/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/020916.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, September 16, 2002, Vol. 5, No. 183 Headlines A U S T R A L I A ANACONDA NICKEL: Awarded US$80M From Contractor ANACONDA NICKEL: Posts A$920M Net Loss for First Half ANACONDA NICKEL: Share Drop on A$920M Net Loss Report Likely AUSDOC GROUP: ABN Amro Completes Takeover Offer COLES MYER: Shares Fall Anew Over Boardroom Conflict MACQUARIE BANK: Simon Gautier Found Guilty of Insider Trading PMP LIMITED: Appoints Graham Reaney as Non-Executive Director TYNDALE CENTRAL: Court Probes Mervyn Roach on 12 Charges C H I N A & H O N G K O N G ECYBERCHINA HOLDINGS: Served Winding-up Petition FUJIAN JIUZHOU: Loss-making Trading Firm Loses Shenzhen Listing GUANGNAN (HOLDINGS): Back in the Black After Restructuring HONG PACIFIC: Hearing of Winding Up Petition Set HUNTINGTON INDUSTRIES: Winding Up Hearing Set for October NORTH BEAT: Court Schedules October Winding-Up Hearing SHUN HING: Faces Winding Up Petition WING ON CO: Ups Profit on Closure of Loss-Making Units I N D O N E S I A BANK MANDIRI: IPO Launch Planned for This Year BANK NIAGA: CAHB Submits Final Bid for 51% Stake J A P A N FUJITSU LTD: Slashing 3,000 More Jobs in FY02 HOUFU TOCHI: Court Declares Real Estate Firm Bankrupt HYOGO FUKUSI: Enters Bankruptcy KINKI NIPPON: CFSA Okays Equity Options Listing MATSUSHITA COMMUNICATION: TSE Delists Equity Options MITSUBISHI TOKYO: Posts Notice of New Address K O R E A DAEWOO MOTOR: Schedules October GM-DAT Launch HANBO IRON: Creditors to Complete US$370M Sale This Week HYNIX SEMICON: Creditors Advise Bailout by Deutsche Bank HYNIX SEMICON: KEB Denies Normalization Before Sale Reports KOREA LIFE: Hanwha to Take Over 51% Stake for KRW775.2B SSANGYONG MOTORS: Posts Operating Loss of $8.5M M A L A Y S I A AOKAM PERDANA: Defaults on Debt Payments BERJAYA LAND: Appoints Shuib Bin Ya'Acob as Director BERJAYA SPORTS: Units Purchase 8% Convertible Unsecured Loan BIG STORE: Winding Up Petition Hearing Set on November 26 CHASE PERDANA: Restraining Order Obtained From KLSE HAP SENG: KG Group Proposes Acquisition HUME INDUSTRIES: Stocks Granted Listing From Exchange PANCARAN IKRAB: Randy Chitty Quits General Manager Post PANGLOBAL BERHAD: Unit Discloses Coal Production Volume PAN MALAYSIA: Issues RM1.0 New Shares to Bumiputera Investors PSC INDUSTRIES: Proposes Disposal Of PSC Asset Holdings RASHID HUSSAIN: Restructuring Scheme Update RHB CAPITAL: Discloses Update on Restructuring Scheme P H I L I P P I N E S INTERNATIONAL CONTAINER: Unit Completes US$50M Loan Facility NATIONAL POWER: ERC Gives More Time to Resolve Row With Meralco NATIONAL POWER: Signs MoA With Cooperatives, Implements SPEED PHILIPPINE LONG: Clarifies Philippine Inquirer Article PHILIPPINE LONG: Exchanges Notes Due 2007, 2012 RFM CORP.: Launches PhP500M JV With Uni-President S I N G A P O R E ASIA PULP: Repays Remaining $40M Debt to Creditors BIL INTERNATIONAL: Posts Notice of Change in Temasek's Interest CHARTERED SEMICONDUCTOR: Shares Down 2.6%, Hit All-time Low SSANGYONG CEMENT: Posts S15M Interim Net Loss SEMBCORP INDUSTRIES: Posts Change in Temasek's Interest WEE POH: Changes Registered Office Location T H A I L A N D SRITHAI SUPERWARE: Board Approves Srithai Electronics' Closure THAI MILITARY: 17-Branch Closure Expected by Year-end - - - - - - - - ================= A U S T R A L I A ================= ANACONDA NICKEL: Awarded US$80M From Contractor ----------------------------------------------- Anaconda Nickel Ltd's Chief Executive, Peter Johnston, said the first phase outcome of the dispute with engineering company Flour Daniel was at the low end of expectations. The Perth-based company was awarded A$147.6 million (US$80.37 million) from claims relating to defects in the screening and acid leach circuits. Anaconda reportedly claimed more than A$600 million from Fluor, the design and construction contractor of its Murrin Murrin nickel and cobalt mine in Western Australia. This was offset by A$107.8 million awarded to Fluor from counterclaims relating to bank guarantee drawn by Anaconda and other contractual amounts previously withheld. ANACONDA NICKEL: Posts A$920M Net Loss for First Half ----------------------------------------------------- Despite producing a A$14.3 million operating profit in the 6 months to 30 June 2002, Anaconda Nickel Limited today announced a net loss for the half year to 30 June 2002, of A$462.4 million, compared to a loss of A$457.5 million for the previous half. For the full year to 30 June 2002, the Company reported a net loss of A$919.9 million. The loss reflects further significant write-downs in the carrying value of the Murrin Murrin nickel cobalt plant, in order to align the Company's balance sheet with valuations agreed with secured creditors as part of the Company's on-going debt restructuring and recapitalization negotiations. The loss also reflects significant changes to accounting policies in relation to exploration expenditure and deferred foreign exchange losses. The write-downs and accounting policy changes demonstrate Anaconda's determination to clean up its balance sheet and provide transparent accounts, reflecting a more realistic valuation of the Company's assets. Significant items in the result included: A$ MILLION 1ST HALF 2ND HALF FULL YEAR Cashflow from operations (41.7) 9.4 (32.3) Gross Profit/(Loss) (29.2) 14.3 (14.9) Deferred Hedging Loss - (121.5) (121.5) Write down of property, plant & equipment (28.8) (21.6) (50.4) Impairment of property, plant & equipment (229.4) (276.0) (505.4) Provision for unsuccessful exploration (61.7) (0.4) (62.1) Net Loss (457.5) (462.4) (919.9) In addition to the write-downs, production disruptions associated with the ramp-up of the Murrin Murrin nickel cobalt project, higher costs associated with on-going plant rectification works and lower than forecast nickel prices in the first half of the year, had a negative impact on the results. At year-end, 30 June 2002, Anaconda had a shareholders deficiency of $413.6 million, a working capital deficiency of $826.5 million and cash on hand of $6.1 million as well as the undrawn facility of $11 million (US$6 million). Anaconda Chief Executive Officer, Mr Peter Johnston said the additional write-downs were necessary and unavoidable. "Our secured creditors have ascribed values to the Company's assets, and our balance sheet must reflect these values. By booking these write-downs we have effectively cleaned up the balance sheet and created a solid financial base for the Company going forward", Mr Johnston said. "With the debt restructuring and recapitalization process well advanced, production steadily improving, costs coming down and the plant operating cash flow positive, the Company can look forward with greater optimism and confidence about the future," he added. Since March, the Murrin Murrin plant has been cashflow positive (before corporate overheads, interest and financing costs) due to a successful cost reduction program, improved production levels and increases in nickel prices. Murrin Murrin produced 28,652 tons of nickel and 1,589 tons of cobalt for the year ended 30 June 2002, compared to 20,260 tons of nickel and 1,350 tons of cobalt for the previous corresponding period. Anaconda announced on Wednesday (11 September) that it was close to finalizing negotiations with secured creditors that would see Anaconda, and its joint venture partner Glencore Nickel, make a cash payment of US$190 million to settle all outstanding debts to its US bondholders. "The Company has a new strategic direction, new management, and a focus on a sustained improvement in both financial and operating performance. Whilst we are not out of the woods just yet, as a management team we have had to be financially prudent, but at the same time we have been aggressive on reducing costs and improving our operational performance. The balance sheet remains unsatisfactory and the recapitalization program is intended to address this situation. Assuming we can conclude the restructuring and recapitalization process before March next year, the plant will be producing at budget forecast levels and will have been operating cash flow positive for a year. Given the situation the company was in this time last year, I'd say that would represent a significant turnaround", Mr Johnston said. For further information, contact John Quayle, Company Secretary, at telephone +61 8 9212 8400, or Tony Dawe of Ward Holt Corporate Communication at telephone +61 8 9221 8722. ANACONDA NICKEL: Share Drop on A$920M Net Loss Report Likely ------------------------------------------------------------ Anaconda Nickel's shares are set to slide after posting last week A$919.9 million net loss for the first half of the year, Dow Jones Newswires reports. According to the debt-laden Australian mining group, its loss reflects further writedowns in carrying value of Murrin Murrin plant and changes to accounting policies on exploration expenditure and deferred FX losses. Result was also affected by production disruptions associated with Murrin Murrin ramp-up, higher costs from plant rectification and lower-than-forecast nickel prices in the first half of the year. AUSDOC GROUP: ABN Amro Completes Takeover Offer ----------------------------------------------- ABN AMRO Capital has waived the remaining offer condition and declared its offer to AUSDOC Group unconditional. "We are delighted to have reached this milestone which will enable us to successfully complete our takeover offer. This is a landmark Australian public-to-private deal and further demonstrates ABN AMRO Capital's commitment to being a leading provider of private equity in Australia and New Zealand," said ABN AMRO Capital's representative, JP Kaumeyer. "We look forward to working with management to optimise the performance of AIM and Freightways and are excited about the potential of each business," he said. AUSDOC Chairman, Michael Butler, welcomed these developments and said, "the AUSDOC Directors are pleased that the sale process has been completed successfully. This process has delivered fair value to AUSDOC shareholders through an offer price which is substantially in excess of the AUSDOC share price prior to the announcement of the sale process." ABN AMRO Capital's offer to AUSDOC shareholders will close as scheduled at 7:00pm on Friday, 20 September 2002. AUSDOC shareholders who have already accepted the offer, or who accept before the close of the offer, will be paid on or before 11 October 2002. In accordance with the Corporations Act, ABN AMRO Capital intends to compulsorily acquire all AUSDOC shares for which acceptances are not received before the close of the offer. Shareholders who have their AUSDOC shares compulsorily acquired will receive $2.15 cash for each AUSDOC share - the same price as under the offer - but will receive payment later than shareholders who accept the offer. The AUSDOC Directors recommend that any shareholders who have not already accepted the offer do so before the close of the offer. All AUSDOC Directors and their associates have accepted the offer. For inquiries, contact: AUSDOC shareholders: AUSDOC Shareholder Information Line 1300 304 778 (international callers dial +61 2 9240 7537). AUSDOC Group Limited Alan Freer Managing Director AUSDOC Group Limited Ph: 03 9676 1202 Peter Scott Managing Director UBS Warburg Ph: 03 9242 6273 Geoff Drucker Corporate Kudos Ph: 03 9646 3444 Mobile: 0419 817 827 ABN AMRO Capital JP Kaumeyer ABN AMRO Capital Ph: 02 8259 5167 Ross Hutcheson Hutcheson & Co Ph: 03 9600 2444 Sam Prentice ABN AMRO Corporate Finance Ph: 03 9612 1525 COLES MYER: Shares Fall Anew Over Boardroom Conflict ---------------------------------------------------- Coles Myer's shares fell for fourth consecutive day, down 1.5 percent at A$5.81, as investors remain unsettled by the Company's boardroom tensions, Dow Jones Newswires reported Friday. This came after the Coles Myer board confirmed its support for Stan Wallis to remain chairman until the conclusion of the annual general meeting on November 20. Coles Myer, Australia's largest retailer with more than 2,000 stores throughout Australia and New Zealand, has hit hard times over the past couple of years, largely due to losses in its department stores. It was forced to downgrade profits earlier this year, sending its share price spiraling. MACQUARIE BANK: Simon Gautier Found Guilty of Insider Trading ------------------------------------------------------------- Simon Gautier Hannes, a former executive director of Macquarie Bank Limited, was convicted on Wednesday on one charge of insider trading in the securities of TNT Limited (TNT) and two charges under the Financial Transactions Reports Act, the Australian Securities and Investment Commission said. The conviction of Hannes follows a 15-week retrial in the Supreme Court at Darlinghurst, which was prosecuted by the Commonwealth Director of Public Prosecutions. Hannes was originally convicted on the same charges in the Sydney District Court in August 1999 and was jailed for two years and two months and fined $110,000. However, the New South Wales Court of Criminal Appeal quashed the convictions following a decision in December 2000, and he was released after serving 15 and half months of the sentence. Today's convictions are the result of a retrial. The insider trading charge related to Hannes, using the name 'Mark Booth', acquiring 5,000 TNT $2 call options in September 1996 through Ord Minnett Limited, when he had knowledge that TNT was likely to be the subject of a takeover bid. The Australian Securities and Investment Commission (ASIC) investigation of 'Mark Booth's' trading started within 24 hours of the announcement of a takeover by Dutch company Royal PTT Nederland NV (KPN) at $2.45 on 2 October 1996. Within two days, ASIC obtained court orders freezing the $2 million profit from 'Mark Booth's' trading, and this profit was ultimately returned to the people who had sold the call options. ASIC's investigation into the circumstances surrounding 'Mark Booth's' purchase of call options was conducted in collaboration with the Australian Federal Police and the Australian Stock Exchange. Using sophisticated investigation techniques, ASIC was able to identify Hannes as the person who had bought the TNT $2.00 call options. During the trial, the Crown lead forensic evidence from a handwriting expert and forensic computer expert. The Financial Transactions Reports Act charges relate to Hannes making six cash withdrawals in one day from different bank branches and then using the cash to acquire 9 bank cheques, again from various banks and branches, with a view to avoiding the reporting requirements under the Act. Hannes, who remains on bail, will appear for sentencing on 7 November 2002. PMP LIMITED: Appoints Graham Reaney as Non-Executive Director ------------------------------------------------------------- PMP Limited said it has appointed Graham Reaney as non-executive Director of the company. "We are delighted Graham has jointed the Board of PMP. Given his previous executive experience, and current directorships of other major listed Australian companies, Graham will be a valuable and complementary addition to our Board," Chairman James Donnelley said. The 59 year old Mr. Reaney is a director of St. George Bank Ltd, The Australian Gas Light Company Limited, Queensland Cement Limited and So Natural Foods Limited. Mr. Reaney's business experience spans 30 years, during which he has held a number of senior corporate appointments including Managing Director of National Foods Limited and Managing Director and Operations Director of Industrial Equity Limited. The company will be seeking shareholder approval of Mr. Reaney's appointment at the Annual General Meeting to be held in Sydney on 17th October 2002. At that meeting, chairman James Donnelley and Peter Chegwyn, Director and Chairman of Audit Committee, retire by rotation and are seeking re-election. For further information, contact Chief Executive Robert Muscat at telephone (02) 9464 3580, or Company Secretary David Rowland at telephone (02) 9464 3503. TYNDALE CENTRAL: Court Probes Mervyn Roach on 12 Charges -------------------------------------------------------- Mervyn Alexander Roach appeared in the Melbourne Magistrates Court on Wednesday and was committed to stand trial on 12 charges laid by the Australian Securities and Investments Commission (ASIC). Mr Roach has been charged with three counts of obtaining money by deception, three counts of obtaining a financial advantage by deception, and six counts of using his position as a director of a company to gain an advantage for himself. ASIC laid the charges following an investigation into Mr Roach's involvement in the affairs of Tyndale Central Pty Ltd and Australian Property Investments. ASIC alleges that the investors understood their money was to be invested in property, and were not aware that instead it was allegedly being diverted to accounts Mr Roach controlled. Mr Roach has been bailed to appear in the Melbourne County Court 5 February 2003. The Commonwealth Director of Public Prosecutions is prosecuting this matter. ================================ C H I N A & H O N G K O N G ================================ ECYBERCHINA HOLDINGS: Served Winding-up Petition ------------------------------------------------ A winding-up petition has been filed against eCyberChina Holdings Ltd by ICEA Financial Services Ltd. According to an AFX Asia report, the company is in talks to settle the over HK$6.7 million in outstanding interest payments in installments, once it finalizes a proposal to sell a piece of property in China to a third party. The HK$6.7 million represents the accrued interest of a loan it obtained, the principal of which has already been repaid. FUJIAN JIUZHOU: Loss-making Trading Firm Loses Shenzhen Listing --------------------------------------------------------------- The A shares of Fujian Jiuzhou Group Co. were delisted from the Shenzhen Stock Exchange as of the start of trade Friday after the Chinese trade firm failed to turn a profit. In an announcement in the Securities Times, the company said its shares were suspended since April 16, after it posted its third year of losses. It said on August 28 it posted a half-year loss of 52.02 million yuan ($6.29 million). Fujian Jiuzhou was embroiled in China's largest smuggling case in 50 years. Its former chairman, Zhao Yuchang, was jailed for life in February 2001 for his involvement in the multi-billion dollar smuggling case, one of nearly 300 people implicated. Securities regulators have also punished Jiuzhou for falsifying profits from 1993 to 1997. GUANGNAN (HOLDINGS): Back in the Black After Restructuring ---------------------------------------------------------- Guangnan (Holdings) Ltd, a subsidiary of Guangdong Holdings, was able to return to profit in the six months to June due to restructuring and effective cost controls. The company recorded a net profit of HK$56.073 million for the six months to June, compared with a loss of HK$9.808 million a year earlier as sales dropped to HK$892.392 million from HK$1.050 billion after the closure of the loss-making supermarket operations. At the end of June, the company had a cash balance of HK$202.442 million, down 11.2 percent from end-December due to the early redemption of HK$50 million worth of interest-bearing convertible bonds. HONG PACIFIC: Hearing of Winding Up Petition Set ------------------------------------------------ The petition to wind up Hong Pacific Trading Limited was set for hearing before the High Court of Hong Kong on October 30, at 10:00 am. RBG Resources PLC (in liquidation), located at Grant Thornton House, Melton Street, Euston Square, London NW1 2EP., U.K., filed the petition with the said court last August 3, 2002. HUNTINGTON INDUSTRIES: Winding Up Hearing Set for October --------------------------------------------------------- The date for hearing of the petition to wind up Huntington Industries Limited is scheduled for October 30, 2002 at 10:00 a.m. at the High Court of Hong Kong. RBG Resources PLC (in liquidation), located at Grant Thornton House, Melton Street, Euston Square, London NW1 2EP., U.K., filed the petition with the said court last August 3, 2002. NORTH BEAT: Court Schedules October Winding-Up Hearing ------------------------------------------------------ RBG Resources PLC (in liquidation) of Grant Thornton House, Melton Street, Euston Square, London NW1 2EP., U.K., is seeking for the winding up of North Beat Limited. The petition was filed on August 3, 2002 at the High Court of Hong Kong, and will be heard before the said court on October 30, 2002 at 10:00 a.m. SHUN HING: Faces Winding Up Petition ------------------------------------ Hot Wing Engineering Limited of Room 1806, 18th Floor, Ricky Centre, 36 Chong Yip Street, Kowloon, Hong Kong is seeking for the winding up of Shun Hing P.C. Boards (HK) Limited. The petition was filed on July 24, 2002, and will be heard before the High Court of Hong Kong on September 18, 2002 at 9:30 a.m. WING ON CO: Ups Profit on Closure of Loss-Making Units ------------------------------------------------------ The first half profit of Wing On Co International Ltd increased to HK$162.035 million from HK$38.493 million after it closed two loss making stores in Hong Kong and an unprofitable branch in Tianjin, AFX Asia reported. During the period, the company also made gains of HK$94.092 million from the disposal of certain properties. A series of promotional campaigns, merchandising mix adjustment and streamlining of operations have contributed to the improvement of sales. The company's automobile dealership business in the US also posted a strong performance. The company had HK$820.8 million worth of cash and marketable securities at the end of June. Total borrowings stood at HK$836.4 million, down 90 million from December-end. ================= I N D O N E S I A ================= BANK MANDIRI: IPO Launch Planned for This Year ---------------------------------------------- PT Bank Mandiri's planned IPO will be launched this year as set under the letter of intent (LoI) signed by the government with the International Monetary Fund, the PRNewsAsia reported, citing Bank Mandiri president EC Neloe. Neloe said the launch of Bank Mandiri's IPO will be held before the year-end. At this point, he said the government still needs time to finalize the bank's new capital structure and extend the current maturity of recapitalization bonds. He said the Privatization Policy Team had previously set the IPO for a 30% stake in the bank, of which 15% was supposed to be a primary issue, with the other 15% comprising government shares. However, the government later proposed to increase its share offer to 30 percent and scrap the primary issue altogether, he said. (M&A REPORTER-ASIA PACIFIC, Vol. No.1, Issue No. 182, September 13, 2002) BANK NIAGA: CAHB Submits Final Bid for 51% Stake ------------------------------------------------ Commerce Asset-Holding Bhd (CAHB), Malaysia's second largest lender, has offered to buy the 51 percent stake in Bank Niaga at 26.5 rupiah per share against the floor price of 24.84 rupiah per share, the Star reported, citing Indonesian Bank Restructuring Agency (IBRA) chairman Syafruddin Tumenggung. The final bid reportedly could bring in around 1.06 trillion rupiah (US$119 million) for the IBRA, which owns around 97 percent of Bank Niaga. Syafruddin expects to complete the stake sale by the end of October. The divestment of Bank Niaga is part of an International Monetary Fund-led economic reform programmed for Indonesia and should also help the government bolster confidence in the fragile banking sector. ========= J A P A N ========= FUJITSU LTD: Slashing 3,000 More Jobs in FY02 --------------------------------------------- Fujitsu Limited has notified its labor union that the Company will cut additional 3,000 workers this year, based on an incentive program under which it will pay special allowances to those who voluntarily quit, Kyodo News reported Friday. The program will be applied to about 3,200 workers at the Fujitsu's optical communications equipment factory in Oyama and its mobile phone-related plant in Otawara, both in Tochigi Prefecture. HOUFU TOCHI: Court Declares Real Estate Firm Bankrupt ----------------------------------------------------- The Tokyo Shoko Research Ltd. (TSR) said last Tuesday that the Japan court has declared Houfu Tochi Tatemono KK bankrupt. The Company has total liabilities of 13.2 billion yen. The real estate firm, which has 60 employees, is located at Houfu-si Yamaguchi, Japan. HYOGO FUKUSI: Enters Bankruptcy ------------------------------- Japan court has declared Hyogo Fukusi Seikyo bankrupt, according to Tokyo Shoko Research Ltd. The federal home loan mortgage corporation has total liabilities of 70.10 billion yen. The Company is located at Kobe-si, Hyogo, Japan. KINKI NIPPON: CFSA Okays Equity Options Listing ----------------------------------------------- Due to receipt of an approval from the Commissioner of Financial Services Agency (CFSA), the Tokyo Stock Exchange (TSE) decided to list the equity options on Kinki Nippon Railway Co., Ltd. as the underling stock as one of component stocks of S&P/TOPIX150. Listing date of the equity options on Kinki Nippon Railway Co,. Ltd. is scheduled on September 25, 2002. According to TCR-AP, Kinki Nippon Railway incurred a net loss of 34.5 billion yen for fiscal 2001 through March 31, 2002, writing off the unrealized loss of the equity method real estate Company. It offset the unrealized loss on land for business purpose with the unrealized railway assets. The financial structure deteriorated more than expected due to the lowering net worth and the increasing interest-bearing debt as well as the realization of unrealized railway assets. MATSUSHITA COMMUNICATION: TSE Delists Equity Options ---------------------------------------------------- The Tokyo Stock Exchange (TSE) has received an approval from Commissioner of Financial Services Agency to delist the equity options on Matsushita Communication Industrial Co., Ltd. because of the upcoming exchange of shares with Matsushita Electric Industrial Co., Ltd. Equity options on Matsushita Communication Industrial Co., Ltd 1. Date of delisting: September 25, 2002 2. Last day of trading: September 20, 2002 3. Exercise date: September 20, 2002 According to TCR-AP, cell phone maker Matsushita Communication Industrial Co, posted Y19.87 billion group net loss for the October to December period, due to delays in new models and the maturing market. The Company cut its forecast for the year that ends on March 31, expecting a group net loss of Y44 billion, exceeding the range of Y35-40.3 billion analysts had forecast. Matsushita Communication Industrial Co., Ltd. is a principal subsidiary of Matsushita Electric Industrial Co., Ltd., and specializes in four business areas: mobile communications, automotive multimedia, AV & security, and system solutions. MITSUBISHI TOKYO: Posts Notice of New Address --------------------------------------------- Mitsubishi Tokyo Financial Group, Inc. (MTFG; President: Shigemitsu Miki) will move to a new Tokyo location effective September 17, 2002. The Company's telephone and facsimile numbers will nevertheless remain unchanged. MTFG's new address will be: Mitsubishi Tokyo Financial Group, Inc. 26F Marunouchi Bldg. 4-1, Marunouchi 2-chome Chiyoda-ku, Tokyo 100-6326 Japan Tel: 81-3-3240-8111(unchanged) Fax: 81-3-3240-8203(unchanged) http://www.mtfg.co.jp(unchanged) TCR-AP reported that The Mitsubishi Tokyo Financial Group plans to dispose around $3.94 billion in bad loans in the year ending March 31, 2003. The Company intends to sell them to the Resolution and Collection Corp., a government-backed debt collection agency. Saddled with unprofitable investments and loans, the bank is also considering auctioning some to investors. ========= K O R E A ========= DAEWOO MOTOR: Schedules October GM-DAT Launch --------------------------------------------- GM-Daewoo Auto & Technology (GM-DAT)'s launching is scheduled in early October, but procedures required for the launch have not been completed, PR Newswire reports. Daewoo Motor Co. has yet to complete its liquidation scheme as a prerequisite for the launch of the new entity, GM-DAT. For the launch of the new entity, the liquidation plan should be finished within this week, but Daewoo Motor is not sure about when the plan will be finalized. HANBO IRON: Creditors to Complete US$370M Sale This Week -------------------------------------------------------- An unidentified government official said talks between the creditors of Hanbo Iron & Steel Co and AK Capital, on the sale of the steel maker to the latter for about US$370 million, are close to a conclusion, Chosun Ilbo daily reported. AK Capital proposed a final bid price for Hanbo last week, he said. AK Capital is a Company set up by Joonghoo Industry, a midsize real estate developer that has an interest in running steel businesses. The state-run Korea Asset Management Corp is the largest creditor of Hanbo and is leading the talks to sell the Company. (M&A REPORTER-ASIA PACIFIC, Vol. No.1, Issue No. 182, September 13, 2002) HYNIX SEMICON: Creditors Advise Bailout by Deutsche Bank -------------------------------------------------------- Hynix Semiconductor's creditors were advised to bail the chipmaker out by Deutsche Bank, DebtTraders analysts, Daniel Fan (852-2537-4111) and Blythe Berselli (1-212-247-5300) reported, citing the Bloomberg news. Deutsche Bank recommended creditors exchange 2 trillion won ($1.7 billion) of debt into bonds convertible to shares. Hyundai Semiconductor's 8.250 percent bond due in 2004 (HYUS04KRA1) trades between 75 and 76. For real-time bond pricing, go to http://www.debttraders.com/price.cfm?dt_sec_ticker=HYUS04KRA1 HYNIX SEMICON: KEB Denies Normalization Before Sale Reports ----------------------------------------------------------- Hynix Semiconductor's main creditor, the Korea Exchange Bank (KEB), declined to confirm reports that they have been told by Deutsche Bank that Hynix should be restructured and normalized before a sale is considered, the Yonhap News Agency reported. "We cannot confirm the reports," a KEB spokesman said. The official said KEB President Lee Kang-won is now visiting the bank's branches in Germany, London and other European nations, adding that his visit to Europe has nothing to do with the Hynix case. The official said creditors and Deutsche Bank have still to resolve issues in the restructuring plans for Hynix, including debt restructuring. "As far as I know, Deutsche Bank has not presented its final version of the restructuring plans to creditors. There are many issues to be sorted out yet," he said. He also said it is unclear when creditors will meet to discuss the restructuring plans for Hynix. "We know we should conclude the issue at the earliest possible time but no date has been fixed for the meeting of creditors," he said. Earlier reports said that Deutsche Bank submitted the recommendation early this week to creditors that creditors should carry out a debt restructuring for normalization of the Company before selling the chipmaker. (M&A REPORTER-ASIA PACIFIC, Vol. No.1, Issue No. 182, September 13, 2002) KOREA LIFE: Hanwha to Take Over 51% Stake for KRW775.2B ------------------------------------------------------- The Public Fund Oversight Committee said the Hanwha Group-led consortium will take over a controlling 51 percent stake in Korea Life Insurance for KRW775.2 billion, the JoongAng Ilbo Daily reported. Hanwha will be allowed to make an upfront payment of KRW400 billion and the remaining KRW375.2 billion will be paid in installments two years after the acquisition, it reported. Hanwha also has an option to buy another 16 percent stake in Korea Life when the life insurance Company is listed on the exchange in the future. The sale price is based on Korea Life's corporate value assessed at KRW1.52 trillion, it reported. (M&A REPORTER-ASIA PACIFIC, Vol. No.1, Issue No. 182, September 13, 2002) SSANGYONG MOTORS: Posts Operating Loss of $8.5M ----------------------------------------------- Ssangyong Motors posted an operating loss of $8.5 million versus $7 million, but operating loss before tax was $14.4 million versus $5.6 million profit in the previous year, GK Goh reports. Loss at bottom line was $15 million versus a profit of $2.9 million. The higher loss was due to an investment loss of $8.6 million comprised mainly of provisions made for the group's venture capital investment in the US technology sector and lower contribution from associated companies of $1.6 million versus $9.8 million in the previous period. GK Goh said both the building materials market and US technology sector will not expect to improve in the near term, the Company therefore expects to report a loss for the fiscal year 2002. =============== M A L A Y S I A =============== AOKAM PERDANA: Defaults on Debt Payments ---------------------------------------- Board of Directors of Aokam Perdana Berhad, pursuant to paragraph 9.03 and 9.04 (l) of the listing requirements and further to the Company's announcement made on 26 April 2002, 3 May 2002, 3 June 2002 and 6 July 2002, announced Thursday the event of default in the payments of interest in respect of the restructured creditors of the Aokam Perdana Berhad Group (APB). In a statement to the Kuala Lumpur Stock Exchange, the Company said that the performance of the Group is affected by the weak timber market and tight financial position. Under this scenario, the Company is unable to service the interest payment of the restructured creditors. The Group has obtained the approvals-in-principle from the majority (in value) of the creditors to restructure the loans/debts under the Corporate Proposals of Aokam, which comprises of the Proposed Acquisition and Proposed Debt Restructuring. The Vendors aborted the Corporate Proposals after the termination of the acquisition. At the present moment, the Company is in the midst of negotiations with other potential white knights. Any new Corporate Proposals or measures to address the loans/debts would require fresh approvals from the creditors. The legal implication, which may arise from the defaults, is that the creditors could sue the Company, it said. BERJAYA LAND: Appoints Shuib Bin Ya'Acob as Director ---------------------------------------------------- Berjaya Land Berhad has appointed Shuib Bin Ya'Acob as the Company's new Director (Independent & Non Executive) as of September 12, 2002. Designation : Director Directorate : Independent & Non Executive Name : SHUIB BIN YA'ACOB Age : 72 Nationality : Malaysian Qualifications : Not Applicable Working experience and occupation : Not Applicable Directorship of public companies (if any) : Not Applicable Family relationship with any director and/or major shareholder of the listed issuer : Not Applicable Details of any interest in the securities of the listed issuer or its subsidiaries : Not Applicable In June, TCR-AP reported that the proposed restructuring exercise of Berjaya Land Berhad, which was announced by Commerce International Merchant Bankers Berhad on 23 May 2001, was comprised of: (i) The proposed bonus issue (of 2 for 3) by B-Land; (ii) The proposed voluntary general offers (VGOs) to be undertaken by B-Land to acquire the remaining ordinary shares of RM1.00 each in Berjaya Capital Berhad (BCap) and in Cosway Corporation Berhad (CCB) not held by Berjaya Group Berhad (BGroup) and the parties acting in concert (Proposed VGOs); and (iii) The proposed transfer of Berjaya General Insurance Berhad, Inter-Pacific Capital Sdn. Bhd. and Cosway (M) Sdn. Bhd. by BGroup to B-Land and pursuant thereof, the proposed transfer by B-Land of its entire interests in BCap and CCB (obtained pursuant to the Proposed VGOs) to a new company to be incorporated (Newco) (Proposed Assets Transfer). BERJAYA SPORTS: Units Purchase 8% Convertible Unsecured Loan ------------------------------------------------------------ The Board of Directors of Berjaya Sports Toto Berhad (or BToto) informed that its wholly owned subsidiary, FEAB Properties Sdn Bhd has purchased ICULS in BToto as follows: 1. Date of Purchase : 12 September 2002 2. Number of ICULS Purchased : 98,000 3. Minimum price paid for each ICULS : RM2.92 4. Maximum price paid for each ICULS : RM2.98 5. Total consideration paid : RM289,758.45 6. Total number of ICULS held to-date : 1,396,000 7. Cumulative consideration: RM4,326,865.60 paid to-date The Company has obtained the necessary approvals for the above purchase of ICULS up to an amount not exceeding RM1.2 billion. Details on the ICULS purchase were disclosed in the Company's Circular to Shareholders dated 5th April 2002 and the Abridged Prospectus relating to the Rights Issue of ICULS dated 20th June 2002. BIG STORE: Winding Up Petition Hearing Set on November 26 --------------------------------------------------------- The Board of Directors of Ngiu Kee announced Thursday that Big Store (TAR) Sdn Bhd, a wholly owned subsidiary of Big Store Sdn Bhd, which in turn is wholly owned by Ngiu Kee was served with a winding up petition via Shah Alam High Court Companies Winding Up Petition No. MT5-28-144-2002 dated July 19, 2002, on September 11, 2002. The hearing of the Petition has been fixed on November 26, 2002. DETAILS OF THE PETITION The Petition has been presented pursuant to a purported debt from BIG Store (TAR) Sdn Bhd to Syarikat KHY Enterprise Sdn Bhd amounting to RM 401,321.29. The purported debt is purportedly in respect of inter alia, alleged outstanding rentals purportedly due by reason of a lease agreement in respect of the premises known as Plaza KHY of which BIG Store (TAR) Sdn Bhd was tenant. The amount is disputed by BIG Store (TAR) Sdn Bhd. DIRECTORS' OPINION The Board has taken legal in respect of the Petition and the Board is of the view that the Petition is an abuse of process of court made in bad faith. The Board has instructed its solicitors to take all necessary action to have the Petition struck out or dismissed including seeking an injunction to stop the Petitioner from advertising the Petition. EXPECTED FINANCIAL AND OPERATIONAL IMPACT In December 2001, Dewan Bandaraya Kuala Lumpur (DBKL) have closed down and sealed the premises for being unfit and unsafe for public usage and pursuant to the notice by DBKL, the Board had ceased operations of BIG Store (TAR) Sdn Bhd immediately thereafter and it is to early to quantify the expected financial losses resulting from the Petition. Pursuant to the closure of BIG Store (TAR) Sdn Bhd by DBKL, the Board instructed its solicitors to commence civil action against Syarikat KHY Enterprise Sdn Bhd for the estimated loss of business and profit approximately RM 74,000,000.00 which is currently pending in the High Court of Kuala Lumpur. Upon being served with Section 218 Notice on 12.3. 2002, BIG Store (TAR) Sdn Bhd had immediately filed an application in the High Court in Malaya to injuct Syarikat KHY Enterprise Sdn Bhd from presenting the Petition for Winding Up which is in fact fixed for Hearing on Friday, 13.9.2002 The Board has taken legal advice and in reliance of the same have instructed its solicitors to commence civil proceeding seeking substantial damages against Syarikat KHY Enterprise Sdn Bhd and all its Directors in their individual capacity for commencing the Petition with bad faith and malicious intend. The Hearing dated of the Petition is set on November 26, 2002. CHASE PERDANA: Restraining Order Obtained From KLSE --------------------------------------------------- The Board of Directors of Chase Perdana Berhad (CPB) announced Thursday that a Restraining Order has been obtained from the Kuala Lumpur High Court vide Originating Summons No. D3-24-87- 2002 dated 12 September 2002 pursuant to Section 176 (10) of the Companies Act, 1965, for the Company and the following subsidiaries: LH Capital Sdn Bhd Santun Indah Sdn Bhd CPB-Plastronic JV Sdn Bhd Imacentre Development Sdn Bhd The Restraining Order is valid for a period of 130 days from the date of the Order or for a period from the date of the Order up to 6 December 2002, whichever comes first, pending lodgement of the court order approving the Debt Restructuring Scheme of the Company with the Companies Commission of Malaysia. The sealed Order dated 12 September 2002 is pending extraction from the Court. On 5 and 6 March 2002, Southern Investment Bank Berhad had on behalf of the Board of Directors of CPB, announced that the Company will be undertaking a restructuring scheme involving among others: Reduction of share capital from RM 93,605,334 to RM 9,360,533 by the cancellation of RM0.90 of the par value of each existing ordinary share of RM1.00 each and the subsequent consolidation into ordinary shares of RM1.00 each in the proportion of ten (10) ordinary shares of RM0.10 each into one (1) ordinary shares of RM1.00 each (Shares); Reduction of the entire share premium account amounting to RM 159,553,660; Debt restructuring with CPB's creditors under section 176 of the Companies Act, 1965; Rights issue of 28,081,602 CPB Shares on the basis of six (6) CPB Shares together with nine (9) free detachable warrants 2002/2007 (Warrants) for every two (2) CPB Share held after the capital reduction and consolidation to shareholders of CPB; conditional restricted issue of up to 28,081,602 CPB Shares together with 42,122,403 Warrants to Tan Sri Datuk Dr Mohan M.K. Swami (TSDDM); Share placement to meet the public shareholding spread requirement, if necessary; Exemption to TSDDM from having to undertake a general offer for the CPB Shares not already owned by him; and mandatory assets disposal program. CPB had submitted its proposal to the authorities on 29 April 2002. The Foreign Investment Committee via its letter dated 15 May 2002 has approved the proposed Scheme. The Securities Commission has via its letter dated 6 September 2002 approved the proposed Scheme with conditions, which was announced on 9 September 2002. The Company has obtained the Order to prevent any further winding up petition from jeopardizing the implementation of the proposed Scheme. The Foreign Investment Committee via its letter dated 15 May 2002 has approved the proposed Scheme and the Securities Commission via its letter dated 6 September 2002. The Company is currently finalizing the explanatory statement to creditors and the circular to shareholders. HAP SENG: KG Group Proposes Acquisition --------------------------------------- Hap Seng Consolidated Berhad, with regards to its announcements dated 25 October, 2001, 30 November, 2001, 6 December, 2001, 15 January, 2002, 22 February, 2002, 25 March, 2002 and 28 June, 2002 respectively regarding the proposed acquisition of 60% of the issued and paid-up share capital in KG Pastry Manufacturing Sdn Bhd and 60% of the issued and paid-up share capital in Kawan Food Manufacturing Sdn Bhd [collectively referred to as the Proposed KG Group Acquisition] for an aggregate sum of RM52,500,000 which transaction was not completed. As previously announced, the Stakeholders filed an inter-pleader summons against the Vendors and the Company in the Kuala Lumpur High Court (Originating Summons No. D6-24-19-02) to seek the Court's directions as to how the 10% deposit amounting to RM5.25 million (together with accrued interest) for the Proposed KG Group Acquisition ought to be dealt with. The inter-pleader summons was currently fixed for hearing on 10 October 2002. The Board announced that the parties have arrived at an out-of- court settlement pursuant to which the Company had on even date received the agreed sum of RM2.1 million as full and final settlement of the dispute and that the said inter-pleader summons will be withdrawn. HUME INDUSTRIES: Stocks Granted Listing From Exchange ----------------------------------------------------- Hume Industries (Malaysia) Berhad announced that the Company's additional 1,000 new ordinary stocks units of RM1.00 each issued pursuant to the aforesaid Scheme will be granted listing and quotation with effect from 9.00 a.m., Tuesday, September 17, 2002. In August, the Company announced a renounceable rights issue of up to 250,242,630 new ordinary stock units of RM1.00 each in HIMB at an issue price of RM2.00 per right stock, TCR-AP reports. The rights issue is payable in full upon acceptance, on the basis of one rights stock for every one existing ordinary stock unit of RM1.00 each held. PANCARAN IKRAB: Randy Chitty Quits General Manager Post ------------------------------------------------------- Pancaran Ikrab Berhad announced Thursday that Mr. T. Randy Chitty, aged 34, has tendered his resignation as Group General Manager with effective September 12, 2002. According to TCR-AP, Alliance Merchant Bank Berhad, in relation to the abortion of PIB's original proposed restructuring scheme, announced that the Kuala Lumpur Stock Exchange (KLSE) has, vide its letter dated 23 July 2002, decided to reject Pancaran Ikrab Bhd's application for an extension of time to release the requisite announcement (RA) on its plan to regularize its financial condition. As was announced on 1 July 2002 and 3 July 2002, the Company is presently contemplating a proposed restructuring scheme to regularize its financial condition. PANGLOBAL BERHAD: Unit Discloses Coal Production Volume ------------------------------------------------------- PanGlobal Berhad announced Wednesday that the production volume of coal of its wholly owned subsidiary, Global Minerals (Sarawak) Sdn Bhd for the month of August 2002 was 18,021.24 mt. TCRAP reported in August that Taisho Company Sdn Bhd filed a suit against PanGlobal Berhad and Toweltech Berhad (a former wholly owned subsidiary of PGB until its disposal on 29 December 1995) in the High Court at Penang via Civil Suit No. 22-141- 1991. The suit was in respect of an alleged friendly loan grants the claim to PGB and Toweltech wherein Taisho claimed RM3,688,370.90 from PGB and RM1,822,276.44 from Toweltech with interest at 12% per annum from 1 January 1991 until full settlement. PAN MALAYSIA: Issues RM1.0 New Shares to Bumiputera Investors ------------------------------------------------------------- Pan Malaysia Holdings Berhad, further to the announcements dated 27 June 2001 and 19 August 2002, Commerce International Merchant Bankers Berhad, on behalf of the Company, wishes to announce that the Securities Commission (SC) had, vide its letter dated 6 September 2002, approved a final extension of twelve (12) months to 30 June 2003 for the Company to implement the Special Issue. However, this extension is subject to the Company obtaining the approval from the Foreign Investment Committee (FIC) to extend the period to implement the Special Issue to 30 June 2003. The Company had on 6 August 2002 obtained the approval of the FIC to extend the period to implement the Special Issue to 31 December 2002 and the Company intends to apply to the FIC to further extend the period to implement the Special Issue to 30 June 2003. Wrights Investors' Service reports that at the end of 2001, the company had negative common shareholder's equity of -288.65 million Malaysian Ringgits. This means that at the present time, the common shareholders have essentially no equity in the company. This is further compounded by the fact that among the assets the company does have on its balance sheet, there are 152.41 million Malaysian Ringgits in intangible assets. PSC INDUSTRIES: Proposes Disposal Of PSC Asset Holdings ------------------------------------------------------- Board of Directors of PSC Industries Berhad announced Wednesday that the Company and its wholly owned subsidiary, Penang Shipbuilding & Construction Sdn Bhd and Amin Shah Holdings Sdn Bhd had on 12 September 2002 entered into a Supplemental Agreement pursuant to the Proposed Disposal of PSC Asset Holdings Sdn Bhd. Under the Supplemental Agreement, all parties have agreed to extend the completion date from 12 September 2002 until the expiry of six (6) months from the date of the Supplemental Agreement or fourteen (14) days from the date the Share Sale Agreement becomes unconditional, whichever is earlier. RASHID HUSSAIN: Restructuring Scheme Update ------------------------------------------- Rashid Hussain Berhad (RHB), with reference to the Company's announcement dated 20 March 2002, 24 June 2002 and 1 August 2002 in relation to the Proposed Group Restructuring Scheme. AmMerchant Bank Berhad (formerly known as Arab-Malaysian Merchant Bank Berhad) (AmMerchant Bank), on behalf of RHB wishes to announce Wednesday that the parties to the conditional sale and purchase agreement for the Proposed Acquisition of Bank Utama (Conditional Bank Utama SPA), namely Cahya Mata Sarawak Berhad, Utama Banking Group Berhad, RHB and RHB Bank Berhad have mutually agreed to further vary Clauses 4.06 and 4.07 of the Conditional Bank Utama SPA as follows: (a) the period within which the notice for convening the extraordinary general meeting of the respective companies is to be issued, is extended from the existing 120 business days from the date of the Conditional Bank Utama SPA ending on 11 September 2002, to 30 September 2002; and (b) the cut-off date by which all conditions precedent are to be fulfilled, is extended from the existing 210 days from the date of the Conditional Bank Utama SPA ending on 16 October 2002, to 31 October 2002. The said extensions of time are required pending clearance by the relevant regulatory authority of the circulars to shareholders of the relevant companies and pending receipt of outstanding approvals from the relevant regulatory authorities. RHB CAPITAL: Discloses Update on Restructuring Scheme ----------------------------------------------------- RHB Capital Berhad, referring to the Company's announcement dated 20 March 2002, 24 June 2002 and 1 August 2002 in relation to the Proposed Group Restructuring Scheme. AmMerchant Bank Berhad (formerly known as Arab-Malaysian Merchant Bank Berhad) (AmMerchant Bank), on behalf of RHB Capital wishes to announce that the parties to the conditional sale and purchase agreement for the Proposed Acquisition of Bank Utama ("Conditional Bank Utama SPA"), namely Cahya Mata Sarawak Berhad, Utama Banking Group Berhad, RHB and RHB Bank Berhad have mutually agreed to further vary Clauses 4.06 and 4.07 of the Conditional Bank Utama SPA as follows: (a) the period within which the notice for convening the extraordinary general meeting of the respective companies is to be issued, is extended from the existing 120 business days from the date of the Conditional Bank Utama SPA ending on 11 September 2002, to 30 September 2002; and (b) the cut-off date by which all conditions precedent are to be fulfilled, is extended from the existing 210 days from the date of the Conditional Bank Utama SPA ending on 16 October 2002, to 31 October 2002. In addition, the parties to the respective conditional sale of shares agreements for: (i) the Proposed Transfer and Acquisition of RHB Leasing Sdn Bhd, namely RHB Capital, China Development Industrial Bank Inc and RHB Delta Finance Berhad; (ii) the Proposed Transfer of RHB Capital Properties Sdn Bhd, namely RHB Capital and RHB Bank Berhad; and (iii) the Proposed Acquisition of 37% of Straits Asset Holdings Sdn Bhd, namely G.K. Goh Holdings Limited, RHB Capital and RHB Marketing Services Sdn Bhd; have respectively mutually agreed to vary Clause 4.05 of the respective conditional sale of shares agreements such that the cut-off date by which all conditions precedent are to be fulfilled, is extended from the existing 180 days from the date of the respective conditional sale of shares agreements ending on 16 September 2002, to 16 October 2002. All the said extensions of time are required pending clearance by the relevant regulatory authority of the circulars to shareholders of the relevant companies and pending receipt of outstanding approvals from the relevant regulatory authorities. In addition, we refer to our announcement dated 24 July 2002 in relation to the issue of RHB Capital Bonds. As stated in the announcement, RHB Capital is proposing to issue RM500 million 5- year redeemable unsecured bonds. AmMerchant Bank, on behalf of RHB Capital wishes to announce the finalization of the principal terms of the RHB Capital Bonds as set out in Appendix I herein and that the RHB Capital Bonds will now comprise RM500 million redeemable unsecured serial fixed rate bonds with maturities ranging from 3 to 5 years. ===================== P H I L I P P I N E S ===================== INTERNATIONAL CONTAINER: Unit Completes US$50M Loan Facility ------------------------------------------------------------ ICTSI Limited, a unit of International Container Terminal Services, has completed a US$50 million credit facility with Credit Suisse First Boston International, AFX Asia reported Thursday. The loan, which was guaranteed by the parent Company, will be used to finance foreign port projects being pursued by the unit. According to TCR-AP, International Container Terminal Services, Inc.'s debt level after the full redemption of the US$130 million convertible notes in March dropped to 2.5 billion pesos. NATIONAL POWER: ERC Gives More Time to Resolve Row With Meralco --------------------------------------------------------------- The Energy Regulatory Commission (ERC) will extend another three months deadline for the National Power Corp. (Napocor) to work out a transition supply contract (TSC) with Manila Electric Co. (Meralco), the Philippine Star and AFX Asia reported Friday, citing ERC Chairperson Fe Barin. The power firms were unable to draw up a power supply deal due to a dispute over an existing 10-year power supply contract. Napocor has asked Meralco to honor its commitment to buy 3,600 Megawatts of power per month until 2004, but Meralco refused to do so and failed to pay penalties worth to 5 billion pesos, saying the contract had been nullified by the new power reform law mandating transition supply contracts. However, Barin said the ERC will start penalizing both firms if they still fail to come to an agreement even with the extension. The ERC can impose sanctions of 100,000 pesos plus 100 pesos per day of delay in the filing of the transition contracts. NATIONAL POWER: Signs MoA With Cooperatives, Implements SPEED ------------------------------------------------------------- The National Power Corp has signed a memorandum of agreement (MoA) with electricity cooperatives for the implementation of the Special Pricing to Enhance Electricity Demand (SPEED) program, AFX Asia reported Thursday. Under the program, up to 0.92 pesos per kilowatt hour in discounts will be made available to big industrial and commercial power users. "With this MoA, we anticipate that different industries such as feed mills, beverage and bottling plants, shopping malls, fertilizer manufacturing plants, food processing plants and software manufacturing plants, among others, will start to enjoy reduced power costs," Energy Secretary Vince Perez said. Perez said 80 large power users nationwide are expected to benefit from the SPEED program. The program is awaiting approval by the Energy Regulatory Commission. PHILIPPINE LONG: Clarifies Philippine Inquirer Article ------------------------------------------------------ The Philippine Long Distance Telephone Company responded to the news article entitled "FirstPac wants MVP out of PLDT, MPC" published in the September 11, 2002 issue of the Philippine Daily Inquirer. The article reported that First Pacific Co. Ltd. Of Hong Kong is set to boot out its executive chair Manuel V. Pangilinan as chief of both Philippine Long Distance Telephone Co. and Metro Pacific Corp. in a last-ditch attempt to quash staunch opposition to the $925-M deal between First Pacific and the Gokongwei group. PLDT insiders admitted to the Inquirer that Pangilinan was now aware of First Pacific's plan and was preparing his own course of action to challenge such a move. The PLDT sources said Antoni Salim, son of Indonesian tycoon Soedono Salim and President of the Salim group that controls First Pacific, was determined to relieve Pangilinan from his posts in PLDT and MPC as the 'quarantine' imposed on Pangilinan seemed to be no longer enough to get the deal through by the Sept. 30 deadline. The sources said an official announcement would be made anytime in the next few days. "PLDT, in its letter to the Exchange dated September 11, 2002, clarified that: The article refers to alleged actions to be taken by First Pacific and PLDT is not privy to their plans. However, as far as we are aware, the report is false." PHILIPPINE LONG: Exchanges Notes Due 2007, 2012 ----------------------------------------------- Philippine Long Distance Telephone Co (PLDT) swapped US$95.114 million worth of notes due 2007 and US$248.782 million in notes due 2012 for exchange notes of the same tenures and amounts, AFX Asia reported Friday. Last month, PLDT announced an exchange offer for up to US$100 million of the 10.625 percent notes due 2007, and up to US$250 million of the 11.375 percent notes due 2012. PLDT said in August that its obligation to accept the old notes and swap them with the corresponding series of exchange notes was subject to certain conditions, which it did not specify. The exchange offer expired 5.00 pm, New York time, on Sept 11, it said. "PLDT undertook the exchange offers to satisfy a condition of its sale of the old notes and did not raise any new cash thereby," PLDT said. RFM CORP.: Launches PhP500M JV With Uni-President ------------------------------------------------- In a disclosure to the Philippine Stock Exchange (PSE), RFM Corp and the Uni-President group have launched a 500 million pesos food manufacturing facility for their joint venture in the noodle business. The joint venture company, RFM-President Enterprises Corp, will be producing new noodle products for the local market. The companies have set for the launching next month. DebtTraders reports that RFM Capital's 2.750% convertible bond due in 2006 (RFM06PHS1) trades between 100 and 110. For real- time bond pricing, go to http://www.debttraders.com/price.cfm?dt_sec_ticker=RFM06PHS1 ================= S I N G A P O R E ================= ASIA PULP: Repays Remaining $40M Debt to Creditors -------------------------------------------------- DebtTraders analysts, Daniel Fan (852-2537-4111) and Blythe Berselli (1-212-247-5300) reported that Asia Pulp and Paper finally plans to repay the remaining $40 million requested by creditors, which will enable the resumption of discussions on its debt plan. The paper group had expressed earlier that it was not able to pay and preferred to extend its debt for 13 years instead of between eight and ten years. DebtTraders reports that APP Finance VI Mauritius's 0.000 percent convertible bond due in 2012 (APP12IDN1) trades between 5.375 and 5.875. For real time bond pricing, go to http://www.debttraders.com/price.cfm?dt_sec_ticker=APP12IDN1 BIL INTERNATIONAL: Posts Notice of Change in Temasek's Interest --------------------------------------------------------------- BIL International Limited posted a notice of changes in substantial shareholder Temasek Holdings (Private) Ltd's interest: Date of notice to Company: 12 Sep 2002 Date of change of interest: 09 Sep 2002 Name of registered holder: CDP : Universe Holdings 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: 400,000 Percentage of issued share capital: 0.03 Amount of consideration per share excluding brokerage,GST,stamp duties,clearing fee: 0.4764 No. of shares held before change: 103,071,848 Percentage of issued share capital: 7.53 No. of shares held after change: 103,471,848 Percentage of issued share capital: 7.56 Holdings of Substantial Shareholder including direct and deemed interest Deemed Direct No. of shares held before change: 103,071,848 Percentage of issued share capital: 7.53 No. of shares held after change: 103,471,848 Percentage of issued share capital: 7.56 Total shares: 103,471,848 CHARTERED SEMICONDUCTOR: Shares Down 2.6%, Hit All-time Low ----------------------------------------------------------- Shares of battered Chartered Semiconductor Co. have declined 2.6 percent at S$1.47, Dow Jones reported Friday. Trader says some investors are dumping shares now, as "there's no way to know how price will adjust ex-rights on Monday". Notes share price has fallen 14.5 percent since September 2, the first trading day after the Company announced S$1.1 billion rights issue. SSANGYONG CEMENT: Posts S15M Interim Net Loss --------------------------------------------- Ssangyong Cement posted an interim net loss of S$15 million compared to an interim net profit of S2.85 million a year earlier, Channel News Asia reported Friday. The Company blamed the red ink on losses by its venture capital investment in the US technology sector and lower sales volume and weak selling prices for its cement and building materials business. Ssangyong Cement expects the full year to be in the red because the construction industry in Singapore and Hong Kong is expected to remain weak in the second half and further provisions are likely to be made for its US venture capital investments. SEMBCORP INDUSTRIES: Posts Change in Temasek's Interest ------------------------------------------------------- Sembcorp Industries posted a notice of changes in substantial shareholder Temasek Holdings (Private) Ltd's interest: Date of notice to Company: 12 Sep 2002 Date of change of deemed interest: 05 Sep 2002 Name of registered holder: CDP: DBS TD WATERHOUSE Circumstance(s) giving rise to the interest: Others Please specify details: Error in trading (buy) Shares held in the name of registered holder No. of shares of the change: 4,000 Percentage of issued share capital: 0 Amount of consideration per share excluding brokerage,GST,stamp duties,clearing fee: 1.17000 No. of shares held before change: Percentage of issued share capital: No. of shares held after change: Percentage of issued share capital: Holdings of Substantial Shareholder including direct and deemed interest Deemed Direct No. of shares held before change: 713,017,167 215,054,693 Percentage of issued share capital: 39.16 11.81 No. of shares held after change: 713,021,167 215,054,693 Percentage of issued share capital: 39.16 11.81 Total shares: 713,021,167 215,054,693 This transaction was reported to Temasek on September 11, 2002. WEE POH: Changes Registered Office Location ------------------------------------------- The Board of Directors of Wee Poh Holdings Limited announced Thursday that with effect from 2nd September 2002, the Registered Office of the Company was changed from 413 Tagore Industrial Avenue, Singapore 787803 to 213 Upper Thomson Road, Singapore 574348. Wee Poh Holdings Limited unveiled in July its first payment under the Scheme of Arrangement (the Scheme) under Section 210 of the Companies Act of W&P Piling Pte Ltd (a subsidiary of Wee Poh Holdings Limited). The announcement said Wee Poh Holdings Limited on 26 April 2002 relating to the sanction of the Scheme by the High Court, the Board of Directors announced that the first payment under the Scheme was made on 26 July 2002 to all participating Creditors whose claims have been admitted by the Scheme Administrator. =============== T H A I L A N D =============== SRITHAI SUPERWARE: Board Approves Srithai Electronics' Closure -------------------------------------------------------------- Srithai Superware said that the board of its subsidiary, Srithai Electronics Co (formerly Srithai Property Co), approved on September 9 the closure of the subsidiary. Srithai Electronics had suffered losses for several years, mainly because of the slow electronics industry worldwide and obsolescence of machinery. The closure, which would take place by year-end, would have no negative impact on the group. Recognition of the loss on the closure was expected to be minimal. THAI MILITARY: 17-Branch Closure Expected by Year-end ----------------------------------------------------- Thai Military Bank plans to close 17 unprofitable branches by end of this year and another 10 next year, maintaining its total branch network of 348, Bangkok Post reports. Senior executive vice-president Montri Visoldilokpun said the branches that have to be closed have been operating at a loss since their establishment. "They have 1.5 billion baht in combined deposits and loans or about 100 million baht per branch," he said. The total of 180 staff affected by the closures this year and next year will be relocated to branches nearby or to those with greater business potential. There would be no lay-offs as 700 employees had accepted voluntary retirement packages, the paper adds. 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, Salve M. Mordeno, Maria Cristina Pernites-Lao, Editors. Copyright 2002. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR -- Asia Pacific subscription rate is $575 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. 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