/raid1/www/Hosts/bankrupt/TCRAP_Public/020207.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, February 7, 2002, Vol. 5, No. 27
Headlines
A U S T R A L I A
ANALYTICA LIMITED: Discloses Directors, Management Changes
AUSDOC GROUP: Non-Executive Directors Appointed
DIGITAL NOW: Officer Request Rejected at US Bankruptcy Court
EARTH SANCTUARIES: Failure Prompts Managing Director to Resign
JOYCE CORPORATION: Discloses Chairman's Letter to Shareholders
PASMINCO LIMITED: Releases Second Quarter Activities Report
TRANSURBAN GROUP: Issues Jan 2002 Traffic, Revenue Data
UECOMM LIMITED: Posts CEO's Presentation to Analysts
C H I N A & H O N G K O N G
DEEP SENSE LIMITED: Winding Up Petition Set
GENERAL GLORY: Winding Up Sought By Tai Hing
MANIWAY ENTERPRISES: Hearing of Winding Up Petition Set
NORTHEAST ELECTRICAL: Updates Debt Settlement Progress
SEAPOWER RESOURCES: Liquidators Sell HK$330M Properties
SUNROY DEVELOPMENT: Faces Winding Up Petition
SOUTH EAST: Winding Up Petition Pending
WAH LUEN: Petition To Wind Up
I N D O N E S I A
ASTRA INTERNATIONAL: Unit Selling Shares to Reduce Debt
* IBRA CCAS IV Batch 2 Completed, Yields Rp554B Proceeds
J A P A N
ASAHI BANK: Moody's Lowers Long-Term Deposit Rating to Baa3
MATSUSHITA ELECTRIC: Develops MPEG-4 Video Decoder LSI
NEC CORPORATION: Creates IP Core for System LSI Chips
NIPPON TELEGRAPH: Research Cost-Cutting Part of Workout Plan
SNOW BRAND: Moody's Downgrades Rating to B2; Outlook Negative
SNOW BRAND: Studying Capital Tie-Up to Survive
TDK CORP: Posts Y9.7B Group Net Loss
* Moody's Reviews Seven Life Insurers for Possible Downgrade
K O R E A
HYNIX SEMICONDUCTOR: Court Orders W171.8B Payment to HHI
HYNIX SEMICONDUCTOR: No Deal With Micron Yet
HYNIX SEMICONDUCTOR: Raising Chip Prices by 20%
HYUNDAI SECURITIES: Hyundai Heavy Gets Favorable Decision
SSANGYONG CORP: Creditors Plan W210B Debt-Equity Conversion
M A L A Y S I A
ABRAR CORPORATION: SAs Review Restructuring Exercise Proposal
ARTWRIGHT HOLDINGS: Asset Sale, Purchase Agreement Completed
DAMANSARA REALTY: Updates Defaulted Payment Status
DATAPREP HOLDINGS: Restructuring Scheme Implementation Underway
L&M CORPORATION: Updates LMK Winding Up Petition Status
NCK CORPORATION: SAs Finalize Workout Proposal
PAN PACIFIC: Awaits Solicitor's Debt Restructuring Opinion
PANGLOBAL BERHAD: Regulatory Authorities' Plan Approval Pending
RAHMAN HYDRAULIC: KLSE Grants Regularization Plan Extension
RNC CORPORATION: KLSE's Scheme Approval Pending
SISTEM TELEVISYEN: Scheme Creditors Meeting Set
TRANS CAPITAL: New MoU In Works With New White Knight
P H I L I P P I N E S
NATIONAL POWER: Posts P6.3B 2001 Net Loss
NATIONAL STEEL: Arroyo Orders Steel Plant Foreclosure
URBAN BANK: SEC OKs Merger With Export Bank
S I N G A P O R E
SEMBCORP LOGISTICS: Incorporates Dilmum Navigation Unit
CHEW EU: Requests Continued Trading Suspension
KOH BROTHERS: Clarifies Group's Construction Contract Report
THIRD DRAGON: Goes Into Liquidation
T H A I L A N D
DATAMAT PUBLIC: Posts BODs' Meeting Resolutions
INTER FAREAST: Files Business Reorganization Petition
TANAYONG PUBLIC: Unit Skytrain Ridership Up
THAI PETROCHEMICAL: Feb 8 Repayment Milestone Voting Scheduled
* DebtTraders Real-Time Bond Pricing
- - - - - - - -
=================
A U S T R A L I A
=================
ANALYTICA LIMITED: Discloses Directors, Management Changes
----------------------------------------------------------
Analytica Limited published these changes in Directors and
Management:
Ms Julie Nutting has been appointed as a Director of Analytica
Ltd, effective 31 January 2002. Ms Nutting is also Director of
Psiron Ltd.
Dr P Jonson has resigned as a Director of Analytic Ltd effective
31 January 2002. Dr P Jonson decided to resign from the Board of
Analytica Ltd in order to avoid the possibility of any issues of
conflict of interest with his role as Chair of the Biotechnology
Centre of Excellence Expert Panel.
The Company also advised that Mr Ron van der Pluijm has been
appointed CEO of Analytica Ltd following the resignation of Mr D
Lismore, General Manager, on 15 December 2001 following the
relocation of the offices to the newly acquired diagnostic
business in Castle Hill Sydney. Mr Ron van der Pluijm is also
CEO of Psiron Ltd.
These changes in Directors and Management will result in their
being a common Board and management of Analytica Ltd and Psiron
Ltd and consistent with the announced business plan of both
entities.
AUSDOC GROUP: Non-Executive Directors Appointed
-----------------------------------------------
Further to the announcement made to ASX on 30 January 2002,
AUSDOC Group Limited (AUSDOC: ASX code AUD) announced that Mr
Andrew Tyndale and Mr Robert Topfer were appointed as a non-
executive directors of the company.
Wrights Investors Service reports that at the end of 2001,
Ausdoc Group Limited had negative working capital, as current
liabilities were A$77.50 million while total current assets were
only A$75.46 million. The fact that the company has negative
working capital could indicate that the company will have
problems in expanding. The company has paid no dividends during
the last 12 months. It has also reported losses during the
previous 12 months.
DIGITAL NOW: Officer Request Rejected at US Bankruptcy Court
------------------------------------------------------------
Digital Now, Inc (DNI) announced Wednesday that at the hearing
of the United States Bankruptcy Court on 1 February 2002 the
application by Alexander M Laughlin, Counsel to the Official
Committee of Unsecured Creditors to appoint a responsible
officer to administer the operations of the Company and to
remove the current Board was rejected.
Chairman of the Board of Directors, Sal Catalano, said "This is
a vindication of the approach of the Company's management to
secure the best result for creditors of the Company. The Board
will continue to solicit offers for the Company and expects to
make an announcement shortly regarding the company's future."
EARTH SANCTUARIES: Failure Prompts Managing Director to Resign
--------------------------------------------------------------
The Board of Earth Sanctuaries Ltd announced Wednesday the
resignation of its Founder, Dr John Wamsley, from the position
of Managing Director.
Dr Wamsley's resignation has been prompted by his disappointment
that the Company has failed to realize its potential since its
listing.
Dr Wamsley will continue to assist the Company primarily in
managing the transfer of mammals from Warrawong Earth Sanctuary
in the Mount Lofty Ranges near Adelaide to Little River Earth
Sanctuary near Geelong and to assist the Company, as
appropriate, in its current corporate restructure, where it is
being advised by Challenger Corporate Finance.
The Board appointed Ms Proo Geddes as Managing Director.
The Company will continue to operate its Sanctuaries at
Warrawong, Scotia (Western NSW), Hanson Bay (Kangaroo Island)
and Yookamurra (Sedan SA) as it has in the past. Plans are now
well advanced to move animals in to the first stage of the
Little River Earth Sanctuary near Geelong and the Directors hope
that this Sanctuary will be opened to the public for dusk walks
during late March or April.
For further information, please contact Kevin Lynch, Chairman,
at 8223 7600 or Greg Follent - Challenger Securities Ltd,
Director - Corporate Finance at (02) 9994-7530.
JOYCE CORPORATION: Discloses Chairman's Letter to Shareholders
--------------------------------------------------------------
Joyce Corporation Limited offered Chairman Dan Smetana's
letter to its shareholders:
"As you may be aware from recent Stock Exchange announcements
and media reports, I am pleased to confirm that Joyce
Corporation Ltd has emerged from all aspects of what Directors
believe was an unwarranted receivership. The Company is in sound
financial shape and confident of a solid future.
"Joyce has now reverted to the control of the Board, and will
ask the ASX to lift the trading suspension an its shares. We
anticipate that the suspension will be lifted by late February.
"In emerging from receivership Joyce has secured more than
adequate funding for working capital and to meet its obligations
to creditors. Borrowings are backed by $40 million in gross
assets, including land and buildings valued at $13 million.
"The Company has sold its health care furniture and equipment
operations, its Joyce Rural activities, and other assets
including a Melbourne manufacturing property and a WA rural
property at Pinjarra.
"Pre-receivership creditors have approved trading arrangements,
and many have committed to credit terms that existed before the
appointment of the receivers.
"We believe we can achieve growth in earnings and deliver
increased returns to shareholders, particularly in the current
climate that favors the Company's consumer durable manufacturing
activities.
"Joyce has successfully implemented a strategy to improve its
financial position and focus on its core Joyce Foam Products
polyurethane foam business. The business's trading to date is
ahead of budget and last year.
"Joyce Foam Products has approximately 38 percent of the
Australian market and is developing a new range of products and
processes offering significant opportunities for growth. The
business is confident of maintaining its position as an industry
leader and sound performer.
"The emergence from receivership and the performance of Joyce
Foam Products vindicates the view of Directors, expressed in a
letter to shareholders in May, that the company has a viable
future.
"We regret that we were not able to communicate more often over
recent months, however the receivers were not prepared to
release funds to facilitate this.
"There has been a major reduction in shareholders' funds and a
loss of wealth for shareholders. The Board and I regret that
this has occurred and assure you that we have worked through
this difficult period as best we could. We are also most
conscious of the inconvenience and uncertainty that shareholders
have had to endure.
"I take this opportunity to thank you for your support, and
assure you that the steps necessary to ensure renewed growth and
returns are being steadfastly pursued and implemented. I will
provide further information about the performance and future
direction of your Company at the forthcoming AGM, anticipated to
be held at the end of February."
PASMINCO LIMITED: Releases Second Quarter Activities Report
-----------------------------------------------------------
Pasminco Limited announced that the achieved record production
results for the December quarter, reflecting the contribution
from the, Century mine and solid performance from most
operations within the Group.
Total zinc and lead production from the Group's mines and
shelters during the December quarter was 12 percent higher than
the corresponding quarter in 2000.
Mine production during the December quarter was boosted by
higher production from each of the Group's mines, with the
exception of Broken Hill that was impacted by lower ore grades.
The Group's zinc metal production was marginally higher than
last year, due mainly to another strong quarter at the Hobart
smelter. Lead metal production benefited from record production
levels at the Port Pixie smelter.
3 months 6 months 3 months 6 months
ended ended ended ended
Tonnes) 31/12/01 31/12/00 31/12/00 31/12/00
Mine production - contained 222,606 433,927 191,410 385,438
zinc
- contained 61,240 129,386 46,962 94,188
lead
Metal production- zinc 168,014 334,759 165,947 337,025
- lead (1) 84,605 164,555 76,227 140,580
Total production 536,465 1,062,627 480,546 957,231
1. Includes quenched bullion production from Cockle Creek
smelter, all of which is refined at Port Pine.
MINING
The highlight of mining results for the quarter was the
contribution from the Century mine, which produced 205,579
tonnes of zinc concentrate. Contained zinc in concentrate
produced was 118,600 tonnes, equivalent to 94 percent of rated
capacity. Zinc recoveries of 78 percent were achieved for the
quarter, up from 75 percent in the previous quarter. Silica in
zinc concentrate averaged 4.1 percent for the quarter and work
is continuing to reduce silica levels below 4 percent.
Lead concentrate production at Century was lower than the
previous quarter because trucking of mine site stocks from dams
has been now completed.
Ore grades at Broken Hill, although up on the previous quarter
were lower than the corresponding period in 2000 and this
resulted in lower contained metal output.
Contained metal output at the Elura mine was higher than both
the previous and corresponding quarters. Contained metal output
at the Rosebery mine was higher than both the previous and
corresponding quarters. This reflected the availability of
additional ore from the surface decline development that
commenced during the quarter.
Operations at Gordonsville and Clinch Valley were steady for the
quarter.
SMELTING
The highlight of smelting performance was the record lead and
silver metal production at the Port Pirie smelter. Zinc metal
production also was up on both the previous and corresponding
quarters.
Budel output was impacted by interruptions to production in the
roasting and acid plants. Production is expected to return to
normal levels in the March quarter.
Cockle Creek's output was impacted by unplanned furnace
downtime.
Stable operations were maintained at the Hobart and Clarksville
smelters during the quarter.
METAL PRICES
London Metal Exchange zinc and lead prices continue to languish
at low levels. Prices are not expected to recover until there
are clear signs that global economic activity has picked up and
metal demand has strengthened.
BUSINESS IMPROVEMENT PROGRAM
Results for the business improvement program show that
annualized cost and volume improvements had exceeded the $100
million target by 31 December 2001. The target was achieved
through a combination of lower costs and higher production,
excluding the impact of the ramp-up at Century. The program will
continue in 2002 to build on achievements to date and capture
further improvements in costs and production.
VOLUNTARY ADMINISTRATION
Although Pasminco remains under voluntary administration a
number of important steps have been taken by management and the
administrators to formulate a plan for the future of Pasminco.
Most significantly it has been decided to retain the Century
mine. The Elura mine and Cockle Creek smelter will join the
Broken Hill mine and US assets that have been offered for sale.
Management and the administrators believe that the remaining
assets are capable of forming the basis of a sustainable
business going forward and will continue to work on a plan to
put before the convening of a meeting of creditors on or before
8th April 2002.
Production Statistics for the Quarter Ended 31 December 2001
3 MONTHS 3 MONTHS
ENDED ENDED
31/12/2001 31/12/2000
MINING
BROKEN HILL MINE
Ore Treated (Tonnes) 706,619 705,501
Assaying - Zinc % 7.2 7.51
- Lead % 3.3 3.54
- Silver g/t 36.0 41.8
Zinc Concentrate (Tonnes) 92,704 94,181
Containing - Zinc(Tonnes) 45,933 47,038
Lead Concentrate (Tonnes) 29,723 31,316
Containing - Lead (Tonnes) 20,068 21,083
- Silver (kg) 19,346 22,328
* Century Mine was operational from 1 March 2000
Ore Treated (Tonnes) 1,211,835 1,147,573
Assaying - Zinc % 12.5 12.2
- Lead % 2.4 2.21
- Silver g/t 58.5 55.9
Zinc Concentrate (Tonnes) 205,579 170,780
Containing - Zinc (Tonnes) 118,600 97,709
- Silver (kg) 41,003 32,761
Lead Concentrate (Tonnes) 38,023 18,208
Containing - Lead (Tonnes) 24,087 10,259
- Silver (kg) 11,759 5,220
* Century Mine was operational from 1 March 2000
CLINCH VALLEY MINE *
Ore Treated (Tonnes) 91,988 84,036
Assaying - Zinc % 3.5 3.6
Zinc Concentrate (Tonnes) 5,000 4,594
Containing - Zinc (Tonnes) 3,126 2,885
* Clinch Valley Mine was re-opened in July 2000
ELURA MINE
Ore Treated (Tonnes) 301,143 232,051
Assaying - Zinc % 9.0 8.26
- Lead % 5.4 5.32
- Silver g/t 66.0 60
Zinc Concentrate (Tonnes) 44,427 32,600
Containing - Zinc (Tonnes) 22,291 16,685
Lead Concentrate (Tonnes) 20,265 16,216
Containing - Lead (Tonnes) 11,461 9,403
- Silver (kg) 8,435 6,800
GORDONSVILLE MINE
Ore Treated Total (Tonnes) 410,446 390,944
Assaying - Zinc % 2.9 2.9
Zinc Concentrate (Tonnes) 17,303 16,406
Containing - Zinc (Tonnes) 11,179 10,643
ROSEBERY MINE
Ore Treated Total (Tonnes) 201,175 189,337
Assaying - Zinc % 11.6 9.78
- Lead % 3.5 4.31
- Copper % 0.3 0.29
- Silver g/t 131.8 126.88
- Gold g/t 1.9 1.78
Zinc Concentrate (Tonnes) 37,873 29,435
Containing - Zinc (Tonnes) 21,447 16,450
Lead Concentrate (Tonnes) 8,327 9,499
Containing - Lead 5,624 6,217
- Silver (kg) 12,937 13,736
- Gold (kg) 39 38
Copper Concentrate (Tonnes) 1,632 1,080
Containing - Copper (Tonnes) 355 253
- Silver (kg) 6,352 7,057
- Gold (kg) 205 104
Gold Dore (kg) 89 97
Containing - Gold (kg) 58 82
- Silver (kg) 39 30
SMELTING
BUDEL ZINK
Zinc (Tonnes) 46,656 54,587
CLARKSVILLE ZINC PLANT
Zinc (Tonnes) 29,063 29,132
COCKLE CREEK SMELTER
Zinc (Tonnes) 20,812 22,271
Lead Bullion (Tonnes) 10,231 8,669
HOBART SMELTER
Zinc (Tonnes) 61,153 51,512
PORT PIRIE SMELTER
Lead (Tonnes) 69,753 63,055
Zinc (Tonnes) 10,330 8,445
Silver(kg) 110,013 99,352
ARA *
Lead (Tonnes) 4,621 4,503
* Figures represent Pasminco's 50 percent share of ARA's total
production
TRANSURBAN GROUP: Issues Jan 2002 Traffic, Revenue Data
-------------------------------------------------------
Transurban Group issued the average daily transaction volumes
for the month of January 2002 as set out in this table.
The descriptions of the toll zones used in the table are
consistent with those used in the Transurban prospectus.
TOLL ZONE ALL DAYS WEEKDAYS
Tullamarine Freeway, Moreland Road to
Brunswick Road (Zone 1) 91,325 102,286
Racecourse Road to Dynon Road (Zone 2) 60,468 67,470
Bolte Bridge (Zone 3) 54,687 60,544
Domain and Burnley Tunnels"(1) (Zones 4 & 8) 66,817 75,539
Batman Avenue, Swan Street to Flinders Street
(Zone 5) 11,404 13,408
Batman Avenue, Punt Road to Swan Street (Zone 6) 14,735 17,620
Burnley Tunnel plus Monash Freeway, between
Burnley Street and Punt Road"(2) (Zones 7 & 8) 93,823 107,161
Monash Freeway, between Toorak Road and Burnley
Street (Zone 9) 93,513 106,547
TOTAL ALL ZONES 486,772 550,575
Notes:
(1) This zone is referred to as "Zone 4 / Domain Section" in
the Transurban prospectus.
(2) This zone is referred to as "Zone 5 / SE Arterial (Pont Rd
to Burnley St" in the Transurban prospectus.
The trends since opening in usage of the individual zones of
Western Link and the Southern Link are shown in the attached
table.
Average transaction volumes for all days and for weekdays in
January decreased by 5.3 per cent and 7.4 per cent respectively,
relative to December. This reflects the seasonal decrease in
usage during the January holiday period.
Notwithstanding these decreases, average transaction volumes for
all days and weekdays for January 2002 were 3.0 per cent and 4.1
per cent higher than the corresponding averages for January 2001
and the 5 day moving average of weekday transactions at 31
January 2002 (615,667) was 7.0 per cent higher than the
corresponding average at 31 January 2001.
Toll and fee revenue for December was $18.7 million ($17.0
million net of GST liability). These amounts include Minimum
Annual Payment (MAP) charges of $0.6 million. The average toll
revenue per transaction for the month (exclusive of the MAP
charges) was $1.20.
MONTHLY TRANSACTION DATA BY TOLL ZONE
WESTERN LINK DAILY AVERAGE TRANSACTIONS FOR WEEKDAYS
TOLL TOLL TOLL TOTAL ALL
MONTH ZONE 1 ZONE 2 ZONE 3 ZONES
December 2001 111,513 72,696 65,105 249,314
-4.3% -4.5% -3.4% -4.2%
January 2002 102,286 67,470 60,544 230,300
-8.3% -7.2% -7.0% -7.6%
Percentages refer to growth relative to the preceding month.
Data is for a full month unless otherwise stated.
POST OPENING OF BURNLEY TUNNEL
DAILY AVERAGE TRANSACTIONS FOR WEEKDAYS
TOLL TOLL TOLL TOLL TOLL TOTAL ALL
ZONES 4 ZONE 5 ZONE 6 ZONES 7 ZONE 9 ZONES
& 8 & 8
Dec 2001 79,592 14,194 20,108 114,798 116,586 345,278
-3.7% -9.8% -6.2% -4.2% -3.8% -4.3%
Jan 2002 75,539 13,408 17,620 107,161 106,547 320,275
-5.1% -5.5% -12.4% -6.7% -8.6% -7.2%
Percentages refer to growth relative to the preceding month.
Data is for a full month unless otherwise stated.
According to Wrights Investors' Service, Transurban Group has
paid no dividends during the last 12 months. It has also
reported losses during the previous 12 months. At the end of
2001, the Company had negative working capital, as current
liabilities were A$217.26 million while total current assets
were only A$126.40 million.
UECOMM LIMITED: Posts CEO's Presentation to Analysts
----------------------------------------------------
Uecomm Limited posted a copy of Chief Executives Officer's and
Chief Financial Officer's presentation to analysts. The
presentation is to be delivered after acknowledgment by the
Australian Stock Exchange Limited of the release of the
Preliminary Final Report.
2001 FINANCIAL OVERVIEW
Revenue - reduction of $10.8 million reflects the difficult
trading conditions
EBITDA - reduction reflects lower revenues and increased cost of
services and employee costs and includes $4.5 million of Unite
net operating losses. This results in an adjusted EBITDA of a
loss of $5.6 million.
EBIT - reflects the lower EBITDA and the increase in
depreciation with the additional expenditure on the network
Net Equity - reduction reflects the after tax loss of $55
million
Borrowings - drawdown on the $80 million loan facility with UEL
2001 OPERATIONS REVIEW
TRADING CONDITIONS
- Wholesale (network build) sales opportunities did not
eventuate.
- A number of broadband customers won in 2001 shelved their
rollout plans
- Technical problems with Internet switches impacted broadband
Internet service.
Switches were replaced in 1st half with another vendors
equipment and service performing very well today.
THE BUSINESS RESTRUCTURE
Uecomm exited the residential and consumer business with the
sale of Unite and closure of home-to-the-home initiatives
(Vialight and VOD trials) and has seen a re-focus on the high
speed data and internet market segments
Changes occurred in organizational structure and staffing in
order to minimize overheads and to refocus the organization.
Outsourced field construction and maintenance
In addition to this, greater scrutiny of all new customer orders
has been implemented. With payback / hurdle criteria required to
be satisfied for all deals. All connections must pass stringent
payback and IRR criteria before going ahead.
MANAGEMENT UPDATE
Peter McGrath - Chief Executive Officer. Peter has developed an
extensive skills and knowledge base from a wide variety of roles
in the telecommunications industry. Senior management positions
include COO of Capt.'s Connect Pty Ltd, Group General Manager,
Mergers and Acquisitions, Telstra Corporation and Director
Corporate Finance ANZ Investment Bank.
Peter Dawson - Chief Financial Officer. Peter is on secondment
from United Energy. He has over 25 years accounting and audit
experience and has worked in Australia and the United States.
Duncan Wallace - Director, Customer Operations. Duncan has more
than 16 years experience in the telecommunications industry in
Australia and Asia.
Dr Tomy Ng - Director, Networks and Technology. Dr Ng has 19
years experience in the Telecommunication and IT industries,
gained in Australia, Japan, UK, and the US
Dean Tognella, Director, Commercial and Business Development.
Dean has 10 years experience in the Telecommunications and
finance industries gained with Connect (a subsidiary of AAPT
Limited) and PricewaterhouseCoopers telecommunications advisory
practice.
Brendan Park, Director Products and Marketing. Brendan has 20
years experience in the telecommunications industry having held
positions with Telstra, Nortel and private consultancy.
PRODUCTS & MARKETING STRATEGY
The key customer segments we're targeting are the corporate,
government and wholesale sectors. We market our services
directly to only a small segment of the high-end corporate and
government marketplace and sell indirectly via other service
providers and information technology and telecommunications
(IT&T) partners.
Previously, a large percentage of our revenue came from building
network infrastructure for other carriers. With the downturn in
the telco sector, new sources of revenue must be explored.
Two strategies underpin our new sales and marketing plan:
(i) - increasing the returns from our established network by
expanding sales of existing products and increasing utilization
of existing building connections and
(ii) enhancing our distribution channels. In 2002, we'll be
increasing our level of partnering with service providers and
IT&T companies as we're only tapping a small segment of this
market currently.
Placing a much greater emphasis on selling our existing product
set. This includes our flagship Gigabit Ethernet (GigE) service,
broadband internet solutions and high-capacity fiber-based
connectivity solutions used in areas such as disaster recovery
and private networks. We have a competitive advantage in these
areas due to our extensive network coverage and early-to-market
position with leading-edge data products.
FINANCIAL OUTLOOK
In addition to this, Uecomm has reviewed its operational
structure. During 2001 Uecomm reduced staff numbers and in doing
so significantly cut overheads. It has also renegotiated
supplier costs and this has seen additional savings for the
Company. As a result, Uecomm moves into 2002 with a much lower
operating cost base. On average, we are targeting cost of
services and opex to be less than $3 million per month on
average
Uecomm's strategic network build is now complete therefore all
future short term capital expenditure will be to connect new
customers to the network.
The reduced capital expenditure level for 2002 reflecting
customer connection requirements should result in a drawdown of
approximately $20 to $25 million for 2002 which reflects the
targeted capital expenditure and working capital requirements
for 2002.
FIANCIAL REVIEW
PETER DAWSON,CHIEF FINANCIAL OFFICER
FINANCIAL PERFORMANCE
REVENUE
- Decrease reflects softening of the telco sector with major
opportunities not eventuating
- A number of broadband customers won in 2001 shelved their
rollout plans
- Technical problems with Internet switches impacted broadband
Internet service in first half.
EBITDA
- Decrease due to:
* Lower revenues of $10.8 million
* Cost of services increase of $8.379 million due to UNITE
costs, broadband internet costs, and access charges to Telstra
* Increased employee costs of $9.895 million with staff
numbers increasing from 170 to 230 during the year (116 at 31
December)
EBIT
- Depreciation and amortization expense was $9.118 million (but
includes $1.667 million brand costs write-off relating to UNITE)
- Additional network capital expenditure in 2001 resulted in the
increase in depreciation expense of $5.823 million
TAX EXPENSE
- Tax credit in 2001 of $3.478 due to future income tax benefit
of timing differences, but future income tax benefit of $11.651
million relating to tax losses has not been brought to account.
NPAT
- Decrease reflects lower EBIT and income tax credit
SIGNIFICANT ITEMS
BAD AND DOUBTFUL DEBTS
- reflects the sector downturn
NETWORK ASSETS
- certain elements of the network written down by $6.7 million
- redundant equipment and other assets - $3.7 million
PEOPLE TELECOM
- this was an assessment undertaken by Directors based on advice
from management and external parties
RESTRUCTURING COSTS
- Redundancy costs of $2.4 million
- Share loan plan - $2.1 million
- Vialight (home-to-the-home) - $1.3 million
- Other costs - $0.8 million
UNITE
- Loss on disposal - $1.9 million
- Write-off of branding costs - $1.7 million
- Net 2001 operating revenues and costs - $4.5 million
(Revenue $1.5 million, costs/expenses $6.0 million)
BALANCE SHEET
CURRENT ASSETS
- reduction due to reduction in cash ($73.3 million) and
receivables/accrued revenue ($30.4 million)
NON CURRENT ASSETS
- increase due to network rollout but reflects the asset and
equipment writedowns
- People Telecom investment revalued to $1 million
CURRENT LIABILITIES
- unearned revenue increased by $1.5 million (service revenue
billed in advance)
- provision for tax decreased by $2.2 million as taxes relating
to 2000 were paid in 2001
NON CURRENT LIABILITIES
- increase as result of the United Energy loan facility drawdown
of $19.7 million at 31 December 2001
CASH FLOW
CASH FLOW FROM OPERATING ACTIVITIES
The net cash inflow from operating activities of $9.555 million
has resulted largely from net GST refunds of $7.397 million.
Other items were:
- Receipts from customers - $47.2 million
- Payments to suppliers and employees - $45.2 million
- Interest received - $2.6 million
- Income taxes paid - $2.4 million
CASH FLOWS FROM INVESTING ACTIVITIES
Net cash outflows from investing activities of $102.6 million
resulted from $93.5 million for payments for property, plant and
equipment and $10 million for the payment for the investment in
People Telecom.
CASH FLOWS FROM FINANCING ACTIVITIES
The net cash inflow from financing activities of $19.7 million
is represented by the United Energy Loan Facility.
For further information on Uecomm Limited visit
www.uecomm.au/investor or contact:
Marta Wakeling
INVESTOR RELATIONS MANAGER
Phone: (+61 3) 9941 4521
e-mail: mwakeling@uecomm.au
================================
C H I N A & H O N G K O N G
================================
DEEP SENSE LIMITED: Winding Up Petition Set
-------------------------------------------
Deep Sense Limited is facing a winding up petition, which was
slated to be heard before the High Court of Hong Kong on January
30, 2002. The petition was filed on September 19, 2001 by Bank
of China (Hong Kong) Limited whose registered office is situated
at 14th Floor, Bank of China Tower, 1 Garden Road, Hong Kong.
GENERAL GLORY: Winding Up Sought By Tai Hing
--------------------------------------------
Tai Hing Paper Products Company Limited is seeking the winding
up of General Glory Company Limited. The petition was filed on
October 31, 2001, and was heard before the High Court of Hong
Kong on January 30, 2002.
Tai Hing Paper Products Company Limited holds its registered
office at Hung Hing Printing Center, 17-19 Dai Hei Street, Tai
Po Industrial Estate, New Territories, Hong Kong.
MANIWAY ENTERPRISES: Hearing of Winding Up Petition Set
-------------------------------------------------------
The petition to wind up Maniway Enterprises Limited was set for
hearing before the High Court of Hong Kong on February 6, 2002
at 10:00 am. The petition was filed with the court on December
5, 2001 by Bank of China (Hong Kong) Limited whose registered
office is situated at 14th Floor, Bank of China Tower, 1 Garden
Road, Hong Kong.
NORTHEAST ELECTRICAL: Updates Debt Settlement Progress
------------------------------------------------------
Northeast Electrical Transmission & Transformation Machinery
Manufacturing Company Limited (the Company), in relation to the
progress of debt settlement by connected parties, i.e. Northeast
Electrical Transmission and Transformation Equipment Group and
connected companies (the holding company), in compliance with
the requirements of Shenzhen Stock Exchange regarding disclosure
of settlement of debt by connected parties, announced that as at
31 December 1998, the amount receivable from the holding company
in respect of the connected transactions totaled HK$476,210,000.
The Company entered into a settlement agreement with the holding
company on 9 April 1999, pursuant to which the holding company
undertook to repay its debt by cash or assets beneficially owned
by it during the three years ended 31 December 1999, 2000 and
2001.
According to the Debt Settlement Agreement entered into between
the Company and the holding Company on 22 December 2000, the
holding company agreed to set off its debt by Kingdom Hotel of
net asset value of HK$322,280,000, representing 68% of the debt
as confirmed in the settlement agreement. This transaction had
been disclosed in the announcement of the Company dated 23 March
2000 and the Notice of General Meeting dated 28 April 2000
respectively and had been approved by shareholders of the
Company at the Extraordinary General Meeting held on 13 June
2000. As shown in the audited 2000 Annual Report of the Company,
the balance of the debt in the sum of HK$203,120,000 as at 31
December 2000 owning by the holding company remained
outstanding.
With respect to the outstanding balance of the debt, the holding
company has undertaken repayment of the same by transfer of its
equity interest in a cable manufacturing company and other
assets beneficially owned by it as disclosed in its 2000 Annual
Report. The Board of Directors of the Company has been taking
various possible measures including legal actions to recover
such debt. However, due to difficult business environment of the
holding company, complications of the case and obstructions
encountered that there has been no material progress in respect
of recovery of the debt as at the date hereof. The Board of
Directors of the Company will continue to proceed with its best
endeavors to recover the same and will make further announcement
with respect to the development of the matter on a timely basis.
The Company applied to the Stock Exchange for suspension of
trading in the shares of the Company on 4 February 2002 pending
this announcement, and has applied for resumption of trading in
its share with effect from 10 a.m. on 6 February 2002.
SEAPOWER RESOURCES: Liquidators Sell HK$330M Properties
-------------------------------------------------------
Liquidators of Seapower Resources International Ltd have sold
two of its properties in Kwai Chung for HK$330 million to
repay debt, AFX-Asia reports.
The winding-up petition filed by a bank syndicate, claiming a
debt of HK$491 million caused Seapower's shares to be suspended
from trading.
Suspension of trading started since the end of December 2001 and
will remain suspended until further notice.
SUNROY DEVELOPMENT: Faces Winding Up Petition
---------------------------------------------
The petition to wind up Sunroy Development Limited was set for
hearing before the High Court of Hong Kong on February 6, 2002
at 10:00 am.
The petition was filed with the court on December 4, 2001 by
Ngai Yeuk Shing of Flat G, 10th Floor, Block 8, Lung Mun Oasis,
Tuen Mun, New Territories, Hong Kong.
SOUTH EAST: Winding Up Petition Pending
---------------------------------------
The petition to wind up South East Asia Overseas Finance Limited
is scheduled for hearing before the High Court of Hong Kong on
February 20, 2002 at 9:30 am. The petition was filed with the
court on December 11, 2001 by Cooperatieve Centrale Raiffeisen-
Boerenleenbank B.A. located at 42-43/F., Two Exchange Square, 8
Connaught Place, Central, Hong Kong.
WAH LUEN: Petition To Wind Up
-----------------------------
The petition to wind up Wah Luen Enterprise Limited was heard
before the High Court of Hong Kong on February 6, 2002 at 10:00
am. The petition was filed with the court on December 5, 2001
by Bank of China (Hong Kong) Limited whose registered office is
situated at 14th Floor, Bank of China Tower, 1 Garden Road, Hong
Kong.
=================
I N D O N E S I A
=================
ASTRA INTERNATIONAL: Unit Selling Shares to Reduce Debt
-------------------------------------------------------
DebtTraders analysts, Daniel Fan (852-2537-4111) and Blythe
Berselli (1-212-247-5300), say, "Astra International's tractor
unit, United Tractors, plans to list a minority stake in
Pamapersada Nusantara to help reduce the group's debt. United
Tractors also plans to sell its 60% stake in Berau Coal within
three months for the same reason."
"We believe the plan will benefit the price of the Astra
Overseas Finance FRN due '05," say Fan and Berselli.
According to DebtTraders, Astra Overseas Finance's 5.719%
floating rate notes due on 2005 (ASTRA2) are trading between 69
and 71. For more real-time bond pricing information, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=ASTRA2
* IBRA CCAS IV Batch 2 Completed, Yields Rp554B Proceeds
--------------------------------------------------------
The Indonesian Bank Restructuring Agency (IBRA) has completed
the Corporate Core Assets Sales (CCAS) IV batch 2, with
proceeds of Rp554 billion. In total, the book value of 11
corporate core assets, offered as of October 31, 2001 is Rp2.8
trillion, consisting of US$72.19 million and Rp2.03 trillion.
The portfolio credit is an outcome of the restructuring process
involving term loans, exchangeable bonds and convertible bonds.
The registration and admission carried out on November 28, 2001,
one month after CCAS-IV batch 1 was closed on October 31' 2001.
Following an evaluation, IBRA accepted the highest bid for the 7
corporate core assets with total book value US$54.07 million and
Rp1.95 trillion with total proceeds of US$17.03 million and
Rp375.17 billion. The said number equals to Rp554 billion at an
exchange rate Rp10,500 per US dollar. The sales proceeds
represent recovery rate 21.97 percent.
The recovery rate of CCAS-IV batch 2 is relatively in par with
that of CCAS-IV batch 1 at 22.08 percent which derives from 7
corporate core assets sales with total book value US$895.5
million and total proceeds US$197.7 million.
The CCAS batch 2 tender attracted 14 investors who expressed
their interest to carry out due diligence. Twelve from 14
investors submitted their bid and later IBRA selected 4
investors as the winners. The winning investors are from
Singapore and the United States.
"In comparison, the recovery rate of CCAS-IV is lower than that
of CCAS-III due mainly to the current unfavorable Indonesian
macro economic conditions, as evident with the slow economic
growth, the interest rate hike of 3-months central bank
certificates (SBI), and the drop in government long term loan
rating by Standard & Poors from CCC+ to CCC," says Mohammad
Syahrial, Division Head of Asset Disposal-IBRA.
"It represents the high discount rate that the investors used in
assessing the assets under IBRA. Nonetheless, foreign investors
continue showing high interest in IBRA's assets," Mohammad
Syahrial added.
Details of the winners are set at a table found at
http://www.bankrupt.com/misc/TCRAP_IBRA0206.doc
Unlike the previous tender in the Corporate Loan Sales (CLS) I
and II as well as CCAS III when IBRA had to provide complete
documents on the core assets, since CCAS tranche IV, IBRA has
carried out the core asset sales on "as is" condition. As a
result the winners themselves have to continue the document
completion process should any document problem arise or any
other conditions whatsoever. The "as is" condition sales can
affect the value of the assets but the payment can be quicker.
The lower recovery rate in CCAS IV is also affected by the
declining quality of the assets. Referring to the restructuring
scheme in Asset Management Credit (AMC)-IBRA, the sustainable
debt will be restructured to term loan. The unsustainable debt
portion will be restructured to convertible bonds, exchangeable
bonds, low interest bonds and debt-to-equity swap. In CLS I and
II IBRA sold the sustainable debt whereas as from CCAS III, IBRA
can sell unsustainable debt. The percentage of sustainable debt
sold on CCAS III reach 94.5 percent and for sustainable debts in
CCAS-IV batch I and II are below 50 percent.
A comparison table of macro-indicator on the offering date by
investors is set at
http://www.bankrupt.com/misc/TCRAP_IBRA0206.doc
The proceeds in CCAS-IV batch 2 is part of the contribution AMC-
IBRA in the 2002 fiscal year which targeted Rp32.033 trillion.
The AMC target contribution consists of Rp24.533 trillion in
cash and Rp7.5 trillion in bond. In general, this is the largest
contribution from IBRA's source in this year which is targeted
Rp42.8 trillion.
=========
J A P A N
=========
ASAHI BANK: Moody's Lowers Long-Term Deposit Rating to Baa3
-----------------------------------------------------------
Moody's Investors Services on Tuesday has downgraded Asahi Bank
(Asahi)'s long and short-term deposit rating to Baa3/Prime-3
from Baa1/Prime-2. The rating agency also lowered the long-term
senior unsecured debt rating to Ba1 from Baa2, senior
subordinated debt rating to Ba2 from Baa3, and the junior
subordinated debt rating to B1 from Baa3. The trust unit rating
representing preferred shares issued by the bank was also
downgraded to B2 from Ba1. At the same time, Moody's confirmed
the ratings of Daiwa Bank. These rating actions conclude the
review initiated on July 10, 2001. The rating outlook is
negative.
The rating actions reflect Moody's expectation that Asahi's
capitalization continues to be exposed to higher levels of
market and credit risks volatility, and the bank's still
insufficient level of protection against those risks. Moody's
anticipates that Asahi's asset quality will also be pressured by
residual risks associated with the continued downward pressure
on its middle market portfolio in the current deflationary
operating environment. Its large equity portfolio will also
require a lengthy timeframe for further meaningful disposal and
to positively affect its credit standing. Therefore, Moody's
believes that projected improvement in Asahi's stand-alone
financial fundamentals in the near to medium term contains a
high degree of uncertainty.
The confirmation of Daiwa Bank (Daiwa)'s ratings reflects the
bank's very weak economic capitalization, and the limited
prospect of improving its bottom line profitability. The rating
outlook is negative. Daiwa has a similar profile as Asahi in
terms of market and credit risks, and Moody's believes the Osaka
market is beset with severe structural stress on its
fundamentals.
Recently, Asahi and Daiwa announced that Asahi will participate
in a Daiwa Bank-led integration scheme as a subsidiary bank
under a holding company structure (by March 2002) to ensure the
continuation of government preferred dividend payments and to
improve market perception of the bank. However, Moody's
considers that the prospect of prompt and realistic improvement
in its competitive positioning and franchise to be very
difficult. The ultimate integration into a Daiwa Bank holding
company structure would create a banking group with combined
size of 50 trillion yen. However, Moody's believes that the
integration process in the Japanese culture usually takes an
extended period of time before concrete benefits emerge.
The following ratings were downgraded:
Asahi Bank, Ltd. - the long-term and short-tem deposit ratings
to Baa3/Prime-3 from Baa1/Prime-2; long-term unsecured senior
debt rating to Ba1 from Baa2; subordinated debt rating to Ba2
from Baa3; junior subordinated debt rating to B1 from Baa3; and
the issuer rating to Baa3 from Baa1.
Asahi Finance (Cayman) Ltd.- subordinated debt rating to Ba2
from Baa3; and junior subordinated debt rating to B1 from Baa3.
AB International Cayman Trust - preferred stock rating to B2
from Ba1.
Asahi Bank, Ltd. (Cayman Branch) - short-term deposit rating to
Prime-3 from Prime-2.
The following ratings were confirmed:
Daiwa Bank, Ltd: Baa3/Prime-3 long and short-tem deposit
ratings; Ba2 senior subordinated debt rating; and B1 junior
subordinated debt rating.
Daiwa International Finance (Cayman): Ba2 senior subordinated
debt rating.
Daiwa PB Limited: B1 junior subordinated debt rating.
MATSUSHITA ELECTRIC: Develops MPEG-4 Video Decoder LSI
------------------------------------------------------
Matsushita Electric Industrial Co., Ltd., best known worldwide
for its Panasonic brand of consumer electronics and digital
communications products, and its principle subsidiary Matsushita
Communication Industrial Co., Ltd announced Tuesday their
development of the industry's most power-efficient MPEG-4 video
decoder LSI, for use in various mobile phone systems such as W-
CDMA, PDC and PHS. Samples will be shipped in May 2002 (part
number:MN19EV59042); the new LSI will be formally announced at
the International Solid-State Circuits Conference 2002, held in
San Francisco, February 4-6, 2002.
Conventional MPEG-4 video decoder LSIs require minimum power of
50 mW, which quickly drains batteries and limits terminal
continuous operating time. Matsushita's newly developed LSI,
consuming only 11.1 mW, greatly extends operating time of MPEG-4
standard devices.
In video decoding with the new LSI, dedicated circuits (hardware
engines) handle both routine and large-scale computation
processes; the Digital Signal Processor (DSP) core handles non-
routine processes. These improvements cut the operating
frequency by half, to 27 MHz (partially 54 MHz), greatly
improving power efficiency. Built-in 896Kbit SRAM with 0.18æm
process and clock gating techniques also minimize power
consumption. Since none of these features are process-dependent,
the new LSI is easily integratable with other multimedia
processing LSIs, significantly broadening the range mode mobile
multimedia product applications.
About Matsushita Electric Industrial:
Matsushita Electric Industrial Co., Ltd., best known for its
Panasonic, National, Technics, and Quasar brand names, is a
world leader in the development and manufacture of electronics
products for a wide range of consumer, business and industrial
needs. Based in Osaka, Japan, the company recorded consolidated
sales of US$61.45 billion for the fiscal year ended March 31,
2001. In addition to the Tokyo and other Japanese stock
exchanges (6752), Matsushita's shares are also listed on the
Amsterdam, Dusseldorf, Frankfurt, New York, Pacific (NYSE/PCX:
MC), and Paris stock exchanges. For more information, visit the
Matsushita web site at
http://www.panasonic.co.jp/global/top.html.
TCR-AP reported last month that the company plans to discontinue
production of refrigerator compressors at Matsushita
Refrigeration Company of America (MARCA) on March 28, 2002.
MARCA will then begin closing/liquidation procedures. Matsushita
cited the necessity to restructure its ongoing refrigerator
compressor production operations from a global viewpoint, and
intensified price competition in the U.S. refrigerator
compressor market, which resulted in decreased profitability at
MARCA.
NEC CORPORATION: Creates IP Core for System LSI Chips
-----------------------------------------------------
NEC Corporation (Nasdaq: NIPNY) on Tuesday announced at the 2002
International Solid State Circuit Conference (ISSCC) the
development of a super-fast serial interface intellectual
property (IP) core, an essential component of system large-scale
integration (LSI) chips used in next-generation broadband
networks and high-end servers.
The new IP core enables data transmission of five gigabits-per-
second (Gb/s) between LSI chips, or between equipment employing
LSI chips. This transmission rate can be further improved using
multiple IP cores simultaneously. A system LSI chip with 20 IP
core units would enable a transmission rate of 100 Gb/s, which
is comparable to sending about three DVDs, or about six hours of
video data per second, doubling the data transfer rate between
system LSI chips that employ the current high-speed interface IP
core. The new IP core, which doubles the performance of network
equipment in two-thirds the space, compared to equipment using
the current IP core, is expected to become an essential
component of high-performance network equipment in next-
generation broadband networks.
The following technological achievements led to the development
of the new, super-fast serial interface IP core:
-- New signal receiver technology prevents a hold-stage circuit,
which temporarily retains input signals, from lowering the
operational speed of the entire input circuits by aligning the
input-stage and hold-stage circuits in a cascade structure --
the two circuits until now had been placed in a stacked
structure layout -- and increasing the voltage input on each
circuit. The input circuit amplifies input signals while a hold-
stage circuit temporarily retains the amplified input signals.
This technology makes it possible to accurately receive
attenuated transmission signals caused by long-distance cable
transmission, achieving a data transmission rate of 5 Gb/s per
cable or wire between LSI chips, about 1.5 times faster than the
current peak speed of about 3 Gb/s, using even inexpensive
transmission cable or wire.
-- The data transmission time aligning technology freely
extracts and adds a part of data in transmission and aligns the
arrival time of data between cables. A new multi-channel aligner
adjusts the speed of incoming signals between multiple IP-core
units and makes them arrive at the same time. These technologies
have expanded the loading capacity of an IP core in a single
system LSI chip to more than 20 units from ten units currently.
Due to the requirements of an advanced information technology
(IT) society, demand for enhanced performance in high-speed
computer servers and network equipment, the backbone of the
next-generation broadband network, is increasing quickly.
High-speed data transmission between LSI chips is particularly
important to enhance the performance of high-speed computer
servers and network equipment. The serial transmission scheme,
which improves the transmission speed by aligning the data and
transmitting it in series over a wire at high speed, has been
the transmission scheme of choice. However, this scheme has
encountered problems, such as the distortion of waveforms due to
attenuation of signals over the wire, which makes it difficult
to transmit data over long distances at high speed. Also, it is
difficult to align the timing between IP core units when
multiple IP core units are employed, and consequently, further
improvement in the transmission performance has been hampered.
NEC believes the new ultra-high-speed interface IP core will be
an essential component in differentiating its system LSI chips,
which are to be used in future high-speed computer servers and
network equipment. Through aggressive research and development
activities, NEC plans to commercialize the IP core for cell-
based integrated circuits (ICs) and application-specific
standard products (ASSPs) in the second half of fiscal year
ending March 2003.
Results of the research will be presented at ISSCC 2002 in San
Francisco, California, on February 4 to 6, 2002.
About NEC Corporation
NEC Corporation (FTSE: 6701q.1) is a leading provider of
Internet solutions, dedicated to meeting the specialized needs
of its customers in the key computer, network and electron
device fields through its three market-focused in-house
companies: NEC Solutions, NEC Networks and NEC Electron Devices.
NEC Corporation, with its in-house companies, employs
approximately 150,000 people worldwide and saw net sales of
5,409 billion Yen (approx. US$43 billion) in fiscal year 2000-
2001. For further information, visit the NEC home page at http:
//www.nec.com .
TCR-AP reported earlier this week that NEC doubled its previous
loss forecast for the full year ending in March to Y300 billion.
The company expects its first-ever group operating loss for the
full fiscal year. The company said it would lose Y57 billion
during the period, reversing its previous forecast for a profit
of Y30 billion.
CONTACT: Kazuko Andersen of NEC USA, Inc., +1-212-326-2502, or
kazuko.andersen@necusa.com; or Denise Viereck Garibaldi of NEC
Electronics Inc., +1-408-588-6620, or
denise_garibaldi@el.nec.com/
NIPPON TELEGRAPH: Research Cost-Cutting Part of Workout Plan
------------------------------------------------------------
Nippon Telegraph and Telephone Corp may cut its research and
development costs next business year to below Y200 billion from
Y203 billion this year as part of a restructuring plan amid
slumping revenues from its main fixed-line business, Reuters
reported Tuesday.
Company spokesman Yasumasa Hatakenada said that the Company
would focus on services that can be provided over the fiber-
optic networks. Only one of the Company's six research
facilities will be downsized, he said.
According to Dow Jones NTT may close its research site in
Ibaraki Prefecture, northeast of Tokyo, and transfer staff there
to another facility, an unnamed company spokesman said.
NTT sees its worst ever group net loss of Y331 billion for the
2001 and 2002 business year, which ends in March.
SNOW BRAND: Moody's Downgrades Rating to B2; Outlook Negative
-------------------------------------------------------------
Moody's Investors Service on Tuesday downgraded the senior
unsecured long-term debt ratings of Snow Brand Milk Products
Co., Ltd. (Snow Brand) to B2 from Ba3. The rating outlook is
negative. The rating action reflects Moody's increasing concern
that the disclosure of a continued criminal investigation into
Snow Brand Food, a 66 percent-owned consolidated subsidiary of
Snow Brand, will have a significant negative effect on the
company's brand equity, its earnings and cash flow.
Moody's also adds that the stability of Snow Brand's ratings
depends on strong and continuous financial support from major
lenders.
Snow Brand Milk Products Co., Ltd., headquartered in Tokyo, is a
leading food company in Japan, conducting a dairy product
business.
SNOW BRAND: Studying Capital Tie-Up to Survive
----------------------------------------------
Snow Brand Milk Products Co Ltd will consider a business tie-up
including capital participation to overcome a beef scandal at
its subsidiary Snow Brand Food Co Ltd, Kyodo News reported on
Tuesday. Snow Brand Food admitted on January to falsely labeling
imported beef as domestic to get government aid intended for the
domestic industry to cope with the outbreak of mad cow disease.
Snow Brand Milk will keep its company name and brand while
looking for partners in distribution and consignment for its
milk business. The company did not announce any specific steps
to deal with the unit's misconduct. Company sources said that
Snow Brand Milk plans to stop Snow Brand Foods operations
completely and sell them to a third-party firm.
TDK CORP: Posts Y9.7B Group Net Loss
------------------------------------
TDK Corporation posted a group net loss of Y9.7 billion in the
three months ended December 31, 2001, Dow Jones reported on
Tuesday.
GROUP 2001 2000
Sales Y149.18 billion Y180.17 billion
Operating Profit (14.17 billion) 18.08 billion
Pretax Profit (13.81 billion) 15.55 billion
Net Profit (9.76 billion) 10.39 billion
Per share
Earnings (73.45) 78.08
Figures in parentheses are losses.
According to Kyodo News on Tuesday the electronic components
maker attributed the downward revision to weaker-than-expected
demand due to inventory adjustments at client firms amid the
bursting of the so-called information technology (IT) bubble.
* Moody's Reviews Seven Life Insurers for Possible Downgrade
------------------------------------------------------------
Moody's Investors Service has placed the insurance financial
strength ratings of seven Japanese life insurance companies
under review for possible downgrade. Moody's action follows the
announcement, made on February 1, 2002, of its concerns over
growing financial stress in the sector arising from the
deterioration in the Japanese economy, the unfavorable structure
of the life insurers' operations and their uncertain capital
raising prospects.
All of the Japanese life insurance companies are under
significant pressure due to the deteriorating economic
conditions and the poor performance of the Japanese stock
market. These factors contribute to sluggish sales of new
contracts and high instances of policy surrender and lapsation.
Meanwhile, the lingering low interest rate environment is
keeping negative spread problems unresolved, leading to a long-
term decline in profitability. These factors serve to further
weaken the companies' already weak credit profiles.
In response, the life insurance companies have been pursuing
consolidation and alliances. However, these moves are unlikely
to be sufficient to fundamentally rectify the underlying
structural problems of the sector. The difficult situation is
further exacerbated by the lack of resources of those entities
from where external support could potentially be derived.
Moody's review will focus on the ability of these companies to
develop and implement credible plans to meet the challenges as
outlined above.
These insurance financial strength ratings were placed on
review:
The Dai-ichi Mutual Life Insurance Company: A3
Daido Life Insurance Company: A3
Fukoku Mutual Life Insurance Company: A3
Meiji Life Insurance Company: A2
Mitsui Mutual Life Insurance Company: Ba1
Nippon Life Insurance Company: Aa3
Sumitomo Life Insurance Company: Baa1
The A2 rating of The Yasuda Mutual Life Insurance Company
remains on review for possible downgrade.
The ratings of these two insurance companies were unaffected:
Asahi Mutual Life Insurance Company: recently downgraded to Caa1
with negative outlook
The Taiyo Mutual Life Insurance Company: Baa2 with stable
outlook
=========
K O R E A
=========
HYNIX SEMICONDUCTOR: Court Orders W171.8B Payment to HHI
--------------------------------------------------------
In a disclosure to the Korea Stock Exchange, Hynix
Semiconductor, Inc. Hyundai Securities Co., Ltd. & Ik Chi Lee,
as defendants in a lawsuit decided on February 2, 2002 filed by
Hyundai Heavy Industries Co. (HHI) for payment obligation for
loss due to delayed repayment of foreign liability (related to
Hyundai Investment & Securities Co., Ltd share fraction), were
ordered:
1) Defendants must jointly pay W171,822,268,800 to the
plaintiff.
In addition, defendants must also pay 5 percent annually for the
period of July 21, 2000 to January 25, 2001 and 25 percent
annually, after January 25, 2002 until the completion date
2) Plaintiff claims against defendants Hynix Semiconductor Inc,
Hyundai Securities Co., Ltd, and Ick-Chi Lee are discussed.
3) One third of all expenses concerned with this lawsuit are
charged to plaintiff and the rest to each defendants.
4) Clause 1 can be executed provisionally.
An intermediate appeal is scheduled and the above result of 1st
trial can be changed depending on the results of appeal.
HYNIX SEMICONDUCTOR: No Deal With Micron Yet
--------------------------------------------
DebtTraders analysts, Daniel Fan (852-2537-4111) and Blythe
Berselli (1-212-247-5300), reported that Hynix Semiconductors
does not expect to arrive at an agreement with Micron this week.
The chipmaker's chief executive will have a fifth round of talks
with Micron this week on a possible take over. Hynix is also in
talks with Infineon for a strategic alliance.
Hyundai Semiconductor's bond due in 2004 (HYUNS1) trades between
63 and 68. For real-time bond pricing, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=HYUNS1
HYNIX SEMICONDUCTOR: Raising Chip Prices by 20%
-----------------------------------------------
Hynix Semiconductor Inc. has agreed with its major contract
customers a 20 percent hike in DRAM chip prices. The hikes mark
the fifth time that the firm have raised DRAM prices since last
December. Hynix' 128MB DRAM chips prices has risen to around $4,
four times that of last November. The steep upward spiral has
rapidly improved the position of the chip-making unit of the
company.
According to TCR-AP the Company's Chief Executive Park Chong-sup
has left for the United States on Saturday to hold discussions
with Micron regarding a possible alliance.
HYUNDAI SECURITIES: Hyundai Heavy Gets Favorable Decision
---------------------------------------------------------
The Korea Stock Exchange disclosed on Tuesday that Hynix
Semiconductor, Inc. Hyundai Securities Co., Ltd. & Ik Chi Lee,
as defendants in a lawsuit decided on February 2, 2002 filed by
Hyundai Heavy Industries Co. for payment obligation for loss due
to delayed repayment of foreign liability (related to Hyundai
Investment & Securities Co., Ltd share fraction), were ordered:
1) Defendants must jointly pay W171,822,268,800 to the
plaintiff. In addition, defendants must also pay 5 percent
annually for the period of July 21, 2000 to January 25, 2001 and
25 percent annually, after January 25, 2002 until the completion
date
2) Plaintiff claims against defendants Hynix Semiconductor Inc,
Hyundai Securities Co., Ltd, and Ick-Chi Lee are discussed.
3) One third of all expenses concerned with this lawsuit are
charged to plaintiff and the rest to each defendants.
4) Clause 1 can be executed provisionally.
An intermediate appeal is scheduled and the above result of 1st
trial can be changed depending on the results of appeal.
SSANGYONG CORP: Creditors Plan W210B Debt-Equity Conversion
-----------------------------------------------------------
Creditors of Ssangyong Corporation are going to convert W210
billion in debt owed by the firm into equity and roll over
repayments of other debt until the end of 2005 as part of a debt
restructuring, AFX News reported Monday, citing main creditor
Chohung Bank. Creditors are seeking to write down every five
shares into one for minority shareholders, and carry out a
complete equity write-off for major shareholders.
The creditors will decide on the details of the debt
restructuring on February 8.
===============
M A L A Y S I A
===============
ABRAR CORPORATION: SAs Review Restructuring Exercise Proposal
-------------------------------------------------------------
Abrar Corporation Berhad (Special Administrators Appointed) (the
Company) announced:
On 10 January 2002, the Special Administrators (SAs) of the
Company held a briefing for interested parties with strong asset
backing and management expertise on the tender procedure for the
submission of offers/proposals on the restructuring exercise of
the Company at Pengurusan Danaharta Nasional Berhad's premises
in Kuala Lumpur. The interested parties were required to submit
the offers/proposals on 23 January 2002.
The Special Administrators of the Company are currently
reviewing the offers/proposals submitted to them by the
interested parties and thereafter, will formulate a workout
proposal for the Company.
In the meantime, the Exchange had by its letter dated 25 January
2002 granted the Company with an extension of time from 23
December 2001 to 28 February 2002 to enable the Company to make
its 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 22 December 2001. The Company had by its letter
dated 10 December 2001 sought the approval of the Exchange for a
further extension of twelve (12) months until 22 December 2002
to make the Requisite Announcement.
ARTWRIGHT HOLDINGS: Asset Sale, Purchase Agreement Completed
------------------------------------------------------------
On behalf of the Board of Directors Artwright Holdings Berhad
(AHB or Company), further to the announcements dated 5 June
2001, 17 August 2001, 10 October 2001, 2 November 2001, 24
December 2001, 25 January 2002 and 29 January 2002 in relation
to the Proposals, Alliance Merchant Bank Berhad announced that,
as at 31 January 2002, all the conditions precedent as detailed
under Clause 4.1 of the Assets Sale & Purchase Agreement between
AHB and Steelcase Artwright Manufacturing Sdn Bhd (formerly
known as Rengard Industries Sdn Bhd) have been fulfilled.
Accordingly, the agreement has become unconditional.
The "Proposals" refers to:
* Proposed Strategic Alliance with Steelcase Inc.
(Steelcase);
* Proposed Voluntary Debt Restructuring; and
* Proposed Employees' Share Option Scheme.
The Board of Directors of AHB also announced, in relation to the
Proposed Strategic Alliance and Revised Proposed Debt
Restructuring that the Company has received all the approvals
required from these regulatory authorities:
* Foreign Investment Committee vide their letter dated 31
October 2001;
* Ministry of International Trade and Industry vide their
letter dated 1 November 2001;
* Bank Negara Malaysia vide their letters dated 5 October 2001
and 21 November 2001; and
* Securities Commission vide their letter dated 28 January
2002.
Subsequent to the aforementioned, the Company's plan to
regularize its financial condition is currently pending
implementation.
DAMANSARA REALTY: Updates Defaulted Payment Status
--------------------------------------------------
Damansara Realty Berhad (DBHD or the Company) provided a status
update on the default in principal and/or interest payment by:
a) Johor City Development Sdn Bhd (JCD) in relation to RM400
million Bank Guarantee Facility (BG Facility);
b) DBHD in relation to RM13.7 million Revolving Credit
Facilities (RC Facilities); and
c) Damansara Realty (Pahang) Sdn Bhd (DRP) in relation to
RM57.9 million Syndicated Term Loan Facility (Term Loan
Facility)
JCD's RM400 million BG Facility
The hearing of the application for Interim Injunction against
the guarantor banks, which was originally fixed on 4 February
2002 has been adjourned to 21 February 2002.
DBHD's RC Facilities
There is no material development on the default of the RC
Facilities. DBHD is still in the process of negotiating with the
Lenders for the purpose of restructuring the said Facilities.
DRP's RM57.9 million Term Loan Facility
On 18 January 2002, DRP was served with a letter from the
Lenders of the Term Loan Facility, inter-alia, declaring on an
Event of Default on the said Facility and demanding for all
amounts due under the said Facility to be immediately payable.
Notwithstanding that, DRP will continue to negotiate with the
Lenders for the purpose of restructuring the Facility.
DATAPREP HOLDINGS: Restructuring Scheme Implementation Underway
---------------------------------------------------------------
Arab-Malaysian Merchant Bank Berhad, on behalf of the Board of
Directors of Dataprep Holdings Berhad (Dataprep or Company)
announced that the Company is in the process of implementing the
Proposed Restructuring Scheme, which was approved by the
shareholders of the Company on 18 January 2002.
In accordance with Section 64(1)(b) of the Companies Act, 1965,
the Company has submitted an application to the High Court of
Malaya (Court) for the reduction of its share capital pursuant
to the Proposed Capital Reduction and Consolidation. The Court's
sanction is still pending as at the date of this announcement.
L&M CORPORATION: Updates LMK Winding Up Petition Status
-------------------------------------------------------
The Board of Directors of L & M Corporation (M) Bhd (L&M) wishes
announced this additional information on the default or
circumstances leading to the filing of the winding-up petition
against L&M Kinabalu Sdn Bhd (LMK):
Grorich Sdn Bhd (GSB) was a supplier of construction material to
LMK. GSB had initiated legal proceedings against LMK claiming an
outstanding sum of RM298,867-15 for material supplied. However,
LMK was not defending against the said legal proceedings as LMK
was under severe cashflow constrain and unable to meet its
liabilities.
Furthermore, its immediate holding company namely L & M East
Malaysia Sdn Bhd was liquidated on 6 December 2000. Thus, on 9
January 2001, GSB had obtained a judgment against LMK for the
said sum and filing fee of RM278-00.
LMK had hitherto failed to settle the judgment amount, which
leads to the filing of the winding up petition.
NCK CORPORATION: SAs Finalize Workout Proposal
----------------------------------------------
The Special Administrators (SAs), on behalf of NCK Corporation
Berhad (NCK), announced that Alliance Merchant Bank Berhad had
on 20 December 2001 applied for a further extension of 2 months
to release the Requisite Announcement (RA) to the KLSE. The KLSE
had on 25 January 2002 approved 2 months from 26 December 2001
to 25 February 2002 to enable the Company to announce its RA to
the Exchange for public release.
In the meantime, as part of the financial regularization
efforts, the Group had entered into agreements for the proposed
disposals of the NCK's Group entire investment in UCP Resources
Berhad (UCP shares) and for the proposed Transfer of Listing
Status of NCK. The proposed disposals of the UCP shares are
subject to conditions precedent amongst which include the
approval of the Securities Commission (SC). The submission to SC
was made on 24 January 2002.
The Company's Adviser, Alliance Merchant Bank Berhad has
announced the above agreements to the Exchange on 10 January
2002 and 16 January 2002 respectively.
The proposed disposals of the UCP shares as well as the Transfer
of Listing Status exercise will form part of the Workout
Proposal for NCK, which is being finalized by the SAs and will
be submitted to Pengurusan Danaharta Nasional Berhad (Danaharta)
for their approval and the approval of the secured creditors, if
any. Danaharta will announce details on the workout proposal
upon approval.
PAN PACIFIC: Awaits Solicitor's Debt Restructuring Opinion
----------------------------------------------------------
Pan Pacific Asia Berhad (the Company or PPAB) informed the Kuala
Lumpur Stock Exchange (KLSE) that in respect of the debt
restructuring:
(1) the Company is awaiting a legal opinion from the
financier's solicitor for the restructuring of the said
facilities; and
(2) the Company has written to the Receiver and Manager of
our subsidiary company for the restructuring of the debts
involving the subsidiary, where PPAB stood as a guarantor.
With regards to the establishment of its manufacturing facility,
PPAB wish to inform the KLSE of:
(1) the Company submitted application to the Ministry of
International Trade and Industry for manufacturing license and
tax incentives;
(2) the Company submitted application to Royal Customs and
Excise for classification of products under biodegradable;
(3) the Company entered into a 3-year lease agreement for a
site in Shah Alam for the manufacturing plant; and
(4) the Company received quotations from various electrical
consultants for installation of electrical system in the
manufacturing plant.
PANGLOBAL BERHAD: Regulatory Authorities' Plan Approval Pending
---------------------------------------------------------------
PanGlobal Berhad (PGB or the Company), in reference to the
announcement on 10 January 2002 wherein it was announced that an
application has been made to the Kuala Lumpur Stock Exchange
(KLSE) for a further extension of time until 25 April 2002 to
obtain the relevant approvals pursuant to PN4/2001, is still
awaiting the Kuala Lumpur Stock Exchange's approval as well as
the approval of the Securities Commission (SC) for its proposed
scheme of arrangement (the Scheme).
The approval of the Controller of Foreign Exchange (CFE) for the
issuance of the redeemable convertible secured loan stocks to an
offshore bank creditor has been obtained vide the CFE's letter
dated 23 January 2002. However, PGB is in the midst of seeking
clarification on the said approval.
The Company has obtained the approval of the Foreign Investment
Committee and the conditional approval of Bank Negara Malaysia
for the Scheme.
RAHMAN HYDRAULIC: KLSE Grants Regularization Plan Extension
-----------------------------------------------------------
Rahman Hydraulic Tin Berhad (Special Administrators Appointed)
(the Company or RHTB) announced that the Company has on 29
January 2002 announced that the Exchange has approved an
extension of time till 28 February 2002 for the Company to
revise its regularization plan and make a revised Requisite
Announcement to the Exchange, pursuant to Paragraph 5.1 of PN4,
in view of the White Knight Company's withdrawal from the
proposed restructuring scheme of RHTB in December 2001.
The Special Administrators are currently reviewing alternatives
for the Company's plan to regularize its financial condition and
any further developments will be announced to the Exchange in
due course.
RNC CORPORATION: KLSE's Scheme Approval Pending
-----------------------------------------------
RNC Corporation Berhad, in reference to the First Announcement
on 19th February 2001 on the Proposed Corporate and Debt
Restructuring Scheme (PRS) and the previous Monthly Status
Announcements since 1st March 2001, updated the status of the
PRS:
(a) The Scheme is still pending the approval of the Kuala
Lumpur Stock Exchange (KLSE) for the listing and quotation of
the ordinary shares, Redeemable Convertible Secured Loan Stocks
(RCSLS) and Redeemable Convertible Unsecured Loan Stocks (RCULS)
on the Main Board of KLSE pursuant to the PRS; and
(b) The Special Administrators and Affin Merchant Bank Berhad
are in the midst of preparing an Information Circular detailing
the approved PRS, which will be sent out to shareholders in due
course after the receipt of clearance from the KLSE on the
content of the circular.
KLSE has approved the application for an extension of time until
30th June 2002:
(a) to amend the Articles of Association; and
(b) to obtain a general mandate for recurrent related party
transactions of a revenue or trading nature.
SISTEM TELEVISYEN: Scheme Creditors Meeting Set
-----------------------------------------------
On behalf of the Board of Directors of Sistem Televisyen
Malaysia Berhad (TV3), Arab-Malaysian Merchant Bank Berhad
(Arab-Malaysian), in reference to the announcement dated 23
January 2002 wherein TV3 had submitted the Corporate Proposals
to the relevant authorities, including the Securities
Commission, for approval announced that the Court convened
meeting of the TV3 Scheme Creditors is to be held on 28 February
2002.
TV3 also announced that its Eighteenth Annual General Meeting of
will be held at Theatrette, Sri Pentas, No. 3, Persiaran Bandar
Utama, Bandar Utama, 47800 Petaling, Selangor, Malaysia on
Tuesday, 26 February 2002 at 10.00 a.m. for these purposes:
AGENDA
1. To receive and adopt the Statutory Financial Statements for
the financial year ended 31 August 2001 and the Reports of the
Directors and Auditors thereon. (Resolution 1)
2. To re-elect the following Directors who retire in accordance
with Article 80 and 82 of the Company's Articles of Association
and being eligible have offered themselves for re-election:
(i) YBhg Datuk Zahari bin Omar (Resolution 2)
(ii) YBhg Dato' Abdullah bin Mohd Yusof (Resolution 3)
(iii) Encik Amrin bin Hj Awaluddin (Resolution 4)
3. To re-elect the following Directors who retire in accordance
with Article 86 of the Company's Articles of Association
and being eligible have offered themselves for re-election:
(i) YAM Dato' Seri Syed Anwar Jamalullail (Resolution 5)
(ii) Encik Abdul Rahman bin Ahmad (Resolution 6)
(iii) Encik Shahril Ridza bin Ridzuan (Resolution 7)
4. To approve the Directors' fees of RM80,000 for the financial
year ended 31 August 2001 (2000 : RM80,000) (Resolution 8)
5. To re-appoint Messrs PricewaterhouseCoopers as Auditors of
the Company and to authorize the Directors to fix their
remuneration. (Resolution 9)
AS SPECIAL BUSINESS
6. To consider and if thought fit, to pass the following
Ordinary Resolution:
"That pursuant to Section 132D of the Companies Act 1965, the
Directors be and hereby authorized to issue shares in the
Company at any time until the conclusion of the next Annual
General Meeting and upon such terms and conditions and for such
purposes as the Directors may in their absolute discretion, deem
fit provided that the aggregate number of shares to be issued
does not exceed 10 percent of the issued share capital of the
Company for the time being, subject always to the approval of
all regulatory bodies being obtained for such allotment and
issues." (Resolution 10)
7. To consider and if thought fit, to pass the following Special
Resolution:
"That the proposed new Articles of Association as contained in
Appendix I of the Circular to Shareholders dated 4
February 2002 be approved and adopted as the new Articles of
Association, in substitution for and to the exclusion
of all existing Articles thereof" (Resolution 11)
8. To transact any other business of which due notice shall have
been received.
TRANS CAPITAL: New MoU In Works With New White Knight
------------------------------------------------------
Trans Capital Holding Berhad (TCHB or the Company), in reference
to the announcement dated 1 October 2001 wherein the Company had
pursuant to paragraph 8.14 of the Listing Requirements of the
KLSE and Practice Note 4/2001 dated 15 February 2001 issued by
the KLSE (Practice Note) announced:
* TCHB is an affected listed issuer under the Practice Note;
* TCHB had on 12 November 2001 entered into a Memorandum of
Understanding with the shareholders of Menta Construction Sdn
Bhd wherein both parties are proposing a restructuring scheme
involving, inter-alia, the setting up of a newco to take over
the listing status of TCHB and the shareholders of Menta to
inject Menta and its subsidiaries into the newco.
* TCHB had received the approval of the KLSE for the
extension of time for 4 months from 22 October 2001 to 28
February 2002 in order for TCHB to comply with the requirements
of paragraph 5.1 of PN4/2001.
The Board of Directors of TCHB hereby informed the KLSE that the
Memorandum of Understanding (MoU) signed between TCHB and Menta
Construction Sdn Bhd on 12 November 2001 has lapsed as both
parties cannot achieve mutual agreement. TCHB is currently
working with another White Knight and in the process of signing
the MoU soon.
=====================
P H I L I P P I N E S
=====================
NATIONAL POWER: Posts P6.3B 2001 Net Loss
-----------------------------------------
The National Power Corporation (Napocor) reported a net loss of
P6.3 billion in 2001 versus a loss of P11.9 billion in 2000, AFX
News and Business World reported on Wednesday. Napocor said its
energy sales rose 6.7 percent year-on-year to 28,149.4
gigawatthours. The report said that the decline in income was
due to the entry of independent power producers, the volatile
peso and its weak financial position.
Napocor will declare 8,000 positions empty as part of the firm's
restructuring under the power sector reform law, AFX News and
Manila Standard reported Tuesday.
DebtTraders reports that National Power Corporation's 9.750%
bond due in 2009 (NATPW6) trades between 92.108 and 94.018. For
real-time bond pricing, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=NATPW6
NATIONAL STEEL: Arroyo Orders Steel Plant Foreclosure
-----------------------------------------------------
President Gloria Arroyo has ordered officials to continue with
the foreclosure of National Steel Corp (NSC), AFX News and
Philippine Star reported Tuesday. Arroyo said the Company's
creditor-banks and major shareholder Pengurusan Danaharta
Nasional Bhd had decided on the foreclosure, with the view to
reopening National Steel in the next six months.
According to TCR-AP, last month the labor union of NSC opposed
the government's decision to foreclose the debt-ridden plant.
President Arroyo announced NSC will be foreclosed and the
government will establish a special purpose vehicle that will
permit creditor banks to acquire its assets.
URBAN BANK: SEC OKs Merger With Export Bank
-------------------------------------------
Urbank Bank, Inc., in its letter dated February 1, 2002,
informed the Philippine Stock Exchange that the merger among
Urbank Bank, Inc., Urbancorp Investments, Inc. and Export and
Industry Bank, Inc., with UBI as the surviving corporation
renamed EIB, was approved by the SEC on January 31, 2002.
The articles and plan of merger, as stated in the certificate of
filing, was approved by a majority vote of the Board of
Directors on July 31, 2001 for Urban Bank and UII, and on May
10, June 29 and July 27, 2001 for ExportBank and by the vote of
the stockholders owning or representing at least 2/3 of the
outstanding capital stock of constituent corporations on July
31, 2001 for Urbank Bank, Inc. and UII and on May 25, 2001 and
July 27, 2001 for ExportBank, signed by the Presidents of the
constituent corporations, certified by the corporate secretaries
of the respective corporations, whereby the entire assets and
liabilities of Urbancorp Investments, Inc., and Export And
Industry Bank, Inc. will be transferred to and absorbed by Urban
Bank, Inc. now Export and Industry Bank, Inc.
The exchange shall inform the member-brokers and the investing
public on further developments with regard to the aforementioned
matter.
=================
S I N G A P O R E
=================
SEMBCORP LOGISTICS: Incorporates Dilmum Navigation Unit
-------------------------------------------------------
SembCorp Logistics (SembLog) announced on Tuesday that it has
incorporated a Singapore wholly owned subsidiary, Dilmun
Navigation (Singapore) Pte Ltd (registration no. 200106712R).
Its authorized and paid-up capital are S$100,000 and S$2
respectively.
Organized under the Dilmun group, the principal activities of
Dilmun Singapore are ship owning and ship chartering. The
formation of Dilmun Singapore is part of Dilmun's fleet
replacement, programmed to preserve the value of its assets and
to maintain its share in the Southwest Pacific tanker market. By
doing so, the Dilmun group would be more attractive to potential
buyers.
Dilmun Singapore has entered into a Shipbuilding Agreement with
Samho Shipbuilding Co., Ltd under which Samho will construct a
3,000 dead weight tonne petroleum product tanker for Dilmun
Singapore to meet its obligations under a five-year time
charterparty which The Shell Company of Fiji Limited has awarded
to Dilmun Singapore. The contract price of US$7.5 million
(approximately S$13.7 million) will be financed by a combination
of internal funds and borrowings.
Payment of the contract price will be made in five equal
installments of 20 per cent each, subject to the completion of
the relevant stages of construction. The first installment is
expected to be made by end-February 2002. The next three
installments would be paid sometime in May, July and November
2002. The final installment is payable upon delivery of the
vessel which is scheduled for March 2003.
Dilmun Singapore has also at the same time signed an agreement
with Samho under which Dilmun Singapore has the option to order
a second vessel within the next three months and a third vessel
within the next six months at the same terms, conditions and
price as for the first vessel except for the delivery date which
shall respectively be three months and six months from March
2003. Each option is exercisable at Dilmun Singapore's sole
discretion. The options will only be exercised, if appropriate,
and if new vessels are required under any further charterparties
awarded to Dilmun Singapore within the next three to six months.
The Shipbuilding Agreement is not expected to have any immediate
financial impact on SembLog's net tangible asset per share or
earnings per share.
None of the Directors and substantial shareholders of SembLog
has any interest, direct or indirect, in the Shipbuilding
Agreement.
For media and investor enquiries, please call:
Chow Hung Hoeng (Ms)
Investor Relations
SembCorp Logistics
Tel: (65) 462 8408
Fax: (65) 468 2797/3522 163
Email: chowhh@sembcorp.com.sg
Website: www.semblog.com
CHEW EU: Requests Continued Trading Suspension
----------------------------------------------
The Directors of Chew Eu Hock Holdings Ltd on Tuesday, further
to the Company's request on 28 January 2002 for a suspension of
trading in the Company's shares and the Company's announcement
of 30 January 2002 relating to the Acquisition (the Acquisition
Announcement), announced that it has requested to the SGX-ST for
a continued temporary suspension of trading in the Company's
shares and that the SGX-ST has no objection to such request,
based on the rationale and confirmation set out below (All
capitalized terms herein shall have the same meaning as defined
in the Acquisition Announcement).
1. The Directors are mindful of recent occasions in which the
Company's shares traded in sharp increases in prices and trading
volumes. On one such occasion, the Directors had issued a
cautionary announcement expressing their opinion that such
prices and trading volumes were not "warranted". At that time,
there was no binding agreement in respect of the Acquisition.
While the Directors have disclosed all available material
information, they remain concerned, for reasons expressed below,
that the information presented to shareholders and investors to-
date does not present a sufficiently clear and adequate picture
as to the financial impact of the Scheme and the Acquisition.
2. The Acquisition is a very substantial acquisition within the
meaning of Clause 1008 of the Listing Manual, resulting in a
reverse takeover of the Company. Ordinarily, certain information
including an accountant's report on the assets to be acquired
and on the proforma group financial statements of the listed
issuer after the Acquisition, should have been disclosed in the
Acquisition Announcement. Such financial information on a
proforma basis on the enlarged group requires adequate
information about the CEH Group itself on the one hand as well
as adequate information about the Hiap Hoe Companies on the
other hand.
3. However, based on the information currently available, it is
not possible to provide such adequate financial information for
these reasons:
(a) The current financial position of the CEH Group is in a
state of flux:
(i) CEH Construction, which is under judicial management,
is the principal operating subsidiary of the CEH Group. Its
judicial manager has yet to finalize his determination of the
financial position of CEH Construction. The Judicial Manager is
in the process of claiming variation orders on certain customers
whilst disputing variation orders and claims made by its
subcontractors and other unsecured creditors. If CEH
Construction is unable to claim on the variation orders against
its customers and/or resist claims by its subcontractors and
other unsecured creditors, substantial financial adjustments or
provisions may have to be made. As at the date of this
announcement, the Directors understand from the Judicial Manager
that financial adjustments or provisions will have to be made.
(ii) The latest financial information, which has been
audited by the auditors of the Company, is the financial
information of the CEH Group for the financial year ended 31
July 2001. Since 31 July 2001 further liabilities have arisen,
and the extent of the further liabilities can only be
established in the near future.
The Directors are of the view that since the CEH Group has
negative shareholders funds as at 31 July 2001, adjustments and
further liabilities as set out in (i) and (ii) above would
materially weaken the CEH Group further. The Directors are
working in conjunction with the Judicial Manager to provide the
financial information for (i) and (ii) above up to and as at the
first half year ended 31 January 2002 (the "Further Financial
Information") in the immediate future.
(b) The eventual financial position of the Hiap Hoe Companies
for the Acquisition is pending finalization:
(i) For the time being, the Acquisition Announcement
provides historical figures and unaudited management figures on
the Hiap Hoe Companies. The Directors understand from Hiap Hoe
that financial adjustments will have to be made based on further
management related decisions to be taken by Hiap Hoe and its
advisers to finalize the financial position of the respective
Hiap Hoe Companies.
(ii) The information in the Acquisition Announcement has
not been reviewed by the auditors of either Hiap Hoe or the
Company nor have the Directors or the advisers of the Company
had adequate opportunity to independently verify the figures or
seek confirmation on the same from the auditors of the Hiap Hoe
Companies.
(iii) Such information is very preliminary and may not
necessarily turn out to be a fair approximation of the financial
position of the Hiap Hoe Companies once their audited results
are out.
(c) For completeness, the financial effects ought to be also
presented on a per share basis of the enlarged CEH Group after
the Scheme and the Acquisition. The Acquisition is subject to a
number of conditions, one of which is that the Scheme must
become effective, and therefore the completion of the
Acquisition can only take place after the completion of the
Scheme. It is also a condition of the Acquisition that Scheme
must be made conditional on the approval of the Company's
shareholders of the Acquisition. The total number of new shares
to be issued pursuant to the Scheme and the Acquisition is still
unknown. It depends on the conversion basis (which means the
proposed issue price of new CEH Shares to creditors) to be
proposed by the Judicial Manager. At this point in time, the
Judicial Manager has yet to form an opinion and accordingly has
yet to make any proposal on the conversion basis for the Scheme.
For the foregoing reasons, the Directors are concerned that it
is not possible for the time being to provide adequately
comprehensive or reliable proforma financial effects of the
Scheme and the Acquisition which information the Directors feel
is material for the market to assess the full financial impact
of the Scheme and the Acquisition.
However, when the Directors are able to provide the Further
Financial Information, they will review their request with the
SGX-ST with a view to resuming trading of the Company's shares.
It is hoped that this will be achieved by mid March 2002, by
which time the CEH Group should also be in a position to make
available the Further Financial Information as part of the
expedited release of its half-year results ended 31 January
2002. At that time, even if the financial information on the
Hiap Hoe Companies is still pending finalization or the possible
total number of shares for the Scheme and the Acquisition is not
proposed, the Directors would have less concern on the
resumption of trading of the Company's shares.
Save as set out above, the Directors do not have any other
reasons for the continued temporary suspension in trading in the
Company's shares.
The Directors confirmed, after making all reasonable enquiries,
that to the best of their knowledge and belief, the facts stated
and opinions expressed in this Announcement are fair and
accurate in all material aspects as at the date hereof, and that
there are no material facts the omission of which would make
this Announcement misleading.
TCR-AP reported that in the year 2000 the construction firm Chew
Eu Hock Holdings posted a full-year net loss of $7.9 million,
attributing it to recessionary conditions in the construction
sector as well as cost overruns.
KOH BROTHERS: Clarifies Group's Construction Contract Report
------------------------------------------------------------
Koh Brothers Group Limited, in reference to the clarification in
relation to article in the Business Times of February 4, 2002,
provided additional information as requested by SGX regarding
the Group's construction contracts currently in hand.
The Group currently has construction contracts in hand with
contract value totaling S$471 million, which are expected to
receive Temporary Occupancy Permit (TOP) upon completion between
2002 to 2008. Barring unforeseen circumstances, the Group
expects that 5 projects with contract value totaling S$213
million will be completed and issued with TOP in 2002. However,
the Group recognizes revenue from its construction contracts
progressively over their respective project duration according
to the stage of work done.
In addition, KBG refers to the Business Times (BT) article
published on 04 February 2002 titled "Property firm Koh Bros
goes from niche to mass market." In the said article, it was
erroneously reported that over the next 10 years, turnover for
the Group's construction and building materials divisions are
expected to grow by 40 percent whilst turnover for the real
estate and hotel arms are expected to grow by 30 percent. The
correct disclosure should be that the Group's focus is to
strengthen all its core businesses, in particular its real
estate and hotel businesses. Through this strategy, the Group
hopes to achieve contribution to group turnover of 40 percent
from its construction and building materials divisions and 30
percent each from its real estate and hotel businesses by the
end of the next 10 years. The figures of 40 percent and 30
percent should refer to targeted turnover composition by the end
of the next 10 years and not turnover growth rates projected for
the next 10 years as incorrectly reported in the BT article.
THIRD DRAGON: Goes Into Liquidation
-----------------------------------
The Board of Directors of Dragon Land Limited (the Company)
announced on February 5, 2002 that its subsidiary, Third Dragon
Development (HK) Ltd (TDD) has been placed in a members'
voluntary liquidation on 31 December 2001.
The liquidation of TDD is not expected to have any material
impact on the consolidated net tangible assets or earnings per
share of the company for the financial year ended 31 December
2001.
===============
T H A I L A N D
===============
DATAMAT PUBLIC: Posts BODs' Meeting Resolutions
-----------------------------------------------
Datamat Public Company Limited informed that the resolutions of
the Board of Directors Meeting No.3/2545 held on 5th of February
2002 are:
1. To pass a resolution to reduce the company's capital to
Bt6,212,851,980 by decreasing 13,714,802 shares which have not
been purchased by anyone at par value of Bt10.00 each.
2. To pass a resolution to increase its capital by issuance of
378,714,802 ordinary shares, at par value of Bt1.00 each totally
Bt1,000,000,000 allotted to private placement not over 35
persons pursuant to the Notification No. Korjor12/2543, Re:
Request and Permission to offer newly issued shares dated June
1,1999, and to amend the Memorandum of Association Clause 4. to
be consistent with the increasing capital.
3. To amend the Agendas in the Extra-ordinary Meeting No.1/2545,
will be held on 21st of February 2002 of which would be
consistent with the resolution of the Board of Directors Meeting
as:
1) To approve and adopt the Minute of Extra-ordinary Meeting
No.1/2544
2) To approve the capital decreased to Bt6,212,851,980 by
decreasing 13,714,802 shares, which have not been purchased by
anyone at par value of Bt10.00 each.
3) To approve amendment of Memorandum of Association Clause 4
to be consistent with the reduction of capital.
4) To approve reduction of capital by decreasing par value of
Bt10.00 to Bt1.00. each.
5) To approve amendment of Memorandum of Association Clause 4
to be consistent with the reduction of capital.
6) To approve increasing its capital by issuance of
378,714,802 ordinary shares, at par value of Bt1.00 each, total
registered shares will be Bt1,000,000,000
7) To approve amendment of Memorandum of Association Clause 4
to be consistent with the reduction of capital.
8) To elect directors and amendment of Directors' authority
9) Other matters (if any)
4. Since Mr. Narong Sooppipatt, Mr. Narong Klinkusoom and Mr.
Pisut Dejakaisaya had resigned from their directorship effective
on 4th of February 2002, the Meeting passed a resolution to
elect Mr. Miguel Angel Aerni, Mr. Philip Newson and Mr. Viwat
Arvasiripong as substitute directors.
INTER FAREAST: Files Business Reorganization Petition
-----------------------------------------------------
The Petition for Business Reorganization of Inter Fareast
Engineering Company Limited (DEBTOR), engaged in distributing
representative and rental of office facilities, was filed in the
Central Bankruptcy Court:
Black Case Number 289/2544
Red Case Number 346/2544
Petitioner: BANGKOK BANK PUBLIC COMPANY LIMITED
Planner: Mr. Sukato Phummaree and Mr. Dumri Ammanort
Debts Owed to the Petitioning Creditor: Bt835,210,000
Date of Court Acceptance of the Petition: April 19, 2001
Date of Examining the Petition: May 14, 2001 at 9.00 AM
Court Order for Business Reorganization on May 14, 2001 and
appointed the Debtors' executive to be an Interim Executive
Announcement of Court Order for Business Reorganization in
Matichon Public Company Limited and Siam Rath Company Limited:
May 27 , 2001
Announcement of Court Order for Business Reorganization in
Government Gazette: June 26, 2001
Appointment date for the Meeting of Creditors to elect a
planner: June 18, 2001 at 9.30 am. Convention Room 1105, 11th
Floor, Bangkok Insurance Building, South Sathorn Road
Court Order for Appointment of Planner: July 18, 2001
Announcement of Court Order for Appointment of the Planner in
Matichon Public Company Limited and Siam Rath Company Limited:
July 25, 2001
Announcement of Court Order for Appointment of the Planner in
Government Gazette: August 21, 2001
Deadline for the Planner to submit the Reorganization Plan to
the Official Receiver: November 21, 2001
Planner postponed the date of submitting the reorganization plan
#1st to December 21, 2001
Planner postponed the date of submitting the reorganization plan
#2nd to January 21, 2002
Contact: Mr. Apirak Tel, 6792525 ext. 113
TANAYONG PUBLIC: Unit Skytrain Ridership Up
-------------------------------------------
Bangkok Mass Transit System, 56.6 percent wholly owned
subsidiary of Tanayong Public Company Limited's, reported a 33
percent rise in ridership to 250,000 per day although the
Skytrain needs 400,000 riders a day to break even, DebtTraders
analysts, Daniel Fan (852-2537-4111) and Blythe Berselli (1-
212-247-5300) reported.
Tanayong is under US$1.1 billion debt rehabilitation plan with
creditors. According to Berselli and Fan, "We believe the
improvement in ridership is a credit positive to the Tanayong
3.5% Convertible Bond due '04."
Debtraders reports that Tanayong Public 3.500% convertible bond
due on 2004 (TYONG) trades between 2 and 11. Go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=TYONGfor
more real-time bond pricing information.
THAI PETROCHEMICAL: Feb 8 Repayment Milestone Voting Scheduled
--------------------------------------------------------------
Effective Planners Limited, Plan Administrator of Thai
Petrochemical Industry Public Company Limited (TPI), in
reference to its default by not meeting the requirement of its
Business Reorganization Plan (the Plan) to raise at least USD
200 Million from the sale of Non-Core Assets and repay to the
creditors by 31 December 2001 (the Repayment Milestone) and the
Scheme Creditors would have to vote whether to take any action
in respect of the Event of Default, advised that that, on 4
February 2002, the Scheme Creditors of TPI have voted by fax not
to take any action in respect of the Event of Default.
The Plan Administration will now proceed with the implementation
of the Plan. In addition, the voting to reset the Repayment
Milestone Date is scheduled to take place on Friday, 8 February
2002.
* DebtTraders Real-Time Bond Pricing
------------------------------------
Issuer Coupon Maturity Bid - Ask Weekly change
------ ------ -------- --------- -------------
Asia Pulp & Paper FRN due 2001 8 - 10 -0.5
Asia Pulp & Paper 11.75% due 2005 28 - 30 0
APP China 14.0% due 2010 21 - 24 +1
Asia Global Crossing 13.375% due 2006 34 - 37 -1
Bayan Telecom 13.5% due 2006 19 - 21 +1
Daya Guna Sumudera 10.0% due 2007 1.5 - 5.5 0
Hyundai Semiconductor 8.625% due 2007 56 - 59 -2
Indah Kiat 11.875% due 2002 29.5 - 32.5 +0.5
Indah Kiat 10.0% due 2007 24 - 26 +1
Paiton Energy 9.34% due 2014 53 - 56 0
Tjiwi Kimia 10.0% due 2004 20 - 22 +2
Zhuahi Highway 11.5% due 2008 23 - 28 0
Bond pricing, appearing in each Thursday's edition of the
TCR-AP, is provided by DebtTraders in New York. DebtTraders is a
specialist in global high yield securities, providing clients
unparalleled services in the identification, assessment, and
sourcing of attractive high yield debt investments. For more
information on institutional services, contact Scott Johnson at
1-212-247-5300. To view our research and find out about private
client accounts, contact Peter Fitzpatrick at 1-212-247-3800.
Real-time pricing available at http://www.debttraders.com/
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-Merlin, Maria Cristina Pernites-Lao, Editors.
Copyright 2002. 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 ***