/raid1/www/Hosts/bankrupt/TCRAP_Public/020826.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, August 26, 2002, Vol. 5, No. 168
Headlines
A U S T R A L I A
ACMA ENGINEERING: Reinstated to Official Quotation
BALLARAT GOLDFIELDS: Retiring Debt; Providing Working Capital
CMG CH: Provides Restructuring Status Update
DIGITAL NOW: Lodges Monthly Operating Report
* ASX Suspends Companies for Failure to Pay Annual Listing Fees
C H I N A & H O N G K O N G
DAILYWIN GROUP: Price, Turnover Movements Unexplainable
EASYKNIT INT'L: Consolidates Shares
FINE CASE: Faces Winding Up Petition
GREAT PROSPECT: Winding Up Petition Hearing Set
GREATMATE LIMITED: Petition to Wind Up Pending
JILIN CHEMICAL: Narrows Operations Loss to HK$39.1M
NICO METAL: Winding Up Petition Set for Hearing
ORIENTAL HINT: Winding Up Petition to be Heard
I N D O N E S I A
UNITED TRACTORS: Sells 60% Berau Coal Stake, Paying Debt
J A P A N
ALL NIPPON: Moving Headquarters to Central Tokyo
ASAHI BREWERIES: Joins Forces With Orion Breweries
DAIEI INC: Dream Kaihatsu Gives Up Rights to Kanagawa Monorail
FUJITSU LTD: Releases Updated NetCOBAL Software
MITSUBISHI CHEMICAL: JCR Downgrades Rating to A, Affirms Rating
NIPPON MEAT: Harsher Penalty Likely for Chairman Okoso
NIPPON TELEGRAPH: Hiring Two Banks to Handle Bond Sale
SNOW BRAND: Planned JV Company to Use 'MEGMILK' Brand
K O R E A
DONGBU ELECTRONICS: Fails to Forge Deal With TI
HYNIX SEMICONDUCTOR: Shareholders Offer Reform Plan
PAN OCEAN: Creditors Ready to Sell Off Shipping Firm
SEOUL BANK: President Kang Jung-Won Receives Warning From BAI
SEOULBANK: Potential Merger With Hana Bank Positive, Fitch
SEOUL BANK: Moody's Rating on Review For Possible Upgrade
M A L A Y S I A
ADVANCE SYNERGY: Unit's Winding-Up Petition Scheduled
BESCORP INDUSTRIES: SC's Proposal Approval Pending
FORESWOOD GROUP: Provides Financial Regularization Status
FORESWOOD GROUP: Releases Unit's Status Update
HAI MING: PRE Resolutions Pass at EGM
KUALA LUMPUR: Fails to Meet Listing Requirements
KUANTAN FLOUR: Reaches Settlement Agreement With Multi-Purpose
LONG HUAT: KLSE Rejects Time Extension Request
LONG HUAT: RHB Bank Withdraws Winding Up Petition
MENTIGA CORPORATION: Replies to KLSE's Winding Up Query
PAN MALAYSIA: FIC Extends Special Issue Period to December 31
REPCO HOLDINGS: Seeks Financial Regularization Time Extension
SIN HENG: Scheme Agreement With ASIH, DC Executed
SRI HARTAMAS: Obtains SC's Nod on Proposed Disposal
* CDRC Releases 15 August 2002 Status
P H I L I P P I N E S
ATLAS CONSOLIDATED: PSE Lifts Trading Suspension
BELLE CORP: Pays Off US$17M Debt to Deutsche Bank
PHILIPPINE LONG: JG Clarifies Non-Participation in Joint Bid
PHILIPPINE LONG: Mum on Management Buy-Out Reports
REYNOLDS PHILIPPINES: Director Jorge Navarra Quits Post
S I N G A P O R E
ASIA PULP: Deutsche Bank, BNP Acknowledge Court Decision
ASTI HOLDINGS: Sale of STI Terminated by ATC
NATSTEEL LTD: Posts Notice of Shareholder's Interest
THAKRAL CORPORATION: Clarifies FY02 Annual Report
T H A I L A N D
ADVANCE PAINT: Increases Registration Paid Up Capital
BANGKOK RANCH: Sixth, Seventh Interest Payment Settled
BGES ENGINEERING: Increases Capital, Allocates New Shares
KIATNAKIN FINANCE: TRIS Ups Bt1,000M Sr Notes Ratings to "BBB+"
NATURAL PARK: Share Registration Closes August 27
- - - - - - - -
=================
A U S T R A L I A
=================
ACMA ENGINEERING: Reinstated to Official Quotation
--------------------------------------------------
The trading suspension of Acma Engineering Construction Group
Limited's securities was lifted immediately following the
Company's payment of the annual listing fee for the year ended
30 June 2003 to Australian Stock Exchange Limited.
Wrights Investors' Service reports that at the end of 2001, Acma
Engineering & Construction Group Li had negative working
capital, as current liabilities were A$11.17 million while total
current assets were only A$9.60 million.
BALLARAT GOLDFIELDS: Retiring Debt; Providing Working Capital
-------------------------------------------------------------
Ballarat Goldfields NL posted this notice:
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
Ballarat Goldfields NL
ABN
50 006 245 441
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 Fully paid
or to be issued
2. Number of securities issued In relation to the rights
or to be issued (if known) issue: 125,127,220
or maximum number which In relation to the public
may be issued issue:
A minimum of 140,000,000
A maximum of 175,000,000
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 The rights issue @ 2.3 cents
The public issue @ 2.5 cents
6. Purpose of the issue (if To retire debt, provide
issued as consideration for working capital, and to fund
the acquisition of assets, a resumption of field
clearly identify those exploration activity on the
assets) company's victorian gold
prospects
7. Dates of entering securities 2/10/2002
into uncertified holdings
or dispatch of certificates
NUMBER CLASS
8. Number and class of all 425,254,440 Ordinary
securities quoted on
ASX (including the
securities in clause
2 if applicable)
NUMBER CLASS
9. Number and class of all N/A -
securities not quoted
on ASX (including the
securities in clause 2
if applicable)
10.Dividend policy (in the case None
of a trust, distribution
policy) on the increased
capital (interests)
PART 2 - BONUS ISSUE OR PRO RATA ISSUE
11. Is security holder approval Yes
required
12. Is the issue renounceable Rights issue is
or non-renounceable non-renounceable
13. Ratio in which the securities Rights issue is on a 1 for 1
will be offered basis
14. Class of securities to which Ordinary
the offer relates
15. Record date to determine For the rights issue:
entitlements 29/08/2002
16. Will holdings on different No
registers (or subregisters)
be aggregated for calculating
entitlements
17. Policy for deciding entitlements N/A
in relation to fractions
18. Names of countries in which the All countries excluding
entity has security holders Australia and New Zealand
who will not be sent new issue
documents
Note: Security holders must be
told how their entitlements
are to be dealt with.
Cross reference: rule 7.7.
19. Closing date for receipt of For the rights issue:
acceptances or renunciations 23/09/02
For the public issue:
25/09/02
20. Names of any underwriters In relations to the rights
issue: RFC Corporate Finance
Limited
21. Amount of any underwriting fee 5% in relation to the rights
or commission issue
22. Names of any brokers to the RFC Corporate Finance Ltd is
issue also arranger and manager for
the public issue
23. Fee or commission payable to 5% in relation to the public
the broker to the issue issue
24. Amount of any handling fee 3% (included in item 23) in
payable to brokers who relation to the public issue
lodge acceptances or
renunciations on behalf
of security holders
25. If the issue is contingent 10 September 2002
on security holders'
approval, the date of
the meeting
26. Date entitlement and acceptance 30 August 2002
form and prospectus or Product
Disclosure Statement will be
sent to persons entitled
27. If the entity has issued options, N/A
and the terms entitle option
holders to participate on
exercise, the date on which
notices will be sent to
option holders
28. Date rights trading will begin N/A
(if applicable)
29. Date rights trading will end N/A
(if applicable)
30. How do security holders sell N/A
their entitlements in full
through a broker
31. How do security holders sell N/A
part of their entitlements
through a broker and accept
for the balance
32. How do security holders dispose N/A
of their entitlements (except
by sale through a broker)
33. Dispatch date 03/10/2002
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. 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
36. 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
37. A copy of any trust deed for the additional securities
(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.
X 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 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.
CMG CH: Provides Restructuring Status Update
--------------------------------------------
CMG CH China Investments Limited posted below Chairman I N
Ferres letter to Shareholders regarding the Company's status in
restructuring:
"On behalf of the directors, I am pleased to advise you that the
restructure of the Company has progressed well, with the
investment portfolio successfully transferred to the New Era PRC
Fund (the Fund) and the Company holding 4,507,423.79 Units in
the Fund. At the date of transfer (24 June 2002), each Unit was
valued at US$10 with a total value at that time of US$45.1
million (A$79.2 million).
"On 15 July 2002, the Company announced that it will reduce its
share capital by A$0.46 (46 cents) in respect of each ordinary
share and will pay a final dividend for the year ending 30 June
2003 of A$0.066 (6.6 cents) per ordinary share.
"This dividend will be a fully franked dividend. 100% of the
dividend is an attributable amount, this being part of the
Company's capital gain and hence potentially qualifying for a
discount under the capital gains provisions applicable to Listed
Investment Companies.
"The capital reduction and dividend will be met wholly by way of
a pro rata distribution of 3,936,128.17 Units in the Fund.
Shareholders will receive approximately 0.029941785 Units for
each ordinary share held in the Company.
"Units in the Fund will be transferred to qualifying
shareholders on Wednesday 21 August 2002. Proceeds from the sale
of Units sold on behalf of US Persons or those shareholders
considered to be US Persons will be distributed (after deducting
expenses of sale) by Wednesday 4 September 2002.
"After the capital reduction and dividend noted above, the
Company will continue to hold 571,295.62 Units in the Fund.
After settling its remaining obligations, the Company intends to
make a final liquidation distribution (subject to shareholder
approval). This distribution is expected to take the form of
both Units in the Fund and cash.
NEW ERA PRC FUND
"The Fund is managed by First State Investments (Hong Kong)
Limited (First State Investmentsa subsidiary of Colonial First
State Group Limited. Since the date of transfer, First State
Investments has been actively managing the portfolio. As at 14
August 2002, the bid price of US$9.53 compares favorably against
the initial issue price of US$10 given the very difficult market
conditions in recent weeks.
"Attached to this letter is a leaflet produced by First State
Investments that outlines their unique investment process and
team, how they will provide their services to you and a brief
look at China, reinforcing the exciting investment opportunity
provided by the China markets
(http://www.bankrupt.com/misc/TCRAP-CHV0826.pdf)
"Finally, I would like to thank you for your continuing support
in implementing this restructure, one that I am confident will
continue to provide you with the best vehicle for investing in
China's growing economy. If you require any information on the
restructure or have any other questions please call the Company
Secretary, Mr Gary Dickson, on +61 2 9226 8324."
DIGITAL NOW: Lodges Monthly Operating Report
--------------------------------------------
Digital Now, Inc on Friday released the monthly filing it is
required to make to the United States Bankruptcy Court whilst it
is under Chapter 11 Administration. The attached filing covers
the month of July 2002.
The filing consists of the usual monthly operating report, which
includes:
(a) Financial Background Information;
(b) Income Statement; and
(c) Cash Distribution Summary Report.
Please note all figures are in US dollars and that the year to
date figures relate to the period from 1 January 2002
A full copy of the report is found at
http://www.bankrupt.com/misc/TCRAP_DNI0826.pdf. Alternatively
it is available for purchase from ASX Customer Service on 1 300
300 279.
* ASX Suspends Companies for Failure to Pay Annual Listing Fees
---------------------------------------------------------------
The following entities have failed to pay their annual listing
fee to Australian Stock Exchange Limited in respect of the year
ended 30 June 2003 and consequently will be suspended from
official quotation from the commencement of trading effective
Friday, 23 August 2002.
PMD POS Media Online Limited
SGV Simon Gilbert Wines Limited
TPL Terraplanet Limited
Under listing rule 17.6, any entity (if not already suspended)
that had not paid its annual listing fee by close of business on
Thursday 22 August 2002 would be suspended from official
quotation before the commencement of trading on Friday 23 August
2002.
The following entities have not paid their annual listing fees
in respect of the year ended 30 June 2003 but are already
suspended from official quotation.
AEH Aerosonde Holdings Limited
AHH Agro Holdings Limited
AEL Antaeus Energy Limited
BGF Ballarat Goldfields NL
BAE Barron Entertainment Limited
CTZ Cable & Telecoms Limited
CTR Centaur Mining & Exploration
CHG Chieron Holdings Limited
CIH China Construction Holdings Limited
CBC China Convergent Corporation Limited
CMT Clements Marshall Consolidated Limited
CXR Coplex Resources NL
CHH Cottee Health Limited
DHB Dream Haven Bedding & Furniture Limited
FRT Farnell & Thomas Limited
FOR Forestech Limited
HSL Harris Scarfe Holdings Limited
HTS Harts Australasia Limited
HEI Heat Exchangers International Limited
INF Infosentials Limited
ITN Intercard Wireless Limited
LIB LibertyOne Ltd - Administrator Appointed
NFR Nonferral Recyclers Limited
NMW Normans Wines Limited
ODD Oddsoft Limited
PTX Pacific Matrix Limited
PTL Phoenix Technology Corporation Limited
RUS Ruskin Industries Limited
SGG Sage Global Fund Limited
SFO Seafood Online.com Limited
SCG Smart Communications Group Limited
TSS Tassal Limited
TMN Telemedia Networks International Limited
BWT Tony Barlow Australia Limited
TRT Tuart Resources Limited
WAV Waivcom Worldwide Limited
WBZ Weboz Limited
WER Werrie Gold Limited
In accordance with listing rule 16.5, entities that pay their
annual listing fee on or after Friday 23 August 2002 must pay by
bank cheque only.
Under listing rule 17.15, any entity that has not paid its
annual listing fee as required by rule 16.5 by 5.00 pm EST on
Thursday 29 August 2002 was removed from the official list at
the close of trading on Friday 30 August 2002.
================================
C H I N A & H O N G K O N G
================================
DAILYWIN GROUP: Price, Turnover Movements Unexplainable
-------------------------------------------------------
Dailywin Group Limited has noted the recent increases in the
price and trading volume of the shares of the Company and stated
that they are not aware of any reasons for such movements.
The Board also confirmed that there are no negotiations or
agreements relating to intended acquisitions or realizations
which are discloseable under paragraph 3 of the Listing
Agreement, neither is the Board aware of any matter discloseable
under the general obligation imposed by paragraph 2 of the
Listing Agreement, which is or may be of a price-sensitive
nature.
EASYKNIT INT'L: Consolidates Shares
-----------------------------------
Easyknit International Holdings Limited requested market
participants to note that the ordinary shares of HK$0.01 each
(Old Shares) in the capital of the Company will be consolidated
into ordinary shares of HK$0.1 each (New Shares) on the basis of
10 into 1 subject to its shareholders' approval at the Special
General Meeting held on 22/August/2002.
Upon the proposals becoming effective, a temporary counter under
stock code 2961 and stock short name "EASYKNIT INT'L" will be
established for trading in board lots of 200 New Shares each to
replace the present counter (stock code: 1218) for trading in
board lots of 2,000 Old Shares each effective from Friday,
23/August/2002.
FINE CASE: Faces Winding Up Petition
------------------------------------
The petition to wind up Fine Case Limited is set for hearing
before the High Court of Hong Kong on September 25, 2002 at 9:30
am. The petition was filed with the court on July 3, 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.
GREAT PROSPECT: Winding Up Petition Hearing Set
-----------------------------------------------
The petition to wind up Great Prospect Industries Limited is
scheduled to be heard before the High Court of Hong Kong on
October 16, 2002 at 10:00 am.
The petition was filed with the court on July 29, 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.
GREATMATE LIMITED: Petition to Wind Up Pending
----------------------------------------------
The petition to wind up Greatmate Limited is set for hearing
before the High Court of Hong Kong on October 30, 2002 at 9:30
am.
The petition was filed with the court on August 6, 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.
JILIN CHEMICAL: Narrows Operations Loss to HK$39.1M
---------------------------------------------------
Jilin Chemical Industrial Company Limited announced on
22 August 2002:
(stock code: 368)
Year end date: 31/12/2002
Currency: RMB
Auditors' Report: N/A
Review of Interim Report by: Audit Committee
(Unaudited)
(Unaudited) Last
Current Corresponding
Period Period
from 1/1/2002 from 1/1/2001
to 30/6/2002 to 30/6/2001
('000) ('000)
Turnover : 4,525,618 5,984,561
Profit/(Loss) from Operations : (39,110) (372,362)
Finance cost : (306,571) (298,745)
Share of Profit/(Loss) of Associates: (149) -
Share of Profit/(Loss) of
Jointly Controlled Entities : (4,766) 12,244
Profit/(Loss) after Tax & MI : (350,068) (660,741)
% Change over Last Period : N/A
EPS/(LPS)-Basic : (RMB0.10) (RMB0.19)
-Diluted : - -
Extraordinary (ETD) Gain/(Loss) : - -
Profit/(Loss) after ETD Items : (350,068) (660,741)
Interim Dividend per H Share : Nil Nil
(Specify if with other options) : - -
B/C Dates for Interim Dividend : N/A
Payable Date : N/A
B/C Dates for (-) General Meeting : N/A
Other Distribution for Current Period : N/A
B/C Dates for Other Distribution : N/A
Remark:
Certain comparative figures have been reclassified to conform
with current year's presentation.
NICO METAL: Winding Up Petition Set for Hearing
-----------------------------------------------
The petition to wind up Nico Metal Manufacturing Company Limited
will be heard before the High Court of Hong Kong on September
18, 2002 at 9:30 am.
The petition was filed with the court on June 24, 2002 by
Industrial and Commercial Bank of China (Asia) Limited whose
registered office is situated at ICBC Tower, Nos. 122-126
Queen's Road Central, Hong Kong.
ORIENTAL HINT: Winding Up Petition to be Heard
----------------------------------------------
The petition to wind up Oriental Hint Limited is scheduled for
hearing before the High Court of Hong Kong on October 16, 2002
at 10:00 am. The petition was filed with the court on July 24,
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
=================
UNITED TRACTORS: Sells 60% Berau Coal Stake, Paying Debt
--------------------------------------------------------
PT United Tractors has sold its 60 percent stake in PT Berau
Coal for somewhere between US$43 million and US$45 million, AFX-
Asia reports, citing an unnamed source.
"A preliminary agreement with the buyer was signed on Wednesday
night," the source said, adding that the buyer is not an
industry player but a broker for a third party.
United Tractors is selling its stake in Berau Coal to help meet
a US$95 million debt repayment due in December.
=========
J A P A N
=========
ALL NIPPON: Moving Headquarters to Central Tokyo
------------------------------------------------
Loss-making All Nippon Airways Co plans in April to move its
headquarters from Haneda Airport in Tokyo Bay to the Shimbashi-
Shiodome district in Tokyo's Minato Ward, the Nihon Keizai
newspaper reported.
A total of 2,000 staff will have their workplace shifted to the
new site.
The move is part of the airline's aims to increase convenience
for customers, improve marketing and boost efficiency.
In addition to HQ functions, ANA will move its marketing
division, subsidiaries Air Nippon Co and All Nippon Airways
Trading Co, three travel agencies, and affiliate Nippon Cargo
Airlines Co, to the new headquarters building.
TCR-AP reported in July that All Nippon posted a net loss of 9.5
billion yen for the year ended in March, the airline's fourth
annual loss in five years.
ASAHI BREWERIES: Joins Forces With Orion Breweries
--------------------------------------------------
Leading Japanese brewer Asahi Breweries Ltd has reached a broad
business tie-up agreement with Orion Breweries Ltd, a beer maker
based in the southernmost island prefecture of Okinawa, Japan
Today reported.
A formal agreement will be signed by the end of October.
The accord calls for Tokyo-based Asahi Breweries to sell Orion
Draft canned beer in all prefectures, other than Okinawa, from
November.
Earlier in June, Asahi Breweries reported that its first-quarter
loss narrowed to Y278 million from Y5 billion the same quarter
last year on lower costs at its money-losing soft-drink unit and
the effect of a change in employee pension fund accounting
rules.
At the end of 2001, Asahi Breweries had negative working
capital, as current liabilities were Y618.85 billion while total
current assets were only Y412.63 billion.
DAIEI INC: Dream Kaihatsu Gives Up Rights to Kanagawa Monorail
--------------------------------------------------------------
Struggling retail giant Daiei Inc.'s wholly owned unit, Dream
Kaihatsu, has abandoned its rights to a monorail line in
Kanagawa Prefecture. The line has been inoperative for 35 years,
Japan Times said Thursday.
The line was launched in 1966 to run between East Japan
Railway's Ofuna Station in the Yokohama suburb of Kamakura and
Yokohama Dreamland amusement park, but was shut down in 1967 due
to structural problems.
Daiei said it has notified the Yokohama Municipal Government of
its decision to abandon the monorail operation.
TCR-AP said earlier that Daiei's creditor banks have given
financial support to the company, worth 400 billion yen. The aid
package comprised of 230 billion yen in debt-for-equity swaps
and 170 billion yen debt waiver from its main lenders namely UFJ
Holdings, Sumitomo Mitsui Banking and Mizuho Corporate Bank of
Mizuho Holdings.
The money is expected to help reverse Daiei's negative net worth
by the August 31 interim book closing. The Company fell into
negative net worth as a result of massive losses from its
ongoing restructuring.
FUJITSU LTD: Releases Updated NetCOBAL Software
-----------------------------------------------
Fujitsu Software Corporation, a leading supplier of COBOL
compilers and tools, announced Monday that it is releasing an
updated version of its NetCOBOL product for Microsoft's .NET
platform. NetCOBOL for .NET is Fujitsu's compiler and rich
development environment for COBOL, built for Microsoft Visual
Studio .NET and the Microsoft .NET Framework.
Fujitsu NetCOBOL for .NET Version 1a incorporates:
* Support for the ASP.NET Web Forms designer
* Improved support for the Windows Forms designer
* Support for Web References (web service client proxy
generation)
"NetCOBOL is the only non-Microsoft language that has
implemented support for the Web Forms and Windows Forms
designers," said Ron Langer, director of languages for Fujitsu
Software Corporation "This gives us the advantage of being able
to leverage all the Microsoft tools and make them available to
COBOL programmers. As the only COBOL compiler vendor to provide
direct support for the Microsoft .NET platform, Fujitsu's latest
version of NetCOBOL once again confirms that COBOL is still a
vital programming language."
NetCOBOL for .NET Version 1a is a significant update to the
first version of the product released in April of this year. It
continues to allow companies with existing COBOL assets to
recompile their COBOL85 programs and enhance them using the
technologies available in the Microsoft .NET Framework. The
ability to compile existing code enables a clear migration path
for businesses wanting to move to a platform that can deliver
the cost savings and technological innovation necessary to give
them a competitive edge.
NetCOBOL for .NET blends the reliability of Fujitsu's family of
COBOL compilers with the Microsoft .NET Framework and the
Microsoft award-winning development environment: Visual Studio
.NET. The product includes a compiler for the Microsoft .NET
Framework common language runtime engine, support for ASP.Net
and XML Web services, and integration with the Visual Studio
.NET integrated development environment.
This latest version of NetCOBOL for .NET is available
immediately. For more details about NetCOBOL for .NET, visit the
NetCOBOL web site at www.netcobol.com.
TCR-AP reported that Fujitsu Ltd. is planning to cut 2,100 jobs
at its four components factories in Japan. The Company, which
posted a loss of $3.27 billion in 2001, will eliminate jobs at
plants where Fujitsu makes parts such as motherboards for
4computers and other electronic parts for communications
equipment.
MITSUBISHI CHEMICAL: JCR Downgrades Rating to A, Affirms Rating
---------------------------------------------------------------
Japan Credit Rating Agency has downgraded the rating of
Mitsubishi Chemical from A+ to A, affirming the J-1 rating on
the CP program.
Issue:
Amount(bn) / Issue Date / Due Date / Coupon
convertible bonds no.8
Y50 / Mar. 6, 1989 / Mar. 31, 2004 / 1.60%
CP:
Maximum: Y170 billion
Backup Line: 0%
Rationale
Mitsubishi Chemical is the largest chemical firm in Japan. It is
engaged in petrochemicals, pharmaceuticals and functional
materials.
The company has been making alliances as well as disposing of
facilities, facing severe business environment. These measures,
however, have not produced good results to date.
Petrochemicals division plunged into loss in fiscal 2001 due to
fall in demand while the earnings of pharmaceuticals increased,
supported by consolidation of Mitsubishi Welpharma and
introduction of new drugs. The operating profit was a third of
the originally forecast amount. The company plunged into a large
net loss as a result of large amount of extraordinary loss
incurred due to write-downs of assets and severance payments. It
plans to increase both the revenue and profit sharply in fiscal
2002, assuming the passing of the prices of raw materials to the
petrochemical product prices, recovery of demand for IT related
products, contribution of Mitsubishi Welpharma and growth of
drugs. However, no optimism is guaranteed, given the increased
uncertainty over the demand both in Japan and abroad.
The company has frequently incurred net losses recently,
impairing the equity capital. Given the business environment and
portfolio, it is unlikely that the financial structure will
improve sharply in the foreseeable future. JCR downgraded the
rating for the company, accordingly.
NIPPON MEAT: Harsher Penalty Likely for Chairman Okoso
------------------------------------------------------
The Ministry of Agriculture, Forestry and Fisheries decided last
Wednesday to demand that Nippon Meat Packers Inc slap harsher
disciplinary measures on Chairman Yoshinori Okoso, according to
Japan Today on Friday.
The farm ministry said that the company's decision to have Okoso
give up the chairmanship, including the demotion of president
Hiroji Okoso to senior managing director, is too lenient in view
of the seriousness of the beef labeling fraud committed by the
company.
Nippon Meat earlier admitted Nippon Food falsely labeled at
least 1.3 tons of imported beef as domestic beef to obtain state
funds under a buyback program introduced after the discovery of
mad cow disease in Japan last September.
Nippon Meat has seen its sales plummet since the scandal came to
light. The firm has limited its beef-related business activities
at the farm ministry's request, and many supermarkets have
pulled Nippon Meat's products from their shelves.
NIPPON TELEGRAPH: Hiring Two Banks to Handle Bond Sale
------------------------------------------------------
Nippon Telegraph & Telephone Corporation has hired Nomura
Holdings Inc. and Merrill Lynch & Co. to arrange a sale of its
10-year bonds, Bloomberg said Thursday.
Other details and the timing haven't been decided.
According to TCR-AP, Nippon Telegraph and Telephone Co (NTT)
would review the draft of recommendations on its interconnection
charges. Facing challenging financial situations, NTT East and
NTT West are not in a position to accept changes to be in made
in interconnection charges, which will result in decline in
service revenues
SNOW BRAND: Planned JV Company to Use 'MEGMILK' Brand
-----------------------------------------------------
Scandal-hit Snow Brand Milk Products Co. will use the brand
"MEGMILK" for an upcoming series of milk products launched by
the planned company it will form in conjunction with allies
National Federation of Agricultural Cooperative Associations
(Zen-noh), National Federation of Dairy Cooperative Associations
(Zenrakuren) and Norinchukin Bank.
According to a Kyodo News report, combining the first three
letters of the Japanese word "megumi," which signifies nature's
bounty, and the English word "milk" derived the brand.
Snow Brand Milk is trying to recover after posting its huge
losses of 71.74 billion yen last business year as a result of
the Snow Brand Food Co scandal.
=========
K O R E A
=========
DONGBU ELECTRONICS: Fails to Forge Deal With TI
-----------------------------------------------
Amkor Technology, Inc. confirmed Wednesday that Texas
Instruments, Dongbu Electronics and Anam Semiconductor, Inc.
(ASI) have been unable to come to terms on a letter of intent
regarding technology transfer and manufacturing-purchase
agreements. The execution of this letter of intent was a
condition precedent to the shareholders agreement between Amkor
and Dongbu, under which Dongbu agreed to purchase 20 million
shares of ASI's common stock from Amkor.
Amkor and Dongbu are in continued discussions to explore ways in
which the share purchase transaction may still be completed.
Amkor is the world's largest provider of contract semiconductor
assembly and test services. The company offers semiconductor
companies and electronics OEMs a complete set of microelectronic
design and manufacturing services.
More information on Amkor is available from the company's SEC
filings and on Amkor's web site: www.amkor.com
Contact:
Amkor Technology, Inc.
VP Corporate Communications
Jeffrey Luth, 480/821-2408 ext. 5130
jluth@amkor.com
HYNIX SEMICONDUCTOR: Shareholders Offer Reform Plan
---------------------------------------------------
A group of minority shareholders at Hynix Semiconductor Inc.
have submitted a restructuring plan for the Company to a special
committee led by the firm, the Korea Herald said Friday.
The plan includes writing off of Hynix' debts worth 2 trillion
won, capital increase after capital reduction worth 1.5
trillion, and extend its deferment of debt payment.
The group alleged that the key to keeping the Company afloat is
massive debt forgiveness and a capital write-down.
The group called on the creditors to unload their stake in block
sales.
PAN OCEAN: Creditors Ready to Sell Off Shipping Firm
----------------------------------------------------
Creditors of Pan Ocean Shipping Co. are prepared to sell off the
shipping firm to a foreign buyer in 2003, Digital Chosun said
Wednesday.
Governor Jung Keun-yong of Korea Development Bank (KDB) said his
bank would set up a detailed plan before the end of this year to
outline the sale process.
KDB holds 64.5 percent stake in the firm.
Keun-yong said the sale would attract many foreign buyers, as
the liner's profitability has significantly improved.
Pan Ocean underwent a series of creditor-arranged restructuring
plans and court mediations for about 15 years since 1987 before
the court decided to release the firm from court control on May
21.
SEOUL BANK: President Kang Jung-Won Receives Warning From BAI
-------------------------------------------------------------
SeoulBank President Kang Jung-won has received a warning from
the Board of Audit and Inspections (BAI) for haunting room
salons and playing golf on Company funds, Digital Chosun
reported Thursday.
The BAI inspection team uncovered Kang's spending of W20 million
from the Company's business fund on such frivolous habits.
Kang admitted that he underwent the BAI investigation, but said
he had not received any formal warning.
The President is expected to lose his post, as his Company will
be merged with Hana Bank before the end of 2002.
SEOULBANK: Potential Merger With Hana Bank Positive, Fitch
----------------------------------------------------------
Fitch Ratings, views the potential merger between Hana Bank and
Seoulbank as short-term neutral but with positive long-term
implications. This follows the decision by the Korean government
to enter into exclusive talks with Hana Bank as the preferred
final bidder to buy Seoulbank.
Hana Bank has offered an all-stock bid, which values Seoulbank
at KRW1.1 trillion. This represents a 20 percent premium over
Seoulbank's net worth (its shares are not currently traded) and
would give the government a 30 percent stake in the new bank.
The bid has also been sweetened by the extension of a minimum
share price guarantee to the government, which would be
compensated for future declines in the new bank's share price
below an undisclosed minimum level. The government would be
required to sell off its entire stake in the new bank within 18
months of completing the deal.
While a merger deal has yet to be signed and the final terms and
conditions disclosed, Fitch does not consider that there is
significant downside risk for Hana Bank, should the deal
proceed. Of some concern is the share price guarantee. No
details have been released to date, but the potential
compensation payable to the government could be significant.
Still, the new bank would enjoy enhanced reach and franchise.
On a pro-forma basis, the combined bank would rank third in
Korea in terms of total assets (around USD70 billion equivalent)
behind Kookmin and Woori Banks, and boast a domestic network of
around 600 branches. Also, in preparation for its possible sale,
Seoulbank management has overhauled and cleaned up the bank;
asset quality pressures have been substantially reduced due to
aggressive write-offs and increased provisioning levels, while
staff numbers have been slashed since the onset of the Asian
crisis. Fitch estimates pro-forma NPLs at 1.6 percent, with
reserve coverage approaching 100 percent, making the new bank
one of the strongest and healthiest in the country.
Fitch considers that Hana Bank management will more than likely
need to adopt an accommodative stance with regards to possible
staff lay-offs and branch closures if the merger proceeds. Also,
the radical downsizing of Seoulbank in recent years should help
keep potential lay-offs at modest levels. Nonetheless, a
possible tie-up between Hana Bank and Seoulbank does hold out
the opportunity for increased efficiency levels, greater
competitiveness and improved customer service over time.
SEOUL BANK: Moody's Rating on Review For Possible Upgrade
---------------------------------------------------------
Moody's Investors Service has affirmed Hana Bank's credit
ratings but placed its D bank financial strength rating (BFSR)
on review for possible downgrade after the government's
announcement that that the bank is the preferred bidder for
SeoulBank. At the same time, Moody's placed all of SeoulBank's
ratings on review for possible upgrade.
The affirmation of Hana Bank's credit ratings and the review of
its BFSR rating reflect uncertainties over whether potential
synergies from the merger in the medium term will be able to
offset the increased credit risk due to SeoulBank's relatively
weaker financial fundamentals. Meanwhile, integration challenges
are likely to be significant. As for SeoulBank, the resolution
of its ownership issue in the near horizon is credit positive.
In addition, the bank would enjoy an improved credit profile as
part of a larger and stronger franchise.
The transaction will be structured as a stock merger. The
combined entity would have an estimated asset base of KRW70
trillion, based on year-end 2001 figures, making it the third
largest bank in Korea, after Kookmin Bank and Woori Bank.
The reviews will focus on strategic and cost benefits that could
arise from a larger franchise as well as impact on the combined
bank's financial fundamentals.
Hana Bank had total assets of KRW47.4 trillion as of December
2001. With W22.3 trillion in assets as of December 2001,
SeoulBank is the smallest of the nationwide banks. Both banks
are headquartered in Seoul.
The following ratings are under review:
Hana Bank: bank financial strength rating of D for possible
downgrade.
SeoulBank: senior/subordinated debt ratings of Baa3/Ba1; long-
term/short-term deposit ratings of Baa3/Prime-3; and bank
financial strength rating of E+. All are under review for
possible upgrade.
The following ratings were unaffected:
Hana Bank: senior debt rating of Baa2 and long-term/short-term
deposit ratings of Baa2/Prime-3 was affirmed.
===============
M A L A Y S I A
===============
ADVANCE SYNERGY: Unit's Winding-Up Petition Scheduled
-----------------------------------------------------
The Board of Directors of Advance Synergy Berhad (ASB) informed
that it has been notified by the solicitors of KMSB, Mohd. Rawi,
Andrew & Associates, on 19 August 2002 that there is a Winding-
up Petition No. D8-28-293-2002 against Kedah Marble Sdn Bhd
(KMSB) which has been fixed for hearing at the High Court of
Malaya at Kuala Lumpur in Wilayah Persekutuan Malaysia on 21
August 2002 (hereinafter referred to as "Petition").
The KMSB solicitors have also informed the Company that the
Petition has been postponed to 2 October 2002. The Petition
which was dated 25 March 2002 was served on KMSB on or about 19
April 2002 and received by KMSB on 13 May 2002, by Malaysia
Airports Sdn Bhd in respect of non-payment of a sum of
RM47,372.68 together with interest thereon at the rate of 1% per
month from the 31 August 1995 to the date of full settlement and
cost of RM1,089.00. The Petitioner is a trade creditor of KMSB
and the debt was incurred in the normal course of business.
An affidavit in reply to the Petition may be filed by Mohd.
Rawi, Andrew & Associates to oppose the Petition.
ASB holds an equity interest of 70% in KMSB. However, the
management control of KMSB is exercised by the minority
shareholder, Perbadanan Kemajuan Negeri Kedah, pursuant to a
shareholders' agreement and ASB does not exercise any
significant influence over the Board of Directors of KMSB.
Accordingly, the accounts of KMSB have not been consolidated
with the accounts of ASB Group since the financial year then
ended 30 September 1994.
Based on the audited accounts of KMSB for the financial year
ended 31 December 1999, the net tangible assets (NTA) value of
KMSB was RM50,248,861. The total original cost of investment in
KMSB by ASB amounted to RM52,657,500.00. As at 31 December 2001,
the book value of ASB's investment in KMSB amounted to
RM35,174,203.00 after a provision for diminution in value to
reflect the proportionate NTA value of KMSB as at 31 December
1999. As adequate provision for diminution in value of ASB's
investment in KMSB has been made, the financial impact that may
arise as a result of any legal action is not expected to be
material. There will be no operational impact on ASB Group as
the operations of KMSB are separate and independent of the ASB
Group.
ASB, as a shareholder of KMSB, intends to appear in the winding-
up proceedings and to oppose the Petition.
BESCORP INDUSTRIES: SC's Proposal Approval Pending
--------------------------------------------------
Bescorp Industries Berhad (Special Administrators Appointed), in
Reference to its Requisite Announcement made on 19 October 2001
and the announcement made on 5 August, 2002 on the Proposed
Corporate and Debt Restructuring Scheme, informed that
submissions have been made to the Securities Commission (SC),
Foreign Investment Committee (FIC) and Ministry of International
Trade and Industry (MITI) on 11 December 2001.
Approvals from FIC and MITI were obtained on 22 February 2002
and 18 March 2002 respectively. However, the approvals from the
SC for the Proposal, and the KLSE for the listing and quotation
of the new shares have yet to be obtained.
The Kuala Lumpur Stock Exchange has vide its letter dated 19
August 2002 approved an extension of 4 months from 11 August
2002 to 10 December 2002 to enable BIB to obtain all the
necessary approvals from the regulatory authorities necessary
for the implementation of its Proposal.
FORESWOOD GROUP: Provides Financial Regularization Status
---------------------------------------------------------
Foreswood Group Berhad, pursuant to Paragaph 8.14 of the Kuala
Lumpur Stock Exchange (KLSE) Listing Requirement and Practice
Note No. 4/2001 (PN4), announced that it is an affected listed
issuer pursuant to PN4 as Receivers and Managers has been
appointed over the properties of its wholly owned subsidiary,
Foreswood Industries Sdn Bhd by AmMerchant Bank Berhad.
The announcement serves as the Company First Announcement, in
accordance with the requirement of PN4.
OBLIGATIONS PURSUANT TO PRACTICE NOTE NO. 4
Pursuant to PN4, the Company is required to comply with the
following disclosure requirements:
(a) make the First Announcement;
(b) announce the status of its plan to regularize its
financial condition on a monthly basis until further notice from
KLSE;
(c) announce its compliance or failure to comply with a
particular obligation imposed pursuant to PN4, as and when such
obligation becomes due; and
(d) submit monthly reports to the KLSE in the manner set out
under PN4 accompanied by statutory declarations within ten (10)
markets days from the end of the month reported until further
notice from the KLSE.
CONSEQUENCES OF NON-COMPLIANCE
In the event that the Company fails to comply with the
obligations stipulated under PN4, the Company may be deemed as a
listed entity whose financial condition does not warrant
continued trading and/or listing. However, the suspension or
delisting of the Company is subjected to the KLSE.
The Company intends to comply with the obligations stipulated
under PN4 and ensure the continued trading and listing of its
shares. Steps have already been taken to regularize its
financial condition.
STATUS OF REGULARISATION PLAN
The Company had met and discussed with the Receivers and
Managers and it was proposed that the Company submit a
restructuring proposal to the Receivers and Managers and the
Bank for their consideration.
FORESWOOD GROUP: Releases Unit's Status Update
----------------------------------------------
Foreswood Group Berhad, in reference to the Query Letter by KLSE
reference ID: JL-020816-34288 regarding the appointment of
Receivers and Managers of Foreswood Industries Sdn. Bhd., a
wholly owned subsidiary of the Company, as requested furnished
the following additional information for public release:
1. Date Event
2 May 2002 Writ of Summon served
11 July 2002 Default Judgment entered
25 July 2002 Statutory Notice of Demand Pursuant to
Section 218 of the Companies Act, 1965
15 August 2002 Receivers and Managers appointed
2) Details of FISB
Date of Incorporation : 12 May 1983
Company No. : 101159-V
Registered Office : Level 3 61 Block B Taman Sri Sarawak Mall
Jalan Tunku Abdul Rahman
93100 Kuching, Sarawak
Tel : 082 428626
Fax : 082 423626
Corporate Office : No. 30, 2nd Floor, Wisma Kojisa,
Jalan Bako, 96000 Sibu, Sarawak.
Tel : 084 317225
Fax : 084 332590
Board of Directors : Mr Ting Kai Hoon - Managing Director
Mr Ling Li Kuang
Encik Juzi Bin Jaujie @ Bajuri Bin
Jaujie
Puan Fatimah Bt. Sidi
Paid-Up Capital : RM16,000,000
Authorized Capital : RM25,000,000
Name of Shareholders : Foreswood Group Berhad (100% owned)
Location of Sawmill : (i) Sibu Occupation Ticket 3472,
20851, 22425, 35420 & Sibu
Lease 47040, Ensurai, Sibu, Sarawak
(ii) Sublot 1 of Parent Lot 16 Block 12
Buan Land District, Tanjung Manis
Processing Zone, Sarikei, Sarawak
Principal Activities : Production of sawn timber, kiln
drying, chemical treatment of wood products, finger jointing and
the manufacturing of various moulding products.
3) Net Book Value of property
Total : RM197,975,032 as at 31 March 2002.
4) Financial & Operational Impact
With the appointment of the Receivers & Managers, the trade
creditors of FISB would take it as testimonial of the ill
financial health of the company hence the suppliers/(creditors)
now demand all purchases be on cash term only hence the
operations and production of the Company can be adversely
affected.
5) Expected losses
Expected losses at this point is difficult to quantify, the
quantum of which would depend on how the AmMerchant Bank Berhad
and the Receivers & Managers manages the day to day operations
and production activities from now on.
6) Steps taken
Foreswood Group Berhad had met and discussed with the
Receivers and Managers and it was proposed that Foreswood Group
Berhad submit a restructuring proposal to the Receivers and
Managers and the bank for their consideration.
HAI MING: PRE Resolutions Pass at EGM
--------------------------------------
On behalf of the Board of Directors of Hai Ming Holdings Berhad,
Public Merchant Bank Berhad announced that all the resolutions
as set out in the Notice of Extraordinary General Meeting (EGM)
dated 2 August 2002 in relation to the Proposed Restructuring
Exercise, were duly passed at the EGM of the Company held on 17
August 2002.
The conditions as stated in the Securities Commission (SC)
letter dated 15 August 2002 and in particular, condition 2(ii)
as imposed by the SC were duly announced to the shareholders at
the said EGM as required by the SC.
KUALA LUMPUR: Fails to Meet Listing Requirements
------------------------------------------------
Kuala Lumpur Industries Holdings Berhad (Special Administrators
Appointed) has not been able to comply with Paragraph
15.10(1)(c) of the Listing Requirements of the Kuala Lumpur
Stock Exchange with regard to the composition of Audit Committee
due to these reasons:
i) None of the existing Directors of the Company fulfill the
criteria's as set out under Paragraph 15.10(1)(c) of the Listing
Requirements; and
ii) The Company would eventually become a non-listed company
after the transfer of the listing status to the new entity upon
the completion of the restructuring exercise. As such, it would
not be feasible for the Company to incur costs to employ a
qualified person at this moment as it would be a burden to the
Company especially when the Company is depending on the
remaining assets to pay off its expenses and overheads.
In view of the foregoing, the Company applied to the Exchange
and was granted a further extension of time until 31 December
2002 to comply with the Listing Requirements.
Days ago, CIMB announced that the KLSE, vide its letter dated 19
August 2002 approved the Company's application for an extension
of time of two (2) months from 5 August 2002 to 5 October 2002
to enable the Company to obtain all necessary approvals from the
regulatory authorities pursuant to Paragraph 5.1 of Practice
Note No. 4/2001 of the Listing Requirements of the Kuala Lumpur
Stock Exchange.
KUANTAN FLOUR: Reaches Settlement Agreement With Multi-Purpose
--------------------------------------------------------------
The Directors of Kuantan Flour Mills Bhd announced that the
Company and Multi-Purpose Finance Berhad (now known as Alliance
Bank Malaysia Berhad) has agreed to and executed on 15 August
2002 a Settlement Agreement in connection with the full and
final settlement of the Suit No. D3-22-3866-1998 and the Appeal
by the Company against the Summary Judgment under the Suit, by
the final payment of RM3,750,000.
ABMB has on 20 August 2002, confirmed clearance of the payment
of such amount and, thereby, the settlement of the matter.
LONG HUAT: KLSE Rejects Time Extension Request
----------------------------------------------
Long Huat Group Berhad, in reference to its previous
announcements dated 2 and 9 August 2002 in relation to L.Huat's
plan to regularize its financial condition under PN4, announced
that the Kuala Lumpur Stock Exchange has rejected its
application for an extension of time to 15 September 2002 to
comply with the obligation set out in paragraph 5.1(a) of PN4.
Nevertheless, L.Huat is targeting to sign the relevant sale and
purchase agreement with Behrang Properties Sdn Bhd and
Perbadanan Kemajuan Negeri Perak and consequently, the release
of the Requisite Announcement by the first week of September
2002.
LONG HUAT: RHB Bank Withdraws Winding Up Petition
-------------------------------------------------
Long Huat Group Berhad, in relation to the notice of winding-up
petition served on Long Huat Group Timber Industries Berhad
(LHGTIB), the previous name of L.Huat, by RHB Bank Bhd,
announced that the Petition was served on L.Huat as a second
defendant for the amount outstanding under a bank facility
granted to the first Defendant Ikman Industries Sdn Bhd (Ikman),
a wholly owned subsidiary of L.Huat.
However, the petitioner withdrew the petition on 9 August 2002.
The amount outstanding under the Loan Facility as at 31 January
2002 is RM1,272,062.62 with interest charged thereon at the rate
of 3.5% per annum + Base Lending, as follows:
i) 10.05% per year for the period from 15 November 2000 to 22
December 2000
ii) 10.30% per year for the period from 23 December 2000 to
23 September 2001
iii) 9.90% per year for the period from 24 September 2001 to
31 January 2002.
MENTIGA CORPORATION: Replies to KLSE's Winding Up Query
-------------------------------------------------------
Mentiga Corporation Berhad, in reply to Query Letter by KLSE
reference ID: CY-020816-71324 regarding the Kuala Lumpur High
Court Winding-Up Petition No. D6-28-385-2002 Affin Bank Berhad
(formerly known as Perwira Affin Bank Berhad) and Kuala Lumpur
High Court Winding-Up Petition No. 28-20-2001 Standard Chartered
Bank Malaysia Berhad against the Company, advised as follows:
1. Winding-Up Petition No. D6-28-385-2002 filed by Affin Bank
Berhad
a. The date of presentation of the winding-up petition;
Date of presentation of petition : 2 May 2002
b. The particulars of the claim under the petition, including
the amount claimed under the petition and the interest rate;
Amount claimed: RM26,787,482.25
Interest rate: 2.5% above Base Lending Rate (BLR) (BLR @ 6.8%
per annum) daily interest with monthly compounding
c. The details of the default or circumstances leading to the
filing of the winding-up petition against your Company;
On 25 January 2002 Affin Bank Berhad issued a Notice pursuant to
Section 218 (2)(a) of the Companies Act 1965, to the Company
requiring the Company to pay the amount demanded within 21 days
from the service of the Notice.
Twenty one (21) days have since lapsed and the Company has
failed to pay or satisfy the said sum or any part thereof or to
make any offer to the Petitioner to secure or compound the same.
d. The financial and operational impact of the winding-up
proceedings on the group;
The Company is in the midst of finalizing a debt and corporate
restructuring proposal to address its financial condition and is
currently seeking suitable assets to be injected into the
Company. Therefore the Company is unable to determine the
operational and financial impact of the Winding-up Petition on
the group unless the Company finalizes its debt and corporate
restructuring proposal.
e. The expected losses, if any, arising from the winding-up
proceedings.
The expected losses of the Winding-up Petition are not expected
to exceed the total amount claimed together with interest. The
Company is still negotiating with the Petitioner in respect of
the debt and corporate restructuring proposal with a view to a
settlement of all outstanding amounts due to the Petitioner.
2. Winding-Up Petition No. D6-28-20-2001 filed by Standard
Chartered Bank Malaysia Berhad
a. The date of presentation of the winding-up petition and
the date the winding-up petition was served on your Company:
Date of presentation of petition : 11 December 2001
Date petition was served on the company : 13 March 2002
b. The particulars of the claim under the petition, including
the amount claimed under the petition and the interest rate;
Amount claimed: RM342,590.46
Interest rate: 9.3% per annum ( 2.5% per annum above Base
Lending Rate (BLR) at 6.8% per annum)
1% per annum penalty interest computed on daily basis on all
overdue amount beginning from 1.11. 2000 until full settlement
Amount claimed: RM1,309,055.08
Interest rate: 9.3% per annum ( i.e 2.5% per annum above Base
Lending Rate (BLR) at 6.8% per annum)
1% per annum penalty interest computed on daily basis on all
overdue amount beginning from 1.11. 2000 until full settlement
c. The details of the default or circumstances leading to the
filing of the winding-up petition against your Company;
On 21 June 2001 Standard Chartered Bank Malaysia Berhad issued a
Notice pursuant to Section 218 (2)(a) of the Companies Act 1965
to the Company, requiring the Company to pay the amount demanded
within 21 days from the service of the Notice.
Twenty one (21) days have since lapsed and the Company has
failed to pay or satisfy the said sum or any part thereof or to
make any offer to the Petitioner to secure or compound the same.
d. The financial and operational impact of the winding-up
proceedings on the group;
The Company is in the midst of finalizing a debt and corporate
restructuring proposal to address its financial condition and is
currently seeking suitable assets to be injected into the
Company. Therefore the Company is unable to determine the
operational and financial impact of the Winding-up Petition on
the group unless the Company finalizes its debt and corporate
restructuring proposal.
e. The expected losses, if any, arising from the winding-up
proceedings.
The expected losses of the Winding-up Petition are not expected
to exceed the total amount claimed together with interest. The
Company is still negotiating with the Petitioner in respect of
the debt and corporate restructuring proposal with a view to a
settlement of all outstanding amounts due to the Petitioner.
PAN MALAYSIA: FIC Extends Special Issue Period to December 31
-------------------------------------------------------------
On behalf of the Board of Directors of Pan Malaysia Holdings
Berhad, Commerce International Merchant Bankers Berhad announced
that the Foreign Investment Committee, via its letter dated 6
August 2002, approved an extension to 31 December 2002 for the
Company to implement the Special Issue of 75,270,000 New
Ordinary Shares of RM1.00 each to Bumiputera Investors.
Days ago, TCR-AP reported that the Liquidator of the following
subsidiaries had on 31 July 2002 lodged with the Companies
Commission of Malaysia and with the Official Receiver the
returns of holding of the final meetings (Forms 69):
1. Buana Mewah Sdn Bhd
2. Fibercorp (Sarawak) Sdn Bhd
3. Fiberoptik (Sabah) Sdn Bhd
4. GCIH (Malaysia) Sdn Bhd
5. Giatjaya Enterprise Sdn Bhd
6. Kejora Etika Sdn Bhd
7. Pengkalen Comtec Sdn Bhd
8. Pengkalen HB Property Services Sdn Bhd
9. Pengkalen Hill Resort Sdn Bhd
10. Serba Sinar Sdn Bhd
11. Tenamaju Sdn Bhd
REPCO HOLDINGS: Seeks Financial Regularization Time Extension
-------------------------------------------------------------
Repco Holdings Berhad (Special Administrators Appointed),
further to the Requisite Announcement made by the Company to the
Kuala Lumpur Stock Exchange on 23 April 2002 in compliance with
Practice Note No. 4/2001 (PN4/2001) on the criteria and
obligations pursuant to paragraph 8.14 of the Listing
Requirements, informed that the management of the Company has
been taking steps to address its financial condition and is
continuing to do so.
The Company is currently still awaiting the necessary approvals
of the relevant regulatory bodies in order to implement its
plans to regularize its financial condition. As it is envisaged
that the Company is unlikely to obtain all the necessary
approvals by 22 August 2002, the Company, through its advising
merchant bankers, Commerce International Merchant Bankers Berhad
had, on 14 August 2002, submitted an application to the Exchange
for an extension of time to 30 November 2002 for the Company to
obtain the necessary approvals to regularize its financial
condition.
SIN HENG: Scheme Agreement With ASIH, DC Executed
-------------------------------------------------
On behalf of the Special Administrators (SA) of Sin Heng Chan
(Malaya) Berhad, Southern Investment Bank Berhad (SIBB)
announced that the Company had executed a restructuring
agreement with Alor Setar Industry Holdings Sdn Bhd (ASIH) and
Dato' Choo Keng Weng (DC) (Scheme Agreement) to undertake the
following proposals:
(i) A proposed revision to the original proposed
restructuring scheme, which was announced on 20 February 2001
(Original Proposed Restructuring Scheme), which will be as
follows:
(a) A proposed renounceable rights issue of up to
37,988,750 new ordinary shares of RM1.00 each (Rights Shares),
with a minimum subscription level of 25,000,000 Rights Shares,
at a proposed issue price of RM1.00 per Rights Share on the
basis of two (2) Rights Shares for every one (1) existing
ordinary share of RM1.00 each (Share) in SHCM held on an
entitlement date to be determined later (Proposed Rights Issue).
There will be a minimum level of subscription for the Proposed
Rights Issue at RM25,000,000 (Minimum Subscription Level), as DC
(or any party nominated by DC) will undertake to subscribe for
any un-subscribed portion of the Proposed Rights Issue up to
RM25,000,000 comprising 25,000,000 Rights Shares. DC had
nominated ASIH to be the subscriber. In the event that the level
of subscription for the Rights Shares is at the Minimum
Subscription Level, the balance of the Rights Shares amounting
up to 12,988,750 SHCM Shares will be issued to the financial
institutions creditors of SHCM and three (3) of its subsidiary
companies as set out in Section 2.2 below (Unsecured Scheme
Creditors) as part settlement of the debts outstanding to them
on the basis of one (1) new SHCM Share at a proposed issue price
of RM1.00 each credited as fully paid for every RM1.00 of debt
to be settled (Proposed New Shares Issue);
(b) A proposed issue of RM17,209,000 nominal value of zero
coupon three (3)-year Irredeemable Convertible Unsecured Loan
Stocks (ICULS) at 100% of its nominal value with 17,209,000 free
detachable warrants (Warrants) to the Unsecured Scheme Creditors
on the basis of one (1) new Warrant for every RM1.00 nominal
value of ICULS (Proposed ICULS with Warrants Issue).
The new SHCM Shares and ICULS to be issued pursuant to the
Proposed New Shares Issue and Proposed ICULS with Warrants Issue
shall be placed and deposited with a trustee to be mutually
appointed by ASIH and the Unsecured Scheme Creditors (Trustee)
for and on behalf of the Unsecured Scheme Creditors.
Upon allotment and issue of the ICULS and Warrants, the Warrants
will be detached separately and the Unsecured Scheme Creditors
will sell the Warrants to ASIH via the Trustee for RM0.10 per
Warrant.
The Trustee and ASIH shall enter into a put and call agreement
(Option Agreement) requiring:
* ASIH to purchase:
- all or any remaining new SHCM Shares to be issued to the
Unsecured Scheme Creditors pursuant to the Proposed New Shares
Issue from the Trustee at RM1.00 per SHCM Share; and
- all or any remaining ICULS to be issued to the Unsecured
Scheme Creditors pursuant to the Proposed ICULS with Warrants
Issue from the Trustee at 100% of the nominal value of ICULS.
* The Trustee to sell:
- all or any remaining new SHCM Shares to be issued to the
Unsecured Scheme Creditors pursuant to the Proposed New Shares
Issue to ASIH at RM1.00 per SHCM Share; and
- all or any remaining ICULS to be issued to the Unsecured
Scheme Creditors pursuant to the Proposed ICULS with Warrants
Issue to ASIH at 100% of the nominal value of ICULS.
ASIH will allocate some of the new SHCM Shares and/or ICULS
under the Option Agreement that will be acquired by ASIH from
the Trustee to all the Directors of SHCM and certain Directors
of the subsidiaries of SHCM (Proposed Allocation).
An application on the listing of the ICULS to be issued pursuant
to the Proposed ICULS with Warrants Issue will be sought from
the Kuala Lumpur Stock Exchange (KLSE). Accordingly, ASIH will
also ensure that the minimum shareholding spread of not less
than 100 holders for the issuance of convertible instruments is
met.
(c) A proposed undertaking by ASIH to convert up to
RM3,016,875 nominal value of ICULS (which it may eventually hold
pursuant to the Option Agreement) by 31 December 2002 or any
soonest possible date, whichever is later, to enable SHCM to
meet the minimum share capital requirement for company listed on
the Main Board of the KLSE (Proposed Conversion Undertaking).
(ii) Proposed establishment of an employees' share option
scheme (ESOS) granting options to eligible employees and
Executive Directors of SHCM and its subsidiaries (SHCM Group) to
subscribe up to 10% of the issued and paid-up share capital of
the Company at any time during the existence of the ESOS
(Proposed ESOS).
In addition, the Company also proposes to implement the
following:
(a) Proposed disposals of land and buildings by SHCM and Sin
Heng Chan (East Coast) Sdn Bhd (SHCEC), a wholly-owned
subsidiary of SHCM (Proposed Disposals);
(b) Proposed transfer of unquoted shares comprising 1,988,548
Shares in Mauri Fermentation Sdn Bhd (Mauri) by SHCM to its
wholly-owned subsidiary, Southern Farms Sdn Bhd (SFSB) for a
consideration of RM591,070 (Proposed Transfer); and
(c) Proposed increase in authorized share capital from
RM25,000,000 comprising 25,000,000 SHCM Shares to RM150,000,000
comprising 150,000,000 SHCM Shares (Proposed Share Capital
Increase).
The Proposed Rights Issue, Proposed New Shares Issue, Proposed
ICULS with Warrants Issue, Proposed Conversion Undertaking,
Proposed Disposals and Proposed Transfer shall be collectively
referred to as the Proposed Restructuring Scheme.
The Proposed Restructuring Scheme, Proposed ESOS and Proposed
Share Capital Increase shall be collectively referred to as the
Proposals.
For further information, refer to the document attached at
http://www.bankrupt.com/misc/TCRAP_SHChan0826.pdf.
SRI HARTAMAS: Obtains SC's Nod on Proposed Disposal
---------------------------------------------------
On behalf of Sri Hartamas Berhad (Special Administrators
Appointed), Commerce International Merchant Bankers Berhad
announced that the Securities Commission had, via its letter
dated 14 August 2002 granted its approval to SHB to implement
the Proposed Disposals and Set-Off of the Subject Assets as a
means to settle Outstanding Debts of SHB and its subsidiaries
(SHB Group). Details of the Subject Assets are set out in Table
A at http://www.bankrupt.com/misc/TCRAP_SriHart0826.pdf
SC had also approved the method of utilization of the proceeds
to be raised from the Proposed Disposals (Proceeds). Details of
the utilization of the Proceeds are set out in Table B at
http://www.bankrupt.com/misc/TCRAP_SriHart0826.pdf
The following conditions must be met in respect of the Proposed
Disposals and the utilization of the Proceeds:
(a) SHB must fully disclose in the Information Circular to
its shareholders regarding the basis and justification on the
sales consideration/transfer value of the Subject Assets;
(b) Approval of the SC must be obtained for any change in the
utilization of the Proceeds; and
(c) SHB is required to comply fully with the requirements of
the SC's Policies and Guidelines on Issue/Offer of Securities in
relation to the implementation of the Proposed Disposals.
* CDRC Releases 15 August 2002 Status
-------------------------------------
A press conference was held on 20 August 2002 to officiate the
closure of the Corporate Debt Restructuring Committee (CDRC).
The press conference was chaired by Tan Sri Dato' Dr. Zeti
Akhtar Aziz, Governor of Bank Negara Malaysia, and attended by
Dato' Azman Yahya, Chairman of CDRC, members of the CDRC
Steering Committee and officials of Bank Negara Malaysia.
The Governor stated that the closure of CDRC marked a major
milestone achieved in the restructuring process of the banking
system. The Governor said that the early and comprehensive
approach to restructuring has resulted in a strengthened and
more resilient banking sector that is able to meet the needs of
the domestic economy. CDRC, together with Danaharta and
Danamodal, comprised the institutional arrangements that were
put in place to resolve problems of non-performing loans in the
banking system that emerged during the Asian financial crisis.
This strategy aimed to preserve stability and enhance the
effectiveness and competitiveness of the system. These
institutional arrangements were also complemented by measures to
consolidate the banking sector to diversify the financial
infrastructure and to strengthen the regulatory and supervisory
framework.
Today,
* The banking sector is less fragmented, with the number of
banking institutions reduced from 69 institutions prior to
crisis, to 30 institutions post-merger;
* The level of capitalization of the banking system has
improved to 12.8% as at end-June 2002;
* Non-performing loans of the banking sector has stabilized
at 8.1% as at end-June 2002;
* The profitability position of the banking sector has
improved, with the pre-tax profit for the first half of 2002
increasing by RM0.7 billion to RM4.5 billion;
* Lending activities of the banking sector has continued to
increase, with loan approvals and disbursements recording strong
growth of 10% and 7% respectively compared to the corresponding
period in 2001;
* The financial sector is more diversified, with a broader
and deeper bond market providing an alternative source of
funding for the corporate sector, thus reducing over-reliance on
the banking sector. Outstanding private debt securities have
increased from 16.5% of GDP pre-crisis to 29% of GDP in 2002;
The efficiency of the domestic banking sector has improved, with
the narrowing of interest rate margins. The efficiency levels
between domestic and foreign banking institutions have also
narrowed. The banking institutions are also offering a wider
range of banking products and services, including the use of new
delivery channels that keep abreast with technological
developments.
* The strengthening of the regulatory and supervisory
framework of development financial institutions (DFIs) will
place the DFIs in a better position to complement the banking
sector in meeting the differentiated financing needs of the
economy; and
* The existing supervisory and regulatory framework in place
allows for early detection of emerging problems, which
facilitate early remedial action to be taken to ensure that the
overall stability of the system is preserved.
In the briefing by Dato' Azman Yahya, he presented the status of
the cases and the recovery profile of the resolved debts under
the purview of CDRC from its inception in 1998 to 15 August
2002. As at 15 August 2002, CDRC has resolved 47 cases with
total debts amounting to RM43.971 billion. This included the
debt restructuring of Land & General, which was approved by its
foreign bondholders on 13 August 2002. In total, the resolved
cases represented approximately 65% of the total cases under the
auspices of the debt mediating agency.
Of the 47 cases resolved, 28 have been fully implemented and 19
are pending implementation. Johor Corporation, Sistem Transit
Aliran Ringan Sd Bhd (STAR) and Projek Usahasama Transit Ringan
Automatik Sdn Bhd (PUTRA) are amongst the companies, which have
fully implemented their restructuring plans, whilst the Mycom
Group of Companies and Gadek (M) Bhd are amongst those in the
process of implementing their restructuring plans. The recovery
profile of the resolved cases has shown that 83% of the recovery
proceeds were in the form of cash, redeemable instruments and
rescheduled debts.
As at 15 August 2002, only the debt restructuring of the Lion
Group amounting to RM8.6 billion remained to be approved by its
creditors. The creditors are expected to vote on the proposed
restructuring scheme as approved by both the Creditors Steering
Committee of Lion Group and the Securities Commission in end
August/early September 2002.
Upon the closure of CDRC, the respective account's Creditors
Steering Committee and Pengurusan Danaharta Nasional Berhad
would monitor the Lion Group and cases, which are pending
implementation. Dato' Azman Yahya, in concluding his
presentation, said that it was hoped that with the closure of
CDRC, bankers and borrowers will work together, on a voluntary
basis, to address any large NPLs in the future, if any.
RESOLVED CASES RM 9.71 billion
Approved by lenders but pending implementation
1 Mycom Group of Companies
2 Negeri Sembilan Cement Industries Sdn Bhd
3 MetroVision Television Network
4 Dataprep Holdings Bhd
5 Hai Ming Holdings Berhad
6 Gadek (M) Berhad
7 Idris Hydraulic (M) Bhd
8 Cygal Berhad
9 Plantation & Development (M) Bhd
10 Trans Capital Holding Bhd
11 Nam Fatt Corporation Bhd
12 Sistem Televisyen Malaysia Berhad (TV3)
13 Chase Perdana Berhad
14 Johan Holdings Berhad
15 George Kent (M) Berhad
16 Kretam Holdings Berhad
17 Sriwani Holdings Berhad
18 Perbadanan Kemajuan Negeri Pahang (PKNP)
19 Land & General
FULLY IMPLEMENTED RM 34.26 billion
20 Renong Bhd
21 TIME Engineering Bhd
22 Johor Corporation
23 Titan Group
24 Projek Usahasama Transit Ringan Automatik Sdn Bhd (PUTRA)
25 United Engineers (M) Bhd
26 Sistem Transit Aliran Ringan Sdn Bhd (STAR)
27 Linkedua Bhd
28 Expressway Lingkaran Tengah Sdn Bhd (ELITE)
29 Faber Group Bhd
30 Naluri Bhd
31 PROLINK Development Sdn Bhd
32 Tongkah Holdings Bhd
33 Asian Pac Holdings Berhad
34 Advance Synergy Bhd
35 Tanco Holding Berhad
36 Inter Heritage Sdn Bhd
37 Lien Hoe Corporation Bhd
38 United Merchant Group Bhd
39 Vibrant Omega Sdn Bhd
40 Park May Bhd
41 Pembangunan Bandar Mutiara S/B
42 Setegap Berhad
43 Man Yau Holdings Berhad
44 Orlando Holdings Bhd
45 Chongai Corporation Bhd
46 Tenco Bhd
47 UH Dove Holdings Bhd
Total Resolved Cases RM 43.97 billion
TRANSFERRED TO DANAHARTA RM 2.47 billion
1 NCK Corporation Bhd
2 Abrar Group International Sdn Bhd
3 Jupiter Securities Bhd
4 Timber Master Industries Bhd
5 PERSTIMA Bhd
6 Cableview Services Sdn Bhd
7 Bridgecon Holdings Bhd
8 Abrar Corporation Berhad
9 Magnitude Network Sdn Bhd
10 Red Box (M) Bhd
11 Suasa Unik (M) Sdn Bhd
WITHDRAWN CASES RM 8.67 billion
1 HICOM Holding Bhd
2 KESAS Sdn Bhd
3 Metroplex Berhad
4 First Time Holdings Ltd
5 Diversified Resources Bhd
6 Pengkalen Holdings Bhd
7 Kelanamas Industries Bhd
8 United Mal-Jal Air-Conditioning Sdn Bhd
9 Minho (M) Bhd
10 Econstates Bhd
11 Silver Concept Sdn Bhd
12 Sutera Harbour Golf & Country Club Bhd
13 Beloga Sdn Bhd
14 Nauticalink
REJECTED CASES (Borrowers) RM 3.95 billion
1 Gunawan Iron & Steel Sdn Bhd
2 Parit Perak Holdings Bhd
3 Anson Perdana Bhd
4 Instangreen Corporation Bhd
5 Seremban-Port Dickson Highway
6 Sarawak Clinker Sdn Bhd
7 Taiping Securities Sdn Bhd
8 PTB Westwharft Sdn Bhd
9 Redimarketing Sdn Bhd
10 PSC Industries Berhad
11 Business Focus Sdn Bhd
12 Actacorp Holdings Berhad
13 HVD Holdings Sdn Bhd
14 Intrakota Komposit Sdn Bhd
=====================
P H I L I P P I N E S
=====================
ATLAS CONSOLIDATED: PSE Lifts Trading Suspension
------------------------------------------------
The Philippine Stock Exchange has lifted on Friday the
suspension of shares in Atlas Consolidated Mining & Development
Corporation, AFX Asia reports.
The Exchange said the Company has paid fines for not reporting
on time.
Atlas Consolidated last traded at 1.60 pesos.
TCR-AP reported that Atlas Consolidated Mining & Development
Corporation posted a net loss of 31.528 million pesos in the
first quarter of this year, versus a net loss of 625.698 million
a year earlier.
BELLE CORP: Pays Off US$17M Debt to Deutsche Bank
-------------------------------------------------
Belle Corporation has paid its US$17 million debt to Deutsche
Bank AG as part of its 6 billion-peso debt resolution plan, AFX
Asia reported Friday, citing Belle Corp Vice Chairman Willy
Ocier.
Before paying its loan, the Company restructured its US$68.5
million in floating rate notes and 2 billion pesos in debt owed
to local banks.
Its debt restructuring would help cut Belle's interest payments
by half.
According Belle's Chief Finance Officer Michael Gana, interest
expenses in the first half declined to 179 million pesos from
413 million pesos a year ago.
Ocier said the lower interest expenses, coupled with the sale of
its stake in Highlands Prime Inc., which raised 2.8 billion
pesos, puts Belle on a solid road to profitability.
PHILIPPINE LONG: JG Clarifies Non-Participation in Joint Bid
------------------------------------------------------------
Securities and Exchange Commission (SEC) Chairwoman Lilia
Bautista said JG Summit Holdings Inc and its majority owner John
Gokongwei Jr. have sufficiently clarified the company's
exclusion from the Gokongwei group's joint venture with First
Pacific Co Ltd to take over Philippine Long Distance Telephone
Co.
"We find the assurances and clarifications given by JG Summit
and your client John Gokongwei Jr. that JG Summit is not a
party, nor was intended to be a party to the MoA... to be
sufficient to clarify the matter for the time being," Bautista
said in a letter to Gokongwei lawyer Perry Pe.
But Bautista said Gokongwei should "take more care in reviewing
whatever document will ultimately be disclosed" in the future to
avoid misunderstandings with regulators.
The SEC had asked the company and Gokongwei to clarify reports
that JG Summit was party to the agreement with First Pacific
despite previous claims to the contrary from the Gokongwei camp.
There was also reference to JG Summit in the memorandum of
agreement between Gokongwei and First Pacific, though Gokongwei
had crossed out the reference to the company and countersigned
the deletion when the deal was signed.
PLDT's management has insisted that JG Summit was party to the
deal, and has said it will not allow the transaction because JG
Summit owns a rival phone company. (M&A REPORTER-ASIA PACIFIC,
Vol. No.1, Issue No. 167, August 23, 2002)
PHILIPPINE LONG: Mum on Management Buy-Out Reports
--------------------------------------------------
In a disclosure to the Philippine Stock Exchange (PSE),
Philippine Long Distance Telephone Co said it couldn't confirm
or clarify a reported buyout offer tendered by its chairman
Antonio Cojuangco and president Manuel Pangilinan to First
Pacific Co Ltd.
"The company has no knowledge or information, at the present
time, about the alleged Cojuangco-Pangilinan buyout scheme
concerning First Pacific Co's interest in PLDT. Therefore we
cannot confirm or clarify the said news report," the statement
said.
Yesterday, the M&A Reporter Asia Pacific reported that First
Pacific rejected a report in the Philippine Star, which said
Pangilinan and Cojuangco had presented their offer to buy the
controlling stake in PLDT during First Pacific's board meeting
Monday.
First Pacific said the only transaction it is considering with
regard to the PLDT shares is its joint venture deal with the
Gokongwei group. (M&A REPORTER-ASIA PACIFIC, Vol. No.1, Issue
No. 167, August 23, 2002)
REYNOLDS PHILIPPINES: Director Jorge Navarra Quits Post
-------------------------------------------------------
Jorge B. Navarra resigned from the Board of Directors of
Reynolds Philippines Corporation and all its subsidiaries
effective 31 July 2002.
Navarra was also the Chief Financial Officer and Treasurer of
the Corporation. The Board of Directors shall formally take up
the matter of Mr. Navarra's resignation in its next scheduled
meeting.
For a copy of the press release, visit
http://bankrupt.com/misc/TCRAP_Reynolds0822.pdf
According to TCR-AP, the Company expects to return to
profitability in 2003 with the restructuring of its 3 billion
pesos in debt and capacity expansion this year.
Reynolds President Jaime Gonzales said the Company is confident
it can secure creditors' approval for its rehabilitation
program.
=================
S I N G A P O R E
=================
ASIA PULP: Deutsche Bank, BNP Acknowledge Court Decision
--------------------------------------------------------
Deutsche Bank and BNP Paribas acknowledged the Court's decision
to grant Asia Pulp and Paper one last chance to move the
restructuring forward without further delay. In doing so, the
Court did consider that the Petitioners had legitimate grounds
for complaint.
The Company believes that bringing this action in the Singapore
High Court has accelerated the process of restructuring to the
benefit of all creditors. Deutsche Bank and BNP Paribas will be
keen to see whether the Company keeps its commitment, given to
the Court, to expedite a fair restructuring. On it's part,
Deutsche Bank maintains its commitment to work with IBRA and
with other creditors of APP to bring about the most favorable
resolution for the creditors and the company.
About Deutsche Bank
With approximately 84,500 employees, Deutsche Bank offers its 12
million clients unparalleled financial services in 75 countries
throughout the world. The Bank aspires to be a leading global
provider of integrated financial solutions for demanding clients
and the pre- eminent bank in Germany generating exceptional
value for its shareholders and people.
Deutsche Bank ranks among the global leaders in corporate
banking and securities, transaction banking, asset management,
and private wealth management, and has a significant private &
business banking franchise in Germany and other selected
countries in Continental Europe.
For further information, contact: Deutsche Bank Prakash Krishnan
Communications & Marketing Tel: (65) 6423 8217
ASTI HOLDINGS: Sale of STI Terminated by ATC
--------------------------------------------
The Board of Directors of ASTI Holdings Limited (ASTI) announced
that on or about 22 August 2002, ASTI received a letter from ATC
to terminate the Agreement for its proposed sale of
Semiconductor Technologies & Instruments, Inc., Kelive reports.
August Technology Corporation (ATC) has purported that ASTI has
not been forthcoming in its disclosure with regards to the
business of STI prior to the sale, due to unidentified
''inaccuracies'' and ''breaches of representations and
warranties.
ASTI disputes this claim and both parties will seek to resolve
this matter through legal channels. The Company believes that
this will have a negative impact on ASTI, as the sale was a
necessary step of its continued restructuring efforts.
For more information on Kelive market analysis, go to
http://www.kelive.com/kelive/userview/Home.jsp.
NATSTEEL LTD: Posts Notice of Shareholder's Interest
----------------------------------------------------
Natsteel Ltd posted a notice of changes in substantial
shareholder Temasek Holding's Private) Ltd's interest:
Date of notice to Company: 15 Aug 2002
Date of change of deemed interest: 05 Jul 2002
Name of registered holder: CDP : Keppel Insurance Pte Ltd
Circumstance(s) giving rise to the interest: Open market
purchase
Shares held in the name of registered holder
No. of shares of the change: 92,000
% of issued share capital: 0.02
Amount of consideration per share excluding brokerage, GST,
stamp duties, clearing fee: 1.72
No. of shares held before change: 76,519,945
% of issued share capital: 20.95
No. of shares held after change: 76,611,945
% of issued share capital: 20.97
Holdings of Substantial Shareholder including direct and deemed
interest
Deemed Direct
No. of shares held before change: 47,219,945 29,300,000
% of issued share capital: 12.93 8.02
No. of shares held after change: 47,311,945 29,300,000
% of issued share capital: 12.95 8.02
Total shares: 47,311,945 29,300,000
Based on 365,255,737 shares issued as of April 7, 2002.
THAKRAL CORPORATION: Clarifies FY02 Annual Report
-------------------------------------------------
Thakral Corporation Ltd. replies to queries of the Singapore
Exchange Securities Trading Limited (SGX-ST) in relation to the
Annual Report for the financial year ended 31 March 2002 (Annual
Report) and the Company advised:
(1) Thakral refers to the Report of the Directors item 18 on
page 23 regarding 'Share Options'. The Company noted that the
2002 Scheme and 2001 Plan allows for discounted options to be
granted. Please confirm if discounts were applied and where not
applicable, Rule 852(2) also requires an appropriate negative
statement to be included.
Discounts were applied to the options issued to employees as
follows:
Date of Grant Exercise Price Discount to Market Price
18 June 2001 S$0.100 20%
18 February 2002 S$0.115 Nil
(2) Thakral refers to item 7 on page 44 regarding 'Long-term
Investments'. Please clarify the accounting treatment of 'Long-
term loans receivables' as a Long-term Investment and the
reasons for the increase in allowance for such receivables.
These long-term loans were extended to the minority shareholder
(which is not a related party) of Beijing Wenlu Laser Technology
Co. Ltd (Wenlu) in 1998 when the Group initially invested in
this Chinese Company. These loans are not due within 12 months
from 31 March 2002 and, therefore, have been classified as long-
term investment. Since these loans are unsecured and the
minority shareholder's ability to repay the loans is doubtful,
it was considered prudent to make an allowance against these
receivables. This accounting treatment is in accordance with SAS
25.
(3) Thakral refers to item 13 on page 47 regarding 'Allowances
for doubtful other receivables'. Please provide more details
regarding this item and reasons for the increase of S$6mil in
such provisions.
The details of the allowance are as follows:
31 March 2002 S$'000 31 March 2001 S$'000 Net Movement S$'000
Advances 1,259 1,707 (448)
Deposits 50 0 50
VAT Recoverable 3,198 323 2,875
Royalties 8,679 6,980 1,699
Promotional Support
Receivable 1,535 0 1,535
Others 42 0 42
Total 14,763 9,010 5,753
The increase in allowance indicated above was made to adjust the
value of the respective assets to their recoverable amounts.
Please refer to Note 2 (Financial Assets) on page 36 of the
Annual Report, which also applies to the above. The relevant
extract is furnished below:
"Financial assets include cash and cash equivalents, trade
receivables and other receivables and prepayments. These are
stated at their nominal value as reduced by appropriate
allowances for estimated irrecoverable amounts".
(4) Thakral refers to item 5 on page 39 regarding 'Investment in
Subsidiaries' and item 29 on page 56 regarding 'Contingent
Liabilities'. Thakral noted that the S$107million charge to
exceptional items and request for further details on the charge,
highlighting the reasons for the charge and the impacts of such
charges on the Company. The Company further notes that the
Company has undertaken to provide financial support to Thakral
Overseas Pte Ltd and Thakral Corporation (HK) Ltd. In view of
the net tangible liabilities position of these subsidiaries,
please elaborate on the Company's plans for such subsidiaries
and any possible impacts this would have on the Company.
The S$107 million charge was due to impairment loss on the
investment in the subsidiaries of the Company and is based on
the declining net tangible assets positions of the subsidiaries.
The impact of the S$107 million impairment loss should be viewed
in conjunction with the reversal in allowance for loans to
subsidiaries of S$193 million (also shown in item 5 on page 39)
and is part of the exceptional credit figure of S$85.747 million
(S$193.3 million - S$107.5 million) shown in Note 23 of the
Annual Report. This exceptional credit figure of S$85.747
million was also disclosed previously in the announcement of the
Group's full year results on 6 June 2002.
Thakral clarifies that, as stated on page 56 of the Annual
Report, the Company had undertaken to provide financial support
to Thakral Corporation (HK) Ltd. in the last financial year only
(i.e., year ended March 31, 2001) but has not given any such
undertaking for FY2002 as this subsidiary had a positive net
asset position as at March 31, 2002. With respect to Thakral
Overseas Pte. Ltd. (TOPL), the Company, in its capacity as the
immediate holding Company of TOPL, has issued a letter to TOPL
to the effect that it will provide, to the extent necessary,
continuing financial support to it. TOPL is only an investment
holding vehicle for the Group's PRC subsidiaries and the Group
plans to continue its holding in the same. Any future change in
the net tangible liabilities position of its subsidiary will
have a corresponding impact on the Company.
(5) Thakral refers to item 26 on page 53 regarding Related Party
Transactions. Please confirm if these transactions are with
interested parties and falls under the definitions of Rule 906
of the Listing Manual. If so, please confirm if provisions under
Rule 917-920 have been complied with.
Thakral Corporation confirms that the transactions disclosed in
item 26 on page 53 of the Annual Report are with interested
parties and fall under the definitions of Rule 906 of the
Listing Manual. The Company further confirms compliance with the
provisions under Rule 917-920. Approval for the shareholders in
the Annual General Meeting granted the same held on 27 August
2001. This information will be disclosed in future annual
reports.
TCRAP reported the Thakral Corporation has completed its
financial restructuring scheme in April. The Company's total
debt will be reduced from a current level of approximately S$470
million as at 30 September 2001 to about S$108 million at this
financial year-end. Correspondingly, interest burden will be
reduced from a level of approximately S$26 million in the
current financial year to about S$4 million for next year, based
on the current rate of bank interest.
===============
T H A I L A N D
===============
ADVANCE PAINT: Increases Registration Paid Up Capital
-----------------------------------------------------
Advance Paint & Chemical (Thailand) Public Company Limited
informed that the capital increasing from private placement
allotment was already paid up and completely registered with the
Ministry of Commerce on August 19, 2002.
The registered paid up capital is Bt1,674,800,250 comprise of
167,480,025 ordinary shares at Bt10 par value.
BANGKOK RANCH: Sixth, Seventh Interest Payment Settled
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Bangkok Ranch Planner Limited, as the Plan Administrator of
Bangkok Ranch Public Company Limited, pursuant to the Bankruptcy
Court's approval of the Business Reorganization Plan on August
17, 2000, reported the progress of Plan implementation since the
previous report sent to SET on February 25, 2002, as follows:
Sixth and Seventh interest payment pursuant to Restructured
Facilities Agreement to Rescheduling Creditors
The Company processed the sixth and seventh interest payment
according to the conditions stipulated in the Restructured
Facilities Agreement to all Rescheduling Creditors on March 29,
2002 and June 28, 2002, respectively.
BGES ENGINEERING: Increases Capital, Allocates New Shares
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Ultimate Key Co., Ltd. (the Plan Administrator) as the Plan
Administrator of BGES Engineering System Public Company
Limited, reported the Central Bankruptcy Court's order on August
19, 2002 to approve capital decrease, capital increase and
allotment of new ordinary shares of BGES according to the
rehabilitation plan (the Plan) as follows :
1. Capital Decrease and Capital Increase
1.1. Reduce the registered capital from Bt344,500,000 or
34,450,000 shares with par value of Bt10 to registered capital
about Bt3,666,660 or about 366,666 shares with par value of THB
10.
1.2. After capital reduction, BGES will increase its
registered capital to about Bt73,330,000 or 7,333,000 ordinary
shares with par value of Bt10. 5,500,334 newly issued ordinary
shares will be issued for share acquisition by the investor
(about 75% of total common shares of BGES). 1,466,000 newly
issued ordinary shares will be issued for debt to equity
conversion of creditor group 2, 4, 6-8 and 9 (about 20% of total
ordinary shares of BGES).
Consequently, total newly issued ordinary shares are
Bt69,663,340 or 6,966,334 shares with par value of Bt10.
2. Allotment of new ordinary shares
The Plan Administrator will allot 6,966,334 newly issued
ordinary shares with par value of Bt10 as follows:
2.1 Details of allotment
Allotment No of Ratio Offering Price Subscription Remarks
Shares (Old : New) per Share and Payment
Period
The investor 5,500,334 - 10 (1)
Creditors from
debt to equity
conversion 1,466,000 - 10 (1)
Remark : (1) Will be set after the approval of the Securities
and Exchange Commission (SEC) and the effective of the filing.
2.2 Allotment of unsubscribed shares
According to the Central Bankruptcy Court's order on August 19,
2002, debt to equity conversion of each creditor will be
calculated on the proportion of outstanding debt in the Plan of
each creditor. In the calculation, a fraction of share equal to
or higher than 0.5 will be counted as one more share. A fraction
less than 0.5 will not be counted.
After the calculation, if the total shares from debt to equity
conversion are not equal to 1,466,000 shares, the Plan
Administrator may adjust the amount of shares of each creditor
as appropriate. However, total shares from debt to equity
conversion must not be more than 1,466,000shares.
2.3 The number of shares, which have not been allotted -None-
3. Schedule for the shareholder's meeting in approving the
capital increase/the allotment of new ordinary shares
No resolution of shareholders of BGES is required since the
capital increase and the allotment of new ordinary shares are
following the Plan receiving a special resolution approval by
the creditors in the meeting held on July 5, 2002, and approval
by the Central Bankruptcy Court on shares by relevant
governmental agency and conditions (if any)
4.1 Register the decrease and increase of registered capital to
the Department of Commercial Registration, Ministry of Commerce.
4.2 The offering of newly issued ordinary shares to the
investor, in amount of 75% of total ordinary shares of BGES
after the share acquisition of the investor and debt to equity
conversion, will trigger the mandatory tender offer point.
However, the investor will ask for the waiving of mandatory
tender offer from the SEC.
4.3 The offering of newly issued ordinary shares in the capital
increase of BGES shall be commenced after receiving the approval
of the Securities and Exchange Commission (SEC) and the
effective of the filing.
5. Purpose of capital increase and the use of fund
5.1 To follow the capital increase procedure as indicated in
the Plan.
5.2 To be utilized as BGES's working capital.
6. Expected benefit BGES will receive from the capital
increase/the allotment of new ordinary shares
6.1 To follow the capital increase procedure as indicated in
the Plan to continue BGES's operation.
6.2 To be utilized as BGES's working capital.
7. Expected benefit BGES's shareholders will receive from the
capital increase/the allotment of new ordinary shares
7.1 To follow the capital increase procedure as indicated in
the Plan to continue BGES's operation.
7.2 To be utilized as BGES's working capital.
8. Other details necessary for the shareholders to approve the
capital increase/the allotment of new ordinary shares -None-
9. Schedule of the capital increase/the allotment of new
ordinary shares.
KIATNAKIN FINANCE: TRIS Ups Bt1,000M Sr Notes Ratings to "BBB+"
---------------------------------------------------------------
TRIS Rating Co., Ltd. affirmed Thursday the ratings of Kiatnakin
Finance PLC (KK) and its Bt1,000 million senior debentures at
"BBB+" and assigns a "BBB+" rating to its proposed senior
debentures with two tranches totaling Bt2,500 million. The
proceeds from the proposed debentures will be used to redeem
KK's two existing senior debentures, KK#4 worth Bt1,385 million
due September 2002 and KK#6 worth Bt1,200 million due February
2003 (call option attachable), at a lower funding cost. The
ratings still reflect KK's ability to maintain an acceptable
financial position.
"TRIS Rating" said that KK's net profit for the first half of
2002 was Bt751 million. This demonstrates normal returns after
the company saw exceptional returns from its investments in
loans auctioned by the Financial Sector Restructuring Authority
(FRA) during 1999-2000. KK's performance reflects continuing
progress in the debt restructuring process and the foreclosure
proceedings from KK's investments in the FRA loans. Revenues
from debt restructuring are showing improvement from Bt565
million in 2001 to Bt302 million for the first-half of 2002.
Moreover, revenues from hire purchase loans, especially KK's
used car loan portfolio, grew 24 percent from Bt235 million for
the first half of 2001 to Bt367 million for the first half of
2002.
NATURAL PARK: Share Registration Closes August 27
-------------------------------------------------
N P K Management Service Co., Ltd. as the Plan Administrator of
Natural Park Public Company Limited, notified the closing date
of the share registration on 23 August 2002, at 12.00 a.m.
whereupon the Shareholders whose names appear in the share
register during the said closing period will be entitled to
subscribe for the capital increase ordinary shares.
Since the ratio of the allotment of the capital increase
ordinary shares to the existing Shareholders referenced in item
2 is based on the par value of Bt10 each, while the par value in
the trading system on the said date is based on the former par
value of Bt0.05 prior to the combination of the par value of
shares, the Stock Exchange of Thailand is unable to post the XR
sign for fixing the closing date of the share Registration on 23
August 2002, at 12.00 a.m. notified above.
Therefore, the Plan Administrator notified the change of the
closing date of the share registration From 23 August 2002, at
12.00 a.m. to 27 August 2002, at 12.00 a.m. And as regards the
Other particulars, they are the same as earlier notified.
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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