/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/011113.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, November 13 2001, Vol. 4, No. 222 Headlines A U S T R A L I A AUSTAR UNITED: Bruce Meagher Named Company Secretary CONSOLIDATED BROKEN: Appoints Barton Capital As Advisor GOODMAN FIELDER:Buckland Joins Board As Non-Executive Director GOODMAN FIELDER:Issues Notice of Sir Ross Buckland's Interests NEWCREST MINING: Posts New Cracow Resource Estimate Report NORMANDY MINING: SEC Declares AngoGold's Statement Effective NORMANDY MT: Restructuring Approved ONLINE TRADING: Appoints Administrator To Unit SAGE GLOBAL: Court Appoints Interim Receiver, Manager SAGE GLOBAL: Requests Suspension Of Securities From Quotation C H I N A & H O N G K O N G CASH FINANCIAL: Reports Wider Losses CIL HOLDINGS: Requests Suspension Of Trading KAI YIP: Winding Up Petition Hearing Set KINGMARK INVESTMENTS: Winding Up Sought By Right Star MANDARIN RESOURCES: Turnover Movement Unexplainable PHOENIX SATELLITE: Posts Net Loss Of HK$34.88M WING LEE: Consolidates Share Capital I N D O N E S I A TAMBANG TIMAH: Plans Ops Scale Down, 70% Job Cuts J A P A N ABASHIRI CREDIT: Files For Bankruptcy With Iwate, Miyagi Chuo ASAHI BANK: Agrees To Dispose Off NPLs To Goldman Sachs ASAHI BANK: Denies Serious Financial State ASAHI MUTUAL: Agrees To Sell Sales Division To Tokio Marine ASAHI MUTUAL: S&P Lowers Three Insurers' Credit Ratings BRIDGESTONE: To Pay U.S. States Up To $51.5M In Claims JAPAN AIRLINES: Confirms Merger Talks With Japan Air Systems MYCAL CORP: Union Likely To Accept Winter Bonus, Salary Cuts MYCAL CORP: Take Over Numbers Low For Wal-Mart, Ito-Yokado K O R E A HYNIX SEMICONDUCTOR: Aralion To Buy Hynix Ops This Month HYNIX SEMICONDUCTOR: Bank Write Off Of W1.6T Loans Likely HYNIX SEMICONDUCTOR: To Draw Up Fresh Self-Rescue Plans HYNIX SEMICON: U.S. Unit's Foreign Creditors Won't Cry Default HYUNDAI MOTOR: Chairman Chung Confirms U.S. Plant Plan HYUNDAI SECURITIES: AIG Stake Sale Negotiations Stalled SSANGYONG MOTORS: Creditors Propose Bailout Package M A L A Y S I A KELANAMAS INDUSTRIES: Master Agreement With Dolomite Lapsed MAN YAU: KLSE Grants Restraining Order Extension MAN YAU: Ordinary Resolutions, Statutory Scheme Approved MANCON BERHAD: Posts Default In Payments Details MYCOM BERHAD: No Development On Defaulted Payment Status Noted PERDANA INDUSTRI: Creditors Approve Proposed Modifications PICA (M) CORPORATION: Hardships Result Plan Changes RHB CAPITAL: Ceases Philippine Unit Operations RHB CAPITAL: Voluntarily Winds Up Unit RNC CORPORATION: SC Approves Proposed Restricted Sale Offer SATERAS RESOURCES: SC OKs Proposal Variations, Time Extension TAIPING CONSOLIDATED: A&T Withdraws Unit's Winding Up Petition P H I L I P P I N E S BAYAN TELECOMMUNICATIONS: To Post Lower Than Expected Revenues NATIONAL BANK: Government To Take Management Control NATIONAL BANK: Central Bank To Put Off Restructuring Plan NATIONAL POWER: Eurobond Issue Lead Managed By Three Firms NATIONAL POWER: Admits Responsibility For Massive Blackout NATIONAL STEEL: Bid Proposals Fail Committee Standards Anew S I N G A P O R E ACE DYNAMICS: Aborts Planned Rights Issue ASIA PULP: Extends Draft Restructuring Plan To January 2002 HONG LEONG: Hong Leong Investment Holding Changes Interests IPCO INT'L: Receives US$130M Offer For Its 42.1% GDQHD Stake SEMBCORP INDUSTRIES: Posts SingTel's Deemed Interests Changes T H A I L A N D PROPERTY PERFECT: Submits Petition To Resume Trading SAHAKARN WISAVAKORN: Business Reorganization Petition Filed SIAM STRIP: Creditors Reject Debt Restructuring Plan - - - - - - - - ================= A U S T R A L I A ================= AUSTAR UNITED: Bruce Meagher Named Company Secretary ---------------------------------------------------- The Board of Directors of Austar United Communications Limited announced that it had appointed Bruce Meagher as Company Secretary and Public Officer. Mr Meagher is the Company's Head of Corporate Affairs. Mr Meagher's contact details are: Austar United Communications Locked Bag A3940, Sydney South NSW 1235 Telephone: 02 9295 0183 Facsimile: 02 9251 1812 Email: bmeagher@austar.com.au CONSOLIDATED BROKEN: Appoints Barton Capital As Advisor ------------------------------------------------------- The Directors announced the appointment of Barton Capital Holdings Limited as advisors to the Company in relation to Government issues associated with the Broken Hill project. Mr Neville Wran (AC)(QC) will head the advisory team and assist the Company in its bid to purchase the Pasminco Limited Broken Hill operation. The appointment is for an initial three month period with a retainer fee of three million unlisted Consolidated Broken Hill Ltd options exercisable at any time within two years of the date of issue upon payment of the exercise price of 10 cents per share. The term of the appointment may be extended for three months for a fee of an additional three million options to be granted on similar terms. Attached is Appendix 3B in relation to the grant of options. APPENDIX 3B NEW ISSUE ANNOUNCEMENT APPLICATION FOR QUOTATION OF ADDITIONAL SECURITIES AND AGREEMENT Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public. Introduced 1/7/96. Origin Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000. Name of Entity Consolidated Broken Hill Ltd ACN or ARBN 27 009 423 858 We (the entity) give ASX the following information. PART 1 - ALL ISSUES You must complete the relevant sections (attach sheets if there is not enough space). 1. Class of securities issued Unlisted options or to be issued 2. Number of securities issued 3,000,000 or to be issued (if known) or maximum number which may be issued 3. Principal terms of the securities Exercisable @ 10 cents, (eg, if options, exercise price Expiry date 09/11/2003 and expiry date; if partly paid securities, the amount outstanding and due dates for payment; if convertible securities, the conversion price and dates for conversion) 4. Do the securities rank equally No in all respects from the date of allotment with an existing class of quoted securities If the additional securities Will rank equally with fully do not rank equally, please paid shares on issue state: following exercise * the date from which they do * the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment * the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 5. Issue price or consideration Nil 6. Purpose of the issue (if Options as retainer fee to issued as consideration for advisors in relation to the acquisition of assets, Government issues associated clearly identify those with the Broken Hill project. assets) 7. Dates of entering securities TBA into uncertified holdings or dispatch of certificates NUMBER CLASS 8. Number and class of all 109,560,908 Fully paid securities quoted on ASX (including the securities in clause 2 if applicable) NUMBER CLASS OPTIONS 9. Number and class of all 1,000,000 (30c/31/03/2002) securities not quoted 500,000 (30c/30/09/2002) on ASX (including the 5,000,000 (20c/01/12/2003) securities in clause 2 1,000,000 (20c/20/09/2004) if applicable) 1,300,000 (20c/17/01/2004) 3,000,000 (10c/09/11/2003) 10.Dividend policy (in the case N/A of a trust, distribution policy) on the increased capital (interests) PART 2 - BONUS ISSUE OR PRO RATA ISSUE Items 11 to 33 are Not Applicable PART 3 - QUOTATION OF SECURITIES You need only complete this section if you are applying for quotation of securities 34. Type of securities (tick one) (a) X Securities described in Part 1 (b) All other securities Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities Entities that have Ticked Box 34(a) Additional Securities Forming a New Class of Securities (If the additional securities do not form a new class, go to 43) Tick to indicate you are providing the information or documents 35. The names of the 20 largest holders of the additional securities, and the number and percentage of additional securities held by those holders 36. A distribution schedule of the additional securities setting out the number of holders in the categories 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 - and over 37. A copy of any trust deed for the additional securities (now go to 43) Entities that have Ticked Box 34 (b) Items 38 to 42 are Not Applicable ALL ENTITIES Fees 43. Payment method (tick one) Cheque attached Electronic payment made Note: Payment may be made electronically if Appendix 3B is given to ASX electronically at the same time. Periodic payment as agreed with the home branch has been arranged Note: Arrangements can be made for employee incentive schemes that involve frequent issues of securities. QUOTATION AGREEMENT 1. Quotation of our additional securities is in ASX's absolute discretion. ASX may quote the securities on any conditions it decides. 2. We warrant to ASX that the issue of the securities to be quoted complies with the law and is not for an illegal purpose, and that there is no reason why those securities should not be granted quotation. We warrant to ASX that an offer of the securities for sale within 12 months after their issue will not require disclosure under section 707(3) of the Corporations Law. 3. We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement. 4. We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before quotation of the securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete. GOODMAN FIELDER: Buckland Joins Board As Non-Executive Director --------------------------------------------------------------- The acting Chairman of Goodman Fielder Limited, Sir Dryden Spring, has announced that Sir Ross Buckland, 58, has agreed to join the Board in December as a non-executive Director. "Sir Ross Buckland has extensive management experience in the food industry over the last 35 years and will make a valuable contribution to the future development of Australasia's largest food company", Sir Dryden Spring said. "Sir Ross was born in Sydney and started his career in the food industry in 1965 at an original Goodman Fielder business, Allied Mills, before joining Kellogg (Australia) in 1973 and rising to the position of Managing Director. "In 1979, Sir Ross moved overseas to become Chairman, President and Chief Executive Officer of Kellogg Salada in Canada, and then in 1981 was promoted to Chief Executive of Kellogg Europe based in Manchester. "He joined Unigate PLC (now Uniq) in 1990 as Chief Executive and stayed with the pan-European food group until his retirement in March this year when he decided to return to Australia to live. "Sir Ross also has extensive Board experience as a Director of RJB Mining PLC, Uniq PLC, Allied Domecq PLC (current) and National Australia Group Europe Ltd (current) and was recently appointed as a non-executive Director of Mayne Nickless." For further information: Robert Hadler 02-8874 6095 work CORPORATE AFFAIRS DIRECTOR 0401 700 000 mobile GOODMAN FIELDER: Issues Notice of Sir Ross Buckland's Interests --------------------------------------------------------------- Goodman Fielder Limited issued this notice: NOTICE OF DIRECTOR'S INTERESTS Section 205G of the Corporations Law INITIAL NOTICE Name of Director Sir Ross Buckland Name of Company Goodman Fielder Limited Date of Appointment 12/11/2001 Part 1 - Director's relevant interests in securities of which the director is the registered holder. Ordinary Shares in Goodman Fielder Limited 72,000 GMF Shares held in the name of Ross & Patricia Buckland as Joint Owners. Part 2 - Director's relevant interests in securities of which the director is not the registered holder. Name of holder & nature of interest: Shares declared in Part 1-held in Joint Names with Related Party Number & class of securities: 72,000 GMF ordinary shares Part 3 - Director's interests in contracts. Nil NEWCREST MINING: Posts New Cracow Resource Estimate Report ---------------------------------------------------------- Newcrest Mining Limited reported that a resource estimate has been completed for the Crown Shoot at the Cracow project in Queensland. An Inferred Resource of 1.3 million tonnes at 9.5 grams per tonne gold for a resource of 410,000 ounces gold has been estimated. The estimate for the Crown Shoot is in addition to the 390,000 ounces gold Inferred Resource defined in the Royal Shoot giving a total of 800,000 ounces gold for the Cracow project to this stage. The Crown resource has been estimated from 42 core holes using a 2.3 g/t gold cut-off grade. The Crown shoot has an average width of 4.1 meters with a maximum width of 14 meters. It is also estimated to contain 240,000 ounces of silver. The Cracow project continues to progress with tangible results which may justify decline access to assess and exploit the resources. Exploration is continuing with the objective of identifying additional liberalization. The above information is derived from the Competent Person's Statement which is attached. COMPETENT PERSON'S STATEMENT A Mineral Resource estimate has been completed for high grade gold liberalization contained in the Crown Shoot, on the Cracow Joint Venture's Klondyke Project (Newcrest Mining Ltd 70%, Sedimentary Holdings Ltd 30%) near Cracow in Queensland, Australia. The Mineral Resource has been estimated using mining parameters of a 2.3g/t Au lower cut-off grade and a two meter minimum mining width. For the estimation, a topcut of 140g/t Au was applied to one meter composited, downhole assay data and the gold grade was interpolated into a 3D block model using ordinary kriging. The resource estimate was checked using a manual, polygonal method and is: CATEGORY TONNES GRADE GOLD INSITU GRADE SILVER INSITU Mt Au g/t Oz Ag g/t Oz Inferred 1.3 9.5 410,000 5.6 240,000 The high grade gold liberalization of the Crown Shoot occurs within a near vertical epithermal quartz vein which is hosted by andesitic volcanics. The Crown Shoot is located 700m north-west of the previously reported, Royal Shoot Inferred Mineral Resource (1.1Mt @ 11g/t Au and 9.5g/t Ag). The Crown Inferred Mineral Resource is located between local grid co-ordinates 5500mN and 5875mN, and at a depth 220m below surface from 2080mRL to 1760mRL (using local RLs). At the 2.3g/t Au lower cut-off grade, the average width of the Crown Shoot is 4.1 meters, with a maximum width of 14 meters. The Crown Inferred Mineral Resource occurs within a central quartz vein which displays high grade gold continuity over a 375m (strike) by 320m (vertical) area. Adjacent to the central quartz vein, narrow high grade gold quartz veins, contained within a low grade gold quartz stockwork halo, have been intersected in drilling but have not been included in the Inferred Mineral Resource due to lack of continuity at the present drillhole spacing. The Crown Inferred Mineral Resource has been estimated from 42 drillholes, comprising 40 core (HQ3.68-3 triple tube) drillholes and two Reverse Circulation (5(1/2) inch diameter) drillholes. Gold grade was determined by 50g fire assay, and silver by ICP. One hundred and twenty-four screen-fire gold assay checks were carried out on high grade samples. These check assays returned a high correlation with the original 50g assays (correlation coefficient of 0.99). A Quality Assurance/Quality Control program for geochemical samples involving blind resubmissions, standards and sizing checks was conducted during the course of the drilling program. Density was determined by displacement method on 50 core samples of the liberalization. Drillhole collars were accurately located by survey at surface, and downhole position was located by gyroscope and Eastman camera. The Crown Inferred Mineral Resource estimation process has not been independently audited, but an audit is planned. The information in this statement that relates to Mineral Resources is based on information compiled by Mr Patrick Creenaune who is a Member of the Australasian Institute of Mining and Metallurgy and a full-time employee of Newcrest Mining Ltd. Mr Creenaune has sufficient experience which is relevant to this style of liberalization and the activity which he is undertaking to qualify as a Competent Person as defined in the 1999 Edition of the "Australasian Code for Reporting of Mineral Resources and ore Reserves" (The JORC Code). Mr Creenaune consents to the inclusion in the report of the matters based on their information in the form and context in which it appears. NORMANDY MINING: SEC Declares AngoGold's Statement Effective ------------------------------------------------------------ AngloGold announced that on 8 November 2001 the United States Securities and Exchange Commission (SEC) declared effective AngloGold's Form-4 Registration Statement (F4) setting out its offer to Normandy Mining Limited shareholders located in the United States and Canada. The final prospectus included in the F4 was posted Friday to holders of Normandy shares and ADSs located in the United States and Canada. Those resident in Canada will receive some additional Canadian-specific disclosures. Accordingly, with respect to U.S. and Canadian Normandy shareholders, the offer commenced on Friday. AngloGold announced its intention to make an offer to acquire Normandy Mining, Australia's largest gold company, on 5 September. This is on the basis of 2.15 AngloGold shares for every 100 Normandy shares. The offer to Normandy shareholders, other than those located in the U.S. and Canada, opened on Tuesday, 6 November and the Bidder's Statement setting out the details of the offer has been posted to them. Consequently, the offer to Normandy shareholders is now open in all jurisdictions. AngloGold expects the Normandy Board to make its recommendation by the last week of November. Unless a decision is taken to extend the period, the AngloGold offer is scheduled to close on 14 December. NORMANDY MT: Restructuring Approved ----------------------------------- Normandy Mt Leyshon Limited shareholders voted overwhelmingly at the Company's 2001 Annual General Meeting for a restructuring of the Company, as announced to Australian Stock Exchange on 14 August 2001. A key element of the restructuring will be a cash distribution to Normandy Mt Leyshon shareholders of 33 cents per share. This will be distributed late-November. The 'new' company, Leyshon Resources Limited, will have a specific strategic focus on exploration, with significant potential upside and renewed growth opportunities. Leyshon Resources will be debt free and have a cash balance of at least $3.5 million, existing tenements in the Mt Leyshon district and will acquire interests in a portfolio of exploration properties, including tenements in the prospective Musgrave region of Western Australia and interests in various tenements in the Kidston, Agate Creek and Cloncurry regions of Queensland. ONLINE TRADING: Appoints Administrator To Unit ---------------------------------------------- Online Trading Systems Limited announced Friday the appointment of an administrator to its subsidiary company Microtemps Pty Ltd ACN 087 259 318. For more information: please contact Paul Naphtali at Haystac Public Affairs, ph: (03) 9909 7814. SAGE GLOBAL: Court Appoints Interim Receiver, Manager ----------------------------------------------------- Sage Global Fund Limited advised that, by Order of the Supreme Court of NSW made on 2 November 2001, by consent of the parties to proceedings brought by the Australian Securities & Investments Commission, A R M Macintosh of KPMG International was appointed, pursuant to Section 1323(1)(h)(ii) of the Companies Act 2001, Interim Receiver and Manager without security of the property of Sage Global Fund Limited until and including 26 November 2001 or until further order. SAGE GLOBAL: Requests Suspension Of Securities From Quotation ------------------------------------------------------------- Sage Global Fund Limited, pursuant to the provisions of Listing Rule 17.2, requested a further suspension of its securities from quotation. As has been previously announced, the Company is a party to proceedings commenced by the ASIC against Australian Investors Forum and twenty seven other parties. Although at a hearing of the matter before the Supreme Court of New South Wales on Friday 2 November 2001 , Mr Alexander MacIntosh of KPMG was appointed as an interim receiver to the Company and a number of parties to the ASIC's action, Mr MacIntosh 's appointment was by consent of the parties and without admission of liability. Mr MacIntosh will provide a report to the court on Thursday 22 November 2001, and the matter will come back before the court on Monday 25 November 2001. The Company is considering its position in the light of the action brought by the ASIC, and may apply after legal advices on the 25 November 2001, for the removal of the interim receiver. The Company requests the suspension of its securities until Friday 29 November 2001. ================================ C H I N A & H O N G K O N G ================================ CASH FINANCIAL: Reports Wider Losses ------------------------------------ Online broker CASH Financial Services, formerly known as CASH Online, saw its loss before taxation in the three months to September 30 widen 11% over the previous quarter to HK$13.18M. Turnover declined 21% to HK$9M due to the continuous decline in the economy and investor confidence that had been compounded by the September 11 terrorist attacks in the United States. CIL HOLDINGS: Requests Suspension Of Trading -------------------------------------------- CIL Holdings Limited (the Company) requested that trading in its shares will be suspended with effect from 10:00 a.m. Monday 12 November 2001, pending the release of an announcement of the Company in relation to the result of a winding up petition. KAI YIP: Winding Up Petition Hearing Set ---------------------------------------- The petition to wind up Kai Yip Restaurant Limited is set for hearing before the High Court of Hong Kong on January 9, 2002 at 9:30 am. The petition was filed on September 17, 2001 by Lam Loy of Room 1459, Kai Yin House, Kip Yip Estate, Kowloon, Hong Kong. KINGMARK INVESTMENTS: Winding Up Sought By Right Star ----------------------------------------------------- Right Star Investment Company Limited is seeking the winding up of Kingmark Investments Limited. The petition was filed on September 13, 2001, and will be heard before the High Court of Hong Kong on January 9, 2002 at 10:00 am. Right Star holds its registered office at Mezzanine Floor, King Star Commercial Center, 1B, Wing Sing Lane, Yaumatei, Kowloon, Hong Kong. MANDARIN RESOURCES: Turnover Movement Unexplainable --------------------------------------------------- The Board of Directors of Mandarin Resources Corporation Limited (the Company) (the Board) has noted the recent increase in the trading volume of the shares of the Company and stated that it is not aware of any reasons for such increase. The Board also confirmed that there are no negotiations or agreements relating to the intended acquisitions or realizations which are discloseable under paragraph 3 of the Listing Agreement, neither is the Board aware of any matters discloseable under the general obligation imposed by paragraph 2 of the Listing Agreement, which is or may be of a price sensitive nature. PHOENIX SATELLITE: Posts Net Loss Of HK$34.88M ---------------------------------------------- Phoenix Satellite Television Holdings, a unit of Rupert Murdoch's Star Television, has posted a net loss of HK$34.88M for the three months to September 30. The net loss widened from HK$33.85M the previous quarter. The loss was higher than some analysts' projections. ABN Amro analyst Mario Zhu had expected Phoenix TV to record a net loss of HK$25M for the first quarter of this financial year. A downturn in advertising and losses incurred in new operations such as the InfoNews channel were to blame for the widening loss, according to deputy chief executive Leung Noong-kong. The Chinese language satellite TV operator generated HK$156.22M revenue in the first quarter, a 18.9% drop from the previous corresponding period. Mr. Leung said China's TV advertising market had shrunk about 30% during the period. However, Mr. Leung said the firm had seen an improvement in advertising revenue last month. WING LEE: Consolidates Share Capital ------------------------------------ Wing Lee Holdings Limited (Wing Lee) requested market participants to note that the shareholders of Wing Lee have approved the consolidation of shares on the basis of 5 then existing ordinary shares (Old Shares) of Wing Lee into 1 new ordinary shares (New Shares). Effective from Monday (12/November/2001), a temporary counter under stock code 2998 and stock short name "WING LEE HOLD" will be established for trading in board lots of 400 New Shares each to replace the previous counter (stock code: 876) for trading in board lots of 2,000 Old Shares each. The Board also announced that at the special general meeting of the Company held Monday, the ordinary resolution put to shareholders of the Company, as an ordinary resolution relating to the consolidation of share capital in the Company, was passed by the shareholders of the Company. The consolidation shall become effective at 4:00 p.m. Monday, 12 November, 2001. ================= I N D O N E S I A ================= TAMBANG TIMAH: Plans Ops Scale Down, 70% Job Cuts ------------------------------------------------- In its efforts to save the company from bankruptcy since its huge fall in earnings in the nine months to September, PT Tambang Timah proposes it will scale down its operations and lay off some 70 percent of its 5,211 workers as early as next year, PRNewsASia reported on November 12, which quoted company president Erry Riyana Hardjapamekas. Tambang Timah has submitted five proposals to the government, including recommendations to acquire or merge with other state- owned companies, to seek strategic partners and to source for new funding alternatives through the capital market. The company President said, "Such proposals are being considered by the company to prevent it from being forced into bankruptcy," adding that the huge loss Tambang Timah suffered in the first nine months of the year reflects the condition the company is in. Tambang Timah earlier stated its net profit fell 92 percent in the nine months to Rp25 billion from Rp296 billion a year earlier, partly due to an increase in production costs. Production costs stood at Rp1.1 trillion, compared to Rp780 billion a year earlier. Tin prices have also fallen. Tambang Timah reportedly is "in desperate need" of additional working capital, and it currently needs working capital of Rp150 billion per month. The company is only able to generate cashflow of Rp98.5 billion per month. "The company is suffering a deficit of Rp54.5 billion per month," the company President added, and it will suffer a deficit of Rp155.1 billion in the fourth quarter this year. ========= J A P A N ========= ABASHIRI CREDIT: Files For Bankruptcy With Iwate, Miyagi Chuo ------------------------------------------------------------- Credit unions Abashiri Credit Union in Abashiri, Hokkaido, Iwate Credit Union in Ofunato, Iwate Prefecture, and Miyagi Chuo Credit Union in Sendai, Miyagi Prefecture filed for bankruptcy proceedings with the Financial Services Agency (FSA) on Friday under the Deposit Insurance Law after failing to rehabilitate their ailing operations on their own, Japan Today reported November 10. The FSA subsequently appointed three lawyers as receivers for the three companies. ASAHI BANK: Agrees To Dispose Off NPLs To Goldman Sachs ------------------------------------------------------- Asahi Bank Ltd has reached a basic agreement with U.S. investment bank Goldman Sachs for the disposal of Asahi's non- performing loans (NPL), PRNewsAsia reported on November 12. Under the arrangement, Goldman Sachs will set up a wholly-owned subsidiary to buy problem loans from Asahi. The two banks will also consider jointly establishing a company to help restructure Asahi's corporate borrowers. Asahi, under the new scheme, will sell its bad loans at market value to the new bad loan purchasing unit of Goldman Sachs. Both Asahi and Goldman Sachs will inject funds into the new unit to help buy problem loans from Asahi. ASAHI BANK: Denies Serious Financial State ------------------------------------------ Asahi Bank, in a statement issued Thursday, denied the bank is in a serious financial state, and said the latest drop in its stock price "derived from speculative trading aimed at reaping quick profits and does not reflect the actual state of its financial strength," Japan Today reported on November 8. The statement came after the bank's stock, which is on the First Section of the Tokyo Stock Exchange hit a new low for the year of Y76, down Y37 from Wednesday's closing. ASAHI MUTUAL: Agrees To Sell Sales Division To Tokio Marine ----------------------------------------------------------- Asahi Mutual Life Insurance Co has reached agreement with Tokio Marine & Fire Insurance Co to split and sell its sales division to the non-life insurer's wholly owned subsidiary Tokio Marine Life Insurance Co by next March, Japan Today reported on November 11, which cited company sources. Most Asahi Mutual staff will be transferred to Tokio Marine Life, whiLe Asahi Mutual's sales division will continue to take care of existing contracts. ASAHI MUTUAL: S&P Lowers Three Insurers' Credit Ratings ------------------------------------------------------- Asahi Mutual Life Insurance Co's credit rating, along with Mitsui Mutual Life Insurance Co and Meiji Life Insurance Co, were lowered by Standard & Poor's Corp (S&P) on Thursday. S&P cited deterioration in their capitalization, while keeping intact its ratings on Sumitomo Life Insurance Co and Yasuda Mutual Life Insurance Co, Japan Today reported on November 9. S&P's move came ahead of the companies' earnings for the fiscal first half through September 30 scheduled for release later this month. BRIDGESTONE: To Pay U.S. States Up To $51.5M In Claims ------------------------------------------------------ Bridgestone/Firestone Inc said Thursday it will pay up to $51.5 million to settle claims by the U.S. states over allegedly faulty tires that have been linked to 271 deaths and more than 800 injuries, Japan Today reported November 9. The settlement will give $500,000 to each of the 50 U.S. states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. JAPAN AIRLINES: Confirms Merger Talks With Japan Air Systems ------------------------------------------------------------ Japan Airlines Co Ltd (JAL) released a statement confirming it is into talks with Japan Air Systems Co Ltd for the possible consolidation of their operations, but said no final agreement has been reached so far, PRNewsASia reported November 12. JAL said, "There have been talks between the top management of both companies along such lines, but no basic agreement (on the merger) has been reached so far." The statement was made following a weekend report in the Nihon Keizai Shimbun that the two have agreed to consolidate their operations under a holding company by autumn next year. MYCAL CORP: Union Likely To Accept Winter Bonus, Salary Cuts ------------------------------------------------------------ Mycal Corporation's labor union appears it will accept a management proposal to cut roughly 40% in winter bonuses, to be paid at the firm's fiscal year-end in February, and some 5% of monthly salaries for its roughly 6,000 staff, Japan Today reported on November 11, which cited union sources. The union leaders will seek representatives' approval at an ad hoc meeting on Tuesday. MYCAL CORP: Take Over Numbers Low For Wal-Mart, Ito-Yokado ---------------------------------------------------------- Wal-Mart Stores Inc, which originally planned to take over 100 of Mycal Corporation's 158 stores, decided to take over only 30 outlets located in and around Tokyo, PRNewsAsia reported on November 11, which cited the Yomiuri Shimbun. Ito-Yokado Co Ltd reportedly will take over a further 20 Mycal outlets in western Japan where Ito-Yokado aims to expand its business, while the remaining outlets will be sold to local supermarket operators. ========= K O R E A ========= HYNIX SEMICONDUCTOR: Aralion To Buy Hynix Ops This Month -------------------------------------------------------- Some of ailing Hynix Semiconductor Incorporated's operations will most likely be bought by an Aralion Inc.-led consortium, which revealed plans about the purchase last week, according to a report by the Asian Wall Street Journal last Friday. Aralion earlier said that it is likely to announce a preliminary deal sometime this week, possibly as early as Wednesday, but later on retracted the statement, saying that the deal may not be ready by then. The preliminary deal should disclose how Aralion and the consortium intend to fund the purchase, which is supposed to include a planned road show to raise foreign investment of W200 billion to KRW300 billion. Negotiations between the two parties for the sale of Hynix's two non-memory chip production facilities. Aralion hopes to land a preliminary deal within the month. HYNIX SEMICONDUCTOR: Bank Write Off Of W1.6T Loans Likely --------------------------------------------------------- Hynix Semiconductor creditor banks may write off almost W1.6 trillion of the loans they have extended to the troubled memory chipmaker, Korea Herald reported yesterday. The original debt-for-equity swap value of W3.93 trillion may also be trimmed down to W3 trillion. Accounting giant Arthur Andersen will release its audit report on Hynix sometime this week. That report will ultimately determine the amount of debt to be written off. Nine Hynix creditor banks - Kookmin, Shinhan, Korea First, Seoul, KorAm, Hana, Industrial Bank of Korea, Peace and Pusan - have recently agreed on the proposed debt-for-equity swap for Hynix but refused to extend fresh loans to it. They instead agreed to write off their loans depending upon the value of the company's assets in case of liquidation. A 20 percent liquidating value would require the nine creditor banks to write off a total of 80 percent their combined exposure of W2.09 trillion. An unnamed creditor bank official said, "Hynix's liquidating value for unsecured loans is forecast to reach around 20 percent, while that for collateralized loans is likely to amount to about 35 percent." This means that the nine banks will most likely write off W1.59 trillion in loans to the ailing chipmaker. HYNIX SEMICONDUCTOR: To Draw Up Fresh Self-Rescue Plans ------------------------------------------------------- To successfully manage its cash flow problems, Hynix Semiconductor Inc is expected to draw up additional self-rescue programs, PRNewsAsia reported on Friday, citing Financial Supervisory Commission chairman Lee Keun-young. Lee, in a press briefing said, "Hynix will come forth with additional self-rescue steps soon," He added that a special restructuring committee that will oversee sales and liquidation of the company's assets will be set up among creditor banks. The FSC chair also forecast that Hynix could re-emerge as a competitive company in the second half of next year should the special restructuring committee stress a thorough restructuring. HYNIX SEMICON: U.S. Unit's Foreign Creditors Won't Cry Default -------------------------------------------------------------- Hynix Semiconductor America's (HSA) foreign creditors have agreed not to put in default the US$1.2 billion the Korean chipmaker's U.S. unit owed following the approval by its parent company's local creditors of the new rescue plans for the ailing chip giant, according to a Friday report of PRNewsAsia. A meeting was convened in New York last week by lead manager Chase Manhattan to convince foreign creditors that HSA's default risk will be reduced significantly following the decision by local creditors to extend financial support. HYUNDAI MOTOR: Chairman Chung Confirms U.S. Plant Plan ------------------------------------------------------ Upon meeting with former U.S. President George Bush, Sr., Hyundai Motor Group Chairman, Chung Mong-koo, finally confirmed previous reports of the automotive group's plan to set up an automotive plant in the United States in the near future, the Korea Herald reported Monday. Chung was grateful to American consumers for "favorably recognizing" the products and quality of Hyundai Motor, and its affiliate Kia Motor. Furthermore, the Korean automaker's chairman said that the U.S. market has played an important role in propelling the Hyundai-Kia tie up into the ranks of world class carmakers. Bush was in Korea on Friday for a three-day visit to attend an international seminar. No details however were released on the possible plant site, but Hyundai has reportedly narrowed down its choices to two or three locations. The announcement of the proposed plant's future location will be made in the first half of next year at the latest. HYUNDAI SECURITIES: AIG Stake Sale Negotiations Stalled ------------------------------------------------------- Talks between Hyundai Securities Co Ltd. and an American International Group-led consortium regarding the latter's purchase of Hyundai's preferred shares remain stalled, PRNewsAsia reported on November 9, citing Hyundai sources. Hyundai Securities also denied earlier reports from another news agency that the consortium has offered new proposals to break the deadlock. A company spokesman said, "AIG's due diligence team visited Hyundai Securities yesterday. But they did not tell us that they will offer new proposals," he further said, "talks remain stalled" on differences over terms of the sale of the shares. The AIG-led consortium had previously signed with the Korean government, a non-binding agreement that called for the consortium to invest some W1.1 trillion to buy controlling stakes in Hyundai Securities and its two other fund management units. SSANGYONG MOTORS: Creditors Propose Bailout Package --------------------------------------------------- In an effort to settle Ssangyong Motor Company's outstanding letters of credit, its creditors are proposing a bailout package that would convert W1 trillion of Korean automaker's debt into equity and provide US$200 million in new loans, the Asian Wall Street Journal reported Saturday. The company's controlling stake was previously owned by bankrupt Daewoo Motor, but has since been taken over by its creditors. Ssangyong Motor has been under a debt workout program since 1999, along with other units of the now defunct Daewoo Group. The program was supposed to be finished by this year's end, however the company hasn't been able to eliminate much of its W1.7 trillion debt. Creditors are now proposing to extend the debt workout program until the end of 2003, and will vote sometime this week to formally approve the bailout package aimed at reviving the company which has been saddled with financial troubles brought about primarily by stiff competition in the Korean car market. =============== M A L A Y S I A =============== KELANAMAS INDUSTRIES: Master Agreement With Dolomite Lapsed ----------------------------------------------------------- The Board of directors of Kelanamas Industries Berhad (KIB or the Company) announced: 1. The Master Agreement dated 9 May 2000 entered into between KIB and Dolomite Berhad has lapsed on 8 November 2001. However, both parties have resolved that they will not proceed to further extend the said Master Agreement. The lapsation was due to additional liabilities of the Company, which both parties were unable to reach an agreement on. 2. KIB has made an application to KLSE on 9 November 2001 for an extension of time for another three (3) months from 14 November 2001 to enable the Company to work out an alternative Proposed Rescue Cum Restructuring Scheme (Scheme) for the Company. The Board of Directors is currently negotiating with a potential White Knight for the alternative Scheme. Announcement will be made to KLSE upon finalization of the alternative Scheme MAN YAU: KLSE Grants Restraining Order Extension ------------------------------------------------ The Board of Directors of Man Yau Holdings Berhad (MYHB or the Company) announced that the application made by the Company and its subsidiary, Wang Corporation Sdn Bhd for an extension of the Restraining Order under Section 176 (10) of the Companies Act, 1965 had been granted by the Kuala Lumpur High Court on 8 November 2001. The Restraining Order had been extended for another period of 3 months effective 16 October 2001 to 16 January 2002, to facilitate the implementation of the restructuring exercise. MAN YAU: Ordinary Resolutions, Statutory Scheme Approved -------------------------------------------------------- The Board of Directors of Man Yau Holdings Berhad (MYHB or the Company) announced that at the Extraordinary General Meeting held on 8 November 2001, the Shareholders of MYHB had unanimously approved all the ordinary resolutions as set out in the Notice of the Extraordinary General Meeting dated 15 October 2001. The Board of Directors of the Company also announced that the following statutory schemes as per the Notice of Meeting of Members and Creditors summoned pursuant to an order of the High Court of Malaya dated 15 October 2001 were approved at the respective court convened meeting of members of MYHB and meetings of creditors of MYHB, Man Yau Plastic Factory (Malaysia) Sdn Bhd and Wang Corporation Sdn Bhd: 1. Scheme of Arrangement between Man Yau Holdings Berhad and its members 2. Scheme A - Preferential Creditors of Man Yau Holdings Berhad 3. Scheme B - Unsecured Creditors of Man Yau Holdings Berhad 4. Scheme C - Preferential Creditors of Man Yau Plastic Factory (Malaysia) Sdn Bhd 5. Scheme D - Unsecured Creditors of Man Yau Plastic Factory (Malaysia) Sdn Bhd 6. Scheme E - Preferential Creditors of Wang Corporation Sdn Bhd 7. Scheme F - Unsecured Creditors of Wang Corporation Sdn Bhd MANCON BERHAD: Posts Default In Payments Details ------------------------------------------------ Mancon Berhad announced the details of all the default in payments by the Company and its subsidiaries for the month of October 2001. The details are found at http://www.bankrupt.com/misc/Mancon_default.doc Measures to Address the Default in Payments The Company had submitted an application on 22 October 2001 to the Exchange for a further extension of time beyond 25 October 2001 to allow sufficient time for the Company to formulate and submit its revised restructuring scheme to the relevant authorities. MYCOM BERHAD: No Development On Defaulted Payment Status Noted -------------------------------------------------------------- Mycom Berhad(Mycom), pursuant to Paragraphs 9.03 and 9.04 (l) of the Listing Requirements whereby Mycom is required to make a periodic announcement on the status of default in principal payments for revolving credit facilities granted to its wholly- owned subsidiaries, Tingkayu Plantation Sdn Bhd and Pertama land & Development Sdn Bhd, announced that there has been no further development since the last announcement made on 9 October 2001. PERDANA INDUSTRI: Creditors Approve Proposed Modifications ---------------------------------------------------------- Arab-Malaysian Merchant Bank Berhad, on behalf of Perdana Industri Holdings Berhad (PIHB or the Company), announced that the proposed modifications to the transfer of listing status agreement dated 14 January 2001 (Proposed Modifications) as requested by Wah Seong Corporation Berhad has been approved by the secured creditors on 5 November 2001. Under the Pengurusan Danaharta Nasional Berhad Act, 1998, the approval of Pengurusan Danaharta Nasional Berhad for the Proposed Modifications is not required and so will not be sought. PICA (M) CORPORATION: Hardships Result Plan Changes --------------------------------------------------- The Board of Directors of Pica (M) Corporation Berhad (Pica or the Company) announced that due to the present weak market conditions and difficulty in underwriting arrangements, the Company has decided not to proceed with the Proposals. However, in its continuing effort to restore the financial position of the Company, Pica and its advisers are currently in the midst of finalizing new proposals to address the present financial requirements of Pica in meeting its debt obligations as well as to inject fresh capital into Pica for continual business growth. An announcement on the new proposals will be made immediately upon finalization of the terms and structure for the new proposals. The Proposed Capital Raising Exercise (The Proposals) includes: * Proposed rights issue of 108,103,600 new ordinary shares of RM1.00 on the basis of one (1) new ordinary share for every one (1) existing ordinary share held; * Proposed issue of RM50,000,000 nominal amount of 5-year 6% redeemable bank guaranteed bonds 2000/2005 together with 43,241,440 detachable warrants; * Proposed establishment of an employees' share option scheme; and * Proposed increase in authorized share capital. RHB CAPITAL: Ceases Philippine Unit Operations ---------------------------------------------- RHB Capital Berhad (RHB Capital) announced that Rashid Hussain Securities (Philippines) Inc (RHSP), an indirect wholly-owned subsidiary of RHB Capital notified the regulatory authorities in the Philippines on 8 November 2001, of its intended date of cessation of operations. Subject to meeting all regulatory requirements, RHSP will cease operations effective from the close of business on Monday, 10 December 2001. The cessation of operations of RHSP is not expected to have any material impact on the consolidated earnings of the RHB Capital Group for the current financial year ending 30 June 2002. RHB CAPITAL: Voluntarily Winds Up Unit -------------------------------------- RHB Capital Berhad (RHB Capital), further to the announcement dated 4 October 2001 with regard to the completion of the disposal of the stockbroking business of RHB-Cathay Securities Pte Ltd (RHB-Cathay Securities) to UOB-Kay Hian Pte Ltd, announced that at an extraordinary general meeting of RHB-Cathay Research Pte Ltd (RHB-Cathay Research) held on 7 November 2001, a special resolution was passed to commence proceedings for a members' voluntary winding-up of RHB-Cathay Research, a wholly owned subsidiary of RHB-Cathay Securities and a non-major associated company of RHB Capital. The members' voluntary winding-up of RHB-Cathay Research will not have any material impact on the consolidated earnings of the RHB Capital Group for the current financial year ending 30 June 2002. RNC CORPORATION: SC Approves Proposed Restricted Sale Offer ---------------------------------------------------------- On behalf of the Special Administrators of RNC Corporation Berhad (RNC or Company), Affin Merchant Bank Berhad (formerly known as Perwira Affin Merchant Bank Berhad) announced that the Securities Commission (SC), via its letter dated 31 October 2001, which was received on 6 November 2001, had approved the proposed restricted offer for sale of 36,255,760 ordinary shares of RM1.00 each in Aliran Ihsan Resources Berhad (formerly known as Aliran Ihsan Resources Sdn Bhd and also formerly known as Equity Promenade Sdn Bhd) (AIRB) (AIRB Shares) on a non- renounceable basis by Kembangan Dinamik Sdn Bhd and Lindungan Sinar Sdn Bhd, the vendors of Southern Water Corporation Sdn Bhd, Equiventures Sdn Bhd and Strategi Tegas (M) Sdn Bhd (Vendors) to the existing shareholders of RNC on the basis of eight (8) AIRB Shares for every six (6) ordinary shares held by the existing shareholders of RNC after the completion of the proposed corporate and debt restructuring scheme. In this relation, the SC had also approved the extension of time of six (6) months from the date of listing of AIRB Shares on the KLSE for the Vendors to place out AIRB Shares to the public should the 25% public spread requirement still has not been fulfilled. The aforesaid approval is subject to the following: (i) The placement of AIRB Shares by the Vendors must only be through an independent placement agent (to be appointed); and (ii) The Vendors must provide written undertaking that they will not place out the AIRB Shares to any interested parties which is directly and/or indirectly connected to them. The terms and conditions set forth vide the SC's letter dated 15 November 2000 for the Company's proposed corporate and debt restructuring scheme remain unchanged. SATERAS RESOURCES: SC OKs Proposal Variations, Time Extension ------------------------------------------------------------- Commerce International Merchant Bankers Berhad (CIMB), on behalf of the Board of Directors of Sateras Resources (Malaysia) Berhad (Sateras or Company), announced that the Securities Commission (SC), on 7 November 2001, granted approval on certain variations to the proposed settlement of Rm254,170,157 debts owing to identified creditors of the Sateras Group (Proposals) and a further extension of time for the completion of the Proposals as: (i) Variations to the Proposals (Proposed Variation) are set forth: (a) Proposed conversion of up to RM32,378,638 debts owing to the financial institution creditors of Sateras Group (FI Creditors) into new ordinary shares of RM1.00 each in Sateras (new Sateras Shares) at par value of RM1.00 per share, credited as fully paid-up, on the basis of one (1) ordinary share for every RM1.00 amount of debt owing (Proposed Revised Debt Conversion) as opposed to the proposed debt conversion of RM156,013,314 debts owing into new Sateras Shares, credited as fully paid-up, at a conversion price of which shall be based on the weighted average market price of Sateras Shares for the five (5) consecutive trading days up to a price-fixing date to be determined later, subject to a maximum discount of 10.0% therefrom, as approved by the SC previously; (b) Proposed private placement of up to 221,791,519 new Sateras Shares at par value of RM1.00 per share to the placees identified by Sateras (Identified Placees) in the manner as shown in Table 1 at http://www.bankrupt.com/misc/Sateras.doc (Proposed Revised Private Placement) as opposed to the proposed private placement of up to 98,156,843 new Sateras Shares at a placement price of which shall be based on the weighted average market price of Sateras Shares for the five (5) consecutive trading days up to a price-fixing date to be determined later, as approved by the SC previously; (c) Proposed put option by the FI Creditors of Sateras to place out up to 32,378,638 new Sateras Shares issued to them as settlement of debt pursuant to the Proposed Revised Debt Conversion as mentioned in (i)(a) above at par value of RM1.00 per share to the Identified Placees in the manner as shown in Table 2 at http://www.bankrupt.com/misc/Sateras.doc(Proposed Revised Put Option) as opposed to the proposed put option of up to 156,013,314 new Sateras Shares at a price equivalent to or not less than the conversion price pursuant to the Proposed Revised Debt Conversion; and (d) The listing of and quotation for all the new Sateras Shares to be issued pursuant to the Proposed Revised Debt Conversion and Proposed Revised Private Placement on the Main Board of the Kuala Lumpur Stock Exchange; and (ii) A further extension of time to 27 April 2002 for the completion of the Proposals. The approval of the SC in respect of the Proposed Variation and extension of time is subject to the following terms and conditions: (i) CIMB/Sateras is to furnish to the SC the written undertakings from the respective Identified Placees that: (a) they are committed to subscribe to the new Sateras Shares pursuant to the Proposed Revised Private Placement and Proposed Revised Put Option; and (b) they have the financial capability to subscribe to the new Sateras Shares placed or put to them pursuant to the Proposed Revised Private Placement and Proposed Revised Put Option respectively; (ii) CIMB/Sateras is to furnish to the SC, copies of the executed agreements entered into between Sateras and the respective identified creditors/Identified Placees in relation to the Proposed Revised Debt Conversion and Proposed Revised Private Placement; (iii) Sateras is required to take appropriate measures to strengthen its financial position and to furnish concrete proposals to the SC as soon as possible; (iv) CIMB/Sateras is required to observe and comply with the provisions of the Malaysian Code on Take-Overs and Mergers, 1998 relating to mandatory general offers or, if qualify, to submit an application to the SC for waiver from the obligation of extending a mandatory general offer that may arise in conjunction with the Proposed Revised Private Placement and Proposed Revised Put Option; and (v) CIMB/Sateras is required to fully comply with the requirements stipulated under the SC's Policies and Guidelines on Issue/Offer of Securities. TAIPING CONSOLIDATED: A&T Withdraws Unit's Winding Up Petition -------------------------------------------------------------- The Board of Directors of Taiping Consolidated Berhad announced that the winding up petition under Section 218 of the Companies Act, 1965 against Sentul Raya Sdn Bhd, a subsidiary of Taiping Consolidated Berhad, filed by Azman & Tay Associates Sdn Bhd (A&T) for alleged failure to settle outstanding professional fees owing to it in the sum of RM88,455.67, was withdrawn by the petitioner on 19 October 2001. ===================== P H I L I P P I N E S ===================== BAYAN TELECOMMUNICATIONS: To Post Lower Than Expected Revenues -------------------------------------------------------------- For the first three quarters of the year, troubled Bayan Telecommunications, Inc. (BayanTel) is forecast to post P3.7 billion in net revenues, more or less 12 percent below the previous estimate of P4.2 billion net earnings for the same period, BusinessWorld reported Monday. End-September net revenues were also expected to be lower than the P4.1 billion posted during the same period last year. Without confirming the figures reported BayanTel chief finance officer Gary B. Olivar however said the "end-September numbers were below our budgets." "The weakness of the economy continues to be more persistent than anyone predicted. Many are in the same boat," he said. He further added, "We are hoping for a fourth quarter correction... We're doing internal reorganization and operating fixes... We are hoping for a recovery in markets, in the telecom sector as well as general economy." NATIONAL BANK: Government To Take Management Control ---------------------------------------------------- In order to pave the way for Philippine National Bank's (PNB) rehabilitation, the National Government will assume management control of the ailing financial institution this Month, BusinessWorld reported on November 12. During the same period, the government will initiate the buy- back of its shares in the bank at around At the same time, it will start buying back shares in the former government bank for P40 apiece until its 16 percent stake is increased to 45 percent. The government's management control and reacquisition will commence once a formal agreement between the Department of Finance (DoF) and PNB majority owner Lucio C. Tan is agreed upon within this week as planned. At present, Mr. Tan owns roughly 67 percent of PNB while the government holds 16 percent. NATIONAL BANK: Central Bank To Put Off Restructuring Plan --------------------------------------------------------- The Philippine National Bank's long overdue restructuring plan has been delayed by the Bangko Sentral ng Pilipinas (Central Bank of the Philippines, or BSP) until ownership issues have been settled, according to a Monday BusinessWorld report. BSP Governor Raul Buenaventura said, "We want to wait for the agreement to be signed before we get into the details of the plan." In order to prevent unfounded criticism that regulators are favoring Tan's interests, the BSP chief said, "We will sign the rehabilitation plan of the bank per se and not with Mr. Tan or the government so as not to be accused of favoritism." NATIONAL POWER: Eurobond Issue Lead Managed By Three Firms ---------------------------------------------------------- The National Government's planned issuance of the US$250 million worth of Eurobonds intended to generate funds for the refinancing of loans of the National Power Corporation (Napocor) will be lead managed by Deutsche Bank, Salomon Smith Barney and UBS Warburg, Business World reported on Monday. Aside from being appointed lead managers for the intended bond float, the three firms have also been appointed as joint bookrunners. As underwriters, the firms will buy the government's debt papers if no investors would buy the bonds. Two other firms, JP Morgan and Morgan Stanley were also appointed as co-managers for the five-year debt papers. The intended bond sale will generate funds to cover part of the Napocor's US$530 million funding requirements for the year. This move would not be the first time the national government had lent a helping hand to Napocor with regards to its financing requirements. Last year, the soon-to-be-privatized power firm borrowed US$500 million from international sources alongside the government's US$700 million bond float. NATIONAL POWER: Admits Responsibility For Massive Blackout ---------------------------------------------------------- In an effort to prevent a possible full-blown conflict with U.S. company Mirant Philippines from escalating, the National Power Corporation (Napocor) has admitted full responsibility for the Luzon Island-wide blackout on November 4, BusinessWorld reported yesterday. Napocor President Jesus N. Alcordo, in a statement said, "As far as the blackout is concerned, we are assuming full responsibility. We are taking appropriate measures to effect improvements in our system despite our continuing tight financial condition." However, BusinessWorld has learned that Napocor, through a letter, has previously ordered Mirant to give reasons on the alleged "premature" disengaging or tripping from the system of its 750-megawatt Pagbilao coal-fired power plant in Quezon, or it will be faced with some penalties. A Napocor source said that records showed that the Pagbilao plant disengaged from the system at a 58.2-frequency level. The frequency level determines the stability of the power system. A normal frequency level is set at 60 Hertz. The contract between both parties for the operations of the Pagbilao plant specified that the frequency level should be within 57.7 hertz before final tripping in the event of failures in the system. The disengaging or tripping of power plants following "system instability" is an automatic reaction designed to prevent damage to this plants. The alleged "premature" disengagement of the Pagbilao plant apparently started a chain reaction, leading to the breakdown of other power plants as well. Power plants like, Quezon Power, Lual Unit 2, and Makiling-Banahaw geothermal plant were automatically disengaged from the system, causing the massive power outage. A meeting has been scheduled between Mr. Alcordo and Mirant officials in order to discuss the exact cause of the blackout. NATIONAL STEEL: Bid Proposals Fail Committee Standards Anew ----------------------------------------------------------- The re-opening of troubled National Steel Corporation has been delayed yet again, as bid proposals submitted by interested parties have reportedly failed to comply with the evaluation committee's (EC) terms of reference, according to a BusinessWorld report on November 12. Department of Trade and Industry (DTI) Undersecretary Adrian S. Cristobal said "During the evaluation, the EC arrived at a consensus that none of the proposals complied substantially with the terms of reference. But then we also agreed that this should not drag on further." The deadline for the submission of bids set on October 25 was the third extension given by the EC. Thus, to prevent further delays, EC decided to meet all the interested parties last week -- Cathay Pacific Steel Corp., Austrian firm Voest Alpine and Allengoal Steel Fabrication and Trading Corp. -- to ask them to submit a more comprehensive business and financial plan. The sealed business plans will be submitted on or before 2 p.m. coming November 26, at the office of the DTI. Two days after submission, the three firms will make one-on-one presentation with the EC for about an hour each to justify their proposals. ================= S I N G A P O R E ================= ACE DYNAMICS: Aborts Planned Rights Issue ----------------------------------------- Further to Ace Dynamic Limited's announcement on 13 September 2001, the directors of the company announced that it has decided to abort the Rights Issue. Ace earlier planned for a non-underwritten renounceable rights issue of up to 49,720,625 new ordinary shares of $0.20 each, with up to 49,720,625 detachable warrants, each warrant carrying the right to subscribe for one (1) new ordinary shares of $0.20 each, at $0.20 issue price for each rights share with warrant payable in full on acceptance and/or application on the basis of one (1) rights share with one (1) free warrant for every (2) existing ordinary shares of $0.20 (shares) each held in the capital of the company as at a books closure date to be determined, fractions of a rights share and a warrant being disregarded. Accordingly, the company will not be dispatching the Abridged Prospectus in relation thereto to shareholders. The reasons for aborting the Rights Issue are set out below. The Shares have been trading consistently below its par value of $0.20 per Share (which is also the minimum permissible issue price for each Rights Share) since the Company's Extraordinary General Meeting (EGM) to approve the Rights Issue on 30 July 2001. As at the date of this announcement, the last dealt price of the Company's shares is $0.105 on 5 November 2001, which is approximately 47.5% below the Issue Price. Given that the Shares are trading at a significant discount to the Issue Price and the Rights Issue is not underwritten, the Directors are of the view that the Company will not achieve a high level of subscription for the Rights Shares and the proceeds from the Rights Issue would therefore be low. In the event of a poor subscription rate for the Rights Issue, there is also a strong likelihood that the Warrants will not secure a listing on the Singapore Exchange Securities Trading Limited as a result of an inadequate spread of holdings for the Warrants to provide for an orderly market in the Warrants. Moreover, the directors have also considered that given the highly uncertain outlook for the economy and the broader market, there is no assurance that the price of the Shares will recover, over the short to medium term, to a level which is at or above the Issue Price. In view of such uncertainty, the Company intends to abort the Rights Issue and to explore other ways of meeting the funding requirements of the Company and its subsidiaries ("Group"). As indicated in the circular to shareholders dated 14 July 2001 ("Circular"), the Group intends to use the net proceeds from the Rights Issue (before the exercise of the Warrants and after deducting expenses of the Rights Issue), estimated to be between $1.1 million and $9.5 million, based on the minimum and the maximum number of Rights Shares with Warrants to be issued respectively, for the following purposes:- Assuming minimum Assuming maximum net proceeds net proceeds from the from the Rights Issue Rights Issue ($'000) ($'000) Repayment of bank borrowings 1,130 4,200 Development of property at 9 Recreation Lane, Singapore Nil 2,942 Working capital Nil 2,322 Total 1,130 9,464 (a) Repayment of bank borrowings Until such time the Company undertakes another equity fund- raising exercise, the Group will continue to roll over its bank borrowings and/or use its cashflow from operations to repay such borrowings over time. As at the date of this announcement, the Directors believe that the Group is able to roll over its bank borrowings and to satisfactorily manage its obligations to its lenders. The Group is currently not under any pressure from its principal bankers to repay any borrowings. (b) Development of property at 9 Recreation Lane, Singapore In the Circular, it was mentioned that the Group expects the development of its property at 9 Recreation Lane, Singapore to be completed in 2002. In view of the weak property market, the Group has decided to delay the development. Accordingly, the Group is currently not under any pressure to raise funds for the development. As stated in the Circular, the Group may consider seeking external partner(s) to jointly develop the property at 9 Recreation Lane, Singapore if necessary. (c) Working capital The Directors are of the opinion that, after taking into consideration the Group's internal resources and present credit facilities, the working capital of the Group is sufficient to meet its present requirements. ASIA PULP: Extends Draft Restructuring Plan To January 2002 ----------------------------------------------------------- Asia Pulp & Paper Co. (APP) told its creditors that a draft restructuring plan won't be ready until the end of January 2002, The Wall Street Journal reported on November 12. KPMG, the creditors' financial adviser for APP's restructuring, is also expected to release its initial report to creditors in January. APP said Thursday, in a meeting with the creditors' steering committee in Singapore, that "significant progress" had been made on the restructuring plan, but additional work is required "in order to better understand a number of complex inter- creditor and inter-group issues before a restructuring plan can be presented to creditors." APP told creditors, as early as October, that a draft restructuring proposal is expected to be ready by the end of November or early December, and that a final restructuring plan would be ready for approval in March 2002. HONG LEONG: Hong Leong Investment Holding Changes Interests ----------------------------------------------------------- Hong Leong Singapore Finance Limited posted a notice of changes in substantial shareholder Hong Leong Investment Holdings Pte. Ltd's deemed interests: Name of substantial shareholder: Hong Leong Investment Holdings Pte. Ltd. (HLIH) Date of notice to company: 09 Nov 2001 Date of change of interest: 08 Nov 2001 Name of registered holder: Citibank Nominees (Singapore) Pte Ltd (Citibank Nominees) for account of Welkin Investments Pte Ltd (Welkin) Circumstance giving rise to the change: Others Please specify details: Open Market Purchase HLIH has deemed interest in these shares held in the name of the registered holder, Citibank Nominees for account of Welkin, a wholly-owned subsidiary of HLIH. Shares held in the name of registered holder No. of shares of the change: 34,000 % of issued share capital: 0.008 Amount of consideration per share excluding brokerage,GST,stamp duties,clearing fee: S$1.3515 No. of shares held before change: 1,263,000 % of issued share capital: 0.293 No. of shares held after change: 1,297,000 % of issued share capital: 0.301 Holdings of Substantial Shareholder including direct and deemed interest Deemed Direct No. of shares held before change: 106,174,582 99,608,176 % of issued share capital: 24.672 23.146 No. of shares held after change: 106,208,582 99,608,176 % of issued share capital: 24.68 23.146 Total shares: 106,208,582 99,608,176 Note: % of issued share capital is based on the Company's issued share capital of 430,340,464 shares of $1.00 each as at 8 November 2001. IPCO INT'L: Receives US$130M Offer For Its 42.1% GDQHD Stake ------------------------------------------------------------ The board of directors of Ipco International Limited announced that the company has received a proposal from PT Millennium Atlantic Securities, acting on behalf of its client/investor to acquire the company's 42.1% shareholding in Guangdong Qinglian Highway Development Company Ltd (GDQHD) in China for a proposed consideration of US$130 million. The company has acquired 42.1% shareholding in GDQHD on 30 June 2000 from SpringSun Highways Limited. GDQHD has been collecting toll revenue from two toll roads, comprising: 1. A national class 1 highway, with design speed of between 80 - 100 kilometers per hour, in the People's Republic of China, stretching from Qingyuan (in the northern part of Guangdong Province, 66 kilometers from Guangzhou) to Linzhou, (near the border of Hunan Province), which is part of the National Highway 107, one of the major highways that connects Zhuhai in Guangdong Province to Beijing. 2. The old National Highway 107, a national class 2 highway in the People's Republic of China, with design speed of 60 kilometers per hour, which also stretches from Qingyuan to Hunan Province but serves different towns and cities from those served by NH107. The company has started negotiations with PT Millennium Atlantic Securities on the proposal and no conclusive agreement has been reached as yet with the purchaser. The Directors will make a separate announcement if the Company reaches a definitive agreement with the purchaser. The directors of the company, including those who have delegated detailed supervision of this announcement, have taken all reasonable care to ensure that the facts stated in this announcement are fair and accurate and that no material facts have been omitted and they jointly and severally accept responsibility accordingly. SEMBCORP INDUSTRIES: Posts SingTel's Deemed Interests Changes ------------------------------------------------------------- Sembcorp Industries Ltd posted a notice of changes in Singapore Technologies' (SingTel) deemed interests, as follows: Name of substantial shareholder: Singapore Technologies Pte Ltd Date of notice to company: 09 Nov 2001 Date of change of interest: 02 Nov 2001 Name of registered holder: CDP : DBSVSS Circumstance giving rise to the change: Sales in open market at own discretion Shares held in the name of registered holder No. of shares of the change: 100,000 % of issued share capital: 0.01 Amount of consideration per share excluding brokerage,GST, stamp duties,clearing fee: $1.497 No. of shares held before change: % of issued share capital: No. of shares held after change: % of issued share capital: Holdings of Substantial Shareholder including direct and deemed interest Deemed Direct No. of shares held before change: 276,000 711,254,167 % of issued share capital: 0.02 44.29 No. of shares held after change: 176,000 711,254,167 % of issued share capital: 0.01 44.29 Total shares: 176,000 711,254,167 =============== T H A I L A N D =============== PROPERTY PERFECT: Submits Petition To Resume Trading ---------------------------------------------------- Property Perfect Public Company Limited (PERFEC) has submitted the petition for trading reinstatement to the SET because the rehabilitation plan of PERFEC has been approved by the Bankruptcy Court on 2 October 2001. In addition, PERFEC has already disclosed major elements of rehabilitation plan as specified by the SET rules Therefore, the SET decides to lift "SP" sign from PERFEC on 22 November 2001 to allow the trading of such securities in REHABCO sector. Shareholders and investors should follow the companies' debt restructuring and their rehabilitation plans before making investment decision. However, since this issue may affect the stock price of the company in the market, therefore, according to Clause 24 (3) and (6) of the regulation on trading, clearing and settlement for listed securities 1999, the ceiling and floor limits on the main board of the securities of PERFEC will be temporarily removed on 22 November 2001 to allow the market mechanism to work freely. SAHAKARN WISAVAKORN: Business Reorganization Petition Filed ----------------------------------------------------------- The Petition for Business Reorganization of Sahakarn Wisavakorn Company Limited (DEBTOR), engaged in engineering and building basic public utilities, was filed in the Central Bankruptcy Court: Black Case Number 592/2543 Red Case Number 639/2543 Petitioner: SAHAKARN WISAVAKORN COMPANY LIMITED Debts Owed to the Petitioning Creditor: Bt400,158,413 Planner: EMC Power Company Limited Date of Court Acceptance of the Petition: August 3, 2000 Date of Examining the Petition: August 28, 2000 at 9.00 A.M. Court Order for Business Reorganization and Appointment of Planner: August 28, 2000 Announcement of Court Order for Business Reorganization and Appointment of the Planner in Matichon Public Company Limited and Siam Rath Company Limited: September 4, 2000 Announcement of Court Order for Business Reorganization and Appointment of the Planner in Government Gazette: September 21, 2000 Deadline for Planner to submit the Business Reorganization Plan to Official Receiver: December 21, 2000 Planner postponed the Date to submit the Business Reorganization Plan to Official Receiver #1st: January 21, 2001 Planner postponed the Date to submit the Business Reorganization Plan to Official Receiver #2nd: February 21, 2001 Appointment date for the Meeting of Creditors to consider the plan: March 22, 2001 at 9.30 am. Convention Room 1105, 11th floor, Bangkok Insurance Building, South Sathorn The Meeting of Creditors had passed the resolution accepting the reorganization plan pursuant to Section 90/46 Court Order for Accepting the reorganization plan: May 2, 2001 and appointed E.M.C. Power Company Limited to be the Plan Administrator Announcement of Court Order for Accepting the Reorganization Plan in Matichon Public Company Limited and Siam Rath Company Limited: May 18, 2001 Announcement of Court Order for Accepting the Reorganization Plan in Government Gazette: June 26, 2001 Contact: Mr. Somkit Tel, 6792525 ext 144 SIAM STRIP: Creditors Reject Debt Restructuring Plan ---------------------------------------------------- Siam Strip Mill (SSM) creditors voted to reject the company's debt restructuring plan at a meeting early last week. The vote had been postponed during an earlier meeting when four major amendments to the plan were proposed, including an amendment to the amount of debt the creditors would get back after restructuring, The Nation reported November 12. The rehabilitation plan will be sent back to the Central Bankruptcy Court for further consideration. The plan was reportedly rejected by Japanese creditors who control a large amount of debt. Three Japanese banks from the overall 200-plus creditors dominated, with more than 60 per cent of the total debt worth Bt26.7 billion. Citibank, through its Tokyo branch, alone held 37 per cent, followed by Itochu and Sumitomo Bank. Executives from Baker & McKenzie, the law firm representing Citibank on this deal, refused to comment on the bank's decision. The controversy over the plan reportedly comes from the large amount of debt-to-equity conversion and the significant reduction in the amount which had Somsak's personal guarantee. The plan proposed that the creditors convert 75 percent of the debt into equity. SSM, one of Thailand's biggest hot-rolled steel makers, went into rehabilitation last March when its debt was higher than its total asset value, which was put at Bt23.6 billion at the end of December last year. A liquidity problem forced the company to run its plant at a lower-than-break-even level, resulting in its losing more than Bt3 billion last year. 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, 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. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***