/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/020927.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, September 27, 2002, Vol. 5, No. 192 Headlines A U S T R A L I A AMP LIMITED: CSFB Has "Neutral" on Stock AMP LIMITED: Salomon Cautious on Solvency Issue AUSTRALIAN RURAL: ASIC Seeks Receiver Appointment C H I N A & H O N G K O N G CHINA LAND: Reports Net Loss of HK$73.611M CHINA STRATEGIC: First-half Losses Widen to HK$153.699M LIPPO CHINA: Widens First Half Loss to HK$158.955M GOURUN HOLDINGS: Posts HK$100.497M Loss in First Half SHOUGANG CONCORD: Subsidiary Disposal Brings HK$283.1M Loss STONE ELECTRONIC: Reduces Net Loss to HK$16.568M WONSON INTERNATIONAL: First-half Loss Soars to HK$86.666M I N D O N E S I A BANK NIAGA: Sale to Proceed, Legislators Say J A P A N DAIKIN INDUSTRIES: Moody's Upgrades Debt Ratings to Baa2 ISETAN CO.: S&P Ups Rating to BBB-pi KDDI CORP.: Train Derailment Disrupted Phone Service MATSUSHITA ELECTRIC: Develops EWCP System for Airline DVDs MATSUSHITA ELECTRIC: Joins NEC in Internet Access Service MITSUBISHI MOTORS: Moody's Affirms Ba3 L-T Debt Ratings MITSUKOSHI LTD: S&P Upgrades Rating to B+pi K O R E A HYNIX SEMICON: Sells Display Unit for $380M HYNIX SEMICON: Micron Wary of Renegotiating Anew HYUNDAI GROUP: Government Seeking New Bidders HYUNDAI MERCHANT: Shipping Firm Continues Executive Lay-Offs KOOKMIN BANK: Government to Sell 9.6% Stake KT CORP: Plans To Sell Debt Worth KRW180B M A L A Y S I A AMSTEEL CORPORATION: Creditors Favor Debt Rehab Plan BERJAYA GROUP: Directors Dealing in Shares During Closed Period BRIDGECON HOLDINGS: Danaharta Approves Debt Restructuring Plan GENERAL LUMBER: KLSE Grants Extension of Time KUMPULAN FIMA: Announces Board Retirements LION CORPORATION: Creditors Favor Debt Restructuring Scheme MALAYSIAN RESOURCES: Court Grants Unit Restraining Order METACORP BERHAD: Unit Inks Settlement Agreement With Bukit OLYMPIA INDUSTRIES: Mascon Winding-up Petition Withdrawn OLYMPIA INDUSTRIES: Seeks Approval of Mandate Renewal OMEGA HOLDINGS: KLSE Rejects Application for Time Extension PAN MALAYSIA: Announces Dissolution of Pengkalen Unit RAHMAN HYDRAULIC: Originating Summons Hearing Set for November S P SETIA: Announces Adjustments to Exercise Price SUNWAY CITY: SC Gives Nod on Proposed Disposal SURIA CAPITAL: Requisite Announcement Due in November TAI WAH: Garments Firm Enters MOA With Tangkai Jaya, Others TAT SANG: Writ of Summons Served to Purnama Prima TENAGA NASIONAL: Gets Approval on Proposed Bond Issues TIME ENGINEERING: SC Approves Restructuring Plan P H I L I P P I N E S NATIONAL POWER: Government Sets Terms on Coal Imports PICOP RESOURCES: SEC Chairman Faces Graft Charges Over Paper Co RFM CORPORATION: Elects Romeo Bernardo to Director Post RFM CORPORATION: Acquiring Swift Food's Meat Processing Ops S I N G A P O R E FJ BENJAMIN: $3.1M Profit Raises Management's Hopes T H A I L A N D BGES ENGINEERING: Completes Legal Name Change Process EASTERN PRINTING: Transfers Assets to Creditors PRANDA JEWELRY: Completes Debt Refinancing With 12 Banks SIAM STEEL: Submitting Capital Increase Report - - - - - - - - ================= A U S T R A L I A ================= AMP LIMITED: CSFB Has "Neutral" on Stock ---------------------------------------- Credit Suisse First Boston has "neutral" on stock of AMP Limited. The broker says AMP's earlier announcement that Pearl arm does not require more funds in the UK only "reduces short-term regulatory capital risk, but does not alter the underlying cash flow issues." AMP is a leading international financial services business, providing wealth management products and services to around 8 million customers worldwide. Principal activities include retirement savings, funds management, life and general insurance, financial planning and banking services. Shares in the company have been sinking to all time lows this week as the market reacted to revelations the group had not revealed the full extent of the financial troubles at its British operations. AMP LIMITED: Salomon Cautious on Solvency Issue ----------------------------------------------- Salomon Smith Barney would still like to see more disclosure of information regarding AMP's solvency sensitivity to equity markets and clarity on financial impact of already made and proposed changes. Without this and/or further analysis, analysts remain cautious and retain an "underperform" call for Australia's largest insurance and financial services group. AUSTRALIAN RURAL: ASIC Seeks Receiver Appointment ------------------------------------------------- The Australian Securities and Investments Commission (ASIC) has requested the appointment of a receiver and manager to Australian Rural Group Ltd (ARG), ARG Management Ltd and ARG Financial Group Ltd so that the true financial state of the companies would be known by their investors, creditors and those with an interest in the schemes administered by the companies. According to a report from Asia Pulse, the defendants opposed the application. The Supreme Court of New South Wales adjourned the matter, and will again be heard on October 2, 2002. ARG was suspended from trading on the Australian Stock Exchange on August 20, on concerns of the solvency and operations of the group. ARG lost a number of key accounting personnel, forcing it to rely mainly on external accounting support. The group appointed independent accounting firm Deloitte Touche Tohmatsu to undertake an independent external assessment of its activities. ================================ C H I N A & H O N G K O N G ================================ CHINA LAND: Reports Net Loss of HK$73.611M ------------------------------------------ China Land Group Ltd, which develops properties and toll roads, widened its net loss to HK$73.611 million for the first six months of the year, from a loss of HK$38.111 million in the same period last year. The company reported an operating loss of HK$92.323 million for the period, up from a loss of HK$28.707 million in 2001. Sales totaled HK$58.416 million. China Land Group has not paid interim dividends during the last 12 months and has not paid any dividends during the same period of last year. CHINA STRATEGIC: First-half Losses Widen to HK$153.699M ------------------------------------------------------- China Strategic Holdings Ltd widened its net loss in the first half of the year to HK$153.699 million, against a loss of HK$24.774 million in the same period last year. The company also reported an operating loss of HK$187.694 million compared with a loss of HK$35.576 million in 2001. Interim dividend was omitted, unchanged from the same period of last year. China Strategic Holdings Limited, formerly known as China Internet Global Alliance Limited, is involved in manufacturing and marketing of metallic packaging materials. Other activities of the Kowloon-based company include: manufacture of tires, cement, electrical equipment, and pharmaceutical products; production of flour, monosodium glutamate and related food products; hotel operation and property development. LIPPO CHINA: Widens First Half Loss to HK$158.955M -------------------------------------------------- Lippo China Resources Ltd reported a net loss of HK$158.955 million in the six months to June, against a loss of HK$37.368 million in the same period in 2001. No interim dividend was declared. It was unchanged from the same period last year. Lippo China Resources of Queensway, Hong Kong, provides investment holding, property investments and development, estate management, food businesses, fund management, underwriting, securities broking, securities trading and treasury investments, and the provision of commercial banking, consumer finance, mortgage finance, insurance and other related financial services. GOURUN HOLDINGS: Posts HK$100.497M Loss in First Half ----------------------------------------------------- Gourun Holdings Ltd reported that its six months to June net loss widened to HK$100.497 million from a loss of HK$26.226 million in the same period of last year. The company also widened its operating loss to HK$20.02 million against a loss of HK$5.963 million in 2001. Sales were recorded at HK$47.566 million. Gourun Holdings has not paid dividends during the interim period, and has not paid any dividends in the previous year. SHOUGANG CONCORD: Subsidiary Disposal Brings HK$283.1M Loss ----------------------------------------------------------- Shougang Concord International Enterprises has reported an interim net loss of HK$283.1 million, compared with a net loss of HK$39.9 million for the first half last year, mainly due to a big loss on the disposal of a subsidiary. The Hong Kong-listed investment holding company, whose subsidiaries and associates are engaged in activities ranging from the manufacturer of steel products to shipping, reported a 12.1 percent drop in turnover to HK$905.7 million for the first half of 2002. Its loss from operations rose to HK$292.6 million from HK$27 million for the first six months of 2001. The company incurred a loss of HK$213.3 million from the disposal of its 63.1 percent stake in locally listed Shougang Concord Grand (Group). A group reorganization plan announced in April included issuing convertible notes to its unlisted parent, Shougang Holding (HK), buying a 51 percent stake in a power generation company from it ultimate parent on the mainland, Shougang Corporation, and reducing its stakes in three units. The plan also included the company's disposal of its 63.1 percent stake in Shougang Concord Grand to its unlisted parent and to Cheung Kong (Holdings). The deal was completed on June 21. STONE ELECTRONIC: Reduces Net Loss to HK$16.568M ------------------------------------------------ Stone Electronic Technology Ltd recorded a net loss of HK$16.568 million for the six months to June compared to a loss of HK$49.825 million in the previous year. Operating loss this year was also reduced to HK$23.485 million from a loss of HK$48.785 million. Stone Electronic Technology did not declare any interim dividend. It remained unchanged since last year. Hong Kong's Stone Electronic Technology Limited - http://www.stone-group.com/- manufactures and distributes electronic and electrical products and office equipment and component parts, property and investment holding, trading of telecommunication related products, manufacture of integrated word processors, cash registers, high speed offset printers and fluorescent electronic ballasts, packaging equipment, software development, installation of engine room facilities and installation of air-conditioning and other facilities for intelligent buildings. WONSON INTERNATIONAL: First-half Loss Soars to HK$86.666M --------------------------------------------------------- Wonson International Holdings Ltd said that its net loss for the six months to June rocketed to HK$86.666 million from only HK$2.952 million in the previous year. Operating loss was recorded at HK$41.252 million from a reversal profit of HK$10.280 million in 2001. Sales totaled HK$1.342 million. No interim dividend was declared, unchanged from the same period last year. ================= I N D O N E S I A ================= BANK NIAGA: Sale to Proceed, Legislators Say -------------------------------------------- House of Representatives Commission IX for financial affairs agreed on Wednesday to let the government proceed with the sale of Bank Niaga if the Indonesian Bank Restructuring Agency (IBRA) feels that getting a better price was unlikely, the Jakarta Post reported. The decision has cleared the way for the government to divest a 51 percent stake in publicly listed Bank Niaga at Rp 1.05 trillion (about US$166 million) or Rp 26.5 a share. Legislators demanded earlier that IBRA sell Niaga at twice the price of the bank's book value of between Rp 15 and Rp 17 a share. As the submitted bids turned out to be lower, they asked IBRA to negotiate upwards on Commerce Asset Holding Bhd's offer. TCR-AP reported Tuesday that Commerce Asset has declined to increase its offer of 26.5 rupiah per share because the price it had offered was final. Commerce Asset was the lone bidder for the 51 percent stake in Niaga after Australia & New Zealand Banking Group Ltd. dropped out. ========= J A P A N ========= DAIKIN INDUSTRIES: Moody's Upgrades Debt Ratings to Baa2 -------------------------------------------------------- Moody's Investors Service Inc said Wednesday it has upgraded Daikin Industries Ltd's senior unsecured ratings to Baa2 from Baa3 with the rating outlook stable. The action reflects improvements in earnings and capital structure at the leading air-conditioning system maker, the U.S. credit-rating agency said. Daikin has strengthened its earnings through a mix of new products, greater marketing efforts and reductions in production costs, Moody's said. Furthermore, the long-term outlook is expected to remain favorable as the market expands with the introduction of new products, although a sharp fall in demand last year for information and telecommunications-related products did hurt revenues in Daikin's chemical division. Moody's believes that the chemical division's relatively high level of exposure to the information and telecommunications markets mean that further diversification efforts are needed to stabilize the earnings in this segment. Moody's expects Daikin's financial standings will continue to improve over the intermediate term in view of our expectations of continued strong earnings and cash flow and ongoing efforts to reduce debt. The Osaka-based Daikin is a leading manufacturer of industrial- use air conditioners and fluorochemical products. ISETAN CO.: S&P Ups Rating to BBB-pi ------------------------------------ Standard & Poor's Ratings Services said Tuesday it had raised the corporate credit rating of Isetan Co. Ltd. to 'BBB-pi' from 'BB+pi', based on the company's improving profitability and cash flow protection stemming from its enhanced merchandising capabilities and steady debt reduction. S&P said that Isetan has successfully maintained the strong market position of its flagship store in Tokyo's highly competitive district of Shinjuku, which accounts for 55% of its total department store revenue on an unconsolidated basis. The flagship store has benefited from enhanced merchandising capabilities following its renovation in 2001 and the company wide introduction of a new supply chain management system, which allows Isetan to sell a wider variety of apparel products at lower costs. Isetan's return on average operating assets has increased to around 9% in recent years from a previous range of 5 percent to 6 percent, which is one of the highest among its peers. Funds from operations to total debt has also increased gradually, growing to 22 percent in fiscal 2001 (ended March 2002) from 16 percent in fiscal 2000 and less than 3 percent in fiscal 1996. In addition, total debt has fallen by 40 percent since fiscal 1996, dropping to 147 billion yen in fiscal 2001. This improvement is mainly the result of management's emphasis on improving profitability over maximizing sales, and the company's conservative capital expenditure policy. Isetan directly operates seven stores in Japan, including its flagship store in Shinjuku, and operates two stores via subsidiaries. Department store operations are Isetan's major revenue source, contributing 90% of total consolidated sales and nearly 70 percent of operating profits after depreciation. KDDI CORP.: Train Derailment Disrupted Phone Service ---------------------------------------------------- Phone company KDDI Corp. said that a collision between a Nagoya Railroad Co. train and a car in western Japan disrupted its fixed-line phone services for about two and a half hours. About 5,200 phone lines providing data services for corporate customers were disrupted and are still under repair. This is a further blow to KDDI, which will take a special loss of Y229 billion for this business year to March 31 to shut down the part of its PDC (personal digital cellular) network operated by wireless brand "au" and waive Y20 billion in loans to another struggling unit, DDI Pocket. TCR-AP reported in June that KDDI will cut its annual capital spending to Y310 billion by March 2005. MATSUSHITA ELECTRIC: Develops EWCP System for Airline DVDs ---------------------------------------------------------- Osaka, Japan's Matsushita Electric Industrial Co., Ltd., (NYSE: MC), best known for its Panasonic brand name, announced Wednesday the development of the Early Window Content Protection (EWCP) system for special purpose Airline DVDs for in-flight entertainment. The industry's first technology that is fully compliant with the World Airline Entertainment Association's specification 0598 copy protection standard, EWCP will give airlines the ability to offer their passengers most recent theatrically released motion pictures in high quality DVD format while assuring movie studios that their high valued content is adequately protected. The Triple DES [content data] encryption used in EWCP provides highly secure content protection, while its fingerprinting technology provides a cutting-edge traceability tool for tracking pirated content. If someone "burns" an unauthorized copy of any Airline DVD or copies the content to a VHS tape, the fingerprint of the Airline DVD player is embedded in the copy, allowing it to be traced back to the very machine from which it was pirated. If pirated content is found, the device key of that particular Airline DVD player is revoked. In addition, the fingerprint of the Airline DVD player is embedded into the baseband video signal during playback, so it does not affect conventional authoring systems. Matsushita Electric is exhibiting its Airline DVD players that incorporate the EWCP system at the World Airline Entertainment Association's 23rd Annual Conference and Exhibition, to be held in Seattle from September 24 to 27. The Airline DVD format differs from normal DVD discs for consumer use, though an Airline DVD Player may also playback consumer type DVD disc. The World Airline Entertainment Association, joined by content providers, airlines and manufacturers of in-flight entertainment devices, adopted specification 0598 in October 2000. Matsushita Electric Industrial Co., Ltd., best known for its Panasonic, National, Technics, and Quasar brand names, is a worldwide leader in the development and manufacture of electronics products for a wide range of consumer, business, and industrial needs. Based in Osaka, Japan, the company recorded consolidated sales of US$51.7 billion for the fiscal year ended March 31, 2002. In addition to the Tokyo and other Japanese stock exchanges (6752), Matsushita Electric is also listed on the Amsterdam, Dusseldorf, Frankfurt, New York, Pacific (NYSE/PCX: MC), and Paris stock exchanges. For inquiries, contact Yasuhiro Fukagawa, International PR in Tokyo, at telephone +81-3-3578-1237, or fax +81-3-5472-7608. MATSUSHITA ELECTRIC: Joins NEC in Internet Access Service --------------------------------------------------------- Matsushita Electric Industrial Co has agreed to tie up its Internet access services with NEC Corp, Japan Today reported. Under the agreement, subscribers to Matsushita's Panasonic hi-ho access service will be able to purchase content from NEC's BIGLOBE service, starting October 16. MITSUBISHI MOTORS: Moody's Affirms Ba3 L-T Debt Ratings ------------------------------------------------------- Moody's Investors Service said Wednesday it has affirmed Mitsubishi Motors Corporation's (MMC) Ba3 senior debt ratings, but has changed the outlook to negative from stable. The rating confirmation reflects Moody's view that the credit profile of MMC will not materially deteriorate because of the spin-off of MMC's truck and bus unit into a separate company, Mitsubishi Fuso Truck and Bus Corporation (MFTBC), in January 2003. The new company will initially operate as a wholly owned subsidiary of MMC, but in March 2003, DaimlerChrysler (DCX) and the Mitsubishi group of companies will acquire a 58 percent interest for 120 billion yen in cash. MMC's stake in the venture will then fall to 42 percent. The rating confirmation is further based on Moody's expectation that MMC will use the proceeds from the sale of the MFTBC stake to reduce debt. Of the total 120 billion yen payment, DCX will contribute 89 billion yen and the Mitsubishi group of companies 31 billion yen. The sale of the majority 58 percent stake in MFTBC will also in itself help lower MMC's overall book debt. The truck and bus operation will carry its own debt level of 210 billion yen, but after the March sale, this will no longer be attributable to MMC as MFTBC will cease to function as a consolidated subsidiary of MMC. The negative outlook is based on Moody's view that the volatility in MMC's cash flow generation may increase after the spin-off as the operating performance of the truck and bus unit historically has a higher level of stability. Tokyo-based Mitsubishi Motors Corporation is Japan's fourth largest automotive manufacturer. MITSUKOSHI LTD: S&P Upgrades Rating to B+pi ------------------------------------------- Standard & Poor's Ratings Services said Tuesday that it had raised the corporate credit rating of retailer Mitsukoshi Ltd. to 'B+pi' from 'Bpi', reflecting the improving operating efficiency of Mitsukoshi's department store business and its steady debt reduction. Mitsukoshi's return on operating assets has been gradually recovering following the implementation of drastic restructuring over the past three years, including the closure of unprofitable stores, wage cuts, and changes to its employee pension fund. Return on operating assets in the department store business recovered to 3.1 percent in fiscal 2001 (ended Feb. 28, 2002). To improve overall operating profitability in the near term, the company will continue to focus on improving the operating efficiency of its large stores, reducing rents, and collaborating with its peers, such as Takashimaya Co. Ltd., in backend operations. Mitsukoshi's ratio of funds from operations to total debt has also been recovering, climbing to 12 percent in fiscal 2001 from 3 percent in fiscal 1998. Total debt has fallen by around 25 percent from its peak four years ago, and total debt to capital declined to 82 percent in fiscal 2001 from 94 percent at fiscal 1998. Mitsukoshi operates 12 stores in Japan on its own and six stores via subsidiaries. The company also engages in real estate, logistics, construction services, and financing and leasing businesses. ========= K O R E A ========= HYNIX SEMICON: Sells Display Unit for $380M ------------------------------------------- Hynix Semiconductor Inc. will sell its flat-panel display unit to China's BOE Technology Group for about $380 million to invest in its memory-chip business. The sale will also give the world's third-largest memory-chip maker more money to stay afloat after two creditor bailouts in two years. Hynix said it expects to sign a final contract by October 25 and transfer the ownership of the unit a month after that. Its flat- panel production lines will probably remain in Korea. The unit employs about 1,600 workers and posted sales of 460 billion won ($375 million) in the first six months of 2002. Beijing-based BOE, which hired Citibank NA to help it raise money overseas to pay for the purchase, said in a statement the acquisition will lift annual sales by 5 billion yuan ($602 million). Citibank is a Hynix creditor. Its investment banking unit, Salomon Smith Barney Inc., has worked as the chipmaker's financial adviser. Korea Exchange Bank and other Hynix creditors still face a challenge recouping $5 billion of loans after memory-chip prices fell by about a fifth this year. Hynix's lenders took over the company in June in a 3 trillion won ($2.5 billion) debt-for-equity swap. They are now considering debt recovery measures suggested by Deutsche Bank AG. HYNIX SEMICON: Micron Wary of Renegotiating Anew ------------------------------------------------ Micron Technologies Inc of the United States said it has been concentrating on building up its own financial status rather than taking over another DRAM producer, the Digital Chosun reported. Micron CEO Steve Appleton commented that if the aborted deal with Hynix Semiconductor resurfaces, the negotiations would have to start at the drawing board, as the conditions for acquisition have changed drastically. Appleton spearheaded negotiations with Hynix to purchase the Korean chipmaker, but the negotiations broke down after Hynix's board of directors vetoed the sale. TCR-AP said Tuesday that Hynix hired Deutsche Bank to come up with a plan for the Company after the former Hynix board rejected a takeover offer from Micron. HYUNDAI GROUP: Government Seeking New Bidders --------------------------------------------- The government is seeking a new prospective buyer of Hyundai Group's three troubled financial firms, including Hyundai Investment Trust and Securities (HITS), the Korea Herald reports. Financial Supervisory Commission (FSC) Chairman Lee Keun-young said the government is looking for a new party interested in taking over the firms while engaging in negotiations with U.S. Prudential Group on details of the deal. Prudential has been in talks with the government to acquire the three financial firms since the government broke off negotiations with the American International Group (AIG)-led consortium in January over their bid to make a joint investment in the three firms. HYUNDAI MERCHANT: Shipping Firm Continues Executive Lay-Offs ------------------------------------------------------------ Shipping firm Hyundai Merchant Marine Co has once again slashed its executive staff by ten people on Wednesday, following the forced retirement of seven early last week, the Digital Chosun reported. The company's trimming of its executive workforce was triggered by the inauguration of No Jung-ick as CEO early this month. The company's 47 executive-level officials have been slashed down to 30 since No took office. Reports said creditor banks of the shipping giant have been pressuring the management of the Company to cut executives who have not measured up to expectations. Hyundai Merchant as of March 31, 2002 has current assets of $1.2 billion against current liabilities of $2.3 billion. KOOKMIN BANK: Government to Sell 9.6% Stake ------------------------------------------- An official at the Ministry of Planning and Budget said Wednesday that the government is planning to unleash its 9.6 percent stake in Kookmin Bank next year, thus securing 1.6 trillion won. According to a report from the Korea Herald, proceeds of the stake sale will be incorporated into the non-tax government income, estimated at 8.5 trillion won, for next year. The 1.6 trillion won was calculated on the current share price of Korea's biggest lender. KT CORP: Plans To Sell Debt Worth KRW180B ----------------------------------------- Telecom giant KT Corp. will offer corporate debts worth 180 billion won at a rate of 6.35 percent later this month, the Korea Herald reports. The debt will carry a maturity of seven years. Proceeds from the debt sale will be used in rolling over maturing debts, the paper said. The deal will be engineered and underwritten by Daishin Securities, Hyundai Securities, Shinheung Securities, Hana Securities, Bridge Securities and Korea Investment Trust and Securities Co. TCR-AP said last week KT Corp. also sold 100 billion won in five-year unsecured bonds to repay 100 billion won of its outstanding bonds maturing September 21. KT Corporation at the end of 2001 has negative working capital, as current liabilities were 6.06 trillion Korean Won while total current assets were only 5.73 trillion Korean Won. =============== M A L A Y S I A =============== AMSTEEL CORPORATION: Creditors Favor Debt Rehab Plan ---------------------------------------------------- The Directors of Amsteel Corporation Berhad (ACB) wishes to announce that further to the announcements dated 16 September 2002 and 18 September 2002, the Secured Creditors of Lion Seremban Parade Sdn Bhd, a subsidiary of ACB, had at their scheme meeting pursuant to Section 176 of the Companies Act, 1965 voted unanimously in favor of the proposed corporate and debt restructuring exercises for ACB Group of Companies. The Scheme Meeting had been adjourned from 18 September 2002. With the conclusion of the aforesaid meeting, all the scheme meetings of ACB and its subsidiaries have been completed under the Proposed ACB Scheme. BERJAYA GROUP: Directors Dealing in Shares During Closed Period --------------------------------------------------------------- Berjaya Group Berhad (BGroup) is now in the closed period for dealing in its securities by its Directors pending the announcement of its results for the first financial quarter ended 31 July 2002. The Company has received a notification from Tan Sri Dato' Seri Vincent Tan Chee Yioun, the Chairman/Chief Executive Officer of the Company, of his intention to deal in the securities of the Company during the closed period as follows: "I, Tan Sri Dato' Seri Vincent Tan Chee Yioun, the Chairman/Chief Executive Officer of Berjaya Group Berhad (BGroup) currently has interests in BGroup as set out below: TAN SRI DATO' SERI VINCENT TAN CHEE YIOUN'S INTERESTS IN BGROUP'S SECURITIES 1) SHARES No. of Shares Held % i) Direct 385,102,429 25.70 ii) Indirect 145,508,246 9.71 --------------- ------- 530,610,675 35.41 --------------- ------- 2) 5% IRREDEEMABLE CONVERTIBLE UNSECURED LOAN STOCKS 1999/2009 (ICULS) No. of ICULS Held % i) Direct 87,517,081 20.73 ii) Indirect 73,511,434 17.42 --------------- ------- 161,028,515 38.15 --------------- ------- 3) WARRANTS No. of Warrants Held % i) Direct 693,086,916 27.07 ii) Indirect 208,000,000 8.13 --------------- ------- 901,086,916 35.20 --------------- ------- In compliance with Paragraph 14.08(a) of the Kuala Lumpur Stock Exchange (KLSE) Listing Requirements in relation to directors' dealings in the securities of their public listed companies during the closed periods, I wish to inform KLSE that I intend to deal in the securities of BGroup through the stockbrokers during the closed period pending the announcement by BGroup of its results for the first financial quarter ended 31 July 2002. Details of the transaction will be announced to KLSE within one (1) full trading day after the transaction." BRIDGECON HOLDINGS: Danaharta Approves Debt Restructuring Plan -------------------------------------------------------------- Bridgecon Holdings Berhad (Special Administrators Appointed) said in a statement to the Kuala Lumpur Stock Exchange that Pengurusan Danaharta Nasional Berhad had on 20th September 2002 approved the Workout Proposal pursuant to Section 45(2) of the Pengurusan Danaharta Nasional Berhad Act 1998. The Workout Proposal entails the proposed corporate and debts restructuring of the Company. GENERAL LUMBER: KLSE Grants Extension of Time --------------------------------------------- On behalf of General Lumber Fabricators & Builders Bhd, PM Securities Sdn Bhd, wishes to announce that the Kuala Lumpur Stock Exchange (KLSE), has approved an extension of time from 4 September 2002 to 15 October 2002 for the Company to make the requisite announcement pursuant to Paragraph 5.1 of PN4 (RA). Presently, the Company is in the process of finalizing the definitive agreements in relation to the proposed restructuring exercise of the Company as well as obtaining the approvals in- principle from the major creditors of the Company. Barring any unforeseen circumstances, the RA shall be made in due course on or before 15 October 2002. KUMPULAN FIMA: Announces Board Retirements ------------------------------------------ Kumpulan Fima Berhad said in a disclosure to the Kuala Lumpur Stock Exchange that Tan Sri Dato' HJ Basir Bin Ismail has retired as Executive Director of the Board, effective 25 September 2002. The retirement is in accordance with Section 129(2) of the Companies Act, 1965. Tan Sri Dato' HJ Basir Bin Ismail holds 26,463,000 units or 10.055% of Direct Interest in the Company, and 152,057,000 units or 57.781% of Indirect/Deemed Interest. Tan Sri Dato' Seri B. Bek-Nielsen also retired as Independent & Non Executive Director of the Board. LION CORPORATION: Creditors Favor Debt Restructuring Scheme ----------------------------------------------------------- On 15 May 2002, the Directors of Lion Corporation Berhad (LCB) announced that Megasteel Sdn Bdh, a subsidiary company of LCB, had applied to the High Court of Malaya for an order to convene meetings of its creditors for the purpose of considering and approving the scheme of arrangement between Megasteel and its creditors (Scheme Creditors) to facilitate the settlement of its debt owing to the Scheme Creditors (Proposed Scheme). In this regard, the Directors of LCB are pleased to announce that the scheme meetings of the company (other than Meeting of non-financial institution Creditors Class II) for the proposed debt restructuring scheme of Megasteel with the categories of Scheme Creditors were held earlier on Wednesday and the voting results are set out below. Category of Creditors Votes in Favor Meeting of Term Loan Lenders 100% Meeting of Working Capital Lenders 100% Meeting of Non-FI Creditors Class I 100% The scheme meeting of Non-FI Creditors Class II has been adjourned to 9.30 a.m, 16 October 2002 at Novotel Century Hotel, 17 - 21, Jalan Bukit Bintang, 55100 Kuala Lumpur. Khazanah Nasional Berhad, a working capital lender of Megasteel, has also approved the Proposed Scheme. Debts not addressed under the Proposed Scheme consist of trade creditors and accruals (amounting to RM471.97 million as at 30 June 2002), and the management of Megasteel expects such liabilities to be repaid in the ordinary course of business. With the conclusion of the scheme meetings of Megasteel, the Proposed Scheme remains subject to the Non-FI Creditors Class II approval at their adjourned scheme meeting and the sanction of the High Court of Malaya. MALAYSIAN RESOURCES: Court Grants Unit Restraining Order -------------------------------------------------------- Malaysian Resources Corporation Berhad (MRCB) wishes to announce that the High Court of Malaya had on 23 September 2002, granted Milmix Sdn Bhd, formerly known as MRCB Construction Sdn Bhd, a wholly owned subsidiary of the Company, a Restraining Order (RO) for a period of three months from the date of the RO. Milmix has yet to receive the sealed copy of the RO. BACKGROUND EVENTS LEADING TO THE COURT ORDER Milmix's main activity is construction of residential property. Its operation does not constitute a material component of MRCB's Group's engineering and construction activities and its operation is no longer part of MRCB's core activities. On 22 August 2002, the Board of Directors of Milmix approved the Proposed Debt Settlement through a Scheme of Arrangement pursuant to Section 176 of the Companies Act 1965. The Letters of Consent from the creditors were received on 29 August 2002. Subsequently, on 30 August 2002, Milmix through its solicitors, filed an ex-parte application by way of Originating Summons with affidavit to the High Court which fixed 23 September 2002 for hearing of the RO. DETAILS OF THE PROPOSED DEBT SETTLEMENT SCHEME Based on the unaudited accounts of Milmix as at 29 August 2002, the total amount due to its unsecured creditors is RM28.8 million of which RM23.3 million is due to the companies within the MRCB Group. Under the Proposed Debt Settlement Scheme, all interests and penalty charges will be waived. Upon implementation of the Scheme, the first RM5,000 owing to each unsecured creditors will be settled in cash. Milmix will then propose for a debt waiver of 40% on the total outstanding debt due to all its unsecured creditors. Thereafter, the outstanding debt will be settled in cash in two installments. The first installment of 50% of the total amount due will be paid on the implementation of the Scheme and the balance will be paid within 9 months from the implementation of the Scheme. Upon completion of the Scheme, a total amount of RM1.5 million will be paid out to the external creditors. FINANCIAL AND OPERATIONAL IMPACT The RO is not expected to have any financial or operational impact on the Group. All debts of Milmix have no recourse to MRCB and all MRCB's cost of investment and advances to Milmix have been provided for. METACORP BERHAD: Unit Inks Settlement Agreement With Bukit ---------------------------------------------------------- Metacorp Berhad wishes to announce that its wholly owned subsidiary, Metacorp Properties Sdn Bhd (MPSB) had on 23 September 2002 signed a Settlement Agreement with Bukit Makmur Sdn Bhd (BMSB) to settle all disputes set out in the Melaka High Court Suit No: MT2-22-66-2002 including any and all counterclaim, set-off, other ancillary or interlocutory proceedings of whatever kind thereunder. The structure for settlement, among others, includes: 1. MPSB shall pay BMSB RM825,062.65 in full and final settlement of all Disputes; 2. The RM825,062.65 shall be paid to BMSB via as follows:- (a) Exchange of Properties - RM773,531.85 shall be utilized as full and final payment by BMSB to MPSB of the purchase prices and all other charges, fees or money whatever kind howsoever required for the purchase of 2 new pieces of land ("New Properties") and for the completion of the new Sale and Purchase Agreements; (b) First cash payment of RM1,530.80 being the difference between the settlement sum and the purchase price of the New Properties shall be paid to BMSB upon execution of the settlement; and (c) Second cash payment of RM50,000 shall be paid to BMSB within 30 days from the date of the settlement. The financial impact of the settlement would be approximately RM2.6 million comprising a reversal of gross development profit previously recognized of approximately RM3.0 million and recognition of a gross development profit on the sale of New Properties of approximately RM0.4 million. OLYMPIA INDUSTRIES: Mascon Winding-up Petition Withdrawn -------------------------------------------------------- Olympia Industries Berhad, in a statement to the Kuala Lumpur Stock Exchange, said that it has been informed by their solicitors that the winding-up petition filed by Tanjung Teras Sdn Bhd against Mascon Sdn Bhd, a subsidiary of Olympia Industries, has been withdrawn on 24 September 2002 with no order as to costs. OLYMPIA INDUSTRIES: Seeks Approval of Mandate Renewal ----------------------------------------------------- The Board of Directors of Olympia Industries Berhad (OIB) wishes to announce that the Company intends to seek approval from its shareholders for the Proposed Renewal of the Existing Shareholders' Mandate and the Proposed New Shareholders' Mandate for recurrent related party transactions of a revenue or trading nature which are necessary for the day-to-day operations of OIB and its subsidiaries at the forthcoming Extraordinary General Meeting (EGM) of the Company to be convened. The recurrent related party transactions of a revenue or trading nature are necessary for the day-to-day operations and are carried out in the ordinary course of business, on normal commercial terms which are not more favorable than those general available to the public and are not to the detriment of the minority shareholders of the Company. A Circular to Shareholders in relation to the above proposals together with the Notice of EGM will be dispatched to the shareholders of the Company in due course. OMEGA HOLDINGS: KLSE Rejects Application for Time Extension ----------------------------------------------------------- Omega Holdings Berhad made an application for an extension of time from 31 August 2002 to 31 October 2002 to make a submission of its regularization plan to the authorities for approval. The Company wishes to announce that the Kuala Lumpur Stock Exchange has rejected the application for an extension of time to comply with the obligation set out in paragraph 5.1 of PN4. The Company, however, had entered into a new restructuring agreement with Selayang Budi Sdn. Bhd. on 27 August 2002 and accordingly, an announcement was made on the same day. Currently, the Company is working towards the submission of the entire restructuring scheme to the Securities Commission. PAN MALAYSIA: Announces Dissolution of Pengkalen Unit ----------------------------------------------------- The Liquidator of Pengkalen (Hong Kong) Limited (PHK), a wholly owned subsidiary of Pan Malaysia Holdings Berhad, had on 25 September 2002 submitted to the Registrar of Companies of Hong Kong Special Administrative Region for registration the return of holding of the final meeting pursuant to Section 239(3) of the Companies Ordinance (Cap. 32). Pursuant to Section 239(4) of the Companies Ordinance (Cap. 32), on the expiration of three months from the registration of the aforesaid return, PHK shall be dissolved. RAHMAN HYDRAULIC: Originating Summons Hearing Set for November -------------------------------------------------------------- Rahman Hydraulic Tin Berhad (Special Administrators Appointed) (RHTB) said in a statement to the Kuala Lumpur Stock Exchange that Speed Operations Sdn. Bhd. and Assets Growth Berhad's Originating Summons is fixed for hearing on 13 November 2002 and the Company's summons to strike out the aforementioned Originating Summons is fixed for hearing on 24 October 2002. Further development on the suit will be announced in due course. S P SETIA: Announces Adjustments to Exercise Price -------------------------------------------------- Alliance Merchant Bank Berhad, on behalf of S P Setia Berhad, is pleased to announce that adjustments are made to the exercise price of the Warrants and the issue of additional Warrants pursuant to Condition 3 of the Second Schedule of the Deed Poll of S P Setia dated 1 June 2000 as a result of the following: (i) bonus issue of 61,571,428 new ordinary shares of RM1.00 each in S P Setia credited as fully paid-up (Bonus Shares) on the basis of one (1) new Bonus Share for every six (6) existing Shares held (Bonus Issue) at 5.00 p.m. on 24 September 2002; and (ii) renounceable rights issue of 123,142,857 new Shares (Rights Shares) on the basis of one (1) Rights Share for every three (3) existing Shares held at 5.00 p.m. on 24 September 2002 at an issue price of RM1.98 per Rights Share ("Rights Issue"). The adjusted exercise price and the additional Warrants to be issued pursuant to the Adjustments (Additional Warrants) is tabulated below: Before Additional After Adjustments Warrants to Adjustments be issued pursuant to the adjustments Number of Warrants 60,703,886 16,110,983 76,814,869 Exercise price RM3.52/share - RM2.78/share The issuance of the Additional Warrants shall be on the basis of 265 (rounded down from 265.403) additional Warrants for every 1,000 existing Warrants held. In determining the Additional Warrants to be issued to each existing holder of Warrants pursuant to the Adjustments, the adjustments will be rounded downwards. The Company may at its sole and absolute discretion determine to the nearest whole Warrant, in accordance with the Deed Poll. The effective date for the Adjustments is on 25 September 2002, being the date next following 24 September 2002, being the record date as defined in the Deed Poll. According to Condition 3(5) of the Second Schedule to the Deed Poll, the Company shall within 21 days of such Adjustments or such other period of time as may be determined by the Directors of the Company, give notice to Holders of the Warrants of the Adjustments. The following documents are available for inspection during normal business hours at the Registered Office of S P Setia at 6th Floor, South Block, Wisma Selangor Dredging, 142-A, Jalan Ampang, 50450 Kuala Lumpur, on Monday to Friday (except public holidays) for a period of 3 months from the date of this Announcement: (i) Deed Poll; (ii) Supplemental Deed Poll dated 25 September 2002; (iii) Auditor's Certificate certifying the Adjustments and the Effective Date for the Adjustments thereof; and (iv) Director's Certificate certifying and setting forth particulars of the event giving rise to the Adjustments and the Effective Date for the Adjustments thereof. SUNWAY CITY: SC Gives Nod on Proposed Disposal ---------------------------------------------- Alliance Merchant Bank Berhad, on behalf of the Board of Directors of Sunway City Berhad, is pleased to announce that the Securities Commission had, vide its letter dated 23 September 2002 approved the Proposed Disposals in relation to the asset- backed securitization exercise under the Proposed ABS Issue. The proposed disposal include six (6) properties including the plant & machinery together with its lease rights, and redeemable preference shares, with an aggregate value of up to RM892 million to ABS Real Estate Berhad (AREB), a special purpose vehicle for a sale consideration of RM892.0 million to be satisfied by cash and subordinated class D notes. SURIA CAPITAL: Requisite Announcement Due in November ----------------------------------------------------- The Board of Directors of SURIA Capital Holdings Berhad (SCHB) said Wednesday that the Kuala Lumpur Stock Exchange approved SURIA's application for an extension of time of three (3) months from 23 August 2002 to 22 November 2002. The extension will enable SURIA to make its Requisite Announcement pursuant to paragraph 6.1 of PN10. The additional time sought was to allow SURIA to finalize the terms of the proposed injection of Sabah Ports Authority with the State Government of Sabah. Prior to its public listing, SCHB undertook a restructuring exercise which included the acquisition of Sabah Development Bank Bhd (SDB) and Sabah Bank Bhd (SBB). SCHB was, until then, principally a property development company. With the completion of the restructuring, SCHB was transformed into an investment holding company. The Company disposed of SDB to the State Government of Sabah in 1999. Suria Capital Holdings Berhad in Kota Kinabalu, Sabah, provides commercial banking and fund management services. During 2000, the entire shares of Sabah Bank Bhd, a wholly owned banking subsidiary, was disposed. TAI WAH: Garments Firm Enters MOA With Tangkai Jaya, 2 Others ------------------------------------------------------------- Tai Wah Garments Manufacturing Berhad (TWGB) wishes to announce that the Company, on 25 September 2002, entered into a Memorandum of Agreement (MOA) with Tangkai Jaya Sdn Bhd, Hock Der Realty Sdn Bhd, Setegap Jaya Sdn Bhd and parties acting in concert with them (White Knights) for an asset injection in relation to a proposed restructuring scheme: * One industrial factory located in Johor Bahru (Title 62923, HS(D) 187271, Mukim Tebrau, Daerah Johor Bahru) with a land area 131,213 sq.ft; * One industrial factory located in Johor Bahru (Title 2050, CT 5046, Mukim Tebrau, Daerah Johor Bahru) with a land area of about 4 acres; * One industrial factory located in Johor Bahru (Title 62924, HS(D) 187272, Mukim of Tebrau, Daerah Johor Bahru) with a land area of 132,828 sq. ft.; * One industrial factory located in the town of Johor Bahru (Title PTB 18574, HS(D) 158799, Kawasan Perindustrian Tampoi, Johor Bahru) with a land area of 128,489 sq. ft.; * One office cum commercial complex located in the town of Johor Bahru known as "City Plaza"; and * Tai Thong Industries Sdn. Bhd., a manufacturing company principally involved in the production of ethyl alcohol. TWGB on 2 July 2002 announced the first phase of its proposed restructuring scheme comprising the disposal of the entire equity interest in Tai Wah Garments Industry Sdn Bhd and 47 parcels of land and/or buildings for a total cash consideration of RM43.78 million (Phase 1 Proposal). The Phase 1 Proposal is currently being considered by the relevant authorities. The salient terms of the MOA are set out below: 1. The indicative components of Phase 2 of the Proposed Restructuring Scheme shall comprise, inter-alia, the following: (i) The proposed incorporation or setting up of a newly incorporated company (Newco); (ii) The proposed scheme of arrangement with the shareholders of TWGB in relation to the reduction of the existing issued and paid-up share capital of TWGB from RM106 million comprising 106 million ordinary shares of RM1.00 each to RM10.6 million by the cancellation of RM0.90 of the par value of each existing TWGB share reducing the par value to RM0.10 per share. Upon completion of the aforesaid cancellation, the issued and paid-up share capital of TWGB will be consolidated on the basis of every ten (10) ordinary shares of RM0.10 each in TWGB into one (1) ordinary share of RM1.00 each, resulting in the issued and paid-up share capital of TWGB to be RM10.6 million comprising 10.6 million shares of RM1.00 each. The consolidation will be followed by an exchange of all the existing shares in the Company for ten million six hundred thousand (10,600,000) new ordinary shares of RM1.00 each in Newco; (iii) The proposed settlement between TWGB and its creditors involving the issuance of seventeen million two hundred fifty- five thousand (17,255,000) new ordinary shares of RM1.00 each or other financial instrument(s) in Newco to the creditors as full and final settlement of the outstanding debts due from TWGB to the creditors after a debt waiver and set-off of proceeds from the Phase 1 Proposal; (iv) The proposed acquisition of White Knight Assets by Newco from the White Knights at the purchase consideration to be mutually agreed upon by the parties herein; such consideration shall be in the form of new ordinary shares of RM1.00 each and/or other financial instrument(s) in the Newco (Proposed Acquisitions); (v) The proposed exemption to the Vendors from the obligations of making a mandatory general offer for the remaining shares in Newco not already owned by them upon completion of the Proposed Acquisitions pursuant to the provisions of the Malaysian Code on Take-overs and Mergers, 1998; (vi) The proposed offer for sale/placement of Newco shares/financial instruments by the Vendors to the general public to meet the 25% public spread requirement of the KLSE; and (vii) The proposed listing and quotation of all new ordinary shares of Newco. 2. The components of the Proposed Restructuring Scheme shall be conditional upon: (i) the finalization of the Proposed Restructuring Scheme on terms satisfactory to the Vendors; (ii) obtaining all relevant approvals from the relevant authorities and the shareholders and creditors of TWGB in relation to the Proposed Restructuring Scheme; (iii) TWGB being satisfied with the results of TWGB's investigation into the legal and financial due diligence on the White Knight Assets; (iv) The Vendors being satisfied with the results of their investigation into the legal and financial due diligence on TWGB; (v) The share and assets sale agreements for the Proposed Acquisitions becoming unconditional in accordance with the terms therein contained; and (vi) The satisfactory completion of the Phase 1 Proposal. TWGB and the White Knights are required to enter into an agreement (Definitive Agreement) for the formulation of the Proposed Restructuring Scheme and the implementation thereof within three (3) weeks of entering into the MOA. A detailed announcement on the terms of the Definitive Agreement and Proposed Restructuring Scheme will be made in due course. TAT SANG: Writ of Summons Served to Purnama Prima ------------------------------------------------- Tat Sang Holdings Berhad (TSHB) wishes to announce that on 24 September 2002, a Writ of Summons and Statement of claim dated 16 September 2002 was served by Kumpulan Simpanan Pekerja (KWSP) to the Company's subsidiaries, Purnama Prima Sdn Bhd (PPSB). The claim was filed on 23 August 2002 by KWSP and hearing date will be fixed on 25 October 2002. 1. Particulars of the claim under the Writ Under the Writ, KWSP claim for the outstanding EPF contribution in arrears of RM113,486.00 due to workers of PPSB from the period March 2001 - April 2002. In addition to the principal amount of EPF contribution, KWSP also claimed from PPSB the following: i. 5% dividend from 21 March 2001 to 30 April 2002 and subsequent dividend declared by KWSP until the date of full settlement; ii. 7% interest from 21 March 2001 to 12 March 2002; 6% interest from 13 March 2002 to 30 April 2002 and subsequent interest declared by KWSP until the date of full settlement; iii. Costs; and iv. Further and other relief as the court deems fit 2. Circumstances leading to the filing of the Writ On 26 July 2002, KWSP had served upon PPSB a letter of demanding full repayment of the outstanding EPF contribution in arrears of RM113,486.00 for the period mentioned above. PPSB was unable to make payment as demanded by the KWSP and would therefore default on its payment obligations. 3. Financial impact of the Writ of Summons and Statement of Claims dated 16 September 2002 on the TSHB group. The Group's financial and operations will not be severely affected by the said writ of summons. 4. Expected losses There shall be no additional expected losses incurred except for additional legal cost in defending the proceedings against PPSB. The Group has since appointed a solicitor to defend the case. TENAGA NASIONAL: Gets Approval on Proposed Bond Issues ------------------------------------------------------ On behalf of Tenaga Nasional Berhad, Commerce International Merchant Bankers Berhad is pleased to announce that the Foreign Investment Committee (FIC) has approved the Proposed Bonds Issues. The proposed issue includes: (I) a Five (5)-year unsecured Convertible Redeemable Income Securities (CRIS); and (II) a Five (5)-year Guaranteed Exchangeable Bonds (GEB) The approval of the FIC is not subject to any conditions. TIME ENGINEERING: SC Approves Restructuring Plan ------------------------------------------------ On behalf of Time Engineering Berhad, AmMerchant Bank Berhad (formerly known as Arab-Malaysian Merchant Bank Berhad) is pleased to announce that the Company has obtained the approval of the Securities Commission (SC) vide its letter dated 20 September 2002 (received on 23 September 2002) for the proposed restructuring for the US$250 million nominal value redeemable secured zero coupon bonds 1996/2001 (US$ Bonds) subject to the condition, inter-alia, that TIME will only be allowed to dispose of its shares in TIME dotCom Berhad which are under moratorium after obtaining the prior approval of the SC. The proposed restructuring is now pending the approval of Bank Negara Malaysia. ===================== P H I L I P P I N E S ===================== NATIONAL POWER: Government Sets Terms on Coal Imports ----------------------------------------------------- The importation of coal from Australia for the state-owned National Power Corporation (NPC) will highly depend on its government's decision on the lifting of non-trade barriers imposed against Philippine tropical fruits, in the form of sanitary and phyto-sanitary measures, Manila Bulletin reports. Energy secretary Vicente Perez, Jr., in his discussion with Australian Minister of Industry, Tourism and Resources Ian Macfarlane, said that there were discussions on investment and trade flows for the energy sectors. The importation of more coal from Australia, Perez said, will depend on the lifting of non-trade barriers against Philippine tropical fruits to include mango, pineapple and banana. At present, NPC partly procures its coal supply from Australia, particularly for the fuel needs of the 1,200 megawatt Sual power station in Pangasinan. Energy officials have been on the lookout for National Power Corporation's (NPC) privatization this year, with the targeted disposal of the National Transmission Corporation (Transco) by the fourth quarter. PICOP RESOURCES: SEC Chairman Faces Graft Charges Over Paper Co --------------------------------------------------------------- Securities and Exchange Commission (SEC) chairperson Lilia R. Bautista and two other officials are facing graft charges over their decision to extend the corporate life of paper manufacturer Picop Resources, Inc., BusinessWorld reports. A farmers' group based in Surigao del Sur (CARAGA in Eastern Mindanao), headed by the farmers multisectoral group president Florio S. Josafat, Jr, filed a complaint last September 20 at the Office of the Ombudsman against Ms. Bautista, commissioners Fe Eloisa Gloria and Joselia Poblador for administrative and criminal charges of grave misconduct. Mr. Josafat heads a nongovernment organization, which covers the city of Bislig in Surigao del Sur, where Picop's paper mill is located. The SEC denied in August Picop's application for an extension of its corporate life, which expired last March, for failing to pay 12 million Philippine pesos (US$229,143) in filing fee. When Picop paid the filing fee, the SEC commission en banc granted the company a 50-year extension in its corporate life. Since the extension is retroactive it covered the period from March to August when the company's corporation papers expired thus Picop was still considered as existing during that period. Mr. Josafat said the SEC officials violated provisions of the Corporation Code and Section 3 of the Anti-Graft law when it gave Picop a retroactive extension on its corporate life. Mr. Josafat also accused Picop's Mr. Bernardino and its board of directors for influencing SEC officials to give a retroactive extension. SEC officials were unavailable for comment. RFM CORPORATION: Elects Romeo Bernardo to Director Post ------------------------------------------------------- The Board of Directors of RFM Corporation in its regular meeting held on Wednesday approved the election of Mr. Romeo L. Bernardo as the second independent director of the Corporation. Mr Bernardo will serve as such as soon as he is duly qualified and until his successor is duly elected and qualified. Food and beverage firm RFM Corporation posted a net loss of 3.05 billion pesos last year against a net loss of 520 million pesos in 2000. RFM CORPORATION: Acquiring Swift Food's Meat Processing Ops ----------------------------------------------------------- RFM Corporation said in a statement to the Philippine Stock Exchange that its Board of Directors has approved the acquisition of the meat processing business of its subsidiary, Swift Foods, Inc. (SFI). The acquisition is subject to the approval of Swift's directors. RFM said the acquisition will include (i) all rights, interests and ownership of SFI over the assets of its meat processing business except its parcel of land together with the manufacturing plant standing thereon, located in Cabuyao, Laguna; plant equipment and trademarks; and (ii) various contracts entered into by SFI for its meat processing business. For and in consideration of the transfer, RFM will assume the trade liabilities of the meat processing of SFI. ================= S I N G A P O R E ================= FJ BENJAMIN: $3.1M Profit Raises Management's Hopes --------------------------------------------------- Retailer FJ Benjamin Holdings swung back into the black with a $3.1 million net profit for the year ended June, against a $40.9 million loss for the previous year during which it took a one- time hit of $18 million in restructuring costs and property provisions. Turnover, however, fell 19 percent to $119.2 million as FJ Benjamin shut some stores in Australia and Singapore and ended its optical distribution business in Hong Kong. "We've gone through a very trying period but things are better now," the group's CEO and executive chairman Frank Benjamin told Business Times. After a failed merger, huge losses and the aborted sale of its Orange Grove Road headquarters last year, the group is optimistic the current year will remain profitable. FJ Benjamin is in discussions with two parties over the sale of its headquarters, proceeds of which will be used to reduce debt to zero. The group has net borrowings of $55.6 million as at end June compared with $76.2 million at the end of the 2001 fiscal year. It currently has net borrowings of $29.8 million. FJ Benjamin distributes Guess, Valentino, Ungaro and Sheridan. It also holds the licensing agreements for Manchester United men's and children's apparel. =============== T H A I L A N D =============== BGES ENGINEERING: Completes Legal Name Change Process ----------------------------------------------------- BGES Engineering Systems Public Company Limited has now completed the legal process for changing its name Picnic Gas And Chemicals Public Company Limited. As a result, effective from September 27, 2002 onwards, the company securities in the trading system will be changed from BGES Engineering Systems Plc.Co., Ltd to Picnic Gas And Chemicals Plc.Co., Ltd., and from BGES symbol to PICNIC. TCR-AP said in August that Ultimate Key, the Rehabilitation Plan Administrator of BGES, 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 company's rehabilitation plan. EASTERN PRINTING: Transfers Assets to Creditors ----------------------------------------------- EPCO Management Company Limited, plan administrator of Eastern Printing Public Company Limited appointed by the Central Bankruptcy Court, reported to the Stock Exchange of Thailand the progress of business rehabilitation plan for the first and second period as follows: 1. Financial Institutions with collaterals. 1.1 On March 21-22,2002,the Company transferred all fixed collaterals ("Assets") at the lower value between debt amount or 70 percent of appraised value to the Creditors. The Company will lease the "Assets" from the Creditors at annual leasing rate of 7.5% per annum (of the transfer values). The Company has the right to purchase the "Assets" by repaying the balance values within four years. 1.2 On March 13,2002, the Company transferred shares of Express Printing Co.,Ltd., Northern Printing and Packaging Co., Ltd., Northeastern Printing and Packaging Co.,Ltd. totaling 13,499,993 shares at Baht 0.10 each to Creditors as repayment of Loan Principle. 1.3 On May 4, 2002 the Company redeemed 4,999,993 shares of Pacific I.T. Company Limited from the Creditor at 0.05 each. 1.4 On May 14, 2002, the Company has increased Capital by 243,191,788 shares (at par value of Baht 4) for debt to equity conversion of Creditors. 1.5 On May 17, 2002, the Company had issued warrants 134,365,863 units at Baht 4 per unit for conversion of all outstanding interests. 1.6 On June 14, 2002, the Company redeemed 350,000 shares of Mark Sensing Western (U.S.A.) Ltd. From the Creditor at 0.05 each. 2. Trade Creditors 2.1 Debt occurred after year 2000, was fully paid under normal purchase terms. 2.2 Debt occurred before year 2001. 2.2.1 On March 29, 2002, had paid 1st payment. 2.2.2 On June 28, 2002, had paid 2nd payment. 3. Tax Creditor, had paid monthly starting March 2002 for 2 years. Address further inquiries to Mr. Weera Louwitawat or Mrs.Arporn Prachayathipsakul, EPCO Management Co., Ltd. Plan Administrator. PRANDA JEWELRY: Completes Debt Refinancing With 12 Banks -------------------------------------------------------- Pranda Jewelry Public Co said in a disclosure to the Stock Exchange of Thailand that it has completed refinance debt with 12 financial institutions on 24 September 2002 by the Krung Thai Bank Republic Company Limited for 1,150,007,541.84 Baht to end the Debt Restructuring Agreement, dated 18 September 2000. Pranda Vice Executive Chairman Sunanta Tiasuwan said the company benefits from this debt early retirement by gaining from debt reduction of Baht 61,637,623.06, which will be taken an effect on quarterly 3/2002 financial statement. SIAM STEEL: Submitting Capital Increase Report ---------------------------------------------- As per the Petition to rehabilitate the business of Siam Steel International Public Company Limited for which the rehabilitation plan has been approved by the Central Bankruptcy Court on May 11, 2000 and its amendments on December 13, 2000. According to the rehabilitation plan, certain debts have to be converted into common equity in an approximate amount of 1,270,671,118.75 Baht. On February 28, 2001, The Central Bankruptcy Court has issued an order approving the Company to increase the registered capital for another 1,270,671,110 Baht for the conversion of debt into common equity. The registered capital of the Company shall be increased from 365,000,000 Baht to 1,635,671,110 Baht, by issuing 127,067,111 new ordinary shares with a par value of Baht 10 each for allotment to Financial Institution Creditors holding Tier 3 Debt in form of the conversion of Tier 3 Debt into common equity. As limited by the Articles of Association of the Company, the foreign Shareholders may hold shares for not more than 49% of the paid up capital of the Company, on 14 June 2001 the Company could make the First Distribution of the shares to the Financial Institution Creditors of Tier 3 Debt only at 722,024,910 Baht by distribution of 72,202,491 shares of newly issued shares to the Financial Institution Creditors of Tier 3 Debt. As a result of such First Distribution, the Company has registered the change on paid up capital of the Company to the Commercial Registration Department, Ministry of Commerce on 3 July 2001 to be at 1,087,024,910 Baht. At present, the number of the foreign shareholders has been changed, allowing the Company to be able to additionally make the conversion of Tier 3 Debt to equity at 548,644,900 Baht by distribution of 54,864,490 newly issued shares to the Financial Institution Creditors of Tier 3 Debt under the Plan. Deloitte Touche Tohmatsu Planners Co., Ltd. and Siam Steel Planner Co., Ltd., the plan administrators of Siam Steel, said the Company would like to submit Capital Increase Report Form (F 53-4) in Thai and English Versions for being evidence for the capital increase as approved by the order of the Central Bankruptcy Court. 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. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***