/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/021010.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 Thursday, October 10, 2002, Vol. 5, No. 201 Headlines A U S T R A L I A AMP LIMITED: Becomes Substantial Sonic Holder AMP LIMITED: Undertaking US$163.5 Cost Cutting in UK Unit COLES MYER: Board, Shares Seeks Stability PMP LIMITED: Posts Notice of Change in Director's Interest C H I N A & H O N G K O N G CHINA STRATEGIC: Director Takes Over Y-ITC's 14.55% Stake CNOOC LTD: Moody's Places Baa2 Rating on Upgrade Review GREAT FINE ENGINEERING: Hearing of Winding Up Petition Set PRESSURE VESSELS: Winding Up Petition Pending SEA GIANT: Winding Up Petition Slated for October 31 YIN LUNG NONFERROUS: Faces Winding Up Petition J A P A N ALL NIPPON: Orders 4 DHC8-400 Airliners From Canada AEON CO.: Trims Losses Slightly After Solid First Half Results JAPAN STORAGE: JCR Downgrades Rating to BBB- KENWOOD CORP: Shares Up 1.2% After Merger Report KYUSHU ELECTRIC: Unit Halts PHS Service NIPPON TELEGRAPH: Government Sells 91,800 Shares NIPPON TELEGRAPH: May Fall After Unit Transfers 5,000 Workers NIPPON TELEGRAPH: NEC Supports Systems Construction of Unit SHOWA SANGYO: JCR Assigns BBB+ Rating K O R E A DAEWOO MOTOR: Expects Early Exit From Debt Workout Plan DAEWOO MOTOR: Will Enter Auto Leasing Market DAEWOO MOTOR: UK Unit Goes Into Administration HYNIX SEMICON: Targets 5-7% DDR Chip Price Hike KOREA ELECTRIC: Expects to Receive LOI For Shares in Power Unit M A L A Y S I A IDRIS HYDRAULIC: KLSE Withdraws Acquisition Approval KUALA LUMPUR INDUSTRIES: Annual Report Due October 15 PANCARAN IKRAB: Enters MoU With Dijaya Shareholders SUNWAY HOLDINGS: Sunway Credit Unit Enters into Lease Agreement TECHNOLOGY RESOURCES: Posts Notice of Tan Poh Keat's Interest TONGKAH HOLDINGS: KLSE Approves Request for Extension of Time P H I L I P P I N E S PHILIPPINE LONG: Responds to "Boardroom Brawl Brewing" Report PHILIPPINE LONG: Singapore-Based Investors to Buy 24.4% Stake STENIEL MANUFACTURING: In Debt Restructuring Talks With Banks UNITRUST DEVELOPMENT: PBCom Open to Re-Bidding Participation S I N G A P O R E CHARTERED SEMICONDUCTOR: Completes Rights Offering CHEW EU: Posts Notice of Extraordinary General Meeting FREIGHT LINKS: Plans Capital Reduction to Cut Losses SEMBCORP INDUSTRIES: SCM Privatization Proposal T H A I L A N D L.P.N. DEVELOPMENT: Restructures Debt With Creditors TELECOMASIA CORP: Investors Subscribe to THB14.75B Bond 1st Day THAI PETROCHEMICAL: Court Moves Debt Case Hearing to November * DebtTraders Real-Time Bond Pricing - - - - - - - - ================= A U S T R A L I A ================= AMP LIMITED: Becomes Substantial Sonic Holder --------------------------------------------- AMP Limited became a substantial shareholder in Sonic Healthcare Limited on 4 October 2002. Australia's leading financial services company acquired relevant interest in the issued share capital of 13,399,031 ordinary shares or 5.16 percent. AMP LIMITED: Undertaking US$163.5 Cost Cutting in UK Unit --------------------------------------------------------- AMP Ltd will undergo further cost-cutting at its troubled United Kingdom business, Pearl Assurance, above a $A300 million ($US163.53 million) program already in place, the Australian newspaper reports. The division was the group's obvious area for cost savings, UK head Tom Fraser told JP Morgan's investment conference in Edinburgh, the newspaper said. Fraser did not specify whether the cost cutting measure would involve job losses. Shares in the company have been sinking to all time lows in September as the market reacted to revelations the group had not revealed the full extent of the financial troubles at its British operations. COLES MYER: Board, Shares Seeks Stability ----------------------------------------- Shares of ailing retailer Coles Myer was expected to outperform Tuesday as the company's board gains some stability with Rick Allert indicating he will be in for the long haul if elected chairman. Allert has advised Australian winemaker Southcorp Limited he would resign as chairman, director at its Annual General Meeting on October 31, thereby removing conflict with Coles Myer chairmanship. Allert will likely be elected unopposed when Coles Myer board meets today. Coles Myer Chairman Stan Wallis announced in September he would retire at the retailer's AGM on November 20. The announcement triggered market speculation that Allert would take over as chairman for six months. PMP LIMITED: Posts Notice of Change in Director's Interest ---------------------------------------------------------- PMP Limited reported to the Australian Stock Exchange the following information under listing rule 3.19A.2 and as agent for the director for the purposes of section 205G of the Corporations Act. Name of Director Marcia Anne Griffin Date of last notice 04/09/2002 Part 1 - Change of director's relevant interests in securities Direct or indirect interest Direct Nature of indirect interest (including registered holder) Nil Date of change 05/09/2002 No. of securities held prior to change 29,743 Class Ordinary Number Acquired 8,900 Number disposed Nil Value/consideration $9,790.00 No. of securities held after change 38,643 Nature of change On market trade settled by application of directors fees. Part 2 - Change of director's relevant interests in contracts Detail of contract Nil Nature of direct interest Name of registered holder (if issued securities) Date of change No. and class of securities to which interest related prior to change Interest Acquired Interest disposed Value/consideration Interest after change ================================ C H I N A & H O N G K O N G ================================ CHINA STRATEGIC: Director Takes Over Y-ITC's 14.55% Stake --------------------------------------------------------- In a statement, China Strategic Holdings Ltd. (H.CSG) said that Charles Chan Kwok Keung, a director at the company, would take over Paul Y-ITC Construction Holdings' (H.PYI) 14.55 percent stake in the investment holding firm. The directors of China Strategic are of the view that the proposal will not have any significant impact on the operations and management of China Strategic. Paul Y-ITC is 42.59 percent owned by ITC Corp. Ltd., while Chan owns 34.82 percent of ITC Corp. Chan will pay Paul Y-ITC shareholders HK$0.2 per share of China Strategic that Paul Y-ITC owns. TCR-AP reported in September that 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. CNOOC LTD: Moody's Places Baa2 Rating on Upgrade Review ------------------------------------------------------- Moody's Investors Service said Tuesday it has placed the Baa2 issuer rating of CNOOC Ltd and the Baa2 senior unsecured rating of its guaranteed subsidiary CNOOC Finance (2002) Ltd on review for possible upgrade. Moody's said it also placed the Baa2 issuer rating of CNOOC Ltd's parent, China National Offshore Oil Corp (CNOOC), on review for possible upgrade. The review reflects the consistently solid debt protection measures of CNOOC Ltd and CNOOC, and the continued stable policy regime for the companies, the credit ratings agency said. "The review will focus on the outlook for the group's financial profile in the next three to five years as the growth strategy for its key business sectors evolves," Moody's said in a statement. The Hong Kong-based CNOOC Ltd is an oil and gas exploration and production company with operations concentrated in the offshore part of China. It is currently owned 70.6 percent by China National Offshore Oil Corporation (CNOOC), which in turn is wholly owned by the central government of the People's Republic of China. CNOOC, headquartered in Beijing, China, has substantial interests in oil and gas exploration and production, oil services, and chemical companies, in addition to several large downstream projects. GREAT FINE ENGINEERING: Hearing of Winding Up Petition Set ---------------------------------------------------------- The petition to wind up Great Fine Engineering Limited was set for hearing before the High Court of Hong Kong last October 2, 2002, at 9:30 am. YipYee Luen of Flat E, 5th Floor, Tai Hing Building, 5 Luen On Street, Ngau Tau Kok, Kwun Tong, Kowloon, Hong Kong filed the petition with the said court last August 8, 2002. PRESSURE VESSELS: Winding Up Petition Pending --------------------------------------------- The petition to wind up Pressure Vessels Manufacturing Company Limited is scheduled before the High Court of Hong Kong on November 13, 2002 at 10:00 am. Standard Chartered Bank, whose Hong Kong office is situated at 4-4A Des Voeux Road Central, filed the petition with the said court last September 4, 2002. SEA GIANT: Winding Up Petition Slated for October 31 ---------------------------------------------------- Sea Giant Enterprises Company Limited is facing a winding up petition, which is slated to be heard before the High Court of Hong Kong on October 31, 2002 at 9:30 am. Cheung Yiu Nam Michelle of Room 3405, 34/F., Tin Hong House, Tin Wan Estate, Hong Kong filed the petition last August 5, 2002. YIN LUNG NONFERROUS: Faces Winding Up Petition ---------------------------------------------- The Industrial and Commercial Bank of China, Zhenzhen Branch of North Block, Financial Centre, Shennan Road East, Shenzhen, the People's Republic of China, is seeking for the winding up of Yin Lung Nonferrous Metals Investment Limited. The petition was filed on July 10, 2002 at the High Court of Hong Kong, and was heard before the said yesterday at 9:30 a.m. ========= J A P A N ========= ALL NIPPON: Orders 4 DHC8-400 Airliners From Canada --------------------------------------------------- All Nippon Airways (ANA) announced orders for four DHC8-400 turboprop airliners from Bombardier Inc. of Toronto Canada. Air Nippon Network (A-Net, President and CEO: Toshimitsu So), a fully owned subsidiary of Air Nippon (ANK), one of the ANA group airline, will operate DHC8-400 between Osaka (Itami) and Kochi on the island of Shikoku in autumn 2003. A-net will double Osaka - Kochi service to 15 roundtrips a day with four DHC8-400s, the brand new high-speed turboprops by 2005. Currently, ANK operates 7 flights a day with Boeing 737- 500 and Airbus 320. "ANA's aim is to develop a new business utilizing landing slots appropriated for propeller aircraft at Osaka's Itami airport and our experience has proven the DHC8-400 to be the best match for the job," said Yoji Ohashi, ANA's President and CEO. A-Net was established on April 27, 2001 and operates from Sapporo's Okadama airport to destinations within Hokkaido (Kushiro, Hakodate, Monbetsu) and between Tokyo's Haneda airport and Ohshima island with a total of seven roundtrip flights a day. DHC8-400 Characteristics Length : 32.8 m Width : 28.4 m Height : 8.3 m Engine : PW150A (x2) Number of Seats : 74 seats Number of Crew : 2 Cockpit Crew, 2 Cabin Attendants Maximum Take-off Weight : 29,000 kg Cruise Speed : 650 km/h All Nippon Airways expects to book a special loss of about 7 billion yen for the first half of this year from the sale of six airplanes, TCR-AP reports. The airline sold six Airbus jets with book value of 33 billion yen for 26 billion yen as part of plan to trim maintenance costs. For inquiries, contact Yasuo Taki, Public Relations, via e-mail at y.taki@ana.co.jp. AEON CO.: Trims Losses Slightly After Solid First Half Results -------------------------------------------------------------- Supermarket chain operator Aeon Co. has trimmed its losses after posting an operating profit of 58.3 billion in the first half of this year, Dow Jones reported Wednesday. "Besides, earnings were helped along a bit by foreign exchange gains from a U.S. unit, which probably won't be repeated in the second half." The Company's shares declined 2.9 percent at 2,870 yen after trading as low as 2,855 yen before the announcement. According to a TCR-AP report, Aeon Co. Limited, formerly known as Jusco Co. Limited, aims to shut down 30 outlets by the end of February 2006, to improve the overall earnings structure. The report said the Company's outlets posted billions of yen in losses per year. The report said the Company is planning to dissolve two units namely Liz Japan Ltd and Sun-sun Land Co. in the current fiscal year to March 2003. JAPAN STORAGE: JCR Downgrades Rating to BBB- -------------------------------------------- Japan Credit Rating Agency (JCR) has downgraded the rating of Storage Battery Co., Ltd. on the following bonds from BBB to BBB-, affirming the J-2 rating on the CP program. Issue Amount(bn) Issue Date Due Date Coupon bonds no.14 Y10 / Aug. 25, 1999 / Aug. 25, 2004 / 2.28 percent CP Maximum: Y15 billion Backup Line: 0 percent Japan Storage Battery incurred an operating loss for fiscal 2001 ended March 31, 2002. The parent profit dropped while the lithium ion battery-manufacturing subsidiary, GS-Melcotec (GSMT), joint venture with Mitsubishi Electric, plunged into loss again. The revenue for the fiscal year dropped 13.9 percent due to the weakened domestic automotive battery market and drop in demand for lithium ion batteries for cellular phones. Japan Storage Battery has been reducing costs through joint procurement and consolidation of sales subsidiaries. It has also gathered pace of manufacturing cost, shifting the production sites to China. It will take time, however, to improve the earnings, given the continuing downward pressure on the prices. Although the Company has been reducing the interest-bearing debt via securitization and group financing, improvement in the financial ratios slowed down. Competition with rivals is fierce in the automotive battery market, although demand in the aftermarket will be stable. Performance of GSMT improved so that it can now break even. The business risk remains high, however. Demand for the secondary batteries may increase in the future in line with the penetration of high voltage power and practical application of fuel battery. Japan Storage Battery needs to rebuild the flexible production system and allocate the resources to the growth business areas intensively. Japan Storage Battery announced on October 3, 2002 that it would sell GSMT to Sanyo Electric after turning GSMT into a wholly owned subsidiary. GSMT will become an equity-method affiliated Company of Japan Storage Battery. Impact of the sale on the business operation and earnings of the Company is now known. JCR will examine carefully. According to Wright's Investors Service, Japan Storage Battery Co Ltd had a negative working capital at the end of 2002, as current liabilities were 80.77 billion while total current assets were only 71.57 billion. KENWOOD CORP: Shares Up 1.2% After Merger Report ------------------------------------------------ Shares in Kenwood Corporation increased 1.2 percent at 87 yen, after saying it will merge four companies into Kenwood USA and eliminate undisclosed number of managerial and midlevel positions, Dow Jones reported Wednesday. The audio equipment maker says moves will be completed by November 1. Shares of Kenwood Corporation increased 24 percent earlier this month after the receiving 27 billion yen ($221 million) in financial assistance through bank loans and a sale of shares to investors, TCR-AP reports. The Company will spin off its money-losing audio division before the end of this year to restore its balance sheet. As of March 2002, the firm's debt exceeded its assets by 17 billion yen. KYUSHU ELECTRIC: Unit Halts PHS Service --------------------------------------- Kyushu Telecommunication Network Co, a unit of Kyushu Electric, will end its personal handy-phone system (PHS) business in 2003, Kyodo News reported Wednesday. Kyushu Electric said the rehabilitation of the loss-making Astel Kyushu PHS service business is difficult. According to Wright's Investors Service, Kyushu Electric Power Co Inc. had a negative working capital at the end of 2002, as current liabilities were 780.16 billion while total current assets were only 208.17 billion. NIPPON TELEGRAPH: Government Sells 91,800 Shares ------------------------------------------------ The government sold 91,800 shares in Nippon Telegraph and Telephone Corporation (NTT) for 39.57 billion yen on Tuesday in response to its share-repurchase plan, Japan Times reports, citing the Finance Ministry. The government now holds 45.3 percent stake in NTT from 45.9 percent. NIPPON TELEGRAPH: May Fall After Unit Transfers 5,000 Workers ------------------------------------------------------------- Shares in Nippon Telegraph and Telephone Corporation (NTT) may fall after NTT East transfers 5,000 full-time workers to other units such as its regional outsourcing firms by next spring amid severe fixed-line phone business environment, Dow Jones reports. NTT East already transferred 45,000 in May and currently has only 25,000 on payroll. NTT's ADR shares in New York fell $0.15 to $17, or to 422,620 yen compared with Tokyo's last cash price of 429,000 yen. According to a TCR-AP report, NTT would 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. NIPPON TELEGRAPH: NEC Supports Systems Construction of Unit ----------------------------------------------------------- NEC Corporation announced that it has fully supported the systems construction of NTT Worldwide Telecommunications Corporation (NTT-WT), a wholly owned subsidiary of NTT Communications Corporation (NTT Com), for the launch of their multi-protocol/multi-vendor compatible VoIP services (*1). The services for interconnection among carriers/Internet Telephony Service Providers (ITSPs), which target to start from October 10 use different types of protocols and VoIP equipment. NEC will provide multi-protocol/multi-vendor VoIP Solution to customers with flexible migration from existing network assets. The global VoIP market *2 has been growing rapidly and it is expected that IP telephony *3 will become the next generation network (NGN). However difficulties in interconnection among different VoIP protocols and vendor equipment, have been a major obstacle in the service development of VoIP. NTT Communications Clearinghouse (NTT-CH) provided by NTT-WT will offer new VoIP clearinghouse service, which eliminates this barrier and will also provide interconnection with a number of carriers/ITSPs. To realize this service, NEC, as a system integrator, has partnered with TransNexus, Inc.and MediaRing, the leading provider of secure, open interconnected solutions, to provide the NTT-CH. In this partnership, NEC supports VoIP protocol conversion, such as H.323 *4 and session initiation protocol (SIP *5), and the open settlement protocol (OSP *6) which has been specified by TIPHON *7 project. Hans van der Veer (Lucent Technologies) who is Chair of TIPHON said, "NEC is powerful VoIP equipment vender with a worldwide presence. We are pleased that NEC becomes solution provider of OSP. This is a clear sign of the market acceptance of the VoIP related specifications of TIPHON." NEC has a full line-up of VoIP solutions, with varieties of products ranging from Infrastructure Server "CX6800", Call Agent "CX6800-CA", Gate Keeper "CX6800-GK" and Media Gateway "CX3200". NEC intends to further expand VoIP solution business to international telecom carriers, ISPs and private companies under multi-protocol/multi-vendor environment experienced by the systems construction of Clearinghouse service. Note: *1 Multi-protocol/multi-vendor compatible VoIP service This offers compatibility between equipment for different call- control protocols, such as H.323 and SIP. The service aims to realize connection with media gateway control protocol (MGCP) and media gateway control (MEGACO) in the coming future. *2 VoIP market The market in 2001 was worth 9,634 million minutes of traffic, an 81.5 percent increase from the previous year (source: TeleGeography, Inc.; 2002). *3 IP telephony General term for voice and facsimile services using IP (Internet protocol). VoIP refers to technology used to transmit voice via packets. Voice will be made into packets using VoIP gateway. The service is also named Internet telephony, net telephone or computer telephony depending on terminals and transmission networks. *4 H.323 The ITU Telecommunication Standardization Sector (ITU-T) standard for sending voice, data and video via IP-based networks, including the Internet. *5 SIP Text-based application-layer control protocol for setting up call-control of telephones over the IP network. It has been standardized as RFC2543 at the Internet Engineering Task Force (IETF). *6 TIPHON (Telecommunications and Internet Protocol Harmonization Over Network) Technical project under the ETSI to study specifications to transmit voice over IP networks. *7 OSP Inter-carrier protocol to manage user authentication and settlement in VoIP systems. In order to realize VoIP service between multiple carriers, it is necessary to transmit authentication and settlement information. Study is progressing under ETSI TIPHON. NEC Corporation - http://www.nec.com- is one of the world's leading providers of Internet, broadband network and enterprise business solutions dedicated to meeting the specialized needs of its diverse and global base of customers. Ranked as one of the world's top patent-producing companies, NEC delivers tailored solutions in the key fields of computer, networking and electron devices, through its three market-focused, in-house companies: NEC Solutions, NEC Networks and NEC Electron Devices. NEC Corporation employs more than 140,000 people worldwide and had net sales of approximately $39 billion in the fiscal year ended March 2002. 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 further information, please visit the Nippon Telegraph and Telephone home page at: www.ntt.com/index-e.html For more information, contact Akiko Shikimori of NEC Corporation at telephone +81 3 3798-6511, or via e-mail at a- shikimori@ay.jp.nec.com. SHOWA SANGYO: JCR Assigns BBB+ Rating ------------------------------------- Japan Credit Rating Agency (JCR) has assigned BBB+ rating to Showa Sangyo Co. Limited to the following senior debts, affirming the J-2 rating on the CP program. CP Maximum: Y20 billion Backup Line: 0 percent Showa Sangyo, established in 1936, is a diversified food processor, engaging in flour milling, oils & fats, foods, feed stuffs and glucose. The flour milling operation represents 20 percent of the total sales. It is also engaged in warehousing and business development using the old factory sites. Amid the deteriorating business environment of foods as a whole, contributions of warehousing and business development to the earnings of the Company are increasing. The warehousing and business development divisions will produce good earnings, shoring up the overall earnings of the Company. Although the flour milling's earnings are low, they are stable while earnings of frozen foods and foods are improving due to the restructuring measures. On the other hand, oils & fats and glucose businesses whose earnings had been relatively high decreasing the profits due to rise in prices of raw materials and low unit prices. It is recognized that the problem lies in the extremely fierce competition of the industry. Shakeup is under way in the industry. Showa Sangyo plans to take independent path amid the shakeup of the industry in order to take advantage of the business diversification, however. Pace of improvement in the financial structure slowed down due to the capital spending for the enhancement of the production capacity of glucose and silo. The interest-bearing debt, however, will likely decline, peaking out in fiscal 2002, given reduction in the capital expenditures and sell-off of the securities. According to Wright's Investors Service, at the end of 2002, Showa Sangyo Co Ltd had negative working capital, as current liabilities were 74.79 billion while total current assets were only 51.92 billion. ========= K O R E A ========= DAEWOO MOTOR: Expects Early Exit From Debt Workout Plan ------------------------------------------------------- Daewoo Motor Sales Corporation (DMSC) may end its debt workout program this year after posting profits for three years, Reuters reported Tuesday, citing DMSC Chief Executive Officer Lee Dong- ho. The Company posted first half earnings to around 50 billion won this year, versus 22 billion won a year earlier. DMSC underwent restructuring after the 1997-98 Asian crisis, which led to the collapse of its parent Daewoo Group and ultimately an agreement under which a General Motors-led joint venture agreed to revive key assets of the carmaker. TCR-AP reported in September that Daewoo Motor Sales Corporation would sell asset-backed securities (ABS) valued at 51.7 billion won on account receivables worth 52.8 billion won as underlying assets. The unit of bankrupt carmaker Daewoo Motor also sold ABS worth 97.1 billion won in March this year. DAEWOO MOTOR: Will Enter Auto Leasing Market -------------------------------------------- Daewoo Motor Sales Co. will enter the auto leasing market in partnership with LG Card, LG Insurance and Seoul Auto Auction on October 8, according to the Maeil Business Newspaper. The unit of bankrupt carmaker Daewoo Motor can earn money by leasing vehicles to customers on a monthly basis, while also providing insurance and maintenance services. Under the auto leasing services, customers will be able to drive a new car with lowered expenses. Daewoo intends to acquire a 50 percent stake of the domestic market by early 2003. DAEWOO MOTOR: UK Unit Goes Into Administration ---------------------------------------------- Daewoo Cars UK has been placed into administration, a step that puts 450 jobs at risk, Reuters reported. Ernst & Young has been appointed as administrators of the Daewoo Motor subsidiary. GM Daewoo, the new owners of the Daewoo brand, said they planned to launch a new GM Daewoo UK sales organization pending final negotiations with GM Daewoo and other parties in Korea. HYNIX SEMICON: Targets 5-7% DDR Chip Price Hike ----------------------------------------------- Hynix Semiconductor and Samsung Electronics Co. are targeting a 5 percent to 7 percent price hike for double date rate (DDR) chips, Dow Jones and the Korea Herald reported Wednesday. If successful, the price of 256Mb DDR chips is expected to rise to $7.50 from the current $6 to $7. According to industry Web site DRAMeXchange, 256Mb DDR chips averaged $6.72 each. DebtTraders reports that Hyundai Semiconductor's 8.625 percent bond due in 2007 (HYUS07KRA1) trades between 60 and 65. For real-time bond pricing, go to http://www.debttraders.com/price.cfm?dt_sec_ticker=HYUS07KRA1 KOREA ELECTRIC: Expects to Receive LOI For Shares in Power Unit --------------------------------------------------------------- The Korea Electric Power Corporation (KEPCO) expects to receive letters of intent (LOI) from investors by November 8 for a stake in its unit Korea South-East Power Co., according to Dow Jones. The Company was planning to sell a 34 percent-51 percent stake in its wholly owned unit as part of the government's efforts to privatize state companies. Kepco will shortlist suitable investors and select a prime bidder by early next year at the latest. =============== M A L A Y S I A =============== IDRIS HYDRAULIC: KLSE Withdraws Acquisition Approval ---------------------------------------------------- The Board of Idris Hydraulic (Malaysia) Bhd (IHMB) said in a disclosure to the Kuala Lumpur Stock Exchange that Bank Negara Malaysia (BNM) had vide its letter dated 2 October 2002 withdrawn the approval given earlier for Tahan Insurance Malaysia Berhad, a wholly owned subsidiary of IHMB to acquire Malaysia & Nippon Insurans Berhad. However, the Management of Tahan is in the midst of appealing to BNM for the said acquisition to take place. TCR-AP reported early this month that the Foreign Investment Committee and the Securities Commission had granted approval for the IHMB's revised Proposed Restructuring Exercise, which includes a Capital Reconstruction, Corporate Restructuring and Debt Reconstruction. KUALA LUMPUR INDUSTRIES: Annual Report Due Oct 15 ------------------------------------------------- Kuala Lumpur Industries Holdings Berhad said that the Kuala Lumpur Stock Exchange has vide their letter dated 4 October 2002 approved the Company's application for an extension of time until 15 October 2002 for the submission of the Annual Report for the financial year ended 31 March 2002. The Company was unable to release the Annual Report by the deadline stipulated by paragraph 9.23(a) of the Listing Requirements of the Kuala Lumpur Stock Exchange as The People's Insurance Company (Malaysia) Berhad (PICM), a wholly owned subsidiary of the Company which was sold to Talasco Insurance Berhad after the financial year end, had delayed in finalizing its audited financial statements for the financial year ended 31 March 2002. The Company received the audited financial statements of PICM at the end of August 2002. Earlier this month, the TCR-AP reported that the Securities Commission has approved the Company's Proposed Corporate and Debt Restructuring Scheme. PANCARAN IKRAB: Enters MoU With Dijaya Shareholders --------------------------------------------------- Public Merchant Bank Berhad (PMBB), on behalf of the Board of Pancaran Ikrab Berhad (PIB), wishes to announce that the Company had on 8 October 2002 entered into a MOU with shareholders of the following companies to acquire the following: (i) the entire issued and paid-up share capital of Dijaya Ceil Sdn Bhd (DCSB) of RM4,000,000 comprising 4,000,000 ordinary shares of RM1.00 each; (ii) the entire issued and paid-up share capital of Dijaya Ceil Imex Sdn Bhd (DCISB) of RM1,500,000 comprising 1,500,000 ordinary shares of RM1.00 each; (iii) the entire issued and paid-up share capital of Ceiling Decor Pte Ltd (CDS), a company incorporated in Singapore, of SGD2.00 comprising 2 ordinary shares of SGD1.00 each; and (iv) the entire issued and paid-up share capital of Bueno Manufacture (Shanghai) Co. Ltd (BMS), a company incorporated in Shanghai, China, of US$850,000 comprising 850,000 ordinary shares of US$1.00 each. ((i) to (iv) above are collectively known as the Proposed Acquisitions; the shareholders of DCSB, DCISB, CDS and BMS are collectively known as the Vendors; and DCSB, DCISB, CDS and BMS are collectively known as the Acquiree Companies). PIB further intends to propose and implement a restructuring scheme (Proposed Restructuring Scheme) to regularize its financial position, comprising, inter-alia, the following inter- conditional proposals: (i) Proposed Acquisitions; (ii) Proposed capital reduction and consolidation; and (iii) Proposed debt settlement. 1. SALIENT TERMS OF THE MOU The salient terms of the MOU are as follows: (i) The purchase consideration for the Acquiree Companies will be approximately RM120,000,000 to be satisfied by way of issuance of 120,000,000 ordinary shares of RM1.00 each in Newco, a company to be incorporated as a term in the sale and purchase agreement (SPA) to be executed later to facilitate the Proposed Restructuring Scheme. The purchase consideration for the Acquiree Companies may be adjusted upon the finalization of the SPA to be executed later and in accordance with the condition(s) as may be imposed by the Securities Commission (SC); (ii) The shares of the Acquiree Companies shall be acquired by Newco free from all charges, liens, pledges, mortgages, trusts and other encumbrances with all rights, benefits and entitlements attached thereto; (iii) The execution of the SPA shall be conditional upon the following having been complied with by the Vendors: (a) the Vendors having provided to PIB and its advisers full, sufficient, relevant and critical information and data in respect of the Acquiree Companies and/or of their business and assets and PIB and its advisers having assessed and evaluated to their satisfaction that such business and assets are suitable, relevant and meet the criteria of the SC for the Proposed Restructuring Scheme; and (b) the Vendors having agreed to provide a joint and several profit guarantee in favor of Newco, guaranteeing the forecasts and projected profits of the Acquiree Companies and/or their assets for a specified term; (iv) The following terms and conditions shall constitute part of the SPA to be executed for the Proposed Acquisitions:- (a) the execution of a debt settlement agreement with the creditors of PIB; (b) obtaining all relevant approvals of the authorities in relation to the Proposed Restructuring Scheme; (c) PIB being satisfied with the results of PIB's investigation into the legal, financial, contractual, tax and trading position and prospects of the Acquiree Companies and the Acquiree Companies' rights and title to its assets; and (d) Any other consents and/or approvals, if any for the Proposed Acquisitions; (v) The Vendors are required to comply with the moratorium condition imposed by the SC in respect of the Proposed Restructuring Scheme; (vi) Upon the execution of a formal SPA, the MOU shall be deemed to be terminated and all obligations and liabilities of PIB and the Vendors shall ceased to have any effect and neither parties shall have any claims against each other for costs, damages, compensation or otherwise suffered or incurred; (vii) Either party may terminate the MOU by giving notice in writing to each other provided that such termination must be founded on reasonable grounds; and (viii) The parties shall finalize and execute the SPA by 15 October 2002 or such other date as the parties may mutually agree, failing which the MOU shall automatically become null and void and of no legal effect and neither parties shall have any claims against each other. 2. INFORMATION ON THE ACQUIREE COMPANIES DCSB is a company incorporated in Malaysia under Companies Act, 1965 on 8 November 1996 with an authorized share capital of RM10,000,000 comprising 10,000,000 ordinary shares of RM1.00 each. The issued and paid-up capital of DCSB is RM4,000,000 comprising 4,000,000 ordinary shares of RM1.00 each. DCSB is principally engaged in commercial installation of ceiling and partitioning works for commercial complexes, government buildings, hotels, hospitals and others. DCISB is a company incorporated in Malaysia under Companies Act, 1965 on 28 January 1999 with an authorized share capital of RM5,000,000 comprising 5,000,000 ordinary shares of RM1.00 each. The issued and paid-up capital of DCSB is RM1,500,000 comprising 1,500,000 ordinary shares of RM1.00 each. DCISB is principally engaged in the distribution and wholesale of ceiling and partitioning products to contractors and resellers. CDS is a company incorporated in Singapore on 16 July 2002 with an authorized share capital of S$500,000 comprising 500,000 ordinary shares of S$1.00 each. The issued and paid-up capital of CDS is S$2.00 comprising 2 ordinary shares of S$1.00 each. CDS is principally engaged in installation of ceiling and partitioning works for private sector, commercial, housing and government projects in Singapore and in distribution and wholesale of ceiling and partitioning products to contractors and resellers. BMS is a company incorporated in Shanghai, China on 18 June 2001 with a registered share capital of US$1,000,000 comprising 1,000,000 ordinary shares of US$1.00 each. The issued and paid- up capital of BMS is US$850,000 comprising 850,000 ordinary shares of US$1.00 each. BMS is principally engaged in the manufacture and distribution of rolled form steel products for ceiling and partitioning. The full details of the Proposed Restructuring Scheme will be announced upon its finalization. SUNWAY HOLDINGS: Sunway Credit Unit Enters into Lease Agreement --------------------------------------------------------------- Pursuant to Chapter 10, Paragraph 10.08 of the Listing Requirements, Sunway Holdings Incorporated Berhad (SUNINC) wishes to inform the Kuala Lumpur Stock Exchange that its wholly owned subsidiary Sunway Credit & Leasing Sdn Bhd (SCL) has entered into a Lease Agreement to grant a leasing facility amounting to RM25,585/- to Menara Sunway Sdn Bhd (MSW), a 51 percent owned subsidiary of Suninc. Sunway City Berhad (Suncity) owns the remaining 49 percent. SCL is a wholly owned subsidiary of Suninc with an authorized and paid-up share capital of RM10,000,000/- and RM8,500,000/- respectively. Its principal activity is providing financing through leasing, hire-purchase, money lending and share financing. MSW is a 51 percent owned subsidiary of Suninc with an authorized and paid-up share capital of RM50,000,000/- and RM33,480,000/- respectively. Its principal activity is management and letting properties. The remaining 49 pc is owned by Suncity. SALIENT TERMS OF THE AGREEMENT The leasing facility of RM25,585/- is in respect of the lease of server and its related accessories for a term of 36 months and bears a flat interest rate of 5.5 percent per annum. The above terms of the agreement are the prevailing market quoted terms, which are not more favorable to the related party than those generally available to the public. FINANCIAL EFFECTS OF THE TRANSACTION The leasing facility will not have any material effect on the net tangible assets and earnings of Suninc. APPROVAL REQUIRED The above transaction does not require the approval of shareholders or any authorities. DIRECTORS' AND MAJOR SHAREHOLDERS' INTERESTS Tan Sri Dato' Seri Dr Cheah Fook Ling who is a major shareholder of Suninc, has deemed interest in SCL. He also has deemed interest in MSW via Suninc. Tan Sri Dato' Seri Dr Cheah Fook Ling is also a director and major shareholder of Suncity. Accordingly, Tan Sri Dato' Seri Dr Cheah Fook Ling has abstained from all Board deliberations of Suninc pertaining to the transaction. Save as disclosed above, none of the other directors or major shareholders of Suninc or persons connected with them has any interest, direct or indirect, in the aforesaid transaction. STATEMENT BY BOARD OF DIRECTORS The directors (save and except for Tan Sri Dato' Seri Dr Cheah Fook Ling) are of the opinion that the transaction is in the best interest of the Group. TECHNOLOGY RESOURCES: Posts Notice of Tan Poh Keat's Interest ------------------------------------------------------------- Technology Resources Industries Berhad (TRI) refers to their announcement released on 11 September 2002 pertaining to the appointment of Mr Tan Poh Keat as its Director. Pursuant to Paragraph 9.19(18) of the Kuala Lumpur Stock Exchange Listing Requirements and Section 135 of the Companies Act, 1965, TRI wishes to inform that, further to the Notice of Director's Interest given by him, he holds 22,000 Ordinary Shares of RM1.00 each in TRI. TONGKAH HOLDINGS: KLSE Approves Request for Extension of Time ------------------------------------------------------------- Public Merchant Bank Berhad (PMBB), on behalf of the Board of Directors of Tongkah Holdings Berhad (THB), wishes to inform that the Kuala Lumpur Stock Exchange (KLSE) had approved the Company's request for an extension of time from 6 September 2002 to 30 September 2002 for THB to announce its Requisite Announcement. On behalf of the Board, PMBB had on 30 September 2002, announced to the KLSE of its plan to regularize the financial condition of the Company. Early this month, TCR-AP reported that THB entered into a Master Agreement for the purposes of giving effect and implement a proposed restructuring scheme to regularize its financial condition. ===================== P H I L I P P I N E S ===================== PHILIPPINE LONG: Responds to "Boardroom Brawl Brewing" Report ------------------------------------------------------------- Philippine Long Distance and Telephone Co. responded to the news article "Boardroom brawl brewing at PLDT" which appeared in October 9 issue of the Philippine Daily Inquirer, an overwhelming majority of the members of the Board of Directors of PLDT, including the independent directors, has authorized the issuance of the statement below. "We remain fully united in our continuing support of the Company's President & CEO Manuel V. Pangilinan, and his leadership and efforts to revitalize and strengthen the operations and financial position of the Company. Consistent with the Company's strategy to create value for all the Company's shareholders, the Compoany, under the able leadership of Pangilinan and the efforts of the management team completed its liability management program, and remains focused on delivering strong operating results. We encourage the Company's management team and employees not to be affected and distracted by the irresponsible acts of certain sectors, which unfortunately have been dignified in newspaper reports, aimed at discrediting Pangilinan, portraying our Board as being in discord, and fomenting distrust among the members of the Board. PHILIPPINE LONG: Singapore-Based Investors to Buy 24.4% Stake ------------------------------------------------------------- A group of Singapore-based investors offered to acquire the controlling 24.4 percent stake of First Pacific Co Ltd in Philippine Long Distance Telephone Co (PLDT), the Philippine Star reported. The group, which was not identified, initially presented the offer to PLDT President and First Pacific executive chairman Manuel Pangilinan, who considers the offer "too low." The paper said this offer, together with "other offers," will be presented to First Pacific. Yesterday, PLDT Vice President and spokesman Menardo Jimenez Jr said a number of groups "wish to make an offer" for First Pacific's PLDT stake. Jimenez said Pangilinan was not part of any of these groups, which he also did not identify. The original investors planning to buy into PLDT, the Gokongweis, have withdrawn their offer after First Pacific failed to ensure the Gokongweis access to PLDT records for due diligence. (M&A REPORTER-ASIA PACIFIC, Vol. No.1, Issue No. 200, October 09, 2002) STENIEL MANUFACTURING: In Debt Restructuring Talks With Banks ------------------------------------------------------------- Steniel Manufacturing Corporation is negotiating with creditor banks for the restructuring of its P851.5 million in loans ahead of the October 10, 2002 deadline for its payment, the Philippine Star reported Wednesday. The Company received a notice of default on September 30 declaring the entire amount due and payable on or before October 10, as stipulated in the November 10, 2000 omnibus agreement entered with the various lender banks. Metro Pacific Corporation holds 72 percent in Steniel before it was sold to the regional investment firm CVC Asia Pacific Limited for P425.5 million. MPC sold Steniel in line with its asset rationalization program and debt management plan. UNITRUST DEVELOPMENT: PBCom Open to Re-Bidding Participation ------------------------------------------------------------ The Philippine Bank of Communication (PBCom) is still open to participate in the re-bidding for the rehabilitation of Unitrust Development Bank, renewing its interest in the closed bank, Business World reported. Moreover, the source said PBCom is also questioning the decision of the Philippine Deposit Insurance Corp. (PDIC) to reopen the bidding process to other proponents. PBCom officials were not available for comment. PBCom had earlier been awarded the responsibility to rehabilitate Unitrust. Shareholders of the closed bank, however, refused to give their support to PBCom's proposal. The PDIC then decided to reopen the bidding for Unitrust. Since the deposit insurer's announcement, only Citystate Savings Bank has formally turned in its proposal to take over Unitrust. 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. (M&A REPORTER-ASIA PACIFIC, Vol. No.1, Issue No. 200, October 09, 2002) ================= S I N G A P O R E ================= CHARTERED SEMICONDUCTOR: Completes Rights Offering -------------------------------------------------- Chartered Semiconductor Manufacturing has closed its eight-for- ten rights offering on October 7, 2002 and it expects to issue a total of approximately 1,109.6 million new ordinary shares. As expected, gross proceeds from the offering were approximately S$1,110 million. At the current exchange rate of US$1.00 to S$1.79, this translates to approximately US$620 million. As of the close of the Rights Offering, a total of approximately 716.4 million new ordinary shares (directly or in the form of ADSs), representing approximately 64.6 percent of the total number of approximately 1,109.9 million new ordinary shares offered under the Rights Offering, were subscribed for an aggregate subscription price of approximately US$400 million (approximately S$716 million). These subscriptions consist of: Acceptances for a total of approximately 715.1 million new ordinary shares pursuant to the exercise of primary ordinary share rights; and Applications for a total of approximately 1.4 million new ordinary shares pursuant to the exercise of secondary ordinary share rights. Included in the above are subscriptions by Singapore Technologies Pte Ltd and Singapore Technologies Semiconductors Pte Ltd, Chartered's two largest shareholders, for a total of approximately 671.3 million new ordinary shares, representing approximately 60.5 percent of the total number of new ordinary shares offered under the Rights Offering, for an aggregate subscription price of approximately US$375 million (approximately S$ 671 million) pursuant to their pre-commitments to the Company. Merrill Lynch (Singapore) Pte Limited will purchase a total of approximately 393.2 million unsubscribe new ordinary shares, representing approximately 35.4 percent. of the total number of new ordinary shares offered under the Rights Offering, for an aggregate purchase price of approximately US$220 million (approximately S$393 million). As part of the Rights Offering, approximately 259,000 rights, representing approximately 0.02 percent. of the total number of new ordinary shares offered under the Rights Offering, were allocated in respect of ordinary shares (directly or in the form of ADSs) issued between September 1, 2002 and the ordinary share books closure date and the ADS record date, as the case may be. Not all of the new ordinary shares underlying these rights are subscribed for as of the close of the Rights Offering. Definitive ADS Subscription Price The Company further announces that the definitive subscription price per new ADS is US$5.58 (which is the U.S. dollar equivalent of the ordinary share subscription price of S$1.00, multiplied by ten, based on the noon-buying rate in New York for cable transfers in Singapore dollars as certified for customs purposes by the Federal Reserve Bank of New York on October 7, 2002, the close of the Rights Offering). As the Definitive ADS Subscription Price is lower than the US$6.00 per ADS exercise price that each exercising ADS holder has paid to Citibank, N.A., the ADS rights agent, on subscription or application (to account for possible exchange rate fluctuations), the ADS rights agent will refund as soon as possible the aggregate excess in U.S. dollars to each relevant ADS holder, without interest arising there from. Delivery and Listing of Shares The Company expects to allot, issue and deliver a total of approximately 1,109.6 million new ordinary shares subscribed for pursuant to the Rights Offering and to receive the aggregate net proceeds of approximately US$612 million (approximately S$1,095 million) in respect of such new ordinary shares on or about October 10, 2002. The Company further expects that the new ordinary shares will be listed and quoted on the Singapore Exchange Securities Trading Limited with effect from 9.00 a.m. (Singapore time) on October 11, 2002 and the new ADSs will be listed and quoted on NASDAQ National Market with effect from 9.00 a.m. (New York City time) on October 11, 2002. Chartered Semiconductor Manufacturing www.charteredsemi.com, one of the world's top three silicon foundries, is forging a customized approach to outsourced semiconductor manufacturing by building lasting and collaborative partnerships with its customers. The Company provides flexible and cost-effective manufacturing solutions for customers, enabling the convergence of communications, computing and consumer markets. In Singapore, Chartered operates five fabrication facilities and has a sixth fab in the process of being developed as a 300mm facility. A Company with both global presence and perspective, Chartered is traded on both the Nasdaq Stock Market and on the Singapore Exchange. Chartered's 4,000 employees are based at 12 locations around the world. CONTACT: Chartered Semiconductor Manufacturing Investor Contacts: Suresh Kumar, 408/941-1110 sureshk@charteredsemi.com Clarence Fu, (65) 6360.4060 cfu@charteredsemi.com Media Contacts: Chartered U.S. Tiffany Sparks, 408/941-1185 tiffanys@charteredsemi.com Chartered Singapore: Maggie Tan, (65) 6360.4705 tanmaggie@charteredsemi.com CHEW EU: Posts Notice of Extraordinary General Meeting ------------------------------------------------------ The Extraordinary General Meeting of the Chew Eu Hock Holdings Limited will be held at 58 Kallang Pudding Road, CEH Industrial Building, Singapore 349330 on 24 October 2002 at 9.30 a.m. for the purpose of considering and, if thought fit, passing with or without any modification, the following resolution which will be proposed as an ordinary resolution: ORDINARY RESOLUTION: APPOINTMENT OF NEW AUDITORS That Ernst & Young, Certified Public Accountants, Singapore be and are hereby appointed Auditors of the Company in place of the resigning Auditors, Arthur Andersen, to hold office until the conclusion of the next Annual General Meeting, at a remuneration to be agreed between the Directors and Ernst & Young." Explanatory Notes: The current Auditors, Arthur Andersen has given notice to the Directors of their intention to resign as Auditors of the Company. The Directors would recommend and propose to members the appointment of Ernst & Young as the new Auditors in place of Arthur Andersen at the Extraordinary General Meeting to hold office until the conclusion of the next Annual General Meeting of the Company. Ernst & Young have consented to be appointed as Auditors of the Company. Upon the appointment of Ernst & Young at the Extraordinary General Meeting, Arthur Andersen's resignation as Auditors of the Company will take effect. NOTES: A member of the Company entitled to attend and vote at the Extraordinary General Meeting is entitled to appoint not more than two proxies to attend and vote in his stead. A proxy need not be a member of the Company The instrument appointing a proxy must be lodged at the registered office of the Company at 58 Kallang Pudding Road C.E.H. Industrial Building, Singapore 349330 not less than 48 hours before the time appointed for the Extraordinary General Meeting. TCR-AP reported that Chew Eu Hock Holdings Ltd posted a net loss S$35.325 million in the six months to January against a loss S$1.129 million a year earlier. FREIGHT LINKS: Plans Capital Reduction to Cut Losses ---------------------------------------------------- Beleaguered Freight Links Express Holdings is proposing to reduce the par value of its shares to one cent each to write off accumulated losses of $160.7 million as of April 30, the Straits Times reports. The firm also announced new capital injection in the form of a memorandum of understanding (MOU) it signed with Epiqa. The injection will result in a private placement of shares priced at two cents each for between 16.66 percent and 30.1 percent of the enlarged share capital. Freight Links posted a net loss of $73.2 million for the year ended April 30. SEMBCORP INDUSTRIES: SCM Privatization Proposal ----------------------------------------------- On June 24, 2002, SembCorp Industries Limited (SCI) announced the proposed privatization of SembCorp Marine Ltd (SCM) by way of a scheme of arrangement under Section 210 of the Companies Act, Chapter 50 (Scheme). Dealings The Securities Industry Council has ruled that the respective subsidiaries and associated companies of Temasek Holdings (Private) Limited and Singapore Technologies (Pte) Ltd and their respective directors are to be considered as associates of SCI in respect of the Scheme. Accordingly, pursuant to Rule 12 of the Singapore Code on Take-overs and Mergers, they are required to disclose their dealings in the ordinary shares of S$0.10 each in the issued share capital of SCM (Shares) as follows: Name: SingTel Investments Private Limited (Associate) Date of disposal: October 3, 2002 Number of SCM Shares disposed: 600,000 Consideration per SCM Share excluding brokerage, clearing fee and any applicable tax: S$1.085 Identity of the principal or associate or other person dealing and, if different, the ultimate beneficial owner or controller: For itself Resultant amount of SCM Shares owned or controlled by the Associate or other person in question and the percentage which it represents: Nil The Directors of SCI (including any who may have delegated detailed supervision of this Announcement) have taken all reasonable care to ensure that the facts stated in this Announcement are fair and accurate and that no material facts have been omitted from this Announcement, and they jointly and severally accept responsibility accordingly. Where any information has been extracted from published or publicly available sources, the sole responsibility of the Directors of SCI has been to ensure through reasonable enquiries that such information is accurately extracted from such sources or, as the case may be, reflected or reproduced in this Announcement. According to Wright Investors Service, SembCorp Industries Limited at the end of 2001 had negative working capital, as current liabilities were 2.95 billion Singapore Dollars while total current assets were only 2.56 billion Singapore Dollars. =============== T H A I L A N D =============== L.P.N. DEVELOPMENT: Restructures Debt With Creditors ---------------------------------------------------- L.P.N. Development PLC. in a disclosure to the Stock Exchange of Thailand said it had fully repaid its debts to its creditors. It said that the third quarter balance sheet as of September 30, 2002 will have no any further restructuring debt with the banks. Typically, the Bangkok-based property developer had repaid the debts pursuant to note no.25 of notes to financial statements for the each year ended June 30, 2002 and December 31, 2001 were Loan Restructuring Agreement No. 2, 3 and 4. TELECOMASIA CORP: Investors Subscribe to THB14.75B Bond 1st Day --------------------------------------------------------------- TelecomAsia Corp. PCL said institutional and retail investors subscribed to 14.75 billion baht of a planned THB21.75 billion bond issue Monday, the first day of a subscription period running to October 14. Investors oversubscribed to an initial THB4.4 billion offering of the floating- rate tranche, which is partially guaranteed by World Bank investment arm International Finance Corp. Pishnu Suntharanund, head of TelecomAsia's treasury department, told Dow Jones Newswires that a greenshoe option of THB2.35 billion will be fully allocated to bring the tranche up to the planned total THB6.75 billion. In this tranche, THB2.75 billion was allocated to institutional investors, and the remainder to retail investors. Retail investors also subscribed to a little more than THB8 billion of an initial THB10-billion offering of 6.1% fixed-rate bonds maturing July 2008, despite heavy rain, flooding and related traffic congestion in Bangkok. Pishnu said TelecomAsia intends to exercise a THB5 billion greenshoe option for the fixed-rate tranche if subscriptions in the remainder of the period are sufficient. Issuance of both tranches is set for October 15. The floating-rate bonds mature February 2011, and will pay a floating rate equivalent to the average of major commercial banks' prime lending rate. The proceeds will be used to retire all of the company's dollar- denominated debt. The company has said it plans to convert all of its foreign currency- denominated debt into baht by the end of 2002. Lead underwriters for the issue are Merrill Lynch Phatra Securities Ltd., Bangkok Bank PCL, Krung Thai Bank PCL, Siam Commercial Bank PCL and Thai Farmers Bank PCL. TCR-AP reported in September that TelecomAsia's board approved a recapitalization plan, which includes a capital increase of up to THB 6.2 billion. The proceeds from the capital increase will be used to significantly reduce outstanding debt, estimated at THB73 billion as of December 2001. THAI PETROCHEMICAL: Court Moves Debt Case Hearing to November ------------------------------------------------------------- Thailand's bankruptcy court had delayed until November a hearing on whether a firm representing creditors of Thai Petrochemical Industry Plc (TPI) will be removed as its debt planner, after a Tuesday hearing failed to reach a decision, Reuters reported. Judge Kamol Teeravetponkul said the court would hold a hearing on the case from November 5 until December 17. He declined to elaborate on the reason for the delay. Analysts say the removal of Effective Planners could disrupt the restructuring of Southeast Asia's biggest integrated petrochemical plant and dampen investor confidence in Thailand. TPI founder Prachai Leophairatana petitioned the court for the removal of Effective Planners after it failed to meet a December 2001 deadline to sell $200 million in non-core assets to repay debt. Effective Planners is also seeking the approval of all creditors, including Bangkok Bank, Citibank and Bank of America, to delay the non-core assets sale plan until March 2003. TPI's creditors are due to vote the issue on October 18, after several delays. TPI has been restructuring $3.8 billion of debt since 2000, by swapping debt for equity and re-scheduling loan repayments and selling non-core assets, which include a 143-MW power plant, a 49 percent stake in cement company TPI Polene Plc and gasoline stations, port facilities and real estate. * DebtTraders Real-Time Bond Pricing ------------------------------------ Issuer Coupon Maturity Bid - Ask Weekly change ------ ------ -------- --------- ------------- Asia Pulp & Paper FRN due 2001 11.5 - 12.5 0 Asia Pulp & Paper 11.75% due 2005 31 - 32 0 APP China 14.0% due 2010 29 - 31 0 Asia Global Crossing 13.375% due 2006 19 - 21 -1 Bayan Telecom 13.5% due 2006 18 - 20 0 Daya Guna Sumudera 10.0% due 2007 3 - 5 0 Hyundai Semiconductor 8.625% due 2007 66 - 69 0 Indah Kiat 11.875% due 2002 36 - 37 +3 Indah Kiat 10.0% due 2007 27.5 - 29.5 0 Paiton Energy 9.34% due 2014 70 - 75 0 Tjiwi Kimia 10.0% due 2004 27 - 29 0 Zhuahi Highway 11.5% due 2008 35 - 37 0 Bond pricing, appearing in each Thursday's edition of the TCR- AP, is provided by DebtTraders in New York. DebtTraders is a specialist in global high yield securities, providing clients unparalleled services in the identification, assessment, and sourcing of attractive high yield debt investments. For more information on institutional services, contact Scott Johnson at 1-212-247-5300. To view our research and find out about private client accounts, contact Peter Fitzpatrick at 1-212-247-3800. Real-time pricing available at www.debttraders.com 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 ***