/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/020226.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, February 26, 2002, Vol. 5, No. 40 Headlines A U S T R A L I A CTI COMMUNICATIONS: Capital Reorganization Effective Feb 25 CTI COMMUNICATIONS: Discloses Results of Shareholder's Meeting IOCOM LIMITED: Posts Chairman's Letter to Shareholders SEAFOOD ONLINE.COM: Administrators Nominate Completion Date TENNYSON NETWORKS: Debt Free; Appoints Sale National Director TRANSURBAN GROUP: AMP Cuts Shares to 5.97% WESTERN METALS: Standstill Agreement Extended C H I N A & H O N G K O N G ALROCO COMPANY: Winding Up Sought By Honeycomb Garment CANTON VIEW: Winding Up Petition Slated For Hearing DAILYWIN GROUP: Requests Suspension of Trading CHINADOTCOM: Deep Cost Cuts Squeeze Losses EXPRESS PROFIT: Hearing of Winding Up Petition Set GLOBAL FOOD: Capital Reorganization Resolutions Passed GREATWALL CYBER: Price, Turnover Movements Inexplicable I N D O N E S I A BANK CENTRAL: Farallon Plans to Withdraw Bid BANK CENTRAL: StanChart, Farallon Passed "Fit and Proper Test" SEMEN GRESIK: PCA Chairman Requests Privatization Annulment J A P A N DAIEI INC: FSA Urges Banks to Add Y100B Bailout DAIEI INC: To Receive Y460B From Major Creditor Banks DAIKYO INC: Three Banks to Provide Y500B Assistance HITACHI LIMITED: Set for Y300B Loss JAPAN METALS: Files for Court Protection MATSUSHITA ELECTRIC: Loss Warnings NISSHO IWA: Merging Three Lumber Marketing Units in April TOWA REAL: Major Creditor Banks Consider Y200B Bailout Plan K O R E A DAEWOO ELECTRONICS: Creditors Receive Three Letters of Intent DAEWOO GROUP: KDIC Considering Damage Suit HYNIX SEMICONDUCTOR: Creditors Likely to Flare Up Over CBs HYUNDAI ENGINEERING: Plans Additional Write-off of Iraqi Claims KOREA GAS: Labor Union Agrees to Restructuring Plan KYONGNAM LEASING: Excluded From Debt Rescheduling Agreement POHANG IRON: Daewoo Securities Ups Target Price to W200K M A L A Y S I A ASSOCIATED KAOLIN: Obtains MITI's Nod on Proposals BESCORP INDUSTRIES: Provides Defaulted Payment Status Update CRIMSON LAND: Faces Writ of Summons Over Defaulted Payment CSM CORPORATION: Files Suits Against Former Directors CSM CORPORATION: Updates Defaulted Payment Status KELANAMAS INDUSTRIES: Changes Office Address MECHMAR CORPORATION: Winding Up Petition Hearing Adjourned PAN MALAYSIAN: Soo Lay Buys Shares During Closed Period PILECON ENGINEERING: Securities Trading Suspended TDM BERHAD: Unit Releases Winding Up Petition Additional Info UMW INDUSTRIES: Undergoes Voluntary Liquidation P H I L I P P I N E S NATIONAL POWER: Guarantees Cause Rise In Government Debt NATIONAL STEEL: Liquidator Asks For Proposal Extension T H A I L A N D CENTURY COUNTRY: Files Business Reorganization Petition DATAMAT PUBLIC: Posts ESM No. 1/2545 Resolutions THAI TELEPHONE: SET Grants Listed Securities THAI WAH: Explains 2000, 2001 Loss Variance UNITED COMMUNICATION: TRIS Rates Bt2,282M Sr Debentures "BBB-" - - - - - - - - ================= A U S T R A L I A ================= CTI COMMUNICATIONS: Capital Reorganization Effective Feb 25 ----------------------------------------------------------- CTI Communications Limited's participating organizations are advised that subject to shareholder approval the reorganization of capital for CTC Communications Limited (the "Company") will be effective from 25 February 2002. The reorganization will occur by consolidating every fifteen fully-paid ordinary shares in the capital of the Company into one fully-paid ordinary share. Fractions will be rounded up. The following timetable will apply. 22 February 2002 Shareholder approval. 25 February 2002 Trading would normally commence in the reorganized securities on a deferred basis. ASX Code: CTCDA 1 March 2002 Last day for the Company to register transfers on a pre-reorganization basis. 4 March 2002 First day for the Company to register securities on a post reorganization basis. 8 March 2002 Dispatch date. Deferred settlement trading ends. ASX Code: CTC 12 March 2002 Normal T+3 trading would normally commence. 15 March 2002 Settlement of trades conducted on a T+3basis. The securities of the Company remain suspended. CTI COMMUNICATIONS: Discloses Results of Shareholder's Meeting -------------------------------------------------------------- CTI Communications Limited confirmed that all resolutions put to shareholders at a general meeting on Friday were passed. A total of 25 proxies, representing 21,401,382 shares were received from ordinary shareholders. The resolutions were: RESOLUTION 1 - ADOPTION OF NEW CONSTITUTION Of the proxies received with respect to this resolution, 21,333,382 were for this resolution, 1,000 were against, 67,000 were open for the Chairman to vote. RESOLUTION 2 - RE-ELECTION OF PAUL HARDIE AS A DIRECTOR Of the proxies received with respect to this resolution, 21,335,882 were for this resolution, 1,000 were against, 64,500 were open for the Chairman to vote. RESOLUTION 3 - RE-ELECTION OF MARK SUMICH AS A DIRECTOR Of the proxies received with respect to this resolution, 21,335,882 were for this resolution, 1,000 were against, 64,500 were open for the Chairman to vote. RESOLUTION 4 - RE-ELECTION OF JON O'CALLAGHAN AS A DIRECTOR Of the proxies received with respect to this resolution, 21,335,882 were for this resolution, 1,000 were against, 64,500 were open for the Chairman to vote. RESOLUTION 5 - APPOINTMENT OF ERNST & YOUNG AS AUDITOR The consideration of Resolution 5 was delayed until the adjourned meeting is reconvened (see below). RESOLUTION 6 - CONSOLIDATION OF CAPITAL Of the proxies received with respect to this resolution, 21,320,882 were for this resolution, 1,000 were against, 55,000 were open for the Chairman to vote, and 24,500 abstained from voting. RESOLUTION 7 - DIRECTORS' REMUNERATION Of the proxies received with respect to this resolution, 21,312,882 were for this resolution, 24,000 were against, 64,500 were open for the Chairman to vote. RESOLUTION 8 - ISSUE OF SECURITIES IN CONSIDERATION OF RE-ORGANISATION Of the proxies received with respect to this resolution, 21,335,882 were for this resolution, 1,000 were against, 64,500 were open for the Chairman to vote. RESOLUTION 9 - PLACEMENT OF SECURITIES Of the proxies received with respect to this resolution, 21,335,882 were for this resolution, 1,000 were against, 64,500 were open for the Chairman to vote. RESOLUTION 10 - ISSUE OF OPTIONS TO DIRECTORS Of the proxies received with respect to this resolution, 21,331,382 were for this resolution, 5,500 were against, 64,500 were open for the Chairman to vote. RESOLUTION 11 - DEED OF INDEMNITY, INSURANCE AND ACCESS Of the proxies received with respect to this resolution, 21,331,382 were for this resolution, 3,000 were against, 64,500 were open for the Chairman to vote and 2,500 abstained from voting. RESOLUTION 12 - EMPLOYEE OPTION PLAN Of the proxies received with respect to this resolution, 21,331,382 were for this resolution, 1,000 were against, 69,000 were open for the Chairman to vote. The meeting was adjoined and will reconvene at 10.00 am Friday, 12 April 2002 to enable Resolution 5 to be considered after the financial report has been completed and audited, and to enable the tabling of the 2001 Annual Report. Mr Paul Hardie has recently been appointed as Chairman of the Company. Should you have any questions in relation to the above matter, please contact Ms Andrea Meney on (08) 9226 2396. IOCOM LIMITED: Posts Chairman's Letter to Shareholders ------------------------------------------------------ Iocom Limited posted Chairman S Brown's letter to the shareholders: "On behalf of the Board, I would like to thank you for your support of the Company over the past twelve months. The technology sector has seen a great deal of volatility, and experienced its first year of global negative growth in nearly sixteen years. The outlook for the calendar year ahead shows the industry back on track for expansion (IDC Report, Feb). "The acquisition of Optima is seen by the board as a very positive step forward, and is one that the Board believe could offer considerable upside potential for our shareholders. "Over the past two months the Board has worked closely with the senior management team at Optima (including proposed new directors Mr Cornel Ung and Mr Edmond Chan). The Optima management team led by Mr Ung has impressed the Board. "The Board of Iocom strongly believes that the Optima opportunity is in the best interests of shareholders. "Originally, the shareholder resolutions pertaining to the Optima transaction were proposed to be presented at the General Meeting held on 19 February 2002. All shareholders were sent the timetable for completion and an Information Memorandum and Prospectus dated 15 January 2002. "Unfortunately, the timetable for the completion of the Optima Transaction has been delayed, however we see no reason for the transaction not to proceed. "The delay in completing the transaction arises from concerns raised by the Australian Securities and Investment Commission (ASIC), who first contacted Iocom at 5:00pm on Friday 15 February 2002. "Iocom swiftly responded to the concerns of the ASIC, and quickly prepared a Supplementary Prospectus that was lodged with the ASIC on 19 February 2002 (which was mailed to all shareholders, along with the revised timetable). The Board was very disappointed that the ASIC did not raise its concerns earlier, which would have avoided modifying the timetable for completion. "The scheduled General Meeting was held at 10:00am Tuesday 19 February 2002, however the meeting was adjourned with resolutions 1, 3, 4, & 5, as detailed in the Information Memorandum, to be considered at the reconvened meeting scheduled for 10:00am Thursday 14 March 2002. "It should be noted that the `Top-Up' scheme is currently oversubscribed. In addition, applications received under the `Top-Up' scheme will allow Iocom Limited to achieve the spread requirements under the ASX listing rules. Proxy votes received is overwhelmingly in favor of all resolutions before shareholders." SEAFOOD ONLINE.COM: Administrators Nominate Completion Date ----------------------------------------------------------- Seafood Online.Com Limited informed that the Administrators have now nominated a completion date of 22 February 2002 on which completion is to occur. The Administrators will make a further announcement. Early February, the Company advised that the Contract entered into by Seafood Online.Com Ltd (Subject to Deed of Company Arrangement) is now unconditional. Completion of the Contract was due on 19 December 2001, however, the Completion date was extended until 21 January 2002 and further extended until 23 January 2002. The Purchaser failed to complete the Contract on this date. TENNYSON NETWORKS: Debt Free; Appoints Sale National Director ------------------------------------------------------------- Tennyson Networks (ASX: TNY) announced Monday that it is debt free. The Company advised that the remaining $0.7 million in outstanding Secured Convertible Notes were converted last week into the company's shares. Tennyson CEO, Mr Leigh Coleman, said the conversion by note holders had strengthened Tennyson's balance sheet and was a strong vote of confidence for the Company's future prospects. Tennyson also announced the appointment of Mr Gary Newman to the position of National Director of Sales. Mr Newman was formerly Director - Sales and Distribution, Australia and New Zealand, of Motorola Australia's Personal Communications Division. Prior to Motorola, he held senior sales and management roles with Sony Australia and Sharp Corporation. Mr Coleman said the appointment of Mr Newman would add drive and focus to Tennyson's sales and marketing efforts. "We are very pleased to have secured a sales executive of Gary's caliber," Mr Coleman said. "He has extensive experience in successfully dealing with key customers and partners, managing channel relationships and increasing sales through effective management of sales and marketing teams". Mr Newman will be based at Tennyson's head office in Melbourne. TRANSURBAN GROUP: AMP Cuts Shares to 5.97% ----------------------------------------- AMP Limited decreased its relevant interest in Transurban Group on 19 February, 2002, from 35,777,291 ordinary shares (7.02%) to 30,456,748 ordinary shares (5.97%). Wrights Investors' Service reported that at the end of 2001, Transurban Group had negative working capital, as current liabilities were A$217.26 million while total current assets were only A$126.40 million. The fact that the Company has negative working capital could indicate that the Company will have problems in expanding. WESTERN METALS: Standstill Agreement Extended --------------------------------------------- Last year Western Metals Limited entered a standstill agreement with its US Noteholders, which was followed last month with a related standstill agreement with Australian Hedge, counterparties. These standstill agreements were applicable to 22 February 2002. Agreement has been reached with the Noteholders and Counter- parties for an extension of the current standstill agreement until 22 March 2002. Negotiations have progressed and are ongoing. This extension will allow additional time to enable agreement to be reached on revisions to the contractual, financial and security arrangements to apply from 22 March 2002. Western Metals Limited will keep the market informed of any further relevant developments as and when they may arise. Any queries, please contact: Geoff Wedlock MANAGING DIRECTOR & CEO Tel 61 8 9221-2555 ================================ C H I N A & H O N G K O N G ================================ ALROCO COMPANY: Winding Up Sought By Honeycomb Garment ------------------------------------------------------ Honeycomb Garment Factory Limited is seeking the winding up of Alroco Company Limited. The petition was filed on September 21, 2001, and will be heard before the High Court of Hong Kong on March 13, 2002 at 9:30 am. Honeycomb Garment holds its registered office at Block H, 7/F., Ka Ming Court Industrial Building, 688-690 Castle Peak Road, Cheung Sha Wan, Kowloon, Hong Kong. CANTON VIEW: Winding Up Petition Slated For Hearing --------------------------------------------------- The petition to wind up Canton View Limited is set for hearing before the High Court of Hong Kong on April 10, 2002 at 9:30 am. The petition was filed with the court on January 15, 20012 by Hang Hing Fuel Oil Co. Ltd. whose registered office is situated at 1st Floor, Kings Court, 48-52 Fort Street, North Point, Hong Kong. DAILYWIN GROUP: Requests Suspension of Trading --------------------------------------------- Dailywin Group Limited (the Company) requested trading in its shares to be suspended with effect from 10:00 a.m. Monday (25/2/2002) pending the release by the Company of an announcement regarding the results of the hearing of the petition to wind up the Company and for the appointment of provisional liquidators. CHINADOTCOM: Deep Cost Cuts Squeeze Losses ------------------------------------------ Internet company Chinadotcom's cost-cutting measures have helped narrow its fourth quarter net loss by 58.91 percent. The Nasdaq Stock Market-listed, Hong Kong-based company cut its net loss for the three months to December to US$10.19 million, down from US$24.8M in the previous quarter. The company recorded a US$59.8 million net loss on US$65.3 million revenue the previous year. Chief financial officer Daniel Widdicombe attributed the quarterly improvement to a 49.15 percent cut in selling, general and administration expenses to US$11.1 million. Mr. Widdicombe said the substantial drop reflected the benefits of continuing cost-reduction initiatives started over the past year. Since last May, Chinadotcom's cost-cutting measures have included slashing staff numbers to 1,300 from 2,400, and closing or disposing of non-core businesses. On a full year basis, Chinadotcom cut its selling, general and administrative costs by more than US$50 million. Cash operating loss for the fourth quarter was slashed by 72.32 percent to US$4.4 million, compared with a US$15.9 million loss in the third quarter. Chinadotcom saw its first net cash inflow of US$3M from operations, after taking into account US$7.39m interest income from its US$388M net cash reserve. Chinadotcom also saw a halt to falling revenues, by posting a 2.55 percent, or US$443,000 gain, to US$17.75 million. The firm's revenues fell in the four previous quarters. EXPRESS PROFIT: Hearing of Winding Up Petition Set -------------------------------------------------- The petition to wind up Express Profit Enterprise Limited is scheduled for hearing before the High Court of Hong Kong on April 17, 2002 at 9:3.0 am. The petition was filed with the court on January 22, 2002 by Chan Wan Lun of Room 2213, On Ching House, Cheung On Estate, Tsing Yi, New Territories, Hong Kong. GLOBAL FOOD: Capital Reorganization Resolutions Passed ------------------------------------------------------ The Directors of Global Food Culture Group Limited announced that the special resolution for the Capital Reorganization and the ordinary resolutions for the Share Consolidation and the grant of General Mandates were duly passed by the Shareholders at the special general meeting of the Company held on 22nd February, 2002. The effective date of the Capital Reorganization and Share Consolidation will be on 23rd February, 2002. Shareholders and investors are advised to refer to the Announcement and the Circular for the timetable and the details for the trading arrangement for the New Shares. GREATWALL CYBER: Price, Turnover Movements Inexplicable ------------------------------------------------------- Great Wall Cybertech Limited noted the recent increases in the price and trading volume of the shares of the Company and stated that they are not aware of any reasons for such increases. The Company also confirmed that there are no negotiations or agreements relating to intended acquisitions or realizations which are discloseable under paragraph 3 of the Listing Agreement, neither is the Board aware of any matter discloseable under the general obligation imposed by paragraph 2 of the Listing Agreement, which is or may be of a price-sensitive nature. ================= I N D O N E S I A ================= BANK CENTRAL: Farallon Plans to Withdraw Bid -------------------------------------------- Farallon Capital consortium is planning to withdraw from the tender process of acquiring 51 percent of PT Bank Central Asia (BCA), Bisnis Indonesia reports, citing an anonymous source. "Perhaps on Tuesday or Wednesday, Farallon will announce its formal stance to withdraw in a protest to uncommon process," the source said. The source unveiled Farallon had actually been given chance to revise sale, purchase agreement (SPA), but contending that SPA tender on January 28 as final the American investment company refused it. "In their principles, revision is only after determination of the winner as it is integral with final bid document," he said. SPA is one among four weighing BCA bid winner criteria with 25 points. The biggest score falls to price criteria showing 50 points, consortium structure (20 points), and business plan (5 points). Weighing is based on final bid documents tendered on January 28. G. Raymond Zage, Director of Farallon subsidiary Mauritus Farindo Investments Ltd, declined to give confirmation. BANK CENTRAL: StanChart, Farallon Passed "Fit and Proper Test" ------------------------------------------------------------- Two consortiums of 51% PT Bank Central Asia (BCA) government- stock tender participants comprising Standard Chartered (StanChan) and Farallon Capital (Farallon) reportedly passed "fit and proper test" conducted by Central Bank while GKBI consortium was not examined and Bank Mega failed, AFX reports. GKBI consortium was not tested due to incomplete data handed over while Bank Mega was declared "failed." Bank Indonesia (BI) Governor Sjahril Sabirin submitted the outcome of the "fit and proper test" to IBRA Monday and the winner will be announced this week. Meanwhile, an unnamed source informed Stanchart's chance to win is much bigger than Farrallon. "Reportedly Megawati has agreed Stanchart is winner in the tender. Political atmosphere is very much perceived," said the source. SEMEN GRESIK: PCA Chairman Requests Privatization Annulment ----------------------------------------------------------- Chairman of People's Consultative Assembly (PCA) Amien Rais called on the government to annul the continuation of a planned 51 percent government stock privatization in PT Semen Gresik Tbk, Bisnis Indonesia reports. "If the government continues to sell Semen Gresik to Cemex, it would also mean selling the state itself, thereby State Minister of BUMN Laksamana Sukardi must be responsible for that," said Amien. He hoped meeting between People's Consultative Assembly and Semen Gresik Labor Union (SPSG) could exert pressure to the government to be more open. Should they still love the country, he said, they should pay more attention to long-term interest than the mere short-term. State Minister of State-Run Companies Empowerment (P-BUMN) Laksamana Sukardi wanted to meet with Amien so as to know reasoning behind the request. "Pak Amien could propose such [a thing], however the decision has been made final through [a] perceived prudent process," Laksamana said. ========= J A P A N ========= DAIEI INC: FSA Urges Banks to Add Y100B Bailout ----------------------------------------------- The Financial Services Agency (FSA) urged Daiei Inc's three major creditor banks, UFJ Bank, the key component of UFJ Holdings Inc, Sumitomo Mitsui Banking Corp and Fuji Bank, a member of Mizuho Holdings Inc, to provide Daiei an additional Y100 billion in financial assistance above what was stipulated in the initial bailout plan, Japan Today reported Monday. FSA said the original bailout plan is insufficient to rebuild Daiei. DAIEI INC: To Receive Y460B From Major Creditor Banks ----------------------------------------------------- According to Daiei Inc's final draft three-year restructuring program released Saturday, the Company will receive Y460 billion in financial assistance from three major creditor banks to promote its new restructuring plan, Japan Today reported Monday. The assistance is Y40 billion more compared to its initial plan. Daiei plans to reduce capital affecting common shares from 50% to 99%, and increase the closures of unprofitable outlets from the previously projected 50 to around 60. DAIKYO INC: Three Banks to Provide Y500B Assistance --------------------------------------------------- UFJ Bank, Dai-Ichi Kangyo Bank and Asahi Bank entered into informal talks with Japan's largest condominium builder Daikyo Inc to provide the latter with up to Y500 billion in financial assistance, Japan Today reported Monday, which cited industry sources. The banks' financial assistance package, reportedly, includes a debt-for-equity swap and debt forgiveness for Daikyo to reduce its group interest-bearing debts of over Y1 trillion. HITACHI LIMITED: Set for Y300B Loss ----------------------------------- Japan's largest electronics maker, Hitachi Limited, is likely to post a group net loss of more than Y300 billion in the year to March due to factors such as weakness in its semiconductor business, the Nihon Keizai Shimbun said Monday. Hitachi also was likely to see a group operating loss of nearly Y100B, the paper said, citing company sources. According to Reuters, Hitachi officials were not available for comments. JAPAN METALS: Files for Court Protection ---------------------------------------- Japan's top ferroalloy manufacturer, Japan Metals & Chemicals Co., filed for court protection Friday afternoon under the Corporate Rehabilitation Law with the Tokyo District Court. The Company, which has established close ties with Nippon Steel Corp., has an estimated Y141 billion in debt, the Japan Times reported Saturday. Listed on the first section of the Tokyo Stock Exchange, Japan Metals business, reportedly, was hit by the global slump in the information technology sector, which worsened by the plunge in ferroalloy prices on the international market and slack domestic demand, resulting in net liabilities in the 1999 calendar year. MATSUSHITA ELECTRIC: Loss Warnings ---------------------------------- Matsushita Electric Industrial, maker of Panasonic products, warned its losses in the year to March would be much worse than previously forecast but stood by its promise of a V-shaped rebound in the year ahead, Reuters reports. Matsushita said huge losses on mobile phones and components and a costly early retirement program would boost its consolidated net loss this business year to an estimated Y438 billion. In October it had forecast a Y265 billion net loss for 2001-02. NISSHO IWA: Merging Three Lumber Marketing Units in April --------------------------------------------------------- Nissho Iwai Corp will merge its three wholly owned lumber marketing subsidiaries operating in Osaka, Niigata and Nagoya in April, as part of the Company's effort to streamline domestic sales operations to better cope with slowing business amid declining housing starts, PRNewsAsia reported Sunday, which cited the Nihon Keizai Shimbun. The new entity, capitalized at Y490 million, with annual sales of Y25 billion targeted for fiscal 2005, will be headquartered in Osaka to handle nationwide marketing to home builders and lumber-processing firms. Nissho Iwai aims to reduce its employees by around 33% from the present 120 via voluntary retirements, while cutting its number of offices to five from 12. TOWA REAL: Major Creditor Banks Consider Y200B Bailout Plan ----------------------------------------------------------- Towa Real Estate Development Company's major creditor banks planned to discuss a bailout plan of up to Y200 billion, Japan Today reported Monday, which cited the Mainichi Shimbun. The bailout plan will focus on debt waiver and will include debt-for- equity swap. Towa plans to cut its consolidated Y521.2 billion interest-bearing debts by half. ========= K O R E A ========= DAEWOO ELECTRONICS: Creditors Receive Three Letters of Intent ------------------------------------------------------------- A Daewoo Electronics Co Ltd creditor official said the Company's creditors received three letters of intent from foreign firms to take over the Company. A creditors' steering committee meeting will be held Wednesday to discuss details of the sale of the company, PRNewsAsia reported Monday, which cited MoneyToday. DAEWOO GROUP: KDIC Considering Damage Suit ------------------------------------------ The Korea Deposit Insurance Corp. (KDIC) is beginning to consider a compensation suit against former top Daewoo officials next month, while it is wrapping up its year-long probe into the cause of Daewoo Group's bankruptcy, Korea Herald reported Monday. A KDIC official said, "A deliberation committee comprised of lawyers, scholars and financiers will be set up in mid March to review the outcome of the investigation and deliberate on whether to lodge a compensation lawsuit." The official said it would sue former Daewoo Chairman Kim Woo- choong and dozens of top managers for causing the conglomerate's bankruptcy. HYNIX SEMICONDUCTOR: Creditors Likely to Flare Up Over CBs ---------------------------------------------------------- Hynix Semiconductor Inc's creditors are expected to dispute the company's convertible bonds (CBs) that creditor banks received in return for granting a debt-for-equity swap of W3 trillion in October last year, Korea Herald reported Monday. An investment trust official, said, "The creditor banks are trying to set Hynix's future course without solving the CB issue. We will ask the creditor banks to convert the bonds into equity regardless of the negotiation results." He said 15 investment trust management companies exposed to Hynix agreed to call on the creditor banks to turn the CBs into equity at an early date, as banks will be at a disadvantage if Micron agrees to buy Hynix prior to the bonds being turned into equity. HYUNDAI ENGINEERING: Plans Additional Write-off of Iraqi Claims --------------------------------------------------------------- Hyundai Engineering and Construction said Sunday it is expected to post a net loss of around W800 billion for the fiscal year 2001 as it plans to write off more of its claims in Iraq. The Company is in talks with its external auditor the size of the claims to be written off in its financial statements for the fiscal year 2001, Korea Herald reported Monday. A Company official said they are planning to eliminate more of their accounts receivable with Iraq in line with the management's goal of making a new start this year after writing off unredeemable claims. "Last year, we had already written off 50 percent of our claims in Iraq. The planned additional write-off will amount to 5-10 percent of the remaining total. As a result, the net loss for the year will inevitably exceed the originally estimated 750 billion won." KOREA GAS: Labor Union Agrees to Restructuring Plan --------------------------------------------------- Korea Gas Corp's labor union, in a joint statement with the Commerce, Industry and Energy Ministry, said they have reached an agreement on the Company's restructuring and on other pending labor issues, PRNewsAsia reported Monday. Under the privatization plan, the government plans to split KGC's gas procurement operations into three separate units and sell two units to the private sector by the end of 2002. They also agreed to reflect the union's demands on the restructuring plans before finalizing details, which includes a timetable for the privatization program, but a KGC spokesman said the labor union has yet to vote on the agreement. KYONGNAM LEASING: Excluded From Debt Rescheduling Agreement ----------------------------------------------------------- Kyongnam Leasing Co's main creditor, Kookmin Bank, said Saturday the Company was excluded from a debt-rescheduling agreement with its creditors as the Military Mutual Aid Association will assume all the liabilities of the debt-ridden Company, Korea Herald reported Monday. Kookmin received the balance of the payment Friday from the association for transferring the leasing company's assets to the association. Kyongnam Leasing sought protection from its creditors after a late 1997 financial crisis by signing the debt-restructuring contract with the creditors. POHANG IRON: Daewoo Securities Ups Target Price to W200K -------------------------------------------------------- Daewoo Securities raised its target price for Pohang Iron & Steel Co Ltd to W200,000 from W160,000, anticipating possible sharp increases in product prices, while also believing that any prospective US imports restrictions will not be as tough as expected, PRNewsAsia reported Monday. Industry analyst, Y.J. Ko, said, "Rises in international steel prices are likely to gain momentum in the second quarter." He added, "POSCO is also expected to bring forward the increase in domestic and overseas steel prices by one quarter to the second quarter." US is likely to cut its tariff rate to about 20 percent from the 40 percent asked for by US steel makers, which should positively affect POSCO's share price, Ko said. =============== M A L A Y S I A =============== ASSOCIATED KAOLIN: Obtains MITI's Nod on Proposals -------------------------------------------------- Associated Kaolin Industries Berhad (Special Administrators Appointed) (AKI or the Company), in reference to the announcements made on 26 September 2001, 2 October 2001, 3 October 2001 and 29 January 2002 regarding the Proposals, announced that the Ministry of International Trade and Industry (MITI) had vide its letter dated 20 February 2002 stated that MITI has no objection for AKI to undertake the Proposals subject to these conditions: (i) the approval of the Securities Commission (SC) being obtained; (ii) the approval of the Foreign Investment Committee ("FIC") being obtained; (iii) The SBI involving the issue of up to 25,000,000 new GHB Shares are treated as SBI Shares of which the allocation of the same will be determined separately by MITI after the SC's approval on the Proposals has been obtained; and (iv) GHB is required to inform the MITI on the actual equity structure upon the implementation of the Proposals. The FIC had, vide its letter dated 21 January 2002, stated that the FIC has no objection for AKI to undertake the Proposals. The approval from the Securities Commission for the Proposals is still pending. The Proposals refers to the following: i Proposed Capital Reduction; ii Proposed Termination of Aki's Outstanding Warrants 1996/2005; iii Proposed Share Exchange of 5,465,023 Ordinary Shares of Rm1.00 Each In AKI (Aki Shares) on the Basis of One (1) Ordinary Share of Rm1.00 Each in Greatpac Holdings Berhad (GHB) (GHB Shares) for Every One (1) AKI Share (Proposed Share Exchange); iv Proposed Rights Issue of up to 16,395,070 New GHB Shares on the Basis of Three (3) New GHB Shares for Every One (1) Existing GHB Share Held After the Proposed Share Exchange at an Issue Price of Rm1.00 per GHB Share (Proposed Rights Issue); v Proposed Special Bumiputera Issue (SBI) of 25,000,000 New GHB Shares to Bumiputera Investors at an Issue Price of Rm1.00 per Ordinary Share (SBI Shares) (Proposed SBI); vi Proposed Acquisition of the Entire Equity Interest in Greatpac Sdn Bhd (GPSB) By GHB for a Total Consideration of Rm72,000,000 to be Satisfied by the Issuance of 72,000,000 New GHB Shares at an Issue Price of Rm1.00 per GHB Share (Proposed GPSB Acquisition); vii Proposed Acquisition of the Entire Equity Interest in Success Profile Sdn Bhd Success (Profile) by GHB For a Total Consideration of Rm17,727,272 to be Satisfied by the Issuance of 17,727,272 New GHB Shares at an Issue Price of Rm1.00 per GHB Share (Proposed Success Profile Acquisition); viii Proposed Debt Restructuring of AKI; ix Proposed Waiver From Undertaking a Mandatory General Offer (Proposed Waiver); and x Proposed Transfer of Listing Status of AKI to GHB (Proposed Transfer Listing). BESCORP INDUSTRIES: Provides Defaulted Payment Status Update ------------------------------------------------------------ Bescorp Industries Berhad (Special Administrators Appointed) (BIB or the Company), as required by the Kuala Lumpur Stock Exchange Practice Note 1/2001, provided an update on its default in payment, as enclosed in http://www.bankrupt.com/misc/TCRAP_Bescorp0225.xls The default by BIB as at 31 January 2002 amounted to RM57,824,964.96 made up of a principal sum of RM35,750,000 plus RM22,074,964.96 in interest for revolving credit facilities. As at 31 January 2002, the remaining subsidiary companies of BIB, namely Bescorp Construction Sdn. Bhd. (In Liquidation), Bescorp Piling Sdn. Bhd. (In Liquidation), Bescorp Concrete Sdn. Bhd. (In Liquidation), Bespile Sdn. Bhd. (In Liquidation) and Waktu Cerah Sdn. Bhd., defaulted on a total sum of RM86,359,621.25 made up of a principal sum of RM57,324,000 plus RM29,035,621.25 in interest for revolving credit facilities, term loan and banker's acceptance, and RM58,514,853.94 for overdraft facilities. There are no further developments since our previous announcement with regard to the Practice Note. CRIMSON LAND: Faces Writ of Summons Over Defaulted Payment ---------------------------------------------------------- Crimson Land Berhad (the Company) announced that on 19th February 2002, it was served with a Writ of Summons, Seremban High Court Writ Of Summons No. 22-18-2002, and Statement of Claim both dated 23rd January 2002 as the only Defendant therein. A subsidiary of the Company, Crimson Properties Sdn Bhd was served with another Writ of Summons, Seremban High Court Writ Of Summons No. 22-17-2002, and Statement of Claim both dated 23rd January 2002 as the only Defendant therein. Malaysian Building Society Berhad (MBSB) brings about both actions The action against Crimson Properties Sdn Bhd is for an amount of RM36,618,115.96 as at 23rd January 2002 plus interests and costs pursuant to a default in the repayment of a term loan of RM30,000,000.00 granted by MBSB to Crimson Properties Sdn Bhd. As at 23rd January 2002, the amount of RM36,618,115.96 comprises the principal sum of RM30,000,000.00, interests and costs. The action against the Company is for an amount of RM36,618,115.96 as at 23rd January 2002 plus interests, costs and any further or other relief as the High Court deems fit pursuant to a corporate guarantee provided by the Company to MBSB as a security to the term loan provided to Crimson Properties Sdn Bhd. The sum of RM36,618,115.96 claimed by MBSB represents 21.89% of the Group's net tangible assets as at year ended 30th June 2001. Both the Company and Crimson Properties Sdn Bhd are required to enter appearance within 12 days of the service of the Writ of Summons. Both suits have been referred to the Company's solicitors with instructions to enter appearance on behalf of the Company and Crimson Properties Sdn Bhd. CSM CORPORATION: Files Suits Against Former Directors ----------------------------------------------------- The Board of Directors of CSM Corporation Berhad (CSM or the Company) announced that the Company has now instituted legal proceedings principally against the former directors of the Company for the relevant period for breach of fiduciary duty, breach of trust, breach of statutory duties and for failing to exercise due care and skill in the performance of their duties. The amount which the Company seeks to recover in respect of these two legal proceedings, namely, Kuala Lumpur High Court Originating Summons No. D3-24-282-2001 and Kuala Lumpur High Court Originating Summons No. D5-24-8-2002, total RM417,085,016.00. Since May 2000, the new management of CSM has been reviewing the past transactions entered into by the Company. The review has taken considerable time and effort due to the complexity of some of these transactions (from 1998 to 1999) involving several companies within the Group. The review prompted the write-down of assets value in the year 2000 audited accounts of the Company. CSM CORPORATION: Updates Defaulted Payment Status ------------------------------------------------- CSM Corporation Berhad (CSM), pursuant to the KLSE Practice Note No. 1/2001, provided an update on the status of default in interest payments and principal loan repayments of the CSM Group bank borrowings as at 31 January 2002 set at http://www.bankrupt.com/misc/TCRAP_CSM0225.doc The loan facility with Alliance Bank Malaysia Berhad will be repaid via the proceeds to be received from the proposed asset disposal, which was announced on 15 January 2002. The proposed asset disposal is currently pending approvals from the relevant authorities and shareholders. The other defaults shall be addressed in conjunction with the Group's efforts to regularize its financial conditions, as required under the Practice Note No. 4/2001 requirements. KELANAMAS INDUSTRIES: Changes Office Address -------------------------------------------- Kelanamas Industries Berhad posted this change of address notice: Change description: Correspondence Old address : 9th Floor Plaza Kelanamas, 19 Lorong Dungun, Damansara Height , 50490 Kuala Lumpur. New address : Suite 165 - 5 -10 Wisma Mutiara No 165 Jalan Sungai Besi 57100 Kuala Lumpur. Name of Registrar : Telephone no : 03 - 92221532 Facsimile no : 03 - 92221536 E-mail address : kelmas@tm.net.my Effective date : 22/02/2002 Remark : change office address and telephone number TCR-AP reported last week that the Board of Directors is currently in the midst of fine-tuning the terms and conditions of the agreements pertaining to the Proposed Scheme, while awaiting the completion of the statutory audit of the financial statements of the companies involved. The Requisite Announcement will be made to KLSE upon signing of the said agreements. MECHMAR CORPORATION: Winding Up Petition Hearing Adjourned ---------------------------------------------------------- Mechmar Corporation (Malaysia) Berhad informed that the hearing to strike off the winding up petition by Bonus Point Investment Ltd has been postponed to 4 April 2002. Late January, TCR-AP reported that Mr Lim Tian Huat and Mr Duar Tuan Kiat of Arthur Andersen & Co, Level 23A, Menara Milenium, Jalan Damanlela, Pusat Bandar, Damansara Heights 50490 Kuala Lumpur have ceased to act as Receivers and Managers of HandiMart (USJ) Sdn Bhd (HUSB), 100 percent owned by the Company, on 11 January 2002 under the powers contained in the debenture dated 8 June 2000 following agreement with Affin Bank Berhad on settlement terms. Wrights Investors' Service reports that at the end of 2000, the Company had negative working capital, as current liabilities were Rm410.53 million while total current assets were only RM192.22 million. This company has paid no dividends during the last 12 months. It has also reported losses during the previous 12 months. PAN MALAYSIAN: Soo Lay Buys Shares During Closed Period ------------------------------------------------------- Pan Malaysian Industries Berhad (PMIB), further to its announcement of 24 January 2002 on the trading in shares of PMIB during closed period, informed that, pursuant to paragraph 14.08(c) of the Listing Requirements of Kuala Lumpur Stock Exchange, Soo Lay Holdings Sdn Bhd (Soo Lay) had informed PMIB that Soo Lay had purchased the ordinary shares of PMIB as: 1) Date of dealing - 22 February 2002 2) Consideration of dealing - Average price of RM0.2550 per share 3) Number of shares acquired - 668,000 ordinary shares of RM0.50 each 4) Percentage of issued share capital of PMIB - 0.034% PILECON ENGINEERING: Securities Trading Suspended ------------------------------------------------- Pilecon Engineering Berhad advised that trading in the Company's securities was suspended with effect from 9:00 a.m., Friday, 22 February, 2002 until further notice. TCR-AP reported on Friday that a winding-up petition was presented at the Shah Alam High Court on 27 December, 2001, against Pilecon Building Construction Sdn Bhd (PBCSB) and at the Kuala Lumpur High Court on 31 December 2001 against Tegas Sejati Sdn Bhd (TSSB), and served onto PBCSB on 21st day of February 2002 and TSSB on 31st day of January 2002, for a claim of RM350,618.98 and RM279,000.00, respectively. TDM BERHAD: Unit Releases Winding Up Petition Additional Info ------------------------------------------------------------- TDM Berhad (TDM), in response to the queries from the KLSE dated 22 February 2002 on the winding-up petition on TDM Properties Bbhd (TDMP), a wholly owned subsidiary of TDM, provided additional information: 1) The plaintiff's claim is based on a alleged oral contract. Default judgment arose owing to an administrative failure by the subsidiary to bring to TDM's attention the service of the writ. Thereafter, lawyers of TDM were instructed to examine the validity of the claim and investigations have and are continuing to be conducted but the petition was presented nevertheless. 2) TDM do not expect any impact of the winding-up proceedings on TDM group, financially and operationally due to TDMP having been dormant for the last two years and considering that the amount involved was only RM247,918.50. 3) There will not be any winding-up proceedings as the subsidiary has under protest satisfied the claim and as such, does not expect any losses. Also, TDM have received an undertaking letter from the plaintiff's lawyer that they will file a notice of discontinuance latest by Tuesday, 26 February 2002 without liberty to file afresh. 4) The total cost of investment by TDM in TDMP is RM500,000. UMW INDUSTRIES: Undergoes Voluntary Liquidation ----------------------------------------------- UMW Industries Pte Ltd announced that its wholly-owned subsidiary incorporated in Singapore, i.e., UMW Industries Pte Ltd (UMW Industries), which is presently dormant, is being placed under members' voluntary liquidation in order to save costs in maintaining the company further. UMW Industries has appointed Messrs Goh Thien Phong, Chan Ket Teck and Timothy James Reid of Messrs PricewaterhouseCoopers as Liquidators, for purposes of the above liquidation. Other than the liquidation expenses, there are no losses or effects on the net tangible assets and earnings per share of the Group arising from the liquidation. The Group's operations in Singapore are undertaken by UMW Equipment & Engineering Pte Ltd. ===================== P H I L I P P I N E S ===================== NATIONAL POWER: Guarantees Cause Rise In Government Debt -------------------------------------------------------- Guarantees issued to National Power Corporation (Napocor) caused the national government's outstanding contingent liabilities to rise to PhP493.355 billion as of end November 2001, up from PhP491.284 billion, Manila Bulletin reported Monday. Other government financial institutions (GFIs) such as the Development Bank of the Philippines, Land Bank of the Philippines and other government-owned and controlled corporations (GOCCs) account for some of the guarantees. The paper's source said, "The bulk of the contingent debt is Napocor's, which includes the P200 billion that the national government had agreed to answer under its privatization program." NATIONAL STEEL: Liquidator Asks For Proposal Extension ------------------------------------------------------ National Steel Corp. (NSC)'s government-appointed liquidator, Danilo Concepcion, asked the Securities and Exchange Commission (SEC) for two months more to get creditors approval of the new proposal before the new terms will be presented to the Malaysian government, Philippine Star reported Monday. Mr. Concepcion said more time is needed for the banks to study the proposal and their respective Boards to approve it. NSC's creditors are now in the process of evaluating a proposal that will be presented to Pengurusan Danaharta Nasional Bhd of Malaysia, holder of shares formerly owned by the Malaysian company Hottick Holdings Inc. NSC was forced to come up with a new proposal after Danaharta rejected the original proposal, which involved the creation of a special purpose company where NSC's creditors would hold a controlling 80 percent stake and Danaharta to hold the remaining 20 percent. =============== T H A I L A N D =============== CENTURY COUNTRY: Files Business Reorganization Petition ------------------------------------------------------- Real estate developer The Century Country Club Company Limited (DEBTOR)'s Petition for Business Reorganization was filed in the Central Bankruptcy Court: Black Case Number 665/2544 Red Case Number 638/2544 Petitioner: THE CENTURY COUNTRY CLUB COMPANY LIMITED BY MR. YUTTAPONG INTRARAPANIT, THE AUTHORIZED PERSON Planner: ASIAN CAPITAL AND CONSULTANT COMPANY LIMITED Debts Owed to the Petitioning Creditor: Bt1,637,601,482.48 Date of Court Acceptance of the Petition: July 18, 2001 Date of Examining the Petition: August 14, 2001 at 9.00 AM; the objection may be filed with the Central Bankruptcy Court not less than three days prior to the trial date Court Order for Business Reorganization and Appointment of Planner: August 14, 2001 Announcement of Court Order for Business Reorganization and Appointment of the Planner in Matichon Public Company Limited and Siam Rath Company Limited: August 22, 2001 Announcement of Court Order for Business Reorganization and Appointment of the Planner in Government Gazette: September 11, 2001 Deadline for the Planner to submit the Reorganization Plan to the Official Receiver: December 11, 2001 Planner postponed the Date to submit the Business Reorganization Plan to Official Receiver #1st: January 11, 2002 Planner postponed the Date to submit the Business Reorganization Plan to Official Receiver #2nd: February 11, 2002 Contact: Mr. Tanawat Tel, 6792525 ext. 123 DATAMAT PUBLIC: Posts ESM No. 1/2545 Resolutions ------------------------------------------------ Datamat Public Company Limited posted the resolutions of the Extraordinary Shareholders' Meeting (ESM) No. 1/2545, as: 1. Approval was given to remove all the directors from their posts and to elect the new Board of Directors: 1. Mr. Manoo Ordeedolchest 2. Mr. Kusol Sangkananta 3. Mr. Philip Newson 4. Mr. Stephane Colette Alfred de Baets 5. Mr. Miguel Angel Aerni 6. Mr. Thavisak Na Takuathung 7. Mr. Prasert Thiranakanat 8. Mr. Pisit Jirapinyo 9. Mr. Wiwat Avasiriphongs 10. Miss. Sukanya Prachuabmoh 2. Approval was given for the following signing authority on behalf of the Company. Any two of the following three directors jointly affixing their names together with the Company seal: Mr. Manoo Ordeedolchest; Mr. Kusol Sangkananta; and Mr. Stephane Colette Alfred de Baets. 3. Approval was given reducing the Company's registered capital from Bt6,350,000,000 to Bt6,212,851,980 by removing the shares, which have not been purchased or have not yet been issued, namely 13,714,802 ordinary shares with a par value of Bt10 each. 4. Approval was given to an amendment to Clause 4 of the Memorandum of Association regarding the registered capital so as to conform to the reduction of capital. 5. Approval was given reducing the amount of the Company's registered capital from Bt6,212,851,980 to Bt621,285,198 to Bt1. 6. Approval was given to an amendment to Clause 4 of the Memorandum of Association regarding the registered capital so as to conform to the change of par value of each ordinary share. 7. Approval was given increasing the Company's registered capital from Bt621,285,198 to Bt1,000,000,000 by an issuance of 378,714,802 ordinary shares with a par value of Bt1 each to be allocated for offering for sale to specific investors and/or to 17 types of institutional investors in accordance with the relevant Notifications of the Securities and Exchange Commission. The Board of Directors shall have the power to determine and change the details and conditions in relation to the offer for sale of shares, for example, the amount offered, the offering price, and period. 8. Approval was given to an amendment to Clause 4 of the Memorandum of Association regarding the registered capital so as to conform to the increase of capital. THAI TELEPHONE: SET Grants Listed Securities -------------------------------------------- Starting from February 25, 2002, the Stock Exchange of Thailand (SET) allowed the securities of Thai Telephone & Telecommunication Public Company Limited (TT&T) to be traded on the SET after finishing capital increase procedures. Name : TT&T Issued and Paid up Capital Old : Bt28,123,269,090 New : Bt28,123,272,090 Allocate to : 300 warrants exercise to 300 common shares Ratio : 1 : 1 Price Per Share : Bt4.85 Exercise/Payment Date : January 31, 2002 Wrights Investors' Service reported that at the end of 2000, Thai Telephone & Telecommunication Public had negative working capital, as current liabilities were Bt45.32 billion while total current assets were only Bt7.58 billion. The Company has paid no dividends during the last 12 months. It has also reported losses during the previous 12 months. The Company has not paid any dividends during the previous 6 fiscal years. THAI WAH: Explains 2000, 2001 Loss Variance ------------------------------------------- Thai Wah Public Company Limited offered an explanation for the decrease in loss of Bt1,466 million for the year ended December 31, 2001, as compared to the same period of 2000. 1. Decrease in foreign exchange losses amounting to Bt666 million, resulting from US loan translation amounting to Bt149 million in 2001 whilst in the same period in 2000 the loss is Bt816 million. 2. Decrease in interest expenses of Bt461 million is due to decrease in interest rate. Interest rate for 2001 is at the rate as agreed in the debt restructuring plan, which is lower than interest rate for 2000, which was charged at default rate. 3. Decrease in loss on revaluation and impairment of assets amounting to Bt545 million is due to the result of revaluation and impairment of assets in 2000 in full amount. 4. Decrease in loss attributable to minority interest amounting to Bt107 million is due mainly to decrease in loss of a subsidiary of which resulted from decreasing in loss on revaluation and impairment of assets as stated in item 3. UNITED COMMUNICATION: TRIS Rates Bt2,282M Sr Debentures "BBB-" -------------------------------------------------------------- Thai Rating and Information Services Co., Ltd. (TRIS) announced that it has upgraded the company rating of United Communication Industry PLC (UCOM) and the rating of UCOM's Bt2,282 million senior debentures to "BBB-" from "BB+". The upgrades are a consequence of the recent strong operating performances in all of the company's core businesses, which brought notably improved financial performances, and are expected to be stable in the foreseeable future. The ratings also acknowledge the benefits from partnering with Telenor Asia Pte Ltd. (Telenor), a subsidiary of Norway's leading telecommunications operator. However, a factor that constrains the ratings is UCOM's high debt burden and refinancing risk for its approximately Bt7,830 million restructured loan. Uncertainty in the telecommunication regulatory environment affects all players in the telecommunication industry and has a minor negative impact on UCOM's rating. TRIS reported that after joining a partnership with Telenor in 2000 and relinquishing control of its former flagship subsidiary, Total Access Communication PLC (TAC), UCOM has re-grouped its operation and focused intensively on its core businesses, which entail providing network solutions, online services, and wireless equipment. UCOM had a dramatic improvement in operating results for the nine months ending 30 September 2001. UCOM's revenue for the first nine months of 2001, amounting to Bt12,887 million, exceeded the full year results of 2000, and more than doubled revenues for the first nine months of 2000. The robust growth was led by a sharp increase in revenues from network installation services for public and private customers. Its project backlog as of 30 September 2001 stood impressively at Bt6,266 million, mostly coming from credible customers such the Telephone Organization of Thailand (TOT) and the Communications Authority of Thailand (CAT). High spending for network installation projects is anticipated as operators resume building telecommunication infrastructure to stay competitive. The exceptional growth of mobile phone services also benefited the company's sales of the handsets, although margins on handsets shrunk as prices were cut to spur growth. UCOM's online business also experienced decent growth stemming from the up trend in demand for high-speed data communications. UCOM is also receiving continuous support from its partner, Telenor, in business strategies and technical supports, and most visibly in the data communication business, which could become the company's next flagship business. TRIS said UCOM's 2001 financial performances improved markedly when its profitability and cash flow protection for the period ended 30 September 2001 rebounded from a low base in both 1999 and 2000. The operating margin (before depreciation and amortization) came in at 13.04% at the end of the third quarter of 2001, a lift from an average of 5.97% in 1999 and 2000. Likewise, the annualized pretax return on permanent capital rose from a negative figure in 2000 to 18.16% due partly to the gain recognition from TAC; without this effect the ratio stood at 11.27% at the end of third-quarter 2001. UCOM's cash flow protection improved with its EBITDA interest coverage rebounding from 0.03 times in 2000 to 4.45 times at the end of third-quarter 2001; however, annualized funds-from-operation (FFO) still covered only 13.90% of the company's total debt at 30 September 2001. Meanwhile, UCOM's leverage remained relatively high with total debt at 59.21% of capitalization at the end of third-quarter 2001, though it improved from 65.63% in 2000. However, this ratio should improve to 55% after UCOM made another Bt1,171 million debt prepayment in December 2001. The ratio has been brought down from an unacceptably high 83.03% in 1999 after Telenor's arrival in mid-2000. Though UCOM is debt repayment free until December 2003, when a bullet repayment comes due, the company has a high refinancing risk. Around 83% of UCOM's debt is in US dollars and yen, and with about half of its position uncovered, this exposes the company to foreign currency risk. The company is reviewing various refinancing plans that could be in place by the first half of 2002. United Communication Industry PLC (UCOM) Company Rating: Upgraded to BBB- from BB+ Issue Rating : UCOM#1: Bt2,282 million senior debentures due 2003 Upgraded to BBB- from BB+ 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. 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