/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/010913.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, September 13, 2001, Vol. 4, No. 179 Headlines * A U S T R A L I A * ANACONDA NICKEL: Glencore Increases Shares BEACONSFIELD GOLD: Director Resigns, WFC Surrenders Mandate CABLE & WIRELESS: Companies Cease to Be Holders KUSP LIMITED: Senetas Integrates KUSP With Datum KUSP LIMITED: Suspended From Official Quotation NORMANS WINES: Appoints Receivers & Managers ORANGE MIRRIWINNI: Posts Case Profile PACIFIC DUNLOP: Annual General Meeting to Be Held on Oct 12 * C H I N A & H O N G K O N G * FOURSEAS.COM: Parallel Trading to Start Today GLOBAL-TECH: Discusses Impact of Moulinex Court Filing J&R BOSSINI: Winding Up Sought by Bossini Apparel KA SHING: Winding Up Petition Hearing Set MANDARIN RESOURCES: Considers Asset Disposal NETEASE.COM: Appoints Sun as New Acting Chief Executive Officer RICHLINK TECHNOLOGIES: Winding Up Petition Pending RISING MORE: Petition to Wind Up WAI TAI: Hearing of Winding Up Petition Set * I N D O N E S I A * PLN: Govt. Orders Idle Dieng Plant to Operate * J A P A N * ASAHI BANK: Fitch Places Ratings on Watch Negative FUJITSU LTD: To Close or Sell US Subsidiary FITCH: Hosts Conference Call on Japanese Banks * K O R E A * CHO YANG SHIPPING: Court Declares Company Bankrupt KOREA ELECTRIC: Receives US$638M From KEDO KOREA EXPRESS: To Issue W20.8T Convertible Bonds HYNIX SEMICONDUCTOR: Creditors Banks to Finalize Bailout Package HYUNDAI SEMICON: KDB Buys W1.166T Hyundai Bonds * M A L A Y S I A * ABRAR CORPORATION: General Meeting to Be Held on Sept 21 AUSTRAL AMALGAMATED: Moratorium Further Extended BESCORP INDUSTRIES: Units Disposes Assets as Liquidation Move BESCORP INDUSTRIES: Updates Default in Payment MALAYSIAN RESOURCES: Enters Contra Agreement With BIS PILECON ENGINEERING: Subsidiary Faces Winding-Up Petition RAHMAN HYDRAULIC: Seeks to Strike-Out Writ of Summons SPORTMA CORPORATION: Creditors' Voluntarily Liquidates Units SRI HARTAMAS: Bartercard Terminates Joint Venture Agreement TIMBERMASTER INDUSTRIES: KLSE Grants Time Extension Application * P H I L I P P I N E S * COSMOS BOTTLING: PSE to Determine Rule Violation COSMOS BOTTLING: RFM Moves to Thwart Lawsuit PHILIPPINE GLOBAL: Completes P400M Debt Restructuring QUEZON POWER: Ratings For Possible Downgrade, Says Moody's * S I N G A P O R E * ASIA PULP: Bapepam Investigates Indonesia Operations BRIERLEY INVESTMENTS: Requests For Suspension KEPPEL CORPORATION: Willing to Cut SPC Stake to Under 50% * T H A I L A N D * MEDIA OF MEDIAS: Reports Rehabilitation Plan Progress THAI MODERN: Explains Q201 Gross Margin Increase THAI WAH: Business Reorg Petition Filed in Bankruptcy Court TPI POLENE: Creditors Not Likely to Extend Deadline ================= A U S T R A L I A ================= ANACONDA NICKEL: Glencore Increases Shares ------------------------------------------ Glencore International AG increased its relevant interest in Anaconda Nickel Limited on 10/September/2001, from 84,349,180 ordinary fully paid shares (22.73%) to 155,868,019 ordinary fully paid shares (33.77%). BEACONSFIELD GOLD: Director Resigns, WFC Surrenders Mandate ----------------------------------------------------------- Beaconsfiled Gold NL announced that Mr Chris Ryan resigned as a director of the company on September 10, 2001. Mr Ryan, the principal of Westchester Corporate Finance (WCF), had been appointed as a director of Beaconsfield Gold on 16 August 2001. The company also informed that on 10 September 2001, WCF surrendered its mandate to provide advice and assistance, on a contingent basis, to Beaconsfield Gold. The company had mandated WCF on 1 August 2001. CABLE & WIRELESS: Companies Cease to Be Holders ----------------------------------------------- Cable & Wireless Australia & Pacific Holding BV, Cable & Wireless Plc ceased to be a substantial shareholder in Cable & Wireless Optus Limited on 06/September/2001. KUSP LIMITED: Senetas Integrates KUSP With Datum ------------------------------------------------ Senetas Corporation Limited posted the statement made by Chairman and Chief Executive Officer Francis Galbally: Senetas has commenced the integration of KUSP with its operating division Datum Group. Considerable savings and cross marketing synergies have already been identified by the management teams in both businesses. As a result of the integration KUSP (which will for the time being retain its brand name) will be the cornerstone of the e- commerce solutions, web development and multimedia services; offered by Datum. Viewpoint Inc, which has provided KUSP with an exclusive Licence in Australia and New Zealand for its interactive software, has welcomed the merger with Datum Group. The CEO of KUSP Dael Perlov has forecast that the integration of KLISP with Datum Group should see the June 2002 result as profitable for the business with a revenue contribution to the Datum Group businesses of approximately $2 million ABOUT KLISP KUSP is a business focused on developing interactive software solutions. Utilizing underlying technology from Viewpoint USA, KUSP's is able to build solutions that reduce a client's cost of operation and increases the likelihood of sales. KUSP develops the solution for a client, sells the licence to use the solution and retains the Intellectual Property (IP) for the solution. This solution can then be re-sold to other clients. The benefit to KUSP is the margin on all subsequent sales is much higher as the development has been largely completed. KUSP's business has 5 main areas: 1. Front end kiosk development 2. Application software development that focuses on delivery over the internet 3. Contract modeling services (export business) 4. 3-dimentional training, education and gaming applications 5. Product development and launch visualization assistance ABOUT DATUM GROUP The Datum business, which is 12 years old, has an enviable track record in developing its own technologies as well as providing technology solutions for business in Australia and overseas. Datum currently has four main areas of activity: * the provision of business intelligence solutions through data management and warehousing and information reporting; * e-commerce solutions, web development and multimedia services; * mobile computing which has access to proprietary software as well as advising business on the implementation of mobile and remote computing applications; and, * software development with world-class financial and accounting applications. For further information contact: Francis Galbally Chairman and Group Chief Executive Officer Senetas Corporation Limited Phone: 03 9868 4555 Fax: 03 9821 4899 KUSP LIMITED: Suspended From Official Quotation ----------------------------------------------- Kusp Limited (the Company) will be suspended from official quotation at the close of trading on Monday 17 September following receipt by Australian Stock Exchange of a copy of the compulsory acquisition notice dispatched to shareholders. The Company will also be removed from the official list at the close of trading on Thursday 20 September as a result of its compulsory acquisition by Senetas Corporation Limited. NORMANS WINES: Appoints Receivers & Managers -------------------------------------------- Normans Wines Limited advised the appointment of B J Carter & J M Spark of Ferrier Hodgson as Receivers and Managers of the Company. B J Carter of Ferrier Hodgson of Level 6, 81 Flinders Street, Adelaide 5000 in the state of South Australia and J M Spark of Ferrier Hodgson of Level 25, 140 William Street, Melbourne 3000 in the state of Victoria, Chartered Accountants, were on 30 July 2001. The company advised that Normans will not be complying with ASX Listing Rule 17.5 during the period of the receivership. ORANGE MIRRIWINNI: Posts Case Profile ------------------------------------- Orange Mirriwinni Aboriginal Corporation posted this case profile: Territory : Australia Company Name: Orange Mirriwinni Aboriginal Corporation Lead Partner: Ian Hall Case Manager: Nicholas Carter Date of Appointment : 12 May 1999 Normal Contact : Roz Watson Contact Phone No : (07) 3257 8600 PwC Office Location : Brisbane PO Box : GPO Box 150 Street Address: Waterfront Place, 1 Eagle Street City : BRISBANE State : QLD Postcode : 4001 DX : DX 77 Brisbane Phone : (07) 3257 5000 Fax : (07) 3257 8004 Appointor : Supreme Court of Queensland Type of Appointment : Liquidator Lead Partner - Full Name: Ian Richard Hall Second Partner - Full Name: Peter James Hedge Case Information First Creditors' Meeting Date : 8 November 2000 Time : 10am Brisbane time Address: Level 11 Waterfront Place, 1 Eagle Street Brisbane 4000 Proxy return date : 7 November 2000 Return time : 12:00 PM Second Creditors' Meeting (or adjournment) Date: N/A Annual General Meeting Date: N/A Other Key Information Report as to Affairs received from directors: None received Dates of trading by insolvency practitioner: Not traded Business sold/ceased trading: Background Information The corporation went into liquidation on 12 May 1999, with Ian Hall and Peter Hedge being subsequently appointed liquidators on 2 September 1999. The corporation was incorporated to obtain funding to develop infrastructure for the Aboriginal community in the Orange area of NSW. Investigations into the affairs of the company have been limited by the lack of records recovered. A meeting of creditors has been called for 8 November 2000. Current status of assignment and actions required by creditors Process of realizing property and ascertaing creditors. Next milestone and estimated timetable Meeting of creditors on 8 November 2000 Likely outcome for creditors and timetable It is likely there may be a dividend for creditors depending on the extent of realizations. The administration should conclude by April 2001. PACIFIC DUNLOP: Annual General Meeting to Be Held on Oct 12 ----------------------------------------------------------- Pacific Dunlop Limited notified that the 81st annual general meeting of the Company will be held in the John Batman Theatre at the Melbourne Convention Center, corner Flinders and Spencer Streets, Melbourne, Victoria, on Friday, 12 October 2001 at 11.00am. ORDINARY BUSINESS (1) To receive and consider the financial and other reports for the yea ended 30 June 2001. (2) To elect three Directors * Ms S C H Kay retires by rotation and being eligible offers herself for re-election. * Mr I E Webber retires by rotation and being eligible offers himself for re-election. * Mr H J Elliott who was appointed a Director on 15 February 2001 retires in accordance with Article 79 and being eligible offers himself for re-election. (3) To transact any other business that may be legally brought forward. ================================ C H I N A & H O N G K O N G ================================ FOURSEAS.COM: Parallel Trading to Start Today ---------------------------------------------- Fourseas.com Limited advised market participants to note that the parallel trading in the ordinary shares of the Company will commence at 10:00 a.m. on Thursday, 13/September/2001 under the following particulars: Stock Code Stock Short Name Board Lot Cert. Colour ---------- ---------------- --------- ------------ 755 FOURSEA.COM-NEW 5,000 shares Beige 2970 FOURSEA.COM-OLD 500 shares Pink Settlement of trading at each counter shall be in respect of the shares traded at the respective counters. GLOBAL-TECH: Discusses Impact of Moulinex Court Filing ------------------------------------------------------ Global-Tech Appliances Inc.(NYSE: GAI) Tuesday announced that one of its customers, Moulinex S.A., has sought protection from its creditors with the Nanterre Commercial Court in France. The Court has decided to place Moulinex under compulsory administration for a six-month observation period. The Company currently has outstanding receivables of approximately $0.5 million due from Moulinex that may not be recoverable and inventories of approximately $2.4 million covered by purchase orders specifically dedicated to this customer. While Moulinex represented approximately 14% of Global-Tech's net sales in the fiscal year ended March 31, 2001, the Company had anticipated a decrease in net sales in the second and third quarters of fiscal 2002 as a result of the overall softness in the economy, particularly in Europe, which is expected to lessen the impact of Moulinex's action. Since the actions to be taken by Moulinex or the Court are unclear, the potential impact on the Company is not assessable at this time. Such actions, however, are not expected to have a material effect on the net assets of the Company. Global-Tech is an original designer, manufacturer, and marketer of a wide range of small household appliances in four primary product categories: kitchen appliances; garment care products; travel products and accessories; and floor care products. The Company's products are marketed by its customers under brand names such as Black & Decker(R), DeLonghi(R), Dirt Devil(R), Hamilton Beach(R), Krups(R), Morphy Richards(R), Moulinex(R), Mr. Coffee(R), Proctor-Silex(R), Sunbeam(R), and West Bend(R). J&R BOSSINI: Winding Up Sought by Bossini Apparel ------------------------------------------------- Bossini Apparel Limited is seeking the winding up of J&R Bossini Trading Limited. The petition was filed on August 9, 2001, and will be heard before the High Court of Hong Kong on November 21, 2001 at 9:30 am. Bossini Apparel holds it registered office at 6th Floor, Hong Kong Spinners Industrial Building, Phases I & II, Tai Nan West Street, Kowloon, Hong Kong. KA SHING: Winding Up Petition Hearing Set ----------------------------------------- The petition to wind up Ka Shing Electric Mfg. Co. Limited is scheduled for hearing before the High Court of Hong Kong on September 26, 2001 at 9:30 am. The petition was filed with the court on July 4, 2001 by Chung Tai Printing (China) Co. Limited, whose registered office is situate at Chung Tai Printing Group Building, 11 Yip Cheong Street, On Lok Tsuen, Fanling, New Territories, Hong Kong. MANDARIN RESOURCES: Considers Asset Disposal ------------------------------------- The board of directors of Mandarin Resources Corporation Limited (except for Mr. Yeung Kang Lam and Ms. Yau Wai Fan who remain uncontactable) (the Board) has noted the recent increase in the price and trading volume of the shares of the Company and wishes to state that, save as disclosed herein and for the information disclosed in the Company's announcements dated 5th and 7th September, 2001, it is not aware of any reasons for such increase. The Board would also like to inform shareholders of the Company that it is considering disposal of certain assets of the Company and/or its subsidiaries, which may constitute notifiable transaction(s) under Chapter 14 of the Listing Rules. The said transaction(s) may or may not materialize. Further announcement(s) will be made, if appropriate. NETEASE.COM: Appoints Sun as New Acting Chief Executive Officer --------------------------------------------------------------- NetEase.com, Inc. (Nasdaq:NTESE), a leading Internet technology provider in China, announced that its Board of Directors had appointed one of the members of the Board, Mr. Ted Sun, to serve as its acting Chief Executive Officer. It is anticipated that Mr. Sun will remain in this interim position until the company locates a suitable permanent replacement. Mr. William Lei Ding who had been serving as both acting Chief Executive Officer and acting Chief Operating Officer since May 2001 will step down from those positions, effective Tuesday. Mr. Ding will also step down as Chairman of the Company's Board of Directors but will remain a member of the Board. In addition, he will remain in the non-managerial position of Chief Architect, in which role he will give advice to the Board regarding the company's strategic direction and product development. Mr. Sun has served as one of the company's directors since December 1999 and as a consultant to the company since July 2001. From July 2000 to the present, he has served as the Chief Financial Officer of Infoserve Technology Corporation, a provider of advanced telecommunication services. He previously was a Managing Director with Bear Stearns Asia Limited. Commenting on this appointment, Mr. Ding said, "NetEase.com faces many internal and external challenges as it moves forward in the current difficult market conditions. At this time, I think it is most appropriate that I focus my efforts on assisting the company to develop the right strategic orientation and provide guidance on repositioning and strengthening its product offerings in order to secure its long-term success in the China market." Mr. Ding further stated, "On behalf of the company and its Board of Directors, I wish to thank Ted for assuming this responsibility during a difficult time in the company's history. We have no doubt that Ted's wide business experience, combined with his proven dedication to NetEase.com, will make him an effective Chief Executive Officer and that he will quickly make a significant contribution to the management and operations of the company." Mr. Sun said, "I am ready for the challenges that lie ahead and will strive to justify the confidence the Board of Directors has shown in appointing me to this position. I share with William Lei Ding a tremendous enthusiasm for the potential of the Chinese Internet market in general and NetEase.com's business in particular, and I, together with the company's Board, management and staff, look forward to helping the company fully achieve its potential." Separately, NetEase.com confirmed Tuesday that, in connection with its appeal of Nasdaq's decision to delist the company's American Depositary Shares from the Nasdaq National Market, it has received a written request for additional information from the Nasdaq Listing Qualifications Hearings Department and is now working to prepare a response to that request. The company expects that trading in its shares will remain suspended until the company provides the information requested and the hearing appeal panel reaches its final decision. There can be no assurance as to whether the Nasdaq appeal panel will be satisfied with the information provided and allow the company's shares to remain listed. It is also possible that Nasdaq may request additional information in the future which could delay the Nasdaq appeal panel decision. An unfavorable decision would result in immediate delisting of the company's American Depositary Shares from the Nasdaq National Market irrespective of the company's ability to further appeal the decision. About NetEase.com NetEase.com, Inc. is a leading China-based Internet technology company and pioneered the development of applications, services and other technologies for the Internet in China. The NetEase.com Web sites, operated by its affiliate, organize and provide access to 18 content channels through content distribution arrangements with approximately 115 international and domestic content providers. In addition, the NetEase.com Web sites contain over 1 million personal home pages created and maintained by users that enable users to express themselves, share items, interests and areas of expertise and to publish personal content accessible by other Chinese Internet users. The NetEase.com Web sites also offer online interactive community services through 1,500 community forums and over 115,000 personal community forums created by registered users. At the end of July 2001, the number of simultaneous chat room participants reached approximately 55,000 during peak hours, and the number of registered users of the NetEase.com Web sites reached 27 million. Further, the average number of daily page views was over 127 million in July 2001. NetEase.com also offers auction and online mall technology services, which provide opportunities for e-commerce and traditional businesses to establish an online e-commerce presence on the NetEase.com Web sites. RICHLINK TECHNOLOGIES: Winding Up Petition Pending -------------------------------------------------- Richlink Technologies Limited is facing a winding up petition, which is slated to be heard before the High Court of Hong Kong on September 12, 2001. The petition was filed on June 26, 2001 by Sin Hua Bank Limited, Hong Kong Branch, whose principal place of business is situated at 2A Des Voeux Road Central, Hong Kong. RISING MORE: Petition to Wind Up -------------------------------- The petition to wind up Rising More Limited is set for hearing before the High Court of Hong Kong on December 12, 2001 at 9:30 am. The petition was filed with the court on August 22, 2001 by The China State Bank Limited, a banking corporation duly incorporated in The People's Republic of China and having a branch office at China State Bank Building, 39-41 Des Voeux Road Central, Hong Kong. WAI TAI: Hearing of Winding Up Petition Set ------------------------------------------- The petition to wind up Wai Tai Management & Consultants Limited will be heard before the High Court of Hong Kong on September 12, 2001 at 9:30 am. The petition was filed with the court on June 26, 2001 by The Kwangtung Provincial Bank, Hong Kong Branch, whose principal place of business is situated at 1st-3rd Floors, Euro Trade Center, 13-14 Connaught Road Central, Hong Kong. ================= I N D O N E S I A ================= PLN: Govt. Orders Idle Dieng Plant to Operate -------------------------------------------- State-owned electricity company PLN has been instructed by the government to operate the inactive geothermal power plant Dieng to obtain cash for the repayment of a US$260 million claim made by the U.S. insurance firm Overseas Private Investment Corp (OPIC), Jakarta Post reported Wednesday citing Minister of Energy and Mineral Resources Purnomo Yusgiantoro. The Dieng geothermal power plant was originally owned by the American independent power producer (IPP), CalEnergy Company Inc. The company, however, abandoned the power projects in 1998 following a dispute with PLN and the government, which ordered it to halt the project in a belt-tightening effort to cope with the economic crisis. MidAmerican then filed arbitration proceedings against PLN and the government and won the dispute. OPIC, which is an insurance firm owned by the U.S. government, paid the company $260 million in compensation. But, OPIC subsequently demanded the Indonesian government and PLN reimburse the insurance claim. According to Purnomo, state-owned oil and gas company Pertamina was interested in operating the power plant, but it had yet to make a final decision. "The government is still discussing whether to give the operation to a new company jointly owned by PLN and Pertamina," Purnomo said. ========= J A P A N ========= ASAHI BANK: Fitch Places Ratings on Watch Negative -------------------------------------------------- Fitch, the international rating agency, has placed the ratings of Asahi Bank, Ltd. (Asahi) on Rating Watch Negative. The bank's current ratings are Long-term 'BBB+', Short-term 'F2', Individual 'D/E' and Support '2'. With stock prices slumping worldwide and especially weak market conditions in Japan, Asahi's shares have come under speculative attack in recent days amidst a variety of rumors, which the bank describes as "without foundation". Although Asahi maintained risk adjusted capital ratios that were well in excess of regulatory minimums, as of end-March 2001 the bank's retained earnings available for payment of dividends were largely depleted. Since then, Japanese share prices have tumbled by more than 20% on average. This, together with adoption of mark-to-market accounting at the interim closing at September 30, will eliminate the bank's distributable reserves. Speculation has centered on the possible consequences if the bank is unable to pay dividends on its preferred shares that are currently held by Japan's Deposit Insurance Corp. (Note that dividends on these preferred shares are payable at the close of the March-end fiscal year. There are no interim dividend requirements on these shares.) Late last week, Asahi announced that it had made a proposal for consolidation to Daiwa Bank (Daiwa) and that Daiwa is examining this proposal. Daiwa publicly confirmed receipt of this proposal and that discussions between the two banks are taking place. Asahi and Daiwa are the two smallest Japanese city banks, neither being associated with any of the "Big Four" banking groups. Also, both have separate regional orientations: Asahi in Tokyo and the adjoining Saitama Prefecture and Daiwa in the Osaka area with its own network as well as controlling interest in Kinki Osaka Bank, a second tier regional. Daiwa is expected to form a holding company in the near future. Fitch will review the latest developments with Asahi in order to resolve the Rating Watch. Note that in August, Asahi's Individual rating was lowered, along with 16 other Japanese banks, due primarily to concerns about asset quality and stock portfolio exposure. Also at that time, Asahi's Long-term debt rating was lowered to 'BBB+' and the Outlook was changed to Negative, due to the above concerns as well as its market positioning, which is viewed as weakening. Daiwa's Individual rating was lowered to the lowest level on Fitch's scale, 'E', in 1999. Contact: Reiko Toritani, Philip Jones, Takayuki Takahashi, Tokyo Tel: +813 3288 2628; David Marshall, Hong Kong +852 2263 9963; Brett Hemsley, London +44 (0)20 7 417 3494; Fred Puorro, New York +1 212 908 0500 FUJITSU LTD: To Close or Sell US Subsidiary ------------------------------------------- Fujitsu Ltd said Tuesday it would shut or sell a US subsidiary Fujitsu Business Communication Systems Inc, based in Irvine, California, which posted US$120 million in revenues during the business year to March 31, as part of a restructuring plan announced last month that includes cutting 11,400 jobs abroad. Reuters reported on September 11. Fujitsu Ltd was studying the possibility of disposing all or part of the wholly-owned unit that makes private branch exchange (PBX) communications equipment. It was not yet clear whether the 762 employees would be laid off or transferred to a new employer. The restructuring, which will result in a 300 billion yen ($2.48 billion) charge for the business year to next March, aims to step up the company's shift into software and services, while focusing its hardware operations more tightly on core products and technologies. "Under its new growth strategy, Fujitsu's telecommunications group is concentrating its resources on its cutting-edge products in the fields of photonics, IP and 3G mobile technologies and in strengthening its solutions business," the company said in a statement. Fujitsu said it would continue its PBX operations in Japan. FITCH: Hosts Conference Call on Japanese Banks ------------------------------------- Fitch hosted a conference call to discuss continuing asset quality problems faced by Japanese banks on Wednesday, 12 September. Specific topics to be addressed include the differences in asset classification between banks and the influence of Shinsei Bank on the banking sector. Fitch also commented on the prospects for loan quality deterioration as the economy heads back into recession and the impact of Koizumi's reforms on the economy, particularly as they relate to corporate bankruptcies and the resulting effect on banks' asset quality. The 12 September teleconference will began at 09.00 BST. Callers within the United Kingdom should dial 01296 480 100 and participants outside the UK may access the call by dialling +44 1296 480 100; the access code is C059484. A replay will be available for 72 hours following the call on 01296 618 700 (UK) and +44 1296 618 700 (non-UK), using the access code 265591 ========= K O R E A ========= CHO YANG SHIPPING: Court Declares Company Bankrupt --------------------------------------------------- The Bankruptcy Division of Seoul District Court declared Cho Yang Shipping Co. Ltd. bankrupt after ending court receivership last month, Digital Chosun reports September 12. Since its clearance value was higher than its assets, the insolvent company ended receivership last August 24. Lawyer Lee Seong-bok was appointed as bankruptcy trustee. The first creditors committee meeting will be held on October 18. KOREA ELECTRIC: Receives US$638M From KEDO ------------------------------------------ Korea Electric Power Corporation has received a total of US$638 million since it signed a contract in February last year with Korea Peninsula Energy Development Organization (KEDO), with KEPCO as the main contractor in building the nuclear power plant for the communist state, Digital Chosun reported on September 12. KEDO said it has made significant payments for building two light water nuclear reactors in the North. Seoul gave the bulk of that funding worth 447 million dollars, with Japan contributing the remaining 191 million dollars, according to the Ministry of Unification. To raise the money the Korean government floated US$517 million worth of bonds during a two year span between 1999 and 2001. KEDO, the US led consortium building the reactors, used around 18 million US dollars on administrative costs. Washington picked up the 70 million dollar bill to finance 308 thousand tons of heavy oil to the north to supply electricity while the plant is being built. Back in 1994 the US and North Korea signed the Geneva Agreed Framework to halt the North's weapons grade nuclear program in exchange for two light water nuclear reactors. KOREA EXPRESS: To Issue W20.8T Convertible Bonds ------------------------------------------------ Korea Express decided to issue convertible bonds on September 10, 2001. The company will issue bonds amounting to W20,817,960,000, with an interest at maturity of 8.15% payable from the date the bonds are issued through the date of full redemption of principle, Korea Inc News reported on September 11. The interest payment will be every December 31 of each year. Redemption of the principle will be made on December 30, 2010. HYNIX SEMICONDUCTOR: Creditors Banks to Finalize Bailout Package ---------------------------------------------------------------- Hynix Semiconductors Inc's creditor banks are expected to hold a meeting of bank presidents to finalize a bailout package for the troubled chipmaker this Thursday or Friday, Korea Herald reported on September 12, which quoted Tuesday a creditor bank official. Creditor banks reportedly need to fine-tune the extension of W500 billion in fresh loans to Hynix in a meeting within this week because a further delay in finalizing the rescue plan is not good, the official said. HYUNDAI SEMICON: KDB Buys W1.166T Hyundai Bonds ----------------------------------------------- The Ministry of Finance and Economy said Tuesday in a report that four Hyundai subsidiaries, namely Hyundai Electronics Industries (Hynix Semiconductor), Hyundai Engineering and Construction, Hyundai Merchant Marine, and Hyundai Petrochemical, accounted for a total of W1.166 trillion, in the total W1.816 trillion, corporate bonds that Korea Development Bank (KDB) bought in the first eight months of the year, Korea Herald reported on September 12. Under the corporate debt buyout scheme, the KDB has bought Hynix Semiconductor's bonds worth W698 billion, amounting to 37.9 percent of the W1.816 trillion under the corporate debt refinancing plan. Next came Hyundai Engineering and Construction with W304 billion (16.7 percent), Hyundai Merchant Marine with W132 billion (7.3 percent), and Hyundai Petrochemical with W32 billion (1.8 percent). A total of 526 billion won (29 percent) has flowed into Ssangyong Cement and 124 billion won (6.8 percent) into Sungshin Cement. Creditors selected five companies - Hynix Semiconductor, Hyundai Merchant Marine, Hyundai Engineering and Construction, Hyundai Petrochemical, and Ssangyong Cement - for corporate debt refinancing plans in September. The fast corporate refinancing plan has drawn a lot of criticism from the U.S., which questioned the purchase of Hynix's maturing bonds. The U.S. government has threatened to file a suit against Korea to the World Trade Organization on a charge of a violation of the article banning government subsidies to a private firm. However, the ministry, has continued to deny the allegations, saying the corporate debt buyout scheme is entirely implemented on a commercial basis. =============== M A L A Y S I A =============== ABRAR CORPORATION: General Meeting to Be Held on Sept 21 ---------------------------------------------------------- Abrar Corporation Berhad's (Special Administrators Appointed) 46th Annual General Meeting will be held at Grand Seasons Ballroom, 2nd Floor, Grand Seasons Hotel, No. 72 Jalan Pahang, 50350 Kuala Lumpur on Friday, 21st September 2001 at 10.00 a.m. A copy of the Notice of the Meeting is found at http://www.bankrupt.com/misc/AbrarCorporation.doc AUSTRAL AMALGAMATED: Moratorium Further Extended ------------------------------------------------ Austral Amalgamated Berhad announced on 7 September 2001 that the moratorium under Section 41 of the Pengurusan Danaharta Nasional Berhad Act, 1998, which took effect from the date of appointment, has been further extended to 8 September 2002. Background On 6 July, 2000, Lim Tian Huat and George Koshy of Arthur Andersen & Co. were appointed by Pengurusan Danaharta Nasional Berhad to act as the Special Administrators of the following subsidiaries of Austral Amalgamated Berhad (AAB) pursuant to Section 24 of the Pengurusan Danaharta Nasional Berhad Act 1998: 1. Danau Kota Development Sdn. Bhd. (Company No.: 119720-H) 2. Profound View Sdn. Bhd. (Company No.: 333076-W) 3. Likas View Sdn. Bhd. (Company No.: 16908-P) The moratorium under Section 41 of the Act, which took effect from the date of the appointment, has been further extended to 5 July 2002. The extension is pursuant to Section 41(3) of the Act. During the period of the moratorium, no creditor may take action against the aforesaid Companies except in accordance with Section 41 of the Act. All dealings and enquiries may be directed to the Special Administrators. BESCORP INDUSTRIES: Units Disposes Assets as Liquidation Move ------------------------------------------------------------- Bescorp Industries Berhad announced that certain subsidiary companies have disposed off selected assets of the companies pursuant to a tender exercise conducted recently. The tender exercise was carried out as part of the liquidation administration of the respective companies. DETAILS OF THE DISPOSALS The details of the Disposals are as follows: Disposal of property belonging to Bespile Sdn. Bhd. (In Liquidation) to Jutasama Sdn. Bhd. for a total consideration of RM9.5 Million. Bespile Sdn. Bhd. (In Liquidation), a subsidiary of BIB, had entered into a Sale and Purchase Agreement with Jutasama Sdn. Bhd. on 5 September, 2001 to dispose off the land located at Lot Nos. 1928 to 1930 & 1943 to 1945 Mukim and District Klang, Selangor for a total consideration of RM9.5 Million. Disposal of property belonging to Bescorp Construction Sdn Bhd (In Liquidation) to Autotoli Retreading Sdn Bhd for a total consideration of RM1.4 Million. Bescorp Construction Sdn Bhd (In Liquidation), a subsidiary of BIB, had entered into a Sale and Purchase Agreement with Autotoli Tyre Retreading Sdn Bhd on 28 August, 2001 to dispose off the land located at Lot 4049, Jalan 2D, Subang New Village, Mukim of Sungai Buloh, District of Petaling, Selangor Darul Ehsan for a total cash consideration RM1.4 Million. Disposal of plant and machineries of subsidiaries of BIB to various parties The subsidiaries of BIB have disposed off selected plant and machineries to various parties. The details of the disposals are contained in the Table found at http://www.bankrupt.com/misc/BescorpIndus_table.doc RATIONALE FOR THE TRANSACTIONS The disposals were carried out as part of the liquidation administration of the respective subsidiaries of BIB. The proceeds arising from the disposals would be utilized to settle the creditors of the respective subsidiaries of BIB. FINANCIAL EFFECTS OF THE TRANSACTION Earnings The Disposals are not expected to have any material effect on the earnings of the BIB for the year ending 31 December, 2001. Net Tangible Assets The Disposals are not expected to have any material effect on the NTA of the Company. Share Capital The disposals are not expected to have any effect on the share capital of BIB. Substantial Shareholders' Shareholding The Disposals are not expected to have any effect on the substantial l shareholdings of BIB. DIRECTORS' AND MAJOR SHAREHOLDERS' INTEREST AND PERSONS CONNECTED TO DIRECTORS AND MAJOR SHAREHOLDERS None of the Directors and/or major shareholders and/or persons connected with a Director or major shareholder of BIB have any interest, direct or indirect in the Disposals. APPROVAL The above Disposals are not subject to the approval of the shareholders of BIB or any government authority. However, the Disposals have been approved by the Committee of Inspection of the respective subsidiary companies. BESCORP INDUSTRIES: Updates Default in Payment ---------------------------------------------- Bancorp Industries Bread provided an update on its default in payment, as found in http://www.bankrupt.com/misc/BescorpIndustries.doc The default by BIB as at 31 August 2001 amounted to RM35, 750,000.00 made up of a principal sum, plus RM19, 665,733.54 in interest for revolving credit facilities. As at 31 August, 2001, the remaining subsidiary companies of BIB, namely Bancorp Construction Son Bud (In Liquidation), Bancorp Piling Son Bud (In Liquidation), Bancorp Concrete Son Bud (In Liquidation), Bespoke Son Bud (In Liquidation) and Wait Cream Son Bud, defaulted on a total sum of RM137, 045,620.99 made up of a principal sum plus interest for revolving credit facilities, term loan, overdraft and banker's acceptance. MALAYSIAN RESOURCES: Enters Contra Agreement With BIS ----------------------------------------------------- Malaysian Resources Corporation Berhad (MRCB) announced that MRCB Utama Sdn Bhd (MUSB) formerly known as Kajang Utama Sdn Bhd had on 30 August 2001 entered into a Contra Agreement with Berita Information Systems Sdn Bhd (BIS) to contra part of MUSB's debt with its two units of Pesona Apartments for a total value of RM191,649.00. DETAILS OF THE CONTRA PROPERTIES BIS has provided a Detailed Study, Design Submission and Standard Package for Home Intelligent and Automation Systems to the Residential Units of Precinct 10, Federal Administrative Center, Putrajaya Project belonging to MUSB, a wholly owned subsidiary of the Company. As at December 2000, MUSB was indebted to BIS totaling RM216,000.00 (the outstanding sum). MUSB has agreed to contra its two units of Pesona Apartments numbering B-3-12 and B-3-12A at Phase 3, Taman Kajang Utama, Kajang, Selangor to BIS as part of the settlement of MUSB's outstanding sum. Cash will settle the balance of RM24,351.00. INFORMATION ON MUSB MUSB was incorporated on 12 May 1983 under the Companies Act, 1965 as Easy Win Bhd and changed to its present name on 25 September 2000. The current authorized share capital of MUSB is RM25,000,000.00 comprising 25,000,000 ordinary shares of RM1.00 each of which RM15,000,000.00 has been issued and fully paid-up. The principal activity of MUSB is property development. INFORMATION ON BIS BIS was incorporated on 21 November 1981 under the Companies Act, 1965. The current authorized and issued paid-up share capital of BIS is RM2,000,000.00 comprising of 2,000,000 ordinary shares of RM1.00 each. The principal activity of BIS is marketing and supplying of data processing equipment and provision of data processing services. RATIONALE FOR THE CONTRA OF PROPERTIES The contra of properties will allow MUSB to recognize its sale of properties whilst settling its outstanding sum owed to BIS. APPROVAL REQUIRED No approval is required for the contra of properties. DIRECTORS AND SUBSTANTIAL SHAREHOLDERS INTERESTS The Company is the sole shareholder of MUSB and holds 43.53% of the equity interest in The New Straits Times Press (Malaysia) Berhad ("NSTP"). BIS is a wholly owned subsidiary of NSTP. YBhg Dato' Seri Abdul Rahman Maidin is a director of the Company and NSTP and is also deemed to have a substantial interest in NSTP due to his substantial interest in Realmild (M) Sdn Bhd which in turn is a substantial shareholder of the Company. STATEMENT BY THE BOARD OF DIRECTORS The Board of Directors of the Company are of the opinion that the contra of properties is in the best interest of the Company and MUSB. PILECON ENGINEERING: Subsidiary Faces Winding-Up Petition ---------------------------------------------------------- Pilecon Engineering Berhad announced that a winding-up petition had been presented at the Shah Alam High Court on 4 September 2001 against Johor Coastal Development Sdn. Bhd. (JCDSB), a subsidiary of the Company and served onto JCDSB on 5th September for a claim of RM8,998,400.00 together with interest thereon at the rate of 8.00% per annum from 13th July 2001 to the date of full realization. (1) The details of default or circumstances leading to the filing of the winding-up petition against JCDSB: Constrajaya Sdn. Bhd. obtained judgement in the amount of RM8,998,400.00 against JCDSB on the 13th July 2001. Constrajaya Sdn. Bhd. served s.218 Notice on JCDSB on the 20th July 2001 demanding for payment of the Judgement Sum with interest within 21 days from date of same. As the said period of 21 days has expired, and in the absence of an order granting a stay, Constrajaya Sdn. Bhd. filed the Winding-up Petition on the 4th September 2001, service of which was effected on the 5th September 2001. (2) The total cost of investment in JCDSB: RM14.6 million (3) The financial and operational impact on the Group: There is no operational impact to the Group. However, in the event that the winding-up petition succeeded, it is expected that the financial impact would be an estimated loss of RM68.8 million. (4) The expected losses: JCDSB is expected to incur legal fees approximately RM40,000.00. (5) The amount of interest claimed: An interest of 8.00% per annum from 13/07/01 to the date of full realization. (6) The date of hearing of the winding-up petition: 29/10/2001 (7) The steps taken and proposed to be taken by PEB in respect of the winding-up proceedings: a) JCDSB has filed application by way of Motion to the Court of Appeal for an interim stay of the execution by way of winding-up taken out by JCDSB. b) As the said Motion was filed pursuant to a Certificate of Urgency, the adjudication of same should be on a expedited basis although we have not obtained a hearing date as yet. RAHMAN HYDRAULIC: Seeks to Strike-Out Writ of Summons ----------------------------------------------------- The Special Administrators, on behalf of Rahman Hydraulic Tin Berhad (Special Administrators Appointed) (RHTB) announced that an application to strike-out Mr Leong Yew Chin's (the Plaintiff) Writ of Summons and Statement of Claim dated 5 June 2001 (Application) with costs was filed on 5 September 2001. The Application was filed by the solicitors of RHTB (the 7th Defendant) and the Special Administrators (the 11th, 12th and 13th Defendants) [collectively known as the "the Defendants"]. The grounds of the Application are briefly as follows : (1) The Plaintiff's claim discloses no reasonable cause of action against the Defendants or the Plaintiff's claim is scandalous, frivolous or vexatious and/or the Plaintiff's claim is otherwise an abuse of process of Court. (2) The Plaintiff has failed to obtain the prior written consent of Pengurusan Danaharta Nasional Berhad, the 10th Defendant, before commencing the action herein pursuant to Section 41(1)(e) of the Pengurusan Danaharta Nasional Berhad Act, 1998 (as amended). (3) The Plaintiff was at all material times not a registered shareholder of the Company and has therefore no locus standi to commence the suit against the Defendants. SPORTMA CORPORATION: Creditors' Voluntarily Liquidates Units ------------------------------------------------------------ The Special Administrators of Sportma Corporation Berhad (Special Administrators Appointed) (SCB) announced that the following subsidiary companies have been wound up by way of creditors' voluntary liquidation on 10 September 2001: (1) Artforce Sdn Bhd (2) Chemitech Industries Sdn Bhd (3) Senibina Ceria Sdn Bhd Mr Tan Kim Leong, JP has been appointed as Liquidator of the abovementioned companies. The liquidation of the abovementioned subsidiary companies is not expected to have any financial or operational impact on SCB, as the subsidiary companies have ceased operation since September 1999 or earlier. SRI HARTAMAS: Bartercard Terminates Joint Venture Agreement ----------------------------------------------------------- The Special Administrators of Sri Hartamas Berhad (SHB) announced that Bartercard International Pty Ltd (BCI) had on 7 September 2001 terminated the Joint Venture Agreement dated 14 December 1998 with SHB. DETAILS OF TERMINATION OF CONTRACT BCI had on 4 September 2001 terminated the Contract of Service Agreement dated 14 December 1998 executed between BCI as the Service Provider and Bartercard Enterprise Sdn Bhd ("BESB"), a 90% owned subsidiary of SHB, as the Service Receiver pursuant to Clause 12.1 of the Contract. Subsequent thereof the Joint Venture Agreement entered into by BCI, BESB and SHB was also terminated on 7 September 2001 as a result of the termination of Contract of Service Agreement pursuant to Clause 21 of the Joint Venture Agreement. As a result of the termination, BESB's right to operate the Bartercard Trading Program has been terminated with effect from 4 September 2001. BACKGROUND INFORMATION SHB had on 14 December 1998 entered into a Joint Venture Agreement with BCI whereby SHB's 90% owned subsidiary company, BESB, will undertake the operation of the Bartercard System. In addition, BESB had on 14 December 1998 entered into a Contract of Service Agreement with BCI in which BCI shall grant BESB the full sole and exclusive authority and consent to trade and operate a barter and trade exchange under the name and style of "Bartercard" and sole use of the Bartercard Trading Program, Bartercard System and intellectual property in Malaysia ("Bartercard System"). DETAILS OF THE BARTERCARD SYSTEM The Bartercard System is a central exchange between sellers and buyers of goods and services enabling bartering to be accomplished within a large network of participants through a system of debiting and crediting of so called "Trade Ringgit". BESB acts as a clearing house and offers an accounting and administrative facility which monitors the debits and credits of trade transactions of all members using an accounting unit, namely the "Trade Ringgit". A trade ringgit serves as a medium of exchange, recording the value of transaction between buyers and sellers within the trading system, One Trade Ringgit is equal to One Ringgit Malaysia. Members of the Bartercard System pay a one-off membership fee to gain access to a network of other members. Every member receives a membership card and membership number similar to a bank debit card. Each month every member receives a monthly statement which details debits and credits undertaken by the member. The terms and conditions of Bartercard Trading Rules and Regulations are incorporated by reference to the membership agreement. INFORMATION ON BCI BCI was incorporated in the State of Queensland, Australia as a private limited company under the Australia Companies Act 1989 on 22 November 1993. BCI has an authorized share capital of A$ 1,000,000 divided into 1,000,000 shares of A$1.00 each comprising 100,000 ordinary shares, 100,000 A class shares and 800,000 unclassified shares ("BCI Shares") of which A$12,359 BCI Shares were issued and fully paid. BCI has been granted by Bartercard Ltd, a company incorporated in the State of Queensland and having its registered office at Level 1, 121 Scarborough Street, Southport, Queensland, Australia, the full sole and exclusive irrevocable licence for a term of 99 years to sell licence, to trade and operate barter and trade exchange under the name and style of "Bartercard" utilizing the Bartercard System. Bartercard Ltd is the legal and beneficial owner of all of the material elements, industrial and intellectual property, system, software, techniques and know-how of the Bartercard Trading Program including the business name and trademark consisting of the word/name "Bartercard". INFORMATION ON BESB BESB was incorporated in Malaysia under the Companies Act, 1965 on 24 December 1996. BESB became a 90% owned subsidiary company of SHB on 14 December 1998. BESB's present authorized share capital is RM5,000,000 divided into shares of RM1.00 each of which 1,665,030 ordinary shares of RM1.00 each have been issued and fully-paid. Currently the shareholders of BESB are: Shareholder No of Shares Held Sri Hartamas Berhad 1,497,526 Sri Hartamas Mul-T-Plex JV Sdn Bhd 1 Bartercard International Pty Ltd 167,503 ----------------------- 1,665,030 ============== The principal activity of BESB is carrying on trade and barter exchange business and business relating to the Bartercard System. INFORMATION ON SHB SHB was incorporated in Malaysia under the Companies Act, 1965 on 6 January 1969. SHB's present authorized share capital is RM1,200,000,000 divided into 1,200,000,000 ordinary shares of RM1.00 each of which 860,081,667 ordinary shares of RM1.00 each have been issued and fully-paid. The principal activities of SHB are property development, including dealing in land, property investment and investment holding. Special Administrators have been appointed to SHB on 16 June 2000 by Pengurusan Danaharta Nasional Berhad pursuant to Section 24 of the Pengurusan Danaharta Nasional Berhad Act, 1998. CESSATION OF BUSINESS OF SUBSIDIARY Consequent to the above termination, BESB has ceased its operations. EFFECTS OF TERMINATION Share Capital and Substantial Shareholders The termination will not have any effect on the issued share capital and composition of substantial shareholders of SHB. Earnings The effect of the termination on the unaudited consolidated earnings of SHB group for the current financial year ended 30 June 2001 as compared to the unaudited consolidated losses before taxation as announced on 30 August 2001 is tabulated as follow: Please refer to Table A at http://www.bankrupt.com/misc/Sri_Hartamas.pdf Net Tangible Assets (NTA) The effect of the termination on the unaudited NTA of SHB Group as at 30 June 2001 is tabulated as follow: Please refer to Table B at http://www.bankrupt.com/misc/Sri_Hartamas.pdf SPECIAL ADMINISTRATORS', DIRECTORS' AND SUBSTANTIAL SHAREHOLDERS' INTEREST The board of directors of SHB as at 31 August 2001 is as follow: Please refer to Table C at http://www.bankrupt.com/misc/Sri_Hartamas.pdf The substantial shareholders of SHB as at 31 August 2001 are as follow: Please refer to Table D at http://www.bankrupt.com/misc/Sri_Hartamas.pdf DOCUMENTS FOR INSPECTION The following documents may be inspected at the registered office of SHB at Suite 33.01, Level 33, Plaza MBf, No. 8 Jalan Yap Kwan Seng, 50450 Kuala Lumpur, Malaysia for the period from the date of this announcement. 1. Contract of Service dated 14 December 1998 2. Joint Venture Agreement dated 14 December 1998 3. Notice of Termination dated 4 September 2001 TIMBERMASTER INDUSTRIES: KLSE Grants Time Extension Application --------------------------------------------------------------- Timbermaster Industries Berhad announced that the Kuala Lumpur Stock Exchange (KLSE) has granted the Company an extension of time of two (2) months for the Company to make an announcement on the Company's plans to regularize its financial condition (the Requisite Announcement). The Company was earlier required to make the Requisite Announcement by 23 August 2001. The Company had by its announcement of 22 August 2001 set out the preliminary details of progress as to the Company's plan to regularize its financial condition whilst appealing to the KLSE for an extension of time to make the Requisite Announcement, to comply with the requirements of paragraph 5.1 of Practice Note No. 4/2001. The KLSE by its letter dated 3 September 2001 has now granted the Company until 23 October 2001 to make the Requisite Announcement. In the interim, the Company has also been required to provide the Exchange detailed progress reports on the development and/ or latest status of the regularization exercise by the following dates: * 1st progress report by 12 September 2001 on any development between the Company's application letter dated 10 August 2001 and 11 September 2001; and * 2nd progress report by 17 October 2001 on any development between 11 September 2001 and 16 October 2001. ===================== P H I L I P P I N E S ===================== COSMOS BOTTLING: PSE to Determine Rule Violation ------------------------------------------------ The Philippine Stock Exchange (PSE) was to determine yesterday which rule RFM Corp and Cosmos Bottling Corp (CBC) have violated that will warrant a suspension of the trading of their shares, BusinessWorld reported on September 12. PSE president Ramon T. Garcia said the board of governors will decide on the request of Iloilo representative Augusto Syjuco to suspend for 15 days the trading of shares of the two companies. Mr. Syjuco recently sought for a 15-day suspension to halt trading of RFM and CBC shares to give the PSE and the Securities and Exchange Commission (SEC) time to investigate the alleged price manipulation against the Concepcion-owned firms. "I can prove it that the Concepcions own more than half of that 18% in dummy corporations and that's what they use to manipulate the prices. The 83.2% that they hold is static, it's held in their stock. For them to be able to play the market they have to own part of that 18% publicly held. And I say they own at least half of that in dummy corporations. The hapless half of that 18% is really public," he said. The transactions to be reviewed will cover the months of May and June and will be expanded to include those between July and August. COSMOS BOTTLING: RFM Moves to Thwart Lawsuit -------------------------------------------- RFM Corp's moves to thwart a lawsuit threatening to sideline its multibillion-peso sale of Cosmos Bottling Corp took a big step forward on Monday after a former executive of Jaz Cola admitted that unpaid obligations the company is claiming were already resolved before it was sold to Cosmos in 1997, ABS-CBN News reported on September 11. RFM in a statement said former Jaz Cola president Emmanuel Rios admitted under questioning that each of Jaz Cola's claims had been discussed between Jaz Cola and Cosmos before a final reconciliation of accounts was agreed on. RFM's lawyers said this strengthens their stance that there is "no basis" for P146 million in claims since these were taken up before a sale was finalized. The reconciliation of accounts was made with the assistance of an external auditor, SGV & Co., with the final audit report signed by Rios himself and representatives from SGV and Cosmos. PHILIPPINE GLOBAL: Completes P400M Debt Restructuring ----------------------------------------------------- Philippine Global Communications Inc, a cash-strapped telecommunications firm, has completed the restructuring of PhP400 million in secured debts owed by its international gateway facility (IGF) unit, Inquirer News Service reported on September 12. According to a source privy to the restructuring negotiations, the recent deal with the secured banks was a small but significant step toward the much-delayed restructuring of Philcom's total debt of P3 billion. On top of the 400 million pesos in secured debts, the IGF unit still has to restructure or lengthen the maturity of 800 million pesos in unsecured debts. Another bulk of the company's P3-billion debt consisted of obligations incurred by its local exchange carrier unit (LEC), equivalent to about 34.5 million dollars. Among the company's major creditor-banks which account for more than half of its total debts are Bank of the Philippine Islands, Equitable PCI Bank, China Banking Corp. and Metropolitan Bank and Trust Co. Philcom is seeking the restructuring of its loans in order to give it some breathing space as far as its cash flow is concerned. It hopes to stretch out the maturity of its debts, some of which are falling due this year, by another five to seven years. At the very least, however, sources said the resolution of the ownership squabble among shareholders of parent firm Belle Corp. has given Philcom a better momentum in negotiating with its creditors. Restructuring efforts were stalled in 1999 by the row between the groups of former Marcos Trade Minister Roberto Ongpin and other Belle shareholders led by stockbroker Willy Ocier. Belle, which owns 40 percent of Philcom through subsidiary APC Group Inc., had been planning to sell its stake in the telecom firm in order to concentrate its resources on property and gaming. QUEZON POWER: Ratings For Possible Downgrade, Says Moody's ---------------------------------------------------------- Moody's Investors Service has downgraded the senior secured debt rating of Quezon Power (Philippines) Limited Co. (QPL) to Ba2 from Ba1, reflecting the agency's expectation that renegotiations of a Power Purchase Agreement (PPA) between Manila Electric Company (Meralco) and QPL will lower the cash flow to the project and weaken debt coverage and protection measures to levels that may not support the Ba1 rating. The rating remains on review for possible further downgrade. The rating agency believes that renegotiations between QPL and Meralco to change some terms of the PPA between the two companies which will reallocate project risks may result in lower rates paid by Meralco, reducing project revenue and debt service coverage to levels lower than what was projected to support the Ba1 rating. Moody's is also concerned that protracted negotiation and uncertainties in obtaining payment receipts while negotiation continues will further hamper cash flow stability and undermine the project's ability to meet debt obligations. The rating remains on review for possible further downgrade. The outcome of the review will depend on the extent to which changes in PPA terms may lower the level and stability of project cash flows and whether the plant can consistently achieve availability for Minimum Guaranteed Electrical Quantity delivery. Moody's will continue to monitor closely plant performance and the progress of renegotiations, focusing on aspects that may impact cash flow to and debt service capacity of QPL. Furthermore, Moody's will consider the development of the deregulation and privatization initiatives in the Philippines and whether this may result in ongoing pressure on Meralco to adjust the terms of the PPA. Quezon Power (Philippines), Limited Co. is an electricity generating company whose sole asset is a base load pulverized coal-fired electric generation facility located in Quezon, Philippines. ================= S I N G A P O R E ================= ASIA PULP: Bapepam Investigates Indonesia Operations ---------------------------------------------------- Bapepam, Indonesia's capital-markets regulatory agency, is investigating financially troubled Asia Pulp & Paper Co's Indonesian operations, including transactions between APP and five trading companies incorporated in the British Virgin Islands, Asian Wall Street Journal reported on Tuesday. Bapepam's chairman Herwidayatmo said his agency is looking into four of APP's Indonesian subsidiaries and a related bank in connection with seven suspected violations of Indonesian capital-market regulations. APP is part of the Indonesian Widjaja family's Sinar Mas Group. APP's four main Indonesian subsidiaries are PT Pabrik Kertas Tjiwi Kimia, PT Indah Kiat Pulp & Paper, PT Pindo Deli Pulp & Paper Mills and PT Lontar Papyrus Pulp & Paper. Tjiwi Kimia and Indah Kiat are listed on the Jakarta Stock Exchange and all four companies have issued bonds in Indonesia. The Widjaja family also formerly controlled listed PT Bank Internasional Indonesia. Mr. Herwidayatmo said Bapepam is looking into large sales of paper products that three APP units -- Tjiwi Kimia, Indah Kiat and Pindo Deli -- made to the British Virgin Islands trading companies. The three APP companies filed lawsuits in a Jakarta court in July claiming they were owed $1 billion by the trading companies -- Yale Han Trading Ltd., Red Chips International Ltd., Shinning Armor Ltd., Lucky Clover Ltd., and City Success Ltd. The companies, which were also registered in Singapore, shut their operations on the same date in February. Documents on file with Singapore's Registry of Companies and Businesses indicate that several current and former APP employees also served as officers or agents for the trading companies in Singapore. BRIERLEY INVESTMENTS: Requests For Suspension --------------------------------------------- The Board of Directors of Brierley Investments Limited (BIL) requested for suspension in the trading of BIL's shares on the following Stock Exchanges with effect from September 12, 2001, pending release of a price-sensitive announcement: Singapore Exchange Limited - 4.00 p.m. (Singapore time) London Stock Exchange - 9.00 a.m. (London time) The Singapore-based investment company narrowed its first- half loss to US$20.8 million or 0.8 cents a share, in the half ended on December 31, compared with a net loss of US$49.8 million or 1.7 cents a share year ago period. KEPPEL CORPORATION: Willing to Cut SPC Stake to Under 50% --------------------------------------------------------- Keppel Corp is willing to see its stake in Singapore Petroleum Company (SPC) reduced to below 50%, but still plans to use the company to pursue its energy strategy. SPC Chief Executive Leon Codron said Monday that SPC was seeking a foreign strategic shareholder to buy one-third to 40 per cent of the company, which is 77 per cent held by Keppel Fels Energy & Infrastructure (KepFels), a holding company of Keppel Corporation. Keppel declared August that it would take KepFels private, in order to restructure the energy unit as a core business. Both an SPC and KepFel Director, the latter company hopes to take over Singapore Power's contract to import natural gas from Indonesia's South Sumatra, Dow Jones reported on September 12 citing Mr. Cheng Hong Kok. =============== T H A I L A N D =============== MEDIA OF MEDIAS: Reports Rehabilitation Plan Progress ----------------------------------------------------- Media of Medias Public Company Limited announced that the Judge has made a tentative appointment to listen for the judgement from the Constitution Court on January 15, 2002 in relation to the Company's rehabilitation plan. Reference is made to the Company's notice about the postponement of the court in considering the rehabilitation plan of Media of Medias Public Company Limited to September 7,2001 and there is one creditor who protest that some of the Section in the Bankruptcy Act is from the Constitution Court. The Judge who handles the case has decided to delay the consideration of the rehabilitation plan and cancel the hearing date of September 7,2001. THAI MODERN: Explains Q201 Gross Margin Increase ------------------------------------------------ Thai Modern Plastic Industry PCL (TMP) informed its increase in gross profit by Bt10.99 million (or 174.50%) in the second quarter of 2001 comparing to that of the same quarter of 2000. Detail is as follow: Income Quarter 2-2001 Quarter2-2000 Different Statement Sales 94,630,679.21 72,404,011.98 22,226,667.23 Cost of Good Sold 89,940,067.27 78,699,766.31 11,240,300.96 Gross Margin 4,690,611.94 (6,295,754.33) 10,986,366.27 % Gross Margin 4.69 (8.70) 174.50 The main reasons of the increase in gross margin are as follows: (1) Cost of good sold for the second quarter of 2001 was cheaper than that of the same quarter of 2000 since TMP increased production in the second quarter of 2001 by 38.06% comparing to the same quarter of 2000, while production cost of the same period increased by 17.62%. (2) quantity sold and unit price of the second quarter of 2001 rose by 24.40% and 6.01%, respectively, comparing with the second quarter of 2000. This causes by the expansion of customer base, the change in product mix, and marketing strategy. The above reasons caused the improvement in the company's gross profit for the second quarter of 2001 over that achieved in the same quarter in 2000. THAI WAH: Business Reorg Petition Filed in Bankruptcy Court ------------------------------------------------- Real Estate Developer Thai Wah Plaza Company Limited's (DEBTOR) Petition for Business of Reorganization was filed to the Central Bankruptcy Court: Black Case Number Phor. 22/2543 Red Case Number Phor 26/2543 Petitioner: THAI WAH PLAZA COMPANY LIMITED Planner: Thai Wah Group Planner Company Limited Debts Owed to the Petitioning Creditor: Bt2,273,359,000 Date of Court Acceptance of the Petition: April 10, 2000 Announcement of Court Order for Business Reorganization and Appointment of the Planner: in Matichon Public Company Limited and Siam Rath Company Limited in January 8, 2000 Announcement of Court Order for Business Reorganization and Appointment of the Planner: in Government Gazette on June 6, 2000 Court issued an Order Accepting the Reorganization Plan: December 26, 2000 and Appointed Thai Wah Group Planner Company Limited to be as the Plan Administrator Announcement of Court Order for Accepting the Reorganization Plan: in Matichon Public Company Limited and Siam Rath Company Limited in January 8, 2001 Announcement of Court Order for Accepting the Reorganization Plan: in Government Gazette on January 30, 2001 The Official Receiver had called on the Meeting of Creditors for the Amendment of the Plan The Meeting of Creditors had passed no resolution accepting the amendment plan Contact: Ms. Poonsiri Tel 6792511 TPI POLENE: Creditors Not Likely to Extend Deadline ------------------------------------------ Cement Maker TPI Polene Public Company Limited's creditors are unlikely to grant the Company's request to extend the $180 million capital-increase deadline to December 28, Asian Wall Street Journal reported Wednesday citing one of its major creditors. "More than two-thirds of creditors are dissatisfied with the delay of the company's fund-raising plan. If there are no new proposals submitted to the creditors, creditors may not allow the company to extend the deadline," said the creditor. Under the company's Bt49.9 billion debt-restructuring scheme, TPI Polene is required to issue new shares worth up to $180 million to a strategic investor. Prachai Leophairatana, TPI Polene's founder and director said that the company prefers to have more room to negotiate with strategic investors. Creditors of TPI Polene is scheduled to meet Sept. 20 to gauge the progress of company's negotiations with potential strategic partners and to determine a new deadline for the fund-raising extension. TPI Polene is a unit of Thai Petrochemical Industry PCL (H.TPE), the country's largest debt defaulter, with debts worth $3.7 billion. *********** 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, Maria Vyrna Nineza, Roy Tabamo, Jerros Dolino, 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. 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