/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/021025.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, October 25, 2002, Vol. 5, No. 212 Headlines A U S T R A L I A COLES MYER: Inks Five-year Partnership with Australia Post HARRIS SCARFE: Former CFO's Jail Term Reduced to Six Years HIH INSURANCE: Firm Had Ample Warning on Doomed Allianz Deal NAUTILUS AUSTRALIA: Firm No Longer Viable, Says Auditor PASMINCO LIMITED: Shutting Down Cockle Creek Smelter C H I N A & H O N G K O N G DYNAMIC HOLDINGS: 2002 Vital Statistics Take 180-degree Turn SEA VIEW: First of Two Winding Up Petitions To Be Heard Nov. 13 SEA VIEW: Winding Up Petition Set for Hearing on November 20 QPL INTERNATIONAL: Rumored Share Placement Causes Suspension WISE CROWN: November Hearing on Winding Up Petition Set ZHENGZHOU YUTONG: Regulator Orders 300T Fine for Flawed Report I N D O N E S I A BANK CENTRAL: Unstable Environment Tempers Sound Balance Sheet J A P A N ALL NIPPON: JCR Assigns A- Rating NIIGATA ENGINEERING: IHI Converts Power Division Into Unit NTT DOCOMO: Extends Wireless LAN Service to Haneda Airport PENTA-OCEAN: Moody's Reviews Ba3 Rating For Possible Downgrade SAGAMI RAILWAY: JCR Affirms BBB+ Rating TAISEI CORPORATION: Offering Y20B 4-Yr Bonds Due 2006 TAISEI FIRE: Files Y800M Suit Against Ex-Managers *Fitch Comments on Japan's Banking System K O R E A CHOHUNG BANK: Selling Card Operations to GE Capital CHOHUNG BANK: Shinhan Declares Interest in 80% Stake DAEWOO MOTOR: Polish Unit Aims to Avoid Bankruptcy HYUNDAI PETROCHEMICAL: Final Bidding Set For Next Week M A L A Y S I A AUSTRAL AMALGATED: Schedules AGM on November 15 JUTAJAYA HOLDING: Answers KLSE Queries on Unit's Default L&M CORPORATION: New Company to Assume Firm's Obligations MYCOM BERHAD: Seeks Extension to Stabilize Financial Condition PANGLOBAL BERHAD: Unit Discloses Coal Production Volume TAP RESOURCES: Seeks Restructuring Scheme Approval P H I L I P P I N E S ALL ASIABANK: PDIC Pays P170.48M to All Depositors FIRST E-BANK: Enters Agreement With Banco de Oro GLASGOW CREDIT: Investors Expects to Recover 70% of Investments PHILIPPINE LONG: Rules Out Management Buyout of FirstPac Stake PHILIPPINE LONG: Wants Supreme Court to Dismiss NTC Ruling PHILIPPINE LONG: Shares Down 3.6 percent on Tuesday PHILIPPINE TELEGRAPH: ASM Set on December 4 UNITRUST DEVELOPMENT: PDIC Mulls Liquidation S I N G A P O R E ARMSTRONG INDUSTRIAL: Posts Notice of Director's Interest ASIA PULP: More APP Lenders Back Bali Deal, Says IBRA CHARTERED SEMICONDUCTOR: Sees 3Q02 Loss of US$88.6M CHARTERED SEMICONDUCTOR: May Cut 15-20% of Workforce CHARTERED SEMICONDUCTOR: Trims Capital Expenditure Budget NEPTUNE ORIENT: Appoints Cynthia Stoddard as CIO T H A I L A N D BANGCHAK PETROLEUM: State Bank to Grant Short-term Loan TOTAL ACCESS: Exercises 'Greenshoe Option' Due to Robust Demand - - - - - - - - ================= A U S T R A L I A ================= COLES MYER: Inks Five-year Partnership with Australia Post ---------------------------------------------------------- Australia Post and Coles Online, Coles Myer's e-commerce grocery business, have signed a five-year partnership agreement that will see Australia Post manage the entire customer order fulfillment process for the online grocer. The deal extends Australia Post's role with Coles Online, which until now was limited to delivering customer orders. In a deal that further expands Australia Post's logistics business, the Corporation will take over the running of two fulfillment centers in Clayton, Victoria, and Turella in New South Wales. Most of the three hundred staff currently employed in the two centers will also transfer to the Post Fulfillment Online operation. The arrangement will come into being in late November. Part of Australia Post's fulfillment solution, which prevailed over competing offers from other logistic companies, involves an investment in new electronic systems and work practices that will improve the efficiency and capacity of the centers to fulfill grocery orders. Both Coles Online and Australia Post are gearing up for an anticipated growth in grocery online shopping in the two States. "This is a strategic expansion of our already strong relationship with Australia Post," e.colesmyer Managing Director Jon Wood said. "Australia Post has provided delivery services for Coles Online from the very beginning of the business and this is a logical extension of that relationship. "Coles Online will continue to own the stock, set the ranges, maintain the customer relationship and market the brand. This is still our business but we are now using an expert agency to complete the order processing." According to Alec Ceselli, general manager of Australia Posts logistics division, the new agreement is in line with the latest grocery fulfillment practices around the world. "The fulfillment operation will undergo a huge transformation. The existing model mirrors the way customers do their shopping in a supermarket. Installing new technology and work practices will radically shift the model to an electronically enabled multiple-order fulfillment environment. It is a very different way of fulfilling orders, almost as different as the idea of Australia Post delivering groceries." Coles Online offers next day delivery within a two-hour time slot. Customer orders are delivered in a fleet of vehicles specially designed for Australia Post. The vehicles hold three temperature-controlled compartments to hold frozen, fresh and dry goods. Under the new fulfillment system, Coles Online will still own the customer relationship. Orders taken on the Coles Online web site will be transferred electronically to the Australia Post fulfillment system for picking and packing and delivery. Individual orders placed on the web site will be simultaneously linked to order picking staff via wireless-linked hand-held computers, the dispatch center, and eventually back into Coles' supplier ordering system. The new fulfillment system is built around Australia Post's 'electronic spinal chord' that seamlessly integrates its logistics services with customers' e- commerce order taking systems. MEDIA CONTACTS: Richard Castle for Australia Post, on 03 9602 3444 or 0439 393343 Scott Whiffen, Coles Myer, on 03 9829 5548 or 0407 850709 Website: http://www.auspost.com.au/mediacentre HARRIS SCARFE: Former CFO's Jail Term Reduced to Six Years ----------------------------------------------------------- The South Australian Court of Criminal Appeal on Thursday reduced the jail sentence of Alan Hodgson, the former Chief Financial Officer of Harris Scarfe Holdings Limited (Harris Scarfe), from six years to five years and six months, and reduced the non-parole period from three years to two years and nine months, reports the Australian Securities and Investment Commission (ASIC). Justices Doyle, Debelle and Williams decided that the original sentence did not provide for a specific discount in respect of Hodgson's proposed future cooperation. The Court reduced Hodgson's non-parole period by three months to take into account his future cooperation with ASIC's investigation and any future prosecutions. If Hodgson does not cooperate, the Director of Public Prosecutions can seek orders from the Court to have Hodgson serve a non-parole period of three years. In June 2002, Hodgson was sentenced in the Adelaide District Court to six years jail with a non-parole period of three years after pleading guilty to 32 charges, including 18 counts of failing to act honestly as an officer of Harris Scarfe Limited, 6 counts of acting dishonestly as an employee of Harris Scarfe Limited and 8 counts relating to the dissemination of false information to the Australian Stock Exchange. The offences were committed during the period August 1996 to January 2001, and affected profit figures shown in the monthly financial reports to the Board of Harris Scarfe Holdings Limited, and the half-year, and end-of-year financial reports to both the Board, and to the Australian Stock Exchange. ASIC's investigation into the collapse of Harris Scarfe is continuing and no further comment will be made at this time. HIH INSURANCE: Firm Had Ample Warning on Doomed Allianz Deal ------------------------------------------------------------ Had HIH Insurance listened to its auditor, it would have not "disappeared into a AU$5.3 billion hole," The Age learned yesterday. According to the newspaper, Arthur Anderson's Jonathon Pye, a long-time HIH auditor, had actually warned the insurance firm against doing a joint venture with international insurance giant Allianz. Unfortunately, these warnings fell on deaf ears. The report says Mr. Pye as early as July 2000 e-mailed his London-based colleague Garth Hackshall to inform him that HIH had engaged Deutsche to sell or joint-venture its most profitable lines of business and raise at least $250 million. Mr. Pye's e-mail, which was revealed before the HIH Royal Commission on Wednesday, had warned of a "fiasco" and even described the representative of Deutsche Bank as "a dickhead." HIH's joint venture with Allianz came into effect on January 1, 2001. On March 15 that year, HIH disappeared into a AU$5.3 billion hole. NAUTILUS AUSTRALIA: Firm No Longer Viable, Says Auditor ------------------------------------------------------- Timothy Biggs, a partner in Deloitte Touche Tohmatsu, seriously doubts Nautilus Australia Limited can still continue with its business. In his independent audit of the company's fiscal 2002 financial report, Mr. Biggs said: "[T]here is significant uncertainty whether the company and the consolidated entity will be able to continue as going concerns and therefore whether they will realize their assets and extinguish their liabilities in the normal course of business and at the amounts stated in the financial report." Yesterday, Troubled Company Reporter-Asia Pacific reported that Ferrier Hodgson has taken over the company as receiver. To view the company's latest financial report, click on this link http://bankrupt.com/misc/nautilus_australia.pdf PASMINCO LIMITED: Shutting Down Cockle Creek Smelter --------------------------------------------------- Pasminco and its Deed Administrators, Messrs John Spark and Peter McCluskey of Ferrier Hodgson, announced today that, as part of the longer term strategy for the restructure of Pasminco, it had been determined that the Cockle Creek smelter in New South Wales will ultimately be closed. Subject to a number of factors, it is expected that the closure will take place between 2006 and 2008. Pasminco Chief Executive Officer Greig Gailey said: "Cockle Creek remains a marginal operation that does not provide consistent returns on investment. The Cockle Creek smelter does not fit with the strategic vision for a new Pasminco, which must instead focus on a portfolio of world class assets centred around the Century zinc mine in Queensland. In this context, and in the absence of an appropriate sale offer, are taking the decisive action needed on Cockle Creek to help secure a stronger future for the new Pasminco." "The closure of Cockle Creek has been timed to achieve the optimal remediation outcome for the site. The exact date will be dependent on capital expenditure requirements, plant performance and market conditions." Mr. Gailey said the decision provided clarity about the site's future for the smelter's 360 employees, the local community, suppliers and governments. "This plan is being announced early to ensure that all parties can plan well in advance for the closure's ultimate impact and to enable Pasminco to meet its responsibilities to the community and the environment." Mr. Gailey said the company would work closely with individual employees during the transition period. "Employee entitlements will be met as and when they fall due." "We will start planning for remediation work immediately," he said. "A comprehensive remediation plan will be developed in consultation with the NSW Environment Protection Authority and other relevant government agencies. It is anticipated remediation will be complete approximately five years after closure." Until its closure, the Cockle Creek smelter will be part of the new restructured Pasminco. Pasminco aims to operate the site at the peak of its performance over the intervening period while moving towards orderly closure and progressive remediation. Further details on the Cockle Creek strategy will be available in Pasminco Resources' upcoming Prospectus. Given the interdependency between Cockle Creek and Pasminco's Elura mine near Cobar in NSW, Mr. Gailey also confirmed that the sale process for the Elura mine was continuing as part of the restructuring strategy for Pasminco. He said that interdependencies between Elura and other Pasminco assets would be protected under any sale agreement. If a sale was not concluded, Mr. Gailey said that Pasminco would retain the mine. "If Elura is not sold, we will retain the operation and pursue performance improvements to extend the life of the mine. Under either option, the Elura operation is expected to continue for 6-7 years." For information, please contact: Trevor Shard GENERAL MANAGER - INVESTOR & COMMUNITY RELATIONS +61 (03) 9288 9186 or 0419 584 515 Stephen Baines MANAGER - PUBLIC AFFAIRS +61 (03) 9288 0215 Or 0418 992 651 ================================ C H I N A & H O N G K O N G ================================ DYNAMIC HOLDINGS: 2002 Vital Statistics Take 180-degree Turn ------------------------------------------------------------ Property developer Dynamic Holdings limited bared disappointing figures for its 2002 fiscal year, a sharp contrast of last year's numbers. Net losses amounted to HK$47.6 million for the year to end of June which, according to the company, was due to lower valuation of its investment properties. The Standard newspaper said the main board-listed firm registered turnover of HK$50.6 million or 82.8% less than the previous year. In a big reversal from last year's operational profit of HK$40.8 million, this year's operations lost HK$42.7 million, including a deficit of HK$60 million on revaluation of investment properties. Finance costs, however, dropped 85.1% to HK$1.6 million, as the company benefited from the low interest rate environment. Loss per share was 21.7 cents compared with earnings per share of 9.6 cents the previous year, The Standard said. To view firm's interim 2001-2002 annual report, click on this link: http://bankrupt.com/misc/dynamic_holdings.pdf SEA VIEW: First of Two Winding Up Petitions To Be Heard Nov. 13 --------------------------------------------------------------- Sea View Construction Limited is scheduled on November 13, 2002 to appear before the High Court of Hong Kong, where it faces a winding up petition. This is one of two petitions pending against the firm. Leung Sau King, Judianna of Flat G 24th Floor, Block 21, Laguna City, Kowloon, Hong Kong lodged the petition on August 17, 2002 with the aid of Tam Lee Po Lin, Nina. Creditors and other interested parties, who support or oppose the making of an order on the petition, are urged to attend the hearing. They are required, though, to notify in writing Tam Lee Po Lin, Nina, which holds office at the 27th Floor, Queensway Government Offices, 66 Queensway, Hong Kong. The Notice must state the name and address of the person, or if a firm or his or their Solicitor (if any) and must be served or if posted, must be sent by post in sufficient time to reach the abovenamed law firm not later than six o'clock in the afternoon of the 12th day of November 2002. SEA VIEW: Winding Up Petition Set for Hearing on November 20 ------------------------------------------------------------ The High Court of Hong Kong will hear on November 20, 2002 at 9:30 in the morning the winding up petition filed against Sea View Construction Limited. Lai Kin Hei of Room 1613, Pak Shue House, Lei Muk Shue Estate, New Territories, Hong Kong brought the petition on September 17, 2002 with the assistance of Tam Lee Po Lin, Nina. Creditors and other interested parties are encouraged to attend the hearing. Any person who intends to appear in court on November 20 must notify in writing Tam Lee Po Lin, Nina, which holds office at the 27th Floor, Queensway Government Offices, 66 Queensway, Hong Kong. The Notice must state the name and address of the person, or if a firm or his or their Solicitor (if any) and must be served or if posted, must be sent by post in sufficient time to reach the abovenamed law firm not later than six o'clock in the afternoon of the 19th day of November 2002. QPL INTERNATIONAL: Rumored Share Placement Causes Suspension ------------------------------------------------------------ The Hong Kong Stock Exchange halted yesterday trading of QPL International Holdings Ltd, pending a statement about a proposed share placement and subscription. Reuters, which tried but failed to get a reaction from company officials, said the firm's shares finished at HK1.79 on Wednesday, an 11 percent improvement in the last month, although still 34% down from the level three months ago. The company makes integrated circuit leadframes and provides assembly and testing of integrated circuits for multinational companies in North America, Europe and Asia. QPL has been listed on the Stock Exchange of Hong Kong since 1989. WISE CROWN: November Hearing on Winding Up Petition Set ------------------------------------------------------- The winding up petition filed against Wise Crown International Limited is scheduled for hearing before the High Court of Hong Kong on November 13, 2002. Pong Hei Chin of Room 506, Yiu Wah House, Tin Yiu Estate, Tin Shui Wai, New Territories, Hong Kong brought the petition on September 9, 2002 with the aid of Tam Lee Po Lin, Nina. Any creditor or interested party may attend the hearing. They only need to notify in writing Tam Lee Po Lin, Nina, whose office is located at the 27th Floor, Queensway Government Offices, 66 Queensway, Hong Kong. The Notice must state the name and address of the person, or if a firm or his or their Solicitor (if any) and must be served or if posted, must be sent by post in sufficient time to reach the abovenamed law firm not later than six o'clock in the afternoon of the 12th day of November 2002. ZHENGZHOU YUTONG: Regulator Orders 300T Fine for Flawed Report -------------------------------------------------------------- China's Securities Regulatory Commission slapped early this week Zhengzhou Yutong Coach Manufacturing Co. with a 300,000-yuan fine for providing incorrect information in its 1999 annual report, the Dow Jones Newswires says. The regulator had found out that the company provided incorrect figures for bank deposits and various asset and liability data. Aside from the company, the commission also levied former president Lu Fayao 50,000-yuan fine, while other current and former executives were ordered to pay smaller amounts. The company is the latest in a series to be punished for faulty bookkeeping. Tuesday, major port operator Jinzhou Port Co. (Q.JZH) said the Ministry of Finance had fined it 100,000 yuan for improper accounting, the report says. ================= I N D O N E S I A ================= BANK CENTRAL: Unstable Environment Tempers Sound Balance Sheet -------------------------------------------------------------- Fitch Ratings gave Bank Central Asia a "B" rating on both its short-term and long-term senior foreign currency. Aside from this, the rating agency also affirmed the Individual and Support ratings of the bank at "C/D" and "5T" respectively. Although the rating agency believes the bank has a "sound balance sheet and strong profitability," the difficult operating environment of Indonesia, coupled by the government's weak financial position and low long-term foreign currency rating, makes the bank relatively constrained. A "C/D" rating denotes that a bank has weaknesses of internal and/or external origin. Usually, banks like this face certain issues in profitability and balance sheet integrity, franchise, management, operating environment or prospects. A "5" denotes that outside support may be possible but cannot be relied upon, while the suffix "T" indicates significant existing or potential transfer risk of economic and/or political origin, which might prevent support for foreign currency creditors. Established in 1957, BCA is Indonesia's third largest bank with IDR105 trillion (US$11.3 billion) in assets representing 10% of the system. Publicly listed, BCA is majority owned by a consortium comprising the Farallon and Djarum groups - the former being a US-based hedge fund, the latter Indonesia's third largest cigarette manufacturer. BCA transferred most of its loans to the Indonesian Bank Restructuring Agency in the wake Indonesia's 1997 economic crisis. As a result its loan book is now small (14% of assets) with most of its assets in the form of re-capitalization bonds issued by the Indonesian government (59% of assets and predominantly carrying a floating rate of interest). For more information, contact Peter Tebbutt, Ambreesh Srivastava, Singapore by Phone: +65 6 336 6801. You may also contact Kris Anderson by Phone: 44 20 7417 4361 ========= J A P A N ========= ALL NIPPON: JCR Assigns A- Rating --------------------------------- Japan Credit Rating Agency has assigned an A- rating to All Nippon Airways Co. Ltd.'s bonds to be issued under the shelf registration. Issue bonds no.14 Amount: Y20 billion Issue Date: November 11, 2002 Due Date: November 11, 2005 Coupon: 0.95 percent Covenants: Negative Pledge & Collateralized Commissioned Shelf Registration Maximum: Y200 billion Valid: two years from March 26, 2002 Rationale All Nippon Airways (ANA) is Japan's major airline, having 50 percent shares in domestic lines. It has been expanding international lines since it joined Star Alliance in October 1999. The sales for fiscal 2001 ended March 31, 2002 were broken down into domestic passenger lines (47.3 percent), international passenger lines (12.1 percent) and others (40.6 percent). The Japanese airline industry was damaged by deterioration in the business environment after the terrorist attacks on the U.S. occurred in September 2001. The damage put set back on the Company's mid-term plan for improvement in the earnings and financial structures. Demand for passenger lines is now rising. ANA's performance will likely recover in fiscal 2002, accordingly. To attain the goals for improvement in the financials, it needs to make further efforts. JCR will watch carefully the improvement in the earnings and financial structure. JCR announced the downgrade of the rating for the Company from A to A- on August 30, 2002. Since then there have been no significant changes in the performance and financial structure of the Company. The bond proceeds will be used for capital spending and repayments of the bonds and borrowings. The issue will not have any significant impact on the financial structure, however. Japan Airlines and Japan Air System integrated their operations in October 2002. The integration changed the Japanese domestic line market into rivalry between ANA and Japan Airlines group. Competition may intensify in short run. JCR will examine carefully the earnings trend as well as business environment to be reflected in the rating for ANA. According to Wright Investor's Service, at the end of 2002, All Nippon Airways Co Ltd (ANA) had negative working capital, as current liabilities were 444.86 billion yen while total current assets were only 407.83 billion yen. NIIGATA ENGINEERING: IHI Converts Power Division Into Unit ---------------------------------------------------------- Ishikawajima-Harima Heavy Industries Co. Limited (IHI) will rehabilitate the power system division of bankrupt Niigata Engineering Co by turning it into a subsidiary in February, AFX Asia and Nihon Keizai Shimbun reported on Tuesday. The rehabilitation plan includes cutting the Company's work force by 20 percent to 1,000 employees and postpones the closure and integration of Niigata's six plants in Niigata and Gunma Prefectures for the time being. IHI will spend 2 to 3 billion yen to acquire the power system division of Niigata Engineering, which posted 50 billion yen in sales before the bankruptcy. IHI will also acquire 5 billion yen of Niigata's total debt of 227 billion yen. Ishikawajima-Harima will repay the 5 billion yen over 10 to 20 years using profits to be earned by the unit. NTT DOCOMO: Extends Wireless LAN Service to Haneda Airport ---------------------------------------------------------- NTT DoCoMo, Inc. will extend its "Mzone" wireless LAN service area to include Tokyo International Airport (Haneda), beginning October 28, 2002. Launched in July 2002, Mzone service is currently available in 12 locations, including hotels and office buildings, throughout Tokyo and its vicinity. DoCoMo plans call for the continued expansion of the Mzone wireless LAN service area to some 100 spots within this year in the Tokyo region. At Haneda Airport, the service is available at the following locations: First floor: Central airport lounge Second floor: Departure gate lounges 2, 3, 13, 14, 22 and 23 Main entrance of Big Bird Central Shopping Mall Galleria PC lounge Third floor: South airport lounge Application for Mzone service, which is 2,000 yen per month (including unlimited Internet access), can be made via DoCoMo's website at (www.wlan.nttdocomo.co.jp.) No sign-up fee is necessary. Users can also apply for the service at three DoCoMo branch offices at Marunouchi, Shinjuku and Shibuya, where a sign-up fee of 1,000 yen will be required. DoCoMo has been actively promoting mobile multimedia communications. Recent introduction of wireless LAN service boosts the variety of offerings the Company provides, such as 3G and other high-speed data transmission services. NTT DoCoMo www.nttdocomo.com is the world's leading mobile communications Company with more than 40 million customers. The Company provides a wide variety of leading-edge mobile multimedia services. These include i-mode, the world's most popular mobile internet service, which provides e-mail and internet access to over 33 million subscribers, and FOMA, launched in 2001 as the world's first 3G mobile service. Earlier this month, DoCoMo said it would write down 573 billion yen ($4.6 billion) for the first six months ended September 30 to account for the declining value of its investments in AT&T Wireless Services Inc., KPN Mobile NV and Hutchison 3G HK Holdings Ltd., TCRAP reports. The write-downs are in addition to the 812.8 billion yen in losses it booked last year after re-evaluating its overseas holdings. Contact: NTT DoCoMo Takumi Suzuki suzukitaku@nttdocomo.co.jp 81 (0) 3 5156 1111 PENTA-OCEAN: Moody's Reviews Ba3 Rating For Possible Downgrade -------------------------------------------------------------- Moody's Investors Service has placed Penta-Ocean Construction Co. Ltd.'s Ba3 issuer rating under review for possible downgrade. The action reflects Moody's growing concern that Penta-Ocean's profitability and financial profile will remain pressured over the intermediate term by public spending cuts and Japan's depressed economy. The Company announced a revision to its earnings for this fiscal year. Penta-Ocean expects a Yen 17.5 billion non-consolidated net loss in 2002 after Yen 26 billion in extraordinary losses, including Yen 16.6 billion in losses for related companies and unrealized loss of Yen 1.9 billion on a property to be sold. In its review, Moody's will reassess the Company's ability to improve its earnings in the difficult operating environment that now prevails. Moody's will also assess its capacity to restore its capital position within a reasonable time frame under its new management plan. Penta-Ocean Construction Co. Ltd. is a second-tier general construction Company in Japan and is a leading global marine construction contractor. SAGAMI RAILWAY: JCR Affirms BBB+ Rating --------------------------------------- Japan Credit Rating Agency has affirmed the BBB+ rating of Sagami Railway Co., Limited on the following bonds: Issues Amount(bn) Issue Date Due Date Coupon convertible bonds no.10 Y15/Apr. 22, 1996/Sept. 30, 2003/0.450% bonds no.1 Y10 / Dec. 22, 1997/Dec. 22, 2004/2.300 % convertible bonds no.11 Y15/Apr. 22, 1996/Sept. 30, 2005/0.550% bonds no.6 Y10 / May 25, 1999 / May 25, 2006 / 2.050 % bonds no.4 Y10 / May 26, 1998 / May 26, 2006 / 2.425 % bonds no.2 Y10 / Dec. 22, 1997 / Dec. 21, 2007 / 2.750 % bonds no.5 Y10 / Sept. 18, 1998 / Sept. 18, 2008 / 2.600 % bonds no.7 Y10 / May 26, 1999 / May 25, 2009 / 2.450 % bonds no.8 Y10 / Apr. 26, 2000 / Apr. 26, 2010 / 2.525 % Rationale: Sagami Railway has been restructuring the group operations since it announced the restructuring plan two years ago. The restructuring process was delayed, however, due to the severe plan to allocate the one line of business to a Company. Sagami Railway is now overhauling each of the businesses in accordance with profitability and contribution of each of them to the business activation along the railway lines. It will divest itself of the parent bus operations, spinning off into a separate Company in fiscal 2004. It is carrying on the transfer of the business for every business office. Earnings from Yokohama Bay Sheraton dropped far below the forecasted amount, causing the recovery of investments to delay. Although the capacity utilization rate increased to the forecasted level, prices dropped sharply. Furthermore, wedding and banquet business has been lackluster. Drastic measures to reduce cost should be carried out. Although the consolidated to unconsolidated multiple for pretax profit before extraordinary items increased to more than 1.0x, the net income remains low. It offset the unrealized loss on leasing buildings with the unrealized gains on them in the process of forming new companies through property contribution in kind in fiscal 2000. JCR is concerned about the subsequent fall in real estate prices. Sagami Railway plans to reduce the interest-bearing debt by 70 billion yen for the coming 5 years through introduction of cash management system, limiting the capital spending to 60 percent of depreciation. According to Wright Investor's Service, at the end of 2002, Sagami Railway Co Ltd had negative working capital, as current liabilities were 186.33 billion yen while total current assets were only 149.33 billion yen. TAISEI CORPORATION: Offering Y20B 4-Yr Bonds Due 2006 ----------------------------------------------------- General contractor Taisei Corporation is offering 20 billion yen of four-year bonds geared toward retail investors via joint-lead managers Mizuho Securities Co. and Shinko Securities Co., Dow Jones said Thursday. The terms of the bonds are as follows: Amount: Y20 Billion Maturity: November 15, 2006 Coupon: 1.50 percent Issue Price: 100.00 Payment Date: November 15, 2002 Fees: 0.60 percent (total) Debt Ratings: BBB+ (R&I) Denominations: Y1 Million Chief Commission Bank: Mizuho Corporate Bank Interest is payable semiannually. Even though Taisei has urgently been improving its financial composition, the interest bearing debt burden remains heavy and its balance against cash flow needs to be improved, TCRAP reports. In addition, it may be necessary to further dispose of development real estate and other assets held throughout the group. Taisei Corporation is one of Japan's major general contractors, with strengths in large-scale construction projects such as urban redevelopment projects. TAISEI FIRE: Files Y800M Suit Against Ex-Managers ------------------------------------------------- Kazuhiko Shimokobe, the trustee of the collapsed Taisei Fire & Marine Insurance Co., has sued nine former Company top executives for damages totaling 800 million yen, Kyodo News reported on Thursday. The report did not mention the executives' names. The executives are accused of negligence of duty and issuing illegal dividend payments. *Fitch Comments on Japan's Banking System ----------------------------------------- Fitch Rating Agency has long pointed the weakness of Japan's bank capital as well as the need for strict, uniform classification of credits and for building loan loss reserves to adequate and realistic levels. The agency therefore notes its concern over the delay in the announcement of banking system reforms. The delay makes it clear that opposition to genuine banking system reforms is strong and will fail without strong leadership from Prime Minister Junichiro Koizumi. If the forces that are resistant to genuine reform succeed in slowing change to the plodding pace of the first 18 months of the Koizumi administration, the ultimate costs to the banks and the economy will be far greater than if action is carried out resolutely. Such additional costs for resolving bank problems would in many cases be covered only by higher public sector outlays and fiscal deficits, thus further straining the ultimate source of support for the banks, the Japanese government itself. Given the need for immediate remedial policy action, a continuation of the piecemeal 'muddle through' approach of recent years would likely result in Fitch taking negative rating actions on Japan's banking sector. ========= K O R E A ========= CHOHUNG BANK: Selling Card Operations to GE Capital --------------------------------------------------- Chohung Bank agreed to sell a 49 percent stake in its credit card operations to GE Capital for 700 billion to 800 billion won, the Maeil Business Newspaper and Dow Jones reported Thursday. The Company also plans to sell less than a 4 percent stake in itself to GE Capital, the report says. TCR-AP reported that the Korean government has decided to postpone its plan to sell off its 15 percent stake in Chohung Bank to foreign investors later this year. The state-run Korea Deposit Insurance Corp. (KDIC) now owns 80 percent of Chohung Bank as the government injected 2.71 trillion won into the bank to normalize its operation amid the 1997-1998 financial crisis. CHOHUNG BANK: Shinhan Declares Interest in 80% Stake ---------------------------------------------------- Shinhan Financial Group Co. (SFG) and two unidentified foreign financial firms want to buy the government's entire 80 percent stake in Chohung Bank, the Seoul Economic Daily and Bloomberg reports. Others have offered to purchase part of the equity. Texas-based Lone Star Funds and South Korea's Dongwon Group also submitted letters for Chohung Bank. DAEWOO MOTOR: Polish Unit Aims to Avoid Bankruptcy -------------------------------------------------- Shareholders of Daewoo-FSL Motor Polska, the Polish unit of troubled Daewoo Motor, decided to create a new Company to help save the Polish factory from bankruptcy, according to AP Online on Wednesday. The plan is still to be accepted by a court in Korea, which is overseeing the bankruptcy of Daewoo Motor, and by the Korean Company's creditors. Daewoo-FSO's overall debt is 4.8 billion zlotys ($1.17 billion). It lost 1.1 billion zlotys ($265,000) in 2001 and 2 billion zlotys ($495,000) a year earlier. To improve the Company's finances, shareholders agreed to raise its capital by 1.6 billion zlotys ($390,000), helping it pay back some of its debts to Daewoo Motor Co. Daewoo Motor Co. filed for bankruptcy last November after amassing $17 billion in debt. General Motors Corp. signed a deal in April to acquire key components of Daewoo, but Polish factories were excluded. HYUNDAI PETROCHEMICAL: Final Bidding Set For Next Week ------------------------------------------------------ Goldman Sachs, lead manager for the sale of Hyundai Petrochemical Co. (HPC), will hold a final bidding next week to sell HPC and select a primary candidate, the Seoul Economic Daily and Dow Jones reports. The firms who participated in the first round of bidding held last month are LG Chem Ltd., Honam Petrochemical Corp., Ripplewood of the U.S. and J.P. Morgan. Creditors are planning to sign a preliminary sale agreement in November and wrap up the deal early next year. In 2001, Hanvit and 64 other creditors approved a 2 trillion won rescue for Hyundai Petrochemical, resulting to a first- quarter profit of 35 billion won from a 77.6 billion won loss at the end of last year, TCRAP reports. Creditors, who now fully own Hyundai Petrochemical following the debt bailout, plan to sell all Company shares by year-end. =============== M A L A Y S I A =============== AUSTRAL AMALGATED: Schedules AGM on November 15 ----------------------------------------------- The 63rd Annual General Meeting (AGM) of Austral Amalgamated Berhad (Special Administrators Appointed) will be held at the Bintang Room, Park Inn International Kuala Lumpur, 51-A, Changkat Bukit Bintang, 50200 Kuala Lumpur on Friday, 15th November, 2002 at 10.30 a.m. to transact the following business: AGENDA 1. To receive and to adopt the Statutory Financial Statements for the year ended 30th June, 2002 together with the Reports of the Directors and Auditors thereon. (RESOLUTION 1) 2. To re-elect Mr. Tow Kong Liang who retires pursuant to Article 101 of the Company's Articles of Association and being eligible offers himself for re-election. (RESOLUTION 2) 3. To re-appoint Messrs PricewaterhouseCoopers as Auditors of the Company and to authorise the Directors to fix their remuneration. (RESOLUTION 3) 4. To transact any other business for which due notice shall have been given. Note: 1. A member of the Company is entitled to appoint a proxy to attend the meeting and vote in his stead. A proxy may but need not be a member of the Company. The instrument appointing a proxy should be deposited at the Company's Registered Office at Level 12, Menara AA, 247 Jalan Tun Razak, 50400 Kuala Lumpur, not less than 48 hours before the time for holding the meeting or adjournment thereof. 2. The instrument appointing a proxy must be in writing under the hand of the appointer or his attorney duly authorised in writing or, if such appointer is a corporation, under its common seal or the hand of an officer or attorney duly authorized. 3. Where a member of the Company is an authorized nominee as defined under the Securities Industry (Central Depositories) Act 1991, it may appoint at least one proxy in respect of each securities account it holds with ordinary shares of the Company standing to the credit of the said securities account. JUTAJAYA HOLDING: Answers KLSE Queries on Unit's Default -------------------------------------------------------- Jutayaya Holdings responds to Kuala Lumpur Stock Exchange queries as follows: 1. The significant decline in business of the subsidiary Action Wear (M) Sdn Bhd (AW) has seriously affected the cash flow of Jutayaja Holding Berhad. As a result of this, the Company is not in the position to service the interest and cause the default in payment. 2. The Holding Company has engaged Financial Advisor to formulate a scheme of debts restructuring and the details will be announce as and when the scheme is finalized. 3. Other than the Corporate Guarantee given by the Holding Company, we are not in the position to anticipate the finance lossess to be incurred by the Company. The Company is seeking the Legal Advisor to look at the legal implication of the action. 4. The above default will empower the debenture holder to appoint a receiver or receiver and manager. 5. No cross default was constituted. 6. Form 16D stated that AW has default in payment of RM3,198,936.77 as at 31st August 2002 with the contractual interest at 3.50% per annum on the above principal sum until the whole amount fully settled. The above default has been continued until seven (7) days before this notice was served. 7. The Bank Utama (Malaysia) Berhad as a Chargee, under the Section 254 of National Land Code, AW is required to restore the default within seven (7) days from this notice served. If AW fails to restore the default within the specified period, the Chargee will apply for auction. KLSE refers to Jutayaja Holding Bhd's announcement dated October 21, 2002 in respect of the aforesaid matter. In this connection, the Company is requested to furnish the Exchange the following additional information for public release: 1. The reasons for the default in payments; 2. The measure by your Company/Action Wear (M) Sdn Bhd (AW) to address the default in payments; 3. The financial and legal implications in respect of the default in payments including the extent of your Company's/AW's liability in respect of the obligations incurred under the agreements for the indebtedness; 4. In the event the default is in respect of payments under a debenture, to specify whether the default will empower the debenture holder to appoint a receiver or receiver and manager; 5. Whether the default in payment constitutes an event of default under a different agreement for indebtedness (cross default) and the details thereof, where applicable; 6. Explain Form 16D - statutory demand for foreclosure; and 7. That your Company shall thereafter be required to make periodic announcements on a monthly basis of the current status of the default and the steps taken by your Company/AW to address the default until such time when the default is remedied. L&M CORPORATION: New Company to Assume Firm's Obligations --------------------------------------------------------- Troubled investment holding company, L&M Corporation, plans to transfer its listing status to a new company, which will then be listed in the Second Board of the Kuala Lumpur Stock Exchange. According to news agency Bernama, the new entity will acquire the entire equity interests in Prinsiptek (M) Sdn Bhd, Jeram Perwira Sdn Bhd, NBL Land Development Sdn Bhd and Sekinchan Jaya Sdn Bhd, the construction activities of L&M Corporation. The company is currently pursuing a corporate and debt restructuring under a special administrator. The report says setting up a new company is one of the key features of the restructuring plan. The other features are: capital reduction and consolidation of ordinary shares in L&M and proposed exchange of L&M shares for shares in a special purpose vehicle to be incorporated (Newco). Also under consideration is a proposed private placement of new Newco shares to placees to be identified later and proposed issuance of irredeemable convertible unsecured loan stocks and cash payment by Newco for the settlement of the liabilities of L&M. The report says the company is also considering the sale by Datuk Foo Chu Jong and Foo Chu Pak of their Newco shares to placees to be identified later or such other mechanism to be implemented by the substantial shareholders of Prinsiptek to ensure that the public shareholding spread requirement of the KLSE is complied with by the Newco. Bernama says the proposed corporate and debt restructuring scheme will be subjected to, inter-alia, a due diligence and valuation exercise to be conducted on all aspects of the proposal and all requisite regulatory approvals. L&M said that the proposed corporate and debt restructuring scheme will form the basis of a workout proposal to be prepared by the Special Administrators that would be reviewed by an Independent Advisor and submitted to Pengurusan Danaharta Nasional Bhd and the secured creditors of L&M for approval. The workout proposal together with the proposed corporate and debt-restructuring scheme will be submitted to the relevant regulatory authorities for approval prior to its implementation, it added. Special Administrators were appointed for the company late August after it defaulted in the repayment of credit facilities owed to Pengurusan Danaharta Nasional Berhad. The special administrators assumed control of the assets and affairs of L&M effective August 30, 2002. MYCOM BERHAD: Seeks Extension to Stabilize Financial Condition -------------------------------------------------------------- Alliance Merchant Bank Berhad (Alliance) on behalf of the Board of Directors of Mycom Berhad, announced certain variations in the Company's Proposed Restructuring Scheme (Proposed Variations). On October 18, 2002, the Company submitted an application in respect of the Proposed Variations to the Securities Commission (SC) for their consideration and approval. The submissions to the Foreign Investment Committee and Ministry of International Trade and Industry will be made within two (2) months from 18 October 2002. In view of the above, Alliance, on behalf of the Board, announced that the Company has today sought an extension of time from the Kuala Lumpur Stock Exchange (KLSE) to obtain all the necessary approvals from the regulatory authorities to regularize its financial conditions for approximately four (4) months from the date of submission to the SC in relation to the Proposed Variations on 18 October 2002 to 28 February 2003 (Proposed Extension). The Proposed Extension was sought in accordance with Practice Note No. (PN) 4/2001 in relation to Paragraph 8.14 of the KLSE's listing requirements. The Company will make further announcements as and when new development in relation to the Proposed Restructuring Scheme arises. PANGLOBAL BERHAD: Unit Discloses Coal Production Volume ------------------------------------------------------- PanGlobal Berhad announced Thursday that the production volume of timber of its wholly owned subsidiary, Limbang Trading (Limbang) Sdn Bhd for the month of September 2002 was 27,834.76 cubic meters. TCRAP reported in August that Taisho Company Sdn Bhd filed a suit against PanGlobal Berhad and Toweltech Berhad (a former wholly owned subsidiary of PGB until its disposal on 29 December 1995) in the High Court at Penang via Civil Suit No. 22-141- 1991. The suit was in respect of an alleged friendly loan grants the claim to PGB and Toweltech wherein Taisho claimed RM3,688,370.90 from PGB and RM1,822,276.44 from Toweltech with interest at 12% per annum from 1 January 1991 until full settlement. TAP RESOURCES: Seeks Restructuring Scheme Approval -------------------------------------------------- Further to the announcement dated August 26, 2002, Malaysian International Merchant Bankers Berhad announced on behalf of Tap Resources Berhad that the Foreign Investment Committee (FIC) has via its letter dated October 8, 2002 stated that it has no objection to the Proposed Debt Restructuring. The Proposals are now subject to the approvals of: (i) the Securities Commission for the Proposals; and (ii) the Kuala Lumpur Stock Exchange (KLSE) for the following: (a) admission of the irredeemable convertible unsecured loan stocks (ICULS) to the Official List of the KLSE; and (b) listing of and quotation for the new shares to be issued pursuant to the Proposed Rights Issue and the new shares to be issued pursuant to the conversion of the redeemable convertible secured loan stocks and ICULS. ===================== P H I L I P P I N E S ===================== ALL ASIABANK: PDIC Pays P170.48M to All Depositors -------------------------------------------------- The Philippine Deposit Insurance Corporation (PDIC) has paid a total of 170.48 million pesos in deposit insurance claims covering some 7,568 accounts to depositors of the closed All Asiabank Corporation (All Asiabank) since it began its initial claims settlement operation (ICSO) last August 27. The PDIC reported that the 170.48 million pesos payment as of October 10, 2002 represented about 23.91 percent of All Asiabank's estimated total deposit liabilities of 712.84 million pesos. Settled accounts represented about 21.75 percent of the total number of deposit accounts of All Asiabank placed at 35,000 accounts. PDIC representatives were stationed at the branches of All Asiabank until September 24 to service claims of its depositors. Servicing of claims continues at the PDIC office at 2228 Chino Roces Avenue (formerly Pasong Tamo) in Makati City. Depositors who failed to file their claims at the premises of the closed bank may personally visit PDIC or file their claims through mail. Depositors may call PDIC at telephone numbers (02) 810- 4910 to 10 locals 143 and 144 for further inquiries relative to filing of claims. Depositors have until January 24, 2004 to file their claims with PDIC. All Asiabank, owned by Capital Investment, Inc., was ordered closed by the Monetary Board of the Bangko Sentral ng Pilipinas (BSP) on August 2. PDIC took over the bank the same date. For a copy of the press release, visit http://www.pdic.gov.ph/ FIRST E-BANK: Enters Agreement With Banco de Oro ------------------------------------------------ First E-Bank Corporation has signed an agreement effective October 23, 2002, agreeing to the assumption by Banco de Oro Universal Bank (BDO) of a maximum of P10 billion of deposit liabilities, other liabilities and certain bills payable of the Company consideration of BDO's purchase of selected and liquid assets. Effectively, BDO will now manage the liquidity of the Company, while the integration of operations of BDO and the Company and validation of the deposits assumed by the BDO will continue. The effective transfer of banking operations and branches of both banks is aimed on December 2002. The transaction will be submitted to the stockholders of the Company for their approval at the coming annual stockholders' meeting in December 2002. Annual Stockholders' Meeting The annual meeting of the Company's stockholders' is set on December 6, 2002. November 8, 2002 is the record date set for determining the stockholders entitled to vote at said meeting. Subject to final approval of the Board of Directors, the agenda of said annual stockholders' meeting is embodied in the attached proposed notice of stockholders' meeting. For a copy of the disclosure, visit http://bankrupt.com/misc/tcrap_firstebank1024.pdf GLASGOW CREDIT: Investors Expects to Recover 70% of Investments --------------------------------------------------------------- Investors of pseudo-investment firm Glasgow Credit and Collection Services, Inc. expects to recover 79 percent of their investments, the Business World reports. The report said the Securities and Exchange Commission (SEC) has managed to find four bank accounts of Glasgow, which would bring the total frozen accounts to over 800 million pesos. The commission had found four bank accounts worth over 600 million pesos. In August, the Anti-Money Laundering Council (AMLC) froze the bank accounts. This came after the SEC ordered the permanent closure of Glasgow found to have been selling securities without an SEC license. Glasgow's total collections reached 1.16 billion pesos from 9,236 individuals and corporations, during its four months of operations from March 11 to July 11. The report said the SEC has yet to decide on the fate of the 250 individuals, who are claiming 141 million pesos in investments from the Company. However, their names are not included in the master list provided by the Company. TCRAP reported in July that The Securities and Exchange Commission (SEC) has ordered Glasgow Credit and Collection Services, Inc. to permanently stop its operations. A SEC investigation revealed that the pseudo-investment firm was found to have offered securities such as investment contracts to the public. These securities should have been subject to prior registration with the SEC. PHILIPPINE LONG: Rules Out Management Buyout of FirstPac Stake -------------------------------------------------------------- The Philippine Long Distance Telephone Co. rejected speculations that its management led by President Manuel Pangilinan is formulating a management buyout offer for parent First Pacific Co Ltd's stake in the Company, the Philippine Daily Inquirer reports. An unnamed Company official said Pangilinan has been receiving buy-in offers from prospective financial investors in PLDT and have forwarded the same to First Pacific. "These are investors who put money in different companies and are not engaged in the telecoms business," another unnamed source was quoted as saying. "They just want to buy, but as of now, they don't know how much First Pacific is willing to sell." DebtTraders reports that Philippine Long Distance Telephone's 11.375 percent bond due in 2012 (TELP12PHS1) trades between 92 and 94. For real-time bond pricing, go to http://www.debttraders.com/price.cfm?dt_sec_ticker=TELP12PHS1 PHILIPPINE LONG: Wants Supreme Court to Dismiss NTC Ruling ---------------------------------------------------------- Philippine Long Distance Telephone Co. (PLDT) units Smart Communications Inc. and Pilipino Telephone Corporation have asked the Supreme Court to dismiss the National Telecommunications Commission (NTC)'s ruling mandating a minimum six-second charge for mobile phone calls. The Business World reported that the units have been opposing the new pulse-billing rule as it is seen cutting their revenue. The NTC ruling was previously upheld by the Court of Appeals. PHILIPPINE LONG: Shares Down 3.6 percent on Tuesday -------------------------------------------- Shares of Philippine Long Distance Telephone Co. (PLDT) fell 3.6 percent on Tuesday, startled by Fitch Ratings' negative outlook on the Company on Monday and the 5.6 percent loss of its American Depositary Receipts overnight, Dow Jones reports. PLDT was down 8 pesos at 216 pesos on 100,920 shares. The stock has lost 14 percent the past six sessions. Main shareholder First Pacific Co. said it is reviewing its options with respect to its investments in the Philippines, which may result in a reduction of its holding in PLDT from the current 24.4 percent. First Pacific had tried to sell its PLDT stake to the group of tycoon John Gokongwei, but PLDT's management prevented this. PHILIPPINE TELEGRAPH: ASM Set on December 4 ------------------------------------------- The Philippine Telegraph and Telephone Corporation (PTT) furnished to the Philippine Stock Exchange a copy of its SEC Form 17-IS (Preliminary Information Statement) in connection with its Annual Stockholders Meeting (ASM), which will be held on December 4, 2002, at 3:00 p.m., at the 3rd Floor, Astoria Plaza, New York Room, J. Escriva Drive, Ortigas Center, Pasig City. The Agenda, as stated in the Notice of Meeting, shall be as follows: 1. Call to order; 2. Proof of notice of due calling of the meeting; Determination of the quorum; 3. Confirmation of minutes of the annual stockholders' meeting held on November 29, 2002; 4. Presentation of the Annual Report and Report of the President; 5. Presentation and ratification of the acts and resolutions of the BOard of Directors and Management; 6 Election of the members of the Board of Directors; 7. Other matters; 8. Adjournment." As previously announced, "For the purpose of determining the stockholders' entitled to vote at the annual meeting, the record date has been set on October 25, 2002. A copy of the PTT's Preliminary Information Statement is available for reference at the PSE Centre and PSE-Plaza Libraries. For a copy of the press release, go to http://bankrupt.com/misc/tcrap_unitrustdevelopment1024.pdf UNITRUST DEVELOPMENT: PDIC Mulls Liquidation -------------------------------------------- The Philippine Deposit Insurance Corporation (PDIC) is now looking for a possibility of liquidating the closed bank as the sole proponent for the rehabilitation was unable to meet its requirements, reports that Business World. The deposit insurer is, however, unable to pursue liquidation proceedings as the temporary restraining order (TRO) earlier issued by a Makati trial court remains in effect. Unitrust President Francis Yuseco said the Company is still in the middle of talks with Citystate Savings Bank -- the sole proponent for the rehabilitation of Unitrust. "We are still talking (with Citystate Savings). The proposal of First Federal Bank of Taiwan is still there... we're really just deciding what would be best for the bank and who has the best offer," Mr. Yuseco said. First Federal's rehabilitation plan initially commits a capital injection of 285 million pesos. First Federal, which has total resources amounting to $286 million, plans to immediately pay all the advances made by PDIC as well as settle the claims of Unitrust depositors. As the only bidder, Citystate Savings was earlier given until October 15 to get the support of at least 67 percent of Unitrust's shareholders. Citystate officials were not available for comment. ================= S I N G A P O R E ================= ARMSTRONG INDUSTRIAL: Posts Notice of Director's Interest --------------------------------------------------------- Armstrong Industrial Corporation Limited posted a notice of changes in Koh Gim Hoe's interest: Date of notice to Company: 23 Oct 2002 Date of change of interest: 22 Oct 2002 Name of registered holder: Citibank Nominees Pte Ltd Circumstance(s) giving rise to the interest: Open market purchase Shares held in the name of registered holder No. of shares of the change: 100,000 percent of issued share capital: 0.021 Amount of consideration per share excluding brokerage,GST,stamp duties,clearing fee: 0.055 No. of shares held before change: 147,000 percent of issued share capital: 0.032 No. of shares held after change: 247,000 percent of issued share capital: 0.053 Holdings of Director including direct and deemed interest Deemed Direct No. of shares held before change: 453,000 283,000 percent of issued share capital: 0.098 0.061 No. of shares held after change: 553,000 283,000 percent of issued share capital: 0.119 0.061 Total shares: 553,000 283,000 Direct Interest Deemed Interest In own name In Nominee / CPF Account In spouse name No. of shares percent No. of shares percent No. of shares percent Before Purchase 283,000 0.061 417,000 0.090 36,000 0.008 Purchase - 100,000 @$0.055 After Purchase 283,000 0.061 517,000 0.112 36,000 0.008 Based on issued share capital of 463,598,698 ordinary shares of $0.10 par value each According to Wright's Investor Service, at the end of 2001, Armstrong Industrial Corporation Limited had negative working capital, as current liabilities were 35.09 million Singapore Dollars while total current assets were only 26.28 million Singapore Dollars. ASIA PULP: More APP Lenders Back Bali Deal, Says IBRA ---------------------------------------------------- More creditors of debt-laden Asia Pulp & Paper (APP) have shown support for a landmark deal reached last month, Reuters said on Wednesday, citing the Indonesian Bank Restructuring Agency (IBRA). "I've got news that the U.S. (Export-Import Bank) has approved the Bali Accord. They have indicated (they would) join in the restructuring. Also Japanese traders whom I met recently have shown support," IBRA's Chief Syafruddin Tumenggung said. The support would mark the latest progress in winding efforts to restructure its debts of $13.9 billion. APP and its creditors had struck a deal to restructure about half the massive amount, 18 months after the biggest pulp and paper group in Asia outside Japan declared a moratorium on its debts. The Bali Accord deal, signed in the resort island of Bali, will be finalized by the end of the year. Other creditors would be asked to join and had until March 31 to do so. Tumenggung also dismissed concerns over the possibility of adverse impact on the accord following the deadly October 12 bomb blasts in Bali that killed more than 180 people, mostly Westerners. IBRA is the largest single lender to APP, which has its main operations in Indonesia and China but is headquartered in Singapore. DebtTraders reports that Asia Pulp's 11.75 percent bonds due on 2005 (APP7) are trading between 28.5 and 30.5. Go to http://www.debttraders.com/price.cfm?dt_sec_ticker=APP7for real-time bond pricing. CHARTERED SEMICONDUCTOR: Sees 3Q02 Loss of US$88.6M --------------------------------------------------- Chartered Semiconductor Manufacturing Ltd. (CSML) is expecting to post a loss of US$88.6 million in the third quarter ending September 30, the Wall Street Journal reported Tuesday, citing a poll of seven analysts. A loss for the quarter would be the chipmakers seventh in a row. Still, analysts expect the third-quarter loss to be slightly narrower than the US$90.7 million loss in the previous quarter, and considerably better than the year-ago loss of US$118.3 million, as demand for telecommunications-related chips partially offset continued sluggishness in chips used in personal computers and consumer electronics. "The probable exception (to waning demand) is wireless handsets," said Kim Eng Securities analyst Dharmo Soejanto. NetResearch Asia analyst Russell Tan said Company's outlook has become highly uncertain, with end-demand likely to decline over the next one or two quarters as customers digest the inventories built up earlier in the year. The chipmaker hasn't made enough development in attracting more contract customers, despite the fact that outsourcing the capital-intensive, and risky, business of chip production to foundries like Chartered allows chipmakers to focus on other tasks like designing new products, analysts added. CHARTERED SEMICONDUCTOR: May Cut 15-20% of Workforce ---------------------------------------------------- Chartered Semiconductor Manufacturing Ltd. may cut 15 to 20 percent of its workforce, as part of its cost cutting scheme, Bloomberg reports, citing HSBC Securities Analyst Warren Lau. The chipmaker, whose shares have fallen 78 percent this year, is set to report its seventh consecutive quarterly loss. The Company earlier this month raised money from investors for the fourth time in three years. Lau predicted the Company may cut 15 percent to 20 percent of its workforce. As of December 31, Chartered Semiconductor had 3,982 employees. DebtTraders reports that Chartered Semiconductor Mnfg's 2.500 percent convertible bond due in 2006 (CSM06SGN1) trades between 89 and 91. For real-time bond pricing, go to http://www.debttraders.com/price.cfm?dt_sec_ticker=CSM06SGN1 CHARTERED SEMICONDUCTOR: Trims Capital Expenditure Budget --------------------------------------------------------- Chartered Semiconductor Manufacturing Company (CSMC) may trim its capital expenditure budget of $500 million for 2002, Bloomberg said, citing unnamed analysts. Last month, the Company predicted that it would use 40 percent of its chip-making equipment during the quarter. It needs to use 70 percent to break even. The chip industry had its worst year ever in 2001 and analysts say this year isn't looking much better. CSMC's shares have fallen after the Company disappointed investors in September by pricing a sale of $633 million of new shares at S$1 (56 cents) each, a 52 percent discount at the time. Two weeks later, the Company said it would miss its target of doubling revenue in the fourth quarter compared with the first quarter. NEPTUNE ORIENT: Appoints Cynthia Stoddard as CIO ------------------------------------------------ Neptune Orient Lines (NOL) has recently appointed Cynthia A. Stoddard as Group Chief Information Officer, succeeding Hans Hickler, Dow Jones said on Thursday. Stoddard is currently Chief Information Officer of APL Logistics Ltd, the NOL's liner unit. Hickler has been appointed Chief Executive Officer of NOL's supply chain management business, APL Logistics Limited. The shipping line company has been undergoing some restructuring as it tries to cope with a difficult business environment. The Company posted a net loss of US$151.4 million for the first half ending June 30 and is struggling with a heavy debt load of US$2.5 billion. =============== T H A I L A N D =============== BANGCHAK PETROLEUM: State Bank to Grant Short-term Loan ------------------------------------------------------- Cash-strapped refiner Bangchak Petroleum Plc heaved a huge sigh of relief Tuesday after the Thai Cabinet approved a short-term loan package to help the firm repay debts. Citing Energy Minister Pongthep Thepkanjana, Reuters said Krung Thai Bank Plc, a Bangchak shareholder, would extend three billion baht ($68.57 million) in loans to the firm. "Bangchak has the ability to get the new funds from Krung Thai Bank, the government will not guarantee this loan... They are now in talks about the terms of the loan," Mr. Pongthep said. Mr. Pongthep said his ministry was forming a committee to improve Bangchak's long-term financial status as part of a plan to help restructure its 24 billion baht debt. The company's major creditors include the World Bank, to which it owes $38 million, the Government Savings Bank and bondholders. Bangchak is due to repay three billion baht of debts in November and early next year, the report says. Bangchak's two financial advisers, McKinsey and National Securities submitted two options to the board this month to raise the refiner's capital by six billion baht. One of the options involved using a government guarantee to borrow three billion baht and issuing three billion baht in new shares. The other was a six billion baht share offer. Bangchak is 47.9-percent owned by the Thai finance ministry, 24.3 percent by state-owned energy firm PTT Plc, and 7.8 percent by Krung Thai Bank, the report says. Bangchak, which has capacity to produce 120,000 barrels per day, has suffered losses for the last three years. The firm made a net profit of 647 million baht in the first half of this year, mainly because of foreign exchange gains and other extra items, compared with a net loss of 919 million baht in the same period last year, the report says. In April, the company sought government approval for a 3 billion baht capital hike. The firm reasoned at the time that issuing bonds for debt repayment or refinancing could not alone resolve Bangchak's debts totaling Bt23.9 billion. As of April, the company's annual interest burden stood at Bt1.3 billion, despite refinancing the principal last year. The interest burden this year is between Bt1.1 billion and Bt1.2 billion at adjusted rates of 5-6 percent, although the company plans to issue debentures to refinance the loans. TOTAL ACCESS: Exercises 'Greenshoe Option' Due to Robust Demand --------------------------------------------------------------- Restructuring Total Access Communication Plc, Thailand's No.2 mobile phone company, announced early this week that it will exercise a "greenshoe option" to sell one billion baht ($22.86 million) of bonds due to strong demand from investors. According to Reuters, the company will offer 3.5 billion baht of bonds to institutional investors, including the one billion baht greenshoe option. Bookbuilding started Monday. The issue is part of plan to sell up to 5.0 billion baht of its seven-year bonds to refinance debts. The remaining 1.5 billion baht of bonds will be offered to retail investors from October 25-29, the company said. "After the book-building on Monday, demand from institutional investors exceeded supply by two times... We decided to sell 3.5 billion baht bonds to them, which included the greenshoe option of one billion baht," the company disclosed in a statement. The bonds carry a coupon of 5.8 percent. Its underwriters are a Thai unit of ABN AMRO Bank and Siam Commercial Bank. The firm has said the refinancing plan is aimed at reducing interest expenses. The firm had debt of about 47 billion baht at the end of June. The firm's debts amount to 52 billion baht due through 2006. These include $200 million of bonds that investors may convert into stock at $10.50 a share. 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, Larri-Nil Veloso, 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 ***