/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/021126.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 Tuesday, November 26, 2002, Vol. 5, No. 234 Headlines A U S T R A L I A BRAMBLES INDUSTRIES: Sells Heavy Contracting Business BRAMBLES INDUSTRIES: Investors Want Money Back DCS TECHNOLOGIES: Creditors to Take Up Proposed DCA Tomorrow NATIONAL FORGE: CMI Limited to Take Over Automotive Business SATELLITE GROUP: Securities Regulator Sues Ex-managing Director C H I N A & H O N G K O N G ASIA TECH: Winding Up Petition to be Heard December 18 BEST FOUNDATION: High Court to Hear Wind up Petition December 18 CYBERWORKS AUDIO: December Hearing on Winding Up Petition Set DRAGON COAST: High Court to Hear Wind Up Petition December 18 GUANGDONG KELON: Extends Debt Relief to Parent Company LAI SUN: To Issue New Shares, Bonds in Restructuring Plan SEAPOWER RESOURCES: Creditors to Vote on Restructuring Plan SKY RISE: Petition Seeking Wind Up to be Heard December 11 I N D O N E S I A BANK NIAGA: Commerce Asset Names Board Representatives SEMEN GRESIK: October Exports Stall as Total Sales Drop J A P A N ALL NIPPON: Hotel Sales Lend to Y8.11B Net Loss ALL NIPPON: Unveils Consolidated Financial Statements FIRST CREDIT: Lone Star chosen As Sponsor For Failed Lender MARUDAI FOOD: Returns to Y1.94B Profit MIZUHO FINANCIAL: Unveils Restructuring Scheme NIPPON TELEGRAPH: Spending Y300B Yen on Faster Network NIPPON TELEGRAPH: Unit Slashes ADSL Service Fees TOKYO ELECTRIC: Offering Y100B of 10-Yr Bonds KAWAI MUSICAL: Posts H102 Net Loss of Y3.65B KK NAKAZATO: Collapses With Y10B in Debt SANRIO CO.: Widens Net Loss to Y13.26B SEIYU LIMITED: Takes Y29B Loss Due to Unit Sale SNOW BRAND: Five Officials Get Suspended Terms SNOW BRAND: Expects 45 Billion Yen Loss in First Half TOBISHIMA CORPORATION: Narrows Net Loss to 5.37B K O R E A CHOHUNG BANK: IMF Supports Government's Stake Sale Plan DAEWOO GROUP: Banks Sue Accountants for Daewoo Losses DAEWOO MOTOR: Completes Debt-Workout Program DAEWOO MOTOR: Buying Back Shares Worth Y30B HYNIX SEMICONDUCTOR: Creditors Meet Today on Possible Rescue HYNIX SEMICONDUCTOR: U.S. Agency Starts Micron Charges Probe KOREA THRUNET: Reducing Capital to 77.6M Shares M A L A Y S I A BRIDGECON HOLDINGS: Liquidates Wholly Owned Subsidiary CONSTRUCTION AND SUPPLIES: Investment Committee OKs Debt Plan METROPLEX BERHAD: Continues to Sell Debt Plan to Creditors TECHNO ASIA: Sets Off Properties Worth RM324M to Pay Debts P H I L I P P I N E S GLASGOW COLLECTION: SEC fines Glasgow P13.5M MANILA ELECTRIC: Gives Exchange Corrected S.Court Resolution NATIONAL STEEL: Needs Capital Infusion of Php2B S I N G A P O R E CONCRETE LIMITED: Losses to Exceed $1.9M KOH BROTHERS: Voluntarily Winding Up JV Company NATSTEEL LIMITED: Posts Notice of Shareholder's Interest UNITED OVERSEAS: Voluntarily Winding Up Unit T H A I L A N D THAI PETROCHEMICAL: Wants $3.7B Restructuring Plan Extended - - - - - - - - ================= A U S T R A L I A ================= BRAMBLES INDUSTRIES: Sells Heavy Contracting Business ----------------------------------------------------- Brambles Industries completed the sale of Brambles Heavy Contracting to Abnormal Load Engineering Ltd of the UK on November 22. Brambles Heavy Contracting is a group of companies specializing in Heavy Lift and Transportation, with locations in the UK, Netherlands, Spain, Norway, USA and Malaysia. The purchase price for the business of EUR15.4 million is approximately Brambles' net asset value. Around EUR2.8 million of the purchase price will be paid when working capital is collected with the balance to be paid in cash on signing. In the year to June 30, 2002, the business had sales of EUR22 million. The sale is not expected to have a material effect on the Group's earnings. The sale is effective from October 31, 2002 The Brambles Industries Group is globally headquartered in Sydney, Australia. For further information, contact: SYDNEY All Enquiries: Edna Carew Group Manager Communications +61 (0) 2 9256 5204 LONDON Media: Richard Mountain, Financial Dynamics +44 (0) 20 7831 3113 Investor: Sue Scholes Head of Investor Relations +44 (0) 20 7659 6012 BRAMBLES INDUSTRIES: Investors Want Money Back ---------------------------------------------- Shareholders of Brambles Industries were expected last night to demand the scale down, if not the return of hefty executive compensation package, especially those awarded to managing director Sir C.K. Chow and finance director David Turner. According to The Age, major funds are believed to have raised the issue last week with Brambles Chairman Don Argus, after the once-sturdy blue-chip company made its third profit warning in 12 months, this time due to problems with its CHEP pallet business in Europe. The company revealed that it would need to spend $238 million as part of a two-and-a-half year restructuring program. Investors were expected to scrutinize the company's performance over the last 12 months during the company's simultaneous annual meeting in Sydney and London. Brambles shares have dropped 32% to six-year lows since the profit warning last week and have lost 58% in the past 12 months, The Age said. Several major fund managers are believed to have spoken to Mr. Argus. They expressed anger at the wholesale revision in Brambles' outlook so soon after the company's results in August, when Mr. Turner assured the market that the company had "turned the corner." The Age says some major shareholders had indicated before the annual meeting that they would vote against resolutions to be put to the meeting, particularly an item on the company's remuneration policy for senior management. Sir C.K. received total remuneration for the year to June, a period in which Brambles shares fell 18 percent, of $3.3 million including a performance-related bonus of $540,000. Mr. Turner received nearly $2.1 million, with $310,000 in bonuses. "I think the recipients of the bonuses ought to very carefully consider their position and whether, in the interests of the company and shareholders, they should hand them back," said Stephen Matthews, a director of the Australian Shareholders Association, during an interview with The Age. Others suggested Brambles needed to review its remuneration policies to align management with the performance of the company. "Given that Brambles stock is off almost 60 percent in the past 12 months, as an investor you'd like to see that reflected in executive's remuneration," Troy Angus from BT Financial Group told The Age. DCS TECHNOLOGIES: Creditors to Take Up Proposed DCA Tomorrow ------------------------------------------------------------ This is a letter by Michael J. Humphris, joint and several administrator of DCS Technologies, to the Australian Stock Exchange, dated November 22, 2002: Dear Sir: I refer to my appointment as Joint and Several Administrator of DCS on October 2, 2002 pursuant to Section 436A of the Corporations Act 2001. I advise that the Australian Securities and Investments Commission has granted an extension of time to hold DCS's Annual General Meeting until January 31, 2003. A proposal for a "Deed [of] Company Arrangement" (DCA) is currently being considered by DCS's creditors and will be voted on at the Second Meeting of Creditors to be held on November 27, 2002. The outcome of the meeting and details of the proposed DCA will be communicated to the ASX in due course. If you have any queries in relation to the above please contact Steven Schneider of my Melbourne office on (03) 9603 0263. Yours faithfully Michael J Humphris Joint and Several Administrator For more information, contact Peter Abotomey (Chairman), John Love (Director) or Desmond W Ferguson (Director) by Mail: Bryant & Bryant, Level 6, 271 William Street, MELBOURNE, VICTORIA, AUSTRALIA, 3000 by Phone: 03 9600 1000 or 03 9600 4747 (fax) or visit the firm's Web site: http://www.dcs.com.au NATIONAL FORGE: CMI Limited Taking Over Automotive Business ----------------------------------------------------------- David McEvoy and Nick Brooke, receivers and managers of National Forge (ASX: NFG) announced Monday that CMI Limited (ASX:CMI) was the preferred purchaser of the company's automotive business. Mr. McEvoy of PricewaterhouseCoopers said the sale of the National Forge automotive business will be an acceptable outcome for all stakeholders involved, including key automotive customers, unions and for the motor vehicle industry generally. "We are very pleased to be able to announce the impending sale of the National Forge automotive business to CMI Limited and expect the sale will settle promptly after contracts are executed," Mr. McEvoy said. "This deal will ensure the automotive business of National Forge continues and 170 jobs will be saved." He said the National Forge businesses could not continue in their present form and redundancies will be an unavoidable consequence. However, the CMI Limited deal will enable the PricewaterhouseCoopers receivers to save the majority of the jobs and careers in the company's automotive division. "We have, and will continue to work hard with all key stakeholders, including the relevant unions, to facilitate the best outcome for employees, customers and the motor vehicle industry," he said. Early this month, four automotive industry players temporarily financed the automotive parts operations of National Forge, which has fallen into receivership. The group led by carmakers Holden and Ford committed to sustain the support for about two weeks or until a buyer can be found for the ailing company. The other two members of the group are parts maker Dana and Ion. The two parts makers buy forgings from National Forge and build them into rear axle and differential systems sold to the two carmakers. Troubled Company Reporter-Asia Pacific has learned there are currently two companies interested in buying National Forge, which holds a unique position in the Australian forging industry. Apart from the automotive parts, National Forge is a leading manufacturer of forged titanium products, supplying fan blades for power station turbines and golf club heads. The company went into receivership after the US-based GE Power Systems Aerofoils canceled the bulk of its turbine blade order for the year as construction of power stations slumped in the wake of the Enron collapse. The receivers were appointed by National Forge's main creditor, GE Capital Finance, another arm of the sprawling GE group. Dana is the leading supplier of rear axle components to Holden and Ford. Ion's BTRA subsidiary makes differentials for rear- wheel drive cars, as well as automatic transmissions. SATELLITE GROUP: Securities Regulator Sues Ex-managing Director --------------------------------------------------------------- Greg Fisher, the former managing director of failed The Satellite Group Limited, has been committed to face trial on further charges brought by the Australian Securities and Investments Commission (ASIC). ASIC alleges that as an officer of The Satellite Group (Ultimo) Pty Limited (Satellite Ultimo), a wholly owned subsidiary of Satellite, Mr. Fisher improperly used his position to gain a financial advantage for himself to the value of $250,000. It is alleged that in September 1999, Mr. Fisher entered into an agreement with a proposed purchaser of a unit in a property development undertaken by Satellite Ultimo whereby $250,000 of the purchase price would be offset against Mr. Fisher's purchase of a Dynacraft 46-foot luxury motor yacht. ASIC also alleges that Mr. Fisher improperly used his position to gain an advantage for himself when he used Satellite funds to personally sponsor Alex Perry, a fashion designer in Mercedes Fashion Week 2000. Between April and June 2000, Mr. Perry was paid $220,423 via Mr. Fisher's personal sponsorship. Mr. Fisher will be tried with one count under section 232(6) and six counts under section 184 of the Corporations Law. He will next appear at the Sydney District Court on November 29, 2002. The matter is being prosecuted by the Commonwealth Director of Public Prosecutions. ================================ C H I N A & H O N G K O N G ================================ ASIA TECH: Winding Up Petition to be Heard December 18 ------------------------------------------------------ Asia Tech Holdings Limited faces a winding up petition, which the High Court of Hong Kong will hear on December 18, 2002 at 10:00 in the morning. Epicor Software (North Asia) Limited whose registered office is located at Unit 4111, cosco Tower, Grand Millennium Plaza 183 Queen's Road Central, Hong Kong filed the petition on October 23, 2002. Haldanes represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Haldanes, which holds office at the 8th Floor, Ruttonjee House, 11 Duddell Street, Central, Hong Kong. BEST FOUNDATION: High Court to Hear Wind up Petition December 18 ---------------------------------------------------------------- A petition seeking the wind up of Best Foundation Iron & Steel Industrial Limited is scheduled for hearing before the High Court of Hong Kong on December 18, 2002 at 9:30 in the morning. Bank of China (Hong Kong) Limited whose registered office is located at 14th Floor, Bank of China Tower, No. 1 Garden Road, Central, Hong Kong filed the petition on October 2, 2002. Koo and Partners represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Koo and Partners, which holds office at the 21st-22nd Floors, Bank of China Tower, 1 Garden Road, Central, Hong Kong. CYBERWORKS AUDIO: December Hearing on Winding Up Petition Set ------------------------------------------------------------- The High Court of Hong Kong will hear on December 11, 2002 at 9:30 in the morning the petition seeking the wind up of Cyberworks Audio Video Technology Limited. Koninklijke Philips Electronics N.V. whose principal place of business is at Groenewoudseweg 1, 5621BA Eindhoven, The Netherlands brought the petition on October 4, 2002. Baker & McKenzie represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Baker & McKenzie, which holds office at the 14th Floor, Hutchison House, 10 Harcourt Road, Central, Hong Kong. DRAGON COAST: High Court to Hear Wind Up Petition December 18 ------------------------------------------------------------- A petition seeking the winding up of Dragon Coast Industrial Limited is scheduled for hearing before the High Court of Hong Kong on December 18, 2002 at 10:00 in the morning. Industrial and Commercial Bank of China (Asia) Limited whose registered office is located at ICBC Tower, 122-126 Queen's Road Central, Hong Kong filed the petition on October 24, 2002. Edward C.T. Wong & Co. represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Edward C.T. Wong & Co., which holds office at Rooms 1602-3, 16th Floor, Vicwood Plaza, 199 Des Voeux Road, Central, Hong Kong. GUANGDONG KELON: Extends Debt Relief to Parent Company ------------------------------------------------------ Leading Chinese refrigerator maker Guangdong Kelon Electrical Holdings Co. (GKE) has entered into an agreement with cash- strapped state-owned parent Guangdong Kelon (Rongsheng) Group Co. that will wipe out the latter's debts. According to Bloomberg, the publicly listed GKE agreed to write off 907.8 million yuan owed to it in exchange for three trademarks and some land. The brand names are valued at 644 million yuan and the land at 265 million yuan. The two had severed ties following a public disclosure that GKE had loaned its parent money and acted as guarantor for loans without disclosing the transactions to shareholders. This admission forced Chinese regulators earlier this year to pledge a crackdown on state-owned companies using listed units as piggybanks. Kelon Electrical shares in Hong Kong were suspended on Friday, pending the announcement. The shares have dropped a fifth this year. They last traded at 99 HK cents. Analysts interviewed by Bloomberg say the debt write-off isn't a plus for GKE. "It doesn't help much because [GKE] needs cash," Ken Cheng, a Worldsec International Ltd. analyst, told Bloomberg, speculating about the terms of the agreement. "Kelon needs profit to improve its earnings." LAI SUN: To Issue New Shares, Bonds in Restructuring Plan --------------------------------------------------------- A combination of bond and share issues will make up the debt- restructuring plan of Lai Sun Development Co Ltd., according to Oriental Daily, which did not reveal its sources. The paper said included in the plan are two tranches of convertible bonds amounting to some HK$1.71 billion, due for maturity soon. Lai Sun has until December 31 to raise cash if creditors won't extend further the repayment deadline for some HK$6 billion of debts. Last week, Troubled Company Reporter-Asia Pacific said the company only has HK$238.38 million in ready cash to meet its looming liabilities. This as losses ballooned to HK$1.94 billion this year compared to last year's HK$1.19 billion. Even auditors Ernst & Young have expressed apprehensions that the company won't last long if creditors won't accede to the current restructuring scheme. As of July 31, consolidated bank and other borrowings, including a loan of HK$1.5 billion from associate eSun, along with bonds issued by the group, amounted to HK$7.14 billion, of which HK$6.19 billion were liabilities due by the end of the year. Earlier negotiations with bondholders saw repayments deferred to December 31 this year. The group's principal banks also agreed to hold off principal repayments to the same date, TCR-AP said. SEAPOWER RESOURCES: Creditors to Vote on Restructuring Plan ----------------------------------------------------------- Friday, Seapower Resources International's creditors approved its restructuring plan. They will vote on the plan at an extraordinary general meeting December 9, AFX-Asia said yesterday. According to the report, the restructuring proposal involves a share consolidation on a 10-to-1 basis and cutting its nominal value of the consolidated shares to HK$0.01 from HK$0.50 each. The HK$75.8 million generated from the capital reduction will go towards eliminating its accumulated loss amounting to HK$347.8 million at end-September last year, the news agency said. Currently, the company's debt stands at HK$1.3 billion. Under the restructuring proposal, creditors will be given HK$70 million in cash, in addition to not less than HK$360.6 million new shares in the company, representing a stake of around 4.0- 4.05%. Creditors will also be given any remaining cash in the company after the capital restructuring, and the entire interest in Seapower Resources unit Seapower Development (Indonesia) Ltd. The news agency added that after the debt restructuring, if Seapower Resources is able to make any monetary recovery from its receivables of HK$200 million or from its units Allied National Ltd, iPower Warehousing Management System Ltd and Pentagon Profits Ltd, creditors will be entitled to share 50% of the recoveries. SKY RISE: Petition Seeking Wind Up to be Heard December 11 ---------------------------------------------------------- The High Court of Hong Kong will hear on December 11, 2002 at 9:30 in the morning the petition seeking the winding up of Sky Rise Trading Limited. Bank of China (Hong Kong) Limited whose registered office is located at 14th Floor, Bank of China Tower, No. 1 Garden Road, Central, Hong Kong filed the petition on October 8, 2002. Koo and Partners represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Koo and Partners, which holds office at the 21st-22nd Floors, Bank of China Tower, 1 Garden Road, Central, Hong Kong. ================= I N D O N E S I A ================= BANK NIAGA: Commerce Asset Names Board Representatives ------------------------------------------------------ Malaysian financial group Commerce Asset Holding Bhd exercised its newly acquired majority control of Bank Niaga, sending six representatives to the board of directors during a recent extraordinary shareholders meeting. Citing a Bank Niaga press statement, AFX-Asia said Hashemi Albakri bin Abubakar has been appointed vice-president director and Tay Un Soo director. The other Commerce Asset representatives are Rozali bin Mohamed Ali, as chief commissioner; Datuk Hamzah bin Bakar, Encik Salleh bin Mahmud and Datuk Halim bin Muhamat, as commissioners. Peter Benyamin Stok retained his post as company president director. Others who were appointed as directors during the EGM are: Andi Muhamad Hata, Heru Budiargo, Daniel James Rompas and Katerinawati Hadiman. Gunarni Suworo and Sigit Murkajono were also appointed independent commissioners. Indonesian Bank Restructuring Agency (IBRA) deputy chairman Mohamad Syahrial retained his seat as commissioner. Commerce Asset recently acquired the 51% stake of Bank Niaga. IBRA still holds 25% of the bank. SEMEN GRESIK: October Exports Stall as Total Sales Drop ------------------------------------------------------- Cement maker PT Semen Gresik suffered a 17% drop in total sales in October due to diminished exports. The company only sold 1.19 million tonnes of cement, and all in the domestic market. According to Semen Gresik spokesman Agung Wiharto, the company had no exports in October because prices were better in the domestic market. Last year, the company had total sales of 1.43 million tonnes, with domestic sales accounting 1.146 million tonnes and exports 289,831 tonnes. Semen Gresik said its operating unit Gresik sold 659,705 tonnes during the month, down from 721,461 tonnes a year earlier, while Semen Padang sold 310,423 tonnes, sharply lower from 352,382, and Semen Tonasa sold 220,751 tonnes, against 262,303. In August, ratings agency Pefindo assigned a 'selective default' rating on the company and its 600 billion rupiah bond issue following unit PT Semen Padang's failure to pay its 200 billion rupiah debt to PT Jaminan Sosial Tenaga Kerja (Jamsostek) that matured on August 15. The company was previously placed on 'rating alert' after it paid only 100 billion rupiah of its debt to Jamsostek when it fell due. Semen Padang has US$23 million in outstanding debt to ABN-Amro, according to a Troubled Company Reporter-Asia Pacific article in August. ========= J A P A N ========= ALL NIPPON: Hotel Sales Lend to Y8.11B Net Loss ----------------------------------------------- All Nippon Airways Co. posted a group net loss of 8.11 billion yen in the first half of this year to September, Japan Times reports. The net loss was caused by an extraordinary loss of 29 billion yen booked primarily on sales of hotels in Vienna and Sydney. The number of passengers on international flights fell 2.5 percent to 1.87 million, with revenues dropping 3.5 percent to 96.4 billion yen. This was mainly due to a stuttering recovery in demand for tours in the wake of the U.S. terror attack on September 11, 2001. For the full year through March, ANA expects to remain in the red for the second straight year, logging a group net loss of 18 billion yen. In 2001, the airline incurred a loss of 9.46 billion yen. ALL NIPPON: Unveils Consolidated Financial Statements ----------------------------------------------------- All Nippon Airways Co., Ltd. and its domestic subsidiaries maintain their books of account in accordance with the provisions set forth in the Japanese Commercial Code and in conformity with accounting principles and practices generally accepted in Japan, which may differ in some material respects from accounting principles and practices generally accepted in countries and jurisdictions other than Japan. The Company's foreign subsidiaries maintain their books of account in conformity with accounting principles and practices of the countries of their domicile. Summary of significant accounting policies: (a) Principles of consolidation and accounting for investments in non-consolidated subsidiaries and affiliates The consolidated financial statements include the accounts of the Company and all of its significant subsidiaries. All - significant inter Company accounts and transactions have been eliminated. Investments in certain subsidiaries and significant affiliates are accounted for by the equity method of accounting. The difference between the cost and the underlying net equity in the net assets at dates of acquisition of consolidated subsidiaries and companies accounted for by the equity method of accounting is amortized using the straight-line method over a period of five years. Investments in non-consolidated subsidiaries and affiliates not accounted for by the equity method of accounting are stated at cost. The companies' equity in undistributed earnings of these companies is not significant. The accounts of certain foreign subsidiaries have fiscal years ending on December 31. The necessary adjustments for significant transactions, if any, are made on consolidation. (b) Foreign currency translation Foreign currency receivables and payables are translated into yen at the rates of exchange in effect at the balance sheet date, and translation adjustments are made included in profit and loss account. The balance sheet accounts of foreign consolidated subsidiaries are translated into yen at the rates of exchange in effect at the balance sheet date, except for components of shareholders' equity, which are translated at historic exchange rates. Revenues and expenses are translated at the rates of exchange prevailing when such transactions are made. Foreign currency translation adjustments are presented as a component of shareholders' equity. (c) Marketable securities and investment securities Trading securities are carried at fair value. Held-to-maturity securities are carried at amortized cost. Marketable securities classified as other securities are carried at fair value with changes in unrealized holding gain or loss, net of the applicable income taxes, included directly in shareholders' equity. Non--marketable securities classified as other securities are carried at cost. Cost of securities sold is -determined by the moving average method. (d) Derivatives The Company and its subsidiaries use derivatives, such as forward foreign exchange contracts, interest rate swaps and commodity options and swaps, to limit their exposure to fluctuations in foreign exchange rates, interests rates and commodity prices. The Company and its subsidiaries do not use derivatives for trading purposes. Derivative financial instruments are carried at fair value with changes in unrealized gain or loss charged or credited to operations, except for those which meet the criteria for deferral hedge accounting under which an unrealized gain or loss is deferred as an asset or a liability. Receivables and payables hedged by qualified forward exchange contracts are translated at the corresponding foreign exchange contract rates. (e) Allowance for doubtful receivables A general provision is made for doubtful receivables based on past experience. Provisions are made against specific receivables as and when required. (f) Inventories Inventories are stated at cost determined by the moving average method. (g) Property and equipment and depreciation Property and equipment are stated at cost less accumulated depreciation. Depreciation of property and equipment is computed based on estimated useful lives by the following methods: Flight equipment ...................... Straight-line method Buildings.............................. Straight-line method Other ground property and equipment.... Declining balance method The Company and some of the subsidiaries employ principally the following useful lives, based upon the Company's estimated durability of such aircraft: International type equipment........... 20 years Domestic type equipment................ 17 years (h) Intangible assets and amortization Intangible assets included in other assets are amortized by the straight-line method. Cost of software purchased for internal use is amortized by the straight-line method over 5 years, the estimated useful life of purchased software. (i) Bonus payment reserve Provisions are made for bonus payment for employees of the Company and subsidiaries. The accrued amounts of estimated bonus payments at balance sheet date are stated as bonus payment reserve. (j) Retirement benefits The retirement benefit plan of the Company and some of the subsidiaries covers substantially all -employees other than directors, officers and statutory auditors. Under the terms of this plan, eligible employees are entitled, upon mandatory retirement or earlier voluntary severance, to lump-sum payments based on their compensation at the time of leaving and years of service with the Company and subsidiaries. The Company and certain significant domestic subsidiaries have trustee employee pension funds to provide coverage for part of the lump-sum benefits or monthly pension. Several subsidiaries have tax-qualified pension plans which cover all or part of the lump-sum benefits. Accrued retirement benefits for employees at the balance sheet date are provided mainly at an amount calculated based on the retirement benefit obligation and the fair market value of the pension plan assets as of the balance sheet date, as adjusted for unrecognized net retirement benefit obligation at transition, unrecognized actuarial gain or loss and unrecognized prior service cost. The retirement benefit obligation is attributed to each period by the straight-line method over the estimated service years of eligible employees. The net retirement benefit obligation at transition is being amortized principally over a period of 15 years by the straight-line method. Actuarial gains and losses are amortized in the year following the year in which the gain or loss is recognized primarily by the straight-line method over periods, which are shorter than the average remaining service years of employees. Prior service cost is being amortized as incurred by the straight-line method over periods, which are shorter than the average remaining service years of the employees. (k) Appropriation of retained earnings The appropriation of inappropriate retained earnings of the Company with respect to a financial period is made by resolution of the Company's shareholders at a general meeting to be held subsequent to the close of the financial period and the accounts for that period do not therefore reflect such appropriation. (l) Leases Finance lease transactions other than those that are expected to transfer ownership of the assets to the lessee are accounted for as operating leases. (m) Bond issuance costs Bond issuance costs are principally capitalized and amortized over a period of three years. (n) Cash equivalents For the purpose of the statements of cash flows, cash and short- term, highly liquid investments with a maturity of three months or less are treated as cash equivalents. 3.Marketable securities and investments in securities Market value information at September 30, 2002 and 2001, March 31, 2002 is summarized as follows: Held-to-maturity securities having market value are as follows: Yen (Millions) Interim 2002 Interim 2001 Fiscal 2001 Cost 252 482 245 Market value 256 494 252 Net unrealized gain 4 12 7 Other securities having market value are as follows: Yen (Millions) Interim 2002 Interim 2001 Fiscal 2001 Cost 14,767 15,001 13,674 Market value 15,411 17,647 16,526 Net unrealized gain 644 2,646 2,852 Breakdown of other securities not having market value are as follows: Yen (Millions) Interim 2002 Interim 2001 Fiscal 2001 Bonds held to maturity 15,604 16,780 17,229 Other securities 23,591 63,909 43,100 39,195 80,689 60,329 FIRST CREDIT: Lone Star Chosen As Sponsor For Failed Lender ----------------------------------------------------------- U.S. investment fund Lone Star Group has been chosen as a sponsor for ailing mortgage lender First Credit Corporation, Kyodo News reported on Saturday, citing First Credit's bankruptcy administrator Yasushi Ikeda. The Company's creditors picked lone Star from among some 20 would-be sponsors for First Credit as it promised to acquire all employees and pledged higher payments of claims to First Credit. MARUDAI FOOD: Returns to Y1.94B Profit -------------------------------------- Marudai Food Co. posted a profit of 1.05 billion yen in the first half of this year after suffering losses in the previous two fiscal years, reports Kyodo News. The Company based in Takatsuki, Osaka Prefecture, posted a loss of 1.94 billion yen a year ago. The ham and sausage maker is streamlining its business such as consolidation of sales outlets. MIZUHO FINANCIAL: Unveils Restructuring Scheme ---------------------------------------------- The Mizuho Financial Group has worked out a restructuring scheme to include a 10 percent wage cut from fiscal 2003, Japan Times reported Monday. The program also includes an early-retirement plan for middle- aged workers. The Company also anticipates an increase in bad loans due to the government's banking-reform policy. The Mizuho group has already announced a plan to reduce its workforce at the two banks and the holding Company from 30,000 at the end of March 2002 to 25,000 four years later. The plan includes additional cuts in bonus payments to regular workers, a reduction in the number of executives from the current 90 and a cut in executives' pay. According to the Troubled Company Reporter-Asia Pacific, the Mizuho Financial Group expects a net loss of Y1 trillion in the year to March 2002, versus the previous estimate of Y720 billion, due to higher credit cost related to the disposal of non-performing loans. NIPPON TELEGRAPH: Spending Y300B Yen on Faster Network ------------------------------------------------------ Nippon Telegraph and Telephone Corp. will invest 300 billion yen ($2.44 billion) over the next five years to build a communications network that will transmit higher-quality video with greater reliability, Nikkei and Bloomberg reported. The Company is encouraging companies to develop uses for high- speed networks, like online financial consulting, by building one that guarantees communication speeds, the report said. The speed of Japan's current system is often ``erratic'' and causes delays in transferring images from the network. NTT's fixed-line telephone business has been slowing, and services that transmit data over copper and fiber-optic lines haven't shown a profit. The Ministry of Finance (MoF) will postpone the sale of 1 million government-held shares in Nippon Telegraph and Telephone Corp. (NTT), originally scheduled for this year, until the year to March 2004 or later, the Troubled Company Reporter-Asia Pacific reported. The shares represent a 13 percent stake in the company and along with over 330,000 shares in Japan Tobacco Inc, were meant to raise more than 580 billion yen to part finance the costs of redeeming government bonds. NIPPON TELEGRAPH: Unit Slashes ADSL Service Fees ------------------------------------------------ NTT East Corporation, a unit of Nippon Telegraph and Telephone Co., will cut the monthly charge for its asymmetric digital subscriber line (ADSL) services on December 1, challenging rivals such as Softbank Corporation's Yahoo BB ADSL service, Kyodo News reports. NTT East will reduce the charge for its 12-megabit service called Flet's ADSL More by 500 yen to 2,700 yen, which does not include Internet service provider (ISP) fees. TOKYO ELECTRIC: Offering Y100B of 10-Yr Bonds --------------------------------------------- Tokyo Electric Power Co. is offering in Japan Y100 billion of ten-year bonds with the following terms, an official at lead manager Daiwa Securities SMBC said on Monday. Daiwa SMBC is jointly managing the bonds with Nikko Salomon Smith Barney Securities. Amount: Y100 Bln Maturity: December 13, 2012 Coupon: 1.10 percent (JGBs plus 10bps) Issue Price: 100.00 Payment Date: December 13, 2002 Fees: 0.35 percent (total) 0.10 percent (mgmt & underwriting) 0.25 percent (selling) Debt Ratings: AAA (JCR) AA+ (R&I) Aa2 (Moody's) AA- (S&P) Denominations: Y1 Mln Chief Commission Bank Sumitomo Mitsui Banking Corp. Interest is payable semiannually. According to Wrights Investors service, Tokyo Electric Power Company Incorporated at the end of 2001 had negative working capital, as current liabilities were Y3.02 trillion while total current assets were only Y603.47 billion. KAWAI MUSICAL: Posts H102 Net Loss of Y3.65B --------------------------------------------- Kawai Musical Instruments Manufacturing Co. incurred a group net loss of 3.65 billion yen in the April to September period due to sluggish sales in the mainstay musical instruments division and a sizable loss in withdrawing from unprofitable business. The Company reported losses of 1.17 billion yen a year earlier. KK NAKAZATO: Collapses With Y10B in Debt ---------------------------------------- KK Nakazato Kensetsu filed for protection from its creditors with the Tokyo District Court under the civil rehabilitation law, Tokyo Research said Friday. The street construction firm has total liabilities of 10 billion yen. The Company, which has 79 employees, is located at Edogawa- ku, Tokyo, Japan. SANRIO CO.: Widens Net Loss to Y13.26B -------------------------------------- Sanrio Co. widened its net loss to 13.26 billion yen in the first half of this year, versus a loss of 3.79 billion yen a year earlier, reported the Kyodo News. Most of the extraordinary losses stemmed from costs in discontinuing securities investments. SEIYU LIMITED: Takes Y29B Due to Unit Sale -------------------------------------------- Seiyu Limited suffered an additional 29 billion yen ($235.7 million) loss from the sale of its non-bank financing unit Tokyo City Finance Co., a move aimed at trimming its heavy debt, Reuters reports. In October, the supermarket operator expected a stock appraisal loss of 22.7 billion yen for the sale of subsidiary Tokyo City Finance, which it will sell on November 29, but it now sees the total loss at 51.7 billion yen. The firm suffered a group net loss of 22.39 billion yen for the half year ended in August, due to the originally announced stock appraisal loss. The supermarket firm decided to sell its unit to U.S. investment fund Lone Star Group's Tokyo Capital Investments Limited to improve its balance sheet. Shares in Seiyu initially fell as much as five percent after the additional loss announcement, but by late morning had rebounded to trade up 1.67 percent at 305 yen. SNOW BRAND: Five Officials Get Suspended Terms ---------------------------------------------- Five former officials of Snow Brand Foods Co. pleaded guilty in the Kobe District Court to defrauding 196 million yen from the industry body Japan Ham & Sausage Processors Cooperative Association, by repackaging imported beef as domestic to receive government subsidies under the buyback program, Japan Times reported. The two-year sentences were suspended for three years. Prosecutors had sought two-year terms for all five, who were arrested May 10 and indicted May 30. The five are: Shigeru Hatakeyama, 56, head of Snow Brand Foods' meat sales and procurement division; Masao Hirose, 55, chief of the firm's processed meat section; Shizuo Sugiyama, 51, a section chief in Hatakeyama's division; Tetsuaki Sugawara, 48, head of the Company's Kansai Meat Center in Itami, Hyogo Prefecture; and Yusuke Tasaki, 56, who headed the Company's Kanto Meat Center in Kasukabe, Saitama Prefecture. Commenting on the ruling, Tadaaki Konose, President of Snow Brand Milk Products, said: "It was an illegal and inexcusable act that inflicted tremendous damages on us, and we have to take the ruling very gravely." SNOW BRAND: Expects 45 Billion Yen Loss in First Half ----------------------------------------------------- Snow Brand Milk Products Co. posted a group net loss of 45.36 billion yen for the first half of this year due to heavy restructuring charges aimed at reviving the struggling dairy giant, according to Japan Times on Saturday. The firm logged a group net loss of 13.66 billion yen in the first half of 2001. Group sales for the six-month period through September 30 dropped 13.9 percent to 535.2 billion yen on a year-on-year basis. Its group operating loss came to 11.63 billion yen, versus the operating loss of 15.51 billion yen posted a year ago. The Snow Brand group was hit hard in 2000 by a food-poisoning scandal involving milk products made by the parent Company. It again suffered a damaging blow earlier this year after a fraudulent beef-labeling scandal involving subsidiary Snow Brand Foods Co. was revealed. The labeling scam led to liquidation of the subsidiary on April 30. Snow Brand's milk sales are still suffering fallout from the poisoning episode two years ago, with its market share standing at 4.2 percent, less than a third of that recorded before the outbreak. TOBISHIMA CORPORATION: Narrows Net Loss to 5.37B ------------------------------------------------ Tobishima Corporation posted a midyear net loss of 5.37 billion yen, improving from a loss of 7.15 billion yen a year earlier, Kyodo News said Friday. The general contractor's group pretax loss in the first half to September came to 4.51 billion yen, against a 7.93 billion yen loss a year earlier. The Company remains in the red due to lagging recovery of construction profitability amid the prolonged economic slump. ========= K O R E A ========= CHOHUNG BANK: IMF Supports Government's Stake Sale Plan ------------------------------------------------------- The head of International Monetary Fund (IMF)'s Seoul office voiced support for the Korean government's drive to sell off a majority stake in mid-sized lender Chohung Bank, the Digital Chosun reported. The government is selling its stake in the bank, which has a market value of around KRW3.3 trillion ($2.74 billion), as part of an exit strategy from banks it rescued during the 1997-98 Asian financial crisis. Paul Greunwald, head of the IMF Seoul office, said that he supported the Korean government's drive to sell off the bank and that political considerations should not influence the deal. The bank's labor union has been opposing the sale. Greunwald also noted that due to swiftly changing market situations, it would be better to sell off the bank when there are some interested buyers. He also said that the government would have to purge its stake in the bank in the future. Commenting on the remarks by the IMF official, President Hong Suk-ju of Cho Hung said he would not accept the theory that the profitability of the bank is marred by its government ownership. Hong said he doubted the claim that the bank should be sold now, because, he said, the bank has been remarkably profitable. One executive of the bank's labor union simply said that Greunwald is a spokesperson for the Korean government. (M&A REPORTER-ASIA PACIFIC, Vol. No.1, Issue No. 233, November 25, 2002) DAEWOO GROUP: Banks Sue Accountants for Daewoo Losses ----------------------------------------------------- Daewoo Motor and Daewoo Heavy Industries, the former units of Daewoo business group, sued thirteen of its public accountants, holding them responsible for negligent audits, Digital Chosun reports. The report said the creditors are demanding compensation for their losses. The group filed a lawsuit against accountants belonging to Ahn Kwon & Co., representing DTT (Deloitte Touche Tohmatsu), and Sandong Accounting, for a total of 13.1 billion won in damages. Woori Bank decided to resort to the courts, judging that the accounting firms' negligence in their audits triggered more bad debts by the companies, causing huge losses to the creditor banks. DAEWOO MOTOR: Completes Debt-Workout Program -------------------------------------------- Daewoo Motor Sales Corporation was completely freed from its debt-workout accord with creditors, the Korea Herald reported. Creditors including the Korea Development Bank approved a debt- rescheduling plan proposed by the auto sales Company. Daewoo Motor Sales posted 188.6 billion won in net losses in 1999, with debt-to-equity ratio reaching 230 percent. This year, the Company staged a record performance and its debt-equity ratio fell to 91.9 percent as of the end of the third quarter The Company's burden in servicing its outstanding debt of 146.1 billion won will be alleviated as the interest rate on it will be lowered from the present 8 percent to 6 percent following the release from the debt-workout program. DAEWOO MOTOR: Buying Back Shares Worth Y30B ------------------------------------------- Daewoo Motor Sales Corporation will buy back shares worth 30 billion won starting December, ahead of the shareholder's meeting slated for March, the Korea Herald said on Monday. The share buyback will be financed both by corporation and employees, and will be equivalent to 10 percent of floated shares, the report said. The Company posted 188.6 billion won in net losses in 1999, with debt-to-equity ratio reaching 230 percent. In 2002, the Company's debt-equity ratio fell to 91.9 percent as of the end of the third quarter. HYNIX SEMICONDUCTOR: Creditors Meet Today on Possible Rescue ------------------------------------------------------------ Creditors of Hynix Semiconductor Inc. will meet today to discuss possible rescue measures for the chipmaker, Korea Exchange said. Lenders, including the Korea Exchange Bank, Woori Bank, Chohung Bank and Citibank N.A.'s Seoul branch, will discuss recommendations from Deutsche Bank AG, which was hired to advise them on what to do with the ailing chipmaker. ``The chiefs will discuss which method will be the most appropriate to recommend to all the remaining creditors,'' said Lee Sung Shik, a Korea Exchange spokesman. Deutsche Bank has recommended that creditors swap 1.85 trillion won ($1.5 billion) of debt into stock and delay payment on remaining debt to keep the chipmaker in business. The time and place of the meeting was not disclosed in the report. 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 HYNIX SEMICONDUCTOR: U.S. Agency Starts Micron Charges Probe ------------------------------------------------------------ The U.S. Commerce Department is investigating whether Hynix Semiconductor Inc. and Samsung Electronics Co. received illegal subsidies from the South Korean government, Bloomberg reported Friday. The International Trade Commission, a part of the Commerce Department, agreed to a request by Boise, Idaho-based Micron Technology Inc. to examine funds received by its South Korean rivals, a government document revealed. The statement, provided by Micron, the world's No. 2 memory-chip maker, didn't mention when the probe will start. ``We have a very strong case and will litigate vigorously,'' Micron spokesman Sean Mahoney said. Micron's allegations relate to multibillion-dollar bailouts for Hynix. Hynix has struggled to stay in business for the last two years and is waiting for its creditors to decide whether they will rearrange $5 billion of loans. An overseas share sale underwritten by Salomon Smith Barney Inc., syndicated loans and other cash-raising measures by Hynix in 2001 were based on outside ``viability studies'' and were therefore not illegal subsidies, South Korea's Ministry of Foreign Affairs and Trade said in a reply to the U.S. decision. On November 1, 2002, Micron Technology, Inc., filed a countervailing duty (CVD) case with the U.S. Department of Commerce and the International Trade Commission against DRAM semiconductor products manufactured in South Korea. The complaint identifies multi-billion-dollar bailout packages and loan subsidies to South Korean semiconductor companies in violation of U.S. Countervailing Duty laws and South Korea's commitments under World Trade Organization agreements. These subsidies have included loan write-offs, debt-for-equity swaps, government-induced debt financings and re-financings on noncommercial terms, special export financing and special tax treatment. KOREA THRUNET: Reducing Capital to 77.6M Shares ----------------------------------------------- Korea Thrunet Co. will reduce its capital to about 77.6 million shares from 232.9 million shares to improve its financial structure, Dow Jones reports. The Company has been seeking to reduce its debt by disposing of non-core assets. It posted a loss of 43.6 billion won on revenue of KRW288.7 billion for the first half of this year. At the end of June, the Company had KRW1.3 trillion in liabilities. Earlier this month, Korea Thrunet received a delisting warning from the Nasdaq National Market for failing to meet a minimum bid price requirement. Trigem Computer Inc. is Korea Thrunet's largest shareholder with a 31.9 percent stake. =============== M A L A Y S I A =============== BRIDGECON HOLDINGS: Liquidates Wholly Owned Subsidiary ------------------------------------------------------ We wish to announce that Peridex, a wholly owned subsidiary of Premier Mix Sdn Bhd, which in turn is a subsidiary of Bridgecon Holdings Bhd, has been placed under creditors' voluntary liquidation pursuant to the Special Resolution passed by its members at the Extraordinary General Meeting held on November 21, 2002. Peridex has been inactive and had ceased business operations since year 2000. There is no material impact on the net tangible assets and the earning per share of the Company for the financial year ending December 31, 2002. The Creditors' Voluntary Liquidation forms part of the Company's restructuring and rationalization exercise to regularize its financial condition pursuant to Practice Note No. 4/2001. CONTACT INFORMATION: 18, Jalan Wan Kadir 1 Taman Tun Dr. Ismail 60000 Kuala Lumpur Tel: 03-7727 6333 Fax: 03-7727 7087 CONSTRUCTION AND SUPPLIES: Investment Committee OKs Debt Plan ------------------------------------------------------------- On February 28, 2002, Alliance Merchant Bank Berhad announced on behalf of the Board of Directors of Construction and Supplies House Bhd that the Company proposes to implement a restructuring plan, which would return it back onto a stronger financial footing. On August 26, 2002, Alliance had on behalf of the company made the relevant applications to the Securities Commission and the Foreign Investment Committee to obtain their approval for the Proposed members' scheme of arrangement involving Newco pursuant to Section 176 of the Companies Act, 1965 encompassing the following: (1) Proposed Capital Reduction and Consolidation; (2) Proposed Share Premium Reduction; (3) Proposed Share Exchange; (4) Proposed Rights Issue; (5) Proposed Acquisition; (6) Proposed Debt Restructuring; (7) Proposed Transfer of Listing Status; and (8) Proposed Waiver On behalf of the Board of the company, Alliance is pleased to announce that the FIC, vide its letter dated November 18, 2002 and received by Alliance on November 21, 2002, had stated that it had no objections to the Proposals, subject to the condition that Newco maintains at least 30% direct Bumiputera equity at the time of its listing. The approval of the SC for the Proposals is currently still pending. COMPANY PROFILE Currently, the Company is in the midst of identifying new assets to be injected into the Group in order to create sustainable income and to enter into negotiation with various creditors including financial institutions with a view to implementing a debt restructuring exercise through a corporate advisory firm. The MOU with the vendors of Kurnia Padu Sdn Bhd (KPSB) to acquire KPSB which is a shareholder of HVD Holdings Sdn Bhd, was terminated on 15.12.2000. The Company originally owned oil palm and rubber plantations, which were sold in May 1971. It diversified into property development in 1982, supply and distribution of petroleum and petroleum-based products and services in 1985, hotel business and the financial services sector also in 1985, and the garment/textile business in 1989/1990. In 1993, the Company embarked upon a rationalisation and restructuring programme beginning with cessation of the petroleum-based and garments/textile business. The property development and construction businesses were disposed of in 1999. CONTACT INFORMATION: Unit Level 13E Main Office Tower Financial Park Labuan Jalan Merdeka 87000 Labuan Tel: 087-451 688 Fax: 087-453 688 METROPLEX BERHAD: Continues to Sell Debt Plan to Creditors ---------------------------------------------------------- In relation to the previously announced Proposed Debt Restructuring plan, we wish to advise that following the restraining order granted by the High Court of Malaya, Metroplex Bhd is continuing to work out its debt restructuring with its creditors. An announcement would be made to the Kuala Lumpur Stock Exchange once an agreement has been reached on this. COMPANY PROFILE Metroplex and its Group of Companies' operations include hotel and leisure businesses with resort and gaming operations at Subic Bay in the Philippines, Legend Hotel in Kuala Lumpur, as well as cruise and casino operations under the Empress Cruise Lines. Under its property investment and development unit, the better known assets are The Mall and projects such as Pantai Hills Estate, Pantai Hills Flats, and Pantai Towers. Originally around Kuala Lumpur and in the Klang Valley, projects have expanded to Batang Kali, Pahang where the Legend Farmstead is being developed. Besides these developments, the Company has also in its pipeline the Baron Court and the Carlton Court condominiums at Taman Kosas in Ulu Langat, Selangor. The Group also carries out quarrying, construction and trading activities. CONTACT INFORMATION: Level 10, Grand Seasons Avenue, No. 72, Jalan Pahang, 53000 Kuala Lumpur Tel: 03-2931828, 03-4431828 Fax: 03-2912798 TECHNO ASIA: Sets Off Properties Worth RM324M to Pay Debts ---------------------------------------------------------- We refer to the announcement dated February 8, 2002 made on behalf of Techno Asia Holdings Bhd by AmMerchant Bank Berhad (formerly known as Arab-Malaysian Merchant Bank Berhad). In relation to the proposed settlement for the creditors of Mount Austin Properties Sdn Bhd - SA Appointed (MAPSB) (Proposed Settlement), AmMerchant Bank hereby wishes to announce that MAPSB will now set-off its property development land to its secured creditors for approximately RM324.6 million as opposed to approximately RM240.9 million, as mentioned in the earlier announcement. The modified workout proposal for MAPSB has also been sent to the SC for its review due to the revision in the Proposed Settlement. COMPANY PROFILE On February 2, 2001, Pengurusan Danaharta Nasional Berhad appointed Special Administrators (SAs) to the Company. The financial statements are prepared on a going concern basis, which is dependent on the outcome of the workout proposal to be prepared by the SAs to enable the Group and Company to continue as a going concern. On August 6, 2001, the SAs entered into a conditional MOU with Semai Warnasari Sdn Bhd and Dr Yu Kuan Chon with the intention of setting the key areas of understanding on a corporate restructuring exercise pending the finalisation and approval of the Workout Proposal. On February 2, 2001, SAs were appointed for the sub-subsidiary Prima Moulds Manufacturing Sdn Bhd. On April 30, 2001, SAs were also appointed for the following subsidiaries; Mount Austin Properties Sdn Bhd (formerly known as Westmont Mount Austin Sdn Bhd), Cempaka Sepakat Sdn Bhd, Ganda Edible Oils Sdn Bhd, Litang Plantations Sdn Bhd, Wisma Dindings Sdn Bhd, Ganda Plantations (Perak) Sdn Bhd and Techno Asia Venture Capital Sdn Bhd (formerly known as Westmont Venture Capital Sdn Bhd). The Company carried on the business of cultivating and processing oil palm in its early days. The Company later evolved into an investment holding company with subsidiaries involved in property development, investment holding, oil palm plantations and power generation. The Company changed its name to Techno Asia Holdings to better reflect its current activities and business as an investment holding company with diversified business. The oil palm operations are based in Teluk Intan, Perak and Lahad Datu, Sabah. The main property development activity is in the 1,276-acre Taman Mount Austin in Johor Bahru comprising light industrial, commercial and residential development. Overseas, the Company is involved in the supply of electricity to Mombasa in Kenya, Ecuador, Bangladesh and Dominican Republic. CONTACT INFORMATION: No. 17-2, Jalan 5/152 Taman Industri OUG 58200 Kuala Lumpur Tel: 03-7782 5575 Fax: 03-7783 5575 ===================== P H I L I P P I N E S ===================== GLASGOW COLLECTION: SEC fines Glasgow P13.5M -------------------------------------------- The Securities and Exchange Commission (SEC) imposed a P13.5- million fine on Glasgow Collection and Services Inc. for the unauthorized sale of securities in violation of the Securities Regulation Code (SRC), the Philippine Star said on Monday. The report said Glasgow was willing to settle the fine in exchange for the dropping of charges against the Company. The SEC earlier said it was considering filing a criminal complaint against Glasgow officers to make them answerable for all the losses incurred by investors. Shareholders of Glasgow are Manuel Roldan Jr., Radicion Baldia, Jenilyn Condes, Jonathan Condes and Roldan Estacio. Apart from paying the assessed fine, Glasgow also offered a settlement package. Glasgow was issued a cease-and-desist order by the SEC for issuing investment contracts without prior registration with the Commission. MANILA ELECTRIC: Gives Exchange Corrected S.Court Resolution ------------------------------------------------------------ Manila Electric Company, through its SEC Form 17-C dated November 21, 2002 provided the Exchange a copy of the corrected portion of the Supreme Court's Resolution dated November 20, 2002 promulgated on November 15, 2002. For a copy of the Supreme Court Resolution, go to http://bankrupt.com/misc/tcrap_meralco1125.pdf NATIONAL STEEL: Needs Capital Infusion of Php2B ----------------------------------------------- National Steel Corporation (NSC) needs as much as 2 billion pesos ($37 million) to resume operations after the steel maker was shut three years ago due to debt problems, Philippine Daily Inquirer said, citing Trade and Industry Secretary Manuel Roxas. The report said NSC hasn't identified an investor needed to provide working capital and funds to refurbish its factory, the report said. According to Trade and Industry Secretary Manuel Roxas II, the Company's 14 creditor banks on November 22 approved a plan to reduce its debt to 2 billion pesos from 18 billion pesos, after Malaysia's Pengurusan Danaharta Nasional Bhd agreed to reduce the stake it controls to 20 percent from 82.5 percent. National Steel is one of the Philippines' biggest defaulters. Danaharta gained control of NSC in 1998 when it took over loans owed by Hottick Investments Ltd. The loans were backed by the National Steel stake that Hottick purchased in 1997. ================= S I N G A P O R E ================= CONCRETE LIMITED: Losses to Exceed $1.9M ---------------------------------------- Transit-mixed Concrete Limited said losses for the whole year would not be less than $1.9 million, Business Times reported Monday. In reply to queries from the Singapore Stock Exchange, the Company said that its ready-mixed concrete division is expected to lose money because of depressed selling prices and low production volume. KOH BROTHERS: Voluntarily Winding Up JV Company ----------------------------------------------- The Board of Directors' of Koh Brothers Group Limited announced that its 50:50 joint venture Company between Grand Universe Investment Pte Ltd and Koh Brothers Development Pte Ltd (a wholly owned subsidiary of the Company), Grand Koh Development Pte Ltd Grand Koh convened an Extraordinary General Meeting on 21 November 2002, to pass a special resolution for the members' voluntary winding-up of Grand Koh. Grand Koh has ceased business operations and is currently a dormant Company. The issued and paid-up capital of the Grand Koh is S$3.6 million. The voluntary winding-up of Grand Koh is not expected to have any significant impact on the earnings per share and the consolidated net tangible assets of the Company for its current financial year. NATSTEEL LIMITED: Posts Notice of Shareholder's Interest -------------------------------------------------------- Natsteel Limited posted a notice of changes in substantial shareholder Oei Hong Leong's Interest's: Date of notice to Company: 22 Nov 2002 Date of change of deemed interest: 22 Nov 2002 Name of registered holder: Citibank (Nominees) Singapore 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: 2,870,000 % of issued share capital: 0.78 Amount of consideration per share excluding brokerage,GST,stamp duties,clearing fee: $2.05 No. of shares held before change: 72,286,000 % of issued share capital: 19.59 No. of shares held after change: 75,156,000 % of issued share capital: 20.36 Holdings of Substantial Shareholder including direct and deemed interest Deemed Direct No. of shares held before change: 72,286,000 % of issued share capital: 19.59 No. of shares held after change: 75,156,000 % of issued share capital: 20.36 Total shares: 75,156,000 Based on 369,068,237 shares issued as at 21 November 2002. UNITED OVERSEAS: Voluntarily Winding Up Unit -------------------------------------------- United Overseas Bank Limited (UOB) announced that Securities Investments Pte Limitd, a wholly owned subsidiary of UOB, has commenced member's voluntary liquidation. The liquidation is part of the ongoing rationalization of the operations of the UOB group of companies. =============== T H A I L A N D =============== THAI PETROCHEMICAL: Wants $3.7B Restructuring Plan Extended ----------------------------------------------------------- Thailand's largest debt defaulter, Thai Petrochemical Industry PCL, will ask for another extension of debt repayments schedules, this time from 2004 to 2006, Dow Jones reported yesterday. Citing Thai newspaper Krungthep Turakij, the news agency said the extension will be the next request the company will make from its creditors. The company is scheduled to meet with creditors next month to approve amendments to its restructuring plan. According to TPI President Tongchat Hongladaromp, the extension would be in line with the petrochemical industry's forecast uptrend, which is expected to begin in 2003 and will likely reach its highs in 2006 and 2007. "We have to extend the debt-restructuring plan by another two years; otherwise the company would be unable to repay the principal," said Mr. Tongchat in an interview with Dow Jones. He said TPI must lower its revenue forecast because the petrochemical prices of the previous projection were higher than they are now. Under the current debt plan, TPI sets its earnings before interest, taxes, depreciation and amortization at $460 million. However, Tongchat said this year's EBITDA will be only $160 million. Next year's EBITDA is expected to be $180 million-$185 million, he said. TPI projects its total revenue this year to reach 60 billion baht ($1=THB43.367). In a separate interview, Jesd Jesdpiyawong, executive consultant of court-appointed Effective Planners Ltd., told Dow Jones Newswires Monday the extension is likely to be the next step, after the creditors approve plan amendments. Effective Planners has asked for creditors' support to amend the voting mechanism for future plan amendments and to change the deadline for a $200 million debt payment through the sale of non-core assets to March 31, 2003 from end-2001. Creditors of TPI have postponed the deadline for a vote on the amendments to December 6 from November 21, Effective Planners said Friday. Under the current voting process, any changes to the plan, which aims to restructure about $3.7 billion of debts, must be backed by at least 75% of the company's creditors and must be without opposition from any creditor, Dow Jones said. 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. 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