/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/021021.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Monday, October 21, 2002, Vol. 5, No. 208 Headlines A U S T R A L I A COLES MYER: Lew Wants Board to Visit More Stores COOGI AUSTRALIA: Cuts 200 Jobs in Manufacturing Closure TELEVISION & MEDIA: Shares Halted After Director Resignation C H I N A & H O N G K O N G CHINA EVERBRIGHT: Dissolves Standard Life Assurance JV EURO-ASIA AGRICULTURAL: Facing Cash Flow Woes GUANGZHOU PAPER: Selling Assets to Cut Debt HOPLIK CARTON: Winding Up Petition Slated for November JIBSEN CEROILS: Hearing of Winding Up Petition Set MARUZEN JUKEN: Facing Winding Up Petition NEW WORLD: Chairman Mum on Group Restructuring Rumors NORTHEAST ELECTRICAL: Resumes Share Trading in Hong Kong PAK KUT INVESTMENT: Winding Up Petition Set for November 6 RAINBOW COSMETIC: Winding Up Petition Pending I N D O N E S I A ASURANSI JIWA: Public Awaits Result on Probe of Manulife Judges BANK NEGARA: Delays $100M Bond Offering After Bali Attack J A P A N DAIEI INC.: Creditors Aim to Take Half of Loans FUJITSU LTD: 1,100 Employees Return Retirement Applications JAPAN METALS: Denki Kagaku Acquires Fertilizer Unit MONEX INC.: Posts First-half Loss of JPY828M TAKASHIMA CO.: Incurs First-half Net Loss of JPY219M TOBU STORE: Posts Net Loss of JPY75M in First Half TOKYU STORE: Returns to the Black With JPY1.17B Profit K O R E A ASIANA AIRLINES: Faces US$750,000 Fine for US Domestic Service DAEWOO MOTOR: DMSC Buys 11.12% in GMDAT Stake DAEWOO MOTOR: GM, Partners Complete Asset Transfer DAEWOO MOTOR: GMDAT to Start Operation on October 28 HYNIX SEMICONDUCTOR: Expects to Post W500B Net Loss in 3Q LG ELECTRONICS: Swings Back to Profit M A L A Y S I A BESCORP INDUSTRIES: Still in Payment Default BRIDGECON HOLDINGS: Restructuring Proposals Get Approval CM CORP.: Malaysian Authorities Raid Offices PAN MALAYSIAN: Divests Hikari Builders Business PANCARAN IKRAB: Clarifies Date of Trading Suspension RENONG BERHAD: Ex-Chairman Objects to MYR400M Share Issue Plan SENG HUP: Names New Audit Committee Chairman SIN HENG CHAN: FIC Gives Nod on Restructuring Scheme Proposal SPORTMA CORPORATION: Defaults in RM223.57M Payment SRI HARTAMAS: Moratorium Extended to October 17 TECHNOLOGY RESOURCES: Sues Chief, Ex-directors to Recoup $15M P H I L I P P I N E S DIGITAL TELECOM: Agrees to Restore Interconnection With PT&T EASYCALL COMMUNICATIONS: Halting Paging Operations Next Month MANILA ELECTRIC: Will Not Meet Profit Ratio S I N G A P O R E ALEXANDRA HOLDINGS: Faces Delisting From SGX-ST ASIA PULP: Bondholders Meet to Discuss Company Restructuring DATACRAFT ASIA: Appoints Bill Padfield as New CEO INTRACO LIMITED: Appoints Audit Committee Member LKN-PRIMEFIELD: Bondholders Appoint KPMG as Financial Adviser MPH LIMITED: Appoints Administrator to Assess French Unit T H A I L A N D KRUNG THAI: NPL Up at 8.08% in September SIKARIN PLC: Appoints New Board Directors THAI CANE PAPER: Siam Cement Denies Interest in Paper Company UOB RADANASIN: Third-Quarter Loss Narrows to THB8.88M - - - - - - - - ================= A U S T R A L I A ================= COLES MYER: Lew Wants Board to Visit More Stores ------------------------------------------------ As part of his campaign for reelection to the board of ailing retailer Coles Myer Ltd., dissident director Solomon Lew proposed Friday that the company's board members be required to undertake at least 20 visits a year to the group's stores. According to a Dow Jones Newswires report, Lew also proposed the board should visit stores within the retailer's major brands at least four times annually. Last week, TCR-AP reported that Solomon Lew, through his company Premier Investments, has increased his stake in Coles Myer to 7.4 percent, with a recent purchase of 18 million shares worth $115 million. The move will give Lew more voting power at the annual general meeting in November, where 8 out of ten members of the board is trying to oust him. COOGI AUSTRALIA: Cuts 200 Jobs in Manufacturing Closure ------------------------------------------------------- Knitwear company, Coogi, will close its Australian manufacturing operations in November, with more than 200 Melbourne staff affected, ABC News reports. Twenty staff has already been made redundant as the company, which went into voluntary administration in July with debts of $25 million, begins winding down. Administrator George Georges says the Australian operations is closing because he failed to secure a buyer. TELEVISION & MEDIA: Shares Halted After Director Resignation ------------------------------------------------------------ Shares in Television & Media Services Ltd (TMS) were placed in a trading halt on Friday following the resignation of director Frank Burke. The shares were last traded at 5.2 cents on Thursday ahead of the trading halt. The company's shares will remain on a trading halt until early Tuesday unless it releases statement before, the news agency said. TMS, which owns Val Morgan cinema advertising, warned two weeks ago there was "significant uncertainty" whether the company would survive. The group's share price dived after it reported a A$77.1 million ($42.4 million) year loss due to hefty cinema advertising writedowns. ================================ C H I N A & H O N G K O N G ================================ CHINA EVERBRIGHT: Dissolves Standard Life Assurance JV ------------------------------------------------------ China Everbright, the mainland-backed financial services conglomerate, has dissolved its JV with Standard Life Assurance in Hong Kong, as it wants to focus on operations in mainland, Dow Jones Newswires reported. In September, China Everbright said it had swung to a first half HK$204.88 million net loss. First-half turnover fell to HK$39.2 million from HK$119.11 million in the same period last year, while net losses from associate companies slumped to HK$150.78 million from last year's HK$216.81 million. China Everbright shares have lost more than 42 percent in the past three months. EURO-ASIA AGRICULTURAL: Facing Cash Flow Woes --------------------------------------------- Euro Asia Agricultural (Holdings), China's embattled orchid grower, is experiencing a "technical cash flow problem" due to the investigation of its chairman Yang Bin by Chinese authorities, Reuters reports. The company said it could not operate the bank accounts of Shenyang Euro-Asia Agriculture Development (SEAA), its main subsidiary in northern China, and nor could it remit foreign exchange to its Hong Kong office. China detained Yang to investigate alleged illegal business activities. The chairman has admitted to owing some 10 million yuan (US$1.2 million) in back taxes in Shenyang, although he said the bill was unrelated to his Hong Kong-listed firm. TCR-AP reported last week that creditor banks of Euro-Asia Agricultural were seeking repayment of HK$60 million (US$7.7 million) in loans in the wake of chairman Yang Bin's arrest for alleged illegal business activities. Hamburgische Landesbank last Tuesday gave Euro-Asia Agricultural 8 days to repay a HK$30 million lending facility, while Chiyu Banking Corporation is negotiating to arrange a repayment schedule for credit of HK$30 million. Euro-Asia shares will remain suspended from trading on the Hong Kong bourse until further notice. GUANGZHOU PAPER: Selling Assets to Cut Debt ------------------------------------------- The Guangzhou paper joint venture of China-backed Guangzhou Investment Co Ltd will sell its workshops and other assets to cut debts, Reuters reported. Guangzhou Paper Ltd, which is 51 percent held by Guangzhou Investment and 49 percent owned by Guangzhou Paper Holdings, will lease the assets back to continue the operation of its pulp and paper businesses, the report said. Guangzhou Paper agreed to sell the assets to Guangzhou Paper Holdings for 660 million yuan (US$79.7 million), to be satisfied by discharging liabilities equivalent to that amount owed to Guangzhou Paper Holdings. The transaction is subject to shareholder approval and if required, the consent of the company's creditors. The company expects to obtain consent by the end of November. HOPLIK CARTON: Winding Up Petition Slated for November ------------------------------------------------------ Hoplik Carton Paper Factory 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 9:30 am. Tam Yee Mei of Flat 16, 24/F., Yat Wing House, Yat Nga Court, Tai Po, New Territories, Hong Kong filed the petition last August 9, 2002. JIBSEN CEROILS: Hearing of Winding Up Petition Set -------------------------------------------------- The petition to wind up Jibsen Ceroils Company Limited is scheduled before the High Court of Hong Kong on November 13, 2002 at 10:30 am. Continental Enterprises Limited of 35th Floor United Centre, 95 Queensway, Hong Kong, filed the petition with the said court last September 5, 2002. MARUZEN JUKEN: Facing Winding Up Petition ----------------------------------------- Fort Crown Investments Limited, whose registered office is situated at Top Floor, Chinachem Golden Plaza, 77 Mody Road, Tsimshatsui East, Kowloon, Hong Kong, is seeking for the winding up of Maruzen Juken (H.K.) Limited. The petition was filed last August 20, 2002 at the High Court of Hong Kong, and will be heard before the said court on November 6, 2002 at 11:00 a.m. NEW WORLD: Chairman Mum on Group Restructuring Rumors ----------------------------------------------------- New World Development declined to comment on rumors that the company is planning to undertake a group restructuring involving its associates New World Infrastructure and Pacific Ports Co Ltd, AFX Asia reported. There are market rumors that New World Development will distribute to its shareholders a special dividend in the form of shares in New World Infrastructure. After the distribution, New World Development will no longer own any interest in New World Infrastructure. New World Development major shareholder Chow Tai Fook Group will be the controlling stakeholder in New World Infrastructure, according to market talk. If the company does conduct a restructuring, however, it will help cut the company's debt, chairman Cheng Yu Tung said. In July, TCR-AP reported that New World Development agreed to dispose to Bing Fu Investment Company Limited 12.5 percent of the entire issued share capital of each of Mightypattern Limited and Waldorf Realty Limited respectively at an aggregate cash consideration of approximately HK$164 million. NORTHEAST ELECTRICAL: Resumes Share Trading in Hong Kong -------------------------------------------------------- The Hong Kong-listed shares of Northeast Electrical Transmission & Transformation Machinery Manufacturing Co., China's biggest maker of transformers and circuit breakers for electricity production, resumed trading last Friday (October 18) after six months of suspension, Dow Jones Newswires reported. Trading in its shares was suspended April 19 when the company reported a loss for the fiscal year 2001, its third annual loss in a row. Shares in Northeast Electrical resumed trading on the Shenzhen stock exchange on October 14. Northeast Electrical was driven to the edge of bankruptcy earlier this year when Hong Kong creditors sued over repayment of US$40 million. The bankruptcy petition was withdrawn after Northeast Electrical agreed new payment terms with its creditors. The power-generation equipment maker is trying to escape a commitment to guarantee a 1998 loan of 30 million yuan. It is also saddled with CNY96 million in accounts receivable, of which it made a provision of CNY62.9 million last year. It is suing in a mainland court for recovery of CNY30 million. A lawsuit by the Hong Kong creditors in a mainland court is still pending. PAK KUT INVESTMENT: Winding Up Petition Set for November 6 ---------------------------------------------------------- Pak Kut Investment & Development Company 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 10:00 am. Industrial and Commercial Bank of China (Asia) Limited of ICBC Tower, 122-126 Queen's Road Central, Hong Kong filed the petition last August 13, 2002. RAINBOW COSMETIC: Winding Up Petition Pending --------------------------------------------- The petition to wind up Rainbow Cosmetic (Central) Company Limited is set for hearing before the High Court of Hong Kong on October 30, 2002, at 9:30 am. Newide International Limited filed the petition with the said court last July 3, 2002. ================= I N D O N E S I A ================= ASURANSI JIWA: Public Awaits Result on Probe of Manulife Judges --------------------------------------------------------------- The public is still waiting for a report from the disciplinary committee of the Jakarta High Court on the result of the investigation of three judges as to whether or not they violated the code of ethics when they declared PT Asuransi Jiwa Manulife Indonesia, the local unit of Canadian insurer Manulife, bankrupt in June. The three Jakarta Commercial Court judges under investigation are Hasan Basri, Ch. Kristi Purnamiwulan, and Cahyono. The disciplinary committee was slated to finish its work and propose a course of action to the Justice Ministry and Supreme Court within 30 days of its establishment on August 12. However, to this point, there has been no explanation from the government, the committee, the ministry or the Supreme Court (MA). Justice and Human Rights Ministry spokesman Hormat Tjapah said his office had received a report from the disciplinary committee but shall first be discussed between Justice Minister Yusril Ihza Mahendra and Chief Justice Bagir Manan before it is announced to the public. Manulife Indonesia was declared bankrupt for opting not to pay out dividends in 1999. The Supreme Court later overturned the verdict following strong protests from Canada. The three judges were suspended pending investigation into allegations that they were bribed to declare the insurance firm bankrupt. Hasan Basri, the presiding judge of Manulife case, denied accepting bribes and said the allegation was untrue and groundless. BANK NEGARA: Delays $100M Bond Offering After Bali Attack --------------------------------------------------------- State-owned PT Bank Negara Indonesia has decided to delay its planned $100 million bond offering this week following the weekend terrorist attacks in Bali. "We decided to delay our entry to the market due to unfavorable market sentiment," a bank official told Dow Jones Newswires. The banker added the marketing roadshow may take place next month. BNI had planned to list on the Singapore Exchange the subdebt, which Fitch Ratings assigned a "B" rating. It has named J.P. Morgan as its underwriter. The bank hasn't disclosed further details such as the yield and the maturity of the bond. ========= J A P A N ========= DAIEI INC.: Creditors Aim to Take Half of Loans ----------------------------------------------- Three creditor banks of Daiei Inc. are planning to take over half of some 80 billion yen in loans extended by Shinsei Bank to the troubled retailer, Kyodo News reported Friday. Creditors UFJ Bank, Sumitomo Mitsui Banking Corp and Mizuho Corporate Bank followed a Shinsei Bank request that Daiei repay some 60 billion yen in loans so that the bank's outstanding loans to Daiei will be on the same level as those by quasi-major creditor banks. Meanwhile, Bloomberg reported that the shares of the Company increased 5.4 percent. The Development Bank of Japan, funded by public pensions and postal savings, said it would contribute a sixth of a 60 billion yen fund for Japan's third-biggest retailer. FUJITSU LTD: 1,100 Employees Return Retirement Applications ----------------------------------------------------------- Fujitsu Limited has received retirement applications from 1,100 employees in its domestic telecommunications unit, Kyodo News reported Friday. The name of the unit was not mentioned in the report. The retirement application will bring the total of job cuts to some 25,000 since fiscal 2001. TCR-AP 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. JAPAN METALS: Denki Kagaku Acquires Fertilizer Unit --------------------------------------------------- Denki Kagaku Kogyo K.K. will acquire the fertilizer unit of failed Japan Metals and Chemicals Co. in July next year, the Jiji Press reported Wednesday. The move aims to strengthen the fertilizer business of the company, which filed for court protection from creditors under the corporate rehabilitation law in February. Sales at the failed firm's fertilizer division came to 3 billion yen for the year ended in March. Terms of the acquisition have yet to be decided on. MONEX INC.: Posts First-half Loss of JPY828M -------------------------------------------- Online brokerage house Monex Inc. incurred an unconsolidated pretax loss of 828 million yen in the first half of this year, versus a loss of 416 million yen in 2001, the Japan Times reported Friday. The poor performance in the April-September period was caused by a slump in the stock market since May. With the weak stock market discouraging individual investors, Monex saw brokerage commissions fall 12.5 percent to 1.28 billion yen. In 2001, the Company incurred an unconsolidated pretax loss of 1.2 billion yen and a net loss of 1.41 billion yen. TAKASHIMA CO.: Incurs First-half Net Loss of JPY219M ---------------------------------------------------- Major department store operator Takashimaya Co. incurred a consolidated net loss of 219 million yen for the first half of this year ending in August, Kyodo News reported Thursday. The loss was due to a slack business at its mainstay department stores amid the prolonged economic slump and to an extraordinary loss of about 2.74 billion yen posted by the parent Company. The extraordinary loss largely stemmed from remodeling of outlets and valuation and sales losses of stockholdings. TOBU STORE: Posts Net Loss of JPY75M in First Half -------------------------------------------------- Tobu Store Co. posted a group net loss of 75 million yen in the first half ending August 31, versus a net loss of 4.26 billion a year earlier, Kyodo News reports. The supermarket chain's group net loss per share was 1.47 yen, versus with a per-share net loss of 83 yen in 2001. TOKYU STORE: Returns to the Black With JPY1.17B Profit ------------------------------------------------------ Tokyu Store Chain Co. booked a consolidated net profit of 1.17 billion yen in 2002, versus a loss of 11.49 billion yen a year earlier, the Kyodo News reported Thursday. The major supermarket chain operator was freed from the need to plug a shortfall in retirement allowance reserves unlike in 2001. TCR-AP reported earlier the supermarket chain, affiliated with Tokyu Corp., posted a consolidated net loss of 11.06 billion yen in the year ended February 28 against, a profit of 879 million yen the previous year. The net loss was due mainly to an extraordinary loss of Y22.34 billion from covering a shortfall in its employee retirement allowance reserves. ========= K O R E A ========= ASIANA AIRLINES: Faces US$750,000 Fine for US Domestic Service -------------------------------------------------------------- The Department of Transportation (DOT) has fined Asiana Airlines US$750,000 for carrying passengers between U.S. destinations, Dow Jones reported Friday. The federal transportation regulator found that the airline broke the law between July 1998 and May 2002 by carrying passengers between Guam, a U.S. territory, and Saipan, a hundred miles north of Guam in the Northern Mariana Islands, a U.S. commonwealth. Asiana was also found to have provided air service between cities in the continental U.S. and Seoul. U.S. law prohibits foreign airlines from carrying passengers between places within the U.S. unless they are specifically authorized to do so. Asiana consented to the penalty without admitting or denying the violations. The penalty will be halved if the airline does not commit similar violations within three years, according to the settlement reached by Asiana and the Transportation Department. Asiana was fined previously for carrying cargo on flights between Guam and Seattle with a connection in Seoul. According to TCR-AP, Asiana Airlines had a negative working capital at the end of 2000, as current liabilities were W1.47 trillion while total current assets were only W558.91 billion. DAEWOO MOTOR: DMSC Buys 11.12% in GMDAT Stake --------------------------------------------- Daewoo Motor Sales Co. (DMSC) and Ajou Co. are aiming to jointly purchase 11.12 percent stake in GM Auto & Technology (GMDAT), the former sales unit of Daewoo Motor, Digital Chosun reported Thursday. The formal contract for the acquisition would be signed on October 18, 2002. Ajou Co., a ready-mix concrete producer, will take 9.12 percent of the stake, and DMSC staff, 2 percent. TCR-AP reported earlier that the Korea Development Bank (KDB) is contemplating providing US$750 million out of US$2 billion in fresh funds to a GM-Daewoo joint venture called GM Daewoo Auto & Technology Co. (GMDAT). In April, General Motors (GM) concluded an agreement to acquire Daewoo Motors by establishing the joint venture. DAEWOO MOTOR: GM, Partners Complete Asset Transfer -------------------------------------------------- General Motors Corporation, Daewoo Motor Company, and the Korea Development Bank, acting on behalf of the Daewoo Motor Creditors Committee, announced the transfer of certain assets of Daewoo Motor Company to a new automotive Company called GM Daewoo Auto & Technology Co. (GM Daewoo). The asset transfer marks the beginning of the new Company following definitive agreements signed among the parties April 30 and the approval of the Reorganization Plan of Daewoo Motor Company by the Incheon Court Sept. 30. GM, Suzuki Motor Corp., Shanghai Automotive Industry Corp. (SAIC), and the creditors will be the stockholders in GM Daewoo. The new Company will own and operate three manufacturing plants and a total of nine overseas subsidiaries, including the Daewoo units in Austria, the Benelux countries, France, Germany, Italy, Puerto Rico, Spain, Switzerland, plus Daewoo's European parts operations in the Netherlands. The manufacturing plants are located in Changwon and Kunsan, South Korea, and the automobile operations in Hanoi, Vietnam. Included in the new Company are the design, engineering, research and development, sales, marketing, and administration assets located in Bupyung, South Korea. Daewoo Motors' manufacturing facility in Bupyung, South Korea, will be formed into a new Company, Daewoo Incheon Motor Company, and will continue to supply GM Daewoo with vehicles, engines, transmissions and components for at least six years. The agreements give GM Daewoo an option to acquire this Company any time within the next six years. GM Daewoo products will eventually be sold in more than 80 countries around the world. Nick Reilly will serve as President and chief executive officer of the new Company. "This is the day everyone has been waiting for so long," Reilly said. "GM Daewoo has an impressive work force, an exciting product line up, a proven quality supplier base and a good business plan. Now we can get on with the business of making this Company a growing, competitive enterprise." According to Reilly, a board of directors meeting is scheduled for Monday, October 28, at which time the new Company will be inaugurated, the executive team introduced and a new corporate identity revealed. Upon completion of the final equity capital injection, it is intended that General Motors will own 42.1 percent of the new Company and Daewoo's creditors will hold a 33 percent stake. Suzuki and SAIC will have a 14.9 percent and 10 percent equity interest respectively in GM Daewoo. DAEWOO MOTOR: GMDAT to Start Operation on October 28 ---------------------------------------------------- GM Daewoo Auto & Technology Co. (GMDAT) will start its operation on October 28, Yonhap News Agency reported Wednesday. "Creditors of failed Daewoo Motor Co. have concluded details on the provision of $2 billion in fresh funds," to GM Daewoo Auto, paving the way for its formal establishment on Thursday, citing an official of Korea Development Bank. GM Daewoo Auto is owned 42.1 percent by General Motors (GM), 33.0 percent by Daewoo creditors, 14.9 percent by Suzuki Motor Corp. and 10 percent by Shanghai Automotive Industry Corporation group. GM Daewoo expects to recover profitability in the next three to four years. HYNIX SEMICONDUCTOR: Expects to Post W500B Net Loss in 3Q --------------------------------------------------------- Hynix Semiconductor Inc. sees a net loss of 500 billion won in the third quarter, reports the Seoul Economic Daily and Dow Jones. Earlier, TCR-AP reported that the immediate sale of Hynix Semiconductor Manufacturing Ltd. appears impossible at the moment because of lack of interested buyers, citing main creditor Korea Development Bank. The enterprise value of the Company needs to be maintained via a program of selling non-core operations and then restructuring debt. Creditors will determine a course of action on the chipmaker at a meeting scheduled sometime this month. 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 LG ELECTRONICS: Swings Back to Profit ------------------------------------- LG Electronics Inc. swings back into the black with a third- quarter net profit of 116.1 billion won ($93.86 million), versus a loss of 417.5 billion won a year ago, Reuters reports. The Company said third-quarter sales were 4.4 trillion won compared to 3.86 trillion won a year ago, while operating profit was 190.1 billion won, versus 154 billion won a year ago. The Company is a leading world manufacturer of air conditioners, televisions and washing machines. According to Wright Investor's Service, LG Electronics Inc. had negative working capital at the end of 2001, as current liabilities were 13.85 trillion Korean Won while total current assets were only 9.37 trillion Korean Won. =============== M A L A Y S I A =============== BESCORP INDUSTRIES: Still in Payment Default -------------------------------------------- As required by the Kuala Lumpur Stock Exchange Practice Note 1/2001, Bescorp Industries Berhad (Special Administrators Appointed)(BIB) hereby provides an update on its default in payment, as enclosed in http://bankrupt.com/misc/bescorp_sept.pdf. The default by BIB as at 30 September 2002 amounted to RM53,256,355.76 made up of a principal sum of RM32,220,139.42 plus RM21,036,216.34 in interest for revolving credit facilities. As at 30 September 2002, the remaining subsidiary companies of BIB, namely Bescorp Construction Sdn. Bhd. (In Liquidation), Bescorp Piling Sdn. Bhd. (In Liquidation), Bescorp Concrete Sdn. Bhd. (In Liquidation), Bespile Sdn. Bhd. (In Liquidation), Farlil Sdn. Bhd. (In Liquidation) and Waktu Cerah Sdn. Bhd., defaulted on a total sum of RM95,026,505.56 being a principal sum of RM60,905,258.44 plus RM34,121,247.12 in interest for revolving credit facilities, term loan, banker's acceptance, hire purchase and lease facilities, and RM56,561,615.35 for overdraft facilities. There were no further developments since the Company's previous announcement with regard to this Practice Note. BRIDGECON HOLDINGS: Restructuring Proposals Get Approval -------------------------------------------------------- Public Merchant Bank Berhad, on behalf of Bridgecon Holdings Berhad (Special Administrators Appointed), is pleased to announce that the Foreign Investment Committee (FIC) had, vide its letter dated 3 October 2002 (which was received on 16 October 2002), approved the Proposals. The Proposals include Share Exchange, Debt Settlement, Acquisition and Offer for Sale. The said FIC's approval is subject to Premium Nutrients Berhad having at least 30 percent direct Bumiputera equity interest at the time of listing. TCR-AP reported earlier that Pengurusan Danaharta Nasional Berhad had on 20th September 2002 approved the proposed corporate and debts restructuring of the Company. CM CORP.: Malaysian Authorities Raid Offices -------------------------------------------- The offices of CSM Corp., which has been under investigation by Malaysia's securities commission for more than a year, were raided by the securities commission, as part of an investigation into alleged accounting irregularities at the company. According to a report from the Sun, the authorities took documents and files from the food retailer's headquarters and offices last Thursday. In 2001, the authorities ordered the company to restate its 1999 financial statements. Earlier this year, CSM sued accounting firm Arthur Andersen LLP for about 347 million ringgit ($91.3 million) in losses resulting from negligence and breach of contract. The company was unprofitable in 2000 and 2001. PAN MALAYSIAN: Divests Hikari Builders Business ----------------------------------------------- Pan Malaysian Industries Berhad (PMI) said in a Kuala Lumpur Stock Exchange disclosure that a statutory declaration made pursuant to Section 255(1) of the Companies Act, 1965 in respect of general builders and contractors company Hikari Builders Sdn Bhd (a 72.77 percent-owned subsidiary of PMI) has been lodged with the Companies Commission of Malaysia on 17 October 2002 for the winding up of Hikari Builders Sdn Bhd by way of creditors' voluntary winding-up. Mr Mok Yuen Lok of Horwath Mok & Poon has been appointed as Provisional Liquidator. The Voluntary Winding-Up is part of PMI's continuing rationalization efforts to divest or wind up unprofitable businesses. PMI has guaranteed the bank facilities of Hikari for a total of RM35.09 million. After taking into account the said bank facilities of Hikari and the write back of the post-acquisition losses of Hikari and its subsidiaries, the Voluntary Winding-Up will result in an estimated surplus of approximately RM15.80 million to the PMI Group, translating into an earnings per ordinary share of 0.81 sen at PMI Group level. None of the Directors, major shareholders and person connected with the directors and major shareholders of PMI has any interest, direct or indirect, in the Voluntary Winding-Up. PANCARAN IKRAB: Clarifies Date of Trading Suspension ---------------------------------------------------- Pancaran Ikrab Berhad clarified in a Kuala Lumpur Stock Exchange disclosure that the trading of its shares was suspended on 1 August 2002 instead of 23 July 2001. Last week, Pancaran Ikrab announced to the KLSE its plan to regularize the financial condition and implement the said plan by 31 December 2002 to ensure that the Company's shares will not be delisted. Meanwhile, Pancaran Ikrab said that its registered office is not located at No 8m Jalan SS21/39, Damansara Utama, 47400, Petaling Jaya, Selangor Darul Ehsan as announced but W11-A11, 11th Floor, West Block, Wisma Selangor Dredging, 142-C Jalan Ampang, 50450 Kuala Lumpur, as was earlier reported. RENONG BERHAD: Ex-Chairman Objects to MYR400M Share Issue Plan -------------------------------------------------------------- Halim Saad, the former chairman of Renong Bhd., has opposed the proposed MYR400 million private placement of the debt-ridden Malaysian conglomerate. According to a Star daily report, Halim suggested the company find other ways to shore up its financials. "I believe that the proposed special issue exercise will not be in the best interest of Renong as the outcome will not be sustainable over a long period," says Halim. Halim suggests Renong buy back its shares or use the Prolink Development Sdn. Bhd. land in an asset-to-debt swap to settle its MYR8.2 billion seven-year bond. TCR-AP reported last week that Renong had aimed to raise RM400 million through a private placement measure to prevent its shareholders' fund from being in deficit. Renong incurred a loss after taxation and minority interest of RM101.0 million for the quarter ended June 30, 2002 of which RM89.2 million relates to finance costs. The group continues to incur losses due to substantial finance cost from the Renong SPV bond. SENG HUP: Names New Audit Committee Chairman -------------------------------------------- Seng Hup Corporation Berhad (SHCB) said in a disclosure to the Kuala Lumpur Stock Exchange that Azri Bin Ahmad was redesignated from member of the Audit Committee to Chairman of the Audit Committee, effective 16 October 2002. Mr Tan Kim Leong, JP and Mr Siew Kah Toong of BDO Binder were on 9 September 1999, appointed as Special Administrators of SHCB (SA) under Section 24 of the Pengurusan Danaharta Nasional Berhad Act 1998 as amended by Pengurusan Danaharta Nasional Berhad Act 2000 (Act). SIN HENG CHAN: FIC Gives Nod on Restructuring Scheme Proposal ------------------------------------------------------------- Southern Investment Bank Berhad said on behalf of the Special Administrators of Sin Heng Chan (Malaya) Berhad (SHCM) that the Foreign Investment Committee (FIC) had approved the Proposals vide its letter dated 7 October 2002, which was received on 16 October 2002. The Proposals include the proposed restructuring scheme, proposed Employees' Share Option scheme and proposed share capital increase. The approval of the FIC is subject to the following conditions: (i) The shareholding structure of SHCM will be reviewed by the FIC after three (3) years from 7 October 2002, being the date of the approval letter; and (ii) SHCM is required to inform the FIC of the following: a) Implementation of the Proposals; and b) Shareholding structure of SHCM in October 2005. SPORTMA CORPORATION: Defaults in RM223.57M Payment -------------------------------------------------- As required by the KLSE Practice Note 1/2001, Sportma Corporation Berhad (Special Administrators Appointed) hereby provides the details of its default in payment as at 30 September 2002, as attached in http://bankrupt.com/misc/sportma_sept.pdf. The total default by Sportma on the principal sum plus interest as at 30 September 2002 amounted to RM223,575,011.17. The default payment is in respect of revolving credit facilities, trade financing and overdraft utilized by Sportma. There is no further default of payment by the Company, save as discussed above, since the previous announcement with regard to this Practice Note. SRI HARTAMAS: Moratorium Extended to October 17 ----------------------------------------------- The Special Administrators of Sri Hartamas Berhad (Special Administrators Appointed), who are also the appointed Special Administrators of subsidiaries Puncak Permata Sdn Bhd, Mawar Tiara Sdn Bhd and Cempaka Mewah Sdn Bhd, wish to announce that the moratorium under Section 41 of the Act, which took effect from 18 October 2000, i.e. the date of the appointment of the Special Administrators over the Companies, and expires on 17 October 2002, has been extended to 17 October 2003. The extension is pursuant to Section 41(3) of the Act. During the period of the moratorium, no creditor may take action against the Companies except in accordance with Section 41 of the Act. All dealings and inquiries may be directed to the Special Administrators. TECHNOLOGY RESOURCES: Sues Chief, Ex-directors to Recoup $15M ------------------------------------------------------------- Technology Resources Industries (TRI) is suing chairman and chief executive Tajudin Ramli and ex-directors Bistamam Ramli and Lim Kheng Yew to recover 56 million ringgit ($15 million) in controversial payments, Agence France-Presse reports. TRI is seeking repayment from each of the defendants 11 million ringgit purportedly paid to each of them as bonus or incentive payments for the successful completion of its four-billion- ringgit debt restructuring. TRI parent Celcom, Malaysia's second largest mobile phone operator, is also seeking for the return of a Daimler and a Mercedes Benz luxury cars that were sold to Tajudin and his brother Bistamam for one ringgit each. The three defendants quit the TRI board in July following a bitter power tussle with Telekom Malaysia after the latter bought a 31.25 percent stake in TRI. ===================== P H I L I P P I N E S ===================== DIGITAL TELECOM: Agrees to Restore Interconnection With PT&T ------------------------------------------------------------ Digital Telecommunications Philippines Inc. (Digitel) and Philippine Telegraph and Telephone Inc. (PLDT) agreed to enter into a new interconnection agreement, the Today newspaper reported, citing PT&T Assistant Vice President for Carrier Relations Ernesto Barro. Digitel earlier cut interconnection links with PT&T, which has not paid access charges to the latter. According to Wright Investor's Service, Digital Telecommunications Phils Inc. at the end of 2001 had negative working capital, as current liabilities were 8.99 billion Philippine Pesos while total current assets were only 6.01 billion Philippine Pesos. EASYCALL COMMUNICATIONS: Halting Paging Operations Next Month ------------------------------------------------------------- EasyCall Communications Philippines Inc. will close its paging operations in November to avoid further losses due to a declining subscriber base, Dow Jones reported Friday. The Company will focus on its contact center outsourcing business and its Internet and data center services. "This will effectively cut down the losses being incurred by the Company from its paging operations in view of the continuing deterioration in our pager base," the report said. EasyCall International Limited, a Company listed on the Australian and Singapore stock exchanges, had for the year ended 30 June 2002 slashed its net loss after tax to A$1.7 million (S$1.6 million) from the high of A$45.1 million (S$43.4 million) recorded a year ago. The Group restructured its operations last year to weed out loss making operations, taking one-time charges totaling A$39.4 million (S$37.9 million). MANILA ELECTRIC: Will Not Meet Profit Ratio ------------------------------------------- Manila Electric Co. will not meet its profit ratio required by its creditors Asian Development Bank and World Bank, the Business World reports, citing Meralco Treasurer Rafael Andrada. The report said the failure to meet the profit ratio might increase the Company's cost of borrowings on future loans. The Company will seek for a waiver from the creditors on the profit ratio so it will not be declared in default. It failed to meet the ratio in the last three years because the government did not allow the Company to raise rates. Meralco has been asking the government since 2000 for approval to increase prices. It was last allowed to raise rates in 1994. ================= S I N G A P O R E ================= ALEXANDRA HOLDINGS: Faces Delisting From SGX-ST ----------------------------------------------- The Liquidators of Alexandra Holdings Limited said the Company was delisted from the Official List of the Singapore Exchange Securities Trading Limited (SGX-ST) Main Board pursuant to Rules 1306 to 1308 of the SGX-ST Listing Manual with effect from 9.00 a.m., Friday, 18 October 2002. TCR-AP reported that the SGX-ST has granted a further extension of time to comply with Rule 723 of the SGX-ST Listing Manual up to the date of the Extraordinary General Meeting (EGM) for the purpose of facilitating the Company's use of MASNET to disseminate information to shareholders in connection with the Proposed Voluntary Liquidation. ASIA PULP: Bondholders Meet to Discuss Company Restructuring ------------------------------------------------------------ Asia Pulp & Paper Company Ltd (APP) announced the details of its discussions with various bondholders (including the bondholder steering committee formed for the purposes of the restructuring discussions in New York between October 15 to 16, 2002. The discussions focused upon restructuring and related issues relating to the restructuring of APP, and in particular its principal Indonesian operating companies, PT Indah Kiat Pulp and Paper Tbk, PT Pabrik Kertas Tjiwi Kimia Tbk, PT Pindo Deli Pulp and Paper Mills and PT Lontar Papyrus Pulp and Paper Industry. On Tuesday, October 15, 2002, APP representatives led a conference call with the bondholder committee which focused upon the key financial terms of the proposed restructuring of the debt of the Indonesian Subsidiaries to which APP and the Indonesian Subsidiaries and certain creditors of the Indonesian Subsidiaries preliminarily agreed in Bali on September 28, 2002 (the Bali Accord), that was described in APP's press release dated October 1, 2002. On Wednesday, October 16, 2002, APP participated in a presentation by KPMG, financial advisor to the Bondholder Steering Group. For a copy of the press release, go to http://bankrupt.com/misc/tcrap_app1018.pdf For further inquiries, contact Julian Wilson of Gavin Anderson & Company at telephone (+65) 6339-9110, or via e-mail at app_investors@app.co.id, or app@gavinanderson.com.sg. DATACRAFT ASIA: Appoints Bill Padfield as New CEO ------------------------------------------------- Datacraft Asia Limited announced the appointment of Bill Padfield as the Executive Director of the Company with effect from October 17, 2002. On November 13, 2001, Datacraft Asia Ltd announced (a) the appointment of Bill Padfield as Chief Operating Officer of the Company with effect from 30 November 2001, to succeed Koh See Heong, who had, in January 2001 informed the Company that he intended to retire as Chief Operating Officer and Executive Director because the extensive traveling required of him at that time, affected his health and personal life and (b) that at the Company's request, Koh had agreed to continue his role as an Executive Director of the Company for the next six months. In accordance with the stated intention of Koh See Heong to retire, the Board of Directors of the Company announced the resignation of Koh as an Executive Director of the Company with effect from 17 October 2002. The Board expressed its appreciation to Koh for his services and invaluable contributions as a member of the Board. Koh will remain as advisor to the Chief Executive Officer of the Company. According to TCR-AP, Kelive forecast the group to post a net loss of US$8 million for the fiscal year 2002. The overall telecommunications sector remains weak as infrastructure spending has yet to normalize. Without a significant improvement in end user demand, recovery would likely be relegated to fiscal year 2003. INTRACO LIMITED: Appoints Audit Committee Member ------------------------------------------------ The Board of Directors of Intraco Limited said Kwah Thiam Hock has been appointed as a member of the Audit Committee of the Company with effect from October 17, 2002. With the aforesaid appointment, the Company's Audit Committee now comprises of: Chairman Lim Yong Wah - Independent and non-executive director Members Ang Kong Hua - Non-executive director Lua Cheng Eng - Independent and non-executive director Kwah Thiam Hock - Independent and non-executive director The High Court of Singapore has approved the Capital Reduction of Intraco Limited on July 2, 2002 (Effective Date) following the filing of an office copy of the Court Order with the Registrar of Companies and Businesses in Singapore. On the Effective Date, the nominal amount of all shares in the capital of Intraco, both issued and un-issued, has been reduced from S$1.00 to S$0.50. During the financial year ended 31 December 2001, Intraco Limited posted an accumulated loss of S$12.6 million, TCRAP reports. These losses resulted principally from losses incurred by Intraco and the provisions made for the diminution in the value of its subsidiaries during the financial year. LKN-PRIMEFIELD: Bondholders Appoint KPMG as Financial Adviser ------------------------------------------------------------- LKN-Primefield Limited said its bondholders have appointed KPMG Corporate Restructuring Services (KPMG) as their financial adviser on its Debt Restructuring Proposal. The Company has signed the engagement letter with KPMG. It is expected that the preliminary report from KPMG on the Proposal would be available in the first half of November 2002. MPH LIMITED: Appoints Administrator to Assess French Unit --------------------------------------------------------- MPH Limited announced that a judicial administrator has been appointed by the Commercial Court of Roubaix-Tourcoing to assess the economic and financial situation of its confectionery products manufacturing subsidiary in France, Societe Europeene de Confiserie (SEC). The appointment was pursuant to a notification made by SEC, as prescribed by French regulations. Further to the above announcement, the Company wishes to add that the Company had issued letters of comfort in connection with credit facilities granted by three French banks to SEC. The facilities are secured on SEC's assets. There is approximately Euros 2.0 million (S$3.5 million) outstanding under the facilities. The Company has received legal advice that under the French regulations, the appointment of the judicial administrator does not constitute an event of default in respect of the facility agreements. As mentioned previously, the Company has fully provided for the possible write-off of its investment in SEC, and the operating losses incurred by SEC while it continues to operate as a subsidiary in the Group may affect the Group's profitability for the current financial year. The Company wishes to emphasize that the extent of the impact from developments that may potentially arise in relation to SEC, including any issues arising from the letters of comfort given by the Company, is uncertain at this time as it will be dependant on, inter alia, the enforceability of the letters of comfort and the outcome of the judicial administrator's evaluation of SEC (which is presently underway) and his eventual decision as to whether SEC is to be continued, sold or liquidated. Shareholders will continue to be updated on any significant developments relating to SEC. =============== T H A I L A N D =============== KRUNG THAI: NPL Up at 8.08% in September ---------------------------------------- The nonperforming loans (NPL) of state-owned Krung Thai Bank PCL stood at 8.08 percent of its total lending at the end of September, down from 7.98 percent a month earlier, Dow Jones Newswires reported. Krung Thai's problem loans amounted to 70.33 billion baht at end-September, up from 68.86 billion baht at end-August. Krung Thai's assets at the end of September totaled 1.062 trillion baht, while total liabilities amounted to 997.68 billion baht. In September, TCR-AP reported that Krung Thai Bank PCL, the country's second-largest commercial bank, will likely resume paying dividends next year after shareholders approved the capital restructuring plan. Krung Thai chairman Supachai Pisitvanich said following the restructuring, accumulated losses would fall to only 84 million baht. SIKARIN PLC: Appoints New Board Directors ----------------------------------------- The board of Sikarin Public Company Limited said Friday in a Stock Exchange of Thailand disclosure that it has appointed directors and changed position of the board of directors. Sikarin has appointed Mr. Atirat Charoonsri to be the board of director to replace Mr. Anant Kieatfeungfoo, and appointed Mr.Sompol Wongurai to the board to replace Mr. Taweesak Hongtong. Both Mr Kieatfeungfoo and Mr. Hongtong resigned from being board of directors of company effective October 11. The board further appointed Mr. Jarak Sangtavip to be chairman to replace Mr. Kiittipan Sasanawin. Mr. Veeranart Veravaidhaya and Mr. Sakchai Tanaboonchai were also appointed as vice chairmen, while Mr. Atirat Charoonsri to the managing director position to replace Mr. Veeranart Veravaidhaya. Bangkok-based Sikarin, which is under rehabilitation, is in the hospital business. THAI CANE PAPER: Siam Cement Denies Interest in Paper Company ------------------------------------------------------------- Industrial conglomerate Siam Cement may not invest in Thai Cane Paper, Business Day reports. "We have had serious talks many times but I don't see any kind of deal coming about in the near future due to the high valuation being sought by the existing shareholders," Siam Pulp & Paper president Somboon Chuchawal said. He said the shareholders were willing to pay an enterprise value/EBITDA (earnings before interest, tax, deprecation and amortization) of 5:1, but declined to give the price that Thai Cane Paper was looking for. Somboon said that Siam Pulp & Paper, a subsidiary of Siam Cement, was the only firm that was talking with Thai Cane about a takeover, but is not interested in absorbing so much debt Thai Cane Paper, which produces cardboard, paper boxes and paper bags, announced a plan last week to issue 1.2 billion baht in new shares to finance the repayment of debts to the Thai Asset Management Corporation (TAMC). The unsecured creditors account for just 800 million baht of the debts, while the secured creditors are owed the remaining 5 billion baht. UOB RADANASIN: Third-Quarter Loss Narrows to THB8.88M ----------------------------------------------------- Bangkok's UOB Radanasin Bank PCL reported that its net loss for the third quarter, ending September 30 narrowed to THB8,888,000 from THB257,056,000 in the same period of last year. For the nine months to September 30, loss was recorded at THB91,636,000 against a loss of THB581,159,000 in 2001. UOB Radanasin Bank is majority-owned by Singapore's United Overseas Bank. 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 ***