/raid1/www/Hosts/bankrupt/TCRAP_Public/030120.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, January 20, 2003, Vol. 6, No. 13
Headlines
A U S T R A L I A
ALLIED CARPET: Former Secretary Appears on Fraud Charges
CRANSWICK PREMIUM: Explanatory Statement Slightly Revised
GOODMAN FIELDER: Recommends Shareholders Reject Offer
KALREZ ENERGY: Welcomes Mr Mercorella as New Exec Chairman
MAXIS CORPORATION: CEO Swan Steps Down From Post
MAXIS CORPORATION: Unit Gets Major Contract Renewal
POWERLAN LIMITED: Disposes AXAPTA ERP Division
POWERLAN LIMITED: Sells ITTSD to Transaxiom for AU$1.472M
TRANSURBAN GROUP: S&P Lowers Credit Rating
* ASIC Accepts Undertaking to Wind Up Mortgage Funds
C H I N A & H O N G K O N G
FUND WEALTH: Winding Up Petition Pending
IBIS INTERIOR: Winding Up Hearing Scheduled in February
INNOVATIVE INTERNATIONAL: No Reason for Share Price Decrease
LUEN WING: Winding Up Petition Hearing Set
SYNERGY SPORT: Faces Winding Up Petition
YAOHAN INTERNATIONAL: Winding Up Sought by Ever Gain
I N D O N E S I A
ETERINDO WAHANATAMA: Restructures US$185M Debt
TIMAH TBK: Buying US$20M Worth of Coal Mines
J A P A N
HAZAMA CORPORATION: Asking Creditors to Forget JPY150B in Loans
ISUZU MOTORS: Forecasts 20% Dive in Worldwide Sales this Year
NIPPON SHOKUHIN: Former President Owns Up to JPY122 Million-Lie
SEIBU DEPARTMENT: Freezing Hiring Pending Rehabilitation
SUZUMENO-OYADO: Restaurant Files for Bankruptcy
* Number of Liquidated "Third-Sector" Firms to Increase in 2003
K O R E A
CHOHUNG BANK: Bid Committee Likely to Declare Shinhan Winner
HYNIX SEMICONDUCTOR: Banks, Wary of Losses, Plan to Up Provision
* Banks Record 7% Rise in Credit Defaults Last Year
M A L A Y S I A
BRIDGECON HOLDINGS: FIC OKs PNB Appeal Over Interest Condition
COUNTRY HEIGHTS: RAM Lowers Redeemable Bonds to D
CSM CORPORATION: Unit Signs Memorandum of Understanding With SVD
FW INDUSTRIES: Explains Audited, Unaudited Results Variance
FW INDUSTRIES: KLSE Approves RA Time Extension
IDRIS HYDRAULIC: Winding Up Demand Payment Amounts RM742,535.98
KEMAYAN CORPORATION: Replies to KLSE's Writ of Summon Query
L&M CORPORATION: Proposed CDRS Subject to Approvals
LINGUI DEVELOPMENTS: Bondholders Allow Security Interest
OLYMPIA INDUSTRIES: Issues Memorandum of Understanding Update
PROMET BERHAD: Memorandum of Understanding With DISB Lapsed
SRIWANI HOLDINGS: Vendors OK Sale, Purchase Agreements Revision
TECHNO ASIA: Submits SAs' Statutory Declaration to KLSE
UCP RESOURCES: Inks Debt Settlement Agreement With Goldenseal
UH DOVE: Clarifies RM100M Revenue Target Report
UNIPHOENIX CORP.: Share Sale Agreement With Purchaser Terminated
WING TIEK: FIC Grants Proposed CDRS Approval
WOO HING: Clarifies Media Report Re RM58.42M Debt Settlement
P H I L I P P I N E S
ASSOCIATED WIRE: Receivership Application Junked on Technicality
MANILA ELECTRIC: Predicts 2002 Earnings to be 70% Down
MAYNILAD WATER: Unhappy with Newly Approved Rate Hike
NEGROS NAVIGATION: Refutes Rumors of Unpaid Liabilities
S I N G A P O R E
BIL INTERNATIONAL: Ex-CFO Files Suit to Recover Unpaid Wages
CYBER VILLAGE: Losing Suit vs. Ericsson May Impact Finances
I.R.E. CORPORATION: Says Full-year Results Worse Than Expected
T H A I L A N D
BANGCHAK PETROLEUM: SET Posts `H' Sign on Securities
EMC PUBLIC: SET Suspends Securities Trading
SATHORN SOMBAT: Business Reorganization Petition Filed
TELECOMASIA CORP.: TRIS Affirms `BBB' on Bt11,715.40M Bonds
- - - - - - - -
=================
A U S T R A L I A
=================
ALLIED CARPET: Former Secretary Appears on Fraud Charges
--------------------------------------------------------
Mr Stewart Milne, the former secretary of Allied Carpet
Industries Pty Ltd (Allied Carpet), which went into full
liquidation on 6 December 2000, has appeared before the Perth
Magistrates Court on two Australian Securities and Investments
Commission (ASIC) fraud charges.
ASIC alleges that between April and July 2000, Mr Milne provided
false financial information to the National Australia Bank and
in doing so, fraudulently obtained a temporary overdraft
facility of $150,000 and a permanent facility of $176,000 for
Allied Carpet.
The charges were laid following an ASIC investigation and are
being prosecuted by the Commonwealth Director of Public
Prosecutions.
Mr Milne was not required to enter a plea and he was bailed to
reappear in the Perth Magistrates Court for a committal mention
on 19 February 2003.
CRANSWICK PREMIUM: Explanatory Statement Slightly Revised
---------------------------------------------------------
Cranswick Premium Wines Limited advised that the indicative
timetable set out in the Explanatory Statement has been revised
slightly. The last day for dealing in Cranswick Shares and Notes
will be 27 February 2003, after which day those Cranswick
securities will trade as Evans & Tate securities on a deferred
settlement basis. This period of deferred settlement trading
will end on 24 March 2003, being the business day after the
dispatch of Evans & Tate holding statements for those
securities. The revised timetable is set out below.
IMPORTANT DATES
EVENT DATE
Scheme Meetings to be held 17 February 2003
(Proxy Forms for the Scheme Meetings must
be received by no later than 48 hours
prior to commencement of the relevant
Scheme Meeting.)
Court Hearing for approval of Schemes 27 February 2003
Court Order is lodged with ASIC
(i.e. Effective Date) 27 February 2003
Last day for dealing in Cranswick
Shares and Notes 27 February 2003
(Cranswick Shares and Notes are suspended
from close of trading. Those securities
to commence trading as Evans & Tate shares
and notes on a deferred settlement basis on
28 February 2003)
Record Date for determining entitlements 6 March 2003
(i.e. close of register - 5 business days
after the Effective Date)
Completion Date of the Schemes 20 March 2003
(i.e. 10 business days after the Record Date)
Dispatch of Evans & Tate holding statements
for Shares, Options and Notes 21 March 2003
Deferred settlement trading to cease 24 March 2003
* All dates are indicative only and are reliant on various
approvals, including the Court and regulatory bodies.
GOODMAN FIELDER: Recommends Shareholders Reject Offer
-----------------------------------------------------
The Directors of Goodman Fielder Limited on Friday recommended
shareholders reject Burns Philp's takeover bid because the offer
does not adequately reflect the company's underlying value and
ongoing potential.
Goodman Fielder's Chairman, Dr Keith Barton said: "After careful
consideration of the offer, as well as the potential issues and
risks that could affect Goodman Fielder shareholders, the Board
of Goodman Fielder recommends that shareholders reject the
offer.
"Each Director of Goodman Fielder intends to reject the offer in
respect of his or her own shareholding.
"We believe the bid does not adequately compensate shareholders
for the underlying value of Goodman Fielder and its ongoing
potential. The offer price does not reflect an appropriate
acquisition price for control of Goodman Fielder. The bid is
opportunistically timed given the impact of short-term commodity
price increases, primarily caused by drought conditions.
"The 'new' Goodman Fielder retail branded strategy that
commenced in mid-2001 is creating significant value and is
expected to deliver further benefits to shareholders. At the
same time, Goodman Fielder's key performance and financial
indicators of Economic Profit and Return on Funds Employed are
continuing to improve.
"Your Directors believe these successes are an indication of
what the new Goodman Fielder is capable of achieving in the
longer term which should deliver further benefits to
shareholders.
"From mid 2001 when the current strategy was implemented until
12 December 2002 just before the offer was announced, Goodman
Fielder generated Total Shareholder Returns of 37 per cent. The
S&P/ASX 200 accumulation index generated a return of negative 10
per cent during the same period," said Dr Barton.
"The offer is inadequate and opportunistic given that the
implied control premium is only around 10-15 per cent above the
share price during the three month period before 6 September
2002.
"In addition to the inadequacy of the Burns Philp offer price,
the bid is highly conditional. The existing offer does not
provide a sufficient degree of certainty for Goodman Fielder
shareholders that the offer will be completed," said Dr Barton.
"Other considerations include the possibility of alternative
proposals, which may enhance value for Goodman Fielder
shareholders. In particular, Goodman Fielder is currently in
active discussions with other parties, which may lead to
alternative proposals for consideration by shareholders.
"In making our recommendation, your Directors have been
cognizant of their obligations to act in the best interest of
shareholders and, as such, we have carefully considered the
offer."
In closing, Dr Barton said: "Goodman Fielder is a unique company
in Australasia, with great icon brands including Uncle Tobys,
Meadow Lea, Mighty Soft Buttercup, Bluebird, Praise, Pampas,
White Wings, Helga's, Quality Bakers, Crest and Flame.
"Your Directors believe the offer does not adequately recognize
the value and unique potential of Goodman Fielder," Dr Barton
said.
Goodman Fielder's Target's Statement is due to be dispatched to
shareholders on Monday 20 January 2002 in line with the
appropriate legal requirements.
Goodman Fielder Directors Recommend Shareholders Reject the
Burns Philp Offer for the following reasons:
1. The bid does not adequately compensate Goodman Fielder
shareholders for the underlying value of their company and its
ongoing potential.
The offer price of $1.85 does not reflect an appropriate
acquisition price for control of Goodman Fielder.
The bid is opportunistically timed given the impact of short-
term commodity price increases primarily caused by drought
conditions.
2. The "new" Goodman Fielder retail branded strategy that
commenced in mid 2001 is creating significant value and is
expected to deliver further benefits to shareholders.
3. In addition to the inadequacy of the Burns Philp offer price,
the bid is highly conditional. The existing offer does not
provide a sufficient degree of certainty for Goodman Fielder
shareholders that the offer will be completed.
4. Other considerations for shareholders include the possibility
of alternative proposals, which may enhance value for Goodman
Fielder shareholders.
In particular, Goodman Fielder is currently in active
discussions with other parties, which may lead to alternative
proposals for consideration by shareholders.
KALREZ ENERGY: Welcomes Mr Mercorella as New Exec Chairman
----------------------------------------------------------
Kalrez Energy Limited announced:
a) Mr Guiseppe (Joe) Mercorella has accepted the position as
Executive Chairman of Kalrez Energy Ltd, effective Monday 20th
January 2003.
With Mercorella's acceptance of the position, Chairman E Smith
resigns as Chairman but shall remain as an active Director.
"Joe is an asset to the company and his reputation of not being
a `gonna' bulldust type person and is known as a person who can
and will provide sensible and effective leadership. He is
committed to delivering to shareholders increases in their
investment. As a long-term shareholder himself, Joe fully
appreciates the concerns of Kalrez shareholders.
"With Joe's commitment to create growth and wealth he also
understands the need for the transparency in corporate
governance and keeping shareholders properly informed.
"Joe intends to work closely with Russell Brimage, our
Indonesian executive director. Russell has considerable
experience in Jakarta and has been the person who put together
our Indonesian assets," Chairman E Smith said.
b) Accepts Doug Jendry's resignation as Director.
Doug only recently joined the Board to assist Chairman Smith, to
provide his knowledge and support in the difficult period
following 28th November 2002.
During his short tenure the company resolved the Seram cash
default position, moved offices, realized capital and secured
funding for the future ongoing operations in Indonesia. Also
during this time the Kalrez share price increased 150%.
Doug gave Kalrez his time to assist the company now, as Chairman
Smith term it to "turn the corner" whilst being a fulltime
executive with other public companies
Kalrez thanks Doug unreservedly for his invaluable contribution
in assisting the company to reach this stage.
Doug has agreed to remain a consultant to the Company.
c) With Joe Mercorella's base in Adelaide it has been agreed to
move the Company's office effective from Monday 20th January
2003.
The new registered office will be:
Kalrez Energy Ltd
Suite 33
168 Melbourne Street
North Adelaide SA 5006
Telephone No: 08 8239 1344
Facsimile No: 08 8239 1744
Chairman Smith shall remain based in Western Australia at the
recently established Victoria Park office and shall continue to
work from there but the office will only have a branch office
type status.
d) Though it may seem like a small event, to Kalrez it is a very
importance step.
The company shall make payment of the interest due on the
default cash calls, period March to July 2002, of approximately
A$44,500.00.
"This I believe is a big step towards turning the corner,"
Chairman Smith said.
MAXIS CORPORATION: CEO Swan Steps Down From Post
------------------------------------------------
Maxis Corporation Limited ACN 009 239 285 (MXS) wishes to
announce that its interim CEO, Mr Nicholas Swan, has resigned as
director and secretary of Maxis.
MXS has appointed a sub-committee of its board to identify a
suitable candidate to fill the role of CEO. The Board has
appointed Vincent Sweeney as CFO and interim CEO, effective
immediately.
The Board is also pleased to announce the appointment of Geoff
Garside as Company Secretary of Maxis Corporation Ltd. Geoff's
background includes being a Principal of Barrington Corporate
Finance, and previous senior finance and administration roles
with the Dalgety Australia Group (Company Secretary & Group
Treasurer), Pfizer Corporation and Amcor. Geoff is a FCPA, FFTP,
including Past National President of the Finance & Treasury
Association, and former NSW Councillor of Chartered Secretaries
Australia. He has over 30 years domestic and overseas experience
in commercial corporations.
Mr Swan has served the company as a director since March 2001,
initially as a non-executive director and company secretary.
Subsequently, he became an executive director and CFO prior to
his appointment as the interim CEO.
The Board of Maxis wishes to express its gratitude to Mr Swan
for his services to the company, and extends its best wishes to
him in his future endeavors.
Wrights Investors' Service reports that at the end of 2002,
Maxis Corporation Limited had negative working capital, as
current liabilities were A$2.82 million while total current
assets were only A$2.56 million. The company also reported
losses during the previous 12 months and has not paid any
dividends during the previous 2 fiscal years.
MAXIS CORPORATION: Unit Gets Major Contract Renewal
---------------------------------------------------
Maxis Corporation Limited advised that CSC intends to renew its
major contract with the company's subsidiary Managed Networks.
This extension will be for a further three years and the
financial terms will be substantially the same to those applying
in prior years. The extension will provide more flexibility than
previously for CSC to vary the scope and breadth of the
contract, including deleting certain services. Definitive
agreements have not yet been drafted but are expected to be
finalized in the near future.
As this contract was the primary income source for the group,
the board sees this renewal as providing a sound footing for
business for the coming calendar year.
POWERLAN LIMITED: Disposes AXAPTA ERP Division
----------------------------------------------
The Board of Directors of Powerlan Limited advises that the
Company has sold its Axapta ERP consulting and implementation
Divisions in Hong Kong and Singapore to Avanade Asia Pte Ltd.
Total consideration was $USD60,000.
Axapta is a third party accounting software product. The
Divisions involved in providing services around this product
have under performed in the past 2 years.
Powerlan's Managing Director, Theo Baker, remarked "Although not
material in terms of consideration this transaction eliminates
contractual obligations that would otherwise need to be
fulfilled by Powerlan at a significant cost."
The sale is in line with Powerlan's strategic direction to
concentrate on its software products divisions and specialized
services that surround such products.
Powerlan will continue rationalizing the balance of its Asian
operations by divesting or closing non-core businesses in these
locations and ensuring efforts are completely focused on core
activities.
POWERLAN LIMITED: Sells ITTSD to Transaxiom for AU$1.472M
---------------------------------------------------------
The Board of Directors of Powerlan Limited advises that the
Company has sold its International Trade and Transportation
Software Division (ITTSD) to Transaxiom Asia Pacific Pty Ltd for
$1,472,000. The sale proceeds along with the final amount due
from the sale of IT&T Careers Pty Ltd will be used to reduce the
amounts owing in relation to the Deed of Company Arrangement in
respect to the voluntary administration of ACN 056 159 963 Pty
Ltd formerly known as Powerlan (Qld) Pty Ltd (ASX Announcement
24 December 2002)
Powerlan's decision to sell this Division was based upon the
need for significant investment in upgrading the software
platform with latest technologies and with the transforming
international trade and transportation industry. Powerlan came
to a view that using the proceeds from the divestment of its
ITTSD to reduce debts and diverting development funds into its
other software divisions would give better shareholder value.
Theo Baker, Powerlan's Managing Director said "Transaxiom, has a
complete range of international trade and transportation
solutions and is well placed to merge ITTSD solutions into its
own extensive portfolio resulting in a comprehensive offering to
existing customers and to the international trade and
transportation community."
CONTACT INFORMATION: Theo Baker
MANAGING DIRECTOR
Phone: +612 9925 4602
e-mail: tbaker@powerlan.com.au
www.powerlan.com.au
TRANSURBAN GROUP: S&P Lowers Credit Rating
------------------------------------------
Standard & Poor's Rating Services on Friday has affirmed its 'A-
' long-term rating on Transurban Finance Co Ltd's (TFC) senior
secured debt and its 'BBB+' rating on TFC's subordinated debt.
TFC is the financing vehicle for the Transurban group
(Transurban). At the same time, Standard & Poor's lowered its
long-term corporate credit rating on TFC to 'BBB+' from 'A-'.
Both the corporate credit rating and the subdebt rating have
been removed from CreditWatch with negative implications, where
they were placed on Oct, 30, 2002, following Transurban's
nomination as a preferred developer of the Western Sydney
Orbital (WSO) toll road in Sydney. The outlook on the corporate
credit rating is stable. Standard & Poor's also affirmed its
'AAA' rating on TFC's A$840 million credit-wrapped bonds.
The lowering of TFC's corporate credit rating reflects the
increased business and financial risks associated with the WSO
project. Transurban's initial investment in the project, a 40-
kilometre fully electronic toll road linking the M2, M4, and M5
freeways in Sydney, will be through a 40% shareholding. The
company's transition from a business with access to solid cash
flows from its established Melbourne City Link (MCL) asset to
one of a developer brings with it added diversification of cash
flows, but also added risk. Contrary to the strong underlying
demand fundamentals and good operational performance of its MCL
asset, the greenfield WSO project incorporates, among other
uncertainties, construction and traffic risk.
Transurban's funding commitment to the WSO project will also
weaken its financial profile. Although the debt to be used to
fund the bulk of the project is to be nonrecourse to
Transurban's assets and cash flows, the company's intention to
fund its equity investment through debt-like reset preference
securities, and the potential requirement to provide additional
funding in the event that construction risk materializes, have
reduced the financial buffer previously incorporated into the
'A+' rating.
"Transurban's involvement in the WSO project signals a strategic
move by the company to assume greater developer risk," said
Laurie Conheady, associate director, Corporate & Infrastructure
Finance Ratings. "Adding to the risk is Transurban's position as
a minority equity holder in the WSO project and a reliance on
subordinated cash flows to service its WSO investment following
construction," Mr Conheady added.
TFC's senior secured debt remains ring-fenced from Transurban's
exposure to the WSO project. Established protection measures
such as a fixed and floating charge on all of MCL's assets and
cash flows mean the senior debt providers to TFC are unaffected
by Transurban's changed business position.
* ASIC Accepts Undertaking to Wind Up Mortgage Funds
----------------------------------------------------
The Australian Securities & Investments Commission (ASIC) has
accepted an Enforceable Undertaking from Hebe Computers Pty Ltd,
its directors, Mr Raymond George Berry, Mr John Stephen Wright,
Mr Ian Graeme Murray and Herman & Berry, an accounting firm in
Preston, Victoria, in relation to several unregistered managed
investment schemes.
Hebe Computers, the directors of the company, and Herman & Berry
have undertaken to immediately wind up several contributory
mortgage schemes that were not registered with ASIC, as required
under the Managed Investment Scheme provisions of the
Corporations Act 2001.
ASIC took this action to protect the interests of investors in
the schemes. ASIC was concerned that investors were not provided
with the same level of protection that would have been accorded
to them if the mortgage funds had been established and
registered in accordance with the relevant legislation.
Under the Act, a Responsible Entity, namely a public company
that holds a dealers license, authorizing it to operate the
scheme, must operate managed investment schemes. The responsible
entity is required to provide investors with a disclosure
document that has been lodged with ASIC.
Neither Hebe Computers Pty Ltd nor Herman & Berry were licensed
to operate managed investment schemes.
Messrs Berry, Wright and Murray, Hebe Computers and Herman &
Berry have acknowledged ASIC's concerns, and accordingly offered
to enter into the Enforceable Undertaking.
All the unregistered mortgage funds will be entirely wound up by
21 March 2003.
ASIC's action followed a referral from the Australian Prudential
Regulation Authority, which became aware of the unregistered
mortgage funds during a routine surveillance.
================================
C H I N A & H O N G K O N G
================================
FUND WEALTH: Winding Up Petition Pending
----------------------------------------
Fund Wealth Finance Company Limited is facing a winding up
petition, which is slated to be heard before the High Court of
Hong Kong on January 29, 2003 at 10:00 in the morning.
The petition was filed on November 21, 2002 by Guangzhou Finance
Company Limited whose registered office is situated at 17A, Yue
Xiu Building, 160-174 Lockhart Road, Wanchai, Hong Kong.
IBIS INTERIOR: Winding Up Hearing Scheduled in February
-------------------------------------------------------
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 Ibis
Interior Design & Associates Limited.
Kinland International Limited Office of No. 4, 7th Floor, Nam Wo
Hong Building, 148 Wing Lok Street, Hong Kong filed the petition
on December 6, 2002. Messrs. Kitty So & Tong represents the
petitioner.
Creditors and other interested parties are encouraged to attend
the hearing. They only need to notify in writing Messrs. Kitty
So & Tong, Rooms 403-4, 4th Floor, HSBC Building, 150-160 Castle
Peak Road, Yuen Long, New Territories, Hong Kong.
INNOVATIVE INTERNATIONAL: No Reason for Share Price Decrease
------------------------------------------------------------
The Board of Directors of Innovative International (Holdings)
Limited has noted the recent decreases in the price of the
shares of the Company and wishes to state that the Board is
not aware of any reasons for such decrease.
Save as disclosed in the announcement of the Company on 30
December, 2002, the Board also confirms that there are no
negotiations or agreements relating to intended acquisitions or
realizations which are discloseable under paragraph 3 of the
Listing Agreement, neither is the Board aware of any matter
discloseable under the general obligation imposed by paragraph
2 of the Listing Agreement, which is or may be of a price
sensitive nature.
Wrights Investors' Service reports that at the end of 2002,
Innovative International had negative working capital, as
current liabilities were HK$836.71 million while total current
assets were only HK$35.06 million. The company also reported
losses during the previous 12 months.
LUEN WING: Winding Up Petition Hearing Set
------------------------------------------
The petition to wind up Luen Wing Management Limited is
scheduled to be heard before the High Court of Hong Kong on
February 12, 2003 at 9:30 in the morning.
The petition was filed with the court on December 6, 2002 by
Keung Wai Wing of Room 1334, Block 4, Wong Chuk Hang Estate,
Aberdeen, Hong Kong.
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.
SYNERGY SPORT: Faces Winding Up Petition
----------------------------------------
The petition to wind up Synergy Sport International Limited will
be heard before the High Court of Hong Kong on January 29, 2003
at 10:00 in the morning.
The petition was filed with the court on November 25, 2002 by
Bank of China (Hong Kong) Limited (the successor corporation to
Bank of China, Hong Kong Branch pursuant to Bank of China (Hong
Kong) Limited (Merger) Ordinance (Cap. 1167) of 14th Floor, Bank
of China Tower, 1 Garden Road, Central, Hong Kong.
YAOHAN INTERNATIONAL: Winding Up Sought by Ever Gain
----------------------------------------------------
Ever Gain Company Limited is seeking the winding up of Yaohan
International Co. Limited. The petition was filed on November
14, 2002, and will be heard before the High Court of Hong Kong
on January 29, 2002 at 9:30 am.
Ever Gain holds its registered office at Units 7-10, 26th Floor,
Tower 1, Ever Gain Plaza, 88 Container Port Road, Kwai Chung,
New Territories, Hong Kong.
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I N D O N E S I A
=================
ETERINDO WAHANATAMA: Restructures US$185M Debt
----------------------------------------------
Publicly listed chemical company PT Eterindo Wahanatama has
reached an restructuring agreement for its US$185 debt with the
state-owned Bank Mandiri, Asia Times reports, referring to the
company's announcement to the Jakarta Stock Exchange.
The report said that under the agreement, US$145 million of the
debt will be converted into shares making the state bank co-
owner of a number of Eterindo's subsidiaries.
Wrights Investors' Service reports that at the end of 2001, PT
Eterindo Wahanatama had negative working capital, as current
liabilities were Rp3.34 trillion while total current assets were
only Rp653.83 billion. The company has paid no dividends during
the last 12 months and reported losses during the previous 12
months.
TIMAH TBK: Buying US$20M Worth of Coal Mines
--------------------------------------------
PT Timah Tbk will buy US$20 million worth of coal mines with an
annual capacity of 1 million tons, Asia In Focus reported
Thursday, citing Company President Thobrani Alwi, adding that
the company will seek additional loans to finance the
acquisition.
The company is also conducting due diligence studies of three
coal mining companies it plans to buy.
PT Timah wants to enter the coal mining sector because it has
continued to report losses over the past several years because
of the fall in tin prices.
On April 19 last year, the Troubled Company Reporter - Asia
Pacific reported that Timah is restructuring its operations and
corporate structure after recording a sharp fall in its net
profit last year to Rp36.8 billion from 331.5 billion previously
due to a steep drop in tin prices and sharply higher production
costs amid rampant illegal mining.
=========
J A P A N
=========
HAZAMA CORPORATION: Asking Creditors to Forget JPY150B in Loans
---------------------------------------------------------------
Construction contractor Hazama Corp. plans to spin-off its loss-
making real estate operations as part of its efforts to ask for
more debt forgiveness from creditor banks, Japan Today said
Friday.
Accordingly, the struggling company is asking for an additional
150 billion yen in debt write-offs from lenders, which include
Mizuho Corporate Bank, company and banking sources told the
paper last week.
In November, the company posted a consolidated net loss of 1.72
billion yen, citing difficult business climate. The company had
total assets of US$3.8 billion as of March 2002, with total
liabilities of US$3.7 billion.
Hazama helped construct Tower One of Malaysia's Petronas Twin
Towers, the world's tallest buildings. A leading Japanese civil
engineering company, Hazama specializes in the construction of
skyscrapers, dams, tunnels, and offshore developments, a
Hoovers.com dossier says.
Hazama is also involved in hotel and retirement facilities, real
estate, and golf course management, including in the US. The
decline in the Japanese construction market has prompted Hazama
to liquidate or consolidate some of its subsidiaries. The
company is seeking to tap into new growth by deploying its
environmental technologies for contaminated soil remediation and
river and lake treatment, the dossier added.
ISUZU MOTORS: Forecasts 20% Dive in Worldwide Sales this Year
-------------------------------------------------------------
Isuzu Motors Ltd., the Japanese partner of American car giant
General Motors, slashed last week by 20% its worldwide sales
target for 2003, Japan Times said Friday.
The cutback was blamed on the reduction of the company's
overseas sport utility business. Isuzu said it plans to produce
430,000 vehicles worldwide this year, down 6 percent from 2002.
Although its domestic production volume will decrease 21 percent
to 182,000 units in 2003, its overseas production is estimated
to rise 11 percent to 248,000 units.
Diesel engine production, however, is expected to increase to
meet growing demand in the European automotive market, an Isuzu
official told the paper.
Meanwhile, the company announced that GMI Diesel Engineering
Ltd., a joint venture set up with GM last year in Fujisawa,
Kanagawa Prefecture, will start operations February 1 to develop
applications for diesel engines supplied for GM vehicles.
In downgrading the carmaker's rating last month, Japan Credit
Rating Agency said the business and financial risk of Isuzu had
increased. It considered the company's pullout of production of
SUVs in North America as sign of its unstable earnings, given
the recent sharp drop in the competitive edge of its business.
"The financial burden with respect to the withdrawal will be
large. In the course of the cutback in the business, Isuzu needs
to restructure the sales organization in an urgent manner. This
restructuring may incur additional unexpected costs," the rating
agency said.
"There is much uncertainties over the improvement in the
earnings of this business. Although the course to the
restructuring of the entire business is now clear than before,
JCR considers it necessary to watch carefully the carrying out
of the restructuring plan," JCR added.
Isuzu is now rated B+ and NJ, down from the previous BB and J-3
on JCR's ratings board.
NIPPON SHOKUHIN: Former President Owns Up to JPY122 Million-Lie
---------------------------------------------------------------
Shigehito Atoyama admitted last week to swindling the government
of some 136 million yen in subsidies while still president of
meat processor Nippon Shokuhin Co., Japan Times reported
recently.
The Fukuoka-based company filed for protection from creditors in
July last year and was subsequently allowed to rehabilitate its
business on August 23, 2002. The firm listed liabilities of
about 22.03 billion yen.
Along with two other former executives, Mr. Ayotama appeared
before the Fukuoka District Court last week and admitted that it
mislabeled about 122 tonnes of imported beef as domestic. This
resulted in the granting of the subsidies by the government-
commissioned industry body in late 2001.
Until his arrest in November 2001, Mr. Atoyama denied any
wrongdoing, claiming he had no knowledge of the swindle, the
paper said. The subsidies were paid under a buyback program
instituted to help the beef industry after the outbreak of mad
cow disease in domestic cattle in 2001.
The other former company officers standing trial for their part
in the anomaly are Takeshi To, former auditor; and Yasunori
Yoshida, sales manager at the time.
SEIBU DEPARTMENT: Freezing Hiring Pending Rehabilitation
--------------------------------------------------------
Cash-strapped Seibu Department Stores Ltd. will implement a job
freeze in the next five years in a bid to cut labor-related
expenses, while rehabilitating its business, Dow Jones Newswires
reported late last week.
The company, which sought creditor banks for Y230 billion in
financial assistance last week, said it aims to cut down an
annual JPY17.8 billion bill related to workers' compensation and
benefits beginning next month, the start of its fiscal 2003.
Dow Jones said the move is unprecedented for the major
department store that has recruited an average of 40-80
employees annually since 1993. Its workforce, currently
numbering 5,400, will be reduced to 3,400 next month. At the
end of the freeze in February 2008, the company will only have
2,400 workers.
The company has six major creditor banks, which include Mizuho
Corporate Bank, and the affiliated Credit Saison Co.
SUZUMENO-OYADO: Restaurant Files for Bankruptcy
-----------------------------------------------
Suzumeno-Oyado Kaihatsu Co. Ltd., purveyors of sushi and
bento, which has total liabilities of 5.7 billion yen, recently
applied for civil rehabilitation proceedings, according to
Tokyo Shoko Research.
The company has 110 employees and is located
at Minato-ku, Tokyo, Japan.
* Number of Liquidated "Third-Sector" Firms to Increase in 2003
---------------------------------------------------------------
A total of 63 "third-sector" firms, or joint ventures between
the public and private sectors, were liquidated in 2002, a
record high, said Teikoku Data Bank Ltd last week.
According to the private credit research firm, the number of
failed third-sector ventures in 2001 was only 43 and it expects
the upswing to continue this year. The firm attributed the
increasing trend to credit tightening by financial institutions
due to the prevailing economic condition.
Of the firms that were liquidated last year, 29 firms, or 46% of
the total, were from the tourism and leisure industry, and 18
firms, or 28%, were in property development and facility
management operations, Teikoku Data Bank said.
Large-scale bankruptcies were seen in the tourism and property
development industries. One such case was a third-sector firm
handling a resort construction project in Bandai, Fukushima
Prefecture, which went under with liabilities of 95 billion yen,
Teikoku Data Bank said.
=========
K O R E A
=========
CHOHUNG BANK: Bid Committee Likely to Declare Shinhan Winner
------------------------------------------------------------
The preferred bidder for Chohung Bank would likely be known
Thursday, as the Public Fund Oversight Committee is expected to
make a decision during its meeting on January 22, the Korea
Herald said late last week.
At the moment, Shinhan Financial Group appears likely to bag the
bank, Minister of Finance and Economy Jeon Yun-Churl told the
paper in an interview. He said the joint public-private sector
committee, of which he is a member, held a general meeting last
week to discuss Shinhan Financial's merits as a preferred
bidder.
An official confirmation, however, of the selection was pushed
to next week as the committee members requested more time to
examine the details of the deal, including sale price and date,
he said. In December, its subcommittee recommended a consortium
held by Shinhan Financial Group over another consortium led by
Cerberus Partners L.P. as the preferred bidder for Chohung.
Shinhan Financial proposed to buy the government's entire 80.04
percent stake in Chohung Bank for about 2.9 trillion won. It
offered to pay for 51 percent of the government stake in cash
and the remainder with its own stock. The government, which
wants to raise the bidding price, will continue to negotiate
with Shinhan Financial over the terms, the paper said.
Meanwhile, the committee also announced the appointment of Chon
Chol-hwan as the new chairman of the committee earlier in the
day. Mr. Chon, a former academician, headed the Bank of Korea
from 1998-2002. He is one of only five governors who completed
a full four-year term in the central bank's 52-year history, the
paper said.
HYNIX SEMICONDUCTOR: Banks, Wary of Losses, Plan to Up Provision
----------------------------------------------------------------
Lenders of Hynix Semiconductor are raising their provisions for
their exposure in the company, an apparent indication that the
restructuring chipmaker is not out of the proverbial woods yet.
According to The Korea Herald, the firm's largest lender, Korea
Exchange Bank, plans to raise in the first half of this the
current provisions for its Hynix holdings, up from the 80%
ratio.
"We need to defuse investors' concern about our loans to the
debt-ridden chipmaker," said a KEB official. The official said
the bank has about 380 billion won in debt exposure to Hynix,
after converting 720 billion won of the chipmaker's debt into
equity.
Another lender, Woori Bank, which has 400 billion won of loans
to Hynix after swapping 720 billion won debt for Hynix shares,
is also looking for ways to raise provisions to 85 percent of
the loans to Hynix, from the current 80 percent.
Chohung Bank, on the other hand, has not yet decided whether to
put aside more provisions for its debt exposure to Hynix.
Currently, it sets aside provisions for 80 percent of its
exposure to Hynix. The lender's debt exposure to the chipmaker
stands at about 370 billion won.
Hynix lenders agreed on December 30 to swap 1.9 trillion won
($1.6 billion) of debt into Hynix equity and extend Hynix'
payment on 3 trillion won in loans. Also, Hynix creditors
proposed a capital write-down plan, which need approval from
Hynix's shareholders at a meeting currently scheduled for
February.
* Banks Record 7% Rise in Credit Defaults Last Year
---------------------------------------------------
Due to the economic slowdown both in the local and global stage,
Korea has seen a burgeoning number of credit defaulters, which
is rising between 40,000 and 70,000 a month, Asia Pulse said
last week.
Citing the Korea Federation of Banks, the news agency said some
2.63 million defaulted on their credits last year, up from only
2.45 million the year before.
In all, registrations for total credit delinquencies numbered
approximately 9.62 million cases as of the end of last year, up
5.6 percent from the previous month and up an overwhelming 43.9
percent year-on-year, the report said.
"Because the government raised the standard amount for a credit
delinquency in July 1 last year, the number slid to 2.25 million
as of the mentioned date, but increased by as many as 376,000
during the past six months," Asia Pulse said.
The report did not name the biggest defaulter nor the largest
unpaid amount recorded last year.
===============
M A L A Y S I A
===============
BRIDGECON HOLDINGS: FIC OKs PNB Appeal Over Interest Condition
--------------------------------------------------------------
Further to the announcement dated 17 October 2002 regarding the
Proposed Restructuring Scheme (PRS).
On behalf of Bridgecon Holdings Berhad (Special Administrators
Appointed), Public Merchant Bank Berhad announced that the
Foreign Investment Committee (FIC) had vide its letter dated 30
December 2002 (which was received on 13 January 2003), approved
the appeal to allow Premium Nutrients Berhad (PNB) which will
assume the listing status of BHB pursuant to the PRS, to meet
the 30% Bumiputera equity interest condition within one (1) year
after the date of the listing and quotation of the PNB ordinary
shares of RM0.50 each on the Second Board of the Kuala Lumpur
Stock Exchange.
COUNTRY HEIGHTS: RAM Lowers Redeemable Bonds to D
-------------------------------------------------
Rating Agency Malaysia Berhad (RAM) has downgraded the rating of
Country Heights Holdings Berhad's RM200 million Redeemable Bonds
(Bonds) (1996/2005) from B2 to D. The B2 rating had been on
rating watch since April 2001. By early December last year, RAM
had revised the outlook to 'negative' as chances of CHHB
redeeming the first RM50 million graduated repayment due on 31
December 2002 became slimmer, given the delay in the proposed
initial public offer of up to a 49%-interest in Mines City Hotel
Sdn Bhd. CHHB had relied heavily on that exercise to raise the
requisite funds to redeem the Bonds as its internally generated
operating cash flow would not have been sufficient.
On 2 January 2003, CHHB announced that it was unable to meet the
RM50 million repayment. CHHB also announced certain remedial
measures that would be pursued during the 15-day grace period.
Based on the Company's announcement on 13 January 2003, 9 out of
the 17 bondholders (54%) had accepted Tan Sri Lee Kim Yew's
personal offer to purchase the Bonds at 88% of the face value.
Nevertheless, RAM understands that there was a delay in
convening the bondholders' meeting that had originally been
scheduled for 14 January 2003. Without obtaining the
bondholders' agreement on fresh repayment terms under a new
Supplemental Trust Deed, the default was not considered
'remedied' in accordance with the terms of the original Trust
Deed.
Prior to the default, the bondholders granted indulgence for 2
earlier extensions to the Bonds' maturity, first from 6 May 2001
to 31 December 2001 and then from 31 December 2001 to 31
December 2005. New conditions imposed following the second
extension include an annual RM50 million repayment of the Bonds
and an increase in the interest rate, from 6% per annum to 8%
per annum.
CSM CORPORATION: Unit Signs Memorandum of Understanding With SVD
----------------------------------------------------------------
Further to the announcements made on 31 December 2002 and 10
January 2003, Malaysian International Merchant Bankers Berhad
announced on behalf of the Board of Directors of CSM Corporation
Berhad that CSM and Fairdex Consolidated Sdn Bhd, the 95%
shareholder of Speedy Video Distributors Sdn Bhd (SVD) have
mutually agreed to extend the period for the signing of the
relevant conditional sale and purchase agreement for the
proposed acquisition of the 95% equity interest in SVD to 24
January 2003.
COMPANY PROFILE
The Company's activities are focused in manufacturing, trading
and distribution of food and allied products, property
management, investment and development. Formed as a wholly-owned
subsidiary of Cold Storage Holdings PLC (CSH), the Company
commenced operations in February 1974, upon completion of a
reorganization of the CSH Group in Malaysia. As part of the
reorganization the Company acquired the Malaysian assets of Cold
Storage Singapore Pte Ltd and was then converted into a public
company and listed on KLSE. Current production
capacity/production output is 236 m/t of butter per month.
Recently, the Company entered into a JV with Saujana Pertiwi Sdn
Bhd for development of mixed residential and commercial
properties on leasehold land measuring approx. 19.56 acres
located at Kelana Jaya, Selangor (Kelana Perdana Project). The
first phase, the Bayu Sutera Condominium comprising 260 units
residential apartments, was launched in December 1999.
Trading, manufacturing and property management will remain the
focus of the Group, in addition to property development that is
envisaged to improve in years to come.
Group operations are located in Kuala Lumpur, Penang, Ipoh,
Malacca, Johor, Kuantan, Sabah and Sarawak.
Following its shareholders' deficit position for financial year
ending 31 December 2000 and default with its bank lenders, the
Group is undertaking a corporate and debt restructuring
exercise, which may include the divestment of certain assets of
the Group, restructuring of the Group's borrowings and new
assets injection. The Group has appointed an independent
financial advisor and merchant banker to advise on the
restructuring proposals. The Group together with its advisors
are currently formulating a restructuring scheme to regularize
its financial conditions and address its debt obligations. The
KLSE has granted the Company a three-month extension until 25
October 2001 to make an announcement on its plan to regularize
its financial condition.
CONTACT INFORMATION: 10th Floor Jaya Shopping Center
Jalan Semangat
46100 Petaling Jaya
Tel : 03-7958 8888,
Fax : 03-7958 1289
FW INDUSTRIES: Explains Audited, Unaudited Results Variance
-----------------------------------------------------------
FW Industries Berhad, in reply to Query Letter by KLSE reference
ID: NS-030115-41102 regarding the Variance Between Audited and
Unaudited Results For The Year Ended 31 July 2002, explained
that the difference was mainly due to the audit adjustments made
by the auditors as below:
RM'000
Loss as per unaudited financial statements 4,839
(i) Reversal of retained profit from unconsolidated subsidiaries
4,786
(ii) Additional provision for doubtful debts and debts in
dispute 596
(iii) Interest on term loan now taken up 204
(iv) Taxation expenses on income of certain subsidiaries 118
(v) Audit fee under provided 25
(vi) Additional operating expenses now put through 150
(vii) Other immaterial adjustments 10
--------
Loss as per audited financial statements 10,728
========
Kuala Lumpur Stock Exchange's Query Letter content:
We refer to your Company's Annual Audited Accounts 2002 received
on 7 January 2003.
We note that the group's loss after taxation and minority
interests for the year ended 31 July 2002 amounts to
RM10,728,459.
However, your Company's announcement of unaudited results dated
30 September 2002, showed a loss after taxation and minority
interests of RM4,839,000 for the abovementioned financial year.
In accordance with the Exchange's Listing Requirements, kindly
furnish the Exchange immediately with your detailed explanation
of the above difference for public release.
Yours faithfully,
TAN YEW ENG
Senior Manager, Listing Operations
TYE/NZ
FW INDUSTRIES: KLSE Approves RA Time Extension
----------------------------------------------
With regards to FW Industries Berhad's application to the Kuala
Lumpur Stock Exchange for an extension of time to release the
Requisite Announcement, the Exchange had on 13 January 2003
approved an extension of time from 3 January 2003 to 3 February
2003 to enable the Company to announce its Requisite
Announcement to the Exchange for public release.
COMPANY PROFILE
The FW Group is involved in the manufacturing of industrial
plant and process engineering equipment and plant fabrication,
construction and related engineering works for diverse
industries. These range from resource based processing and
mining to high technology manufacturing and heavy industries
(cement, petro-chemical, power generation, oil and gas,
oleochemical, chemical and general manufacturing). The FW
factories, located at Rawang, Selangor, have a combined
production capacity and output of approx. 10,000 m/t of steel-
based industrial equipment and components per annum.
The Company is an 'affected listed issuer' under KLSE's Practice
Note 4/2001. FW has made plans to regularize and consolidate its
financial position by downsizing and cost cutting exercises and
a corporate restructuring exercise (CRE). FW has appointed
Arthur Andersen & Co and/or Southern Investment Bank Bhd as
independent advisers to formulate a corporate restructuring
plan. The Company is in preliminary stages of negotiations with
interested parties to map out terms of the CRE, which is
expected to be finalized latest by April 2002.
IDRIS HYDRAULIC: Winding Up Demands Payment of RM742,535.98
-----------------------------------------------------------
Idris Hydraulic (Malaysia) Berhad, in reference to the Query
Letter by KLSE reference ID: MM-030115-35369 on Winding Up
Petition Notice dated 15 January 2003, replied the queries
contained therein:
1. The winding-up petition is related to a demand for payment
for the sum of RM742,535.98 in respect of an owing to the Inland
Revenue in 1993 and interest cost therein to 31 January 2002,
which arose from income taxes on Sagisan Sdn Bhd's timber
operations. Sagisan Sdn Bhd has ceased operation since 1992.
2. The amount demanded of RM742,535.98 includes interest and
cost claimed of RM64,100.15 and RM225.00 respectively. The
interest rate charged is at 8% per annum.
3. The cost of investment in Sagisan Sdn Bhd in the books of
the holding company, Idris Hydraulic (Malaysia) Bhd ("IHMB") has
been written down to NIL.
4. The Company does not anticipate any operational and / or
financial impact on the Group given that Sagisan Sdn Bhd has
ceased operations since 1992
5. The financial impact of the winding-up proceedings is not
expected to be significant. The expected loss arising from the
winding-up proceedings will be the legal costs to attend the
winding-up proceedings.
Below is the KLSE's Query Letter content:
We refer to the Company's announcement dated 14 January 2003 in
respect of the above matter.
In this connection, kindly furnish the Exchange immediately with
the following additional information for public release:
The details of the default or circumstances leading to the
filing of the winding-up petition against Sagisan Sdn Bhd;
The amount of interest and cost claimed for under the petition
and the interest rate;
The total cost of investment in Sagisan Sdn Bhd;
The financial and operational impact of the winding-up
proceedings on the group;
The expected losses, if any, arising from the winding-up
proceedings;
Yours faithfully,
CHONG FUI TZY
Senior Manager, Listing Operations
WSW/HTH/MZM
c.c. Securities Commission (via fax)
KEMAYAN CORPORATION: Replies to KLSE's Writ of Summon Query
-----------------------------------------------------------
The Board of Directors of Kemayan Corporation Berhad, in reply
to Query Letter by KLSE reference ID: HY-030114-39646 on Writ of
Summon Served on Subsidiary, Kemayan Land Sdn Bhd, Kuala Lumpur
High Court Civil Suit No: S-22-1286-02, announce this additional
information:
1. Particulars of the claim including interest rate claimed if
any;
2. The details of the circumstances leading to the filing of the
Writ of Summons
The claim is in respect of advance payment of the minimum
guaranteed profit under a Profit Sharing Agreement ("PSA") dated
19 September 1995. The plaintiffs are also claiming interest at
the rate of 8% per annum on the claim of RM22.5 million.
3. The financial and operational impact of the Writ of Summons
on the ground;
4. Expected losses, if any
The solicitors are in the process of evaluating the case. As the
claim has not been adjudicated by the Court, there is no
immediate loss as at this stage except for legal fee to be
incurred in defending the claim.
Query Letter content:
We refer to your announcement dated 10 January 2003 in respect
of the above matter.
In this connection, kindly furnish the Exchange with the
following additional information for public release:
(1) Particulars of the claim including interest rate claimed if
any;
(2) The details of the circumstances leading to the filing of
the Writ of
Summons;
(3) The financial and operational impact of the Writ of Summons
on the group;
(4) Expected losses, if any.
Please furnish the Exchange with your reply within 2 market days
from the date hereof.
Yours faithfully
INDERJIT SINGH
Senior Manager
Listing Operations
WSW/THY
L&M CORPORATION: Proposed CDRS Subject to Approvals
---------------------------------------------------
Further to L & M Corporation (M) Bhd (Special Administrators
Appointed)'s announcements on 18 October 2002 and 19 November
2002, the Special Administrators of L&M namely Mr. Gan Ah Tee,
Mr. Ooi Woon Chee and Encik Mohamed Raslan bin Abdul Rahman of
KPMG Corporate Services Sdn Bhd are pleased to announce that L&M
had on 14 January 2003 received the Foreign Investment
Committee's (FIC) approval for the Proposed Corporate and Debt
Restructuring Scheme (Proposed CDRS) that was previously
announced by the Company.
The approval from the FIC for the Proposed CDRS is subject to
Itsucom Berhad (ITSB) having at least 30% direct Bumiputera
equity participation upon listing on the Kuala Lumpur Stock
Exchange (KLSE).
The Proposed CDRS is subject to the following approvals to be
obtained from:
(i) Pengurusan Danaharta Nasional Berhad and the secured
creditors of L&M, if any, on the workout proposal of L&M which
incorporates the Proposed CDRS, pursuant to the Pengurusan
Danaharta Nasional Berhad Act 1998;
(ii) the Securities Commission;
(iii) the Ministry of International Trade and Industry for
the recognition of ITSB's Bumiputera shareholding content;
(iv) the KLSE for ITSB's admission into the Second Board of
the KLSE and for the listing of and quotation for the ITSB
shares and irredeemable convertible unsecured loan stocks
(ICULS) to be issued pursuant to the Proposed CDRS and the
Proposed Transfer of Listing Status and the listing of and
quotation for the new ITSB Shares arising from the conversion of
ICULS; and
(v) any other relevant authorities/parties.
Shareholders of L&M and potential investors are requested to
refer to the announcements released by L&M on 18 October 2002
and 19 November 2002 for further information on the Proposed
CDRS.
LINGUI DEVELOPMENTS: Bondholders Allow Security Interest
--------------------------------------------------------
Lingui Developments Berhad refers to the announcement made on 20
December 2002 in relation to the Facility Agreement between
Lingui Developments Berhad's wholly-owned sub-subsidiary
company, Hikurangi Forest Farms Limited (HFF) and ANZ Investment
Bank, a division of ANZ Banking Group (New Zealand) Limited and
Certain Financial Institutions listed therein for a loan of up
to NZ$122 million (FA).
The Board of Directors of the Company announced that the
respective Bondholders of the Company's 8% 5 years and 8.5% 7
years Fixed Rate Bonds of RM150 million each had at their
respective meetings held on January 15, 2003 granted their
respective sanction to the Company to create or permit to
subsist a security interest as security in respect of the FA,
upon the whole or any part of the Company's and/or any of its
subsidiaries undertakings, assets or revenues that will in
aggregate exceed 5% of the net tangible assets value of the
Company.
Early this month, the Troubled Company Reporter - Asia Pacific
reported that the Rating Watch of A3 assigned to Lingui
Development Berhad's (Lingui) RM150 million 5-year Fixed Rate
Bonds (2001/2006) and RM150 million 7-year Fixed Rate Bonds
(2001/2008) (the Bonds) has been changed, from a negative
outlook to a developing outlook.
OLYMPIA INDUSTRIES: Issues Memorandum of Understanding Update
-------------------------------------------------------------
Reference is made to the announcement dated 18 October 2002 in
respect of the Memorandum of Understanding (MOU) between Olympia
Industries Berhad, Vinci Construction Grand Projets and
Invescor-Dumez Jaya-Woh Hup JV.
The Board of Directors of the Company wishes to announce that
apart from the transfer of 765,000 ordinary shares of RM1.00 in
Dumez Jaya Sdn Bhd to VCGP which had been effected as
consideration for VCGP to take over the existing obligations of
the Company in the Partner's Agreement and the revision of the
allocation to 35 units, there were no other material development
on the MOU.
PROMET BERHAD: Memorandum of Understanding With DISB Lapsed
-----------------------------------------------------------
Further to the announcement dated 2 January 2003, Promet Berhad
informed that the Memorandum of Understanding dated 29 November
2002 (MOU) between Promet Berhad and Damansara Indah Sdn. Bhd
lapsed on 14 January 2003 and DISB has on 15 January 2003
notified the Company of its intention not to extend the MOU.
COMPANY PROFILE
Originally in the business of building contractors and civil
engineers, the Company diversified into the property and hotel
industries in 1981.
In early 1990, after a period of rationalization, the Group re-
focused its business plans and concentrated on four core
activities: steel fabrication, marine engineering and
construction, civil engineering and construction, property
investment and development. Subsequently, it divested its
interests in the hotel industry in 1993.
The Group has since disposed of its Teluk Ramunia Fabrication
Yard and all the assets at this Yard including temporary
structures as well as machinery, operating equipment and cranes
to Ramunia Energy and Marine Corporation Sdn Bhd pursuant to two
agreements dated 21 June 2001.
The Company is currently working out a restructuring scheme to
inject suitable assets to regularize its financial condition.
CONTACT INFORMATION: 3rd Flr, Plaza Kelanamas
19, Lorong Dungun
Damansara Heights
50490 Kuala Lumpur
Tel : 03-2521919
Fax : 03-2521911
SRIWANI HOLDINGS: Vendors OK Sale, Purchase Agreements Revision
---------------------------------------------------------------
Sriwani Holdings Berhad refers to the announcement dated 30
December 2002 made by Commerce International Merchant Bankers
Berhad on behalf of SHB, stating that SHB may adhere to the
Securities Commission's conditions for approval as announced
earlier on 5 November 2002 in respect of the proposed
acquisition of Winner Prompt Sdn Bhd (WPSB) and Selasih Ekslusif
Sdn Bhd (SESB) or reduce the purchase consideration for the
proposed acquisition of WPSB and SESB to RM8.0 million and
RM12.0 million respectively, being the minimum net tangible
assets (NTA) as guaranteed by the vendors of WPSB and SESB.
On behalf of SHB, CIMB announced that SHB and the respective
vendors of WPSB and SESB have on 15 January 2003, agreed through
an exchange of letters to revise the purchase consideration
stipulated in the earlier respective Sale and Purchase
Agreements entered into in connection with the proposed
acquisition of WPSB and SESB, in the following manner:
(i) The purchase consideration for the proposed acquisition
of WPSB shall be revised from RM9.0 million to RM8.0 million,
being the minimum NTA as guaranteed by the vendors of WPSB, to
be satisfied by the issuance of new ordinary shares of RM1.00
each in SHB (SHB Shares) at an issue price of RM1.10 per SHB
Share. Accordingly, the number of SHB Shares to be issued
pursuant to the proposed acquisition of WPSB shall be revised
from 8,181,818 new SHB Shares to 7,272,727 new SHB Shares; and
(ii) The purchase consideration for the proposed acquisition
of SESB shall be revised from RM17.0 million to RM12.0 million,
being the minimum NTA as guaranteed by the vendors of SESB, to
be satisfied by the issuance of new SHB Shares at an issue price
of RM1.10 per SHB Share. Accordingly, the number of SHB Shares
to be issued pursuant to the proposed acquisition of SESB shall
be revised from 15,454,545 new SHB Shares to 10,909,091 new SHB
Shares.
The Foreign Investment Committee (FIC) has earlier on 22
November 2002 approved the Proposals as proposed, in which the
proposed acquisition of WPSB and SESB is one of the components.
The aforesaid revision shall now be subject to the approval of
the FIC.
The Proposals refers to:
* Proposed Capital Reduction and Consolidation;
* Proposed Restricted Issue;
* Proposed Rights Issue;
* Proposed Debt Restructuring Scheme;
* Proposed Assets Injection; and
* Proposed Additional Issue
TECHNO ASIA: Submits SAs' Statutory Declaration to KLSE
-------------------------------------------------------
Pursuant to PN 4/2001 in relation to paragraph 8.14 of the
Revamped Listing Requirements of the Kuala Lumpur Stock
Exchange, Techno Asia Holdings Berhad, being an affected listed
issuer wishes to announce that in compliance with the obligation
imposed under the said practice note, the monthly report for the
month of December 2002 accompanied by the statutory declaration
duly executed by the Special Administrators (SAs) had been
submitted to the KLSE on 15th January, 2003.
UCP RESOURCES: Inks Debt Settlement Agreement With Goldenseal
-------------------------------------------------------------
On 29 October 2002 and 31 December 2002, Public Merchant Bank
Berhad had on behalf of the Board of Directors of UCP Resources
Berhad, announced the financial regularization plan of UCP,
which involves, inter-alia, a proposed debt settlement to the
creditors of UCP.
PMBB, on behalf of the Board, is pleased to announce that on 15
January 2003, a debt settlement agreement has been entered into
between UCP, Goldenseal Resources Sdn Bhd (being the new company
incorporated to assume the listing status of UCP upon completion
of the Proposed Corporate and Debt Restructuring Scheme) and the
scheme creditors of UCP in agreement to the proposed debt
settlement under the Proposed Corporate and Debt Restructuring
Scheme of UCP.
The Proposed Corporate and Debt Restructuring Scheme refers to:
ú Proposed Share Exchange
ú Proposed Debt Settlement
ú Proposed Acquisitions
ú Proposed Rights Issue
ú Proposed Placement
ú Proposed Transfer of Listing
ú Proposed Liquidation
ú Proposed Exemption
ú Proposed Capitalization of NewCo Advances
ú Proposed Disposal of NewCo shares
UH DOVE: Clarifies RM100M Revenue Target Report
-----------------------------------------------
Uh Dove Holdings Bhd, in reply to the Query Letter by KLSE
reference ID: MZ-030114-61746 on article entitled, "UH Dove
targets RM100 million revenue" dated 14 January 2003 clarified
that the RM100 million revenue was an internal target set by the
Company for year 2003 based on the previous performance trends
of the newly acquired wholly owned subsidiaries of the Company
after the restructuring of the Company and it has not been
reviewed by the external auditors.
Query Letter content:
We refer to our letter dated 10 January 2003 and your reply
dated 13 January 2003.
In this connection, kindly furnish the Exchange with the
following additional information for public release:
1. The relevant basis and assumptions in arriving at the above
forecast. In this respect, you are required to confirm whether
the accounting bases, calculations and assumptions have been
reviewed by the external auditors.
Please furnish the Exchange with your reply within one (1)
market day from the date hereof.
Yours faithfully,
TAN YEW ENG
Senior Manager, Listing Operations
TYE/MZZ
UNIPHOENIX CORP.: Share Sale Agreement With Purchaser Terminated
----------------------------------------------------------------
Further to the announcement dated 19 August 2002, Uniphoenix
Corporation Berhad announced that the Share Sale Agreement dated
19 August 2002 entered into between the Company and Peninsular
Aura (M) Sdn Bhd (Purchaser) has been terminated on 15 January
2003 by mutual consent. The Share Sale Agreement was terminated
due to non-fulfilment of the conditions precedent of the earlier
Joint Venture Agreement dated 3 January 1996 entered into
between UCB, KGMMB Holdings Sdn Bhd (KHSB) and JVCO.
In this respect, a Deed of Confirmation of Termination of the
aforesaid Joint Venture Agreement was executed on 15 January
2003 between UCB, KHSB and JVCO.
Under the Deed of Confirmation of Termination, KHSB has given
its undertaking to:
(i) fully pay or cause to be paid to MBSB all monies owing by
JVCO to MBSB including the redemption sum and
(ii) procure and deliver to UCB a letter of release and
discharge issued by MBSB to unconditionally release and
discharge UCB from all obligations and liabilities under the
Corporate Guarantee dated 8 November 1996 executed by UCB in
favor of MBSB.
WING TIEK: FIC Grants Proposed CDRS Approval
--------------------------------------------
Reference is made to Wing Tiek Holdings Berhad's announcements
on 3 December 2002, 11 December 2002 and 7 January 2003 in
relation to the Proposed Corporate And Debt Restructuring Scheme
(Proposed CDRS).
The Board of Directors of Wing Tiek Holdings Berhad is pleased
to announce that the FIC has, via its letter dated 2 January
2003 received on 14 January 2003, approved the Proposed CDRS
that was previously announced by the Company as proposed.
The Proposed CDRS remains pending the receipt of the following
approvals:
(i) the MITI;
(ii) the Controller of Foreign Exchange;
(iii) the Scheme Creditors in respect of their respective
schemes of arrangement under the Proposed CDRS pursuant to
Section 176 of the Act;
(iv) the shareholders of WTHB at the Court-convened meeting
to be held pursuant to Section 176 of the Act and at the EGM to
be held;
(v) the shareholders of WTMI, WTDIP, WBH, VS and WTSP at
their respective EGMs;
(vi) the Proposed CDRS being sanctioned by the Court pursuant
to Section 176 of the Act;
(vii) the KLSE for the listing of and quotation for the
entire enlarged issued and paid-up share capital of JAKS
Resources; and
(viii) any other relevant authorities, if required.
WOO HING: Clarifies Media Report Re RM58.42M Debt Settlement
------------------------------------------------------------
Woo Hing Brothers (Malaya) Berhad (Special Administrators
Appointed) refer to the article published by the New Straits
Times on 10 January 2003 with regards to the approval of the
Securities Commission for the Proposals, wherein it was stated
that "the Kamdar Group will help WHB settle some RM58.42 million
of debts".
The Company clarified that out of the RM58.42 million of debts
to be settled, only RM32.4 million will be settled by the
vendors of the Kamdar group of companies via the Kamdar
Proposals. As stated in Part 2C of the Company's announcement
dated 6 September 2002 in relation to the Proposals, the
remaining RM26.02 million shall be settled via the proceeds from
the Proposed Sale of Watch Business and Properties, WHB's
existing cash balance as at the Cut-Off Date and the transfer of
certain properties by WHB to the Secured Creditor. Refer to
Table 1 found at http://www.bankrupt.com/misc/WooHing0120.pdf
for further details.
The Kamdar Proposals comprises of the following:
(i) Proposed Acquisition of Revenue-Based Companies;
(ii) Proposed Acquisition of Asset-Based Companies;
(iii) Proposed Share Swap;
(iv) Proposed Restricted Renounceable Offer For Sale (ROS)
Package A;
(v) Proposed ROS Package B;
(vi) Proposed Cash and Securities Transfers;
(vii) Proposed Placement by the Vendors;
(viii) Proposed Put Option Granted by the Vendors to the
Creditors of WHB;
(ix) Proposed Transfer of the Listing Status of WHB on the
Second Board of the Kuala Lumpur Stock Exchange (KLSE) to
Positive Noble Sdn Bhd (PNSB);
(x) Proposed Transfer of the Listing Status of PNCSB from the
Second Board of the KLSE to the Main Board of the KLSE; and
(xi) Proposed Disposal of 15,600,000 WHB Shares Representing
100% Equity Interest in WHB by PNSB to the Special
Administrators or a Special Purpose Vehicle Nominated by the
Special Administrators for a total cash consideration of RM1.00
=====================
P H I L I P P I N E S
=====================
ASSOCIATED WIRE: Receivership Application Junked on Technicality
----------------------------------------------------------------
For failure to submit all required documents, a Makati Trial
Court dismissed last week the application for rehabilitation of
Associated Wire Corp. of the Philippines.
BusinessWorld did not say what documents were missing, but
clarified that the company could re-file its application for
receivership as soon as all the necessary papers are complete.
The cash-strapped wires and cable manufacturer owes creditor
banks at least PHP644.13 million.
One of the country's leading exporters of wires and a recognized
pioneer in the electrical wiring harness assembly, Associated
Wire is now saddled with soaring debts aggravated primarily by
the Asian financial crisis in 1997. The company also blames the
"unstable political situation" that has resulted in a shrinking
market.
"Despite efforts designed to arrest the effects of the crisis on
its business, the management, without resorting to dacion en
pago arrangements with major creditors to reduce its debt load,
could not meet financial obligations as they fell due, and
continues to endure difficulties at present by paying existing
and current obligations," the corporation said in its
application for receivership.
Other problems and "complications," it added, affected the
company's ability to operate smoothly. It said banks squeezed
the company dry by making it pay "deficiency or residual"
assessments against its mortgaged properties. These
assessments, Associated Wire stressed, were actually in excess
of the loan principal.
For instance, as of end-1999, it said it had total liabilities
of P751.77 million on fully secured basis. It decided to sell
some of its properties to its creditor banks but the assets were
"unfairly assessed" at less than 50% of their fair market value.
The firm said it was forced to accept further liabilities on
"unsecured basis" of P231.5 million, which the banks tagged as
"deficiency judgments."
"In fact, the value of the subject properties as independently
appraised was considerably more than the amount owed to these
banks. This is on top of the fact that the imposed valuation of
the loans was already padded with compounded interest, penalties
and other extraneous charges," the firm said.
The company's banking creditors include Rizal Commercial Banking
Corp. (RCBC), which is owed PHP464.36 million as of Oct. 14,
2002; Prudential Bank, PHP107.88 million; Metropolitan Bank and
Trust Co., P40.66 million; PCI Leasing and Finance, has dollar
collectibles equivalent to PHP589,355.13 (at $1:P53) and peso
collectibles of P31.24 million; and Bank of Philippine Islands
and Far East Bank have collectibles of P45 million as of end-
1999 but this has since been restructured, BusinessWorld said.
The paper did not say when the company would re-file its
application before the sale of Makati Regional Trial Court Judge
Sixto Marella.
MANILA ELECTRIC: Predicts 2002 Earnings to be 70% Down
------------------------------------------------------
Ailing power distributor Manila Electric Company expects full
year income last year to be 65-70% lower than the previous year,
as it absorbed sluggish demand coupled by the its inability to
hike rates in 2002, Manila Bulletin reported late last week.
In an interview with the paper, Meralco senior vice president
and comptroller Daniel D. Tagaza said that while there is a 0.3-
percent growth in their sales in the fourth quarter, this was
not enough to pull up the company's earnings since expenses also
swelled during the period.
"More or less, we might maintain the level we registered in the
third quarter which is more than PHP400 million... we would be
lucky if we hit PHP500 million," he told the paper.
In year 2001, the company registered PHP1.4 billion in income.
But last year, Meralco suffered a lot of financial batterings,
including the decision of the Energy Regulatory Commission (ERC)
to stop it from collecting deferred purchased power adjustment
(PPA) charges.
The regulator has just rendered a ruling finally allowing the
distribution firm to recoup its uncollected PPA charges, but
would just initially be at PHP5.76 billion, out of the PHP7.3
billion, the paper said.
The company also suffered a major setback late last year. The
Supreme Court slapped the utility firm with a decision
disallowing the income taxes it paid to be a part of its
operating expense. This, however, would not impact yet on its
financial performance last year, since the ruling has not yet
been rendered final and executory, the paper said.
MAYNILAD WATER: Unhappy with Newly Approved Rate Hike
-----------------------------------------------------
Troubled water utility Maynilad Water Services will not rush
into implementing the PHP6.84 per cubic meter rate hike approved
by the Metropolitan Waterworks and Sewerage System, citing a
pending arbitration case before the International Chamber of
Commerce.
Benpres Holdings Corp., the parent of the Lopez-led Maynilad,
told the Philippine Stock Exchange last week that it will study
the hike and its implication to the impending arbitration
proceeding.
"Maynilad, with its legal counsel, are currently reviewing the
impact of the rate hike implementation," Benpres said in a
disclosure.
A source privy to the case told BusinessWorld that Maynilad is
carefully looking at the implications of raising rates to
PHP26.76 from the prevailing PHP19.92. Accordingly, the water
company is particularly concerned that a rate increase might
hurt its bid to have the government reimburse it for investments
on Maynilad in the last five years and damages sustained for
alleged failure of the MWSS to make the concession viable.
"It might weaken our case," the unnamed source told
BusinessWorld in an interview.
Moreover, Maynilad is wary that the MWSS approved the rebased
rates for its own benefit. Of the PHP6.84 increase, only PHP4.40
can be implemented this year, with the remainder to be charged
in the next four years.
"Maybe MWSS wants to benefit from the higher tariff, considering
it is taking over the concession soon," the source added.
Last month, Maynilad said it was willing to forego rate rebasing
if the government suspends concession payments of an average of
PHP3 billion annually. It is the only way by which Maynilad is
willing to continue servicing the west zone. The concession
agreement between Maynilad and MWSS will automatically terminate
on February 7 unless a three-member arbitration committee is
formed and suspends the contract termination.
On December 9, Maynilad returned its water concession to MWSS,
seeking the return of at least $303 million it invested. If
Maynilad decides not to implement new rates, lost revenues could
be computed as part of the amount the government could be
required to repay, the paper said.
NEGROS NAVIGATION: Refutes Rumors of Unpaid Liabilities
-------------------------------------------------------
Negros Navigation Company (Nenaco), the shipping subsidiary of
Metro Pacific Corporation, refutes erroneous and untrue claims
that appeared in The Daily Tribune and Remate newspapers.
Those newspapers quoted unnamed sources who claimed that Nenaco
was in arrears to various suppliers in excess of PHP160 million,
and doubted Nenaco's return to profitability in 2002. These
unnamed sources also claimed Nenaco is subject to pending
litigation from Pilipinas Shell for PHP100 million, and that the
company is in arrears for past drydocking services for PHP40
million.
Nenaco assures that any and all such claims are patently untrue,
and refutes every claim made in those newspapers:
(1) Pilipinas Shell, Petron and Flying V confirmed to Nenaco
management today that no litigation exists against the
company, and that their credit arrangements with Nenaco are
standard, and are nowhere near "cash-only."
(2) Nenaco does not have drydocking bills of PHP40 million, and
is also not the subject of pending litigation from shipping
firm Tsuneishi.
(3) Any claim that Nenaco's official financial reporting is less
than the highest standard in transparency is libelous. As
was reported in Nenaco's nine-month results announcement
issued last November 11, 2002, the company posted a net
profit of PHP67 million, a significant reversal from losses
posted during the same period last year. Management expects
to announce a further improvement of this achievement in
Nenaco's 2002 results announcement scheduled for late
February.
(3) Nenaco currently has mutually satisfactory payment
arrangements with its arrastre service provider, North Star
Arrastre, as well as the rest of its suppliers and business
partners in Manila and ports around the country.
(4) Management suspects that the false claims reported [on
January 16] are the products of a black propaganda effort
being undertaken by groups who oppose the significant and
positive progress Nenaco has made in the past 18 months.
Nenaco management's turnaround efforts have resulted in the
company posting sustained profits for the first time in over
five years, and have largely eliminated cases of petty graft
and corruption, which had long-plagued Nenaco and other
businesses operating out of Manila's North Harbor.
(5) Nenaco assures the public that throughout 2003 it intends to
build on its strengths as the Philippines' second largest
passenger and cargo shipper, with the support of its
creditors, business partners, suppliers and millions of
passenger customers. Management is committed to ensuring
that the company's ongoing turnaround efforts are further
extended and the Nenaco continues to increase market-share
in each of the 15 ports it serves across the Philippines.
=================
S I N G A P O R E
=================
BIL INTERNATIONAL: Ex-CFO Files Suit to Recover Unpaid Wages
------------------------------------------------------------
Briton Andrew G. Shepherd, former chief financial officer of BIL
International, has sued the investment group for cutting his
tenure, The Straits Times reported last week.
Mr. Shepherd claims he is entitled to the remaining SG$2 million
compensation in his 5-year employment contract, which was cut
short in the second year. But the Singaporean investment house
disputes the claims, adding that Mr. Shepherd is the one
indebted to the company for SG$20 million, allegedly for
breaches he committed while he was CFO.
Mr. Shepherd is now the chief financial officer of Spirit Group
Plc, according to the paper. He was a former finance director of
Dairy Farm and chief executive officer of the Wellcome
Supermarket chain in Hongkong before signing the five-year
contract with BIL in October 1999.
In the later part of 2000, at BIL's request, he entered into
regional employment contracts with two subsidiaries, Brierley
International Consultants (BIC) and BIL Strategic Limited (BSL),
for him to carry out duties outside Singapore. BIC is now known
as Brierley Management Services, the paper said.
The aim of the dual-contract arrangement was to enable
expatriate executives who divided their time between working in
Singapore and overseas to be paid their salaries from a
Singapore source as well as an overseas source. This way the
expatriates would save on taxes because their overseas income
would not be subject to taxes in Singapore, the report said.
Mr. Shepherd, who had a salary of SG$62,500 a month, began
working in Singapore in February 2000. He lost his job two years
later. He is now seeking SG$2.1 million - the 34 months' salary
he would have got had he continued working until February 2005 -
and bonus to be assessed, interest and costs, the paper said.
BIL has filed a counter-claim for SG$12.2 million in damages for
two subsidiaries defaulting on credit facilities and SG$9.5
million for causing it a loss in an investment in Molokai,
Hawaii. BIL claims Mr. Shepherd should not be paid as it found
out after terminating his services that he had taken decisions
that had damaged the company's fortunes, the paper said. It is
also alleged that he failed to produce an accurate profit and
loss account in 2001, and deliberately inflated BIL's profits to
meet his forecast.
CYBER VILLAGE: Losing Suit vs. Ericsson May Impact Finances
----------------------------------------------------------
The Directors of Cyber Village Holdings Limited wishes to
announce that one of the Group companies, Cyber Village Sdn Bhd
has on 10 October 2002 served a writ of summons on Ericsson
Business Consulting (Malaysia) Sdn Bhd ("Ericsson"), in Kuala
Lumpur, Malaysia. No defense has yet been filed by Ericsson in
this matter.
CV Malaysia's claim is based on certain provisions of a Sale &
Purchase Agreement ("the Agreement") entered into with Ericsson
on 28th August 2001 for the purchase of Ericsson's IBM Lotus e-
business software and consulting unit (the "Unit"). CV Malaysia
is seeking specific performance of the Agreement under which
Ericsson is obliged to procure payment of outstanding amounts
owing by certain debtors of the Unit.
Alternatively, CV Malaysia is claiming for damages for the sum
of RM1,034,744.00. This figure represents the amount of the
benefit, which CV Malaysia would have obtained, but for the
abovementioned breach by Ericsson.
The Directors are of the view that the abovementioned legal
proceedings may, if unsuccessful, have a negative material
impact on the Company's earnings or net tangible assets for the
current financial year. The Directors will update the
shareholders of the Company in subsequent announcements as and
when there are further significant developments in this matter.
I.R.E. CORPORATION: Says Full-year Results Worse Than Expected
--------------------------------------------------------------
The Board of Directors of I.R.E. Corporation Limited wishes to
refer to the announcement of the Company's results for the first
half year period ended June 30, 2002 made on September 27, 2002,
wherein the Directors stated in their commentary on current
year's prospects that "the directors do not expect the Group's
performance for Year 2002 to be profitable."
In anticipation of the Group's announcement of the year December
31, 2002 expected to be released by the end of March 2003, the
Directors regret to announce that the results of the second half
of 2002 would be worse than that of the first half of 2002 in
view of the intense market competition and the continued
slowdown of the construction industry in Singapore and Hong
Kong. Consequently, the directors expect a significant loss for
the year ended 2002.
===============
T H A I L A N D
===============
BANGCHAK PETROLEUM: SET Posts `H' Sign on Securities
----------------------------------------------------
Bangchak Petroleum Public Company Limited has requested the SET
to temporarily prohibit trading its securities during the second
trading session on January 16, 2003. This is due to the State
Enterprise Policy Committee has arranged the meeting this
afternoon to consider BCP's business operation problem and may
have the conclusion of BCP's financial restructuring, which may
affect the trading of BCP's securities.
Therefore the SET will post "H" sign (Trading Halt) on BCP's
securities from the second trading session of January 16, 2003
until the company discloses the information about this
resolution to the public through the SET.
EMC PUBLIC: SET Suspends Securities Trading
-------------------------------------------
Starting from 20 January 2003, the Stock Exchange of Thailand
(SET) allows the securities of EMC Public Company limited (EMC)
to be listed on the SET after the finishing capital increase
procedures. However, EMC is a listed company under REHABCO
sector, therefore, the SET has still suspended trading
all securities of EMC until the causes of delisting are
eliminated.
Name : EMC
Issued and Paid-up Capital
Old : 590,278,160 Baht
New : 592,789,770 Baht
Allocate to : Creditor 251,161 shares
(par value 10 Baht per share)
Ratio : None
Price Per Share : 10 Baht
Payment Date : 6 January 2003
SATHORN SOMBAT: Business Reorganization Petition Filed
------------------------------------------------------
Real estate developer Sathorn Sombat Company Limited (DEBTOR)'s
Petition for Business Reorganization was filed to the Central
Bankruptcy Court:
Black Case Number 1289/2545
Red Case Number- /2545
Petitioner: THAI HASAMA CORPORATION COMPANY LIMITED
Debts Owed to the Petitioning Creditor : 252,381,579.47 Baht
Date of Court Acceptance of the Petition : July 31, 2002
Date of Examining the Petition: August 26, 2002 at 9.00 A.M.
Court had issued an order cancelled the Petition for Business
Reorganization on August 26, 2002
Contact : Ms. Umaporn Tel, 6792525 ext 142
TELECOMASIA CORP.: TRIS Affirms `BBB' on Bt11,715.40M Bonds
-----------------------------------------------------------
TRIS Rating Co., Ltd. has affirmed the company rating of
TelecomAsia Corporation PLC (TA) at "BBB", the ratings of its
Bt11,715.40 million senior secured debentures at "BBB" and its
Bt6,750 million senior secured partially guaranteed debentures
at "A". At the same time, TRIS Rating has assigned a "BBB"
rating to TA's proposed up to Bt3,600 million senior secured
debentures. The ratings are underpinned by TA's leading position
in its core business as Bangkok's integrated fixed-line
telecommunications operator, its professional management team
and strong support from its principal shareholders, CP Group and
Verizon Communications Inc. (Verizon). The ratings are based on
the financial profile of TA on a stand-alone basis and its
successfully mitigating foreign exchange exposure.
However, counterweights to these strengths are TA's relatively
weak financial position, particularly its significantly high
leverage, the threat from rapid growth of mobile phones, and
still unresolved issues concerning regulations and institutions
as Thailand moves toward telecom liberalization. Given the
increasingly competitive domestic market for both incumbent
cellular and fixed-line operators, the challenge for TA is to
maintain stable growth in its fixed-line business. The credit
rating of senior secured partially guaranteed debentures is
enhanced by the partial guarantee of the International Finance
Corporation (IFC), which is a member of the World Bank Group and
is rated "AAA" by Standard & Poor's and "Aaa" by Moody's.
TRIS Rating reported that TA has proved its favorable
performance by steadily gaining significant market share. TA
successfully implemented a marketing-oriented strategy that
built strong competitiveness for it in the Bangkok Metropolitan
Area. Its strategic acquisition of Bangkok Inter Teletech Co.,
Ltd. (BITCO), which operates the 1800 MHz wireless system, TA
Orange, should benefit the company in the future; however, the
acquisition will negatively impact TA's profitability in the
short term. With strong support from its major shareholders, CP
Group, Verizon and Orange, the company is strengthening its
competitive position in both fixed-line and wireless businesses.
However, TA's huge investment in network infrastructure and the
depreciation of the baht since 1997 have left the company with a
rather weak financial status. Despite debt-restructuring and
recapitalization in 2000, TA's net debt-to-capitalization stood
at a high 87.44% that year. The debt ratio surged to 95.59% at
the end of September 2002 due mainly to huge write-offs for its
investments in FLAG Telecom Holdings Ltd. (FLAG) and for its
intelligent network system, which deteriorated its equity. TA's
operating margin (before depreciation and amortization) improved
from 44.64% in 2001 to 48.00% during the first nine months of
2002, partly because of the implemented cost control plan. In
contrast, TA reported a negative annualized pretax return on
permanent capital of 5.66% during the first nine months of 2002
due to huge realized losses in its investments. TA's cash flow
protection has improved. Its annualized funds-from operation
to total net debt* improved from 9.01% in 2001 to 12.75% at the
end of September 2002. Adjusted EBITDA interest coverage*
increased from 2.25 times in 2001 to 3.51 times at the end of
the third quarter of 2002 because of improvement of its adjusted
EBITDA.
In 2001, TA reduced its foreign exchange risk by entering into a
currency swap contract with its major secured creditor and by
refinancing with a baht loan. In October 2002, TA refinanced
about 85% of its US dollar dominated debt amounting to about
US$452 million with proceeds of baht debentures and baht
loans from the IFC. To eliminate all its existing debts of about
US$78 million, TA plans to offer another tranche of senior
secured debentures in early 2003. If all of the US dollar debts
are refinanced as planned, TA will have successfully mitigated
almost entirely its foreign currency exposure, leaving only yen
denominated debts in its debt profile. All debenture repayments
will be relatively light at the beginning of
the repayment period, which will ease TA's debt repayment burden
during that time, and increase progressively toward the middle
and the end of the period. In October 2002, TA increased its
capitalization amounting to Bt3,003 million and invested the
proceeds from the capital increase in BITCO, raising TA's
ownership from 41% to 44%. Furthermore, TA has successfully
bought back yen-denominated deferred payment notes in December
2002 remaining about 12,945 million yen in its debt profile. The
capital increase and the buy back of debts should improve TA's
capital structure, TRIS Rating 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,
Maria Vyrna Nineza-Merlin, Maria Cristina Pernites-Lao, Editors.
Copyright 2003. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers. Information
contained herein is obtained from sources believed to be
reliable, but is not guaranteed.
The TCR -- Asia Pacific subscription rate is $575 for 6 months
delivered via e-mail. Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are $25 each. For subscription
information, contact Christopher Beard at 240/629-3300.
*** End of Transmission ***