/raid1/www/Hosts/bankrupt/TCRAP_Public/020726.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Friday, July 26, 2002, Vol. 5, No. 147
Headlines
A U S T R A L I A
ALLIED CARPET: Ex-Director Sentenced for Fraud
AUSTAR UNITED: Appoints KPMG as New Auditor
CTI COMMUNICATIONS: Issues Change of Director`s Interest Notice
INTERSTATE MORTGAGE: Appoints Receiver to Mortgage Scheme
WESTERN METALS: White Replaces Wrench as Staliari' Alternate
WESTERN METALS: Debt Restructuring Extension Until Today
WJOB PTY: Posts Case Profile
C H I N A & H O N G K O N G
ECOPRO HI-TECH: Incurs HK$67,821M Loss After Tax, MI
GALVAO (INTERNATIONAL): Petition to Wind Up Pending
HANSOM EASTERN: Operations Narrows to HK$72,839M
KEEN SHUN: Winding Up Petition Hearing Set
KUM KONG: Winding Up Petition Slated for Hearing
NAM FONG: Winding Up Sought by China Insurance
NEW WORLD: Enters SPA Agreement With Bing Fu for Working Capital
PEARL GOOD: Faces Winding Up Petition
I N D O N E S I A
FEDERAL INTERNATIONAL: Sets 18-18.5% Bond Issue Interest Rate
* IBRA To Accelerate National Economic Recovery Through PPAK
J A P A N
FUJITSU LTD: Enters Agreement With Veritas
FUJITSU LTD: US Unit Cuts Production, Job Cuts
HITACHI LTD: Integrates Firms, Restructures Equipment Business
HITACHI LTD: Signs Contract to Supply Gas Turbines in Egypt
ITOCHU CORP.: S&P Assigns 'BB+' on Improved Financial Profile
MYCAL CORPORATION: Cutting 10 More Outlets
MITSUBISHI MATERIALS: R&I Downgrades Rating to BBB-
NIPPON TELEGRAPH: Mulls Cutting Stake in AT&T Wireless
NTT DOCOMO: Enters Licensing Agreement With Spanish Firms
WORLDCOM INC: Fitch Downgrades Ratings To 'D'
K O R E A
HYNIX SEMICONDUCTOR: Unveiling Restructuring Plan by July's End
KABOOL LTD: Agrees on Debt-Rescheduling Plan
KOREA ELECTRIC: Selling Bonds Worth $660M
SEOUL BANK: Selects Hana Bank as Prospective Buyer
SHINHAN BANK: Bank Misses Fund-raising Goal
M A L A Y S I A
ESPRIT GROUP: Stay of Proceedings Hearing Adjourned to Aug 19
GEAHIN ENGINEERING: Agreement Negotiation Period Extended
GEAHIN ENGINEERING: Securities Trading Suspended
HOTLINE FURNITURE: Court Orders Loan Settlement With MBB
JUTAJAYA HOLDING: Appealing Court's Decision on Fees Payment
KUANTAN FLOUR: Judgment Hearing Date Yet to be Determined
L&M CORPORATION: SC Junks Proposal; Considers Other Alternative
PAN MALAYSIA: Transfers Share Ownership of Non-Listed Units
PANCARAN IKRAB: Securities Trading Suspended
PANTAI HOLDINGS: Petition Court Hearing Adjourned to November
TAT SANG: Updates Defaulted Banking Facilities Payment Status
UH DOVE: Appoints Tan Ai Tong as Managing Director
P H I L I P P I N E S
NATIONAL BANK: Unveils Improvement in Financial Performance
NATIONAL POWER: Offers Price Incentive Program With Meralco
PHILIPPINE LONG: SEC Seeks JG's Bid Involvement Clarification
PHILIPPINE LONG: First Pac Responds to PLDT's Statements
PHILIPPINE LONG: Clarifies Suit Issue Against First Pac
S I N G A P O R E
DBS GROUP: Turns Over Philippine Ops to SB Equities
FLEXTRONICS INTERNATIONAL: Posts Q1 Net Loss of US$131.2M
SEMBCORP LOGISTICS: Units Enter Voluntary Liquidation
SPINDEX INDUSTRIES: Dissolves Malaysian Unit
T H A I L A N D
NATURAL PARK: Decreases Paid-up, Registered Capital
PREMIER ENTERPRISE: Business Reorganization Petition Filed
SRITHAI SUPERWARE: Posts Board Resolutions Amendments
- - - - - - - -
=================
A U S T R A L I A
=================
ALLIED CARPET: Ex-Director Sentenced for Fraud
----------------------------------------------
Mr David Knott, Chairman of the Australian Securities and
Investments Commission (ASIC) noted Thursday the sentencing of
Mr Michael Frank Simich on 59 fraud-related charges, in the
Perth District Court.
Mr Simich, former director of Allied Carpet Industries Pty Ltd
(Allied), received a head sentence from Chief Judge Hammond of
11 years jail for his part in the promotion and operation of a
ponzi-style investment scheme.
The sentence warranted by his conduct was reduced by the Court
to six years, after taking into account Mr Simich's early plea
of guilty, his co-operation with the scheme liquidators, and his
agreement to co-operate in relation to possible proceedings
against other parties.
On 28 June 2002, Mr Simich pleaded guilty to 50 charges of
fraudulently obtaining funds from investors and 7 charges of
stealing funds obtained from investors. The charges related to a
total amount of $2,774,000.
He also pleaded guilty to two charges of fraudulently obtaining
a temporary overdraft facility of $150,000 and a permanent
facility of $176,000 from the National Australia Bank for
Allied.
Mr Simich obtained investments, from mainly Western Australian
investors, through his company Allied and a partnership company,
International Corporate Carpets. He promised his investors high
returns over short periods, on investments in non-existent
carpet jobs.
Mr Simich operated a ponzi-style investment scheme by using new
investors' funds to repay earlier investors.
Following delays in repayments to some participants in the
scheme, an investor successfully petitioned the Supreme Court of
WA to place Allied into provisional liquidation. The company
subsequently went into full liquidation on 6 December 2000.
The Commonwealth Director of Public Prosecutions prosecuted the
matter.
AUSTAR UNITED: Appoints KPMG as New Auditor
-------------------------------------------
Austar United Communications Limited announced Thursday that it
has appointed KPMG as auditor to the company following the
resignation of Arthur Andersen. The appointment takes effect
from 23 July 2002.
For further information contact: Deanne Weir, Director Legal and
Corporate Affairs, 02 9394 9897
AUSTRALIAN SECURITIES & INVESTMENTS COMMISSION FORM 315
RESIGNATION, REMOVAL OR CESSATION OF AUDITOR
Company Name Austar United Communications Ltd
ACN 087 695 707
Details of company Public Company
Details of
resignation, Notice was received of the resignation of
removal or the auditor/s
cessation Date of receipt of notice of resignation
23/07/2002
Details of Arthur Andersen
resigning 363 George Street
auditors Sydney NSW 2000
CTI COMMUNICATIONS: Issues Change of Director`s Interest Notice
---------------------------------------------------------------
CTI Communications Limited issued this notice:
CHANGE OF DIRECTOR'S INTEREST NOTICE
Name of Company CTI Communications Limited
ABN 45 071 781 363
We (the entity) give the ASX the following information under
listing rule 3.19A.2 and as agent for the director for the
purposes of section 205G of the Corporations Act.
Name of Director Jon O'Callaghan
Date of last notice 06/06/2002
Part 1 - Change of director's relevant interests in securities
Direct or indirect interest Indirect
Nature of indirect interest
(including registered holder) Montt Fiduciary Pty Ltd
Joren Holdings Pty Ltd
Relevant interest under the
circumstances set out in
s608 (1) of the Corporations
Act
Date of change 22/07/2002
No. of securities held prior
to change 1. 850,000
2. 750,000
3. 2,100,000
Class 1. Options expiring
30/06/2006
2. Preference shares
3. Ordinary fully paid shares
Number Acquired 750,000 fully paid ordinary
shares
Number disposed 1. 750,000 preference shares
2. 250,000 ordinary fully
paid shares
Value/consideration 1. Non-cash consideration
2. $12,500.00
No. of securities held after
change 1. 850,000 options
expiring 30/06/2006
2. 2,600,000 fully paid
ordinary shares
Nature of change 1. Conversion of
preference shares
2. Off-market trade
Part 2 - Change of director's relevant interests in contracts
Detail of contract N/A
Nature of direct interest -
Name of registered holder
(if issued securities) -
Date of change -
No. and class of securities to which
interest related prior to change -
Interest Acquired -
Interest disposed -
Value/consideration -
Interest after change -
Wrights Investors' Service reports that at the end of 2001, CTI
Communications had negative working capital, as current
liabilities were A$8.26 million while total current assets were
only A$6.46 million.
INTERSTATE MORTGAGE: Appoints Receiver to Mortgage Scheme
---------------------------------------------------------
The Australian Securities and Investments Commission (ASIC) on
Thursday has appeared in the Supreme Court of New South Wales as
amicus curiae (friend of the Court) in support of an application
by Interstate Mortgage and Investment Pty Ltd (Interstate) to
have a receiver appointed to a managed investment scheme that
was operated by the company.
The partners of the former law firm Halliday & Stainlay to
operate the Scheme used interstate.
On 22 July 2002, Justice Austin made orders for the winding up
of the mortgage loans identified in the application by
Interstate.
Investors were concerned that the appointment of an external
administrator to two of the mortgage loans forming part of the
Scheme would increase the potential capital loss they would
suffer.
The Court ruled that the realization of the securities in these
matters is already a forced realization akin to a mortgagee in
possession sale, and consequently, the appointment of a receiver
to wind up the loans will not expose the investors to any
appreciable additional capital loss.
Earlier, Justice Bergin raised the jurisdictional question of
whether Interstate had standing to make the application to wind
up the Scheme under the section of the Corporations Act which
gives standing to a list of defined persons including 'the
person operating the scheme'. The evidence of Interstate was
that the mortgage loans comprising the Scheme were in default,
and the activities of the company related to realizing the
security rather than conducting an ongoing business.
In his judgment, Justice Austin stated that the natural meaning
of the words 'operating the scheme' is wide enough to encompass
the activity of winding down and realization of security because
that activity is a natural part of the operation of such a
scheme. On this basis, His Honor found that Interstate had
standing to make the application and noted that this was in
accordance with the submissions made by both Interstate and
ASIC.
WESTERN METALS: White Replaces Wrench as Staliari' Alternate
------------------------------------------------------------
Western Metals Limited (ACN 009 150 618) announced Mr David
Wrench resigned as Alternate Director Mr Guido Staliari on 23
July 2002. Effective from 24 July 2002, Mr John White has been
appointed as Alternate Director.
To see a copy of the Director's Interest Notice, go to
http://www.bankrupt.com/misc/TCRAP_WMT0726.pdf
WESTERN METALS: Debt Restructuring Extension Until Today
--------------------------------------------------------
Western Metals Limited announced that all remaining parties to
the Common Term Sheet signed on 15 March 2002 have agreed that
further time is required in order to complete final
documentation for its debt restructuring arrangements and
address logistical issues for execution. An extension from 24
July 2002 to 26 July 2002 has been agreed.
WJOB PTY: Posts Case Profile
----------------------------
PricewaterhouseCoopers posted this case profile:
Territory : Australia
Company Name: WJOB Pty Ltd - Ingleburn
Lead Partner: Phil Carter
Case Manager: Debbie Mills
Date of Appointment: 15 April 2002
Normal Contact : Will Souter
Contact Phone No : (02) 8266 8798
PwC Office
Location: Sydney
PO Box : GPO Box 2650
Street Address: 201 Sussex St
City : SYDNEY
State : NSW
Postcode: 1171
DX : DX 77 Sydney
Phone : (02) 8266 0000
Fax : (02) 8266 5820
Appointer: Commonwealth Bank of Australia Limited
Registered Office of company: c/- Hardwicke Whigham & Driver
P/L, Level 1, 6 Phipps Place, Deakin ACT 2600
Company No / ACN: 086 057 472
Type of Appointment : Receiver and Manager
Lead Partner - Full Name : Philip Patrick Carter
Second Partner - Full Name: Gregory Winfield Hall
Case Information (Last Updated 25/06/2002 03:40:47 PM)
Other Key Information
Report as to Affairs received from directors:
The director has 14 days to lodge with the Receivers and
Managers a Report as to Affairs, unless an extension of time is
granted.
Dates of trading by insolvency practitioner:
The businesses are currently trading from each of the above
state locations.
Background Information
Phil Carter and Greg Hall were appointed as Receivers and
Managers of Everlast Battery Service Pty Ltd (EBS) and WJOB Pty
Ltd (WJOB) on 15 April 2002.
EBS is operating from Fyswick, ACT and Ingleburn, NSW. WJOB is
operating in Sydney, Canberra, Brisbane, Melbourne, Adelaide,
Perth and Hobart.
The primary activity of the businesses is the remanufacture of
damaged bumper bars (plastic and metal) and headlights for sale
to smash repairers. The business also sells genuine and imported
non-genuine bumper bars and headlights.
The Receivers currently intend to continue to trade the business
operations and to offer these businesses for sale as a going
concern. Information is being prepared for potential purchasers
and will be posted in the Businesses for Sale area of
pwcrecovery.com as soon as it becomes available. Potential
purchasers will be able to register on-line to receive the
information.
Current status of assignment and actions required by creditors
All suppliers/creditors will receive correspondence from the
Receivers and Managers relating to procedures for ongoing
trading and the opening of a new account for the Receivers and
Managers. A Receiver and Manager do not have the power to deal
with the claims of unsecured creditors. However, we will invite
unsecured creditors to lodge details of their claims with the
Receivers and Managers who will pass them onto a Liquidator,
should one be appointed.
Next milestone and estimated timetable
The companies' business has been advertised for sale (in whole
or part) and interested parties may register their interest by
visiting the "Business for Sale" area of www.pwcreceovery.com.
================================
C H I N A & H O N G K O N G
================================
ECOPRO HI-TECH: Incurs HK$67,821M Loss After Tax, MI
----------------------------------------------------
Ecopro Hi-Tech Holdings Limited announced on 23 7 2002:
(stock code: 397)
Year end date: 31/3/2002
Currency: HK$
Auditors' Report: Modified
Review of Interim Report by: N/A
(Audited)
(Audited) Last
Current Corresponding
Period Period
from 1/4/2001 from 1/4/2000
to 31/3/2002 to 31/3/2001
('000) ('000)
Turnover : 28,620 13,818
Profit/(Loss) from Operations : (68,061) (78,217)
Finance cost : (208) (417)
Share of Profit/(Loss) of Associates: - (3,891)
Share of Profit/(Loss) of
Jointly Controlled Entities : - -
Profit/(Loss) after Tax & MI : (67,821) (82,506)
% Change over Last Period : N/A
EPS/(LPS)-Basic : (0.97 cent) (1.31
cents)
-Diluted : - -
Extraordinary (ETD) Gain/(Loss) : - -
Profit/(Loss) after ETD Items : (67,821) (82,506)
Final Dividend per Share : NIL NIL
(Specify if with other options) : - -
B/C Dates for Final Dividend : -
Payable Date : -
B/C Dates for (-) General Meeting : -
Other Distribution for Current Period : -
B/C Dates for Other Distribution : -
Remarks:
1. All of the Group's operations are classed as continuing.
2. Loss per share
The calculation of the basic loss per share is based on the net
loss for the year approximately HK$67,821,000 (31 March 2001 -
HK$82,506,000) and on the weighted average of 6,964,211,049 (31
March 2001 - 6,287,651,350) shares in issue during the year.
No diluted loss per share is presented for the years ended 31
March 2001 and 2000 as the exercise of share options and
warrants and the conversion of bonds convertible into shares of
the Company are anti-dilutive.
3. Price of the Bonus Warrants
On 22 November 1999, the Company announced a bonus issue of two
bonus warrants for every five rights shares subscribed for in
the January 2000 Rights Issue. A total of 667,959,840 units of
warrants enabling the holders to subscribe approximately
HK$33,397,992 were therefore issued. Each warrant entitles the
holder thereof to subscribe for one share of the Company at an
initial subscription price of HK$0.05 per share, subject to
adjustments, at any time from the date of issue thereof to 31
December 2001 (both dates inclusive).
During the year, no warrant was exercised to subscribe for new
shares in the Company. As disclosed in the annual report for the
year ended 31 March 2001, the Company had HK$21,667,818.70
outstanding warrants entitling the warrant-holders to subscribe
in cash at any time on or before 31 December 2001 for fully paid
ordinary shares of HK$0.01 each in the Company at the adjusted
subscription price of HK$0.04. The exercise in full of such
warrants would result in the issue of 541,695,467 additional
ordinary shares by the Company.
All of the Company's warrants lapsed on 31 December 2001.
4. Certain comparative figures have been reclassified to conform
with the current year presentation and annual audited financial
statements for the year ended 31 March 2001.
GALVAO (INTERNATIONAL): Petition to Wind Up Pending
---------------------------------------------------
The petition to wind up Galvao (International) Limited will 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 3, 2002
by Industrial and Commercial Bank of China (Asia) Limited of
ICBC Tower, 122-126 Queen's Road Central, Hong Kong.
HANSOM EASTERN: Operations Narrows to HK$72,839M
------------------------------------------------
Hansom Eastern (Holdings) Limited announced on 18 July 2002:
(stock code: 279)
Year end date: 31/3/2002
Currency: HKD
Auditors' Report: Unqualified
Review of Interim Report by: N/A
(Audited)
(Audited) Last
Current Corresponding
Period Period
from 1/4/2001 from 1/4/2000
to 31/3/2002 to 31/3/2001
('000) ('000)
Turnover : 240,683 322,476
Profit/(Loss) from Operations : (72,839) (129,563)
Finance cost : (2,122) (2,936)
Share of Profit/(Loss) of Associates : N/A N/A
Share of Profit/(Loss) of
Jointly Controlled Entities : - (209)
Profit/(Loss) after Tax & MI : (47,675) (84,147)
% Change over Last Period : N/A
EPS/(LPS)-Basic : (2 cents) (11
cents)
-Diluted : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : (47,675) (84,147)
Final Dividend per Share : NIL NIL
(Specify if with other options) : N/A N/A
B/C Dates for Final Dividend : N/A
Payable Date : N/A
B/C Dates for Annual General Meeting : 21/8/2002 to 23/8/2002
bdi.
Other Distribution for Current Period: N/A
B/C Dates for Other Distribution : N/A
Remarks:
1. Analysis of turnover
2002 2001
HK$'000 HK$'000
Continuing operations 89,628 22,470
Discontinued operations 151,055 300,006
------------------------
240,683 322,476
========================
2. Analysis of loss from operations
2002 2001
HK$'000 HK$'000
Continuing operations (49,012) (51,113)
Discontinued operations (12,418) (61,634)
Unallocated corporate expenses (11,409) (16,816)
------------------------
(72,839) (129,563)
=========================
3. Loss from continuing operations has been arrived at
after charging:
2002 2001
HK$'000 HK$'000
Impairment loss recognised in respect of
investment securities (37,000) -
Impairment loss recognized in respect of
properties held for resale (10,000) (40,900)
========================
4. Loss before Taxation & MI has been arrived at after
crediting (charging):
2002 2001
HK$'000 HK$'000
Investment income 653 8,183
Gain on disposal of discontinued
operations 24,525 -
Net gain on disposal of interests
in subsidiaries - 53,573
Gain on transfer of certain property
interests to a jointly controlled
entity - 10,696
Gain on disposal of interest in a
jointly controlled entity - 10,674
Impairment loss recognized in
respect of goodwill arising from
the acquisition of an associate- (48,674)
========================
5. Loss per share
The calculation of the loss per share for the year is based on
the net loss for the year of HK$47,675,000 (2001: HK$84,147,000,
as restated) and on the weighted average number of 2,197,101,754
(2001: 787,944,808 as adjusted) ordinary shares in issue
adjusted for the effect of a change in accounting policy (remark
6 below) and of the Company's rights issue as approved by the
shareholders of the Company on 24th August, 2001.
The adjustment to comparative loss per share is as follows:
Reconciliation of 2001 loss per share:
HK$
Reported figure before adjustment 0.05
Adjustment arising from the change in
accounting policy in respect of the
impairment loss recognized in respect
of goodwill arising from the acquisition
of an associate and the Company's rights issue
0.06
-----
Restated 0.11
=====
No diluted loss per share is presented for the years ended 31st
March, 2002 and 2001 as the exercise and conversion of the share
options and warrants would result in a decrease in the loss per
share for both years.
6. Prior year adjustment
The Group adopted the new Statement of Standard Accounting
Practice 30 "Business combinations" and in accordance with
Interpretation 13 "Goodwill - continuing requirements for
goodwill and negative goodwill previously eliminated against /
credited to reserves", the Group has restated and increased its
previously reported net loss for the year ended 31st March,
2001 by HK$48,674,000 for the impairment loss recognized in
respect of goodwill arising from the acquisition of an associate
during the year ended 31st March, 2001.
7. Certain comparative figures have been reclassified to conform
with the current year's presentation.
KEEN SHUN: Winding Up Petition Hearing Set
------------------------------------------
The petition to wind up Keen Shun Engineering Limited is
scheduled for hearing before the High Court of Hong Kong on
August 28, 2002 at 9:30 am.
The petition was filed with the court on June 6, 2002 by Sit Cho
Hing of Room 3718, Shui Sing House, Tin Shui Estate, Tin Shui
Wai, New Territories, Hong Kong.
KUM KONG: Winding Up Petition Slated for Hearing
-----------------------------------------------
The petition to wind up Kum Kong Technological Industrial
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 3, 2002 by Industrial and Commercial Bank of
China (Asia) Limited of ICBC Tower, 122-126 Queen's Road
Central, Hong Kong.
NAM FONG: Winding Up Sought by China Insurance
----------------------------------------------
China Insurance Group Finance Company Limited is seeking the
winding up of Nam Fong International Holdings Limited. The
petition was filed on June 12, 2001, and will be heard before
the High Court of Hong Kong on September 11, 2001.
China Insurance holds its registered office at 2404, China
Insurance Group Building, 141 Des Voeux Road Central, Hong Kong.
NEW WORLD: Enters SPA Agreement With Bing Fu for Working Capital
----------------------------------------------------------------
The Directors of New World Development Company Limited
announced that the Company and Yue Wah Enterprises Company
Limited, a wholly-owned subsidiary of the Company, entered into
the Sale and Purchase Agreement with Bing Fu Investment Company
Limited, a wholly-owned subsidiary of Chow Tai Fook Enterprises
Limited, on 24th July, 2002.
Pursuant to the Sale and Purchase Agreement, the Company and Yue
Wah respectively agreed to dispose to Bing Fu of 12.5% of the
entire issued share capital of each of Mightypattern Limited and
Waldorf Realty Limited respectively at an aggregate cash
consideration of approximately HK$164 million which will be
adjusted in accordance with the Completion Accounts to be
prepared, finalized and delivered within 3 months after the
Completion Date.
Given Bing Fu is a wholly owned subsidiary of CTF, which is the
controlling shareholder of the Company, the Disposal constitutes
a connected transaction for the Company under the Listing Rules.
As the aggregate consideration of the Disposal is less than the
higher of HK$10 million or 3% of the unaudited consolidated net
tangible asset value of the Group as at 31st December, 2001, the
Disposal is only subject to disclosure by way of this
announcement under Rule 14.25(1) of the Listing Rules. The
Company will include relevant details of the Disposal in its
next published annual report and accounts in accordance with
Rule 14.25(1) of the Listing Rules
The Group is principally engaged in property development,
property investments, hotel and infrastructure investments and
telecommunications business, primarily in Hong Kong and the PRC.
The directors of the Company consider that the disposal of the
12.5% equity interests in the Companies, which are passive
investments of the Group, will enable the Group to focus on its
core business and, at the same time, will enhance the working
capital position of the Group.
Early this month, TCR-AP reported that Fitch Ratings downgraded
Long term Senior Unsecured debt rating of NWI from 'BBB-' (BBB
minus) to 'BB-' (BB minus) and retained it on Rating Watch
Negative.
PEARL GOOD: Faces Winding Up Petition
-------------------------------------
The petition to wind up Pearl Good International Limited is set
for hearing before the High Court of Hong Kong on August 28,
2002 at 9:30 am.
The petition was filed with the court on June 4, 2002 by Bank of
China (Hong Kong) Limited whose registered office is situated at
14th Floor, Bank of China Tower, No. 1 Garden Road, Central,
Hong Kong.
=================
I N D O N E S I A
=================
FEDERAL INTERNATIONAL: Sets 18-18.5% Bond Issue Interest Rate
-------------------------------------------------------------
PT Federal International Finance, the motorcycle financing
subsidiary of PT Astra International, will attach a fixed
interest rate of 18 to 18.5 percent to its Rp200 billion bonds,
which are expected to start trading in September, AFX-Asia
reports, quoting lead underwriter PT Bahana Securities.
"The interest rate range will be between 18.0-18.5 pct," said
Nelwin Aldriansyah, Bahana's Assistant Vice President for
Investment Banking. "We are very optimistic about this issue and
if it's oversubscribed by certain multiples we may increase the
size but it won't be more than Rp250 billion."
He added that under the tentative timetable for the issue, the
bonds, which will be issued in two equal tranches, Series A and
B, will be distributed electronically on Sept 5 and list on the
Surabaya Stock Exchange on Sept 9.
The Series A bonds will pay 12.5 percent of the principal each
quarter starting from the fifth quarter, while the Series B
bonds will pay 50 percent of the principal each year starting
from 2003. Proceeds of the issue will be used to provide
consumer loans for the purchase of motorcycles.
Federal International, which debt to equity ratio is 2.4 times,
has outstanding debts of almost Rp600 billion including Rp260
billion in shareholder loans from Astra.
* IBRA To Accelerate National Economic Recovery Through PPAK
------------------------------------------------------------
The Indonesian Bank Restructuring Agency (IBRA) has announced on
Thursday the PPAK result. As many as 231 investors consists of
121 local and 110 foreign participated in the 2.582 debtors
offered. The total debt amount offered is Rp135.451 trillion.
The investors interested in bidding 1.661 debtors with the total
value Rp111.035 trillion (82%) of principal amount being
offered). From that number Rp52.223 trillion was bid above the
floor price value Rp17.744 trillion (34%). The remain Rp58.812
trillion was bid under the floor price Rp8.4 trillion (14%).
In fact, 67.78% of the investor bid above the floor price and as
many as 32% below the floor price.
In addition, IBRA expects 30% of investor who bid below the
floor price will re-bid. From that, IBRA insist obtaining the
additional income of Rp4 trillion which make the IBRA's total
income of Rp22 trillion and to achieve 2002 budget of Rp42.8
trillion.
The PPAK's outcome will expects to accelerate the real sector
recovery and returning the banking intermediary function by
funding working capital needs.
The recovery rate from investor bid above the floor price reach
as many as 34% of the total principal. This reveal IBRA still
commit to achieve the optimum recovery rate in its asset
disposal program. In other words, IBRA's avoid a fire sale.
The 20 biggest investors who offered the highest bid for 1,661
debtors as follow:
* Bank Mandiri & PT. Anugrah Cipta Investama Consortium
* PT. Danatama Makmur
* PT. Bank Artha Graha
* PT. Bank Mandiri & Jasa Banda Garta Consortium
* Japan Asia Investment Co.Limited (JAIC) - Indonesia
* Multi Sarana Investama Sekuritas
* PT. Agung Sekurities Indonesia
* PT. Bank Mandiri & PT. Mahanusa Securities Consortium
* Verandah International Ltd.
* Asia Capitalindo Securities
* Neo Asia Holding Limited.
* Harita Kencana Securities
* Indo Kapital Securities
* PT. Bank Mandiri & PT. Batavia Prosperindo Sekuritas
Consortium
* PT. Catur Menara Putra
* Maxima Perdana Finance Inc. (represent by Panca Global
Securities)
* Victoria Securities International Limited.
* PT. GMT Aset Manajemen
* PT. Mandari Securities
* Asia Strategic Fund
IBRA will convey the result to investor who achieved or not the
floor price on Thursday 25 July 2002. To investor who determined
as a winner oblige to make first payment as many as 20% from bid
value within 2 (two) working days after the announcement.
For the investor who does not meet the floor price will be given
2 (two) working days to re-submit a new bid. By means, the whole
bid process and PPAK winner determination expect to be
accomplished in the beginning of August 2002.
=========
J A P A N
=========
FUJITSU LTD: Enters Agreement With Veritas
------------------------------------------
Fujitsu Limited and Veritas Software disclosed Wednesday that
they have signed a global cooperative support agreement and a
Veritas EnabledTM Program agreement to deliver combined
solutions and the highest levels of service and support to
customers worldwide. The agreement builds on and consolidates
successful cooperative arrangements that Fujitsu Limited and its
group companies have enjoyed with VERITAS Software.
As part of the agreement, Fujitsu will join the VERITAS Enabled
Program, which provides tools, information and support for
heterogeneous environments, to promote seamless interoperability
of Fujitsu hardware and software with VERITAS Software storage
management solutions. A large number of VERITAS Software
products have already been certified on Fujitsu's enterprise
solutions combining its powerful, highly reliable and scalable
PRIMEPOWER servers and ETERNUS storage systems. PRIMEPOWER
servers are based on SPARC architecture and run the SolarisTM
Operating Environment.
Fujitsu's extensive global enterprise customer base and VERITAS
Software's leadership position in storage management software
creates an ideal partnership for supporting large-scale
customers with operations in many discrete locations. The new
collaboration will enable quicker resolution to cross-platform
issues.
Another important benefit of the closer working relationship
between Fujitsu and VERITAS Software is the establishment of a
global support structure in America, Europe and Asia Pacific.
Such a structure will ensure that VERITAS Software products are
certified on Fujitsu equipment and will enable both parties to
better understand any issues requiring resolution when product
support is required. As a result, customers will achieve faster
installation and higher performance from their combined Fujitsu
and VERITAS Software solutions with high levels of systems
availability and security.
About Fujitsu
Fujitsu is a leading provider of customer-focused IT and
communications solutions for the global marketplace. Pace-
setting technologies, high-reliability/performance computing and
telecommunications platforms, and a worldwide corps of systems
and services experts make Fujitsu uniquely positioned to unleash
the infinite possibilities of the broadband Internet to help its
customers succeed. Headquartered in Tokyo, Fujitsu Limited
(TSE:6702) reported consolidated revenues of 5 trillion yen
(about US$38 billion) for the fiscal year ended March 31, 2002.
For more information, please see: http://www.fujitsu.com/
About VERITAS Software
With 5,700 employees in 36 countries and revenue of $1.5 billion
in 2001, VERITAS Software ranks among the top 10 software
companies in the world. VERITAS Software is the world's leading
storage software Company, providing data protection, storage
management, high availability and disaster recovery software to
86 percent of the Fortune 500.
VERITAS Software's corporate headquarters is located at 350
Ellis Street, Mountain View, CA, 94043, tel: 650-527-8000, fax:
650-527-8050, e-mail:vx-sales@veritas.com, Web
site:www.veritas.com.
Contacts
Toshiaki Koike, Robert Pomeroy
Fujitsu Limited
Public & Investor Relations
Tel: +81-3-3215-5259 (Tokyo)
Fax: +81-3-3216-9365
E-mail: pr@fujitsu.com
FUJITSU LTD: US Unit Cuts Production, Job Cuts
----------------------------------------------
Fujitsu Ltd. will cut production at its US unit Fujitsu Network
Communications Inc. amid slumping system configuration demand,
Bloomberg and Nihon Keizai Newspaper reported Wednesday.
The Company will consider job cuts in the U.S. and U.K and also
trim production of hard disk drives in the Philippines.
Fujitsu posted a record loss in the fiscal year just ended after
paying to shutter unprofitable factories and cut 17,000 jobs.
Fujitsu Network Communications Inc. makes and sells optical
transmission systems.
HITACHI LTD: Integrates Firms, Restructures Equipment Business
--------------------------------------------------------------
Hitachi, Ltd. announced Wednesday the integration of two Hitachi
Group Companies as part of its effort to restructure its
communications equipment business. Hitachi Communication
Systems, Inc. (President: Nobuyoshi Uno) and Hitachi Shonan
Denshi Co., Ltd. (President: Shigetoshi Hiratsuka) will be
merged on October 1, 2002 to form a new Company, Hitachi Hybrid
Networks Co., Ltd.
Earlier this year, Hitachi announced the separation of the
Telecommunication Systems Division from the parent Company and
its integration with Hitachi Telecom Technologies, Ltd.
(President: Yukio Kawamoto), also on October 1, 2002, along with
other restructuring measures to strengthen the Hitachi Group's
communications equipment business.
The latest move is part of the same restructuring drive and is
designed to improve competitiveness through greater economies of
scale and by capturing synergies. The new Company is another
element of the framework Hitachi is assembling to respond to new
markets in the evolving networked society.
Hitachi Hybrid Networks will take over the respective design,
manufacturing and sales operations of Hitachi Communication
Systems and Hitachi Shonan Denshi. The former is involved with
information and telecommunication-related systems and software,
while the latter handles information and telecommunication-
related hardware. By also marrying the communications
software/network technologies and fine-mechanics and electro-
optical technologies of both companies, Hitachi Hybrid Networks
will open up new markets and win new customers in the network
solutions field, developing a solutions business tailored to
regional needs. Some of the key markets include VoIP-related
solutions for communities, network systems for the elderly and
image-based network systems for local governments.
Profile of the New Company:
Company name: Hitachi Hybrid Networks Co., Ltd.
Representative: President Kouji Hirai (Presently Senior Managing
Director, Hitachi Telecom Technologies, Ltd.)
Capital: 0.45 yen billion (Hitachi, Ltd. 76 percent, Chuo Shoji
Co., Ltd. 24 percent)
Head office: 393, Totsuka-cho, Totsuka-ku, Yokohama, Kanagawa
Main business lines:
- Manufacture and sales of network-related products
- Development on consignment of information and communications-
related systems and software
Net sales: Approx. 29.0 billion yen (projected figure for the
fiscal year ending March 31, 2003)
No. of employees: 1,460 (At establishment)
Profiles of Companies to Be Integrated:
Company name: Hitachi Communication Systems, Inc.
Representative: President Nobuyoshi Uno
Capital (Shareholding): 0.3 billion yen (Hitachi, Ltd. 100
percent)
Date established: September 1978
Head office: 180, Totsuka-cho, Totsuka-ku, Yokohama
Main business lines: Design, manufacture and sales of
information and communications software and systems
Net sales: Approx. 13.0 billion yen (Fiscal 2002 est.)
No. of employees: Approx. 940 (At merger)
Company name: Hitachi Shonan Denshi Co., Ltd.
Representative:President Shigetoshi Hiratsuka
Capital (Shareholding): 0.2 billion yen (Hitachi, Ltd. 11
percent, Chuo Shoji Co., Ltd. 89 percent)
Date established: September 1965
Head office: 393, Totsuka-cho, Totsuka-ku, Yokohama
Main business lines: Design, manufacture and sales of
information and communications hardware
Net sales: Approx. 16.0 billion yen (Fiscal 2002 est.)
No. of employees: Approx. 520 (At merger)
Contact:
Hitachi, Ltd.
Chieko Yoda
yoda-chieko@sic.hitachi.co.jp
03-5201-5250
HITACHI LTD: Signs Contract to Supply Gas Turbines in Egypt
-----------------------------------------------------------
Hitachi Ltd and Itochu Corporation signed a contract to supply
five units of gas turbines for an LNG (liquefied natural gas)
terminal under construction in Damietta, Egypt. Joint Venture
Company KJT, which is owned by Kellogg Brown & Root, USA, Japan
Gasoline Corporation, and Tecnicas Reunidas, Spain, awarded the
contract. This terminal will be the first LNG terminal in Egypt.
Although Hitachi has experience in supplying approximately 40
gas turbines both at home and abroad, this order will be the
first to be supplied to the petroleum/gas market.
The H-25 gas turbines in this order will be used to supply
electricity to the Damietta LNG terminal, and their delivery is
expected to take place towards the middle of 2003.
The owner of the LNG terminal is local Company EGPC and the
leading Spanish utility Company, Union Fenosa. The terminal is
being built on the mouth of the Nile, opposite the Mediterranean
shore, and the produced LNG will be supplied to Spain.
Experienced western companies have long dominated the supply of
gas turbines to LNG terminals, and Japanese manufacturers have
had little chance to gain experience in this field. This
particular order has been realized through the best efforts of
both ITOCHU and Hitachi, together with the proven reliability,
economic benefits and maintenance support system of the H-25 gas
turbines.
TCR-AP reported that Hitachi posted consolidated losses of
117.42 billion yen in fiscal 2001. The Company attributed its
result to a sharp decline in global demand for semiconductors
and information technology-related products such as mobile
phones.
ITOCHU CORP.: S&P Assigns 'BB+' on Improved Financial Profile
-------------------------------------------------------------
Standard & Poor's Ratings Services said Thursday that it had
assigned its double-'B'-plus long-term corporate credit rating
to Japanese trading company Itochu Corp. and affirmed its
single-'B' short-term rating on the company based on its
improved capital structure and overall financial profile. The
outlook on the long-term rating is stable.
Itochu's financial profile has improved as a result of the
company's asset restructuring in recent years. In addition, a
public offering implemented in July 2002 has enhanced the
company's capital base. Consequently, Itochu's financial profile
has been strengthened, which will lead to an improvement in its
long-term credit quality.
"We expect that Itochu's funding stability, which is crucial to
a trading firm's operations, will improve as a result of the
capital increase," Standard & Poor's credit analyst Takahiro
Saimen said.
The rating on Itochu also incorporates concerns that
deterioration in the business environment for Japanese trading
companies, such as the global recession and ongoing deflation in
Japan, may add pressure to the industry's credit quality.
Although decreasing, the company's high exposure to the
construction and real estate sectors may also be a potential
drag on its credit quality.
The capital increase is expected to have boosted Itochu's
capital ratio to around 12% from slightly over 10%. Its total
debt to equity ratio is likely to improve from 5.6 times to
about 5 times.
Nevertheless, the IT-related industry, on which Itochu focuses,
is facing global oversupply and a rapid decrease in demand. As a
result of the mediocre profit contribution from IT-related
business, Itochu may not be able to improve its capital base as
quickly as expected.
MYCAL CORPORATION: Cutting 10 More Outlets
------------------------------------------
Supermarket chain Mycal Corp plans to close 10 more stores but
will continue operating 110 remaining branches, Kyodo News said
Thursday.
The failed firm will close four stores by next February and will
decide by November, which other six will be shut down, according
to Aeon Co. President Motoya Okada.
Major retailer Aeon Co is assisting in Mycal's rehabilitation
process.
MITSUBISHI MATERIALS: R&I Downgrades Rating to BBB-
---------------------------------------------------
Rating and Investment Information, Inc. (R&I) last week
downgraded Mitsubishi Materials Long-term Credit Rating to BBB-
from BBB+.
RATIONALE:
Faced with an unexpectedly sharp slump in the semiconductor
market, the silicon operation of Mitsubishi Materials Corp.
posted massive losses in the March 2002 term. The risk of
earnings fluctuations due to the silicon cycle had anyway been
taken into consideration in the rating, but the scale of the
fluctuation has increased and the cycle has shortened, so the
uncertainties are mounting year by year.
In the wafer sector, meanwhile, massive investment is required
on R&D and plant and equipment because of the need to respond to
trends such as larger diameters, greater precision and finer
degrees of smoothness. A slight mistake in the timing of this
investment can cause considerable damage, and this is having a
greater impact on the Company's consolidated performance than
hitherto given the fact that Mitsubishi Materials has used up
much of its resources. As a major conglomerate, the Company is
involved in a wide range of operations, but the risk dispersal
effects are limited and the silicon operation continues to
greatly impact overall performance.
The competitive gap against the sector leader, Shin-Etsu
Semiconductor Co., Ltd., is widening. In January 2002,
Mitsubishi Materials integrated its silicon operations with
those of Sumitomo Metal Industries, Ltd., to ease the transition
to 12-inch wafers, forming a new joint venture Company, Sumitomo
Mitsubishi Silicon Corp. (SUMCO). Even so, competition over
these next generation products is only at the starting line and
it is unclear how competitive SUMCO will be. Another pressing
issue is to rebuild the joint venture's bases in the US, where
losses continue.
Overlapping organizations and functions need to be integrated
and the most effective production, distribution and marketing
systems for the joint venture need to be created. By
transferring the silicon operation to SUMCO as a holding-Company
subsidiary, consolidated assets were reduced by 122.2 billion
yen in the March 2002 term, and interest bearing debt by 63.9
billion yen. On the other hand, Mitsubishi Materials is
guaranteeing debts to a total of 118.2 billion yen for SUMCO,
including funds for the plant and equipment investment on 12-
inch wafers, so the financial burden of this operation is
unchanged. In view of this, Mitsubishi Materials' consolidated
interest bearing debt has increased and its financial structure
has effectively weakened.
The Company tabled a real estate evaluation loss of 29.5 billion
yen on the Osaka Amenity Park project, a rental redevelopment
site, and is also reorganizing unprofitable businesses. This
process is incurring large losses. Although these steps are
essential if the Company is to strengthen its earnings
potential, financial composition has weakened because equity
capital has been drawn down. The Company plans to boost equity
capital through a reassessment of land values and this
will also almost totally eliminate latent profits.
Senior Long-term Credit Rating: BBB-
(Downgraded from (BBB+); Removed from the Rating Monitor scheme)
ISSUE: Bonds Rated Issue Date Redemption Issue Amount (mn)
Unsec. Conv. Bonds No. 2 Oct 20, 1998 Mar 31, 2004 Yen 20,000
Unsec. Conv. Bonds No. 4 Sep 30, 1996 Sep 30, 2005 Yen 50,000
Unsec. Str. Bonds No. 14 Jul 24, 2001 Jul 24, 2008 Yen 15,000
Unsec. Str. Bonds No. 15 Jul 24, 2001 Jul 24, 2006 Yen 15,000
NIPPON TELEGRAPH: Mulls Cutting Stake in AT&T Wireless
------------------------------------------------------
Nippon Telegraph and Telephone Corporation may reduce its 16
percent stake in AT&T Wireless Services after the share price in
the US firm lost some 40 percent since April, Channel News Asia
reported Wednesday.
In 2000, NTT's unit NTT DoCoMo acquired 16 percent stake in AT&T
Wireless for US$9.8 billion.
NTT President Norio Wada said shareholders and investors
worldwide were skeptical about communications companies in light
of the telecom turmoil, and trend is a major blow to the
Company.
NTT DOCOMO: Enters Licensing Agreement With Spanish Firms
---------------------------------------------------------
NTT DoCoMo, Inc., Telefonica Moviles S.A, and Telefonica Moviles
Espana S.A. agreed on Wednesday to launch in 2003 the world's
most popular mobile Internet service known as i-mode(R) in
Spain.
The three parties signed a license agreement under which DoCoMo
will provide patents, know-how and technologies needed for
Telefonica Moviles Espana to offer the i-mode service on its
Global Packet Radio Service (GPRS) network in Spain. Telefonica
Moviles Espana holds the largest share of the Spanish market in
mobile telecoms. The pact will remain valid for five years from
July 24, 2002.
Telefonica Moviles Espana plans to introduce i-mode service in
the first half of 2003 under its conventional mobile internet
service brand name 'e-mocion'. The conventional e-mocion service
currently has 1.5 million active clients among more than four
(4) million registered users, and 250 different content
providers. i-mode based e-mocion subscribers will have fast and
easy access to e-mail and a variety of other online services and
content via mobile phone, as i-mode users do in Japan. Using the
dual-browser handset, i-mode based e-mocion users will be able
to receive content written in either i-mode-compatible HTML or
WML1.X markup languages.
Separately from the i-mode licensing pact, DoCoMo and Telefonica
Moviles S.A. also formally agreed on Wednesday to form a
business and technology alliance in overall mobile
communications. The two companies will share GPRS/SIM card
technologies and know-how, as well as opinions on handset
evolution towards 3G (W-CDMA), mainly through personnel
exchanges. They also will jointly study such possibilities as
implementing international roaming services.
Luis Lada, Telefonica Moviles' chairman and CEO said "the
agreement with NTT DoCoMo will enable the Company to increase
even further its leadership in the area of innovation in Spain
as it will be possible to offer customers the fullest potential
in the multimedia mobile services that i-mode technology
represents. In this way, Telefonica Moviles will further
strengthen the possibilities of e-mocion in Spain, a mobile
internet service access platform that already has four million
registered users and a wide range of services and content."
In Europe, DoCoMo has licensed i-mode technology to KPN Mobile
N.V., E-Plus Mobilfunk GmbH & Co.KG, and Bouygues Telecom S.A.-
in the Netherlands and Belgium, Germany, and France
respectively. Now Spain, another major European market, will
join the list, increasing the worldwide growth of mobile
multimedia services using i-mode technology.
i-mode and FOMA are trademarks or registered trademarks of NTT
DoCoMo, Inc. in Japan and other countries.
About NTT DoCoMo
NTT DoCoMo provides a wide variety of leading-edge mobile
multimedia services. These include i-mode, the world's most
popular mobile internet service, which provides e-mail and
internet access to over 33 million subscribers, and FOMA,
launched in 2001 as the world's first 3G mobile service. In
addition to wholly owned subsidiaries in the United States,
Europe and Brazil, the Company is expanding its global reach
through strategic alliances with mobile and multimedia service
providers in the Asia-Pacific, Europe and North America. The
Company is listed on the Tokyo (9437), London (NDCM), and New
York (DCM) Stock Exchanges. For more information, visit
www.nttdocomo.com.
For further information, please visit the NTT DoCoMo home page
at: www.nttdocomo.com/top.shtml
About Telefonica Moviles S.A.
Telefonica Moviles S.A. is the Company that manages all the
Telefonica Group's cellular telephone assets. It is one of the
world's leading mobile telephony companies, with a presence in
14 countries and a potential market of 514 million inhabitants.
The Company is leader in the growing markets of Spain and Latin
America and is carrying out a strategy of selective expansion in
Europe and the Mediterranean Basin.
About Telefonica Moviles Espana
Telefonica Moviles Espana is the leading market operator in
Spain with more than 17.6 million customers (with a market share
of over 56 percent) and a range of services and data
applications for companies, which use the latest mobile
technology such as GPRS. Telefonica Moviles Espana also has a
UMTS licence.
E-mocion is the access menu to mobile content for Telefonica
Moviles customers, which now has more than four million
registered users, of witch 1.5 million are active clients, and
250 different content providers.
Contact:
NTT DoCoMo
Kenya Nakatsuka
k.nakatsuka@hco.ntt.co.jp
81 (0) 3 5156 1111
WORLDCOM INC: Fitch Downgrades Ratings To 'D'
---------------------------------------------
Fitch Ratings on Monday has downgraded the senior unsecured debt
ratings for WorldCom, Inc. (WorldCom) to 'D' from 'C'. The
rating on its preferred securities has been downgraded to 'D'
from 'C'.
The quarterly income preferred securities (QUIPS), has been
downgraded to 'D' from 'C'. The rating action also applies to
Intermedia Communications senior unsecured debt, which has been
downgraded to 'D' from 'C'. The rating on Intermedia's preferred
securities have been lowered to 'D' from 'C'.
This rating action follows the Company's voluntary petition for
Chapter 11 bankruptcy. Contact: David Peterson 1-312-368-3177 or
John Culver, CFA 1-312-368-3216, Chicago.
TCR-AP reported that WorldCom Inc may sell its assets in Japan
to restructure its overall operations.
Internet service arm, UUNet, became the first wholly foreign-
owned firm in 1998 to be licensed as a Type 1 telecommunications
service provider, meaning one that has its own telecom
infrastructure.
The Company integrated the operations of its three Japanese
firms in April 2001, because of weak performance, slashing staff
to 250 from 400.
=========
K O R E A
=========
HYNIX SEMICONDUCTOR: Unveiling Restructuring Plan by July's End
---------------------------------------------------------------
Creditors of Hynix Semiconductor will disclose details of the
Company's restructuring plan by the end of next month, AFX Asia
reported Wednesday, citing Finance and Economy Minister Jeon
Yun-churl.
No further details were provided.
TCR-AP reported that Hynix Semiconductor Inc. failed to honor
mature bonds worth 26.4 billion won ($23 million) that is owed
to Korea Development Bank that matured on July 23, claiming the
loans should have been rescheduled under a bailout deal.
KABOOL LTD: Agrees on Debt-Rescheduling Plan
--------------------------------------------
Fabric manufacturer Kabool Ltd has agreed on a debt-rescheduling
plan, including 224.4 billion won in debt-for-equity conversions
to the Company to keep the Company afloat, Digital Chosun and
Korea Herald reported Thursday.
Creditors agree to roll over the maturity of a 200 billion won
loan to the end of 2005.
The move is set to decrease its total debt of 200 billion won
from a total of 1.5 trillion won in 1998.
Creditors extended a total of W900.7 billion in debt-for-equity
conversions in November 1998 and April 2000.
KOREA ELECTRIC: Selling Bonds Worth $660M
-----------------------------------------
Korea Electric Power Corp plans to sell $660 million of dollar-
denominated bonds and then turn them into yen-denominated bonds
to refinance them, Korea Herald reports.
The Company's Board approved the refinancing of 76.7 billion yen
($660 million) of bonds. The debt refinancing is aimed at
lowering interest costs.
Meanwhile, Fitch Ratings on Monday has raised its rating on
KEPCO to "BBB+," with the credit outlook set at "positive."
DebtTraders reports that Korea Electric Power Corp's 8.250% bond
due in 2005 (KORE05KRN1) trades between 110.996 and 111.576. For
real-time bond pricing, go to
http://www.debttraders.com/price.cfm?dt_sec_ticker=KORE05KRN1
SEOUL BANK: Selects Hana Bank as Prospective Buyer
--------------------------------------------------
The government prefers Hana Bank over Loan Star as a prospective
buyer of Seoulbank, AFX Asia and Dong-a Ilbo reported Thursday.
The government may not sell the bank to the US investment fund
unless the bidder forms a consortium with a local or
international large bank.
The Financial Supervisory Commission plans to take proposals
from bidders by the end of July and select one potential buyer
for exclusive talks early next August.
SHINHAN BANK: Bank Misses Fund-raising Goal
-------------------------------------------
Shinhan Bank raised $200 million via issuance of euro bonds,
lesser than the targeted amount of $300 million, the Korea
Herald said Thursday.
The all-in-cost for the debt issue, including swap interest
rates, was estimated at London Inter-Bank Offered Rate (Libor)
plus 43.5 basis points, with a coupon rate set at 4 percent.
The lender attributed the smaller-than-expected fundraising to
the slump in the global stock markets, which made global
investors shy away from the deal.
Reports said Shinhan Bank's debt issue deal would adversely
affect the cross-border deals to be made in the future by other
Korean financial firms.
===============
M A L A Y S I A
===============
ESPRIT GROUP: Stay of Proceedings Hearing Adjourned to Aug 19
-------------------------------------------------------------
The Board of Directors of Esprit Group, further to the Winding-
Up Petition No. Mt5-28-260-2001: Southern Investment Bank Berhad
(Petitioner) vs Esprit Group Berhad (Respondent), announced that
the stay of proceedings, which was fixed for hearing on 23 July
2002, has been adjourned to 19 August 2002.
The sum claimed against EGB based on Southern Investment Bank
Berhad (SIBB)'s Petition is:
FACILITY
(i) Bankers Acceptance as at 30.06.1998 RM
Principal 4,990,000.00
Accrued Interest 642,925.86
------------
Total Outstanding as at 30.06.1998 5,632,925.86
============
(ii) Revolving Credit as at 30.06.1998 RM
Principal 5,000,000.00
Accrued Interest 726,754.02
------------
Total Outstanding as at 30.06.1998 5,726,754.02
============
GEAHIN ENGINEERING: Agreement Negotiation Period Extended
---------------------------------------------------------
Geahin Engineering Berhad had on 23 January 2002 entered into a
restructuring agreement with Mayford Garments Sdn Bhd (MGSB) and
M.K.K. Industries Sdn Bhd (MKK) to undertake a proposed
restructuring scheme (herein referred to as the "Agreement").
Pursuant to the Agreement, GEB has up to a period of three (3)
months following the execution of Agreement or such other longer
period as may be mutually agreed, for GEB and/or its agents to
actively negotiate with the creditors with a view to reaching an
agreement with some or all the creditors as to the settlement
and restructuring of the debts owed to them within the
parameters set out in the Agreement (herein referred to as
"Negotiation Period"), which had expired on 22 April 2002 and
subsequently extended, for a further period of three (3) months,
through a supplementary agreement dated 22 April 2002, which
expired on 22 July 2002.
On behalf of GEB, Public Merchant Bank Berhad announced that the
relevant parties to the Agreement had on 22 July 2002 agreed to
extend the Negotiation Period for a further three (3) months,
expiring on 22 October 2002.
GEAHIN ENGINEERING: Securities Trading Suspended
------------------------------------------------
On behalf of Geahin Engineering Berhad, Public Merchant Bank
Berhad on 24 June 2002 had written to the Kuala Lumpur Stock
Exchange (KLSE) seeking for an extension of time of three (3)
months from 01 July 2002 for the Company to make the Requisite
Announcement pursuant to paragraph 5.0 of Practice Note
No.4/2001 (PN4).
GEAHIN now announced that KLSE, by their letter dated July 23,
2002 has rejected the Company's application for the above
extension and is imposing a suspension on the securities of the
Company pursuant to paragraph 8.14 and 16.02 of the Listing
Requirements. Trading in the Company securities of the Company
was suspended with effect from 9.00 a.m., Wednesday, 31 July
2002 until further notice.
HOTLINE FURNITURE: Court Orders Loan Settlement With MBB
--------------------------------------------------------
The Board of Directors of Hotline Furniture Berhad, in reference
to Suit No: D1-22-2124-2001, Malayan Banking Berhad vs the
Company and Hotline Development Sdn Bhd, announced that the
Kuala Lumpur High Court had granted a Judgment to Malayan
Banking Berhad (the Plaintiff) on 28th May 2002 for the sum of
RM10,215,330.00 together with interest and cost as stated below
against its subsidiary, Hotline Development Sdn Bhd (HDSB) and
HFB (as Corporate Guarantor):
Hotline Development Sdn Bhd
a) a sum of RM10,671,392.97;
b) interest at the rate of 3.5% per annum above Base Lending
Rate on the sum of RM9,597,344.43 from 20 September 2001 until
the full settlement; and
c) interest at the rate of 3.5% per annum above Cost of Funds on
the sum of RM1,074,048-50 from 20 September 2001 until the full
settlement; and
d) cost of RM225.00.
Hotline Furniture Berhad
a) a sum of RM10,215,330-00;
b) interest at the rate of 3.5% per annum above Base Lending
Rate on the sum of RM10,215,330-00 from 20 November 2001 until
the full settlement; and
c) cost of RM225.00.
Base Lending Rate and Cost of Funds of the Plaintiff from 20
September 2001 to 24 September 2001 is 6.70% per annum and from
25 September 2001 till full settlement is 6.4% per annum.
HDSB intends to settle the outstanding loan amount with the
disposal of the assets charged to Malayan Banking Berhad.
JUTAJAYA HOLDING: Appealing Court's Decision on Fees Payment
------------------------------------------------------------
The Board of Directors of Jutajaya Holding Berhad announced that
the Kuala Lumpur High Court had granted Order in Terms to
Alliance Merchant Bank Berhad's application (the Plaintiff)
under Order 14 of the Rules of the High Court 1980, where Juta
is required to pay the followings to the Plaintiff in view of
Juta failed to pay the advisory fees in relation to the proposed
restructuring exercise undertaken by the Company:
1) the sum of RM327,319.79;
2) interest at the rate of 6% on the principal sum of
RM310,753.64 from 19 June 2001 until the full of settlement; and
3) cost.
Juta will make an appeal to the High Court upon further
discussion by the Board.
KUANTAN FLOUR: Judgment Hearing Date Yet to be Determined
---------------------------------------------------------
The Directors of Kuantan Flour Mills Bhd, further to the
announcement made on 20 June 2002 pertaining to the default in
payment in relation to Paragraph 9.04(L) and Practice Note
1/2001, announced that the hearing date for the appeal against
the Summary Judgment by Multi-Purpose Finance Berhad has yet
been fixed.
Wrights Investors' Service reported that at the end of 2001,
Kuantan Flour Mills Berhad had negative working capital, as
current liabilities were Rp34.92 million while total current
assets were only Rp34.06 million. The Company paid no
dividends during the last 12 months. It also reported losses
during the previous 12 months.
L&M CORPORATION: SC Junks Proposal; Considers Other Alternative
---------------------------------------------------------------
On behalf of the Board of Directors of L&M Corporation (M) Bhd,
Affin Merchant Bank Berhad, further to the announcements made on
24 November 2000, 14 December 2001 and 26 February 2002 in
respect of the Proposed Restructuring Scheme Pursuant to Section
176 of the Companies Act, 1965 (Proposal), announced that the
Securities Commission has via its letter dated 18 July 2002
indicated that the SC is unable to consider the Proposal as
submitted to the SC on 3 September 2001. This is in view of the
appointment of the Receivers and Managers of the property of
Orion Express (M) Sdn Bhd (OESB), the owner of the Park Inn
International Kuala Lumpur (Park Inn).
As such the SC is of the opinion that this indicates that OESB
is not in a good financial position to contribute to LMC's
cashflow, as required by Chapter 18.10 of the Policies and
Guidelines on Issue/Offer of Securities issued by the SC in
relation to the Proposal.
In relation thereto, the Board of Directors of LMC is in the
midst of resolving the Receivers and Managers issue with the
present White Knights and also evaluating other possible
alternatives to regularize the financial position of the
Company.
Further announcement on the same will be made once the Board of
Directors has reassessed the feasibility of the Proposal and/or
other possible alternatives.
PAN MALAYSIA: Transfers Share Ownership of Non-Listed Units
-----------------------------------------------------------
GCIH (Singapore) Pte Ltd (in liquidation)(GCIH) is currently a
64.82 percent-owned subsidiary of GCIH Property Limited (GCIH
Property), which in turn, is a wholly-owned subsidiary of
Pengkalen (UK) Plc. Pengkalen (UK) Plc is effectively a 84.12
percent-owned indirect subsidiary of Pan Malaysia Holdings
Berhad.
GCIH held the entire issued and paid-up share capital of Anglo
Pacific Corporation (Malaysia) Sdn Bhd (Anglo Pacific) and Upali
Group Sdn Bhd (Upali).
Pan Malaysia Holdings Berhad informed that following the
distribution of assets of GCIH, the entire share capitals of
Anglo Pacific and Upali have now been transferred to GCIH
Property on 23 July 2002. Anglo Pacific is an investment holding
company whilst Upali is a dormant company.
PANCARAN IKRAB: Securities Trading Suspended
--------------------------------------------
Pancaran Ikrab Bhd has failed to implement its plans to
regularize its financial condition pursuant to paragraph 8.14 of
the Listing Requirements and paragraph 5.0 of Practice Note
4/2001. Kindly be advised that the trading in the Company's
securities will be suspended with effect from 9.00am, Wednesday,
31 July 2002 until further notice.
On June 6, TCR-AP reported that the Securities Commission (SC)
has, via its letter dated 8 May 2002, approved the Company's
application dated 17 April 2002 for a further extension of time
until 31 December 2002 for the Company to implement the proposed
restructuring scheme (Scheme).
PANTAI HOLDINGS: Petition Court Hearing Adjourned to November
-------------------------------------------------------------
Pantai Holdings Berhad, in reference to its announcement made on
11 March 2002 regarding the Kuala Lumpur High Court Originating
Petition No. D4-26-6-02 Balakrishnan A/L Vairavapillai (the
Petitioner) -VS- the Company and Pantai Support Services Sdn
Bhd, announced that its application to strike out the Petition
was heard before the judge on 23 July 2002 and the matter was
deferred to 21 November 2002 for further submissions by the
parties' solicitors.
On April 2, TCR-AP reported that the Company proposed an
internal restructuring (Proposed Restructuring) of its Group of
Companies (PHB Group). The Proposed Restructuring involves the
transfer of six investment holding subsidiaries directly held
under PHB to a wholly owned subsidiary, Pantai Group Resources
Sdn Bhd (PGR), which will function as an intermediate holding
company.
TAT SANG: Updates Defaulted Banking Facilities Payment Status
-------------------------------------------------------------
Tat Sang Holdings Berhad announced that a writ of summons (No.
23-54-2002) dated 16 July 2002 was issued by Bank Pembanguanan
Dan Infrastruktur Malaysia Berhad (BPIMB) and served on
Mercuries & Muar Wooden Furniture Mfg Sdn. Bhd., (MMWF) on 20
July 2002 as the 1st defendant and TSHB as the 2nd defendant due
to the alleged default of payment of promissory facility by MMWF
to BPIMB, the plantiff, TSHB is the Corporate Guarantor of MMWF
for the credit facilities granted by BPIMB.
This was a claim made against MMWF pursuant to the letter of
offer signed on 13 March 2001 for the banking facilities granted
by BPIMB to MMWF for the sum of RM4,000,000-00.
The plantiff claims against the 1st and 2nd defendants:
a) The sum of RM2,136,316.25 as at 28 February 2002
b) Interest on the said sum at the rate 8% per annum from 28
February 2002 until the date of full settlement
c) Cost on an indemnity basis
d) Such further or other relief as the Court deems fit
The Company is now seeking legal advice to defend the case.
The Company further informed that the hearing date of the
following legal suits are fixed as follow:
1. Standard Chartered Bank (M) Berhad - VS - Mercuries & Muar
Wooden Furniture Mfg Sdn. Bhd. (MMWF) at Kuala Lumpur High
Court.
Suit No. D5-23-1051-2001
Hearing date : 17 April 2002 adjourned to 21 May 2002 and fixed
for decision on 1 August 2002
2. Malayan Banking Berhad - VS - MMWF at Muar High Court
Suit No. 23-108-2001
Hearing date : 11 April 2002 adjourned to 23 May 2002 and fixed
for decision on 4 July 2002 and the decision is now pending to
be fixed by the Court
3. Bumiputra-Commerce Bank Berhad - VS - MMWF at Muar High Court
Suit No: 23-76-2002
Hearing date : 21 March 2002 adjourned to 20 June 2002 for the
hearing of Order 14 Application. Written submission will be
forwarded to the Court on 28 July 2002 to fix next hearing date
for decision.
Saved as disclosed, the status of the default in payment of
principal and/or interest to financial institutions remained
unchanged. The Company provided an update on the details of
banking facilities, which are currently in default as per
attached Table 1 at
http://www.bankrupt.com/misc/TCRAP_TatSang0726.doc
UH DOVE: Appoints Tan Ai Tong as Managing Director
--------------------------------------------------
UH Dove Holdings Bhd posted this Change in Boardroom Notice:
Date of change : 23/07/2002
Type of change : Appointment Boardroom
Designation : Managing Director
Directorate : Executive
Name : Tan Ai Tong
Age : 47
Nationality : Malaysian
Qualifications :
i. Master Degree in Business Administration (Cranfield Institute
of Technology, United Kingdom)
ii. Bachelor of Civil Engineering (Honours) degree (University
of Auckland, New Zealand)
Working experience and occupation:
IR Tan Ai Tong is the Executive Director of Bertam Development
Sdn. Bhd. He is responsible for the overall management of the
housing development projects undertaken by Bertam Development
Sdn. Bhd. and its subsidiary and associated companies. He is a
professional Engineer and a member of The Institution of
Engineers, Malaysia. He had more than 20 years of working
experience in the construction and property development sectors.
Mr. Tan Ai Tong also sits on the Board of the subsidiary
companies of Bertam Development Sdn. Bhd. and several other
private companies.
Business Occupation : Engineer
Directorship of public companies (if any) : NIL
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
On June 25, TCR-AP reported that the Company had received the
approval of the Securities Commission for the extension of time
up to 28 September 2002 to implement the Proposals. The
Proposals refers to Proposed Rights Issue; Proposed Debt
Restructuring; and Proposed Acquisitions of the Entire Equity
Interest in Bertam Development Sdn Bhd, Budaya Identiti Sdn Bhd
and Syarikat Sungei Buan Sdn Bhd and the Proposed Acquisition of
Land.
=====================
P H I L I P P I N E S
=====================
NATIONAL BANK: Unveils Improvement in Financial Performance
-----------------------------------------------------------
Philippine National Bank (PNB) reported its improving financial
performance for the first quarter of 2002. The bank cut the
first quarter net loss down to P1.4 billion or by 64.1 percent
of its P3.9 billion net loss incurred for the same period last
year. PNB's improved bottom line is attributed to the decrease
in interest expense and lower administrative expenses.
For the past year, the bank has reduced its workforce as a
result of the special separation package offered by management.
Occupancy cost also improved with the occupancy rationalization
at the PNB Financial Center and the relocation of domestic
branches to more strategic but cost-efficient locations. The PNB
rehabilitation was given the green light with the signing of the
MOA between the National government and the Lucio Tan Group of
Companies on May 3, 2002.
Since the MOA signing, PNB's financial operations also improved
with a 46 percent drop in net loss or P169 million compared to
P313 million incurred in May 2002. Similarly, total non-
performing loans decreased from P52.6 billion to P50.3 billion
or a reduction of P2.3 B. NPL ratio also dipped from 55 percent
to 52 percent. The post-MOA signing also showed improving
deposit mix for the bank with the low cost deposits consisting
of current and savings accounts, increasing from P51.9 billion
to P53.7 billion or P1.8 billion. This area is expected to post
dramatic improvements with the launching of an internal and
external deposit generation campaign where the bank aims to
generate P15 B in incremental CASA.
During the annual stockholders' meeting on June 25, 2002, PNB
projected improved results by further reducing its net loss to
P2.9 billion by year-end. Past due loans are also projected to
settle at 39 percent by year-end.
NATIONAL POWER: Offers Price Incentive Program With Meralco
-----------------------------------------------------------
Heeding the call of President Gloria Macapagal-Arroyo during her
State-of-the-Nation-Address on July 22 (SONA), the senior
officials of the two-power giants- National Power Corp.
(Napocor) and the Manila Electric Co. (Meralco) immediately met
Tuesday with Energy Secretary Vincent S. Perez, Jr. to come up
with a pricing incentive program for power intensive users of
electricity.
"The meeting was fruitful as both parties were keen to set
aside differences, and in a new spirit of cooperation, were both
willing to work together to help reduce the price of electricity
for any increase energy consumption in the franchise area of
Meralco," Secretary Perez said.
The issue of high power costs topped the main concerns of the
President's SONA on Monday as she gave specific order to Napocor
and Meralco to "stop their bickering and instead work together
to give price incentives to large users so that the excess power
can be utilized".
"This would encourage economic activity and can create jobs,"
the President said.
Under the proposed program, a declining block rate structure
will be adopted whereby price discounts will be offered for the
incremental consumption of power above the current base or
"native" load. This is among the President's 10 points to
reduce power costs.
As a result of the meeting, Secretary Perez said both firms were
encouraging each other to offer as significant a price discount
for incremental energy consumption above their base load,
especially during the off-peak hours (usually night time)
consumption. The price discount is seen to give substantial
savings for industrial firms and bring much needed relief from
high operating costs.
The two companies initially proposed to offer customers using at
least one megawatt (MW) of electricity consumption per month and
above in the pricing incentive program. But Secretary Perez
urged the two companies to bring down further the threshold
level down to 500 kilowatts (kW).
Meralco and Napocor have also agreed in principle to offer the
pricing incentives for incremental consumption on a firm basis
for a period of up to three months on a rollover basis.
Self-generating companies that are directly connected to Napocor
and embedded customers of Meralco and industries that do not
have self-generating facilities but meet the demand requirements
like petrochemicals, cement, steel, paper, ferroalloys and small
and medium enterprisers are also being considered for inclusion
in the price incentive program.
The two companies are again expected to meet within the week to
fine tune the pricing incentive program. Any price incentives
program will have to be approved by the Energy Regulatory
Commission (ERC).
Again replying to the President's SONA directives, Secretary
Perez said the Department of Energy (DoE) would exert all
efforts in establishing the first-ever wholesale electricity
spot market (WESM) in Asia, which will give electric consumers
the power to choose their suppliers and the kind of electricity
they need at the cheapest cost.
Under the WESM, electricity will be traded electronically on an
hourly basis. Its operation is likened to the stock market or a
public market where we are buying and selling commodities.
"We are pushing as hard as possible to start the operations of
the interim WESM by the end of the year despite delays in the
introduction of the Interim Management Systems (IMMS). We are
now even studying the possibility of sourcing from Transco's
internally-generated funds the finances needed for the interim
WESM project in order to accelerate the implementation following
the recent delays in the concurrence of the World Bank for the
project," Secretary Perez said. The World Bank is initially
being eyed as the funding agency for the project.
The energy Chief added that the DoE will also press for the
acceleration of the open access scheme, which will create
competition in energy supply, and eventually bring about
increased efficiencies and lower power rates.
"Open access is to give the power of choice to the consumers.
With the President's mentioning it in her SONA, it only
indicates that the Arroyo administration will find all ways
including administrative means to accelerate the initial
implementation of open access," Secretary Perez said.
For a copy of the press release, go to
http://www.doe.gov.ph
PHILIPPINE LONG: SEC Seeks JG's Bid Involvement Clarification
-------------------------------------------------------------
The Securities and Exchange Commission is seeking clarification
from John Gokongwei asking him to explain JG Summit Holdings
Inc's participation in the Gokongwei group's agreement with
First Pacific to take over Philippine Long Distance Telephone Co
(PLDT).
SEC Chairwoman Lilia Bautista said in her letter to Gokongwei
that the agency is seeking clarification from the businessman
after he submitted a copy of the memorandum of agreement for the
First Pacific joint venture with the Gokongwei group, which
showed he had signed the MoA on behalf of the Gokongwei group
and JG Summit Holdings Inc.
A copy of the MoA, provided by the Philippine Stock Exchange,
showed Gokongwei had deleted the reference to JG Summit when he
signed the MoA and then countersigned the deletion.
Bautista said the SEC wants to determine if there were any
discrepancies in the MoA copy filed with the US SEC by First
Pacific and the one filed with local regulators by Gokongwei.
"If what he submitted to us is different from what has been
submitted to the US SEC, then he has to give an explanation,"
Bautista said in a report to the AFX-Asia News. (M&A REPORTER -
ASIA PACIFIC, Vol. No.1, Issue No. 145, July 24, 2002)
PHILIPPINE LONG: First Pac Responds to PLDT's Statements
--------------------------------------------------------
First Pacific disclosed Wednesday that the recent PLDT comments,
reported in the press regarding First Pacific's disclosure of
its MOA, are designed solely to divert public attention away
from the transaction's merits and onto immaterial issues
pertaining to the contents of the MOA, which First Pacific has
already indicated is only a preliminary guideline to concluding
its proposed transaction with the Gokongwei Group.
MOA disclosures materially complete; PLDT used disclosures in
own U.S. filings.
Several analysts and media reports, consistent with First
Pacific's long-standing view, have stated that the MOA's
contents add nothing material to First Pacific's 5 June 2002
public disclosures in Hong Kong, the Philippines and the United
States. PLDT itself, a week before filing a U.S. lawsuit
alleging "material deficiencies" in First Pacific's disclosure,
summarized that same disclosure in PLDT's own U.S. SEC filings,
without any management comment to shareholders on the so-called
"material deficiencies" in First Pacific's disclosure.
MOA preliminary; discussion on parties irrelevant pending final
documentation
On the specific issue of the actual parties to the MOA, who
represent the core focus of PLDT's concerns, First Pacific
reiterates that the MOA is only a preliminary document and
already has disclosed that final, definitive agreements
containing the transaction's complete details on parties,
structure and timing will replace the MOA. First Pacific has
consistently maintained that JG Summit Holdings (JGSH) was never
intended to be a party to the final documentation of the
proposed transaction because Mr. Gokongwei made it clear, when
signing the MOA, that he only was a representative of the
Gokongwei Group of companies and honorary Chairman Emeritus of
JGSH, with absolutely no authority to bind JGSH. Any further
PLDT commentary on JGSH's participation in the transaction
accomplishes nothing more than to achieve PLDT's goal of
diverting attention from the transaction's substantive merits,
which PLDT has yet to address.
Transaction beneficial to PLDT, MPC and First Pacific
In focusing on the substantive merits of the transaction, First
Pacific reiterates that the transaction
1. will benefit PLDT by introducing a financially strong
Filipino shareholder, dedicated to reducing debt and improving
operational efficiencies;
2. will benefit Fort Bonifacio by introducing an experienced and
leading Filipino real estate developer - who already has plans
for a six hectare mixed-use development with the current project
developer - to increase the chances for enhanced values that
will benefit all owners of Global City properties, as well as
the creditors of Metro Pacific Corporation; and,
3. will benefit First Pacific by enabling it to monetize a
portion of the US$1.3 billion - representing Pesos 1,500 per
share - that it has invested in PLDT since 1998. This decision
has been taken in the context that First Pacific has not
realized any capital appreciation on its PLDT shares, and has
received no dividends since first quarter 2001, with no apparent
prospect of dividends until at least 2005. PLDT's share price
has, over time, declined such that it was Pesos 457.5 per share
when First Pacific announced its transaction with the Gokongwei
Group on 5 June 2002. Since then, as a result of PLDT
management's uncooperative position, as well as macro factors,
PLDT's share price has declined further to Pesos 325.
PLDT management should objectively evaluate transaction, clearly
articulate any substantive concerns
To date, PLDT management's strategy has been to employ whatever
means it believes will derail the proposed transaction, without
regard for whether attacks on the transaction relate to issues
of substance or collateral issues, such as the "competitor"
bylaw which PLDT shareholders have not specifically approved,
and which amounts to nothing more than a "poison pill" of
management.
First Pacific expects, in the interests of full and fair
disclosure as part of best corporate governance practice, that
PLDT management objectively evaluate the merits of the proposed
transaction and clearly and unambiguously explain the
substantive matters - if any - that give PLDT management genuine
concern as fiduciary representatives of the PLDT shareholders.
For further information, please contact:
First Pacific Company Limited
Rebecca Brown Tel: (852) 2842 4301
Executive Vice President
Group Corporate Communications
Sara Cheung Tel: (852) 2842 4336
Assistant Vice President
Group Corporate Communications
Further information, including past announcements, can be
accessed at www.firstpacco.com
email: info@firstpac.com.hk
PHILIPPINE LONG: Clarifies Suit Issue Against First Pac
-------------------------------------------------------
Philippine Long Distance Company (PLDT) on Tuesday responded to
a newspaper article entitled "PLDT ready to drop New York civil
suit against First Pacific" published in the July 19, 2002 issue
of the Business World.
Philippine Long Distance Telephone Company, in its letter dated
July 19, 2002, stated that:
"...we have been advised by our US counsel that, as of July 19,
First Pacific has not yet filed with the United States
Securities and Exchange Commission any additional amendment to
its schedule 13D which attaches the complete text of the June 4,
2002 MOA with the Gokongwei group. Assuming that First Pacific
makes such filing Friday, we intend to withdraw our request for
injunction, which is scheduled for hearing on July 22, 2002.
In the meantime, until PLDT has received and fully evaluated
First Pacific's supplemental filing, the Company are reserving
their right to pursue all legal remedies available to them in
respect of the complaint PLDT filed in the New York District
Court against First Pacific."
=================
S I N G A P O R E
=================
DBS GROUP: Turns Over Philippine Ops to SB Equities
---------------------------------------------------
In line with its decision to shut down its operations in the
country by August 1, DBS Group Holdings Ltd's Philippine
brokerage unit, DBS Vickers, announced the transfer of its
securities business to SB Equities Inc., the stock brokerage
unit of Security Bank Corp.
"The closure of the business is based purely on commercial
reasons and was taken after due consideration. The financial
decision was made in the best interests of its shareholders,
clients and employees," DBS Vickers said.
Headquartered in Singapore, DBS Vickers remains one of the
largest brokerage firms in the region, with offices in Hong
Kong, Thailand, Indonesia and Malaysia. It has institutional
sales offices in the USA and UK. (M&A REPORTER - ASIA PACIFIC,
Vol. No.1, Issue No. 146, July 25, 2002)
FLEXTRONICS INTERNATIONAL: Posts Q1 Net Loss of US$131.2M
---------------------------------------------------------
Flextronics International posted a net loss of US$131.2 million
in the first quarter ending June under US GAAP standards, versus
a profit of US$88.3 million a year earlier, AFX Asia reported
Wednesday.
It said the results include a one-off charge of 158 million
related to a restructuring plan including the closure, sale and
downsizing of several operations around the world.
The Company will continued to manage and strengthen its balance
sheet and working capital performance in the face of a slow
economic environment.
Flextronics have US$827 million in cash at the end of the June,
up from 745 million at the end of the previous quarter. The
Company has total debt of US$1.05 billion from US$1.16 billion
the previous quarter.
Flextronics three months to June results:
Net sales - US$3.127 billion versus3.110 billion
Proforma opg profit - US$52.4 million versus 123.0
GAAP opg loss - US$158.7 million versus profit 120.7
Proforma net profit - US$30.1 million versus 90.6 million
GAAP net loss - US$131.2 million versus profit 88.3
EPS proforma (diluted) - 0.06 cents versus 0.18
Loss per share GAAP (diluted) - 0.25 cents versus 0.17
SEMBCORP LOGISTICS: Units Enter Voluntary Liquidation
-----------------------------------------------------
SembCorp Logistics (SembLog) disclosed Wednesday that PTA
Industries Sdn Bhd, a wholly owned subsidiary of SembLog in
Malaysia, has been placed under members' voluntary liquidation.
On July 24, 2002, Mr Lim Tian Huat has been appointed as the
liquidator of PTA Industries.
The Securities & Exchange Commission of the Republic of
Philippines had also approved the dissolution of Water Jet
Shipping Corporation, a 56 per cent subsidiary of SembLog in the
Philippines.
Both PTA Industries and Water Jet Shipping are dormant companies
and their liquidation is not expected to have any material
financial impact on SembLog.
For media and investor enquiries, please call:
Chow Hung Hoeng (Ms)
Investor Relations
SembCorp Logistics
Tel: (65) 462 8408 / 3579 152
Fax: (65) 468 2797 / 3522 163
Email: chowhh@sembcorp.com.sg
Website: www.semblog.com
SPINDEX INDUSTRIES: Dissolves Malaysian Unit
--------------------------------------------
The Board of Directors of Spindex Industries Limited Wednesday
that its wholly-owned dormant subsidiary, Zenplas (M) Sdn Bhd
(Zenplas), a Company incorporated in Malaysia, had applied to be
struck-off the register of the Companies Commission Of Malaysia.
This notice was published in the Malaysia Government Gazette on
22 April 2002 and accordingly the Company has been dissolved on
22 July 2002 pursuant to section 308(2) of Companies Act 1965.
The application had been approved and the directors of Zenplas
have been informed that the Company has been struck-off the
register.
The striking-off of Zenplas shall have no material effect on the
net tangible assets and earnings per share of the Company.
===============
T H A I L A N D
===============
NATURAL PARK: Decreases Paid-up, Registered Capital
---------------------------------------------------
Natural Park Public Co., Ltd. has completed the legal process
required for decreasing of the company's registered capital and
paid-up capital by canceling the 1,522,035,000 unissued ordinary
shares and by reducing the par value of the 378,003,400 issued
ordinary shares from Bt10 to Bt0.05 each without any changes in
number of issued shares.
As a result, effective from July 30, 2002 onwards, the par value
of the "N-PARK" security in the trading system will be changed
from Bt10 to Bt0.05.
PREMIER ENTERPRISE: Business Reorganization Petition Filed
----------------------------------------------------------
Premier Enterprise Public Company Limited (DEBTOR), engaged in
cars sales and rental service, filed its Petition for Business
Reorganization to the Central Bankruptcy Court:
Black Case Number 358/2543
Red Case Number 434/2543
Petitioner: PREMIER ENTERPRISE PUBLIC COMPANY LIMITED
Debts Owed to the Petitioning Creditor: Bt16,598,063,996.00
Planner: Premier Planner Company Limited
Date of Court Acceptance of the Petition: May 12, 2000
Date of Examining the Petition: June 12, 2000 at 9.00 AM
Court Order for Business Reorganization and Appointment of
Planner: June 12, 2000
Announcement of Court Order for Business Reorganization and
Appointment of the Planner in Matichon Public Company Limited
and Siam Rath Company Limited: June 20, 2000
Announcement of Court Order for Business Reorganization and
Appointment of the Planner in Government Gazette: July 18, 2000
Deadline for the Planner to submit the Business Reorganization
Plan to the Official Receiver: October 18, 2000
Planner postponed the date for submitting the Plan #1st:
November 18, 2000
Appointment Date of the Creditors' Meeting for the Plan
Consideration: December 14, 2000 at 9.30am. 11th Floor, Meeting
room no. 1105, Bangkok Insurance Building, Sathorn Rd.
the Creditors' meeting had passed a resolution accepting the
Plan on December 14, 2000
Court hearing has been set on January 11 at 13.30 pm.
Court has postponed the hearing: January 18, 2001 at 13.30 pm.
Court had issued an Order Not Accepting the Reorganization Plan
and an Order Canceling the Order for Reorganization since
January 18, 2001
Announcement of Court Order for Canceling the Reorganization in
Matichon Public Company Limited and Siam Rath Company Limited:
January 30, 2001
Announcement of Court Order for Canceling the Reorganization in
Government Gazette: February 27, 2001
Contact: Ms. Phataree, Tel 6792525 Ext. 143
SRITHAI SUPERWARE: Posts Board Resolutions Amendments
-----------------------------------------------------
Srithai Superware Public Company Limited notified the amendment
and additional Board Resolutions:
* Change of Place for holding Extraordinary Meeting of
Shareholders from Conference Room of the Company at 355,
Suksawat Road, Bangpakok, Rasburana, Bangkok to J.W. Marriott
Hotel at 4 Sukhumvit Road, Soi 2, Klongtoey, Klongtoey, Bangkok.
* Notice of Additional Board Resolutions on agenda no. 3 for
the Extraordinary Meeting of Shareholders as followings:
* The Board of Directors resolved that the following
persons be appointed as Audit Committee:
Professor Viroj Lowhaphandu as Chairman of the Audit Committee
Mr. Enghug Nontikarn as Member of the Audit Committee
Mr. Suchat Boonbanjerdsri as Member of the Audit Committee
Remuneration for the Board of Directors has been fixed.
Approvals from the Shareholders will be sought in the
Extraordinary Meeting of Shareholders.
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
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contained herein is obtained from sources believed to be
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*** End of Transmission ***