/raid1/www/Hosts/bankrupt/TCRAP_Public/021209.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, December 9, 2002, Vol. 5, No. 243
Headlines
A U S T R A L I A
ANSETT GROUP: Administrators Wary Over Suit, Hold Staff Payout
BRAMBLES INDUSTRIES: Expects Delisting from FTSE 100 December 12
GLENCORE NICKEL: S&P Cuts Bond Rating to 'D'
SOLAR EVAP: Court Names Provisional Liquidator
C H I N A & H O N G K O N G
EAGLE BRAND: Sees Foreign Tie-ups as Key to Business Turnaround
HONG KONG: 6-month Figures in Red Due to Branch Closure
KOMPASS (HONG KONG): Winding Up Hearing Scheduled in January
NEW TECH: HK High Court to Hear Winding Up Petition Next Month
J A P A N
ALL NIPPON: Offering Y10B 6-Yr Bonds Due 2008
MAZDA MOTOR: Recalling 38,173 Titan Trucks
NISSAN MOTOR: Enters Deal With NTT DoCoMo
NTT DOCOMO: Clarifies Decision to Turn Down New Capital
SANYO ELECTRIC: Likely to Post More Losses
SUMITOMO METAL: Fitch Comments on Reorganization Plans
SUMITOMO REALTY: JCR Assigns BBB Rating
TOMEN CORPORATION: Awaits Toyota's Reply on Bailout
K O R E A
DAEWOO HEAVY: Clarifies Acquisition Report
HYNIX SEMICONDUCTOR: Creditors Seek to Convert Bonds
KIA MOTORS: Enters Alliance With Chase Manhattan & AmeriCredit
KOREA ELECTRIC: Talks With Labor Union Collapses
M A L A Y S I A
GENERAL LUMBER: Court OKs Restructuring, Restraining Order
JUTAJAYA HOLDINGS: Faces Delisting from KLSE December 13
KUB MALAYSIA: Subsidiary Sued for Unpaid Debts, Faces Wind Up
LION CORPORATION: Extraordinary General Meeting Set December 19
SCK GROUP: Securities Commission to Delist Firm December 13
TECHNO ASIA: Securities Commission Approves Restructuring Plan
TECHNO ASIA: Posts Update on Defaulted Loans
* Delisting from KLSE Certain for 24 of 30 PN4 Companies
P H I L I P P I N E S
DMCI HOLDINGS: Partially Redeems Convertible Preferred Shares
MANILA ELECTRIC: Clarifies Contract Breach Report
MTST HOLDINGS: Investors Fall Prey to Pseudo-Investment Firm
PHILIPPINE LONG: Majority of Union Members Vote to Strike
S I N G A P O R E
ASIA PULP: Details of Preliminary Agreement With IBRA
ISOFTEL LIMITED: Director Seah Yong Wah Resigns
LINKS ISLAND: Issues Profit Warning
MEDIARING LIMITED: Enters Purchase Deal With Datuk Nur
SPP LIMITED: Post Notice of Board Changes
T H A I L A N D
BANKCHAK PETROLEUM: Bidding For State Contracts Allowed Soon
- - - - - - - -
=================
A U S T R A L I A
=================
ANSETT GROUP: Administrators Wary Over Suit, Hold Staff Payout
--------------------------------------------------------------
Administrators of Ansett Group withheld last week the release of
staff entitlements due to the pending case filed by the Ansett
Ground Staff Superannuation Fund, Asia Pulse said.
The suit could potentially cost the company a further AU$200
million in liabilities if it loses the case, the report said.
The Victorian Supreme Court has yet to resolve the fight between
the administrators and the staff superannuation fund, even
though hearings were finished in September.
The Australian Services Union (ASU) says the next staff dividend
payment is worth five cents on the dollar. Ansett's 16,000
former staff stand to receive between 74 and 92 percent of their
entitlements, due to be paid in installments as the
administrators sell off the airline's assets.
According to Asia Pulse, at the last creditors' meeting in
September, former Ansett staff were warned their entitlements
could be substantially reduced and delayed by the legal
challenge from the superannuation Fund.
ASU assistant national secretary Linda White told Asia Pulse
recently that former Ansett staff were becoming increasingly
anxious about their next dividend.
"You can imagine, coming up to Christmas, people are hanging out
for their installment," Ms White told Asia Pulse. "The judge was
told by the ACTU and the administrators how important a quick
decision was to the former Ansett staff waiting for
entitlements. We can only hope the decision is made before
Christmas."
Ms. White told the news agency that the administrators had
assured the ASU there would be little delay in paying the next
staff dividend if the superannuation trustees lost their case.
Meanwhile, Ms. White said the ASU had been told by the Ansett
committee of creditors that the sale of the airline's former
Melbourne headquarters was settled late last month for more than
AU$30 million (US$16.76 million). Qantas had been named the
preferred bidder for Ansett's Melbourne engine shop and Ansett
Australia brand and trademarks were to be put to tender over the
next few weeks, she told Asia Pulse.
BRAMBLES INDUSTRIES: Expects Delisting from FTSE 100 December 12
----------------------------------------------------------------
Brambles Industries, whose shares have been badly battered in
recent weeks, expects to lose its place on the FTSE 100 index,
when the London bourse updates the list on December 12.
According to Shaw Online, the company has already conceded that
the severe dive in share value will cause it to stop trading on
the elite index beginning December 20.
An unnamed company spokesperson told Shaw Online late last week
that the company does not expect the removal to trigger a major
sell-off, commenting that the stock had dropped sharply on the
expectation it would be removed, following profit warnings in
the past year.
"I think it's probably already been built in the share price to
be honest. I'd be surprised if there was an enormous sell-off
once it's confirmed because it's been kind of flagged," she
said. "Obviously it's a profile thing as much as anything."
Brambles gained a London share market listing in August 2001
through its merger with the industrial arm of GKN, Shaw Online
said.
GLENCORE NICKEL: S&P Cuts Bond Rating to 'D'
--------------------------------------------
The rating of Glencore Nickel Pty. Ltd.'s US$300 million fixed-
rate notes due 2014 suffered a further downgrade from Standard
and Poor's last week, which relegated the notes to "D" from
"CC/Watch Neg."
According to S&P, Glencore Nickel, through its wholly owned
subsidiary Glenmurrin Pty. Ltd., indirectly owns a 40% share of
the Murrin Murrin Nickel Cobalt Joint Venture, a nickel and
cobalt mining and processing facility north of the Western
Australian goldfields district.
Murrin Murrin Holdings Pty. Ltd., a subsidiary of Anaconda
Nickel Ltd., owns the remaining 60% of the project. Murrin
Murrin Holdings Pty. Ltd. defaulted on US$402 million of project
debt on September 30, 2002, S&P said.
The rating agency says Glencore Nickel and its project partner
are now negotiating with the secured creditors on a proposed
debt-restructuring and recapitalization plan, under which the
secured bondholders will accept a cash payment of US$190 million
in exchange for the outstanding secured debts of Murrin Murrin
and Glencore Nickel. To date, about 75% of secured bondholders
have agreed to the restructure and court approval is expected on
January 15, 2003, S&P said.
The offer equates to about 25 U.S. cents in the dollar and would
be partly funded by a rights issue of Anaconda Nickel Ltd.
shares, which will be underwritten by Glencore International AG
(BBB+/Stable/A-2); Glencore International AG also holds a 34%
interest in Anaconda Nickel Ltd. Furthermore, the secured
creditors would be entitled to receive AU$35.8 million, or about
90% of the net award paid to the joint venture, under Phase 1 of
the arbitration with Fluor Daniel Australia Pty. Ltd., the
project construction engineers, and about 75% of any award under
Phase 2, S&P said.
Both project partners have relied on their shareholders to
provide funding to meet operating costs and scheduled debt-
service shortfalls. The Murrin Murrin joint venture has been
under cash flow pressure due to the weaker-than-expected
operating performance and low nickel and cobalt prices, S&P
said.
Also, the venture's progress toward commercially sustainable
operations has been slower than expected, compounding the
already tight cash position and uncertainty over the amount of
compensation in the Fluor Daniel arbitration, the rating agency
said. S&P has withdrawn Glencore Nickel's issue rating at the
company's request.
For more information, contact Peter Stephens, Melbourne
(61) 3-9631-2078
SOLAR EVAP: Court Names Provisional Liquidator
----------------------------------------------
Following an application by the Australian Securities and
Investments Commission (ASIC), the Federal Court of Australia,
Perth, has appointed a provisional liquidator to Solar Evap
Australia Pty Ltd (Solar Evap), on the grounds of apparent
insolvency.
ASIC applied for the order following an inspection of the
company's financial records. Solar Evap, which trades as 'Solar
Airconditioning', operates from premises in Clune Street
Bayswater.
Justice Lee made interim orders appointing Mervyn Kitay of Grant
Thornton, Chartered Accountants, as the provisional liquidator
of the company. Anyone who believes they are a creditor of
Solar Evap should contact Grant Thornton on 08 9481 1448 or at
256 St Georges Terrace, Perth WA 6000.
================================
C H I N A & H O N G K O N G
================================
EAGLE BRAND: Sees Foreign Tie-ups as Key to Business Turnaround
---------------------------------------------------------------
The new management team of leading Chinese ceramic tiles and
sanitary ware manufacturer, Eagle Brand, announced in Singapore
last week that it will form new alliances and step up exports to
reverse its sagging fortunes.
At a presentation during a Singapore Exchange seminar, the
management team led by managing director Johnny Lee disclosed
that it is presently pursuing a partnership with Japanese
conglomerate Matsushita Electric Works. Accordingly, talks are
centered on asking the Japanese firm to use its products in the
latter's home designs. A joint venture with Matsushita could be
on the cards later, The Business Times said last week.
Eagle Brand, which counts the Government of Singapore Investment
Corporation (25 percent) and Hong Leong International (10
percent) among its investors, has been listed on the mainboard
of the SGX since 1999. Other institutional investors include EM
Warburg Pincus, which has 10 percent.
A new management team was brought in last year. The management
changes came amid stiff competition and oversupply, by as much
as 40 percent, in both the ceramic tiles and sanitary ware
industries in China, the paper said. For the financial year
ended January 31, 2002, Eagle's net profit plunged 64 percent to
112 million renminbi (S$24.5 million).
Eagle's profits have continued dropping this year. At the half-
year point, its net profit was 10.3 million renminbi or a 82
percent fall from a year ago. Its management indicated
profitability this year will be worse before it gets better, the
report said. The managing director, who gave the presentation,
also said the company is negotiating to share a sales network
with major international players, including those from Italy and
Spain.
According to the paper, Eagle, which started as a township
factory making ceramic art tiles in 1974, is today one of the
largest ceramic tile and bathroom fixture manufacturers in
China. Its factory is in Foshan in Guangdong province.
The company, with nearly 4,000 employees, produces and
distributes four brands of ceramic tiles and sanitary ware:
Eagle, Aquila, Huapeng, and Peony. Output comprises more than
1.2 million bathroom fixtures and over 12 million square metres
of ceramic tiles.
While still a leading brand in China, Eagle's retail sales have
been 'seriously affected' by the emergence of new players due to
low entry barriers. They are able to enjoy certain advantages,
such as lower taxes and lease of machinery from bankrupt state-
owned companies at low costs. Demand has also shifted from
retail to housing projects, with large discounts given, Mr. Lee
said in his presentation.
To stage a business turnaround, Eagle is also stepping up on
once-negligible exports, which are expected to make up 8 per
cent of sales, the paper said. Eagle, he disclosed, has
successfully tendered to supply its products to leading property
developer Cheung Kong of Hong Kong, controlled by Li Kah-shing.
HONG KONG: 6-month Figures in Red Due to Branch Closure
-------------------------------------------------------
Hong Kong Catering Management announced last week that it is
closing an ailing restaurant soon, the reason why it had to book
a net loss of HK$16.8 million for the six months to September
30.
The HK$10.2 million provision, which will answer for the fixed
asset write-off, compensation for early termination of the lease
and severance pay and other termination wages, contributed to
the poor results for the period. The company also incurred
losses from operations of HK$9.6 million, compared with a profit
of HK$18.4 million a year earlier.
Other losses include HK$147,000 on the disposal of fixed assets,
writing off of HK$6 million as long service payments and a
provision of HK$6.8 million as retirement costs. Loss per share
was 5.4 HK cents for the six months, The Standard said Friday.
KOMPASS (HONG KONG): Winding Up Hearing Scheduled in January
------------------------------------------------------------
The High Court of Hong Kong will hear on January 8, 2003 at 9:30
in the morning the petition seeking the winding up of Kompass
(Hong Kong) Limited.
Lui Lap Wai of Room 1032, Herring Gull House, Sha Kok Estate,
Shatin, New Territories, Hong Kong filed the petition on October
25, 2002. Tam Lee Po Lin, Nina represents the petitioner.
Creditors and other interested parties are encouraged to attend
the hearing. They only need to notify in writing Tam Lee Po
Lin, Nina, which holds office on the 27th Floor, Queensway
Government Offices, 66 Queensway, Hong Kong.
NEW TECH: HK High Court to Hear Winding Up Petition Next Month
--------------------------------------------------------------
The petition seeking the winding up of New Tech Information
Systems Limited is scheduled for hearing before the High Court
of Hong Kong on January 8, 2003 at 9:30 in the morning.
Chan Wai Sze of Flat F, 26/F., Block 1, Lok Hin Terrace, Chai
Wan, Hong Kong filed the petition on October 25, 2002. Tam Lee
Po Lin, Nina represents the petitioner.
Creditors and other interested parties are encouraged to attend
the hearing. They only need to notify in writing Tam Lee Po
Lin, Nina, which holds office on the 27th Floor, Queensway
Government Offices, 66 Queensway, Hong Kong.
=========
J A P A N
=========
ALL NIPPON: Offering Y10B 6-Yr Bonds Due 2008
---------------------------------------------
Japan's All Nippon Airways Co. is offering in Japan 10 billion
yen of six-year bonds with the following terms, Dow Jones
report, citing lead manager Nikko Salomon Smith Barney.
Amount: Y10 Bln
Maturity: Dec. 19, 2008
Coupon: 1.50% (No. 207 JGBs plus 106.5 basis
points,
swaps plus 104 basis points)
Issue Price: 100.00
Payment Date: Dec. 19, 2002
Fees: 0.40% (total)
0.10% (mgmt & underwriting)
0.30% (selling)
Debt Ratings: A- (JCR)
BBB+ (R&I)
Denominations: Y100 Mln
Fiscal Agent: Sumitomo Mitsui Banking Corp
Interest is payable semiannually.
MAZDA MOTOR: Recalling 38,173 Titan Trucks
------------------------------------------
Mazda Motor Corporation recalled 38,173 Titan trucks for free
repair of engine parts, Kyodo News reports, citing the Ministry
of Land, Infrastructure and Transport. The action follows fires
caused by seven Titan trucks since March last year.
According to Wright Investor's Service, at the end of 2002,
Mazda Motor had negative working capital, as current liabilities
were 920.05 billion yen while total current assets were only
725.14 billion yen.
NISSAN MOTOR: Enters Deal With NTT DoCoMo
-----------------------------------------
Nissan Motor Co., Ltd., and NTT DoCoMo, Inc. announced have
jointly established the Business Telematics Working Committee, a
cross-industry group that will develop business models
incorporating mobile multimedia systems and telematics services
mainly targeting the car leasing companies. The two companies
will jointly manage the committee, which will begin its work in
January 2003.
Since the joint announcement on February 19, 2002, Nissan and
DoCoMo have been studying opportunities to develop telematics
systems services that would combine on-board devices with third-
generation or conventional Personal Digital Cellular (PDC)
mobile communications technologies for vehicle-based information
services.
The main task of the committee is to decide what kinds of
information would be most suitable and how they should be
transmitted. In January 2003, the committee will begin devising
transmission tests, and it expects to propose specific
telematics services around April. It is expected commercial
services will be available sometime later in 2003, or within
2004 at the latest.
Under the envisaged system, leased cars would be equipped with a
mobile communications device to transmit information between the
cars and service providers via Nissan's "CARWINGS" Center
server. The system would network the vehicles with not only car
leasing companies but also insurance, maintenance, security and
other related companies as well as content providers and more.
Possible business models include the provision of
driver/passenger information such as navigation, traffic,
weather and restaurants/hotels, as well as business-related
information such as vehicle performance conditions and
maintenance data. Some of these information services are already
available with Nissan's "CARWINGS" mobile communications service
and would be adapted for the auto leasing industry.
The working committee will comprise companies from the car
leasing, insurance, maintenance, components and other
automobile-related industries. Specific members will include
service providers such as SOHGO SECURITY SERVICES CO., LTD.,
TSUBASA SYSTEM CO., LTD., Nihon Unisys, Ltd. and car leasing
companies such as NTT AUTO LEASING CO., LTD., Sumisho Auto
Leasing Corporation, SMBC AUTO LEASING COMPANY LIMITED and
NISSAN FINANCIAL SERVICES CO., LTD.
The administrative office of the committee will be located
within and managed by NTT DoCoMo.
Nissan Motor Co., Ltd. www.nissan.co.jp was established in 1933
to manufacture and market the Datsun, a small passenger car, and
related automotive components. The Company is Japan's second
largest automobile manufacturer and the world's fifth, with
annual global sales of 2,415,433 vehicles. The Company markets a
wide range of passenger cars, commercial vans, trucks and buses,
parts and components in over one hundred and seventy countries.
The Company has also expanded its operations to include
forklifts, textile machinery and other industrial machinery and
equipment. Nissan's affiliation with French automaker Renault in
1999 has helped produce Nissan's best results in a decade. The
Company has three hundred and forty two consolidated
subsidiaries worldwide. Consolidated sales in FY 2000 exceeded
$49 billion dollars (Euro 55 billion.)
NTT DoCoMo www.nttdocomo.com/top.shtml is the world's leading
mobile communications Company with more than 44 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 35 million subscribers, and FOMA(R),
launched in 2001 as the world's first 3G mobile service based on
W-CDMA. In addition to wholly owned subsidiaries in Europe and
North and South America, the Company is expanding its global
reach through strategic alliances with mobile and multimedia
service providers in the Asia-Pacific, Europe and North and
South America. NTT DoCoMo is listed on the Tokyo (9437), London
(NDCM), and New York (DCM) stock exchanges.
Contact:
NTT DoCoMo
Takumi Suzuki
suzukitaku@nttdocomo.co.jp
+81 3 5156 1111
NTT DOCOMO: Clarifies Decision to Turn Down New Capital
-------------------------------------------------------
NTT Docomo responded to the news report from Nikkei News and
Nihon Keizai Shimbun published on December 6, 2002. The report
said NTT DoCoMo, Inc. has decided to turn down Dutch telecom
operator KPN Mobile N.V.s request for some 300 billion yen in
new capital.
However, as the Company previously announced, the decision
concerning whether or not DoCoMo, which owns a 15 percent share
in KPN Mobile, will provide KPN Mobile with additional capital
will be made by the middle of December, taking the entire
business situation into account. The announcement will be made
after a decision has been made.
For further inquiries, please contact:
Public Relations Department Susumu Takeuchi Manager
International PR Public
Relations Department NTT DoCoMo, Inc. Tel: +81-3-5156-1366
(9:30-19:00 Japan Standard Time) Fax: +81-3-5501-3408 e-mail:
press_dcm@nttdocomo.com
website: http://www.nttdocomo.com
SANYO ELECTRIC: Likely to Post More Losses
------------------------------------------
Sanyo Electric Credit is expected to post more losses. Nikkei
reported the firm would take 4 billion yen extraordinary charge
this year to March after unit Eiko Systems filed for court-led
rehabilitation on Tuesday, according to Dow Jones on Friday.
The report said the Company will write off already expected 3
billion-yen in Eiko debt and additional losses may also arise.
SUMITOMO METAL: Fitch Comments on Reorganization Plans
------------------------------------------------------
Following the announcement of the reorganization plans of
Sumitomo Metal Industries Ltd (Sumitomo Metals) and the cross-
shareholding among Sumitomo Metals, Nippon Steel Corporation
(Nippon Steel), and Kobe Steel Ltd (Kobe Steel), Fitch Ratings
does not intend to alter its view of the companies' credit
profiles at the present time. The Senior Unsecured rating for
these entities is Sumitomo Metals 'B', Nippon Steel 'BB+' and
Kobe Steel 'B+'; the Outlooks of all three companies is Stable.
On November 14, 2002 Sumitomo Metals announced a steel works
rationalization plan, a capital increase plan through private
placement, and a de-leveraging scheme. At the same time,
Sumitomo Metals, Nippon Steel and Kobe Steel also announced a
cross-shareholding plan among the three companies.
Fitch believes it is too early to fully assess the effects of
the rationalization plan overall. It calls for consolidating
production of downstream products, while tripling supplies of
upstream products (i.e., slabs) to Taiwan's China Steel
Corporation (China Steel; the world's 14th largest steel
producer) under an agreement with that Company. The
consolidation of downstream process production is, for the most
part, certain to take effect, and Fitch believes it will lead to
better production efficiency. With respect to the expanded
supply of slabs to China Steel, however, it is necessary to wait
until the agreement is formally completed before making an
evaluation. The steel works slated for rationalization is
Sumitomo's second largest and older than other works operated by
the Company. Although the upstream process capacity utilization
rate at the works is now only 60%, it would rise to 100% if the
agreement with China Steel is consummated.
With respect to the capital increase plan through private
placement, an assessment can only be made after the capital
placement has been completed. Sumitomo Metals is planning to
make a private-placement capital increase valued at about JPY50
billion, with shares expected to be subscribed by, inter alia,
Sumitomo group companies. Given the continued instability of
Japan's financial system, however, Fitch believes uncertainties
remain as to whether the funds will be available as projected.
With regard to the Company's de-leveraging scheme, Fitch sees
indications that it may not be carried out. Sumitomo Metals is
planning to reduce its interest-bearing debt to below 1 trillion
yen by March 2006 from the 1.65 trillion yen of March 2002,
mainly by using (1) an expected 235 billion yen in cumulative
recurrent profit for the years between fiscal year ending March
2003 and fiscal year ending March 2006; and (2) an expected 255
billion yen from asset streamlining during the same period.
Fitch believes the Company's assumed recurrent profit will be
difficult to achieve so long as the basic problem of excessive
capacity remains unresolved in a deteriorating world economy.
With regard to its asset streamlining assumption, Fitch believes
Sumitomo Metals may be unable to dispose of its assets at the
anticipated prices as deflation continues to plague the Japanese
economy.
Fitch does not view the cross-shareholding among the three
companies as leading to a drastic improvement in earnings
structure. Sumitomo Metals and Nippon Steel will each invest
JPY5bn in the other, with Sumitomo Metals and Kobe Steel at
JPY3bn each and Nippon Steel and Kobe Steel also at JPY3bn each.
Through these capital tie-ups, the three companies plan to
partially co-operate in such areas as product distribution, raw
materials sourcing, and common businesses of affiliated
companies. However Fitch believes that, compared to their
competitors such as Arcelor and JFE Group, any impact on profit
from the scheme will be limited.
Many of the issues touched on in the announcement regarding the
series of rationalization plans by Sumitomo Metals are not as
yet formalized, and Fitch does not place credibility in the
plans. Rather, the agency senses some alarm on the part of the
Company in the announcement being made when it was, as at the
time the issues remained undecided. The agency will closely
monitor developments at Sumitomo Metals, while taking into
account changes in external matters such as macroeconomic and
domestic financial conditions. Moreover since the effect of the
cross-shareholding scheme will be limited, Fitch believes it
will not affect the credit profiles of Nippon Steel and Kobe
Steel.
Contact: Masashi Ichikawa, Tokyo Tel: +81 3 3288 2675.
Media Relations: Kris Anderson 44 20 7417 4361, London
SUMITOMO REALTY: JCR Assigns BBB Rating
---------------------------------------
Japan Credit Rating Agency (JCR) has assigned a BBB rating to
the following bonds of Sumitomo Realty & Development to be
issued under the shelf registration.
Issue bonds no.39
Amount: Y12.5 billion
Issue Date: December 25, 2002
Due Date: December 22, 2005
Coupon: 1.45%
Covenants: Negative Pledge & Collateralized Commissioned
Company: Yes Shelf Registration
Maximum: Y200 billion Valid: two years from May 18, 2001
RATIONALE
Sumitomo Realty & Development is a major real estate Company of
Sumitomo group.
Office leasing market is faced with severe environment due to
large supply of office buildings as well as stagnant economy in
general. Large office buildings of Sumitomo Realty & Development
will be completed in the current fiscal year. It will take time
for these properties to be fully occupied, however. Impact of
large supply of office buildings will be larger on the existing
office buildings than on the new large buildings over the
intermediate-to- long term. JCR believes that Sumitomo Realty &
Development will be able to maintain the competitive edge, given
the fact that it holds relatively young properties. However,
impact of the change in the market should be carefully observed,
taking into account the severe business environment.
Sumitomo Realty & Development increased the cash flow generation
capability, carrying out the restructuring plans. It carried out
financial restructuring as well, improving the financials. JCR
will pay attention to the future developments as to the
strengthening of the financial structure via cutback in the
interest-bearing debt and other measures.
TOMEN CORPORATION: Awaits Toyota's Reply on Bailout
---------------------------------------------------
Toyota Motor is close to reaching a decision on whether to bail
out Tomen Corporation, a struggling Japanese trading house that
pleaded for its help in November, Financial Times said on
Thursday. Tomen is saddled with 860 billion yen of interest-
bearing debt.
Analysts sad a possible form of support would be for Toyota
Tsusho, Toyota group's trading unit, to increase its stake in
Tomen. It is currently Tomen's largest shareholder with an 11.5
percent stake. Another option is for the two trading houses to
integrate under a holding Company structure. The Company has
been striving to restructure and return to profitability amid a
weak global and domestic economy.
Toyota Tsushin deals mainly in car-related products such as
steel and machinery, and exports Toyota cars to Asia, the Middle
East and Latin America. Tomen is narrowing its focus to life
sciences, electronics and energy, where it is a leader in wind
power generation.
=========
K O R E A
=========
DAEWOO HEAVY: Clarifies Acquisition Report
------------------------------------------
Terex Corporation said Friday in response to a report in the
media that it is not in discussions with respect to an
acquisition of Daewoo Heavy Industries & Machinery Ltd.
The Company stated it generally does not respond to industry
rumors, but given the level of inquiries received regarding this
report, felt it necessary to comment.
Terex Corporation is a diversified global manufacturer based in
Westport, Connecticut, with pro forma 2001 annual revenues of
$3.4 billion. Terex is involved in a broad range of
construction, infrastructure, recycling and mining-related
capital equipment under the brand names of Advance, American,
Amida, Atlas, Bartell, Bendini, Benford, Bid-Well, B.L. Pegson,
Canica, Cedarapids, Cifali, CMI, Coleman Engineering, Comedil,
CPV, Demag, Fermec, Finlay, Franna, Fuchs, Genie, Grayhound, Hi-
Ranger, Italmacchine, Jaques, Johnson-Ross, Koehring, Lectra
Haul, Load King, Lorain, Marklift, Matbro, Morrison, Muller,
O&K, Payhauler, Peiner, Powerscreen, PPM, Re-Tech, RO, Royer,
Schaeff, Simplicity, Square Shooter, Telelect, Terex, and Unit
Rig. More information on Terex can be found at www.terex.com.
CONTACT:
Terex Corporation
Kevin O'Reilly, 203/222-5943
HYNIX SEMICONDUCTOR: Creditors Seek to Convert Bonds
----------------------------------------------------
Creditors of Hynix Semiconductor Inc. are seeking to convert 1.9
trillion won of the chipmaker's debt into equity as proposed by
financial adviser Deutsche Bank in its restructuring plan,
Edaily and Dow Jones reported Thursday. Creditors also plan to
convert the rest of unsecured debt, another KRW1.9 trillion,
into the convertible bonds.
The move aims to securitize more of Hynix's unsecured debt at an
early stage. The proposed rescue package, however, won't likely
to cover Hynix's debt owed to foreign lenders, estimated at 800
billion won.
KIA MOTORS: Enters Alliance With Chase Manhattan & AmeriCredit
--------------------------------------------------------------
Kia Motors America (KMA) announced the formation of two new
alliances, one with Chase Manhattan Bank USA, N.A., and the
other with AmeriCredit Financial Services, Inc., to provide a
range of financial services to Kia's retail customers. The
alliances will go into effect on January 3, 2003. Chase will
serve as Kia's exclusive prime retail financial service
provider, while AmeriCredit will serve as Kia's exclusive non-
prime provider.
"We're very pleased to announce these new alliances with Chase
7and AmeriCredit," said Peter M. Butterfield, Kia's chief
operating officer. "In researching the finance options available
to our dealers and customers, we were most impressed with Chase
and AmeriCredit's service, excellent reputation and competitive
rates. We think this is going to translate into increased
customer satisfaction at our retail level."
"Chase prides itself on the ability to foster strong, strategic
relationships with dealers, manufacturers and finance companies
nationwide," said Norman Buchan, President, Chase Manhattan
Automotive Finance Corporation, "and we look forward to
providing our full range of products and services to Kia dealers
and their customers."
"AmeriCredit's business is based on strong relationships. We're
pleased that this new Kia relationship includes Chase, with whom
we've had a strong alliance over the last few years," said Mark
Floyd, President of Dealer Services at AmeriCredit. "While we
have enjoyed working with Kia dealers and customers for years,
we're very excited to be taking this next important step."
About Kia Motors America
Kia Motors America is the U.S. sales, marketing and service arm
of Kia Motors Corp. in Seoul, South Korea. Known for its high-
value vehicles, Kia Motors America currently markets the Rio
sub-compact sedan, Rio Cinco five-door sedan, Spectra compact
sedan and hatchback, Optima midsize sedan, Sportage small SUV,
Sorento midsize SUV and Sedona minivan.
About Chase Manhattan Automotive Finance Corporation
Chase Manhattan Automotive Finance Corporation, together with
its affiliates, is the largest bank originator of automotive
retail installment contracts and leases in the U.S. With a
network of more than 12,000 affiliated car dealers and two
million customers nationwide, Chase Auto Finance has a portfolio
in excess of $37 billion.
JPMorgan Chase Bank is a subsidiary of J.P. Morgan Chase & Co.
www.jpmorganchase.com, a leading global financial services firm
with assets of $742 billion and operations in more than 50
countries. The firm is a leader in investment banking, asset
management, private banking, private equity, custody and
transaction services, and retail and middle market financial
services. A component of the Dow Jones Industrial Average,
JPMorgan Chase is headquartered in New York and serves more than
30 million consumer customers and the world's most prominent
corporate, institutional and government clients.
AmeriCredit Corp. www.americredit.com is the largest independent
middle-market auto finance Company in North America. Using its
branch network and strategic alliances with auto groups and
banks, the Company makes auto loans to consumers who are
typically unable to obtain financing from traditional sources.
AmeriCredit has more than one million active loan customers
throughout the United States and Canada and more than $15
billion in managed auto receivables. The Company was founded in
1992 and is headquartered in Fort Worth, Texas.
CONTACT:
Kim Custer of Kia Motors America, +1-949-470-7019,
Kcuster@kiausa.com; or Catherine Keary of JPMorgan Chase, +1-
212-270-7171,
Catherine.Keary@jpmchase.com; or John Hoffmann of AmeriCredit,
+1-817-302-7627, John.Hoffmann@americredit.com
KOREA ELECTRIC: Talks With Labor Union Collapses
------------------------------------------------
With negotiations failing to bear fruit between the Korea
Electric & Power Co. (KEPCO) and the labor union of subsidiary
Powercomm, possibilities of a strike are high, the Maeil
Business Newspaper reports.
KEPCO had agreed to sell Powercomm to the Dacom consortium and
were discussing the details with the labor union of Powercomm,
who opposed the takeover. If the labor union reinforces a
strike, the takeover process will likely be delayed, the report
said.
===============
M A L A Y S I A
===============
GENERAL LUMBER: Court OKs Restructuring, Restraining Order
----------------------------------------------------------
PM Securities Sdn Bhd, on behalf of the Board of Directors of
General Lumber Fabricators & Builders Bhd wishes to announce
that the High Court of Malaya has on December 4, 2002 granted an
order pursuant to Section 176(10) of the Companies Act, 1965
restraining further proceedings in any action or proceeding
against the Company effective 4 December 2002 for a period of
ninety (90) days, except with leave and subject to such terms as
may be imposed by the Court.
The Court has also ordered that Dato' Azman Bin Mahmood or
failing him, Mr. Steven B. E. Fung be appointed to act as a
director of the Company pursuant to Section 176(10A) (d) of the
Act. The order shall, within seven (7) days, be lodged with the
Registrar of Companies and a notice of the said order shall be
published once in The Star.
On 15 October 2002, PM Securities had on behalf of the Board of
Directors of the Company announced the Proposed Restructuring
Scheme (as defined therein) with the intention to regularize the
financial condition of the Company. The purpose of the RO is to
ensure smooth implementation of the Proposed Restructuring
Scheme. Kindly refer to our requisite announcement ("RA") dated
15 October 2002 for the details of the Proposed Restructuring
Scheme. The Company does not expect the RO to have any material
financial and operational impact on the Company.
CONTACT INFORMATION: Level 9, Wisma General Lumber
Block D, Peremba Square
Saujana Resort, Section U2
40150 Shah Alam
Selangor
Tel: 03-7621 0800
Fax: 03-7621 1133
JUTAJAYA HOLDINGS: Faces Delisting from KLSE December 13
--------------------------------------------------------
For failure to make a requisite announcement on its
regularization plan, Jutajaya Holdings Bhd will be suspended
from the Kuala Lumpur Stock Exchange beginning December 13.
According to The Edge Daily, the company was required to post an
update on its plan on October 7. Placed under trading
restriction since June 7, the company will remain suspended from
the bourse until further notice, the paper said.
COMPANY PROFILE
The Company originated in 1955 as a family partnership in Pulau
Ketam, Selangor, dealing in fishing nets, boating equipment and
fishing gear. It served primarily the needs of the local
fisherfolk in the area and also several coastal towns within
Selangor until 1965 when the business was shifted to Klang.
After over 30 years of involvement in the marketing of fishing
nets and gear, the partners subsequently ventured into the
manufacture of fishing nets which led to the incorporation of
the Company. Jutajaya obtained its manufacturing license to
manufacture fishing nets in December 1985.
The Group's products have since extended to include synthetic
nettings, ropes and twines. These products are mainly used in
the fishing industry, plantations, construction-related
industries and sporting activities.
In a rationalization exercise carried out in 1996, its net and
rope making operations were transferred to a subsidiary and the
Company was transformed into an investment holding company.
Following this, the Group has diversified into property
development, property investment, manufacturing and investment
holding.
The Company is an affected listed issuer under Practice Note
4/2001 of KLSE's Listing Requirements. Among steps undertaken to
regularise its financial position, it has entered a MOU with Ng
Tiong Seng Holdings Sdn Bhd (NTSH) in respect of NTSH's
intention to dispose of its entire stake in Ng Tiong Seng
Construction Sdn Bhd (NTSC) and/or certain assets/businesses and
to participate in a restructuring scheme to be undertaken by
Jutajaya. The parties agree to execute all formal agreements by
October 31, 2002 or such extended period as may be mutually
agreed.
CONTACT INFORMATION: Level M1, Park Inn International
Kuala Lumpur
51-A, Changkat Bukit Bintang
50200 Kuala Lumpur
Tel: 03-2713 1171
Fax: 03-2713 1170
KUB MALAYSIA: Subsidiary Sued for Unpaid Debts, Faces Wind Up
-------------------------------------------------------------
Pursuant to paragraph 9.19(19) of the KLSE Listing Requirements,
KUB Malaysia Berhad wishes to announce that a winding-up
petition D7-28-1021-2002 against its subsidiary, VisionScape Sdn
Bhd ("VisionScape") has been presented to the High Court on 31
October 2002. The winding-up petition was served by Tri Art
Media (M) Sdn Bhd on VisionScape on 2 December 2002.
On 19 September 2002, Tri Art through its solicitors, Messrs SC
Lim & Partners served a Notice pursuant to Section 218 of the
Companies Act, 1965 dated 18 September 2002 on VisionScape.
The total claim of Ringgit Malaysia Sixty Seven Thousand and
Five Hundred Only (RM67,500.00) is for the Media Fees due from
VisionScape for the month of July 2002, August 2002 and
September 2002 with respect to the roof top of the (4) story
premises known as No. 95, Jalan Bukit Bintang, 55100 Kuala
Lumpur. No interest is imposed on the amount claimed.
KUB's investment in VisionScape, through its wholly owned
subsidiary, KUB Teknologi Sdn Bhd is in the form of equity of
RM1.02 million. To-date, KUB has advanced RM40.3 million to
VisionScape of which RM38 million is secured vide a Debenture
executed by VisionScape in KUB's favor, over the fixed and
floating assets of VisionScape. Under the said Debenture, the
commencement of a winding-up proceedings against VisionScape
constitutes an event of default which entitles KUB as the
debenture holder to exercise its right thereunder to demand the
immediate repayment of the advance up to RM38 million.
As at 30 September 2002, KUB made a provision of RM8.9 million
and will review the carrying value of its investment by end of
the financial year.
There is no material financial impact to KUB Group arising from
the said petition as the particular claim of RM67,500.00 is not
significant to KUB as against its unaudited shareholders' fund
as at 30 September 2002 of RM603.1 million.
VisionScape, a 51% subsidiary of KUB Teknologi Sdn Bhd which in
turn is a wholly owned subsidiary of KUB, specializes in the
network of giant outdoor electronic displays called i-Board, all
of which are linked to a control centre located in Group
headquarters at KUB.com. As VisionScape's operation does not
constitute a material component of KUB's information and
communication technology activities, the said petition will not
have any material impact on KUB Group's operations.
KUB is negotiating with the Petitioner to resolve the matter
amicably. The winding-up petition is scheduled for hearing on 31
January 2003.
COMPANY PROFILE
The Company's core businesses are Education and Training, Food
and Beverage, Information and Communications Technology (ICT)
and Liquefied Petroleum Gas (LPG). Other business activities in
which the Company is involved include property and construction
(2,425 acres located in Kuala Lumpur and other sites in
Peninsular Malaysia); IT and telecommunication (e-commerce
applications, software development and business systems'
consulting services); oil palm plantation (956 ha located in
Kahang, 1,700 ha in Sg Yong, both in Johor, and 4,644 ha in
Mukah, Sarawak); and the consumer products business (garments,
direct selling and trading).
The Company's early links were with Koperasi Usaha Bersatu
Malaysia (in liquidation), some of whose assets KUB acquired, in
May 1997, through the acquisition of KUB's flagship subsidiary
company, KUB Ekuiti Sdn Bhd.
In June 2001, the Company entered into a Sale Agreement to
acquire A&W (Malaysia) Sdn Bhd and A&W (Singapore) Pte Ltd. The
Company has also been granted rights by A&W Restaurants Inc to
seek suitable locations for the development of A&W fast food
restaurants in the Philippines and Hong Kong for an initial
period of five years. In addition, KUB has been granted
development rights in Hong Kong to develop co-branded
restaurants featuring the A&W and the Long John Silver's
concepts for an initial period of five years.
In order to strengthen its footing in the petroleum business,
the Company had, in March 2002, entered into a Sale Agreement to
acquire Summit Petroleum (Malaysia) Sdn Bhd and had also
announced its participation in Keloil Pakistan (Pvt) Ltd in June
2001.
CONTACT INFORMATION: No. 6, Block H
Jalan 65C
Off Jalkan Pahang Barat
53000 Kuala Lumpur
Tel: 03-421 4121
Fax: 03-423 3090
LION CORPORATION: Extraordinary General Meeting Set December 19
---------------------------------------------------------------
Notice is hereby given that an Extraordinary General Meeting of
the Company will be held at the Meeting Hall, Level 48, Menara
Citibank, 165 Jalan Ampang, 50450 Kuala Lumpur on Thursday, 19
December 2002 at 4.15 pm or immediately after the Twenty-Ninth
Annual General Meeting of the Company scheduled to be held on
the same day at 4.00 pm, whichever shall be the later, for the
purpose of considering and, if thought fit, passing the
following Ordinary Resolution:
Ordinary Resolution
-Proposed Renewal of Shareholders' Mandate and Proposed General
Mandate for Recurrent Related Party Transactions of a Revenue or
Trading Nature
That approval be given for the Company and its subsidiary
companies to enter into the recurrent related party transactions
of a revenue or trading nature which are necessary for its day-
to-day operations as detailed in Section 3.3 ("Recurrent
Transactions") and with those related parties as detailed in
Section 3.2 of the Circular to Shareholders of the Company dated
4 December 2002 subject to the following:
(1) the transactions are in the ordinary course of business and
are on terms not more favorable than those generally
available to the public and are not to the detriment of the
minority shareholders of the Company; and
(2) disclosure is made in the annual report of the breakdown of
the aggregate value of transactions conducted pursuant to
the shareholders' mandate during the financial year, amongst
others, based on the following information:
(a) the type of the Recurrent Transactions made; and
(b) the names of the related parties involved in each type
of the Recurrent Transactions made and their
relationship with the Company.
AND THAT authority conferred by this Ordinary Resolution shall
continue to be in force until:
(i) the conclusion of the next annual general meeting of
the Company at which time it will lapse, unless by a
resolution passed at the meeting, the authority is
renewed;
(ii) the expiration of the period within which the next
annual general meeting after that date is required
to be held pursuant to section 143(1) of the
Companies Act, 1965 ("Act") (but shall not extend to
such extension as may be allowed pursuant to section
143(2) of the Act); or
(iii) revoked or varied by resolution passed by the
shareholders in general meeting;
whichever is the earlier,
AND THAT the Directors be and are hereby authorized to complete
and do all such acts and things (including executing such
documents as may be required) to give effect to the transactions
contemplated and/or authorized by this Ordinary Resolution.
By Order of the Board
MOHAMMAD ZUBIR BIN ALWEE
Secretary
CONTACT INFORMATION: Level 46, Menara Citibank
165, Jalan Ampang
50450 Kuala Lumpur
Tel: 03-21622155
Fax: 03-21623448
SCK GROUP: Securities Commission to Delist Firm December 13
-----------------------------------------------------------
SCK Group will be permanently barred from trading on the Kuala
Lumpur Stock Exchange effective December 13 for failing to
regularize its finances within the required time.
In a circular issued on December 3, the Securities Commission
said the company had earlier decided not to pursue its
regularization plan, giving it enough reason to move for the
delisting of the company.
COMPANY PROFILE
The Group is mainly involved in the interior decoration,
furniture and renovation industry and also undertakes
manufacturing of bricks and rubber-wood furniture. The Group's
factories are located in Subang Jaya and Kuala Selangor.
The Group's corporate proposals which were submitted to the
relevant authorities on March 28, 2000 were approved by the SC,
FIC and MITI on July 13, 2000, June 20, 2000 and June 30, 2000
respectively. The restructuring scheme comprises amongst others,
capital raising with rights issue and free detachable warrants,
debt restructuring via conversion of debts into issue of new
shares and conversion of the balance of Group's term loans into
five-year term loans, as well as waiver of certain interested
parties from obligation to extend a mandatory general offer for
the Company's remaining shares not already owned by them. The
waiver was granted on August 1, 2000. The SC granted SCK an
extension of time to February 28, 2002 for it to complete its
corporate proposals.
CONTACT INFORMATION: Wisma SCK, Lot 775
Jalan Subang 4
Taman Industri Sg Penaga
47610 Subang Jaya
Selangor
Tel: 03-5635 7368
Fax: 03-5635 6560/8185
TECHNO ASIA: Securities Commission Approves Restructuring Plan
--------------------------------------------------------------
AmMerchant Bank Berhad, on behalf of Techno Asia Holdings Bhd,
wishes to announce that the KLSE had vide its letter dated
December 3, 2002, which was received on December 4, 2002,
approved TAHB's application for an extension of time from
October 29, 2002 to December 31, 2002 to obtain all requisite
approvals necessary from the relevant authorities for the
proposed restructuring of TAHB.
In addition, AmMerchant Bank on behalf of TAHB, wishes to
announce that the Securities Commission by a December 4, 2002
letter, approved:
(I) Proposed Disposal of the entire equity interest in Westmont
Power (Kenya) Limited ("WPKL") by TAHB and Westmont Offshore Sdn
Bhd ("WOSB") (a wholly-owned subsidiary of TAHB) to Cergas Senja
Sdn Bhd ("Cergas") for a total cash consideration of USD 15
million (or approximately RM57.0 million);
(II) Proposed Set-Off and Transfer of CL Lot 115347656 by Litang
Plantations Sdn Bhd ("LPSB") to the secured creditor at a
transfer value of approximately RM35.04 million;
(III) Proposed Set-Off and Transfer of Agora Hotel, land and
building owned by TAHB to the secured creditor at a transfer
value of RM9.6 million;
(IV) Proposed Set-Off and Transfer of 3.7 million Pilecon
Engineering Berhad ("Pilecon") shares owned by TAHB to the
secured creditor at a transfer value of approximately RM1.3
million;
(V) Proposed Disposal of all movable assets of Prima Moulds
Manufacturing Sdn Bhd ("PMMSB") and its wholly-owned subsidiary,
Prima Moulds Sdn Bhd ("PMSB") for a total cash consideration of
approximately RM0.9 million;
(VI) Proposed Set-Off and Transfer of 5.56 million Pilecon
shares owned by Techno Asia Venture Capital Sdn Bhd ("TAVCSB")
to the secured creditor at a transfer value of approximately
RM1.9 million;
(VII) Proposed Set-Off and Transfer of 31 commercial units in
Wisma Ganda owned by Wisma Dindings Sdn Bhd ("WDSB") to the
secured creditor at a transfer value of approximately RM2.0
million;
(VIII) Proposed Set-Off and Transfer of the charged assets
(except for the 178 bungalow lots to be set-off and transferred
to Malpac Capital Sdn Bhd, a wholly owned subsidiary of Malpac
Holdings Berhad ("Malpac")) owned by Mount Austin Properties Sdn
Bhd ("MAPSB") to the secured creditors of MAPSB; and
(IX) Waiver from obtaining the approval of the SC for the
disposal of other miscellaneous assets for cash amounting to
RM665,326.
However, the SC has requested for new valuation reports for the
Proposed Set-Off and Transfer of Lot 11644 HS(D) LP 13127 by
Cempaka Sepakat Sdn Bhd ("CSSB"), Lot 6863 HS(D) LP 14132 by
Ganda Plantations (Perak) Sdn Bhd ("GPPSB") and also the
Proposed Set-Off and Transfer of the 178 bungalow lots owned by
MAPSB to Malpac. These proposed set-offs and transfers will have
to be re-submitted to the SC for its review and decision.
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,
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 finalization and approval of
the Workout Proposal.
On February 2, 2001, SAs were appointed for the 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
TECHNO ASIA: Posts Update on Defaulted Loans
--------------------------------------------
1. Background
Lim Tian Huat and Chew Cheng Leong of Messrs. Ernst & Young were
appointed Special Administrators ("SAs") over TECASIA and a
subsidiary company, Prima Moulds Manufacturing Sdn. Bhd.
("PMMSB") on 2 February, 2001. The Special Administrators were
subsequently appointed over the following subsidiary companies
of TECASIA on 30 April, 2001:
1. Mount Austin Properties Sdn. Bhd.;
2. Cempaka Sepakat Sdn. Bhd.;
3. Ganda Edible Oils Sdn. Bhd.;
4. Litang Plantations Sdn. Bhd.;
5. Wisma Dindings Sdn. Bhd.; and
6. Ganda Plantations (Perak) Sdn. Bhd.; and
7. Techno Asia Venture Capital Sdn. Bhd. ( collectively known as
the "Affected Companies")
Pursuant to the announcement dated 1 November, 2002 in respect
of Practice Note 1/2001, TECASIA wishes to announce that the
Company and its subsidiaries, namely Mount Austin Properties
Sdn. Bhd (Special Administrators Appointed), PMMSB (Special
Administrators Appointed), Prima Moulds Sdn. Bhd. and Ganda
Energy & Holdings, Inc continue to default in payments of their
loan interest and principal sums owing to several financial
institutions. The outstanding amounts as at 31 October, 2002
were as follows:
Loan & Hire Purchase Total
Principal (RM) Interest (RM) RM
The Company 465,987,974 299,223,322 765,211,296
The Group 562,378,897 345,160,909 907,539,806
2. Measures Taken to Address the Default
TECASIA is considered as an "affected listed issuer" pursuant to
PN4/2001.
Further to the measures undertaken as announced on 1 November,
2002, there has been no major changes to the status of TECASIA's
plan to regularize its financial position.
3. Implications in respect of the Default in Payments
TECASIA wishes to announce that Pengurusan Danaharta Nasional
Berhad had on 30 January, 2002 and 26 April, 2002 granted an
extension of twelve (12) months to the moratorium previously in
effect for TECASIA and PMMSB and seven other subsidiaries
pursuant to Section 41(3). The said extension will expire on 2
February 2003 and 30 April 2003 respectively. All legal actions
initiated against TECASIA and other affected subsidiaries will
be stayed and any petition for winding-up, or any appointment of
a receiver, receiver and manager or provisional liquidator
cannot proceed during the moratorium period.
CONTACT INFORMATION: No. 17-2, Jalan 5/152
Taman Industri OUG
58200 Kuala Lumpur
Tel: 03-7782 5575
Fax: 03-7783 5575
* Delisting from KLSE Certain for 24 of 30 PN4 Companies
--------------------------------------------------------
The Securities Commission of Malaysia will likely delist 24
companies from the Kuala Lumpur Stock Exchange by December 31
for failing to submit regularization proposals on time.
Citing SC Chairman Datuk Ali Abdul Kadir, The Edge Daily said
the companies have now run out of time to obtain the necessary
approvals for their proposals. The commission did not identify
these companies. In a statement on December 4, Mr. Ali said
delisted companies may apply for re-listing after they shall
have regularized their financial condition.
"If any of these companies correct their balance sheets and find
viable businesses after being de-listed, they can apply for re-
listing to give liquidity to their shareholders," Mr. Ali said
in a statement.
He emphasized, however, that re-listing was not automatic, as
every company would have to go through the due process of
getting the SC's approval. The companies would have to comply
with the SC's policies and guidelines on issue/offer of
securities and other listing conditions.
At least 30 companies were warned in November of possible
delisting from the Kuala Lumpur bourse for continued failure to
submit regularization proposals. The stock exchange classifies
troubled and restructuring companies under its PN4 category.
=====================
P H I L I P P I N E S
=====================
DMCI HOLDINGS: Partially Redeems Convertible Preferred Shares
-------------------------------------------------------------
DMCI Holdings Inc. (DMC) has redeemed two-thirds of its
outstanding 2.4 billion pesos convertible preferred shares,
which fell due last April 2002, BPI Securities reports.
Only 565,790 preferred shares remained outstanding out of the
2.4 million issued. In its restructuring offer, DMC presented
preferred shareholders four redemption options including
stretched payments or property swaps.
FIRST E-BANK: Becomes Holding Firm For Media-Related Businesses
---------------------------------------------------------------
First e-Bank (FSTE) will reinvent itself into a holding Company
for media-related businesses as it completes the transfer of its
assets and liabilities to the SM Group's Banco de Oro Universal
Bank (BDO), the Philippine Star said on Friday.
The Company has approved the business plan to transform into a
holding Company and changes its corporate name to Prime Media
Holdings Inc.
The new plan was formulated with the assistance of global
financial conglomerate ABN-Amro following the bank's September
25 memorandum of agreement (MOA) with BDO. Under the MOA, BDO
will assume the banking business of FSTE, increasing its deposit
base by about 10 billion pesos, its customers by around 80,000
mostly from small and medium-scale enterprises, and additional
57 well-distributed branches.
In October BDO assumed 10 billion pesos worth of assets and
liabilities in the Company, the bulk of which are in the form of
deposit liabilities valued at 8.9 billion pesos.
MANILA ELECTRIC: Clarifies Contract Breach Report
-------------------------------------------------
Manila Electric Company refers to the news article entitled
"Meralco fined P12 B for contract breach" published in the
December 3, 2002 issue of the Manila Bulletin. The article
reported that: "The financial woes of giant utility firm Manila
Electric Company (Meralco) is still far from over as state-owned
National Power Corporation (NPC) has slapped P12 billion in
penalties for alleged violation of their 10-year power supply
contract. Meralco is faced with huge financial obligation for
violating its contract with NPC. It has imposed penalties to
Meralco, which at present stands at P12 billion, the Energy
Chief divulged in a press statement.
Manila Electric Company (Meralco), in its letter dated December
4, 2002, stated that:
Meralco has not violated the 10-year power supply contract with
the National Power Corporation (NPC). The alleged P12 Billion
may refer to the totality of those portions of the monthly
billings of NPC, which our Company has refused to pay for lack
of legal or contractual basis. These portions were the
difference between the contracted capacity/energy and actual
deliveries/purchases. The Company did not pay these portions of
the billings and specified the reasons therefore in a letter we
sent to NPC in February this year.
In the same letter, the Company served a formal notice of
termination of the 10-year power supply contract to National
Power Corporation to pave the way for the execution of a
Transition Supply Contract (TSC), as mandated by Sec. 67 of RA
9136, the Electric Power Industry Reform Act, which gives the
utilities the right to stipulate in the TSC their individual
projected demands less any of their currently committed
quantities under eligible IPP contracts. The said law requires
NPC to submit the TSC to the Energy Regulatory Commission within
six months from the implementation of the law. NPC failed to
Company with the law.
The press release is located at
http://bankrupt.com/misc/tcrap_meralco1206.pdf
MTST HOLDINGS: Investors Fall Prey to Pseudo-Investment Firm
------------------------------------------------------------
A group of investors mostly policemen, naval officers and
members of the military, filed a complaint with the Securities
and Exchange Commission against MTST Holdings for failing to pay
promised interests and principal investments back, the
Philippine Star said on Friday. Maria Teresa S. Santos owns the
Company.
MTST allegedly offered ridiculously high interest rates ranging
from 15 to 20 percent for a minimum placement of 50,000 pesos in
just a period of six months. The principal amount was to be paid
back to investors at the end of the six-month period.
The group alleged that MTST, whose offices are located at the
Villamor Airbase in Pasay City and San Roque, Marikina City
violated the Bouncing Check law on several occasions. The
complainants said the post-dated checks representing the
interest and principal amount issued by MTST, were rejected by
Equitable PCIBank on the ground that MTST's account had already
been closed. New checks issued by MTST to investors who were
owed interest from October 28 to November 6, 2002 were again
dishonored by the firm's new bank, as there were insufficient
funds to cover the checks issued. Investors said all they got
were promises from MTST officials that they would be paid soon
but as of this date, not a single cent has been refunded to
investors.
"For three weeks now, MTST staff has been giving promises to all
investors that they will be paid. As of this date, however,
investors have yet to see tangible translations of the many
promises of MTST," the group said.
In October, the Securities and Exchange Commission issued a
warning to the public to refrain from dealing with MTST, which
is not registered with the Commission as a corporation nor as a
partnership. Without the appropriate license, MTST is not
licensed to engage in the business of soliciting investments
from the public.
PHILIPPINE LONG: Majority of Union Members Vote to Strike
---------------------------------------------------------
About 80 percent of labor union members voted in favor of going
ahead with the strike planned to protest Philippine Long
Distance and Telephone Co.'s intent to lay off 503 workers by
the end of this year, Dow Jones reported.
Ronnie Dominguez, assistant treasurer of the PLDT rank-and-file
union, said more than 2,000 of the union's 6,700 members have
cast their ballots since the vote began early this week, a
number that PLDT's management disputes. Dominguez said the
layoffs this year is just the first wave of a retrenchment
program that will likely lead to a total of 3,000 employees
losing their jobs by 2004.
"Even those employees who won't be affected by this year's
layoffs now understand that they can be the next victims," he
said.
A PLDT executive said Management's own count indicates the
number of those who have participated in the poll is lower,
around 1,400. The executive said the low turnout suggests the
majority of the workers "seem to understand and accept the
challenging times that the PLDT fixed-line business has to face,
and the difficult decisions management has to make."
A majority of the union members must agree to walk out of their
jobs before the union can file a strike notice with the labor
department. Workers can only go on strike 15 days after the
filing of the notice. The vote will continue Monday.
=================
S I N G A P O R E
=================
ASIA PULP: Details of Preliminary Agreement With IBRA
-----------------------------------------------------
Asia Pulp & Paper Company Ltd (APP) announced details of
preliminary agreements with respect to the restructuring of its
Indonesian operations and each of APP's principal Indonesian
subsidiaries namely PT Indah Kiat Pulp & Paper Tbk Indah Kiat,
PT Pabrik Kertas Tjiwi Kimia Tbk Tjiwi Kimia, PT Pindo Deli Pulp
& Paper Mills Pindo Deli and PT Lontar Papyrus Pulp & Paper
Industry Lontar Papyrus (collectively the PIOCs).
The Preliminary Agreements are the product of intensive
negotiations, most recently between the PIOCs and IBRA. IBRA has
presented the Preliminary Agreements to representatives of
creditor committees representing a number of APP Group's
principal creditors in the proposed restructuring of the Group's
outstanding debt. IBRA and each of the PIOCs propose to
negotiate definitive restructuring Documentation that will
contain detailed debt restructuring terms and implementation
provisions based the terms set out in the Preliminary Agreements
Definitive Restructuring Documentation. The Preliminary
Agreements contemplate that Definitive Restructuring
Documentation will be signed by each of the PIOCs and creditors
by 31 May 2003 (or later as agreed) and implemented in an agreed
manner thereafter. The Preliminary Agreements remain subject to
Indonesian Financial Sector Policy Committee approval, and will
be binding only on those creditors that sign the agreements. A
signing ceremony is scheduled for 18 December 2002, to which
members of the creditor committees have been invited.
Set forth below is a summary of the principal commercial terms
set out in the Preliminary Agreements:
1. Financial Terms
1.1 Term of Restructured Debt 10 years.
1.2 Restructured Debt
The outstanding debt of the PIOCs will be restructured into
three separate tranches:
- Tranche A (Sustainable Debt): (aggregate US$1.2 billion);
- Tranche B (Refinanceable Debt): (aggregate US$3.0 billion);
- Tranche C (Unsustainable Debt): balance of debt, allocated
between the PIOCs as follows:
Indah Kiat Tjiwi Kimia Pindo Deli Lontar Papyrus
Proportion 55% 18% 13.5% 13.5%
Tranche A $660.0 mln $216.0 mln $162.0 mln $162.0 mln
Tranche B $1.65 bln $540.0 mln $405.0 mln $405.0 mln
Tranche C Balance of debt Balance of debt Balance of debt
Balance of debt
1.3 Accrual of Interest
Past Due Interest: Interest will accrue on the non-Rupiah
denominated debt of each PIOC from the date interest was last
paid to 31 December 2002 at the Singapore Interbank Offered Rate
SIBOR + 1%, capped at 4%. Interest will accrue on all Rupiah-
denominated debt from the date interest was last paid to 31
December 2002 at the rate based on Bank Indonesia Certificates
SBI + 1%, capped at 12%. Past due interest will be paid at a
time and in a manner to be agreed.
Interest on Restructured Debt Accruing after January 1, 2003:
Interest will accrue on the Tranche A and Tranche B debt of each
PIOC from 1 January 2003 to the date upon which the
restructuring becomes effective in accordance with Definitive
Restructuring Documentation (the Effective Date) at the rates
set forth below and will be paid by each PIOC:
- to those creditors who sign Definitive Restructuring
Documentation on or prior to 31 May 2003 (or such later date as
may be agreed), in cash from the escrow account previously
established for the purposes for the restructuring Escrow
Account on the Effective Date; and
- to those creditors who sign Definitive Restructuring
Documentation after 31 May 2003 (or such later date as may be
agreed) (i) by way of issuance of Tranche C debt in respect of
debt accruing between 1 January 2003 and the date of signing by
that creditor and (ii) in cash from the Escrow Account on the
Effective Date in respect of interest accruing between the day
following the signing by that creditor and the Effective Date.
After the Effective Date, interest on the Tranche A, Tranche B
and Tranche C debt of each PIOC will be payable quarterly.
Interest will accrue from and after 1 January 2003 on the
Tranche A and Tranche B debt of each of the PIOCs at the
following rates (assuming that the Effective Date occurs in
2003):
- from 2003 to 2005, at SIBOR (or the equivalent rate for debt
denominated in Euro, Yen or Rupiah) +1% (capped at 6%, except
Tranche A or Tranche B debt denominated in Rupiah, which will be
capped at 14%);
- from 2006 to 2007, at SIBOR (or the equivalent rate for debt
denominated in Euro, Yen or Rupiah) +2%, with no cap; and
- from 2008 to 2012, at SIBOR (or the equivalent rate for debt
denominated in Euro, Yen or Rupiah) +3%, with no cap, and on the
Tranche C debt of each PIOC, at the following rates:
- from 2003 to 2005, at 1% fixed; and
- from 2006 to 2012, at 2% fixed.
1.4 Payment Terms
The Preliminary Agreement provides that the PIOCs make monthly
mandatory debt service payments MMDS in the following aggregate
amounts (assuming that the Effective Date occurs in 2003):
- from 2003 to 2005, US$30.0 million;
- from 2006 to 2007, US$35.0 million; and
- from 2008 to 2012, US$40.0 million, allocated between the
PIOCs as follows:
Indah Kiat Tjiwi Kimia Pindo Deli Lontar Papyrus
2003-2005 $16.5 mln $5.4 mln $4.05 mln $4.05 mln
2006-2007 $19.25 mln $6.3 mln $4.725 mln $4.725 mln
2008-2012 $22 mln $7.2 mln $5.4 mln $5.4 mln
These amounts are subject to reductions to US$13.75 million per
month for Indah Kiat, US$4.5 million per month for Tjiwi Kimia,
US$3.375 million for Pindo Deli and US$3.375 million for Lontar
Papyrus, for any month in which average pulp prices (based upon
independent indices) fall below US$400.00 per metric tonne.
The Preliminary Agreements provide that the MMDS for each PIOC
will be applied as follows:
- first, to interest payments under Tranche A;
- second, to interest payments under Tranche B; and
- then, to prepayments of the principal of Tranche A and, upon
repayment of Tranche A in full, to prepayments of the principal
of Tranche B.
1.5 Other expenditures
Other available funds of the PIOCs will be applied to the
following:
(i) Taxes;
(ii) Capital Expenditures (subject to the limitations set forth
below);
(iii) Working Capital;
(iv) A make-up of any reductions of MMDS as a result of average
pulp prices falling below the specified level;
(v) Payment of Interest on its Tranche C debt;
(vi) Management Fee to APP (subject to the limitations set forth
below); and
(vii) Repurchases of its outstanding debt (subject to the
restrictions set forth below).
Each PIOC will be permitted to make dividend payments to its
shareholders to the extent that cash is available after payment
of the above items and if no event of default has been declared.
1.6 Debt Outstanding at Maturity
The Tranche A, Tranche B and Tranche C debt of each PIOC will
mature on the 10th anniversary of the Effective Date.
The Preliminary Agreements provide that any Tranche B debt
outstanding at maturity will be refinanced, or, if not
refinanceable, upon approval of creditors holding at least 75%
of the then outstanding principal amount of the Tranche B debt
of a PIOC, the creditors of that PIOC may elect to (a) give such
PIOC an additional year to refinance the outstanding amounts, or
(b) restructure the amount outstanding.
At maturity, holders of the Tranche C debt of each PIOC will
have the right to either:
(i) convert the outstanding amounts to non-voting preference
shares of the PIOC; or
(ii) retain the debt as outstanding debt upon terms to be agreed
at such time.
1.7 Rupiah Bondholders
The Preliminary Agreements provide that the Rupiah denominated
bonds of each PIOC will be converted to Tranche A debt of the
relevant PIOC on the Effective Date, at interest rates to be
agreed.
2. Non-Financial Terms
2.1 Pre-Restructuring Escrow Account
The aggregate sum of US$20.0 million per month will continue to
be paid into escrow during 2002. Starting from January 2003,
each PIOC will pay an amount into escrow equivalent to its
respective MMDS set out above.
On the Effective Date, the funds in each Escrow Account will be
applied to
(i) approved out of pocket expenses and professional fees
incurred by the members of creditor committees;
(ii) interest payable on the Effective Date; and
(iii) fund the initial debt buyback on the terms set out in the
Definitive Restructuring Agreements.
2.2 Capital Expenditures
The Preliminary Agreements provide that each PIOC may incur
capital expenditures without creditor consent to the extent cash
is available therefor and subject to an aggregate annual
limitation of US$180.0 million.
2.3 Management Fee
The Preliminary Agreements provide that if the non-Indonesian
subsidiaries of APP agree to pay an equivalent annual management
fee to APP, each PIOC will pay its allocable portion of a
management fee to APP in an amount to be determined, but not in
excess of an aggregate of US$25.0 million per year.
2.4 Debt Buybacks
The Preliminary Agreements provide that each PIOC may offer to
repurchase its outstanding debt from time to time subject to the
provisions thereof. The Preliminary Agreements contemplate an
initial debt buyback offer on or about the Effective Date.
2.5 Events of Default
- The Preliminary Agreements provide that payment default may
be declared only if the MMDS in any year falls below US$250.0
million in aggregate across the PIOCs, where such deficit has
not been remedied within one year.
- Other events of default, which will be specified in
Definitive Restructuring Documentation, will be subject to a 90-
day remedy period.
2.6 Cross Default
- Cross default will apply among Tranche A, Tranche B and
Tranche C issued by any PIOC.
- No cross default will apply among PIOCs unless at least three
PIOCs default.
2.7 Consequences of Default
Upon the occurrence of an event of default in respect of the
debt of any PIOC:
The holders of at least 75% of the outstanding Tranche A or
Tranche B debt of that PIOC (including IBRA) may elect to:
(i) restructure its Tranche A debt or (as the case may be) the
Tranche B debt on terms to be agreed;
(ii) convert its Tranche A debt and its Tranche B debt into the
common shares of the PIOCs on terms to be agreed; or
(iii) enforce relevant security interests.
The holders of at least 75% of the outstanding Tranche C debt of
that PIOC (including IBRA) may elect to:
(i) convert its Tranche C debt into non-voting preference
shares; or
(ii) retain its Tranche C debt as outstanding debt on terms to
be agreed, Provided that in no circumstances shall Tranche C
debt be accelerated or declared immediately due and payable.
2.8 Security
- The Preliminary Agreements provide that the security over the
property and assets of each PIOC currently securing the debt
held by IBRA will be extended to secure the Tranche A and
Tranche B debt of each such PIOC on the Effective Date.
- Upon request of a majority of the creditors of a PIOC, on or
after the Effective Date the PIOC will grant to the holders of
its Tranche A and Tranche B debt security over certain
unencumbered assets.
- Any time after repayment of all amounts outstanding under its
Tranche A debt and 50% of all amounts outstanding under its
Tranche B debt, any PIOC may request release of any security
over its property or assets so long as the value of the
remaining collateral securing its Tranche B debt has a value
(determined by an independent assessor) of at least 120% of the
amount of its Tranche B debt outstanding.
2.9 PT Purinusa Ekapersada Purinusa
The Preliminary Agreements provide that each PIOC will repay an
allocable portion of the outstanding debt of Purinusa.
2.10 Forestry Issues
- The Preliminary Agreements provide that the wood prices paid
by Indah Kiat and Lontar Papyrus to related forestry companies
will be set by a mechanism involving forestry consultancy
experts nominated by both creditors and APP.
- In addition, the existing advances by Indah Kiat and Lontar
Papyrus to related forestry companies in the approximate amount
of US$700.0 million will be repaid by (i) crediting the related
forestry companies with the difference between a notional market
price of US$30.00 per metric tonne of wood and the actual
historical prices paid by the relevant PIOC; and (ii) in respect
of any remaining outstanding portion of the advances, setting
net future wood prices payable to the related forestry companies
by Indah Kiat and Lontar Papyrus at a US$30.00/per metric tonne
and crediting an additional notional amount of US$5.00 per
metric tonne until the advances have been extinguished.
2.11 Corporate Governance
The Preliminary Agreements require each PIOC to undertake a
number of corporate governance initiatives, including:
(i) an overall review of management to be carried out by an
international consultancy firm;
(ii) a review of cash control and management to be carried out
by an international consultancy firm;
(iii) Sales and Purchases/Efficiency and Productivity
initiatives:
- establishing an Executive Committee Exco of Purinusa which
will
supervise the trading activities of the PIOCs;
- the Exco will be chaired by a candidate selected by IBRA from
APPnominated candidates and comprise industry experts appointed
by the creditors and APP as well as PIOC representatives;
- the PIOC's domestic distribution agent, PT Cakrawala Megah
Indah CMI, will continue to operate as distribution agent, but
withdraw from its activities in domestic pulp sales by the
Effective Date; and
- requiring that proceeds of sales by the PIOCs be deposited in
escrow accounts established for restructuring purposes.
2.12 Control Period
During a control period each PIOC will be subject to monitoring
and agreed controls.
The control period will cease with respect to each PIOC when the
Tranche A debt of that PIOC has been repaid.
The Exco shall continue in effect in respect of each PIOC so
long as restructured debt of that PIOC remains outstanding.
Commenting on the Preliminary Agreements, Teguh Ganda Wijaya,
Chief Executive Officer of APP stated: "We are delighted that
the restructuring discussions have progressed to the stage where
these terms have been agreed. The negotiation process has been
significantly enhanced and accelerated through the guidance and
leadership provided by IBRA. We now hope to proceed rapidly to a
finalisation of the debt restructuring with all relevant
creditors."
Mr. Wijaya further noted: "As we have previously indicated, the
assumptions on which the restructuring terms are based are
challenging, particularly during this uncertain market
environment. However, we will do our level best to meet these
challenges for the benefit of all our stakeholders, especially
our creditors and employees. I offer my sincere appreciation to
those employees, customers, creditors and others who have
supported APP and its subsidiaries during these difficult
times."
APP is one of the world's leading pulp and paper companies. With
current pulp capacity of 2.3 million tonnes and paper and
packaging capacity of 5.7 million tonnes, it ranks number one in
non-Japan Asia. Headquartered in Singapore, APP currently has 16
manufacturing facilities in Indonesia and China and markets its
products in more than 65 countries on six continents.
For a copy of the press release, go to
http://bankrupt.com/misc/tcrap_app1206.pdf
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.
ISOFTEL LIMITED: Director Seah Yong Wah Resigns
-----------------------------------------------
The Directors of iSoftel Ltd announced the resignation of Seah
Yong Wah as a Director of the Company with effect from 5
December 2002.
TCR-AP reported earlier that Isoftel revealed a net loss of
S$29.062 million in the fiscal year 2001 against a profit of
294,000 in 2000.
The Board of Directors announced in September 2001 that the
first half-year results of the Company and Group are expected to
be worse than anticipated. The businesses of the Company and
Group, faced with significant slowdown in the telecommunications
industry, more particularly, in the US and Asian markets, have
declined substantially in the last two quarters. The Group also
is facing the growing trend of delayed investments from
customers who, in anticipation of the continued worsening
economic situation, have opted for prudence and prefer to defer
any new expansionary investment plans.
LINKS ISLAND: Issues Profit Warning
-----------------------------------
The Directors of Links Island Holdings Limited recently
announced that the recurrence of the disruption in and
restriction of sea sand export by the Indonesian authorities
will result in a significant drop in sales and that this would
have a material adverse impact on the Group's financial
performance.
The continued disruption and restriction is expected to result
in a significant operating loss for the Group for the financial
year ending 31 December 2002. However, this loss will be
partially offset by the refund of an amount of approximately S$2
million in relation to certain exempt shipping income, which was
previously taxed. Notwithstanding a tax refund, the Group is
expected to still incur a loss for the financial year ending 31
December 2002.
MEDIARING LIMITED: Enters Purchase Deal With Datuk Nur
------------------------------------------------------
The Board of Directors of MediaRing Ltd announced that the
Company has entered into a Sale and Purchase Agreement dated
December 3, 2002 with Datuk Nur Jazlan Bin Rahmat and Datuk Nur
Jazman Bin Mohamed (the Vendors), pursuant to which the Company
will, subject to the terms and conditions therein, acquire the
entire issued and paid-up capital of Interindo (Malaysia) Sdn
Bhd (Interindo) for a total consideration of RM875,000.
The consideration is arrived at on a willing-buyer willing-
seller basis and will be funded by internal resources. The net
tangible asset of the entire issued and paid-up of Interindo is
approximately RM500,000.
Interindo is a Company incorporated in Malaysia and has an
issued and paid-up capital of RM750,002 divided into 750,002
shares of par value RM1.00 each. Interindo is in the business of
providing value-added telephony services and is an approved
Application Service Provider licensed holder.
SPP LIMITED: Post Notice of Board Changes
-----------------------------------------
The Board of Directors of SPP Limited announced changes to the
Board and Audit Committee and the formation of a Nominating
Committee and a Remuneration Committee.
Board of Directors
Lei Huai Chin was re-designated from an Executive Director to a
Non-Executive Director of SPP with effect from 1 December 2002.
He will therefore relinquish his post of Chief Financial
Officer. With the said changes, the Board will consist of the
following Directors:
Peter Sung (Chairman, Independent and non-executive)
Cheng Hong Kok (Independent and non-executive)
Tan Lye Huat (Independent and non-executive)
Ong Teck Ghee (Independent and non-executive)
Lei Huai Chin (Non-independent and non-executive)
Low Kian Beng (Managing Director, non-independent and executive)
David Lee Kay Tuan (Non-independent and executive)
Audit Committee (AC)
Low Kian Beng has resigned from the AC with effect from 1
December 2002 and Lei Huai Chin has been appointed as a member
of the AC with effect from 1 December 2002. With the said
changes, the Audit Committee will consist of:
Cheng Hong Kok (Chairman, independent and non-executive)
Tan Lye Huat (Independent and non-executive)
Ong Teck Ghee (Independent and non-executive)
Lei Huai Chin (Non-Independent and non-executive)
Remuneration Committee (RC)
The following Directors were appointed to the RC with effect
from 1 December 2002:
Peter Sung (Chairman, independent and non-exeuctive)
Tan Lye Huat (Independent and non-executive)
Low Kian Beng (Managing Director, non-independent and executive)
Nominating Committee ("NC")
The following Directors were appointed to the NC with effect
from 1 December 2002:
Peter Sung (Chairman, Independent and non-executive)
Cheng Hong Kok (Independent and non-executive)
David Lee Kay Tuan (non-independent and executive)
According to Wright Investor's Service, at the end of 2000, SPP
Limited had negative working capital, as current liabilities
were S$60.34 million while total current assets were only
S$47.74 million.
===============
T H A I L A N D
===============
BANKCHAK PETROLEUM: Bidding For State Contracts Allowed Soon
------------------------------------------------------------
Beginning January, state-owned oil refiner Bangchak Petroleum
will be allowed to compete with another state-owned energy firm
PTT for government contracts, Reuters said Friday.
Bangchak officials say the company will aim for 25% to 30% of
the government contracts, which is currently dominated by PTT.
The government, on the other hand, hopes the new business will
alleviate Bangchak's weak financial position that resulted from
1997-98 Asian financial crisis. The company expects the
arrangement to yield about four billion baht of sales in 2003.
"PTT and Bangchak will compete in terms of services and prices.
At end of the day, government agencies will benefit from better
quality of services and more competitive prices," Bangchak's
Yodphot Wongrukmit, vice president of retail marketing, told
Reuters.
Just a week ago, major oil refiner Caltex spurned the
government's efforts to revive the fortunes of Bangchak. In
October, the Thai cabinet granted a short-term three billion
baht loan to Bangchak, which is 47.9 percent owned by the Thai
finance ministry, 24.3 percent by PTT, and 7.8 percent by Krung
Thai Bank.
But a spokesman for Thailand's Energy Policy and Planning Office
said the government is not troubled by criticisms that it is
violating its free-market policy in the deregulated oil
industry.
"The government is supporting Bangchak for nationalistic
reasons. The firm also has a lot of support from rural farmers,"
the EPPO spokesman told Reuters.
He said Bangchak is popular with farmers because it markets
farmers' produce at its service stations. Bangchak has about
1,100 service stations throughout Thailand.
"This is a chief business improvement plan for next year,
helping Bangchak improve its financial status," said Manoon
Siriwan, senior vice-president at Bangchak for industrial
markets and lubricants.
Analysts said the additional income could alleviate Bangchak's
debt problem, hovering at 24 billion baht versus capital of 2.7
billion baht. Mr. Siriwan said Bangchak expects to generate
2002 sales of 40 billion baht.
The firm, which has reported losses for the past three years,
posted 548-million-baht in net profit for the first nine months
of 2002, compared with a net loss of 1.76 billion baht in the
same period last year, Reuters 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
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contained herein is obtained from sources believed to be
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