/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/020627.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, June 27, 2002, Vol. 5, No. 126 Headlines A U S T R A L I A AEROSONDE HOLDINGS: Sells Unit to Meet Convertible Note Due BALLARAT GOLDFIELDS: European Unit Receives Court Verdict BO LONG: Receivership Extended in Investment Scheme CDK TECTONICS: Posts Reduced Debt, Working Capital Notice HARRIS SCARFE: Former CFO Sentenced to Six Years TASSAL LIMITED: KMC Appointed as Receivers, Managers LAWLOAN MORTGAGES: Solicitors Demand Investor Contact Ends ONLINE TRADING: Undertakes Capital Reorganization SECURE FINANCE: Director Crane Prevented From Leaving Australia C H I N A & H O N G K O N G 401 HOLDINGS: Seeks Agreement Circular Dispatch Postponement ALL-IN SERVICE: Winding Up Petition Hearing Set CHEERGEM LIMITED: Winding Up Petition Slated for Hearing LEARN ON: Winding Up Petition to be Heard LEE BO: Winding Up Petition Set for Hearing I N D O N E S I A ASTRA INTERNATIONAL: C&C to Buy More Shares ASURANSI JIWA: State Probes Judges Deciding Bankruptcy Case SINAR MAS: Likely to Miss June 30 Debt Repayment Deadline J A P A N AIOI INSURANCE: IAG Denies Casualty Insurance Venture HOKKAIDO INTERNATIONAL: Enters Alliance Talks With ANA IZUMI CO: Considers Niko Niko Do to Manage 10 Outlets FURUKAWA ELECTRIC: Moody's Review Ratings for Possible Downgrade MIZUHO HOLDINGS: Apologizes for Computer Failure OKI ELECTRIC: R&I Downgrades Rating to BB+, a-3 K O R E A BNG STEEL: Facing Strikes Threat DAEWOO ENGINEERING: Enters Agreement With KOGAS HYNIX SEMICONDUCTOR: Creditors Suffer W136B Loss HYUNDAI MOTOR: Reaches Tentative Deal With Union HYUNDAI OILBANK: Aims to Reduce Staff as Part of Restructuring INI STEEL: Selling $120M in GDRs to Pay Debt M A L A Y S I A EPE POWER: Creditors Request 20 Percent Haircut HUME INDUSTRIES: Philippine Registrar Strikes Off Indirect Unit LION CORP.: Non-Executive Chee Kuon Resigns From Board PANGLOBAL BERHAD: Discloses Timber Production Figures PASARAYA HIONG: RAM Assigns BBB3/P3 to CP/MTN RASHID HUSSAIN: Conditional Bank Utama SPA Extended One Month RASHID HUSSAIN: Proposes Trust Deed Amendment, Bonds Redemption SELOGA HOLDINGS: Seeks Regularization Plan Time Extension SPORTMA CORPORATION: Provides Defaulted Payment Update TECHNOLOGY RESOURCES: TM Cellular Acquisition Rumor Untrue TELEKOM MALAYSIA: Clarifies Media Report Re Loss Making Unit P H I L I P P I N E S BENPRES HOLDINGS: Unable to Pay Coupon Due on June 17, 19 BENPRES HOLDINGS: Clarifies Business World Article NATIONAL BANK: Shareholders Approve Debt-to-Equity Swap NATIONAL POWER: US$500M Bond Issue Shortlists Investment Banks PHILIPPINE AIRLINES: Projects Modest Gains in 2002 PHILIPPINE LONG: JG Summit Reiterates Bid Non-Participation S I N G A P O R E ASIA PULP: Creditors File Request for Judicial Management INTRACO LIMITED: Unit Enters Voluntary Liquidation NATSTEEL LTD: Disposes of NBL Interest OAKWELL ENGINEERING: Issues Debt Restructuring Scheme Status T H A I L A N D CHRISTIANI & NIELSEN: Court Accepts Reorganization Petition DATAMAT PUBLIC: Debt Restructuring Talks With Creditors Ongoing DATAMAT PUBLIC: SET Lifts `H' Sign ITALIAN-THAI: Registered Paid-up Capital at Bt3,738,678,180 THAI IDENTITY: Files Business Reorganization Petition * DebtTraders Real-Time Bond Pricing - - - - - - - - ================= A U S T R A L I A ================= AEROSONDE HOLDINGS: Sells Unit to Meet Convertible Note Due ----------------------------------------------------------- The Board of Directors of Aerosonde Holdings Limited advised Wednesday that Aerosonde has entered into an Agreement for the sale of the subsidiary, Aerosonde Limited (AEL), to an Investor Group which includes a syndicate led by Dr G Holland, the managing director of AEL, and Saab Systems Pty Ltd. The transaction is subject to Aerosonde shareholder approval. The transaction will allow Aerosonde to meet its convertible note obligations with Tomorrow Holdings Pty Limited. The Board anticipates that a meeting of shareholders will be convened in mid August to consider the transaction for approval. Transaction approval will result in Aerosonde ceasing its UAV aircraft operations and will require a change of its name. The Board also announces the resignation of Dr G Holland from the Board of Aerosonde and the appointment of Mr Colin Cookes and Mr Andrew Cookes as new Directors. The Board will keep the market informed of the status of these matters. BALLARAT GOLDFIELDS: European Unit Receives Court Verdict --------------------------------------------------------- Ballarat Goldfields NL subsidiary Oztrak Europe GmbH has received the Appeal Court's verdict from Germany. Oztrak Europe has been awarded the full amount claimed and the defendant's counter claims have been rejected. Oztrak Europe is now entitled to commence recovery of the award, estimated to be approximately $200,000 (subject to exchange rate movements), including interest. The Appeals Court has held over release of its verdict in the case involving Oztrak Group Pty Ltd until 24 July 2002. Oztrak Group continues to fully expect the whole amount claimed, estimated to be approximately $2 million, to be awarded to it BO LONG: Receivership Extended in Investment Scheme --------------------------------------------------- The Supreme Court of Queensland on Tuesday issued further orders appointing Maree Ann Henry and Grant Dene Sparks of Sims Lockwood, Brisbane, as joint receiver and manager to the property of: * Bo Long International Investment Group Pty Ltd; * China Travel (Australia) Pty Ltd; and * Donna Tung Sing Ho. The Supreme Court granted the orders by consent, following an earlier application in respect to three other companies and three other members of the Ho family, made by the Australian Securities and Investments Commission (ASIC) on 3 January 2002 after investors complained. ASIC found that approximately $6.7 million in investor funds was paid to the Bo Long companies between August 1997 and January 2001, allegedly to assist mainland China with various infrastructure projects such as the supply of gas meters and electronic police monitoring devices. There was no managed investment scheme registered in Australia by any of the Bo Long companies referred to above. The orders restrain the above companies from operating any managed investment scheme that must be registered under the law, carrying on a securities or investment advice business or disposing or dealing with certain funds, assets and real property. ASIC's investigation is ongoing. CDK TECTONICS: Posts Reduced Debt, Working Capital Notice --------------------------------------------------------- CDK Tectonics Limited issued this notice on Wednesday at the Australia Stock Exchange: APPLICATION FOR QUOTATION OF ADDITIONAL SECURITIES AND AGREEMENT Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public. Introduced 1/7/96. Origin Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000. Name of Entity CDK Tectonics Limited ABN 053 688 065 We (the entity) give ASX the following information. PART 1 - ALL ISSUES You must complete the relevant sections (attach sheets if there is not enough space). 1. Class of securities issued Ordinary shares or to be issued 2. Number of securities issued 11,600,000 or to be issued (if known) or maximum number which may be issued 3. Principal terms of the securities Fully paid (eg, if options, exercise price and expiry date; if partly paid securities, the amount outstanding and due dates for payment; if convertible securities, the conversion price and dates for conversion) 4. Do the securities rank equally Yes in all respects from the date of allotment with an existing class of quoted securities If the additional securities do not rank equally, please state: * the date from which they do * the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment * the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 5. Issue price or consideration $4,002,000.00 6. Purpose of the issue (if Reduce debt and provide issued as consideration for working capital the acquisition of assets, clearly identify those assets) 7. Dates of entering securities 25/06/2002 into uncertified holdings or dispatch of certificates NUMBER CLASS 8. Number and class of all 23,200,000 Ordinary shares securities quoted on ASX (including the securities in clause 2 if applicable) NUMBER CLASS 9. Number and class of all Nil securities not quoted on ASX (including the securities in clause 2 if applicable) 10.Dividend policy (in the case Distribution of not less of a trust, distribution than 50% of available policy) on the increased profits capital (interests) PART 2 - BONUS ISSUE OR PRO RATA ISSUE Items 11 to 33 are Not Applicable PART 3 - QUOTATION OF SECURITIES You need only complete this section if you are applying for quotation of securities 34. Type of securities (tick one) (a) x Securities described in Part 1 (b) All other securities Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities Entities that have Ticked Box 34(a) Additional Securities Forming a New Class of Securities (If the additional securities do not form a new class, go to 43) Tick to indicate you are providing the information or documents 35. x If the securities are equity securities, the names of the 20 largest holders of the additional securities, and the number and percentage of additional securities held by those holders Vizotron Pty Ltd 11,600,000 100% 36. x If the securities are equity securities, a distribution schedule of the additional securities setting out the number of holders in the categories 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 - and over 1 37. A copy of any trust deed for the additional securities Nil (now go to 43) Entities that have Ticked Box 34 (b) Items 38 to 42 are Not Applicable ALL ENTITIES Fees 43. Payment method (tick one) Cheque attached Electronic payment made Note: Payment may be made electronically if Appendix 3B is given to ASX electronically at the same time. Periodic payment as agreed with the home branch has been Arranged Note: Arrangements can be made for employee incentive schemes that involve frequent issues of securities. QUOTATION AGREEMENT 1. Quotation of our additional securities is in ASX's absolute discretion. ASX may quote the securities on any conditions it decides. 2. We warrant the following to ASX. * The issue of the securities to be quoted complies with the law and is not for an illegal purpose. * There is no reason why those securities should not be granted quotation. * An offer of the securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act. * Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any securities to be quoted and that no-one has any right to return any securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the securities be quoted. * We warrant that if confirmation is required under section 1017F of the Corporations Act in relation to the securities to be quoted, it has been provided at the time that we request that the securities be quoted. * If we are a trust, we warrant that no person has the right to return the securities to be quoted under section 1019B of the Corporations Act at the time that we request that the securities be quoted. 3. We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement. 4. We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before quotation of the securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete. HARRIS SCARFE: Former CFO Sentenced to Six Years ------------------------------------------------ Mr David Knott, Chairman of the Australian Securities and Investments Commission (ASIC) announced on Wednesday that Mr Alan Hodgson, the former Chief Financial Officer of Harris Scarfe Holdings Limited, appeared in the Adelaide District Court and was sentenced to six years imprisonment, with a non parole period of three years. In April 2002, Mr Hodgson, of Beaumont, Adelaide, pleaded guilty to a total of 32 charges, including 18 counts of failing to act honestly as an officer of Harris Scarfe Limited, six counts of acting dishonestly as an employee of Harris Scarfe Limited, and eight counts relating to the dissemination of false information to the Australian Stock Exchange. "This is an important outcome in ASIC's ongoing investigation, which reinforces the expectation that directors and company officers will observe proper standards of conduct and will fully disclose the true financial position of their company for the benefit of every investor in the market," said Mr Knott. ASIC alleged that Mr Hodgson procured the making of false entries in the books of account of Harris Scarfe Limited, which had the effect of increasing the level of profits in the consolidated accounts of Harris Scarfe Holdings Limited. The alleged conduct occurred during the period from August 1996 to January 2001 and affected profit figures shown in monthly financial reports to the Board, and the half-year and end-of- year financial reports to the Board and to the Australian Stock Exchange. The Commonwealth Director of Public Prosecutions prosecuted the matter. As ASIC's investigation into Harris Scarfe is continuing, it is not proposed to comment further at this time. TASSAL LIMITED: KMC Appointed as Receivers, Managers ---------------------------------------------------- Korda Mentha & Colleagues (KMC) partners Mark Ryan and Mark Mentha have been appointed receivers and managers of Tassal Limited (TSS) on Wednesday, June 26, 2002. The appointment follows a request from the Board of Directors of Tassal that the ANZ Bank appoint receivers and managers pursuant to ANZ's registered charge over the assets and undertakings of the company. For further inquiries, contact Elissa Bacon and Claire Whitmore of KMC at (03) 62119611 or Michael Smith, 0411 055 306. LAWLOAN MORTGAGES: Solicitors Demand Investor Contact Ends ---------------------------------------------------------- On 21 June 2002, the Australian Securities and Investments Commission (ASIC) successfully applied to the Queensland Supreme Court for orders preventing Lawloan Mortgages Pty Ltd (Lawloan) and their agent, law firm Elliott & Harvey, from further contact with certain investors in the managed investment scheme operated by Lawloan. On June 25, 2002, the matter came before Mr Justice Ambrose in the Queensland Supreme Court. Lawloan, its servants and agents including, Elliot & Harvey, gave an undertaking to the Court not to communicate with investors who are the subject of the nine loans which make up the scheme, without admission of liability. Lawloan had earlier applied to the Court to have itself appointed to wind up the scheme but ASIC intervened and opposed the application. ASIC is seeking the appointment of an independent liquidator to wind up the scheme. The matter has been set down for a hearing over two days, beginning 18 July 2002. ASIC recently became aware that Elliott & Harvey had written to approximately 200 investors in the scheme and provided them with the personal contact details of other investors who may be witnesses for ASIC in the upcoming proceedings. Elliot & Harvey invited the investors to contact these people to discuss their views. The investors named in the letter had not consented to the disclosure of their personal contact details by Lawloan or Elliott & Harvey and did not want to be contacted by the investors. Additionally, Elliot & Harvey allegedly failed to provide the named investors with a copy of the letter that was sent out. ASIC will not comment any further at this time. ONLINE TRADING: Undertakes Capital Reorganization ------------------------------------------------- Online Trading Systems Limited on 30 May 2002 announced that it proposes to undertake a reorganization of the issued capital of the Company subject to shareholder approval at the Company's EGM to be hold on 25 June 2002. The Company proposed to consolidate its share capital by converting every ten (10) shares into one (1) share in the capital of the Company. The Company announced to the market on 25 June 2002 that all resolutions put forward at the EGM were passed on a show of hands. The reorganization of capital timetable for the consolidation is as follows. 25 June 2002 Shareholders' approve 10 to 1 Consolidation 26 June 2002 Trading in reorganized securities commences on a deferred settlement basis (ASX Code: OTSDB) 2 July 2002 Last day for the Company to accept transfers on a pre-organization basis 9 July 2002 Dispatch Date. Deferred settlement market ends 10 July 2002 Normal trading (T+3) commences (ASX code: OTS) 15 July 2002 First settlement date. For further information, see the Company's recent announcements with respect to the consolidation. SECURE FINANCE: Director Crane Prevented From Leaving Australia --------------------------------------------------------------- Mr Phillip Crane, the sole director of Secure Finance & Investments Services (Australia) Pty Ltd (Secure Finance), has been prohibited from leaving Australia without leave of the Supreme Court of Western Australia. Mr Crane was required to surrender his passport to the Court, pending further orders. The Australian Securities and Investments Commission (ASIC) obtained urgent orders from Justice Heenan in the Supreme Court of Western Australia on 20 June 2002. ASIC alleged that Mr Crane had failed to comply with earlier court orders and had failed to cooperate with a receiver and manager appointed to his company. Mr Crane on Wednesday consented to a continuation of the orders prohibiting him from leaving Australia until the conclusion of the receivership. ASIC obtained asset freezing orders on 2 and 3 May 2002, followed by orders on 20 May 2002 appointing Mr Richard Cacho, of Capitol Hill, receiver and manager of the assets of both Secure Finance and Mr Crane. Justice Heenan also ordered Mr Crane to appear before the Supreme Court in order to be examined over the whereabouts of investors funds allegedly transferred to the Republic of Panama and to the Federal Territory of Labuan, Malaysia, as well as other funds that have not been accounted for. ================================ C H I N A & H O N G K O N G ================================ 401 HOLDINGS: Seeks Agreement Circular Dispatch Postponement ------------------------------------------------------------ 401 Holdings Limited, in reference to the Company's announcement dated 4th June, 2002 in relation to the Agreement to be dispatched to shareholders of the Company within 21 days after the publication of the Announcement, which is 26th June, 2002, announced that the Company and the professional parties are still in the process of preparing the financial information to be disclosed in the Circular. Therefore, the Company has applied to the Stock Exchange for a waiver for the delay in time of dispatch of the Circular until 15th July, 2002. On April 11, TCR-AP reported April 1 that the Company is in the course of discussions with remaining creditors relating to the settlement of outstanding obligations in consideration of the issue to some of these creditors of shares in the Company at HK$0.01 each as part of its overall capital restructuring plan. ALL-IN SERVICE: Winding Up Petition Hearing Set ----------------------------------------------- The petition to wind up All-In Service Limited is scheduled to be heard before the High Court of Hong Kong on August 7, 2002 at 10:00 am. The petition was filed with the court on May 2, 2002 by Leung Kwok Ho, Gary of Flat D, 19/F., Tower 2, Ocean Court, No. 3 Praya Road, Aberdeen, Hong Kong. CHEERGEM LIMITED: Winding Up Petition Slated for Hearing -------------------------------------------------------- The petition to wind up Cheergem Limited is scheduled for hearing before the High Court of Hong Kong on July 24, 2002 at 9:30 am The petition was filed with the court on April 16, 2002 by Yau Yuk Kam of Room 1210, Kai Fai House, Choi Wan Estate, Kowloon, Hong Kong. LEARN ON: Winding Up Petition to be Heard ----------------------------------------- The petition to wind up Learn On The Net (Hong Kong) Limited will be heard before the High Court of Hong Kong on August 7, 2002 at 11 am. The petition was filed with the court on may 9, 2002 by Lee Wai Man of Flat G, 2nd Floor, Block 4, Tsui Ning Garden, Tuen Mun, New Territories, Hong Kong. LEE BO: Winding Up Petition Set for Hearing ------------------------------------------- The petition to wind up Lee Bo Construction Company Limited is set for hearing before the High Court of Hong Kong on August 7, 2002 at 10:30 am. The petition was filed with the court on May 6, 2002 by Tang Sai Ping of 3rd Floor, 309C, Lap Shing Building, Ngau Tau Kok, Kwun Tong, Hong Kong. ================= I N D O N E S I A ================= ASTRA INTERNATIONAL: C&C to Buy More Shares ------------------------------------------- Cycle & Carriage (Mauritius) Ltd (C&C), the largest shareholder of PT Astra International, is set to buy all new shares in the company provided a rights issue is initiated, Asia Pulse reported, Astra Finance Director citing John S.A. Slack. Slack added that C&C made that statement at a meeting last March. To date, Astra has not made any decision on a planned rights issue to raise funds to repay a debt maturing in December. Astra is still waiting for the result of a study, which is expected to be completed early next month, conducted by its financial advisor N.M. Rothschild & Sons. Slack believed Astra will seek debt rescheduling and a rights issue to solve its debt problem. ASURANSI JIWA: State Probes Judges Deciding Bankruptcy Case ----------------------------------------------------------- The Indonesian Ministry of Law and Human Rights (IMLHR) has investigated three members of the Jakarta Commercial Court judges - Hasan Basri, Tjahjono, and Christy Purnami Wulan - who decided the bankruptcy of PT Asuransi Jiwa Manulife Indonesia (AJMI), Xinhua New Service and Kompas daily reported Wednesday, citing Indonesian Minister of Law and Human Rights Yusril Ihza Mahendra. "The Ministry of Law and Human Rights has set up a team to investigate the presumed-bribery case and other violations over AJMI involving the three judges," the Minister said, adding that the judges could face administrative penalty if convicted. Just days ago, Indonesian Supreme Court Chief Bagir Manan had also asked the Chief of the Jakarta Court to set up a team for the same purpose. "If the team found indication of criminal actions in the beginning of the investigation, we will hand over this case to the investigating officer and state prosecutors," Mahendra said, indicating to take a stern legal action. The decision to investigate the three judges is not because of the Canadian government's pressure, but due to an irregularity on the bankruptcy decision, Mahendra concluded. SINAR MAS: Likely to Miss June 30 Debt Repayment Deadline --------------------------------------------------------- Sinar Mas Group is likely to miss the US$1.3 billion debt payment on June 30 to the Indonesian Bank Restructuring Agency (IBRA) due to documentation problems, AFX-Asia and Kompas Daily reported Wednesday, citing an unnamed source present at the meeting held on Wednesday. The source said that some required documents, including one detailing the rate of recovery of Sinar Mas debt have not been prepared. To cover the first payment, Sinar Mas will surrender 15 billion shares in PT Bank Internasional Indonesia, with certificates of entitlement going to IBRA and a deposit of US$90 million in cash going to an escrow account, the source added. Last year, Sinar Mas surrendered to IBRA its assets, which is 145 percent of its debt owed to PT Bank Internasional Indonesia, provided that IBRA would act as its guarantor. ========= J A P A N ========= AIOI INSURANCE: IAG Denies Casualty Insurance Venture ----------------------------------------------------- Insurance Australia Group (IAG) denied a report that it has agreed with Aioi Insurance Co. to provide casualty insurance in China and other Asian countries. An IAG spokeswoman in Sydney said the report in the Nihon Keizai Shimbun is not right. "We've signed a research agreement to research opportunities" but haven't agreed on providing insurance with Aioi." The report said that Aioi intends to use the expertise of Australia's largest nonlife-insurance firm to develop new insurance products and offer roadside support services for policyholders involved in car accidents and breakdowns. The Tokyo-based property and casualty insurance Company in May reported consolidated losses in the year ended March 31 due largely to a 138.7 billion yen hit on overseas reinsurance claims, including those related to the September 11 terrorist attacks in the United States. Based in Sydney, IAG rakes in more than 200 billion yen in annual premium income and holds about 8.5 million policies. (M&A REPORTER - ASIA PACIFIC, Vol. No.1, Issue No. 125, June 26, 2002) HOKKAIDO INTERNATIONAL: Enters Alliance Talks With ANA ------------------------------------------------------ All Nippon Airways (ANA) has signed a Memorandum of Understanding (MoU) with Hokkaido International Airlines (widely known as Air Do) to start negotiations on an alliance aimed at cutting costs and improving income, AFX News said Tuesday. Air Do would receive assistance from ANA after it filed for protection from creditors with the Tokyo District Court. Both firms are considering cooperation in reservation systems, aircraft maintenance, parts supply, ground handling services and cabin attendant training. They also plan to offer code sharing on Air Do's Tokyo-Sapporo flights. IZUMI CO: Considers Niko Niko Do to Manage 10 Outlets ----------------------------------------------------- Izumi Co may let Niko Niko Do Co handle more than 10 of its food supermarkets in the future after its rehabilitation, Kyodo News reported Wednesday, citing Izumi President Yasuaki Yamanishi. Yamanishi disclosed the plan during a meeting held in the city of Kumamoto by Niko Niko Do with some 310 suppliers to explain its rehabilitation plan based on cooperation with Izumi. FURUKAWA ELECTRIC: Moody's Review Ratings for Possible Downgrade ---------------------------------------------------------------- Moody's Investors Service on Tuesday has placed the long-term debt ratings of Furukawa Electric Co., Ltd. (Furukawa Electric) under review for possible downgrade. The review also includes the Baa1 Euro MTN Program of its wholly owned subsidiary, Furukawa Finance Netherlands B.V. The review reflects Moody's growing concern that the recovery of the Company's telecommunications business in the US market will be considerably more delayed than previously anticipated, because the end users of its products have dramatically scaled back their capital expenditure. Furukawa Electric purchased the optical fiber solution (OFS) business from Lucent last year, but the operating performance of this segment has been severely affected, mainly due to a sharp decline in demand for optical fibers and cables in the US market. While the Company has been currently implementing the restructuring of its OFS division, Moody's is concerned that the rapid decline in business in the telecommunications sector will curtail internal cash generation more severely than originally anticipated. In its review, Moody's will focus on the potential depth and length of the current weakness in the optical fiber and telecom equipment markets in the US and the possible impact on Furukawa Electric's future cash flow and its capital structure. Moody's will also assess Furukawa Electric's ability to manage earnings pressure through restructuring efforts on its other business divisions, which are impacted by Japan's prolonged weak economic conditions. Furukawa Electric Co., Ltd. headquartered in Tokyo, Japan, is Japan's second-largest electric wire and cable manufacturer and is one of the world's leading manufacturers of optical fiber. Tokyo Maki Hanatate Vice President - Senior Analyst Rating Group Moody's Japan K.K. JOURNALISTS: (03) 5408-4110 SUBSCRIBERS: (03) 5408-4100 MIZUHO HOLDINGS: Apologizes for Computer Failure ------------------------------------------------- Mizuho Holdings Inc Chief Executive Officer (CEO) Terunobu Maeda, together with 19 executives, apologized to shareholders for a massive computer glitch at its two banks namely Mizuho Bank and Mizuho Corporate Bank that occurred on April 1, 2002, Kyodo News said Tuesday. "We have caused trouble by causing a malfunction in the social infrastructure," Maeda said at the meeting held in Tokyo's Chiyoda Ward. TCR-AP reported that Mizuho would slash the wages of 120 senior executives by between 15 and 50 percent for periods of three to six months in the aftermath of the failures that delayed or duplicated millions of money transfers. OKI ELECTRIC: R&I Downgrades Rating to BB+, a-3 ----------------------------------------------- Rating and Investment Information, Inc. (R&I) on June 14 has downgraded Oki Electric Industry Co. Ltd's Long-term Credit Rating; Long-term bonds to BB+ from BBB; Domestic Commercial Paper Program to 1-3 from a-2. ISSUER: Oki Electric Industry Co., Ltd. (TSE Code: 6703) Long-term Credit Rating; Long-term Bonds (9 series) R&I RATING: BB+ (Downgraded from BBB) ISSUE: Domestic Commercial Paper Program R&I CP RATING: a-3 (downgraded from a-2) RATIONALE: Although Oki Electric Industry Co., Ltd., has been implementing a reconstruction plan since 1998, including steps such as withdrawing from some operations and cutting staff, the operational environment has been changing even faster than the effects of these restructuring measures emerge, and there has still been no underlying improvement in the earnings structure. The firm also tabled a consolidated final loss for the March 2002 term, and financial structure is deteriorating. Oki Electric's major earnings source is from switchboards and transmission equipment for NTT, but the NTT group is cutting back on investment in this field and it is hard to predict that it will make a contribution to sales and profits in the future. The market for ATMs for financial institutions is also severe since the sequence of mergers in the sector has resulted in closures of redundant bank branches, so this operation can also not be expected to make the same contribution to profits it did in the past. Although the order-books of the systems engineering division (which mainly deals with computer systems for bank branches) and IP network related businesses are increasing, these operations are small compared to the Company's overall scale and still make little contribution. R&I believes that more time will be needed before growth fields generate copious profits and cash flow and before the Company can convert itself into a structure that can speedily restore equity capital and cut interest bearing debt. R&I RATINGS: ISSUER: Oki Electric Industry Co., Ltd. (TSE Code: 6703) Senior Long-term Credit Rating: BB+ (Downgraded from BBB) ISSUE: Bonds Rated Issue Date Redemption Issue Amount (mn) Unsec. Conv. Bonds No. 17 Sep 30, 1988 Mar 31, 2004 Yen 35,000 Unsec. Str. Bonds No. 21 Apr 24, 1996 Apr 24, 2003 Yen 10,000 Unsec. Str. Bonds No. 22 Aug 21, 1996 Aug 21, 2002 Yen 20,000 Unsec. Str. Bonds No. 23 Oct 25, 1996 Oct 25, 2006 Yen 20,000 Unsec. Str. Bonds No. 24 Aug 15, 1997 Aug 15, 2002 Yen 10,000 Unsec. Str. Bonds No. 25 Nov 28, 1997 Nov 28, 2007 Yen 10,000 Unsec. Str. Bonds No. 26 Dec 29, 1997 Dec 29, 2004 Yen 5,000 Unsec. Str. Bonds No. 28 Apr 15, 1998 Apr 15, 2005 Yen 10,000 Unsec. Str. Bonds No. 29 Jul 30, 1998 Jul 30, 2004 Yen 10,000 ========= K O R E A ========= BNG STEEL: Facing Strikes Threat -------------------------------- BNG Steel may face employee strikes due to an opposition from its labor union concerning its reform plans, Maeil Business said Tuesday. The Company has been in talks with its labor union regarding early retirement of its staff in an effort to restructure its corporate structure, but has been met with fierce opposition from its labor union. If the two parties fail to come to an agreement, strikes will likely begin this week. To find the Company's financial data click on http://www.sammisteel.co.kr/eframe.asp?page_flag=IR DAEWOO ENGINEERING: Enters Agreement With KOGAS ----------------------------------------------- Daewoo Engineering and Construction Company has entered a project management deal for the Cawthorne Channel Associated Gas Gathering (CCAGG) with Korea Gas Corporation (KOGAS), Asia In Focus reported Monday. The gas plant construction project was pursued by the Nigerian government, which wanted to dispose of natural gas from the Cawthorne Channel. Daewoo secured the order for the project, which was placed by Shell Petroleum Development Company (SPDC) of Nigeria. Under the agreement, KOGAS will manage pilot operations and performance tests of six gas disposal plants built in the area and will teach SPDC employees to operate the gas plants. TCR-AP reported that Daewoo Engineering has W1.25 trillion in outstanding debt. HYNIX SEMICONDUCTOR: Creditors Suffer W136B Loss ------------------------------------------------ Creditors of Hynix Semiconductor Inc., namely Kookmin Bank, Shinhan Bank, Kookmin Bank, KorAm Bank, Seoul Bank and Hana Bank, suffers a total loss of 136 billion won after converting debt into equity, the Korea Herald said Wednesday. On June 1, 2002 the creditors swapped their loans for equity at 708 won per share, 3 percent more than the stock's market price of 690 won at the time. The stock has since tumbled to 260 won. Korea Exchange Bank and four other policy banks including Korea Development Bank and Woori Bank stood firm in supporting Hynix. HYUNDAI MOTOR: Reaches Tentative Deal With Union ------------------------------------------------ Hyundai Motor Co has reached a tentative deal with its union on a revised plan to raise wages, one day after workers rejected a similar scheme, Reuters said Tuesday. According to the report union members will vote on the tentative agreement on June 27. Last week, both parties had reached a preliminary agreement on wages and bonuses, averting a planned full strike by Hyundai's 38,000 union members. Partial stoppages have delayed production and delivery of about 27,300 vehicles worth 350 billion won ($289.5 million) as of last week. Meanwhile, Bloomberg reported that Hyundai Motor Co. shares fell as much as 3.6 percent after union members on Friday rejected a wage offer. Analysts also said the stronger won against the U.S. dollar may hurt earnings at South Korea's largest automaker. HYUNDAI OILBANK: Aims to Reduce Staff as Part of Restructuring -------------------------------------------------------------- Hyundai Oilbank Co. and its bankrupt unit Inchon Oil Refinery Co., aims to cut staff as part of their restructuring efforts, Dow Jones reported Tuesday. The Company estimated 10 percent of its staff to apply for voluntary retirement. In 2001, Hyundai Oilbank's net loss widened to 331.3 billion won, versus a loss of 193.1 billion in 2000. However, through some efforts to improve its financial base, the Company incurred a net profit of 35.6 billion won in the first quarter of this year. Hyundai Oilbank's bankrupt unit, Inchon Oil, is in talks with its labor union on staff reductions but no details are available. Inchon Oil was declared bankrupt in September 2001. INI STEEL: Selling $120M in GDRs to Pay Debt -------------------------------------------- South Korea's second-largest steelmaker INI Steel Corp will sell $120 million in global depositary receipts (GDRs) in July to pay back maturing debts. "The board of directors decided on Monday to issue the GDRs on July 5," the steelmaker said in a public notice to the Korea Stock Exchange. ((M&A REPORTER - ASIA PACIFIC, Vol. No.1, Issue No. 125, June 26, 2002). =============== M A L A Y S I A =============== EPE POWER: Creditors Request 20 Percent Haircut ----------------------------------------------- EPE Power Corporation Berhad and its financial advisor Commerce International Merchant Bankers Berhad (CIMB), has met with the lenders on 10 June 2002 and presented them the debt restructuring proposal that was announced to the Exchange on 31 May 2002. During the same meeting, the lenders raised a request for a lower 20%, as opposed to EPE's proposed 30% haircut. EPE Power informed that at this juncture, no outcome has been reached between EPE and the lenders in respect of the scheme and negotiation with the lenders is still currently taking place to resolve the matter. Further announcement to the Exchange will be made upon successful completion of the negotiation with the lenders in respect of the proposed debt-restructuring scheme. HUME INDUSTRIES: Philippine Registrar Strikes Off Indirect Unit --------------------------------------------------------------- Hume Industries (Malaysia) Berhad informed that Hume Readymix Philippines, Inc. (H Readymix), a 52% indirect subsidiary of Hume, which is incorporated in Philippines, has been struck off from the List of Registered Corporations, Philippines and accordingly dissolved. H Readymix has been dormant since its date of incorporation on 17 June 1996 and there is no plan to activate it. LION CORP.: Non-Executive Chee Kuon Resigns From Board ------------------------------------------------------ Lion Corporation Berhad posted this notice: Date of change : 24/06/2002 Type of change : Resignation Boardroom Designation : Alternate Director Directorate : Non Independent & Non Executive Name : Dato' Dr Lee Chee Kuon Age : 56 Nationality : Malaysian Qualifications : Bachelor of Science (Engineering, First Class Honors) degree from University of London, Masters of Business Administration from Cranfield School of Management and Doctorate in Philosophy from University of London Working experience and occupation : He has hands on experience in corporate finance and corporate banking and held the position of Senior Manager with Amanah-Chase Merchant Bank Berhad between 1975 and 1981. He joined Baring Brothers Asia Limited for a year before moving to the Lion Group in 1982. In the 19 years he was with the Lion Group, he has been involved in the business of the Lion Group, both in operation or advisory capacity. He is also the director of Affin-ACF Holdings Berhad, a public listed company and Affin-ACF Finance Berhad, a public company. Directorship of public companies (if any) : Affin-ACF Holdings Berhad, Affin-ACF Finance Berhad, Affin Bank Berhad Family relationship with any director and/or major shareholder of the listed issuer : Nil Details of any interest in the securities of the listed issuer or its subsidiaries : Nil The Company has on 11 June 2002 submitted an application to the Kuala Lumpur Stock Exchange for a further extension of time to 11 September 2002 to obtain all outstanding regulatory approvals for the Proposed Group Wide Restructuring Scheme, TCR-AP reported. PANGLOBAL BERHAD: Discloses Timber Production Figures ----------------------------------------------------- PanGlobal Berhad announced Monday that the production volume of timber of its wholly-owned subsidiary, Limbang Trading (Limbang) Sdn Bhd for the month of May 2002 was 30,918.70 cubic meters. On June 14, TCR-AP reported that the Company received a letter from Securities Commission approving the Proposals except for the Proposed Private Placement, Proposed MPG Disposal and Proposed PGP. PASARAYA HIONG: RAM Assigns BBB3/P3 to CP/MTN --------------------------------------------- Rating Agency Malaysia Berhad (RAM) on Tuesday has assigned respective long- and short-term ratings of BBB3 and P3 to Pasaraya Hiong Kong Sdn Bhd's (PHK) RM120 million Commercial Paper/Medium-Term Notes (2002/2009) (CP/MTN). The proceeds from the CP/MTN will be utilized to refinance PHK's existing term loan facilities, to fund its capital expansion as well as for working capital requirements. Key factors underpinning the ratings include the strategic locations of PHK's current outlets, the stable and non-cyclical demand for its core products - food and refrigerated items - and its stable albeit low margins. PHK operates a chain of supermarket and departmental stores with 5 outlets located at Pudu Plaza, Pearl Point, Paragon Point, Pandan Kapital (all in Kuala Lumpur) and Kompleks Sungai Buloh in Sungai Buloh, Selangor. The financial track record of PHK is characterized by healthy sales growth, with a compounded annual growth rate of more than 20% for the past 4 years and stable profit margins. The positive factors are, however, moderated by the competitive nature of the retail industry, PHK's small market share, low brand awareness, and uncertainty over the sustainability of its sales growth and its ability to manage additional outlets. PHK's gearing is also expected to be high upon the drawdown of the CP/MTN. As part of the conditions for the CP/MTN, PHK is required to open and maintain 4 Designated Accounts to capture its revenue. Three of these accounts will be managed by Malaysian Trustee Berhad to service the interest and principal portions of the CP/MTN. RASHID HUSSAIN: Conditional Bank Utama SPA Extended One Month ------------------------------------------------------------- On behalf of Rashid Hussain Berhad (RHB or the Company), RHB Capital Berhad (RHB Capital) and RHB Sakura Merchant Bankers Berhad (RHB Sakura), AmMerchant Bank Berhad (formerly known as Arab-Malaysian Merchant Bank Berhad), announced in relation to the Proposals that the parties to the conditional sale and purchase agreement dated 20 March 2002 for the Proposed Acquisition of Bank Utama (Conditional Bank Utama SPA), namely Cahya Mata Sarawak Berhad, Utama Banking Group Berhad, RHB and RHB Bank have mutually agreed to vary Clause 4.02(a) of the Conditional Bank Utama SPA to extend the period within which applications to regulatory authorities are to be submitted, from sixty-five (65) business days ending on 26 June 2002, by a further 30 days to 26 July 2002, pending finalization of the due diligence report for the determination of the adjusted net tangible asset value of Bank Utama as at 31 December 2001. Accordingly, the submission of the application to the SC is now expected to be made on or before 26 July 2002. The "Proposals" refers to: * Proposed Acquisition of Bank Utama (Malaysia) Berhad (Bank Utama) by RHB Bank Berhad (RHB Bank); * Proposed Transfer and Acquisition of Rhb Leasing Sdn Bhd and RHB Capital Properties Sdn Bhd; * Proposed Scheme of Arrangement to Privatize RHB Sakura; * Proposed Acquisition and Transfer of Securities and Securities Related Business Entities from RHB Capital to RHB Sakura; * Proposed Voluntary Partial Offer by RHB to Increase its Equity Interest in Shares and Warrants of RHB Capital up to a Maximum of 75%; * Proposed Repayment of Borrowings by RHB and RHB Capital; and * Proposed Employees' Share Option Scheme by RHB RASHID HUSSAIN: Proposes Trust Deed Amendment, Bonds Redemption --------------------------------------------------------------- Rashid Hussain Bhd on 25 June 1997 had issued RM800 Million Nominal Amount of 2.5% Per Annum Redeemable Secured Bonds 1997/2002 (Bonds 97/02) on a "bought deal" basis with 55,038,988 detachable warrants and the total proceeds amounting to RM800 million were utilized to pay part of the bank borrowings obtained by the Company to fund the acquisition of Kwong Yik Bank Berhad. The Bonds 97/02 are constituted by a trust deed dated 25 June 1997, supplemental agreement dated 17 July 1998 and supplemental trust deeds dated 5 September 1998 and 16 September 1998 (collectively referred to as the "Trust Deed") and are redeemable by RHB at their nominal value upon maturity on 25 June 2002. On 20 March 2002, AmMerchant Bank Berhad (formerly known as Arab-Malaysian Merchant Bank Berhad)(AmMerchant Bank) on behalf of RHB Group had announced a proposed group restructuring scheme of the RHB Group (Proposed Group Restructuring Scheme) which includes the proposed repayment of the Bonds 97/02 via the exchange of the same with RM800 million nominal value of RHB Bank Tier II Subordinated Debt (RHB Bank Sub-Debt) to be issued by RHB Bank Berhad (RHB Bank) to RHB pursuant to the proposed acquisition of Bank Utama (Malaysia) Berhad by RHB Bank. AmMerchant Bank, on behalf of RHB, announced that holders with 83.25% of the Bonds 97/02 have on 24 June 2002, approved the proposed amendments to the terms of the Trust Deed (Proposed Amendments) and proposed redemption (Proposed Redemption) of the Bonds 97/02. DETAILS OF THE PROPOSALS The details of the Proposals are as follows: Proposed Amendments a) Maturity date of the Bonds 97/02 The tenure of the Bonds 97/02 is proposed to be extended for a further period of six (6) months, from 25 June 2002 until 25 December 2002 (Extended Period). An extension fee of 0.25% of the aggregate nominal value of the Bonds 97/02 will be paid to the holders of the Bonds 97/02 (Bondholders) on 25 June 2002 in consideration of the Extended Period. b) Interest rate The interest rate on the Bonds 97/02 is proposed to be increased from 2.5% per annum to 8.5% per annum and will be calculated on the aggregate nominal value of the Bonds 97/02 from 25 June 2002 until the date of redemption of the Bonds 97/02. c) Call option It is proposed that as a new term to the Trust Deed, RHB be granted a call option on the Bonds 97/02. The proposed creation of a call option will allow RHB the right, but not the obligation, to redeem the Bonds 97/02 at its nominal value at any time during the Extended Period. Proposed Redemption RHB is proposing to fully redeem the Bonds 97/02 via an exchange of the Bonds 97/02 with the RM800 million RHB Bank Sub-Debt upon exercise of the call option mentioned above or, at expiration of the Extended Period on 25 December 2002, whichever is earlier. The terms of the RHB Bank Sub-Debt can only be finalized closer to the date of its issuance based on market conditions prevailing at that time. Notwithstanding that, the RHB Bank Sub- Debt will have a coupon rate that commensurates with the yields of similarly rated debt instruments at the time of issue to ensure fair pricing and marketability of the RHB Bank Sub-Debt in the secondary market thereafter, subject to a minimum coupon rate of 6.85% per annum based on the existing AA3 rating assigned to the RHB Bank Sub-Debt by Rating Agency Malaysia Berhad. Additionally, Bondholders will be able to obtain a cash exit should they wish to do so given that a number of financial institutions have given their commitments to place out for cash the RHB Bank Sub-Debt on behalf of Bondholders. Please refer to Appendix I and II which is found at http://www.bankrupt.com/misc/TCRAP_RHB0627.docfor details of the revised salient terms of the Bonds 97/02 and indicative terms of the RHB Bank Sub-Debt respectively. RATIONALE FOR THE PROPOSALS Proposed Amendments a) Extension of the Maturity Date of the Bonds 97/02 In view of the various relevant approvals required from the regulatory bodies, RHB expects the Proposed Group Restructuring Scheme to be completed in the fourth quarter of 2002. Accordingly, the RHB Bank Sub-Debt is expected to be issued to RHB only in the fourth quarter of 2002. Therefore, to coincide with the expected issuance date of the RHB Bank Sub-Debt that forms the source of repayment for the Bonds 97/02, RHB is proposing to extend the maturity of the Bonds 97/02 by six (6) months, from 25 June 2002 to 25 December 2002. RHB will pay an extension fee of 0.25% of the aggregate nominal value of the Bonds 97/02 to all the Bondholders on 25 June 2002 in consideration for the extension of the maturity date of the Bonds 97/02 to 25 December 2002. b) Increase in Interest Rate RHB is proposing to increase the interest rate on the Bonds 97/02 from the existing 2.5% per annum to 8.5% per annum for the period from 25 June 2002 until the date of redemption of the Bonds 97/02 to reflect the same yield-to-maturity at the time the Bonds 97/02 were issued. c) Creation of a call option The creation of a call option will allow RHB the flexibility to redeem the Bonds 97/02 at any time prior to the extended maturity date in the event that RHB is able to obtain the requisite approvals earlier than expected and the RHB Bank Sub- Debt is issued to RHB by RHB Bank before the extended maturity date of the Bonds 97/02 of 25 December 2002. Proposed Redemption The redemption of the Bonds 97/02 via an exchange with RM800 million of RHB Bank Sub-Debt to be received by RHB will allow RHB to fully repay and retire the Bonds 97/02. Additionally, Bondholders will be able to obtain a cash exit should they wish to do so given that a number of financial institutions have given their commitment to place out for cash the RHB Bank Sub- Debt on behalf of Bondholders. EFFECTS OF THE PROPOSALS The effects of the Proposals are as follows: a) Share Capital The Proposals will not have any effect on the share capital of RHB. b) Net Tangible Assets The Proposals are not expected to have any material effect on the net tangible assets of RHB. c) Earnings The Proposals are not expected to have any material effect on the earnings of the RHB Group for the financial year ending 30 June 2002. d) Substantial Shareholdings The Proposals will not have any effect on the substantial shareholdings structure of RHB. CONDITIONS OF THE PROPOSALS The Proposals are subject to approvals being obtained from the following parties: a) The Securities Commission (SC); b) Bank Negara Malaysia, which was obtained on 11 June 2002 and 21 June 2002 respectively; and c) Bondholders, which was obtained on 24 June 2002. DIRECTORS' AND/OR SUBSTANTIAL SHAREHOLDERS' INTEREST None of the Directors, and/or substantial shareholders of RHB or persons connected with them have any interest, direct or indirect, in the Proposals. DIRECTORS' STATEMENT The Board of Directors of RHB is of the opinion that the Proposals are in the best interests of the RHB Group and the Bondholders. ADVISER RHB has appointed AmMerchant Bank as the Adviser with respect to the Proposals. ESTIMATED TIME FOR COMPLETION Barring any unforeseen circumstances, the Proposals are expected to be completed by the fourth quarter of 2002. SELOGA HOLDINGS: Seeks Regularization Plan Time Extension --------------------------------------------------------- The Board of Directors of Seloga Holdings Berhad announced that the Company had applied to the Kuala Lumpur Stock Exchange on 24 June 2002 for a further extension of time to 24 July 2002 to make the submission of the regularization plans to the authorities. The extension of time sought by the Company was in view of unexpected delays involved in the finalization of the submission arising from the impact of the winding up petition served on the Company's subsidiary, Seloga Jaya Sdn Bhd as well as the suspension of trading of the Company's share on the KLSE. SPORTMA CORPORATION: Provides Defaulted Payment Update ------------------------------------------------------ Sportma Corporation Berhad (Special Administrators Appointed), as required by the Kuala Lumpur Stock Exchange Practice Note 1/2001, provided an estimate of its default in payment as at 31 May 2002, as set at http://www.bankrupt.com/misc/TCRAP_Sportma0627.xls The total default by Sportma on principal sum plus interest as at 31 May 2002 amounted to RM218,015,443.70. Sportma in respect of revolving credit facilities, trade financing and overdraft utilizes the default payment. Chemitech Industries Sdn Bhd, a wholly-owned subsidiary of Sportma had as at 31 May 2002, defaulted on RM635,502.38, made up of a principal sum of RM470,000.00 plus RM165,502.38 in interest, in respect of its term loan. There is no further new development on the default of payment of the Company, since the previous announcement with regard to this Practice Note. TECHNOLOGY RESOURCES: TM Cellular Acquisition Rumor Untrue ---------------------------------------------------------- Technology Resources Industries Berhad, in reply to a Query Letter by KLSE, reference ID: ZO-020621-57728 pertaining the June 21 Malay Mail article entitled, "TRI Willing to Acquire Loss-Making TM Cellular," advised that the Company has not entered into any sale and purchase agreement to purchase Telekom Malaysia Berhad's (TM) loss-making entity, TM Cellular Sdn Bhd (TMC), as reported. TRI has approached TM and its advisors on several occasions to discuss on the possible merger between TMC and TRI's wholly- owned subsidiary, Celcom (Malaysia) Berhad. Despite the Company's repeated requests for TM to clarify their strategies and the valuation issues, the Company has received no response so far. TELEKOM MALAYSIA: Clarifies Media Report Re Loss Making Unit ------------------------------------------------------------ Telekom Malaysia Berhad, in reference to the Kuala Lumpur Stock Exchange's letter dated 21 June 2002 regarding the following sentence appearing in the Malay Mail, page 23, on Friday, 21 June 2002: "TECHNOLOGY Resources Industries Bhd (TRI) is prepared to sign a sale and purchase (S and P) agreement with Telekom Malaysia Berhad to acquire the loss-making TM Cellular Sdn Bhd ...", clarified that Telekom Malaysia Berhad (TM) has not received any notice from TRI on its preparedness to sign a sale and purchase agreement with TM in relation to the acquisition of TM Cellular Sdn Bhd. However, TM has on 20 June 2002 received a letter from TRI proposing to: (i) commence discussions immediately on the terms of a merger with TM Touch; (ii) exchange information on TM Touch and Celcom to allow for due diligence to take place; and (iii) agree a timetable to announcement. ===================== P H I L I P P I N E S ===================== BENPRES HOLDINGS: Unable to Pay Coupon Due on June 17, 19 --------------------------------------------------------- A filing last week to the Philippine Securities and Exchange Commission said that Benpres Holdings Corporation was not able to make its interest payments on the Long Term Commercial Papers which were due on June 17, 2002. It also stated BHC will not be able to make its interest payments on the 7.875 percent Euronotes that will be due on June 19, 2002. In lieu of such interest payments and any other payments under the Long Term Commercial Papers and Euronotes, BHC has recently made certain proposals in relation to interest payments and principal repayments in accordance with the terms of its Balance Sheet Management Plan. BHC has appointed Credit Suisse First Boston as its financial advisor in connection with the Plan. To see a copy of the Company's report to the Securities and Exchange Commission on this matter, go to http://www.bankrupt.com/misc/TCRAP_Benpress0627.pdf BENPRES HOLDINGS: Clarifies Business World Article -------------------------------------------------- Benpres Holdings Corporation, in reference to the new article entitled "Only six percent of ABS-CBN may be sold" published in the June 17, 2002 issue of the Business World. The article reported, "Benpres Holdings Corp. of the wealthy Lopez family is willing to sell only six percent, at most, of its majority equity in ABS-CBN Broadcasting Corp. This will allow the holding firm to raise funds from the equity sale but at the same time maintain control over the country's biggest radio-television network. Benpres Holdings Corporation (BPC), in its letter dated June 25, 2002, stated that: "We wish to clarify that Benpres is willing to sell its shares in ABS-CBN to cash to service its debts but at the same time maintain control over the company in compliance with various covenants with its creditors." NATIONAL BANK: Shareholders Approve Debt-to-Equity Swap ------------------------------------------------------- The shareholders of Philippine National Bank (PNB) approved, at the June 25 AGM, the swap of some of the bank's P25 billion debt to the government to equity, permitting the government to retake its management control of the bank, AFX News reports. The shareholders also approved the reduction in the par value of the bank's shares to 40 pesos from 60 pesos apiece as part of the debt-to-equity swaps that will assist the bank's rehabilitation. Following the debt swap, the government and former PNB majority owner Lucio Tan will have equal stake of 44.98 percent each. NATIONAL POWER: US$500M Bond Issue Shortlists Investment Banks -------------------------------------------------------------- Seven investment banks have been shortlisted for the National Power Corp's planned US$500 million bond offering, the Philippine Daily Inquirer and AFX News reported on Wednesday. The names of the investment banks are ABN Amro, Credit Suisse First Boston, Deutsche Bank, HSBC, Lehman Brothers, Morgan Stanley and Salomon Smith Barney. PHILIPPINE AIRLINES: Projects Modest Gains in 2002 ------------------------------------------------- Philippine Airlines (PAL) said it would be able to meet its financial targets this year, and even realize a small profit in the fiscal year ending March 2003, the Philippine Star reported Tuesday. PAL President Avelino L. Zapanta said PAL is slowly making progress. He said the airline is eyeing new markets in other destinations, but added that management is cautious not to jump into radical changes in routes, as the airline may not be able to sustain this financially. PAL Vice President David Lim described China as the growth area for the immediate future as far as PAL is concerned. He stressed that the market in Australia is starting to build up, and that Europe is still down the road. PHILIPPINE LONG: JG Summit Reiterates Bid Non-Participation ----------------------------------------------------------- In a disclosure to the Philippine Stock Exchange (PSE), JG Summit Holdings Inc restated it is not part of the Gokongwei Group's joint venture with First Pacific Co Ltd to take control of Philippine Long Distance Telephone Co (PLDT). "Clearly, the reference to JG Summit Holdings (in the First Pacific disclosure) was for purposes of describing the Gokongwei group and not to create, expressly or impliedly, any contractual relationship between JG Summit and First Pacific," JG Summit said. It reiterated First Pacific's counterparty to the deal was the Gokongwei Group. JG Summit also reiterated First Pacific Executive Director Ronald Brown's statement that "there was never any intention that JG Summit itself would be a contracting party to the proposed joint venture." JG Summit, the holding firm of businessman John Gokongwei Jr, issued the disclosure after the Securities and Exchange Commission last week ordered it to explain why it was included in the list of Gokongwei companies participating in the deal, as disclosed by First Pacific to the U.S. SEC. (M&A REPORTER - ASIA PACIFIC, Vol. No.1, Issue No. 125, June 26, 2002) DebtTraders reports that Philippine Long Distance Telephone's 11.375% bond due in 2012 (TELP12PHS1) trades between 98.5 and 99.5. For real-time bond pricing, go to http://www.debttraders.com/price.cfm?dt_sec_ticker=TELP12PHS1 ================= S I N G A P O R E ================= ASIA PULP: Creditors File Request for Judicial Management --------------------------------------------------------- Deutsche Bank, together with BNP Paribas, on Monday filed a petition with the Singapore High Court for judicial management of Asia Pulp & Paper Company Ltd (APP). Deutsche Bank and BNP Paribas are part of a group of creditor banks of the APP Group. To see the full copy of originating petition to the High Court of the Republic of Singapore, go to http://www.bankrupt.com/misc/TCRAP_APP0627.pdf INTRACO LIMITED: Unit Enters Voluntary Liquidation -------------------------------------------------- Intraco Limited said Tuesday that Hi-Den Pte Ltd, a dormant subsidiary held by IntraPage Pte Ltd (under Judicial Management), has been placed in members' voluntary liquidation on 19 June 2002. The voluntary liquidation of the subsidiary will not have any material effect on the net tangible assets and earnings per share of the Intraco Group. NATSTEEL LTD: Disposes of NBL Interest -------------------------------------- A resolution passed at the extraordinary general meeting of NatSteel Ltd concerning the disposal of the entire shareholding interest in the capital of Natsteel Broadway Ltd. NatSteel Ltd announced on Monday: 1. Pursuant to Rule 903(2) of the Listing Manual of the Singapore Exchange Securities Trading Limited, the resolution set out in the Notice of the Extraordinary General Meeting dated 8 June 2002 was put to the Meeting this afternoon and duly passed by the Shareholders of the aforesaid Meeting. 2. The Company has received confirmation that the profits arising from the sale of NatSteel Broadway Ltd (NBL) shares is not taxable to NatSteel Equity V Pte Ltd. NatSteel Equity V Pte Ltd is the investment holding Company that holds 104,389,500 shares or 51.63 percent in NatSteel Broadway Ltd. OAKWELL ENGINEERING: Issues Debt Restructuring Scheme Status ------------------------------------------------------------ Further to the various announcements made by Oakwell Engineering Ltd in respect of the Debt Restructuring Plan under both the Scheme of Arrangement (the Scheme) and the Investment Agreement between the Company and G&W Group (Holdings) Limited (G&W), the Board of Directors of the Company would like to announce on Tuesday that the terms of the Debt Restructuring Plan, as approved previously by the shareholders and secured creditors of the Company, are currently being implemented with the assistance of the Scheme Managers, Messrs Tam Chee Chong, Andrew Grimmett and Ms. Lim Siew Soo, currently of Deloitte & Touche Corporate Finance Pte Ltd. The Effective Date to implement the Debt Restructuring Plan was fixed for 25 June 2002, as approved by the Company's secured creditors. With effect from 25 June 2002, (a) the total current outstanding debt owing to the secured creditors of approximately S$37 million as of 30 July 2001 will be restructured into the Secured Creditor's Restructured Loan and the Investor's Restructured Loan of S$3 million each (S$6 million in total), and the Conversion Debt of the balance amount of approximately S$31 million; (b) both the Conversion Debt and the Investor's Restructured Loan will be assigned to G&W; and (c) the Conversion Debt will be satisfied to the extent of S$31 million by the issuance of 516,666,667 new shares of par value S$0.05 each to G&W and co-investors, whereas the balance of the Conversion Debt in excess of S$31 million will be waived by G&W; G&W also holds a 2-year Call Option allowing it to subscribe up to 100,000,000 new shares of par value S$0.05 each in the Company. The grant of the Call Option to G&W was approved and ratified by shareholders of Oakwell on 28 May 2002. The Call Option is assignable by G&W. The Board of Directors welcomes G&W and the following co- investors who will be substantial shareholders of the Company upon issuance of the new shares in satisfaction of the Conversion Debt : Name of Substantial Shareholders Percentage of enlarged share capital G&W (1) 57.7% Super Coffeemix Manufacturing Ltd 9.6% M&I Electric Industries, Inc. 7.7% (1)Shares are held via G&W's 100% owned subsidiary V. Plus Venture Capital Pte Ltd The Company will now be a subsidiary of G&W and a subsidiary of Koh Brothers Group Ltd, which is the holding Company of G&W. In this respect, the Board is pleased to announce the appointment of Ms Lee Mei Fong , currently the Group Financial Controller of G&W as an executive director of the Company. The particulars of Ms Lee Mei Fong pursuant to the requirements of Clause 902(2) of the SGX Listing Manual will be furnished in a separate announcement. Following the implementation of the Debt Restructuring Plan, the Company will be in a substantially stronger financial position with group shareholders' funds in excess of S$36 million as compared to S$6.9 million before. Together with the network of business contacts brought in by G&W and the other co-investors, the Board of Directors is confident that the Company is on a firmer financial footing to strengthen its core business and improve its performance in the next few years. =============== T H A I L A N D =============== CHRISTIANI & NIELSEN: Court Accepts Reorganization Petition ----------------------------------------------------------- Christiani & Nielsen (Thai) Public Company Limited, in reference to its application to the Central Bankruptcy Court for business reorganization filed on 31st May 2002, informed that the Central Bankruptcy Court issued the order to accept the petition and shall proceed with the inquiry on 1st July 2002 at 9:00 am. Early this month, TCR-AP reported that the Board of Directors Meeting No. 351 on 30th May 2002 unanimously resolved that the Company would file a petition for business reorganization to the Central Bankruptcy Court. Problems arising from the subsidiary, Christiani & Nielsen Limited (CNL), which entered into Administration in the U.K. at the end of year 2000, resulting in significant adverse effects on the Company, such as: 1. The Company must realize the loss in investment capital and money lent to CNL. This had a negative effect on retained earnings such that, according to the law the Company is considered technically insolvent. 2. During 2001-2002 the Company, as the parent company and guarantor, was asked by CNL creditors including Siam Commercial Bank to pay for the guarantee obligations. DATAMAT PUBLIC: Debt Restructuring Talks With Creditors Ongoing --------------------------------------------------------------- Datamat Public Company Limited, in reference to article in Management (Pujadkarn) Newspaper dated 25th of June 2002 regarding the conversion of debts into shares, informed that the company has continued the negotiation with 12 creditors in order to make the final settlement to the previously restructured debts . The company had offered to issue new common shares at Bt3.50 per share as debt repayment. However, the negotiation with creditors has not yet been finalized. DATAMAT PUBLIC: SET Lifts `H' Sign ----------------------------------- Trading of Datamat Public Company Limited stock has been halted because the company was unable to render clarification on the unconfirmed news before the morning trading session of June 25, 2002. Now, the company has disclosed the information through the SET already. Therefore, as from the afternoon trading session of June 25,2002 onwards, the SET shall lift `H' sign from the company's stock. ITALIAN-THAI: Registered Paid-up Capital at Bt3,738,678,180 ----------------------------------------------------------- According to the regulation of the Stock Exchange of Thailand, the company who has entered into business reorganization pursuant to the Bankruptcy Act, B.E. 2483 is required to submit the progress report of the implementation of the Business Reorganization plan. In addition, according to the Business Reorganization plan (the Plan) Section 5.2 (c) and 5.2 (f), the Company shall issue and offer ordinary shares to its creditors whose debt is required to be converted into equity in the amount of 80,000,000 shares and 43,000,000 shares respectively to its creditors under the Business Reorganization plan at the par value of Bt10 of which 73,867,818 shares has been subscribed by the creditors under the Business Reorganization plan. In relation to this, Italian-Thai Development Public Company Limited informed that the Company has finalized the filing amendment to the registered paid-up capital from Bt3,000,000,000 to Bt3,738,678,180 with the Public Company Registrar, Ministry of Commerce on June 24, 2002. THAI IDENTITY: Files Business Reorganization Petition ----------------------------------------------------- Milling company, Thai Identity Sugar Factory Company Limited (DEBTOR)'s Petition for Business Reorganization was filed in the Civil Court then transferred to the Central Bankruptcy Court: Black Case Number For. 5/2541 Red Case Number For. 2/2542 Petitioner: Krung Thai Bank Public Company Limited and Others Planner: South Sathorn Planner Company Limited Debts Owed to the Petitioning Creditor: Bt3,361,186,054.93 and US$5,000,000 Date of Court Acceptance of the Petition: December 30,1998 Date of Examining the Petition: January 20,1999 at 9.00 AM Court Order for Business Reorganization and Appointment of Planner: January 21, 1999 Announcement of Court Order for Business Reorganization and Appointment of the Planner in Matichon Public Company Limited and Siam Rath Company Limited on January 27, 1999 Announcement of Court Order for Business Reorganization and Appointment of the Planner in Government Gazette: on March 2, 1999 Deadline for Creditors to submit Applications for Payment in Business Reorganization: April 2, 1999 Deadline to object to any Application for Payment in Business Reorganization: April 16, 1999 Deadline to submit the plan pursuant to Section 90/43 paragraph 1: June 2, 1999 The next date that the court allows the planner to submit the plan: July 2, 1999 Number of creditors filing Applications for Debt Repayment: 152 Amount of debts: Bt7,025,185,959.63 Number of sugar cane farmers filing Applications for Debt Repayment: 2,683 Amount of debts: Bt104,596,295.91 Total Number of creditors for payment of debts: 2,835 Total Amount of debts: Bt7,129,803,197.06 The extended date for the planner to submit the plan: August 2, 1999 The plan has been submitted. Serimanop (1998) Company Limited is appointed to be a plan administrator. The creditors' meeting in order to consider the plan will be held on September 7, 1999 at 9.30 a.m. at the meeting room, 9th floor the Legal Execution Department building. The creditors' meeting did not pass the special resolution accepting the plan on 7 September 1999. The official receiver reported the result to the court. The Central Bankruptcy Court appointed the date to consider on 22 October 1999 at the Central Bankruptcy Court. The creditor or the debtor should submit any explanation before the appointed date. Set date to hear the court order: October 29,1999 at 1.30 pm at court room1, 15th floor, Central Bankruptcy Court Court ordered deadline for Business Reorganization: October 29, 1999 Contact: Ms. Rattanawadee, Tel. 6792511 * DebtTraders Real-Time Bond Pricing ---------------------------------- Issuer Coupon Maturity Bid - Ask Weekly change ------ ------ -------- --------- ------------- Asia Pulp & Paper FRN due 2001 11 - 13 0 Asia Pulp & Paper 11.75% due 2005 29 - 30 -1 APP China 14.0% due 2010 24 - 26 0 Asia Global Crossing 13.375% due 2006 20 - 22 0 Bayan Telecom 13.5% due 2006 20.5 - 22.5 +0.5 Daya Guna Sumudera 10.0% due 2007 3 - 5 +0.5 Hyundai Semiconductor 8.625% due 2007 62 - 70 0 Indah Kiat 11.875% due 2002 32 - 33 0 Indah Kiat 10.0% due 2007 25 - 27 -1 Paiton Energy 9.34% due 2014 65 - 68 0 Tjiwi Kimia 10.0% due 2004 23.5 - 25.5 -1 Zhuahi Highway 11.5% due 2008 28 - 33 0 Bond pricing, appearing in each Thursday's edition of the TCR-AP, is provided by DebtTraders in New York. DebtTraders is a specialist in global high yield securities, providing clients unparalleled services in the identification, assessment, and sourcing of attractive high yield debt investments. For more information on institutional services, contact Scott Johnson at 1-212-247-5300. To view our research and find out about private client accounts, contact Peter Fitzpatrick at 1-212-247-3800. Real-time pricing available at www.debttraders.com S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Asia Pacific is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ USA, and Beard Group, Inc., Washington, DC USA. Lyndsey Resnick, Maria Vyrna Nineza-Merlin, Maria Cristina Pernites-Lao, Editors. Copyright 2002. All rights reserved. ISSN: 1520-9482. 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