/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/020506.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 Monday, May 06, 2002, Vol. 5, No. 88 Headlines * A U S T R A L I A * ANSETT GROUP: Collapse Hearing Set for August ANSETT GROUP: Gov't to Get Terminal Sale Money Before Workers ANSETT GROUP: Qantas in Talks With SACL for Terminal Lease AUSTAR UNITED: First-Quarter Interest Payment Soars ONE.TEL LTD: Rich Warns Packer to Tell the Truth * H I N A & H O N G K O N G * HOI TIN HOLDINGS: Winding-up Hearing Set on May 29 KARL LIMITED: Faces Winding-up Petition LIPPO CHINA: Posts HK$551M Loss SINOPEC YIZHENG: High Material Cost Drags Firm into the Red *I N D O N E S I A * BANK INTERNASIONAL: Posts FY Net Loss of Rp4.131T * J A P A N * MYCAL CORP: Kyushu Unit Seeks to Form Support Group NIPPON STEEL: Extends Ties with Arcelor * K O R E A * ASIANA AIRLINES: Posts W23.1B Profit in First Quarter DAEWOO MOTOR: GM to Retain Most Workers DAEWOO MOTOR: Launches Subcompact Kalos HYNIX SEMICON: Accepts Resignation of CEO Park Chong-sup HYNIX SEMICON: Corporate Bonds Get Higher Loss Ratios HYNIX SEMICON: Gov't to Keep Off Hynix HYNIX SEMICON: Jumps 8% on Hopes for a Solo Survival HYUNDAI MOTOR: Delays $500M Bond Issue HYUNDAI MOTOR: Likely to Surpass First-Quarter Profit HYUNDAI MOTOR: In JV Talks With DaimlerChrysler SEOUL BANK: To Receive Acquisition Bids for Stake by June * M A L A Y S I A * AOKAM PERDANA: Reports Termination of Corporate Exercises DATAPREP HOLDINGS: Awaits KLSE Listing Approval DEWINA BERHAD: Entitlement Date Set on May 7 GLOBAL CARRIERS: Awaits Development of Proposals LION GROUP: Court Orders November Meeting for GWRS MBF CAPITAL: Court Approves Transfer of Business to QBEM PENAS CORPORATION: Prepares Plan to Regularize Finances PERDANA INDUSTRI: Says Restructuring Exercise Ongoing PLUS BERHAD: To Complete Debt Revamp by End of May SRI HARTAMAS: FIC Reverts Approval of Scheme of Arrangement TECHNO ASIA: Continues to Default in Payment TECHNOLOGY RESOURCES: Telekom Malaysia Mulling Control Over TRI TECHNOLOGY RESOURCES: Telekom Malaysia Seeks Board Seats UNIPHOENIX CORPORATION: SC Examines Restructuring Scheme ZAITUN BERHAD: Seeks Two Months Requisite Announcement Extension * P H I L I P P I N E S * METRO PACIFIC: Seeks for First e-Bank Buyer REYNOLDS PHILIPPINES: Expects Return to Profit in 2003 * S I N G A P O R E * CAPITALAND LTD: Directors Give Nod on Resolutions ST ASSEMBLY: First-Quarter Loss Widens to US$26.6M ================= A U S T R A L I A ================= ANSETT GROUP: Collapse Hearing Set for August --------------------------------------------- Former Ansett chief Gary Toomey and other Ansett directors are set to face a court hearing in the NSW Supreme Court on August 16 over the collapse of the company. According to a ninemsn.com report, Mr Toomey and his colleagues face two lawsuits brought by the Travel Compensation Fund (TCF) for allegedly failing to take adequate steps to meet obligations to clients for money entrusted to the company before collapse. TCF has received about 11,400 claims resulting from the collapse of Ansett and its travel business Traveland, of which 8,000 had been considered eligible. The total value of eligible claims is about $14 million. ANSETT GROUP: Gov't to Get Terminal Sale Money Before Workers ------------------------------------------------------------- The Australian Council of Trade Unions (ACTU) say the Federal Government is the biggest hurdle for former Ansett employees waiting to receive their entitlements, ABC News reported Friday. According to the union, the government is demanding payment of more than $300 million before employees get what is owed to them. The Sydney Airports Corporation's acquisition of Ansett's Sydney terminal facilities will make about $200 million available for creditors, and the government is putting itself first in the queue of creditor, ACTU assistant secretary Richard Marles said. The ACTU also says intervention by the Australian Competition and Consumer Commission (ACCC) has devalued the sale price for Ansett's Sydney terminal. ANSETT GROUP: Qantas in Talks With SACL for Terminal Lease ---------------------------------------------------------- Qantas Airways Ltd opened talks with Sydney Airport Corp Ltd on Friday to secure exclusive rights over one wing of the former Ansett terminal, the Melbourne Age reported. The move comes just 24 hours after SACL agreed to buy Ansett Australia's valuable Sydney Airport terminal lease for around A$200 million ($108 million). Qantas was said to have withdrawn as a bidder after the Australian Competition and Consumer Commission indicated it would block moves by the dominant airline to control 90 percent of gates at the busiest domestic hub. Qantas retains an exclusive lease over its Sydney terminal, but wants extra gates so Qantaslink regional passengers can disembark directly into lounges. AUSTAR UNITED: First-Quarter Interest Payment Soars --------------------------------------------------- Austar United Communications has admitted that its interest payment increased more than five times in the first quarter after it defaulted on a bank loan. According to a report from the Australian IT, the media and communications company incurred a number of charges and costs in the first quarter of 2002 due to the timing issues associated with the refinancing of its debt facility. Austar owed $16 million in interest, up from $3 million in the last quarter of 2001, as a result of interest from a default of a previous debt facility, which occurred on December 31, 2001. The company further received a $4.8 million increase in payments to suppliers and a $10.7 million bill from its banks and advisers. Austar is troubled by ongoing losses. The company reported a $682.07 million net loss for 2001 after one-off items totaling $240 million. ONE.TEL LTD: Rich Warns Packer to Tell the Truth ------------------------------------------------ The liquidators' inquiry into the collapse of One.Tel has grown intense as founder Jodee Rich offered some unsolicited advice to his former friend, James Packer, the Australian IT reported. "I hope that James tells the truth and remembers all the details of the conversations we have had, particularly in the last few months of 2001," Rich said at a lunchtime break during Packer's evidence to a liquidator's hearing in the Federal Court in Sydney. Packer told the hearing into the collapse of the mobile phone company that his father, Kerry, had contemplated buying shares in One.Tel just months before it sank leaving creditors and shareholders hundreds of millions of dollars out of pocket. Packer also denied "absolutely" a claim by former One.Tel co- managing director Brad Keeling that he was warned that cash levels were critical as early as March 2001. He also denied that he did not go far enough to check the company's financial health. One.Tel folded in June 2001 with debts of more than A$600 million. ================================ C H I N A & H O N G K O N G ================================ HOI TIN HOLDINGS: Winding-up Hearing Set on May 29 -------------------------------------------------- The petition to wind up Hoi Tin Holdings Company Limited is set for hearing before the High Court of Hong Kong on May 29, 2002 at 9:30 am. Law Kwai Yung, whose registered office is Room 606, Shing Fu House, Kwai Shing Estate East, Kwai Chung, New Territories, Hong Kong, filed the petition with the court on February 11, 2002. KARL LIMITED: Faces Winding-up Petition --------------------------------------- Wong Yat Hung of Bank of Room 14, 19th Floor, Shek Yuk House, Chun Shek Estate, Shatin, New Territories, Hong Kong is seeking for the winding up of Karl Limited. The petition was filed on March 06, 2002, and will be heard before the High Court of Hong Kong on June 26, 2002 at 9:30 a.m. KING WAI ENTERPRISE: Court Sets June Winding Up Hearing ------------------------------------------------------- Standard Chartered Bank of 4-4A Des Voeux Road Central, Hong Kong is seeking the winding up of King Wai Enterprise Holdings Company Limited. The petition was filed on February 22, 2002, and will be heard before the High Court of Hong Kong on June 12, 2002 at 9:30 a.m. LIPPO CHINA: Posts HK$551M Loss ------------------------------- Lippo China Resources, a separately listed principal subsidiary of Lippo, reported a loss of HK$551.37 million versus HK$671 million previously, and noted that "given the uncertainty in the property market, the value of the group's existing property portfolio fell further." According to a report from the South China Morning Post, a charge of HK$200 million was taken on the profit-and-loss account and another HK$100 million was debited against revaluation reserves. The group also made a provision of HK$67 million, on top of HK$52 million the previous year, for its investment securities. Looking ahead, Lippo said this financial year would probably prove volatile and trying. SINOPEC YIZHENG: High Material Cost Drags Firm into the Red ----------------------------------------------------------- Polyester product manufacturer Sinopec Yizheng Chemical Fibre has swung to a loss of 55.5 million yuan in the first quarter from a net profit of 118.2 million yuan in the year-earlier period due to low polyester product prices. While the overall operating environment for the polyester industry is improving, the mainland-based company said it still expects its interim results for the year ending December 31, 2002 to "decrease substantially" compared with the first half of last year. On a per share basis, the company reported a net loss of 1.4 fen compared with a net profit of 3 fen the previous year. Revenues from principal operations fell 21 percent to 1.53 billion yuan from 1.93 billion yuan, while profit from principal operations fell 65 percent to 97.4 million yuan from 278.5 million yuan. The company has A-shares listed on the Shanghai Stock Exchange and H-shares listed on the Stock Exchange of Hong Kong. ================= I N D O N E S I A ================= BANK INTERNASIONAL: Posts FY Net Loss of Rp4.131T ------------------------------------------------- PT Bank Internasional Indonesia reported a net loss of 4.131 trillion rupiah for 2001 against a profit of 267.487 billion in the previous year, AFX Asia reported. The bank also revealed an operating loss of 3.731 trillion rupiah from a profit of 107.552 billion. Loss per share was 45 rupiah. The results are audited and the 2000 results are restated, the report adds. BII said its capital adequacy ratio was down at negative 47.41 percent as of Dec 2001 from positive 7.57 percent a year earlier. The return on assets ratio fell to negative 9.73 percent from positive 0.91 percent over the period, and return on equity was down to negative 3,790.78 percent from positive 39.22 percent. Earlier, the Indonesian Bank Restructuring Agency (IBRA) said it is planning a Rp3.9 trillion rights issue to recapitalize BII. ========= J A P A N ========= MYCAL CORP: Kyushu Unit Seeks to Form Support Group --------------------------------------------------- Mycal Kyushu, a unit of failed retailer Mycal Corp, plans to form a group of sponsors led by Hiroshima-based midsize supermarket operator Izumi Co for its rehabilitation efforts, company officials said Thursday. The officials said the Fukuoka-based unit would ask major retailers and local business partners to join the group, a move representing the firm's opposition to a rehabilitation plan put forward by Aeon Co, a key sponsor of the parent firm's revival efforts. According to Mycal Kyushu, Aeon's rehabilitation plan would involve job cuts. In April, Mycal filed a request with the Tokyo District Court and a group of 11 creditor companies filed a request with the Fukuoka District Court to have Mycal Kyushu launch a fresh restructuring program under the Corporate Rehabilitation Law. A receiver will draw up a rehabilitation program for Mycal Kyushu once the courts approve the application of the Corporate Rehabilitation Law to the firm. It remains uncertain whether Mycal Kyushu's plan to create a support group will be realized. In September, debt-saddled retailer Mycal Corp and Mycal Kyushu applied to the Tokyo District Court for protection from creditors under the Civil Corporate Revival Law. Six of its group firms, such as DacVivre Co., based in Sendai (Miyagi Prefecture), and Mycal Kyushu Co., based in Fukuoka, also filed for bankruptcy protection under the same law. Mycal Kyushu owes Y31.8 billion to its parent, Mycal, which owns 99 percent of Mycal Kyushu. NIPPON STEEL: Extends Ties with Arcelor --------------------------------------- Nippon Steel Corp. is expanding its alliance with Arcelor, the world's top steelmaker, and other overseas partners in the area of raw materials procurement to reduce raw materials shipping costs and procuring high-quality coal. According to the Friday edition of Nihon Keizai Shimbun, Nippon Steel and Arcelor will share ships carrying iron ore and coal, working to set up a system making the most efficient use of ships carrying raw materials between Australia, Brazil, Japan and Europe. The two firms have already agreed to cooperate in this way three times a year. The report adds that Nippon Steel will also consider cooperating with Posco of South Korea in procurement of coal from China. Nippon Steel in April announced it would form technological tie- ups with Germany's ThyssenKrupp Steel AG in the field of electromagnetic steel sheets to trim research and development investment costs. The company is expected to record a group net loss of Y30 billion in fiscal 2001, dropping its previous forecast that it will break even. The steel maker blamed the downward revision on a Y44 billion extraordinary loss it will incur chiefly on the booking of Y73 billion in latent losses on its securities holdings. ========= K O R E A ========= ASIANA AIRLINES: Posts W23.1B Profit in First Quarter ----------------------------------------------------- Asiana Airlines revealed a net profit of 23.1 billion won in the three months to March compared with a loss of 102.5 billion a year earlier after a shift to more profitable routes and a fall in oil prices and interest rates, AFX Asia reported. The company is aiming at a net profit of 350 billion won and an operating profit of 193.6 billion on sales of 2.54 trillion over the full year, with some 177 billion in extraordinary gains seen from the disposal of stakes in units. Asiana Airlines, as part of its restructuring, earlier signed a memorandum of understanding with Asian Infrastructure Fund to sell an 85 percent stake in unit Asiana Airport Services Inc. At the end of 2000, Asiana Airlines had negative working capital, as current liabilities were W1.47 trillion while total current assets were only W558.91 billion. DAEWOO MOTOR: GM to Retain Most Workers --------------------------------------- General Motors Corp has agreed to retain all of Daewoo Motor's current workers up to the level of managing director, the Digital Chosun reported, citing Daewoo Chair Lee Jong-dae. GM and Daewoo's creditors wrapped up a deal last Tuesday that will see the world's largest automaker take over about two- thirds of Daewoo's core plants and global network. DAEWOO MOTOR: Launches Subcompact Kalos --------------------------------------- Daewoo Motor on Thursday began local sales of its new subcompact Kalos in its first vehicle launch since General Motors' takeover earlier last week, the Korea Herald reported. The Kalos, with a 1,500cc engine, is a crossover model combining the merits of a passenger sedan and sport utility vehicle. Its development resulted from three years of research and an investment of 220 billion won ($170 million). World-renowned car designer, Ital Design, designed Kalos, which comes with many attractive features such as a high roof and double folding back seats that bring some of the convenience of an SUV. Kalos can reach a maximum speed of 170km per hour, has efficient gas mileage of 14.2km/l due to a fuel injected engine, and has successfully passed durability test runs and collision tests. HYNIX SEMICON: Accepts Resignation of CEO Park Chong-sup -------------------------------------------------------- South Korean chipmaker Hynix Semiconductor Inc. has accepted the resignation of its Chief Executive and Chairman of the Board Park Chong-sup, and has named Sang Park as the new CEO, Dow Jones Newswires reported. Y.W. Jun, an outside board director, replaces Park Chong-sup as the new chairman. Park has offered to step down after Hynix's board of directors voted against a deal to sell its memory chip operations to rival Micron Technology Inc. Dow Jones Newswires adds that Park Chong-sup will still be with the company to head the "divesture of non-memory business." HYNIX SEMICON: Corporate Bonds Get Higher Loss Ratios ----------------------------------------------------- Hynix Semiconductor's depreciation ratios of its corporate bonds were recently raised by the investment trust sector and are expected to further increase since bond pricing agencies such as KIS Pricing Inc. marked down the market value of Hynix bonds last month from 8,000 won to 5,000 won at 50 percent of the face value. According to The Korea Herald, Hyundai Investment & Securities Co. raised the depreciation rate from 20 percent to 60 percent as of April 26, and Korea Investment Trust Management Co. (KITMC), from 20 percent to 50 percent a few days later. "We regard Hynix bonds as having a 50 percent chance of being recovered despite the board's vetoing the MOU with Micron Technology because the creditor banks have offered to write off 50 percent of their loans to Hynix," KIS Pricing said. "But we lowered the market price due to the uncertainties linked with the bonds." Due to this relatively low quantity of Hynix bonds, the raised depreciation ratios are not regarded as overly damaging, particularly for retail investors who invest in small portions of speculative-grade corporate bonds, the report adds. HYNIX SEMICON: Gov't to Keep Off Hynix -------------------------------------- Vice Minister of Finance and Economy Yoon Jin-sik affirmed Thursday that the Korean government would leave the fate of the troubled Hynix Semiconductor Inc. in the hands of its creditors, the Korea Herald reported. Yoon's comment comes after Deputy Prime Minister and Minister of Finance and Economy Jeon Yun-churl said Hynix creditor banks would not offer more financial assistance to the cash-strapped chipmaker or write off its debt. "The issue of Hynix should be settled by creditor banks," Yoon told reporters after a Financial Policy Coordination Meeting attended by vice economic ministers. The vice finance minister has urged Hynix creditors to come up with a resolution to the breakdown of the Hynix-Micron deal as soon as possible to minimize any negative impact on the economy. HYNIX SEMICON: Jumps 8% on Hopes for a Solo Survival ---------------------------------------------------- Hynix Semiconductor Inc gained 8 percent to 880 won after U.S. Micron Technology Inc said it dropped its bid to buy $3 billion in operations from the South Korean chipmaker, Reuters reported. Individual investors have opposed the Micron deal, concerned about shrinking corporate value after the sale of memory chip operations, which accounted for some 70 percent of Hynix's annual sales last year. HYUNDAI MOTOR: Delays $500M Bond Issue -------------------------------------- Hyundai Motor Co, South Korea's largest automaker, had delayed plans to issue $500 million in global bonds by mid-year. "The bond issuance plans were made late last year and early this year, but these days, we are experiencing ample liquidity due to surging automobile sales," a Hyundai spokesman told Reuters. "For the time being, we have no plans to issue bonds overseas," the spokesman added. Hyundai said earlier this year it planned to issue up to $1 billion in bonds overseas in the first half of 2002 to try to hedge foreign exchange risks. HYUNDAI MOTOR: Likely to Surpass First-Quarter Profit ----------------------------------------------------- Hyundai Motor Co. will probably report a 38 percent increase in its first-quarter profit because it sold more luxury vehicles and recorded a currency gain, analysts said. According to the average of four analysts in a Bloomberg survey, the carmaker's net income probably rose to 382 billion won ($296 million) from 276 billion won a year earlier. The estimates ranged from 345 billion won to 403 billion won. Hyundai Motor's profit margin improved in the first quarter as consumers at home and abroad bought more Santa Fe, Grandeur and other pricier models. The Korean government's cut in sales taxes in November and the economy's accelerating growth rate spurred domestic sales. Hyundai Motor may report earnings this week. As of December 2001, Hyundai Motor's current assets stood at US$3.72 billion against current liabilities of US$45.7 billion. HYUNDAI MOTOR: In JV Talks With DaimlerChrysler ----------------------------------------------- German-US carmaker DaimlerChrysler AG is holding top-level talks with Hyundai Motor Co to start an engine joint venture, the Financial Times reported without citing its sources. The report said senior executives of Hyundai Motor, in which the German-US group holds a 10.5 percent stake, would discuss with the head of Chrysler unit, Dieter Zetsche to discuss details regarding likely volumes and assembly options for the joint venture. The project, which will have plants in Asia and North America and will start production in 2004, will also include Mitsubishi Motors Corp, in which DaimlerChrysler has a 37 percent stake. According to the FT, the joint venture is expected to assemble 1.5 million engines per year, using common components and joint purchasing teams. Officials declined to comment on the likely investment involved, but said "significant sums" would be required to develop production facilities. SEOUL BANK: To Receive Acquisition Bids for Stake by June --------------------------------------------------------- South Korea's Seoulbank will receive bids for the planned sale of a major stake in the company by June, the Korea Economic Daily reports, quoting Seoulbank Chief Executive Kang Chungwon. The bank will select a manager to help lead the stake sale this month, according to the newspaper. According to an April report from the Troubled Company Reporter Asia Pacific, the state-run Korea Deposit Insurance Corp. (KDIC), which has injected public funds into Seoul Bank, plans to put in an international bid after selecting a few potential buyers for the bank. More than W5 trillion has been injected into the bank since late 1997 in order to keep the bank from collapsing due to a large number of bad loans. =============== M A L A Y S I A =============== AOKAM PERDANA: Reports Termination of Corporate Exercises --------------------------------------------------------- Aokam Perdana Berhad refers to the company's announcements dated 1 and 5 April 2002 made pursuant to Paragraph 4.1(b) of PN 4 of the Listing Requirement. Aokam, as the affected listed issuer as defined under Paragraph 2.1(a) of PN 4 due to the deficit in the adjusted shareholders' equity on a consolidated basis, said Thursday that Messrs. Aseambankers Malaysia Berhad, Adviser for the Proposed Corporate Exercises which comprises of the Proposed Rights Issue, Proposed Special Issue and Proposed New ESOS, had on 26 April 2002 announced that the aforementioned Proposed Corporate Exercises have been aborted. The investment holding company added that Messrs. Affin Merchant Bank Berhad, Adviser for the Proposed Acquisition, had on 26 April 2002 made a Requisite Announcement on the proposed acquisition of the entire issued and paid-up share capital of SKKPJ (TM) Sdn Bhd (SKKPJ) from the Vendors of SKKPJ for a total purchase consideration of RM486.827 million to be satisfied by the issuance of shares and other financial instrument which is conditional upon a proposed debt restructuring of Aokam Group, essentially to address the PN 4 condition of Aokam. In addition to the above, Affin Merchant will be applying to the Kuala Lumpur Stock Exchange for an extension of time to submit the necessary documents to the regulatory bodies in accordance to Paragraph 5.1(b) of the PN 4 of the Listing Requirements. Notwithstanding the above, the Company expects to make the application to the relevant regulatory authorities in relation to the Corporate Proposals and Waiver from a Mandatory General Offer by the Vendors of SKKPJ within six months from the date of the Requisitie Announcement. Aokam Perdana expects to complete the Corporate Proposals by the end of year 2002. In April, Aokam said it has defaulted in the settlement of two term loan facilities granted by Credit Suisse First Boston (Hong Kong) Ltd (CSFB), a substantial shareholder of Aokam, totaling RM51.5 million due to its inability to implement a proposed rights issue and special issue under weak timber market. Kuala Lumpurs' investment holding group Aokam Perdana Berhad provides management services, general trading, and manufacturing and marketing of sawn timber, moulded timber, veneer, plywood, doors and related products. DATAPREP HOLDINGS: Awaits KLSE Listing Approval ----------------------------------------------- Further to our announcements dated 1 April 2002 and 2 April 2002, Arab-Malaysian Merchant Bank Berhad wishes to announce, on behalf of the Board of Directors of Dataprep Holdings Berhad, that pursuant to the Capital Reduction and Consolidation exercise of the Company, the trading of Dataprep's shares has been suspended on 15 April 2002 and the book closure for the Capital Reduction and Consolidation has taken effect on 19 April 2002. As advised by the Kuala Lumpur Stock Exchange (KLSE), the requotation of the Dataprep's shares will take effect after the book closure date for the offer for sale of rights to allotment of up to 13,093,340 Warrants by VXL Holdings Sdn Bhd to the shareholders of Dataprep. Further to the above, the Company is awaiting the KLSE's approval for the listing of and quotation for the new securities to be issued pursuant to the Restructuring Scheme and the remaining proposals within the Restructuring Scheme will be implemented after the said approval is procured. DEWINA BERHAD: Entitlement Date Set on May 7 -------------------------------------------- Reference is made to the announcements made on 21 July 2001 and 1 April 2002 by Arab-Malaysian Merchant Bank Berhad on behalf of Dewina Berhad Group with regards to the Company's plan to regularize its financial condition. In compliance with Practice Note No. 4/2001 of the Kuala Lumpur Stock Exchange Listing Requirements, Arab-Malaysian wishes to inform that the Company had, on 16 April 2002, announced the Notice of Book Closure for the Company's rights issue with warrants, whereby the entitlement date has been fixed on 7 May 2002. An abridged prospectus in relation to the rights issue with warrants will be issued within five market days after the Entitlement Date. Further to that, Arab-Malaysian had, on 17 April 2002, announced that Puncak Sabit Sdn Bhd and Dewina have agreed to extend the effectiveness of MTD Prime Definitive Agreement from 19 April 2002 to 30 June 2002, or such other date as the aforementioned parties may subsequently agree upon in writing. Dewina, on 16 April 2002, had also agreed with Haji Ibrahim bin Haji Ahmad and Dewina Holdings Sdn Bhd to extend the effectiveness of Dewina Subscription Definitive Agreement from 19 April 2002 to 30 June 2002, or such other date as the aforementioned parties may subsequently agree upon in writing. GLOBAL CARRIERS: Awaits Development of Proposals ------------------------------------------------ The Board of Directors of Global Carriers Berhad wishes to advise that apart from the announcement made by the company on 23 April 2002 on the outcome of the creditors' meetings held on 18 April 2002, there has been no further development on the revised scenario to the Proposed Composite Scheme, the Proposed BSNCL Settlement Scheme and the Proposed Non-Financial Creditors Settlement Scheme. Global Carriers said it plans to regularize its financial condition pursuant to Practice Note No. 4/2001 of the Revamped Listing Requirements of the Kuala Lumpur Stock Exchange. The company provides shipping freight services, shipping management services, shipping agency services and property investment and management. LION GROUP: Court Orders November Meeting for GWRS -------------------------------------------------- Lion Corporation Berhad (LCB), Lion Land Berhad (LLB) and Amsteel Corporation Berhad (ACB) wish to announce that the High Court has on 2 May 2002 granted an order for the Companies and certain of their subsidiaries to convene meetings within a period of six months from 2 May 2002. Purpose of the meeting is the approval of the scheme of compromise and arrangement proposed to be made between each of the Scheme Companies and their respective non-financial institution and/or trade creditors for the settlement of the debts owing to the Non-FI Creditors to facilitate the implementation of the Proposed Group Wide Restructuring Scheme pursuant to Section 176 subsection (1) of the Companies Act, 1965. LONG HUAT: KLSE Rejects Request to Appoint Monitoring Accountant ---------------------------------------------------------------- Long Huat Group Berhad said that the Kuala Lumpur Stock Exchange has rejected its April 24 application for a waiver to appoint monitoring accountant to regularize the company's financial condition pursuant to paragraph 6.1 of PN4. Accordingly, the Kuala Lumpur investment holding company is required to appoint monitoring accountant within two weeks from the date of the aforesaid letter. However, L.Huat has made an appeal to the Exchange to reconsider their application. The company also wished to announce that it is unable to make its Requisite Announcement by end of April 2002 as targeted. Accordingly, L.Huat had applied to the Exchange to extend the deadline by another three months until 31 July 2002 for L.Huat to make its Requisite Announcement. MBF CAPITAL: Court Approves Transfer of Business to QBEM -------------------------------------------------------- Further to the announcement dated 5 February 2002, Alliance Merchant Bank Berhad, for and on behalf of the Board of Directors of MBf Capital, is pleased to announce that as part of the Merger, the High Court of Malaya in Kuala Lumpur had, via Petition No: D7-26-13-2002, dated 1 April 2002, granted an order pursuant to the Section 128 of the Insurance Act, 1996 confirming the Scheme for transfer of the whole of the general insurance business in Malaysia of MBfI to QBEM with effect from 30 April 2002. PENAS CORPORATION: Prepares Plan to Regularize Finances ------------------------------------------------------- Further to the announcement dated 1 April 2002, on behalf of Penas Corporation Berhad, Arab-Malaysian Merchant Bank Berhad wishes to announce the status of Pencorp's plan to regularize its financial position. There are no major changes to the status of Pencorp's plan to regularize its financial position i.e. the Company is presently in the process of preparing its plan to regularize its financial position. The Penas Group of Companies is involved in residential and commercial building construction, plumbing and sanitary engineering works. Currently, the Group is finalizing a proposed debt restructuring exercise with the view to returning to profitability. The scheme will involve, among others, the injection of businesses and property development projects into the Group. PERDANA INDUSTRI: Says Restructuring Exercise Ongoing ----------------------------------------------------- Further to the announcement made to the Kuala Lumpur Stock Exchange on 1 April 2002, Arab-Malaysian Merchant Bank Berhad, on behalf of PIHB, wishes to announce to the Kuala Lumpur Stock Exchange that the Company is in the midst of implementing the proposed debt and equity restructuring scheme. Save as disclosed, there are no other material developments to the proposed debt and equity restructuring scheme of the Company. PLANTATION & DEVELOPMENT: Continues Regularization Negotiations --------------------------------------------------------------- Further to the announcements made to the Kuala Lumpur Stock Exchange (KLSE) on 1 April 2002 and 11 April 2002, Arab- Malaysian Merchant Bank Berhad, on behalf of Plantation & Development (Malaysia) Berhad, wishes to announce to the KLSE that the Company is still in the midst of negotiating with potential parties to devise a plan to regularize its financial position. Save as disclosed, there are no other material developments in the Company. PLUS BERHAD: To Complete Debt Revamp by End of May -------------------------------------------------- State-run toll road operator Projek Lebuhraya Utama Selatan Sdn Bhd (PLUS) is expected to conclude its debt restructuring by the end of May, paving the way for its planned initial public offering, the Business Times reports, citing unnamed sources. PLUS' debt restructuring includes the partial refinancing of 8.5 billion ringgit worth of bonds issued in 1998 to pay debt owed by its controlling shareholder United Engineers Malaysia Bhd (UEM) and associate Renong Bhd. The company is also expected to embark on debt-to-equity swaps with bondholders and issue restricted shares to reduce debt estimated at MYR4 billion. Recently delisted UEM is expected to start marketing PLUS' planned IPO to institutional investors this week. UEM is expected to issue between 800 million and 900 million PLUS shares priced between MYR2.5 and MYR3 each in the IPO. SRI HARTAMAS: FIC Reverts Approval of Scheme of Arrangement ----------------------------------------------------------- Sri Hartamas Berhad refers to the Practice Note No. 4/2001 on the criteria and obligations pursuant to paragraph 8.14 of the Listing Requirements. The Kuala Lumpur developer hereby set out below the monthly report for the month of April 2002: "Further to the Company's submission of the proposals relating to the Proposed Scheme of Arrangement of SHB to the Securities Commission on 29 September 2001, the Special Administrators of SHB wish to inform that the Securities Commission is still reviewing the proposals. The Special Administrators have accordingly applied to the Exchange on 10 April 2002 to further extend the deadline to obtain the relevant authorities' approval on its plan to regularize its financial condition for another three months from 29 April 2002 to 29 July 2002. In this connection, the Special Administrators wish to advise that the Foreign Investment Committee has reverted with their approval to the said proposed scheme via their letter dated 19 March 2002. TECHNO ASIA: Continues to Default in Payment -------------------------------------------- Mr. Lim Tian Huat and Mr. Chew Cheng Leong of Messrs. Arthur Andersen & Co. were appointed Special Administrators (SAs) over TECASIA and a subsidiary company, Prima Moulds Manufacturing Sdn. Bhd. (PMMSB) on 2 February, 2001. The Special Administrators were subsequently appointed over the following subsidiary companies of TECASIA on 30 April, 2001: 1. Mount Austin Properties Sdn. Bhd.; 2. Cempaka Sepakat Sdn. Bhd.; 3. Ganda Edible Oils Sdn. Bhd.; 4. Litang Plantations Sdn. Bhd.; 5. Wisma Dindings Sdn. Bhd.; and 6. Ganda Plantations (Perak) Sdn. Bhd.; and 7. Techno Asia Venture Capital Sdn. Bhd. Pursuant to the announcement dated 1 April, 2002 in respect of Practice Note 1/2001, TECASIA wishes to announce that the Company and its subsidiaries, namely Mount Austin Properties Sdn. Bhd (Special Administrators Appointed), PMMSB, Prima Moulds Sdn. Bhd. and Ganda Energy Holdings, Inc had continued to default in payments of its loan interest and principal sum owing to several financial institutions. The outstanding amounts as at 31 March 2002 are as follows: Principal (RM) Interest (RM) Total (RM) The Company 464,044,949 251,554,943 715,599,892 The Group 560,449,172 291,761,897 852,211,051 TECASIA is considered as an "affected listed issuer" pursuant to PN4/2001. Further to the measures undertaken as announced on 1 April 2002, the company's proposed restructuring scheme has been submitted to Securities Commission and the Foreign Investment Committee on 29 March 2002 for approval. As at todate, all relevant approvals have yet to be obtained. TECASIA wishes to announce that Pengurusan Danaharta Nasional Berhad has on 30 January, 2002 granted an extension of 12 months to the moratorium previously in effect for TECASIA and PMMSB and seven other subsidiaries pursuant to Section 41(3). The said extension shall expire on 1 February 2003 and 30 April 2002 respectively. The moratorium for the other affected subsidiaries continues to be in effect. All legal actions initiated against TECASIA and other affected subsidiaries will be stayed and any petition for winding-up, or any appointment of a receiver, receiver and manager or provisional liquidator cannot proceed. TECHNOLOGY RESOURCES: Telekom Malaysia Mulling Control Over TRI --------------------------------------------------------------- State-owned Telekom Malaysia Bhd plans to take a controlling stake in Technology Resources Industries Bhd, but its immediate focus is to merge its own cellular unit with that of TRI, the daily Star reports. "We are always looking at opportunities to increase our stake (in TRI) and it can be done in many ways... through the purchase of a block of shares, via on-market and off-market deals," Telekom Chief Executive Md Khir Abdul Rahman said. Khir added that Telekom's immediate plans would be to merge its TM Touch mobile phone unit with that of TRI unit Celcom Sdn Bhd. Telekom has been accumulating TRI shares since last Tuesday after it bought a 13.2 percent stake in TRI from state asset- management agency Pengurusan Danaharta Nasional. The purchase was carried out after TRI chairman and former controlling shareholder Tajudin Ramli missed a crucial debt repayment deadline two weeks ago. Tajudin had pledged his TRI shares as security for loans managed by Danaharta. TECHNOLOGY RESOURCES: Telekom Malaysia Seeks Board Seats -------------------------------------------------------- Telekom Malaysia Bhd will soon seek board representation in Technology Resources Industries Bhd (TRI) after raising its stake in the company to around 20 percent, industry sources told Dow Jones Newswires. "After buying (TRI shares) in the open market, the company is now the biggest shareholder in TRI and the next step is to go into the board and take over (TRI), a source said. Analysts and traders said Telekom Malaysia have further acquired TRI shares, raising its stake to the minimum 20 percent needed in order to seek board representation. State-owned Telekom Malaysia said last Monday it bought a 13 percent stake in TRI for 717.4 million ringgit, bringing to a total of 15.6 percent. Telekom increased its stake further in TRI the next day and is expected to buy more TRI shares in coming days, sources said. UNIPHOENIX CORPORATION: SC Examines Restructuring Scheme -------------------------------------------------------- Pursuant to the Paragraph 4.1(b) of Practice Note 4/2001 and our announcement dated 31 December 2001, the Company wishes to announce to the Exchange that our application in relation to the Proposed Restructuring Scheme is still under consideration by the Securities Commission. ZAITUN BERHAD: Seeks Two Months Requisite Announcement Extension ---------------------------------------------------------------- Zaitun Berhad wishes to announce that the extension granted by the Exchange for period of two months from 1 March 2002 to 30 April 2002 to enable the Company to announce its Requisite Announcement to the Exchange for public release, has since lapsed. In this connection, the Company had on 23 April 2002 write to KLSE seeking indulgence of time from the KLSE to make the its Requisite Announcement and approval of the Exchange for a further extension of time for an additional two (2) months from 1 May 2002 to 30 June 2002 in order to make the Requisite Announcement. The Group's core business consists of the manufacturing and marketing of toiletries, cosmetics and food products under its own brand name of "Zaitun". The Group is the pioneer producer and the market leader for toiletries and cosmetic products in the Muslim market segment. The Group's products mainly cater to Muslim men and women with household incomes of RM500 and above. The products are also exported to countries such as Brunei, Singapore, Indonesia and China. In January 2001, the Company had announced its proposal to undertake a comprehensive fund raising exercise, including a rights issue, aimed at restoring the financial health of the Group. The Company subsequently had to abort the exercise owing to the prevailing market conditions. Nevertheless, the Board continues in its effort to devise another workable financial plan to strengthen the Group's financial position. ===================== P H I L I P P I N E S ===================== METRO PACIFIC: Seeks for First e-Bank Buyer ------------------------------------------- The Metro Pacific-owned First e-Bank, formerly the PDCP Bank, is looking for a buyer and has asked help from the Bangko Sentral ng Pilipinas (Central Bank of the Philippines) and the Philippine Deposit Insurance Corp. (PDIC) to look for interested investors, reports the Philippine Star. According to PDIC president Norberto Nazareno, the thrift bank asked the PDIC for help in finding a buyer but he insisted that it is not looking for a "white knight." Banks that approach either the BSP or the PDIC for assistance are normally in deep trouble by the time they seek assistance. "The bank approached us to see what incentives the PDIC as well as the BSP could provide," Nazareno said. According to an industry source, Metro Pacific Group has been trying to sell the bank for four years now because it wants to liquidate some of its investments. PDCP was acquired by the Metro Pacific Group in 1992 when it was converted into a development bank and became known as PDCP Bank. It became the First e-bank in 2000 as it moved into virtual banking and began offering an extensive line of Internet-based services. The First e-bank started offering the electronic collection and remittance system (ECR or CashNet), the first and only system that enables the bank to collect high volume bills payments over a wide geographical area from the subscribers of its client company, reconcile all transactions and electronically remit to its client company within the same day. It also offers the ATM prepaid card payment system that allows BancNet cardholders to transact cellular phone card PINs from specially designed First e-bank ATMs, and a mobile banking service offered in partnership with a local telecommunications company, Smart Communications, Inc. The system allows its clients to avail of all ATM functions through the Smart GSM phones. Metro Pacific Corp has debt worth P12 billion, P7 billion of which consists of local debts. The remainder is debts to Hong Kong-based parent firm First Pacific Co. Ltd. MPC has about 18 creditors. Among the biggest are Metropolitan Bank and Trust Co. and the Social Security System with exposures of two billion pesos and 1.5 billion pesos, respectively. REYNOLDS PHILIPPINES: Expects Return to Profit in 2003 ------------------------------------------------------ Aluminum products maker Reynolds Philippines Corp. expects to return to profitability in 2003 with the restructuring of its 3 billion pesos in debt and capacity expansion this year, Dow Jones Newswires reports. Reynolds President Jaime Gonzales said the company is confident it can secure creditors' approval for its rehabilitation program. State-owned Land Bank of the Philippines, which accounts for 52 percent of its total debt has already given its nod to its debt- restructuring proposal. Metropolitan Bank & Trust Co., which accounts for another 12 percent of Reynolds' debt, is expected to agree to the proposal shortly. Under the restructuring plan, the secured creditors will not foreclose the mortgaged assets and extend the repayment period to eight years. Only 700 million pesos of Reynolds' total loans are secured. Unsecured creditors will have to convert their loans to equity in Reynolds to trim its debt load to a level that can be serviced by its cash flow. The debt-to-equity swap will result in a 67 percent dilution for existing shareholders. Gonzales said the company plans to tap a new 400 million pesos credit line arranged by its financial adviser, PentaCapital Investment Corp., to finance its capital requirements. He said around PHP60 million will be spent for capacity expansion, which will allow Reynolds to service demand from exporters. "Assuming the restructuring plan is approved, we have one year to work on it to reach our sales projections of 1.4 billion pesos to 2 billion pesos a year," Gonzales said. ================= S I N G A P O R E ================= CAPITALAND LTD: Directors Give Nod on Resolutions ------------------------------------------------- The Board of Directors of CapitaLand Limited wishes to announce that: (a) at the Annual General Meeting (AGM) of the Company held on 2 May 2002, all the resolutions on the items of ordinary and special business as set out in the Notice of AGM dated 13 March 2002, and put to the meeting were duly passed; and (b) at the Extraordinary General Meeting (EGM) of the Company held on 2 May 2002, all the resolutions as set out in the Notice of EGM dated 10 April 2002, and put to the meeting as ordinary and special resolutions were duly passed. ST ASSEMBLY: First-Quarter Loss Widens to US$26.6M -------------------------------------------------- St Assembly Test Services Ltd, Asia's second largest tester of microchips, racked up losses of US$26.6 million for its first quarter ended March, the Business Times reported. Stats, which has reported losses for five consecutive quarters, said first quarter sales this year rose 16.2 percent to US$39.4 million over the previous quarter. The group's loss per American Depository Share (ADS) also widened to US27 cents, compared with a loss per ADS of US23 cents reported in the first quarter of 2001. Chief financial officer Tan Lay Koon said Stats does not "expect to be profitable although we continue to expect improvement in operating margins in the second quarter." ************ 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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