/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/020419.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 Friday, April 19, 2002, Vol. 5, No. 77 Headlines A U S T R A L I A ANSETT AUSTRALIA: Court Allows Administrators to Sell Assets ANSETT AUSTRALIA: Qantas May Bid for Sydney Terminal ANSETT AUSTRALIA: Terminals Draw Bids From Virgin C H I N A & H O N G K O N G ARTHUR ANDERSEN: Will Merge With PwC in July ASIA GLOBAL: ST Telemedia Mulls Joint Bid With Hutchison CHUEN HING: Hearing of Winding Up Petition Set FESCA DEVELOPMENT: Court Sets June Winding Up Hearing SHENYANG BRILLANCE: Bad Debts Drive Truck Producer Into Red TAKERUN.COM: Winding Up Hearing Slated for May TOP CITY: Faces Winding Up Petition I N D O N E S I A ARTHUR ANDERSEN: Fails to Reach Merger Deal With Rival E&Y ASTRA INTERNATIONAL: March Car Sales Up by 955 Units TIMAH TBK: Pertamina Pension May Buy Timah Stake in Asuransi J A P A N DAI-ICHI KATEI: Collapse May Put Asahi Bank Into the Red MARUBENI CORP.: Unit Ordered to Probe Mislabeling Scandal MATSUSHITA ELECTRIC: Cutting Chinese Plants to Boost Efficiency MISAWA HOMES: S&P Cuts Rating to SDpi MITSUBISHI HEAVY: Plans to Boost European Turbo Charger Output MIZUHO HOLDINGS: Nikkeiren Blames Execs for Computer Fiasco NIPPON TELEGRAPH: MSC Unit Partners With IBM for IDC NIPPON TELEGRAPH: Replaces Losing Units' Presidents NIPPON TELEGRAPH: Will Cut Capital Spending by $3.1B SNOW BRAND: Asked to Hire Outside Food Safety Exec SOFTBANK CORP.: Chief Faces Blow From Close Aide K O R E A DAEWOO MOTOR: Union Approves Collective Bargaining Accord HANVIT BANK: Cuts Mortgage Loan Ceiling to 80% of Value HYUNDAI MOTOR: Breaks Ground for Alabama Plant KOOKMIN BANK: Combining Branches and Computer Systems SEOUL BANK: Plans to Raise $100M in Loans M A L A Y S I A AIR ASIA: Flies Back Into the Black BERJAYA GROUP: Roadhouse Grill Files for Bankruptcy Protection DEWINA BERHAD: Reveals Financial Report Deviation HAI MING: SC Approves Restructuring Exercise MALTON BERHAD: Will Resume Trading on April 22 MTD CAPITAL: Disposes MTD Prime REPCO HOLDINGS: Workout Proposal Approved UMW HOLDINGS: Philippine Subsidiary Initiates Winding Up Action P H I L I P P I N E S NATIONAL POWER: Reviews 12 IPP Deals NATIONAL BANK: Government to Drop Stake After Rehab NATIONAL STEEL: Creditors Set to Resume Talks With Owner PHILIPPINE LONG: Drops Plan to Sell Smart S I N G A P O R E KEPPEL TELECOM: Back in the Black With S$2.7M Profit T H A I L A N D EMC PUBLIC: Court Allows Share Transfer ITALIAN-THAI: Summarizes Business Reorganization Plan SINO-THAI: Inks Three Contracts Worth Bt416M SINO-THAI: Phornprapha Steps Down as Director THAI HEAT: Issues Registered Capital Changes - - - - - - - - ================= A U S T R A L I A ================= ANSETT AUSTRALIA: Court Allows Administrators to Sell Assets ------------------------------------------------------------ Justice Alan Goldberg of the Federal Court has given Ansett administrators a reprieve to continue the process of selling of the Company's assets, including domestic airport terminals, ABC News reports. The Court allowed administrators a seven-day extension to sign a deed of company arrangement. Administrator Mark Korda said the Court's orders would allow sale negotiations involving airport terminals to continue. ANSETT AUSTRALIA: Qantas May Bid for Sydney Terminal ---------------------------------------------------- Qantas Airways Ltd may bid for the Ansett terminal at Sydney airport, the Australian Financial Review reported, citing Qantas chief financial officer Peter Gregg. According to the report, Qantas is also interested in a range of other Ansett assets, although it may face opposition from the Australian Competition and Consumer Commission if it were to control both domestic terminals in Sydney. ANSETT AUSTRALIA: Terminals Draw Bids From Virgin ------------------------------------------------- Virgin Blue chairman Sir Richard Branson said that his Company would buy four Ansett terminals in eastern Australia as part of his expansion plan, the ABC News reports. Sir Richard says he is unable to say which terminals Virgin is eyeing off. "Over the next two or three weeks we'll be absolutely clear on which ones we own or which ones we lease." Virgin excluded the Sydney terminal from its bid pending the outcome of a legal dispute between Ansett's administrators and Sydney Airport Corporation Ltd. ================================ C H I N A & H O N G K O N G ================================ ARTHUR ANDERSEN: Will Merge With PwC in July -------------------------------------------- Andersen and PricewaterhouseCoopers will combine their practices in Hong Kong and China, including Beijing, Chongqing, Dalian, Guangzhou, Shanghai, Shenzhen, Tianjin and Xian, on July 1, 2002 under the name of PricewaterhousCoopers. According to a report from Quamnet News Service, the merged firm will have its staff increased to about 6,000 (3,000 each in Hong Kong and China), including 230 partners. Silas Yang, chairman and senior partner of Hong Kong's PricewaterhouseCoopers, will be appointed as the chairman and senior partner of the combined firm. Andersen affiliates around the world have been seeking a merger with other major accounting firms as the fate of Andersen's headquarters in Washington is now unclear since its involvement in the collapse of energy giant Enron Corp. Andersen affiliates in Singapore, New Zealand and Australia have signed deals to merge their operations with Ernst & Young. The Thai units of Andersen Worldwide and KPMG International have reached a preliminary agreement to merge their operations in the country. ASIA GLOBAL: ST Telemedia Mulls Joint Bid With Hutchison -------------------------------------------------------- Singapore's ST Telemedia has held talks with Hong Kong's Hutchison Whampoa over a possible joint bid for Asia Global Crossing, the Hong Kong-based high-speed undersea cable network operator. It told Channel NewsAsia Hutchison would be its "natural" partner should it push ahead. Both ST Telemedia and Hutchison are already making a joint US$750 million offer for bankrupt Global Crossing of the US, which owns 59 percent of its Asian arm. Earlier this week, Asia Global Crossing sought a month's delay on the payment of interest to the holders of its US$408 million bonds. The company plans to use the 30-day grace period to discuss a comprehensive plan with key bondholders on restructuring its high yield debt. Asia Global Crossing previously disclosed debts of US$1.1 billion, of which 750 million was non-recourse. The Company had US$351 million cash at the end of the first quarter. CHUEN HING: Hearing of Winding Up Petition Set ---------------------------------------------- The petition to wind up Chuen Hing Construction Company Limited is set for hearing before the High Court of Hong Kong on April 24, 2002 at 9:30 am. Cemac (Hong Kong) Limited, whose registered office is at Room 930, Ocean Centre, Harbour City, Tsimshatsui, Kowloon, Hong Kong, filed the petition with the court on January 24, 2002. FESCA DEVELOPMENT: Court Sets June Winding Up Hearing ----------------------------------------------------- Fesca Development Limited is facing a winding up petition that will be heard before the High Court of Hong Kong on June 26, 2002 at 9:30 am. Bank of China (Hong Kong) Limited of 14th Floor, Bank of China Tower, 1 Garden Road, Central, Hong Kong filed the petition on March 07, 2002. SHENYANG BRILLANCE: Bad Debts Drive Truck Producer Into Red ----------------------------------------------------------- Shenyang Brilliance Automotive, China's biggest maker of light trucks, said yesterday it would report a loss for 2001 greater than its earlier forecast of a drop in profit, because of a larger provision for bad debt. Shenyang Brilliance, which reports its earnings on Thursday, did not give a figure in its press statement. The Company said in February this year it expected 2001 profit half that of the previous year's net income of 249.9M yuan, blaming the drop on a loss at its General Motors venture and falling sales of light trucks. Shenyang Brilliance owns 50% of Jinbei General Motors Automotive, which makes pick-up trucks and Blazer sports-utility vehicles in the northeastern city of Shenyang. The auto manufacturer said in January that it planned to sell half of its stake in the General Motors venture to raise cash. TAKERUN.COM: Winding Up Hearing Slated for May ---------------------------------------------- The petition to wind up Takerun.com Limited is set for hearing before the High Court of Hong Kong on May 08, 2002 at 9:30 am. by iLink.net Limited of 56th Floor, The Centre, 99 Queen's Road Central, Hong Kong, filed the petition with the Hong Kong court on February 04, 2002. TOP CITY: Faces Winding Up Petition ----------------------------------- Bank of China (Hong Kong) Limited is seeking for the winding up of Top City Holdings Limited. The petition was filed at the High Court of Hong Kong court on March 06, 2002, and is set for hearing on June 26, 2002 at 9:30 am. Bank of China holds its office at 14th Floor, Bank of China Tower, 1 Garden Road, Central, Hong Kong. ================= I N D O N E S I A ================= ARTHUR ANDERSEN: Fails to Reach Merger Deal With Rival E&Y ---------------------------------------------------------- The Indonesian unit of global accounting firm Arthur Andersen has failed to come up with a merger deal with rival Ernst & Young, the Jakarta Post reported. According to Ernst & Young senior official, John B. Arnold, the merger talks were terminated on Tuesday, saying only that a merger would not be mutually beneficial for both companies. Officials of Arthur Andersen Indonesian unit Prasetio, Utomo & Co., reported earlier to be in merger talks with Ernst & Young, could not be reached for comment. Arnold, however, said that there was still a possibility that merger talks with Prasetio, Utomo & Co. would be reopened next year. ASTRA INTERNATIONAL: March Car Sales Up by 955 Units ---------------------------------------------------- PT Astra International's car sales increased to 15,942 units in March from 14,987 in the previous month, AFX Asia reported Wednesday. According to the monthly report of Indonesian Automotive Industries Association (Gaikindo), industry-wide exports of Astra totaled 3,800, against 3,696 the previous month. The company also sold 107,031 motorcyles during the month compared to 93,977 in February. With debts worth US$133 million and Rp164 billion due in December, Astra desires to sell its non-core assets. In February, it has agreed to sell its 35 percent share in a telecommunications operator being acquired PT Telekomunikasi Indonesia. The company has sold in March 310 million shares in Bank Universal for Rp7.750 billion (US$775,000). TIMAH TBK: Pertamina Pension May Buy Timah Stake in Asuransi ------------------------------------------------------------ The Pertamina Pension Fund has written a letter to state-owned Timah Tbk expressing its interest in buying the company's 20 percent stake in PT Asuransi Tugu Mandiri. Timah corporate secretary Prasetyo Budi Saksono told AFX Asia that Pertamina has offered a price, but no agreement has been reached yet. "We expect a better price, although we understand it will be difficult... the company itself (Asuransi) is not in good condition." Timah plans to raise Rp50 billion through the sale of shares in four units including Asuransi and Kutaraja, as well as a 25 percent stake in PT Koba Tin and a 37.5 percent stake in Singapore's Plimsoll Corp Pty Ltd, to stay afloat. Timah is restructuring its operations and corporate structure after recording a sharp fall in its net profit last year to Rp36.8 billion from 331.5 billion previously due to a steep drop in tin prices and sharply higher production costs amid rampant illegal mining. ========= J A P A N ========= DAI-ICHI KATEI: Collapse May Put Asahi Bank Into the Red -------------------------------------------------------- The collapse of midsize home appliance retailer Dai-Ichi Katei Denki and its affiliate Dai-Ichi Credit may result in Daiwa Holdings' subsidiary Asahi Bank to post a loss of 2.6 billion yen, AFX Asia reports. Dai-Ichi Katei Denki and Dai-Ichi Credit filed for bankruptcy protection with the Tokyo District Court on Wednesday. Daiwa Holdings said in a statement that a total of 2.2 billion yen in loans to Dai-Ichi Katei Denki and another 400 million yen in exposure to Dai-Ichi Credit may become unrecoverable or may see delays in loan recovery. Daiwa Holdings said the potential loss would not affect its earnings forecast for the year to March because loan loss provisioning covers most of the loan exposure. MARUBENI CORP.: Unit Ordered to Probe Mislabeling Scandal --------------------------------------------------------- The farm ministry has ordered Marubeni Chikusan Corp., the meat- processing unit of trading house Marubeni Corp., on Wednesday to launch a full investigation into the mislabeling scandal involving its chicken products. At least eight of the 10 nationwide branches of Marubeni Chikusan Corp. mislabeled packages of chicken meat, the Asahi Shimbun reports, citing unnamed sources. On March 15, the company said its Sendai office had passed off chicken imported from Brazil as higher-priced domestic chicken between 1999 and 2001, falsely labeling 5 to 8 tons a year during the period. The company may have incorrectly labeled more than 1,000 tons of poultry over the past few years, while the start of the practice can be traced back to the mid-1970s, according to the report. Earlier this month, Standard & Poor's downgraded the short-term rating of Marubeni to C from B based on concerns that the trading company will face higher borrowing costs and fewer funding options following a huge loss in fiscal 2001, owing to its highly leveraged balance sheet. MATSUSHITA ELECTRIC: Cutting Chinese Plants to Boost Efficiency --------------------------------------------------------------- Matsushita Electric Industrial Co., the Osaka-based maker of Panasonic and National brand electronics, will close about half of its 41 factories in China to improve efficiency, the Mainichi newspaper reported, without citing anyone. Many of the factories are small and make only one item, such as refrigerators, the report said. The move comes as Minolta Co. and other Japanese electronics makers are moving more production to China to lower costs. Matsushita needs to look for ways to be more efficient in its Chinese operations, beyond just using cheap labor, partly because it has too many small production sites, a fund manager said. Company officials were not immediately available for comment on the report. MISAWA HOMES: S&P Cuts Rating to SDpi ------------------------------------- Standard & Poor's Corp said Wednesday it has cut its rating on custom builder Misawa Homes Co from CCpi to SDpi in view of the firm's March 28 announcement that its main creditor, UFJ Bank, had waived claims on 35 billion yen in credits to the builder. The SDpi rating indicates that Misawa Homes' debt restructuring, which only affects some of the Company's bank debt, constitutes a selective default under Standard & Poor's criteria, S&P credit analyst Junko Miyakawa said. SD stands for selective default. The March downgrade followed the company's announcement on March 1 that it had officially requested forgiveness of a portion of its loans from UFJ Bank Ltd. Based in Tokyo, Misawa Homes is engaged in the construction of custom-made homes and other property development operations. The Company had Y600 billion in outstanding total debt at Sept. 30, 2001, and is projected to generate revenues of Y500 billion in fiscal 2001 (ending March 31, 2002). MITSUBISHI HEAVY: Plans to Boost Europe Turbo Charger Output ------------------------------------------------------------ Mitsubishi Heavy Industries Ltd plans to boost the output of its turbo chargers in Europe to 500,000 units by around the summer of this year from 400,000 units at present, the Japan Industrial Journal reported, without citing sources. Due to aggressive cost-cutting measures, debt-strapped Mitsubishi Heavy in November reduced its group net losses to Y8.26 billion in the first half of fiscal year 2001, compared to the Y23.47 billion in losses during the same period a year earlier. MIZUHO HOLDINGS: Nikkeiren Blames Execs for Computer Fiasco ----------------------------------------------------------- Hiroshi Okuda, chairman of the Japan Federation of Employers' Associations (Nikkeiren), said Wednesday the management of Mizuho Financial Group should take responsibility for the firm's computer glitches. "I don't know if that means resignations or pay cuts," Okuda told the Japan Times. "But they should do something to take the blame for inconveniencing so many customers." Mizuho's computer troubles began March 30 on the eve of the launch of Mizuho Bank and Mizuho Corporate Bank. They were created when Dai-Ichi Kangyo Bank, Fuji Bank and the Industrial Bank of Japan brought three incompatible computer systems to their merger under Mizuho Holdings Inc. Thousands of the banks' customers were double-billed for utilities charges, 7,000 automated teller machines crashed and utility companies are still experiencing delays in receiving customer payments due to the malfunctions. Yoshiro Yamamoto, the president of Fuji Bank before it merged, indicated Tuesday that three former Mizuho Holdings chief executive officers, including himself, would resign from their current posts as special advisers to the holding firm to take responsibility for the computer problems. NIPPON TELEGRAPH: MSC Unit Partners With IBM for IDC ---------------------------------------------------- NTT MSC Sdn Bhd, a wholly owned subsidiary of NTT Communications Corporation, has teamed up with IBM Malaysia Sdn Bhd to provide a one-stop shop for integrated Internet data center (IDC) services to local conglomerates and multinational companies. According to a report from Malaysian news agency Bernama, NTT MSC has invested RM25 million to set up a new building to house the IDC, which would be completed by the end of this month. NTT Communications is a wholly owned unit of Nippon Telegraph and Telephone Corp. NIPPON TELEGRAPH: Replaces Losing Units' Presidents --------------------------------------------------- Nippon Telegraph & Telephone Corp., the world's biggest telephone company, is set to appoint new presidents at its unprofitable regional phone units, Nikkei English News said, without citing anyone. Satoshi Miura will become head of NTT East Corp. while Michio Takeuchi will be promoted to the top spot at NTT West Corp., the news agency said. Both companies have forecast a loss for the twelve months ended March 31. NTT East, which operates services in a region including the Tokyo area, estimates it lost 197 billion yen in its last fiscal year while NTT West forecasts a 343 billion loss. NTT expects to lose 865 billion yen ($6.6 billion) on a group basis. NTT DoCoMo Inc. President Keiji Tachikawa and NTT Communications Corp.'s Masanobu Suzuki are set to remain in their current positions, Nikkei news said. NIPPON TELEGRAPH: Will Cut Capital Spending by $3.1B ---------------------------------------------------- Nippon Telegraph and Telephone Corp. plans to lower spending by 400 billion yen ($3.1 billion) under its three-year business plan, the Nihon Keizai Shimbun reported, without citing sources. The plan includes the suspension of capital investment in conventional fixed-phone networks to make a full-scale shift to Internet-based phone services. The group will integrate Internet services now offered separately by group firms and revamp the pager and PHS (personal handyphone system) businesses at NTT DoCoMo Inc. NTT aims to boost revenue by about 7 pct from the year to March 2002 level to about 12.6 trillion yen by the end of March 2005 and raise operating profit by 70 percent to around 1.5 trillion yen. The company also aims to reduce its interest-bearing liabilities by more than 1 trillion yen to about 6.5 trillion yen. SNOW BRAND: Asked to Hire Outside Food Safety Exec -------------------------------------------------- A civic group based in Osaka, backed by shareholders, on Wednesday asked scandal-hit Snow Brand Milk Products Co to hire an outside board member to ensure the safety of its food products, Japan Today reported. Snow Brand Foods Co, a subsidiary of Snow Brand Milk Products, was criticized after revelations that it mislabeled food and swindled the government out of money in a state-run buyback scheme to deal with mad cow disease. Snow Brand Foods will officially disband on April 30. SOFTBANK CORP.: Chief Faces Blow From Close Aide ------------------------------------------------ Softbank Corp. President Masayoshi Son received criticism from Softbank Investment Corp. President Yoshitaka Kitao for his slow response to speculation about the financial difficulties of the Internet business investment group, Kyodo News reported. Earlier this week, the Internet investor firm sold 11.5 million shares of Yahoo Inc. to U.S. phone-service provider SBC Communications for $171 million to lessen its interest-bearing debt. ========= K O R E A ========= DAEWOO MOTOR: Union Approves Collective Bargaining Accord --------------------------------------------------------- Daewoo Motor Co's labor union said it has received sufficient votes from union members for it to approve the new collective bargaining agreement (CBA) the union has tentatively agreed to with management, AFX Asia reports. Of the 8,941 members, 8,234 cast votes and 5,711 or 69.4 percent voted for the agreement, well above the required majority of votes needed for passage of a CBA. The CBA is a prerequisite for the signing of a final sale contract between General Motors Corp and local creditors of Daewoo Motor. Under the tentative agreement between the company and union, the company pledged that GM will take on all employees of the Daewoo Motor operations that it acquires, and will rehire 300 laid-off workers by end-2002. Local media reported that Daewoo Motor creditors and GM plan to sign the final contract on April 23. HANVIT BANK: Cuts Mortgage Loan Ceiling to 80% of Value ------------------------------------------------------- Hanvit Bank began to cut Tuesday the ceiling on mortgage loans to 70 to 80 percent of the value of the corresponding apartments in Seoul from the current 80 to 85 percent, AFX Asia reported. The cuts in the ceiling came as part of its efforts to effectively manage credit risks associated with mortgage loans amid the recent sharp rise in household loans. Hanvit also cut the ceiling on mortgages to 70 percent from 80 percent of the value of the apartments located in provinces, it said. HYUNDAI MOTOR: Breaks Ground for Alabama Plant ---------------------------------------------- Hyundai Motor Co broke ground on its US$1 billion automotive assembly and manufacturing plant in Montgomery, Alabama, AFX Asia reported. The 1,600-acre facility will begin producing sports utility vehicles and sedans in the first half of 2005 from the US plant which is capable of producing 300,000 units annually, the company said. The US plant will produce 128,000 units in 2005, rising to 217,000 units in 2006 and 225,000 in 2007, it said. Of the US$1 billion planned investment, US$700 million will come from the earnings reserves of the company's headquarters and its unit Hyundai Motor America and the remaining from borrowings in the US financial markets, it said. At the end of 2000, Hyundai Motor Company Limited had negative working capital, as current liabilities were W14.58 trillion while total current assets were only W9.60 trillion. KOOKMIN BANK: Combining Branches and Computer Systems ------------------------------------------------------ Kookmin Bank will complete the integration of its branches nationwide and its computer system by the end of September, the Korea Times reports. Kookmin Bank President, Kim Jong-tae said the signboards of the former Housing & Commercial Bank (H&CB) will be replaced with those of Kookmin Bank. He said he has no intention of cutting the number of branches or exchanging the bank's name before finishing the integration of computer systems of the two banks. SEOUL BANK: Plans to Raise $100M in Loans ----------------------------------------- Seoul Bank plans to raise $100 million in syndicated loans from overseas lenders next week to refund maturing debts, a bank official told the Korea Herald. The interest rate to be charged on the loans will be set at 30 basis points plus London interbank offered rate (Libor), with the all-in-cost likely to be 51 basis points above Libor, the official said. Credit Lyon and Natexis and two other banks will act as co-lead managers. The official said the bank would have debt rollover worth $200 million in the second half. Korea Deposit Insurance Corp was forced to look for domestic buyers for Seoul Bank after the talks with the consortium led by Deutsche Bank last year went nowhere. The government plans to name a preferred bidder by June and complete the sale of the bank within the year. =============== M A L A Y S I A =============== AIR ASIA: Flies Back Into the Black ----------------------------------- Malaysian budget airline AirAsia Sdn Bhd has returned to profit by saving some RM1.5 million a month since introducing an aggressive cheap fares program in January, the Business Times reported. Tune Air Sdn Bhd bought 99.25 percent of AirAsia's equity, or 51.68 million shares, from DRB-HICOM Bhd only last year for a nominal sum of RM1.00, and had set a target of breaking even by the end of this year. The new owner had adopted a no-frills air travel business model to pay off up to 80 percent of the assumed debts. AirAsia Chief Executive Officer Tony Fernandes expressed confidence that his company will continue to do well as long as its prices are competitive, especially with much of its debts settled. BERJAYA GROUP: Roadhouse Grill Files for Bankruptcy Protection -------------------------------------------------------------- Berjaya Group Bhd unit Roadhouse Grill Inc has filed for Chapter 11 protection under the US Bankruptcy Code. NASDAQ-listed Roadhouse Grill, which operates, franchises and licenses full service casual dining restaurants, said the Company already has successfully negotiated with most of its creditors to restructure and repay its debts, but a group of unsecured creditors, all affiliated with CNL, refused to settle out of court for past-due invoices, thereby forcing Roadhouse Grill into Chapter 11. The restructuring process is expected to help the firm emerge a stronger and more dynamic enterprise. DEWINA BERHAD: Reveals Financial Report Deviation ------------------------------------------------- Pursuant to Paragraph 9.19 (34) of the KLSE Listing Requirements, the Board of Dewina wishes to re-submit Dewina Berhad Group's fourth quarter results for the financial year ended 31st December 2001 to supersede the announcement made on February 28, 2002. The figures have been audited. These are the items of which amendments are made. 1. Consolidated Income Statement (a) Turnover Increase is due to revenue not recognized due to cut off issues now recognized in the amount of RM410,000. This resulted in a corresponding decrease in the loss for the year. (b) Profit (loss) before finance cost, depreciation and amortization exceptional items, income tax, minority interest and extra ordinary items. The decrease in the loss is due to: - Management decisions to carry forward corporate restructuring expenses until completion of the exercise in the amount of RM1,342,000. - Reduction of provision for slow moving inventory in the amount of RM344,000. The inventory are currently being used and management are of the opinion that the earlier provision was excessive. (c) Exceptional Items Exceptional item decreased due to: (i) A reversal of an earlier provision made to write off the kitchen equipment in a subsidiary in the amount of RM2,447,000. These equipment is being utilized at its current location and management are of the opinion that the earlier provision was excessive and is not reflective of the continual use of the assets. (ii) A revaluation deficit of RM195,000 arising from the revaluation of a property in a subsidiary which is below the net book value. (d) Income Tax The increase is due to an under provision of income tax in the amount of RM8,000. 2. Consolidated Balance Sheet. The changes to the balance sheet is primarily due to corresponding entries to above profit and loss adjustments. The company carried out a revaluation of all its landed properties and there was a revaluation surplus of RM1,367,000 which has been credited to revaluation reserve. The audited financial statements together with the Auditors' and Directors' Report will be submitted to the KLSE in due course for public release. HAI MING: SC Approves Restructuring Exercise -------------------------------------------- On behalf of the Board of Hai Ming Holdings Berhad, Public Merchant Bank Berhad (PMBB), is pleased to announce that the Securities Commission (SC) has via its letter dated 11 April 2002, received on 16 April 2002, approved the proposed waiver to Koh Poh Seng and parties acting in concert with him, namely Chai Kim Hua and Koh Cheng Tuan, from the obligation to extend a mandatory offer for the remaining shares of HMHB not already owned by them pursuant to Practice Note 2.9.3 of the Malaysian Code on Take-Overs and Mergers, 1998. In this respect, PMBB is required to furnish to the SC the following: (i) The actual number of new HMHB shares to be issued as consideration for the proposed acquisition of the entire equity interest in KPS Plywood Sdn Bhd (formerly known as Koh Poh Seng Plywood Co. (M) Sdn Bhd), the proposed acquisition of 30 percent equity interest in Yap Swee Thiam & Sons Industries Sdn Bhd and the proposed acquisition of 50 percent equity interest in Akateak Sdn Bhd; and (ii) The actual shareholdings of Koh Poh Seng and parties acting in concert with him in HMHB, following the implementation of the proposals to be undertaken by HMHB. In addition, the Ministry of International Trade and Industry (MITI) had approved the Proposed Restructuring Exercise, via its letter dated 15 April 2002, received on 16 April 2002, subject to the following: (i) Approval from the SC, for which approval was obtained via SC's letters dated 3 April 2002 and 9 April 2002; and (ii) Approval from the Foreign Investment Committee (FIC), for which approval was obtained via FIC's letter dated 20 February 2002. HMHB is requested to hold discussions with the MITI regarding the compliance of the equity conditions of its subsidiary companies after the completion of the Proposed Restructuring Exercise. MALTON BERHAD: Will Resume Trading on April 22 ---------------------------------------------- Malton Berhad said Wednesday that trading of its entire issued and paid-up share capital of 174,176,464 ordinary shares of RM1.00 each will resume with effect from 9.00 a.m., Monday, 22 April 2002. The Company added that its 174,176,464 warrant arising from the warrants issue will be admitted to the Official List of the Kuala Lumpur Stock Exchange and the listing and quotation of these Warrants on the Main Board under the "Loans" sector will be granted with effect from 9.00 a.m., Monday, 22 April 2002. The Stock Short Name, ISIN Code and Stock Number of the Warrants are "MALTON-WA", "MYL6181WAH24" and "6181WA" respectively. Each Warrant will entitle its registered holder to subscribe for one (1) new ordinary share in Malton at the Exercise Price during the Exercise Period. The Exercise Period shall commence from 26 February 2002, being the date of issue of the Warrants and maturing five (5) years from and including the date of issue of the Warrant, i.e. maturing on 25 February 2007. Warrants not exercised during the Exercise Period will thereafter lapse and cease to be valid. The Exercise Price for the Warrants is RM1.60 per new ordinary share. MTD CAPITAL: Disposes MTD Prime ------------------------------- Reference is made to the announcement made on 21 July 2001 by Arab-Malaysian Merchant Bank Berhad in relation to the execution of a definitive agreement between Puncak Sabit Sdn Bhd and Dewina Berhad for the Proposed Disposal of MTD Prime Sdn Bhd entered into on 20 July 2001. Arab-Malaysian, on behalf of Dewina, wishes to announce that on 16 April 2002, MTD and Dewina have agreed to extend the effectiveness of the MTD Prime Definitive Agreement from 19 April 2002 to 30 June 2002, or such other date as the Parties may subsequently agree upon in writing. All other rights and obligations of the Parties under the MTD Prime Definitive Agreement shall be unaffected and shall remain in full force and effect. REPCO HOLDINGS: Workout Proposal Approved ----------------------------------------- The Special Administrators of Repco Holdings Berhad, Repco (Malaysia) Sdn Bhd, Everise Capital Sdn Bhd, Everise Ventures Sdn Bhd, Even Horizon Sdn Bhd, Teluk Jadi Sdn Bhd, Hajat Semarak (M) Sdn Bhd and Repco Timber Sdn Bhd said Thursday that a workout proposal was approved in accordance with the Pengurusan Danaharta Nasional Berhad Act 1998 on 16 April 2002. Under section 46(4) of the Act, the Proposal binds the Companies, all members and creditors of the Companies and any other persons affected by the Proposal. Subject to proper identification and for a period of 30 days after the date of this notice, any creditor of the Companies can examine details of the Proposal during office hours from 9.00 a.m. to 5.00p.m. on any working day at the following address: Wisma Repco No. 12, Lorong Tenggiling 4 Jalan Maktab Gaya, Luyang 88300 Kota Kinabalu, Sabah The Special Administrators also wish to announce that its advising merchant bankers, Commerce International Merchant Bankers Berhad, will release details of Repco Holdings Berhad's plan to regularize its financial condition shortly. UMW HOLDINGS: Philippine Subsidiary Initiates Winding Up Action --------------------------------------------------------------- UMW Holdings Bhd said Wednesday that its wholly owned subsidiary incorporated in the Philippines, UMW Industries (Philippines) Inc, has initiated the process of winding-up its operations in order to save costs in maintaining the company further. The Company does not have any significant level of operations in the Philippines. The Company's corporate secretary has been authorized to take the necessary steps to effect the above process. ===================== P H I L I P P I N E S ===================== NATIONAL POWER: Reviews 12 IPP Deals ------------------------------------ Aa least 12 of 45 contracts between the state-owned National Power Corp. (Napocor) and independent power producers (IPPs) have been reviewed, the Philippine Daily Inquirer reported. Energy Secretary Vincent Perez Jr. declined to specify the contracts that had been reviewed. "We have to finish everything because we need to compare the results of the review on each contract to decide on what to do," Perez said. Meanwhile, Commissioner Maria Teresa Diokno-Pascual of the Citizen's Review Commission on the IPPs (CRC-IPP), a private initiative, said the government's review of its contracts was not serious enough. Pascual said Napocor's contracts gave independent power producers undue guarantees. The most controversial of these was the take-or-pay agreement, wherein Napocor has to pay up to 85 percent of the electricity supposedly generated by the IPPs even when only 10 to 40 percent of the power is used. She said the provisions of the contracts were responsible for the high cost of electricity that ordinary consumers were shouldering. The government is selling Napocor's assets to reduce power costs and cut the Company's debt. In January and February, the power company sold $750 million in bonds to help repay $1 billion of debt due this year. It forecasts a 34 billion peso ($667 million) loss this year, three times more last year. NATIONAL BANK: Government to Drop Stake After Rehab --------------------------------------------------- The National Government (NG) plans to unload its shares in the Philippine National Bank (PNB) three years after the implementation of the bank's rehabilitation program, the Philippine Star reports. "As soon as possible would be better, but we feel that the share price will be attractive once PNB management shapes up its financial position," Philippine Deposit Insurance Corp. (PDIC) President, Norberto Nazareno Nazareno said. Bangko Sentral ng Pilipinas (BSP) Deputy Governor Alberto Reyes said PNB is losing P200 million a month due to interest payment alone for its P23.9 billion in outstanding emergency loans from PDIC and the BSP. PNB incurred a net loss of P4.5 billion last year. NATIONAL STEEL: Creditors Set to Resume Talks With Owner -------------------------------------------------------- Creditors of National Steel Corp. (NSC) are set to resume negotiations for its proposed debt write-down and equity conversion scheme with Abdul Hamidy Afiz of Pengurusan Danaharta Nasional Berhad when the Malaysian delegation arrives on May 3. Trade and Industry Secretary Manuel Roxas II told the Philippine Star the Malaysian owners of NSC and the Philippine creditor banks are still working out the final details of the proposed debt write-down and equity conversion. Under the debt write-down and equity conversion proposal, all of the creditor banks and the Malaysian owners will have to agree to a "haircut." They will also have to agree to convert part of their outstanding receivables from NSC into equity. Industry observers said that NSC might be closed if the Malaysian owners and the Philippine creditor banks fail to agree on the debt write-down and equity conversion. PHILIPPINE LONG: Drops Plan to Sell Smart ----------------------------------------- Telecommunications giant Philippine Long Distance Telephone Co (PLDT) has abandoned plans to sell a minority stake in wireless subsidiary Smart Communications Inc. A top PLDT official told the Philippine Star that the company is already optimistic of raising the $1.3 billion it needs to settle its maturing loan obligations this year up to 2004. PLDT president and chief executive officer Manuel V. Pangilinan said the sale of a stake in Smart is now the telecom firm's last option to raise funds for its liability management exercise. PLDT was earlier able to secure a $149-million loan from KfW of Germany. It also expects to get approval in the next few weeks from the Japan Bank of International Cooperation (JBIC) for an $80-million loan. PLDT was earlier in negotiations to sell 5 to 10 percent of Smart to the American International Group. ================= S I N G A P O R E ================= KEPPEL TELECOM: Back in the Black With S$2.7M Profit ---------------------------------------------------- Keppel Telecommunications & Transportation, a member of the Keppel Group, is back in the black when it reported a first quarter net profit of S$2.7 million, compared with a loss of S$1.3 million previously, Channel News Asia reports. The profit was due mainly to higher contributions from mobile phone operating unit MobileOne. Keppel T&T's data centers also managed to slash their operating losses. For the second quarter, the company expects results to improve over the first and it expects to be profitable for the full year. At the end of 2001, Keppel Telecommunications and Transportation Ltd had negative working capital, as current liabilities were S$718.96 million while total current assets were only S$287.48 million. =============== T H A I L A N D =============== EMC PUBLIC: Court Allows Share Transfer --------------------------------------- Re: EMC Public Company Ltd's letter no. EMC 026/2002, dated March 27, 2002, informing the submission of the petition to the Central Bankruptcy Court in order to amend the regulations of the company concerning the transfer of shares. EMC Public Company Ltd wishes to inform that the Court ordered to allow the plan administrator to amend the regulations of the company as follows: Article 9. The company's shares can be freely transferred without restriction except; 9.1 when such transfer may cause foreigners to hold more than forty-nine per cent of the company's shares. 9.2 the creditors who received shares as mentioned in the rehabilitation plan of EMC have the right to dispose its shares to any persons. But the creditors have to offer the persons who have a prior right to repurchase first; Mr. Komol Wongpornpenpap, Mr. Slib Soongswang, Mr. Smai Leesakul and Mr. Pichai Klongpitak. If they refuse or neglect to repurchase within 30 days from the day of their receiving the offer, then the creditors will have the right to dispose of shares to any persons. During the first period of three years from the day when the plan has been approved (May 15, 2001), the persons who have a prior right to repurchase first might request to repurchase of the whole shares or some shares from one creditor or more who have received shares from conversion of debt to equity as mentioned in the rehabilitation plan, in the amount of Baht 10 per share plus the MLR of Bangkok Bank from the day of receiving shares from EMC or market price as any price which is higher and such creditors have to dispose of their shares in accordance with the amount and the price that the persons who have a prior right to repurchase first offered. After completion of the registration of the amendment of the company's regulations with the Former Ministry of Commerce, EMC will inform the SET onwards. ITALIAN-THAI: Summarizes Business Reorganization Plan ----------------------------------------------------- ITD Planner Company Limited, in its capacity of the Planner of Italian-Thai Development Public Company Limited, wishes to inform the Stock Exchange of Thailand of the additional information of the Summary of the Reorganization Plan and classification and Treatment of Creditors by class: (a) Class 1 Creditors (Secured Creditors) This class of Creditors will consist of Creditors whose Claims are secured by certain assets of ITD in the form of mortgages or pledges. Treatment: None of the Claims of Class 1 Creditors are in default and such class of Creditors will be entitled to the full repayments of such Claims in accordance with their relevant existing agreements. (b) Class 2 Creditors (Unsecured Related Companies) This class of Creditors will consist of unsecured Trade Creditors that are related companies. Treatment: Class 2 Creditors will be entitled to the repayment of the principle amount of their Claims within 12 months from the date the Court approves the Plan. All incurring interest, fees or any other outstanding amounts, including such interest, fees or any other amounts incurred prior to the date the Court issued the order for the business reorganization of ITD (if any), shall be canceled. (c) Class 3 Creditors (Unsecured Trade Creditors) This class of Creditors will consist of unsecured Trade Creditors. Treatment: Class 3 Creditors will be entitled to the repayment of the principle amount of their Claims within 6 months from the date on which the Court approves the Plan. All incurring interest, fees or any other outstanding amounts, including such interest, fees or any other amounts incurred prior to the date the Court issued the order for the business reorganization of ITD (if any), shall be canceled. (d) Class 4 Creditors (Unsecured Financial Creditors who provided credit facilities for certain projects) This class of Creditors will consist of unsecured Creditors with right created by assignment agreements of ITD. Treatment: As the Claims of Class 4 Creditors have not been in default they will be entitled to the full repayments of such Claims in accordance with their relevant existing agreements. (e) Class 5 Creditors (Unsecured Financial Creditors under the Master Rescheduling Agreement) This class of Creditors will consist of unsecured Financial Creditors party to and their debts restructured under the Master Rescheduling Agreement. Treatment: Class 5 Creditors will be entitled to repayments of their Claims by the following means: Discounted Debt Repurchase Program (pursuant to Section 5.2 (b)); Voluntary Debt to Equity Conversation Program (pursuant to Section 5.2 (c)); the novation of Claims to the SPV (pursuant to Section 5.2 (d)); the transfer of Non-Core Assets to SPV (pursuant to Section 5.2 (e)); Serviceable Claims (pursuant to Section 5.2 (f)); and the mandatory debt to equity conversion (pursuant to Section 5.2 (g)). (f) Class 6 Creditors (Unsecured Debenture holders) This class of Creditors will consist of the unsecured Debenture holders. Treatment: Class 6 Creditors will be entitled to repayments of their Claims by the following means: Discounted Debt Repurchase Program (pursuant to Section 5.2 (b)); Voluntary Debt to Equity Conversation Program (pursuant to Section 5.2 (c)); the novation of Claims to the SPV (pursuant to Section 5.2 (d)); the transfer of Non-Core Assets to SPV (pursuant to Section 5.2 (e)); Serviceable Claims (pursuant to Section 5.2 (f)); and the mandatory debt to equity conversion (pursuant to Section 5.2 (g)). (g) Class 7 Creditors (Creditors of Unsecured Contingent Claims) This class of Creditors will consist of the Creditors with Claims which are unsecured and contingent. Treatment: All Claims of Class 7 Creditors have not been in default and such Class of Creditors will be entitled to the full repayments of such Claims or any part thereof which become payable in accordance with their relevant existing agreements. (h) Class 8 Creditors (Unsecured Working Capital Creditors) This class of Creditors will consist of the Creditors with unsecured Claims resulting from overdraft agreements, trust receipts and letters of credit (both domestic and foreign). Treatment: Class 8 Creditors will be entitled to the full repayments of such Claims in accordance with their relevant existing agreements. (i) Class 9 Creditors (Unsecured Professional Advisors) This Class of Creditors will consist of Creditors with unsecured Claims resulting from their provision of professional advisory services to ITD. Treatment: Class 9 Creditors will be entitled to the full repayment of their Claims within 30 days from the date on which the Court approves the Plan. (j) Class 10 Creditors (Others) This class of Creditors will consist of the Creditors who are not classified in 6.1 (a) to (i) and (k). Treatment: Class 10 Creditors will be entitled to the repayments of such Claims in accordance with their relevant existing agreements. (k) Class 11 Creditors (Creditors who have filed legal claims against ITD) This class of Creditors will consist of the Creditors whose Claims are disputed by ITD and such disputes are under court proceedings. Treatment: Class 11 Creditors will be entitled to the repayments of their Claims in full within 15 days from the date on which the Court issues the order approving the Plan or the date on which the Official Receiver or a relevant court, by its final order, determines that such person has a Claim against ITD, which ever date is the latest. SINO-THAI: Inks Three Contracts Worth Bt416M --------------------------------------------- Sino-Thai Engineering & Construction Public Company Limited (STECON) said Wednesday that between February 25 and March 31, 2002m the Company signed three contracts with total contract value of Bt416.10 million. The details of the contracts are: 1) Construction of collecting system and waste water treatment plant for Sakon Nakorn Municipality. - Project Owner: Sakon Nakorn Municipality - Signing Date: 29 March 2002 - Total Contrct Value: Baht 252,400,000.00 (VAT Included) 2) Construction of sewage system, collecting system and waste water treatment plant for Chieng Rai Municipality. - Project Owner: Chieng Rai Municipality - Signing Date: 29 March 2002 - Total Contract Value: Baht 147,900,000.00 (VAT Included) 3) Procurement, fabrication, installation, testing and commissioning of steam pipeline and condensate return. - Project Owner: Industrial Power Co.,Ltd. - Signing Date: 25 February 2002 - Total Contract Value: Baht 15,800,000.00 (VAT Included) SINO-THAI: Phornprapha Steps Down as Director --------------------------------------------- Sino-Thai Engineering & Construction Public Company Limited said that Mr. Chumpol Phornprapha has resigned as director, effective April 12, 2002. In this regard, the Company is processing the registration of the change in director at Commercial Registration Department, Ministry of Commerce. The TCR-AP reported that Sino-Thai has not paid dividends during the last 12 months, nor paid any dividends during the previous six fiscal years. THAI HEAT: Issues Registered Capital Changes -------------------------------------------- Thai Heat Revival Company Limited, as the reorganization planner of Thai Heat Exchange PCL, submitted the correction of capital increasing about the capital as follow: Before increasing capital the Company has unpaid up-capital 526,600 shares, which is registered, so the Company decreased the capital for the shares amount before increasing the new shares regarding to the rehabilitation plan. According to a previous TCR-AP report, the Central Bankruptcy Judge has approved on January 30 Thai Heat Exchange's rehabilitation plan and appointed Thai Heat Revival to be the management planner. 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. 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