/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/030204.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, February 4, 2003, Vol. 6, No. 24 Headlines ********* A U S T R A L I A ALIQUOT ASSET: Board Files Injunction, Damage Claim vs. Critic ANACONDA NICKEL: AU$450M MatlinPetterson Offer Disputed HARRIS SCARFE: Former CFO Sued for Reckless Disregard of Duties MAYNE GROUP: Sells Six Ailing Hospitals for AU$27 Million NEW TEL: Another Director Could be Dragged into Tax Evasion Case SOUTHCORP LIMITED: CEO Resigns, Chair to Assume Post Immediately C H I N A & H O N G K O N G CHAN KWOK: Official Receiver Sets Feb. 11 Creditors Meeting GUANGDONG INTERNATIONAL: Sale of Major Asset Fails Once More KWONG SAU: Official Receiver to Host Creditors Meeting Feb. 11 LAM MAN: Official Receiver Sets Creditors Meeting on February 19 LEE YING: Creditors to Meet February 11 at Receiver's Office LI SHING: Creditors to Hold General Meeting in Two Weeks TEM FAT: Minimizes Losses, Pegs Recovery to Securities Trading TSANG KIN: General Meeting of Creditors to Take Place Feb. 19 TSE WAI: Receiver to Host Creditors Meeting Later this Month YUN SHING: General Meeting of Creditors Set J A P A N ISHIHARA PLASTIC: Plastic Manufacturer Applies For Rehab FIRST CREDIT: Court Approves Rehab Plan MITSUBISHI CABLE: Suffers FY02 Y3B Loss MITSUBISHI ELECTRIC: Returns to the Black in Q302 MITSUBISHI MOTORS: Aims to Acquire 100% Stake in Pajero NANKAI ELECTRIC: JCR Affirms BBB+/J-2 Ratings NEC CORPORATION: Launching New LCD Company NISSAN CONSTRUCTION: Court OK's Rehabilitation Plan SOGO CO.: Likely to Merge With Seibu in June K O R E A DAEWOO SECURITIES: S. Korea Pushes Ahead with Sale in 1Q03 DAEWOO SHIPBUILDING: Receives $210M Orders From European Firms M A L A Y S I A BESCORP INDUSTRIES: Units Remain in Default on RM97 MM Loan BESCORP INDUSTRIES: Acknowledges Likelihood of KLSE Delisting BRIDGECON HOLDINGS: Sale Condition Deadline Extended BUKIT KATIL: OCBC Bank Loans Settlement Negotiations Continue BUKIT KATIL: Schedules Annual General Meeting on February 27 GENERAL LUMBER: Seeks Extension on Equity Content Compliance LION GROUP: Court Approves Proposed Scheme of Arrangement SPORTMA CORPORATION: Claims Restructuring Already Underway P H I L I P P I N E S MANILA ELECTRIC: May Default on Loans, Says Treasurer MANILA ELECTRIC: Mulls Restructuring of P10B Maturing Debts PHILIPPINE LONG: Issues Cash Dividend Declaration VICTORIAS MILLING: Appoints New Officers S I N G A P O R E ASIA FOOD: Updates Debt Rescheduling NATSTEEL LTD: Appoints New Director TT INTERNATIONAL: Winding Up Subsidiary WEE POH: Directors Retire T H A I L A N D BANGCHAK PETROLEUM: Projects '03 Sales Volume to Improve by 7% TPI POLENE: CEO Sees Bankruptcy Exit After Fund Raising - - - - - - - - ================= A U S T R A L I A ================= ALIQUOT ASSET: Board Files Injunction, Damage Claim vs. Critic -------------------------------------------------------------- The top shareholders of Aliquot Asset Management have gone to the West Australian Supreme Court to settle their differences over how the Perth-based property group should be managed. In a writ filed on January 29, the company urged the High Court to gag Equitilink eLink and enjoin it from re-publishing its insinuations about how the company is being run. The company's board also sought damages, the West Australian said. In December, Equitilink, the firm's No.2 shareholder, informed fellow investors that it intends to unseat all three of the company's directors, claiming they must be held accountable for what it described as "staggering" losses and out of control spending. Equitilink claims that more than AU$1.2 million had been paid to the directors -- Michael Perrott, Peter Huston and Antony Rigoll -- and their associated entities during 2002, and warned the future of the company was uncertain if those levels of spending continued. It also warned fellow investors that the company could become insolvent soon. According to the paper, a shareholders meeting called for by Equitilink is scheduled on February 18. Equitilink has not denied its intension of nominating its own directors and one independent candidate backed by the Australian Shareholders' Association. In its Supreme Court writ, Aliquot claimed that Equitilink's letter to shareholders in December, containing deceptive accusations, has tarnished the company's name: "By reason of the publication (of the statement) and the defendant's misleading and deceptive conduct, the plaintiff has suffered and will continue to suffer loss and damage." It added the action caused damage to its "goodwill and commercial reputation." The company seeks damages and costs as well as an injunction preventing Equitilink from re-publishing its claims about the company. Equitilink Chairman Paul Crowther, for his part, called the action an inappropriate use of the court system to try to silence criticism: "(The writ is) a pathetic attempt to head off genuine concerns being raised and prevent open and informed debate." ANACONDA NICKEL: AU$450M MatlinPetterson Offer Disputed ------------------------------------------------------- Independent directors of Anaconda Nickel urged shareholders yesterday to reject an offer by U.S.-based MatlinPatterson Global Opportunities Partners for their shares and entitlements, Shaw Online says. The directors claim MP's offer was highly conditional. Anaconda CEO Peter Johnston disputes this, however, claiming that the conditions in the offer only amounted to a request for "inside knowledge" of the company's workings. Anaconda founder and 8% shareholder Andrew Forrest, who has backed MP's bid, described the independent directors' reaction as "entirely expected" and "a continuation of some members of the board's sympathetic views towards its largest shareholder." Glencore International, one of the company's major shareholders, is currently underwriting a AU$323 million, 14-for-1 rights issue needed for Anaconda to re-capitalize and repay U.S. bondholders. The arrangement could potentially raise Glencore's stake in the nickel laterite miner to as high as 95.6% from 33.8% if an expected large shortfall eventuates. MP's offer, made late last month, is worth AU$450 million. In a statement yesterday morning, Anaconda said negotiations with MP were still continuing and that it was possible the initial recommendation to reject the rights offer may change. In a separate statement, the Takeovers Panel said it had consented to MP withdrawing an application concerning Glencore acquiring rights under the present rights offer. Glencore and MP have given undertakings to each other and the panel not to acquire the rights other than under a general offer. HARRIS SCARFE: Former CFO Sued for Reckless Disregard of Duties --------------------------------------------------------------- Daniel Francis McLaughlin was committed yesterday for trial in relation to 17 charges arising from the Australian Securities and Investments Commission's (ASIC) investigation into the Harris Scarfe group. The charges have been laid by ASIC and are being prosecuted by the Commonwealth Director of Public Prosecutions. Mr. McLaughlin, of Happy Valley, Adelaide, faces seven counts of failing to act honestly in the exercise of his powers and the discharge of his duties as an officer of Harris Scarfe Limited, and ten counts of being reckless as an officer of Harris Scarfe Limited and failing to exercise his powers and discharge his duties in good faith in the best interests of the company. Mr. McLaughlin pleaded not guilty to all 17 counts on 13 December 2002. Mr. McLaughlin was the Chief Operating Officer of Harris Scarfe Holdings Limited (Receiver and Managers appointed) (In Liquidation) and a director of Harris Scarfe Limited (Receivers and Managers appointed) (In Liquidation). Mr. McLaughlin was remanded on continuing bail to appear in the District Court in Adelaide on 3 March 2003. ASIC's investigation into Harris Scarfe is continuing and no further comment will be made at this time. MAYNE GROUP: Sells Six Ailing Hospitals for AU$27 Million --------------------------------------------------------- In a move that will impact its first half results heavily, hospital operator, Mayne Group, announced yesterday the sale of six loss-making hospitals to Healthscope Limited for AU$27.5 million. According to Shaw Online, the sale will result in a net write- down of AU$90 million, which will drag down first half results into the red. A SHAW Stockbroking's industrial analyst, Brent Mitchell, said he had forecasted a first half net profit of around AU$70 million before yesterday's announcement. "While losses were expected on the sale of the 6 hospitals, as these were incurring significant losses, the size of the other write-downs are surprising," he told Shaw Online. "While these will help the profit position in the second half and future years, these are will further negatively impact investor sentiment." The six hospitals are Hobart Private, St Helen's Private, Mersey Community Hospital, National Capital Private, Geelong Private and Mosman Private. All of them are sold as going concerns with the transaction to be completed in the next 2-3 months, the report said. "At Mayne these hospitals had considerable structural constraints to performing and they would have required a disproportionate share of management time to cover their cost of capital," Mayne CEO Stuart James said in a statement. Mayne will take an after-tax writedown of AU$23 million on the hospitals, which Mr. James said had consistently contributed a negative EBITDA. "In additional an asset review across the remaining hospital portfolio indicates that an additional net after tax write-down of approximately AU$53 million will be made," Mr. James said in the company's disclosure to the Australian Stock Exchange. In addition to write-offs related to the hospitals, Mayne also unveiled a range of write-downs on other assets including: AU$13 million on the closure of its consumer sunscreens business; a AU$17 million write-down of its SAP software assets; and AU$7 million in costs associated with returning to a less centralized group structure. Offsetting this is a AU$22 million net gain from the break-up and sale of its logistics business. The hospital operator also said it was in advanced negotiations to sell Sunbury Private Hospital and expected to finalize the negotiations in the next month, Shaw Online said. NEW TEL: Another Director Could be Dragged into Tax Evasion Case ---------------------------------------------------------------- A former CEO of Deloitte Touch Tohmatsu could be included in the suit against former executives of New Tel, the telecom firm that fell into liquidation last month, The Advertiser said yesterday. Domenic Martino, who stepped down as CEO of Deloitte last month, has claimed that the telecom concern was still in fine shape when he left it in early 2002. A suit by the Australian Taxation Office, however, claims that New Tel was already in trouble between May 1 and June 30, 2002, or just five weeks after Mr. Martino resigned as director. The suit, which names New Tel Chairman Harry Sorensen and Chief Executive Peter Malone as plaintiffs, is seeking the recovery of AU$571,000 in unpaid taxes. The case is pending before the West Australia Supreme Court, says The Advertiser. Only the two have been named in the suit because they were the only Australian directors when the taxes were withheld. It is unclear why the ATO has only nominated May and June for its action, rather than later months when the cash crisis engulfing New Tel worsened, says the paper. There is speculation New Tel came to some agreement with the ATO to pay off the tax for those months but was ultimately unable to meet its obligations for May and June. PricewaterhouseCoopers, New Tel's liquidator, has said previously that the company could have been insolvent for up to 12 months before it collapsed in December, a period that includes Mr. Martino's time at New Tel as a director and, if true, could mean he faces criminal charges along with other New Tel directors, the paper said. SOUTHCORP LIMITED: CEO Resigns, Chair to Assume Post Immediately ---------------------------------------------------------------- The Board of Southcorp announced yesterday that it has requested and received the resignation of Keith Lambert, Director and Chief Executive Officer, effective immediately. Brian Finn, Chairman of Southcorp, will assume the role of Executive Chairman until a successor is appointed. Mr. Finn said Keith Lambert led the Company successfully through the integration with Rosemount, transforming Southcorp from a diversified industrial business into a leading international premium wine company. With that transformation complete and having regard to recent financial performance, the Board believes that different leadership attributes and business experiences are required to take the company forward. The Company has started the process of securing a replacement for Mr. Lambert. "The Board is committed to the strategy of enhancing Southcorp's leadership as a premium wine company. Following the review of the half-year and full-year earnings outlook, the Board has directed management to focus on improving business performance through better product mix, lower operational costs and more effective promotional spending. These will be the priorities during the transition to a new Chief Executive and the senior management has begun to implement them," Mr. Finn said. "The Board is grateful for the important contribution that Keith Lambert has made to our business and we wish him well in his future endeavors." "Southcorp has the quality of assets, through its globally recognized brands, its Australian viticultural assets, its people and its strength of distribution, to achieve the performance associated with a premium wine company," Mr. Finn said. For further information: Dr Robert Porter GENERAL MANAGER, INVESTOR RELATIONS & CORPORATE AFFAIRS Telephone: 02 94651154 Mobile: 0407 391829 Facsimile: 02 94651181 Web site: http://www.southcorp.com.au ================================ C H I N A & H O N G K O N G ================================ CHAN KWOK: Official Receiver Sets Feb. 11 Creditors Meeting ----------------------------------------------------------- Creditors of Chan Kwok Yee Margaret will have a general meeting on February 11, 2003 at 2:15 in the afternoon. E T O'Connell will host the meeting at his office on the 10th Floor, Queensway Government Offices, 66 Queensway, Hong Kong. GUANGDONG INTERNATIONAL: Sale of Major Asset Fails Once More ------------------------------------------------------------ A consortium that won the bid for Guangdong International Mansion, has failed to fully pay the down payment for the 63- story hotel, prompting the liquidators of the parent company to forfeit the initial 50 million yuan, The Standard says. The hotel, a Guangzhou landmark, is the showpiece asset of Guangdong International Trust and Investment Corp, which is under liquidation. The failure to meet the down payment by the consortium -- identified only as a joint venture with rich experience in hotel management -- represents the third time liquidators have failed to sell the asset. The hotel was auctioned in November last year, after two previous biddings failed to attract takers. Under the agreement with the winning bidder, the balance of the down payment of almost 300 million yuan was supposed to be paid three months after the auction date or January 18. The hotel fetched 1.13 billion yuan in November, says The Standard. In December 2001, liquidators attached a 1.6 billion yuan price tag on the asset, but were forced to lower it to 1.3 billion yuan during a second auction in January 2002 after investors balked at the price. Liquidators eventually lowered the winning bid to 1.13 billion in November after it was clear nobody was willing to take up the hotel, whose value is estimated to be 2 billion yuan. Under the contract, the liquidators would only formally sign an agreement to transfer the property to the buyer on receiving the full down payment and a guarantee letter underwritten by a bank for payment of the balance within a specified time. According to the contract signed on November 18, liquidators have the right to auction the property again if the buyer breaches the contract. The deposit paid by the buyer would also be confiscated. Located on Guangzhou's busy Huangshi Donglu, the hotel was built by Guangdong International Trust and Investment Corp, the major financial arm of Guangdong provincial government, before it went bankrupt in November 1998, after it failed to repay a mountain of debt, The Standard says. Meanwhile, according to the paper, at least two of the four auctioneers that organized the auction in November have yet to receive the agreed commission from the buyer. KWONG SAU: Official Receiver to Host Creditors Meeting Feb. 11 -------------------------------------------------------------- Creditors of Kwong Sau Ngor will hold a general meeting on February 11, 2003 at 10:00 in the morning, according to official receiver E T O'Connell. The meeting will be held at the official receiver's office on the 10th floor, Queensway Government Offices, 66 Queensway, Hong Kong. LAM MAN: Official Receiver Sets Creditors Meeting on February 19 ---------------------------------------------------------------- E T O'Connell, the official receiver of Lam Man Yin Eva, announces that there will be a general meeting of creditors on February 19, 2003 at 10:00 in the morning. The meeting will take place at the official receiver's office on the 10th floor, Queensway Government Offices, 66 Queensway, Hong Kong. LEE YING: Creditors to Meet February 11 at Receiver's Office ------------------------------------------------------------ E T O'Connell, the official receiver of Lee Ying Wah, has set the general meeting of creditors for February 11, 2003 at 10:30 in the morning. The meeting will take place on the 10th Floor, Queensway Government Offices, 66 Queensway, Hong Kong. LI SHING: Creditors to Hold General Meeting in Two Weeks -------------------------------------------------------- E T O'Connell, the official receiver of Li Shing, announces there will be a General Meeting of Creditors on February 19, 2003 at 3:00 in the afternoon. The meeting will be held at the official receiver's office on the 10th floor, Queensway Government Offices, 66 Queensway, Hong Kong. TEM FAT: Minimizes Losses, Pegs Recovery to Securities Trading -------------------------------------------------------------- Property investment company, Tem Fat Hing Fung, which almost collapsed early last year, reported improved financial results for the six months to end of October, The Standard said yesterday. The earnings update, which the company released just recently, will likely earn the company a penalty from the Hong Kong stock exchange for being late. It shows a net loss of HK$54.08 million or 48.26% less than the previous guidance. According to the company, turnover slumped 60.4% to HK$4.32 million for the half as revenue from property and corporate investments dived. Operating loss, however, was slashed by 66.5% to HK$20.79 million, due to lower administrative expenses and as the company incurred no provisions in the period, compared with a HK$48 million loss provision take out on its short term listed investments in the year ago period. Administrative expenses fell to HK$20.17 million from HK$69.51 million. No interim dividend was declared, The Standard said. Executive director and controlling shareholder Jenkin Cheung said the company plans to focus on the trading of listed securities and provision of management services in the short term. Mr. Cheung, also chairman of China Development Corporation, was the white knight who injected HK$77.6 million cash into Tem Fat Hing Fung in April of last year, preventing the company from being wound up by creditors, the report said. Net liabilities stood at HK$869.9 million at the end of October but it reported a deficiency in assets of HK$787.6 million. Mr. Cheung says the company expected a net asset value of HK$7.2 million in December, the month the company was expected to complete its restructuring. "The group has arranged a trading credit facility to revive its securities trading business, and the board expects that its securities trading activity can be resumed to a satisfactory level in a relatively short time by utilizing part of the proceeds from the restructuring," Mr. Cheung said. Tem Fat Hing Fung had total financial borrowings of about HK$587.9 million at the end of October, made up of short-term bank borrowings and an overdraft of about HK$111.8 million, unsecured promissory notes of about HK$357.2 million and other secured borrowings of HK$118.9 million, the paper said. Meanwhile, the company is expected to incur a penalty for releasing its financial report late. It also expects the stock exchange to level a separate fine for breaching its listing rules due to Mr. Cheung's sale of a stake to an independent investor, Smartgood Investments, in December or a month before the board approved the interim results. TSANG KIN: General Meeting of Creditors to Take Place Feb. 19 ------------------------------------------------------------- E T O'Connell, the official receiver of Tsang Kin Chung Ridgeley, has set the general meeting of creditors on February 19, 2003 at 10:30 in the morning. The meeting will take place at his office on the 10th Floor, Queensway Government Offices, 66 Queensway, Hong Kong. TSE WAI: Receiver to Host Creditors Meeting Later this Month ------------------------------------------------------------ Creditors of Tse Wai Yin are set to meet on February 19, 2003 at 10:30 in the morning, according to official receiver E T O'Connell. The meeting will take place at his office on the 10th Floor, Queensway Government Offices, 66 Queensway, Hong Kong. YUN SHING: General Meeting of Creditors Set ------------------------------------------- Creditors of Yun Shing Fai will have a general meeting on February 12, 2003 at 10:30 in the morning, according to official receiver E T O'Connell. The meeting will be held at the official receiver's office on the 10th floor, Queensway Government Offices, 66 Queensway, Hong Kong. ========= J A P A N ========= ISHIHARA PLASTIC: Plastic Manufacturer Applies For Rehab -------------------------------------------------------- Ishihara Plastic Kogyo KK, which has total liabilities of 8.6 billion yen against a capital of 50 million yen, recently applied for civil rehabilitation proceedings, according to Tokyo Shoko Research. The plastic material manufacturer is located at Nitta-gun, Gunma, Japan. FIRST CREDIT: Court Approves Rehab Plan --------------------------------------- The Tokyo District Court has approved the rehabilitation plan of First Credit Corporation, featuring financial aid from U.S. investment fund, Lone Star group, Kyodo News said on Friday. The Tokyo District Court gave the green light to the plan based on the Corporate Rehabilitation Law, which stipulates First Credit make a lump repayment for 65 percent of its debts on the strength of loans or capital injection from the U.S. firm. MITSUBISHI CABLE: Suffers FY02 Y3B Loss --------------------------------------- Mitsubishi Cable Industries Limited expects an extraordinary loss of 3 billion yen in the fiscal year ending in March 31 to cover the cost of job cut programs, Kyodo News reports. The electrical wire and cable maker has paid more than 11.5 billion yen in dismissal allowances when it transferred 302 of its employees to units as of January 1 and cut 298 jobs under an early retirement plan implemented in 2002. MITSUBISHI ELECTRIC: Returns to the Black in Q302 ------------------------------------------------- Mitsubishi Electric Corporation posted a profit of 1.1 billion yen in the third quarter of last year, versus a loss of 38.4 billion yen, Channel News Asia said on Monday. The chipmaker recorded hefty losses in 2002 as the IT slump and heated global competition ate into earnings, especially in semiconductors and telecom equipment. MITSUBISHI MOTORS: Aims to Acquire 100% Stake in Pajero ------------------------------------------------------- Mitsubishi Motors Corporation (MMC) announced plans to make Pajero Manufacturing Co. Ltd. (PMC) a wholly owned subsidiary via an equity swap set for March 20, 2003. MMC currently holds a 66.6 percent stake in PMC. To see the transaction through, MMC will issue about 3.8 million common shares, which represents 0.3 percent of its outstanding shares. "Pajero Manufacturing is an important member of the Mitsubishi Motors group. By making it a wholly owned subsidiary, we will be able to integrate functions to further streamline operations and improve product quality," said MMC President and CEO Rolf Eckrodt. PMC is responsible for assembling sports utility vehicles, one of MMC's main product segments. In 2002, capacity utilization at PMC reached 130 percent and it produced a record 170,000 vehicles, driven mainly by strong demand from overseas markets. MMC's 2002 overseas sales increased to 1.2 million units, up more than 4 percent on 2001. The move marks the latest step in MMC's drive to focus on its core businesses as part of its ongoing Turnaround. With PMC as a wholly owned subsidiary, MMC will achieve even greater competitiveness in terms of quality and cost while continuing to produce spirited products for spirited people. Outline of Pajero Manufacturing Co., Ltd. Business Area: Automobile manufacturing Models Produced: Pajero, Pajero Sport/Montero Sport (export model), Jeep Established: 1943 Paid-in Capital: 610 million yen Head Office: Gifu, Japan Employees: Approx. 1,200 Mitsubishi Motors Corporation www.mitsubishi-motors.co.jp was established in 1970 and is one of the few automobile companies in the world that produces a full line of automotive products ranging from 660-cc mini cars and passenger cars to commercial vehicles and heavy-duty trucks and buses. The Company also operates consumer-financing services and provides this to its customer base. Automobile operations accounted for 98 percent of fiscal 2000 revenues and financing business, 2 percent. The Company has one hundred and eighty nine consolidated subsidiaries worldwide. Overseas sales accounted for 56.8 percent of fiscal 2000 revenues. Mitsubishi Heavy Industries, Ltd. is the major shareholder with 25.62 percent of issued stock. According to the Troubled Company Reporter-Asia Pacific, Mitsubishi Motors Corporation (MMC) plans to turn the domestic passenger car business into the black while maintaining the current earnings level for North American business under the turnaround-restructuring plan. Japan Credit Rating Agency has been pointing out that it is highly probable the turning of the domestic car operation into the black would be delayed, considering it is difficult to bring back customers who left MMC due to the recall scandal in such a short period of time. The cost reductions such as cutback in jobs and reduction in materials cost have been going well as scheduled. However, it is estimated that MMC would fall behind around 2 years in turning of the domestic passenger car business (excluding exports) into the black for fiscal 2003. Introduction of new cars into the domestic market will be made on a full scale in and after fiscal 2005, accordingly. During this time, MMC needs to reduce the burden of loss via rehabilitation of marketing system and additional models in an urgent manner. Contact: Mitsubishi Motors Corporation Fumio Nishizaki f-nishizaki@mitsubishi-motors.co.jp +81-3-5232-7342 NANKAI ELECTRIC: JCR Affirms BBB+/J-2 Ratings --------------------------------------------- Japan Credit Rating Agency (JCR) has affirmed the preliminary BBB+ and J-2 ratings of Nankai Electric Railway C. Limited on the following shelf registration, bonds and CP program, respectively. Shelf Registration Maximum: Y50 billion Valid: two years from February 13, 2001 Issues Amount (bn) Issue Date Due Date Coupon bonds no.18 Y10 / Aug. 10, 1998 / Aug. 8, 2008 / 2.70% bonds no.19 Y10 / Mar. 12, 1999 / Mar. 12, 2004 / 2.45% bonds no.20 Y10 / Feb. 10, 2000 / Feb. 10, 2010 / 2.35% bonds no.21 Y10 / Aug. 10, 2000 / Aug. 10, 2010 / 2.55% bonds no.22 Y10 / Aug. 10, 2000 / Aug. 10, 2006 / 1.83% bonds no.23 Y20 / Apr. 12, 2001 / Apr. 12, 2005 / 1.00% bonds no.24 Y20 / Oct. 17, 2002 / Oct. 17, 2006 / 1.80% CP Maximum: Y20 billion Backup Line: 0 percent RATIONALE: Nankai Electric Railway is a major railway operator, covering south Osaka and northern part of Wakayama. It incurred a net loss of 55.1 billion yen for fiscal 2001 ended March 31, 2002, writing off, making provisions for the investments and taking one-time charge for unfunded pension obligations. It has been gathering pace of the restructuring measures. Nankai Electric has already implemented cut in jobs as planned. Liquidation of unprofitable affiliates is beginning to pay off. JCR will continue to watch improvement in the periodic earnings and reduction in the interest- bearing debt. The first opening of the redevelopment project, Namba Parks, is scheduled for October 2003. The main tenant, JRA, has already begun sales. While commercial tenant attraction has been going well, negotiations on rents with office tenants are being carried on. Changes in the investment amount and the opening schedules have been made for the original 100 billion project. Although it is difficult for Nankai Electric to reduce the large interest-bearing debt in the foreseeable future, given the burden of cost for redevelopment project, the financial standing will not deteriorate further, supported by improvement in earnings of each of the businesses and introduction of cash management system. JCR considers it necessary to continue to watch carefully the hotel business, however. According to Wright Investor's Service, at the end of 2002, Nankai Electric Railway Co Ltd had negative working capital, as current liabilities were 308.59 billion yen while total current assets were only 190.04 billion yen. NEC CORPORATION: Launching New LCD Company ------------------------------------------ NEC Corporation (NEC) on Thursday resolved at its Board of Directors meeting to establish a new liquid crystal display (LCD) Company called NEC LCD Technologies, Ltd. as part of its business reorganization plan (announced in May 2002) that centered on separating each of the businesses of NEC Electron Devices. Kazuo Okuno, Associate Senior Vice President at NEC Corporation has been appointed President of the new Company. Mr. Okuno, who brings with him proven leadership from his former position as President of NEC Kansai, Ltd., is expected to continue to implement strong management reforms that will strengthen and promote NEC LCD Technologies, Ltd.'s capabilities and expertise in providing industry-leading color LCD technologies and products. NEC LCD Technologies, Ltd. will develop, design, manufacture and sell color LCDs and target the industrial market by providing value-added, specialized customization for display products. The Company will focus its business model to concentrate on the development of ultra-wide viewing angle technologies and high- resolution display modules that are in demand for high-end monitors. The streamlined management team and Company structure will ensure rapid decision-making and provide a flexible base to adapt quickly to changes in market conditions. In addition to the establishment of the new Company, NEC continues its worldwide sales and distribution of LCD products. NEC Electronics America, Inc. is the main sales supplier of NEC active-matrix LCD and PDP modules in North America, and NEC Electronics (Europe) GmbH markets and sells NEC thin film transistor (TFT) active-matrix LCD and PDP modules in Europe. NEC Corporation www.nec.com is one of the world's leading providers of Internet, broadband network and enterprise business solutions dedicated to meeting the specialized needs of its diverse and global base of customers. Ranked as one of the world's top patent-producing companies, NEC delivers tailored solutions in the key fields of computer, networking and electron devices, through its three market-focused, in-house companies: NEC Solutions, NEC Networks and NEC Electron Devices. NEC Corporation employs more than 140,000 people worldwide and had net sales of approximately $39 billion in the fiscal year ended March 2002. NEC Corporation narrowed its losses to 4.5 billion (US$38 million) for the October-December period but lowered its sales forecast for this year due to doubts about a U.S. economic recovery, TCRAP reports. NEC was able to reduce its losses despite lower sales because of cost cutting exercises. Its chip sector lost 300 million yen ($2.5 million) in the quarter, but that was an improvement of 55 billion yen from last year. Contact: Daniel Mathieson NEC Corporation +81-3-3798-6511 d-mathieson@bu.jp.nec.com NISSAN CONSTRUCTION: Court OK's Rehabilitation Plan --------------------------------------------------- The Tokyo District has approved the rehabilitation plan of Nissan Construction Co. featuring its merger with Rinkai Construction Co., according to Kyodo News. The Company will merge with Rinkai in July to create Nissan Rinkai Construction Co. 1. Outline of Nissan Construction Co. (1) Address 2-6, Minami-Aoyama 1-chome, Minato-ku, Tokyo (2) Assignee Mr. Katsumi Nasu, Mr. Shigeo Kasahara (3) Capital JPY 10,267 million 2. Details of Relevant Developments March 30, 2002 The Company filed for commencement of corporate reorganization procedure with the Tokyo District Court. April 24, 2002 Commencement of corporate reorganization procedure was decided. January 30, 2003 the reorganization plan was approved in the creditors' meeting. 3. Claims to be waived by Mizuho Corporate Bank, Ltd. Subject to the approval by Tokyo District Court, Mizuho Corporate Bank, Ltd. will release the Company from its debts in the amount of 31.7 billion yen. 4. Effect of this Development on Profit/Loss of Mizuho Holdings, Inc. SOGO CO.: Likely to Merge With Seibu in June -------------------------------------------- Sogo Co. is planning to merge its operations with Seibu Department Limited possibly in June, Japan Times reports, citing Sogo President Shigeaki Wada. Sogo filed for bankruptcy with staggering debts of 1.87 trillion yen in July 2000 and was given court approval to emerge from rehabilitation. The companies have been involved in a wide-ranging operational alliance since 2002. Wada, the former President of Seibu Department Stores, was invited to steer the bankrupt Sogo out of its difficulties. Seibu is currently seeking a 230 billion yen bailout from main creditors as it strives to extricate itself from massive losses incurred by its group companies. ========= K O R E A ========= DAEWOO SECURITIES: S. Korea Pushes Ahead with Sale in 1Q03 ---------------------------------------------------------- The South Korean government pushes ahead with the sale of Daewoo Securities Co. in the first half of this year after earlier attempts failed to bear fruit, Reuters reports. According to analysts, chances of a sale remained slim because of a lack of buying interest and falling stock prices. The former unit of bankrupt Daewoo Group has been up for sale since 1999, but the first sale attempt collapsed, forcing state- run Korea Development Bank (KDB) to rescue and take control of one of the country's four largest brokerages in May 2000. KDB is trying to sell the controlling stake as part of the government's privatization drive. DAEWOO SHIPBUILDING: Receives $210M Orders From European Firms -------------------------------------------------------------- Daewoo Shipbuilding & Marine Engineering Co. received $210 million worth of orders from Spain and Italy, to build a very large crude oil carrier (VLCC) and three oil tankers, Dow Jones said on Monday. Spain's crude oil carrier Company Naviera F. Tapias, S.A. ordered two 159,000 ton oil tankers, and Italy's Navigation Montanari S.P.A. ordered a 159,000 ton oil tanker. The oil tankers will be delivered until end-2005, Daewoo Shipbuilding said. According to Wright Investor's Service, at the end of 2001, Daewoo Shipbuilding & Marine Engineering had negative working capital, as current liabilities were 1.99 trillion Korean Won while total current assets were only 1.30 trillion Korean Won. =============== M A L A Y S I A =============== BESCORP INDUSTRIES: Units Remain in Default on RM97 MM Loan ----------------------------------------------------------- As required by the Kuala Lumpur Stock Exchange Practice Note 1/2001, Bescorp Industries Bhd hereby provides an update on its default in payment, as noted in Appendix A, which may be viewed through this link http://announcements.klse.com.my/EDMS/edmsweb.nsf/ba387758ae3741 2b482568a300466fb6/482568bb00440ef548256cbe003521c2/$FILE/Copy%2 0of%20loan2002-12.xls The default by BIB as at 31 December 2002 amounted to RM54,517,709.34 made up of a principal sum of RM32,220,139.42 plus RM22,297,569.92 in interest for revolving credit facilities. As at 31 December 2002, the remaining subsidiary companies of BIB, namely Bescorp Construction Sdn. Bhd, (In Liquidation), Bescorp Piling Sdn. Bhd. (In Liquidation), Bescorp Concrete Sdn. Bhd. (In Liquidation), Bespile Sdn. Bhd. (In Liquidation), Farlil Sdn. Bhd. (In Liquidation) and Waktu Cerah Sdn. Bhd. defaulted on a total sum of RM97,304,596.09 made up of a principal sum of RM60,905,258.44 plus RM36,399,337.65 in interest for revolving credit facilities, term loan, banker's acceptance, hire purchase and lease facilities, and RM57,905,801.61 for overdraft facilities. There were no further developments since our previous announcement with regard to this Practice Note. BESCORP INDUSTRIES: Acknowledges Likelihood of KLSE Delisting ------------------------------------------------------------- Reference is made to paragraph 4.1(b) of the Practice Note 4/2001 of the Kuala Lumpur Stock Exchange ("the Exchange") Listing Requirements whereby the affected listed issuer is required to announce the status of its plan to regularize its financial condition on a monthly basis until further notice from the Exchange. Further to the announcement on 2 January 2003, the Special Administrators of BIB ("SA") wish to inform that on 3 January 2003, the Kuala Lumpur Stock Exchange ("KLSE") had rejected the Company's application for an extension of time to comply with the obligation set out in paragraph 5.1 of Practice Note 4/2001. On 6 January 2003, the KLSE informed the Company that it will await the outcome of the Company's application made on 27 December 2002 to the relevant authorities for its proposed restructuring scheme, before commencing de-listing procedures against the Company, but without prejudice to the KLSE's right to commence de-listing procedures against the Company in the event any of its application is not approved by the regulatory authorities. BRIDGECON HOLDINGS: Sale Condition Deadline Extended ----------------------------------------------------- We refer to the announcement dated 15 August 2002 wherein Public Merchant Bank Berhad announced on behalf of BHB that Premium Nutrients Berhad ("PNB") had entered into a conditional share sale agreement ("SSA") with the vendors of Premium Vegetable Oils Berhad ("PVOB Vendors") to acquire 100% equity interest comprising 54,862,500 ordinary shares of RM1.00 each in PVOB for RM136,500,000. In relation to the above, PNB and the PVOB Vendors had on 29 January 2003 mutually agreed in writing to extend the deadline for the fulfillment of all conditions precedent to the SSA, being the date falling six (6) months from the date of the SSA, i.e. 12 February 2003, for another two (2) months expiring on 12 April 2003. BUKIT KATIL: OCBC Bank Loans Settlement Negotiations Continue ------------------------------------------------------------- Further to our announcements made on 29 November 2002 (Reference No. CS-021129-CC103) and 30 December 2002 (Reference No. CS- 021230-616C3), the Board of Directors of Bukit Katil Resources Berhad wish to inform that negotiations are on-going with OCBC Bank (Malaysia) Berhad to amicably settle the outstanding sum and that the company hope to resolve the matter as soon as possible. The Board of Directors of BKRB would like to further provide an update on the details of all facilities currently in default in compliance with Section 3.1 of Practice Note 1/2001. Borrowings in Default as at 31st December 2002. Name Lender Type Amount Amount Amount of of Interest/ Principal Total Borrower Facility Others -------- ------ -------- --------- --------- ------ Omega OCBC Term 1 496,034 3.2 MM 3.7 MM Bricks Sdn Bank Term 2 54,574 .39 MM .41 MM Bhd (wholly (Malaysia) Term 3 65,382 .43 MM .49 MM owned Term 4 30,104 .19 MM .22 MM subsidiary Overdraft 86,078 .60 MM .68 MM of BKRB) BUKIT KATIL: Schedules Annual General Meeting on February 27 ------------------------------------------------------------ Bukit Katil Resources Berhad wishes to inform that the Eighty- Eighth Annual General Meeting of the company is scheduled to be held on Thursday, 27 February 2003 at 9.00 a.m. at the East VIP Lounge, Kuala Lumpur Golf & Country Club, No. 10, Jalan 1/70D, Off Jalan Bukit Kiara, 60000 Kuala Lumpur. A copy of the agenda may be viewed through this link http://announcements.klse.com.my/ GENERAL LUMBER: Seeks Extension on Equity Content Compliance ------------------------------------------------------------ Further to the announcement of General Lumber Fabricators & Builders Bhd dated 17 January 2003, PM Securities Sdn Bhd ("PM Securities"), on behalf of the Company wishes to announce that an application has been submitted to the Foreign Investment Committee ("FIC") on 30 January 2003 to seek an extension of time for a period of five (5) years after the listing of Maxtral Industry Berhad ("MIB") on the Kuala Lumpur Stock Exchange ("KLSE") for MIB to comply with the minimum 30% Bumiputera equity content requirement as imposed by the FIC as per its letter dated 31 December 2002. LION GROUP: Court Approves Proposed Scheme of Arrangement --------------------------------------------------------- The Board of Directors of Lion Corporation Bhd, Lion Land Bhd, Amsteel Corporation Bhd and Angkasa Marketing Bhd (collectively referred to as the "Lion Group") announces that all resolutions pertaining to the proposed corporate and debt restructuring exercises for the Lion Group ("Proposed GWRS") as set out in the Notices of Extraordinary General Meeting ("EGM") issued by the Lion Group on 9 January 2003, were passed by shareholders at their respective EGMs of the Lion Group held on January 30, 2003. In addition, the High Court of Malaya has granted an order pursuant to Section 176(3) of the Companies Act, 1965 ("Act"), sanctioning the proposed scheme of arrangement of the Lion Group and of Amsteel Mills Sdn Bhd (a 99.9% owned subsidiary company of LLB) with their respective scheme creditors on January 30. The High Court of Malaya has also granted an order pursuant to Section 176(3) of the Act, sanctioning the proposed scheme of arrangement between Silverstone Berhad ("Silverstone") (a 52.27% owned subsidiary company of ACB) and its shareholders to reorganise the share capital of Silverstone to facilitate the proposed acquisition by AMB of 100% equity interest in Silverstone. Steps will now be taken to procure inter-alia the following approvals to facilitate completion of the Proposed GWRS: (i) the Kuala Lumpur Stock Exchange for the listing of and quotation for the new shares, warrants (applicable for ACB) and new shares to be issued pursuant to the exercise of the new warrants and conversion of redeemable cumulative convertible preference shares into new shares (applicable for AMB) under the Proposed GWRS; (ii) the proposed capital reconstruction exercises under the Proposed GWRS being confirmed by the High Court pursuant to Section 64 of the Act; (iii) the waivers to be granted by the Securities Commission ("SC") to LCB and parties acting in concert with it, exempting them from their obligation under Rule 6 of the Malaysian Code of Takeovers and Mergers, 1998 ("Code"), to extend a mandatory general offer for all LLB shares and ACB shares not already owned by them after the Proposed GWRS; (iv) the waiver to be granted by the SC to Tan Sri William H.J. Cheng and parties acting in concert with him and Datuk Cheng Yong Kim, exempting them from their obligation under Rule 6 of the Code, to extend a mandatory general offer for all LCB shares not already owned by them after the Proposed GWRS; and (v) the waivers to be granted by the SC to LLB and parties acting in concert with it, exempting them from their obligation under Rule 6 of the Code, to extend a mandatory general offer for all shares in Posim Berhad and Chocolate Products (Malaysia) Berhad not already owned by them after the Proposed GWRS. Shareholders of LCB, LLB, ACB and AMB and potential investors are requested to refer to the Circulars to Shareholders of the Lion Group dated 9 January 2003 for further details of the Proposed GWRS. SPORTMA CORPORATION: Claims Restructuring Already Underway ---------------------------------------------------------- Reference is made to paragraph 4.1(b) of the Practice Note 4/2001 of the Kuala Lumpur Stock Exchange ("the Exchange") 's Listing Requirements whereby the affected listed issuer is required to announce the status of its plan to regularize its financial condition on a monthly basis until further notice from the Exchange. Further to the announcement dated 2 December 2002, the Special Administrators ("SA") wish to announce that the revised Proposed Corporate and Debt Restructuring Scheme of the Company ("Proposal") which has been approved by the Securities Commission ("SC") vide its letter dated 31 January 2002 and all relevant authorities, is at the stage of implementation. In addition, the SC, via its letter dated 31 October 2002, approved the extension of time for the implementation of the Proposal until 2 May 2003. ===================== P H I L I P P I N E S ===================== MANILA ELECTRIC: May Default on Loans, Says Treasurer ----------------------------------------------------- Manila Electric Co may default on loan payments amounting to 5 billion pesos if it fails to get a rate hike by June, Philippine Daily Inquirer and Dow Jones reports, citing the Company's treasurer Rafael Andrada. The power distributor has total debts of 26.5 billion pesos, of which 5 billion pesos in principal and interest will fall due in the first half of this year. The Energy Regulatory Commission will decide soon on Meralco's petition for the unbundling of rates, the latter seeking an average rate increase of 1.12 pesos a kilowatt hour. MANILA ELECTRIC: Mulls Restructuring of P10B Maturing Debts ----------------------------------------------------------- Creditors of Manila Electric Co. (Meralco) are exploring the possibility of restructuring the Company's 10 billion pesos maturing debts this year, the Philippine Star said on Monday, citing Meralco Vice President for Finance Daniel Tagaza. The restructuring of the loans is one of the options being eyed under the power firm's Comprehensive Financial Management Program (CFMP). The CFMP is being worked out by two of the firm's largest creditor banks, Citibank N.A. and Bank of the Philippine Islands (BPI), which are now acting as Meralco's financial advisors for the CFMP. Based on the Company's un-audited financial statement, its losses were higher than the 700 million pesos loss it incurred in the third quarter of 2002. PHILIPPINE LONG: Issues Cash Dividend Declaration ------------------------------------------------- In compliance with the disclosure requirements of the Philippine Stock Exchange, Philippine Long Distance and Telephone Co. advised that the meeting of the Board of Directors on January 31, 2003, the following cash dividends were declared: 1. P1.00 per outstanding share of the Company's Series CC 10 percent Cumulative Convertible Preferred Stock, for the annual period ending February 28, 2003, payable on March 31, 2003 to the holders of record on February 27, 2003. 2. P12,150,000.00 on the Company's Series IV Cumulative Non- Convertible Redeemable Preferred Stock, payable on March 15, 2003 to the holders of record on February 17, 2003. DebtTraders reports that Philippine Long Distance Telephone's 11.375 percent bond due in 2012 (TELP12PHS1) trades between 92 and 94. For real-time bond pricing, go to http://www.debttraders.com/price.cfm?dt_sec_ticker=TELP12PHS1 VICTORIAS MILLING: Appoints New Officers ---------------------------------------- Victorias Milling Co., Inc. (VMC), through SEC Form 17-C, disclosed that: The Board of Directors of VMC, during its meeting on January 21, 2003 held at the Security Bank Center, accepted the resignation of Edmundo A. Barcelon as Director of the VMC Board effective 21 January 2003. The Board appointed 1) Aristotle L. Villaraza as Chairman of the Executive Committee, 2) Juliana N. Gamilla as Chairman of the Audit Committee, and 3) Nilo A. Florcruz as Assistant Corporate Secretary. The sugar manufacturer, which is under a 15-year rehabilitation plan, expects to post a positive EBITDA after close to six years of losses, the Troubled Company Reporter-Asia Pacific reported last year. In 1999, Victorias suffered income loss of P55 million before returning to positive territory, posting EBITDA of P507 million. As part of its rehabilitation plan, Victorias trimmed down the number of its workforce to 1,637, even lower than the 1,700 employees required under the program. For a copy of the press release, go to http://bankrupt.com/misc/tcrap_vmc0203.pdf ================= S I N G A P O R E ================= ASIA FOOD: Updates Debt Rescheduling ------------------------------------ The Boards of Directors of Asia Food & Properties Limited (AFP) and Golden Agri-Resources Ltd (GAR) disclosed to their shareholders and the general public on the progress with their debt rescheduling further to the last joint announcement dated 31 December 2002. The AFP Group (including GAR Group) has rescheduled an additional US$41.3 million of its debts (comprising bank loans, bonds and trade facilities). The details of the total debt rescheduled during the period July 2001 to 25 January 2003, being the latest practicable date, for the AFP and GAR Groups are as follows: In US$ million Debt rescheduled AFP (excluding GAR) GAR Total AFP from July 2001 (consolidated) to 25 January 2003 Accumulative 189.0 283.3 472.3 original balance (a) Balance outstanding 119.6 266.3 385.9 as at 30 November 2002 (b) Notes: (a) This refers to the aggregate original amount of debt rescheduled. (b) This refers to the outstanding balance as at 30 November 2002 of the aggregate amount of debt rescheduled. The figures differ from (a) due to partial repayment of certain debts, debt to equity swap, and elimination on group consolidation of bonds held by subsidiaries. The following table shows the breakdown of total debt as at 30 November 2002 and the percentage of debt, which has been rescheduled: US$ million AFP GAR Total AFP (Un-Audited) (Excluding GAR) (Consolidated) Short-term debt 1 247.2 402.8 650 Long-term debt 2 426.5 121.1 547.6 Total debt (bank loans, bonds and trade facilities) as at 30 November 2002 3 673.7 523.9 1,197.6 Rescheduled debt(b) as a percentage of total debt 4 17.8% 50.8% 32.2% Notes: 1) Short-term refers to amounts payable within 1 year 2) Long-term refers to amounts payable after 1 year 3) Figures available at the latest practicable date 4) Percentage of total debt rescheduled is computed for information only. For ease of comparison, the amounts in Singapore Dollar have been converted to United States Dollar equivalent at US$1 to S$1.7630 as at end of November 2002. Cash and time deposits with BII Bank Limited, Cook Islands (BII Bank Ltd): Under the repayment and security package entered into with BII Bank Ltd (announced on 2 November 2001), the first and second aggregate repayments to the AFP Group, including GAR Group, were scheduled to be US$27 million for the period from May 2001 to April 2002, and US$25 million for the period from May 2002 to October 2002. The third aggregate repayment to the AFP Group, including GAR Group, was scheduled to be US$25 million for the period from November 2002 to April 2003. The aggregate total repayment payable by April 2003 to the AFP Group including GAR Group is US$77 million. To date, the AFP Group, including GAR Group, has reduced its principal cash and time deposits by US$81.1 million. Of this reduction, US$45.7 million represents reductions of cash and time deposits of GAR Group. NATSTEEL LTD: Appoints New Director ----------------------------------- NatSteel Limited announced the appointment of a new Director to its Board of Directors as well as the reconstitution of the Audit Committee. Appointment of Director John Koh Tiong Lu has been appointed a Director of the Company with effect from 30 January 2003. Details and the declaration of Mr John Koh Tiong Lu, as required under Rule 704(7) of the Listing Manual of the Singapore Exchange Securities Trading Limited, are contained in a separate announcement made by the Company today. Reconstitution of Audit Committee Audit Committee The members of the Audit Committee with effect from 30 January 2003 are: John Koh Tiong Lu (Chairman) Dr. Cham Tao Soon Dr. Tan Tat Wai David Ban Song Long Kevin Yip Ka Kay Notes: 1. Dr Cham Tao Soon, Dr Tan Tat Wai and Mr John Koh Tiong Lu are independent and non-executive Directors. 2. Mr Ang Kong Hua is an executive Director. TT INTERNATIONAL: Winding Up Subsidiary --------------------------------------- The Board of Directors of TT International Limited announced that the Company has on January 31, 2003 served a winding-up petition on its subsidiary, UnitedBox Pte Ltd UnitedBox, a 51 percent-owned subsidiary of the Company's wholly owned subsidiary, T.T. Corporation Pte Ltd TTC. In July 2001, TTC acquired 51 percent stake in UnitedBox, which continued to be managed by its original management after TTC's acquisition. Unitedbox's product, a mini digital recorder with storage and MP3 functions, had faced a challenging business climate following TTC's investment. Consumer confidence in UnitedBox's key markets in the United States and Europe weakened immediately after the terrorist attacks on September 11, 2001 - two months after the acquisition of UnitedBox. This resulted in the product being unable to capture the first-mover advantage it intended and some supply agreements not being fulfilled. In view of this, the Directors have decided to serve UnitedBox a creditor's winding-up petition rather than invest further to re- launch it. Financial Impact And Outlook For The Financial Year Ending 31 March 2003 The Company and the Group have recognized losses amounting to S$ Nil and S$1.5 million, respectively, for the six months ended 30 September 2002. Additional losses amounting to S$1.2 million for the Company and the Group will be recognized for the six months ending 31 March 2003. Other than the recognition of these one- off losses, there is no other material impact on the financial position and operations of the Company and the Group. Despite the losses recognized on UnitedBox, the overall outlook for the financial year ending 31 March 2003 remains unchanged from our announcement for the un-audited financial results for the six months ended 30 September 2002 released on 19 November 2002. The Directors continue to expect that the performance of the Group for the second half of the financial year will be at least comparable to that of the first half, barring unforeseen circumstances. WEE POH: Directors Retire ------------------------- The Board of Directors of Wee Poh Holdings Limited announced the retirement of Messrs. Tay Ah Kong and Lam Peck Heng as Directors of the Company with effect from 31st January 2003. Messrs. Tay and Lam have indicated that they do not wish to seek re-election to the Board upon their retirement due to personal reasons. Tay Ah Kong has also resigned as Chairman of the Audit Committee of the Company, and Lam Peck Heng as Member of the Committee, also with effect from 31st January 2003. Under the circumstances, the Company's Audit Committee will be comprisef of only of one (1) Member, Dr. Lim Heng Kow. The Company will endeavor to appoint new members to the Board to maintain the recommendation made by the Code of Corporate Governance for at least one-third (1/3) of the Board to be made up of independent directors, and also to appoint new Members to the Audit Committee as soon as possible to comply with Section 201B(2) of the Companies Act, and Rule 704(8) of the SGX Listing Manual. On September 30, 2002, the Company announced its un-audited full-year financial results, which reported a loss after tax and minority interests of S$17.6 million and S$25.2 million for the Group and the Company respectively. =============== T H A I L A N D =============== BANGCHAK PETROLEUM: Projects '03 Sales Volume to Improve by 7% -------------------------------------------------------------- State-run oil refiner, Bangchak Petroleum Plc, plans to top the industry's growth projections this year by beefing up its service stations and upping production, reports the Bangkok Post. The restructuring company will spend 40 million baht this year to renovate 10 service stations, which will include opening more Bai Chak convenience stores at its stations and promoting its products by giving away brochures and stickers. The paper says the company wants sales volume to reach 7% this year, above the industry's projection of 5%. Last year, Bangchak posted a net profit of 538 million baht on revenue of 51.9 billion baht, compared with a net loss of 2.99 billion baht in 2001. Bangchak expects to sell 193 million liters per month of refined oil this year, up from 180 million liters last year, Bangchak President Narong Boonyasaquan said. He said new products would be introduced next month or in April, building on the success of last year's launch of diesel oil Power D. Last year, the Cabinet terminated PPT Plc's sole right to distribute petrol to state agencies and state enterprises. Since then Bangchak has been supplying the Express Transport Organization of Thailand, the State Railway of Thailand and Bangkok Mass Transit Authority. Bangchak is aiming for a one-third share of state contracts, which total 70 million liters a month. It also aims to help rural co-operatives establish local service stations at 400,000 baht each, the paper said. TPI POLENE: CEO Sees Bankruptcy Exit After Fund Raising ------------------------------------------------------- Beleaguered TPI Polene CEO and bankruptcy plan administrator, Prachai Leophairattana, plans to launch a series of road shows to promote the company's US$180 million capital raising initiative slated in March. According to Business Day, the road show will take company executives to Singapore, Hong Kong, Taiwan and Shanghai. Already the company has launched a series of television commercials urging the Thais to support the public offering. Mr. Prachai, which is currently subject of a pending petition seeking his ouster as CEO and administrator of the firm's rehabilitation, promises to take the company out of the doldrums following the capital hike. He plans to make the company the second-largest producer of cement after industry leader Siam Cement, the paper said. The chief says he plans to increase the company's production capacity by 3 million tonnes annually, from 9 to 12 million tonnes, following the capital exercise. This will allow the firm to overtake the current No.2 player in the industry, Siam City Cement, has production capacity of 10 million tonnes annually. He told Business Day that TPI Polene is currently using about 95 percent of its existing production capacity or about 8 million tonnes a year. "TPI Polene has invested about US$90 million for its production line expansion. However, its creditors regulate that the company will have to complete its capital-raising scheme by a minimum of US$180 million before it can proceed on paying for the new production line machines," he said. Currently the country's No.3 cement maker, TPI sold 8.25 million tonnes of cement in 1999, a figure that fell to 7.86 million tonnes in 2000, went up to 8.66 million tonnes in 2001 and down again to 8.12 million tonnes in 2002. Mr. Prachai said the public offering booking will open on March 19-21 and the price should not be lower than market price. He said after the capital raising TPI Polene would see its paper revised from junk status to investment grade and on the strength of this would request an exit from the company's rehabilitation scheme. The company is the subject of bankruptcy court proceedings with major creditors claiming that they have more than the necessary votes to eject him as the CEO and plan administrator of the debt-ridden company, the report said. But the creditors' efforts have been bogged down in the slow-moving court system. Hearings opened last week and the court has set late April as the provisional time for a decision. The company expects 2003 earnings of 4.5 billion baht before interest, tax, depreciation, and amortization (EBITDA) on total sales of 17 billion baht, while its liabilities are expected to fall from US$900 million to US$622 million. According to Business Day, the company posted a net loss of 1.45 billion baht or 2.86 baht a share in 2002. It generated a net profit of 2.52 billion baht in 2001, representing a profit of 4.97 baht per share. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Asia Pacific is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ USA, and Beard Group, Inc., Washington, DC USA. Lyndsey Resnick, Mavy 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 ***