and
seven of its subsidiaries on April 8, 1999 by Pengurusan
Danaharta Nasional Bhd, by virtue of the acquisition by
Danaharta Managers Sdn Bhd of the outstanding balances of loans
obtained by the Company and the subsidiaries from a financial
institution.
The SA have assumed control of the Company and a 12-month
moratorium (which has since been extended for a further 12
months) is in place from the date of appointment of the SA. The
SA are presently finalizing a workout proposal.
Repco had been operating in the automotive products, timber and
gaming sectors. The Group's timber division ceased operation
with effect from December 31, 2000 in view that it has not been
granted an extension of time in relation to its timber rights
concession, which has expired.
TRANS CAPITAL: Details Breakdown Of Variance
--------------------------------------------
Reference is made to the Stock Exchange of Thailand's letter
dated May 10, 2001 in relation to its query on the variance
between the Company's unaudited results after tax of
RM59,227,000 announced on February 27, 2001 and the Company's
audited results after tax of RM79,630,960 as per our Annual
Audited Accounts for 2000 received by you on April 30, 2001
showing a variance of RM20,403,960.
Trans Capital Holding Berhad would like to provide the detail
breakdown of the variance as per SET's request:
RM'000
Balance of product development cost written off: RM19,432,000
(these costs may not be recovered from future revenue)
Additional provision for doubtful debts: RM576,000
Additional share of associate company's loss & tax: RM381,000
Other audit adjustments: RM14,000
Total: RM20,403,000.00
Background
The Trans Capital Group is currently in the midst of finalizing
a financial restructuring scheme.
On October 3, 2000, the Company obtained the SC's approval for
its debt restructuring exercise with its financial institution
creditors and, capital raising exercise via rights issue.
The core activity of the Group is the provision of electronic
contract manufacturing services such as printed and flex circuit
board assembly, and total box-built products for the computer,
telecommunications and electronic products.
The bulk of these services and complete end-products, such as
removable hard disk drive and related products, are marketed to
MNCs in Malaysia and overseas, notably to the US, Europe and
Asia Pacific.
A significant portion of its raw materials such as integrated
circuits, components, flexible circuits, are sourced from more
than 400 Malaysian and overseas suppliers. Manufacturing
activities are based at Bandar Seberang Jaya, Prai, Penang.
Current annual production capacity and production output are
approx. (i) 2.4 million pieces and 2.1 million pieces of printed
circuit assemblies for computers respectively; (ii) 2 million
pieces and 1.72 million pieces of flex circuit assemblies for
computers respectively; and (iii) 3.5 million pieces and 2.4
million pieces of printed and flex circuit assemblies for
telecommunication and electrical products respectively.
Annual production capacity and production output amounts to
500,000 pieces and 450,000 pieces for assembly of complete end-
products respectively. Current annual production capacity of
hard disk drive and removable cartridge are 1.44 million and 0.5
million respectively.
Subsidiary, Trans Capital (TCSB) had on November 24, 2000,
entered into an MOU with Optics Storage Pte Ltd (OSPL), Edwin
Long and Chew Juan, shareholder of OSPL and Ashburton Minerals
Ltd (AML) for the subscription of OSPL shares.
These shares will subsequently be converted to AMC shares at a
deemed issue price of A$0.10. This agreement is pursuant to the
proposed listing of OSPL on the Australian Stock Exchange, of
which as a condition precedent, OSPL has to retire its
outstanding debt with major creditors, i.e. TCSB.
The principal activities of OSPL and its subsidiaries are
research and development, manufacture and sale of optical
storage devices for the computer and electronics industry and
distribution of computer peripherals.
=====================
P H I L I P P I N E S
=====================
BENPRES HOLDINGS: Swings To A Net Loss Of P362-M
------------------------------------------------
Benpres Holdings Corporation, due to high financing debt
expenditures and losses made by its subsidiaries ballooning to
P246 million, posted a net loss of P362 million for the first
quarter ended March 31, a reverse from a net profit of P24
million made in the same period last year, Asian Wall Street
Journal reported yesterday.
The company's operating revenues fell to P237 million from P278
million made in the year-ago period, while its expenses
burgeoned to P599 million from P254 million.
To remedy its ailing financial health, Benpres is now working
out schemes to pay the debts of its loss-making units, including
Bayantel and Maynilad Water Services. One of them would be a
disposal of assets, one of which is a fraction of its interests
in a cable television unit, the report said.
INTERNATIONAL CONTAINER: Posts Q1 Loss Of P16.7-M
-------------------------------------------------
International Container Terminal Services Incorporated (ICTSI)
posted for the first quarter a net loss of P16.7 million,
swinging from a net profit of P80 million made in the same
period last year, Philippine Star reported yesterday.
The company, Star said, attributed the loss to the consequences
of amortization of its foreign exchange losses, which quadrupled
to P235 million, and the accretion of the put premium on the
company's convertible bonds worth $130 million. The latter
climbed 12 percent to P109 million from P97 million.
ICTSI's gross revenue went up nearly half to P1.2 billion, while
its operations revenues climbed 65 percent to P645.4 million.
METRO PACIFIC: Q1 Loss Trims Down To P162-M
-------------------------------------------
Metro Pacific Corporation posted for the first quarter ended
March 31 a loss of P162 million, trimming down from P634.2
million in losses for the same period last year, Asian Wall
Street Journal reported Tuesday.
The first-quarter loss was incurred largely, among others, on
higher sales generated from its high-rise projects, the Pacific
Plaza Tower and the Bonifacio Ridge of the Fort Bonifacio
Development Corp.
The company raked in P1.6 billion in sales and an operating
profit of P439 million from the Pacific Towers project, the
report said, citing Metro Pacific President and CEO Ricardo
Pascua.
Moreover, the company's revenues dropped 16 percent to P2.97
billion, from P3.54 billion made in the same period last year.
=================
S I N G A P O R E
=================
ASIA PULP: Appoints Gavin Anderson As PR
----------------------------------------
Asia Pulp & Paper Company (APP) has picked Gavin Anderson &
Company to carry out its media relations, thus doing away with
its in-house investor relations team, Asian Wall Street Journal
reported Tuesday.
According to the report, Gavin Anderson's function would be
crucial at this point for APP, as the company is getting a
barrage of requests for information, especially regarding the
company's financial status.
ASIA PULP: Timetable For Restructuring
--------------------------------------
Asia Pulp & Paper Company (APP) has announced its timetable for
its restructuring program, as follows:
May 2001:
* To provide financial information to restricted creditors.
* Meeting with creditor steering committee. Creditors' advisers
begin review.
June 2001
* Regular update meeting(s) with creditor steering committee.
*Complete audited financial statements for 2000.
March 2002
* Submit restructuring plan for approval.
LIM KAH NGAM: Confirms Auditor Appointment To Primefield
--------------------------------------------------------
The Board of Directors of Lim Kah Ngam Limited ("the company")
announced to confirm that:
(a) The auditors of the company's wholly-owned subsidiary,
Primefield Company Pte Ltd for the financial year ended
December 31, 2000 was Ernst & Young and this appointment
complies with the provision of Clause 902B(4)(b) of the Listing
Manual.
(b) The joint ventures which were audited by other firms of
Public Accountants were not significant as defined under Clause
902B(5) of the Listing Manual except for Shanghai International
Equatorial Hotel Co Ltd (SIEH).
However, SIEH is a 50:50 jointly controlled joint venture and
the company does not have decisive overriding management control
in the joint venture.
VICKERS BALLAS: Court Confirms Capital Redux
--------------------------------------------
Vickers Ballas Holdings Limited ("Company") announce Tuesday
that the proposed capital reduction and distribution in specie
under section 73 of the Companies Act, details of which are set
out in the shareholders' Circular dated April 5, 2001, has been
confirmed by the High Court of the Republic of Singapore May 14,
2001. The Distribution became effective on May 15, 2001 upon
lodgment of an office copy of the Order of Court with the
Registrar of Companies and Businesses.
===============
T H A I L A N D
===============
KULTHORN KIRBY: Reports Progress Re Rehab Plan
----------------------------------------------
Pursuant to the announcement of the Stock Exchange of Thailand
(SET) that Kulthorn Kirby Plc has faced possible delisting from
SET, the company has prepared the rehabilitation plan according
to the SET's regulation and sent it to SET on January 27, 2000.
The company would like to report the progress of plan
implementation for the 1st quarter of year 2001 under the said
rehabilitation plan. The report has two parts as follows:
Part 1: The progress of the plan implementation
Part 2: The company's performance compared to the financial
projection
The details are as follows:
Part 1 : The progress of the plan implementation
Kulthorn Kirby Plc. (KKC)
Action Plan Target Results
Variance
Q1/2001 Q1/2001
Increase sales
(unit : 000 Baht)
Domestic
AE&AZ 158,791 177,965 12.07
percent
AW 19,137 18,315 -4.30
percent
Total Domestic 177,928 196,280 10.31
percent
Indirect Export
AE&AZ 58,310 72,930 25.07
percent
AW 35,981 59,591 65.62
percent
Total - Indirect Export 94,291 132,521 40.54
percent
Export
AE&AZ 11,313 13,622 20.41
percent
AW 4,823 170,293 3,430.85
percent
Pump Kit 1,183 14,218 1,101.86
percent
Total Export 17,319 198,133 1,044.02
percent
Total Sales
Compressors 288,355 512,716 77.81
percent
Pump Kit 1,183 14,218 1,101.86
percent
Total Sales 289,538 526,934 81.99
percent
The actual sales in Q1/2001 was higher than the projected sales
because the sales volume was increased while the selling price
was not different. The actual sales of compressors was higher
than the projection about 78 percent and 1,102 percent for pump
kit. The export sales value of AW model and pump kit was much
higher than the projection because of the weakness of Baht which
helped increasing the export sales volume. So, the total export
sales value was increased unexpectedly.
Kulthorn Kirby Foundry Co., Ltd.
Production
Action Plan Target Results Q1/2001
Target: Increase utilization rate
Results Q1/2001: In Q1/2001, the utilization rate was 31.97
percent, comparing to the projected utilization rate
of 38.53 percent, but it was higher than the utilization rate of
Q4/2000 at 24.10 percent due to the increase in sales volume.
Target: Decrease production cost
Results Q1/2001: In Q1/2001, the unit cost was 91.25 percent
higher than the projected unit cost but lower than the unit cost
in Q4/2000 about 11.37 percent. This was due to the fluctuation
of raw material price.
Marketing
Actual sales volume in Q1/2001 was higher than the projected
sales volume in Q1/2001 and also in Q4/2000 as indicating below:
Unit : 000 Baht
Target Q1/2001 Results Q1/2001 Variance
Casting 41,997 59,586 41.88
percent
Part 2: The company's performance compared with financial
projection
Kulthorn Kirby Plc.
Unit : 000 Baht
Projection
Actual Variance
Q1/2001 % Q1/2001
% Amount %
Sales and services income
312,038 103.94% 560,088 95.09% 248,050
79.49%
Other income
Gain on exchange rate
(23,481) (7.82%) 8,162 1.39% 31,643
134.76%
Interest income
80 0.03% 26 0.01% (54)
(67.50%)
Other
6,304 2.10% 14,349 2.43% 8,045
127.62%
Share of loss from investments in
related companies
5,261 1.75% 6,383 1.08% 1,122
21.33%
Total revenue
300,202 100.00% 589,008 100.00% 288,806
96.20%
Expenses
Cost of sales
293,336 94.01 * 464,862 83.00% * 171,526
58.47%
Selling and administrative expenses
19,030 6.34% 31,413 5.33% 12,383
65.07%
Interest expenses
15,886 5.29% 17,827 3.03% 1,941
12.22%
Total expenses
328,252 109.34% 514,102 87.28% 185,850
56.62%
Net Earnings (loss) from the period
(28,050) (-9.34%) 74,906 12.72% 102,956
367.04%
Remark * Only cost of sales is calculated as a percentage of
sales.
Causes of variance
Revenue
Sales and services revenue
The actual sales revenue of Bt560.09 million was 79.49 percent
higher than the projected sales, due to the increase in sales
volume of approximately 52.15 percent from the projection,
resulting from an increase in export volume.
For selling price, due to the weakness of Baht, the average
selling price calculated in Baht was increased about 15.32
percent comparing to the projected selling price or 16.08
percent higher than the selling price in Q4/2000. In addition,
the weakness of Baht was affected to increase the company's
export income.
The company's revenue from hire of service of Baht 30.85 million
was 37.12% higher than the projection.
Gain on foreign exchange
The actual gain on foreign exchange of Bt8.16 million was higher
than the projection due to the company had already made the
contract for foreign exchange trade in advance. The weakness of
Baht in Q1/2001 did not affect to the company in terms of
foreign exchange.
Share of profit (loss) from investment in related parties
The company had share of profit from investment in related
companies higher than the projected in Q1/2001 and also in
Q4/2000. Due to in Q4/2000 the company still had to book share
of loss from KCC Bt4.56 million.
According to the company's debt restructuring plan, the company
planed to sell out investment and loan to Kulthorn Controls Co.,
Ltd. (KCC) at the end of Q4/2000, so the projection did not
record loss from KCC in Q1/2001. In addition, in Q1/2001, KKF
had net profit of Bt6.38 million and higher than the projected
about Bt1.12 million. The total actual share of profit from
investment in related companies was Bt6.38 million.
Cost of sales
The actual cost of sales was 83.00 percent of sales. This
percentage was lower than the projection, which was 94.01
percent, then the gross margin was increased from 5.99 percent
according to projection to 17.00 percent.
However, as compared with Q4/2000, this percentage rose by 23.03
percent due to the increase in sales volume, which also affected
to increase total cost of sales.
Selling and administrative expenses
In Q1/2001, the actual selling and administrative expenses of
the company were Bt31.41 million or 5.33 percent of sales and
services income, which were also higher than the projected
selling and administrative expenses. Due to the increase in
sales and services income which affected to increase the
selling and administrative expenses.
Net Profit (Loss)
The company's performance was net profit of Bt74.91 million
higher than projection, which was net loss Bt28.05 million about
Bt102.96 million. The profit derived from increasing in sales
revenue and the company did not have to book share of loss from
KCC.
Kulthorn Kirby Foundry Co., Ltd.
Unit : 000 Baht
Projection Actual Variance
Q1/2001 % Q1/2001 % Amount
%
Sales and services income
41,997 99.10% 59,587 98.90% 17,590
41.88%
Other income
382 0.90% 6643 1.10% 282
73.82%
Total revenue
42,379 100.00% 60,251 100.00% 17,872
42.17%
Expenses
Cost of sales and service
30,391 72.36% 48,637 81.62% 18,246
60.04%
Selling and administrative expenses
2,859 6.75% 1,558 2.59% (1,301)
(45.51%)
Interest expenses
3,868 9.13% 3,672 6.09% (196)
(5.07%)
Total expenses
37,118 87.59% 53,867 89.40% 16,749
45.12%
Net Earnings (loss) from the period
5,261 12.41% 6,384 10.60% 1,123
21.35%
Remark * Only cost of sales is calculated as a percentage of
sales.
Causes of variance
Revenue
In Q1/2001, the actual sales of Bt59.59 million were 41.88
percent higher than the projected sales, due to the increase in
sales volume of approximately 22.33 percent from the projection
and 13.86 percent from Q4/2000. The selling price was close to
the previous quarter, but higher than the projection 15.98
percent.
Cost of sales
In Q1/2001, the actual cost of sales was 81.62 percent,
decreased from 85.33 percent in Q4/2000 because of some raw
materials price was decreased. Comparing to the projected cost
of sales which represented 72.36 percent of projected sales, so
the actual gross margin, which was 18.38 percent, was lower than
24.80 percent according to the projection. The cost of sales was
increased because the company had increased workers and wages
since Q1/2000. Moreover, the increase in the electricity rate
and maintenance expense also affected the cost.
Selling and administrative expense
The actual selling and administrative expense was less than the
projection about Bt1.30 million because the projection had
written off the pre-operating expenses Bt1.4 million per
quarter. In fact, the company had already written off all of it
in Q4/1999 according to the accounting standard.
Net Profit (loss)
The actual net profit of Bt6.38 million was higher than the
projection of Bt5.26 million as shown in the projection and
Bt1.76 million in Q4/2000 because the increase in sales volume
which was affected to the total revenue.
SAFARI WORLD: Explains First-Quarter Loss
-----------------------------------------
In the first quarter of 2001, Safari World Public Company
Limited had an operating loss of Bt116.69 million, consisting of
its own loss of Bt50.28 million and that of Bt66.41 million of
Phuket FantaSea Co., Ltd., its subsidiary.
Comparing to the same period of 2000 when the Company and its
subsidiary had a combined loss of Bt92.43 million, the total
loss had increased by 26.2 percent, which was caused by the
changes of the major revenues and expenses as follows:
1. The Company had a revenue of Bt100.68 million, decreased by
Bt56.78 million or a decrease of 36.1 percent from Bt157.46
million in the same period of 2000, consisting of the changes in
the following revenues.
1.1 In the first quarter of 2001, the Company had an
extraordinary income of Bt58.84 million from the reversal of the
recorded accrued interest expense of a loan of Bt1,275 million;
the Company had not paid the interest due of the loan since the
middle of 1998.
On March 29, 2000, the Company signed a debt restructuring
agreement with the lending bank. Consequently, the bank had
reduced the accrued interest rate from the maximum default rate
to MLR plus 0.25 percent and thus had substantially reduced the
accrued interest of the Company.
1.2 The ticket revenue had decreased by Bt2.78 million from
Bt47.27 million in 2000 to Bt44.49 million in 2001 because of
the decrease in the number of visitors.
1.3 The non-ticket revenues, such as revenues from food and
beverages, souvenirs, games, coach rental and other
miscellaneous items, totaling Bt41.49 million, had decreased by
Bt0.59 million from Bt42.08 million in the same period of 2000.
The decreases were caused by the reduction in the number of
visitors. The interest income from the loan lent to the
subsidiary had increased by Bt5.43 million since the Company had
lent more loan to the subsidiary.
2. In the first quarter of 2001, the Company had the cost and
expenses of Bt217.37 million, consisting of its own cost and
expenses of Bt150.96 million and the subsidiary's loss which was
recorded as the Company's expense of Bt66.41 million.
The cost and expenses of the Company had decreased by Bt32.52
million from Bt249.89 million in the same period of 2000 since
the Company did not have to write off the values of the dead
animals and the removed and unused building assets from the
accounts, in order to comply with the Accounting Standard
Relating to The Impairment of Assets, as incurred in the first
quarter of 2000.
3. In the first quarter of 2001, Phuket FantaSea Co., Ltd., the
subsidiary, had an income of Bt149.67 million while its cost and
expenses were Bt216.10 million.
Therefore, it had a loss of Bt66.43 million which the Company
had to record approximately Bt66.41 million, according to the
equity method, as its expense. Comparing to the same period of
2000, the subsidiary's loss which the Company had to record as
its expense had increased by Bt9.16 million since the
subsidiary's cost and expenses had increased by Bt10.25 million
while its revenue had increased by only Bt1.09 million, the
reasons of which were as follows:
3.1 The increase in such cost and expenses consisted mainly of
the increases in the costs of food, beverages, and souvenirs due
to the increase in the number of the visitors by 32.2 percent
from the same period of 2000.
3.2 Although the subsidiary's revenues from ticket, food,
beverages, souvenirs, and other miscellaneous items had
increased by Bt40.57 million as the number of the visitors
increased, when comparing with the revenue of the first quarter
of 2000 while the subsidiary had an extraordinary income of
Bt39.48 million from the reversal of the accrued interest due to
the Company per the Company's aforementioned debt restructuring
agreement; the total revenue of the subsidiary in 2001 had thus
increased only by Bt1.09 million.
In conclusion, Safari World had an increase of 26.2 percent in
its operating loss from the first quarter of 2000. This was
because in 2001, the Company and its subsidiary did not have any
extraordinary income from the reversal of the recorded accrued
interest expense as incurred in the first quarter of 2000.
TANAYONG PUBLIC: Added Info On Unrealized Forex Losses
------------------------------------------------------
Tanayong Public Company Limited announced the following to
provide additional information on the company's unrealized
foreign exchange losses caused by the unexpected flotation of
the Thai Baht for the year ended March 31, 2001, which was
reviewed by Ernst & Young Office Limited. Thus:
(Thousand
Baht)
Consolidated The
Company
Foreign Currencies Loan
as at 30 June 1997 3,918,016
3,918,016
as at 31 Mar 2001 6,811,419
6,811,419
Loss on foreign exchange
Unrealized 2,893,403
2,893,403
Additional information of debt in foreign currencies
Accounting policy
As of March 31, 2001 the Group maintains liabilities, consisting
of long-term and short-term borrowings denominated in United
State Dollars, amounting to US$794.9 million, which are
presented in the financial statements as current portion of the
long-term loans due within one year and loans from financial
institutions. These loans have not been hedged by forward
contracts or others similar measures.
Consequently, the Group fully recognized a translation loss of
Bt2,893.4 million resulting from the decline of the Thai Baht
value.
Debt due in each accounting period
Before Mar 31, 2001: US$245.3 million or equivalent to
Bt11,019.5 million.
After Mar 31, 2001: US$549.6 million or equivalent to Bt24,689.4
million.
The Company has temporarily ceased interest payment and the loan
principals become immediately due and payable. The Group's loan
principals are therefore presented in the financial statements
as current liability, however the liability of BTSC is still
presented as long-term loan.
Other pertinent information of debt denominated in foreign
currencies
Tenor
BTSC foreign currency loans are due for repayable as from July
2002
Repayment schedule
Every 6 months.
Interest period
Every 6 months.
Main obligation in loan agreements
Negative pledge and the requirement to maintain a certain
percentage of shareholding as well as the requirement to
maintain a certain debt-to-equity ratio.
SIAM CITY CEMENT: Will Sell Off Non-Core Assets
-----------------------------------------------
Cement-producing giant Siam City Cement Public is planning to
sell its only remaining non-core subsidiary Karat Faucet
Company, and other non-operating assets, all with a combined
worth of BT2.5 billion, Bangkok Post reported Tuesday,
Senior Vice President (for finance and control) Beat Malacarne
told Post, "As part of restructuring to focus on cement and
concrete production and become leaner and meaner, we're on the
verge of selling Karat Faucet and 100 non-operating warehouses."
Although a deal is underway to sell off Karat Faucet, Malacarne
added that the company is biding its time to consummate the
sale, which would be done via a management buyout, or either a
direct disposal or a partnership, the report said.
Karat Faucet is a wholly-owned subsidiary of Siam City Cement,
whole total value is estimated to comprise of not more than 5
percent, or equivalent to between Bt400 million to Bt500
million, of the total assets of its parent company.
SINO-THAI: Reports Progress Of Rehab Plan
-----------------------------------------
Sino-Thai Resources Development Public Co., Ltd. in coordination
with Yuanta Securities (Thailand) Co., Ltd., as financial
adviser, announced its report on the actual performance compared
with the projection on the Company's Rehabilitation Plan in
compliance with the Stock Exchange of Thailand requirements to
refrain from the grounds of delisting.
Summary of Actual Performance Of First Quarter In Y2001
For the period of 3 months ended of March 31, 2001, the Company
recorded total revenue of Bt49.28 million, relatively higher
than the projection by Bt10.20 million or 26.11 percent. The
increasing of income was predominantly attributable to the
improvement of production and the discovering of high quality
deposit.
Therefore, the income from tin ore showed the amount of Bt44.47
million, increasing by Bt13.36 million or 42.96 percent.
According to the decreasing in demand of industrial stone, the
income from industrial recorded only Bt3.31 million, lower than
expected by Bt3.33 million or 50.2 percent.
The revenue from vessel posted Bt1.05 million, lower than
expected by Bt20,000 or 1.87 percent. Consequently, the net
profit before depreciation showed the amount of Bt1.28 million.
After recording the depreciation from the excess cost of the
additional asset under the accounting standard volume 32 with
the amount of Bt0.94 Million. The net profit recorded only
Bt0.34 million, slightly lower than expected.
Explanation On The Significant Variance Of The Actual
Performance And Projection
Revenue from Tin Ore
Revenue from tin ore of Bt44.47 million was materially higher
than the projection by Bt13.36 million or 42.96 percent
primarily resulting from the improving of production and the
discovering of the high quality deposit Therefore, the revenue
from Tin Ore was higher than expected
Revenue from Industrial Stones
Revenue from industrial stones of Bt3.31 million was lower than
the projection by Bt3.33 million or 50.20 percent. The sharply
decreased of the revenue from industrial stones was mainly came
from the dramatically slowdown of the private constructions and
the government projects have been postponed.
Other Income
Other income of Bt0.46 million was favorably higher than the
projection by Bt0.19 million or 72.48 percent due to the cash
back from lawyer fee and profit from selling non-cored assets.
Cost of Sales and other expenses
Cost of tin ore production of Bt41.95 million was higher than
the projection by Bt13.61 million or 48.04 percent. Due to the
increasing in sale and Cost of industrial stone production of
Bt3.57 million was lower than the projection by Bt2.85 million
or 44.44 percent mainly resulting in conjunction with the
decreasing in sale.
Selling and administrative expense was slightly lower than the
projection by Bt0.51 million, resulting from the Company has
efficiently managed and clearly specified.
Summary of Actual V.S. Projected Operating Performance
For the 3-Month Period Ended 31 March 2001
(Amount in Thousand Baht)
Actual Forecast Variance %
Revenue:
Sales from Tin Mining
44,466 31,104 13,362 42.96
Sales from Quarry for
Construction 3,305 6,636 (3,331) (50.20)
Sales from Leasing of Dredgers
1,050 1,070 (20) (1.87)
Other Income 461 267 194 72.48
Total 49,281 39,077 10,204 26.11
Cost and Expenses:
Cost of Sales-Tin Mining
41,001 28,334 13,613 48.04
Cost of Industrial Stones
3,567 6,420 (2,853) (44.44)
Selling&Administrative Expenses
2,798 3,308 (510) (15.41)
Depreciation from additional asset
946 - - -
Interest Expenses 630 630 - -
Total 48,942 38,692 10,250 26.49
Net Profit (Loss) 339 385 (46) (11.92)
SALE (Baht '000) QUANTITY (Haab)
2001(Q1) 2000(Q1) 2001(Q1) 2000(Q1)
January 14,844 4,522 1,386 456
February 13,212 7,873 1,252 826
March 16,410 8,564 1,569 920
Total 44,466 20,959 4,207 2,202
SALE (Baht '000) QUANTITY (Ton)
2001(Q1) 2000(Q1) 2001(Q1) 2000(Q1)
January 950 1,468 12,672 19,671
February 1,276 1,154 16,284 15,370
March 1,079 1,864 14,792 24,391
Total 3,305 4,486 43,748 59,432
S U B S C R I P T I O N I N F O R M A T I O N
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Copyright 2000. All rights reserved. ISSN: 1520-9482.
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