/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/021009.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 Wednesday, October 09, 2002, Vol. 5, No. 200 Headlines A U S T R A L I A COLES MYER: Boardroom Conflict May End in Court COLES MYER: Southcorp Boss Seeking Chairman Spot HIH INSURANCE: Adler Reappears at Commission Inquiry JAMES HARDIE: Dutch Regulator Approves Capital Reorganization PASMINCO LIMITED: Emerges From Administration PASMINCO LIMITED: May Relist on ASX in 2003 WATER WHEEL: ASIC Settles Out of Court With Chairman Harrison C H I N A & H O N G K O N G AES CHINA: S&P Cuts Ratings to B+ GOLD CHANCE: Winding Up Petition Slated for November 6 INLOOKTECH.COM LIMITED: Faces Winding Up Petition SHANGHAI DAJIANG: CP Pokphand Disposes 148.515 Million Shares SINORICH INTERNATIONAL: Winding Up Petition Pending SPRINGHAVEN LIMITED: Hearing of Winding Up Petition Set I N D O N E S I A INTRACO PENTA: Hopes to Restructure US$31M Debt * Life Insurance Companies Seek Recapitalization J A P A N FUJITSU LTD: Expands PC Partnership in Europe With Siemens AG ISUZU MOTORS: Considering Ways to Rationalize US Joint Venture HITACHI LTD: Dissolving Joint Venture With Affiliate MAZDA MOTOR: Renews Web Version of Electronic Parts Catalog MITSUBISHI MOTORS: Consolidates Galant, Car Plaza Dealerships MITSUBISHI MOTORS: Reorganizes Domestic Sales Network MITSUBISHI MOTORS: Shutting Down US Plant on October 9 NICHIMEN CORPORATION: Posts Notice of Business Transfer NICHIMEN CORPORATION: S&P Affirms Ratings; Outlook Negative NIPPON TELEGRAPH: Posts Notice of Share Repurchase K O R E A DAEWOO MOTOR: Enters Joint Venture Agreement With Hyundai Motor DAEWOO MOTOR: GM Aims to Launch Auto JV on October 17 HYUNDAI MERCHANT: Faces Ratings Downgrade M A L A Y S I A ANTAH HOLDING: Abd Rahim bin Abd Ghani Steps Down as Director DATAPREP HOLDINGS: Settles RM343,522 Claim With Sogelease ESPRIT GROUP: KLSE Dumps Appeal for Extension of Time Request JUTAYA HOLDING: Announces New Board Appointment LAND & GENERAL: Lembah Beringin Winding-up Petition Ended NCK CORPORATION: NCK Wire Unit Completes Plant Disposal PANCARAN IKRAB: Terminates MoU With Poly Electronic RENONG BERHAD: UEM to Subscribe Ordinary Shares ROAD BUILDER: Appointing Liquidator to Wind-up Condoheights ROCK CHEMICAL: Loss-making Unit Disposes Plant SATERAS RESOURCES: Application for Time Extension Rejected SOUTHERN PLASTIC: Appoints New Board Director TAI WAH: Sets 32nd AGM on October 31 TECHNO ASIA: Westmont Offshore Unit Facing Suit in Bangladesh TECHNOLOGY RESOURCES: Plans To Resume Trading as Celcom UNITED CHEMICAL: Posts Update on Facilities in Default P H I L I P P I N E S PHILIPPINE LONG: Finalizes Takeover Offer With Foreign Partner PHILIPPINE LONG: First Pacific Gathers Votes to Oust Pangilinan PHILIPPINE LONG: Several Groups Interested in First Pac Stake STENIEL MANUFACTURING: Posts Notice of Default in Payment UNITRUST DEVELOPMENT: PBCom to Renew Interest in Bid URBAN BANK: Exportbank Mulls Subsidiaries' Disposal S I N G A P O R E CHARTERED SEMICONDUCTOR: Shares Down 50% on October 7 FHTK HOLDINGS: Posts Notice of Shareholder's Interest NEPTUNE ORIENT: Considers Options for American Eagle T H A I L A N D THAI HEAT: Issues Stocks, Convertible Debentures WONGPAITOON GROUP: Offers Warrants to Creditors - - - - - - - - ================= A U S T R A L I A ================= COLES MYER: Boardroom Conflict May End in Court ----------------------------------------------- The boardroom infighting at ailing retailer Coles Myer Ltd. could degenerate into a court battle among directors. According to Australian newspapers, director Solomon Lew has warned eight fellow directors that he believes their campaign against his reelection is improper and that they would be held responsible for any damages. Lew and tax lawyer Mark Leibler are both up for reelection in November. The other eight Coles directors are believed to be planning to direct all open proxy votes against Lew at the shareholder meeting. TCR-AP reported Monday that Premier Investments Ltd., half-owned by Lew, had increased its voting stake in Coles Myer to 5.87 percent, or an additional 12.5 million shares. The recent acquisition was seen as an attempt by Lew to secure enough votes to back his re-election on Coles Myer's annual general in November. COLES MYER: Southcorp Boss Seeking Chairman Spot ------------------------------------------------ Australian winemaker Southcorp Limited said Tuesday that Rick Allert has indicated to the Company that he intends to seek election as Chairman of Coles Myer Limited at its Board Meeting on Thursday October 10, 2002. Mr Allert has therefore advised the Company, with regret, it would then be his intention to resign as Chairman, and as a Director, of Southcorp Limited at the conclusion of the Company's Annual General Meeting to be held on October 31, 2002. Brian Finn will be appointed to succeed Mr Allert as Chairman upon his resignation. Mr Finn has been a Southcorp Director since 1994 and served as Deputy Chairman from July 1996 until November 2001. He is a member of the Board Remuneration and Nomination Committee. Mr Finn is Deputy Chairman of PowerTel Limited and a Director of AXA Asia Pacific Holdings Limited, where he is also Chairman of the Board Audit and Compliance Committee. Mr Finn spent 35 years with the IBM Corporation. He was Chief Executive Officer of IBM Australia for 13 years and prior to that he held senior executive positions in the UK, USA, India and Hong Kong. He was appointed an Officer in the Order of Australia in 1993. Last month, Coles Myer Chairman Stan Wallis announced he will retire at the retailer's AGM on November 20. The announcement triggered market speculation that Allert would take over as chairman for six months. For further information, please contact Dr Robert Porter, GM Investor Relations & Corporate Affairs for Southcorp Limited, at mobile 0407 391 829. HIH INSURANCE: Adler Reappears at Commission Inquiry ---------------------------------------------------- Rodney Adler made his second appearance at the HIH Royal Commission yesterday to give details of his role as a director of HIH Insurance, ABC News reported. Adler was scheduled to testify last week, however, illness prevented him from doing so. In June, he was questioned extensively about his role as chief executive of FAI up until its takeover by HIH late in 1998. The commission heard the $300 million purchase was likely to have contributed to the collapse of the insurance giant. JAMES HARDIE: Dutch Regulator Approves Capital Reorganization ------------------------------------------------------------- James Hardie Industries NV has received final Dutch regulatory approval necessary to effect the capital return of the Euro equivalent of US 20 cents per share rounded upwards to the nearest whole Euro cent. Shareholders at the Annual General Meeting on 19 July 2002 approved the capital return. A copy of the Declaration of Non-Opposition to Capital Return dated 7 October 2002 from the Court of Amsterdam is enclosed, together with an English translation. All registerable transfers to be recorded prior to payment of the capital return amount on 1 November 2002 must be received by the Company's registrar, being Computershare Investor Services Pty Ltd at Level 3, 60 Carrington Street, Sydney NSW 2000, Australia: (a) for paper-based transfers - by 5pm AEST on the record date of 15 October 2002; and (b) for market transfers - by the time specified in the Australian Stock Exchange Listing Rules and SCH Business Rules. The capital return record and payment dates are the same as those applicable to the dividend payment of US 5 cents per share previously announced to the ASX. The AUD equivalent amount of the capital return and dividend to be paid to CUFS holders will be announced to the ASX on 16 October 2002, together with the new option exercise prices calculated in accordance with Listing Rule 7.22.3. UNOFFICIAL ENGLISH TRANSLATION DEED OF NON-OPPOSITION AS REFERRED TO IN ARTICLE 100 PARAGRAPH 3 BOOK 2 OF THE CIVIL CODE DEED NUMBER: 954/2002 The registrar of the Court of the District in Amsterdam declares at the request of: Mr M Voster in Amsterdam, That in the registry of the Court of Amsterdam within the period as mentioned in article 100 paragraph 3 Book 2 of the Civil Code no opposition has been made against the resolution as referred to in article 99 paragraph 1 Book 2 of the Civil Code of: James Hardie Industries NV registered in Amsterdam, which resolution has been deposited in accordance with the provision of article 100 paragraph 1 Book 2 of the Civil Code, which deposit has been published as appears from a copy of the NRC Handelsblad of 20 July 2002 which copy has been made available to the registrar. PASMINCO LIMITED: Emerges From Administration --------------------------------------------- Pasminco Ltd. administrators said that the zinc producer has emerged from administration with the signing of the deeds of company arrangement. The signing of the deeds gave administrators Peter McCluskey and John Spark of accountancy and insolvency firm Ferrier Hodgson the right to restructure the company. Under the proposal, agreed at a creditors' meeting on August 30, Pasminco assets will be transferred to a new holding company to be known as Pasminco Resources Ltd. The transfer of assets remains conditional on Pasminco Resources listing on the ASX. Pasminco appointed administrators in September 2001 after debt tripled amid low zinc prices and foreign exchange losses. PASMINCO LIMITED: May Relist on ASX in 2003 ------------------------------------------- Pasminco Limited administrators are expecting to float the reinvented Pasminco Resources and relist it on the Australian Stock Exchange early next year, depending on zinc prices. Peter McCluskey and John Spark of Ferrier Hodgson said they were prepared to wait for market conditions to improve before they sold off shares and relisted the new Pasminco Resources on the Australian Stock Exchange. The administrators added they expected the shares would be sold and the company listed in early 2003. WATER WHEEL: ASIC Settles Out of Court With Chairman Harrison ------------------------------------------------------------- The Australian Securities and Investments Commission (ASIC) has reached an out of court settlement with Water Wheel Holdings Ltd Chairman, Mr William Harrison. The agreement to settle was advised to the Supreme Court of Victoria. Under the settlement with ASIC, Mr Harrison has admitted all of the allegations in ASIC's Statement of Claim, and consented to the making of declarations that he has breached the insolvent trading provisions of the Corporations Act. As it is for the Court to determine appropriate orders, Mr Harrison and ASIC will at the end of the trial make joint submissions to Trial Judge Justice Mandie about the orders they consider appropriate in Mr Harrison's case, including: * the period for which he should be prohibited from managing corporations; * the sum of money which he should be ordered to pay by way of compensation to the companies for the benefit of their unsecured creditors; and * the level of any pecuniary penalty considered appropriate, taking into consideration any compensation sum ordered by the Court to be paid. "In agreeing to settle our action against Mr Harrison and to make appropriate submissions to the Court on compensation and penalty at the end of the trial, we have taken account of his admission of liability and his demonstration of genuine contrition," ASIC chairman David Knott said. ASIC's proceedings against Bernard Plymin and John Elliott, Directors of Water Wheel Holdings Ltd and its subsidiary Water Wheel Mills Pty Ltd are continuing. The flour milling company collapsed in early 2000. ================================ C H I N A & H O N G K O N G ================================ AES CHINA: S&P Cuts Ratings to B+ --------------------------------- Standard & Poor's Ratings Services said Monday it had lowered its ratings on AES China Generating Co. Ltd. (AES Chigen) and its US$180 million senior unsecured notes due 2006 to B+ from BB-, and placed the ratings on CreditWatch with negative implications. The rating actions follow the recent lowering of the corporate credit rating on parent AES Corp. to B+ from BB-. Although AES Chigen's financial performance has continued to improve in the course of 2002, after a strong recovery in fiscal 2001, S&P said the rating on the company is constrained by the rating on AES Corp., of which it is a wholly owned subsidiary. The lowering of the rating on AES Corp. reflects continued deterioration in its Latin American business, and anticipation that cost cutting exercises and improved performance at its other businesses will not compensate for the losses projected by the company earlier in 2002. AES Chigen owns 25 percent to 70 percent equity interests in eight electric power generation facilities in mainland China, operating some of the projects itself. The projects range in size from 15-megawatts (MW) to 2,100MW and are located in Henan, Anhui, Sichuan, Hunan, Chongqing, Guangdong, and Shanxi provinces. GOLD CHANCE: Winding Up Petition Slated for November 6 ------------------------------------------------------ Gold Chance International Limited is facing a winding up petition, which is slated to be heard before the High Court of Hong Kong on November 6, 2002 at 11:00 am. Fung Cheung Realty Limited, Virginia Investments Ltd., The World Realty Ltd. and Ying Ho Company Ltd of Top Floor, Chinachem Golden Plaza, 77 Mody Road, Tsimshatsui East, Kowloon, Hong Kong filed the petition last August 20, 2002. INLOOKTECH.COM LIMITED: Faces Winding Up Petition ------------------------------------------------- Yung Kin Fung of Room E, 9/F., Block 10, Charming Garden, Mongkok, Kowloon, Hong Kong, is seeking for the winding up of Inlooktech.com Limited. The petition was filed on July 9, 2002 at the High Court of Hong Kong, and will be heard before the said court today, October 9, at 9:30 a.m. SHANGHAI DAJIANG: CP Pokphand Disposes 148.515 Million Shares ------------------------------------------------------------- As part of the group's debt restructuring program, Hong Kong's CP Pokphand Co Ltd disposed of 148.515 million B shares of Shanghai Dajiang (Group) Stock Co Ltd to independent third parties, cutting its stake in Dajiang to 15.9 percent from 37.9 percent, AFX-Asia News reported. The disposals have been made on the Shanghai Stock Exchange at an average price of US$0.612 per Daijiang B share, resulting in gross proceeds of US$90.87 million for the group. On December 19, CP Pokphand has obtained shareholder approval to dispose of all or part of its remaining B shares of Shanghai Dajiang (Group) Stock Co Ltd from time to time until end- December 2002. The company said it proposes to continue to sell on the market the remainder of its Dajiang B shares to third parties. (M&A REPORTER-ASIA PACIFIC, Vol. No.1, Issue No. 199, October 08, 2002) SINORICH INTERNATIONAL: Winding Up Petition Pending --------------------------------------------------- The petition to wind up Sinorich International Trading Company Limited is scheduled before the High Court of Hong Kong on November 6, 2002 at 10:30 am. The petition was filed with the said court last August 16, 2002 by Bank of China (Hong Kong) Limited, whose registered office is situated at 14th Floor, Bank of China Tower, 1 Garden Road, Central, Hong Kong. SPRINGHAVEN LIMITED: Hearing of Winding Up Petition Set ------------------------------------------------------- The petition to wind up Springhaven Limited is set for hearing before the High Court of Hong Kong on November 13, 2002, at 10:00 am. Bank of Communications of No. 20 Pedder Street, Central, Hong Kong filed the petition with the said court last September 2, 2002. ================= I N D O N E S I A ================= INTRACO PENTA: Hopes to Restructure US$31M Debt ----------------------------------------------- Heavy equipment distributor PT Intraco Penta hopes to restructure a debt of US$31 million to a bank syndicate before then end of this year, Asia Pulse reports. Intraco marketing director Jimmy Halim said four banks, including Bank Central Asia and Bank Lippo, have already agreed to a restructuring proposal. Negotiations are still progressing with the other seven, mostly foreign, banks, he added. Halim is optimistic the restructuring process will be completed before the end of this year. * Life Insurance Companies Seek Recapitalization ---------------------------------------------------- Indonesian life insurance companies are facing liquidity problems and need financial support from the government, the Indonesian association of life insurance companies (AAJI) said. According to AAJI chairman Angger P. Juwono, the government had propped up a number of ailing banks with recapitalization bonds valued more than Rp400 trillion (US$44.44 billion). He said the operations of a number of life insurance companies, including Namura Life and Nabasa Life have been restricted by liquidity problems. The finance ministry has required an insurance company to have an Risk Based Capital (RBC), a ratio between equity and insurance value, of at least 75 percent this year. ========= J A P A N ========= FUJITSU LTD: Expands PC Partnership in Europe With Siemens AG ------------------------------------------------------------ Fujitsu Limited and Siemens AG will expand their personal- computer alliance in Europe to lower costs, the Nihon Keizai Newspaper and Bloomberg reported Tuesday. Both firms will design, make and sell personal computers and low-priced servers worldwide. They will also procure parts together. Personal computer (PC) makers are combining their resources to cope with slumping demand after PC sales declined for the first time in 2001 since 1985. By shifting production and sales to the existing Netherlands- based venture, Fujitsu Siemens Computers Holding BV, the companies will cut costs by 30 percent. Fujitsu is Japan's largest business computer maker, and Siemens is Germany's largest engineering Company. TCRAP reported that 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. Fujitsu reported a first quarter consolidated operating loss of 29.0 billion yen (US$242 million), an improvement of 13.3 billion yen over the operating loss recorded during the corresponding quarter of the previous fiscal year. Due in part to costs associated with continuing restructuring efforts, the Company posted a net loss for the period of 56.4 billion yen (US$470 million), compared with a net loss of 55.4 billion during the corresponding period last year. ISUZU MOTORS: Considering Ways to Rationalize US Joint Venture -------------------------------------------------------------- Isuzu Motors Limited and Fuji Heavy Industries Limited are now considering ways to rationalize their U.S. joint venture Subaru- Isuzu Automotive Inc. and no decision has been made, AFX Asia reported Monday. Earlier, the Nihon Keizai Shimbun reported that Isuzu would end the production of sports utility vehicles in the U.S. and dissolves the venture with Fuji Heavy by the end of 2002. HITACHI LTD: Dissolving Joint Venture With Affiliate ---------------------------------------------------- GE Consumer Products (GECP), Hitachi Home & Life Solutions, Inc. (Hitachi H&L) and Hitachi Lighting, Ltd. (HLL) recently announced the dissolution of their joint venture business, known as Hitachi GE Lighting, Ltd. (HGL). The move is being made in response to changes in the market environment since establishing the relationship, allowing each Company to better focus on their core strategies and strengths. As a result of this move, each Company will serve the Japanese market through their independent sales channels. The companies also anticipate continuing some distribution of each other's products. GE's Lighting unit and Hitachi H&L established their Sales & Distribution Joint Venture in 1993, primarily focused on growth of the Commercial/Industrial segment. In 1997, the JV was expanded to include additional C&I channels managed by HLL, and Consumer Products channels handled by Hitachi H&L. The dissolution is effective October 1, 2002. Going forward, GE Lighting will utilize existing lighting sales channels and develop additional channels as required. Hitachi H&L will absorb sales/service operations under leadership by HLL in Hitachi H&L Group and also review their organization structure by next spring. As a consequence, after dissolution of the Joint Venture, each of the companies will sell its own products under its own brand name of "GE" or "Hitachi" respectively. Although GE and Hitachi have decided to end their Lighting JV, both companies will continue to operate other global partnerships, and will seek cooperation in areas of mutual interest. Per Craig Witsoe, President of GE Consumer Products Asia Pacific Operations, "GE certainly appreciates all of the support offered by our partner, Hitachi, over the years. The decision to dissolve HGL was made after careful consideration of the market direction, customer needs, and strategies of each parent Company. As GE's Lighting business moves ahead, the Japanese market is a key strategic part of our business plan. We feel that the new structure will enable us to more effectively utilize our strengths to better serve our customers in this very important market." Kunio Sebata, President & CEO of Hitachi H&L, said, "We have nurtured this JV for about ten years. After the dissolution for focusing on our core strategies and strengths, we will keep a cooperative relationship with GE well into the future. For Hitachi H&L, GE Lighting remains a very important partner. And we, Hitachi, will continue our utmost effort to develop a fine- tuned response to customer needs, and solidifying a firm position in this business." Hitachi GE Lighting: Name : Hitachi GE Lighting, Ltd. Headquarters : Sudacho Sashida Bldg, 2-5-2 Kanda Suda-cho, Chiyoda-ku, Tokyo President : Hiroyuki Fukuyama Date of foundation : April 1, 1993 October 1, 1997, added sales channels from Hitachi & HLL Capital : 1 billion yen (GE 50 percent, Hitachi H&L 45.5 percent, HLL4.5 percent) Business : Lamp, fixture, systems and service No of employees : 116 employees (as of September, 2002) GE Consumer Products Name : GE Consumer Products Headquarters : Louisville, Kentucky, U.S.A President & CEO : James P. Campbell Sales : $8.0 billion No of employees : 45,000 Hitachi Home & Life Solutions, Inc. Name : Hitachi Home & Life Solutions, Inc. Headquarters : Hitachi Atago Bldg, 15-12 Nishi-Shinbashi, Minato-ku, Tokyo President : Kunio Sebata, President & CEO Sales : 508.8 billion Yen(March end, 2002) No of employees : 16,500 (March end, 2002) Hitachi Lighting, Ltd Name : Hitachi Lighting, Ltd. Headquarters : 69 Wakashiba-cho, Ryugasaki-shi, Ibaraki-ken President : Masayoshi Kodama, President Capital : 0.5 billion yen (Hitachi H&L 100 percent) Sales : 10 billion Yen (March end, 2002) No of employees : 230 (March end, 2002) The press release is located at http://bankrupt.com/misc/tcrap_hitachi1008.pdf MAZDA MOTOR: Renews Web Version of Electronic Parts Catalog ----------------------------------------------------------- Mazda Motor Corporation will renew its Electronic Parts Catalog (EPC), which is established for Mazda's dealers and parts/maintenance shops to search for and order repair parts. Beginning this month, the new catalogue EPC2, the first application utilizing the Company's new broadband network, will progressively be introduced for these business partners nationwide. While the previous EPC was only available on CD-ROM, the main feature of the EPC2 is the addition of a web version for use in an Internet environment. The web version offers access to the latest information on parts inventories, vehicles and the contents of parts catalogs, etc. Parts suppliers, Mazda's dealers and parts/maintenance shops can expect significant improvements in work efficiency, resulting in increased customer satisfaction. New features of the EPC2: (1) Information is updated more frequently, compared to once a month for the CD-ROM version. Vehicles manufactured are registered on the following day, while the parts catalog is updated three times a week. (2) While the original CD-ROM version allowed users to conduct a search using part production numbers assigned at the time of production, it required a separate system for inventory inquiries and orders. However, linking the system with that of parts dealers, the web version improves on this by enabling users to instantly search for and order new parts that can be fitted to a certain vehicle, even if the number of a suitable part in stock differs from the original production number. Through this system, dealers can provide customers with an accurate delivery date and cost estimate immediately. (3) Having once obtained an ID number and a password for the web, the parts dealers and parts/maintenance shops simply access the website to use the catalog. There is no need to replace CD- ROMs that were available for each vehicle, which is expected to boost work efficiency, as well as providing customers with the best services through latest information. Mazda is the first automaker to begin establishing a broadband network and the EPC2 is the first in a series of new applications to be introduced utilizing the network. As the broadband network will dramatically increase the volume and speed of information transmitted, further improvements in work efficiency and customer satisfaction are expected. Mazda Motor Corporation - www.mazda.com - was established in 1920 and is one of Japan's leading automobile manufacturers. With its headquarters in Hiroshima, Mazda has two plants in Japan and manufacturing and assembly operations in sixteen other countries. Mazda cars and trucks are sold in more than one hundred and thirty countries. Ford Motor and Mazda agreed to collaborate in 1979, Ford Motor Company started investing in Mazda and increased its shareholding to 33.39 percent as of March 31, 1999. TCR-AP said the Company's shareholders capital ratio is low, at 9.96 percent, as a result of poor performances in the past and the fragile management condition of domestic dealerships and other factors. There is still a heavy interest bearing debt burden in the Company. Furthermore, the overseas sales ratio is at a high level of 61.3 percent, mainly for the North American and European markets. For inquiries, contact Mazda Motor Corporation's K. Yoshitake at telephone 03-3508-5022 or via e-mail at yoshitake.k@tky.mazda.co.jp. MITSUBISHI MOTORS: Consolidates Galant, Car Plaza Dealerships ------------------------------------------------------------- In its effort to streamline operations, Mitsubishi Motors Corp (MMC) will consolidate its Galant and Car Plaza dealerships into a single network called Mitsubishi Motors by April 2004, Japan Today reported. The reorganization, due to start in January 2003, is aimed at reinvigorating domestic sales hit hard by a recall cover-up scandal that first came to light in 2000, Company officials said. (M&A REPORTER-ASIA PACIFIC, Vol. No.1, Issue No. 199, October 08, 2002) MITSUBISHI MOTORS: Reorganizes Domestic Sales Network ----------------------------------------------------- Mitsubishi Motors Corporation has announced a number of initiatives to renovate its domestic dealership network. The reorganization process, due to start in January 2003, centers on the consolidation of MMC's Galant and Car Plaza dealerships into a single network, and is a key pillar of the Company's corporate strategy to reposition and strengthen its domestic operations. "We are devoted to delivering value to our customers," said MMC President and Chief Executive Officer Rolf Eckrodt. "The new unified, high-standard dealership network is like adding the fourth wheel to a car. We will match our customers' expectations not only with exciting cars such as the Colt but also with a level of services not seen before," he added. In the lead-up to the launch of the subcompact Colt in November and another new product release next spring, MMC has been working to rebuild its domestic passenger car sales to ensure growth and profitability. Eiji Iwakuni, Executive Corporate General Manager of domestic car sales and marketing, highlighted the main purpose behind the transformation: "We want our outlets to be a place where customers can enjoy the selection process and leave satisfied with the whole buying experience. We will also make it as easy as possible for customers to gain access to thorough, reliable after-sales service anywhere, anytime." This philosophy is best summed up by MMC's key sales concept: "Good Experience @ Mitsubishi Motors." MMC - http://www.mitsubishi-motors.co.jp- is aiming to take the top position in the industry's sales satisfaction index through a set of dealer standards that encourage innovative sales practices and boost customer satisfaction. Current sales contracts will end in March 2004 and contracts for the new Mitsubishi Motors Network will be signed in April of the same year with sales companies that fulfill the requirements for all standards. In addition, MMC will carry out in-depth customer research aimed at boosting dealer earnings by keeping MMC's product portfolio in tune with the changing needs of customers. The new sales network will translate into added satisfaction for customers in purchasing and owning Mitsubishi vehicles, and ensure secure revenue and profitability for dealers. At the same time, MMC can expect to see stronger brand positioning through higher customer loyalty, which will help put the Company's domestic passenger car sales on the path to sustainable growth. MITSUBISHI MOTORS: Shutting Down US Plant on October 9 ------------------------------------------------------ Mitsubishi Motors Corporation will halt production at its only U.S. plant on October 9 because the shutdown of West Coast ports is reducing parts supplies, Bloomberg reported Tuesday, citing Illinois plant spokesman Dan Irvin. The Company employs 3,200 workers at the Normal, Illinois plant, where it makes Galant sedans, Spyder convertibles and Eclipse coupes, as well as Dodge Stratus and Chrysler Sebring coupes for DaimlerChrysler. Mitsubishi Motors is 37 percent owned by DaimlerChrysler AG. NICHIMEN CORPORATION: Posts Notice of Business Transfer ------------------------------------------------------- Nichimen Corporation has resolved in the meeting of its Board of Directors on September 27, 2002 to transfer all shares of its subsidiary, which engages in chemical businesses, to Global Chemical Holdings, Inc. (GCH), a joint holding Company of Nichimen and Nissho Iwai Corporation in the chemical business field. 1. Reason for Business Transfer As already announced on August 26, 2002, Nichimen reached a basic agreement with Nissho Iwai to fully integrate chemical businesses of those two companies in order to pursue more synergies and raise corporate value in the chemical business field. In line with this basic agreement, Nichimen decided to transfer all shares of its subsidiary, which engages in chemical businesses, to GCH. 2. Scheme for Business Transfer (1) Method of business transfer Nichimen already transferred its chemical businesses to Nichimen Kagakuhin Co., Ltd. (Nichimen Kagakuhin), a 100 percent subsidiary of Nichimen, on September 1, 2002. Nichimen transfers all issued shares of Nichimen Kagakuhin to GCH on September 27, 2002. 3. About the subsidiary to be transferred to GCH Company name : Nichimen Kagakuhin Co., Ltd. Representative : Keisuke Ishihara, President Location of headquarters : 1-23, Shiba 4-Chome, Minato-ku, Tokyo Date of incorporation : April 3, 1975 Capital Amount : Shareholders' equity 2.5 billion Yen Ownership : Nichimen Corporation 100 percent 4. Nichimen's shareholding before and after transfer Issuer of shares : Nichimen Kagakuhin Co., Ltd. Shares owned by Nichimen before transfer : 187,975 shares (possession ratio 100 percent) Shares to be transferred : 187,975 shares (transfer price 9.7 billion Yen) Shares owned by Nichimen after transfer : 0 shares (possession ratio 0 percent) 5. Transferee Company name : Global Chemical Holdings, Inc. Representative : Atsumi Shirai, Chairman Kosaku Nakatani, President Location of headquarters : 1-23, Shiba 4-Chome, Minato-ku, Tokyo Ownership : Nichimen Corporation 50 percent, Nissho Iwai Corporation 50 percent Main business : Joint holding Company in chemical business field 6. Schedule September 27, 2002 Corporate resolution for conclusion of share transfer agreement Transfer of all shares of Nichimen Kagakuhin to GCH 7. Outlook of performance The capital gain on this share transfer is approximately 7.2 billion Yen on non-consolidated basis and approximately 3.6 billion Yen on consolidated basis. However, depending on stock prices at the end of September 2002, there is a possibility that some devaluation loss would be incurred on some listed stocks held by Nichimen. Therefore, at present, there have been no changes in the outlook announced on May 16, 2002. For more information, go to http://www.nichimen.co.jp/eng/news/2002/e0003.html NICHIMEN CORPORATION: S&P Affirms Ratings; Outlook Negative ----------------------------------------------------------- Standard and Poor's Corporation has affirmed its 'BB-' long- term, and 'B' short-term ratings on Nichimen Corporation, reflecting the fact that Company's capital structure has remained moderate, while its profitability has improved slightly. The outlook on the long-term rating remains negative, it said. "The rating on Nichimen takes into account the possibility of some further deterioration in the Company's asset quality and capitalization as a result of the impairment of long-term loans and investments, and further restructuring costs at unprofitable subsidiaries," it said. Meanwhile, AFX News said Nichimen Corp is planning to liquidate its struggling synthetic fiber textile making subsidiary before the end of October due to worsening profitability at the unit as a result of sluggish demand for the unit's textile products. The Company will also liquidate its US subsidiary Electronics Materials Supply Inc. on October 1, due to poor sales of its mainstay products like copper foils and glass fibers as a result of the global-wide IT recession. TCR-AP reported earlier that Nichimen posted an extraordinary loss of Y121 billion in fiscal 2000 (ended March 2001). This loss incorporated a write-down of investment securities, and losses from the disposal of investments in and advances to subsidiaries and affiliates. NIPPON TELEGRAPH: Posts Notice of Share Repurchase -------------------------------------------------- Nippon Telegraph and Telephone Corporation (NTT) has decided the specific method of repurchase of its own shares pursuant to Article 210 of the Japanese Commercial Code as follows: 1. Method of repurchase NTT will place purchase orders for its own shares through brokerages at the closing price trading on the Tokyo Stock Exchange Trading Network System (i.e., ToSTNeT-2) in the 8:45 am session on October 8, 2002 with the closing price of its common stock traded on the first section of the Tokyo Stock Exchange market on October 7, 2002 (431,000 yen) (it will not change the method of trading or the proposed trading time). The purchase orders will be placed only in this trading time. 2. Details of repurchase (1) Class of shares to be repurchased: Common stock (2) Number of shares to be repurchased: 200,000 shares (Note 1) The number of shares to be repurchased will not change. Depending on the market conditions, however, there may not be any order or only partial orders to be met by NTT. (Note 2) The purchase will be conducted by the use of the equivalent number of sell orders to the planned purchase orders. 3. Announcement of repurchase NTT will announce results of the purchase of its own shares after the closing of trading on October 8, 2002. (Reference) The resolutions decided by the shareholders at the 17th ordinary general meeting on June 27, 2002: (1) Class of shares: Common stock (2) Numbers of shares to be repurchased: 200,000 shares (maximum) (3) Total value of shares to be repurchased: 100 billion yen (maximum) Nippon Telegraph and Telephone Corporation - www.ntt.com - was established in 1952 as a state-owned telecommunications public corporation and in 1986 converted to a private Company to be the largest telecommunications Company in Japan and the second largest in the world. NTT and its subsidiaries provide a wide range of telecommunications services. For more information, contact the Investor Relations Group Department IV of Nippon Telegraph and Telephone Corporation at telephone 03-5205-5581, or via e-mail at investors@hco.ntt.co.jp. ========= K O R E A ========= DAEWOO MOTOR: Enters Joint Venture Agreement With Hyundai Motor --------------------------------------------------------------- Daewoo Motor Co. and Hyundai Motor Co. are planning a joint bid to build and run a Tel Aviv light railway system, Israel's Maariv daily and Reuters reported Monday. The report said three international groups showed interest in the bid. The railway project is estimated at $820 million. The deadline for expressing a preliminary interest in the tender is October 15. DAEWOO MOTOR: GM Aims to Launch Auto JV on October 17 ----------------------------------------------------- General Motors Corp. (GM) aims to launch an auto-making joint venture as early as October 17 with creditor banks of Daewoo Motor Co., Asia Pulse reported Monday. The launch of GM Daewoo Auto & Technology Co. (GMDAT), which will own most of the assets of the Korean carmaker, follows the approval of Daewoo Motor's liquidation plan by a court on September 30. HYUNDAI MERCHANT: Faces Ratings Downgrade ----------------------------------------- The National Information and Credit Evaluation, Inc. (NICE) is expecting to downgrade its current rating of BBB- for Hyundai Merchant Marine (HMM). The firm is at the center of a mounting scandal over the secret transfer of US$400 million to North Korea. NICE explained that the current rating indicates that HMM is eligible for investment, but the rating could slide down to the speculation level. HMM is the shipping arm of Hyundai business group. =============== M A L A Y S I A =============== ANTAH HOLDING: Abd Rahim bin Abd Ghani Steps Down as Director ------------------------------------------------------------- Antah Holding Berhad announced that Abd Rahim bin Abd Ghani has resigned as Non Independent & Non Executive Director of the Board, effective 7 October 2002. In August, TCR-AP reported that Antah Holding has secured a Revolving Credit Facility (RC) of RM140 million from Public Bank Berhad to refinance the Company's existing Term Loan of RM140 Million to Standard Chartered Bank Berhad. The Development Bank of Singapore Ltd has also granted Antah an extension of the Standby Letter of Credit (SBLC) Facility of up to United States of America Dollars equivalent to RM140 million for a further period of three months to expire on 22 November 2002. DATAPREP HOLDINGS: Settles RM343,522 Claim With Sogelease --------------------------------------------------------- Sogelease (Malaysia) Berhad has instituted a claim against Dataprep Holdings Bhd (DHB) in September 1998 for the sum of RM231,312.83 together with interest at 0.065 percent per day on the principal sum of RM196,273.01 as corporate guarantor for the credit facilities extended to former subsidiary, Dataprep Retail Sdn Bhd (DRSB). Sogelease has filed Summary Judgment application and the hearing of the application is fixed on 8th October 2002. Dataprep Holdings said Monday in a Kuala Lumpur Stock Exchange disclosure that it has made a payment of RM343,522.65 to Sogelease as full and final settlement of the said claim with a saving in interest cost of RM 96,065.83 computed: Principal sum RM196,273.01 Interest as at 6/9/2002 227,171.47 Legal cost incurred 16,144.00 -------------- Total Claim RM439,588.48 Interest waived/saving (RM 96,065.83) -------------- Settlement sum RM343,522.65 The loss suffered by the Company arose from the above settlement is RM112,209.65 as illustrated below: Settlement sum RM343,522.65 Less: Loss recognized & accrued in previous year (RM231,313) -------------- Loss suffered RM112,209.65 TCR-AP reported earlier that the Securities Commission has on 28 August 2002 approved the Company's application for an extension of time for a period of up to 7 December 2002 to complete the implementation of the Company's restructuring scheme and employee share option scheme. ESPRIT GROUP: KLSE Dumps Appeal for Extension of Time Request ------------------------------------------------------------- Esprit Group Berhad (EGB) refers to its announcement on 24 September 2002 in regard to their application to appeal against the Kuala Lumpur Stock Exchange's decision on the application for extension of time from 1 September 2002 to 31 October 2002 for EGB to submit its regularization plan to the relevant authorities. The Board of Directors wish to inform that the Exchange has rejected the Company's appeal via their letter dated 4 October 2002. JUTAYA HOLDING: Announces New Board Appointment ----------------------------------------------- Jutaya Holding Berhad, in a disclosure to the Kuala Lumpur Stock Exchange, said that it has appointed Kang Ching Hong as Executive Director of the Board effective 7 October 2002. The 34-year old Kang Ching Hong was the Executive Director for RNC Corporation Berhad prior to his appointment. Jutaya also appointed Abdul Rashid Bin Mohd Yusof to the Board. The appointments were made following the resignation of Tan Chai Seng and Lee Yow Seng on the same date. LAND & GENERAL: Lembah Beringin Winding-up Petition Ended --------------------------------------------------------- The Directors of Land & General Berhad (L&G) said that both the house purchaser and Lembah Beringin Sdn Bhd, its wholly owned subsidiary, have agreed to withdraw their winding-up petition and application for an injunction, respectively. Both parties have filed the Notice of Discontinuance on 7 October 2002. In September, TCR-AP reported that Riverina Investments Co Ltd, a wholly owned sub-subsidiary of Overseas & General Limited (OGL), which is a 51 percent subsidiary of L&G, has been de- registered, as it has been dormant. NCK CORPORATION: NCK Wire Unit Completes Plant Disposal ------------------------------------------------------- Alliance Merchant Bank Berhad said in a disclosure to the Kuala Lumpur Stock Exchange that NCK Corporation (Special Administrators Appointed) had on 4 October 2002 completed the Proposed Disposal by NCK Wire Products Sdn Bhd (Special Administrators Appointed), a wholly owned subsidiary of NCK, of its plant and machinery. TCR-AP reported yesterday that NCK Corporation is still in payment default. As of 31 August 2002, total borrowings on which the NCK Group has defaulted on payments stood at RM614,631,389 (inclusive of accrued interest). PANCARAN IKRAB: Terminates MoU With Poly Electronic --------------------------------------------------- Public Merchant Bank Berhad, on behalf of the Board of Pancaran Ikrab Berhad (PIB) said in a Kuala Lumpur Stock Exchange disclosure that the Memorandum of Understanding (MOU) signed on 30 August 2002 between PIB and Poly Electronic & Electrical (M) Sdn Bhd, whereby, PIB had proposed to acquire the entire share capital of Poly representing 2,000,000 ordinary shares of RM1.00 each has lapsed. The Board of PIB has decided not to further extend the said MOU. Accordingly, the MOU, on even date, will be null and void pursuant to Clause 3.1 of the said MOU. Further thereto, PIB will be considering other viable assets to be injected into the Company as part of its plan to regularize its financial condition. In this respect, upon finalization, an announcement will be made. RENONG BERHAD: UEM to Subscribe Ordinary Shares ----------------------------------------------- United Engineers (Malaysia) Berhad (UEM), a major shareholder of Renong Berhad, has given its irrevocable written undertaking that UEM and/or its subsidiaries shall subscribe for or procure the subscription of all or any remaining ordinary shares of RM0.50 each to be issued pursuant to the Proposed Private Placement, which are not subscribed by other placees so as to ensure that the Company's objective to avoid the Renong Group's shareholders' funds from being in deficit is not jeopardized should there be insufficient placees to subscribe for all the Placement Shares. On behalf of Renong, Commerce International Merchant Berhad said in a disclosure to the Kuala Lumpur Stock Exchange that Renong had received a written clarification dated 5 October 2002 from UEM that the reference to "its subsidiaries" in the abovementioned UEM's written undertaking is intended to refer to private limited subsidiaries of UEM which UEM may deem fit to include for purposes of the subscription in the event such a decision is arrived at by UEM as and when the number of Placement Shares is advised by Renong. ROAD BUILDER: Appointing Liquidator to Wind-up Condoheights ----------------------------------------------------------- The Board of Directors of construction company Road Builder (M) Holdings Bhd (RBH) said in a disclosure to the Kuala Lumpur Stock Exchange that the Board of Directors of Condoheights Development Sdn Bhd, a wholly owned subsidiary of Seremban Two Sdn Bhd (STSB) which in turn is a 70% equity owned subsidiary of RBH, is proposing: (i) to undertake a Members' Voluntary Winding-up of Condoheights; and (ii) to appoint Mr. Chuah Seong Phaik of Paul Chuah & Co. at No. 17, Jalan Ipoh Kecil, 50350 Kuala Kumpur as Liquidator for the purpose of winding-up. The Proposals is subject to the approval of the shareholders of Condoheights at an Extraordinary General Meeting to be convened. Condoheights was incorporated in Malaysia on 30 May 1984 under the Companies Act, 1965 as a private limited company. It has an authorized share capital of RM500,000 comprising 500,000 ordinary shares of RM1.00 each of which RM200,000 comprising 200,000 ordinary shares of RM1.00 each have been issued and fully paid-up. The principal activity of Condoheights is that of property development. Condoheights is the registered proprietor of approximately 1,575 acres of agriculture land located in Mukim of Labu and Rasah, District of Seremban, Negeri Sembilan Darul Khusus. The proposed Liquidator will be authorized to distribute the Condoheights's assets to its sole shareholder, STSB in cash or in kind after allowing for creditors' payments and liquidation expenses. It is the intention of the STSB Board to keep the Land within the STSB Group. STSB will furnish an undertaking to Condoheights that: a. it will provide the required funding to Condoheights to meet any cashflow deficit or shortfall during the course of Condoheights's winding-up; and b. it will waive such amount of debt (if required) owing by Condoheights should the realization of Condoheights's assets are insufficient to meet all of its liabilities. Pursuant to the terms and conditions of the Supplemental Agreement entered into between RBH and STSB with Reco Homebuilder (M) Sdn Bhd on 2 May 2002 (to vary the terms and conditions of the Share Subscription Agreement dated 6 November 2001), Condoheights and/or its assets is to be restructured in such manner as may be agreed between the parties and such restructuring may take place at any time before or after the completion of the investment by RECO in STSB. The parties have agreed to the Proposed Members' Voluntary Winding-Up of Condoheights. As at 30 June 2002 (unaudited), the total investment cost in Condoheights is RM29.4 million whilst advances owing to STSB amounted to RM128.9 million. The financial effects of the Proposed Members' Voluntary Winding-up: (i) Share Capital It will not have any effect on the issued and paid-up share capital of RBH. (ii) Net tangible assets There will be no material effect on the net tangible assets of the RBH Group. (iii) Earnings There is no effect on the earnings of RBH Group for the financial year ending 30 June 2003 as the Proposed Members' Voluntary Winding-up is only expected to be completed in the first quarter of financial year ending 30 June 2004. ROCK CHEMICAL: Loss-making Unit Disposes Plant ---------------------------------------------- Rock Chemical Industries (Malaysia) Berhad (RCI) said that its wholly owned subsidiary, RCI Concrete Products Sdn Bhd (RCI-CP), had on 7 October 2002 disposed off its plant, machinery and equipment for the manufacture of cement-based terrazzo tiles, compressed concrete tiles and compressed concrete pavers to Sun- Block PMI Sdn Bhd for the total sale price of RM2 million. RCI-CP has an authorized share capital of RM100,000 comprising ordinary shares of RM1.00 each, and its issued and paid-up share capital is RM100 comprising fully paid ordinary shares of RM1.00 each. RCI-CP is primarily involved in the manufacture of cement- based terrazzo tiles and compressed concrete pavers. Sun-Block PMI Sdn Bhd is a wholly owned subsidiary of Sunway Building Technology Berhad. It has an authorized share capital of RM50,000,000 comprising ordinary shares of RM1.00 each whilst its issued and paid-up share capital is RM38,000,000 comprising fully paid ordinary shares of RM1.00 each. Sun-Block's principal activities are manufacturing and sales of concrete blocks, pavers and compressed concrete piles, manufacturing and sales of precast micro-injection piles and reinforced concrete piles, undertaking of piling contracts and hire of heavy machineries. The total sale price of RM2,000,000 was arrived at on a willing- buyer willing-seller basis. It is payable by Sun-Block in two tranches as follows: * The First Tranche is for the sum of RM300,000 and is payable by six (6) equal monthly installments of RM50,000. The first installment was paid upon execution of the sale and purchase agreement governing the Disposal on 7 October 2002. * The Second Tranche is for the sum of RM1,700,000 and is payable by thirty-four (34) equal monthly installments of RM50,000 by way of set-off against amounts payable by RCI-CP for its purchase of cement-based terrazzo tiles, compressed concrete tiles and compressed concrete pavers from Sun-Block. If the amount for such products delivered to RCI-CP: a) is less than the relevant installment under the Second Tranche, then Sun-Block must pay in cash the difference to RCI- CP. b) exceeds the relevant installment under the Second Tranche, then the excess amount shall be set-off against the subsequent installment up to a maximum of RM50,000 unless otherwise agreed by both parties. Sunway Holdings Incorporated Berhad, the ultimate holding company of Sun-Block, has delivered to RCI-CP a corporate guarantee to guarantee the due and punctual payment of the total purchase consideration by Sun-Block. RCI-CP has been incurring losses in its manufacturing activity. The Disposal presents an opportunity for RCI Group to realize some value from the Said Equipment owned by RCI-CP. The gain on disposal of approximately RM378,000 will improve the Group's earnings per share by 0.9 sen for the financial year ending 31 December 2002. The Disposal is not subject to the approval of shareholders of RCI or regulatory authorities. None of the Directors and substantial shareholders of RCI or persons connected with them have any interest, direct or indirect, in the Disposal. SATERAS RESOURCES: Application for Time Extension Rejected ---------------------------------------------------------- Sateras Resources (Malaysia) Berhad had on August applied to the Kuala Lumpur Stock Exchange for an extension of time of twelve months from 31 August 2002 to implement the Company's financial regularization plan. The Exchange has, on 4 October 2002, rejected the Company's application for extension of time to comply with the obligation set out in paragraph 5.1 of PN4. The Company is mindful of its obligation to obtain all the authorities' approval necessary for implementation of its scheme by 31 December 2002, failing which the Company may be de-listed from the Official List of the Exchange pursuant to Paragraph 16.09 of the Listing Requirements. The Company is, nevertheless, still working towards a new restructuring plan aimed at regularizing the Company's financial condition. Details of the new proposal will be made available by the Board as soon as they are finalized. SOUTHERN PLASTIC: Appoints New Board Director --------------------------------------------- Southern Plastic Holdings Berhad said in a disclosure to the Kuala Lumpur Stock Exchange that it has appointed Kong Fui Kien of Patrick Kong as Independent & Non Executive Director of the Board effective 1 October 2002. The 60-year old Malaysian is also Director for: 1) Permaju Industries Bhd 2) Kong See Sdn Bhd 3) Ranggi Industries Sdn Bhd 4) Ranggi Realty Development Sdn Bhd 5) Mari Bersatu Sdn Bhd 6) Ranggi Aquatic Development Sdn Bhd 7) Duchima Sdn Bhd 8) Wan Tet Sdn Bhd 9) Jas Tinggi Sdn Bhd 10) Anjur Permai Sdn Bhd 11) Speciality Minerals (Malaysia) Sdn Bhd Southern Plastic has also appointed Idros Bin Yahaya and Vincent Leong Jee Wai as Executive Directors of the Board. In September, the TCR-AP reported that Southern Plastic entered into a Sale and Purchase Agreement as part of the Company's restructuring scheme. The completion of the agreements is conditional upon the approvals being obtained from the relevant authorities. TAI WAH: Sets 32nd AGM on October 31 ------------------------------------ The Board of Directors of Tai Wah Garments Manufacturing Berhad (TWGB) announced that its Thirty-Second Annual General Meeting of will be held: Date : 31 October 2002, Thursday Time : 9.30 a.m. Venue : Peacock I function room, 6th Floor, Pearl International Hotel, Batu 5, Jalan Klang Lama, 58000 Kuala Lumpur. Early this month, TCR-AP reported that the Kuala Lumpur Stock Exchange (KLSE) has vide its letter dated 24 September 2002 rejected TWGB's application for the extension of time until 30 September 2002 to make its requisite announcement regarding the Phase 2 of its revised Restructuring Scheme by 31 October 2002. TECHNO ASIA: Westmont Offshore Unit Facing Suit in Bangladesh ------------------------------------------------------------- The Special Administrators of Techno Asia Holdings Berhad have been notified that the solicitors acting for Energycorp (UK) Limited (EUK) has filed a suit against Westmont Offshore Sdn. Bhd. (WOSB) and Westmont Power (Bangladesh) Limited (WPBL) in the 1st Court of Joint District Judge, Dhaka, Bangladesh. This was made known to WOSB by way of facsimile transmission of the Plaint and Summons and subsequently thereto by courier of the said cause papers. Based on the notification received from EUK's solicitors, the suit was initiated by EUK to, inter alia; * restrain WOSB from making a claim under the Technical Assistance Agreement (TAA) as was announced on 5 July, 2002 reference no. WL-020705-39861; and * restrain WPBL from making any payments under the TAA to WOSB. WOSB will seek the advice of its solicitors in Bangladesh as regard the validity of the manner in which the suit has been notified to WOSB and shall instruct its solicitors to take the necessary steps to resist the injunction application initiated by EUK. WOSB is a wholly owned subsidiary of Techno Asia and it has an interest of 31.58 percent in WPBL. TECHNOLOGY RESOURCES: Plans To Resume Trading as Celcom ------------------------------------------------------- Shares of Technology Resources Industries Bhd, Malaysia's second biggest cellular services group, will resume trading on the Kuala Lumpur Stock Exchange on October 10 and will assume the name of its mobile arm Celcom (Malaysia) Bhd. The stock has been halted since September to prepare for the transfer of its listing status to Celcom. The suspension was to facilitate the cancellation of existing stock and the distribution of Celcom shares on a one-for-one basis to holders of TRI. Earlier this year, the mobile telecoms firm completed an internal reorganization and a debt revamp plan that included its listing transfer to its mobile network operator Celcom. State-controlled Telekom Malaysia is the single biggest shareholder in TRI with a 31 percent stake. UNITED CHEMICAL: Posts Update on Facilities in Default ------------------------------------------------------ The Board of Directors of United Chemical Industries Berhad (UCI) said in a disclosure to the Kuala Lumpur Stock Exchange that there are no new significant developments in relation to the various defaults in payment that were announced on 9 September 2002. The Board of Directors of UCI would like to further provide an update on the details of all facilities currently in default in compliance with Section 3.1 of Practice Note 1/2001. Details are set out at http://bankrupt.com/misc/united_chem.pdf. ===================== P H I L I P P I N E S ===================== PHILIPPINE LONG: Finalizes Takeover Offer With Foreign Partner -------------------------------------------------------------- Philippine Long Distance Telephone Co (PLDT) Chairman Antonio Cojuangco and president Manuel Pangilinan are teaming up with an unnamed foreign strategic partner and finalizing an offer to take over control of the Company from First Pacific Co Ltd, the Philippine Star reported. The report said the two PLDT officials are preparing the offer as one group. The report follows last week's Philippine Daily Inquirer story, also citing an unnamed source, on Cojuangco and Pangilinan having supposedly broken their alliance after successfully blocking the PLDT takeover by the Gokongwei group. First Pacific, which owns 24.4 percent of PLDT, was ready to negotiate with Cojuangco and Pangilinan regarding their offer. (M&A REPORTER-ASIA PACIFIC, Vol. No.1, Issue No. 199, October 08, 2002) PHILIPPINE LONG: First Pacific Gathers Votes to Oust Pangilinan --------------------------------------------------------------- First Pacific Co. has enlisted enough support from Directors on the Board of Philippine Long Distance Telephone Co. (PLDT) to oust Manuel Pangilinan as President of the telecom firm, the Philippine Daily Inquirer and Bloomberg reported. Philippine Telephone Chairman Antonio Cojuangco may support Pangilinan's removal and manage the Company until First Pacific sells its controlling 24 percent stake in the phone Company. An unidentified Cojuangco spokesman said his boss wasn't part of a plan to oust Pangilinan. Philippine Long Distance said on Monday that Pangilinan had received offers for First Pacific's phone stake and that he would present them to First Pacific's board. PHILIPPINE LONG: Several Groups Interested in First Pac Stake ------------------------------------------------------------- In a filing to the Philippine Stock Exchange (PSE), Philippine Long Distance Telephone Co (PLDT) Vice President for media and communications Butch Jimenez said several groups are interested in acquiring First Pacific Co Ltd's controlling 24.4 percent stake in PLDT. He did not identify the groups that are keen on making an offer, but added that PLDT president and chief executive officer Manuel Pangilinan is not "personally" part of any of these groups. Jimenez's statement follows a newspaper article, citing unidentified sources as saying Pangilinan and PLDT Chairman Antonio Cojuangco are teaming up with a foreign strategic partner and finalising an offer to take over control of the Company from First Pacific. (M&A REPORTER-ASIA PACIFIC, Vol. No.1, Issue No. 199, October 08, 2002) STENIEL MANUFACTURING: Posts Notice of Default in Payment --------------------------------------------------------- Steniel Manufacturing Corporation, with reference to the Omnibus Agreement dated November 10, 2000 entered into by the Company as borrower with various lender banks, informed that the Corporation has received a notice of default declaring the aggregate amount of PhP 851,512,339.74 as of September 30, 2002, and any other amounts due to the lenders thereafter, due and payable on or before October 10, 2002. The notice provides that the lenders shall enforce their remedies under the Omnibus Agreement for failure by the Corporation to make timely payment. Negotiations are underway between the Corporation and the lenders for a restructuring of the loan under the Omnibus Agreement. For a copy of the press release, go to http://bankrupt.com/misc/TCRAP_steniel1008.pdf UNITRUST DEVELOPMENT: PBCom to Renew Interest in Bid ---------------------------------------------------- The Philippine Bank of Communication (PBCom) is seen to renew its interest in re-bidding for the rehabilitation of the closed Unitrust Development Bank, Business World reports. PBCom is also questioning the decision of the Philippine Deposit Insurance Corp. (PDIC) to reopen the bidding process to other proponents. PBCom had earlier been awarded the responsibility to rehabilitate Unitrust. Shareholders of Unitrust, however, refused to give their support to PBCom's proposal. The PDIC then decided to reopen the bidding for Unitrust. A petition for its judicial rehabilitation is still pending before the courts. Earlier, Yuseco said the PDIC's move to reopen the bidding for the rehabilitation of Unitrust is a mere "exercise in futility" as he feels the deposit insurer will still find a way to thumb down his group's proposal. The Makati Regional Trial Court recently decided to extend the order restraining the PDIC from selling the assets of the bank or awarding the rehabilitation program to the winning proponent. URBAN BANK: Exportbank Mulls Subsidiaries' Disposal --------------------------------------------------- In a recent interview, Export and Industry Bank (Exportbank) president Benjamin Castillo said the bank has about four or five months left to rationalize the subsidiaries of Urban Bank and is now inclined to dispose of those companies not within Exportbank's line of focus, after reopening Urban Bank's brokerage firm, the Business World reported. "So far, we have decided to sell Urban Bank's travel Company. There are several other companies that we have to look into but the most major is Urban Life and General Insurance (ULGI)... we will reopen that,". Castillo said. Confirming plans to reactivate the operations of ULGI, Castillo said the bank is exploring the possibility of tying up with an existing insurance Company for a bancassurance venture. ULGI was the insurance arm of Urban Bank. The latter declared a bank holiday in 2000 and was subsequently bought by Exportbank. The operations of the two banks were merged last year. Meanwhile, Castillo said the bank is not inclined to pursue earlier plans of acquiring another bank. Industry sources earlier said Exportbank is finalizing talks for the possible acquisition of a thrift bank. Castillo earlier said that "having a thrift bank license will be beneficial" to Exportbank. The thrift bank arm of Urban Bank - Urban Development Bank -- was not included in the package of Urban Bank subsidiaries to be rehabilitated by Exportbank. (M&A REPORTER-ASIA PACIFIC, Vol. No.1, Issue No. 199, October 08, 2002) ================= S I N G A P O R E ================= CHARTERED SEMICONDUCTOR: Shares Down 50% on October 7 ----------------------------------------------------- Shares of Chartered Semiconductor on fell another 6 percent to 93 cents on Monday - just shy of their record low of 92.5 Singapore cents. Channel News Asia reported that the Company has tumbled nearly 50 percent from S$1.82 on August 30, just before it announced its controversial S$1.1 billion rights issue. The rights offer closed on Monday and is widely believed to have flopped with the underwriters led by Merrill Lynch left picking up the pieces. Singapore Technologies, which owns 60 percent of Chartered, has pledged to take up its full rights allocation. The result of the rights issue is expected to be announced on October 8 or 9. DebtTraders reports that Chartered Semiconductor Mnfg's 2.500 percent convertible bond due in 2006 (CSM06SGN1) trades between 89 and 91. For real-time bond pricing, go to http://www.debttraders.com/price.cfm?dt_sec_ticker=CSM06SGN1 FHTK HOLDINGS: Posts Notice of Shareholder's Interest ----------------------------------------------------- FHTK Holdings Limited posted a notice of changes in substantial shareholder Oversea-Chinese Banking Corporation Ltd's interest: Date of notice to Company: 04 Oct 2002 Date of change of interest: 04 Oct 2002 Name of registered holder: Oversea-Chinese Bank Nominees Private Limited Circumstance(s) giving rise to the interest: Others Please specify details: Change in registered holder Shares held in the name of registered holder No. of shares of the change: 31,779,325 Percentage of issued share capital: 2.58 Amount of consideration per share excluding brokerage, GST, stamp duties, clearing fee: 0 No. of shares held before change: 10,490,595 Percentage of issued share capital: 0.86 No. of shares held after change: 42,269,920 Percentage of issued share capital: 3.44 Holdings of Substantial Shareholder including direct and deemed interest Deemed Direct No. of shares held before change: 0 189,226,959 Percentage of issued share capital: 0 15.38 No. of shares held after change: 0 189,226,959 Percentage of issued share capital: 0 15.38 Total shares: 0 189,226,959 Oversea-Chinese Banking Corporation Limited direct interest under registered holder UOB Kay Hian Private Limited is 146,957,039 (11.94 percent) and under registered holder Oversea- Chinese Bank Nominees Private Limited is 42,269,920 (3.44 percent). Total interest after change is 15.38 percent. NEPTUNE ORIENT: Considers Options for American Eagle ---------------------------------------------------- Neptune Orient Lines (NOL) said on Tuesday that, following approaches from parties interested in purchasing its tanker division, American Eagle Tankers (AET), it was undertaking a strategic review of its investment in that division. NOL Group President and CEO Flemming Jacobs said, "We had a good response from the market to our proposed listing of AET last year, and only withdrew when the market dipped at that time. Since then, parties interested in purchasing AET have approached us on a number of occasions. With our acquisition of the lightering business, MTLP, and expansion of our fleet, that interest has grown. We have therefore decided that we have a responsibility to our shareholders to explore the various options for this division." Jacobs said the review would assess a range of alternatives, including maintaining the status quo, a possible sale, merger, joint venture, initial public offering or other transaction. Jacobs said they would weigh what would benefit both the Group and AET, which he described as a vital and profitable business. "We need to look at all the options," Jacobs said. He anticipated the review would be completed within six months. TCR-AP reported that Neptune Orient posted a loss of $56.6 million in 2001, compared with a record net income of $178.5 million in 2000, hurt by its container and logistics units. The Company sees losses this year because of lower freight rates. According to Deutsche Bank analyst Michael Sia, Neptune Orient will continue to report losses in 2003 and 2004 because of falling rates and overcapacity. He forecasts a $300 million loss in 2003, and lower losses in 2004. =============== T H A I L A N D =============== THAI HEAT: Issues Stocks, Convertible Debentures ------------------------------------------------ Thai Heat Exchange Public Co., Ltd. (THECO) had issued 31,408,200 preferred stocks and 80,264 convertible debentures according to the recent financial restructure and rehabilitation plan that allows the conversion being done at the end of each quarter. Preferred stocks Amount Ratio Price New (Stock) Conversion Common Stock Thanachart Bank PLC. 1,387,600 1:1 - 1,387,600 National Finance PLC. 3,069,500 1:1 - 3,069,500 Convertible Debenture Amount Ratio Price New (Stock) Conversion Common Stock Thanachart Bank PLC. 5,446 1:100 - 544,600 National Finance PLC 16,355 1:100 - 1,635,500 By the conversion as mentioned above, it is concluded that the total number of preferred stocks have 24,401,500 stocks and the total number of convertible debentures have 51,829 units. The paid up common stocks then have been changed from 25,764,200 units value Baht 257,642,000 to be 32,401,400 units value Baht 324,014,000. Bangkok-based Thai Heat Exchange Public Company Limited - http://www.thaiheat.com- manufactures and imports car and room- airconditioning components. WONGPAITOON GROUP: Offers Warrants to Creditors ----------------------------------------------- Wongpaitoon Group Public Company Limited issued and offered warrants to subscribe for new ordinary shares of the Company in the amount of 403,230,585 units to the creditors, in accordance with the Business Reorganization plan, on December 21, 2001. The warrant holders are entitled to exercise their right to subscribe shares on a quarterly basis of the accounting year of the Company; i.e. on March 31, June 30, September 30 and December 31. If the exercise date is not a business day for the commercial bank, such date shall be the next following business day. The Bangkok-based sports shoes manufacturer said in a disclosure to the Stock Exchange of Thailand that there were no applications for the third exercise of warrants as of September 30, 2002. The number of the remaining warrants is 403,230,585 units. 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 ***